senate Bill S4714A

Provides credit to members of public retirement systems of the state for military service rendered during certain periods; appropriation

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 19 / Apr / 2013
    • REFERRED TO FINANCE
  • 08 / Jan / 2014
    • REFERRED TO FINANCE
  • 26 / Feb / 2014
    • AMEND AND RECOMMIT TO FINANCE
  • 26 / Feb / 2014
    • PRINT NUMBER 4714A
  • 10 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 10 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1247
  • 11 / Jun / 2014
    • PASSED SENATE
  • 11 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 11 / Jun / 2014
    • REFERRED TO WAYS AND MEANS

Summary

Provides up to three years of service credit to members of public retirement systems of the state for military service rendered during times of peace; removes requirement that such military service occur during specified periods of hostilities; such members must have at least five years of credited service, not including military service; makes an appropriation therefor.

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Bill Details

Versions:
S4714
S4714A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Appropriations
Laws Affected:
Amd §1000, R & SS L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S6904A
2009-2010: A6663A
2007-2008: A6318C

Sponsor Memo

BILL NUMBER:S4714A

TITLE OF BILL: An act to amend the retirement and social security
law, in relation to providing credit to members of public retirement
systems of the state for military service; and making an appropriation
therefor

PURPOSE:

To extend the Veterans Service Credit Law of 2000 to all veterans who
have served in the military.

SUMMARY OF PROVISIONS:

Section one amends section 1000 of the retirement and social services
law, as added by chapter 548 of the laws of 2000 and subdivision 9 as
added by chapter 547 of the laws of 2002, by deleting the specified
periods of time in which military service would had to have been
rendered in order to receive up to three years of service credit.
Such specified periods currently prevent a person who served in the
military, outside such periods, from obtaining service credit when
applying to a public retirement system of the state. This section also
deletes other restricting dates.

Section two provides the appropriation necessary for the legislation.

Section three provides the effective date.

JUSTIFICATION:

The United States now depends on a volunteer military. In order to
encourage citizens to become a member of the military, the state needs
to recognize all veterans by allowing them to access the veteran's
service credit buy back law. Currently, the Veterans Service Credit
Law of 2000 permits active public employees who served in the military
during only specified conflicts to purchase up to three years credit
for their military service. This legislation will extend this
opportunity to veterans who were in the military and served their
country during peace times as well.

LEGISLATIVE HISTORY:

S.6904-A, 2012 referred to civil service and pensions
A 6663-A, 2010 referred to ways and means.
Same as S.4316-A, 2010 referred to civil service and pensions.
A 6663, 2009 referred to governmental employees.
Same as S.4316, 2009 referred to civil service and pensions
A.6318-C 2008, passed assembly.
A.6318-C 2007, referred to governmental employees committee.
Same as S.5495 (Leibell).

FISCAL IMPLICATIONS:

See fiscal notes included at the end of the bill.

EFFECTIVE DATE:


This act shall take effect immediately

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4714--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 19, 2013
                               ___________

Introduced  by  Sens.  LARKIN,  ADDABBO, AVELLA, BALL, BONACIC, BRESLIN,
  DeFRANCISCO, DIAZ, GALLIVAN, GIPSON, GOLDEN, GRIFFO,  GRISANTI,  HOYL-
  MAN,  LAVALLE,  LITTLE, MARCHIONE, MARTINS, MAZIARZ, NOZZOLIO, PARKER,
  RANZENHOFER, RITCHIE,  SEWARD,  TKACZYK,  ZELDIN  --  read  twice  and
  ordered  printed, and when printed to be committed to the Committee on
  Finance -- recommitted to the Committee on Finance in accordance  with
  Senate  Rule  6, sec. 8 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the retirement and social security law, in  relation  to
  providing  credit to members of public retirement systems of the state
  for military service; and making an appropriation therefor

