S05937 Summary:

BILL NOS05937
 
SAME ASSAME AS A08174-A
 
SPONSORLARKIN
 
COSPNSRADDABBO, AMEDORE, AVELLA, BONACIC, BOYLE, CARLUCCI, CROCI, DEFRANCISCO, DIAZ, DILAN, ESPAILLAT, FARLEY, FELDER, FLANAGAN, FUNKE, GALLIVAN, GOLDEN, GRIFFO, HASSELL-THOMPSON, HOYLMAN, KENNEDY, LANZA, LAVALLE, LITTLE, MARCHIONE, MARTINS, MURPHY, NOZZOLIO, ORTT, PARKER, PERALTA, RANZENHOFER, RITCHIE, ROBACH, SAVINO, SERINO, SEWARD, VENDITTO, YOUNG
 
MLTSPNSR
 
Amd S1000, R & SS L
 
Provides up to three years of service credit to members of public retirement systems of the state for military service rendered during times of peace; removes requirement that such military service occur during specified periods of hostilities; requires such members have at least five years of credited service, not including military service; appropriates $24,800,000 therefor.
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S05937 Actions:

BILL NOS05937
 
06/12/2015REFERRED TO FINANCE
06/17/2015COMMITTEE DISCHARGED AND COMMITTED TO RULES
06/17/2015ORDERED TO THIRD READING CAL.1754
06/17/2015PASSED SENATE
06/17/2015DELIVERED TO ASSEMBLY
06/17/2015referred to governmental employees
06/24/2015substituted for a8174a
06/24/2015ordered to third reading rules cal.738
06/24/2015passed assembly
06/24/2015returned to senate
10/14/2015DELIVERED TO GOVERNOR
10/26/2015VETOED MEMO.221
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S05937 Memo:

Memo not available
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S05937 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5937
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                      June 12, 2015
                                       ___________
 
        Introduced by Sens. LARKIN, ADDABBO, AMEDORE, AVELLA, BONACIC, CARLUCCI,
          CROCI,  DeFRANCISCO, DIAZ, DILAN, ESPAILLAT, FARLEY, FELDER, FLANAGAN,
          FUNKE, GALLIVAN, GOLDEN, GRIFFO, HASSELL-THOMPSON,  HOYLMAN,  KENNEDY,
          LANZA,  LAVALLE, LIBOUS, LITTLE, MARCHIONE, MARTINS, MURPHY, NOZZOLIO,
          ORTT, PARKER, PERALTA, RANZENHOFER, RITCHIE, ROBACH,  SAVINO,  SERINO,
          SEWARD, SKELOS, VENDITTO, YOUNG -- read twice and ordered printed, and
          when printed to be committed to the Committee on Finance
 
        AN  ACT  to amend the retirement and social security law, in relation to
          providing credit to members of public retirement systems of the  state
          for military service; and making an appropriation therefor
 
          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,  as
     2  added  by  chapter  548  of  the laws of 2000, subdivision 9 as added by
     3  chapter 547 of the laws of 2002 and subdivision 10 as added  by  chapter
     4  18 of the laws of 2012, is amended to read as follows:
     5    §  1000.  Military  service  credit.  Notwithstanding  any  law to the
     6  contrary, a member of a  public  retirement  system  of  the  state,  as
     7  defined  in subdivision twenty-three of section five hundred one of this
     8  chapter, shall be eligible for credit for military service as hereinaft-
     9  er provided:
    10    1. A member, upon application to such retirement system, may obtain  a
    11  total  not to exceed three years of service credit for up to three years
    12  of military duty, as defined in section two hundred forty-three  of  the
    13  military  law,  if the member was honorably discharged from the military
    14  [and all or part of  such  military  service  was  rendered  during  the
    15  following  periods:  (a)  commencing  December seventh, nineteen hundred
    16  forty-one  and  terminating  December  thirty-first,  nineteen   hundred
    17  forty-six;  (b)  commencing  June twenty-seventh, nineteen hundred fifty
    18  and terminating January thirty-first, nineteen  hundred  fifty-five;  or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07385-08-5

