Senate Bill S5378A

                                BILL NUMBER:S5378A

TITLE OF BILL:
An act
to amend the retirement and social security law, in relation to allowing
certain police and firefighters to participate in an optional 20 year
retirement plan in certain circumstances

PURPOSE:
To ensure all firefighters in NYS are treated equally as it pertains
to the enactment of the 2003 Tier V legislation.

SUMMARY OF PROVISIONS:
Amends retirement and social security law by adding a new section
384-f, affecting the rights of professional firefighters and police
as follows. Firefighters and police whose membership in retirement
system commenced between July first, two thousand nine and March
thirty-first. two thousand twelve are provided an opportunity to
participate in optional twenty year retirement plan.

JUSTIFICATION:
In 2009 the legislature passed a new Tier V pension bill for public
employees and starting January 2010 this statute shall take effect.
The intention of the pension bill is to place any firefighters hired
after January 2010 into the Tier V plan. Those firefighters hired
between July 1, 2005 and the effective date of Tier V (January 9,
              

2010) working under a current collective bargaining agreement will
remain in a non-contributory twenty year plan until the expiration of
their contract. This same protection for firefighters working without
a contract for years, appears to have been overlooked.

The Buffalo professional Firefighters have operated honorably without
a new collective bargaining agreement since 2001. Their original
contract
places members under the tier II retirement system and under Taylor
law it remains the standard until a new agreement is reached.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
This bill would grant that an individual who became a Tier 3 or a Tier
5 member of the New York State and Local Police and Fire Retirement
System (PFRS) and whose employer has elected to provide the
provisions of Section 384-d, and who is not subject to a collective
bargaining agreement, would no longer be required to make mandatory
employee contributions.

This bill would also allow a small number of individuals who became
members of the PFRS on or after July 1, 2009 and before January 9, 2010
and who did not timely file an application to become covered under

the provisions of Section 384-d within the one year required filing
period to file for such coverage.

If this bill is enacted, we anticipate that the employers of such Tier
3 and Tier 5 members who would no longer be required to contribute
would see an increase in their annual employer contributions for the
fiscal year ending March 31, 2013 of approximately 3.9% of the annual
salaries of such members.

In addition to these costs, there would be a future annual cost which
would be borne by any employer of a member who would become eligible
to file for Section 384-d coverage. These costs would depend on the
current plan coverage and salaries of affected members. There would
also be a past service cost for each such member, which would depend
on the age, service, salary and plan coverage of the member. These
past service costs would be borne by all the employers in the PFRS.

EFFECTIVE DATE:
Immediate

FISCAL NOTE:
Pursuant to Legislative Law, Section 50:

Re: Fiscal Note #2012-141

"This bill would grant that an individual who became a Tier 3 or a
Tier 5 member of the New York State and Local Police and Fire
Retirement System (PFRS) and whose employer has elected to provide
the provisions of Section 384-d, and who is not subject to a
collective bargaining agreement, would no longer be required to make
mandatory employee contributions.

"This bill would also allow a small number of individuals who became
members of the PFRS on or after July 1, 2009 and before January 9, 2010
and who did not timely file an application to become covered under
the provisions of Section 384-d within the one year required filing
period to file for such coverage.

"If this bill is enacted, we anticipate that the employers of such
Tier 3 and Tier 5 members who would no longer be required to
contribute would see an increase in their annual employer
contributions for the fiscal year ending March 31, 2013 of
approximately 3.9% of the annual salaries of such members.

"In addition to these costs, there would be a future annual cost which
would be borne by any employer of a member who would become eligible
to file for Section 384-d coverage. These costs would depend on the
current plan coverage and salaries of affected members. There would
also be a past service cost for each such member, which would depend
on the age, service, salary and plan coverage of the member. These
past service costs would be borne by all the employers in the PFRS.

"Summary of relevant resources:

"Data: March 31, 2011 Actuarial Year End File with distributions of
membership and other statistics displayed in the 2011 Report of the
Actuary and 2011 Comprehensive Annual Financial Report.

"Assumptions and Methods: 2010 and 2011 Annual Report to the
Comptroller on Actuarial Assumptions, Codes Rules and Regulations of
the State of New York: Audit and Control.

"Market Assets and GASB Disclosures: March 31, 2011 New York State
and Local Retirement System Financial Statements and Supplementary
Information.

"Valuations of Benefit Liabilities and Actuarial Assets: summarized in
the 2011 Actuarial Valuations report.

"I am a member of the American Academy of Actuaries and meet the
Qualification Standards to render the actuarial opinion contained
herein.

"This estimate, dated April 25, 2012, and intended for use only during
the 2012 Legislative Session, is Fiscal Note No. 2012-141, prepared
by the Actuary for the New York Stale and Local Police and Fire
Retirement System."