A. 8058 2
5. "ELIGIBLE EMPLOYEE" MEANS A PERSON WHO IS A MEMBER OF A RETIREMENT
SYSTEM OR A PARTICIPANT IN AN OPTIONAL RETIREMENT PROGRAM WHO IS AN
EMPLOYEE OF THE STATE UNIVERSITY OF NEW YORK HEALTH SCIENCE CENTER AT
BROOKLYN INCLUDING ANY ELIGIBLE EMPLOYEE WHO HAS BEEN OR WILL BE IDENTI-
FIED FOR LAYOFF, NON-RENEWAL OF AN EMPLOYMENT CONTRACT OR TERMINATION OF
EMPLOYMENT BECAUSE OF ECONOMY, CONSOLIDATION OR ABOLITION OF FUNCTIONS,
CURTAILMENT OR OTHERWISE.
6. "ACTIVE SERVICE" MEANS SERVICE WHILE BEING PAID ON THE PAYROLL,
PROVIDED THAT (A) A LEAVE OF ABSENCE WITH PAY SHALL BE DEEMED ACTIVE
SERVICE; AND (B) OTHER APPROVED LEAVE WITHOUT PAY NOT TO EXCEED TWELVE
WEEKS FROM JANUARY FIRST, TWO THOUSAND THIRTEEN AND THE COMMENCEMENT OF
THE DESIGNATED OPEN PERIOD.
7. "OPEN PERIOD" MEANS THE PERIOD BEGINNING WITH THE COMMENCEMENT DATE
AS DEFINED IN PARAGRAPH EIGHT OF THIS SUBDIVISION AND SHALL NOT BE MORE
THAN SIXTY DAYS OR LESS THAN THIRTY DAYS IN LENGTH, AS SPECIFIED BY THE
PARTICIPATING EMPLOYER PURSUANT TO SUBDIVISION C OF THIS SECTION.
8. "COMMENCEMENT DATE" MEANS THE FIRST DAY THE RETIREMENT INCENTIVE
AUTHORIZED BY THIS SECTION SHALL BE MADE AVAILABLE, WHICH SHALL MEAN A
DATE WHICH SHALL OCCUR NO LATER THAN AUGUST FIRST, TWO THOUSAND THIR-
TEEN. FOR THE PURPOSES OF RETIREMENT PURSUANT TO THIS SECTION, A
SERVICE RETIREMENT APPLICATION MUST BE FILED WITH THE APPROPRIATE
RETIREMENT SYSTEM NOT LESS THAN FOURTEEN DAYS PRIOR TO THE EFFECTIVE
DATE OF RETIREMENT TO BECOME EFFECTIVE, UNLESS A SHORTER PERIOD OF TIME
IS PERMITTED UNDER LAW.
B. NOTICE TO EMPLOYER. ALL ELIGIBLE EMPLOYEES DESIRING TO AVAIL THEM-
SELVES OF THE RETIREMENT INCENTIVE PROVIDED BY THIS SECTION SHALL
PROVIDE WRITTEN NOTICE TO HIS OR HER EMPLOYER ON OR BEFORE THE FOUR-
TEENTH DAY PRECEDING THE END OF THE OPEN PERIOD. FAILURE TO PROVIDE
SUCH WRITTEN NOTICE SHALL RENDER THE EMPLOYEE INELIGIBLE FOR THE RETIRE-
MENT INCENTIVE PROVIDED BY THIS SECTION.
C. ELECTION BY PARTICIPATING EMPLOYER. 1. ON OR BEFORE JULY THIRTY-
FIRST, TWO THOUSAND THIRTEEN, THE PARTICIPATING EMPLOYER MAY ELECT TO
PROVIDE ITS ELIGIBLE EMPLOYEES THE RETIREMENT INCENTIVES AUTHORIZED BY
THIS SECTION BY THE ADOPTION OF A RESOLUTION OF ITS GOVERNING BODY. THE
RESOLUTION SHALL SPECIFY THE COMMENCEMENT DATE OF THE PROGRAM AND THE
LENGTH OF THE OPEN PERIOD. A COPY OF SUCH RESOLUTION SHALL BE FILED WITH
THE APPROPRIATE RETIREMENT SYSTEM OR SYSTEMS, AND, IF APPLICABLE, ON
FORMS PROVIDED BY SUCH SYSTEM.
