Bill Text: NY A09542 | 2013-2014 | General Assembly | Introduced

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Bill Title: Relates to benefits for participating employers in the New York state and local police and fire retirement system.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2014-05-28 - reported referred to ways and means [A09542 Detail]

Download: New_York-2013-A09542-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         9542
                                 I N  A S S E M B L Y
                                      May 6, 2014
                                      ___________
       Introduced by M. of A. ABBATE -- read once and referred to the Committee
         on Governmental Employees
       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 adding
    2  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  TWENTY
   12  YEAR  RETIREMENT PLAN FOR POLICE AND FIREFIGHTERS ELIGIBILITY TO PARTIC-
   13  IPATE 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 PLAN.
   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
   22  INTEREST ARBITRATION CONTAINED IN ANY LOCAL LAW, RESOLUTION OR ORDINANCE
   23  ADOPTED BY ANY  GOVERNMENTAL  ENTITY  PURSUANT  TO  SUBDIVISION  ONE  OF
   24  SECTION TWO HUNDRED TWELVE OF THE CIVIL SERVICE LAW.
   25    S 1402. PAST SERVICE COSTS. ANY PARTICIPATING EMPLOYER THAT ELECTS THE
   26  ADDITIONAL  BENEFITS  PROVIDED BY THIS ARTICLE MAY ALSO ELECT TO PAY THE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14986-01-4
       A. 9542                             2
    1  PAST SERVICE COST ASSOCIATED WITH THIS BENEFIT IN  TEN  ANNUAL  INSTALL-
    2  MENTS.
    3    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, 2015, the percentage of
       salary increases will be 3.7% for tier 3 members, 4.1% for tier 5 384-d,
       4.0% for tier 5 384-e, 7.7% for tier 6 384-d and 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, 2013 actuarial valu-
       ation. Distributions and other statistics  can  be  found  in  the  2013
       Report of the Actuary and 2013 Comprehensive Annual Financial Report.
         The  actuarial assumptions and methods used are described in the 2010,
       2011, 2012 and 2013  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, 2013
       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 April 14, 2014, and intended for use only  during
       the  2014  Legislative Session, is Fiscal Note No. 2014-116, 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.