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

                                  7034

                            I N  S E N A T E

                             April 24, 2012
                               ___________

Introduced  by  Sen.  STEWART-COUSINS -- read twice and ordered printed,
  and when printed to be committed to the Committee on Civil Service and
  Pensions

AN ACT to amend the retirement and social security law, in  relation  to
  military  service  credit  for  combat  veterans  who  served  in  any
  conflicts after August 2, 1990

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

  Section  1.  Paragraph  (d)  of  subdivision  2 of section 1000 of the
retirement and social security law, as added by chapter 548 of the  laws
of 2000, is amended to read as follows:
  (d)  IF SUCH MEMBER IS A VETERAN WHO HAS SERVED IN A COMBAT THEATRE OR
COMBAT ZONE OF OPERATIONS, IN ANY hostilities AND CONFLICTS participated
in by the military forces of the United States, [from] AFTER the  second
day  of August, nineteen hundred ninety, [to the end of such hostilities
in case of a veteran who served in the theater of  operations  including
Iraq,  Kuwait,  Saudi  Arabia, Bahrain, Qatar, the United Arab Emirates,
Oman, the Gulf of Aden, the Gulf of Oman, the Persian Gulf, the Red Sea,
and the airspace above these locations] AS DETERMINED BY  THE  PRESIDENT
OF THE UNITED STATES.
  S 2. This act shall take effect immediately.
  FISCAL  NOTE.--This  bill would allow up to three (3) years of service
credit for members of public retirement systems in New  York  State  who
rendered  military  service  in a combat theater or combat zone of oper-
ations after August 2, 1990 in all hostilities and conflicts  as  deter-
mined  by the president of the United States. Members must have at least
five years of credited service (not including military service). Members
would be required to make a payment  of  three  percent  of  their  most
recent  compensation  per  year  of additional service credit granted by
this bill.
  If this bill is enacted, insofar as this proposal affects the New York
State and Local Employees' Retirement System (ERS), it is estimated that
the past service cost will average  approximately  12%  of  an  affected

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10642-06-2
              

S. 7034                             2

members' compensation for each year of additional service credit that is
purchased.
  Insofar  as  this proposal affects the New York State and Local Police
and Fire Retirement System (PFRS), it is estimated that the past service
cost will average approximately 17% of an affected members' compensation
for each year of additional service that is purchased.
  If less than 300 of the active membership have such  military  service
and  will  benefit by purchasing the service credit, there will be esti-
mated increases in annual contributions of less than $450,000 to employ-
ers in the ERS and less than $170,000 to employers in the PFRS.
  In addition to the above costs, there would be  additional  costs  for
future  members  of  the  Retirement  System's  who  have  such military
service.
  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 April 20, 2012 and intended for use only during
the 2012 Legislative Session, is Fiscal Note No.  2012-91,  prepared  by
the  Actuary  for  the  New  York  State and Local Employees' Retirement
System and the New York State  and  Local  Police  and  Fire  Retirement
System.