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A08187 Summary:

BILL NOA08187
 
SAME ASSAME AS S07716
 
SPONSORLasher
 
COSPNSRBarrett, Lee, Magnarelli, Lunsford, Schiavoni, Seawright, Shimsky, Tapia, Zinerman
 
MLTSPNSR
 
Add Art 20-A §1010, R & SS L
 
Enacts the "building recruitment and incentives for dedicated government employees (BRIDGE) act" which provides a service credit for members who were previously employed by the federal government.
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A08187 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8187
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                       May 5, 2025
                                       ___________
 
        Introduced  by  M.  of  A.  LASHER,  BARRETT, LEE, MAGNARELLI, LUNSFORD,
          SCHIAVONI, SEAWRIGHT,  SHIMSKY,  TAPIA,  ZINERMAN  --  read  once  and
          referred to the Committee on Governmental Employees
 
        AN  ACT  to amend the retirement and social security law, in relation to
          enacting  the  "building  recruitment  and  incentives  for  dedicated
          government employees (BRIDGE) act"
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the  "building  recruitment  and  incentives  for  dedicated  government
     3  employees (BRIDGE) act".
     4    § 2. Legislative findings. The legislature  finds  that  in  light  of
     5  recent  federal workforce reductions, particularly those orchestrated by
     6  the Department of Government Efficiency (DOGE), New York  state  has  an
     7  unprecedented  opportunity  to attract highly skilled professionals with
     8  substantial public service experience. The abrupt termination  of  thou-
     9  sands  of  federal  employees, including seasoned scientists, engineers,
    10  and public administrators, has not only disrupted federal operations but
    11  also released a wealth of talent into the job market.
    12    To capitalize on this opportunity and strengthen our state  workforce,
    13  this  legislation  proposes  allowing  current and future New York state
    14  employees who have prior federal  service  to  purchase  service  credit
    15  toward  their  New York state pension for the time they spent in federal
    16  employment. By offering a pathway to integrate their prior service  into
    17  the  state pension system, the legislature aims to create a more attrac-
    18  tive employment environment  that  honors  the  contributions  of  these
    19  public servants and secures their future within our state workforce.
    20    § 3. The retirement and social security law is amended by adding a new
    21  article 20-A to read as follows:
    22                                 ARTICLE 20-A
    23                           FEDERAL SERVICE CREDIT

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10790-08-5

        A. 8187                             2
 
     1  Section 1010. Federal service credit.
     2    § 1010. Federal service credit. Notwithstanding any law to the contra-
     3  ry,  a  member  of  the  New  York state and local employees' retirement
     4  system, may be eligible for credit for prior employment by  the  federal
     5  government as hereinafter provided:
     6    a.  A member, upon application to such retirement system, may obtain a
     7  total not to exceed five years of service credit for up to five years of
     8  employment by the federal government, if the member was  enrolled  in  a
     9  federal  defined  benefit  pension plan. To obtain such credit, a member
    10  shall pay such retirement system, for deposit in the fund used to  accu-
    11  mulate  employer contributions, a sum equal to the product of the number
    12  of years of federal service being claimed  and  three  percent  of  such
    13  member's  compensation  earned  during  the  twelve  months  of credited
    14  service immediately preceding the date that the member made  application
    15  for  credit pursuant to this section. If permitted by rule or regulation
    16  of the applicable retirement system, the  member  may  pay  such  member
    17  costs  by payroll deduction for a period which shall not exceed the time
    18  period of federal service to be credited pursuant to  this  section.  In
    19  the  event the member leaves the employer payroll prior to completion of
    20  payment, such member shall forward all remaining  required  payments  to
    21  the appropriate retirement system prior to the effective date of retire-
    22  ment.  If the full amount of such member costs is not paid to the appro-
    23  priate retirement system prior to the member's retirement, the amount of
    24  service  credited  shall  be  proportional  to  the  total amount of the
    25  payments made prior to retirement.
    26    b. A member must have at least five years  of  credited  service  (not
    27  including  service  granted  hereunder) to be eligible to receive credit
    28  under this section.
    29    c. In no event shall the credit granted pursuant to this section, when
    30  added to credit granted for federal service with any  retirement  system
    31  of  this  state pursuant to this or any other provision of law, exceed a
    32  total of five years, provided however  that  this  shall  be  considered
    33  separately  from,  and  not  count  against, credit granted for military
    34  service in accordance with section one thousand of this chapter.
    35    d. To be eligible to receive credit for  federal  service  under  this
    36  section,  a  member  shall  make  application for such credit before the
    37  effective date of retirement.
    38    e. All costs for  service  credited  to  a  member  pursuant  to  this
    39  section,  other than the member costs set forth in subdivision a of this
    40  section, shall be paid by the state and all employers which  participate
    41  in the retirement system in which such member is granted credit.
    42    f.  1.  Notwithstanding  any  other  provision of law, in the event of
    43  death prior to retirement, amounts paid by the member for  the  purchase
    44  of  federal  service  credit pursuant to this section shall be refunded,
    45  with interest, to the extent the federal  service  purchased  with  such
    46  amounts  does  not  produce a greater death benefit than would have been
    47  payable had the member not purchased such credit.
    48    2. Notwithstanding any other provision of law, in the event of retire-
    49  ment, amounts paid by the member for the  purchase  of  federal  service
    50  credit pursuant to this section shall be refunded, with interest, to the
    51  extent  the federal service purchased with such amounts does not produce
    52  a greater retirement allowance than would  have  been  payable  had  the
    53  member not purchased such credit.
    54    g.  Anything to the contrary in subdivision a of this section notwith-
    55  standing, to obtain such credit, a  member  who  first  joins  a  public
    56  retirement  system  of  the  state on or after April first, two thousand

