STATE OF NEW YORK
________________________________________________________________________
5087
2021-2022 Regular Sessions
IN ASSEMBLY
February 10, 2021
___________
Introduced by M. of A. ABINANTI, PAULIN, GRIFFIN, STECK, WALKER, DICK-
ENS, TAGUE, SANTABARBARA, McDONOUGH, COLTON, RAMOS, TAYLOR, DARLING,
THIELE, GUNTHER, McMAHON, REYES, LUPARDO, DeSTEFANO, BRABENEC, MIKU-
LIN, BARRON, ZEBROWSKI, ENGLEBRIGHT, REILLY -- read once and referred
to the Committee on Governmental Employees
AN ACT to provide a temporary retirement incentive for certain public
employees (Part A); and to provide an age 55/25 years temporary
retirement incentive for certain public employees (Part B)
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. This act enacts into law components of legislation that
2 would enable public employers to offer a temporary retirement incentive
3 to their employees, as well as to provide an age 55/25 years temporary
4 incentive for certain public employees. Each component is wholly
5 contained within a Part identified as Parts A and B. The effective date
6 for each particular provision contained within such Part is set forth in
7 the last section of such part. Any provision in any section contained
8 within a Part, including the effective date of the Part, which makes
9 reference to a section "of this act", when used in connection with that
10 particular component, shall be deemed to mean and refer to the corre-
11 sponding section of the Part in which it is found, unless noted other-
12 wise. The benefits of this act shall not be applicable to anyone who
13 first became a member of a public retirement system of the state on or
14 after January first, two thousand ten.
15 § 2. Legislative findings. The legislature finds and declares that the
16 retirement benefits provided for in this act are designed to achieve
17 cost-savings for public employers and to avoid layoffs of public employ-
18 ees in this time of fiscal need. Therefore, the retirement incentive
19 benefit provided for in Part A of this act and the age 55/25 years
20 retirement benefit provided for in Part B of this act are intended only
21 to be temporary in nature for employees who are eligible to receive and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03658-03-1
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1 qualify for the applicable benefit during the applicable time periods
2 specified within each Part. Further, nothing in this act shall be
3 construed to create an expectation of a future or continuing retirement
4 benefit for any public employee who is not eligible to receive and qual-
5 ify for the retirement benefits in this act during the applicable time
6 periods.
7 PART A
8 Section 1. Definitions. As used in this act, unless the context clear-
9 ly requires otherwise:
10 a. "Retirement system" means the New York state and local employees'
11 retirement system, the New York state teachers' retirement system, the
12 New York city teachers' retirement system, the New York city board of
13 education retirement system or the New York city employees' retirement
14 system, exclusive of the retirement plans established pursuant to
15 sections 13-156 and 13-157 of the administrative code of the city of New
16 York.
17 b. "Teachers' retirement system" means the New York state teachers'
18 retirement system or the New York city teachers' retirement system.
19 c. "Optional retirement program" means the programs established pursu-
20 ant to the provisions of section 181, 391 or 6251 of the education law;
21 or continued pursuant to section 3 of chapter 980 of the laws of 1962.
22 d. "State employer" means (a) the executive branch of the state, (b)
23 the state-operated institutions of the state university of New York, (c)
24 the statutory and contract colleges operated pursuant to section 357 of
25 the education law, (d) the state university construction fund (herein-
26 after referred to in this act as the "fund"), (e) a cooperative exten-
27 sion association (hereinafter referred to in this act as the "associ-
28 ation"), (f) the city university of New York as defined in subdivision 2
29 of section 6202 of the education law, (g) the unified court system, (h)
30 the senate, (i) the assembly, and (j) joint legislative employers.
31 e. (a) "Participating employer" means an employer, other than a state
32 employer, which participates in a retirement system; such term shall
33 include a community college operating under the program of the state
34 university of New York.
35 (b) "Educational employer" means a participating employer which is a
36 school district, a board of cooperative educational services, a voca-
37 tional education and extension board, an institution for the instruction
38 of the deaf and of the blind as enumerated in section 4201 of the educa-
39 tion law, or a school district as enumerated in section 1 of chapter 566
40 of the laws of 1967, as amended.
41 f. "Eligible employee" means a person who is a member of a retirement
42 system or a participant in an optional retirement program who is an
43 employee in the executive branch of a state employer or an employee of a
44 state employer or a participating employer which makes an election under
45 this section or section four of this act, but such term shall not
46 include the following persons:
47 (a) elected officials, judges or justices appointed to or serving in a
48 court of record and acting village justices;
49 (b) chief administrative officers of participating employers which
50 participate in a teachers' retirement system;
51 (c) officers described in sections 4, 41-a, 46, 61, 70, 70-a, 169
52 (including those officers whose salary is established pursuant to salary
53 plans under subdivision 3 of section 169), 180 and subdivision 1 of
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1 section 41 of the executive law and any agency or department head
2 appointed by the governor, comptroller or attorney general;
3 (d) appointed members of boards or commissions any of whose members
4 are appointed by the governor or by another state officer or body;
5 (e) nonjudicial officers and employees of the unified court system
6 unless the chief administrator of the courts elects as provided herein,
7 which election shall cover only nonjudicial officers and employees hold-
8 ing positions in any title in the classified service of the unified
9 court system;
10 (f) officers or employees of the senate unless the senate adopts a
11 resolution authorizing the temporary president to file the election as
12 provided in this subdivision;
13 (g) officers or employees of the assembly unless the assembly adopts a
14 resolution authorizing the speaker of the assembly to file the election
15 as provided in this subdivision; and
16 (h) officers or employees of joint legislative employers unless:
17 (i) with respect to officers or employees of the legislative library,
18 legislative messenger service, legislative health service, legislative
19 ethics commission, the legislative bill drafting commission, and the
20 joint line of the legislative task force on demographic research and
21 reapportionment, the senate and assembly adopt a concurrent resolution
22 authorizing the temporary president of the senate and the speaker of the
23 assembly to jointly file an election as provided in this subdivision;
24 (ii) with respect to officers or employees of components of the senate
25 as identified pursuant to section 90 of the legislative law, the senate
26 adopts a resolution authorizing the temporary president to file an
27 election for officers or employees of those components designated in
28 such resolution; and
29 (iii) with respect to officers or employees of components of the
30 assembly as identified pursuant to section 90 of the legislative law,
31 the assembly adopts a resolution authorizing the speaker of the assembly
32 to file an election for officers or employees of those components desig-
33 nated in such resolution.
34 Any election under paragraphs (e) through (h) of this subdivision to
35 make available the retirement incentive program provided by this act
36 shall be in writing and filed with the state comptroller not later than
37 ninety days after the effective date of this act. Notwithstanding any
38 other provision of this act, each such filing shall specify the
39 commencement date and the length of the open period. Only one open peri-
40 od shall be made available for employees covered by elections under
41 paragraphs (e) through (h) of this subdivision.
