Bill Text: NY S02722 | 2021-2022 | General Assembly | Amended


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 10-6)

Status: (Introduced) 2021-02-22 - PRINT NUMBER 2722A [S02722 Detail]

Download: New_York-2021-S02722-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         2722--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 22, 2021
                                       ___________

        Introduced by Sens. HARCKHAM, MANNION, MARTUCCI, MAYER, SANDERS, SKOUFIS
          -- read twice and ordered printed, and when printed to be committed to
          the  Committee  on Civil Service and Pensions -- committee discharged,
          bill amended, ordered reprinted as amended  and  recommitted  to  said
          committee

        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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03658-04-1

        S. 2722--A                          2

     1  qualify  for  the  applicable benefit during the applicable time periods
     2  specified within each Part.  Further,  nothing  in  this  act  shall  be
     3  construed  to create an expectation of a future or continuing retirement
     4  benefit for any public employee who is not eligible to receive and qual-
     5  ify  for  the retirement benefits in this act during the applicable time
     6  periods.

     7                                   PART A

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

        S. 2722--A                          3

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

        S. 2722--A                          4

     1    g. "Eligible title" means any title where a certain  number  of  posi-
     2  tions  in that title, as identified by agency, department, work location
     3  or appointing authority, college or campus, as the case  may  be,  would
     4  otherwise  be identified for layoff but for this act because of economy,
     5  consolidation  or  abolition  of functions, curtailment of activities or
     6  otherwise. However, an eligible title can also include a title as  iden-
     7  tified  by  agency, department, work location or appointing authority in
     8  which positions would not be eliminated  but  into  which  employees  in
     9  titles  affected  by layoff can be transferred or reassigned pursuant to
    10  the civil service law, rule or regulation. The determination of eligible
    11  titles shall be made by: (a) the appointing authority,  subject  to  the
    12  approval of the director of state operations for titles within the exec-
    13  utive  branch,  (b)  the  board  of  trustees  for  the state university
    14  (including the association) subject to the approval of the  director  of
    15  state  operations, the fund, the city university of New York and of each
    16  community college operating under the program of the  state  university,
    17  (c)  the person or persons who elect under paragraphs (e) through (h) of
    18  subdivision f of this section to offer the retirement incentive provided
    19  by this act, and (d) the chief executive  officer  or  other  comparable
    20  official for participating employers other than the community colleges.
    21    h. "College faculty" means an employee, not in the classified service,
    22  of  a  state employer described in paragraphs (b), (c), (d), (e) and (f)
    23  of subdivision d of this section or of a  community  college  who  is  a
    24  member  of  a  teachers' retirement system, the New York state and local
    25  employees' retirement system or a participant in an optional  retirement
    26  program.
    27    i.  "Active  service"  means  service while being paid on the payroll,
    28  provided that (a) a leave of absence with pay  shall  be  deemed  active
    29  service; (b) other approved leave without pay not to exceed twelve weeks
    30  from  February 1, 2021 and the commencement of the designated open peri-
    31  od; and (c) the period of time subsequent to the June 2021  school  term
    32  and  on  or  before  August  31,  2021  for a teacher (or other employee
    33  employed on a school-year basis) who is otherwise in active  service  on
    34  February 1, 2021 shall be deemed active service.
    35    j. "Open period" means the period beginning with the commencement date
    36  as  defined  in subdivision k of this section and shall not be more than
    37  ninety days nor less than thirty days in length,  as  specified  by  the
    38  director  of state operations or by a participating employer pursuant to
    39  section four of this act, by the appropriate board of trustees  for  the
    40  state university (including the association), the fund, the city univer-
    41  sity of New York or a community college operating under a program of the
    42  state  university  or  by  a state employer described in paragraphs (g),
    43  (h), (i) and (j) of subdivision d of this section; provided however that
    44  any such period shall not extend beyond September 30, 2021 for the exec-
    45  utive branch of a state employer described in paragraphs (a) and (b)  of
    46  subdivision  d  of this section (except for college faculty), not beyond
    47  December 31, 2021 for participating employers,  college  faculty  for  a
    48  state  employer  described  in  paragraph  (b)  of subdivision d of this
    49  section, state employers described in paragraphs (c),  (d)  and  (e)  of
    50  subdivision  d  of this section, not beyond January 31, 2022 for college
    51  faculty of an employer described in paragraph (f) of  subdivision  d  of
    52  this  section, and not beyond August 31, 2021 for educational employers.
    53  For the purposes of retirement pursuant to this act, a  service  retire-
    54  ment  application  must  be filed with the appropriate retirement system
    55  not less than fourteen days prior to the effective date of retirement to

