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

                                  7909

                            I N  S E N A T E

                              May 21, 2010
                               ___________

Introduced by Sens. SAVINO, BRESLIN, O. JOHNSON, MONTGOMERY, STACHOWSKI,
  STEWART-COUSINS,  THOMPSON  --  (at  request  of the Governor) -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Civil Service and Pensions

AN  ACT  to  provide a temporary retirement incentive for certain public
  employees (Part A); and  to  provide  an  age  55/25  years  temporary
  retirement incentive for certain public employees (Part B)

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

  Section 1. This act enacts into law  components  of  legislation  that
would  enable public employers to offer a temporary retirement incentive
to their employees, as well as to provide an age 55/25  years  temporary
incentive  for  certain  public  employees.  Each  component  is  wholly
contained within a Part identified as Parts A and B. The effective  date
for each particular provision contained within such Part is set forth in
the  last  section  of such part. Any provision in any section contained
within a Part, including the effective date of  the  Part,  which  makes
reference  to a section "of this act", when used in connection with that
particular component, shall be deemed to mean and refer  to  the  corre-
sponding  section  of the Part in which it is found, unless noted other-
wise. The benefits of this act shall not be  applicable  to  anyone  who
first  became  a member of a public retirement system of the state on or
after January first, two thousand ten.
  S 2. Legislative findings. The legislature finds and declares that the
retirement benefits provided for in this act  are  designed  to  achieve
cost-savings for public employers and to avoid layoffs of public employ-
ees  in  this  time  of fiscal need. Therefore, the retirement incentive
benefit provided for in Part A of this  act  and  the  age  55/25  years
retirement  benefit provided for in Part B of this act are intended only
to be temporary in nature for employees who are eligible to receive  and
qualify  for  the  applicable benefit during the applicable time periods
specified within each Part.  Further,  nothing  in  this  act  shall  be
construed  to create an expectation of a future or continuing retirement
benefit for any public employee who is not eligible to receive and qual-

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

                                                           LBD12220-06-0

S. 7909                             2

ify for the retirement benefits in this act during the  applicable  time
periods.

                                 PART A

  Section 1. Definitions. As used in this act, unless the context clear-
ly requires otherwise:
  a.  "Retirement  system" means the New York state and local employees'
retirement system, the New York state teachers' retirement  system,  the
New  York  city  teachers' retirement system, the New York city board of
education retirement system or the New York city  employees'  retirement
system,  exclusive  of  the  retirement  plans  established  pursuant to
sections 13-156 and 13-157 of the administrative code of the city of New
York.
  b. "Teachers' retirement system" means the New  York  state  teachers'
retirement system or the New York city teachers' retirement system.
  c. "Optional retirement program" means the programs established pursu-
ant  to the provisions of section 181, 391 or 6251 of the education law;
or continued pursuant to section 3 of chapter 980 of the laws of 1962.
  d. "State employer" means (a) the executive branch of the  state,  (b)
the state-operated institutions of the state university of New York, (c)
the  statutory and contract colleges operated pursuant to section 357 of
the education law, (d) the state university construction  fund  (herein-
after  referred  to in this act as the "fund"), (e) a cooperative exten-
sion association (hereinafter referred to in this act  as  the  "associ-
ation"), (f) the city university of New York as defined in subdivision 2
of  section 6202 of the education law, (g) the unified court system, (h)
the senate, (i) the assembly, and (j) joint legislative employers.
  e. (a) "Participating employer" means an employer, other than a  state
employer,  which  participates  in  a retirement system; such term shall
include a community college operating under the  program  of  the  state
university of New York.
  (b)  "Educational  employer" means a participating employer which is a
school district, a board of cooperative educational  services,  a  voca-
tional education and extension board, an institution for the instruction
of the deaf and of the blind as enumerated in section 4201 of the educa-
tion law, or a school district as enumerated in section 1 of chapter 566
of the laws of 1967, as amended.
  f.  "Eligible employee" means a person who is a member of a retirement
system or a participant in an optional  retirement  program  who  is  an
employee in the executive branch of a state employer or an employee of a
state employer or a participating employer which makes an election under
this  section  or  section  four  of  this  act, but such term shall not
include the following persons:
  (a) elected officials, judges or justices appointed to or serving in a
court of record and acting village justices;
  (b) chief administrative officers  of  participating  employers  which
participate in a teachers' retirement system;
  (c)  officers  described  in  sections  4, 41-a, 46, 61, 70, 70-a, 169
(including those officers whose salary is established pursuant to salary
plans under subdivision 3 of section 169),  180  and  subdivision  1  of
section  41  of  the  executive  law  and  any agency or department head
appointed by the governor, comptroller or attorney general;
  (d) appointed members of boards or commissions any  of  whose  members
are appointed by the governor or by another state officer or body;

S. 7909                             3

  (e)  nonjudicial  officers  and  employees of the unified court system
unless the chief administrator of the courts elects as provided  herein,
which election shall cover only nonjudicial officers and employees hold-
ing  positions  in  any  title  in the classified service of the unified
court system;
  (f)  officers  or  employees  of the senate unless the senate adopts a
resolution authorizing the temporary president to file the  election  as
provided in this subdivision;
  (g) officers or employees of the assembly unless the assembly adopts a
resolution  authorizing the speaker of the assembly to file the election
as provided in this subdivision; and
  (h) officers or employees of joint legislative employers unless:
  (i) with respect to officers or employees of the legislative  library,
legislative  messenger  service, legislative health service, legislative
ethics commission, the legislative bill  drafting  commission,  and  the
joint  line  of  the  legislative task force on demographic research and
reapportionment, the senate and assembly adopt a  concurrent  resolution
authorizing the temporary president of the senate and the speaker of the
assembly to jointly file an election as provided in this subdivision;
  (ii) with respect to officers or employees of components of the senate
as  identified pursuant to section 90 of the legislative law, the senate
adopts a resolution authorizing  the  temporary  president  to  file  an
election  for  officers  or  employees of those components designated in
such resolution; and
  (iii) with respect to officers  or  employees  of  components  of  the
assembly  as  identified  pursuant to section 90 of the legislative law,
the assembly adopts a resolution authorizing the speaker of the assembly
to file an election for officers or employees of those components desig-
nated in such resolution.
  Any election under paragraphs (e) through (h) of this  subdivision  to
make  available  the  retirement  incentive program provided by this act
shall be in writing and filed with the state comptroller not later  than
ninety  days  after  the effective date of this act. Notwithstanding any
other provision  of  this  act,  each  such  filing  shall  specify  the
commencement date and the length of the open period. Only one open peri-
od  shall  be  made  available  for employees covered by elections under
paragraphs (e) through (h) of this subdivision.
  For the purposes of such paragraphs (f), (g) or (h) of  this  subdivi-
sion, an employee of the legislature shall be as such term is defined in
section 7-a, 7-b or 7-d of the legislative law or by any other provision
of law which classifies employees of an entity to be legislative employ-
ees  for  all purposes, but shall not include senators or members of the
assembly. The term "joint legislative employer" shall  mean  legislative
commissions,  committees,  task forces, councils or similar bodies whose
membership is comprised of both senators and assembly members, or  which
consist  of  commissioners,  or  the  majority  of  whose  membership is
appointed by one or more of the following: the  temporary  president  of
the  senate,  the  speaker  of  the assembly, the minority leader of the
senate, and/or the minority leader of the assembly. The temporary presi-
dent of the senate and the speaker of the assembly shall  be  the  joint
legislative  employer of the employees of the legislature referred to in
sections 7-a and 7-b of the legislative law.
  g. "Eligible title" means any title where a certain  number  of  posi-
tions  in that title, as identified by agency, department, work location
or appointing authority, college or campus, as the case  may  be,  would
otherwise  be identified for layoff but for this act because of economy,

