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A06950 Summary:

BILL NOA06950
 
SAME ASSAME AS S07570
 
SPONSORWoerner
 
COSPNSR
 
MLTSPNSR
 
Add Art 20-A 1005, R & SS L
 
Provides that a member of a public retirement system of the state who is a disabled veteran may retire without reduction of their retirement benefit upon their attainment of at least fifty-five years of age and completion of at least thirteen years of credited service in such retirement system.
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A06950 Actions:

BILL NOA06950
 
05/09/2023referred to governmental employees
01/03/2024referred to governmental employees
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A06950 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6950
 
SPONSOR: Woerner
  TITLE OF BILL: An act to amend the retirement and social security law, in relation to providing for early retirement without a pension reduction for certain disabled veterans   PURPOSE: To permit early retirement without a pension reduction for disabled veterans with a service-connected disability rated at sixty percentum or more.   SUMMARY OF PROVISIONS: Section 1 adds a new article 20-A and section one thousand five of the retirement and social security law to define the term "disabled veteran" and to permit a disabled veteran with at least a sixty percent service- connected disability, when such veteran has at least thirteen years of credited service in the retirement system, to retire at age fifty-five without a reduction of their retirement benefit. The section also provides an appropriation to cover the costs for such an early retire- ment. Section 2 establishes the effective date.   JUSTIFICATION: Veterans with service-connected disabilities often work well beyond their physical abilities, facing increasing levels of pain to support their families. Currently, many disabled veterans face an impossible choice. Although the veteran's deteriorating physical/medical condition may qualify them for a higher level of disability compensation from the federal government, the veteran may not apply for the increased benefits until they are unemployed. Nonetheless, because the Veterans Adminis- tration (VA) may take several years to approve a request for the increased disability compensation, many veterans cannot afford to live solely on their state pension and existing federal disability benefits while awaiting the VA's determination. This conundrum often arises because NYS systematically reduces the amount of most employees' pension benefits whenever an employee who has worked for less than thirty years retires before the age of 62. Since many disabled veterans served in the military for multiple tours before taking a state job, many under the age of 62 do not yet have thirty years of credited state service when their physical condition becomes unbearable. As a result, a disabled veteran who retires from their state job at the age of 55 might receive retirement benefits reduced by more than 50%. This bill addresses the conundrum by permitting disabled veterans with a current VA disability rating of 60% or more to draw a non-reduced pension from the state, even if they retire between the ages of 55. and 61.   LEGISLATIVE HISTORY: None.   FISCAL IMPLICATIONS: See the bill.   EFFECTIVE DATE: This act shall take effect on the one hundred twentieth day after it shall have become a law.
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A06950 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6950
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                       May 9, 2023
                                       ___________
 
        Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
          tee on Governmental Employees
 
        AN ACT to amend the retirement and social security law, in  relation  to
          providing for early retirement without a pension reduction for certain
          disabled veterans
 
          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 20-A to read as follows:
 
     3                                ARTICLE 20-A
     4                      DISABLED VETERAN EARLY RETIREMENT
     5  Section 1005. Disabled veteran early retirement.
     6    § 1005. Disabled veteran early retirement. 1. Notwithstanding any  law
     7  to the contrary, a member of a public retirement system of the state, as
     8  defined  in subdivision twenty-three of section five hundred one of this
     9  chapter, who is a disabled veteran may retire without reduction of their
    10  retirement benefit upon their attainment of at least fifty-five years of
    11  age and completion of at least thirteen years  of  credited  service  in
    12  such  retirement  system.  As  used  in this section, the term "disabled
    13  veteran" means a veteran who is certified by the United States veterans'
    14  administration or a military department as entitled to receive disabili-
    15  ty payments upon the certification of such veterans' administration or a
    16  military department  for  a  service-connected  disability  incurred  or
    17  aggravated  by  the  veteran  in the line of duty in the active military
    18  service of the United States, as defined in section one of the  military
    19  law,  and whose disability is in existence at the time of retirement. To
    20  be eligible under this section, a member must  make  application  before
    21  the  effective  date  of  retirement. Such disability shall be deemed in
    22  existence at such time of retirement  if  the  certificate  shall  state
    23  affirmatively  that  such  veteran has been identified by such veterans'
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03609-04-3

        A. 6950                             2
 
     1  administration as having one or more service-connected disabilities on a
     2  date prior to the date of retirement, the effective date  of  when  such
     3  veteran became permanently disabled due to their service-connected disa-
     4  bilities,  and  that such service-connected disability is rated at sixty
     5  percentum or more.
     6    2. All costs for the early retirement of a member who  is  a  disabled
     7  veteran  pursuant  to  this  section  shall be paid by the state and all
     8  employers which participate in the retirement  system  from  which  such
     9  member retires.
    10    § 2. This act shall take effect on the one hundred twentieth day after
    11  it shall have become a law.  Effective immediately, the addition, amend-
    12  ment and/or repeal of any rule or regulation necessary for the implemen-
    13  tation  of  this act on its effective date are authorized to be made and
    14  completed on or before such effective date.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would allow members of the New York State and Local  Retire-
        ment System (NYSLRS) to retire without early age reduction provided that
        the  member  is  at least age 55 with 13 years of service credit and was
        certified by the United States Veterans' Administration  or  a  military
        department as permanently disabled in connection with military service.
          Insofar as this bill would affect the New York State and Local Employ-
        ees' Retirement System (NYSLERS), if enacted during the 2023 legislative
        session, the cost will depend upon the applicant's age, service, salary,
        plan, and any benefit type otherwise payable.
 
           NYSLERS Membership:       Tiers 2 - 4     Tier 5        Tier 6
           Average Increased Cost:   1 times         1.5 times     2 times
                                      salary          salary        salary
 
          Insofar  as this bill would affect the New York State and Local Police
        and Fire Retirement System (NYSLPFRS), if enacted during the 2023 legis-
        lative session, the cost will depend upon the applicant's age,  service,
        salary, plan, and any benefit type otherwise payable.
 
           NYSLPFRS Membership:      Tiers 2 - 5     Tier 6
           Average Increased Cost:   1 times         2 times
                                      salary          salary
 
          Further,  we  anticipate  some  administrative  costs to implement the
        provisions of this legislation.
          The exact number of current members as  well  as  future  members  who
        could  be affected by this legislation cannot be readily determined. All
        costs will be shared by the State of  New  York  and  all  participating
        employers in the NYSLRS and spread over future billing cycles.
          Summary of relevant resources:
          Membership  data as of March 31, 2022 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2022 actuari-
        al valuation.  Distributions and other statistics can be  found  in  the
        2022  Report  of the Actuary and the 2022 Annual Comprehensive Financial
        Report.
          The actuarial assumptions and methods used are described in the  2020,
        2021,  and  2022  Annual  Report to the Comptroller on Actuarial Assump-
        tions, and the Codes, Rules and Regulations of the State  of  New  York:
        Audit and Control.

        A. 6950                             3
 
          The Market Assets and GASB Disclosures are found in the March 31, 2022
        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 27, 2023, and intended for use only during
        the 2023 Legislative Session, is Fiscal Note No.  2023-27,  prepared  by
        the Actuary for the New York State and Local Retirement System.
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