        S. 2722--A                          5

     1  become effective, unless a shorter period of  time  is  permitted  under
     2  law.
     3    k.  "Commencement  date"  means the first day the retirement incentive
     4  authorized by this act shall be made available, which shall mean a  date
     5  on  or  after  the  effective  date  of this act to be determined by the
     6  director of state operations for the executive branch of the state,  and
     7  which  date  shall  occur no later than thirty days before September 30,
     8  2021 or for any participating employer a date on or after the  effective
     9  date  of  this act. For any other state employer, such term shall mean a
    10  date on or after the effective date of this act and shall occur no later
    11  than thirty days before September 30, 2021.  The director of state oper-
    12  ations shall notify the head of the appropriate retirement system of the
    13  date of each open period applicable to employees of the executive branch
    14  or of a state employer prior to the commencement date.
    15    § 2. The determination of whether a title shall be considered eligible
    16  shall consider whether the reduction of a specific number  of  positions
    17  within a title would unacceptably:
    18    a.  Directly result in a reduction of the level of service required or
    19  mandated to protect and care for clients of the state or a participating
    20  employer or to assure public health and safety;
    21    b. Endanger the health or safety  of  employees  of  the  state  or  a
    22  participating employer; or
    23    c.  Clearly  result in a loss of significant revenue to the state or a
    24  participating employer or result in substantially increased overtime  or
    25  contractual  costs.  However,  upon the determination of the director of
    26  state operations, with respect to employees of the executive branch of a
    27  state employer, any titles may be determined eligible if  the  vacancies
    28  created  can  be  controlled  by  the  use  of  transfer or reassignment
    29  provisions of the civil service  law,  rules  or  regulations  or  other
    30  deployment of state employees.
    31    § 3. a. Eligibility for inclusion in the retirement incentive provided
    32  by  section  six  of this act shall be determined: (a) by seniority: for
    33  participating employers and for state employers described in  paragraphs
    34  (a),  (b), (c), (d), (e) and (f) of subdivision d of section one of this
    35  act, other than for college faculty; seniority shall mean  the  date  of
    36  original  permanent  appointment  in  the  civil  service  of  the state
    37  adjusted to include veteran's credits for those entitled to receive such
    38  credits pursuant to sections 80, 80-a and  85,  if  applicable,  of  the
    39  civil service law, as established in the official records of the depart-
    40  ment  of  civil service, regardless of the jurisdictional classification
    41  of the position or the status of the incumbent;  (b)  by  seniority,  as
    42  applicable  for  the  unified  court  system;  (c)  for  state employers
    43  described in paragraphs (h), (i) and (j) of subdivision d of section one
    44  of this act as determined by the person or persons who make the election
    45  to offer the retirement incentive; and (d) for college faculty,  by  the
    46  board  of  trustees of the state university, city university and of each
    47  community college operating under the program of the state university.
    48    b. All eligible employees serving in eligible titles desiring to avail
    49  themselves of the retirement incentive provided by section six  of  this
    50  act shall provide written notice to his or her employer on or before the
    51  twenty-first day preceding the end of the open period, or before the end
    52  of  the  applicable open period as such open period is determined by the
    53  director of state operations. Failure to  provide  such  written  notice
    54  shall  render  the  employee  ineligible  for  the  retirement incentive
    55  provided by this act.

        S. 2722--A                          6

     1    § 4. a. On or before August 31, 2021, a participating  employer  or  a
     2  state  employer  described  in  paragraphs (b), (c), (d), (e) and (f) of
     3  subdivision d of section one of  this  act  may  elect  to  provide  its
     4  employees  the  retirement  incentive  authorized by this act by (a) the
     5  enactment  of a local law or (b) in the case of a participating employer
     6  which is not so empowered to act  by  local  law  or  a  state  employer
     7  described  in  paragraphs (b), (c), (d), (e) and (f) of subdivision d of
     8  section one of this act, by the adoption of a resolution of its  govern-
     9  ing  body; provided however, no local law or resolution enacted pursuant
    10  to this section  shall  in  any  manner  supersede  any  local  charter,
    11  provided further, that for an educational employer such election must be
    12  made  by  July  30,  2021. The local law or resolution shall specify the
    13  commencement date of the program and the length of the open period.  For
    14  a  community  college operating under the program of state university of
    15  New York, such election shall be made by the board of trustees  of  such
    16  community college subject to the approval of its sponsor. A copy of such
    17  law  or resolution shall be filed with the appropriate retirement system
    18  or systems, and, if applicable, on forms provided by  such  system.  The
    19  local  law  or  resolution  shall be accompanied by the affidavit of the
    20  chief executive officer or other comparable official certifying  to  the
    21  information contained in subdivision b of this section.
    22    b.  Notwithstanding  any other provision of law, the benefits provided
    23  by this act shall not be made  available  to  any  person  who  (a)  has
    24  received  any  retirement incentive authorized by any provision of state
    25  law, or (b) who receives, has received  or  is  eligible  to  receive  a
    26  payment  in  a  lump  sum or in another form from a retirement incentive
    27  pursuant to the provisions of a collective bargaining  agreement  or  by
    28  other  arrangement  with his or her employer, unless such person files a
    29  written statement with his or her employer, a copy  of  which  shall  be
    30  forwarded to the appropriate retirement system, that he or she agrees to
    31  waive  any  right to such payment. A participating employer who makes an
    32  election pursuant to this section  and  who  offers  or  has  offered  a
    33  retirement incentive pursuant to the provisions of a collective bargain-
    34  ing  agreement or by other arrangement shall prepare, and file with each
    35  retirement system, a list  containing  the  names  and  social  security
    36  numbers  of  all  persons described in this subdivision. A participating
    37  employer is  authorized  to  exempt  persons  in  its  employ  from  the
    38  provisions of paragraph (b) of this subdivision. Such exemption shall be
    39  made part of the election made pursuant to this section.
    40    c.  Notwithstanding  any  other provision of this act to the contrary,
    41  the mayor of the city of New York may declare employees of the community
    42  colleges of the city university of New York ineligible for  the  retire-
    43  ment incentive provided by this act by filing such notification with the
    44  chancellor  of the city university of New York, with copies to the chair
    45  of the senate finance committee, the chair  of  the  assembly  ways  and
    46  means  committee  and  the  director of the budget, in writing, no later
    47  than the thirtieth day next succeeding the effective date of this act.
    48    § 5. Notwithstanding any other provision of law, any eligible employee
    49  serving in an eligible title who:
    50    a. has been continuously in the active service of a state employer  or
    51  of a participating employer from February 1, 2021 to the date immediate-
    52  ly prior to the commencement date of the applicable open period;
    53    b. files an application for service retirement (or files the appropri-
    54  ate  application  and  authorization  form  with the optional retirement
    55  program and a duly  acknowledged  retirement  incentive  form  for  such

