S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5450--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2023
                                ___________
 
 Introduced  by M. of A. DeSTEFANO, BYRNES, SIMPSON, McDONOUGH, GALLAHAN,
   THIELE, J. A. GIGLIO, TANNOUSIS, MORINELLO, HAWLEY,  PALMESANO,  SMUL-
   LEN,  BRABENEC, SMITH, DURSO, J. M. GIGLIO, ANGELINO, SILLITTI, STERN,
   JONES, K. BROWN, BENDETT,  E. BROWN,  GRAY,  MAHER,  GANDOLFO,  TAGUE,
   SANTABARBARA,  BEEPHAN, MCGOWAN, FLOOD, KELLES, LEMONDES, ZEBROWSKI --
   read once and referred to the Committee on Governmental  Employees  --
   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
   establishing  a  retirement service credit for volunteer fire or emer-
   gency service
 
   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 20-A to read as follows:
 
                               ARTICLE 20-A
       CREDIT FOR NEW YORK STATE VOLUNTEER FIRE OR EMERGENCY SERVICE
 
 SECTION 1050. NEW YORK STATE VOLUNTEER FIRE OR EMERGENCY SERVICE CREDIT.
   §  1050. NEW YORK STATE VOLUNTEER FIRE OR EMERGENCY SERVICE CREDIT. 1.
 FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   (A) "PUBLIC RETIREMENT SYSTEM OF THE STATE" SHALL HAVE THE SAME  MEAN-
 ING  AS  SUCH  TERM  IS  DEFINED PURSUANT TO SUBDIVISION TWENTY-THREE OF
 SECTION FIVE HUNDRED ONE OF THIS CHAPTER.
   (B) "MEMBER" SHALL MEAN A MEMBER OF A PUBLIC RETIREMENT SYSTEM OF  THE
 STATE.
   2. NOTWITHSTANDING ANY LAW TO THE CONTRARY, A MEMBER SHALL BE ELIGIBLE
 FOR  CREDIT FOR VOLUNTEER FIRE OR EMERGENCY SERVICE AS PROVIDED PURSUANT
 TO THIS SECTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08016-04-3
              

