Bill Text: NY S05038 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to the military service credit.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2020-01-08 - REFERRED TO CIVIL SERVICE AND PENSIONS [S05038 Detail]

Download: New_York-2019-S05038-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5038
                               2019-2020 Regular Sessions
                    IN SENATE
                                      April 4, 2019
                                       ___________
        Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
        AN ACT to amend the retirement and social security law, in  relation  to
          the military service credit
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 1000 of the retirement and social security  law  is
     2  amended by adding a new subdivision 5-a to read as follows:
     3    5-a.  Notwithstanding  the  provisions  of  subdivision  five  of this
     4  section, a member, who is  ineligible  to  receive  the  credit  allowed
     5  pursuant to this section solely because such member retired on or before
     6  May thirty-first, two thousand sixteen, shall be eligible to receive the
     7  credit allowed pursuant to this section if such member makes application
     8  for such credit on or before December thirty-first, two thousand twenty.
     9  The  service  credit  available pursuant to this subdivision shall, when
    10  calculated, apply only to benefits received by the member after the date
    11  such member makes application for such credit and no retroactive benefit
    12  payments shall be made to such applicant pursuant to  this  subdivision.
    13  To  obtain  credit pursuant to this subdivision, a member shall pay such
    14  retirement system, for deposit in the fund used to  accumulate  employer
    15  contributions,  a  sum  equal  to  the product of the number of years of
    16  military service being  claimed  and  three  percent  of  such  member's
    17  compensation earned during the last twelve consecutive months of credit-
    18  ed service preceding the date that the member retired.
    19    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would allow members who retired on or before May 31, 2016 to
        apply  to  receive  military  service  credit  pursuant  to §1000 of the
        Retirement and Social Security Law.  Application  must  be  made  on  or
        before  December  31,  2020. If approved, the retirement benefit will be
        recalculated as of the date of application and no  retroactive  benefits
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10317-03-9

        S. 5038                             2
        will  be paid. Members would be required to pay a sum equal to the prod-
        uct of number of years of miliary service granted  times  three  percent
        (3%) of compensation earned during the last twelve consecutive months of
        credited  service  preceding  the  date  of  retirement. Such member may
        receive up to three (3) years  of  service  credit  for  their  military
        service.
          If this bill is enacted, insofar as this proposal affects the New York
        State and Local Employees' Retirement System (ERS), it is estimated that
        the  past  service  cost  will  average approximately 10% of an affected
        members' compensation for each year of additional service credit that is
        purchased.
          Insofar as this proposal affects the New York State and  Local  Police
        and Fire Retirement System (PFRS), it is estimated that the past service
        cost will average approximately 12% of an affected members' compensation
        for each year of additional service that is purchased.
          The  exact  number  of  retired  members who could be affected by this
        legislation cannot be readily determined.
          ERS costs would be borne entirely by the State of New York. A  precise
        cost can't be determined until each member applies for the service cred-
        it.  After  the  application  deadline,  a  cost will be determined (and
        billed to the state) based on those benefiting from this provision.
          PFRS costs would be shared by the State of New York  and  the  partic-
        ipating employers in the PFRS.
          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-
        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 April 2, 2019, and intended for use only during
        the 2019 Legislative Session, is Fiscal Note No.  2019-98,  prepared  by
        the Actuary for the New York State and Local Retirement System.
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