        S. 2722--A                          7

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

        S. 2722--A                          8

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

        S. 2722--A                          9

     1  other  members  governed  by  section 445-i of the retirement and social
     2  security law, with twenty-five or more  years  of  service  and  who  is
     3  covered by article 11 of the retirement and social security law shall be
     4  reduced  by  five  percent for each year by which retirement pursuant to
     5  this section precedes age fifty-five. Such reduction shall  be  prorated
     6  for  partial years. There shall be no reduction for an eligible New York
     7  city employee in a physically taxing position and who is  a  participant
     8  in  the  optional age fifty-five improved benefit retirement program for
     9  certain New York city employees governed by section 445-d of the retire-
    10  ment and social security law, as added by chapter  96  of  the  laws  of
    11  1995, with twenty-five or more years of service.
    12    An  eligible  employee serving in an eligible title who is not covered
    13  by article 11 or 15 of the retirement  and  social  security  law  shall
    14  retire  under  the provisions of the plan by which he or she is covered.
    15  The amount of such benefit shall be reduced by  five  percent  for  each
    16  year  by  which  retirement pursuant to this section precedes age fifty-
    17  five, provided, however, the foregoing reductions shall not  apply:  (i)
    18  in  any  case  where  an eligible employee can retire pursuant to a plan
    19  which permits retirement for service with immediate  payability,  exclu-
    20  sive  of  this  act,  prior to the age of fifty-five or (ii) to any time
    21  period subsequent to the point at which an eligible employee can  retire
    22  for service without reduction of his or her service retirement allowance
    23  pursuant  to  article 16 of the retirement and social security law. Such
    24  reduction shall be prorated for partial years.
    25    An eligible employee serving in an eligible title who participates  in
    26  a  retirement  plan  which  provides for a retirement allowance equal to
    27  fifty percent of final average salary upon the completion of twenty-five
    28  years of service without regard to age and who is otherwise eligible  to
    29  retire  shall  retire  under  the provisions of such plan. Such employee
    30  shall, at the time of retirement, be credited with one-twelfth of a year
    31  of additional retirement service credit for each year of service credit-
    32  ed under such plan as of the date of retirement,  up  to  a  maximum  of
    33  three  years  of retirement service credit, subject to the provisions of
    34  subdivision b of this section. If such employee has not accrued, exclud-
    35  ing additional credit granted pursuant to this act, the  minimum  number
    36  of  years of service required to retire with an allowance equal to fifty
    37  percent of final average salary under  such  plan,  but  has,  with  the
    38  inclusion of the additional credit provided under this act, accrued such
    39  number  of  years of credit, the benefit payable shall be the percentage
    40  of final average salary that would  ordinarily  be  applicable  to  such
    41  individual  upon retirement with such amount of credit (including incen-
    42  tive credit), reduced by five per centum per year for each year by which
    43  the number of years of service otherwise  required  to  retire  with  an
    44  allowance equal to fifty percent of final average salary under such plan
    45  exceeds  the amount of service credited to such employee under such plan
    46  at retirement (excluding the  additional  retirement  incentive  service
    47  credit  provided pursuant to this act). Such reduction shall be prorated
    48  for partial years.
    49    b. A participant in an optional retirement program who is entitled  to
    50  a  retirement  incentive  pursuant  to  section  five  of this act shall
    51  receive an additional employer contribution equal to  an  amount,  which
    52  shall  be  calculated as follows: (one-twelfth for each year of service)
    53  multiplied by (fifteen percent) multiplied by (the  employee's  earnable
    54  annual  salary  rate in effect on March 1, 2021 or the effective date of
    55  this act if the employee retires prior to March 1,  2021),  such  amount
    56  not  to exceed forty-five percent of such salary rate. Such contribution

