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

                                  7051

                            I N  S E N A T E

                              March 9, 2010
                               ___________

Introduced  by  Sen.  SAVINO -- (at request of the State Comptroller) --
  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
  allowing members of the New York  state  and  local  police  and  fire
  retirement  system  who  retire  to  elect  the alternative option and
  providing for cessation of membership in such system  upon  occurrence
  of certain conditions

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

  Section 1. Subdivision a-1 of section 514 of the retirement and social
security law, as added by chapter 106 of the laws of 1996, is amended to
read as follows:
  a-1. A member of the New York state and  local  employees'  retirement
system OR THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM
who  retires  pursuant  to the provisions of this article, may elect, in
lieu of the options set forth in subdivision  a  of  this  section,  the
following optional settlement:
  Alternative  Option.  The actuarial equivalent of the member's retire-
ment allowance at the time of retirement,  in  the  form  of  a  smaller
retirement  allowance  payable  to  such members for life and some other
benefit or benefits paid either to the  member  or  to  such  person  or
persons  as  he shall nominate, provided such other benefit or benefits,
together with such smaller allowance, shall be certified by the  actuary
of  such  retirement  system  to be of equivalent actuarial value to his
retirement allowance and shall be approved by the head of  such  retire-
ment  system and provided further that nothing herein shall require such
retirement system to pay a benefit in violation  of  paragraph  nine  of
subsection a of section four hundred one of the Internal Revenue Code of
1986, as amended, 26 U.S.C. S 401(a)(9).
  S  2.  The  opening  paragraph  of section 517-a of the retirement and
social security law, as added by chapter 774 of the  laws  of  1986,  is
amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16021-02-0
              

S. 7051                             2

  With  respect  to  the New York state employees' retirement system AND
THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM,  member-
ship in the retirement system shall cease upon the occurrence of any one
of the following conditions:
  S 3. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would make technical changes to Article 14 of the Retirement
and  Social Security Law affecting members who joined the New York State
and Local Police and Fire Retirement System (PFRS) on and after July  1,
2009. Members would be allowed to elect an actuarially equivalent alter-
nate  retirement  option  upon  retirement.  Further, it would establish
certain conditions upon which membership shall cease.
  If this bill is enacted, there would be no additional costs.
  This estimate, dated March 3, 2010, and intended for use  only  during
the 2010 Legislative Session, is Fiscal Note Number 2010-117 prepared by
the  Actuary for the New York State and Local Police and Fire Retirement
System.