2. IN THE EVENT THAT THE PARTICIPATING EMPLOYER FAILS TO ESTABLISH A
COMMENCEMENT DATE FOR THE RETIREMENT BENEFIT ESTABLISHED UNDER THIS
SECTION, THE COMMENCEMENT DATE FOR THE ELIGIBLE EMPLOYEES SHALL BE
AUGUST FIRST, TWO THOUSAND THIRTEEN.
D. EMPLOYEE ELIGIBILITY. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
ANY ELIGIBLE EMPLOYEE WHO:
1. HAS BEEN CONTINUOUSLY IN THE ACTIVE SERVICE OF THE PARTICIPATING
EMPLOYER FROM JANUARY FIRST, TWO THOUSAND TWELVE TO THE DATE IMMEDIATELY
PRIOR TO THE COMMENCEMENT DATE OF THE APPLICABLE OPEN PERIOD;
2. FILES AN APPLICATION FOR SERVICE RETIREMENT WITH THE APPROPRIATE
RETIREMENT SYSTEM, OR FILES THE APPROPRIATE APPLICATION AND AUTHORI-
ZATION FORM WITH THE OPTIONAL RETIREMENT PROGRAM AND A DULY ACKNOWLEDGED
RETIREMENT INCENTIVE FORM FOR SUCH PROGRAM WITH THE APPROPRIATE PERSON-
NEL OFFICE, THAT IS EFFECTIVE DURING THE OPEN PERIOD; AND
3. IS OTHERWISE ELIGIBLE FOR A SERVICE RETIREMENT AS OF THE EFFECTIVE
DATE OF THE APPLICATION FOR RETIREMENT SHALL BE ENTITLED TO THE RETIRE-
MENT INCENTIVE PROVIDED IN THIS SECTION. IF NOT OTHERWISE ELIGIBLE FOR
A SERVICE RETIREMENT, THE FOLLOWING PERSON SHALL BE DEEMED TO SATISFY
A. 8058 3
THE ELIGIBILITY CONDITION OF THIS SECTION: A PERSON WHO IS AT LEAST AGE
FIFTY WITH TEN OR MORE YEARS SERVICE AS OF THE EFFECTIVE DATE OF RETIRE-
MENT (OTHER THAN A MEMBER OF A RETIREMENT PLAN WHICH PROVIDES FOR HALF-
PAY PENSION UPON COMPLETION OF TWENTY-FIVE YEARS OR LESS SERVICE WITHOUT
REGARD TO AGE); A MEMBER OF A RETIREMENT PLAN WHICH PROVIDES FOR
HALF-PAY PENSION UPON COMPLETION OF TWENTY-FIVE YEARS OF SERVICE WITHOUT
REGARD TO AGE WHO HAS NOT ACCRUED, EXCLUDING ADDITIONAL CREDIT GRANTED
PURSUANT TO THIS SECTION, THE MINIMUM NUMBER OF YEARS OF SERVICE
REQUIRED TO RETIRE WITH AN ALLOWANCE EQUAL TO FIFTY PERCENT OF FINAL
AVERAGE SALARY UNDER SUCH PLAN, BUT HAS, WITH THE INCLUSION OF THE ADDI-
TIONAL CREDIT PROVIDED UNDER THIS SECTION, ACCRUED SUCH NUMBER OF YEARS
OF CREDIT; OR A PARTICIPANT IN AN OPTIONAL RETIREMENT PLAN AT LEAST
FIFTY YEARS OF AGE WITH TEN YEARS OF SERVICE ON AN ANNUAL SALARY BASIS
WITH HIS OR HER EMPLOYER AS OF THE DATE OF THE RETIREMENT.
E. RETIREMENT INCENTIVE. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
AN ELIGIBLE EMPLOYEE WHO IS:
1. A MEMBER OF A RETIREMENT SYSTEM AND WHO IS ENTITLED TO A RETIREMENT
INCENTIVE PURSUANT TO THIS SECTION SHALL RECEIVE A RETIREMENT INCENTIVE
OF ONE-TWELFTH OF A YEAR OF ADDITIONAL RETIREMENT CREDIT FOR EACH YEAR
OF PENSION SERVICE CREDITED AS OF THE DATE OF RETIREMENT, UP TO A MAXI-
MUM OF THREE YEARS OF RETIREMENT SERVICE CREDIT AT THE TIME OF RETIRE-
MENT.