        S. 2722--A                         10

     1  shall be made to the employee's retirement annuity  under  the  optional
     2  retirement  program  up  to  the  maximum  contribution  allowable under
     3  section 415 of the internal revenue code. Any contribution in excess  of
     4  that  limit  shall be contributed by the employer to an internal revenue
     5  code section 403(b) contract on behalf of the employee to the extent  it
     6  can  be  contributed  on  a  before-tax  basis  under the maximum limits
     7  allowed under the internal revenue code. Contributions in excess of that
     8  amount shall be paid in cash to the participant in three equal  install-
     9  ments  during  a  twenty-four  month  period commencing on such eligible
    10  employee's effective date  of  retirement.  Provided,  however,  if  the
    11  employee  is  employed  by  the  city  university of New York and in the
    12  active service of such employer on October 1, 2021 or the effective date
    13  of this act if the employee  retires  prior  to  October  1,  2021,  the
    14  employee's  earnable  annual salary rate shall be the annual salary rate
    15  in effect on such applicable date.
    16    § 7. a. An employee of a state employer, other than the city universi-
    17  ty of New York, who retires pursuant to this act may  defer  calculation
    18  of  the  value  of  accumulated  sick leave credits, if any, and partic-
    19  ipation in the state health insurance plan.
    20    b. Notwithstanding any other provision of law, any termination pay  or
    21  leave  arising  from  accrued  sick leave or accrued annual leave for an
    22  eligible employee who has elected the retirement incentive  provided  by
    23  this  act  and who is a member of the New York city teachers' retirement
    24  system employed by the board of education of the city of New York  shall
    25  be  paid  in  three equal installments during a twenty-four month period
    26  commencing on such eligible employee's effective date of retirement.
    27    c. An employee of the city of New York or the city university  of  New
    28  York,  as defined in subdivision 2 of section 6202 of the education law,
    29  who retires under the retirement incentive provided by this act, who  is
    30  eligible  for  terminal  leave  pursuant  to  an  applicable  collective
    31  bargaining agreement or a personnel policy or rule or  retirement  leave
    32  pursuant  to  section  3107  of  the education law or who has an accrued
    33  annual leave balance on the effective date of retirement shall  be  paid
    34  in  three equal installments two months, fourteen months and twenty-four
    35  months following such eligible employee's effective date of retirement.
    36    § 8. a. With respect to employees of the executive branch of  a  state
    37  employer,  any  position,  other  than  a  position supported by special
    38  revenue funds, vacated as a result of an eligible employee in an  eligi-
    39  ble  title receiving the retirement incentive provided by section six of
    40  this act shall be eliminated unless such position is identified  by  the
    41  director  of  state  operations as one into which another state employee
    42  can be appointed,  transferred  or  reassigned  pursuant  to  the  civil
    43  service  law, rules or regulations, in which case the former position of
    44  the state employee so appointed,  transferred  or  reassigned  shall  be
    45  eliminated.
    46    b.  The  director  of  state operations shall direct the department of
    47  civil service to prepare a report designating the  title,  grade  level,
    48  salary,  and  classification,  according to appointing authority, (i) of
    49  each position which is eliminated pursuant  to  subdivision  a  of  this
    50  section,  (ii)  of  each  position into which another state employee was
    51  appointed, transferred, or reassigned and the former  position  of  such
    52  state  employee,  and  (iii)  of  each position which is eliminated as a
    53  result of an appointment, transfer or reassignment referred to in  para-
    54  graph  (ii) of this subdivision. Such report shall be available no later
    55  than ninety days after the last date of the open period related to  such
    56  positions.