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 1000 of the retirement and social security law, as
added by chapter 548 of the laws of 2000,  subdivision  9  as  added  by
chapter  547  of the laws of 2002 and subdivision 10 as added by chapter
18 of the laws of 2012, is amended to read as follows:
  S 1000. Military  service  credit.  Notwithstanding  any  law  to  the
contrary,  a  member  of  a  public  retirement  system of the state, as
defined in subdivision twenty-three of section five hundred one of  this
chapter, shall be eligible for credit for military service as hereinaft-
er provided:
  1.  A member, upon application to such retirement system, may obtain a
total not to exceed three years of service credit for up to three  years
of  military  duty, as defined in section two hundred forty-three of the
military law, if the member was honorably discharged from  the  military
[and  all  or  part  of  such  military  service was rendered during the
following periods: (a) commencing  December  seventh,  nineteen  hundred
forty-one   and  terminating  December  thirty-first,  nineteen  hundred
forty-six; (b) commencing June twenty-seventh,  nineteen  hundred  fifty
and  terminating  January  thirty-first, nineteen hundred fifty-five; or

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01368-07-4

S. 4714--A                          2

(c) commencing February twenty-eighth, nineteen  hundred  sixty-one  and
terminating May seventh, nineteen hundred seventy-five;
  2.  A member, upon application to such retirement system, may obtain a
total not to exceed three years of service credit for up to three  years
of  military  duty, as defined in section two hundred forty-three of the
military law, if honorably discharged therefrom, if all or part of  such
services  was  rendered  in  the military conflicts referenced below, as
follows:
  (a) hostilities participated in by the military forces of  the  United
States  in Lebanon, from the first day of June, nineteen hundred eighty-
three to the first day of December, nineteen  hundred  eighty-seven,  as
established by receipt of the armed forces expeditionary medal, the navy
expeditionary medal, or the marine corps expeditionary medal;
  (b)  hostilities  participated in by the military forces of the United
States in Grenada,  from  the  twenty-third  day  of  October,  nineteen
hundred  eighty-three  to  the  twenty-first  day  of November, nineteen
hundred eighty-three, as established by  receipt  of  the  armed  forces
expeditionary  medal,  the navy expeditionary medal, or the marine corps
expeditionary medal;
  (c) hostilities participated in by the military forces of  the  United
States  in  Panama, from the twentieth day of December, nineteen hundred
eighty-nine to the thirty-first day of January, nineteen hundred ninety,
as established by receipt of the armed forces expeditionary  medal,  the
navy expeditionary medal, or the marine corps expeditionary medal; or
  (d)  hostilities  participated in by the military forces of the United
States, from the second day of August, nineteen hundred ninety,  to  the
end  of  such hostilities in case of a veteran who served in the theater
of operations including Iraq, Kuwait, Saudi Arabia, Bahrain, Qatar,  the
United  Arab  Emirates,  Oman,  the  Gulf of Aden, the Gulf of Oman, the
Persian Gulf, the Red Sea, and the airspace above these locations].
  [3] 2. A member must have at least five years of credited service (not
including service granted hereunder) to be eligible  to  receive  credit
under this section.
  [4]  3.  To  obtain  such  credit,  a member shall pay such retirement
system, for deposit in the fund used  to  accumulate  employer  contrib-
utions,  a  sum  equal to the product of the number of years of military
service being claimed and three percent of  such  member's  compensation
earned  during the twelve months of credited service immediately preced-
ing the date that the member made application  for  credit  pursuant  to
this  section.  If  permitted  by  rule  or regulation of the applicable
retirement system, the member may  pay  such  member  costs  by  payroll
deduction  for  a period which shall not exceed the time period of mili-
tary service to be credited pursuant to this section. In the  event  the
member leaves the employer payroll prior to completion of payment, he or
she  shall  forward  all  remaining required payments to the appropriate
retirement system prior to the effective date of retirement. If the full
amount of such member costs is not paid to  the  appropriate  retirement
system  prior to the member's retirement, the amount of service credited
shall be proportional to the total amount of the payments made prior  to
retirement.
  [5]  4. In no event shall the credit granted pursuant to this section,
when added to credit granted for military service  with  any  retirement
system  of  this  state  pursuant to this or any other provision of law,
exceed a total of three years.
  [6] 5. To be eligible to receive credit  for  military  service  under
this  section, a member must make application for such credit before the

