•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

A10059 Summary:

BILL NOA10059
 
SAME ASSAME AS S08698
 
SPONSORSillitti
 
COSPNSRButtenschon, Englebright, Conrad, Thiele, McMahon
 
MLTSPNSR
 
Amd §1000, R & SS L
 
Increases the amount of years of military service credit a member may purchase from three years to ten years.
Go to top

A10059 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10059
 
SPONSOR: Sillitti
  TITLE OF BILL: An act to amend the retirement and social security law, in relation to increasing the amount of years of military service credit a member may purchase   PURPOSE: To increase the number of years of military service that are eligible for service credit from three to ten.   SUMMARY OF PROVISIONS: Section 1 of the bill amends section 1000 of the retirement and social security law to allow a person who served in the military to purchase service credit in the public retirement system of the state for their period of military service not to exceed ten years. Section 2 of the bill states the effective date.   JUSTIFICATION: New York law allows veterans to purchase service credit in the public retirement system for the period of their military service. Currently, they can purchase service credit for up to three years of military service. In comparison, veterans in New Jersey and Connecticut are eligible for up to ten years of active military service. New York should increase the number of service years veterans can "buy back" to ensure more financial security in their retirement.   LEGISLATIVE HISTORY: 2021: New legislation.   FISCAL IMPLICATIONS: See fiscal notes at the end of the bill.   EFFECTIVE DATE: This act shall take effect immediately.
Go to top

A10059 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10059
 
                   IN ASSEMBLY
 
                                     April 29, 2022
                                       ___________
 
        Introduced by M. of A. SILLITTI -- read once and referred to the Commit-
          tee on Governmental Employees
 
        AN  ACT  to amend the retirement and social security law, in relation to
          increasing the amount of years of military service credit a member may
          purchase
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Subdivisions 1 and 4 of section 1000 of the retirement and
     2  social security law, as amended by chapter 41 of the laws of  2016,  are
     3  amended to read as follows:
     4    1.  A member, upon application to such retirement system, may obtain a
     5  total not to exceed [three] ten  years  of  service  credit  for  up  to
     6  [three]  ten  years  of military duty, as defined in section two hundred
     7  forty-three of the military law, if the member was honorably  discharged
     8  from the military.
     9    4. In no event shall the credit granted pursuant to this section, when
    10  added  to credit granted for military service with any retirement system
    11  of this state pursuant to this or any other provision of law,  exceed  a
    12  total of [three] ten years.
    13    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would amend the current military law to allow for a member
        to obtain up to a total of ten years of service credit  for  up  to  ten
        years  of  military  duty  if  the  member was honorably discharged. The
        current maximum is three years of service credit. Members must  have  at
        least  five  years of credited service (not including military service).
        Tier 1-5 members would be required to make a payment of three percent of
        their most recent compensation per year  of  additional  service  credit
        granted by this bill. Tier 6 members would be required to make a payment
        of  six percent of their most recent compensation per year of additional
        service credit.
          If this bill is enacted, insofar as this proposal affects the New York
        State and Local Employees’ Retirement System (NYSLERS), it is  estimated
        that  the  past service cost will be 20% (17% for Tier 6) of an affected
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13322-02-2

        A. 10059                            2
 
        member's compensation for each year of service credit that is purchased.
        For the NYSLERS, this cost would be borne entirely by the State  of  New
        York.
          Insofar  as  this proposal affects the New York State and Local Police
        and Fire Retirement System (NYSLPFRS), it is  estimated  that  the  past
        service  cost  will  be  29%  (26%  for  Tier 6) of an affected member's
        compensation for each year of service credit that is purchased.  For the
        NYSLPFRS, this cost would be shared by the State of  New  York  and  the
        participating employers of the NYSLPFRS.
          The  exact  number  of  current  members as well as future members who
        could be affected by this legislation cannot be readily determined.
          Summary of relevant resources:
          Membership data as of March 31, 2021 was used in measuring the  impact
        of the proposed change, the same data used in the April 1, 2021 actuari-
        al  valuation.    Distributions and other statistics can be found in the
        2021 Report of the Actuary and the 2021 Comprehensive  Annual  Financial
        Report.
          The  actuarial  assumptions and methods used are described in the 2020
        and 2021 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, 2021
        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  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  January  27,  2022,  and intended for use only
        during the 2022 Legislative Session, is Fiscal Note No. 2022-2, prepared
        by the Actuary for the New York State and Local Retirement System.
Go to top