Assembly Bill A7304

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

                                  7304

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              May 10, 2013
                               ___________

Introduced  by M. of A. RABBITT -- read once and referred to the Commit-
  tee on Governmental Employees

AN ACT to amend the retirement and social security law, in  relation  to
  authorizing  certain veterans of the Korean conflict to obtain retire-
  ment service credit in the New York state teachers' retirement  system
  for such service

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

  Section 1. Subdivision 4 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:
  4.  (A)  To  obtain  such  credit,  a member shall pay such retirement
system, for deposit in the fund used  to  accumulate  employer  contrib-
utions,  a  sum  equal to the product of the number of years of military
service being claimed and three percent of  such  member's  compensation
earned  during the twelve months of credited service immediately preced-
ing the date that the member made application  for  credit  pursuant  to
this  section.  If  permitted  by  rule  or regulation of the applicable
retirement system, the member may  pay  such  member  costs  by  payroll
deduction  for  a period which shall not exceed the time period of mili-
tary service to be credited pursuant to this section. In the  event  the
member leaves the employer payroll prior to completion of payment, he or
she  shall  forward  all  remaining required payments to the appropriate
retirement system prior to the effective date of retirement. If the full
amount of such member costs is not paid to  the  appropriate  retirement
system  prior to the member's retirement, the amount of service credited
shall be proportional to the total amount of the payments made prior  to
retirement.
  (B)  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION SIX OF THIS SECTION
OR ANY OTHER PROVISION OF LAW, A RETIRED MEMBER OF THE  NEW  YORK  STATE
TEACHERS'  RETIREMENT  SYSTEM  MAY  MAKE APPLICATION FOR THE BENEFITS OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05080-02-3
              

A. 7304                             2

THIS SECTION WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS PARAGRAPH FOR
SERVICE DURING THE KOREAN CONFLICT.  UPON THE GRANTING OF SUCH  APPLICA-
TION,  THE RETIREMENT ALLOWANCE OF SUCH RETIRED MEMBER SHALL BE RECALCU-
LATED  AND ANY DEFICIENCY OWED TO HIM OR HER SHALL BE PAID TO HIM OR HER
IN A LUMP SUM, WITH REGULAR INTEREST, WITHIN THIRTY DAYS OF THE GRANTING
OF SUCH APPLICATION. WITHIN SIXTY DAYS OF THE GRANTING OF SUCH  APPLICA-
TION,  THE  RETIREMENT  SYSTEM  SHALL CALCULATE, AND SUCH RETIRED MEMBER
SHALL PAY SUCH RETIREMENT SYSTEM, WITH REGULAR INTEREST, FOR DEPOSIT  IN
THE  FUND  USED TO ACCUMULATE EMPLOYER CONTRIBUTIONS, A SUM EQUAL TO THE
PRODUCT OF THE NUMBER OF YEARS OF MILITARY  SERVICE  BEING  CLAIMED  AND
THREE  PERCENT  OF  SUCH  MEMBER'S COMPENSATION EARNED DURING THE TWELVE
MONTHS OF CREDITED SERVICE IMMEDIATELY PRECEDING THE DATE OF HIS OR  HER
RETIREMENT. AT THE ELECTION OF SUCH RETIRED MEMBER, HE OR SHE MAY OFFSET
THE  PAYMENT  DUE  TO HIM OR HER AGAINST THE PAYMENT DUE FROM HIM OR HER
AND, IF ANY BALANCE REMAINS TO BE PAID BY HIM OR HER, HE  OR  SHE  SHALL
PAY SUCH BALANCE WITHIN SUCH SIXTY DAY PERIOD.
  S 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill would amend subdivision 4 of Section 1000 of the Retirement
and Social Security Law to permit  eligible  retired  members  to  claim
service  credit  for  up  to  three  years of military service performed
during the Korean Conflict. To obtain  such  credit,  the  member  shall
deposit  in  the pension accumulation fund, with regular interest, a sum
equal to the product of the period of military service being claimed and
three percent of his final annual full-time rate of compensation  earned
during  the  twelve  months  of service immediately prior to retirement.
This increase in benefit will be provided retroactively, with a lump sum
representing the sum of the increases back to  the  date  of  retirement
with regular interest, paid within 30 days of the granting of credit.
  It is not possible to determine the total annual cost to the employers
of  members  of the New York State Teachers' Retirement System since the
total amount of service credit which would be claimed  under  this  bill
cannot  be  estimated. However, the cost is estimated to be, on average,
approximately $130,000 for each retired member  granted  service  credit
under this bill if enacted.
  The  source  of this estimate is Fiscal Note 2013-23 dated May 8, 2013
prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
System and is intended for use only during the 2013 Legislative Session.
I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American  Academy  of  Actuaries
and  I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.