2. AN ELIGIBLE EMPLOYEE WHO IS COVERED BY THE PROVISIONS OF ARTICLE
FIFTEEN OF THIS CHAPTER SHALL RETIRE UNDER THE PROVISIONS OF ARTICLE
FIFTEEN OF THIS CHAPTER. THE AMOUNT OF SUCH BENEFIT FOR AN ELIGIBLE
EMPLOYEE WHO IS COVERED BY ARTICLE FIFTEEN OF THIS CHAPTER AND RETIRES
UNDER THE PROVISIONS OF THIS SECTION, OTHER THAN A MEMBER WITH THIRTY OR
MORE YEARS OF SERVICE IN THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIRE-
MENT SYSTEM OR A TEACHERS' RETIREMENT SYSTEM, SHALL BE REDUCED BY SIX
PERCENT FOR EACH OF THE FIRST TWO YEARS BY WHICH RETIREMENT PRECEDES AGE
SIXTY-TWO, PLUS A FURTHER REDUCTION OF THREE PERCENT FOR EACH YEAR BY
WHICH RETIREMENT PRECEDES AGE SIXTY. SUCH REDUCTION SHALL BE PRORATED
FOR PARTIAL YEARS. THE AMOUNT OF SUCH BENEFIT FOR AN ELIGIBLE EMPLOYEE
WITH THIRTY OR MORE YEARS OF SERVICE WHO IS A MEMBER OF THE NEW YORK
STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR A TEACHERS' RETIREMENT
SYSTEM SHALL BE REDUCED BY FIVE PERCENT FOR EACH YEAR BY WHICH RETIRE-
MENT PURSUANT TO THIS SECTION PRECEDES AGE FIFTY-FIVE.
3. AN ELIGIBLE EMPLOYEE SERVING IN AN ELIGIBLE TITLE WHO IS COVERED BY
ARTICLE ELEVEN OF THIS CHAPTER SHALL RETIRE UNDER THE PROVISIONS OF SUCH
ARTICLE. THE AMOUNT OF SUCH BENEFIT FOR AN ELIGIBLE EMPLOYEE COVERED BY
ARTICLE ELEVEN OF THIS CHAPTER OTHER THAN A MEMBER OF A TEACHERS'
RETIREMENT SYSTEM OR A MEMBER OF THE NEW YORK STATE AND LOCAL EMPLOYEES'
RETIREMENT SYSTEM WITH THIRTY OR MORE YEARS OF SERVICE SHALL BE REDUCED
BY SIX PERCENT FOR EACH OF THE FIRST TWO YEARS BY WHICH RETIREMENT
PURSUANT TO THIS SECTION PRECEDES AGE SIXTY-TWO, PLUS A FURTHER
REDUCTION OF THREE PERCENT FOR EACH YEAR BY WHICH RETIREMENT PURSUANT TO
THIS SECTION PRECEDES AGE SIXTY, PROVIDED, HOWEVER, THE FOREGOING
REDUCTIONS SHALL NOT APPLY: (A) IN ANY CASE WHERE AN ELIGIBLE EMPLOYEE
CAN RETIRE PURSUANT TO A PLAN WHICH PERMITS RETIREMENT FOR SERVICE WITH
IMMEDIATE PAYABILITY, EXCLUSIVE OF THIS ACT, PRIOR TO THE AGE OF FIFTY-
FIVE OR (B) TO ANY TIME PERIOD SUBSEQUENT TO THE POINT AT WHICH AN
ELIGIBLE EMPLOYEE CAN RETIRE FOR SERVICE WITHOUT REDUCTION OF HIS OR HER
SERVICE RETIREMENT ALLOWANCE PURSUANT TO ARTICLE SIXTEEN OF THIS CHAP-
TER. SUCH REDUCTION SHALL BE PRORATED FOR PARTIAL YEARS. THE AMOUNT OF
SUCH BENEFIT FOR AN ELIGIBLE EMPLOYEE WHO IS A MEMBER OF A TEACHERS'
RETIREMENT SYSTEM OR A MEMBER OF THE NEW YORK STATE AND LOCAL EMPLOYEES'
A. 8058 4
RETIREMENT SYSTEM WITH THIRTY OR MORE YEARS OF SERVICE SHALL BE REDUCED
BY FIVE PERCENT FOR EACH YEAR BY WHICH RETIREMENT PURSUANT TO THIS
SECTION PRECEDES AGE FIFTY-FIVE. SUCH REDUCTION SHALL BE PRORATED FOR
PARTIAL YEARS.
