S T A T E O F N E W Y O R K ________________________________________________________________________ 4193 2013-2014 Regular Sessions I N S E N A T E March 13, 2013 ___________ Introduced by Sen. GRISANTI -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT in relation to allowing Malcolm Cully to file a request for Tier II status in the New York state and local employees' retirement system THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Notwithstanding any other provision of law, Malcolm Cully, 2 who is a member of the New York state and local employees' retirement 3 system, and who was employed by the Buffalo City School district in Erie 4 County for the period beginning July 1973 and ending September 1973, and 5 who for reasons not ascribable to his own negligence did not become a 6 member of the New York state and local employees' retirement system at 7 the time of his hiring and who is currently a Tier III member of the New 8 York state and local employees' retirement system shall be deemed to 9 have become a member of such system as of July 1, 1973 entitling him to 10 Tier II status with every right, benefit and privilege which would have 11 been available to him on such date if, within one year of the effective 12 date of this act, he shall file a written request to that effect with 13 the state comptroller. Upon the granting of such retroactive membership, 14 Malcolm Cully shall be granted a refund of any employee contributions 15 made by him to the New York state and local retirement system. 16 S 2. All past service costs associated with the implementation of this 17 act shall be borne by the state of New York. 18 S 3. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill will deem Malcolm Cully, currently a Tier 3 member of the New York State and Local Employees' Retirement System, to have first become a member of the Retirement System on July 1, 1973, thereby making him a Tier 2 member. There will be a refund of Tier 3 member contrib- utions. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09629-02-3 S. 4193 2 If this bill is enacted, we anticipate that there will be an increase of approximately $10,500 in the annual contributions of the State of New York for the fiscal year ending March 31, 2014. In addition to the annual contributions discussed above, there will be an immediate past service cost of approximately $282,000 which would be borne by the State of New York as a one-time payment. This estimate is based on the assumption that payment will be made on March 1, 2014. Summary of relevant resources: Data: March 31, 2012 Actuarial Year End File with distributions of membership and other statistics displayed in the 2012 Report of the Actuary and 2012 Comprehensive Annual Financial Report. Assumptions and Methods: 2010, 2011 and 2012 Annual Report to the Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the State of New York: Audit and Control. Market Assets and GASB Disclosures: March 31, 2012 New York State and Local Retirement System Financial Statements and Supplementary Informa- tion. Valuations of Benefit Liabilities and Actuarial Assets: summarized in the 2012 Actuarial Valuations report. I am a member of the American Academy of Actuaries and meet the Quali- fication Standards to render the actuarial opinion contained herein. This estimate, dated March 12, 2013 and intended for use only during the 2013 Legislative Session, is Fiscal Note No. 2013-99, prepared by the Actuary for the New York State and Local Employees' Retirement System.