STATE OF NEW YORK
________________________________________________________________________
6785
2017-2018 Regular Sessions
IN ASSEMBLY
March 17, 2017
___________
Introduced by M. of A. KOLB, MONTESANO, OAKS, STEC, GIGLIO -- read once
and referred to the Committee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
campus public safety officers
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 k to read as follows:
3 k. Service as a campus public safety officer employed by the state
4 university of New York.
5 § 2. Section 383-d of the retirement and social security law, as added
6 by chapter 561 of the laws of 2015, is amended to read as follows:
7 § 383-d. Alternative retirement benefits for university police offi-
8 cers appointed by the state university or campus public safety officers
9 employed by the state university. a. As used in this section, the term
10 "university police officer" shall mean a person who is so appointed
11 pursuant to paragraph l of subdivision two of section three hundred
12 fifty-five of the education law.
13 b. Notwithstanding any other provision of law providing for transfers
14 between retirement systems, any university police officer or campus
15 public safety officer in the service of the state university who is a
16 member of the New York state employees' retirement system may transfer
17 to the New York state and local police and fire retirement system and
18 shall receive credit pursuant to and be entitled to the retirement bene-
19 fits afforded in accordance with this section. Upon any such transfer
20 the member shall be entitled to the amount of service which would have
21 been deemed creditable had such member been subject to such system
22 during the course of his or her membership within such system. Contrib-
23 utions to such system shall be made in accordance with appropriate
24 provisions of law relating thereto. Application for [such] transfer by
25 a university police officer must be made to the state comptroller on or
26 before December thirty-first, two thousand fifteen, and applications by
27 campus public safety officers must be made to the state comptroller on
28 or before December thirty-first, two thousand nineteen. The provisions
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10078-02-7
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1 of section three hundred forty-three of this article shall apply to any
2 member making application for transfer under this subdivision.
3 c. Any university police officer or campus public safety officer in
4 the service of the state university who elects or is required to
5 contribute under this section shall contribute to the New York state and
6 local police and fire retirement system on the basis of retirement upon
7 his or her:
8 1. Completion of twenty-five years of total creditable service; or
9 2. Attainment of age sixty as a university police officer or campus
10 public safety officer in the service of the state university, if prior
11 thereto, on an allowance of one-fiftieth of his or her final average
12 salary for each year of total creditable service not in excess of twen-
13 ty-five years. Such election shall be in writing and shall be duly
14 executed and filed with the comptroller.
15 d. Every employee entering or re-entering service as a university
16 police officer or campus public safety officer in the service of the
17 state university on or after the effective date of this section shall
18 contribute on the basis provided for by this section.
19 e. A member who is required to contribute in accordance with this
20 section shall contribute, in lieu of the proportion of compensation as
21 provided in section three hundred twenty-one of this article, a propor-
22 tion of his or her compensation similarly determined. Such latter
23 proportion shall be computed to provide at the time when he or she shall
24 first become eligible for retirement under this section, an annuity
25 equal to one-one hundredth of his or her final average salary for each
26 year of service as a member prior to the attainment of the age when he
27 or she shall first become eligible for retirement. Such member's rate of
28 contribution pursuant to this section shall be appropriately reduced
29 pursuant to section three hundred seventy-a of this article for such
30 period of time as his or her employer contributes pursuant to such
31 section toward pensions-providing-for-increased-take-home-pay. No such
32 member shall be required to continue contributions after completing
33 twenty-five years of such service.
34 f. A member contributing on the basis of this section, at the time of
35 retirement, shall be entitled to retire after the completion of twenty-
36 five years of total creditable service or upon the attainment of age
37 sixty by filing an application therefor in a manner similar to that
38 provided in section three hundred seventy of this article. He or she
39 shall receive, on retirement, a retirement allowance consisting of:
40 1. An annuity which shall be the actuarial equivalent of his or her
41 accumulated contributions at the time of his or her retirement, plus
42 2. A pension which, together with such annuity and a pension which is
43 the actuarial equivalent of the reserve-for-increased-take-home-pay to
44 which he or she may then be entitled, if any, shall equal one-fiftieth
45 of his or her final average salary for each year of creditable service
46 in such service. This pension shall not exceed the amount needed to make
47 the total amount of the benefits provided under this paragraph and para-
48 graph one of this subdivision equal to one-half of final average salary.
