Bill Text: NY S05379 | 2021-2022 | General Assembly | Amended
Bill Title: Relates to the calculation of past service credit for members in the title of deputy sheriff transferring between the New York state and local employees' retirement system to the New York state and local police and fire retirement system.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2022-05-09 - RECOMMIT, ENACTING CLAUSE STRICKEN [S05379 Detail]
Download: New_York-2021-S05379-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5379--A 2021-2022 Regular Sessions IN SENATE March 3, 2021 ___________ Introduced by Sens. AKSHAR, GALLIVAN, HELMING, MARTUCCI, ORTT, STEC -- 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 committee AN ACT to amend the retirement and social security law, in relation to the calculation of past service credit for members in the title of deputy sheriff transferring between the New York state and local employees' retirement system to 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. Section 43 of the retirement and social security law is 2 amended by adding a new subdivision m to read as follows: 3 m. 1. Notwithstanding any other law, rule or regulation to the contra- 4 ry, any member in the title of deputy sheriff transferring from the New 5 York state and local employees' retirement system to the New York state 6 and local police and fire retirement system after the effective date of 7 this subdivision and any member previously in the title of deputy sher- 8 iff having made such transfer shall be entitled to a determination of 9 the amount of service credit that is eligible on a twenty year or twen- 10 ty-five year retirement plan if, within one year of the date on which he 11 or she first became a member of the New York state and local police and 12 fire retirement system or within one year of the effective date of this 13 subdivision, such member elects to do so. If the member subsequently 14 transfers back to the New York state and local employees' retirement 15 system, the full amount of service credit earned while in the title of 16 deputy sheriff shall be transferred back to the New York state and local 17 employees' retirement system. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04164-04-2S. 5379--A 2 1 2. The calculation of the amount of such service credit for a member 2 will be determined by multiplying the eligible service credited in the 3 New York state and local employees' retirement system plan by a salary 4 multiplier, reflecting the rate of salary in the New York state and 5 local employees' retirement system plan relative to the rate of salary 6 in the New York state and local police and fire retirement system plan, 7 and a billing rate multiplier, reflecting the actuarial long-term aver- 8 age billing rate in the New York state and local employees' retirement 9 system plan relative to the actuarial long-term average billing rate in 10 the New York state and local police and fire retirement system plan. The 11 determination of the salary multiplier and billing rate multiplier will 12 be determined by the actuary of the New York state and local employees' 13 retirement system and the New York state and local police and fire 14 retirement system. The amount of such service credited to the member in 15 the New York state and local police and fire retirement system plan 16 shall not exceed the amount of service credited to the member in the New 17 York state and local employees' retirement system plan. 18 § 2. Section 343 of the retirement and social security law is amended 19 by adding a new subdivision i to read as follows: 20 i. 1. Notwithstanding any other law, rule or regulation to the contra- 21 ry, any member in the title of deputy sheriff transferring from the New 22 York state and local employees' retirement system to the New York state 23 and local police and fire retirement system after the effective date of 24 this subdivision and any member previously in the title of deputy sher- 25 iff having made such transfer shall be entitled to a determination of 26 the amount of service credit that is eligible on a twenty year or twen- 27 ty-five year retirement plan if, within one year of the date on which he 28 or she first became a member of the New York state and local police and 29 fire retirement system or within one year of the effective date of this 30 subdivision, such member elects to do so. If the member subsequently 31 transfers back to the New York state and local employees' retirement 32 system, the full amount of service credit earned while in the title of 33 deputy sheriff shall be transferred back to New York state and local 34 employees' retirement system. 35 2. The calculation of the amount of such service credit for a member 36 will be determined by multiplying the eligible service credited in the 37 New York state and local employees' retirement system plan by a salary 38 multiplier, reflecting the rate of salary in the New York state and 39 local employees' retirement system plan relative to the rate of salary 40 in the New York state and local police and fire retirement system plan, 41 and a billing rate multiplier, reflecting the actuarial long-term aver- 42 age billing rate in the New York state and local employees' retirement 43 system plan relative to the actuarial long-term average billing rate in 44 the New York state and local police and fire retirement system plan. The 45 determination of the salary multiplier and billing rate multiplier will 46 be determined by the actuary of the New York state and local employees' 47 retirement system and the New York state and local police and fire 48 retirement system. The amount of such service credited to the member in 49 the New York state and local police and fire retirement system plan 50 shall not exceed the amount of service credited to the member in the New 51 York state and local employees' retirement system plan. 52 3. If the member subsequently retires on an age based retirement plan 53 in the New York state and local police and fire retirement system 54 instead of a twenty year or twenty-five year plan, the full amount of 55 service credit earned while in the title of deputy sheriff shall be 56 granted.S. 5379--A 3 1 4. No member who receives service credit pursuant to this subdivision 2 shall be eligible to receive additional service credit pursuant to 3 subdivision b of section three hundred eighty four-e of this article if 4 his or her employer has elected to provide such service credit. 5 § 3. This act shall take effect on the sixtieth day after an internal 6 revenue service ruling stating that the transfer and crediting of deputy 7 sheriff service credit from the New York state and local employees' 8 retirement system into the New York state and local police and fire 9 retirement system special retirement plan by this act is allowable and 10 does not jeopardize such retirement system's tax-qualified status, and 11 shall remain in full force and effect only as long as such transfer is 12 authorized pursuant to the provisions of the internal revenue code; 13 provided, that the state comptroller shall notify the legislative bill 14 drafting commission upon the occurrence of such ruling and upon any 15 change in the provisions of the internal revenue code affecting the 16 provisions of this act in order that the commission may maintain an 17 accurate and timely effective data base of the official text of the laws 18 of the state of New York in furtherance of effecting the provisions of 19 section 44 of the legislative law and section 70-b of the public offi- 20 cers law. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill would expand the definition of creditable service under 20-year and 25-year plans (special plans) in the New York State and Local Police and Fire Retirement System (PFRS) to include service credit earned in the New York State and Local Employees' Retirement System (ERS) for those individuals previously employed in the title of Deputy Sheriff. To be eligible for the service credit, an individual must be a member of PFRS and elect to transfer the ERS service credit to the PFRS plan within 12 months of first joining PFRS, or within 12 months of the effective date of the bill, whichever is later. The amount of service credit granted in the PFRS special plan will be calculated by the Actu- ary of the New York State and Local Retirement System (NYLSRS), not to exceed the service credited under the ERS plan. Internal Revenue Service (IRS) plan qualification issues: granting service credit towards retirement in a 20-year plan in the PFRS for employment that was not rendered in the PFRS could jeopardize the Retirement System's governmental plan status and its exemption from Employees Retirement Income Security Act (ERISA). This development could result in the loss of qualified status, which would mean the loss of tax benefits. This result would substantially impair the System's value to our more than one million participants. This legislation will not become effective until NYLSRS obtains a favorable ruling from the IRS stating that these provisions would not harm the qualification status of the System. Further, the provisions of this legislation will only continue in full force and effect while so authorized by the IRS. It is estimated that the costs to obtain an initial ruling would be $28,000 for the services of the IRS, and $800 per hour for legal consultants. In addition to the costs to obtain a ruling from the IRS stated above, if this bill is enacted, there will be an administrative cost to imple- ment the provisions of this legislation. All costs will be shared by the State of New York and all of the participating employers in the PFRS. 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-S. 5379--A 4 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 February 18, 2022, and intended for use only during the 2022 Legislative Session, is Fiscal Note No. 2022-60, prepared by the Actuary for the New York State and Local Retirement System.
