Bill Text: NY A10595 | 2019-2020 | General Assembly | Introduced


Bill Title: Provides a temporary retirement incentive for certain public employees (Part A); provides an age 55/25 years temporary retirement incentive for certain public employees (Part B).

Spectrum: Slight Partisan Bill (Democrat 24-9)

Status: (Introduced) 2020-06-05 - referred to governmental employees [A10595 Detail]

Download: New_York-2019-A10595-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          10595

                   IN ASSEMBLY

                                      June 5, 2020
                                       ___________

        Introduced by COMMITTEE ON RULES -- (at request of M. of A. Abinanti) --
          read once and referred to the Committee on Governmental Employees

        AN  ACT  to  provide a temporary retirement incentive for certain public
          employees (Part A); and  to  provide  an  age  55/25  years  temporary
          retirement incentive for certain public employees (Part B)

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

     1    Section 1. This act enacts into law  components  of  legislation  that
     2  would  enable public employers to offer a temporary retirement incentive
     3  to their employees, as well as to provide an age 55/25  years  temporary
     4  incentive  for  certain  public  employees.  Each  component  is  wholly
     5  contained within a Part identified as Parts A and B. The effective  date
     6  for each particular provision contained within such Part is set forth in
     7  the  last  section  of such part. Any provision in any section contained
     8  within a Part, including the effective date of  the  Part,  which  makes
     9  reference  to a section "of this act", when used in connection with that
    10  particular component, shall be deemed to mean and refer  to  the  corre-
    11  sponding  section  of the Part in which it is found, unless noted other-
    12  wise. The benefits of this act shall not be  applicable  to  anyone  who
    13  first  became  a member of a public retirement system of the state on or
    14  after January first, two thousand ten.
    15    § 2. Legislative findings. The legislature finds and declares that the
    16  retirement benefits provided for in this act  are  designed  to  achieve
    17  cost-savings for public employers and to avoid layoffs of public employ-
    18  ees  in  this  time  of fiscal need. Therefore, the retirement incentive
    19  benefit provided for in Part A of this  act  and  the  age  55/25  years
    20  retirement  benefit provided for in Part B of this act are intended only
    21  to be temporary in nature for employees who are eligible to receive  and
    22  qualify  for  the  applicable benefit during the applicable time periods
    23  specified within each Part.  Further,  nothing  in  this  act  shall  be
    24  construed  to create an expectation of a future or continuing retirement
    25  benefit for any public employee who is not eligible to receive and qual-
    26  ify for the retirement benefits in this act during the  applicable  time
    27  periods.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16471-02-0

        A. 10595                            2

     1                                   PART A

     2    Section 1. Definitions. As used in this act, unless the context clear-
     3  ly requires otherwise:
     4    a.  "Retirement  system" means the New York state and local employees'
     5  retirement system, the New York state teachers' retirement  system,  the
     6  New  York  city  teachers' retirement system, the New York city board of
     7  education retirement system or the New York city  employees'  retirement
     8  system,  exclusive  of  the  retirement  plans  established  pursuant to
     9  sections 13-156 and 13-157 of the administrative code of the city of New
    10  York.
    11    b. "Teachers' retirement system" means the New  York  state  teachers'
    12  retirement system or the New York city teachers' retirement system.
    13    c. "Optional retirement program" means the programs established pursu-
    14  ant  to the provisions of section 181, 391 or 6251 of the education law;
    15  or continued pursuant to section 3 of chapter 980 of the laws of 1962.
    16    d. "State employer" means (a) the executive branch of the  state,  (b)
    17  the state-operated institutions of the state university of New York, (c)
    18  the  statutory and contract colleges operated pursuant to section 357 of
    19  the education law, (d) the state university construction  fund  (herein-
    20  after  referred  to in this act as the "fund"), (e) a cooperative exten-
    21  sion association (hereinafter referred to in this act  as  the  "associ-
    22  ation"), (f) the city university of New York as defined in subdivision 2
    23  of  section 6202 of the education law, (g) the unified court system, (h)
    24  the senate, (i) the assembly, and (j) joint legislative employers.
    25    e. (a) "Participating employer" means an employer, other than a  state
    26  employer,  which  participates  in  a retirement system; such term shall
    27  include a community college operating under the  program  of  the  state
    28  university of New York.
    29    (b)  "Educational  employer" means a participating employer which is a
    30  school district, a board of cooperative educational  services,  a  voca-
    31  tional education and extension board, an institution for the instruction
    32  of the deaf and of the blind as enumerated in section 4201 of the educa-
    33  tion law, or a school district as enumerated in section 1 of chapter 566
    34  of the laws of 1967, as amended.
    35    f.  "Eligible employee" means a person who is a member of a retirement
    36  system or a participant in an optional  retirement  program  who  is  an
    37  employee in the executive branch of a state employer or an employee of a
    38  state employer or a participating employer which makes an election under
    39  this  section  or  section  four  of  this  act, but such term shall not
    40  include the following persons:
    41    (a) elected officials, judges or justices appointed to or serving in a
    42  court of record and acting village justices;
    43    (b) chief administrative officers  of  participating  employers  which
    44  participate in a teachers' retirement system;
    45    (c)  officers  described  in  sections  4, 41-a, 46, 61, 70, 70-a, 169
    46  (including those officers whose salary is established pursuant to salary
    47  plans under subdivision 3 of section 169),  180  and  subdivision  1  of
    48  section  41  of  the  executive  law  and  any agency or department head
    49  appointed by the governor, comptroller or attorney general;
    50    (d) appointed members of boards or commissions any  of  whose  members
    51  are appointed by the governor or by another state officer or body;
    52    (e)  nonjudicial  officers  and  employees of the unified court system
    53  unless the chief administrator of the courts elects as provided  herein,
    54  which election shall cover only nonjudicial officers and employees hold-

        A. 10595                            3

     1  ing  positions  in  any  title  in the classified service of the unified
     2  court system;
     3    (f)  officers  or  employees  of the senate unless the senate adopts a
     4  resolution authorizing the temporary president to file the  election  as
     5  provided in this subdivision;
     6    (g) officers or employees of the assembly unless the assembly adopts a
     7  resolution  authorizing the speaker of the assembly to file the election
     8  as provided in this subdivision; and
     9    (h) officers or employees of joint legislative employers unless:
    10    (i) with respect to officers or employees of the legislative  library,
    11  legislative  messenger  service, legislative health service, legislative
    12  ethics commission, the legislative bill  drafting  commission,  and  the
    13  joint  line  of  the  legislative task force on demographic research and
    14  reapportionment, the senate and assembly adopt a  concurrent  resolution
    15  authorizing the temporary president of the senate and the speaker of the
    16  assembly to jointly file an election as provided in this subdivision;
    17    (ii) with respect to officers or employees of components of the senate
    18  as  identified pursuant to section 90 of the legislative law, the senate
    19  adopts a resolution authorizing  the  temporary  president  to  file  an
    20  election  for  officers  or  employees of those components designated in
    21  such resolution; and
    22    (iii) with respect to officers  or  employees  of  components  of  the
    23  assembly  as  identified  pursuant to section 90 of the legislative law,
    24  the assembly adopts a resolution authorizing the speaker of the assembly
    25  to file an election for officers or employees of those components desig-
    26  nated in such resolution.
    27    Any election under paragraphs (e) through (h) of this  subdivision  to
    28  make  available  the  retirement  incentive program provided by this act
    29  shall be in writing and filed with the state comptroller not later  than
    30  ninety  days  after  the effective date of this act. Notwithstanding any
    31  other provision  of  this  act,  each  such  filing  shall  specify  the
    32  commencement date and the length of the open period. Only one open peri-
    33  od  shall  be  made  available  for employees covered by elections under
    34  paragraphs (e) through (h) of this subdivision.
    35    For the purposes of such paragraphs (f), (g) or (h) of  this  subdivi-
    36  sion, an employee of the legislature shall be as such term is defined in
    37  section 7-a, 7-b or 7-d of the legislative law or by any other provision
    38  of law which classifies employees of an entity to be legislative employ-
    39  ees  for  all purposes, but shall not include senators or members of the
    40  assembly. The term "joint legislative employer" shall  mean  legislative
    41  commissions,  committees,  task forces, councils or similar bodies whose
    42  membership is comprised of both senators and assembly members, or  which
    43  consist  of  commissioners,  or  the  majority  of  whose  membership is
    44  appointed by one or more of the following: the  temporary  president  of
    45  the  senate,  the  speaker  of  the assembly, the minority leader of the
    46  senate, and/or the minority leader of the assembly. The temporary presi-
    47  dent of the senate and the speaker of the assembly shall  be  the  joint
    48  legislative  employer of the employees of the legislature referred to in
    49  sections 7-a and 7-b of the legislative law.
    50    g. "Eligible title" means any title where a certain  number  of  posi-
    51  tions  in that title, as identified by agency, department, work location
    52  or appointing authority, college or campus, as the case  may  be,  would
    53  otherwise  be identified for layoff but for this act because of economy,
    54  consolidation or abolition of functions, curtailment  of  activities  or
    55  otherwise.  However, an eligible title can also include a title as iden-
    56  tified by agency, department, work location or appointing  authority  in