42 For the purposes of such paragraphs (f), (g) or (h) of this subdivi-
43 sion, an employee of the legislature shall be as such term is defined in
44 section 7-a, 7-b or 7-d of the legislative law or by any other provision
45 of law which classifies employees of an entity to be legislative employ-
46 ees for all purposes, but shall not include senators or members of the
47 assembly. The term "joint legislative employer" shall mean legislative
48 commissions, committees, task forces, councils or similar bodies whose
49 membership is comprised of both senators and assembly members, or which
50 consist of commissioners, or the majority of whose membership is
51 appointed by one or more of the following: the temporary president of
52 the senate, the speaker of the assembly, the minority leader of the
53 senate, and/or the minority leader of the assembly. The temporary presi-
54 dent of the senate and the speaker of the assembly shall be the joint
55 legislative employer of the employees of the legislature referred to in
56 sections 7-a and 7-b of the legislative law.
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1 g. "Eligible title" means any title where a certain number of posi-
2 tions in that title, as identified by agency, department, work location
3 or appointing authority, college or campus, as the case may be, would
4 otherwise be identified for layoff but for this act because of economy,
5 consolidation or abolition of functions, curtailment of activities or
6 otherwise. However, an eligible title can also include a title as iden-
7 tified by agency, department, work location or appointing authority in
8 which positions would not be eliminated but into which employees in
9 titles affected by layoff can be transferred or reassigned pursuant to
10 the civil service law, rule or regulation. The determination of eligible
11 titles shall be made by: (a) the appointing authority, subject to the
12 approval of the director of state operations for titles within the exec-
13 utive branch, (b) the board of trustees for the state university
14 (including the association) subject to the approval of the director of
15 state operations, the fund, the city university of New York and of each
16 community college operating under the program of the state university,
17 (c) the person or persons who elect under paragraphs (e) through (h) of
18 subdivision f of this section to offer the retirement incentive provided
19 by this act, and (d) the chief executive officer or other comparable
20 official for participating employers other than the community colleges.
21 h. "College faculty" means an employee, not in the classified service,
22 of a state employer described in paragraphs (b), (c), (d), (e) and (f)
23 of subdivision d of this section or of a community college who is a
24 member of a teachers' retirement system, the New York state and local
25 employees' retirement system or a participant in an optional retirement
26 program.
27 i. "Active service" means service while being paid on the payroll,
28 provided that (a) a leave of absence with pay shall be deemed active
29 service; (b) other approved leave without pay not to exceed twelve weeks
30 from February 1, 2021 and the commencement of the designated open peri-
31 od; and (c) the period of time subsequent to the June 2021 school term
32 and on or before August 31, 2021 for a teacher (or other employee
33 employed on a school-year basis) who is otherwise in active service on
34 February 1, 2021 shall be deemed active service.
35 j. "Open period" means the period beginning with the commencement date
36 as defined in subdivision k of this section and shall not be more than
37 ninety days nor less than thirty days in length, as specified by the
38 director of state operations or by a participating employer pursuant to
39 section four of this act, by the appropriate board of trustees for the
40 state university (including the association), the fund, the city univer-
41 sity of New York or a community college operating under a program of the
42 state university or by a state employer described in paragraphs (g),
43 (h), (i) and (j) of subdivision d of this section; provided however that
44 any such period shall not extend beyond September 30, 2021 for the exec-
45 utive branch of a state employer described in paragraphs (a) and (b) of
46 subdivision d of this section (except for college faculty), not beyond
47 December 31, 2021 for participating employers, college faculty for a
48 state employer described in paragraph (b) of subdivision d of this
49 section, state employers described in paragraphs (c), (d) and (e) of
50 subdivision d of this section, not beyond January 31, 2022 for college
51 faculty of an employer described in paragraph (f) of subdivision d of
52 this section, and not beyond August 31, 2021 for educational employers.
53 For the purposes of retirement pursuant to this act, a service retire-
54 ment application must be filed with the appropriate retirement system
55 not less than fourteen days prior to the effective date of retirement to
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1 become effective, unless a shorter period of time is permitted under
2 law.
3 k. "Commencement date" means the first day the retirement incentive
4 authorized by this act shall be made available, which shall mean a date
5 on or after the effective date of this act to be determined by the
6 director of state operations for the executive branch of the state, and
7 which date shall occur no later than thirty days before September 30,
8 2021 or for any participating employer a date on or after the effective
9 date of this act. For any other state employer, such term shall mean a
10 date on or after the effective date of this act and shall occur no later
11 than thirty days before September 30, 2021. The director of state oper-
12 ations shall notify the head of the appropriate retirement system of the
13 date of each open period applicable to employees of the executive branch
14 or of a state employer prior to the commencement date.
15 § 2. The determination of whether a title shall be considered eligible
16 shall consider whether the reduction of a specific number of positions
17 within a title would unacceptably:
18 a. Directly result in a reduction of the level of service required or
19 mandated to protect and care for clients of the state or a participating
20 employer or to assure public health and safety;
21 b. Endanger the health or safety of employees of the state or a
22 participating employer; or
23 c. Clearly result in a loss of significant revenue to the state or a
24 participating employer or result in substantially increased overtime or
25 contractual costs. However, upon the determination of the director of
26 state operations, with respect to employees of the executive branch of a
27 state employer, any titles may be determined eligible if the vacancies
28 created can be controlled by the use of transfer or reassignment
29 provisions of the civil service law, rules or regulations or other
30 deployment of state employees.
31 § 3. a. Eligibility for inclusion in the retirement incentive provided
32 by section six of this act shall be determined: (a) by seniority: for
33 participating employers and for state employers described in paragraphs
34 (a), (b), (c), (d), (e) and (f) of subdivision d of section one of this
35 act, other than for college faculty; seniority shall mean the date of
36 original permanent appointment in the civil service of the state
37 adjusted to include veteran's credits for those entitled to receive such
38 credits pursuant to sections 80, 80-a and 85, if applicable, of the
39 civil service law, as established in the official records of the depart-
40 ment of civil service, regardless of the jurisdictional classification
41 of the position or the status of the incumbent; (b) by seniority, as
42 applicable for the unified court system; (c) for state employers
43 described in paragraphs (h), (i) and (j) of subdivision d of section one
44 of this act as determined by the person or persons who make the election
45 to offer the retirement incentive; and (d) for college faculty, by the
46 board of trustees of the state university, city university and of each
47 community college operating under the program of the state university.
