STATE OF NEW YORK
________________________________________________________________________
5361
2019-2020 Regular Sessions
IN ASSEMBLY
February 11, 2019
___________
Introduced by M. of A. FITZPATRICK -- Multi-Sponsored by -- M. of A.
MANKTELOW -- read once and referred to the Committee on Governmental
Employees
AN ACT to amend the retirement and social security law, in relation to
calculating pension benefits for public employees
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 75 of the retirement and social security law is
2 amended by adding a new subdivision e to read as follows:
3 e. For purposes of this title, all final average salaries shall be
4 calculated exclusive of any form of overtime compensation, unused vaca-
5 tion time, unused sick leave or unused personal time.
6 § 2. Section 375 of the retirement and social security law is amended
7 by adding a new subdivision e to read as follows:
8 e. For purposes of this title, all final average salaries shall be
9 calculated exclusive of any form of overtime compensation, unused vaca-
10 tion time, unused sick leave or unused personal time.
11 § 3. This act shall take effect on the ninetieth day after it shall
12 have become a law.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill
would reduce the retirement benefits for members who retire from the New
York State and Local Employees' Retirement System (ERS) and the New York
State and Local Police and Fire Retirement System (PFRS) by requiring
the exclusion of any form of overtime compensation, unused vacation
time, unused sick leave or unused personal time in the calculation of
final average salary (FAS).
This legislation would reduce the benefits of many members in the ERS
and the PFRS who retire on or after the effective date. If this becomes
law, it is likely to face a constitutional challenge based upon the
guarantee that a member's benefits may not be diminished.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05978-02-9
A. 5361 2
There would be an administrative cost to the System to change the FAS
calculation.
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, 2018 actuarial valu-
ation. Distributions and other statistics can be found in the 2018
Report of the Actuary and the 2018 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015,
2016, 2017 and 2018 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, 2018
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 10, 2019, and intended for use only
during the 2019 Legislative Session, is Fiscal Note No. 2019-20,
prepared by the Actuary for the New York State and Local Retirement
System.