        A. 10595                            4

     1  which  positions  would  not  be  eliminated but into which employees in
     2  titles affected by layoff can be transferred or reassigned  pursuant  to
     3  the civil service law, rule or regulation. The determination of eligible
     4  titles  shall  be  made by: (a) the appointing authority, subject to the
     5  approval of the director of state operations for titles within the exec-
     6  utive branch, (b)  the  board  of  trustees  for  the  state  university
     7  (including  the  association) subject to the approval of the director of
     8  state operations, the fund, the city university of New York and of  each
     9  community  college  operating under the program of the state university,
    10  (c) the person or persons who elect under paragraphs (e) through (h)  of
    11  subdivision f of this section to offer the retirement incentive provided
    12  by  this  act,  and  (d) the chief executive officer or other comparable
    13  official for participating employers other than the community colleges.
    14    h. "College faculty" means an employee, not in the classified service,
    15  of a state employer described in paragraphs (b), (c), (d), (e)  and  (f)
    16  of  subdivision  d  of  this  section or of a community college who is a
    17  member of a teachers' retirement system, the New York  state  and  local
    18  employees'  retirement system or a participant in an optional retirement
    19  program.
    20    i. "Active service" means service while being  paid  on  the  payroll,
    21  provided  that  (a)  a  leave of absence with pay shall be deemed active
    22  service; (b) other approved leave without pay not to exceed twelve weeks
    23  from February 1, 2020 and the commencement of the designated open  peri-
    24  od;  and  (c) the period of time subsequent to the June 2020 school term
    25  and on or before August 31,  2020  for  a  teacher  (or  other  employee
    26  employed  on  a school-year basis) who is otherwise in active service on
    27  February 1, 2020 shall be deemed active service.
    28    j. "Open period" means the period beginning with the commencement date
    29  as defined in subdivision k of this section and shall not be  more  than
    30  ninety  days  nor  less  than thirty days in length, as specified by the
    31  director of state operations or by a participating employer pursuant  to
    32  section  four  of this act, by the appropriate board of trustees for the
    33  state university (including the association), the fund, the city univer-
    34  sity of New York or a community college operating under a program of the
    35  state university or by a state employer  described  in  paragraphs  (g),
    36  (h), (i) and (j) of subdivision d of this section; provided however that
    37  any such period shall not extend beyond September 30, 2020 for the exec-
    38  utive  branch of a state employer described in paragraphs (a) and (b) of
    39  subdivision d of this section (except for college faculty),  not  beyond
    40  December  31,  2020  for  participating employers, college faculty for a
    41  state employer described in paragraph  (b)  of  subdivision  d  of  this
    42  section,  state  employers  described  in paragraphs (c), (d) and (e) of
    43  subdivision d of this section, not beyond January 31, 2021  for  college
    44  faculty  of  an  employer described in paragraph (f) of subdivision d of
    45  this section, and not beyond August 31, 2020 for educational  employers.
    46  For  the  purposes of retirement pursuant to this act, a service retire-
    47  ment application must be filed with the  appropriate  retirement  system
    48  not less than fourteen days prior to the effective date of retirement to
    49  become  effective,  unless  a  shorter period of time is permitted under
    50  law.
    51    k. "Commencement date" means the first day  the  retirement  incentive
    52  authorized  by this act shall be made available, which shall mean a date
    53  on or after the effective date of this  act  to  be  determined  by  the
    54  director  of state operations for the executive branch of the state, and
    55  which date shall occur no later than thirty days  before  September  30,
    56  2020  or for any participating employer a date on or after the effective

        A. 10595                            5

     1  date of this act. For any other state employer, such term shall  mean  a
     2  date on or after the effective date of this act and shall occur no later
     3  than thirty days before September 30, 2020.  The director of state oper-
     4  ations shall notify the head of the appropriate retirement system of the
     5  date of each open period applicable to employees of the executive branch
     6  or of a state employer prior to the commencement date.
     7    § 2. The determination of whether a title shall be considered eligible
     8  shall  consider  whether the reduction of a specific number of positions
     9  within a title would unacceptably:
    10    a. Directly result in a reduction of the level of service required  or
    11  mandated to protect and care for clients of the state or a participating
    12  employer or to assure public health and safety;
    13    b.  Endanger  the  health  or  safety  of  employees of the state or a
    14  participating employer; or
    15    c. Clearly result in a loss of significant revenue to the state  or  a
    16  participating  employer or result in substantially increased overtime or
    17  contractual costs. However, upon the determination of  the  director  of
    18  state operations, with respect to employees of the executive branch of a
    19  state  employer,  any titles may be determined eligible if the vacancies
    20  created can be  controlled  by  the  use  of  transfer  or  reassignment
    21  provisions  of  the  civil  service  law,  rules or regulations or other
    22  deployment of state employees.
    23    § 3. a. Eligibility for inclusion in the retirement incentive provided
    24  by section six of this act shall be determined: (a)  by  seniority:  for
    25  participating  employers and for state employers described in paragraphs
    26  (a), (b), (c), (d), (e) and (f) of subdivision d of section one of  this
    27  act,  other  than  for college faculty; seniority shall mean the date of
    28  original permanent  appointment  in  the  civil  service  of  the  state
    29  adjusted to include veteran's credits for those entitled to receive such
    30  credits  pursuant  to  sections  80,  80-a and 85, if applicable, of the
    31  civil service law, as established in the official records of the depart-
    32  ment of civil service, regardless of the  jurisdictional  classification
    33  of  the  position  or  the status of the incumbent; (b) by seniority, as
    34  applicable for  the  unified  court  system;  (c)  for  state  employers
    35  described in paragraphs (h), (i) and (j) of subdivision d of section one
    36  of this act as determined by the person or persons who make the election
    37  to  offer  the retirement incentive; and (d) for college faculty, by the
    38  board of trustees of the state university, city university and  of  each
    39  community college operating under the program of the state university.
    40    b. All eligible employees serving in eligible titles desiring to avail
    41  themselves  of  the retirement incentive provided by section six of this
    42  act shall provide written notice to his or her employer on or before the
    43  twenty-first day preceding the end of the open period, or before the end
    44  of the applicable open period as such open period is determined  by  the
    45  director  of  state  operations.  Failure to provide such written notice
    46  shall render  the  employee  ineligible  for  the  retirement  incentive
    47  provided by this act.
    48    §  4.  a.  On or before August 31, 2020, a participating employer or a
    49  state employer described in paragraphs (b), (c), (d),  (e)  and  (f)  of
    50  subdivision  d  of  section  one  of  this  act may elect to provide its
    51  employees the retirement incentive authorized by this  act  by  (a)  the
    52  enactment  of a local law or (b) in the case of a participating employer
    53  which is not so empowered to act  by  local  law  or  a  state  employer
    54  described  in  paragraphs (b), (c), (d), (e) and (f) of subdivision d of
    55  section one of this act, by the adoption of a resolution of its  govern-
    56  ing  body; provided however, no local law or resolution enacted pursuant

