STATE OF NEW YORK
________________________________________________________________________
6505
2017-2018 Regular Sessions
IN SENATE
May 26, 2017
___________
Introduced by Sens. LARKIN, GALLIVAN -- 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, the education
law and the administrative code of the city of New York, in relation
to supplemental military retirement allowances for members of public
retirement systems of the state
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Section 1000 of the retirement and social security law is
2 amended by adding a new subdivision 8-a to read as follows:
3 8-a. A person who retired prior to May twenty-first, two thousand
4 sixteen and who would have been entitled to the provisions of this
5 section, may make application to such retirement system no later than
6 December thirty-first, two thousand eighteen for a supplemental military
7 retirement allowance pursuant to this subdivision. The supplemental
8 retirement allowance provided by this subdivision shall be in lieu of
9 any benefit otherwise provided pursuant to this section and any credit
10 granted for military service with any retirement system of this state
11 pursuant to any other section of law. Upon receipt of an application,
12 the retirement system shall determine the amount of service credit such
13 person would have been entitled to receive pursuant to subdivisions one
14 and two of this section, subject to the limitations contained in this
15 section. The supplemental military retirement allowance shall equal the
16 retirement allowance of such person, computed without optional modifica-
17 tion and not to exceed fifteen thousand dollars, multiplied by twenty-
18 five one-hundredths of one percent per month of the service credit as
19 determined pursuant to this subdivision. One-twelfth of the supple-
20 mental military retirement allowance shall be added to the retirement
21 allowance of such person each month. The benefit payable pursuant to
22 this section shall commence on the next retirement allowance payable at
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08584-03-7
S. 6505 2
1 least thirty days after the receipt of an application from such person.
2 For the purposes of this subdivision, retirement allowance shall exclude
3 any annuity derived from voluntary contributions made by the individual,
4 except those made pursuant to elections under subdivision one of section
5 five hundred eleven-a or paragraph c of subdivision three of section
6 five hundred sixteen of the education law, but shall include any cost of
7 living adjustment derived from sections seventy-eight-a and three
8 hundred seventy-eight-a of this chapter or section five hundred thirty-
9 two-a of the education law, as applicable. The benefit payable pursuant
10 to this subdivision shall be payable for the life of the retired member
11 only, except that the surviving spouse of a deceased member who retired
12 under an option providing a benefit to be continued for life to the
13 surviving spouse after the death of the member shall be entitled to
14 receive fifty percent of the monthly benefit that the retired member
15 would be receiving pursuant to this subdivision, if living, commencing
16 with the next retirement allowance payable at least thirty days after
17 receipt of an application from the retired member for the benefit or
18 payable after the death of the retired member.
19 § 2. Subdivision b of section 78-a of the retirement and social secu-
20 rity law, as added by chapter 125 of the laws of 2000, is amended to
21 read as follows:
22 b. Said cost-of-living adjustment shall be a percentage of the annual
23 retirement allowance otherwise payable, computed without optional
24 modification, but including any benefit derived from subdivision f of
25 this section [and], any prior year's cost-of-living adjustment derived
26 from this section and the amount of any supplemental military retirement
27 allowance derived from subdivision eight-a of section one thousand of
28 this chapter. Said percentage is set forth in subdivision d of this
29 section.
30 § 3. Subdivision b of section 378-a of the retirement and social secu-
31 rity law, as added by chapter 125 of the laws of 2000, is amended to
32 read as follows:
33 b. Said cost-of-living adjustment shall be a percentage of the annual
34 retirement allowance otherwise payable, computed without optional
35 modification, but including any benefit derived from subdivision f of
36 this section [and], any prior year's cost-of-living adjustment derived
37 from this section and the amount of any supplemental military retirement
38 allowance derived from subdivision eight-a of section one thousand of
39 this chapter. Said percentage is set forth in subdivision d of this
40 section.