        S. 5937                             2

     1  (c)  commencing  February  twenty-eighth, nineteen hundred sixty-one and
     2  terminating May seventh, nineteen hundred seventy-five;
     3    2.  A member, upon application to such retirement system, may obtain a
     4  total not to exceed three years of service credit for up to three  years
     5  of  military  duty, as defined in section two hundred forty-three of the
     6  military law, if honorably discharged therefrom, if all or part of  such
     7  services  was  rendered  in  the military conflicts referenced below, as
     8  follows:
     9    (a) hostilities participated in by the military forces of  the  United
    10  States  in Lebanon, from the first day of June, nineteen hundred eighty-
    11  three to the first day of December, nineteen  hundred  eighty-seven,  as
    12  established by receipt of the armed forces expeditionary medal, the navy
    13  expeditionary medal, or the marine corps expeditionary medal;
    14    (b)  hostilities  participated in by the military forces of the United
    15  States in Grenada,  from  the  twenty-third  day  of  October,  nineteen
    16  hundred  eighty-three  to  the  twenty-first  day  of November, nineteen
    17  hundred eighty-three, as established by  receipt  of  the  armed  forces
    18  expeditionary  medal,  the navy expeditionary medal, or the marine corps
    19  expeditionary medal;
    20    (c) hostilities participated in by the military forces of  the  United
    21  States  in  Panama, from the twentieth day of December, nineteen hundred
    22  eighty-nine to the thirty-first day of January, nineteen hundred ninety,
    23  as established by receipt of the armed forces expeditionary  medal,  the
    24  navy expeditionary medal, or the marine corps expeditionary medal; or
    25    (d)  hostilities  participated in by the military forces of the United
    26  States, from the second day of August, nineteen hundred ninety,  to  the
    27  end  of  such hostilities in case of a veteran who served in the theater
    28  of operations including Iraq, Kuwait, Saudi Arabia, Bahrain, Qatar,  the
    29  United  Arab  Emirates,  Oman,  the  Gulf of Aden, the Gulf of Oman, the
    30  Persian Gulf, the Red Sea, and the airspace above these locations].
    31    [3] 2. A member must have at least five years of credited service (not
    32  including service granted hereunder) to be eligible  to  receive  credit
    33  under this section.
    34    [4]  3.  To  obtain  such  credit,  a member shall pay such retirement
    35  system, for deposit in the fund used  to  accumulate  employer  contrib-
    36  utions,  a  sum  equal to the product of the number of years of military
    37  service being claimed and three percent of  such  member's  compensation
    38  earned  during the twelve months of credited service immediately preced-
    39  ing the date that the member made application  for  credit  pursuant  to
    40  this  section.  If  permitted  by  rule  or regulation of the applicable
    41  retirement system, the member may  pay  such  member  costs  by  payroll
    42  deduction  for  a period which shall not exceed the time period of mili-
    43  tary service to be credited pursuant to this section. In the  event  the
    44  member leaves the employer payroll prior to completion of payment, he or
    45  she  shall  forward  all  remaining required payments to the appropriate
    46  retirement system prior to the effective date of retirement. If the full
    47  amount of such member costs is not paid to  the  appropriate  retirement
    48  system  prior to the member's retirement, the amount of service credited
    49  shall be proportional to the total amount of the payments made prior  to
    50  retirement.
    51    [5]  4. In no event shall the credit granted pursuant to this section,
    52  when added to credit granted for military service  with  any  retirement
    53  system  of  this  state  pursuant to this or any other provision of law,
    54  exceed a total of three years.
    55    [6] 5. To be eligible to receive credit  for  military  service  under
    56  this  section, a member must make application for such credit before the