        A. 10595                            6

     1  to this section  shall  in  any  manner  supersede  any  local  charter,
     2  provided further, that for an educational employer such election must be
     3  made  by  July  30,  2020. The local law or resolution shall specify the
     4  commencement  date of the program and the length of the open period. For
     5  a community college operating under the program of state  university  of
     6  New  York,  such election shall be made by the board of trustees of such
     7  community college subject to the approval of its sponsor. A copy of such
     8  law or resolution shall be filed with the appropriate retirement  system
     9  or  systems,  and,  if applicable, on forms provided by such system. The
    10  local law or resolution shall be accompanied by  the  affidavit  of  the
    11  chief  executive  officer or other comparable official certifying to the
    12  information contained in subdivision b of this section.
    13    b. Notwithstanding any other provision of law, the  benefits  provided
    14  by  this  act  shall  not  be  made  available to any person who (a) has
    15  received any retirement incentive authorized by any provision  of  state
    16  law,  or  (b)  who  receives,  has  received or is eligible to receive a
    17  payment in a lump sum or in another form  from  a  retirement  incentive
    18  pursuant  to  the  provisions of a collective bargaining agreement or by
    19  other arrangement with his or her employer, unless such person  files  a
    20  written  statement  with  his  or her employer, a copy of which shall be
    21  forwarded to the appropriate retirement system, that he or she agrees to
    22  waive any right to such payment. A participating employer who  makes  an
    23  election  pursuant  to  this  section  and  who  offers or has offered a
    24  retirement incentive pursuant to the provisions of a collective bargain-
    25  ing agreement or by other arrangement shall prepare, and file with  each
    26  retirement  system,  a  list  containing  the  names and social security
    27  numbers of all persons described in this  subdivision.  A  participating
    28  employer  is  authorized  to  exempt  persons  in  its  employ  from the
    29  provisions of paragraph (b) of this subdivision. Such exemption shall be
    30  made part of the election made pursuant to this section.
    31    c. Notwithstanding any other provision of this act  to  the  contrary,
    32  the mayor of the city of New York may declare employees of the community
    33  colleges  of  the city university of New York ineligible for the retire-
    34  ment incentive provided by this act by filing such notification with the
    35  chancellor of the city university of New York, with copies to the  chair
    36  of  the  senate  finance  committee,  the chair of the assembly ways and
    37  means committee and the director of the budget,  in  writing,  no  later
    38  than the thirtieth day next succeeding the effective date of this act.
    39    § 5. Notwithstanding any other provision of law, any eligible employee
    40  serving in an eligible title who:
    41    a.  has been continuously in the active service of a state employer or
    42  of a participating employer from February 1, 2020 to the date immediate-
    43  ly prior to the commencement date of the applicable open period;
    44    b. files an application for service retirement (or files the appropri-
    45  ate application and authorization  form  with  the  optional  retirement
    46  program  and  a  duly  acknowledged  retirement  incentive form for such
    47  program with the appropriate personnel office) that is effective  during
    48  the open period; and
    49    c.  is otherwise eligible for a service retirement as of the effective
    50  date of the application for retirement shall be entitled to the  retire-
    51  ment  incentive  provided  in  section six of this act. If not otherwise
    52  eligible for a service retirement, the following person shall be  deemed
    53  to satisfy the eligibility condition of this section: a person who is at
    54  least  age fifty with ten or more years service as of the effective date
    55  of retirement (other than a member of a retirement plan  which  provides
    56  for  half-pay  pension  upon  completion  of  twenty-five  years or less

        A. 10595                            7

     1  service without regard to age); a member  of  a  retirement  plan  which
     2  provides  for  half-pay  pension upon completion of twenty-five years of
     3  service without regard to age who has not accrued, excluding  additional
     4  credit  granted  pursuant  to  this  act, the minimum number of years of
     5  service required to retire with an allowance equal to fifty  percent  of
     6  final average salary under such plan, but has, with the inclusion of the
     7  additional  credit provided under this act, accrued such number of years
     8  of credit; or a participant in an  optional  retirement  plan  at  least
     9  fifty  years  of age with ten years of service on an annual salary basis
    10  with his or her employer as of the date of retirement.
    11    § 6. Notwithstanding any other provision of law, an eligible  employee
    12  serving in an eligible title who is:
    13    a. A member of a retirement system and who is entitled to a retirement
    14  incentive  pursuant  to section five of this act shall receive a retire-
    15  ment incentive of one-twelfth of a year of additional retirement  credit
    16  for  each year of pension service credited as of the date of retirement,
    17  up to a maximum of three years of retirement service credit at the  time
    18  of retirement, provided, however, that service credit provided under the
    19  provisions of sections 902 and 911 of the retirement and social security
    20  law  shall  not  be  included when calculating the additional retirement
    21  credit awarded pursuant to this act. For the  New  York  city  teachers'
    22  retirement  system,  the  New York city employees' retirement system and
    23  the New York city board of education retirement  system  such  incentive
    24  shall be available for all purposes, including fulfilling the qualifying
    25  service requirements of plan A and C, if applicable.
    26    An eligible employee who is covered by the provisions of article 15 of
    27  the retirement and social security law shall retire under the provisions
    28  of  article  15 of the retirement and social security law. The amount of
    29  such benefit for an eligible employee who is covered by  article  15  of
    30  the  retirement and social security law and retires under the provisions
    31  of this section (other than a  member  with  thirty  or  more  years  of
    32  service  in the New York state and local employees' retirement system or
    33  a teachers' retirement system) shall be reduced by six percent for  each
    34  of  the first two years by which retirement precedes age sixty-two, plus
    35  a further reduction of three percent for each year by  which  retirement
    36  precedes  age  sixty,  provided, however, the foregoing reductions shall
    37  not apply: (i) in any case where an eligible employee can  retire  after
    38  twenty-five  years of service with immediate payability prior to the age
    39  of sixty-two pursuant to section 604-b  of  the  retirement  and  social
    40  security law or (ii) to any time period subsequent to the point at which
    41  an  eligible employee can retire for service without reduction of his or
    42  her service retirement allowance pursuant to article 16 of  the  retire-
    43  ment  and  social  security  law.  Such  reduction shall be prorated for
    44  partial years. The amount of such benefit for an eligible employee  with
    45  thirty  or  more  years of service who is a member of the New York state
    46  and local employees' retirement system or a teachers' retirement  system
    47  or an eligible employee who is a participant in the optional twenty-five
    48  year early retirement program for certain New York city members governed
    49  by  section 604-c of the retirement and social security law, as added by
    50  chapter 96 of the laws of 1995 or a twenty-five year participant in  the
    51  age  fifty-five  retirement  program  governed  by  section 604-i of the
    52  retirement and social security law, with twenty-five or  more  years  of
    53  service  and  who  is covered by article 15 of the retirement and social
    54  security law shall be reduced by five percent for  each  year  by  which
    55  retirement  pursuant to this section precedes age fifty-five. The amount
    56  of such benefit for an eligible New York city employee with five or more