S. 7909                             4

consolidation or abolition of functions, curtailment  of  activities  or
otherwise.  However, an eligible title can also include a title as iden-
tified by agency, department, work location or appointing  authority  in
which  positions  would  not  be  eliminated but into which employees in
titles affected by layoff can be transferred or reassigned  pursuant  to
the civil service law, rule or regulation. The determination of eligible
titles  shall  be  made by: (a) the appointing authority, subject to the
approval of the director of state operations for titles within the exec-
utive branch, (b)  the  board  of  trustees  for  the  state  university
(including  the  association) subject to the approval of the director of
state operations, the fund, the city university of New York and of  each
community  college  operating under the program of the state university,
(c) the person or persons who elect under paragraphs (e) through (h)  of
subdivision f of this section to offer the retirement incentive provided
by  this  act,  and  (d) the chief executive officer or other comparable
official for participating employers other than the community colleges.
  h. "College faculty" means an employee, not in the classified service,
of a state employer described in paragraphs (b), (c), (d), (e)  and  (f)
of  subdivision  d  of  this  section or of a community college who is a
member of a teachers' retirement system, the New York  state  and  local
employees'  retirement system or a participant in an optional retirement
program.
  i. "Active service" means service while being  paid  on  the  payroll,
provided  that  (a)  a  leave of absence with pay shall be deemed active
service; (b) other approved leave without pay not to exceed twelve weeks
from February 1, 2010 and the commencement of the designated open  peri-
od;  and  (c) the period of time subsequent to the June 2010 school term
and on or before August 31,  2010  for  a  teacher  (or  other  employee
employed  on  a school-year basis) who is otherwise in active service on
February 1, 2010 shall be deemed active service.
  j. "Open period " means the period  beginning  with  the  commencement
date  as  defined in subdivision k of this section and shall not be more
than ninety days nor less than thirty days in length,  as  specified  by
the director of state operations or by a participating employer pursuant
to  section  four  of this act, by the appropriate board of trustees for
the state university (including the association),  the  fund,  the  city
university  of New York or a community college operating under a program
of the state university or by a state employer described  in  paragraphs
(g), (h), (i) and (j) of subdivision d of this section; provided however
that  any such period shall not extend beyond September 30, 2010 for the
executive branch of a state employer described in paragraphs (a) and (b)
of subdivision d of this  section  (except  for  college  faculty),  not
beyond  December  31,  2010 for participating employers, college faculty
for a state employer described in paragraph (b) of subdivision d of this
section, state employers described in paragraphs (c),  (d)  and  (e)  of
subdivision  d  of this section, not beyond January 31, 2011 for college
faculty of an employer described in paragraph (f) of  subdivision  d  of
this  section, and not beyond August 31, 2010 for educational employers.
For the purposes of retirement pursuant to this act, a  service  retire-
ment  application  must  be filed with the appropriate retirement system
not less than fourteen days prior to the effective date of retirement to
become effective, unless a shorter period of  time  is  permitted  under
law.
  k.  "Commencement  date"  means the first day the retirement incentive
authorized by this act shall be made available, which shall mean a  date
on  or  after  the  effective  date  of this act to be determined by the

S. 7909                             5

director of state operations for the executive branch of the state,  and
which  date  shall  occur no later than thirty days before September 30,
2010 or for any participating employer a date on or after the  effective
date  of  this act. For any other state employer, such term shall mean a
date on or after the effective date of this act and shall occur no later
than thirty days before September 30, 2010.  The director of state oper-
ations shall notify the head of the appropriate retirement system of the
date of each open period applicable to employees of the executive branch
or of a state employer prior to the commencement date.
  S 2. The determination of whether a title shall be considered eligible
shall consider whether the reduction of a specific number  of  positions
within a title would unacceptably:
  a.  Directly result in a reduction of the level of service required or
mandated to protect and care for clients of the state or a participating
employer or to assure public health and safety;
  b. Endanger the health or safety  of  employees  of  the  state  or  a
participating employer; or
  c.  Clearly  result in a loss of significant revenue to the state or a
participating employer or result in substantially increased overtime  or
contractual  costs.  However,  upon the determination of the director of
state operations, with respect to employees of the executive branch of a
state employer, any titles may be determined eligible if  the  vacancies
created  can  be  controlled  by  the  use  of  transfer or reassignment
provisions of the civil service  law,  rules  or  regulations  or  other
deployment of state employees.
  S 3. a. Eligibility for inclusion in the retirement incentive provided
by  section  six  of this act shall be determined: (a) by seniority: for
participating employers and for state employers described in  paragraphs
(a),  (b), (c), (d), (e) and (f) of subdivision d of section one of this
act, other than for college faculty; seniority shall mean  the  date  of
original  permanent  appointment  in  the  civil  service  of  the state
adjusted to include veteran's credits for those entitled to receive such
credits pursuant to sections 80, 80-a and  85,  if  applicable,  of  the
civil service law, as established in the official records of the depart-
ment  of  civil service, regardless of the jurisdictional classification
of the position or the status of the incumbent;  (b)  by  seniority,  as
applicable  for  the  unified  court  system;  (c)  for  state employers
described in paragraphs (h), (i) and (j) of subdivision d of section one
of this act as determined by the person or persons who make the election
to offer the retirement incentive; and (d) for college faculty,  by  the
board  of  trustees of the state university, city university and of each
community college operating under the program of the state university.
  b. All eligible employees serving in eligible titles desiring to avail
themselves of the retirement incentive provided by section six  of  this
act shall provide written notice to his or her employer on or before the
twenty-first day preceding the end of the open period, or before the end
of  the  applicable open period as such open period is determined by the
director of state operations. Failure to  provide  such  written  notice
shall  render  the  employee  ineligible  for  the  retirement incentive
provided by this act.
  S 4. a. On or before August 31, 2010, a participating  employer  or  a
state  employer  described  in  paragraphs (b), (c), (d), (e) and (f) of
subdivision d of section one of  this  act  may  elect  to  provide  its
employees  the  retirement  incentive  authorized by this act by (a) the
enactment of a local law or (b) in the case of a participating  employer
which  is  not  so  empowered  to  act  by local law or a state employer

S. 7909                             6

described in paragraphs (b), (c), (d), (e) and (f) of subdivision  d  of
section  one of this act, by the adoption of a resolution of its govern-
ing body; provided however, no local law or resolution enacted  pursuant
to  this  section  shall  in  any  manner  supersede  any local charter,
provided further, that for an educational employer such election must be
made by July 30, 2010. The local law or  resolution  shall  specify  the
commencement  date of the program and the length of the open period. For
a community college operating under the program of state  university  of
New  York,  such election shall be made by the board of trustees of such
community college subject to the approval of its sponsor. A copy of such
law or resolution shall be filed with the appropriate retirement  system
or  systems,  and,  if applicable, on forms provided by such system. The
local law or resolution shall be accompanied by  the  affidavit  of  the
chief  executive  officer or other comparable official certifying to the
information contained in subdivision b of this section.
  b. Notwithstanding any other provision of law, the  benefits  provided
by  this  act  shall  not  be  made  available to any person who (a) has
received any retirement incentive authorized by any provision  of  state
law,  or  (b)  who  receives,  has  received or is eligible to receive a
payment in a lump sum or in another form  from  a  retirement  incentive
pursuant  to  the  provisions of a collective bargaining agreement or by
other arrangement with his or her employer, unless such person  files  a
written  statement  with  his  or her employer, a copy of which shall be
forwarded to the appropriate retirement system, that he or she agrees to
waive any right to such payment. A participating employer who  makes  an
election  pursuant  to  this  section  and  who  offers or has offered a
retirement incentive pursuant to the provisions of a collective bargain-
ing agreement or by other arrangement shall prepare, and file with  each
retirement  system,  a  list  containing  the  names and social security
numbers of all persons described in this  subdivision.  A  participating
employer  is  authorized  to  exempt  persons  in  its  employ  from the
provisions of paragraph (b) of this subdivision. Such exemption shall be
made part of the election  made  pursuant  to  this  section;  provided,
however,  that  such  exemption shall not allow any employee who retires
under the provisions of chapter 45 of the laws  of  2010  to  receive  a
retirement incentive authorized by this act.
  c.  Notwithstanding  any  other provision of this act to the contrary,
the mayor of the city of New York may declare employees of the community
colleges of the city university of New York ineligible for  the  retire-
ment incentive provided by this act by filing such notification with the
chancellor  of the city university of New York, with copies to the chair
of the senate finance committee, the chair  of  the  assembly  ways  and
means  committee  and  the  director of the budget, in writing, no later
than the thirtieth day next succeeding the effective date of this act.
  S 5. Notwithstanding any other provision of law, any eligible employee
serving in an eligible title who:
  a. has been continuously in the active service of a state employer  or
of a participating employer from February 1, 2010 to the date immediate-
ly prior to the commencement date of the applicable open period;
  b. files an application for service retirement (or files the appropri-
ate  application  and  authorization  form  with the optional retirement
program and a duly  acknowledged  retirement  incentive  form  for  such
program  with the appropriate personnel office) that is effective during
the open period; and
  c. is otherwise eligible for a service retirement as of the  effective
date  of the application for retirement shall be entitled to the retire-