        S. 5937                             3
 
     1  effective date of retirement. [Notwithstanding the foregoing  provisions
     2  of  this  subdivision,  an  individual  who retired on or after December
     3  twenty-first, nineteen hundred ninety-eight  and  before  the  effective
     4  date  of  this  section may make application for credit pursuant to this
     5  section within one year following the effective date of this section, in
     6  which event, the cost to the retiree would be based on the twelve  month
     7  period immediately preceding retirement.]
     8    [7]  6.  All  costs  for service credited to a member pursuant to this
     9  section, other than the member costs set forth in subdivision  three  of
    10  this section, shall be paid by the state and all employers which partic-
    11  ipate in the retirement system in which such member is granted credit.
    12    [8]  7. A member who has purchased military service credit pursuant to
    13  section two hundred forty-four-a of the military law shall  be  entitled
    14  to  a refund of the difference between the amount paid by the member for
    15  such purchase and the amount that would be payable if service  had  been
    16  purchased pursuant to this section.
    17    [9]  8.  Notwithstanding  any  other provision of law, in the event of
    18  death prior to retirement, amounts paid by the member for  the  purchase
    19  of  military  service credit pursuant to this section shall be refunded,
    20  with interest, to the extent the military service  purchased  with  such
    21  amounts  does  not  produce a greater death benefit than would have been
    22  payable had the member not purchased such credit.
    23    Notwithstanding any other provision of law, in the  event  of  retire-
    24  ment,  amounts  paid  by the member for the purchase of military service
    25  credit pursuant to this section shall be refunded, with interest, to the
    26  extent the military service purchased with such amounts does not produce
    27  a greater retirement allowance than would  have  been  payable  had  the
    28  member not purchased such credit.
    29    [10.]  9. Anything to the contrary in subdivision [four] three of this
    30  section notwithstanding, to obtain such credit, a member who first joins
    31  a public retirement system of the state on or  after  April  first,  two
    32  thousand  twelve  shall  pay  such retirement system, for deposit in the
    33  fund used to accumulate employer contributions, a sum equal to the prod-
    34  uct of the number of years of military service  being  claimed  and  six
    35  percent of such member's compensation earned during the twelve months of
    36  credited  service  immediately  preceding  the date that the member made
    37  application for credit pursuant to this section.
    38    § 2.  The sum of twenty-four million eight  hundred  thousand  dollars
    39  ($24,800,000),  or so much thereof as may be necessary, is hereby appro-
    40  priated to the department of audit and control out of any moneys in  the
    41  state  treasury  in the general fund to the credit of the state purposes
    42  account, not otherwise appropriated, and made immediately available, for
    43  the purpose of carrying out the provisions of this  act.    Such  moneys
    44  shall be payable on the audit and warrant of the comptroller on vouchers
    45  certified  or  approved by the head of the appropriate public retirement
    46  system in the manner prescribed by law.
    47    § 3. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would allow up to three (3)  years  of  service  credit  for
        military  duty  by removing all existing requirements that such military
        service be performed during certain war periods, during certain  hostil-
        ities  while  in  the  theater  of  operations or upon the receipt of an
        expeditionary medal. However,  the  total  service  credit  granted  for
        active  and peacetime military service shall not exceed three (3) years.
        Tier 6 members would be required to make a payment  of  six  percent  of
        current  compensation  per  year of additional service credit granted by

        S. 5937                             4
 
        this bill. Members of all other  Tiers  would  be  required  to  make  a
        payment  of three percent of current compensation per year of additional
        service credit granted by this bill. Members must have at least five (5)
        years of credited service (not including military service).
          If this bill is enacted, insofar as this proposal affects the New York
        State and Local Employees' Retirement System (ERS), it is estimated that
        the  past service cost will average approximately 12% (9% for Tier 6) of
        an affected members' compensation for each year  of  additional  service
        credit that is purchased.
          Insofar  as  this proposal affects the New York State and Local Police
        and Fire Retirement System (PFRS), it is estimated that the past service
        cost will average approximately 17% (14% for  Tier  6)  of  an  affected
        members'  compensation  for  each  year  of  additional  service that is
        purchased.
          The exact number of current members as  well  as  future  members  who
        could be affected by this legislation cannot be readily determined.
          ERS Costs: Pursuant to Section 25 of the Retirement and Social Securi-
        ty  Law,  the  increased cost to the New York State and Local Employees'
        Retirement System would be borne entirely by the State of New  York  and
        would  require  an  itemized appropriation sufficient to pay the cost of
        the provision. Since a member can apply for this service credit  at  any
        time  prior to retirement, a precise cost can't 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) based on  those
        benefiting from this provision.
          PFRS  Costs:  These costs would be shared by the State of New York and
        the participating employers in the PFRS.
          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, 2014 actuarial valu-
        ation.  Distributions and other statistics can  be  found  in  the  2014
        Report  of  the  Actuary  and  the  2014  Comprehensive Annual Financial
        Report.
          The actuarial assumptions and methods used are described in the  2010,
        2011,  2012, 2013 and 2014 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, 2014
        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 February 11,  2015  and  intended  for  use  only
        during  the  2015  Legislative  Session,  is  Fiscal  Note  No. 2015-65,
        prepared by the Actuary for the New  York  State  and  Local  Employees'
        Retirement  System  and  the  New  York  State and Local Police and Fire
        Retirement System.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          With respect to certain New York City Retirement Systems (NYCRS), this
        proposed legislation would amend New York State  Retirement  and  Social
        Security  Law  (RSSL) Section 1000 to provide certain members of the New
        York City Employees' Retirement  System  (NYCERS),  the  New  York  City
        Teachers'  Retirement System (NYCTRS), the New York City Board of Educa-
        tion Retirement System (BERS), the New York  City  Police  Pension  Fund
        (POLICE)  and  the New York Fire Department Pension Fund (FIRE), collec-
        tively, the New York City Retirement Systems (NYCRS), the opportunity to

