Bill Text: NY S05964 | 2021-2022 | General Assembly | Amended


Bill Title: Allows a continuous service credit for retirement purposes for peace officers of the unified court system who were laid off for economy reasons in 1991 and returned to service in 1992.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-25 - PRINT NUMBER 5964A [S05964 Detail]

Download: New_York-2021-S05964-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5964--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                     March 24, 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 allow a continuous service credit for peace  officers  of  the
          unified court system who were laid off because of economy measures

          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, rule  or  regu-
     2  lation  to  the  contrary,  any  active member of the New York state and
     3  local employees' retirement system, who  was  a  peace  officer  of  the
     4  unified court system suspended in 1991 because of economy measures taken
     5  by  the  unified  court  system,  and who returned to service as a peace
     6  officer of the unified court system in 1992, shall be eligible to file a
     7  written request with the New York state and local employees'  retirement
     8  system,  within  one year of the effective date of this act, to purchase
     9  service credit with such system for the  period  of  time  the  member's
    10  employment  was suspended. Such member shall have at least five years of
    11  credited service, not including service credited  in  this  act,  to  be
    12  eligible  to  receive the credit authorized by this act. A member who is
    13  eligible to purchase service credit pursuant to this act shall pay  such
    14  retirement  system a sum equal to the product of the number of months of
    15  service being claimed and three percent of such member's annual rate  of
    16  pay  immediately  preceding  the  date  that the member's employment was
    17  suspended, plus five percent annual interest to the date such payment is
    18  paid. To be eligible to receive credit pursuant to this  act,  a  member
    19  shall  make application for such credit before his or her effective date
    20  of retirement.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09794-05-2

        S. 5964--A                          2

     1    § 2. Any additional costs for this act shall be borne by the state  of
     2  New York.
     3    § 3. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would  allow  any  member  of the New York State and Local
        Employees' Retirement System (ERS) who was suspended from employment  as
        a peace officer of the unified court system in 1991 due to certain econ-
        omy  measures,  and  who  subsequently  returned  to service in 1992, to
        purchase service credit with the ERS for the period of time the member's
        employment was suspended. To be  eligible  for  any  additional  service
        credit,  a  member must have accrued at least 5 years of service credit,
        not including service credited under  this  bill.  The  member  will  be
        required  to  pay  a sum equal to the product of the number of months of
        service being claimed and three percent of  their  annual  rate  of  pay
        immediately  preceding  the  date  their  employment was suspended, plus
        interest at 5% to the date of payment. This bill would not be consistent
        with New York State and  Local  Retirement  System  policy  of  granting
        service credit only when a salary has been paid.
          Insofar  as  it  would  affect the ERS, if this legislation is enacted
        during the 2022 legislative  session  it  is  estimated  that  the  past
        service  cost  will  average  approximately  18  percent  of an affected
        member's compensation for each year of additional service granted.  This
        cost will be borne entirely by the State of New York.
          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 21, 2022,  and  intended  for  use  only
        during  the  2022  Legislative  Session,  is  Fiscal  Note  No. 2022-29,
        prepared by the Actuary for the New  York  State  and  Local  Retirement
        System.
feedback