STATE OF NEW YORK
________________________________________________________________________
9851
IN ASSEMBLY
April 15, 2016
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
mandatory retirement age
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (f) of paragraph 1 and the opening paragraph
2 of subparagraph (g) of paragraph 2 of subdivision e and subdivisions h
3 and k of section 384 of the retirement and social security law, as
4 amended by chapter 1043 of the laws of 1968, are amended to read as
5 follows:
6 (f) Upon completion of twenty-five years service, an additional
7 pension, if required, of such amount as shall be necessary to increase
8 the total amount of the benefits provided herein to one-half of his
9 final average salary. The pension provided by this [sub-paragraph]
10 subparagraph shall be payable only if a member retires from service on
11 or before the last day of the calendar month next succeeding the calen-
12 dar month in which he attains age [sixty-two] sixty-five. Provided,
13 however, that in the case of any member who attained the age of [sixty-
14 two] sixty-five on or before July first, nineteen hundred sixty-six, to
15 be eligible for additional pension credit under this [sub-paragraph]
16 subparagraph, his service shall be terminated and he shall retire on or
17 before December thirty-first, nineteen hundred sixty-seven. For the
18 purpose only of determining the amount of the pension provided in this
19 paragraph, the annuity shall be computed as it would be if it were not
20 reduced by the actuarial equivalent of any outstanding loan, and if it
21 were not increased by the actuarial equivalent of any additional
22 contributions, and if it were not reduced by reason of the member's
23 election to decrease his annuity contributions to the retirement system
24 in order to apply the amount of such reduction in payment of his
25 contributions for old-age and survivors insurance coverage.
26 Upon completion of twenty-five years service, an additional pension,
27 if required, of such amount as shall be necessary to increase the total
28 amount of the benefits provided herein to one-half of his final average
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14784-02-6
A. 9851 2
1 salary. The pension provided by this [sub-paragraph] subparagraph shall
2 be payable only if a member retires from service on or before the last
3 day of the calendar month next succeeding the calendar month in which he
4 attains age [sixty-two] sixty-five. Provided, however, that in the case
5 of any member who attained the age of [sixty-two] sixty-five before or
6 within one month after his employer first elected to assume all or part
7 of the additional cost of service as provided by paragraph two of subdi-
8 vision d of this section, to be eligible for additional pension credit
9 under this [sub-paragraph] subparagraph, his service shall be terminated
10 and he shall retire within three months after his employer so elects or
11 on or before December thirty-first, nineteen hundred sixty-eight, which-
12 ever shall last occur.
13 h. Any officer or member of such organized fire department or organ-
14 ized police force or department, may, within one year after he becomes
15 such officer or member or within one year after his employer assumes the
16 additional cost therefor, whichever shall last occur, elect to receive
17 the additional benefits provided for by subdivision f [hereof] of this
18 section. Any officer or member who elects to receive such benefits shall
19 be separated from service on the first day of the calendar month next
20 succeeding his attainment of age [sixty-two] sixty-five and the
21 completion of twenty-five years of service, provided, however, that in
22 the case of any officer or member who attained the age of [sixty-two]
23 sixty-five before his employer assumed the additional cost therefor, or
24 who attains the age of [sixty-two] sixty-five within one month after his
25 employer assumes the additional cost therefor, to be eligible for addi-
26 tional pension credit under subdivision f of this section, his service
27 shall be terminated and he shall be retired within three months after
28 his employer assumes the additional cost therefor or on or before Decem-
29 ber thirty-first, nineteen hundred sixty-eight, whichever shall last
30 occur, and provided further that a member who is a chief or commanding
31 officer of a police department or police force shall retire on the first
32 day of the calendar month next succeeding his attainment of age sixty-
33 five; a member who is a chief or commanding officer of a police depart-
34 ment or police force, who attained age sixty-five before his employer
35 elected to provide this added benefit and has rendered twenty-five years
36 of total creditable service, shall retire on or before December thirty-
37 first, nineteen hundred sixty-eight, or within one year after his
38 employer assumes the additional cost therefor, whichever shall last
39 occur.
40 k. Any officer or member of such organized fire department or organ-
41 ized police force or department, may, within one year after he becomes
42 such officer or member or within one year after his employer assumes the
43 additional cost therefor, whichever shall last occur, elect to receive
44 the additional benefits provided for by subdivision i [hereof] of this
45 section. Any officer or member who elects to receive such benefits shall
46 be separated from service on the first day of the calendar month next
47 succeeding his attainment of age [sixty-two] sixty-five and the
48 completion of twenty-five years of service, provided, however, that in
49 the case of any officer or member who attained the age of [sixty-two]
50 sixty-five before his employer assumed the additional cost therefor, or
51 who attains the age of [sixty-two] sixty-five within one month after his
52 employer assumes the additional cost therefor, to be eligible for addi-
53 tional pension credit under subdivision i of this section, his service
54 shall be terminated and he shall be retired within three months after
55 his employer assumes the additional cost therefor, or on or before
56 December thirty-first, nineteen hundred sixty-eight, whichever shall
A. 9851 3
1 last occur, and provided further that a member who is a chief or
2 commanding officer of a police department or police force shall retire
3 on the first day of the calendar month next succeeding his attainment of
4 age sixty-five; a member who is a chief or commanding officer of a
5 police department or police force, who attained age sixty-five before
6 his employer elected to provide this added benefit and has rendered
7 twenty-five years of total creditable service, shall retire on or before
8 December thirty-first, nineteen hundred sixty-eight, or within one year
9 after his employer assumes the additional cost therefor, whichever shall
10 last occur.
11 § 2. This act shall take effect immediately.
FISCAL NOTE. --Pursuant to Legislative Law, Section 50:
This bill will increase the mandatory retirement age from 62 to 65 for
members of the New York State and Local Police and Fire Retirement
System (PFRS) who are covered under the provisions of Section 384 of the
Retirement and Social Security Law.
If this bill is enacted, there would be additional benefits for
certain members who remain employed beyond age 62. However, if some
members delay retirement due to the enactment of this bill, we would not
anticipate that there would be an increase in the annual contributions
of 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, 2015 actuarial valu-
ation. Distributions and other statistics can be found in the 2015
Report of the Actuary and the 2015 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015
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, 2015
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 March 31, 2016, and intended for use only during
the 2016 Legislative Session, is Fiscal Note No. 2016-84, prepared by
the Actuary for the New York State and Local Retirement System.