        S. 5937                             5
 
        obtain  additional  retirement  service  credits  for  certain  Military
        Service.
          This  proposed legislation would permit any NYCRS member, prior to the
        effective date of retirement, to make application for  these  additional
        service credits.
          To  obtain such Military Service credits, members would be required to
        pay to  the  appropriate  NYCRS,  for  each  year  of  Military  Service
        purchased,  a  sum equal to 3.0% (6.0% for members who first join on and
        after April 1, 2012) of such member's  compensation  earned  during  the
        twelve  months  of  credited service immediately preceding the date that
        the member makes application for credit.
          MEMBERS IMPACTED: Insofar as this proposed legislation relates to  the
        NYCRS,  the  number  of  members who could potentially benefit from this
        proposed legislation cannot be readily determined.
          IMPACT ON BENEFITS: With respect to the NYCRS, a member who served  in
        the  U.S.  military and received an honorable discharge would be permit-
        ted, after completing five years of credited service (exclusive  of  the
        service credit that could be purchased under this proposed legislation),
        to  purchase  a maximum of three years of Military Service (inclusive of
        any prior purchases of Military Service credit).
          In order to purchase the Military Service  credits  provided  in  this
        proposed  legislation,  a  member  must  have  been honorably discharged
        following a period of "military duty" as defined in New York State Mili-
        tary Law Section 243.
          If a member's Military  Service  meets  these  conditions,  then  that
        member  would be permitted to purchase a maximum of three years of Mili-
        tary Service (inclusive  of  any  previously-received  Military  Service
        credit) attributable to any period of the member's military career.
          For  purposes  of  the respective NYCRS, each year of Military Service
        credit purchased would apply toward providing the member with a year  of
        benefit  accrual  under  the  particular  benefit  formula  covering the
        member.
          In certain circumstances, the member also may be entitled  to  utilize
        such  Military  Service  as  qualifying  service for benefit eligibility
        purposes.
          For purposes of this Fiscal Note, it has been assumed that members who
        purchase Military Service in accordance with this  proposed  legislation
        would  generally  be  entitled to count such service for benefit accrual
        purposes and for the purpose of qualifying for benefits.
          FINANCIAL IMPACT - OVERVIEW: With respect to an individual member, the
        additional cost of this proposed legislation would depend on the  length
        of  all New York City service, age, salary history and Plan in which the
        member participates, as well as the number of years  of  service  credit
        purchased.
          With  respect  to  employers  participating in the NYCRS, the ultimate
        employer cost of this proposed legislation would be  determined  by  the
        increase in benefits to be paid, the impact of certain benefits commenc-
        ing earlier and the reduction in certain future member contributions.
          FINANCIAL  IMPACT - ACTUARIAL PRESENT VALUES: The additional Actuarial
        Present Value (APV) of benefits would depend on  the  number,  salaries,
        ages  and  lengths of Military Service purchased by members who would be
        affected by this proposed legislation.
          With respect to the NYCRS and based on the census data and assumptions
        herein, the enactment of this proposed legislation  would  increase  the
        Actuarial Present Value (APV) of benefits (APVB) by approximately $155.4
        million as of June 30, 2015.