        S. 2722--A                         11

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

        S. 2722--A                         12

     1    §  11. Any eligible employee who retires pursuant to the provisions of
     2  this act and enters or reenters public service as defined in subdivision
     3  e of section 210 of the retirement and social security law and joins  or
     4  rejoins any public retirement system of the state as defined in subdivi-
     5  sion  6  of  section  152  of  the retirement and social security law or
     6  elects to participate in an optional retirement  program  shall  if  the
     7  additional  benefit  was  provided  pursuant  to:  (a)  subdivision a of
     8  section six of this act, forfeit the additional  benefit  authorized  by
     9  this  act at the time of his or her subsequent retirement; or (b) subdi-
    10  vision b of section six of this act, repay to the state or participating
    11  employer such additional  contribution  together  with  the  appropriate
    12  interest as determined by the state comptroller.
    13    §  12.  Notwithstanding  any  other  provision  of law, if the service
    14  retirement benefit of a member of a retirement system is  subject  to  a
    15  maximum  retirement  benefit,  the additional benefit authorized by this
    16  act will be computed by multiplying the final average salary  times  the
    17  number  of  years  of  service credit granted by section six of this act
    18  times the benefit fraction of the plan under which such member retires.
    19    § 13. The provisions of section 430 of the retirement and social secu-
    20  rity law shall not apply to any benefit or benefit improvement  provided
    21  by this act.
    22    §  14.  The  pension  benefit costs of subdivision a of section six of
    23  this act shall be paid by employers as provided by  applicable  law  for
    24  each  retirement  system covered by this act over a period not to exceed
    25  five years commencing in the state fiscal year ending March 31, 2023.
    26    § 15. Where an employee is eligible to receive the benefit  authorized
    27  under  section six and the retirement benefit provided for under section
    28  five of part B of the chapter of the laws of 2021 which added this part,
    29  such employee may elect a section under which he  or  she  will  partic-
    30  ipate.
    31    § 16. This act shall take effect immediately.

    32                                   PART B

    33    Section 1. Definitions. As used in this act, unless the context clear-
    34  ly requires otherwise:
    35    a.  "Retirement  system" means the New York state and local employees'
    36  retirement system, the New York state teachers' retirement  system,  the
    37  New  York  city  teachers' retirement system, the New York city board of
    38  education retirement system or the New York city  employees'  retirement
    39  system,  exclusive  of  the  retirement  plans  established  pursuant to
    40  sections 13-156 and 13-157 of the administrative code of the city of New
    41  York.
    42    b. "Teachers' retirement system" means the New  York  state  teachers'
    43  retirement system or the New York city teachers' retirement system.
    44    c.  "State  employer" means (a) the executive branch of the state, (b)
    45  the state-operated institutions of the state university of New York, (c)
    46  the statutory and contract colleges operated pursuant to section 357  of
    47  the  education  law, (d) the state university construction fund (herein-
    48  after referred to in this act as the "fund"), (e) a  cooperative  exten-
    49  sion  association  (hereinafter  referred to in this act as the "associ-
    50  ation"), and  (f)  the  city  university  of  New  York  as  defined  in
    51  subdivision  2  of  section  6202  of the education law, (g) the unified
    52  court system, (h) the senate, (i) the assembly, and (j)  joint  legisla-
    53  tive employers.

        S. 2722--A                         13

     1    d.  (a) "Participating employer" means an employer, other than a state
     2  employer, which participates in a retirement  system;  such  term  shall
     3  include a community college operating under the program of state univer-
     4  sity of New York.
     5    (b)  "Educational  employer" means a participating employer which is a
     6  school district, a board of cooperative educational  services,  a  voca-
     7  tional education and extension board, an institution for the instruction
     8  of the deaf and of the blind as enumerated in section 4201 of the educa-
     9  tion law, or a school district as enumerated in section 1 of chapter 566
    10  of the laws of 1967, as amended.
    11    e.  "Eligible employee" means a person who is a member of a retirement
    12  system who is an employee in the executive branch of a state employer or
    13  an employee of a state employer or  a  participating  employer  who  has
    14  attained age fifty-five and has at least twenty-five years of creditable
    15  service  in  a  retirement  system,  but such term shall not include the
    16  following persons:
    17    (a) elected officials, judges or justices appointed to or  serving  in
    18  court of record and acting village justices;
    19    (b)  chief  administrative  officers  of participating employers which
    20  participate in a teachers' retirement system;
    21    (c) officers described in sections 4, 41-a,  46,  61,  70,  70-a,  169
    22  (including those officers whose salary is established pursuant to salary
    23  plans  under  subdivision  3  of  section 169), 180 and subdivision 1 of
    24  section 41 of the executive  law  and  any  agency  or  department  head
    25  appointed by the governor, comptroller or attorney general;
    26    (d)  appointed  members  of boards or commissions any of whose members
    27  are appointed by the governor or by another state officer or body;
    28    (e) nonjudicial officers and employees of  the  unified  court  system
    29  unless  the chief administrator of the courts elects as provided herein,
    30  which election shall cover only nonjudicial officers and employees hold-
    31  ing positions in any title in the  classified  service  of  the  unified
    32  court system;
    33    (f)  officers  or  employees  of the senate unless the senate adopts a
    34  resolution authorizing the temporary president to file the  election  as
    35  provided in this subdivision;
    36    (g) officers or employees of the assembly unless the assembly adopts a
    37  resolution  authorizing the speaker of the assembly to file the election
    38  as provided in this subdivision; and
    39    (h) officers or employees of joint legislative employers unless:
    40    (i) with respect to officers or employees of the legislative  library,
    41  legislative  messenger  service, legislative health service, legislative
    42  ethics committee, the legislative  bill  drafting  commission,  and  the
    43  joint  line  of  the  legislative task force on demographic research and
    44  reapportionment, the senate and assembly adopt a  concurrent  resolution
    45  authorizing the temporary president of the senate and the speaker of the
    46  assembly to jointly file an election as provided in this subdivision;
    47    (ii) with respect to officers or employees of components of the senate
    48  as  identified pursuant to section 90 of the legislative law, the senate
    49  adopts a resolution authorizing  the  temporary  president  to  file  an
    50  election  for  officers  or  employees of those components designated in
    51  such resolution; and
    52    (iii) with respect to officers  or  employees  of  components  of  the
    53  assembly  as  identified  pursuant to section 90 of the legislative law,
    54  the assembly adopts a resolution authorizing the speaker of the assembly
    55  to file an election for officers or employees of those components desig-
    56  nated in such resolution.

