STATE OF NEW YORK
________________________________________________________________________
8698
IN SENATE
March 31, 2022
___________
Introduced by Sen. THOMAS -- 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
increasing the amount of years of military service credit a member may
purchase
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 1 and 4 of section 1000 of the retirement and
2 social security law, as amended by chapter 41 of the laws of 2016, are
3 amended to read as follows:
4 1. A member, upon application to such retirement system, may obtain a
5 total not to exceed [three] ten years of service credit for up to
6 [three] ten years of military duty, as defined in section two hundred
7 forty-three of the military law, if the member was honorably discharged
8 from the military.
9 4. In no event shall the credit granted pursuant to this section, when
10 added to credit granted for military service with any retirement system
11 of this state pursuant to this or any other provision of law, exceed a
12 total of [three] ten years.
13 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend the current military law to allow for a member
to obtain up to a total of ten years of service credit for up to ten
years of military duty if the member was honorably discharged. The
current maximum is three years of service credit. Members must have at
least five years of credited service (not including 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 this bill. Tier 6 members would be required to make a payment
of six percent of their most recent compensation per year of additional
service credit.
If this bill is enacted, insofar as this proposal affects the New York
State and Local Employees’ Retirement System (NYSLERS), it is estimated
that the past service cost will be 20% (17% for Tier 6) of an affected
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13322-02-2
S. 8698 2
member's compensation for each year of service credit that is purchased.
For the NYSLERS, this cost would be borne entirely by the State of New
York.
Insofar as this proposal affects the New York State and Local Police
and Fire Retirement System (NYSLPFRS), it is estimated that the past
service cost will be 29% (26% for Tier 6) of an affected member's
compensation for each year of service credit that is purchased. For the
NYSLPFRS, this cost would be shared by the State of New York and the
participating employers of the NYSLPFRS.
The exact number of current members as well as future members who
could be affected by this legislation cannot be readily determined.
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.
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 27, 2022, and intended for use only
during the 2022 Legislative Session, is Fiscal Note No. 2022-2, prepared
by the Actuary for the New York State and Local Retirement System.