 A. 5450--A                          2
 
   3. A MEMBER, UPON APPLICATION TO A PUBLIC  RETIREMENT  SYSTEM  OF  THE
 STATE,  MAY  OBTAIN  ONE  YEAR OF SERVICE CREDIT FOR EVERY FIVE YEARS OF
 VOLUNTEER FIRE OR EMERGENCY SERVICE PROVIDED  IN  THE  STATE.  A  MEMBER
 SHALL  BE LIMITED UNDER THIS SECTION TO OBTAIN NOT MORE THAN THREE YEARS
 OF  SERVICE  CREDIT  FOR  A  TOTAL OF FIFTEEN YEARS OF VOLUNTEER FIRE OR
 EMERGENCY SERVICE PROVIDED.    PROOF  OF  VOLUNTEER  FIRE  OR  EMERGENCY
 SERVICE SHALL BE CERTIFIED BY THE VOLUNTEER AGENCY FOR WHICH SUCH MEMBER
 VOLUNTEERED HIS OR HER TIME.
   4.  A  MEMBER  SHALL HAVE AT LEAST FIVE YEARS OF CREDITED SERVICE, NOT
 INCLUDING SERVICE GRANTED HEREUNDER, TO BE ELIGIBLE  TO  RECEIVE  CREDIT
 PURSUANT TO THIS SECTION.
   5.  TO  OBTAIN CREDIT PURSUANT TO THIS SECTION, A MEMBER SHALL PAY THE
 APPROPRIATE RETIREMENT SYSTEM, FOR DEPOSIT IN THE FUND USED  TO  ACCUMU-
 LATE EMPLOYER CONTRIBUTIONS, A SUM EQUAL TO THE PRODUCT OF THE NUMBER OF
 YEARS  OF  VOLUNTEER  FIRE  OR EMERGENCY SERVICE BEING CLAIMED AND THREE
 PERCENT OF SUCH MEMBER'S COMPENSATION EARNED DURING THE TWELVE MONTHS OF
 CREDITED SERVICE IMMEDIATELY PRECEDING THE DATE THAT  SUCH  MEMBER  MADE
 APPLICATION FOR CREDIT PURSUANT TO THIS SECTION. IF PERMITTED BY RULE OR
 REGULATION  OF  THE  APPLICABLE RETIREMENT SYSTEM, A MEMBER MAY PAY SUCH
 MEMBER COSTS BY PAYROLL DEDUCTION FOR A PERIOD WHICH  SHALL  NOT  EXCEED
 THE  TIME  PERIOD  OF VOLUNTEER FIRE OR EMERGENCY SERVICE TO BE CREDITED
 PURSUANT TO THIS SECTION. IN THE EVENT SUCH 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 PROPOR-
 TIONAL TO THE TOTAL AMOUNT OF THE PAYMENTS MADE PRIOR TO RETIREMENT.
   6. IN NO EVENT SHALL THE CREDIT GRANTED PURSUANT TO THIS SECTION, WHEN
 ADDED TO CREDIT GRANTED FOR VOLUNTEER FIRE OR EMERGENCY SERVICE WITH ANY
 RETIREMENT SYSTEM OF THIS STATE PURSUANT TO ANY OTHER PROVISION OF  LAW,
 EXCEED A TOTAL OF THREE YEARS.
   7.  TO  BE  ELIGIBLE TO RECEIVE CREDIT FOR VOLUNTEER FIRE OR EMERGENCY
 SERVICE UNDER THIS SECTION, A MEMBER SHALL  MAKE  APPLICATION  FOR  SUCH
 CREDIT BEFORE THE EFFECTIVE DATE OF RETIREMENT.
   8.  ALL  COSTS  FOR  SERVICE  CREDITED  TO  A  MEMBER PURSUANT TO THIS
 SECTION, OTHER THAN THE MEMBER COSTS SET FORTH IN  SUBDIVISION  FIVE  OF
 THIS SECTION, SHALL BE PAID BY THE STATE AND ALL EMPLOYERS WHICH PARTIC-
 IPATE IN THE RETIREMENT SYSTEM IN WHICH SUCH MEMBER IS GRANTED CREDIT.
   9.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, IN THE EVENT OF DEATH
 PRIOR TO RETIREMENT, AMOUNTS PAID BY A MEMBER FOR THE PURCHASE OF VOLUN-
 TEER FIRE OR EMERGENCY SERVICE CREDIT PURSUANT TO THIS SECTION SHALL  BE
 REFUNDED,  WITH  INTEREST, TO THE EXTENT THE VOLUNTEER FIRE OR EMERGENCY
 SERVICE PURCHASED WITH SUCH AMOUNTS DOES NOT  PRODUCE  A  GREATER  DEATH
 BENEFIT  THAN WOULD HAVE BEEN PAYABLE HAD SUCH MEMBER NOT PURCHASED SUCH
 CREDIT.
   10. SERVICE CREDIT GRANTED PURSUANT TO THIS SECTION SHALL BE  CREDITA-
 BLE IN ANY SPECIAL TWENTY OR TWENTY-FIVE YEAR RETIREMENT PLAN.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would allow members of any New York State retirement system
 to purchase service credit for time rendered in volunteer fire or  emer-
 gency  service. A member may obtain one year of service credit for every
 five years of volunteer fire or emergency service, not to  exceed  three
 years of total credit. Members must have at least five years of credited
 service  (not including volunteer service). Members would be required to
 A. 5450--A                          3
 
 make a payment of three percent of their most  recent  compensation  per
 year  of  additional service credit granted by this bill. Service credit
 would be creditable  on  regular  age-based  and  special  service-based
 plans.    Members may not be credited more than one year for all service
 obtained in a calendar year.
   This bill would not be consistent with the Retirement System's  policy
 that  service  credit may only be granted for service for which a salary
 has been paid.
   Insofar as this proposal affects the New York State and Local  Employ-
 ees' Retirement System (NYSLERS), all costs would be shared by the State
 of  New  York  and  the local participating employers in the NYSLERS. If
 enacted during the 2023 legislative session, it is  estimated  that  the
 past  service  cost will be 18% of an affected member's compensation for
 each year of service credit that is purchased.
   Insofar as this proposal affects the New York State and  Local  Police
 and  Fire Retirement System (NYSLPFRS), all costs would be shared by the
 State of New York and the local participating employers in the NYSLPFRS.
 If enacted during the 2023 legislative session, it is estimated that the
 past service cost will be 22% of an affected member's  compensation  for
 each year of service credit that is purchased.
   Further,  we  anticipate  additional administrative costs to implement
 the provisions of this legislation.
   The exact number of current members as  well  as  future  members  who
 could be affected by this legislation cannot be readily determined.
   Summary of relevant resources:
   Membership  data as of March 31, 2022 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2022  Report  of the Actuary and the 2022 Annual Comprehensive Financial
 Report.
   The actuarial assumptions and methods used are described in the  2020,
 2021,  and  2022  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, 2022
 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 March 3, 2023, and intended for use  only  during
 the  2023  Legislative  Session, is Fiscal Note No. 2023-69, prepared by
 the Actuary for the New York State and Local Retirement System.