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S03221 Summary:

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S03221 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3221
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                    February 3, 2015
                                       ___________
 
        Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
 
        AN ACT to amend the retirement and social security  law  and  the  civil
          service  law,  in  relation to university police officers appointed by
          the state university of New York
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Subdivision 11 of section 302 of the retirement and social
     2  security law is amended by adding a new paragraph i to read as follows:
     3    i. Service as a university  police  officer  appointed  by  the  state
     4  university  of  New  York  pursuant to paragraph l of subdivision two of
     5  section three hundred fifty-five of the education law.
     6    § 2. Subdivision d of section 375-f of the retirement and social secu-
     7  rity law, as separately amended by chapters 674 and 677 of the  laws  of
     8  1986, is amended to read as follows:
     9    d.  In  addition  to the retirement allowance provided pursuant to the
    10  plans set forth in sections three hundred  eighty-three,  three  hundred
    11  eighty-three-a  [and],  three  hundred  eighty-three-b and three hundred
    12  eighty-three-d of this [chapter] article, a member of [either] any  such
    13  plan  who  retires  on or after April first, nineteen hundred sixty-nine
    14  with more than twenty-five years of total service shall be  entitled  to
    15  receive,  in  addition to the benefits provided pursuant to [either] any
    16  such section and notwithstanding the limitations of  [either]  any  such
    17  section,  an  additional  retirement allowance for such years of service
    18  rendered in excess of twenty-five. The additional  retirement  allowance
    19  for such additional years of service shall be computed as if such member
    20  had  been eligible to have his retirement allowance computed pursuant to
    21  the provisions of subdivision b of section three hundred  seventy-five-c
    22  and  of paragraph one of subdivision a of section three hundred seventy-
    23  five-d of this [chapter] title.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08196-01-5
        S. 3221                             2
 
     1    § 3. The retirement and social security law is amended by adding a new
     2  section 383-d to read as follows:
     3    §  383-d.  Alternative retirement benefits for university police offi-
     4  cers appointed by the state university. a. As used in this section,  the
     5  term "university police officer" shall mean a person who is so appointed
     6  pursuant  to  paragraph  l  of  subdivision two of section three hundred
     7  fifty-five of the education law.
     8    b. Notwithstanding any other provision of law providing for  transfers
     9  between retirement systems, any university police officer in the service
    10  of the state university who is a member of the New York state employees'
    11  retirement  system  may  transfer to the New York state and local police
    12  and fire retirement system and shall receive credit pursuant to  and  be
    13  entitled  to  the  retirement  benefits afforded in accordance with this
    14  section. Upon any such transfer the member  shall  be  entitled  to  the
    15  amount  of  service  which  would  have  been deemed creditable had such
    16  member been subject to such system during  the  course  of  his  or  her
    17  membership  within  such  system.  Contributions to such system shall be
    18  made in accordance with appropriate provisions of law relating  thereto.
    19  Application  for  such transfer must be made to the state comptroller on
    20  or before December thirty-first, two thousand fifteen. The provisions of
    21  section three hundred forty-three of this article  shall  apply  to  any
    22  member making application for transfer under this subdivision.
    23    c. Any university police officer in the service of the state universi-
    24  ty  who  elects  or  is  required to contribute under this section shall
    25  contribute to the New York state and local police  and  fire  retirement
    26  system on the basis of retirement upon his or her:
    27    1. Completion of twenty-five years of total creditable service; or
    28    2.  Attainment  of  age  sixty  as  a university police officer in the
    29  service of the state university, if prior thereto, on  an  allowance  of
    30  one-fiftieth  of  his or her final average salary for each year of total
    31  creditable service not in excess of  twenty-five  years.  Such  election
    32  shall  be in writing and shall be duly executed and filed with the comp-
    33  troller.
    34    d. Every employee entering or  re-entering  service  as  a  university
    35  police  officer  in  the service of the state university on or after the
    36  effective date of this section shall contribute on  the  basis  provided
    37  for by this section.
    38    e.  A  member  who  is  required to contribute in accordance with this
    39  section shall contribute, in lieu of the proportion of  compensation  as
    40  provided  in section three hundred twenty-one of this article, a propor-
    41  tion of his  or  her  compensation  similarly  determined.  Such  latter
    42  proportion shall be computed to provide at the time when he or she shall
    43  first  become  eligible    for retirement under this section, an annuity
    44  equal to one-one hundredth of his or her final average salary  for  each
    45  year  of  service as a member prior to the attainment of the age when he
    46  or she shall first become eligible for retirement. Such member's rate of
    47  contribution pursuant to this section  shall  be  appropriately  reduced
    48  pursuant  to  section  three  hundred seventy-a of this article for such
    49  period of time as his or  her  employer  contributes  pursuant  to  such
    50  section  toward  pensions-providing-for-increased-take-home-pay. No such
    51  member shall be required  to  continue  contributions  after  completing
    52  twenty-five years of such service.
    53    f.  A member contributing on the basis of this section, at the time of
    54  retirement, shall be entitled to retire after the completion of  twenty-
    55  five  years  of  total  creditable service or upon the attainment of age
    56  sixty by filing an application therefor in  a  manner  similar  to  that
        S. 3221                             3
 
