Bill Text: NY A07251 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to creating an optional twenty-year retirement plan for certain police officers and firefighters who are members of the New York state and local police and fire retirement system.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-06 - referred to governmental employees [A07251 Detail]

Download: New_York-2015-A07251-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7251
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                    April 29, 2015
                                      ___________
       Introduced by M. of A. ABBATE -- Multi-Sponsored by -- M. of A. GOLDFED-
         ER  -- read once and referred to the Committee on Governmental Employ-
         ees
       AN ACT to amend the retirement and social security law, in  relation  to
         creating  an  optional  twenty-year retirement plan for certain police
         officers and firefighters who are members of the New  York  state  and
         local police and fire retirement system
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.   The retirement and social  security  law  is  amended  by
    2  adding a new article 26 to read as follows:
    3                                 ARTICLE 26
    4                            BENEFIT ENHANCEMENTS
    5  SECTION 1400. NON-CONTRIBUTORY BASIS.
    6          1401. COLLECTIVE BARGAINING.
    7          1402. PAST SERVICE COSTS.
    8    S  1400. NON-CONTRIBUTORY BASIS. (A) NOTWITHSTANDING THE PROVISIONS OF
    9  THIS CHAPTER OR ANY OTHER LAW TO THE CONTRARY, A PARTICIPATING  EMPLOYER
   10  IN  THE  NEW  YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM MAY
   11  ELECT  TO  PROVIDE  ITS  EMPLOYEES  WHO  ARE  MEMBERS  OF  THE  OPTIONAL
   12  TWENTY-YEAR  RETIREMENT  PLAN FOR POLICE AND FIREFIGHTERS ELIGIBILITY TO
   13  PARTICIPATE ON A NON-CONTRIBUTORY BASIS.
   14    (B) NO MEMBER WHO PARTICIPATES  IN  THIS  NON-CONTRIBUTORY  RETIREMENT
   15  PLAN SHALL BE ENTITLED TO A REFUND OF PREVIOUS CONTRIBUTIONS MADE TO THE
   16  CONTRIBUTORY TWENTY-YEAR RETIREMENT FUND.
   17    S 1401. COLLECTIVE BARGAINING. A DEMAND IN COLLECTIVE BARGAINING NEGO-
   18  TIATIONS FOR THE ADDITIONAL BENEFIT PROVIDED BY SECTION FOURTEEN HUNDRED
   19  OF  THIS ARTICLE SHALL NOT BE SUBJECT TO THE PROVISIONS OF PARAGRAPH (B)
   20  OR (C) OF SUBDIVISION FOUR OF SECTION TWO  HUNDRED  NINE  OF  THE  CIVIL
   21  SERVICE  LAW,  NOR  SHALL  SUCH  DEMAND  BE SUBJECT TO ANY PROVISION FOR
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10605-02-5
       A. 7251                             2
    1  INTEREST ARBITRATION CONTAINED IN ANY LOCAL LAW, RESOLUTION OR ORDINANCE
    2  ADOPTED BY ANY  GOVERNMENTAL  ENTITY  PURSUANT  TO  SUBDIVISION  ONE  OF
    3  SECTION TWO HUNDRED TWELVE OF THE CIVIL SERVICE LAW.
    4    S 1402. PAST SERVICE COSTS. ANY PARTICIPATING EMPLOYER THAT ELECTS THE
    5  ADDITIONAL  BENEFITS  PROVIDED BY THIS ARTICLE MAY ALSO ELECT TO PAY THE
    6  PAST SERVICE COST ASSOCIATED WITH THIS BENEFIT IN  TEN  ANNUAL  INSTALL-
    7  MENTS.
    8    S 2. This act shall take effect immediately.
         FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
         This  bill will allow employers in the New York State and Local Police
       and Fire Retirement System which have elected to provide their employees
       with the benefits of the 20 year contributory retirement plan  to  elect
       to  provide eligibility for their employees to participate on a non-con-
       tributory basis. Any member who participates on a non-contributory basis
       will not be entitled to a refund of previous member contributions.
         If this bill is enacted, there will  be  an  increase  in  the  annual
       contributions  of ELECTING EMPLOYERS on behalf of their Tiers 3, 5 and 6
       members. For the fiscal year ending March  31,  2016,  the  contribution
       increases,  as  a percentage of salary, will be 3.2% for tier 3 members,
       3.5% for tier 5 384-d and 384-e, 6.7% for tier  6  384-d  and  6.8%  for
       384-e. These costs will be borne by the employers which elect to provide
       this benefit.
         There will not be a past service cost.
         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, 2014  actuarial  valu-
       ation.    Distributions  and  other  statistics can be found in the 2014
       Report of the  Actuary  and  the  2014  Comprehensive  Annual  Financial
       Report.
         The  actuarial assumptions and methods used are described in the 2010,
       2011, 2012, 2013 and 2014 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, 2014
       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  statement  of  actuarial  opinion
       contained herein.
         This estimate, dated December 12, 2014,  and  intended  for  use  only
       during  the  2015  Legislative  Session,  is  Fiscal  Note  No. 2015-11,
       prepared by the Actuary for the New York State and Local Police and Fire
       Retirement System and the New York State and Local Employees' Retirement
       System.