S T A T E O F N E W Y O R K
________________________________________________________________________
7491
2013-2014 Regular Sessions
I N A S S E M B L Y
May 22, 2013
___________
Introduced by M. of A. BRINDISI -- read once and referred to the Commit-
tee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
permitting the purchase of military service credit during certain
conflicts whether such service was rendered domestically or on deploy-
ment
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. 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:
2. A member, upon application to such retirement system, may obtain a
total not to exceed three years of service credit for up to three years
of military duty, as defined in section two hundred forty-three of the
military law, if honorably discharged therefrom, REGARDLESS OF WHETHER
SUCH SERVICE WAS RENDERED DOMESTICALLY OR ON DEPLOYMENT, if all or part
of such [services] SERVICE was rendered [in] DURING the military
conflicts referenced below, as follows:
(a) hostilities participated in by the military forces of the United
States in Lebanon, from the first day of June, nineteen hundred eighty-
three to the first day of December, nineteen hundred eighty-seven[, as
established by receipt of the armed forces expeditionary medal, the navy
expeditionary medal, or the marine corps expeditionary medal];
(b) hostilities participated in by the military forces of the United
States in Grenada, from the twenty-third day of October, nineteen
hundred eighty-three to the twenty-first day of November, nineteen
hundred eighty-three[, as established by receipt of the armed forces
expeditionary medal, the navy expeditionary medal, or the marine corps
expeditionary medal];
(c) hostilities participated in by the military forces of the United
States in Panama, from the twentieth day of December, nineteen hundred
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08151-04-3
A. 7491 2
eighty-nine to the thirty-first day of January, nineteen hundred nine-
ty[, as established by receipt of the armed forces expeditionary medal,
the navy expeditionary medal, or the marine corps expeditionary medal];
or
(d) hostilities participated in by the military forces of the United
States, from 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].
S 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would extent to the benefits of Chapter 548, Laws of 2000 to
members of public retirement systems in New York State who rendered any
military service during the periods; 6/1/83 - 12/1/87, 12/20/89 -
1/31/90 or after 8/1/90 until the end of hostilities in Iraq, Kuwait,
Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Oman, the Gulf
of Aden, the Gulf of Oman, the Persian gulf or the Red Sea. The total
service credit granted for any military service shall not exceed three
(3) years. Members must have at least five years of credited service
(not including military service). Tier 1-5 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. Tier 6 members
would be required to make a payment of six percent of their most recent
compensation per year of additional service credit. Currently, military
service credit is available only to members who rendered military
service in these conflicts. This bill would make these benefits avail-
able to members who rendered military service during the time periods of
any of these conflicts, whether domestically or on deployment.
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% (9% for Tier 6) of
an affected 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% (14% for Tier 6) of an affected
members' compensation for each year of additional service that is
purchased.
The exact number of current members as well as future members who
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. Since a member can apply for this service credit at any
time prior to retirement, a precise cost can't be determined until each
member, as well as future members, applies for the service credit. In
addition a retiree can apply for this service credit at any time. Every
year a cost will be determined (and billed to the state) based on those
benefitting 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:
A. 7491 3
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 14, 2013 and intended for use only during the
2013 Legislative Session, is Fiscal Note No. 2013-114, 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.