Bill Text: NY S04235 | 2021-2022 | General Assembly | Amended


Bill Title: Relates to calculating certain pensions; increases pension calculation from thirty-five to forty per centum of final average salary.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-25 - PRINT NUMBER 4235A [S04235 Detail]

Download: New_York-2021-S04235-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         4235--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 3, 2021
                                       ___________

        Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
          --  recommitted  to  the  Committee  on  Civil Service and Pensions in
          accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee

        AN ACT to amend the retirement and social security law, in  relation  to
          calculating certain pensions

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

     1    Section 1. Subdivision a of section 504 of the retirement  and  social
     2  security  law,  as amended by chapter 18 of the laws of 2012, is amended
     3  to read as follows:
     4    a. The service  retirement  benefit  for  general  members  at  normal
     5  retirement  age with twenty or more years of credited service shall be a
     6  pension equal to one-fiftieth of final average  salary  times  years  of
     7  credited  service,  not in excess of thirty years, less fifty percent of
     8  the primary social security retirement benefit as  provided  in  section
     9  five  hundred eleven of this article. The service retirement benefit for
    10  general members at normal retirement age with twenty or  more  years  of
    11  service who first become members of the New York state and local employ-
    12  ees'  retirement  system on or after April first, two thousand twelve at
    13  normal retirement age shall be a pension equal to the  sum  of  [thirty-
    14  five] forty per centum and one-fiftieth of final average salary for each
    15  year  of service in excess of twenty, but not in excess of thirty, times
    16  final average salary times years of credited service.
    17    § 2. Subdivision b-1 of section 604 of the retirement and social secu-
    18  rity law, as added by chapter 18 of the laws of 2012, is amended to read
    19  as follows:
    20    b-1. Notwithstanding any other provision of law to the  contrary,  the
    21  service  retirement  benefit  for  members  with twenty or more years of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03545-04-2

        S. 4235--A                          2

     1  credit service who first become a member of a public  retirement  system
     2  of  the state on or after April first, two thousand twelve at age sixty-
     3  three shall be a pension equal to the sum  of  [thirty-five]  forty  per
     4  centum and one-fiftieth of final average salary for each year of service
     5  in  excess  of twenty times final average salary times years of credited
     6  service. In no  event  shall  any  retirement  benefit  payable  without
     7  optional modification be less than the actuarially equivalent annuitized
     8  value  of  the  member's contributions accumulated with interest at five
     9  percent per annum compounded annually to the date of retirement.
    10    § 3. Subdivision d of section 516 of the retirement and social securi-
    11  ty law, as amended by chapter 18 of the laws of 2012, is amended to read
    12  as follows:
    13    d. The deferred vested benefit of general  members  in  the  uniformed
    14  correction  force of the New York city department of correction, who are
    15  not entitled to a deferred vested benefit under subdivision d of section
    16  five hundred four-a of this article or under subdivision  d  of  section
    17  five  hundred  four-b  of this article or under subdivision d of section
    18  five hundred four-d of this  article,  or  of  general  members  in  the
    19  uniformed  personnel  in  institutions  under  the  jurisdiction  of the
    20  department of corrections  and  community  supervision,  as  defined  in
    21  subdivision  i  of  section  eighty-nine of this chapter, with twenty or
    22  more years of credited service shall be a pension commencing  at  normal
    23  retirement age equal to one-fiftieth of final average salary times years
    24  of  credited  service, not in excess of thirty years, or for members who
    25  first become members of the New York state and local employees'  retire-
    26  ment  system  on  or  after  April first, two thousand twelve, a pension
    27  equal to the sum of [thirty-five] forty per centum and  one-fiftieth  of
    28  final  average  salary for each year of service in excess of twenty, but
    29  not in excess of thirty, times final average salary times years of cred-
    30  ited service. The deferred vested benefit  of  general  members  in  the
    31  uniformed   correction   force  of  the  New  York  city  department  of
    32  correction, who are not entitled to  a  deferred  vested  benefit  under
    33  subdivision  d  of  section five hundred four-a of this article or under
    34  subdivision d of section five hundred four-b of this  article  or  under
    35  subdivision  d  of  section  five  hundred four-d of this article, or of
    36  general members in the uniformed personnel in institutions under  juris-
    37  diction  of  the department of corrections and community supervision, as
    38  defined in subdivision i of section eighty-nine of  this  chapter,  with
    39  less than twenty years of credited service shall be a pension commencing
    40  at  normal  retirement age equal to one-sixtieth of final average salary
    41  times years of credited service. Such deferred  vested  benefit  may  be
    42  paid in the form of an early service retirement benefit, or may be post-
    43  poned until after normal retirement age, in which event the benefit will
    44  be  subject  to  reduction or escalation as provided in subdivision c of
    45  section five hundred four of this article.
    46    § 4. Section 1312 of the retirement and social security law, as  added
    47  by chapter 18 of the laws of 2012, is amended to read as follows:
    48    §  1312.  Benefit  enhancements.  Notwithstanding any other law to the
    49  contrary, eligible employees  shall  be  permitted  to  retire,  without
    50  penalty,  upon  reaching  age fifty-seven and completing at least thirty
    51  years of credited service. Employees retiring pursuant to  this  section
    52  shall  receive  a  pension  allowance  equal to the sum of [thirty-five]
    53  forty per centum and one-fiftieth of final average salary for each  year
    54  of service in excess of twenty times final average salary times years of
    55  credited service.

        S. 4235--A                          3

     1    §  5. Notwithstanding any other provision of law to the contrary, none
     2  of the provisions of this act shall be subject  to  section  25  of  the
     3  retirement and social security law.
     4    § 6. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  will  change  the benefit fraction for a Tier 6 member for
        service greater than 20 years to 40% of FAS plus 2% per year of  service
        greater than 20. Currently the benefit for service greater than 20 years
        is 35% of FAS plus 2% per year of service greater than 20.
          Insofar  as  this bill affects the New York State and Local Employees'
        Retirement System (NYSLERS), if this legislation is enacted  during  the
        2022  legislative  session,  there  would  be an increase in the present
        value of future benefits of approximately $1.25 billion which  would  be
        shared  by  the  State  of  New  York and all of the local participating
        employers in the NYSLERS. The estimated first year cost would be approx-
        imately $57.1 million to the State of New York and  approximately  $80.9
        million to the Local participating employers in the NYSLERS.
          Summary of relevant resources:
          Membership  data as of March 31, 2021 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2021 actuari-
        al valuation. Distributions and other statistics can  be  found  in  the
        2021  Report  of the Actuary and the 2021 Comprehensive Annual Financial
        Report.
          The actuarial assumptions and methods used are described in  the  2020
        and  2021 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, 2021
        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, 2021,  and  intended  for  use  only
        during  the  2022  Legislative  Session,  is  Fiscal  Note  No. 2022-26,
        prepared by the Actuary for the New  York  State  and  Local  Retirement
        System.
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