Bill Text: NY A06419 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to increasing the earnings limitation for positions of public service; increases the earnings limitation from $35,000 to $50,000 in 2024 and thereafter.

Spectrum: Slight Partisan Bill (Democrat 6-2)

Status: (Introduced) 2024-05-23 - print number 6419b [A06419 Detail]

Download: New_York-2023-A06419-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6419

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      April 6, 2023
                                       ___________

        Introduced by M. of A. STIRPE -- read once and referred to the Committee
          on Governmental Employees

        AN  ACT  to amend the retirement and social security law, in relation to
          increasing the earning limitations for retired law  enforcement  offi-
          cers; and providing for the repeal of such provisions upon the expira-
          tion thereof

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

     1    Section 1. Section 212 of the retirement and social  security  law  is
     2  amended by adding a new subdivision 4 to read as follows:
     3    4.  Notwithstanding the provisions of subdivisions one and two of this
     4  section, the earnings limitation for the year two  thousand  twenty-four
     5  and  thereafter  shall  be sixty-five thousand dollars for a retired law
     6  enforcement officer employed as a law  enforcement  officer  after  such
     7  retirement.  For  the purposes of this section, "retired law enforcement
     8  officer" shall mean a retired police officer, a retired  state  trooper,
     9  or a retired deputy sheriff.
    10    §  2.  This  act shall take effect immediately and shall expire and be
    11  deemed repealed January 1, 2029.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          Insofar as it would affect the New York  State  and  Local  Retirement
        System (NYSLRS), this bill would allow retired police officers and depu-
        ty sheriffs to be reemployed in a law enforcement capacity with an annu-
        al  salary  of $65,000 or less to continue to receive their full retire-
        ment benefit for the 5-year period beginning January 1, 2024 and  ending
        December  31,  2028.  Currently,  the  post-retirement earnings limit is
        $35,000.
          If this bill were enacted during the  2023  legislative  session,  the
        direct  cost  incurred  would  be the retiree's post-retirement earnings
        more than $35,000 each calendar year, not to  exceed  the  full  pension
        benefit paid by the NYSLRS during that period.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03862-04-3
        A. 6419                             2

          The  number  of  members  and  retirees  who could be affected by this
        legislation cannot be readily determined. For each retiree hired  pursu-
        ant to this proposal, an annual cost of $30,000 is expected.
          In addition to the direct costs quoted above, insofar as this proposal
        disrupts  the usual pattern and timing of employee turnover (that is, if
        members retire earlier than expected and participating employers hire  a
        retiree  instead  of  a  new billable member), shifts in member behavior
        could generate losses that increase the average billing rate in  20-year
        and 25-year service-based plans from 27.8% to 40.4%. The actual increase
        in  billing rates will depend upon member and employer utilization, with
        the rate above representing an upper maximum.
          All costs will be shared by the State of New York and all  participat-
        ing employers in the NYSLRS and spread over future billing cycles. Since
        this  proposal  exclusively  benefits  retirees, the increased costs are
        primarily attributable to retirees from Tiers 1 - 4. Approximately  half
        the  contributions  required  to fund this proposal will be collected on
        salary reported for current members of Tier 6.
          Summary of relevant resources:
          Membership data as of March 31, 2022 was used in measuring the  impact
        of the proposed change, the same data used in the April 1, 2022 actuari-
        al  valuation.  Distributions  and  other statistics can be found in the
        2022 Report of the Actuary and the 2022 Annual  Comprehensive  Financial
        Report.
          The  actuarial assumptions and methods used are described in the 2020,
        2021, and 2022 Annual Report to the  Comptroller  on  Actuarial  Assump-
        tions,  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, 2022
        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 March 30, 2023, and intended for use only during
        the 2023 Legislative Session, is Fiscal Note No. 2023-3, prepared by the
        Actuary for the New York State and Local Retirement System.