        A. 10595                            8

     1  years of service and who is a participant in the age fifty-seven retire-
     2  ment program governed by section 604-d  of  the  retirement  and  social
     3  security  law  shall be reduced by one-thirtieth for the first two years
     4  by which retirement precedes age fifty-seven plus a further reduction of
     5  one-twentieth for each year by which retirement precedes age fifty-five.
     6  Such  reduction  shall  be prorated for partial years. There shall be no
     7  reduction for an eligible New York city employee in a physically  taxing
     8  position  with twenty-five or more years of service and who is a partic-
     9  ipant (i) in the optional twenty-five year early retirement program  for
    10  certain  members  governed by section 604-c of the retirement and social
    11  security law, as added by chapter 96 of the laws of 1995, or (ii) in the
    12  age fifty-seven retirement program governed  by  section  604-d  of  the
    13  retirement and social security law.
    14    An  eligible  employee  serving in an eligible title who is covered by
    15  article 11 of the retirement and social security law shall retire  under
    16  the provisions of such article. The amount of such benefit for an eligi-
    17  ble employee covered by article 11 of the retirement and social security
    18  law  other than a member of a teachers' retirement system or a member of
    19  the New York state and local employees' retirement system with thirty or
    20  more years of service, a participant  in  the  optional  age  fifty-five
    21  improved  benefit retirement program for certain New York city employees
    22  governed by section 445-d of the retirement and social security law,  as
    23  added  by chapter 96 of the laws of 1995, with twenty-five or more years
    24  of service, or a participant in the optional age  fifty-five  retirement
    25  program for New York city teachers and certain other members governed by
    26  section  445-i  of  the retirement and social security law, with twenty-
    27  five or more years of service, shall be reduced by six percent for  each
    28  of  the  first  two  years  by which retirement pursuant to this section
    29  precedes age sixty-two, plus a further reduction of  three  percent  for
    30  each  year  by  which  retirement  pursuant to this section precedes age
    31  sixty, provided, however, the foregoing reductions shall not apply:  (i)
    32  in  any  case  where  an eligible employee can retire pursuant to a plan
    33  which permits retirement for service with immediate  payability,  exclu-
    34  sive  of  this  act,  prior to the age of fifty-five or (ii) to any time
    35  period subsequent to the point at which an eligible employee can  retire
    36  for service without reduction of his or her service retirement allowance
    37  pursuant  to  article 16 of the retirement and social security law. Such
    38  reduction shall be prorated for partial years. The amount of such  bene-
    39  fit  for  an eligible employee who is a member of a teachers' retirement
    40  system or a member of the New York state and local employees' retirement
    41  system with thirty or more  years  of  service,  a  participant  in  the
    42  optional  age fifty-five improved benefit retirement program for certain
    43  New York city employees governed by section 445-d of the retirement  and
    44  social  security  law,  as added by chapter 96 of the laws of 1995, with
    45  twenty-five or more years of service, or a participant in  the  optional
    46  age fifty-five retirement program for New York city teachers and certain
    47  other  members  governed  by  section 445-i of the retirement and social
    48  security law, with twenty-five or more  years  of  service  and  who  is
    49  covered by article 11 of the retirement and social security law shall be
    50  reduced  by  five  percent for each year by which retirement pursuant to
    51  this section precedes age fifty-five. Such reduction shall  be  prorated
    52  for  partial years. There shall be no reduction for an eligible New York
    53  city employee in a physically taxing position and who is  a  participant
    54  in  the  optional age fifty-five improved benefit retirement program for
    55  certain New York city employees governed by section 445-d of the retire-

        A. 10595                            9

     1  ment and social security law, as added by chapter  96  of  the  laws  of
     2  1995, with twenty-five or more years of service.
     3    An  eligible  employee serving in an eligible title who is not covered
     4  by article 11 or 15 of the retirement  and  social  security  law  shall
     5  retire  under  the provisions of the plan by which he or she is covered.
     6  The amount of such benefit shall be reduced by  five  percent  for  each
     7  year  by  which  retirement pursuant to this section precedes age fifty-
     8  five, provided, however, the foregoing reductions shall not  apply:  (i)
     9  in  any  case  where  an eligible employee can retire pursuant to a plan
    10  which permits retirement for service with immediate  payability,  exclu-
    11  sive  of  this  act,  prior to the age of fifty-five or (ii) to any time
    12  period subsequent to the point at which an eligible employee can  retire
    13  for service without reduction of his or her service retirement allowance
    14  pursuant  to  article 16 of the retirement and social security law. Such
    15  reduction shall be prorated for partial years.
    16    An eligible employee serving in an eligible title who participates  in
    17  a  retirement  plan  which  provides for a retirement allowance equal to
    18  fifty percent of final average salary upon the completion of twenty-five
    19  years of service without regard to age and who is otherwise eligible  to
    20  retire  shall  retire  under  the provisions of such plan. Such employee
    21  shall, at the time of retirement, be credited with one-twelfth of a year
    22  of additional retirement service credit for each year of service credit-
    23  ed under such plan as of the date of retirement,  up  to  a  maximum  of
    24  three  years  of retirement service credit, subject to the provisions of
    25  subdivision b of this section. If such employee has not accrued, exclud-
    26  ing additional credit granted pursuant to this act, the  minimum  number
    27  of  years of service required to retire with an allowance equal to fifty
    28  percent of final average salary under  such  plan,  but  has,  with  the
    29  inclusion of the additional credit provided under this act, accrued such
    30  number  of  years of credit, the benefit payable shall be the percentage
    31  of final average salary that would  ordinarily  be  applicable  to  such
    32  individual  upon retirement with such amount of credit (including incen-
    33  tive credit), reduced by five per centum per year for each year by which
    34  the number of years of service otherwise  required  to  retire  with  an
    35  allowance equal to fifty percent of final average salary under such plan
    36  exceeds  the amount of service credited to such employee under such plan
    37  at retirement (excluding the  additional  retirement  incentive  service
    38  credit  provided pursuant to this act). Such reduction shall be prorated
    39  for partial years.
    40    b. A participant in an optional retirement program who is entitled  to
    41  a  retirement  incentive  pursuant  to  section  five  of this act shall
    42  receive an additional employer contribution equal to  an  amount,  which
    43  shall  be  calculated as follows: (one-twelfth for each year of service)
    44  multiplied by (fifteen percent) multiplied by (the  employee's  earnable
    45  annual  salary  rate in effect on March 1, 2020 or the effective date of
    46  this act if the employee retires prior to March 1,  2020),  such  amount
    47  not  to exceed forty-five percent of such salary rate. Such contribution
    48  shall be made to the employee's retirement annuity  under  the  optional
    49  retirement  program  up  to  the  maximum  contribution  allowable under
    50  section 415 of the internal revenue code. Any contribution in excess  of
    51  that  limit  shall be contributed by the employer to an internal revenue
    52  code section 403(b) contract on behalf of the employee to the extent  it
    53  can  be  contributed  on  a  before-tax  basis  under the maximum limits
    54  allowed under the internal revenue code. Contributions in excess of that
    55  amount shall be paid in cash to the participant in three equal  install-
    56  ments  during  a  twenty-four  month  period commencing on such eligible

