Bill Text: NY A05361 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to calculating pension benefits for public employees.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-02-11 - referred to governmental employees [A05361 Detail]

Download: New_York-2019-A05361-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5361
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 11, 2019
                                       ___________
        Introduced  by  M.  of  A. FITZPATRICK -- Multi-Sponsored by -- M. of A.
          MANKTELOW -- read once and referred to the Committee  on  Governmental
          Employees
        AN  ACT  to amend the retirement and social security law, in relation to
          calculating pension benefits for public employees
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  75  of the retirement and social security law is
     2  amended by adding a new subdivision e to read as follows:
     3    e. For purposes of this title, all final  average  salaries  shall  be
     4  calculated  exclusive of any form of overtime compensation, unused vaca-
     5  tion time, unused sick leave or unused personal time.
     6    § 2. Section 375 of the retirement and social security law is  amended
     7  by adding a new subdivision e to read as follows:
     8    e.  For  purposes  of  this title, all final average salaries shall be
     9  calculated exclusive of any form of overtime compensation, unused  vaca-
    10  tion time, unused sick leave or unused personal time.
    11    §  3.  This  act shall take effect on the ninetieth day after it shall
    12  have become a law.
          FISCAL NOTE.--Pursuant to Legislative Law,  Section  50:    This  bill
        would reduce the retirement benefits for members who retire from the New
        York State and Local Employees' Retirement System (ERS) and the New York
        State  and  Local  Police and Fire Retirement System (PFRS) by requiring
        the exclusion of any form  of  overtime  compensation,  unused  vacation
        time,  unused  sick  leave or unused personal time in the calculation of
        final average salary (FAS).
          This legislation would reduce the benefits of many members in the  ERS
        and  the PFRS who retire on or after the effective date. If this becomes
        law, it is likely to face a  constitutional  challenge  based  upon  the
        guarantee that a member's benefits may not be diminished.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05978-02-9

        A. 5361                             2
          There  would be an administrative cost to the System to change the FAS
        calculation.
          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  January  10,  2019,  and intended for use only
        during the  2019  Legislative  Session,  is  Fiscal  Note  No.  2019-20,
        prepared  by  the  Actuary  for  the New York State and Local Retirement
        System.
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