48 b. All eligible employees serving in eligible titles desiring to avail
49 themselves of the retirement incentive provided by section six of this
50 act shall provide written notice to his or her employer on or before the
51 twenty-first day preceding the end of the open period, or before the end
52 of the applicable open period as such open period is determined by the
53 director of state operations. Failure to provide such written notice
54 shall render the employee ineligible for the retirement incentive
55 provided by this act.
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1 § 4. a. On or before August 31, 2021, a participating employer or a
2 state employer described in paragraphs (b), (c), (d), (e) and (f) of
3 subdivision d of section one of this act may elect to provide its
4 employees the retirement incentive authorized by this act by (a) the
5 enactment of a local law or (b) in the case of a participating employer
6 which is not so empowered to act by local law or a state employer
7 described in paragraphs (b), (c), (d), (e) and (f) of subdivision d of
8 section one of this act, by the adoption of a resolution of its govern-
9 ing body; provided however, no local law or resolution enacted pursuant
10 to this section shall in any manner supersede any local charter,
11 provided further, that for an educational employer such election must be
12 made by July 30, 2021. The local law or resolution shall specify the
13 commencement date of the program and the length of the open period. For
14 a community college operating under the program of state university of
15 New York, such election shall be made by the board of trustees of such
16 community college subject to the approval of its sponsor. A copy of such
17 law or resolution shall be filed with the appropriate retirement system
18 or systems, and, if applicable, on forms provided by such system. The
19 local law or resolution shall be accompanied by the affidavit of the
20 chief executive officer or other comparable official certifying to the
21 information contained in subdivision b of this section.
22 b. Notwithstanding any other provision of law, the benefits provided
23 by this act shall not be made available to any person who (a) has
24 received any retirement incentive authorized by any provision of state
25 law, or (b) who receives, has received or is eligible to receive a
26 payment in a lump sum or in another form from a retirement incentive
27 pursuant to the provisions of a collective bargaining agreement or by
28 other arrangement with his or her employer, unless such person files a
29 written statement with his or her employer, a copy of which shall be
30 forwarded to the appropriate retirement system, that he or she agrees to
31 waive any right to such payment. A participating employer who makes an
32 election pursuant to this section and who offers or has offered a
33 retirement incentive pursuant to the provisions of a collective bargain-
34 ing agreement or by other arrangement shall prepare, and file with each
35 retirement system, a list containing the names and social security
36 numbers of all persons described in this subdivision. A participating
37 employer is authorized to exempt persons in its employ from the
38 provisions of paragraph (b) of this subdivision. Such exemption shall be
39 made part of the election made pursuant to this section.
40 c. Notwithstanding any other provision of this act to the contrary,
41 the mayor of the city of New York may declare employees of the community
42 colleges of the city university of New York ineligible for the retire-
43 ment incentive provided by this act by filing such notification with the
44 chancellor of the city university of New York, with copies to the chair
45 of the senate finance committee, the chair of the assembly ways and
46 means committee and the director of the budget, in writing, no later
47 than the thirtieth day next succeeding the effective date of this act.
48 § 5. Notwithstanding any other provision of law, any eligible employee
49 serving in an eligible title who:
50 a. has been continuously in the active service of a state employer or
51 of a participating employer from February 1, 2021 to the date immediate-
52 ly prior to the commencement date of the applicable open period;
53 b. files an application for service retirement (or files the appropri-
54 ate application and authorization form with the optional retirement
55 program and a duly acknowledged retirement incentive form for such
A. 5087 7
1 program with the appropriate personnel office) that is effective during
2 the open period; and
3 c. is otherwise eligible for a service retirement as of the effective
4 date of the application for retirement shall be entitled to the retire-
5 ment incentive provided in section six of this act. If not otherwise
6 eligible for a service retirement, the following person shall be deemed
7 to satisfy the eligibility condition of this section: a person who is at
8 least age fifty with ten or more years service as of the effective date
9 of retirement (other than a member of a retirement plan which provides
10 for half-pay pension upon completion of twenty-five years or less
11 service without regard to age); a member of a retirement plan which
12 provides for half-pay pension upon completion of twenty-five years of
13 service without regard to age who has not accrued, excluding additional
14 credit granted pursuant to this act, the minimum number of years of
15 service required to retire with an allowance equal to fifty percent of
16 final average salary under such plan, but has, with the inclusion of the
17 additional credit provided under this act, accrued such number of years
18 of credit; or a participant in an optional retirement plan at least
19 fifty years of age with ten years of service on an annual salary basis
20 with his or her employer as of the date of retirement.
21 § 6. Notwithstanding any other provision of law, an eligible employee
22 serving in an eligible title who is:
23 a. A member of a retirement system and who is entitled to a retirement
24 incentive pursuant to section five of this act shall receive a retire-
25 ment incentive of one-twelfth of a year of additional retirement credit
26 for each year of pension service credited as of the date of retirement,
27 up to a maximum of three years of retirement service credit at the time
28 of retirement, provided, however, that service credit provided under the
29 provisions of sections 902 and 911 of the retirement and social security
30 law shall not be included when calculating the additional retirement
31 credit awarded pursuant to this act. For the New York city teachers'
32 retirement system, the New York city employees' retirement system and
33 the New York city board of education retirement system such incentive
34 shall be available for all purposes, including fulfilling the qualifying
35 service requirements of plan A and C, if applicable.
36 An eligible employee who is covered by the provisions of article 15 of
37 the retirement and social security law shall retire under the provisions
38 of article 15 of the retirement and social security law. The amount of
39 such benefit for an eligible employee who is covered by article 15 of
40 the retirement and social security law and retires under the provisions
41 of this section (other than a member with thirty or more years of
42 service in the New York state and local employees' retirement system or
43 a teachers' retirement system) shall be reduced by six percent for each
44 of the first two years by which retirement precedes age sixty-two, plus
45 a further reduction of three percent for each year by which retirement
46 precedes age sixty, provided, however, the foregoing reductions shall
47 not apply: (i) in any case where an eligible employee can retire after
48 twenty-five years of service with immediate payability prior to the age
49 of sixty-two pursuant to section 604-b of the retirement and social
50 security law or (ii) to any time period subsequent to the point at which
51 an eligible employee can retire for service without reduction of his or
52 her service retirement allowance pursuant to article 16 of the retire-
53 ment and social security law. Such reduction shall be prorated for
54 partial years. The amount of such benefit for an eligible employee with
55 thirty or more years of service who is a member of the New York state
56 and local employees' retirement system or a teachers' retirement system
A. 5087 8
1 or an eligible employee who is a participant in the optional twenty-five
2 year early retirement program for certain New York city members governed
3 by section 604-c of the retirement and social security law, as added by
4 chapter 96 of the laws of 1995 or a twenty-five year participant in the
5 age fifty-five retirement program governed by section 604-i of the
6 retirement and social security law, with twenty-five or more years of
7 service and who is covered by article 15 of the retirement and social
8 security law shall be reduced by five percent for each year by which
9 retirement pursuant to this section precedes age fifty-five. The amount
10 of such benefit for an eligible New York city employee with five or more
11 years of service and who is a participant in the age fifty-seven retire-
12 ment program governed by section 604-d of the retirement and social
13 security law shall be reduced by one-thirtieth for the first two years
14 by which retirement precedes age fifty-seven plus a further reduction of
15 one-twentieth for each year by which retirement precedes age fifty-five.