        A. 10595                           10

     1  employee's effective date  of  retirement.  Provided,  however,  if  the
     2  employee  is  employed  by  the  city  university of New York and in the
     3  active service of such employer on October 1, 2020 or the effective date
     4  of  this  act  if  the  employee  retires  prior to October 1, 2020, the
     5  employee's earnable annual salary rate shall be the annual  salary  rate
     6  in effect on such applicable date.
     7    § 7. a. An employee of a state employer, other than the city universi-
     8  ty  of  New York, who retires pursuant to this act may defer calculation
     9  of the value of accumulated sick leave  credits,  if  any,  and  partic-
    10  ipation in the state health insurance plan.
    11    b.  Notwithstanding any other provision of law, any termination pay or
    12  leave arising from accrued sick leave or accrued  annual  leave  for  an
    13  eligible  employee  who has elected the retirement incentive provided by
    14  this act and who is a member of the New York city  teachers'  retirement
    15  system  employed by the board of education of the city of New York shall
    16  be paid in three equal installments during a  twenty-four  month  period
    17  commencing on such eligible employee's effective date of retirement.
    18    c.  An  employee of the city of New York or the city university of New
    19  York, as defined in subdivision 2 of section 6202 of the education  law,
    20  who  retires under the retirement incentive provided by this act, who is
    21  eligible  for  terminal  leave  pursuant  to  an  applicable  collective
    22  bargaining  agreement  or a personnel policy or rule or retirement leave
    23  pursuant to section 3107 of the education law  or  who  has  an  accrued
    24  annual  leave  balance on the effective date of retirement shall be paid
    25  in three equal installments two months, fourteen months and  twenty-four
    26  months following such eligible employee's effective date of retirement.
    27    §  8.  a. With respect to employees of the executive branch of a state
    28  employer, any position, other  than  a  position  supported  by  special
    29  revenue  funds, vacated as a result of an eligible employee in an eligi-
    30  ble title receiving the retirement incentive provided by section six  of
    31  this  act  shall be eliminated unless such position is identified by the
    32  director of state operations as one into which  another  state  employee
    33  can  be  appointed,  transferred  or  reassigned  pursuant  to the civil
    34  service law, rules or regulations, in which case the former position  of
    35  the  state  employee  so  appointed,  transferred or reassigned shall be
    36  eliminated.
    37    b. The director of state operations shall  direct  the  department  of
    38  civil  service  to  prepare a report designating the title, grade level,
    39  salary, and classification, according to appointing  authority,  (i)  of
    40  each  position  which  is  eliminated  pursuant to subdivision a of this
    41  section, (ii) of each position into which  another  state  employee  was
    42  appointed,  transferred,  or  reassigned and the former position of such
    43  state employee, and (iii) of each position  which  is  eliminated  as  a
    44  result  of an appointment, transfer or reassignment referred to in para-
    45  graph (ii) of this subdivision. Such report shall be available no  later
    46  than  ninety days after the last date of the open period related to such
    47  positions.
    48    § 9. Notwithstanding any inconsistent provision of  section  eight  of
    49  this act or any other provision of law:
    50    a.  A  participating  employer  or a state employer described in para-
    51  graphs (b) through (e) of subdivision d of section one of this act shall
    52  not be required to eliminate the  positions  of  eligible  employees  in
    53  eligible  titles  receiving the retirement incentive provided by section
    54  six of this act if such employer can demonstrate that it will achieve  a
    55  compensation  savings such that the total amount of base salary paid for
    56  the two-year period subsequent to the effective date of  retirement  for

        A. 10595                           11

     1  such  eligible  employees in eligible titles to those new hires, if any,
     2  who otherwise would not have been  hired  by  such  employer  after  the
     3  effective  date  of  this  act but for the retirement incentive provided
     4  herein shall be no more than one-half of the total amount of base salary
     5  that  would have been paid to such eligible employees from their date of
     6  retirement for such two-year  period.  Each  such  employer  shall  make
     7  available its plans for achieving these savings.
     8    b. The city of New York or the city university of New York, as defined
     9  in  subdivision  2  of  section  6202 of the education law, shall not be
    10  required to eliminate the positions of eligible  employees  in  eligible
    11  titles  receiving  the  retirement  incentive provided by section six of
    12  this act if such participating employer can  demonstrate  that  it  will
    13  achieve  a  compensation  or  equivalent headcount savings such that the
    14  total amount of compensation including benefits paid  for  the  two-year
    15  period  subsequent to the effective date of retirement for such eligible
    16  employees in eligible titles to those new hires, if any,  who  otherwise
    17  would  not  have been hired by such employer after the effective date of
    18  this act but for the retirement incentive provided herein  shall  be  no
    19  more  than  one-half  of the total amount of base salary that would have
    20  been paid to such eligible employees from their date of  retirement  for
    21  such two-year period. For purposes of this subdivision, the "city of New
    22  York"  shall  mean  the  city  of New York or a participating employer a
    23  majority of the members of whose governing body are:  (a)  appointed  by
    24  the  mayor of the city of New York or other citywide elected official, a
    25  borough president of the city of New York, or any  combination  thereof;
    26  (b) designated by virtue of their city of New York office or position or
    27  their  office  or position with a participating employer whose governing
    28  board is  described  in  paragraph  (a)  of  this  subdivision;  or  (c)
    29  appointed  or  designated by any combination of the foregoing. Each such
    30  employer shall make available its plans for achieving these savings.
    31    c. To the extent any transfer of personnel between the state  employer
    32  described  in  paragraph (a) of subdivision d of section one of this act
    33  and the state employer described in paragraph (b) of  subdivision  d  of
    34  section one of this act occurs pursuant to a voluntary transfer of state
    35  personnel, or otherwise, the provisions of subdivision a of this section
    36  with  respect  to achieving savings shall be applicable.  Nothing herein
    37  shall be construed to impair the authority  of  the  director  of  state
    38  operations  pursuant  to  subdivision g of section one or section two of
    39  this act.
    40    § 10. Nothing in this act shall be used to provide benefits that shall
    41  exceed the limits contained in section 415 of the internal revenue code.
    42  Provided, however, any service retirement benefit which has been reduced
    43  because of section 415 of the internal revenue code shall  be  increased
    44  when  (and  consistent  with)  the  dollar  limits in section 415 of the
    45  internal revenue code are adjusted by the internal revenue  service  for
    46  cost  of living increases. Such increases shall not increase the benefit
    47  in excess of the service retirement benefit otherwise payable.
    48    § 11. Any eligible employee who retires pursuant to the provisions  of
    49  this act and enters or reenters public service as defined in subdivision
    50  e  of section 210 of the retirement and social security law and joins or
    51  rejoins any public retirement system of the state as defined in subdivi-
    52  sion 6 of section 152 of the  retirement  and  social  security  law  or
    53  elects  to  participate  in  an optional retirement program shall if the
    54  additional benefit was  provided  pursuant  to:  (a)  subdivision  a  of
    55  section  six  of  this act, forfeit the additional benefit authorized by
    56  this act at the time of his or her subsequent retirement; or (b)  subdi-

        A. 10595                           12

     1  vision b of section six of this act, repay to the state or participating
     2  employer  such  additional  contribution  together  with the appropriate
     3  interest as determined by the state comptroller.
     4    §  12.  Notwithstanding  any  other  provision  of law, if the service
     5  retirement benefit of a member of a retirement system is  subject  to  a
     6  maximum  retirement  benefit,  the additional benefit authorized by this
     7  act will be computed by multiplying the final average salary  times  the
     8  number  of  years  of  service credit granted by section six of this act
     9  times the benefit fraction of the plan under which such member retires.
    10    § 13. The provisions of section 430 of the retirement and social secu-
    11  rity law shall not apply to any benefit or benefit improvement  provided
    12  by this act.
    13    §  14.  The  pension  benefit costs of subdivision a of section six of
    14  this act shall be paid by employers as provided by  applicable  law  for
    15  each  retirement  system covered by this act over a period not to exceed
    16  five years commencing in the state fiscal year ending March 31, 2022.
    17    § 15. Where an employee is eligible to receive the benefit  authorized
    18  under  section six and the retirement benefit provided for under section
    19  five of part B of the chapter of the laws of 2020 which added this part,
    20  such employee may elect a section under which he  or  she  will  partic-
    21  ipate.
    22    § 16. This act shall take effect immediately.