S. 7909                             7

ment incentive provided in section six of this  act.  If  not  otherwise
eligible  for a service retirement, the following person shall be deemed
to satisfy the eligibility condition of this section: a person who is at
least  age fifty with ten or more years service as of the effective date
of retirement (other than a member of a retirement plan  which  provides
for  half-pay  pension  upon  completion  of  twenty-five  years or less
service without regard to age); a member  of  a  retirement  plan  which
provides  for  half-pay  pension upon completion of twenty-five years of
service without regard to age who has not accrued, excluding  additional
credit  granted  pursuant  to  this  act, the minimum number of years of
service required to retire with an allowance equal to fifty  percent  of
final average salary under such plan, but has, with the inclusion of the
additional  credit provided under this act, accrued such number of years
of credit; or a participant in an  optional  retirement  plan  at  least
fifty  years  of age with ten years of service on an annual salary basis
with his or her employer as of the date of retirement.
  S 6. Notwithstanding any other provision of law, an eligible  employee
serving in an eligible title who is:
  a. A member of a retirement system and who is entitled to a retirement
incentive  pursuant  to section five of this act shall receive a retire-
ment incentive of one-twelfth of a year of additional retirement  credit
for  each year of pension service credited as of the date of retirement,
up to a maximum of three years of retirement service credit at the  time
of retirement, provided, however, that service credit provided under the
provisions of sections 902 and 911 of the retirement and social security
law  shall  not  be  included when calculating the additional retirement
credit awarded pursuant to this act. For the  New  York  city  teachers'
retirement  system,  the  New York city employees' retirement system and
the New York city board of education retirement  system  such  incentive
shall be available for all purposes, including fulfilling the qualifying
service requirements of plan A and C, if applicable.
  An eligible employee who is covered by the provisions of article 15 of
the retirement and social security law shall retire under the provisions
of  article  15 of the retirement and social security law. The amount of
such benefit for an eligible employee who is covered by  article  15  of
the  retirement and social security law and retires under the provisions
of this section (other than a  member  with  thirty  or  more  years  of
service  in the New York state and local employees' retirement system or
a teachers' retirement system) shall be reduced by six percent for  each
of  the first two years by which retirement precedes age sixty-two, plus
a further reduction of three percent for each year by  which  retirement
precedes  age  sixty,  provided, however, the foregoing reductions shall
not apply: (i) in any case where an eligible employee can  retire  after
twenty-five  years of service with immediate payability prior to the age
of sixty-two pursuant to section 604-b  of  the  retirement  and  social
security law or (ii) to any time period subsequent to the point at which
an  eligible employee can retire for service without reduction of his or
her service retirement allowance pursuant to article 16 of  the  retire-
ment  and  social  security  law.  Such  reduction shall be prorated for
partial years. The amount of such benefit for an eligible employee  with
thirty  or  more  years of service who is a member of the New York state
and local employees' retirement system or a teachers' retirement  system
or an eligible employee who is a participant in the optional twenty-five
year early retirement program for certain New York city members governed
by  section 604-c of the retirement and social security law, as added by
chapter 96 of the laws of 1995 or a twenty-five year participant in  the

S. 7909                             8

age  fifty-five  retirement  program  governed  by  section 604-i of the
retirement and social security law, with twenty-five or  more  years  of
service  and  who  is covered by article 15 of the retirement and social
security  law  shall  be  reduced by five percent for each year by which
retirement pursuant to this section precedes age fifty-five. The  amount
of such benefit for an eligible New York city employee with five or more
years of service and who is a participant in the age fifty-seven retire-
ment  program  governed  by  section  604-d of the retirement and social
security law shall be reduced by one-thirtieth for the first  two  years
by which retirement precedes age fifty-seven plus a further reduction of
one-twentieth for each year by which retirement precedes age fifty-five.
Such  reduction  shall  be prorated for partial years. There shall be no
reduction for an eligible New York city employee in a physically  taxing
position  with twenty-five or more years of service and who is a partic-
ipant (i) in the optional twenty-five year early retirement program  for
certain  members  governed by section 604-c of the retirement and social
security law, as added by chapter 96 of the laws of 1995, or (ii) in the
age fifty-seven retirement program governed  by  section  604-d  of  the
retirement and social security law.
  An  eligible  employee  serving in an eligible title who is covered by
article 11 of the retirement and social security law shall retire  under
the provisions of such article. The amount of such benefit for an eligi-
ble employee covered by article 11 of the retirement and social security
law  other than a member of a teachers' retirement system or a member of
the New York state and local employees' retirement system with thirty or
more years of service, a participant  in  the  optional  age  fifty-five
improved  benefit retirement program for certain New York city employees
governed by section 445-d of the retirement and social security law,  as
added  by chapter 96 of the laws of 1995, with twenty-five or more years
of service, or a participant in the optional age  fifty-five  retirement
program for New York city teachers and certain other members governed by
section  445-i  of  the retirement and social security law, with twenty-
five or more years of service, shall be reduced by six percent for  each
of  the  first  two  years  by which retirement pursuant to this section
precedes age sixty-two, plus a further reduction of  three  percent  for
each  year  by  which  retirement  pursuant to this section precedes age
sixty, provided, however, the foregoing reductions shall not apply:  (i)
in  any  case  where  an eligible employee can retire pursuant to a plan
which permits retirement for service with immediate  payability,  exclu-
sive  of  this  act,  prior to the age of fifty-five or (ii) to any time
period subsequent to the point at which an eligible employee can  retire
for service without reduction of his or her service retirement allowance
pursuant  to  article 16 of the retirement and social security law. Such
reduction shall be prorated for partial years. The amount of such  bene-
fit  for  an eligible employee who is a member of a teachers' retirement
system or a member of the New York state and local employees' retirement
system with thirty or more  years  of  service,  a  participant  in  the
optional  age fifty-five improved benefit retirement program for certain
New York city employees governed by section 445-d of the retirement  and
social  security  law,  as added by chapter 96 of the laws of 1995, with
twenty-five or more years of service, or a participant in  the  optional
age fifty-five retirement program for New York city teachers and certain
other  members  governed  by  section 445-i of the retirement and social
security law, with twenty-five or more  years  of  service  and  who  is
covered by article 11 of the retirement and social security law shall be
reduced  by  five  percent for each year by which retirement pursuant to

S. 7909                             9

this section precedes age fifty-five. Such reduction shall  be  prorated
for  partial years. There shall be no reduction for an eligible New York
city employee in a physically taxing position and who is  a  participant
in  the  optional age fifty-five improved benefit retirement program for
certain New York city employees governed by section 445-d of the retire-
ment and social security law, as added by chapter  96  of  the  laws  of
1995, with twenty-five or more years of service.
  An  eligible  employee serving in an eligible title who is not covered
by article 11 or 15 of the retirement  and  social  security  law  shall
retire  under  the provisions of the plan by which he or she is covered.
The amount of such benefit shall be reduced by  five  percent  for  each
year  by  which  retirement pursuant to this section precedes age fifty-
five, provided, however, the foregoing reductions shall not  apply:  (i)
in  any  case  where  an eligible employee can retire pursuant to a plan
which permits retirement for service with immediate  payability,  exclu-
sive  of  this  act,  prior to the age of fifty-five or (ii) to any time
period subsequent to the point at which an eligible employee can  retire
for service without reduction of his or her service retirement allowance
pursuant  to  article 16 of the retirement and social security law. Such
reduction shall be prorated for partial years.
  An eligible employee serving in an eligible title who participates  in
a  retirement  plan  which  provides for a retirement allowance equal to
fifty percent of final average salary upon the completion of twenty-five
years of service without regard to age and who is otherwise eligible  to
retire  shall  retire  under  the provisions of such plan. Such employee
shall, at the time of retirement, be credited with one-twelfth of a year
of additional retirement service credit for each year of service credit-
ed under such plan as of the date of retirement,  up  to  a  maximum  of
three  years  of retirement service credit, subject to the provisions of
subdivision b of this section. If such employee has not accrued, exclud-
ing additional credit granted pursuant to this act, the  minimum  number
of  years of service required to retire with an allowance equal to fifty
percent of final average salary under  such  plan,  but  has,  with  the
inclusion of the additional credit provided under this act, accrued such
number  of  years of credit, the benefit payable shall be the percentage
of final average salary that would  ordinarily  be  applicable  to  such
individual  upon retirement with such amount of credit (including incen-
tive credit), reduced by five per centum per year for each year by which
the number of years of service otherwise  required  to  retire  with  an
allowance equal to fifty percent of final average salary under such plan
exceeds  the amount of service credited to such employee under such plan
at retirement (excluding the  additional  retirement  incentive  service
credit  provided pursuant to this act). Such reduction shall be prorated
for partial years.
  b. A participant in an optional retirement program who is entitled  to
a  retirement  incentive  pursuant  to  section  five  of this act shall
receive an additional employer contribution equal to  an  amount,  which
shall  be  calculated as follows: (one-twelfth for each year of service)
multiplied by (fifteen percent) multiplied by (the  employee's  earnable
annual  salary  rate in effect on March 1, 2010 or the effective date of
this act if the employee retires prior to March 1,  2010),  such  amount
not  to exceed forty-five percent of such salary rate. Such contribution
shall be made to the employee's retirement annuity  under  the  optional
retirement  program  up  to  the  maximum  contribution  allowable under
section 415 of the internal revenue code. Any contribution in excess  of
that  limit  shall be contributed by the employer to an internal revenue