16 Such reduction shall be prorated for partial years. There shall be no
17 reduction for an eligible New York city employee in a physically taxing
18 position with twenty-five or more years of service and who is a partic-
19 ipant (i) in the optional twenty-five year early retirement program for
20 certain members governed by section 604-c of the retirement and social
21 security law, as added by chapter 96 of the laws of 1995, or (ii) in the
22 age fifty-seven retirement program governed by section 604-d of the
23 retirement and social security law.
24 An eligible employee serving in an eligible title who is covered by
25 article 11 of the retirement and social security law shall retire under
26 the provisions of such article. The amount of such benefit for an eligi-
27 ble employee covered by article 11 of the retirement and social security
28 law other than a member of a teachers' retirement system or a member of
29 the New York state and local employees' retirement system with thirty or
30 more years of service, a participant in the optional age fifty-five
31 improved benefit retirement program for certain New York city employees
32 governed by section 445-d of the retirement and social security law, as
33 added by chapter 96 of the laws of 1995, with twenty-five or more years
34 of service, or a participant in the optional age fifty-five retirement
35 program for New York city teachers and certain other members governed by
36 section 445-i of the retirement and social security law, with twenty-
37 five or more years of service, shall be reduced by six percent for each
38 of the first two years by which retirement pursuant to this section
39 precedes age sixty-two, plus a further reduction of three percent for
40 each year by which retirement pursuant to this section precedes age
41 sixty, provided, however, the foregoing reductions shall not apply: (i)
42 in any case where an eligible employee can retire pursuant to a plan
43 which permits retirement for service with immediate payability, exclu-
44 sive of this act, prior to the age of fifty-five or (ii) to any time
45 period subsequent to the point at which an eligible employee can retire
46 for service without reduction of his or her service retirement allowance
47 pursuant to article 16 of the retirement and social security law. Such
48 reduction shall be prorated for partial years. The amount of such bene-
49 fit for an eligible employee who is a member of a teachers' retirement
50 system or a member of the New York state and local employees' retirement
51 system with thirty or more years of service, a participant in the
52 optional age fifty-five improved benefit retirement program for certain
53 New York city employees governed by section 445-d of the retirement and
54 social security law, as added by chapter 96 of the laws of 1995, with
55 twenty-five or more years of service, or a participant in the optional
56 age fifty-five retirement program for New York city teachers and certain
A. 5087 9
1 other members governed by section 445-i of the retirement and social
2 security law, with twenty-five or more years of service and who is
3 covered by article 11 of the retirement and social security law shall be
4 reduced by five percent for each year by which retirement pursuant to
5 this section precedes age fifty-five. Such reduction shall be prorated
6 for partial years. There shall be no reduction for an eligible New York
7 city employee in a physically taxing position and who is a participant
8 in the optional age fifty-five improved benefit retirement program for
9 certain New York city employees governed by section 445-d of the retire-
10 ment and social security law, as added by chapter 96 of the laws of
11 1995, with twenty-five or more years of service.
12 An eligible employee serving in an eligible title who is not covered
13 by article 11 or 15 of the retirement and social security law shall
14 retire under the provisions of the plan by which he or she is covered.
15 The amount of such benefit shall be reduced by five percent for each
16 year by which retirement pursuant to this section precedes age fifty-
17 five, provided, however, the foregoing reductions shall not apply: (i)
18 in any case where an eligible employee can retire pursuant to a plan
19 which permits retirement for service with immediate payability, exclu-
20 sive of this act, prior to the age of fifty-five or (ii) to any time
21 period subsequent to the point at which an eligible employee can retire
22 for service without reduction of his or her service retirement allowance
23 pursuant to article 16 of the retirement and social security law. Such
24 reduction shall be prorated for partial years.
25 An eligible employee serving in an eligible title who participates in
26 a retirement plan which provides for a retirement allowance equal to
27 fifty percent of final average salary upon the completion of twenty-five
28 years of service without regard to age and who is otherwise eligible to
29 retire shall retire under the provisions of such plan. Such employee
30 shall, at the time of retirement, be credited with one-twelfth of a year
31 of additional retirement service credit for each year of service credit-
32 ed under such plan as of the date of retirement, up to a maximum of
33 three years of retirement service credit, subject to the provisions of
34 subdivision b of this section. If such employee has not accrued, exclud-
35 ing additional credit granted pursuant to this act, the minimum number
36 of years of service required to retire with an allowance equal to fifty
37 percent of final average salary under such plan, but has, with the
38 inclusion of the additional credit provided under this act, accrued such
39 number of years of credit, the benefit payable shall be the percentage
40 of final average salary that would ordinarily be applicable to such
41 individual upon retirement with such amount of credit (including incen-
42 tive credit), reduced by five per centum per year for each year by which
43 the number of years of service otherwise required to retire with an
44 allowance equal to fifty percent of final average salary under such plan
45 exceeds the amount of service credited to such employee under such plan
46 at retirement (excluding the additional retirement incentive service
47 credit provided pursuant to this act). Such reduction shall be prorated
48 for partial years.
49 b. A participant in an optional retirement program who is entitled to
50 a retirement incentive pursuant to section five of this act shall
51 receive an additional employer contribution equal to an amount, which
52 shall be calculated as follows: (one-twelfth for each year of service)
53 multiplied by (fifteen percent) multiplied by (the employee's earnable
54 annual salary rate in effect on March 1, 2021 or the effective date of
55 this act if the employee retires prior to March 1, 2021), such amount
56 not to exceed forty-five percent of such salary rate. Such contribution
A. 5087 10
1 shall be made to the employee's retirement annuity under the optional
2 retirement program up to the maximum contribution allowable under
3 section 415 of the internal revenue code. Any contribution in excess of
4 that limit shall be contributed by the employer to an internal revenue
5 code section 403(b) contract on behalf of the employee to the extent it
6 can be contributed on a before-tax basis under the maximum limits
7 allowed under the internal revenue code. Contributions in excess of that
8 amount shall be paid in cash to the participant in three equal install-
9 ments during a twenty-four month period commencing on such eligible
10 employee's effective date of retirement. Provided, however, if the
11 employee is employed by the city university of New York and in the
12 active service of such employer on October 1, 2021 or the effective date
13 of this act if the employee retires prior to October 1, 2021, the
14 employee's earnable annual salary rate shall be the annual salary rate
15 in effect on such applicable date.
