New York State Assembly

 
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S07023 Summary:

S07023 Actions:

S07023 Committee Votes:

S07023 Floor Votes:

S07023 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7023
 
                    IN SENATE
 
                                     March 16, 2016
                                       ___________
 
        Introduced  by  Sen.  YOUNG  -- 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
          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
        S. 7023                             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.