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

                                  7023

                            I N  S E N A T E

                             March 16, 2016
                               ___________

Introduced  by  Sen.  YOUNG  -- 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
  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:

  Section 1. The retirement and social security law is amended by adding
a new article 26 to read as follows:
                               ARTICLE 26
                          BENEFIT ENHANCEMENTS
SECTION 1400. NON-CONTRIBUTORY BASIS.
        1401. COLLECTIVE BARGAINING.
        1402. PAST SERVICE COSTS.
  S  1400. NON-CONTRIBUTORY BASIS. (A) NOTWITHSTANDING THE PROVISIONS OF
THIS CHAPTER OR ANY OTHER LAW TO THE CONTRARY A  PARTICIPATING  EMPLOYER
IN  THE  NEW  YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM MAY
ELECT TO PROVIDE ITS EMPLOYEES WHO ARE MEMBERS OF  THE  OPTIONAL  TWENTY
YEAR  RETIREMENT PLAN FOR POLICE AND FIREFIGHTERS ELIGIBILITY TO PARTIC-
IPATE ON A NON-CONTRIBUTORY BASIS.
  (B) NO MEMBER WHO PARTICIPATES  IN  THIS  NON-CONTRIBUTORY  RETIREMENT
PLAN SHALL BE ENTITLED TO A REFUND OF PREVIOUS CONTRIBUTIONS MADE TO THE
CONTRIBUTORY TWENTY YEAR RETIREMENT PLAN.
  S 1401. COLLECTIVE BARGAINING. A DEMAND IN COLLECTIVE BARGAINING NEGO-
TIATIONS FOR THE ADDITIONAL BENEFIT PROVIDED BY SECTION FOURTEEN HUNDRED
OF  THIS ARTICLE SHALL NOT BE SUBJECT TO THE PROVISIONS OF PARAGRAPH (B)
OR (C) OF SUBDIVISION FOUR OF SECTION TWO  HUNDRED  NINE  OF  THE  CIVIL
SERVICE  LAW,  NOR  SHALL  SUCH  DEMAND  BE SUBJECT TO ANY PROVISION FOR
INTEREST ARBITRATION CONTAINED IN ANY LOCAL LAW, RESOLUTION OR ORDINANCE
ADOPTED BY ANY  GOVERNMENTAL  ENTITY  PURSUANT  TO  SUBDIVISION  ONE  OF
SECTION TWO HUNDRED TWELVE OF THE CIVIL SERVICE LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08156-04-6
              

S. 7023                             2

  S 1402. PAST SERVICE COSTS. ANY PARTICIPATING EMPLOYER THAT ELECTS THE
ADDITIONAL  BENEFITS  PROVIDED BY THIS ARTICLE MAY ALSO ELECT TO PAY THE
PAST SERVICE COST ASSOCIATED WITH THIS BENEFIT IN  TEN  ANNUAL  INSTALL-
MENTS.
  S 2. This act shall take effect immediately.
  FISCAL  NOTE.--  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-contributory 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, 2017, the contribution
increases, as a percentage of salary, will be 0.3%  for  tier  3  384-d,
1.0%  for  tier  3  384-e, 3.4% for tier 5 384-d, 3.5% for tier 5 384-e,
6.5% for tier 6 384-d and 6.6% for tier 6 384-e. These additional annual
costs will be borne by the employers which elect to provide  this  bene-
fit.
  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, 2015  actuarial  valu-
ation.    Distributions  and  other  statistics can be found in the 2015
Report of the  Actuary  and  the  2015  Comprehensive  Annual  Financial
Report.
  The  actuarial  assumptions and methods used are described in the 2015
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, 2015
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  February  4,  2016,  and intended for use only
during the  2016  Legislative  Session,  is  Fiscal  Note  No.  2016-37,
prepared  by  the  Actuary  for  the New York State and Local Retirement
System.