S. 7909                            10

code section 403(b) contract on behalf of the employee to the extent  it
can  be  contributed  on  a  before-tax  basis  under the maximum limits
allowed under the internal revenue code. Contributions in excess of that
amount  shall be paid in cash to the participant in three equal install-
ments during a twenty-four month  period  commencing  on  such  eligible
employee's  effective  date  of  retirement.  Provided,  however, if the
employee is employed by the city university  of  New  York  and  in  the
active service of such employer on October 1, 2010 or the effective date
of  this  act  if  the  employee  retires  prior to October 1, 2010, the
employee's earnable annual salary rate shall be the annual  salary  rate
in effect on such applicable date.
  S 7. a. An employee of a state employer, other than the city universi-
ty  of  New York, who retires pursuant to this act may defer calculation
of the value of accumulated sick leave  credits,  if  any,  and  partic-
ipation in the state health insurance plan.
  b.  Notwithstanding any other provision of law, any termination pay or
leave arising from accrued sick leave or accrued  annual  leave  for  an
eligible  employee  who has elected the retirement incentive provided by
this act and who is a member of the New York city  teachers'  retirement
system  employed by the board of education of the city of New York shall
be paid in three equal installments during a  twenty-four  month  period
commencing on such eligible employee's effective date of retirement.
  c.  An  employee of the city of New York or the city university of New
York, as defined in subdivision 2 of section 6202 of the education  law,
who  retires under the retirement incentive provided by this act, who is
eligible  for  terminal  leave  pursuant  to  an  applicable  collective
bargaining  agreement  or a personnel policy or rule or retirement leave
pursuant to section 3107 of the education law  or  who  has  an  accrued
annual  leave  balance on the effective date of retirement shall be paid
in three equal installments two months, fourteen months and  twenty-four
months following such eligible employee's effective date of retirement.
  S  8.  a. With respect to employees of the executive branch of a state
employer, any position, other  than  a  position  supported  by  special
revenue  funds, vacated as a result of an eligible employee in an eligi-
ble title receiving the retirement incentive provided by section six  of
this  act  shall be eliminated unless such position is identified by the
director of state operations as one into which  another  state  employee
can  be  appointed,  transferred  or  reassigned  pursuant  to the civil
service law, rules or regulations, in which case the former position  of
the  state  employee  so  appointed,  transferred or reassigned shall be
eliminated.
  b. The director of state operations shall  direct  the  department  of
civil  service  to  prepare a report designating the title, grade level,
salary, and classification, according to appointing  authority,  (i)  of
each  position  which  is  eliminated  pursuant to subdivision a of this
section, (ii) of each position into which  another  state  employee  was
appointed,  transferred,  or  reassigned and the former position of such
state employee, and (iii) of each position  which  is  eliminated  as  a
result  of an appointment, transfer or reassignment referred to in para-
graph (ii) of this subdivision. Such report shall be available no  later
than  ninety days after the last date of the open period related to such
positions.
  S 9. Notwithstanding any inconsistent provision of  section  eight  of
this act or any other provision of law:
  a.  A  participating  employer  or a state employer described in para-
graphs (b) through (e) of subdivision d of section one of this act shall

S. 7909                            11

not be required to eliminate the  positions  of  eligible  employees  in
eligible  titles  receiving the retirement incentive provided by section
six of this act if such employer can demonstrate that it will achieve  a
compensation  savings such that the total amount of base salary paid for
the two-year period subsequent to the effective date of  retirement  for
such  eligible  employees in eligible titles to those new hires, if any,
who otherwise would not have been  hired  by  such  employer  after  the
effective  date  of  this  act but for the retirement incentive provided
herein shall be no more than one-half of the total amount of base salary
that would have been paid to such eligible employees from their date  of
retirement  for  such  two-year  period.  Each  such employer shall make
available its plans for achieving these savings.
  b. The city of New York or the city university of New York, as defined
in subdivision 2 of section 6202 of the  education  law,  shall  not  be
required  to  eliminate  the positions of eligible employees in eligible
titles receiving the retirement incentive provided  by  section  six  of
this  act  if  such  participating employer can demonstrate that it will
achieve a compensation or equivalent headcount  savings  such  that  the
total  amount  of  compensation including benefits paid for the two-year
period subsequent to the effective date of retirement for such  eligible
employees  in  eligible titles to those new hires, if any, who otherwise
would not have been hired by such employer after the effective  date  of
this  act  but  for the retirement incentive provided herein shall be no
more than one-half of the total amount of base salary  that  would  have
been  paid  to such eligible employees from their date of retirement for
such two-year period. For purposes of this subdivision, the "city of New
York" shall mean the city of New York  or  a  participating  employer  a
majority  of  the  members of whose governing body are: (a) appointed by
the mayor of the city of New York or other citywide elected official,  a
borough  president  of the city of New York, or any combination thereof;
(b) designated by virtue of their city of New York office or position or
their office or position with a participating employer  whose  governing
board  is  described  in  paragraph  (a)  of  this  subdivision;  or (c)
appointed or designated by any combination of the foregoing.  Each  such
employer shall make available its plans for achieving these savings.
  c.  To the extent any transfer of personnel between the state employer
described in paragraph (a) of subdivision d of section one of  this  act
and  the  state  employer described in paragraph (b) of subdivision d of
section one of this act occurs pursuant to a voluntary transfer of state
personnel, or otherwise, the provisions of subdivision a of this section
with respect to achieving savings shall be applicable.   Nothing  herein
shall  be  construed  to  impair  the authority of the director of state
operations pursuant to subdivision g of section one or  section  two  of
this act.
  S 10. Nothing in this act shall be used to provide benefits that shall
exceed the limits contained in section 415 of the internal revenue code.
Provided, however, any service retirement benefit which has been reduced
because  of  section 415 of the internal revenue code shall be increased
when (and consistent with) the dollar  limits  in  section  415  of  the
internal  revenue  code are adjusted by the internal revenue service for
cost of living increases. Such increases shall not increase the  benefit
in excess of the service retirement benefit otherwise payable.
  S  11. Any eligible employee who retires pursuant to the provisions of
this act and enters or reenters public service as defined in subdivision
e of section 210 of the retirement and social security law and joins  or
rejoins any public retirement system of the state as defined in subdivi-

S. 7909                            12

sion  6  of  section  152  of  the retirement and social security law or
elects to participate in an optional retirement  program  shall  if  the
additional  benefit  was  provided  pursuant  to:  (a)  subdivision a of
section  six  of  this act, forfeit the additional benefit authorized by
this act at the time of his or her subsequent retirement; or (b)  subdi-
vision b of section six of this act, repay to the state or participating
employer  such  additional  contribution  together  with the appropriate
interest as determined by the state comptroller.
  S 12. Notwithstanding any other  provision  of  law,  if  the  service
retirement  benefit  of  a member of a retirement system is subject to a
maximum retirement benefit, the additional benefit  authorized  by  this
act  will  be computed by multiplying the final average salary times the
number of years of service credit granted by section  six  of  this  act
times the benefit fraction of the plan under which such member retires.
  S 13. The provisions of section 430 of the retirement and social secu-
rity  law shall not apply to any benefit or benefit improvement provided
by this act.
  S 14. The pension benefit costs of subdivision a  of  section  six  of
this  act  shall  be paid by employers as provided by applicable law for
each retirement system covered by this act over a period not  to  exceed
five years commencing in the state fiscal year ending March 31, 2012.
  S  15. Where an employee is eligible to receive the benefit authorized
under section six and the retirement benefit provided for under  section
five of part B of the chapter of the laws of 2010 which added this part,
such  employee  may  elect  a section under which he or she will partic-
ipate.  Any other provision of this act or any other law to the contrary
notwithstanding, an employee eligible for the retirement  benefit  under
chapter  45  of  the  laws of 2010 and otherwise eligible to receive the
benefit provided under section six of this act shall not be eligible  to
receive the benefit authorized under section six of this act unless such
employee  elects  to  receive  such benefit in lieu of the benefit under
chapter 45 of the laws of 2010. In no event shall the benefits  provided
for  in  section six of this act be received by any employee in conjunc-
tion with the benefits of section five of part B  of  this  act  or  the
benefits of chapter 45 of the laws of 2010.
  S 16. This act shall take effect immediately.

