S T A T E O F N E W Y O R K
________________________________________________________________________
7780--A
2009-2010 Regular Sessions
I N A S S E M B L Y
April 23, 2009
___________
Introduced by M. of A. TOWNS, ESPAILLAT, WALKER, COOK, EDDINGTON, McDO-
NOUGH, ERRIGO -- Multi-Sponsored by -- M. of A. PHEFFER, TOWNSEND --
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
extending certain benefits to members who rendered service during
periods of conflict
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 2 of section 1000 of the retirement and social
security law, as added by chapter 548 of the laws of 2000, is amended to
read as follows:
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] DURING the military [conflicts] CONFLICT
PERIODS referenced below, as follows:
(a) THE PERIOD OF 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 expedition-
ary medal, the navy expeditionary medal, or the marine corps expedition-
ary medal];
(b) THE PERIOD OF 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, nine-
teen hundred eighty-three[, as established by receipt of the armed forc-
es expeditionary medal, the navy expeditionary medal, or the marine
corps expeditionary medal];
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10244-03-9
A. 7780--A 2
(c) THE PERIOD OF 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, nine-
teen hundred ninety[, as established by receipt of the armed forces
expeditionary medal, the navy expeditionary medal, or the marine corps
expeditionary medal]; or
(d) THE PERIOD OF hostilities participated in by the military forces
of the United States, IN IRAQ, KUWAIT, SAUDI ARABIA, BAHRAIN, QATAR, THE
UNITED ARAB EMIRATES, OMAN, THE GULF OF ADEN, THE GULF OF OMAN, THE
PERSIAN GULF, OR THE RED SEA, AND THE AIRSPACE ABOVE THESE LOCATIONS,
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].
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after December 21, 1998.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would extend the benefits of Chapter 548, Laws of 2000 to
members and retirees of public retirement systems in New York State who
rendered military service during the periods of conflict in Lebanon,
Grenada, Panama and the Persian Gulf, but who were not assigned to the
theatres of operations. However, the total service credit granted for
any military service shall not exceed three (3) years. Members must have
at least five years of credited service (not including military
service). Retirees must have retired on or after December 21, 1998. The
recalculated annual allowance will be retroactive to the date of retire-
ment. Members and retirees would be required to make a payment of three
percent of their most recent compensation per year of additional service
credit granted by this bill.
If this bill is enacted, insofar as this proposal affects the New York
State and Local Employees' Retirement System (ERS), there would be an
estimated past service cost which would exceed 10 percent of each
members' salary 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), the cost per person would vary great-
ly. If a member purchases this additional service credit to enable
immediate retirement, the cost would exceed 30% of the member's salary
for each year of additional service credit that is purchased. For a
member on a retirement plan which is capped after reaching a certain
number of years of service credit, there would be no benefit from this
additional service credit if they will or already have reached the cap
without this service credit.
If less than 2,500 members and post 12/21/1998 retirees have such
military service and will benefit by purchasing the service credit,
there will be an estimated first year cost of approximately $1.9 million
to the State of New York, $2.4 million to participating employers in the
New York State and Local Employees' Retirement System and $.9 million to
the participating employers in the New York State and Local Police and
Fire Retirement System.
In addition to the above costs, there would be additional costs for
future members of the Retirement System's who have such military
service.
This estimate, dated April 16, 2009 and intended for use only during
the 2009 Legislative Session, is Fiscal Note No. 2009-181, prepared by
A. 7780--A 3
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:
This bill would amend subdivision 2 of section 1000 of the Retirement
and Social Security Law to permit members of public retirement systems
of New York State to claim retirement credit for up to three years of
military service performed during specified periods of conflict in Leba-
non, Grenada, Panama, and the Persian Gulf, regardless of whether of not
an expeditionary medal was received, or the member served in the theater
of operations. 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, the member shall
deposit in the pension accumulation fund a sum equal to the product of
the period of military service being claimed and three percent of his or
her current annual full-time rate of compensation. A member who retired
on or after December 21, 1998 and before the effective date of this act
may apply for credit pursuant to this section within one year of the
effective date of this act.
The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $8.7
million or .06% of payroll if this bill is enacted.
The source of this estimate is Fiscal Note 2009-76 dated June 9, 2009
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2009 Legislative Session.