16 § 7. a. An employee of a state employer, other than the city universi-
17 ty of New York, who retires pursuant to this act may defer calculation
18 of the value of accumulated sick leave credits, if any, and partic-
19 ipation in the state health insurance plan.
20 b. Notwithstanding any other provision of law, any termination pay or
21 leave arising from accrued sick leave or accrued annual leave for an
22 eligible employee who has elected the retirement incentive provided by
23 this act and who is a member of the New York city teachers' retirement
24 system employed by the board of education of the city of New York shall
25 be paid in three equal installments during a twenty-four month period
26 commencing on such eligible employee's effective date of retirement.
27 c. An employee of the city of New York or the city university of New
28 York, as defined in subdivision 2 of section 6202 of the education law,
29 who retires under the retirement incentive provided by this act, who is
30 eligible for terminal leave pursuant to an applicable collective
31 bargaining agreement or a personnel policy or rule or retirement leave
32 pursuant to section 3107 of the education law or who has an accrued
33 annual leave balance on the effective date of retirement shall be paid
34 in three equal installments two months, fourteen months and twenty-four
35 months following such eligible employee's effective date of retirement.
36 § 8. a. With respect to employees of the executive branch of a state
37 employer, any position, other than a position supported by special
38 revenue funds, vacated as a result of an eligible employee in an eligi-
39 ble title receiving the retirement incentive provided by section six of
40 this act shall be eliminated unless such position is identified by the
41 director of state operations as one into which another state employee
42 can be appointed, transferred or reassigned pursuant to the civil
43 service law, rules or regulations, in which case the former position of
44 the state employee so appointed, transferred or reassigned shall be
45 eliminated.
46 b. The director of state operations shall direct the department of
47 civil service to prepare a report designating the title, grade level,
48 salary, and classification, according to appointing authority, (i) of
49 each position which is eliminated pursuant to subdivision a of this
50 section, (ii) of each position into which another state employee was
51 appointed, transferred, or reassigned and the former position of such
52 state employee, and (iii) of each position which is eliminated as a
53 result of an appointment, transfer or reassignment referred to in para-
54 graph (ii) of this subdivision. Such report shall be available no later
55 than ninety days after the last date of the open period related to such
56 positions.
A. 5087 11
1 § 9. Notwithstanding any inconsistent provision of section eight of
2 this act or any other provision of law:
3 a. A participating employer or a state employer described in para-
4 graphs (b) through (e) of subdivision d of section one of this act shall
5 not be required to eliminate the positions of eligible employees in
6 eligible titles receiving the retirement incentive provided by section
7 six of this act if such employer can demonstrate that it will achieve a
8 compensation savings such that the total amount of base salary paid for
9 the two-year period subsequent to the effective date of retirement for
10 such eligible employees in eligible titles to those new hires, if any,
11 who otherwise would not have been hired by such employer after the
12 effective date of this act but for the retirement incentive provided
13 herein shall be no more than one-half of the total amount of base salary
14 that would have been paid to such eligible employees from their date of
15 retirement for such two-year period. Each such employer shall make
16 available its plans for achieving these savings.
17 b. The city of New York or the city university of New York, as defined
18 in subdivision 2 of section 6202 of the education law, shall not be
19 required to eliminate the positions of eligible employees in eligible
20 titles receiving the retirement incentive provided by section six of
21 this act if such participating employer can demonstrate that it will
22 achieve a compensation or equivalent headcount savings such that the
23 total amount of compensation including benefits paid for the two-year
24 period subsequent to the effective date of retirement for such eligible
25 employees in eligible titles to those new hires, if any, who otherwise
26 would not have been hired by such employer after the effective date of
27 this act but for the retirement incentive provided herein shall be no
28 more than one-half of the total amount of base salary that would have
29 been paid to such eligible employees from their date of retirement for
30 such two-year period. For purposes of this subdivision, the "city of New
31 York" shall mean the city of New York or a participating employer a
32 majority of the members of whose governing body are: (a) appointed by
33 the mayor of the city of New York or other citywide elected official, a
34 borough president of the city of New York, or any combination thereof;
35 (b) designated by virtue of their city of New York office or position or
36 their office or position with a participating employer whose governing
37 board is described in paragraph (a) of this subdivision; or (c)
38 appointed or designated by any combination of the foregoing. Each such
39 employer shall make available its plans for achieving these savings.
40 c. To the extent any transfer of personnel between the state employer
41 described in paragraph (a) of subdivision d of section one of this act
42 and the state employer described in paragraph (b) of subdivision d of
43 section one of this act occurs pursuant to a voluntary transfer of state
44 personnel, or otherwise, the provisions of subdivision a of this section
45 with respect to achieving savings shall be applicable. Nothing herein
46 shall be construed to impair the authority of the director of state
47 operations pursuant to subdivision g of section one or section two of
48 this act.
49 § 10. Nothing in this act shall be used to provide benefits that shall
50 exceed the limits contained in section 415 of the internal revenue code.
51 Provided, however, any service retirement benefit which has been reduced
52 because of section 415 of the internal revenue code shall be increased
53 when (and consistent with) the dollar limits in section 415 of the
54 internal revenue code are adjusted by the internal revenue service for
55 cost of living increases. Such increases shall not increase the benefit
56 in excess of the service retirement benefit otherwise payable.
A. 5087 12
1 § 11. Any eligible employee who retires pursuant to the provisions of
2 this act and enters or reenters public service as defined in subdivision
3 e of section 210 of the retirement and social security law and joins or
4 rejoins any public retirement system of the state as defined in subdivi-
5 sion 6 of section 152 of the retirement and social security law or
6 elects to participate in an optional retirement program shall if the
7 additional benefit was provided pursuant to: (a) subdivision a of
8 section six of this act, forfeit the additional benefit authorized by
9 this act at the time of his or her subsequent retirement; or (b) subdi-
10 vision b of section six of this act, repay to the state or participating
11 employer such additional contribution together with the appropriate
12 interest as determined by the state comptroller.
13 § 12. Notwithstanding any other provision of law, if the service
14 retirement benefit of a member of a retirement system is subject to a
15 maximum retirement benefit, the additional benefit authorized by this
16 act will be computed by multiplying the final average salary times the
17 number of years of service credit granted by section six of this act
18 times the benefit fraction of the plan under which such member retires.
19 § 13. The provisions of section 430 of the retirement and social secu-
20 rity law shall not apply to any benefit or benefit improvement provided
21 by this act.
