Bill Text: NY S07162 | 2021-2022 | General Assembly | Amended


Bill Title: Relates to authorizing service credit for unpaid or reduced paid child care leave for members of the state police twenty year retirement plan.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-06-01 - SUBSTITUTED BY A7914C [S07162 Detail]

Download: New_York-2021-S07162-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         7162--C

                               2021-2022 Regular Sessions

                    IN SENATE

                                      June 3, 2021
                                       ___________

        Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules  --  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 -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee  --  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
          authorizing service credit for unpaid or reduced paid child care leave
          for members of the state police 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. Section 381-b of the retirement and social security law is
     2  amended by adding a new subdivision h to read as follows:
     3    h. Service credit for child care leave. Notwithstanding any other law,
     4  rule or regulation to the contrary, in  computing  the  years  of  total
     5  creditable  service  in the division of state police full service credit
     6  shall be given and full allowance shall be made for any period of unpaid
     7  or reduced paid child care leave taken by such member  and  approved  by
     8  the  division  of  state  police so long as such member returned to paid
     9  employment in the division of state police and provided such member, (1)
    10  files an application  to  such  retirement  system  within  ninety  days
    11  following  termination  of  the child care leave, (2) contributes to the
    12  retirement system an amount which such  member  would  have  contributed
    13  during  such  child care leave, together with interest thereon, based on
    14  the member's most recent twelve months of  non-zero  compensation  imme-
    15  diately  prior  to  the  leave  of  absence  and  the member's mandatory
    16  contribution rate, and (3) such member shall have at least five years of
    17  credited service, not including service credit granted in this  section,
    18  to  be eligible to receive the credit authorized pursuant to this subdi-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11474-16-2

        S. 7162--C                          2

     1  vision.  Service credit provided pursuant to this subdivision shall  not
     2  exceed one year of credit for each period of approved child care leave.
     3    § 2. All past service costs incurred in implementing the provisions of
     4  this act shall be borne by the state of New York.
     5    § 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 Police to be
        eligible for service credit with the New York State and Local Police and
        Fire Retirement System (NYSLPFRS) for any period of  unpaid  or  reduced
        paid  leave of absence, granted while such member was on approved family
        leave, so long as such member has returned to paid employment  with  the
        division of the state police. In addition, such member must have accrued
        at  least  five  years  of service credit to be eligible to purchase the
        additional service credit.
          For the additional  service  to  be  credited,  the  member  apply  is
        required  to  contribute an amount equal to their mandatory contribution
        rate applied to the most recent 12 months of non-zero compensation.
          This legislation would not be consistent with the Retirement  System's
        policy  that  service credit may only be granted for service for which a
        salary has been paid.
          If this bill is enacted during the 2022  legislative  session,  it  is
        estimated  that  the past service cost will average approximately 25% of
        an affected member's most recent 12 months of compensation for each year
        of additional service that is credited. This cost will be reduced by any
        contributions required to be paid by the member, which are estimated  to
        be  3%  for Tier 5 members and 6% for Tier 6 members. The remaining cost
        will be borne by the State of New York.
          The exact number of current members as  well  as  future  members  who
        could be affected by this legislation cannot be readily determined.
          Since  a member can apply for this service credit at any time prior to
        retirement, a precise cost cannot be determined until  each  member,  as
        well  as  future  members, applies for the service credit. Every year, a
        cost will be determined (and billed to the State of New York)  based  on
        those benefiting from this provision.
          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 May 18, 2022, and intended for  use  only  during
        the  2022  Legislative  Session,  is  Fiscal  Note No. 2022-147 Revised,
        prepared by the Actuary for the New  York  State  and  Local  Retirement
        System.
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