Bill Text: NY S04540 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Authorizes participating employers in the New York state and local police and fire retirement system offering 20 year retirement plans to offer such plans on a non-contributory basis.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2018-04-16 - REPORTED AND COMMITTED TO FINANCE [S04540 Detail]

Download: New_York-2017-S04540-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4540
                               2017-2018 Regular Sessions
                    IN SENATE
                                    February 16, 2017
                                       ___________
        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
          authorizing  participating  employers  in the New York state and local
          police and fire retirement system offering  an  optional  twenty  year
          retirement  plan  for  its  police officers and firefighters, to offer
          such plan on a non-contributory basis
          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    §  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    § 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.
                                                                   LBD09303-02-7
        S. 4540                             2
     1  adopted by any  governmental  entity  pursuant  to  subdivision  one  of
     2  section two hundred twelve of the civil service law.
     3    § 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    § 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,  2017,  the  contribution
        increases,  as  a  percentage  of salary, will be 0.3% for tier 3 384-d,
        1.0% for tier 3 384-e, 3.5% for tier 5 384-d, 3.6%  for  tier  5  384-e,
        6.7% for tier 6 384-d and 6.7% for tier 6 384-e. These additional annual
        costs  will  be borne by the employers which elect to provide this bene-
        fit.
          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, 2016 actuarial valu-
        ation. Distributions and other statistics  can  be  found  in  the  2016
        Report  of  the  Actuary  and  the  2016  Comprehensive Annual Financial
        Report.
          The actuarial assumptions and methods used are described in  the  2015
        and  2016 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, 2016
        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 estimate, dated February 16, 2017,  and  intended  for  use  only
        during  the  2017  Legislative  Session,  is  Fiscal  Note  No. 2017-52,
        prepared by the Actuary for the New  York  State  and  Local  Retirement
        System.