Assembly Bill A5325

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

                                  5325

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 22, 2013
                               ___________

Introduced by M. of A. ABBATE -- read once and referred to the Committee
  on Governmental Operations

AN  ACT  to amend the retirement and social security law, in relation to
  retirement  benefits  for  employees  of  the  state  office  of  fire
  prevention and control

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

  Section 1. Subdivision 11 of section 302 of the retirement and  social
security law is amended by adding a new paragraph i to read as follows:
  I.  SERVICE IN THE POSITIONS OF STATE FIRE ADMINISTRATOR, DEPUTY STATE
FIRE ADMINISTRATOR AND FIRE PROTECTION SPECIALISTS I, II AND III IN  THE
STATE OFFICE OF FIRE PREVENTION AND CONTROL.
  S 2. Subdivision c of section 340 of the retirement and social securi-
ty law is amended by adding a new paragraph 2-c to read as follows:
  2-C.  STATE  FIRE ADMINISTRATORS, DEPUTY STATE FIRE ADMINISTRATORS AND
FIRE PROTECTION SPECIALISTS I, II AND III EMPLOYED IN THE  STATE  OFFICE
OF  FIRE  PREVENTION  AND CONTROL SHALL HAVE ONE YEAR FROM THE EFFECTIVE
DATE OF THIS SUBDIVISION TO MAKE APPLICATION FOR MEMBERSHIP IN  THE  NEW
YORK  STATE  AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM AND UPON FILING
SUCH AN APPLICATION SHALL BE TRANSFERRED TO THE NEW YORK STATE AND LOCAL
POLICE AND FIRE RETIREMENT SYSTEM AND SHALL BE COVERED BY SECTION  THREE
HUNDRED  EIGHTY-FOUR-D OF THIS ARTICLE NOTWITHSTANDING THE PROVISIONS OF
SECTION THREE HUNDRED FORTY-THREE OF THIS  TITLE.  UPON  REQUEST  FOR  A
TRANSFER  OF  CREDIT,  THE  RESERVE  ON  SUCH MEMBER'S BENEFITS SHALL BE
DETERMINED BY THE ACTUARY AND SHALL BE TRANSFERRED FROM THE  APPROPRIATE
FUND  OF  THE FIRST SYSTEM TO THE APPROPRIATE FUND OF THE SECOND SYSTEM.
STATE OFFICE OF FIRE PREVENTION AND CONTROL EMPLOYEES TRANSFERRED PURSU-
ANT TO THIS PARAGRAPH MUST SERVE ONE YEAR UNDER THE NEW PLAN BEFORE THEY
MAY RECEIVE A GREATER SERVICE RETIREMENT BENEFIT THAN  THEY  WOULD  HAVE
RECEIVED HAD THEY NOT TRANSFERRED TO SUCH NEW PLAN.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08298-01-3

              

A. 5325                             2

  S  3.  Section  384-d  of  the  retirement  and social security law is
amended by adding a new subdivision z to read as follows:
  Z.  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SECTION, SERVICE AS A
STATE FIRE  ADMINISTRATOR,  DEPUTY  STATE  FIRE  ADMINISTRATOR  OR  FIRE
PROTECTION  SPECIALIST I, II OR III EMPLOYED BY THE STATE OFFICE OF FIRE
PREVENTION AND CONTROL SHALL BE INCLUDED FOR THE PURPOSES  OF  COMPUTING
POLICE OR FIRE SERVICE FOR RETIREMENT PURSUANT TO THIS SECTION.
  S 4. The costs attributable to this act shall be borne by the state of
New York.
  S  5.  Notwithstanding any other provision of law, any employee trans-
ferring service pursuant to the provisions of this act  shall  not  lose
credit for any service as a result of such transfer.
  S 6. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would  allow certain employees in the State Office of Fire
Prevention and Control to transfer to  the  New  York  State  and  Local
Police and Fire Retirement System and to be covered by the provisions of
Section 384-d, the twenty (20) year half pay retirement plan.
  If  this bill is enacted, we anticipate that there will be an increase
of approximately $570,000 in the annual contributions of  the  State  of
New York for the fiscal year ending March 31, 2014.
  In addition to the annual contributions discussed above, there will be
an  immediate  past  service  cost  of approximately $4.67 million which
would be borne by the State of New York as a one time payment,  assuming
a payment date of March 1, 2014.
  It should be noted that in addition to the increase in annual contrib-
utions given above, there would be increases in annual contributions for
future  members  who  would  be Tier 6 members of the New York State and
Local Police and Fire Retirement System rather than Tier  6  members  of
the New York State and Local Employees' Retirement System.
  These  estimated  costs  are based on one hundred (100) affected State
Office of Fire Prevention and Control employees, with a total  estimated
salary  of  approximately  $6.8 million for the fiscal year ending March
31, 2012.
  Summary of relevant resources:
  Data: March 31, 2012 Actuarial Year End  File  with  distributions  of
membership  and  other  statistics  displayed  in the 2012 Report of the
Actuary and 2012 Comprehensive Annual Financial Report.
  Assumptions and Methods: 2010, 2011 and  2012  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, 2012 New York State and
Local Retirement System Financial Statements and Supplementary  Informa-
tion.
  Valuations  of Benefit Liabilities and Actuarial Assets: summarized in
the 2012 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 December 18,  2012  and  intended  for  use  only
during  the  2013  Legislative  Session,  is  Fiscal  Note  No. 2013-23,
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.