    23                                   PART B

    24    Section 1. Definitions. As used in this act, unless the context clear-
    25  ly requires otherwise:
    26    a.  "Retirement  system" means the New York state and local employees'
    27  retirement system, the New York state teachers' retirement  system,  the
    28  New  York  city  teachers' retirement system, the New York city board of
    29  education retirement system or the New York city  employees'  retirement
    30  system,  exclusive  of  the  retirement  plans  established  pursuant to
    31  sections 13-156 and 13-157 of the administrative code of the city of New
    32  York.
    33    b. "Teachers' retirement system" means the New  York  state  teachers'
    34  retirement system or the New York city teachers' retirement system.
    35    c.  "State  employer" means (a) the executive branch of the state, (b)
    36  the state-operated institutions of the state university of New York, (c)
    37  the statutory and contract colleges operated pursuant to section 357  of
    38  the  education  law, (d) the state university construction fund (herein-
    39  after referred to in this act as the "fund"), (e) a  cooperative  exten-
    40  sion  association  (hereinafter  referred to in this act as the "associ-
    41  ation"), and  (f)  the  city  university  of  New  York  as  defined  in
    42  subdivision  2  of  section  6202  of the education law, (g) the unified
    43  court system, (h) the senate, (i) the assembly, and (j)  joint  legisla-
    44  tive employers.
    45    d.  (a) "Participating employer" means an employer, other than a state
    46  employer, which participates in a retirement  system;  such  term  shall
    47  include a community college operating under the program of state univer-
    48  sity of New York.
    49    (b)  "Educational  employer" means a participating employer which is a
    50  school district, a board of cooperative educational  services,  a  voca-
    51  tional education and extension board, an institution for the instruction
    52  of the deaf and of the blind as enumerated in section 4201 of the educa-
    53  tion law, or a school district as enumerated in section 1 of chapter 566
    54  of the laws of 1967, as amended.

        A. 10595                           13

     1    e.  "Eligible employee" means a person who is a member of a retirement
     2  system who is an employee in the executive branch of a state employer or
     3  an employee of a state employer or  a  participating  employer  who  has
     4  attained age fifty-five and has at least twenty-five years of creditable
     5  service  in  a  retirement  system,  but such term shall not include the
     6  following persons:
     7    (a) elected officials, judges or justices appointed to or  serving  in
     8  court of record and acting village justices;
     9    (b)  chief  administrative  officers  of participating employers which
    10  participate in a teachers' retirement system;
    11    (c) officers described in sections 4, 41-a,  46,  61,  70,  70-a,  169
    12  (including those officers whose salary is established pursuant to salary
    13  plans  under  subdivision  3  of  section 169), 180 and subdivision 1 of
    14  section 41 of the executive  law  and  any  agency  or  department  head
    15  appointed by the governor, comptroller or attorney general;
    16    (d)  appointed  members  of boards or commissions any of whose members
    17  are appointed by the governor or by another state officer or body;
    18    (e) nonjudicial officers and employees of  the  unified  court  system
    19  unless  the chief administrator of the courts elects as provided herein,
    20  which election shall cover only nonjudicial officers and employees hold-
    21  ing positions in any title in the  classified  service  of  the  unified
    22  court system;
    23    (f)  officers  or  employees  of the senate unless the senate adopts a
    24  resolution authorizing the temporary president to file the  election  as
    25  provided in this subdivision;
    26    (g) officers or employees of the assembly unless the assembly adopts a
    27  resolution  authorizing the speaker of the assembly to file the election
    28  as provided in this subdivision; and
    29    (h) officers or employees of joint legislative employers unless:
    30    (i) with respect to officers or employees of the legislative  library,
    31  legislative  messenger  service, legislative health service, legislative
    32  ethics committee, the legislative  bill  drafting  commission,  and  the
    33  joint  line  of  the  legislative task force on demographic research and
    34  reapportionment, the senate and assembly adopt a  concurrent  resolution
    35  authorizing the temporary president of the senate and the speaker of the
    36  assembly to jointly file an election as provided in this subdivision;
    37    (ii) with respect to officers or employees of components of the senate
    38  as  identified pursuant to section 90 of the legislative law, the senate
    39  adopts a resolution authorizing  the  temporary  president  to  file  an
    40  election  for  officers  or  employees of those components designated in
    41  such resolution; and
    42    (iii) with respect to officers  or  employees  of  components  of  the
    43  assembly  as  identified  pursuant to section 90 of the legislative law,
    44  the assembly adopts a resolution authorizing the speaker of the assembly
    45  to file an election for officers or employees of those components desig-
    46  nated in such resolution.
    47    Any election under paragraphs (e) through (h) of this  subdivision  to
    48  make available the retirement incentive provided by this act shall be in
    49  writing  and filed with the state comptroller not later than ninety days
    50  after  the  effective  date  of  this  act.  Notwithstanding  any  other
    51  provision  of  this act, each such filing shall specify the commencement
    52  date of the open period.
    53    For the purposes of such paragraph (f), (g) or (h)  of  this  subdivi-
    54  sion, an employee of the legislature shall be as such term is defined in
    55  section 7-a, 7-b or 7-d of the legislative law or by any other provision
    56  of law which classifies employees of an entity to be legislative employ-

        A. 10595                           14

     1  ees  for  all purposes, but shall not include senators or members of the
     2  assembly. The term "joint legislative employer" shall  mean  legislative
     3  commissions,  committees,  task forces, councils or similar bodies whose
     4  membership  is comprised of both senators and assembly members, or which
     5  consist of  commissioners,  or  the  majority  of  whose  membership  is
     6  appointed  by  one  or more of the following: the temporary president of
     7  the senate, the speaker of the assembly,  the  minority  leader  of  the
     8  senate, and/or the minority leader of the assembly. The temporary presi-
     9  dent  of  the  senate and the speaker of the assembly shall be the joint
    10  legislative employer of the employees of the legislature referred to  in
    11  sections 7-a and 7-b of the legislative law.
    12    f. "College faculty" means an employee, not in the classified service,
    13  of  a  state employer described in paragraphs (b), (c), (d), (e) and (f)
    14  of subdivision c of this section or of a  community  college  who  is  a
    15  member of a teachers' retirement system, or the New York state and local
    16  employees' retirement system.
    17    g.  "Active  service"  means  service while being paid on the payroll,
    18  provided that (a) a leave of absence with pay  shall  be  deemed  active
    19  service; (b) other approved leave without pay not to exceed twelve weeks
    20  from  February 1, 2020 and the commencement of the designated open peri-
    21  od; and (c) the period of time subsequent to the June 2020  school  term
    22  and  on  or  before  August  31,  2020  for a teacher (or other employee
    23  employed on a school-year basis) who is otherwise in active  service  on
    24  the effective date of this act shall be deemed active service.
    25    h. "Open period" means the period beginning with the commencement date
    26  as  defined in subdivision i of this section and shall be ninety days in
    27  length; provided however that there shall be only one such  open  period
    28  and  any  such  period  shall not extend beyond September 30, 2020 for a
    29  state employer and December 31, 2020 for a participating  employer.  For
    30  educational  employers  who  make  election after June 1, 2020, the open
    31  period shall begin immediately after such election, and shall not extend
    32  beyond August 31, 2020.  For the purposes of retirement pursuant to this
    33  act, a service retirement application must be filed with the appropriate
    34  retirement system not less than fourteen days  prior  to  the  effective
    35  date  of retirement to become effective, unless a shorter period of time
    36  is permitted under law.
    37    i. "Commencement date" means the  first  day  the  retirement  benefit
    38  mandated by this act shall be made available, which shall mean a date or
    39  dates on or after the effective date of this act to be determined by the
    40  director  of  state operations for the executive branch of the state, or
    41  for any other state employer or any participating employer which  elects
    42  to  participate pursuant to section three of this act a date on or after
    43  the effective date of this act; provided, however, that  for  an  educa-
    44  tional employer which elects to participate pursuant to section three of
    45  this  act,  the  commencement date shall be June 1, 2020; or immediately
    46  after election of the retirement incentive for educational employers who
    47  elect after June 1, 2020 and provided, further  that  for  participating
    48  employers  which  elect to participate pursuant to section three of this
    49  act, except the city of New York and participating employers  which  are
    50  not  empowered to act by local law, the commencement date shall be Octo-
    51  ber 1, 2020. The director of state operations shall notify the  head  of
    52  the  appropriate retirement system of the date of the open period appli-
    53  cable to employees of the executive branch or of a state employer  prior
    54  to the commencement date.
    55    §  2.  a.  A  state  employer  which elects to participate pursuant to
    56  section three of this act, participating employer which is not empowered