41 § 4. Subdivision b of section 532-a of the education law, as added by
42 chapter 125 of the laws of 2000, is amended to read as follows:
43 b. Said cost-of-living adjustment shall be a percentage of the annual
44 retirement allowance otherwise payable, computed without optional
45 modification, excluding any annuity derived from voluntary contributions
46 made by members, except those made pursuant to elections under subdivi-
47 sion one of section five hundred eleven-a or paragraph c of subdivision
48 three of section five hundred sixteen of this article, but including any
49 benefit derived from subdivision f of this section [and], any prior
50 year's cost-of-living adjustment derived from this section and the
51 amount of any supplemental military retirement allowance derived from
52 subdivision eight-a of section one thousand of the retirement and social
53 security law. Said percentage is set forth in subdivision d of this
54 section.
S. 6505 3
1 § 5. Subdivision b of section 13-696 of the administrative code of the
2 city of New York, as added by chapter 125 of the laws of 2000, is
3 amended to read as follows:
4 b. Said cost-of-living adjustment shall be a percentage of the annual
5 fixed retirement allowance otherwise payable, computed without optional
6 modification, but including any benefit derived from subdivision f of
7 this section [and], any prior year's cost-of-living adjustment derived
8 from this section and the amount of any supplemental military allowance
9 derived from subdivision eight-a of section one thousand of the retire-
10 ment and social security law. Said percentage is set forth in subdivi-
11 sion d of this section.
12 § 6. This act shall take effect immediately.
FISCAL NOTE.--This bill would amend section 1000 of the Retirement and
Social Security Law by adding a new subdivision 8-a to allow eligible
retired members of public retirement systems of New York State to
receive a supplemental military retirement allowance based upon the
retirement allowance of such member and up to three years of military
service credit. This supplemental benefit would be in lieu of any bene-
fit otherwise provided by military service credit. The annual supple-
mental military retirement allowance shall be equal to the retirement
allowance of such person, computed without optional modification and not
to exceed fifteen thousand dollars, multiplied by twenty-five one-hun-
dredths of one percent per month of military service claimed. The
surviving spouse of a deceased member who retired under an option which
provides them with a continuing lifetime benefit would be entitled to
receive fifty percent of the supplemental military retirement allowance
that the retired member would have received. A member must have retired
prior to May 21, 2016 and make application no later than December 31,
2018. This benefit is prospective only and shall commence at least 30
days after the receipt of said application. There is no member cost for
this benefit.
It is not possible to determine the total annual cost to the employers
of members of the New York State Teachers' Retirement System since the
number of retired members who would be eligible for the supplemental
military retirement allowance under this bill cannot be effectively
estimated. However, the cost is estimated to be, on average, approxi-
mately $12,400 for each retired member eligible for the supplemental
military retirement allowance provided under this bill if enacted.
Employee data is from the System's most recent actuarial valuation
files, consisting of data provided by the employers to the Retirement
System. Data distributions and statistics can be found in the System's
Comprehensive Annual Financial Report (CAFR). System assets are as
reported in the System's financial statements, and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
The source of this estimate is Fiscal Note 2017-11 dated March 23,
2017 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2017 Legislative Session.
I, Richard A. Young, am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
FISCAL NOTE.-- This bill would amend Section 1000 of the Retirement
and Social Security Law to give veterans who retired prior to May 21,
2016 a supplemental pension equal to their first $15,000 of single life
allowance together with any cost of living adjustment, multiplied by 3%
S. 6505 4
per year for up to three (3) years of such service credit for military
service that would have been eligible if the member retired on or after
such date. The surviving spouse of such a retired veteran who chose a
continued life benefit to the spouse shall receive half of what the
deceased member would have received. There would not be any payment
required by an affected retiree or surviving spouse for this supple-
mental pension. Such retiree may make application for the supplemental
pension no later than December 31, 2018 and the payment of the benefit
will begin with the next monthly pension payment payable at least 30
days after receipt of the application.
The exact number of retirees that could be affected by this legis-
lation cannot be readily determined.
ERS Costs: Pursuant to Section 25 of the Retirement and Social Securi-
ty Law, the increased cost to the New York State and Local Employees'
Retirement System would be borne entirely by the State of New York and
would require an itemized appropriation sufficient to pay the cost of
the provision. Once a retiree applies for this benefit a cost will be
generated, which will be billed to the state.
PFRS Costs: These costs would be shared by the State of New York and
the participating employers in the PFRS.
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 3, 2017, and intended for use only
during the 2017 Legislative Session, is Fiscal Note No. 2017-50,
prepared by the Actuary for the New York State and Local Retirement
System.