22 § 14. The pension benefit costs of subdivision a of section six of
23 this act shall be paid by employers as provided by applicable law for
24 each retirement system covered by this act over a period not to exceed
25 five years commencing in the state fiscal year ending March 31, 2023.
26 § 15. Where an employee is eligible to receive the benefit authorized
27 under section six and the retirement benefit provided for under section
28 five of part B of the chapter of the laws of 2021 which added this part,
29 such employee may elect a section under which he or she will partic-
30 ipate.
31 § 16. This act shall take effect immediately.
32 PART B
33 Section 1. Definitions. As used in this act, unless the context clear-
34 ly requires otherwise:
35 a. "Retirement system" means the New York state and local employees'
36 retirement system, the New York state teachers' retirement system, the
37 New York city teachers' retirement system, the New York city board of
38 education retirement system or the New York city employees' retirement
39 system, exclusive of the retirement plans established pursuant to
40 sections 13-156 and 13-157 of the administrative code of the city of New
41 York.
42 b. "Teachers' retirement system" means the New York state teachers'
43 retirement system or the New York city teachers' retirement system.
44 c. "State employer" means (a) the executive branch of the state, (b)
45 the state-operated institutions of the state university of New York, (c)
46 the statutory and contract colleges operated pursuant to section 357 of
47 the education law, (d) the state university construction fund (herein-
48 after referred to in this act as the "fund"), (e) a cooperative exten-
49 sion association (hereinafter referred to in this act as the "associ-
50 ation"), and (f) the city university of New York as defined in
51 subdivision 2 of section 6202 of the education law, (g) the unified
52 court system, (h) the senate, (i) the assembly, and (j) joint legisla-
53 tive employers.
A. 5087 13
1 d. (a) "Participating employer" means an employer, other than a state
2 employer, which participates in a retirement system; such term shall
3 include a community college operating under the program of state univer-
4 sity of New York.
5 (b) "Educational employer" means a participating employer which is a
6 school district, a board of cooperative educational services, a voca-
7 tional education and extension board, an institution for the instruction
8 of the deaf and of the blind as enumerated in section 4201 of the educa-
9 tion law, or a school district as enumerated in section 1 of chapter 566
10 of the laws of 1967, as amended.
11 e. "Eligible employee" means a person who is a member of a retirement
12 system who is an employee in the executive branch of a state employer or
13 an employee of a state employer or a participating employer who has
14 attained age fifty-five and has at least twenty-five years of creditable
15 service in a retirement system, but such term shall not include the
16 following persons:
17 (a) elected officials, judges or justices appointed to or serving in
18 court of record and acting village justices;
19 (b) chief administrative officers of participating employers which
20 participate in a teachers' retirement system;
21 (c) officers described in sections 4, 41-a, 46, 61, 70, 70-a, 169
22 (including those officers whose salary is established pursuant to salary
23 plans under subdivision 3 of section 169), 180 and subdivision 1 of
24 section 41 of the executive law and any agency or department head
25 appointed by the governor, comptroller or attorney general;
26 (d) appointed members of boards or commissions any of whose members
27 are appointed by the governor or by another state officer or body;
28 (e) nonjudicial officers and employees of the unified court system
29 unless the chief administrator of the courts elects as provided herein,
30 which election shall cover only nonjudicial officers and employees hold-
31 ing positions in any title in the classified service of the unified
32 court system;
33 (f) officers or employees of the senate unless the senate adopts a
34 resolution authorizing the temporary president to file the election as
35 provided in this subdivision;
36 (g) officers or employees of the assembly unless the assembly adopts a
37 resolution authorizing the speaker of the assembly to file the election
38 as provided in this subdivision; and
39 (h) officers or employees of joint legislative employers unless:
40 (i) with respect to officers or employees of the legislative library,
41 legislative messenger service, legislative health service, legislative
42 ethics committee, the legislative bill drafting commission, and the
43 joint line of the legislative task force on demographic research and
44 reapportionment, the senate and assembly adopt a concurrent resolution
45 authorizing the temporary president of the senate and the speaker of the
46 assembly to jointly file an election as provided in this subdivision;
47 (ii) with respect to officers or employees of components of the senate
48 as identified pursuant to section 90 of the legislative law, the senate
49 adopts a resolution authorizing the temporary president to file an
50 election for officers or employees of those components designated in
51 such resolution; and
52 (iii) with respect to officers or employees of components of the
53 assembly as identified pursuant to section 90 of the legislative law,
54 the assembly adopts a resolution authorizing the speaker of the assembly
55 to file an election for officers or employees of those components desig-
56 nated in such resolution.
A. 5087 14
1 Any election under paragraphs (e) through (h) of this subdivision to
2 make available the retirement incentive provided by this act shall be in
3 writing and filed with the state comptroller not later than ninety days
4 after the effective date of this act. Notwithstanding any other
5 provision of this act, each such filing shall specify the commencement
6 date of the open period.
7 For the purposes of such paragraph (f), (g) or (h) of this subdivi-
8 sion, an employee of the legislature shall be as such term is defined in
9 section 7-a, 7-b or 7-d of the legislative law or by any other provision
10 of law which classifies employees of an entity to be legislative employ-
11 ees for all purposes, but shall not include senators or members of the
12 assembly. The term "joint legislative employer" shall mean legislative
13 commissions, committees, task forces, councils or similar bodies whose
14 membership is comprised of both senators and assembly members, or which
15 consist of commissioners, or the majority of whose membership is
16 appointed by one or more of the following: the temporary president of
17 the senate, the speaker of the assembly, the minority leader of the
18 senate, and/or the minority leader of the assembly. The temporary presi-
19 dent of the senate and the speaker of the assembly shall be the joint
20 legislative employer of the employees of the legislature referred to in
21 sections 7-a and 7-b of the legislative law.
22 f. "College faculty" means an employee, not in the classified service,
23 of a state employer described in paragraphs (b), (c), (d), (e) and (f)
24 of subdivision c of this section or of a community college who is a
25 member of a teachers' retirement system, or the New York state and local
26 employees' retirement system.
27 g. "Active service" means service while being paid on the payroll,
28 provided that (a) a leave of absence with pay shall be deemed active
29 service; (b) other approved leave without pay not to exceed twelve weeks
30 from February 1, 2021 and the commencement of the designated open peri-
31 od; and (c) the period of time subsequent to the June 2021 school term
32 and on or before August 31, 2021 for a teacher (or other employee
33 employed on a school-year basis) who is otherwise in active service on
34 the effective date of this act shall be deemed active service.