        A. 10595                           15

     1  to act by local law which elects  to  participate  pursuant  to  section
     2  three  of this act, or the city of New York, if it elects to participate
     3  pursuant to section three of this act  shall  establish  a  commencement
     4  date  for  the retirement benefit established under section five of this
     5  act in the following manner: (a) for the executive branch, the  director
     6  of  state operations shall establish the commencement date in writing to
     7  the appropriate retirement system; (b) for state employers described  in
     8  paragraphs (b), (c), (d), (e) and (f) of subdivision c of section one of
     9  this  act  and  participating employers that are not empowered to act by
    10  local law, its governing body shall adopt a  resolution  establishing  a
    11  commencement  date; (c) for state employers described in paragraphs (g),
    12  (h), (i) and (j) of subdivision c of section one of this act, the person
    13  or persons who make the  election  to  offer  the  retirement  incentive
    14  pursuant  to  part A of the chapter of the laws of 2020 which added this
    15  part shall establish a commencement date in writing to  the  appropriate
    16  retirement system; and (d) for the city of New York, the chief executive
    17  officer  shall  issue  an  executive order establishing the commencement
    18  date, provided, however, no executive order, in the case of the city  of
    19  New  York issued pursuant to this section, shall in any manner supersede
    20  any local charter. A copy of any such resolution or executive  order  in
    21  the  case of the city of New York establishing a commencement date shall
    22  be filed with the appropriate retirement  system  or  systems,  and,  if
    23  applicable,  on  forms provided by such system. The resolution or execu-
    24  tive order in the case of the city of New York shall be  accompanied  by
    25  the  affidavit  of the chief executive officer or other comparable offi-
    26  cial certifying the commencement date.
    27    b. A state employer, participating employer which is not empowered  to
    28  act  by  local law which elects to participate pursuant to section three
    29  of this act, or the city of New York if it elects to participate  pursu-
    30  ant  to  section  three  of  this  act  shall be required to establish a
    31  commencement date under paragraph a of this subdivision for the  retire-
    32  ment  benefit  established  under section five of this act. In the event
    33  that a state employer, participating employer which is not empowered  to
    34  act  by  local law which elects to participate pursuant to section three
    35  of this act, or the city of New York if it elects to participate  pursu-
    36  ant  to section three of this act fails to establish a commencement date
    37  for the retirement benefit established under section five of  this  act,
    38  the  commencement  date  for  the eligible employees of a state employer
    39  shall be July 1, 2020.  The commencement date for the eligible employees
    40  of all other employers referenced in this subdivision shall be September
    41  1, 2020.
    42    § 3. On or before September 1, 2020, a  participating  employer  or  a
    43  state  employer  described  in  paragraphs (b), (c), (d), (e) and (f) of
    44  subdivision c of section one of  this  act  may  elect  to  provide  its
    45  employees  the  retirement  incentive  authorized by this act by (a) the
    46  enactment of a local law or (b) in the case of a participating  employer
    47  which  is  not  so  empowered  to  act  by local law or a state employer
    48  described in paragraphs (b), (c), (d), (e) and (f) of subdivision  c  of
    49  section  one of this act, by the adoption of a resolution of its govern-
    50  ing body; provided however, no local law or resolution enacted  pursuant
    51  to  this  section  shall  in  any  manner  supersede  any local charter,
    52  provided further, that for an educational employer such election must be
    53  made by July 1, 2020.   For a  community  college  operating  under  the
    54  program  of state university of New York, such election shall be made by
    55  the board of trustees of such community college subject to the  approval
    56  of its sponsor. A copy of such law or resolution shall be filed with the

        A. 10595                           16

     1  appropriate  retirement  system or systems, and, if applicable, on forms
     2  provided by such system. The local law or resolution shall  be  accompa-
     3  nied by the affidavit of the chief executive officer or other comparable
     4  official  certifying  the validity of such local law or resolution.  The
     5  executive branch of the state shall be deemed to have made  an  election
     6  under this section upon its enactment.
     7    § 4. Notwithstanding any other provision of law, any eligible employee
     8  who  (a) has been continuously in the active service of a state employer
     9  or of a participating employer from February 1, 2020 to the  date  imme-
    10  diately  prior  to  the commencement date of the applicable open period,
    11  (b) files an application for service retirement that is effective during
    12  the open period, and (c) is otherwise eligible for a service  retirement
    13  as  of  the  effective  date  of the application for retirement shall be
    14  entitled to the retirement benefit provided in section five of this act.
    15    § 5. a. Notwithstanding  any  other  provision  of  law,  an  eligible
    16  employee  who  is:  (a)  a  member of a retirement system and (b) who is
    17  entitled to a retirement benefit pursuant to section four  of  this  act
    18  may  retire  during  the open period without the reduction of his or her
    19  retirement benefit that would otherwise be imposed by article 11  or  15
    20  of  the retirement and social security law if he or she has attained the
    21  age of fifty-five and has completed at least twenty-five or  more  years
    22  of  creditable  service.  An  eligible  employee  who  is covered by the
    23  provisions of articles 11 and 15 of the retirement and  social  security
    24  law  shall  retire  under  the  provisions  of articles 11 and 15 of the
    25  retirement and social security law.
    26    b. The director of state operations, the chief  executive  officer  of
    27  the  city of New York, or chief executive officer or governing board, as
    28  appropriate, of the participating employer may deny participation in the
    29  retirement benefit provided by subdivision a  of  this  section  if  the
    30  director  of  state  operations, the chief executive officer of New York
    31  city or the chief executive officer or governing board  of  the  partic-
    32  ipating  employer  makes a determination that the employee holds a posi-
    33  tion that is deemed critical to the maintenance  of  public  health  and
    34  safety.
    35    c. Where an employee is eligible for the retirement benefit under this
    36  section  and the retirement incentive authorized pursuant to section six
    37  of part A of the chapter of the laws of 2020 which added this part, such
    38  employee shall elect a section under which he or she  will  participate.
    39  The  benefits  provided  by  subdivision  a of this section shall not be
    40  conditioned upon a state or participating employer making  the  benefits
    41  of  section  six  of  part A of this act available to employees in their
    42  employ. Further, the benefits provided by subdivision a of this  section
    43  shall  not  be available in conjunction with the benefits of section six
    44  of part A of the chapter of the laws of 2020 which added this part.
    45    d. The action of the director of state operations, the chief executive
    46  officer of the city of New York, or chief executive officer or governing
    47  board, as appropriate, of the  participating  employer  in  denying  the
    48  retirement  benefit provided for in subdivision a of this section to any
    49  individual shall be subject to review in  the  manner  provided  for  in
    50  article  78  of the civil practice law and rules. Such action for review
    51  pursuant to article seventy-eight of the civil practice  law  and  rules
    52  shall only be commenced by the individual that was denied the retirement
    53  benefit provided by subdivision a of this section.
    54    e.  After  making  any  such determination under subdivision b of this
    55  section, the director of state operations, the chief  executive  officer
    56  of  the  city  of  New York and the chief executive officer or governing

