Authorizes participating employers in the New York state and local police and fire retirement system offering 20 year retirement plans to offer such plans on a non-contributory basis.
STATE OF NEW YORK
________________________________________________________________________
9702
IN ASSEMBLY
April 5, 2016
___________
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
authorizing participating employers in the New York state and local
police and fire retirement system offering an optional twenty year
retirement plan for its police officers and firefighters, to offer
such plan on a non-contributory basis
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 article 26 to read as follows:
3 ARTICLE 26
4 BENEFIT ENHANCEMENTS
5 Section 1400. Non-contributory basis.
6 1401. Collective bargaining.
7 1402. Past service costs.
8 § 1400. Non-contributory basis. (a) Notwithstanding the provisions of
9 this chapter or any other law to the contrary a participating employer
10 in the New York state and local police and fire retirement system may
11 elect to provide its employees who are members of the optional twenty
12 year retirement plan for police and firefighters eligibility to partic-
13 ipate on a non-contributory basis.
14 (b) No member who participates in this non-contributory retirement
15 plan shall be entitled to a refund of previous contributions made to the
16 contributory twenty year retirement plan.
17 § 1401. Collective bargaining. A demand in collective bargaining nego-
18 tiations for the additional benefit provided by section fourteen hundred
19 of this article shall not be subject to the provisions of paragraph (b)
20 or (c) of subdivision four of section two hundred nine of the civil
21 service law, nor shall such demand be subject to any provision for
22 interest arbitration contained in any local law, resolution or ordinance
23 adopted by any governmental entity pursuant to subdivision one of
24 section two hundred twelve of the civil service law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08156-04-6
A. 9702 2
1 § 1402. Past service costs. Any participating employer that elects the
2 additional benefits provided by this article may also elect to pay the
3 past service cost associated with this benefit in ten annual install-
4 ments.
5 § 2. This act shall take effect immediately.
FISCAL NOTE.-- This bill will allow employers in the New York State
and Local Police and Fire Retirement System which have elected to
provide their employees with the benefits of the 20 year contributory
retirement plan to elect to provide eligibility for their employees to
participate on a non-contributory basis. Any member who participates on
a non-contributory basis will not be entitled to a refund of previous
member contributions.
If this bill is enacted, there will be an increase in the annual
contributions of electing employers on behalf of their Tiers 3, 5 and 6
members. For the fiscal year ending March 31, 2017, the contribution
increases, as a percentage of salary, will be 0.3% for tier 3 384-d,
1.0% for tier 3 384-e, 3.4% for tier 5 384-d, 3.5% for tier 5 384-e,
6.5% for tier 6 384-d and 6.6% for tier 6 384-e. These additional annual
costs will be borne by the employers which elect to provide this bene-
fit.
There will not be a past service cost.
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, 2015 actuarial valu-
ation. Distributions and other statistics can be found in the 2015
Report of the Actuary and the 2015 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015
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, 2015
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 4, 2016, and intended for use only
during the 2016 Legislative Session, is Fiscal Note No. 2016-37,
prepared by the Actuary for the New York State and Local Retirement
System.