        S. 5937                             6
 
          In  addition,  with  respect  to  the  NYCRS, the APV of future member
        contributions (primarily attributable to the payments by members of 3.0%
        (6.0% for members who first join on and after April 1, 2012)  of  salary
        per  year of Military Service purchased) would increase by approximately
        $23.4 million when measured as of June 30, 2015.
          Consequently, with respect to the NYCRS, the APV of net future employ-
        er  contributions  would  increase by approximately $132.0 million as of
        June 30, 2015.
          FINANCIAL IMPACT - ANNUAL EMPLOYER  COSTS:  The  ultimate  cost  of  a
        pension  plan  is  the  benefits it pays. With respect to the NYCRS, the
        financing of that ultimate cost depends upon the census  data  used  and
        the actuarial assumptions and methods employed. Assuming that all eligi-
        ble members were to purchase the eligible Military Service during Fiscal
        Year  2015  and based on the Actuary's actuarial assumptions and methods
        in effect as of June 30, 2013, the enactment  of  this  proposed  legis-
        lation  would  increase  annual  employer  costs  by approximately $15.7
        million per year.
          FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The impact of the  proposed
        legislation  on employer contributions would be a function of the census
        data (i.e., age/service/salary, etc.) reported to the Actuary and of the
        timing of the members electing to buy back their Military Service.
          With respect to the NYCRS, based on the  Actuary's  actuarial  assump-
        tions  and  methods in effect as of June 30, 2013, the enactment of this
        proposed legislation would ultimately increase employer contributions by
        approximately the estimated additional annual employer costs.
          If applications for buying back Military Service were completed during
        Fiscal Year 2015 and the NYCRS census data were updated to reflect  this
        information by June 30, 2015, then employer contributions would first be
        impacted for Fiscal Year 2017.
          If  the  Military  Service  buybacks  were completed after Fiscal Year
        2015, then the increase in employer contributions would be delayed.
          FINANCIAL IMPACT - SUMMARY: The following table summarizes  the  esti-
        mated financial impact of this proposed legislation on the NYCRS.
 
                Estimated Financial Impact to Allow Members of the NYCRS
                To Purchase up to Three Years of Military Service Credit
 
                                      ($ Millions)
 
                                                               Estimated
                                              Additional       First Year
                               Additional     APV of Future    Additional
             Retirement        APV of         Employer         Employer
             System            Benefits       Contributions{1} Costs{2}
 
             NYCERS            $ 52.8         $ 44.4           $ 5.3
             NYCTRS              15.6           12.9             1.5
             BERS                 2.2            1.8             0.2
             POLICE              67.5           57.9             6.9
             FIRE                17.3           15.0             1.8
                               ______         ______           _____
             TOTAL             $155.4         $132.0           $15.7
 
        {1}  Equals  increase  in  APVB  minus  increase in APV of future member
            contributions.

        S. 5937                             7
 
        {2} Estimated Additional Employer Costs are determined without regard to
            the funded status of the Retirement Systems and represent  the  best
            estimates  of  the  ultimate annual financial burden of the proposed
            legislation. Estimated Additional Employer Contributions would ulti-
            mately approximate Estimated Additional Employer Costs.
 