                                 PART B

  Section 1. Definitions. As used in this act, unless the context clear-
ly requires otherwise:
  a.  "Retirement  system" means the New York state and local employees'
retirement system, the New York state teachers' retirement  system,  the
New  York  city  teachers' retirement system, the New York city board of
education retirement system or the New York city  employees'  retirement
system,  exclusive  of  the  retirement  plans  established  pursuant to
sections 13-156 and 13-157 of the administrative code of the city of New
York.
  b. "Teachers' retirement system" means the New  York  state  teachers'
retirement system or the New York city teachers' retirement system.
  c.  "State  employer" means (a) the executive branch of the state, (b)
the state-operated institutions of the state university of New York, (c)
the statutory and contract colleges operated pursuant to section 357  of
the  education  law, (d) the state university construction fund (herein-
after referred to in this act as the "fund"), (e) a  cooperative  exten-
sion  association  (hereinafter  referred to in this act as the "associ-

S. 7909                            13

ation"), and  (f)  the  city  university  of  New  York  as  defined  in
subdivision  2  of  section  6202  of the education law, (g) the unified
court system, (h) the senate, (i) the assembly, and (j)  joint  legisla-
tive employers.
  d.  (a) "Participating employer" means an employer, other than a state
employer, which participates in a retirement  system;  such  term  shall
include a community college operating under the program of state univer-
sity of New York.
  (b)  "Educational  employer" means a participating employer which is a
school district, a board of cooperative educational  services,  a  voca-
tional education and extension board, an institution for the instruction
of the deaf and of the blind as enumerated in section 4201 of the educa-
tion law, or a school district as enumerated in section 1 of chapter 566
of the laws of 1967, as amended.
  e.  "Eligible employee" means a person who is a member of a retirement
system who is an employee in the executive branch of a state employer or
an employee of a state employer or  a  participating  employer  who  has
attained age fifty-five and has at least twenty-five years of creditable
service  in  a  retirement  system,  but such term shall not include the
following persons:
  (a) elected officials, judges or justices appointed to or  serving  in
court of record and acting village justices;
  (b)  chief  administrative  officers  of participating employers which
participate in a teachers' retirement system;
  (c) officers described in sections 4, 41-a,  46,  61,  70,  70-a,  169
(including those officers whose salary is established pursuant to salary
plans  under  subdivision  3  of  section 169), 180 and subdivision 1 of
section 41 of the executive  law  and  any  agency  or  department  head
appointed by the governor, comptroller or attorney general;
  (d)  appointed  members  of boards or commissions any of whose members
are appointed by the governor or by another state officer or body;
  (e) nonjudicial officers and employees of  the  unified  court  system
unless  the chief administrator of the courts elects as provided herein,
which election shall cover only nonjudicial officers and employees hold-
ing positions in any title in the  classified  service  of  the  unified
court system;
  (f)  officers  or  employees  of the senate unless the senate adopts a
resolution authorizing the temporary president to file the  election  as
provided in this subdivision;
  (g) officers or employees of the assembly unless the assembly adopts a
resolution  authorizing the speaker of the assembly to file the election
as provided in this subdivision; and
  (h) officers or employees of joint legislative employers unless:
  (i) with respect to officers or employees of the legislative  library,
legislative  messenger  service, legislative health service, legislative
ethics committee, the legislative  bill  drafting  commission,  and  the
joint  line  of  the  legislative task force on demographic research and
reapportionment, the senate and assembly adopt a  concurrent  resolution
authorizing the temporary president of the senate and the speaker of the
assembly to jointly file an election as provided in this subdivision;
  (ii) with respect to officers or employees of components of the senate
as  identified pursuant to section 90 of the legislative law, the senate
adopts a resolution authorizing  the  temporary  president  to  file  an
election  for  officers  or  employees of those components designated in
such resolution; and

S. 7909                            14

  (iii) with respect to officers  or  employees  of  components  of  the
assembly  as  identified  pursuant to section 90 of the legislative law,
the assembly adopts a resolution authorizing the speaker of the assembly
to file an election for officers or employees of those components desig-
nated in such resolution.
  Any  election  under paragraphs (e) through (h) of this subdivision to
make available the retirement incentive provided by this act shall be in
writing and filed with the state comptroller not later than ninety  days
after  the  effective  date  of  this  act.  Notwithstanding  any  other
provision of this act, each such filing shall specify  the  commencement
date of the open period.
  For  the  purposes  of such paragraph (f), (g) or (h) of this subdivi-
sion, an employee of the legislature shall be as such term is defined in
section 7-a, 7-b or 7-d of the legislative law or by any other provision
of law which classifies employees of an entity to be legislative employ-
ees for all purposes, but shall not include senators or members  of  the
assembly.  The  term "joint legislative employer" shall mean legislative
commissions, committees, task forces, councils or similar  bodies  whose
membership  is comprised of both senators and assembly members, or which
consist of  commissioners,  or  the  majority  of  whose  membership  is
appointed  by  one  or more of the following: the temporary president of
the senate, the speaker of the assembly,  the  minority  leader  of  the
senate, and/or the minority leader of the assembly. The temporary presi-
dent  of  the  senate and the speaker of the assembly shall be the joint
legislative employer of the employees of the legislature referred to  in
sections 7-a and 7-b of the legislative law.
  f. "College faculty" means an employee, not in the classified service,
of  a  state employer described in paragraphs (b), (c), (d), (e) and (f)
of subdivision c of this section or of a  community  college  who  is  a
member of a teachers' retirement system, or the New York state and local
employees' retirement system.
  g.  "Active  service"  means  service while being paid on the payroll,
provided that (a) a leave of absence with pay  shall  be  deemed  active
service; (b) other approved leave without pay not to exceed twelve weeks
from  February 1, 2010 and the commencement of the designated open peri-
od; and (c) the period of time subsequent to the June 2010  school  term
and  on  or  before  August  31,  2010  for a teacher (or other employee
employed on a school-year basis) who is otherwise in active  service  on
the effective date of this act shall be deemed active service.
  h. "Open period" means the period beginning with the commencement date
as  defined in subdivision i of this section and shall be ninety days in
length; provided however that there shall be only one such  open  period
and  any  such  period  shall not extend beyond September 30, 2010 for a
state employer and December 31, 2010 for a participating  employer.  For
educational  employers  who  make  election after June 1, 2010, the open
period shall begin immediately after such election, and shall not extend
beyond August 31, 2010.  For the purposes of retirement pursuant to this
act, a service retirement application must be filed with the appropriate
retirement system not less than fourteen days  prior  to  the  effective
date  of retirement to become effective, unless a shorter period of time
is permitted under law.
  i. "Commencement date" means the  first  day  the  retirement  benefit
mandated by this act shall be made available, which shall mean a date or
dates on or after the effective date of this act to be determined by the
director  of  state operations for the executive branch of the state, or
for any other state employer or any participating employer which  elects

S. 7909                            15

to  participate pursuant to section three of this act a date on or after
the effective date of this act; provided, however, that  for  an  educa-
tional employer which elects to participate pursuant to section three of
this  act,  the  commencement date shall be June 1, 2010; or immediately
after election of the retirement incentive for educational employers who
elect after June 1, 2010 and provided, further  that  for  participating
employers  which  elect to participate pursuant to section three of this
act, except the city of New York and participating employers  which  are
not  empowered to act by local law, the commencement date shall be Octo-
ber 1, 2010. The director of state operations shall notify the  head  of
the  appropriate retirement system of the date of the open period appli-
cable to employees of the executive branch or of a state employer  prior
to the commencement date.
  S  2.  a.  A  state  employer  which elects to participate pursuant to
section three of this act, participating employer which is not empowered
to act by local law which elects  to  participate  pursuant  to  section
three  of this act, or the city of New York, if it elects to participate
pursuant to section three of this act  shall  establish  a  commencement
date  for  the retirement benefit established under section five of this
act in the following manner: (a) for the executive branch, the  director
of  state operations shall establish the commencement date in writing to
the appropriate retirement system; (b) for state employers described  in
paragraphs (b), (c), (d), (e) and (f) of subdivision c of section one of
this  act  and  participating employers that are not empowered to act by
local law, its governing body shall adopt a  resolution  establishing  a
commencement  date; (c) for state employers described in paragraphs (g),
(h), (i) and (j) of subdivision c of section one of this act, the person
or persons who make the  election  to  offer  the  retirement  incentive
pursuant  to  part A of the chapter of the laws of 2010 which added this
part shall establish a commencement date in writing to  the  appropriate
retirement system; and (d) for the city of New York, the chief executive
officer  shall  issue  an  executive order establishing the commencement
date, provided, however, no executive order, in the case of the city  of
New  York issued pursuant to this section, shall in any manner supersede
any local charter. A copy of any such resolution or executive  order  in
the  case of the city of New York establishing a commencement date shall
be filed with the appropriate retirement  system  or  systems,  and,  if
applicable,  on  forms provided by such system. The resolution or execu-
tive order in the case of the city of New York shall be  accompanied  by
the  affidavit  of the chief executive officer or other comparable offi-
cial certifying the commencement date.
  b. A state employer, participating employer which is not empowered  to
act  by  local law which elects to participate pursuant to section three
of this act, or the city of New York if it elects to participate  pursu-
ant  to  section  three  of  this  act  shall be required to establish a
commencement date under paragraph a of this subdivision for the  retire-
ment  benefit  established  under section five of this act. In the event
that a state employer, participating employer which is not empowered  to
act  by  local law which elects to participate pursuant to section three
of this act, or the city of New York if it elects to participate  pursu-
ant  to section three of this act fails to establish a commencement date
for the retirement benefit established under section five of  this  act,
the  commencement  date  for  the eligible employees of a state employer
shall be July 1, 2010.  The commencement date for the eligible employees
of all other employers referenced in this subdivision shall be September
1, 2010.