35 h. "Open period" means the period beginning with the commencement date
36 as defined in subdivision i of this section and shall be ninety days in
37 length; provided however that there shall be only one such open period
38 and any such period shall not extend beyond September 30, 2021 for a
39 state employer and December 31, 2021 for a participating employer. For
40 educational employers who make election after June 1, 2021, the open
41 period shall begin immediately after such election, and shall not extend
42 beyond August 31, 2021. For the purposes of retirement pursuant to this
43 act, a service retirement application must be filed with the appropriate
44 retirement system not less than fourteen days prior to the effective
45 date of retirement to become effective, unless a shorter period of time
46 is permitted under law.
47 i. "Commencement date" means the first day the retirement benefit
48 mandated by this act shall be made available, which shall mean a date or
49 dates on or after the effective date of this act to be determined by the
50 director of state operations for the executive branch of the state, or
51 for any other state employer or any participating employer which elects
52 to participate pursuant to section three of this act a date on or after
53 the effective date of this act; provided, however, that for an educa-
54 tional employer which elects to participate pursuant to section three of
55 this act, the commencement date shall be June 1, 2021; or immediately
56 after election of the retirement incentive for educational employers who
A. 5087 15
1 elect after June 1, 2021 and provided, further that for participating
2 employers which elect to participate pursuant to section three of this
3 act, except the city of New York and participating employers which are
4 not empowered to act by local law, the commencement date shall be Octo-
5 ber 1, 2021. The director of state operations shall notify the head of
6 the appropriate retirement system of the date of the open period appli-
7 cable to employees of the executive branch or of a state employer prior
8 to the commencement date.
9 § 2. a. A state employer which elects to participate pursuant to
10 section three of this act, participating employer which is not empowered
11 to act by local law which elects to participate pursuant to section
12 three of this act, or the city of New York, if it elects to participate
13 pursuant to section three of this act shall establish a commencement
14 date for the retirement benefit established under section five of this
15 act in the following manner: (a) for the executive branch, the director
16 of state operations shall establish the commencement date in writing to
17 the appropriate retirement system; (b) for state employers described in
18 paragraphs (b), (c), (d), (e) and (f) of subdivision c of section one of
19 this act and participating employers that are not empowered to act by
20 local law, its governing body shall adopt a resolution establishing a
21 commencement date; (c) for state employers described in paragraphs (g),
22 (h), (i) and (j) of subdivision c of section one of this act, the person
23 or persons who make the election to offer the retirement incentive
24 pursuant to part A of the chapter of the laws of 2021 which added this
25 part shall establish a commencement date in writing to the appropriate
26 retirement system; and (d) for the city of New York, the chief executive
27 officer shall issue an executive order establishing the commencement
28 date, provided, however, no executive order, in the case of the city of
29 New York issued pursuant to this section, shall in any manner supersede
30 any local charter. A copy of any such resolution or executive order in
31 the case of the city of New York establishing a commencement date shall
32 be filed with the appropriate retirement system or systems, and, if
33 applicable, on forms provided by such system. The resolution or execu-
34 tive order in the case of the city of New York shall be accompanied by
35 the affidavit of the chief executive officer or other comparable offi-
36 cial certifying the commencement date.
37 b. A state employer, participating employer which is not empowered to
38 act by local law which elects to participate pursuant to section three
39 of this act, or the city of New York if it elects to participate pursu-
40 ant to section three of this act shall be required to establish a
41 commencement date under paragraph a of this subdivision for the retire-
42 ment benefit established under section five of this act. In the event
43 that a state employer, participating employer which is not empowered to
44 act by local law which elects to participate pursuant to section three
45 of this act, or the city of New York if it elects to participate pursu-
46 ant to section three of this act fails to establish a commencement date
47 for the retirement benefit established under section five of this act,
48 the commencement date for the eligible employees of a state employer
49 shall be July 1, 2021. The commencement date for the eligible employees
50 of all other employers referenced in this subdivision shall be September
51 1, 2021.
52 § 3. On or before September 1, 2021, a participating employer or a
53 state employer described in paragraphs (b), (c), (d), (e) and (f) of
54 subdivision c of section one of this act may elect to provide its
55 employees the retirement incentive authorized by this act by (a) the
56 enactment of a local law or (b) in the case of a participating employer
A. 5087 16
1 which is not so empowered to act by local law or a state employer
2 described in paragraphs (b), (c), (d), (e) and (f) of subdivision c of
3 section one of this act, by the adoption of a resolution of its govern-
4 ing body; provided however, no local law or resolution enacted pursuant
5 to this section shall in any manner supersede any local charter,
6 provided further, that for an educational employer such election must be
7 made by July 1, 2021. For a community college operating under the
8 program of state university of New York, such election shall be made by
9 the board of trustees of such community college subject to the approval
10 of its sponsor. A copy of such law or resolution shall be filed with the
11 appropriate retirement system or systems, and, if applicable, on forms
12 provided by such system. The local law or resolution shall be accompa-
13 nied by the affidavit of the chief executive officer or other comparable
14 official certifying the validity of such local law or resolution. The
15 executive branch of the state shall be deemed to have made an election
16 under this section upon its enactment.
17 § 4. Notwithstanding any other provision of law, any eligible employee
18 who (a) has been continuously in the active service of a state employer
19 or of a participating employer from February 1, 2021 to the date imme-
20 diately prior to the commencement date of the applicable open period,
21 (b) files an application for service retirement that is effective during
22 the open period, and (c) is otherwise eligible for a service retirement
23 as of the effective date of the application for retirement shall be
24 entitled to the retirement benefit provided in section five of this act.
25 § 5. a. Notwithstanding any other provision of law, an eligible
26 employee who is: (a) a member of a retirement system and (b) who is
27 entitled to a retirement benefit pursuant to section four of this act
28 may retire during the open period without the reduction of his or her
29 retirement benefit that would otherwise be imposed by article 11 or 15
30 of the retirement and social security law if he or she has attained the
31 age of fifty-five and has completed at least twenty-five or more years
32 of creditable service. An eligible employee who is covered by the
33 provisions of articles 11 and 15 of the retirement and social security
34 law shall retire under the provisions of articles 11 and 15 of the
35 retirement and social security law.
36 b. The director of state operations, the chief executive officer of
37 the city of New York, or chief executive officer or governing board, as
38 appropriate, of the participating employer may deny participation in the
39 retirement benefit provided by subdivision a of this section if the
40 director of state operations, the chief executive officer of New York
41 city or the chief executive officer or governing board of the partic-
42 ipating employer makes a determination that the employee holds a posi-
43 tion that is deemed critical to the maintenance of public health and
44 safety.
45 c. Where an employee is eligible for the retirement benefit under this
46 section and the retirement incentive authorized pursuant to section six
47 of part A of the chapter of the laws of 2021 which added this part, such
48 employee shall elect a section under which he or she will participate.
