S T A T E O F N E W Y O R K
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7479
2013-2014 Regular Sessions
I N A S S E M B L Y
May 22, 2013
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Introduced by M. of A. BENEDETTO, RAMOS -- read once and referred to the
Committee on Governmental Employees
AN ACT to amend the retirement and social security law, the education
law and the administrative code of the city of New York, in relation
to supplemental military retirement allowances for members of public
retirement systems of the state
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1000 of the retirement and social security law is
amended by adding a new subdivision 8-a to read as follows:
8-A. A PERSON WHO RETIRED PRIOR TO DECEMBER TWENTY-FIRST, NINETEEN
HUNDRED NINETY-EIGHT AND WHO WOULD HAVE BEEN ENTITLED TO THE PROVISIONS
OF THIS SECTION, MAY MAKE APPLICATION TO SUCH RETIREMENT SYSTEM NO LATER
THAN DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN FOR A SUPPLEMENTAL
MILITARY RETIREMENT ALLOWANCE PURSUANT TO THIS SUBDIVISION. THE SUPPLE-
MENTAL RETIREMENT ALLOWANCE PROVIDED BY THIS SUBDIVISION SHALL BE IN
LIEU OF ANY BENEFIT OTHERWISE PROVIDED PURSUANT TO THIS SECTION AND ANY
CREDIT GRANTED FOR MILITARY SERVICE WITH ANY RETIREMENT SYSTEM OF THIS
STATE PURSUANT TO ANY OTHER SECTION OF LAW. UPON RECEIPT OF AN APPLICA-
TION, THE RETIREMENT SYSTEM SHALL DETERMINE THE AMOUNT OF SERVICE CREDIT
SUCH PERSON WOULD HAVE BEEN ENTITLED TO RECEIVE PURSUANT TO SUBDIVISIONS
ONE AND TWO OF THIS SECTION, SUBJECT TO THE LIMITATIONS CONTAINED IN
THIS SECTION. THE SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL EQUAL
THE RETIREMENT ALLOWANCE OF SUCH PERSON, COMPUTED WITHOUT OPTIONAL
MODIFICATION AND NOT TO EXCEED FIFTEEN THOUSAND DOLLARS, MULTIPLIED BY
TWENTY-FIVE ONE HUNDREDTHS OF ONE PERCENT PER MONTH OF THE SERVICE CRED-
IT AS DETERMINED PURSUANT TO THIS SUBDIVISION. ONE-TWELFTH OF THE
SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL BE ADDED TO THE RETIRE-
MENT ALLOWANCE OF SUCH PERSON EACH MONTH. THE BENEFIT PAYABLE PURSUANT
TO THIS SECTION SHALL COMMENCE ON THE NEXT RETIREMENT ALLOWANCE PAYABLE
AT LEAST THIRTY DAYS AFTER THE RECEIPT OF AN APPLICATION FROM SUCH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07946-03-3
A. 7479 2
PERSON. FOR THE PURPOSES OF THIS SUBDIVISION, RETIREMENT ALLOWANCE SHALL
EXCLUDE ANY ANNUITY DERIVED FROM VOLUNTARY CONTRIBUTIONS MADE BY THE
INDIVIDUAL, EXCEPT THOSE MADE PURSUANT TO ELECTIONS UNDER SUBDIVISION
ONE OF SECTION FIVE HUNDRED ELEVEN-A OR PARAGRAPH C OF SUBDIVISION THREE
OF SECTION FIVE HUNDRED SIXTEEN OF THE EDUCATION LAW, BUT SHALL INCLUDE
ANY COST OF LIVING ADJUSTMENT DERIVED FROM SECTIONS SEVENTY-EIGHT-A AND
THREE HUNDRED SEVENTY-EIGHT-A OF THIS CHAPTER OR SECTION FIVE HUNDRED
THIRTY-TWO-A OF THE EDUCATION LAW, AS APPLICABLE. THE BENEFIT PAYABLE
PURSUANT TO THIS SUBDIVISION SHALL BE PAYABLE FOR THE LIFE OF THE
RETIRED MEMBER ONLY, EXCEPT THAT THE SURVIVING SPOUSE OF A DECEASED
MEMBER WHO RETIRED UNDER AN OPTION PROVIDING A BENEFIT TO BE CONTINUED
FOR LIFE TO THE SURVIVING SPOUSE AFTER THE DEATH OF THE MEMBER SHALL BE
ENTITLED TO RECEIVE FIFTY PERCENT OF THE MONTHLY BENEFIT THAT THE
RETIRED MEMBER WOULD BE RECEIVING PURSUANT TO THIS SUBDIVISION, IF
LIVING, COMMENCING WITH THE NEXT RETIREMENT ALLOWANCE PAYABLE AT LEAST
THIRTY DAYS AFTER RECEIPT OF AN APPLICATION FROM THE RETIRED MEMBER FOR
THE BENEFIT OR PAYABLE AFTER THE DEATH OF THE RETIRED MEMBER.