        A. 10595                           17

     1  board, as appropriate, of the participating employer  shall  notify  the
     2  appropriate  retirement  system  or  teachers'  retirement system of its
     3  determination.
     4    §  6.  The  pension benefit costs of section five of this act shall be
     5  paid by employers as provided by  applicable  law  for  each  retirement
     6  system  covered  by  this  act  over  a  period not to exceed five years
     7  commencing in the state fiscal year ending March 31, 2022.
     8    § 7. This act shall take effect immediately.
     9    § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
    10  sion, section or part of this act shall be  adjudged  by  any  court  of
    11  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    12  impair, or invalidate the remainder thereof, but shall  be  confined  in
    13  its  operation  to the clause, sentence, paragraph, subdivision, section
    14  or part thereof directly involved in the controversy in which such judg-
    15  ment shall have been rendered. It is hereby declared to be the intent of
    16  the legislature that this act would  have  been  enacted  even  if  such
    17  invalid provisions had not been included herein.
    18    §  4.  This act shall take effect immediately; provided, however, that
    19  the applicable effective date of Parts A and B of this act shall  be  as
    20  specifically set forth in the last section of such Parts.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would  provide a temporary retirement incentive for fiscal
        year 2020-2021 for eligible members of  the  New  York  State  Teachers'
        Retirement  System  (NYSTRS).  In  Part  A  of the retirement incentive,
        employers who  elect  to  participate  would  provide  certain  eligible
        employees  a retirement incentive of one-twelfth of a year of additional
        service credit per year of accrued service credit up  to  a  maximum  of
        three  additional years. To be eligible, a member must have attained age
        50 or greater, with at least ten years of service. Members  not  subject
        to an early retirement reduction and less than age 55 at retirement will
        have  their  benefit  reduced  by  five  percent for each year their age
        precedes 55.
          Part B of the retirement incentive would permit eligible Tier 2, 3 and
        4 members of employers who elect to participate to retire without  early
        retirement  reductions  upon attainment of at least age 55 with 25 years
        of service. Currently 30 years of service are required.
          In order to receive either the Part A or Part B benefit,  an  eligible
        member  of an employer who has elected to participate must retire during
        the employer's designated open period. For  Part  A,  such  open  period
        shall  be at least 30 but not more than 90 days in length and for educa-
        tional employers, shall not extend beyond August 31, 2020. For  Part  B,
        the  open  period  shall begin immediately after the election to partic-
        ipate and shall not extend beyond  August  31,  2020.  Members  may  not
        receive  a benefit under both Part A and Part B. Employers participating
        in Part A or Part B (or both) would  pay  the  cost  of  the  retirement
        incentive over a period not to exceed five years, beginning in the state
        fiscal year ending March 31, 2022.
          It  is  not  possible to accurately forecast the total cost to the New
        York State Teachers' Retirement System employers electing to participate
        in this retirement incentive because  the  number  of  eligible  members
        electing  to  retire  under  the incentive, their ages and the amount of
        service credited cannot be readily estimated. The Part A cost,  measured
        as  the  increase  in  the  present  value  of benefit per participating
        member, however, will range from 5% to approximately 250% of final aver-
        age salary, depending on the member's age, years of service, and tier at
        retirement. The Part B cost per participating member will range from  3%

        A. 10595                           18

        to approximately 200% of final average salary, depending on the member's
        age,  years  of service, and tier at retirement. The potential number of
        members eligible to benefit under Part A is much greater than under Part
        B.
          Member  data  is  from  the  System's  most recent actuarial valuation
        files, consisting of data provided by the employers  to  the  Retirement
        System.   Data distributions and statistics can be found in the System's
        Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
        reported  in the System's financial statements, and can also be found in
        the CAFR. Actuarial assumptions and methods are provided in the System's
        Actuarial Valuation Report.
          The source of this estimate is Fiscal Note 2020-26 dated June 3,  2020
        prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
        System and is intended for use only during the 2020 Legislative Session.
        I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
        Retirement  System.  I  am a member of the American Academy of Actuaries
        and I meet the Qualification Standards of the American Academy of  Actu-
        aries to render the actuarial opinion contained herein.
          FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
          This  bill  would  provide additional service credit (one-twelfth of a
        year for each year of non-sick leave, non-Article 19 service credited as
        of the date of retirement, up to a maximum of three years)  for  certain
        members  of  the  New York State and Local Employees' Retirement System,
        New York State  Teachers  Retirement  System,  New  York  City  Teachers
        Retirement  System,  New  York  City Board of Education and the New York
        City Employees' Retirement System. Further, for certain members who  are
        not otherwise eligible for a service retirement benefit, this bill would
        provide  the  ability  to  retire with reductions. This benefit would be
        available to only targeted positions.
          In addition, this bill would eliminate the early retirement reductions
        at 25 years of service instead of at 30 years of service for  retirement
        during  a specified 90 day period for Tier 2, 3 and 4 members of the New
        York State and Local Employees' Retirement System, New York State Teach-
        ers Retirement System, New York City  Teachers  Retirement  System,  New
        York City Board of Education and the New York City Employees' Retirement
        System.  Employers electing this provision can declare health and safety
        positions to be ineligible.
          Retiring members may not receive both the  additional  service  credit
        and  the  elimination  of the early retirement reductions at 25 years of
        service instead of at 30 years of service.
          If this bill is enacted, insofar as it affects the New York State  and
        Local  Employees'  Retirement System (ERS), the additional cost for each
        member who receives these benefits will vary depending on  the  member's
        age, years of service, retirement plan and final average salary.
          We  anticipate  that  the per-member cost (at retirement) of the addi-
        tional service credit  benefit  will  average  approximately  65%  of  a
        member's  final average salary. This cost will be borne by each employer
        electing the incentive over a period not to exceed five years commencing
        with a payment in the State fiscal year ending March 31, 2022.
          We anticipate that the per-member cost (at retirement) of  the  elimi-
        nation of the early retirement reductions at 25 years of service instead
        of  at 30 years of service will average approximately 110% of a member's
        final average salary. This cost will be borne by each employer  electing
        the  incentive  over a period not to exceed five years commencing with a
        payment in the State fiscal year ending March 31, 2022.
          Summary of relevant resources:

        A. 10595                           19

          The membership data used in  measuring  the  impact  of  the  proposed
        change  was  the same as that used in the March 31, 2019 actuarial valu-
        ation.  Distributions and other statistics can  be  found  in  the  2019
        Report  of  the  Actuary  and  the  2019  Comprehensive Annual Financial
        Report.
          The  actuarial assumptions and methods used are described in the 2015,
        2016, 2017, 2018, and 2019 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, 2019
        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 June 1, 2020, and intended for  use  only  during
        the  2020  Legislative Session, is Fiscal Note No. 2020-116, prepared by
        the Actuary for the New York State and Local Retirement System.
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