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A06511 Summary:

BILL NOA06511
 
SAME ASNo Same As
 
SPONSORByrnes
 
COSPNSR
 
MLTSPNSR
 
Amd §1000, R & SS L
 
Allows members of a public retirement system who retired prior to applying for credit for military service because such credit was not available at the time of their retirement to receive such credit if they apply prior to December 31, 2024.
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A06511 Actions:

BILL NOA06511
 
04/12/2023referred to governmental employees
01/03/2024referred to governmental employees
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A06511 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6511
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 12, 2023
                                       ___________
 
        Introduced by M. of A. BYRNES -- read once and referred to the Committee
          on Governmental Employees
 
        AN  ACT  to amend the retirement and social security law, in relation to
          allowing for certain members of a  public  retirement  system  of  the
          state to apply for credit for military service

          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 5-a to read as follows:
     3    5-a.  Notwithstanding  the  provisions  of  subdivision  five  of this
     4  section, a member, who is  ineligible  to  receive  the  credit  allowed
     5  pursuant to this section solely because such member retired on or before
     6  May thirty-first, two thousand sixteen, shall be eligible to receive the
     7  credit allowed pursuant to this section if such member makes application
     8  for  such  credit on or before December thirty-first, two thousand twen-
     9  ty-four. The service  credit  available  pursuant  to  this  subdivision
    10  shall,  when  calculated,  apply only to benefits received by the member
    11  after the date such member makes application  for  such  credit  and  no
    12  retroactive benefit payments shall be made to such applicant pursuant to
    13  this  subdivision.  To  obtain  credit  pursuant  to this subdivision, a
    14  member shall pay such retirement system, for deposit in the fund used to
    15  accumulate employer contributions, a sum equal to  the  product  of  the
    16  number  of  years of military service being claimed and three percent of
    17  such member's compensation earned during  the  last  twelve  consecutive
    18  months of credited service preceding the date that the member retired.
    19    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would allow members who retired on or before May 31, 2016 to
        apply  to  receive  military  service  credit  pursuant  to §1000 of the
        Retirement and Social Security Law.  Application  must  be  made  on  or
        before  December  31,  2024. If approved, the retirement benefit will be
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09136-02-3

        A. 6511                             2
 
        recalculated as of the date of application and no  retroactive  benefits
        will  be paid. Retires would be required to pay a sum equal to the prod-
        uct of number of years of military service granted times  three  percent
        (3%) of compensation earned during the last twelve consecutive months of
        credited  service  preceding  the  date  of retirement. Such retiree may
        receive up to three (3) years  of  service  credit  for  their  military
        service.
          Insofar  as this proposal affects the New York State and Local Employ-
        ees' Retirement Systems (NYSLERS) and  the  New  York  State  and  Local
        Police and Fire Retirement System (NYSLPFRS), if enacted during the 2023
        legislative  session,  the  cost  will  depend upon the applicant's age,
        service, salary, plan, and benefit type payable. For each year of  addi-
        tional  service  credit that is purchased, it is estimated that the past
        service cost will average:
          approximately 13% of affected retiree's final average  salary  in  the
        NYSLERS, and
          approximately  17%  of  affected retiree's final average salary in the
        NYSLPFRS.
          The number of retirees who  could  be  affected  by  this  legislation
        cannot  be readily determined. A precise cost cannot be calculated until
        each retiree applies for the service credit.
          Pursuant to Section 25 of the  Retirement  and  Social  Security  Law,
        those costs arising in the NYSLERS would be borne solely by the State of
        New  York. After the application deadline, a precise cost will be deter-
        mined (and billed to the State) based  on  those  benefiting  from  this
        provision.
          Those  costs  arising  in the NYSLPFRS would be shared by the State of
        New York and the participating employers in the NYSLPFRS  and  would  be
        spread over future billing cycles.
          Further,  we  anticipate  some  administrative  costs to implement the
        provisions of this legislation.
          Summary of relevant resources:
          Membership data as of March 31, 2022 was used in measuring the  impact
        of the proposed change, the same data used in the April 1, 2022 actuari-
        al  valuation.    Distributions and other statistics can be found in the
        2022 Report of the Actuary and the 2022 Annual  Comprehensive  Financial
        Report.
          The  actuarial assumptions and methods used are described in the 2020,
        2021, and 2022 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, 2022
        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 April 5, 2023, and intended for use only during
        the 2023 Legislative Session, is Fiscal Note No. 2023-134,  prepared  by
        the Actuary for the New York State and Local Retirement System.
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