Provides military service credits for those persons who served in the military in hostilities participated in by the military forces of the United States in the Global War on Terrorism from September two thousand one through the end of such hostilities and hostilities participated in by the military forces of the United States in UN related combat theaters in Somalia, in NATO related combat theaters in Bosnia in nineteen hundred ninety-five through two thousand four and Kosovo in nineteen hundred ninety-nine.
STATE OF NEW YORK
________________________________________________________________________
6192
IN SENATE(Prefiled)
January 8, 2014
___________
Introduced by Sen. AVELLA -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the retirement and social security law, in relation to
military service credits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The opening paragraph and paragraphs (c) and (d) of subdi-
2 vision 2 of section 1000 of the retirement and social security law, as
3 added by chapter 548 of the laws of 2000, are amended and two new para-
4 graphs (e) and (f) are added to read as follows:
5 A member, upon application to such retirement system, may obtain a
6 total not to exceed three years of service credit for up to three years
7 of military duty, as defined in section two hundred forty-three of the
8 military law, or not to exceed seven years of service credit for fifty
9 percent of such member's total years in active military duty, whichever
10 is greater, if honorably discharged therefrom, if all or part of such
11 services was rendered in the military conflicts referenced below, as
12 follows:
13 (c) hostilities participated in by the military forces of the United
14 States in Panama, from the twentieth day of December, nineteen hundred
15 eighty-nine to the thirty-first day of January, nineteen hundred ninety,
16 as established by receipt of the armed forces expeditionary medal, the
17 navy expeditionary medal, or the marine corps expeditionary medal; [or]
18 (d) hostilities participated in by the military forces of the United
19 States, from the second day of August, nineteen hundred ninety, to the
20 end of such hostilities in case of a veteran who served in the theater
21 of operations including Iraq, Kuwait, Saudi Arabia, Bahrain, Qatar, the
22 United Arab Emirates, Oman, the Gulf of Aden, the Gulf of Oman, the
23 Persian Gulf, the Red Sea, and the airspace above these locations[.];
24 (e) hostilities participated in by the military forces of the United
25 States in the Global War on Terrorism from September eleventh, two thou-
26 sand one through the end of such hostilities in case of a veteran who
27 served in the theater of operations including Afghanistan, Iraq, Pakis-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13008-07-4
S. 6192 2
1 tan, Yemen, Oman, Saudi Arabia, Turkey, Libya, Egypt, India, Lebanon,
2 Syria, the Gulf of Aden, the Gulf of Oman, the Persian Gulf, the Red
3 Sea, and the airspace above these locations; or
4 (f) hostilities participated in by the military forces of the United
5 States in case of a veteran who served in UN related combat theaters in
6 Somalia from August nineteen hundred ninety-two through March nineteen
7 hundred ninety-four, in case of a veteran who served in NATO related
8 combat theaters in Bosnia in December nineteen hundred ninety-five
9 through November two thousand four and in case of a veteran who served
10 in NATO related combat theaters in Kosovo in April nineteen hundred
11 ninety-nine through June nineteen hundred ninety-nine.
12 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend the benefits of Chapter 548, Laws of 2000 to
permit members of public retirement systems in New York State who are
eligible to purchase military service credit, to purchase the larger of
up to 3 years of service credit, or up to 50% of such member's total
years in active military duty up to 7 years of service credit (current
law allows up to 3 years). In addition, this bill would include the
following conflicts as allowable military service for credit in the case
of a veteran who served in the theater of operations:
- from 09/11/01 to the end of hostilities in Afghanistan, Iraq, Pakis-
tan, Yemen, Oman, Saudi Arabia, Turkey, Libya, Egypt, India, Lebanon,
Syria, the Gulf of Aden, the Gulf of Oman, the Persian Gulf, the Red Sea
and the airspace above these locations
- In UN related combat theaters in Somalia from 08/1992 - 03/1994
- In NATO related combat theaters in Bosina 12/1995 - 11/2004
- In NATO related combat theaters in Kosovo 04/1999 - 06/1999
Members must have at least five years of credited service (not includ-
ing military service). Tier 1-5 members would be required to make a
payment of three percent of their most recent compensation per year of
additional service credit granted by their bill. Tier 6 members would be
required to make a payment of six percent of their most recent compen-
sation per year of additional service credit.
If the bill is enacted, insofar as this proposal affects the New York
State and Local Employees' Retirement System (ERS), it is estimated that
the past service cost will average approximately 12% (9% for Tier 6) of
an affected members' compensation for each year of additional service
credit that is purchased.
Insofar as this proposal affects the New York State and Local Police
and Fire Retirement System (PFRS), it is estimated that the past service
cost will average approximately 15% (14% for Tier 6) of an affected
members' compensation for each year of additional service that is
purchased.
The exact number of current members as well as future members who
could be affected by this legislation cannot be readily determined.
ERS Costs: Pursuant to Section 25 of the Retirement and Social Securi-
ty Law, the increased cost to the New York State and Local Employees'
Retirement System would be borne entirely by the State of New York and
would require an itemized appropriation sufficient to pay the cost of
the provision. Since a member can apply for this service credit at any
time prior to retirement, a precise cost can't be determined until each
member, as well as future members, applies for the service credit. Every
year a cost will be determined (and billed to the state) based on those
benefiting from this provision.
S. 6192 3
PFRS Costs: These costs would be shared by the State of New York and
the participating 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.
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 Quali-
fication Standards to render the actuarial opinion contained herein.
This estimate, dated December 6, 2013 and intended for use only during
the 2014 Legislative Session, is Fiscal Note No. 2014-38, prepared by
the Actuary for the New York State and Local Police and Fire Retirement
System.