49 The benefits provided by subdivision a of this section shall not be
50 conditioned upon a state or participating employer making the benefits
51 of section six of part A of this act available to employees in their
52 employ. Further, the benefits provided by subdivision a of this section
53 shall not be available in conjunction with the benefits of section six
54 of part A of the chapter of the laws of 2021 which added this part.
55 d. The action of the director of state operations, the chief executive
56 officer of the city of New York, or chief executive officer or governing
A. 5087 17
1 board, as appropriate, of the participating employer in denying the
2 retirement benefit provided for in subdivision a of this section to any
3 individual shall be subject to review in the manner provided for in
4 article 78 of the civil practice law and rules. Such action for review
5 pursuant to article seventy-eight of the civil practice law and rules
6 shall only be commenced by the individual that was denied the retirement
7 benefit provided by subdivision a of this section.
8 e. After making any such determination under subdivision b of this
9 section, the director of state operations, the chief executive officer
10 of the city of New York and the chief executive officer or governing
11 board, as appropriate, of the participating employer shall notify the
12 appropriate retirement system or teachers' retirement system of its
13 determination.
14 § 6. The pension benefit costs of section five of this act shall be
15 paid by employers as provided by applicable law for each retirement
16 system covered by this act over a period not to exceed five years
17 commencing in the state fiscal year ending March 31, 2023.
18 § 7. This act shall take effect immediately.
19 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
20 sion, section or part of this act shall be adjudged by any court of
21 competent jurisdiction to be invalid, such judgment shall not affect,
22 impair, or invalidate the remainder thereof, but shall be confined in
23 its operation to the clause, sentence, paragraph, subdivision, section
24 or part thereof directly involved in the controversy in which such judg-
25 ment shall have been rendered. It is hereby declared to be the intent of
26 the legislature that this act would have been enacted even if such
27 invalid provisions had not been included herein.
28 § 4. This act shall take effect immediately; provided, however, that
29 the applicable effective date of Parts A and B of this act shall be as
30 specifically set forth in the last section of such Parts.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would provide a temporary retirement incentive for fiscal
year 2021- 2022 for eligible members of the New York State Teachers'
Retirement System (NYSTRS).
Part A of the retirement incentive would provide certain eligible
employees of employers who elect to participate a retirement incentive
of one-twelfth of a year of additional service credit per year of
accrued service credit up to a maximum of three additional years. To be
eligible, a member must be eligible to retire, or have attained age 50
or greater, with at least ten years of service. Members subject to an
early retirement reduction and less than age 55 at retirement will have
their benefit further reduced by 3% per year prior to age 55. Members
not subject to an early retirement reduction and less than age 55 at
retirement will have their benefit reduced by 5% per year prior to age
55.
Part B of the retirement incentive would permit eligible Tier 2, 3 and
4 members of employers who elect to participate to retire without early
retirement reductions upon attainment of at least age 55 with 25 years
of service. Currently 30 years of service are required.
In order to receive either the Part A or Part B benefit, an eligible
member of an employer who has elected to participate must retire during
the employer's designated open period. For Part A, such open period
shall be at least 30 but not more than 90 days in length and for educa-
tional employers, shall not extend beyond August 31, 2021. For Part B,
the open period shall begin immediately after the election to partic-
ipate and shall not extend beyond August 31, 2021. Members may not
A. 5087 18
receive a benefit under both Part A and Part B. Employers participating
in Part A or Part B (or both) would pay the cost of the retirement
incentive over a period not to exceed five years, beginning in the state
fiscal year ending March 31, 2023.
It is not possible to accurately forecast the total cost to the New
York State Teachers' Retirement System employers electing to participate
in this retirement incentive because the number of eligible members
electing to retire under the incentive, their ages and the amount of
service credited cannot be readily estimated. The Part A cost, measured
as the increase in the present value of benefit per participating
member, however, will range from 5% to approximately 250% of final aver-
age salary, depending on the member's age, years of service, and tier at
retirement. The Part B cost per participating member will range from 3%
to approximately 200% of final average salary, depending on the member's
age, years of service, and tier at retirement. The potential number of
members eligible to benefit under Part A is much greater than under Part
B.
Member data is from the System's most recent actuarial valuation
files, consisting of data provided by the employers to the Retirement
System. Data distributions and statistics can be found in the System's
Comprehensive Annual Financial Report (CAFR). System assets are as
reported in the System's financial statements, and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
The source of this estimate is Fiscal Note 2021-9 dated February 3,
2021 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2021 Legislative Session.
I, Richard A. Young, am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would provide additional service credit (one-twelfth of a
year for each year of non-sick leave, non-Article 19 service credited as
of the date of retirement, up to a maximum of three years) for certain
members of the New York State and Local Employees' Retirement System,
New York State Teachers Retirement System, New York City Teachers
Retirement System, New York City Board of Education and the New York
City Employees' Retirement System. Further, for certain members who are
not otherwise eligible for a service retirement benefit, this bill would
provide the ability to retire with reductions. This benefit would be
available to only targeted positions.
In addition, this bill would eliminate the early retirement reductions
at 25 years of service instead of at 30 years of service for retirement
during a specified 90 day period for Tier 2, 3 and 4 members of the New
York State and Local Employees' Retirement System, New York State Teach-
ers Retirement System, New York City Teachers Retirement System, New
York City Board of Education and the New York City Employees' Retirement
System. Employers electing this provision can declare health and safety
positions to be ineligible.
Retiring members may not receive both the additional service credit
and the elimination of the early retirement reductions at 25 years of
service instead of at 30 years of service.
If this bill is enacted, insofar as it affects the New York State and
Local Employees' Retirement System (ERS), the additional cost for each
A. 5087 19
member who receives these benefits will vary depending on the member's
age, years of service, retirement plan and final average salary.
We anticipate that the per-member cost (at retirement) of the addi-
tional service credit benefit will average approximately 65% of a
member's final average salary. This cost will be borne by each employer
electing the incentive over a period not to exceed five years commencing
with a payment in the State fiscal year ending March 31, 2023.
We anticipate that the per-member cost (at retirement) of the elimi-
nation of the early retirement reductions at 25 years of service instead
of at 30 years of service will average approximately 115% of a member's
final average salary. This cost will be borne by each employer electing
the incentive over a period not to exceed five years commencing with a
payment in the State fiscal year ending March 31, 2023.
Summary of relevant resources:
Membership data as of March 31, 2020 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2020 actuari-
al valuation. Distributions and other statistics can be found in the
2020 Report of the Actuary and the 2020 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2020
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, 2020
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 December 30, 2020, and intended for use only
during the 2021 Legislative Session, is Fiscal Note No. 2021-7, prepared
by the Actuary for the New York State and Local Retirement System.