        S. 2722--A                         14

     1    Any election under paragraphs (e) through (h) of this  subdivision  to
     2  make available the retirement incentive provided by this act shall be in
     3  writing  and filed with the state comptroller not later than ninety days
     4  after  the  effective  date  of  this  act.  Notwithstanding  any  other
     5  provision  of  this act, each such filing shall specify the commencement
     6  date of the open period.
     7    For the purposes of such paragraph (f), (g) or (h)  of  this  subdivi-
     8  sion, an employee of the legislature shall be as such term is defined in
     9  section 7-a, 7-b or 7-d of the legislative law or by any other provision
    10  of law which classifies employees of an entity to be legislative employ-
    11  ees  for  all purposes, but shall not include senators or members of the
    12  assembly. The term "joint legislative employer" shall  mean  legislative
    13  commissions,  committees,  task forces, councils or similar bodies whose
    14  membership is comprised of both senators and assembly members, or  which
    15  consist  of  commissioners,  or  the  majority  of  whose  membership is
    16  appointed by one or more of the following: the  temporary  president  of
    17  the  senate,  the  speaker  of  the assembly, the minority leader of the
    18  senate, and/or the minority leader of the assembly. The temporary presi-
    19  dent of the senate and the speaker of the assembly shall  be  the  joint
    20  legislative  employer of the employees of the legislature referred to in
    21  sections 7-a and 7-b of the legislative law.
    22    f. "College faculty" means an employee, not in the classified service,
    23  of a state employer described in paragraphs (b), (c), (d), (e)  and  (f)
    24  of  subdivision  c  of  this  section or of a community college who is a
    25  member of a teachers' retirement system, or the New York state and local
    26  employees' retirement system.
    27    g. "Active service" means service while being  paid  on  the  payroll,
    28  provided  that  (a)  a  leave of absence with pay shall be deemed active
    29  service; (b) other approved leave without pay not to exceed twelve weeks
    30  from February 1, 2021 and the commencement of the designated open  peri-
    31  od;  and  (c) the period of time subsequent to the June 2021 school term
    32  and on or before August 31,  2021  for  a  teacher  (or  other  employee
    33  employed  on  a school-year basis) who is otherwise in active service on
    34  the effective date of this act shall be deemed active service.
    35    h. "Open period" means the period beginning with the commencement date
    36  as defined in subdivision i of this section and shall be ninety days  in
    37  length;  provided  however that there shall be only one such open period
    38  and any such period shall not extend beyond September  30,  2021  for  a
    39  state  employer  and December 31, 2021 for a participating employer. For
    40  educational employers who make election after June  1,  2021,  the  open
    41  period shall begin immediately after such election, and shall not extend
    42  beyond August 31, 2021.  For the purposes of retirement pursuant to this
    43  act, a service retirement application must be filed with the appropriate
    44  retirement  system  not  less  than fourteen days prior to the effective
    45  date of retirement to become effective, unless a shorter period of  time
    46  is permitted under law.
    47    i.  "Commencement  date"  means  the  first day the retirement benefit
    48  mandated by this act shall be made available, which shall mean a date or
    49  dates on or after the effective date of this act to be determined by the
    50  director of state operations for the executive branch of the  state,  or
    51  for  any other state employer or any participating employer which elects
    52  to participate pursuant to section three of this act a date on or  after
    53  the  effective  date  of this act; provided, however, that for an educa-
    54  tional employer which elects to participate pursuant to section three of
    55  this act, the commencement date shall be June 1,  2021;  or  immediately
    56  after election of the retirement incentive for educational employers who