     1  provided  in  section  three  hundred seventy of this article. He or she
     2  shall receive, on retirement, a retirement allowance consisting of:
     3    1.  An  annuity  which shall be the actuarial equivalent of his or her
     4  accumulated contributions at the time of his or her retirement, plus
     5    2. A pension which, together with such annuity and a pension which  is
     6  the  actuarial  equivalent of the reserve-for-increased-take-home-pay to
     7  which he or she may then be entitled, if any, shall  equal  one-fiftieth
     8  of  his  or her final average salary for each year of creditable service
     9  in such service. This pension shall not exceed the amount needed to make
    10  the total amount of the benefits provided under this paragraph and para-
    11  graph one of this subdivision equal to one-half of final average salary.
    12    3. An additional pension equal  to  the  pension  for  any  creditable
    13  service  rendered  while  not employed as a university police officer in
    14  the service of the state university as provided under paragraphs two and
    15  three of subdivision a of section three  hundred  seventy-five  of  this
    16  article.  This pension shall:
    17    (i)  Be payable only if such member has attained age sixty at the time
    18  of retirement and has not completed twenty-five years of  service  as  a
    19  university  police  officer  in  the service of the state university for
    20  which he or she receives credit under this article, and
    21    (ii) Not increase the total allowance to more than  he  or  she  would
    22  have received had his or her total service been rendered as a university
    23  police  officer  in the service of the state university. For the purpose
    24  only of determining the amount of the pension provided herein, the annu-
    25  ity shall be computed as it would be:
    26    (A) if not reduced by the  actuarial  equivalent  of  any  outstanding
    27  loan, and
    28    (B)  if  not  increased  by the actuarial equivalent of any additional
    29  contributions, and
    30    (C) if not reduced by reason of the member's election to decrease  his
    31  or  her annuity contributions to the retirement system in order to apply
    32  the amount of such reduction in payment of his or her contributions  for
    33  old-age and survivors insurance coverage.
    34    g.  The  increased  pensions  to  a  university  police officer in the
    35  service of the state university, as provided by this section,  shall  be
    36  paid  from additional contributions made by the state on account of such
    37  members.  The actuary of the retirement system shall compute  the  addi-
    38  tional  contribution  of  each  member who elects to receive the special
    39  benefits provided under  this  section.  Such  additional  contributions
    40  shall  be  computed on the basis of contributions during the prospective
    41  service of such member which will cover the liability of the  retirement
    42  system  for  such extra pensions. Upon approval by the comptroller, such
    43  additional contributions shall be certified by him or her to  the  chan-
    44  cellor  of the state university. The amount thereof shall be included in
    45  the annual appropriation of the state for  the  state  university.  Such
    46  amount  shall  be  paid on the warrant of the comptroller to the pension
    47  accumulation fund of the retirement system.
    48    h. In computing the  twenty-five  years  of  completed  service  of  a
    49  university  police  officer in the service of the state university, full
    50  credit shall be given and full allowance shall be made  for  service  of
    51  such  member  in war after World War I as defined in section two of this
    52  chapter, provided such member at the time of his of  her  entrance  into
    53  the  armed  forces was in state service, and full credit and full allow-
    54  ance shall be made for service as a university peace  officer  prior  to
    55  the  effective  date  of chapter four hundred twenty-four of the laws of
    56  nineteen hundred ninety-eight.
        S. 3221                             4
 