        A. 8187                             3
 
     1  twelve shall pay such retirement system, for deposit in the fund used to
     2  accumulate employer contributions, a sum equal to  the  product  of  the
     3  number of years of federal service being claimed and six percent of such
     4  member's  compensation  earned  during  the  twelve  months  of credited
     5  service immediately preceding the date that the member made  application
     6  for credit pursuant to this section.
     7    §  4. Notwithstanding any other provision of law to the contrary, none
     8  of the provisions of this act shall be subject  to  section  25  of  the
     9  retirement and social security law.
    10    § 5. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill would allow members of the New York State and Local Retire-
        ment System (NYSLRS) Employees' Retirement System (ERS) to obtain up  to
        five  years  of service credit for employment by the federal government,
        if the member was enrolled in a federal defined  benefit  plan.  Federal
        service  is  interpreted  to  be  distinct  from  military  service. The
        purchased service is creditable in age-based plans, like Article 15, but
        not service-based plans where specific criteria limits  crediting,  like
        Article 14-B.
          This  bill  is  not  consistent  with  NYSLRS policy defining credited
        service as paid employment with a participating employer in NYSLRS.
          This bill is not consistent with  NYSLRS  policy  prohibiting  service
        credit for any employment that entitles the member to a benefit from the
        federal  government, or any other public or private retirement system in
        New York State or any other state.
          To be eligible, members must apply before retirement  but  not  before
        attaining  5  years  of service credit. Members would be required to pay
        three percent of their most recent compensation (six percent for Tier  6
        members)  for  each  year  of  additional service credit granted by this
        bill.  Member contributions are refunded to the member,  with  interest,
        if the purchased service does not result in an improved death or retire-
        ment benefit.
          The provisions of Section 25 of the Retirement and Social Security Law
        shall not apply.
          If  this  bill  is  enacted during the 2025 Legislative Session, it is
        estimated that the past service cost will average  21%  of  an  affected
        member's  compensation for each year of additional service that is cred-
        ited. This cost will be reduced by member contributions.  All  remaining
        costs  will be shared by the State of New York and the local participat-
        ing employers in ERS.
          Further, we anticipate significant administrative costs  to  implement
        the provisions of this legislation.
          The  exact  number  of  current  members as well as future members who
        could be affected by this  legislation  cannot  be  readily  determined.
        Because  a member can apply for this service credit at any time prior to
        retirement, a precise cost cannot be determined until  each  current  or
        future member applies for the service credit.
          Summary of relevant resources:
          Membership  data as of March 31, 2024 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2024 actuari-
        al valuation. Distributions and other statistics can  be  found  in  the
        2024  Report  of the Actuary and the 2024 Annual Comprehensive Financial
        Report.  The actuarial assumptions and methods used are described in the
        2024 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

        A. 8187                             4
 
        31, 2024 New York State and Local Retirement System Financial Statements
        and Supplementary Information.
          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 30, 2025, and intended for use only during
        the 2025 Legislative Session, is Fiscal  Note  No.  2025-135.  As  Chief
        Actuary  of  the  New  York  State and Local Retirement System, I, Aaron
        Schottin Young, hereby certify that this analysis complies with applica-
        ble Actuarial Standards of Practice as well as the Code of  Professional
        Conduct  and Qualification Standards for Actuaries Issuing Statements of
        Actuarial Opinion of the American Academy of Actuaries, of which I am  a
        member.
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