Bill Text: NY A07822 | 2013-2014 | General Assembly | Amended
Bill Title: Relates to an optional twenty-year retirement plan for members of the New York state and local police and fire retirement system.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-06-21 - substituted by s5091 [A07822 Detail]
Download: New_York-2013-A07822-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7822--A
2013-2014 Regular Sessions
I N A S S E M B L Y
June 5, 2013
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the retirement and social security law, relating to an
optional twenty-year retirement plan for members of the New York state
and local police and fire retirement system and to amend chapter 504
of the laws of 2009, amending the retirement and social security law
relating to police and fire retirement provisions
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 adding
2 a new section 384-f to read as follows:
3 S 384-F. OPTIONAL TWENTY-YEAR RETIREMENT PLAN FOR MEMBERS OF THE NEW
4 YORK STATE POLICE AND FIRE RETIREMENT SYSTEM. A. NOTWITHSTANDING THE
5 PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW OR CODE TO THE CONTRARY,
6 ANY MEMBER OF THE NEW YORK STATE POLICE AND FIRE RETIREMENT SYSTEM WHOSE
7 MEMBERSHIP IN SUCH RETIREMENT SYSTEM COMMENCED BETWEEN JULY FIRST, TWO
8 THOUSAND NINE AND MARCH THIRTY-FIRST TWO THOUSAND TWELVE AND IS NOT
9 SUBJECT TO THE TERMS OF AN AGREEMENT AS DEFINED BY SUBDIVISION TWELVE OF
10 SECTION TWO HUNDRED ONE OF THE CIVIL SERVICE LAW, MAY ELECT TO CONTRIB-
11 UTE TO SUCH RETIREMENT SYSTEM PURSUANT TO SECTION THREE HUNDRED EIGHTY-
12 FOUR-D OF THIS TITLE, IF HIS OR HER EMPLOYER HAS PREVIOUSLY ELECTED TO
13 MAKE THE BENEFITS OF SECTION THREE HUNDRED EIGHTY-FOUR-D OF THIS TITLE
14 AVAILABLE TO ITS MEMBERS.
15 B. ANY MEMBER WHO ELECTS TO CONTRIBUTE PURSUANT TO THIS SECTION SHALL
16 NOT BE REQUIRED TO MAKE CONTRIBUTIONS PURSUANT TO ARTICLE FOURTEEN OF
17 THIS CHAPTER OR SECTION TWELVE HUNDRED FOUR OF THIS CHAPTER.
18 C. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION A OF SECTION THREE
19 HUNDRED EIGHTY-FOUR-D OF THIS TITLE ANY MEMBER WHO SEEKS TO ELECT TO
20 CONTRIBUTE PURSUANT TO THIS SECTION MAY DO SO WITHIN SIX MONTHS AFTER
21 THE MEMBER BECOMES A MEMBER OF SUCH RETIREMENT SYSTEM, OR WITHIN SIX
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11059-02-3
A. 7822--A 2
1 MONTHS AFTER HIS OR HER EMPLOYER ELECTS TO MAKE THE BENEFITS OF SECTION
2 THREE HUNDRED EIGHTY-FOUR-D OF THIS TITLE AVAILABLE TO ITS MEMBERS; OR
3 WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION.
4 S 2. Part A of chapter 504 of the laws of 2009, amending the retire-
5 ment and social security law relating to establishing police and fire
6 retirement provisions, is amended by adding a new section 8-a to read as
7 follows:
8 S 8-A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY ANY
9 MEMBER OF THE NEW YORK STATE POLICE AND FIRE RETIREMENT SYSTEM WHO
10 BECAME A MEMBER ON OR AFTER JULY 1, 2009 AND BEFORE JANUARY 10, 2010 MAY
11 JOIN A SPECIAL RETIREMENT PLAN OPEN TO HIM OR HER PURSUANT TO A COLLEC-
12 TIVELY NEGOTIATED AGREEMENT WITH ANY STATE OR LOCAL GOVERNMENT EMPLOYER,
13 WHERE SUCH AGREEMENT WAS UNEXPIRED OR EXPIRED BUT CONTINUED PURSUANT TO
14 SECTION TWO HUNDRED NINE OF THE CIVIL SERVICE LAW ON OR AFTER JULY 1,
15 2009 AND BEFORE JANUARY 10, 2010.
16 S 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would grant that an individual who became a Tier 3 or a Tier
5 member of the New York State and Local Police and Fire Retirement
System (PFRS) and whose employer has elected to provide the provisions
of Section 384-d, and who is not subject to a collective bargaining
agreement, would no longer be required to make mandatory employee
contributions.
This bill would also allow a small number of individuals who became
members of the PFRS on or after July 1, 2009 and before January 9, 2010
and who did not timely file an application to become covered under the
provisions of Section 384-d within the one year required filing period
to file for such coverage.
Further, this bill would amend Chapter 604 of the Laws of 2009 to
allow an individual who became a member of PFRS on or after July 1, 2009
and before January 10, 2010 to join a special retirement plan open to
him or her pursuant to a collective bargaining agreement in effect on or
after July 1, 2009 and before January 10, 2010. Such members who elect
coverage under Article 22 of the Retirement and Social Security Law will
not be required to make employee contributions.
If this bill is enacted, we anticipate that the employers of such
members who are covered under PFRS special retirement contributory plans
would see an increase in their annual contributions for the fiscal year
ending March 31, 2014 of approximately 4.4% of the annual salaries.
In addition to these costs, there would be future annual costs which
would be borne by any employer of a member who would become eligible to
file for Section 384-d coverage. These costs would depend on the current
plan coverage and salaries of affected members. There would also be a
past service cost for each such member, which would depend on the age,
service, salary and plan coverage of the member. These past service
costs would be borne by all the employers in the PFRS.
Summary of relevant resources:
Data: March 31, 2012 Actuarial Year End File with distributions of
membership and other statistics displayed in the 2012 Report of the
Actuary and 2012 Comprehensive Annual Financial Report.
Assumptions and Methods: 2010 and 2011 and 2012 Annual Report to the
Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the
State of New York: Audit and Control.
Market Assets and GASS Disclosures: March 31, 2012 New York State and
Local Retirement System Financial Statements and Supplementary Informa-
tion.
A. 7822--A 3
Valuations of Benefit Liabilities and Actuarial Assets: summarized in
the 2012 Actuarial Valuations report.
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 7, 2013, and intended for use only during
the 2013 Legislative Session, is Fiscal Note No. 2013-44, prepared by
the Actuary for the New York State and Local Police and Fire Retirement
System.
