S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4460--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2021
                                ___________
 
 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
   transfer of retirement membership for certain employees of SUNY within
   the professional, scientific and technical bargaining unit
 
   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 section 618 to read as follows:
   § 618. TRANSFER OF MEMBERSHIP INTO NEW YORK STATE AND LOCAL EMPLOYEES'
 RETIREMENT SYSTEM. A. DEFINITIONS. WHENEVER USED IN THIS SECTION:
   1.  THE  TERM  "ELIGIBLE  EMPLOYEE"  SHALL MEAN A PERSON WHO AS OF THE
 EFFECTIVE DATE OF THIS SECTION IS AN EMPLOYEE OF THE STATE UNIVERSITY OF
 NEW YORK IN A POSITION WITHIN THE PROFESSIONAL, SCIENTIFIC AND TECHNICAL
 BARGAINING UNIT AND WHO IS, AS OF SAID EFFECTIVE DATE, A MEMBER  OF  THE
 OPTIONAL  RETIREMENT  PROGRAM  AND  WHO  IS A REGISTERED NURSE WHO FIRST
 BECAME AN EMPLOYEE OF THE STATE UNIVERSITY OF NEW YORK  AT  STONY  BROOK
 HOSPITAL  ON  A  DATE BETWEEN JANUARY FIRST, NINETEEN HUNDRED NINETY-SIX
 AND DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-NINE AND WHO IS STILL
 EMPLOYED BY THE STATE UNIVERSITY OF NEW YORK AS OF THE DATE SAID EMPLOY-
 EE FILES AN APPLICATION PURSUANT TO SUBDIVISION B OF THIS SECTION;
   2. THE TERM "OPTIONAL RETIREMENT  PROGRAM"  SHALL  MEAN  THE  OPTIONAL
 RETIREMENT PROGRAM ESTABLISHED PURSUANT TO ARTICLE EIGHT-B OF THE EDUCA-
 TION LAW.
   B.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW, AN ELIGIBLE EMPLOYEE
 SHALL BE ALLOWED TO BECOME A MEMBER OF THE  NEW  YORK  STATE  AND  LOCAL
 EMPLOYEES'  RETIREMENT SYSTEM BY FILING AN APPLICATION WITH SAID RETIRE-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08552-04-2
 A. 4460--A                          2
              

 
 MENT SYSTEM NO LATER THAN DECEMBER THIRTY-FIRST,  TWO  THOUSAND  TWENTY-
 THREE.
   C. AN ELIGIBLE EMPLOYEE WHO FILES AN APPLICATION TO BECOME A MEMBER OF
 THE  NEW  YORK  STATE  AND  LOCAL  EMPLOYEES' RETIREMENT SYSTEM SHALL BE
 DEEMED TO BE A MEMBER OF THAT RETIREMENT SYSTEM WITH A DATE  OF  MEMBER-
 SHIP  AS  OF  THE  DATE SAID ELIGIBLE EMPLOYEE WAS FIRST EMPLOYED BY THE
 STATE UNIVERSITY OF NEW YORK. THE ELIGIBLE EMPLOYEE'S MEMBERSHIP IN  THE
 OPTIONAL RETIREMENT PROGRAM SHALL TERMINATE AS OF THE DATE SAID APPLICA-
 TION IS FILED.
   D. AN ELIGIBLE EMPLOYEE WHO BECOMES A MEMBER OF THE NEW YORK STATE AND
 LOCAL  EMPLOYEES'  RETIREMENT  SYSTEM  PURSUANT TO SUBDIVISION B OF THIS
 SECTION MAY ELECT TO PURCHASE CREDIT FOR PREVIOUS SERVICE FOR ANY PERIOD
 DURING WHICH SAID EMPLOYEE WAS  A  MEMBER  OF  THE  OPTIONAL  RETIREMENT
 PROGRAM  BY  FILING  AN  APPLICATION  WITH  THE NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM NO LATER THAN  DECEMBER  THIRTY-FIRST,  TWO
 THOUSAND  TWENTY-THREE AND BY PAYING TO SAID RETIREMENT SYSTEM AN AMOUNT
 AS DETERMINED BY THE COMPTROLLER EQUAL TO THE FULL COST OF SUCH PREVIOUS
 SERVICE CREDIT PURCHASED WHICH SHALL INCLUDE AN AMOUNT EQUIVALENT TO THE
 ADDITIONAL COSTS TO THE EMPLOYER OF PROVIDING RETIREMENT SERVICE  CREDIT
 TO  SUCH  EMPLOYEE  WHILE  SUCH  EMPLOYEE  WAS  A MEMBER OF THE OPTIONAL
 RETIREMENT PROGRAM AS DETERMINED  BY  THE  ACTUARY  FOR  THE  RETIREMENT
 SYSTEM. SAID PAYMENT MAY BE MADE BY A TRANSFER OF FUNDS FROM THE EMPLOY-
 EE'S OPTIONAL RETIREMENT PROGRAM ACCOUNT TO THE NEW YORK STATE AND LOCAL
 EMPLOYEES'  RETIREMENT  SYSTEM.  SAID  PAYMENT  MAY  ALSO BE MADE IN ONE
 PAYMENT BY THE EMPLOYEE OR BY PAYROLL DEDUCTION OVER  A  PERIOD  NOT  TO
 EXCEED FIVE YEARS.
   §  2. Notwithstanding any other provision of law to the contrary, none
 of the provisions of this act shall be subject  to  section  25  of  the
 retirement and social security law.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow any employee of the State University of New York
 (SUNY)  who is a registered nurse in a position within the Professional,
 Scientific and Technical bargaining unit, who first became employed with
 SUNY at Stony Brook Hospital between January 1, 1996  and  December  31,
 1999,  and  who  enrolled  in  the Optional Retirement Program (ORP), to
 terminate their membership in the ORP and to be deemed to be a member of
 the New York State and Local Employees' Retirement System (NYSLERS) with
 a date of membership as  of  the  date  of  first  employment  by  SUNY.
 Affected members will be required to pay the entire past service cost as
 determined  by  the  Comptroller  in order to receive retirement service
 credit for any period of service rendered while a member of the ORP.
   If this bill is enacted  during  the  2022  legislative  session,  the
 number  of  employees  who may be affected cannot be readily determined.
 For every employee who does so elect, there will be an  annual  cost  to
 the  State  of  New York of approximately 13.0% of salary beginning with
 the fiscal year ending March 31, 2023.
   In addition to the annual cost discussed above, for every  member  who
 elects  this benefit, there will be a past service cost that will depend
 on the age, service and salary of the member. Members will  be  able  to
 pay  this cost using any of three methods, including a transfer of funds
 from their ORP balance, a one-time payment, or by payroll deduction over
 a period not to exceed five (5) years.
   Summary of relevant resources:
   Membership data as of March 31, 2021 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2021 actuari-
 A. 4460--A                          3
 
 al  valuation.  Distributions  and  other statistics can be found in the
 2021 Report of the Actuary and the 2021 Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2020
 and 2021 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, 2021
 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 January 4, 2022, and intended for use only during
 the  2022  Legislative  Session, is Fiscal Note No. 2022-43, prepared by
 the Actuary for the New York State and Local Retirement System.