S. 4714--A                          3

effective date of retirement. [Notwithstanding the foregoing  provisions
of  this  subdivision,  an  individual  who retired on or after December
twenty-first, nineteen hundred ninety-eight  and  before  the  effective
date  of  this  section may make application for credit pursuant to this
section within one year following the effective date of this section, in
which event, the cost to the retiree would be based on the twelve  month
period immediately preceding retirement.]
  [7]  6.  All  costs  for service credited to a member pursuant to this
section, other than the member costs set forth  in  subdivision  [three]
TWO  of this section, shall be paid by the state and all employers which
participate in the retirement system in which  such  member  is  granted
credit.
  [8]  7. A member who has purchased military service credit pursuant to
section two hundred forty-four-a of the military law shall  be  entitled
to  a refund of the difference between the amount paid by the member for
such purchase and the amount that would be payable if service  had  been
purchased pursuant to this section.
  [9]  8.  Notwithstanding  any  other provision of law, in the event of
death prior to retirement, amounts paid by the member for  the  purchase
of  military  service credit pursuant to this section shall be refunded,
with interest, to the extent the military service  purchased  with  such
amounts  does  not  produce a greater death benefit than would have been
payable had the member not purchased such credit.
  Notwithstanding any other provision of law, in the  event  of  retire-
ment,  amounts  paid  by the member for the purchase of military service
credit pursuant to this section shall be refunded, with interest, to the
extent the military service purchased with such amounts does not produce
a greater retirement allowance than would  have  been  payable  had  the
member not purchased such credit.
  [10.]  9. Anything to the contrary in subdivision [four] THREE of this
section notwithstanding, to obtain such credit, a member who first joins
a public retirement system of the state on or  after  April  first,  two
thousand  twelve  shall  pay  such retirement system, for deposit in the
fund used to accumulate employer contributions, a sum equal to the prod-
uct of the number of years of military service  being  claimed  and  six
percent of such member's compensation earned during the twelve months of
credited  service  immediately  preceding  the date that the member made
application for credit pursuant to this section.
  S 2. The amount specified in this section, or so much thereof as shall
be sufficient to accomplish the purpose designated, is hereby  appropri-
ated  and  authorized  to be paid as hereinafter provided, to the public
officers and for the purposes specified, which amount shall be available
for the state fiscal year beginning April 1, 2014.

                          GENERAL STATE CHARGES
                            STATE OPERATIONS

GENERAL STATE CHARGES ........................................ 6,000,000

  General Fund
  State Purposes Account

For the state's contribution to the  employ-
  ees'  retirement  system  pension  accumu-
  lation fund and the New York state  public

S. 4714--A                          4

  employees  group  life  insurance plan, as
  required by section 25 of  the  Retirement
  and  Social  Security  Law, to pay for the
  purposes of this act ......................... 6,000,000

  S 3. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would allow up to three (3)  years  of  service  credit  for
military  duty  by removing all existing requirements that such military
service be performed during certain war periods, during certain  hostil-
ities  while  in theater of operations or upon the receipt of an expedi-
tionary medal. However, the total service credit granted for active  and
peacetime  military  service  shall  not exceed three (3) years.  Tier 6
members would be required to make a payment of six  percent  of  current
compensation per year of additional service credit granted by this bill.
Members  of all other Tiers would be required to make a payment of three
percent of current compensation per year of  additional  service  credit
granted by this bill. Members must have at least five (5) years of cred-
it service (not including military service).
  If this bill is enacted, insofar as this proposal affects the New York
State and Local Employees' Retirement System (ERS), it is estimated that
the  past service cost will average approximately 12% (9% for Tier 6) of
an affected members' compensation for each year  of  additional  service
credit that is purchased.
  Insofar  as  this proposal affects the New York State and Local Police
and Fire Retirement System (PFRS), it is estimated that the past service
cost will average approximately 17% (14% for  Tier  6)  of  an  affected
members'  compensation  for  each  year  of  additional  service that is
purchased.
  The exact number of current members as  well  as  future  members  who
could be affected by this legislation cannot be readily determined.
  ERS Costs: Pursuant to Section 25 of the Retirement and Social Securi-
ty  Law,  the  increased cost to the New York State and Local Employees'
Retirement System would be borne entirely by the State of New  York  and
would  require  an  itemized appropriation sufficient to pay the cost of
the provision. Since a member can apply for this service credit  at  any
time  prior to retirement, a precise cost can't be determined until each
member, as well as future members, applies for the service credit. Every
year a cost will be determined (and billed to the state) based on  those
benefiting from this provisions.
  PFRS  Costs:  These costs would be shared by the State of New York and
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, 2013 actuarial valu-
ation.  Distributions and other statistics can  be  found  in  the  2013
Report  of  the  Actuary  and  the  2013  Comprehensive Annual Financial
Report.
  The actuarial assumptions and methods used are described in the  2010,
2011,  2012  and  2013  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, 2013
New  York  State  and  Local  Retirement System Financial Statements and
Supplementary Information.

