A08212 Summary:

BILL NO    A08212A

SAME AS    SAME AS S05935-A

SPONSOR    Ryan

COSPNSR    

MLTSPNSR   

Amd S31, R & SS L

Relates to limiting participation by certain public or quasi-public
organizations in the retirement system.
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A08212 Actions:

BILL NO    A08212A

10/24/2013 referred to governmental employees
01/08/2014 referred to governmental employees
01/10/2014 amend and recommit to governmental employees
01/10/2014 print number 8212a
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A08212 Votes:

There are no votes for this bill in this legislative session.
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A08212 Memo:

BILL NUMBER:A8212A

TITLE OF BILL:  An act to amend the retirement and social security
law, in relation to participation by public or quasi-public
organizations in the retirement system

PURPOSE: To limit participation by officers and employees of certain
private organizations in the New York State public retirement system.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 31 of the retirement and social
security law in relation to participation of new employees of certain
private organizations in the New York State pension_ system.

Section 2 of the bill amends section 609 of the retirement and social
security law in relation to additional service credit for current
employees of certain private organizations in the New York State
pension system.

Section 3 is a severability clause.

Section 4 of the bill is the effective date.

JUSTIFICATION: The NYS retirement system is one of the largest in the
nation - with over a million participants and having a value of almost
$160 billion. The system is a benefit to hardworking public employees
and it is  a benefit to state and local government in terms of
attracting and retaining qualified employees. As much as the
retirement system is a benefit, it is also a financial burden -
especially to local governments. According to the NYS Office of the
State Comptroller, for the 2011-2012 fiscal year, contributions to the
retirement system from government employers totaled over $4.5 billion.

In recent years, the NYS Legislature has acted responsibly in passing
measures to help_ control the cost of the state pension system,
particularly for local governments And, although reform measures such
as new pension tiers have been established, there are still other
problems with the pension system that must be fixed. A prime example
of this is the state's law permitting employees of certain private
organizations to participate in the state's public retirement system.
Under current law, officers and employees of private organizations
such as the NYS Association of Counties, the NYS School Boards
Association, the Association of Towns of the State of New York, and
the NYS Conference of Mayors are all eligible to participate in New
York's retirement system. Decades ago, these organizations applied for
(and were granted) this special privilege. Consequently, the state's
public retirement system includes certain private-sector employees
that enjoy a special benefit that other similarly situated private
sector employees do not have. A particularly troubling aspect of this
arrangement is that, in some cases, the officers and employees of
these private organizations are actually registered lobbyists.

Ultimately, the state pensions for these individuals increases costs
for state and local government - costs that are ultimately borne by
New York residents. It is outrageous and unfair to require New York


residents to pay the costs of a public pension for private sector
lobbying organizations.

Another particularly irksome aspect of this situation is that these
groups regularly lobby New York state government officials to reduce
the high costs of pensions for local governments - the very costs that
their officers and employees are contributing to through the special
privilege they are taking advantage of In fact, the NYS Association of
Counties, The NYS Conference of Mayors and the NYS Schools Boards
Association have all had pension reform on their lobbying agenda.

To be sure, the NYS retirement system is large and costs a lot of
money. There are many, many hardworking public employees that deserve
a public pension -- and a pension system should be maintained for
these individuals. However, the fact that the current system provides
a public pension to private-sector lobbying organizations demands a
fix. This bill does just that.

BILL HISTORY: New Bill

FISCAL IMPLICATIONS: This bill will reduce the number of individuals
eligible for the NYS retirement system and will reduce additional
service credit for certain individuals already in the retirement
system. Therefore, pension costs for NYS and for local governments
will be reduced.

EFFECTIVE DATE: Immediately.
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A08212 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                        8212--A

                              2013-2014 Regular Sessions

                                 I N  A S S E M B L Y

                                   October 24, 2013
                                      ___________

       Introduced  by  M. of A. RYAN -- read once and referred to the Committee
         on Governmental Employees -- recommitted to the Committee  on  Govern-
         mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit-
         tee  discharged, bill amended, ordered reprinted as amended and recom-
         mitted to said committee

       AN ACT to amend the retirement and social security law, in  relation  to
         participation  by  public or quasi-public organizations in the retire-
         ment system

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  Subdivision  a of section 31 of the retirement and social
    2  security law, as amended by chapter 379 of the laws of 1989, is  amended
    3  to read as follows:
    4    a. Any public or quasi-public organization created wholly or partly or
    5  deriving  its powers by the legislature of the state and which organiza-
    6  tion employs persons engaged in service to the public or any state agen-
    7  cy as defined in section fifty-three-a of the state finance law, or  the
    8  New  York state association of town superintendents of highways, inc. or
    9  any school board association,  by  resolution  legally  adopted  by  its
   10  governing  body  and  approved by the comptroller, may elect to have its
   11  officers and employees become eligible to participate in the  retirement
   12  system.    Acceptance  of the officers and employees of such an employer
   13  for membership in the retirement system shall be optional with the comp-
   14  troller. If he shall approve  their  participation,  such  organization,
   15  except  as  specifically provided in this article to the contrary, shall
   16  thereafter be treated as a participating  employer.  Any  election  made
   17  pursuant  to  this  subdivision  by  a school board association shall be
   18  applicable to current employees of such  association.    NOTWITHSTANDING
   19  THE  FOREGOING PROVISIONS, ANY OFFICER OR EMPLOYEE OF THE NEW YORK STATE
   20  ASSOCIATION OF TOWN SUPERINTENDENTS OF  HIGHWAYS,  INC.,  THE  NEW  YORK
   21  STATE SCHOOL BOARDS ASSOCIATION, THE NEW YORK STATE ASSOCIATION OF COUN-

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11764-07-3
       A. 8212--A                          2

    1  TIES,  THE  ASSOCIATION  OF TOWNS OF THE STATE OF NEW YORK, THE NEW YORK
    2  CONFERENCE OF MAYORS AND OTHER MUNICIPAL OFFICIALS, OR ANY SCHOOL  BOARD
    3  ASSOCIATION,  FIRST EMPLOYED ON OR AFTER THE EFFECTIVE DATE OF THE CHAP-
    4  TER OF THE LAWS OF TWO THOUSAND FOURTEEN WHICH AMENDED THIS SUBDIVISION,
    5  SHALL  NOT  BE  ELIGIBLE TO PARTICIPATE AND/OR RECEIVE SERVICE CREDIT IN
    6  THE RETIREMENT SYSTEM BASED ON SUCH EMPLOYMENT.
    7    S 2. This act shall take effect immediately.
         FISCAL NOTE.--This bill would require that persons first  employed  by
       the  following  associations  on or after the effective date will not be
       eligible to membership in  the  New  York  State  and  Local  Employees'
       Retirement System:
         The  New  York  state association of town superintendents of highways,
       inc,
         The New York state school board association,
         The New York state association counties,
         The association of towns of the state of New York,
         The New York conference of mayors and other municipal officials, and
         Any school board association.
         If this bill is enacted, there will  be  no  cost  to  the  retirement
       system.
         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, 2013  actuarial  valu-
       ation.    Distributions  and  other  statistics can be found in the 2013
       Report of the Actuary and the 2013 Comprehensive Annual Financial Report
       when released in the fall of 2013.
         The actuarial assumptions and methods used are described in the  2010,
       2011,  2012  and  2013  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, 2013
       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  statement  of  actuarial   opinion
       contained herein.
         This  estimate,  dated  September  3,  2013, and intended for use only
       during the 2014 Legislative Session, is Fiscal Note No. 2014-7, prepared
       by the Actuary for the New York State and  Local  Employees'  Retirement
       System.
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