Bill Text: NY S07134 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to providing county correction officers with a special optional twenty year retirement plan.
Spectrum: Moderate Partisan Bill (Republican 10-2)
Status: (Vetoed) 2018-12-21 - VETOED MEMO.316 [S07134 Detail]
Download: New_York-2017-S07134-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7134 IN SENATE (Prefiled) January 3, 2018 ___________ Introduced by Sen. ORTT -- 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 providing county correction officers with a special optional twenty year retirement plan 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 14-C to read as follows: 3 ARTICLE 14-C 4 OPTIONAL RETIREMENT PLAN FOR COUNTY CORRECTION OFFICERS OR DEPUTY 5 SHERIFFS PERFORMING AS CORRECTION OFFICERS 6 Section 561. Definitions. 7 562. Optional twenty year retirement plan for certain members 8 whose employer elects to provide same. 9 563. Additional pension benefit for members of optional twenty 10 year retirement plan. 11 564. Consistent provisions. 12 § 561. Definitions. For purposes of this article: 13 (a) "Member" shall mean a person who is employed as a county 14 correction officer or a deputy sheriff who is engaged directly in 15 correction officer duties that aggregate fifty per centum of their 16 service by a county which elects by resolution or local law, duly 17 adopted, to provide the benefits as authorized by this article. 18 (b) "Retirement system" shall mean the New York state and local 19 employees' retirement system. 20 (c) "Creditable service" shall include any and all services performed 21 as a sheriff, undersheriff or deputy sheriff, or correction officer. 22 Credit for service as a member or officer of the state police or as a 23 paid fireman, policeman or officer of any organized fire department or 24 police force or department of any county, city, village, town, fire 25 district or police district, shall also be deemed to be creditable 26 service and shall be included in computing years of total service for EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04153-04-7S. 7134 2 1 retirement pursuant to this section, provided such service was performed 2 by the member while contributing to the retirement system pursuant to 3 the provisions of this article or article eight of this chapter. 4 § 562. Optional twenty year retirement plan for certain members whose 5 employer elects to provide same. (a) Any member of the retirement system 6 may elect to become a member pursuant to the provisions of this section 7 within one year after he or she becomes a member, if his or her employer 8 has elected to make the benefits provided by this section available to 9 members, or within one year after his or her employer elects to make the 10 benefits provided by this section available to its members. 11 (b) Elections made pursuant to this section shall be in writing and 12 shall be duly acknowledged and filed with the comptroller. Any member 13 who files such an election pursuant to this section may withdraw it 14 after it has been filed for at least a year. Such withdrawal shall be by 15 written notice duly acknowledged and filed with the comptroller. 16 (c) A member participating on the basis of this section at the time of 17 retirement shall be entitled to retire after the completion of twenty 18 years of total creditable service or upon the attainment of age sixty- 19 two, by filing an application therefor in a manner similar to that 20 provided in this chapter. 21 (i) Upon completion of twenty years of such service and upon retire- 22 ment, each such member shall receive a pension sufficient to provide him 23 or her with a retirement allowance equal to one-fortieth of his or her 24 final average salary for each year of total creditable services for 25 which he or she is otherwise entitled but not exceeding in the aggregate 26 one-half of his or her final average salary. 27 (ii) Upon attainment of age sixty-two and upon retirement without 28 completion of twenty years of such service, each such member shall 29 receive a pension sufficient to provide him or her with a retirement 30 allowance equal to one-fortieth of his or her final average salary for 31 each year of creditable service. Every such member shall also be enti- 32 tled to an additional pension equal to the pension for any other credit- 33 able service rendered as otherwise provided for in this chapter. This 34 latter pension shall not increase the total allowance to more than one- 35 half of his or her final average salary. 36 (d) The increased pensions to such members, as provided by this 37 section, shall be paid from additional contributions made by the partic- 38 ipating employer on account of such members. The actuary of the retire- 39 ment system shall compute the additional contribution required for each 40 member who elects to receive the special benefits provided under this 41 section. Such additional contributions shall be computed on the basis of 42 contributions during the prospective service of such member which will 43 cover the liability of the retirement system for such extra pensions. 44 Upon approval of the comptroller, such additional contributions shall be 45 certified by him or her to the chief fiscal officer or the participating 46 employer. The amount thereof shall be included in the annual appropri- 47 ation of the participating employer. Such amount shall be paid on the 48 warrant of the chief fiscal officer of the participating employer to the 49 pension accumulation fund of the retirement system. 50 (e) In computing the twenty years of completed service of a member, 51 full credit shall be given for military service as defined in subdivi- 52 sions twenty-nine-a and thirty of section three hundred two of this 53 chapter. 