S. 7909                            16

  S 3. On or before September 1, 2010, a  participating  employer  or  a
state  employer  described  in  paragraphs (b), (c), (d), (e) and (f) of
subdivision c of section one of  this  act  may  elect  to  provide  its
employees  the  retirement  incentive  authorized by this act by (a) the
enactment  of a local law or (b) in the case of a participating employer
which is not so empowered to act  by  local  law  or  a  state  employer
described  in  paragraphs (b), (c), (d), (e) and (f) of subdivision c of
section one of this act, by the adoption of a resolution of its  govern-
ing  body; provided however, no local law or resolution enacted pursuant
to this section  shall  in  any  manner  supersede  any  local  charter,
provided further, that for an educational employer such election must be
made  by  July  1,  2010.    For a community college operating under the
program of state university of New York, such election shall be made  by
the  board of trustees of such community college subject to the approval
of its sponsor. A copy of such law or resolution shall be filed with the
appropriate retirement system or systems, and, if applicable,  on  forms
provided  by  such system. The local law or resolution shall be accompa-
nied by the affidavit of the chief executive officer or other comparable
official certifying the validity of such local law or resolution.    The
executive  branch  of the state shall be deemed to have made an election
under this section upon its enactment.
  S 4. Notwithstanding any other provision of law, any eligible employee
who (a) has been continuously in the active service of a state  employer
or  of  a participating employer from February 1, 2010 to the date imme-
diately prior to the commencement date of the  applicable  open  period,
(b) files an application for service retirement that is effective during
the  open period, and (c) is otherwise eligible for a service retirement
as of the effective date of the  application  for  retirement  shall  be
entitled to the retirement benefit provided in section five of this act.
  S  5.  a.  Notwithstanding  any  other  provision  of law, an eligible
employee who is: (a) a member of a retirement  system  and  (b)  who  is
entitled  to  a  retirement benefit pursuant to section four of this act
may retire during the open period without the reduction of  his  or  her
retirement  benefit  that would otherwise be imposed by article 11 or 15
of the retirement and social security law if he or she has attained  the
age  of  fifty-five and has completed at least twenty-five or more years
of creditable service. An  eligible  employee  who  is  covered  by  the
provisions  of  articles 11 and 15 of the retirement and social security
law shall retire under the provisions of  articles  11  and  15  of  the
retirement and social security law.
  b.  The  director  of state operations, the chief executive officer of
the city of New York, or chief executive officer or governing board,  as
appropriate, of the participating employer may deny participation in the
retirement  benefit  provided  by  subdivision  a of this section if the
director of state operations, the chief executive officer  of  New  York
city  or  the  chief executive officer or governing board of the partic-
ipating employer makes a determination that the employee holds  a  posi-
tion  that  is  deemed  critical to the maintenance of public health and
safety.
  c. Where an employee is eligible for the retirement benefit under this
section and the retirement incentive authorized pursuant to section  six
of part A of the chapter of the laws of 2010 which added this part, such
employee  shall  elect a section under which he or she will participate.
The benefits provided by subdivision a of  this  section  shall  not  be
conditioned  upon  a state or participating employer making the benefits
of section six of part A of this act available  to  employees  in  their

S. 7909                            17

employ.  Further, the benefits provided by subdivision a of this section
shall not be available in conjunction with the benefits of  section  six
of part A of the chapter of the laws of 2010 which added this part.
  d. The action of the director of state operations, the chief executive
officer of the city of New York, or chief executive officer or governing
board,  as  appropriate,  of  the  participating employer in denying the
retirement benefit provided for in subdivision a of this section to  any
individual  shall  be  subject  to  review in the manner provided for in
article 78 of the civil practice law and rules. Such action  for  review
pursuant  to  article  seventy-eight of the civil practice law and rules
shall only be commenced by the individual that was denied the retirement
benefit provided by subdivision a of this section.
  e. After making any such determination under  subdivision  b  of  this
section,  the  director of state operations, the chief executive officer
of the city of New York and the chief  executive  officer  or  governing
board,  as  appropriate,  of the participating employer shall notify the
appropriate retirement system or  teachers'  retirement  system  of  its
determination.
  S  6.  The  pension benefit costs of section five of this act shall be
paid by employers as provided by  applicable  law  for  each  retirement
system  covered  by  this  act  over  a  period not to exceed five years
commencing in the state fiscal year ending March 31, 2012.
  S 7. This act shall take effect immediately.
  S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included herein.
  S  4.  This act shall take effect immediately; provided, however, that
the applicable effective date of Parts A and B of this act shall  be  as
specifically set forth in the last section of such Parts.
  FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
  This  bill  would  provide additional service credit (one-twelfth of a
year for each year of non-sick leave, non-Article 19 service credited as
of the date of retirement, up to a maximum of three years)  for  certain
members  of  the  New York State and Local Employees' Retirement System,
New York State Teachers' Retirement  System,  New  York  City  Teachers'
Retirement  System,  New  York  City Board of Education and the New York
City Employees' Retirement System. Further, for certain members who  are
not otherwise eligible for a service retirement benefit, this bill would
provide  the  ability  to  retire with reductions. This benefit would be
available to only targeted positions.
  In addition, this bill would eliminate the early retirement reductions
at 25 years of service instead of at 30 years of service for  retirement
during  a specified 90 day period for Tier 2, 3 and 4 members of the New
York State and Local Employees' Retirement System, New York State Teach-
ers' Retirement System, New York City Teachers' Retirement  System,  New
York City Board of Education and the New York City Employees' Retirement
System.  Employers electing this provision can declare health and safety
positions to be ineligible.

S. 7909                            18

  Retiring members may not receive both the  additional  service  credit
and  the  elimination  of the early retirement reductions at 25 years of
service instead of at 30 years of service.
  If  this bill is enacted, insofar as it affects the New York State and
Local Employees' Retirement System (ERS), the additional cost  for  each
member  who  receives these benefits will vary depending on the member's
age, years of service, plans and final average salary.
  We anticipate that the per-member cost (at retirement)  of  the  addi-
tional  service  credit  benefit  will  average  approximately  60% of a
member's final average salary. This cost will be borne by each  employer
electing the incentive over a five-year period commencing with a payment
in the State fiscal year 2011-2012.
  We  anticipate  that the per-member cost (at retirement) of the elimi-
nation of the early retirement reductions at 25 years of service instead
of at 30 years of service will average approximately 110% of a  member's
final  average salary. This cost will be borne by each employer electing
the incentive over a five-year period commencing with a payment  in  the
State fiscal year 2011-2012.
  This  estimate, dated April 30, 2010, and intended for use only during
the 2010 Legislative Session, is Fiscal Note No.  2010-157  prepared  by
the  Actuary  for  the  New  York  State and Local Employees' Retirement
System.
  FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
  This bill would provide a temporary retirement  incentive  for  fiscal
year  2010-2011.  In  Part  A of the retirement incentive, employers who
elect to participate would provide certain eligible employees a  retire-
ment incentive of one-twelfth of a year of additional service credit per
year  of  accrued  service  credit  up  to a maximum of three additional
years. To be eligible, a member must have attained age  50  or  greater,
with  at  least  ten  years  of service. Members not subject to an early
retirement reduction and less than age 55 at retirement will have  their
benefit reduced by five percent for each year their age precedes 55.
  Part B of the retirement incentive would permit eligible Tier 2, 3 and
4  members of employers who elect to participate to retire without early
retirement reductions upon attainment of at least age 55 with  25  years
of  service.  Currently  30  years  of service are required. In order to
receive either the Part A or Part B benefit, an eligible  member  of  an
employer  who  has elected to participate must retire during the employ-
er's designated open period. For Part A, such period shall be  at  least
30,  but not more than 90 days in length, and for educational employers,
shall not extend beyond August 31, 2010. For Part B, the open period for
educational employers shall begin upon the later of June 1, 2010 or  the
date  elected  by  the  employer, and shall not extend beyond August 31,
2010.  Members may not receive a benefit under both Part A and  Part  B,
or  Part A and the retirement incentive provided under Chapter 45 of the
Laws of 2010. Employers participating in Part A  or  Part  B  (or  both)
would  pay  the  cost  of  the retirement incentive over a period not to
exceed five years, beginning in the state fiscal year ending  March  31,
2012.
  It  is  not  possible to accurately forecast the total cost to the New
York State Teachers' Retirement System employers electing to participate
in this retirement incentive because  the  number  of  eligible  members
electing  to  retire  under  the incentive, their ages and the amount of
service credited cannot be readily estimated. The Part A cost,  measured
as  the  increase  in  the  present  value  of benefit per participating
member, however, will range from 5% to more than 100% of  final  average

