STATE OF NEW YORK
________________________________________________________________________
8003
2019-2020 Regular Sessions
IN ASSEMBLY
May 30, 2019
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
mandatory retirement age
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (f) of paragraph 1 and the opening paragraph
2 of subparagraph (g) of paragraph 2 of subdivision e and subdivisions h
3 and k of section 384 of the retirement and social security law, as
4 amended by chapter 1043 of the laws of 1968, are amended to read as
5 follows:
6 (f) Upon completion of twenty-five years service, an additional
7 pension, if required, of such amount as shall be necessary to increase
8 the total amount of the benefits provided herein to one-half of his
9 final average salary. The pension provided by this [sub-paragraph]
10 subparagraph shall be payable only if a member retires from service on
11 or before the last day of the calendar month next succeeding the calen-
12 dar month in which he attains age [sixty-two] sixty-five. Provided,
13 however, that in the case of any member who attained the age of [sixty-
14 two] sixty-five on or before July first, nineteen hundred sixty-six, to
15 be eligible for additional pension credit under this [sub-paragraph]
16 subparagraph, his service shall be terminated and he shall retire on or
17 before December thirty-first, nineteen hundred sixty-seven. For the
18 purpose only of determining the amount of the pension provided in this
19 paragraph, the annuity shall be computed as it would be if it were not
20 reduced by the actuarial equivalent of any outstanding loan, and if it
21 were not increased by the actuarial equivalent of any additional
22 contributions, and if it were not reduced by reason of the member's
23 election to decrease his annuity contributions to the retirement system
24 in order to apply the amount of such reduction in payment of his
25 contributions for old-age and survivors insurance coverage.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11684-02-9
A. 8003 2
1 Upon completion of twenty-five years service, an additional pension,
2 if required, of such amount as shall be necessary to increase the total
3 amount of the benefits provided herein to one-half of his final average
4 salary. The pension provided by this [sub-paragraph] subparagraph shall
5 be payable only if a member retires from service on or before the last
6 day of the calendar month next succeeding the calendar month in which he
7 attains age [sixty-two] sixty-five. Provided, however, that in the case
8 of any member who attained the age of [sixty-two] sixty-five before or
9 within one month after his employer first elected to assume all or part
10 of the additional cost of service as provided by paragraph two of subdi-
11 vision d of this section, to be eligible for additional pension credit
12 under this [sub-paragraph] subparagraph, his service shall be terminated
13 and he shall retire within three months after his employer so elects or
14 on or before December thirty-first, nineteen hundred sixty-eight, which-
15 ever shall last occur.
16 h. Any officer or member of such organized fire department or organ-
17 ized police force or department, may, within one year after he becomes
18 such officer or member or within one year after his employer assumes the
19 additional cost therefor, whichever shall last occur, elect to receive
20 the additional benefits provided for by subdivision f [hereof] of this
21 section. Any officer or member who elects to receive such benefits shall
22 be separated from service on the first day of the calendar month next
23 succeeding his attainment of age [sixty-two] sixty-five and the
24 completion of twenty-five years of service, provided, however, that in
25 the case of any officer or member who attained the age of [sixty-two]
26 sixty-five before his employer assumed the additional cost therefor, or
27 who attains the age of [sixty-two] sixty-five within one month after his
28 employer assumes the additional cost therefor, to be eligible for addi-
29 tional pension credit under subdivision f of this section, his service
30 shall be terminated and he shall be retired within three months after
31 his employer assumes the additional cost therefor or on or before Decem-
32 ber thirty-first, nineteen hundred sixty-eight, whichever shall last
33 occur, and provided further that a member who is a chief or commanding
34 officer of a police department or police force shall retire on the first
35 day of the calendar month next succeeding his attainment of age sixty-
36 five; a member who is a chief or commanding officer of a police depart-
37 ment or police force, who attained age sixty-five before his employer
38 elected to provide this added benefit and has rendered twenty-five years
39 of total creditable service, shall retire on or before December thirty-
40 first, nineteen hundred sixty-eight, or within one year after his
41 employer assumes the additional cost therefor, whichever shall last
42 occur.
43 k. Any officer or member of such organized fire department or organ-
44 ized police force or department, may, within one year after he becomes
45 such officer or member or within one year after his employer assumes the
46 additional cost therefor, whichever shall last occur, elect to receive
47 the additional benefits provided for by subdivision i [hereof] of this
48 section. Any officer or member who elects to receive such benefits shall
49 be separated from service on the first day of the calendar month next
50 succeeding his attainment of age [sixty-two] sixty-five and the
51 completion of twenty-five years of service, provided, however, that in
52 the case of any officer or member who attained the age of [sixty-two]
53 sixty-five before his employer assumed the additional cost therefor, or
54 who attains the age of [sixty-two] sixty-five within one month after his
55 employer assumes the additional cost therefor, to be eligible for addi-
56 tional pension credit under subdivision i of this section, his service
A. 8003 3
1 shall be terminated and he shall be retired within three months after
2 his employer assumes the additional cost therefor, or on or before
3 December thirty-first, nineteen hundred sixty-eight, whichever shall
4 last occur, and provided further that a member who is a chief or
5 commanding officer of a police department or police force shall retire
6 on the first day of the calendar month next succeeding his attainment of
7 age sixty-five; a member who is a chief or commanding officer of a
8 police department or police force, who attained age sixty-five before
9 his employer elected to provide this added benefit and has rendered
10 twenty-five years of total creditable service, shall retire on or before
11 December thirty-first, nineteen hundred sixty-eight, or within one year
12 after his employer assumes the additional cost therefor, whichever shall
13 last occur.
14 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill will increase the mandatory retirement age from 62 to 65 for
members of the New York State and Local Police and Fire Retirement
System (PFRS) who are covered under the provisions of Section 384 of the
Retirement and Social Security Law.
If this bill is enacted, there would be additional benefits for
certain members who remain employed beyond age 62. However, if some
members delay retirement due to the enactment of this bill, we would not
anticipate that there would be an increase in the annual contributions
of the participating employers in the PFRS.
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, 2018 actuarial valu-
ation. Distributions and other statistics can be found in the 2018
Report of the Actuary and the 2018 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015,
2016, 2017 and 2018 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, 2018
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 May 16, 2019, and intended for use only during
the 2019 Legislative Session, is Fiscal Note No. 2019-118, prepared by
the Actuary for the New York State and Local Retirement System.
