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S08959 Summary:

S08959 Actions:

S08959 Committee Votes:

S08959 Floor Votes:

S08959 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8959
 
                    IN SENATE
 
                                       May 2, 2022
                                       ___________
 
        Introduced  by  Sen.  SAVINO -- 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
          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-
    22  three.
    23    c. An eligible employee who files an application to become a member of
    24  the New York state and  local  employees'  retirement  system  shall  be
    25  deemed  to  be a member of that retirement system with a date of member-
    26  ship as of the date said eligible employee was  first  employed  by  the
    27  state  university of New York. The eligible employee's membership in the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08552-05-2
        S. 8959                             2

     1  optional retirement program shall terminate as of the date said applica-
     2  tion is filed.
     3    d. An eligible employee who becomes a member of the New York state and
     4  local  employees'  retirement  system  pursuant to subdivision b of this
     5  section may elect to purchase credit for previous service for any period
     6  during which said employee was  a  member  of  the  optional  retirement
     7  program  by  filing  an  application  with  the New York state and local
     8  employees' retirement system no later than  December  thirty-first,  two
     9  thousand  twenty-three and by paying to said retirement system an amount
    10  as determined by the comptroller equal to the full cost of such previous
    11  service credit purchased which shall include an amount equivalent to the
    12  additional costs to the employer of providing retirement service  credit
    13  to  such  employee  while  such  employee  was  a member of the optional
    14  retirement program as determined  by  the  actuary  for  the  retirement
    15  system. Said payment may be made by a transfer of funds from the employ-
    16  ee's optional retirement program account to the New York state and local
    17  employees'  retirement  system.  Said  payment  may  also be made in one
    18  payment by the employee or by payroll deduction over  a  period  not  to
    19  exceed five years.
    20    §  2. Notwithstanding any other provision of law to the contrary, none
    21  of the provisions of this act shall be subject  to  section  25  of  the
    22  retirement and social security law.
    23    § 3. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would 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 (ORP), to
        terminate their membership in the ORP 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 any period of service rendered while a member of the ORP.
          If this bill is enacted  during  the  2022  legislative  session,  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 13.0% of salary beginning with
        the fiscal year ending March 31, 2023.
          In addition to the annual cost discussed 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 ORP balance, a one-time payment, or by payroll deduction over
        a period not to exceed five (5) years.
          Summary of relevant resources:
          Membership data as of March 31, 2021 was used in measuring the  impact
        of the proposed change, the same data used in the April 1, 2021 actuari-
        al  valuation.  Distributions  and  other statistics can be found in the
        2021 Report of the Actuary and the 2021 Comprehensive  Annual  Financial
        Report.
          The  actuarial  assumptions and methods used are described in the 2020
        and 2021 Annual Report to the Comptroller on Actuarial Assumptions,  and
        the  Codes,  Rules  and  Regulations of the State of New York: Audit and
        Control.
        S. 8959                             3
 
          The Market Assets and GASB Disclosures are found in the March 31, 2021
        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 January 4, 2022, and intended for use only during
        the  2022  Legislative  Session, is Fiscal Note No. 2022-43, prepared by
        the Actuary for the New York State and Local Retirement System.