S. 7909                            19

salary, averaging between 50% and 75% of final average salary, depending
on  the member's age, years of service, and tier at retirement. The Part
B cost per participating member will range from 3% to more than 100%  of
final  average  salary, depending on the member's age, years of service,
and tier at retirement. The potential  number  of  members  eligible  to
benefit under Part A is much greater than under Part B.
  The  source of this estimate is Fiscal Note 2010-54 dated May 18, 2010
prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
System and is intended for use only during the 2010 Legislative Session.
  FISCAL  NOTE:  PROVISIONS  OF  PROPOSED  LEGISLATION:  With respect to
certain New York City Retirement Systems ("NYCRS"), this proposed legis-
lation would provide for a temporary Early Retirement Incentive  Program
("ERI  Program")  to  allow  certain  NYCRS  members  to elect immediate
retirement with enhanced benefits. This proposed legislation consists of
two components, each wholly contained within a part, identified as  Part
A and Part B.
  *  Part A: Additional Service Credit of 1/12 per year of service, to a
maximum of three years, if at least age 50 with  10  or  more  years  of
service, or
  * Part B: Unreduced Benefit on Account of Age, if at least age 55 with
25 or more years of service.
  A  NYCRS member eligible for Part B would be permitted to elect Part A
(if eligible for Part A) but would not be permitted to combine the bene-
fits of Part A and Part B.
  In addition, to be eligible, a member of a NYCRS must be the  employee
of  an  employer  participating  in  a  NYCRS  ("Obligor") who elects to
participate in the ERI Program.
  Additional requirements and details are set forth under the  Terms  of
Early Retirement Incentive section that follows.
  The  Effective  Date  of the proposed legislation would be the date of
enactment.
  TERMS OF EARLY RETIREMENT INCENTIVE PROGRAM: Under the proposed legis-
lation, with respect to the NYCRS, and ERI Program would be made  avail-
able  if  elected  by  a participating employer, including New York City
(the "City"), by enactment of a local law or resolution. Such local  law
or  resolution would specify for employees the applicable "Open Period,"
anywhere from 30 to 90 days, during which time  eligible  NYCRS  members
would  be  permitted to elect and retire, but not beyond August 31, 2010
for educational employees and not  beyond  December  31,  2010  for  all
others.
  The  Mayor of the City may declare employees of the Community Colleges
of the City University of New York ("CUNY") to be ineligible for Part  A
of the ERI Program. It is also the understanding of the Actuary that the
Mayor may determine such employees to be ineligible for Part B.
  This  proposed legislation also provides that employers who elect Part
A of the ERI Program should  demonstrate  certain  compensation  savings
over  the two-year period following the effective dates of retirement of
those employees who participate in Part A of the ERI Program.
  NYCRS RETIREMENT SYSTEMS  IMPACTED:  The  proposed  legislation  would
impact the following NYCRS:
  * New York City Employees' Retirement System ("NYCERS"),
  * New York City Teachers' Retirement System ("NYCTRS"), and
  * New York City Board of Education Retirement System ("BERS").
  PART A

S. 7909                            20

  If  an  employer  elects  to participate in Part A of the ERI Program,
then an employee must meet the following criteria  in  order  to  retire
under the ERI:
  Eligibility  -  Part  A:  A  NYCRS  member must be a member of NYCERS,
NYCTRS or BERS and is required to:
  1. Be in Active Service - paid on payroll, or
  - On leave of absence with pay, or
  - Approved leave of absence without pay but not  more  than  12  weeks
prior to the "Open Period," or
  -  A teacher on payroll as of February 1, 2010 which would include the
period between the end of the June 2010 term and on or before August 31,
2010, and
  2. Be in an Eligible Title.
  - Those positions otherwise identified for layoff,
  - Those positions that could be transferred or reassigned under  Civil
Service Law, and
  3.  Be  eligible  for  Service Retirement if the ERI service credit is
applied or have at least attained age  50  with  10  or  more  years  of
service, and
  4.  Be in Active Service between February 1, 2010 and the commencement
date specified in the Open Period, and
  5. File an application for Service Retirement that is effective during
the Open Period, and
  6. File written notification with the employer of  the  member  on  or
before the 21st day prior to the end of the Open Period.
  Benefits  - Part A: For those NYCRS members who participate in Part A,
the members would receive an ERI of:
  - 1/12 of additional retirement service credit  per  year  of  pension
service, up to a maximum of three years.
  Such  retirement  service credit would be usable for both inclusion in
the applicable benefit formula and for meeting eligibility  requirements
to retire.
  Generally,  there would be reductions to the retirement benefit if the
eligible employee retired before a plan's normal retirement age.
  In addition, for an eligible employee who participates in a retirement
plan which provides for a retirement allowance equal to 50% of FAS  upon
the  completion  of  25 years without regard to age, the proposed legis-
lation sets forth the reductions to the retirement  allowance  otherwise
payable  if  the  eligible employee has not accrued, excluding the addi-
tional credit granted under the proposed legislation, the minimum number
of years needed to retire with such allowance.
  However, the proposed legislation does not address the situation where
an eligible employee is in a plan where 25 years of service is needed to
retire with 55% of FAS.
  It is the understanding  of  the  Actuary  that  the  same  reductions
described  in  the  proposed  legislation for plans providing 50% of FAS
after 25 years of service would apply to  plans  providing  55%  of  FAS
after 25 years of service.
  Optional  Retirement  Program  -  Part  A: For those NYCRS members who
participate in an Optional Retirement Program  (i.e.,  Internal  Revenue
Code  ("IRC")  Section  403(b)  Plan  or  "403(b) Plan") as specified in
Education Law Section 6251, there is a special Part A benefit.
  A member of a 403(b) Plan would, if the member elected to retire under
the Part A provisions, be entitled to an  additional  employer  contrib-
ution  equal  to: 1/12 x years of service x 15% x member's annual salary

S. 7909                            21

rate as of March 1, 2010, such amount could not exceed 45% of such sala-
ry rate (i.e., no more than 36 years of service would be included).
  PART B
  If  an  employer  elects  to participate in Part B of the ERI Program,
then the employees must meet the following criteria in order  to  retire
under the ERI:
  Eligibility  -  Part  B:  To be eligible for Part B, members must have
attained age 55 and have  completed  25  or  more  years  of  creditable
service as of the effective date of retirement.
  Benefits  -  Part B: For those NYCRS members who are eligible for Part
B, such members would be entitled to receive  the  retirement  allowance
accrued  under  the  plan  in which the member participates based on the
amount of credited service such member would  have  at  retirement,  but
such  retirement  allowance would be payable without reduction for early
commencement.
  Note: If eligible under Part A, a NYCRS member  eligible  for  Part  B
would be permitted to elect to receive the benefits under Part A in lieu
of the benefits under Part B.
  PART A AND PART B
  Any additional benefits payable under Part A or Part B would be limit-
ed  to  the  extent  that  the  total benefit payable were to exceed the
Internal Revenue Code ("IRC") Section 415 limits.
  Note: Under Chapter 623 of the Laws of 2004, the NYCRS now have Excess
Benefit Plans that permit benefits in excess  of  the  IRC  Section  415
limits  but the ERI Program does not recognize the availability of these
Excess Benefit Plans.
  With respect to the Optional Retirement Program,  for  any  additional
employer contribution made under a 403(b) Plan, such additional employer
contribution  would  not  be  permitted  to  exceed  the IRC Section 415
limits. If it were to exceed those limits, then the portion in excess of
the limit would either be contributed to the employee in a separate  IRC
Section  403(b)  contract  to  the  extent  it  can  be contributed on a
before-tax basis under the limit or paid to the employee over a 24-month
period in three equal installments.
  Note: It is also the understanding of the Actuary that Part A, Section
10 (i.e., IRC  Section  415  limits)  and  Part  A,  Section  13  (i.e.,
provisions  of  RSSL Section 430) would be applicable to both Part A and
Part B of the proposed legislation.
  FINANCIAL IMPACT - OVERVIEW: If enacted into  the  law,  the  ultimate
employer  cost  of  this proposed legislation would be determined by the
number of members of the NYCRS who participate in the  ERI  Program  and
the amount of additional benefits paid.
  FINANCIAL  IMPACT - ACTUARIAL PRESENT VALUES: Based on the census data
and the actuarial assumptions and methods described herein,  the  enact-
ment  of  this proposed legislation would increase the Actuarial Present
Value of  Benefits  ("APVB")  and  increase  employer  contributions  to
NYCERS,  NYCTRS  and BERS based on the number of members who participate
in the ERI Program and the amounts of benefits that are paid.
  The following Table 1 presents, based on assumptions set forth  herein
by  the  Actuary,  a  Hypothetical  Scenario  of the financial impact to
provide the ERI Program for the NYCRS:
                                 Table 1
         Hypothetical Scenario of Financial Impact to Provide an
          Early Retirement Incentive for Certain NYCRS Members*
                              ($ Millions)
     Retirement     Additional          Estimated Additional

