S T A T E O F N E W Y O R K
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10126
I N A S S E M B L Y
May 9, 2012
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Introduced by M. of A. ABBATE -- Multi-Sponsored by -- M. of A. GABRYS-
ZAK, KEARNS, RYAN -- read once and referred to the Committee on
Governmental Employees
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
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The retirement and social security law is amended by adding
a new section 384-f to read as follows:
S 384-F. OPTIONAL TWENTY YEAR RETIREMENT PLAN FOR MEMBERS OF THE NEW
YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM. A. NOTWITH-
STANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW OR CODE TO
THE CONTRARY, ANY MEMBER OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE
RETIREMENT SYSTEM WHOSE MEMBERSHIP IN SUCH RETIREMENT SYSTEM COMMENCED
BETWEEN JULY FIRST, TWO THOUSAND NINE AND MARCH THIRTY-FIRST, TWO THOU-
SAND TWELVE AND IS NOT SUBJECT TO THE TERMS OF AN AGREEMENT AS DEFINED
BY SUBDIVISION TWELVE OF SECTION TWO HUNDRED ONE OF THE CIVIL SERVICE
LAW, MAY ELECT TO CONTRIBUTE TO SUCH RETIREMENT SYSTEM PURSUANT TO
SECTION THREE HUNDRED EIGHTY-FOUR-D OF THIS TITLE, IF HIS OR HER EMPLOY-
ER HAS PREVIOUSLY ELECTED TO MAKE THE BENEFITS OF SECTION THREE HUNDRED
EIGHTY-FOUR-D OF THIS TITLE AVAILABLE TO ITS MEMBERS.
B. ANY MEMBER WHO ELECTS TO CONTRIBUTE PURSUANT TO THIS SECTION SHALL
NOT BE REQUIRED TO MAKE CONTRIBUTIONS PURSUANT TO ARTICLE FOURTEEN OR
SECTION TWELVE HUNDRED FOUR OF THIS CHAPTER.
C. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION A OF SECTION THREE
HUNDRED EIGHTY-FOUR-D OF THIS TITLE, ANY MEMBER WHO SEEKS TO ELECT TO
CONTRIBUTE PURSUANT TO THIS SECTION MAY DO SO: WITHIN SIX MONTHS AFTER
THE MEMBER BECOMES A MEMBER OF SUCH RETIREMENT SYSTEM; WITHIN SIX MONTHS
AFTER HIS OR HER EMPLOYER ELECTS TO MAKE THE BENEFITS OF SECTION THREE
HUNDRED EIGHTY-FOUR-D OF THIS TITLE AVAILABLE TO ITS MEMBERS; OR WITHIN
SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION.
S 2. This act shall take effect immediately.
FISCAL NOTE.-Pursuant to Legislative Law, Section 50:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15580-02-2
A. 10126 2
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) before the date of enactment of this legislation 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 Comp-
troller 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 Informa-
tion.
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 Quali-
fication Standards to render the actuarial opinion contained herein.
This estimate, dated January 13, 2012, and intended for use only
during the 2012 Legislative Session, is Fiscal Note No. 2012-53,
prepared by the Actuary for the New York State and Local Police and Fire
Retirement System.