4. AN ELIGIBLE EMPLOYEE WHO IS NOT COVERED BY ARTICLE ELEVEN OR
FIFTEEN OF THIS CHAPTER SHALL RETIRE UNDER THE PROVISIONS OF THE PLAN BY
WHICH HE OR SHE IS COVERED. THE AMOUNT OF SUCH BENEFIT SHALL BE REDUCED
BY FIVE PERCENT FOR EACH YEAR BY WHICH RETIREMENT PURSUANT TO THIS
SECTION PRECEDES AGE FIFTY-FIVE, PROVIDED, HOWEVER, THE FOREGOING
REDUCTIONS SHALL NOT APPLY IN ANY CASE WHERE AN ELIGIBLE EMPLOYEE CAN
RETIRE PURSUANT TO A PLAN WHICH PERMITS RETIREMENT FOR SERVICE WITH
IMMEDIATE PAYABILITY, EXCLUSIVE OF THIS SECTION, PRIOR TO THE AGE OF
FIFTY-FIVE. SUCH REDUCTION SHALL BE PRORATED FOR PARTIAL YEARS.
5. AN ELIGIBLE EMPLOYEE WHO PARTICIPATES IN A RETIREMENT PLAN WHICH
PROVIDES FOR A RETIREMENT ALLOWANCE EQUAL TO FIFTY PERCENT OF FINAL
AVERAGE SALARY UPON THE COMPLETION OF TWENTY-FIVE YEARS OF SERVICE WITH-
OUT REGARD TO AGE AND WHO IS OTHERWISE ELIGIBLE TO RETIRE SHALL RETIRE
UNDER THE PROVISIONS OF SUCH PLAN. SUCH EMPLOYEE SHALL, AT THE TIME OF
RETIREMENT, BE CREDITED WITH ONE-TWELFTH OF A YEAR OF ADDITIONAL RETIRE-
MENT SERVICE CREDIT FOR EACH YEAR OF SERVICE CREDITED UNDER SUCH PLAN AS
OF THE DATE OF RETIREMENT, UP TO A MAXIMUM OF THREE YEARS OF RETIREMENT
SERVICE CREDIT. IF SUCH EMPLOYEE HAS NOT ACCRUED, EXCLUDING ADDITIONAL
CREDIT GRANTED PURSUANT TO THIS SECTION, THE MINIMUM NUMBER OF YEARS OF
SERVICE REQUIRED TO RETIRE WITH AN ALLOWANCE EQUAL TO FIFTY PERCENT OF
FINAL AVERAGE SALARY UNDER SUCH PLAN, BUT HAS, WITH THE INCLUSION OF THE
ADDITIONAL CREDIT PROVIDED UNDER THIS SECTION, ACCRUED SUCH NUMBER OF
YEARS OF CREDIT, THE BENEFIT PAYABLE SHALL BE THE PERCENTAGE OF FINAL
AVERAGE SALARY THAT WOULD ORDINARILY BE APPLICABLE TO SUCH INDIVIDUAL
UPON RETIREMENT WITH SUCH AMOUNT OF CREDIT, INCLUDING INCENTIVE CREDIT,
REDUCED BY FIVE PER CENTUM PER YEAR FOR EACH YEAR BY WHICH THE NUMBER OF
YEARS OF SERVICE OTHERWISE REQUIRED TO RETIRE WITH AN ALLOWANCE EQUAL TO
FIFTY PERCENT OF FINAL AVERAGE SALARY UNDER SUCH PLAN EXCEEDS THE AMOUNT
OF SERVICE CREDITED TO SUCH EMPLOYEE UNDER SUCH PLAN AT RETIREMENT
EXCLUDING THE ADDITIONAL RETIREMENT INCENTIVE SERVICE CREDIT PROVIDED
PURSUANT TO THIS SECTION. SUCH REDUCTION SHALL BE PRORATED FOR PARTIAL
YEARS.
