Bill Text: NY A07882 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to allowing Harry L. Sidor eligibility to apply for military service credit in the NYC teachers' retirement system.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-05-09 - print number 7882a [A07882 Detail]
Download: New_York-2017-A07882-Introduced.html
Bill Title: Relates to allowing Harry L. Sidor eligibility to apply for military service credit in the NYC teachers' retirement system.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-05-09 - print number 7882a [A07882 Detail]
Download: New_York-2017-A07882-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7882 2017-2018 Regular Sessions IN ASSEMBLY May 18, 2017 ___________ Introduced by M. of A. CURRAN -- read once and referred to the Committee on Governmental Employees AN ACT to authorize Harry L. Sidor eligibility to apply for military service credit in the New York city teachers' retirement system The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Notwithstanding subdivision 6 of section 1000 of the 2 retirement and social security law, Harry L. Sidor, a retired member of 3 the New York city teachers' retirement system, who was on active duty in 4 the United States Navy from May 25, 1951 until May 19, 1955, shall be 5 eligible to apply for military service credit in the New York city 6 teachers' retirement system as otherwise provided pursuant to the 7 provisions of section 1000 of the retirement and social security law. 8 § 2. This act shall take effect immediately. 9 FISCAL NOTE.--Pursuant to Legislative Law, Section 50: 10 PROVISIONS OF PROPOSED LEGISLATION: With respect to the New York City 11 Teachers' Retirement System (NYCTRS), the proposed legislation would, 12 notwithstanding Section 1000 of the Retirement and Social Security Law, 13 provide Mr. Harry Sidor the opportunity to apply for additional retire- 14 ment service credits, up to three years (inclusive of any prior 15 purchases of military service credit) for his military service. The 16 additional service will not be considered in meeting any service or age 17 requirement for pension eligibility purposes. For purposes of this 18 Fiscal Note, we have assumed that the additional service will be 19 reflected in his retirement benefit prospectively from the Date of 20 Enactment. 21 All costs associated with the implementation of this proposed legis- 22 lation would be borne by NYCTRS. 23 The Effective Date of the proposed legislation would be the Date of 24 Enactment. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08524-02-7A. 7882 2 1 BACKGROUND: Chapter 644 of the Military Law of 1998 permitted public 2 employees to purchase military service credit in their retirement system 3 for the length of time of that military service, up to three years. 4 Harry Sidor was a member of NYCTRS from February 1, 1988 until his 5 retirement on July 17, 1997. Since Mr. Sidor retired before December 21, 6 1998, the effective date of Chapter 644, he was not eligible to apply 7 for military service credit under such provision. 8 Mr. Sidor began receiving a pension of $9,729.25 per year under the 9 100% Joint and Survivor with Pop-Up form of payment since July 17, 1997 10 and has been receiving annual Cost of Living Adjustments beginning five 11 years after his date of retirement from NYCTRS. Under this form of 12 payment, pension is payable to him as long as he is alive and 100% of 13 the benefit continues to his beneficiary after his death; if the benefi- 14 ciary predeceases Mr. Sidor, the pension benefit "pops up" or reverts 15 back to the maximum benefit. 16 If this legislation is passed, Mr. Sidor would receive a pension 17 reflecting the additional military service purchased. For purposes of 18 this Fiscal Note, we have assumed that Mr. Sidor will purchase three 19 years of military service credit and that the cost to Mr. Sidor to 20 purchase the service would be $4,472 based on his salary during his last 21 12 months of service. 22 FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: The estimated financial 23 impact of this proposal as of June 30, 2016 has been calculated as 24 follows: (1) the actuarial present value of the retirement benefits Mr. 25 Sidor is expected to receive if this proposed legislation were enacted 26 (reflecting the additional military service purchased), less (2) the 27 actuarial present value of the retirement benefits Mr. Sidor is current- 28 ly receiving, less (3) the employee cost of purchasing the additional 29 military service. 30 Based on the actuarial assumptions and methods described herein, the 31 enactment of this proposed legislation would increase the Actuarial 32 Present Value of Benefits (APVB) and the Unfunded Actuarial Accrued 33 Liability (UAAL) of NYCTRS by approximately $15,000 as of June 30, 2016. 34 FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with 35 Section 13.638.2(k-2) of the Administrative Code of the City of New York 36 (ACNY), new UAAL attributable to benefit changes are to be amortized as 37 determined by the Actuary but generally over the remaining working life- 38 time of those impacted by the benefit changes. 39 For this proposed legislation, since Mr. Sidor is retired the entire 40 increase in UAAL of approximately $15,000 based on the Actuary's actuar- 41 ial assumptions and methods in effect on June 30, 2016 would be recog- 42 nized in the first year. 43 If enacted into law during the 2017 Legislative Session, the increase 44 in employer contributions would be recognized in Fiscal Year 2019. 45 OTHER COSTS: Not measured in this Fiscal Note is the impact on admin- 46 istrative costs. 47 ACTUARIAL ASSUMPTIONS AND METHODS: Additional APVB, UAAL and employer 48 contributions presented herein have been calculated based on the 49 Actuary's actuarial assumptions and methods in effect for the Prelimi- 50 nary June 30, 2016 (Lag) actuarial valuation used to determine the 51 Preliminary Fiscal Year 2018 employer contributions of NYCTRS. 52 STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu- 53 ary for, and independent of, the New York City Pension Funds and Retire- 54 ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the 55 Conference of Consulting Actuaries and a Member of the American AcademyA. 7882 3 1 of Actuaries. I meet the Qualification Standards of the American Academy 2 of Actuaries to render the actuarial opinion contained herein. 3 FISCAL NOTE IDENTIFICATION: This Fiscal Note 2017-11 dated April 25, 4 2017, was prepared by the Chief Actuary for the New York City Teachers' 5 Retirement System. This estimate is intended for use only during the 6 2017 Legislative Session.