Bill Text: NY S08742 | 2019-2020 | General Assembly | Introduced

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Bill Title: Authorizes Thomas Smith to receive credit under the optional twenty-year retirement plan of the retirement and social security law available to police officers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2020-11-11 - signed chap.266 [S08742 Detail]

Download: New_York-2019-S08742-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8742

                    IN SENATE

                                      July 13, 2020
                                       ___________

        Introduced  by Sen. KAMINSKY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to authorize the village of Malverne, in the county of Nassau, to
          offer a twenty-year retirement plan to police officer Thomas Smith

          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 to the contrary,
     2  the  village  of  Malverne,  in  the  county  of Nassau, a participating
     3  employer in the New York state and  local  police  and  fire  retirement
     4  system,  which  previously  elected  to  offer  the optional twenty-year
     5  retirement plan, established pursuant to section 384-d of the retirement
     6  and social security law, to police officers employed by such village, is
     7  hereby authorized to make participation in such plan available to Thomas
     8  Smith, a police officer employed by the village of  Malverne,  who,  for
     9  reasons  not  ascribable  to his own negligence, failed to make a timely
    10  application to participate in such optional twenty-year retirement plan.
    11  The village of Malverne may so elect by  filing  with  the  state  comp-
    12  troller,  within  12  months of the effective date of this act, a resol-
    13  ution of the village board of trustees together with certification  that
    14  such  police  officer  did  not  bar  himself from participation in such
    15  retirement plan as a result of  his  own  negligence.  Thereafter,  such
    16  police  officer  may  elect  to  be covered by the provisions of section
    17  384-d of the retirement and social security law, and shall  be  entitled
    18  to  the  full  rights  and  benefits associated with coverage under such
    19  section, by filing a request to that effect with the  state  comptroller
    20  within 6 months of the village of Malverne's filing.
    21    §  2.  All  past  costs associated with implementing the provisions of
    22  this act shall be borne by the village of Malverne, and may be amortized
    23  over a period of ten years.
    24    § 3. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would allow Thomas Smith, a member of the New York State and
        Local Police and Fire Retirement System (PFRS) employed by  the  Village
        of  Malverne  and  currently covered under an age 55 retirement plan, to

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16890-03-0
        S. 8742                             2

        elect to participate in the  20  year  retirement  plan  established  by
        Section 384-d of the Retirement and Social Security Law.
          If this bill is enacted during the 2020 legislative session and Thomas
        Smith  becomes  covered under the provisions of Section 384-d, we antic-
        ipate that there will be an increase of  approximately  $13,000  in  the
        annual  contributions  of  the  Village  of Malverne for the fiscal year
        ending March 31, 2021. In future years, this cost will vary as the bill-
        ing rates and salary of Thomas Smith change.
          In addition to the annual contributions discussed above, there will be
        an immediate past service cost of approximately $101,000 which  will  be
        borne by the Village of Malverne as a one-time payment. This estimate is
        based  on  the assumption that payment will be made on February 1, 2021.
        If the Village of Malverne elects to amortize this cost over a  10  year
        period, the cost for the first year including interest would be $13,300.
          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, 2019  actuarial  valu-
        ation.    Distributions  and  other  statistics can be found in the 2019
        Report of the  Actuary  and  the  2019  Comprehensive  Annual  Financial
        Report.
          The  actuarial assumptions and methods used are described in the 2015,
        2016, 2017, 2018, and 2019 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, 2019
        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 July 10, 2020, and intended for use  only  during
        the  2020  Legislative Session, is Fiscal Note No. 2020-127, prepared by
        the Actuary for the New York State and Local Retirement System.