S 2. Subdivision b of section 78-a of the retirement and social secu-
rity law, as added by chapter 125 of the laws of 2000, is amended to
read as follows:
b. Said cost-of-living adjustment shall be a percentage of the annual
retirement allowance otherwise payable, computed without optional
modification, but including any benefit derived from subdivision f of
this section [and], any prior year's cost-of-living adjustment derived
from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT
ALLOWANCE DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF
THIS CHAPTER. Said percentage is set forth in subdivision d of this
section.
S 3. Subdivision b of section 378-a of the retirement and social secu-
rity law, as added by chapter 125 of the laws of 2000, is amended to
read as follows:
b. Said cost-of-living adjustment shall be a percentage of the annual
retirement allowance otherwise payable, computed without optional
modification, but including any benefit derived from subdivision f of
this section [and], any prior year's cost-of-living adjustment derived
from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT
ALLOWANCE DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF
THIS CHAPTER. Said percentage is set forth in subdivision d of this
section.
S 4. Subdivision b of section 532-a of the education law, as added by
chapter 125 of the laws of 2000, is amended to read as follows:
b. Said cost-of-living adjustment shall be a percentage of the annual
retirement allowance otherwise payable, computed without optional
modification, excluding any annuity derived from voluntary contributions
made by members, except those made pursuant to elections under subdivi-
sion one of section five hundred eleven-a or paragraph c of subdivision
three of section five hundred sixteen of this article, but including any
benefit derived from subdivision f of this section [and], any prior
year's cost-of-living adjustment derived from this section AND THE
AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE DERIVED FROM
SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THE RETIREMENT AND SOCIAL
SECURITY LAW. Said percentage is set forth in subdivision d of this
section.
S 5. Subdivision b of section 13-696 of the administrative code of the
city of New York, as added by chapter 125 of the laws of 2000, is
amended to read as follows:
A. 7479 3
b. Said cost-of-living adjustment shall be a percentage of the annual
fixed retirement allowance otherwise payable, computed without optional
modification, but including any benefit derived from subdivision f of
this section [and], any prior year's cost-of-living adjustment derived
from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY ALLOWANCE
DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THE RETIRE-
MENT AND SOCIAL SECURITY LAW. Said percentage is set forth in subdivi-
sion d of this section.
S 6. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend Section 1000 of the Retirement and Social Secu-
rity Law to give veterans who retired prior to December 21, 1998 or the
surviving spouse of such a retired veteran who chose a continued life
benefit to the spouse, a supplemental pension equal to their first
$15,000 of single life allowance multiplied by 3% per year for up to
three (3) years of such service credit for military service performed
during certain periods of military conflicts for certain retirees of
public retirement systems in New York State. Retirees who have already
received credit in public retirement systems other than those in New
York State will be allowed to receive credit for these same years of
military service in the New York State and Local Employees' Retirement
System (ERS) and the New York State and Local Police and Fire Retirement
System (PFRS). The annual allowance will be recalculated as of the date
of enactment of this legislation. There would not be any payment
required by an affected retiree for such service. Such retiree may make
application for such supplemental pension no later than December 31,
2014.
The exact number of retirees or surviving spouses that could be
affected by this legislation cannot be readily determined.
ERS Costs: Pursuant to Section 25 of the Retirement and Social Securi-
ty Law, the increased cost to the New York State and Local Employees'
Retirement System would be borne entirely by the State of New York and
would require an itemized appropriation sufficient to pay the cost of
the provision. Once a retiree or surviving spouse applies for this bene-
fit a cost will be generated. Every year a cost will be determined (and
billed to the state) based on those benefiting from this provision.
PFRS Costs: These costs would be shared by the State of New York and
the participating employers in the PFRS.
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 May 9, 2013 and intended for use only during the
2013 Legislative Session, is Fiscal Note No. 2013-91, 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.