Bill Text: NY S07074 | 2013-2014 | General Assembly | Introduced

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Bill Title: Awards additional service credit for certain persons.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2014-05-19 - REPORTED AND COMMITTED TO FINANCE [S07074 Detail]

Download: New_York-2013-S07074-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7074
                                   I N  S E N A T E
                                    April 23, 2014
                                      ___________
       Introduced  by  Sen.  GOLDEN -- 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
         calculation of service credit for certain members
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph 3 of subdivision a of section 902 of the  retire-
    2  ment  and  social  security  law, as added by chapter 126 of the laws of
    3  2000, is amended to read as follows:
    4    3. Notwithstanding any other provision of law, if the service  retire-
    5  ment  benefit of an eligible employee is subject to a maximum retirement
    6  benefit, the additional benefit authorized by  this  subdivision  OR  BY
    7  PARAGRAPH  FOUR  OF  SUBDIVISION  B OF THIS SECTION shall be computed by
    8  multiplying the final average  salary  times  the  number  of  years  of
    9  service  credit  granted  by  this  subdivision  OR BY PARAGRAPH FOUR OF
   10  SUBDIVISION B OF THIS SECTION times the benefit  fraction  of  the  plan
   11  under which the employee retires.
   12    S 2. Subdivision b of section 902 of the retirement and social securi-
   13  ty law is amended by adding a new paragraph 4 to read as follows:
   14    4.  (I)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY MEMBER WHO IS
   15  IN ACTIVE SERVICE, AS DEFINED IN PARAGRAPH (I), (II) OR (III) OF  SUBDI-
   16  VISION E OF SECTION NINE HUNDRED OF THIS ARTICLE, AS OF APRIL FIRST, TWO
   17  THOUSAND  FOURTEEN  IN A POSITION OR POSITIONS IN THE CLASSIFIED SERVICE
   18  OF THE STATE OF NEW YORK DESIGNATED MANAGERIAL OR CONFIDENTIAL  PURSUANT
   19  TO  ARTICLE  FOURTEEN  OF  THE CIVIL SERVICE LAW OR A MEMBER OF A PUBLIC
   20  AUTHORITY UNDER THE CIVIL SERVICE JURISDICTION OF THE  STATE  DEPARTMENT
   21  OF  CIVIL  SERVICE  SHALL RECEIVE ONE MONTH OF ADDITIONAL SERVICE CREDIT
   22  FOR EACH FULL MONTH OF SERVICE CREDIT RENDERED IN SUCH  POSITION  ON  OR
   23  AFTER  APRIL  FIRST, TWO THOUSAND NINE THROUGH THE DATE OF RETIREMENT UP
   24  TO A MAXIMUM OF TWENTY-FOUR MONTHS OF SERVICE CREDIT.
   25    (II) THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH  SHALL  ONLY
   26  APPLY  TO THOSE QUALIFYING MEMBERS WHO RETIRE ON OR BEFORE MARCH THIRTY-
   27  FIRST, TWO THOUSAND FIFTEEN.
   28    S 3. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14833-02-4
       S. 7074                             2
         FISCAL NOTE. -- Pursuant to legislative law section 50:
         This  bill will provide an additional month of service credit, but not
       in excess of 24 months, for each month of employment from April 1,  2009
       for members either in the classified service of the state of New York in
       a  position  designated  managerial  or confidential pursuant to article
       fourteen of the civil service law or in the service of a public authori-
       ty under the civil service jurisdiction of the state department of civil
       service, who is in active service as of April 1, 2014 and retire  on  or
       before March 31, 2015.
         If  this bill is enacted, there will be an immediate past service cost
       of approximately $23 million which would be borne by the  State  of  New
       York as a one-time payment. This estimate cost assumes a payment date of
       March 1, 2015.
         This  estimate  is based on the assumption that approximately the same
       number of members retire in this one year  period  as  have  on  average
       retired  in  each  of  the 2 prior fiscal years. If more or less members
       retire than has been assumed, the cost will vary.
         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, 2013 actuarial valu-
       ation.  Distributions and other statistics can  be  found  in  the  2013
       Report  of  the  Actuary  and  the  2013  Comprehensive Annual Financial
       Report.
         The Market Assets and GASB Disclosures are found in the March 31, 2013
       New York State and Local  Retirement  System  Financial  Statements  and
       Supplementary Information.
         The  actuarial assumptions and methods used are described in the 2010,
       2011, 2012 and 2013  Annual  Report  to  the  Comptroller  on  Actuarial
       Assumptions,  and  the  Codes  Rules and Regulations of the State of New
       York: Audit and Control.
         I am a member of the American Academy of Actuaries and meet the Quali-
       fication Standards to render the actuarial opinion contained herein.
         This estimate, dated January 9, 2014 and intended for use only  during
       the  2014  Legislative  Session, is Fiscal Note No. 2014-46, prepared by
       the Actuary for the New  York  State  and  Local  Employees'  Retirement
       System.