S. 4714--A                          5

  I am a member of the American Academy of Actuaries and meet the Quali-
fication  Standards  to  render  the  statement  of  actuarial   opinion
contained herein.
  This estimate, dated October 28, 2013 and intended for use only during
the 2014 Legislative Session, is Fiscal Note No. 2014-5, prepared by the
Actuary  for  the  New York State and Local Employees' Retirement System
and the New York State and Local Police and Fire Retirement System.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  With respect to certain New York City  Retirement  Systems  ("NYCRS"),
this  proposed  legislation  would  amend  New York State Retirement and
Social Security Law ("RSSL") Section 1000 to provide certain members  of
the  New York City Employees' Retirement System ("NYCERS"), the New York
City Teachers' Retirement System ("NYCTRS"), the New York City Board  of
Education  Retirement  System ("BERS"), the New York City Police Pension
Fund ("POLICE") and the New York Fire Department Pension  Fund  ("FIRE")
the  opportunity  to  obtain  additional  retirement service credits for
certain Military Service.
  This proposed legislation would permit any NYCERS member, prior to the
effective date of retirement, to make application for  these  additional
service credits.
  To  obtain such Military Service credits, members would be required to
pay to  the  appropriate  NYCRS,  for  each  year  of  Military  Service
purchased,  a  sum equal to 3.0% (6.0% for members who first join on and
after April 1, 2012) if such member's  compensation  earned  during  the
twelve  months  of  credited service immediately preceding the date that
the member makes application for credit.
  MEMBERS IMPACTED: Insofar as this proposed legislation relates to  the
NYCRS,  the  number  of  members who could potentially benefit from this
proposed legislation cannot be readily determined.
  IMPACT ON BENEFITS: With respect to the NYCRS, a member who served  in
the  U.S.  military and received an honorable discharge would be permit-
ted, after completing five years of credited service (exclusive  of  the
service credit that could be purchased under this proposed legislation),
to  purchase  a maximum of three years of Military Service (inclusive of
any prior purchases of Military Service credit).
  In order to purchase the Military Service  credits  provided  in  this
proposed  legislation,  a  member  must  have  been honorable discharged
following a period of "military duty" as defined in New York State Mili-
tary Law Section 243.
  If a member's Military  Service  meets  these  conditions,  then  that
member  would be permitted to purchase a maximum of three years of Mili-
tary Service (inclusive  of  any  previously-received  Military  Service
credit) attributable to any period of the member's military career.
  For  purposes  of  the respective NYCRS, each year of Military Service
credit purchased would apply toward providing the member with a year  of
benefit  accrual  under  the  particular  benefit  formula  covering the
member.
  In certain circumstances, the member also may be entitled  to  utilize
such  Military  Service  as  qualifying  service for benefit eligibility
purposes.
  For purposes of this Fiscal Note, it has been assumed that members who
purchase Military Service in accordance with this  proposed  legislation
would  generally  be  entitled to count such service for benefit accrual
purposes and for the purpose of qualifying for benefits.
  FINANCIAL IMPACT - OVERVIEW: With respect to an individual member, the
additional cost of this proposed legislation would depend on the  length

