Authorizes the village of Port Chester to offer an optional twenty year retirement plan to Police Officer Michael Sprague who is employed by such village.
STATE OF NEW YORK
________________________________________________________________________
7507
2017-2018 Regular Sessions
IN ASSEMBLY
April 28, 2017
___________
Introduced by M. of A. OTIS -- read once and referred to the Committee
on Governmental Employees
AN ACT to authorize the village of Port Chester to offer an optional
twenty year retirement plan to a certain police officer employed by
such village
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 Michael Sprague, a member of the New York state and local police and
3 fire retirement system, who was appointed as a police officer with the
4 village of Port Chester on January 7, 2013, and who, through no fault of
5 his own, failed to file a timely application to participate in the
6 special twenty year retirement plan contained in section 384-d of the
7 retirement and social security law resulting in the crediting of his
8 service with the village of Port Chester in the general retirement plan
9 contained in section 375-i of such law, shall be given full credit in
10 the special twenty year retirement plan for such service upon the
11 election of the village of Port Chester to assume the additional cost of
12 such service. Thereafter, Michael Sprague may elect to be covered by the
13 provisions of section 384-d of the retirement and social security law,
14 and shall be entitled to the full rights and benefits associated with
15 coverage under such section, by filing a request to the effect with the
16 state comptroller within one year of the effective date of this act.
17 § 2. All employer past service costs associated with implementing the
18 provisions of this act shall be borne by the village of Port Chester and
19 may be amortized over a ten year period.
20 § 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill will allow Michael Sprague, a police officer employed by the
Village of Port Chester, to elect to become covered under the provisions
of Sections 384-d.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10805-03-7
A. 7507 2
If this legislation is enacted during the 2017 legislative session, we
anticipate that there will be an increase of approximately $7,500 in the
annual contributions of the Village of Port Chester for the fiscal year
ending March 31, 2018. In future years, this cost will vary as the bill-
ing rates and salaries of Michael Sprague change.
In addition to the annual contributions discussed above, there will be
a one-time past service cost of $49,900 which will be borne by Village
of Port Chester as a one-time payment, assuming that payment will be
made February 1, 2018. If the Village of Port Chester elects to amortize
this cost over a 10 year period, the past service cost for the first
year would be approximately $6,640.
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, 2016 actuarial valu-
ation. Distributions and other statistics can be found in the 2016
Report of the Actuary and the 2016 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015
and 2016 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, 2016
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 April 7, 2017, and intended for use only during
the 2017 Legislative Session, is Fiscal Note No. 2017-78, prepared by
the Actuary for the New York State and Local Retirement System.
