Bill Text: NY S03010 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to benefits for participating employers in the New York state and local police and fire retirement system.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Vetoed) 2015-12-11 - VETOED MEMO.292 [S03010 Detail]
Download: New_York-2015-S03010-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
3010
2015-2016 Regular Sessions
I N S E N A T E
February 2, 2015
___________
Introduced by Sen. YOUNG -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the retirement and social security law, in relation to
creating an optional twenty year retirement plan for certain police
officers and firefighters who are members of the New York state and
local police and fire retirement system
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The retirement and social security law is amended by adding
2 a new article 26 to read as follows:
3 ARTICLE 26
4 BENEFIT ENHANCEMENTS
5 SECTION 1400. NON-CONTRIBUTORY BASIS.
6 1401. COLLECTIVE BARGAINING.
7 1402. PAST SERVICE COSTS.
8 S 1400. NON-CONTRIBUTORY BASIS. (A) NOTWITHSTANDING THE PROVISIONS OF
9 THIS CHAPTER OR ANY OTHER LAW TO THE CONTRARY A PARTICIPATING EMPLOYER
10 IN THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM MAY
11 ELECT TO PROVIDE ITS EMPLOYEES WHO ARE MEMBERS OF THE OPTIONAL TWENTY
12 YEAR RETIREMENT PLAN FOR POLICE AND FIREFIGHTERS ELIGIBILITY TO PARTIC-
13 IPATE ON A NON-CONTRIBUTORY BASIS.
14 (B) NO MEMBER WHO PARTICIPATES IN THIS NON-CONTRIBUTORY RETIREMENT
15 PLAN SHALL BE ENTITLED TO A REFUND OF PREVIOUS CONTRIBUTIONS MADE TO THE
16 CONTRIBUTORY TWENTY YEAR RETIREMENT PLAN.
17 S 1401. COLLECTIVE BARGAINING. A DEMAND IN COLLECTIVE BARGAINING NEGO-
18 TIATIONS FOR THE ADDITIONAL BENEFIT PROVIDED BY SECTION FOURTEEN HUNDRED
19 OF THIS ARTICLE SHALL NOT BE SUBJECT TO THE PROVISIONS OF PARAGRAPH (B)
20 OR (C) OF SUBDIVISION FOUR OF SECTION TWO HUNDRED NINE OF THE CIVIL
21 SERVICE LAW, NOR SHALL SUCH DEMAND BE SUBJECT TO ANY PROVISION FOR
22 INTEREST ARBITRATION CONTAINED IN ANY LOCAL LAW, RESOLUTION OR ORDINANCE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08156-02-5
S. 3010 2
1 ADOPTED BY ANY GOVERNMENTAL ENTITY PURSUANT TO SUBDIVISION ONE OF
2 SECTION TWO HUNDRED TWELVE OF THE CIVIL SERVICE LAW.
3 S 1402. PAST SERVICE COSTS. ANY PARTICIPATING EMPLOYER THAT ELECTS THE
4 ADDITIONAL BENEFITS PROVIDED BY THIS ARTICLE MAY ALSO ELECT TO PAY THE
5 PAST SERVICE COST ASSOCIATED WITH THIS BENEFIT IN TEN ANNUAL INSTALL-
6 MENTS.
7 S 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill will allow employers in the New York State and Local Police
and Fire Retirement System which have elected to provide their employees
with the benefits of the 20 year contributory retirement plan to elect
to provide eligibility for their employees to participate on a non-con-
tributory basis. Any member who participates on a non-contributory basis
will not be entitled to a refund of previous member contributions.
If this bill is enacted, there will be an increase in the annual
contributions of ELECTING EMPLOYERS on behalf of their Tiers 3, 5 and 6
members. For the fiscal year ending March 31, 2016, the contribution
increases, as a percentage of salary, will be 3.2% for tier 3 members,
3.5% for tier 5 384-d and 384-e, 6.7% for tier 6 384-d and 6.8% for
384-e. These costs will be borne by the employers which elect to provide
this benefit.
There will not be a past service cost.
Summary of relevant resources:
The membership data used in measuring the impact of the proposed
change was the same as that used in the March 31, 2014 actuarial valu-
ation. Distributions and other statistics can be found in the 2014
Report of the Actuary and the 2014 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2010,
2011, 2012, 2013 and 2014 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, 2014
New York State and Local Retirement System Financial Statements and
Supplementary Information.
I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the statement of actuarial opinion
contained herein.
This estimate, dated December 12, 2014, and intended for use only
during the 2015 Legislative Session, is Fiscal No. 2015-11, prepared by
the Actuary for the New York State and Local Police and Fire Retirement
System and the New York State and Local Employees' Retirement System.
