STATE OF NEW YORK
________________________________________________________________________
7014--A
2019-2020 Regular Sessions
IN ASSEMBLY
April 3, 2019
___________
Introduced by M. of A. JACOBSON -- read once and referred to the Commit-
tee on Governmental Employees -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to authorize the city of Newburgh, in the county of Orange, to
offer an optional twenty year retirement plan to police officer Samuel
Kenan Jr.
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Samuel Kenan Jr., a police officer who was previously
2 employed from May 28, 1996 through October 6, 2001 by the city of
3 Newburgh, in the county of Orange, a participating employer in the New
4 York state and local police and fire retirement system, and who is
5 currently employed by the city of Peekskill, for reasons not ascribable
6 to his own negligence failed to make a timely application to participate
7 in the optional twenty year retirement plan established pursuant to
8 section 384-d of the retirement and social security law while employed
9 by the city of Newburgh. Notwithstanding any other provision of law to
10 the contrary, upon the city of Newburgh filing with the state comp-
11 troller, within one year of the effective date of this act, a resolution
12 of the city council together with certification that such police officer
13 did not bar himself from participation in such retirement plan as a
14 result of his own negligence, such police officer may elect to be grant-
15 ed full credit in the special twenty year plan for such service rendered
16 with the city of Newburgh by filing a request to that effect with the
17 state comptroller within eighteen months of the effective date of this
18 act.
19 § 2. All employer past service costs associated with implementing the
20 provisions of this act shall be borne by the city of Newburgh and may be
21 amortized over a ten year period.
22 § 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09548-03-9
A. 7014--A 2
This bill will grant Samuel Kenan Jr., a Tier 2 member of the New York
State and Local Police and Fire Retirement System, additional service
creditable under the provisions of section 384-d of the Retirement and
Social Security Law, for time worked as a police officer with the City
of Newburgh between May 1996 and October 2001. Such service is currently
creditable only in the age 55 retirement plan of section 375-i. Officer
Kenan is currently employed by the City of Peekskill and covered under
384-d.
If this bill is enacted, there will be no change in anticipated future
annual costs as the member continues to be covered by 384-d. There will
be an immediate past service costs of $178,000 to be borne by the City
of Newburgh as a one-time payment. This cost assumes a payment date of
February 1, 2020. If the City of Newburgh elects to amortize this cost
over a 10 year period, the cost for the first year would be $23,700.
Summary of relevant resources:
The membership data used in measuring the impact of the proposed
change was the same as used in the March 31, 2018 actuarial valuation.
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 February 15, 2019, and intended for use only
during the 2019 Legislative Session, is Fiscal Note No. 2019-75,
prepared by the Actuary for the New York State and Local Retirement
System.