        S. 2722--A                         15

     1  elect  after  June  1, 2021 and provided, further that for participating
     2  employers which elect to participate pursuant to section three  of  this
     3  act,  except  the city of New York and participating employers which are
     4  not  empowered to act by local law, the commencement date shall be Octo-
     5  ber 1, 2021. The director of state operations shall notify the  head  of
     6  the  appropriate retirement system of the date of the open period appli-
     7  cable to employees of the executive branch or of a state employer  prior
     8  to the commencement date.
     9    §  2.  a.  A  state  employer  which elects to participate pursuant to
    10  section three of this act, participating employer which is not empowered
    11  to act by local law which elects  to  participate  pursuant  to  section
    12  three  of this act, or the city of New York, if it elects to participate
    13  pursuant to section three of this act  shall  establish  a  commencement
    14  date  for  the retirement benefit established under section five of this
    15  act in the following manner: (a) for the executive branch, the  director
    16  of  state operations shall establish the commencement date in writing to
    17  the appropriate retirement system; (b) for state employers described  in
    18  paragraphs (b), (c), (d), (e) and (f) of subdivision c of section one of
    19  this  act  and  participating employers that are not empowered to act by
    20  local law, its governing body shall adopt a  resolution  establishing  a
    21  commencement  date; (c) for state employers described in paragraphs (g),
    22  (h), (i) and (j) of subdivision c of section one of this act, the person
    23  or persons who make the  election  to  offer  the  retirement  incentive
    24  pursuant  to  part A of the chapter of the laws of 2021 which added this
    25  part shall establish a commencement date in writing to  the  appropriate
    26  retirement system; and (d) for the city of New York, the chief executive
    27  officer  shall  issue  an  executive order establishing the commencement
    28  date, provided, however, no executive order, in the case of the city  of
    29  New  York issued pursuant to this section, shall in any manner supersede
    30  any local charter. A copy of any such resolution or executive  order  in
    31  the  case of the city of New York establishing a commencement date shall
    32  be filed with the appropriate retirement  system  or  systems,  and,  if
    33  applicable,  on  forms provided by such system. The resolution or execu-
    34  tive order in the case of the city of New York shall be  accompanied  by
    35  the  affidavit  of the chief executive officer or other comparable offi-
    36  cial certifying the commencement date.
    37    b. A state employer, participating employer which is not empowered  to
    38  act  by  local law which elects to participate pursuant to section three
    39  of this act, or the city of New York if it elects to participate  pursu-
    40  ant  to  section  three  of  this  act  shall be required to establish a
    41  commencement date under paragraph a of this subdivision for the  retire-
    42  ment  benefit  established  under section five of this act. In the event
    43  that a state employer, participating employer which is not empowered  to
    44  act  by  local law which elects to participate pursuant to section three
    45  of this act, or the city of New York if it elects to participate  pursu-
    46  ant  to section three of this act fails to establish a commencement date
    47  for the retirement benefit established under section five of  this  act,
    48  the  commencement  date  for  the eligible employees of a state employer
    49  shall be July 1, 2021.  The commencement date for the eligible employees
    50  of all other employers referenced in this subdivision shall be September
    51  1, 2021.
    52    § 3. On or before September 1, 2021, a  participating  employer  or  a
    53  state  employer  described  in  paragraphs (b), (c), (d), (e) and (f) of
    54  subdivision c of section one of  this  act  may  elect  to  provide  its
    55  employees  the  retirement  incentive  authorized by this act by (a) the
    56  enactment of a local law or (b) in the case of a participating  employer

        S. 2722--A                         16

     1  which  is  not  so  empowered  to  act  by local law or a state employer
     2  described in paragraphs (b), (c), (d), (e) and (f) of subdivision  c  of
     3  section  one of this act, by the adoption of a resolution of its govern-
     4  ing  body; provided however, no local law or resolution enacted pursuant
     5  to this section  shall  in  any  manner  supersede  any  local  charter,
     6  provided further, that for an educational employer such election must be
     7  made  by  July  1,  2021.    For a community college operating under the
     8  program of state university of New York, such election shall be made  by
     9  the  board of trustees of such community college subject to the approval
    10  of its sponsor. A copy of such law or resolution shall be filed with the
    11  appropriate retirement system or systems, and, if applicable,  on  forms
    12  provided  by  such system. The local law or resolution shall be accompa-
    13  nied by the affidavit of the chief executive officer or other comparable
    14  official certifying the validity of such local law or resolution.    The
    15  executive  branch  of the state shall be deemed to have made an election
    16  under this section upon its enactment.
    17    § 4. Notwithstanding any other provision of law, any eligible employee
    18  who (a) has been continuously in the active service of a state  employer
    19  or  of  a participating employer from February 1, 2021 to the date imme-
    20  diately prior to the commencement date of the  applicable  open  period,
    21  (b) files an application for service retirement that is effective during
    22  the  open period, and (c) is otherwise eligible for a service retirement
    23  as of the effective date of the  application  for  retirement  shall  be
    24  entitled to the retirement benefit provided in section five of this act.
    25    §  5.  a.  Notwithstanding  any  other  provision  of law, an eligible
    26  employee who is: (a) a member of a retirement  system  and  (b)  who  is
    27  entitled  to  a  retirement benefit pursuant to section four of this act
    28  may retire during the open period without the reduction of  his  or  her
    29  retirement  benefit  that would otherwise be imposed by article 11 or 15
    30  of the retirement and social security law if he or she has attained  the
    31  age  of  fifty-five and has completed at least twenty-five or more years
    32  of creditable service. An  eligible  employee  who  is  covered  by  the
    33  provisions  of  articles 11 and 15 of the retirement and social security
    34  law shall retire under the provisions of  articles  11  and  15  of  the
    35  retirement and social security law.
    36    b.  The  director  of state operations, the chief executive officer of
    37  the city of New York, or chief executive officer or governing board,  as
    38  appropriate, of the participating employer may deny participation in the
    39  retirement  benefit  provided  by  subdivision  a of this section if the
    40  director of state operations, the chief executive officer  of  New  York
    41  city  or  the  chief executive officer or governing board of the partic-
    42  ipating employer makes a determination that the employee holds  a  posi-
    43  tion  that  is  deemed  critical to the maintenance of public health and
    44  safety.
    45    c. Where an employee is eligible for the retirement benefit under this
    46  section and the retirement incentive authorized pursuant to section  six
    47  of part A of the chapter of the laws of 2021 which added this part, such
    48  employee  shall  elect a section under which he or she will participate.
    49  The benefits provided by subdivision a of  this  section  shall  not  be
    50  conditioned  upon  a state or participating employer making the benefits
    51  of section six of part A of this act available  to  employees  in  their
    52  employ.  Further, the benefits provided by subdivision a of this section
    53  shall not be available in conjunction with the benefits of  section  six
    54  of part A of the chapter of the laws of 2021 which added this part.
    55    d. The action of the director of state operations, the chief executive
    56  officer of the city of New York, or chief executive officer or governing

