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S06110 Summary:

S06110 Actions:

S06110 Committee Votes:

S06110 Floor Votes:

S06110 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6110--A
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                      May 16, 2019
                                       ___________
 
        Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
          -- committee discharged, bill amended, ordered  reprinted  as  amended
          and recommitted to said committee
 
        AN  ACT  to amend the retirement and social security law, in relation to
          transfer of retirement membership for certain employees of SUNY within
          the professional, scientific and technical bargaining unit
 
          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 618 to read as follows:
     3    § 618. Transfer of membership into New York state and local employees'
     4  retirement system. a. Definitions. Whenever used in this section:
     5    1.  The  term  "eligible  employee"  shall mean a person who as of the
     6  effective date of this section is an employee of the state university of
     7  New York in a position within the professional, scientific and technical
     8  bargaining unit and who is, as of said effective date, a member  of  the
     9  optional  retirement  program  and  who  is a registered nurse who first
    10  became an employee of the state university of New York  at  Stony  Brook
    11  Hospital  on  a  date between January first, nineteen hundred ninety-six
    12  and December thirty-first, nineteen hundred ninety-nine and who is still
    13  employed by the state university of New York as of the date said employ-
    14  ee files an application pursuant to subdivision b of this section;
    15    2. The term "optional retirement  program"  shall  mean  the  optional
    16  retirement program established pursuant to article eight-B of the educa-
    17  tion law.
    18    b.  Notwithstanding  any  other provision of law, an eligible employee
    19  shall be allowed to become a member of the  New  York  state  and  local
    20  employees'  retirement system by filing an application with said retire-
    21  ment system no later than December thirty-first, two thousand twenty.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08687-03-9
        S. 6110--A                          2
 
     1    c. An eligible employee who files an application to become a member of
     2  the New York state and  local  employees'  retirement  system  shall  be
     3  deemed  to  be a member of that retirement system with a date of member-
     4  ship as of the date said eligible employee was  first  employed  by  the
     5  state  university of New York. The eligible employee's membership in the
     6  optional retirement program shall terminate as of the date said applica-
     7  tion is filed.
     8    d. An eligible employee who becomes a member of the New York state and
     9  local employees' retirement system pursuant to  subdivision  b  of  this
    10  section may elect to purchase credit for previous service for any period
    11  during  which  said  employee  was  a  member of the optional retirement
    12  program by filing an application with  the  New  York  state  and  local
    13  employees'  retirement  system  no later than December thirty-first, two
    14  thousand twenty and by paying to said retirement  system  an  amount  as
    15  determined  by  the  comptroller equal to the full cost of such previous
    16  service credit purchased which shall include an amount equivalent to the
    17  additional costs to the employer of providing retirement service  credit
    18  to  such  employee  while  such  employee  was  a member of the optional
    19  retirement program as determined  by  the  actuary  for  the  retirement
    20  system. Said payment may be made by a transfer of funds from the employ-
    21  ee's optional retirement program account to the New York state and local
    22  employees'  retirement  system.  Said  payment  may  also be made in one
    23  payment by the employee or by payroll deduction over  a  period  not  to
    24  exceed five years.
    25    §  2. Notwithstanding any other provision of law to the contrary, none
    26  of the provisions of this act shall be subject  to  section  25  of  the
    27  retirement and social security law.
    28    § 3. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill will allow any employee of the State University of New York
        (SUNY) who is a registered nurse in a position within the  Professional,
        Scientific and Technical bargaining unit, who first became employed with
        SUNY  at  Stony  Brook Hospital between January 1, 1996 and December 31,
        1999, and who enrolled in the Optional Retirement Program, to  terminate
        their  membership in the Optional Retirement Program and to be deemed to
        be a member of the New York State and Local Employees' Retirement System
        (NYSLERS) with a date of membership as of the date of  first  employment
        by  SUNY.  Affected  members  will  be  required  to pay the entire past
        service cost as determined  by  the  Comptroller  in  order  to  receive
        retirement  service  credit for service rendered prior to their dates of
        membership.
          If this bill is enacted, the number of employees who may  be  affected
        cannot  be  readily  determined.  For  every employee who does so elect,
        there will be an annual cost to the State of New York  of  approximately
        15.8% of salary beginning with the fiscal year ending March 31, 2020.
          In addition to the annual cost above, for every member who elects this
        benefit,  there will be a past service cost that will depend on the age,
        service and salary of the member. Members will be able to pay this  cost
        using  any  of  three  methods, including a transfer of funds from their
        Optional Retirement Program balance, a one-time payment, or  by  payroll
        deduction over a period not to exceed five (5) years.
          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
        S. 6110--A                          3
 
        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 April 30, 2019, and intended for use only during
        the 2019 Legislative Session, is Fiscal Note No. 2019-106,  prepared  by
        the Actuary for the New York State and Local Retirement System.