S. 4714--A                          6

of  all New York City service, age, salary history and Plan in which the
member participates, as well as the number of years  of  service  credit
purchased.
  With  respect  to  employers  participating in the NYCRS, the ultimate
employer cost of this proposed legislation would be  determined  by  the
increase in benefits to be paid, the impact of certain benefits commenc-
ing earlier and the reduction in certain future member contributions.
  FINANCIAL  IMPACT - ACTUARIAL PRESENT VALUES: The additional Actuarial
Present Value ("APV") of benefits would depend on the number,  salaries,
ages  and  lengths of Military Service purchased by members who would be
affected by this proposed legislation.
  With respect to the NYCRS and based on  the  census  data  assumptions
herein,  the  enactment  of this proposed legislation would increase the
Actuarial Present Value ("APV") of benefits  ("APVB")  by  approximately
$178.5 million as of June 30, 2014.
  In  addition,  with  respect  to  the  NYCRS, the APV of future member
contributions (primarily attributable to the payments by members of 3.0%
(6.0% for members who first join on and after April 1, 2012)  of  salary
per  year of Military Service purchased) would increase by approximately
$26.5 million when measured as of June 30, 2014.
  Consequently, with respect to the NYCRS, the APV of net future employ-
er contributions would increase by approximately $152.0  million  as  of
June 30, 2014.
  FINANCIAL  IMPACT  -  ANNUAL  EMPLOYER  COSTS:  The ultimate cost of a
pension plan is the benefits it pays. With respect  to  the  NYCRS,  the
financing of the ultimate cost depends upon the census data used and the
actuarial  assumptions  and methods employed. Assuming that all eligible
members were to purchase the eligible  Military  Service  during  Fiscal
Year  2014  and based on the Actuary's actuarial assumptions and methods
in effect as of June 30, 2013, the enactment  of  this  proposed  legis-
lation  would  increase  annual  employer  costs  by approximately $18.0
million per year.
  FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The impact of the  proposed
legislation  on employer contributions would be a function of the census
data (i.e., age/service/salary, etc) reported to the Actuary and of  the
timing of the members electing to buy back their Military Service.
  With  respect  to  the NYCRS, based on the Actuary's actuarial assump-
tions and methods in effect as of June 30, 2013, the enactment  of  this
proposed legislation would ultimately increase employer contributions by
approximately the estimated additional annual employer costs.
  If applications for buying back Military Service were completed during
Fiscal  Year 2014 and the NYCRS census data were updated to reflect this
information by June 30, 2014, then employer contributions would first be
impacted for Fiscal Year 2016.
  If the Military Service buybacks  were  completed  after  Fiscal  Year
2014, then the increase in employer contributions would be delayed.
  FINANCIAL  IMPACT  - SUMMARY: The following table summarizes the esti-
mated financial impact of this proposed legislation on the NYSCRS.

        Estimated Financial impact to Allow Members of the NYCRS
        to Purchase up to Three Years of Military Service Credit

                               ($ Millions)
                                                                Estimated
                                               Additional       First Year
                              Additional     APV of Future      Additional

S. 4714--A                          7

          Retirement            APV of          Employer        Employer
            System             Benefits       Contributions      Costs

NYCERS                           $ 48.5            $ 40.8            $ 4.8
NYCTRS                             14.4              11.9              1.4
BERS                                2.0               1.7              0.2
POLICE                             92.6              79.4              9.4
FIRE                               21.0              18.2              2.2
  TOTAL                         $ 178.5           $ 152.0           $ 18.0