        S. 2722--A                         17

     1  board,  as  appropriate,  of  the  participating employer in denying the
     2  retirement benefit provided for in subdivision a of this section to  any
     3  individual  shall  be  subject  to  review in the manner provided for in
     4  article  78  of the civil practice law and rules. Such action for review
     5  pursuant to article seventy-eight of the civil practice  law  and  rules
     6  shall only be commenced by the individual that was denied the retirement
     7  benefit provided by subdivision a of this section.
     8    e.  After  making  any  such determination under subdivision b of this
     9  section, the director of state operations, the chief  executive  officer
    10  of  the  city  of  New York and the chief executive officer or governing
    11  board, as appropriate, of the participating employer  shall  notify  the
    12  appropriate  retirement  system  or  teachers'  retirement system of its
    13  determination.
    14    § 6. The pension benefit costs of section five of this  act  shall  be
    15  paid  by  employers  as  provided  by applicable law for each retirement
    16  system covered by this act over  a  period  not  to  exceed  five  years
    17  commencing in the state fiscal year ending March 31, 2023.
    18    § 7. This act shall take effect immediately.
    19    § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
    20  sion,  section  or  part  of  this act shall be adjudged by any court of
    21  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    22  impair,  or  invalidate  the remainder thereof, but shall be confined in
    23  its operation to the clause, sentence, paragraph,  subdivision,  section
    24  or part thereof directly involved in the controversy in which such judg-
    25  ment shall have been rendered. It is hereby declared to be the intent of
    26  the  legislature  that  this  act  would  have been enacted even if such
    27  invalid provisions had not been included herein.
    28    § 4. This act shall take effect immediately; provided,  however,  that
    29  the  applicable  effective date of Parts A and B of this act shall be as
    30  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  2021-  2022  for  eligible members of the New York State Teachers'
        Retirement System (NYSTRS).
          Part A of the retirement  incentive  would  provide  certain  eligible
        employees  of  employers who elect to participate 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 be eligible to retire, or have attained  age  50
        or  greater,  with  at least ten years of service. Members subject to an
        early retirement reduction and less than age 55 at retirement will  have
        their  benefit  further  reduced by 3% per year prior to age 55. Members
        not subject to an early retirement reduction and less  than  age  55  at
        retirement  will  have their benefit reduced by 5% per year prior to age
        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, 2021. For  Part  B,
        the  open  period  shall begin immediately after the election to partic-
        ipate and shall not extend beyond  August  31,  2021.  Members  may  not

        S. 2722--A                         18

        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, 2023.
          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%
        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 2021-9 dated February 3,
        2021 prepared by the Actuary of the New York State Teachers'  Retirement
        System and is intended for use only during the 2021 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

        S. 2722--A                         19

        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, 2023.
          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 115% 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, 2023.
          Summary of relevant resources:
          Membership data as of March 31, 2020 was used in measuring the  impact
        of the proposed change, the same data used in the April 1, 2020 actuari-
        al  valuation.  Distributions  and  other statistics can be found in the
        2020 Report of the Actuary and the 2020 Comprehensive  Annual  Financial
        Report.
          The  actuarial  assumptions and methods used are described in the 2020
        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, 2020
        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  December  30,  2020, and intended for use only
        during the 2021 Legislative Session, is Fiscal Note No. 2021-7, prepared
        by the Actuary for the New York State and Local Retirement System.
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