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A09162 Summary:

A09162 Actions:

A09162 Floor Votes:

A09162 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9162
 
                   IN ASSEMBLY
 
                                     March 24, 2014
                                       ___________
 
        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on Governmental Employees
 
        AN  ACT  to amend the retirement and social security law, in relation to
          an optional twenty-year retirement plan for members of  the  New  York
          state and local police and fire retirement system and to amend chapter
          504  of  the laws of 2009, amending the retirement and social security

          law relating to establishing police and fire retirement provisions, in
          relation to special retirement plans for members of the New York state
          police and fire retirement system
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. The retirement and social security law is amended by adding
     2  a new section 384-f to read as follows:
     3    §  384-f.  Optional twenty-year retirement plan for members of the New
     4  York state police and fire retirement  system.  a.  Notwithstanding  the
     5  provisions of any general, special or local law or code to the contrary,
     6  any member of the New York state police and fire retirement system whose
     7  membership  in  such retirement system commenced between July first, two

     8  thousand nine and March thirty-first two  thousand  twelve  and  is  not
     9  subject to the terms of an agreement as defined by subdivision twelve of
    10  section  two hundred one of the civil service law, may elect to contrib-
    11  ute to such retirement system pursuant to section three hundred  eighty-
    12  four-d  of  this title, if his or her employer has previously elected to
    13  make the benefits of section three hundred eighty-four-d of  this  title
    14  available to its members.
    15    b.  Any member who elects to contribute pursuant to this section shall
    16  not be required to make contributions pursuant to  article  fourteen  of
    17  this chapter or section twelve hundred four of this chapter.
    18    c.  Notwithstanding  the  provisions of subdivision a of section three

    19  hundred eighty-four-d of this title any member who  seeks  to  elect  to
    20  contribute  pursuant  to  this section may do so within six months after
    21  the member becomes a member of such retirement  system,  or  within  six
    22  months  after his or her employer elects to make the benefits of section
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14397-02-4
        A. 9162                             2
 
     1  three hundred eighty-four-d of this title available to its  members;  or
     2  within six months of the effective date of this section.
     3    §  2.  Part A of chapter 504 of the laws of 2009, amending the retire-

     4  ment and social security law relating to establishing  police  and  fire
     5  retirement provisions, is amended by adding a new section 8-a to read as
     6  follows:
     7    §  8-a. Notwithstanding any other provision of law to the contrary any
     8  member of the New York state  police  and  fire  retirement  system  who
     9  became a member on or after July 1, 2009 and before January 10, 2010 may
    10  join  a special retirement plan open to him or her pursuant to a collec-
    11  tively negotiated agreement with any state or local government employer,
    12  where such agreement was unexpired or expired but continued pursuant  to
    13  section  two  hundred  nine of the civil service law on or after July 1,
    14  2009 and before January 10, 2010.
    15    § 3. Notwithstanding any other  provision  of  law  to  the  contrary,

    16  section  25 of the retirement and social security law shall not apply to
    17  sections one and two of this act.
    18    § 4. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would grant that an individual who became a Tier 3 or a Tier
        5 member of the New York State and  Local  Police  and  Fire  Retirement
        System  (PFRS)  and whose employer has elected to provide the provisions
        of Section 384-d, and who is not  subject  to  a  collective  bargaining
        agreement  (CBA), would no longer be required to make mandatory employee
        contributions.
          This bill would also allow a small number of  individuals  who  became
        members  of the PFRS on or after July 1, 2009 and before January 9, 2010
        and who did not timely file an application to become covered  under  the
        provisions  of  Section 384-d within the one year required filing period

        to file for such coverage.
          Further, this bill would amend Chapter 504 of  the  Laws  of  2009  to
        allow an individual who became a member of PFRS on or after July 1, 2009
        and  before  January  10, 2010 to join a special retirement plan open to
        him or her pursuant to a collective bargaining agreement in effect on or
        after July 1, 2009 and before January 10, 2010.  This bill would  affect
        members  hired  under a CBA as well as those hired under a CBA which has
        expired but is still operating under  Civil  Service  Law  Section  209.
        Such  members  who elect coverage under Article 22 of the Retirement and
        Social Security Law will not be required to make employee contributions.
          If this bill is enacted, we anticipate  that  the  employers  of  such
        members who are covered under PFRS special retirement contributory plans

        would  see an increase in their annual contributions for the fiscal year
        ending March 31, 2015 of approximately 4.0% of the annual salaries.
          In addition to these costs, there would be future annual  costs  which
        would  be borne by any employer of a member who would become eligible to
        file for Section 384-d coverage. These costs would depend on the current
        plan coverage and salaries of affected members. There would  also  be  a
        past  service  cost for each such member, which would depend on the age,
        service, salary and plan coverage of  the  member.  These  past  service
        costs would be borne by all the employers in the PFRS.
          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, 2013  actuarial  valu-
        ation.    Distributions  and  other  statistics can be found in the 2013

        Report of the  Actuary  and  the  2013  Comprehensive  Annual  Financial
        Report.
        A. 9162                             3
 
          The  actuarial assumptions and methods used are described in the 2010,
        2011, 2012 and 2013  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, 2013
        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 Qualification Standards to render the actuarial
        opinion contained herein.
          This estimate, dated February 11, 2014,  and  intended  for  use  only
        during  the  2014  Legislative  Session,  is  Fiscal  Note  No. 2014-76,

        prepared by the Actuary for the New York State and Local Police and Fire
        Retirement System.