Bill Text: NY A07920 | 2019-2020 | General Assembly | Amended


Bill Title: Relates to a special retirement plan for certain members of the New York state and local police and fire retirement system.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2020-01-01 - APPROVAL MEMO.96 [A07920 Detail]

Download: New_York-2019-A07920-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         7920--C

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      May 28, 2019
                                       ___________

        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on  Governmental  Employees  --  committee  discharged,  bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- committee discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee

        AN  ACT to amend chapter 504 of the laws of 2009 amending the retirement
          and social security law and other laws relating to establishing police
          and fire retirement provisions, in relation to  a  special  retirement
          plan  for  certain  members of the New York state and local police and
          fire retirement system

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section  8  of  part A of chapter 504 of the laws of 2009
     2  amending the retirement and social security law and other laws  relating
     3  to  establishing  police  and  fire retirement provisions, as amended by
     4  chapter 263 of the laws of 2016, is amended to read as follows:
     5    § 8. (a) Notwithstanding any provision of law to the contrary, nothing
     6  in this act shall limit the eligibility of any  member  of  an  employee
     7  organization to join a special retirement plan open to him or her pursu-
     8  ant  to  a  collectively  negotiated  agreement  with any state or local
     9  government employer, where such agreement is in effect on the  effective
    10  date  of this act and so long as such agreement remains in effect there-
    11  after; provided, however, that any such eligibility shall not apply upon
    12  termination of such agreement for employees  otherwise  subject  to  the
    13  provisions of article [twenty-two] 22 of the retirement and social secu-
    14  rity law.
    15    (b)  Notwithstanding  any  other provision of law to the contrary, any
    16  member of a retirement system within New York state who became a  member
    17  of  such system on or after July 1, 2009 and before January 10, 2010 and
    18  subsequently become a member of the New York state and local police  and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11962-05-9

        A. 7920--C                          2

     1  fire  retirement system and thereafter transferred his or her membership
     2  in the first retirement system to the New York state  and  local  police
     3  and  fire retirement system may elect to be covered by the provisions of
     4  article [twenty-two] 22 of the retirement and social security law effec-
     5  tive  on  the  date  of  membership in the first retirement system. Such
     6  member shall also be permitted to  elect  any  special  retirement  plan
     7  available to him or her. Any contributions for previous pension benefits
     8  shall not be refunded.
     9    (c)  Notwithstanding  any  other  provision of law to the contrary any
    10  member of the New York state and local police and fire retirement system
    11  who became a member on or after July 1, 2009 and before January 9,  2010
    12  may  join  a  special  retirement  plan open to him or her pursuant to a
    13  collective negotiated agreement  with  any  state  or  local  government
    14  employer,  where  such  agreement was in effect on or after July 1, 2009
    15  and before January 9, 2010 or such agreement was expired  but  continued
    16  pursuant  to  section  209  of the civil service law on or after July 1,
    17  2009 and before January 9, 2010.
    18    (d) Any member of the New York state and local police and fire retire-
    19  ment system who elects coverage of a special retirement plan pursuant to
    20  subdivision (c) of this section shall be considered a member subject  to
    21  all  the terms and conditions of article 11 of the retirement and social
    22  security law.
    23    § 2. No employee contributions made to the New York  state  and  local
    24  police  and  fire retirement system by any police officer or firefighter
    25  who elects to make such change in plan coverage  pursuant  to  this  act
    26  shall be returned to such officer or firefighter. Such employee contrib-
    27  ution  shall be used to offset any past service costs incurred by opera-
    28  tion of the provisions of this act.
    29    § 3. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would amend Chapter 504 of the Laws of 2009 to  allow  indi-
        viduals  who  became a member of the New York State and Local Police and
        Fire Retirement System (PFRS) on or after July 1, 2009 and before  Janu-
        ary  9,  2010,  to make an irrevocable election to become covered by the
        provisions of Tier 2. Any member who elects to become covered would  not
        receive a refund of member contributions.
          If  this  bill  is  enacted during the 2019 legislative session, there
        will be an increase in annual contributions made to PFRS  on  behalf  of
        affected  members  by such member's employers based upon the current and
        resulting plan coverage. For the fiscal  year  ending  March  31,  2020,
        anticipated  increases  in  employer contribution rates, as a percent of
        salary, are approximately
                                Current Plan
         Resulting
        Tier 2 Plan    Tier 3        Tier 5       Tier 5
                                Contributory    Non-Contrib
          384-d        0.1%     4.5%               1.1%
          384-e        0.9%     4.5%               1.1%
          381-b        2.8%     4.6%
          In future years, these costs will vary as billing rates  and  salaries
        change.
          This proposal is expected to affect 231 active members earning a sala-
        ry of approximately $21.6 million as of March 31, 2018.
          Summary of relevant resources:
          The  membership  data  used  in  measuring  the impact of the proposed
        change was the same as that used in the March 31, 2018  actuarial  valu-

        A. 7920--C                          3

        ation.    Distributions  and  other  statistics can be found in the 2018
        Report of the  Actuary  and  the  2018  Comprehensive  Annual  Financial
        Report.
          The  actuarial assumptions and methods used are described in the 2015,
        2016, 2017 and 2018  Annual  Report  to  the  Comptroller  on  Actuarial
        Assumptions,  and  the Codes, Rules, and Regulations of the State of New
        York: Audit and Control.
          The Market Assets and GASB Disclosures are found in the March 31, 2018
        New York State and Local  Retirement  System  Financial  Statements  and
        Supplementary Information.
          I am a member of the American Academy of Actuaries and meet the Quali-
        fication Standards to render the actuarial opinion contained herein.
          This  fiscal note does not constitute a legal opinion on the viability
        of the proposed change nor is it intended to serve as a  substitute  for
        the professional judgment of an attorney.
          This  estimate,  dated  May 16, 2019, and intended for use only during
        the 2019 Legislative Session, is Fiscal Note No. 2019-112,  prepared  by
        the Actuary for the New York State and Local Retirement System.
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