54 (f) Every member participating on the basis of this section shall be 55 separated from the service on the last day of the calendar month next 56 succeeding the calendar month in which he or she attains age sixty-two,S. 7134 3 1 provided, however, that such a member who attained the age of sixty-two 2 before his or her employer elected to make the benefits provided by this 3 section available to him or her, or who attains the age of sixty-two 4 within one month after his or her employer makes such benefits avail- 5 able, to be eligible for a pension computed in accordance with the 6 provisions of this section, shall be separated from the service within 7 three months after his or her employer makes such benefits available. 8 (g) The provisions of this section shall be controlling notwithstand- 9 ing any other provision of this article to the contrary. 10 (h) The benefits of this section shall be available only to those 11 members whose employer elects to provide such benefits by adopting a 12 resolution or local law to such effect and filing a certified copy ther- 13 eof with the comptroller. 14 (i) The benefits provided by this section shall be payable to a 15 member, unless at the date of retirement such member would otherwise be 16 entitled to a greater benefit under other provisions of this chapter had 17 he or she withdrawn from this section, in which event such greater bene- 18 fits shall be payable. 19 § 563. Additional pension benefit for members of optional twenty year 20 retirement plan. (a) A participating employer which has elected, or 21 which elects to provide the benefits of the optional twenty year retire- 22 ment plan for its employees as specified in this article may elect to 23 make contributions for the purpose of providing an additional pension 24 pursuant to this section for members in its employ who are entitled to a 25 pension pursuant to section five hundred sixty-two of this article. 26 Every member employed by an employer which has elected the provisions of 27 section five hundred sixty-two of this article and this section may 28 elect to be covered by the provisions of this section by filing with the 29 comptroller, a duly executed and acknowledged form prepared by the comp- 30 troller for that purpose. 31 (b) Upon retirement, each such member shall receive, for each year of 32 service in excess of twenty, an additional pension which shall be equal 33 to one-sixtieth of his or her final average salary; provided, however, 34 that the total allowance payable pursuant to this section shall not 35 exceed three-quarters of such member's final average salary. 36 § 564. Consistent provisions. Nothing contained in this article shall 37 be construed to otherwise affect the applicability of article eleven, 38 fourteen or fifteen of this chapter. Any other provisions of this chap- 39 ter relating to mandatory contribution to the retirement system based 40 upon a member's date of membership in such system shall not be deemed to 41 be affected by the provisions of this article, and any member who on the 42 effective date of this article is not required to contribute shall not 43 be required to make any contributions as a result of this section. For 44 those members required to contribute to the retirement system, such 45 contribution shall be treated in the same manner as specified for such 46 members in article fourteen or fifteen of this chapter. 47 § 2. Any past service payments required of a county as a result of the 48 adoption of the benefits permitted by this act may be amortized over a 49 period of up to ten years at the option of such county. 50 § 3. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill will allow any county to elect to provide their correction officers and deputy sheriffs who are engaged in correction officer duties to become covered by the provisions of a special 20 year retire- ment plan, which will provide a benefit of one-half of final average salary upon retirement. The county may also elect an additional benefitS. 7134 4 of one sixtieth of final average salary for each year of service in excess of 20 years, not to exceed 15 such years. If this bill is enacted, the increase in the annual contributions of a county electing to provide these benefits will depend on the salary and plan coverage of the affected members in its employ. For the 20 year plan, the additional annual cost will be: Current Plan Tier 3&4 Tier 5 Tier 6 25-year 4.7% 5.0% 5.5% Age 55 7.0% 7.5% 7.1% For the 20 year plan with additional sixtieths, the additional annual cost will be: Current Plan Tier 3&4 Tier 5 Tier 6 25-year 5.2% 5.7% 6.4% Age 55 7.5% 8.2% 8.0% These costs are stated as of the fiscal year ending March 31, 2019, as a percent of affected corrections officers' salary. In future years, this annual cost will vary as the billing rates of these plans change. In addition to the annual contributions discussed above, there will be an immediate past service cost for the affected officers which would depend on the current salary, plan, age and length of service of the officers, as well as on the proposed plan. This cost may be amortized over a period of up to 10 years as determined by the employing county which elects the benefit. Summary of relevant sources: The membership date used in measuring the impact of the proposed change was the same as that used in the March 31, 2017 actuarial valu- ation. Distributions and other statistics can be found in the 2017 Report of the Actuary and the 2017 Comprehensive Annual Financial Report. The actuarial assumptions and methods used are described in the 2015, 2016, and 2017 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, 2017 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 December 8, 2017, and intended for use only during the 2018 Legislative Session, is Fiscal Note No. 2018-12, prepared by the Actuary for the New York State and Local Retirement System.