     1    i. The provisions of this section shall be controlling notwithstanding
     2  any provision in this article to the contrary.
     3    j.  Notwithstanding  any  provision  of  subdivision d, e or i of this
     4  section to the contrary, a member who is in the  collective  negotiating
     5  unit  designated  as  the  agency  police  services unit and established
     6  pursuant to article fourteen of  the  civil  service  law  and  who  has
     7  elected  or  is  required  to contribute in accordance with this section
     8  may, on or before March thirty-first, two  thousand  sixteen,  elect  to
     9  come  under  the  provisions  of section three hundred seventy-five-h of
    10  this article. Such election shall be duly executed and  filed  with  the
    11  comptroller.
    12    k.  Commencing with the effective date of this section and in a manner
    13  determined by the head of the retirement system, the state, as employer,
    14  shall make contributions to the  retirement  system  to  fund  the  past
    15  service  liability  costs  associated  with  the  implementation of this
    16  section as those costs are calculated by the retirement system  actuary.
    17  Such  contributions  may,  at the election of the employer, be amortized
    18  over a ten year period.
    19    § 4. No employee contributions made to the New York  state  and  local
    20  employees'  retirement system by any state university police officer who
    21  elects to transfer pursuant to this act shall be returned to such  offi-
    22  cer.  Such  employee  contributions  shall  be  used  to offset any past
    23  service costs incurred by operation of the provisions of this act.
    24    § 5. Notwithstanding subdivision h of section 343  of  the  retirement
    25  and  social  security  law,  the  provisions  of subdivisions c and d of
    26  section 343 of the retirement and social security law  shall  apply  and
    27  the  employer contributions reserve shall be transferred from the appro-
    28  priate fund or funds of the New York state and local employees'  retire-
    29  ment  system  to the New York state and local police and fire retirement
    30  system.
    31    § 6. Subdivision 3 of section 58 of the civil service law, as  amended
    32  by chapter 244 of the laws of 2013, is amended to read as follows:
    33    3.  As  used in this section, the term "police officer" means a police
    34  officer in the  department  of  environmental  conservation,  the  state
    35  university  police,  a  member  of  the  regional state park police or a
    36  police force, police department, or  other  organization  of  a  county,
    37  city,  town,  village,  housing  authority,  transit authority or police
    38  district, who is responsible for the prevention and detection  of  crime
    39  and the enforcement of the general criminal laws of the state, but shall
    40  not  include  any  person serving as such solely by virtue of his or her
    41  occupying any other office or position, nor shall such  term  include  a
    42  sheriff,  under-sheriff,  commissioner  of  police,  deputy or assistant
    43  commissioner of police, chief of police, deputy or  assistant  chief  of
    44  police  or  any  person  having  an equivalent title who is appointed or
    45  employed to exercise equivalent supervisory authority.
    46    § 7. Paragraphs (a) and (b) of subdivision 4  of  section  58  of  the
    47  civil  service  law,  as amended by chapter 244 of the laws of 2013, are
    48  amended to read as follows:
    49    (a) Any person who has received provisional or  permanent  appointment
    50  in the competitive class of the civil service as a police officer of the
    51  regional state park police, the state university of New York police, the
    52  department  of  environmental conservation or any police force or police
    53  department of any county, city, town, village, housing authority, trans-
    54  it authority or police district shall be eligible  to  resign  from  any
    55  police force or police department, and to be appointed as a police offi-
    56  cer  in  the same or any other police force or police department without
        S. 3221                             5
 
     1  satisfying the age requirements set forth in paragraph (a)  of  subdivi-
     2  sion  one  of  this  section  at  the  time of such second or subsequent
     3  appointment, provided such second or subsequent appointment occurs with-
     4  in thirty days of the date of resignation.
     5    (b)  Any  person who has received permanent appointment in the compet-
     6  itive class of the civil service as a police  officer  of  the  regional
     7  state  park police, the state university of New York police, the depart-
     8  ment of environmental conservation or any police force or police depart-
     9  ment of any county, city,  town,  village,  housing  authority,  transit
    10  authority or police district shall be eligible to resign from any police
    11  force  or  police department and, subject to such civil service rules as
    12  may be applicable, shall be  eligible  for  reinstatement  in  the  same
    13  police force or police department or in any other police force or police
    14  department  to which he or she was eligible for transfer, without satis-
    15  fying the age requirements set forth in paragraph (a) of subdivision one
    16  of this section at the time of such reinstatement, provided  such  rein-
    17  statement occurs within one year of the date of resignation.
    18    § 8. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would  allow  State University Police Officers to elect to
        transfer to the New York State and  Local  Police  and  Fire  Retirement
        System  and  to  be  covered by the provisions of a new twenty-five (25)
        year half pay retirement plan, with additional  one-sixtieths  of  final
        average  salary  for  each year of service in excess of twenty-five (25)
        years, but not exceeding fifteen (15) such years. For Tiers 2, 5, and  6
        members,  the  additional  one-sixtieths  can  not exceed seven (7) such
        years. There will be no refund  of  Article  14  or  Article  15  member
        contributions  for officers who elect to transfer to the Police and Fire
        Retirement system.
          If this bill is enacted, we anticipate that there will be an  increase
        of  approximately  $1.1 million in the annual contributions of the State
        of New York for the fiscal year ending March 31, 2016.
          In addition to the annual contributions discussed above, it  is  esti-
        mated that there will be an immediate past service cost of $9.72 million
        which  would  be  borne  by the State of New York, assuming that payment
        will be made on March 1, 2016. If this cost is amortized over  ten  (10)
        years,  the  cost for the first year, including interest, would be $1.32
        million.
          These estimated costs are based on five hundred  sixteen  (516)  State
        University Police Officers with a total estimated salary of approximate-
        ly $39 million for the fiscal year ending March 31, 2014.
          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.
        S. 3221                             6
 
          This estimate, dated January 16, 2015 and intended for use only during
        the 2015 Legislative Session, is Fiscal Note No. 2015-30 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.