Authorizes participating employers in the New York state and local police and fire retirement system offering 20 year retirement plans to offer such plans on a non-contributory basis.
STATE OF NEW YORK
________________________________________________________________________
8017--A
2017-2018 Regular Sessions
IN ASSEMBLY
May 25, 2017
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees -- recommitted to the Committee on Govern-
mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit-
tee discharged, bill amended, ordered reprinted as amended and recom-
mitted to said committee
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)
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09303-04-8
A. 8017--A 2
1 or (c) of subdivision four of section two hundred nine of the civil
2 service law, nor shall such demand be subject to any provision for
3 interest arbitration contained in any local law, resolution or ordinance
4 adopted by any governmental entity pursuant to subdivision one of
5 section two hundred twelve of the civil service law.
6 § 1402. Past service costs. Any participating employer that elects the
7 additional benefits provided by this article may also elect to pay the
8 past service cost associated with this benefit in ten annual install-
9 ments.
10 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
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-con-
tributory 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, 2018, the contribution
increases, as a percentage of salary, are as follows:
Tier384-d384-e
3 0.3% 1.0%
5 3.5% 3.5%
6 6.5% 6.6%
These additional annual costs will be borne by the employers which
elect to provide this benefit.
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, 2017 actuarial valu-
ation. Distributions and other statistics can be found in the 2017
Report of the Actuary and the 2017 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015,
2016, and 2017 Annual Report to the Comptroller on Actuarial Assump-
tions, 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, 2017
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 January 19, 2018, and intended for use only
during the 2018 Legislative Session, is Fiscal Note No. 2018-45,
prepared by the Actuary for the New York State and Local Retirement
System.