S. 7909                            22

       System          APVB**           Employer Contributions#
     NYCERS            $ 76.8                    $20.0
     NYCTRS              34.2                      8.9
     BERS                 4.9                      1.3
                       ------                    -----
       TOTAL           $115.9                    $30.2
  *  Based  on   Hypothetical Scenario developed by the Actuary assuming
employers were to elect to participate in the ERI  Program  and  members
were  to  elect to participate as set forth in Actuarial Assumptions and
Methods section of this Fiscal Note.
  ** Estimated amounts as of  June  30,  2010  based  on  the  actuarial
assumptions and methods described herein.
  #  The  amounts shown would be payable annually over five Fiscal Years
beginning Fiscal Year 2012.
  FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: Based on  the  census  data
and  the  actuarial  assumptions  and  methods  described  herein  as  a
Hypothetical Scenario, the enactment of this proposed legislation  would
increase  annual  employer  contributions by approximately $20.0 million
for NYCERS, $8.9 million for NYCTRS and $1.3  million  for  BERS,  or  a
total  of  $30.2  million  per  year for the five fiscal years beginning
Fiscal Year 2012.
  FINANCIAL IMPACT - TIMING OF  EMPLOYER  CONTRIBUTIONS:  The  increased
employer  contributions  to NYCERS, NYCTRS and BERS attributable to this
proposed legislation would be paid over a period of not more  than  five
years  commencing  with  the  fiscal  year beginning during the New York
State fiscal year ending March 31, 2012  (e.g.  as  applicable  to  most
participating  employers  of  the  NYCRS, beginning with the fiscal year
ending June 30, 2012).
  FINANCIAL IMPACT - OTHER: The Actuary is expecting to propose  revised
actuarial  assumptions  and  methods  to be effective on or after Fiscal
Year 2010.
  The estimated financial impact of proposed  legislation  incorporating
those  revised  actuarial assumptions and methods is expected to differ,
possibly significantly, from the financial  impact  computed  using  the
actuarial assumptions and methods continued from Fiscal Year 2010.
  Further, the near certainty of payment of benefits from the NYCRS (due
to  the  substantive  level of funding and New York State Constitutional
Protection of benefits), suggests that it may  be  appropriate  to  also
consider  a more economic-based, market-related estimate of the value of
those benefits (i.e., a Financial Value estimate). Such value  of  bene-
fits  would  likely be based on an expected pattern of benefits payments
determined using discount  rates  consistent  with  those  derived  from
default-free securities of similar duration.
  Under current economic conditions, the APVB, employer cost and employ-
er  contributions  determined  under  Financial  Value concepts would be
greater than those shown herein.
  OTHER COSTS: Most significantly, not measured herein is any  potential
reduction  in employer payrolls attributable to members who retire under
the ERI Program.
  Also not measured in this Fiscal Note is the impact of  this  proposed
legislation on administrative costs of NYCERS, NYCTRS and BERS and their
participating employers.
  In addition, and potentially significant, no account has been taken of
the  impact of the expected increase in costs attributable to Other Post
Employment Benefits ("OPEB").

S. 7909                            23

  CENSUS DATA: The census data used for the estimates of additional APVB
and employer contributions presented herein was the active data used  in
the  June 30, 2009 (Lag) actuarial valuations of NYCERS, NYCTRS and BERS
used to determine Preliminary Fiscal Year 2011 employer contributions.
  Active members as of June 30, 2009 were grouped by individual ages and
services  for the members who could potentially meet the age and service
requirements for the ERI Program and are shown in Table 2.
  Note: This slightly overstates  the  number  of  potentially  eligible
members as some members may have left employment after June 30, 2009.
                                 Table 2
        Active Members on June 30, 2009 Potentially Eligible for
                    ERI Program as of June 30, 2010*
                              ($ Millions)
                               ERI-Part A             ERI-Part B
     Retirement System    Number    Salaries     Number     Salaries
      NYCERS               61,682    $4,279.5     3,662      $241.9
      NYCTRS               32,752     2,788.9       382       $38.4
      BERS                  6,160       270.4       232       $17.4
      TOTAL               100,594    $7,338.8     4,276      $297.7
*  Assumes  NYCRS  members  as of June 30, 2009 remain in active service
through June 30, 2010 and then meet the age and service requirements for
the ERI Program as of June 30, 2010.
  The following Table 3 presents the estimated number and  salaries  for
those  potential members assumed to participate in the ERI Program under
the Hypothetical Scenario.
  ACTUARIAL ASSUMPTIONS AND METHODS: The additional  APVB  and  employer
contributions  presented herein have been calculated, with certain addi-
tional Hypothetical Scenario assumptions, based on the actuarial assump-
tions and methods used for NYCERS, NYCTRS and BERS in the June 30,  2009
(Lag)  actuarial  valuations  used  to determine Preliminary Fiscal Year
2011 employer contributions to the NYCRS.
  These actuarial assumptions were adopted by the Boards of Trustees  of
the  NYCRS during Fiscal Year 2006 and are part of an overall package of
actuarial assumptions and methods used to  determine  employer  contrib-
utions  to  the  NYCRS  that includes an Actuarial Interest Rate ("AIR")
assumption of 8.0% per annum.
                                 Table 3
       Active Members Assumed to Participate in ERI Program under
                         Hypothetical Scenario*
                       ERI-Part A                        ERI-Part B
Retirement
System           Number        Salaries              Number    Salaries
NYCERS              996        $ 71.1                   732      $48.4
NYCTRS              701          66.2                    76        7.7
BERS                 54           3.6                    46        3.5
Total             1,751        $140.9                   854      $59.6
  * Based on assumptions that 20% of all potentially eligible ERI - Part
B members, and that of the 25% of ERI - Part A members who  are  assumed
to  be  targeted  employees,  20%  would elect to participate in the ERI
Program.
  For purposes of determining those active members who would  be  poten-
tially  eligible  (and  likely  to consider Part B), it was assumed that
those active members who meet the Part B  eligibility  conditions  would
prefer  this Part B versus Part A if they were under attained age 61 and
were not otherwise eligible to  retire  immediately  with  an  unreduced
benefit  (excluding  teacher  members  with 30 or more years of credited

S. 7909                            24

service). The balance of the potentially  eligible  NYCRS  members  were
assumed to potentially participate in Part A.
  For  the  purposes  of  the Hypothetical Scenario, the following addi-
tional assumptions were used to determine the additional APVB and annual
employer contributions:
  * Part A
    ** Obligors to NYCRS choose to participate in Part A, and
    ** Obligors target 25% of all Eligible Employees in Eligible  Titles
       ("Targeted Employees"), and
    ** Only  Targeted Employees with the following characteristics elect
       to take ERI ("Part A Eligible Employees"):
       *** Age 55 and greater
       *** 20 or more years of service, and
    ** 20% of Part A Eligible Employees elect to take the ERI

  * Part B
    ** All Obligors to NYCRS choose to participate in Part B, and
    ** 20% of Part B Eligible Employees elect to take the ERI
  Employer contributions have been developed  under  the  terms  of  the
proposed  legislation  that  require that the APVB of such ERI be spread
over five years in the fiscal year  beginning  in  the  New  York  State
fiscal year ending March 31, 2012.
  STATEMENT  OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems. I am a Fellow  of  the
Society  of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification Standards of the American Academy of  Actuaries
to render the actuarial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
during the 2010 Legislative Session. It is Fiscal  Note  2010-14,  dated
May 17, 2010 prepared by the Chief Actuary for the New York City Employ-
ees'  Retirement  System,  the New York City Teachers' Retirement System
and the New York City Board of Education Retirement System.