  ADDITIONAL  EMPLOYER COSTS - GENERAL: In general, the real cost of the
enactment of this proposed legislation would be the additional  benefits
paid.
  OTHER  COSTS:  Not  measured in this Fiscal Note is the impact of this
proposed legislation on the Manhattan and Bronx Surface Transit  Operat-
ing Authority ("MaBSTOA") or on State or Local employees with respect to
their  participation  in  the New York State and Local Retirement System
("NYSLRS") or the New York State Teachers' Retirement System ("NYSTRS").
  Also, this Fiscal Note does not include analyses of the impact of this
proposed legislation on the expected increases in  administrative  costs
or costs for Other Post-Employment Benefits ("OPEB").
  CENSUS DATA: The census data used for estimates of APV of benefits and
employer  contributions presented herein are the active members included
in the June 30, 2013 (Lag) actuarial valuations of NYCERS, NYCTRS, BERS,
POLICE, and FIRE used to determine  the  Preliminary  Fiscal  Year  2015
employer contributions.
  ACTUARIAL  ASSUMPTIONS  AND  METHODS:  Additional  APV of benefits, of
member contributions and of employer contributions have  been  estimated
as  of  June 30, 2014 using various approximating techniques and assump-
tions by the Actuary, including, but not limited to:
  * A certain percentage of Veterans being honorably discharged.
  * A certain percentage of honorably discharged  veterans  being  disa-
bled.
  *  Different  percentages  of  members  by NYRCS having prior Military
Service.
  * Each eligible member purchasing an average of 2.5 years of the Mili-
tary Service.
  Changes in employer contributions have  been  estimated  assuming  the
increase in the APV of Future Employment Contributions would be financed
over  a  time  period comparable to that used for actuarial losses under
the Entry Age Actuarial Cost Method. Using this approach, the Additional
APV of Future Employer Contributions would be amortized  over  a  closed
15-year  period (14 payments under One-Year Lag Methodology) using level
dollar payments.
  ECONOMIC VALUES OF BENEFITS: The actuarial assumptions used to  deter-
mine  the financial impact of the proposed legislation discussed in this
Fiscal Note are those appropriate for budgetary models  and  determining
annual employer contributions to the NYCES.
  However,  the  economic  assumptions  that  are  used  for determining
employer contributions do not develop risk-adjusted economic  values  of
benefits.   Such risk-adjusted, economic values of benefits would likely
differ significantly from those developed by the budgetary models.
  STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the  Chief
Actuary  for  the New York City Retirement Systems. I am a Fellow of the
Society of Actuaries and a Member of the American Academy of  Actuaries.

S. 4714--A                          8

I  meet the Qualification Standards of the American Academy of Actuaries
to render the actuarial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
during the 2014 Legislative Session. It is Fiscal  Note  2014-04,  dated
January  30,  2014,  prepared by the Chief Actuary for the New York City
Employees' Retirement System, the New  York  City  Teachers'  Retirement
System,  the New York City Board of Education Retirement System, the New
York City Police Pension Fund and the New York Fire  Deportment  Pension
Fund.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill would amend Section 1000 of the Retirement and Social Secu-
rity Law to allow active members of public  retirement  systems  of  New
York  State  to  claim  service credit for up to three years of military
service, regardless of when it was performed. Currently, active  members
can  receive  service  credit  for  military service performed, but only
during specified periods of war. A member must have at least five  years
of  credited service to be eligible and make application for such credit
before the effective date of retirement. To obtain such credit, a member
must make payments as required in Section 1000  of  the  Retirement  and
Social  Security  Law. Tier 1, 2, 3, 4 and 5 members are required to pay
three percent of salary earned during  the  twelve  months  of  credited
service immediately preceding the year in which a claim is made for each
year of military service. Tier 6 members are required to pay six percent
of salary earned during the twelve months of credited service immediate-
ly preceding the year in which a claim is made for each year of military
service.
  It is not possible to determine the total annual cost to the employers
of  members  of the New York State Teachers' Retirement System since the
total amount of service credit which would be claimed  under  this  bill
cannot  be  estimated.  However, the cost to the employers of members of
the New York State  Teachers'  Retirement  System  is  estimated  to  be
$21,700  per  year of service credited for Tier 1 and 2 members, $20,500
per year of service credited for Tier 3 and 4 members, $20,400 per  year
of  service  credited for Tier 5 members and $15,000 per year of service
credited for Tier 6 members if this bill is enacted. These  costs  would
be  offset by member payments required under Section 1000 of the Retire-
ment and Social Security Law.
  The source of this estimate is Fiscal Note 2014-15 dated February  24,
2014  prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2014 Legislative Session.
I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
Retirement  System.  I  am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of  Actu-
aries to render the actuarial opinion contained herein.

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