          ADDITIONAL  EMPLOYER COSTS - GENERAL: In general, the real cost of the
        enactment of this proposed legislation would be the additional  benefits
        paid.
          OTHER  COSTS:  Not  measured in this Fiscal Note is the impact of this
        proposed legislation on the Manhattan and Bronx Surface Transit  Operat-
        ing  Authority  (MaBSTOA) or on State or Local employers with respect to
        their participation in the New York State and Local  Retirement  Systems
        (NYSLRS) or the New York State Teachers' Retirement System (NYSTRS).
          Also, this Fiscal Note does not include analyses of the impact of this
        proposed  legislation  on the expected increases in administrative costs
        or costs for Other Post-Employment Benefits (OPEB).
          CENSUS DATA: The census data used for estimates of APV of benefits and
        employer contributions presented herein are the active members  included
        in the June 30, 2013 (Lag) actuarial valuations of NYCERS, NYCTRS, BERS,
        POLICE  and  FIRE  used  to  determine  Final  Fiscal Year 2015 employer
        contributions.
          ACTUARIAL ASSUMPTIONS AND METHODS:  Additional  APV  of  benefits,  of
        member  contributions  and of employer contributions have been estimated
        as of June 30, 2015 using various approximating techniques  and  assump-
        tions by the Actuary, including, but not limited to:
          * A certain percentage of Veterans being honorably discharged.
          *  A  certain  percentage of honorably discharged Veterans being disa-
        bled.
          * Different percentages of members  by  NYCRS  having  prior  Military
        Service.
          * Each eligible member purchasing an average of 2.5 years of the Mili-
        tary Service.
          Changes  in  employer  contributions  have been estimated assuming the
        increase in the APV of Future Employer Contributions would  be  financed
        over  a  time  period comparable to that used for actuarial losses under
        the Entry Age Actuarial Cost Method. Using this approach, the Additional
        APV of Future Employer Contributions would be amortized  over  a  closed
        15-year  period (14 payments under One-Year Lag Methodology) using level
        dollar payments.
          ECONOMIC VALUES OF BENEFITS: The actuarial assumptions used to  deter-
        mine  the financial impact of the proposed legislation discussed in this
        Fiscal Note are those appropriate for budgetary models  and  determining
        annual employer contributions to the NYCRS.
          However,  the  economic  assumptions  that  are  used  for determining
        employer contributions do not develop risk-adjusted economic  values  of
        benefits.   Such risk-adjusted, economic values of benefits would likely
        differ significantly from those developed by the budgetary models.
          STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
        ary  for  the New York City Retirement Systems. I am an Associate of the
        Society of Actuaries and a Member of the American Academy of  Actuaries.
        I  meet the Qualification Standards of the American Academy of Actuaries
        to render the actuarial opinion contained herein.
          FISCAL NOTE IDENTIFICATION: This estimate is  intended  for  use  only
        during  the  2015  Legislative Session. It is Fiscal Note 2015-31, dated
        June 10, 2015, prepared by the Chief  Actuary  for  the  New  York  City

        S. 5937                             8
 
        Employees'  Retirement  System,  the  New York City Teachers' Retirement
        System, the New York City Board of Education Retirement System, the  New
        York  City  Police Pension Fund and the New York Fire Department Pension
        Fund.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill would amend Section 1000 of the Retirement and Social Secu-
        rity Law to allow active members of public  retirement  systems  of  New
        York  State  to  claim  service credit for up to three years of military
        service, regardless of when or where it was performed. Currently, active
        members can receive service credit for military service  performed,  but
        only  during  specified periods of war. A member must have at least five
        years of credited service to be eligible and make application  for  such
        credit before the effective date of retirement. To obtain such credit, a
        member  must make payments as required in Section 1000 of the Retirement
        and Social Security Law. Tier 1, 2, 3, 4 and 5 members are  required  to
        pay  three percent of salary earned during the twelve months of credited
        service immediately preceding the year in which a claim is made for each
        year of military service. Tier 6 members are required to pay six percent
        of salary earned during the twelve months of credited service immediate-
        ly preceding the year in which a claim is made for each year of military
        service.
          It is not possible to determine the total annual  cost  of  this  bill
        since  the  total  amount of service credit which would be claimed under
        this bill cannot be estimated. Pursuant to Section 25 of the  Retirement
        and  Social  Security  Law,  the  cost  to  the New York State Teachers'
        Retirement System (NYSTRS) would be borne by the State of New  York  and
        would require an itemized appropriation adequate to pay the cost of this
        bill.  The  cost to the State of New York is estimated to be $21,700 per
        year of service credited for Tier 1 and 2 members, $21,000 per  year  of
        service  credited  for Tier 3 and 4 members, $20,900 per year of service
        credited for Tier 5 members and $15,800 per year of service credited for
        Tier 6 members if this bill is enacted. These costs would be  offset  by
        member payments required under Section 1000 of the Retirement and Social
        Security  Law. Each year a cost will be computed and billed to the State
        of New York for those members of NYSTRS receiving a benefit  under  this
        bill.
          Employee  data  is  from  the System's most recent actuarial valuation
        files, consisting of data provided by the employers  to  the  Retirement
        System.  Data  distributions and statistics can be found in the System's
        Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
        reported  in the System's financial statements, and can also be found in
        the CAFR. Actuarial assumptions and methods are provided in the System's
        Actuarial Valuation Report.
          The source of this estimate is Fiscal Note 2015-34 dated June 11, 2015
        prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
        System and is intended for use only during the 2015 Legislative Session.
        I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
        Retirement System. I am a member of the American  Academy  of  Actuaries
        and  I meet the Qualification Standards of the American Academy of Actu-
        aries to render the actuarial opinion contained herein.
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