49 3. An additional pension equal to the pension for any creditable
50 service rendered while not employed as a university police officer or
51 campus public safety officer in the service of the state university as
52 provided under paragraphs two and three of subdivision a of section
53 three hundred seventy-five of this article. This pension shall:
54 (i) Be payable only if such member has attained age sixty at the time
55 of retirement and has not completed twenty-five years of service as a
56 university police officer or campus public safety officer in the service
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1 of the state university for which he or she receives credit under this
2 article, and
3 (ii) Not increase the total allowance to more than he or she would
4 have received had his or her total service been rendered as a university
5 police officer or campus public safety officer in the service of the
6 state university. For the purpose only of determining the amount of the
7 pension provided herein, the annuity shall be computed as it would be:
8 (A) if not reduced by the actuarial equivalent of any outstanding
9 loan, and
10 (B) if not increased by the actuarial equivalent of any additional
11 contributions, and
12 (C) if not reduced by reason of the member's election to decrease his
13 or her annuity contributions to the retirement system in order to apply
14 the amount of such reduction in payment of his or her contributions for
15 old-age and survivors insurance coverage.
16 g. The increased pensions to a university police officer or campus
17 public safety officer in the service of the state university, as
18 provided by this section, shall be paid from additional contributions
19 made by the state on account of such members. The actuary of the
20 retirement system shall compute the additional contribution of each
21 member who elects to receive the special benefits provided under this
22 section. Such additional contributions shall be computed on the basis of
23 contributions during the prospective service of such member which will
24 cover the liability of the retirement system for such extra pensions.
25 Upon approval by the comptroller, such additional contributions shall be
26 certified by him or her to the chancellor of the state university. The
27 amount thereof shall be included in the annual appropriation of the
28 state for the state university. Such amount shall be paid on the warrant
29 of the comptroller to the pension accumulation fund of the retirement
30 system.
31 h. In computing the twenty-five years of completed service of a
32 university police officer or campus public safety officer in the service
33 of the state university, full credit shall be given and full allowance
34 shall be made for service of such member in war after World War I as
35 defined in section two of this chapter, provided such member at the time
36 of his [of] or her entrance into the armed forces was in state service,
37 and full credit and full allowance shall be made for service as a
38 university peace officer prior to the effective date of chapter four
39 hundred twenty-four of the laws of nineteen hundred ninety-eight.
40 i. The provisions of this section shall be controlling notwithstanding
41 any provision in this article to the contrary.
42 j. Notwithstanding any provision of subdivision d, e or i of this
43 section to the contrary, a member who is in the collective negotiating
44 unit designated as the agency police services unit and established
45 pursuant to article fourteen of the civil service law and who has
46 elected or is required to contribute in accordance with this section
47 may, on or before March thirty-first, two thousand sixteen, elect to
48 come under the provisions of section three hundred seventy-five-h of
49 this article. Such election shall be duly executed and filed with the
50 comptroller.
51 k. Commencing with the effective date of this section and in a manner
52 determined by the head of the retirement system, the state, as employer,
53 shall make contributions to the retirement system to fund the past
54 service liability costs associated with the implementation of this
55 section as those costs are calculated by the retirement system actuary.
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1 Such contributions may, at the election of the employer, be amortized
2 over a ten year period.
3 § 3. No employee contributions made to the New York state and local
4 employees' retirement system by any campus public safety officer who
5 elects to transfer pursuant to this act shall be returned to such offi-
6 cer. Such employee contributions shall be used to offset any past
7 service costs incurred by operation of the provisions of this act.
8 § 4. Notwithstanding subdivision h of section 343 of the retirement
9 and social security law, the provisions of subdivisions c and d of
10 section 343 of the retirement and social security law shall apply and
11 the employer contributions reserve shall be transferred from the appro-
12 priate fund or funds of the New York state and local employees' retire-
13 ment system to the New York state and local police and fire retirement
14 system.
15 § 5. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would allow State University Campus Public Safety 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't 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 $210,000 in the annual contributions of the State of
New York for the fiscal year ending March 31, 2018.
In addition to the annual contributions discussed above, it is esti-
mated that there will be an immediate past service cost of $855,000
which would be borne by the State of New York, assuming that payment
will be made on March 1, 2018. If this cost is amortized over 10 years,
the cost for the first year, including interest, would be $114,000.
These estimated costs are based on 86 State University Campus Public
Safety Officers with a total estimated billing salary of approximately
$4.3 million for the fiscal year ending March 31, 2016.
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, 2016 actuarial valu-
ation. Distributions and other statistics can be found in the 2016
Report of the Actuary and the 2016 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015
and 2016 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, 2016
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 February 28, 2017, and intended for use only
during the 2017 Legislative Session, is Fiscal Note No. 2017-69,
prepared by the Actuary for the New York State and Local Retirement
System.
