Bill Text: NY S05618 | 2023-2024 | General Assembly | Introduced

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

---

Bill Title: Increases the amount of years of military service credit a member may purchase from three years to four years; provides that the provisions of such act shall not be subject to the requirement that the state shall make an equal payment to the retirement system.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-05-07 - REPORTED AND COMMITTED TO FINANCE [S05618 Detail]

Download: New_York-2023-S05618-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          5618

                               2023-2024 Regular Sessions

                    IN SENATE

                                      March 9, 2023
                                       ___________

        Introduced  by  Sen.  THOMAS -- 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
          increasing the amount of years of military service credit a member may
          purchase

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

     1    Section 1. Subdivisions 1 and 4 of section 1000 of the retirement  and
     2  social  security  law, as amended by chapter 41 of the laws of 2016, are
     3  amended to read as follows:
     4    1. A member, upon application to such retirement system, may obtain  a
     5  total  not  to  exceed  [three]  four  years of service credit for up to
     6  [three] four years of military duty, as defined in section  two  hundred
     7  forty-three  of the military law, if the member was honorably discharged
     8  from the military.
     9    4. In no event shall the credit granted pursuant to this section, when
    10  added to credit granted for military service with any retirement  system
    11  of  this  state pursuant to this or any other provision of law, exceed a
    12  total of [three] four years.
    13    § 2. Subdivision 1 of section 1000 of the retirement and social  secu-
    14  rity  law,  as amended by chapter 585 of the laws of 2022, is amended to
    15  read as follows:
    16    1. A member, upon application to such retirement system, may obtain  a
    17  total  not  to  exceed  [three]  four  years of service credit for up to
    18  [three] four years of military duty, as defined in section  two  hundred
    19  forty-three  of  the  military  law,  if  the  member  (a) was honorably
    20  discharged from the military, or (b)  has  a  qualifying  condition,  as
    21  defined  in  section  three  hundred fifty of the executive law, and has
    22  received a discharge other than bad conduct or  dishonorable  from  such
    23  service,  or  (c)  is  a  discharged LGBT veteran, as defined in section

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09065-02-3
        S. 5618                             2

     1  three hundred fifty of the executive law, and has received  a  discharge
     2  other than bad conduct or dishonorable from such service.
     3    § 3. This act shall take effect immediately; provided that section two
     4  of this act shall take effect on the same date and in the same manner as
     5  chapter 585 of the laws of 2022, takes effect.
          FISCAL NOTE.-Pursuant to Legislative Law, Section 50:
          This  bill  would amend the current military law to allow for a member
        to obtain up to a total of four years of service credit for up  to  four
        years  of  military  duty  if  the  member was honorably discharged. The
        current maximum is three years of service credit. Members must  have  at
        least  five  years of credited service (not including military service).
        Tier 1-5 members would be required to make a payment of three percent of
        their most recent compensation per year  of  additional  service  credit
        granted by this bill. Tier 6 members would be required to make a payment
        of  six percent of their most recent compensation per year of additional
        service credit.
          Insofar as this proposal affects the New York State and Local  Employ-
        ees'  Retirement System (NYSLERS), pursuant to Section 25 of the Retire-
        ment and Social Security Law, the increased costs would be borne entire-
        ly by the State of New York and would require an itemized  appropriation
        sufficient  to pay the cost of the provision. If enacted during the 2023
        legislative session, it is estimated that the past service cost will  be
        18%  (15% for Tier 6) of an affected member's compensation for each year
        of service credit that is purchased.
          Insofar as this proposal affects the New York State and  Local  Police
        and  Fire Retirement System (NYSLPFRS), all costs would be shared by the
        State of New York and the local participating employers in the NYSLPFRS.
        If enacted during the 2023 legislative session, it is estimated that the
        past service cost will be 23% (20% for Tier 6) of an  affected  member's
        compensation for each year of service credit that is purchased.
          Further,  we anticipate some additional administrative costs to imple-
        ment the provisions of this legislation.
          The exact number of current members as  well  as  future  members  who
        could be affected by this legislation cannot be readily determined.
          Summary of relevant resources:
          Membership  data as of March 31, 2022 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2022 actuari-
        al valuation.  Distributions and other statistics can be  found  in  the
        2022  Report  of the Actuary and the 2022 Annual Comprehensive Financial
        Report.
          The actuarial assumptions and methods used are described in the  2020,
        2021,  and  2022  Annual  Report to the Comptroller on Actuarial Assump-
        tions, 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, 2022
        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 March 3, 2023, and intended for use  only  during
        the  2023  Legislative  Session, is Fiscal Note No. 2023-78, prepared by
        the Actuary for the New York State and Local Retirement System.