F. OPTIONAL RETIREMENT PROGRAM RETIREMENT INCENTIVE. A PARTICIPANT IN
AN OPTIONAL RETIREMENT PROGRAM WHO IS ENTITLED TO A RETIREMENT INCENTIVE
PURSUANT TO THIS SECTION SHALL RECEIVE AN ADDITIONAL EMPLOYER CONTRIB-
UTION EQUAL TO AN AMOUNT, WHICH SHALL BE CALCULATED AS FOLLOWS:
ONE-TWELFTH FOR EACH YEAR OF SERVICE MULTIPLIED BY FIFTEEN PERCENT
MULTIPLIED BY THE EMPLOYEE'S EARNABLE ANNUAL SALARY RATE IN EFFECT ON
JULY FIRST, TWO THOUSAND THIRTEEN OR THE EFFECTIVE DATE OF THIS SECTION
IF THE EMPLOYEE RETIRES PRIOR TO JULY FIRST, TWO THOUSAND THIRTEEN, SUCH
AMOUNT NOT TO EXCEED FORTY-FIVE PERCENT OF SUCH SALARY RATE. SUCH
CONTRIBUTION SHALL BE MADE TO THE EMPLOYEE'S RETIREMENT ANNUITY UNDER
THE OPTIONAL RETIREMENT PROGRAM UP TO THE MAXIMUM CONTRIBUTION ALLOWABLE
UNDER SECTION 415 OF THE INTERNAL REVENUE CODE. ANY CONTRIBUTION IN
EXCESS OF THAT LIMIT SHALL BE CONTRIBUTED BY THE EMPLOYER TO AN INTERNAL
REVENUE CODE SECTION 403(B) CONTRACT ON BEHALF OF THE EMPLOYEE TO THE
EXTENT IT CAN BE CONTRIBUTED ON A BEFORE-TAX BASIS UNDER THE MAXIMUM
LIMITS ALLOWED UNDER THE INTERNAL REVENUE CODE. CONTRIBUTIONS IN EXCESS
OF THAT AMOUNT SHALL BE PAID IN CASH TO THE PARTICIPANT IN THREE EQUAL
INSTALLMENTS DURING A TWENTY-FOUR MONTH PERIOD COMMENCING ON SUCH ELIGI-
BLE EMPLOYEE'S EFFECTIVE DATE OF RETIREMENT.
A. 8058 5
G. INTERNAL REVENUE CODE LIMITS. NOTHING IN THIS SECTION SHALL BE USED
TO PROVIDE BENEFITS THAT SHALL EXCEED THE LIMITS CONTAINED IN SECTION
415 OF THE INTERNAL REVENUE CODE. PROVIDED, HOWEVER, ANY SERVICE RETIRE-
MENT BENEFIT WHICH HAS BEEN REDUCED BECAUSE OF SECTION 415 OF THE INTER-
NAL REVENUE CODE SHALL BE INCREASED WHEN AND CONSISTENT WITH THE DOLLAR
LIMITS IN SECTION 415 OF THE INTERNAL REVENUE CODE ARE ADJUSTED BY THE
INTERNAL REVENUE SERVICE FOR COST OF LIVING INCREASES. SUCH INCREASES
SHALL NOT INCREASE THE BENEFIT IN EXCESS OF THE SERVICE RETIREMENT BENE-
FIT OTHERWISE PAYABLE.
H. FORFEITURE. ANY ELIGIBLE EMPLOYEE WHO RETIRES PURSUANT TO THE
PROVISIONS OF THIS SECTION AND ENTERS OR REENTERS PUBLIC SERVICE AS
DEFINED IN SUBDIVISION E OF SECTION TWO HUNDRED TEN OF THIS CHAPTER AND
JOINS OR REJOINS ANY PUBLIC RETIREMENT SYSTEM OF THE STATE AS DEFINED IN
SUBDIVISION SIX OF SECTION ONE HUNDRED FIFTY-TWO OF THIS CHAPTER OR
ELECTS TO PARTICIPATE IN AN OPTIONAL RETIREMENT PROGRAM SHALL IF THE
ADDITIONAL BENEFIT WAS PROVIDED PURSUANT TO: (1) PARAGRAPH ONE OF SUBDI-
VISION E OF THIS SECTION, FORFEIT THE ADDITIONAL BENEFIT AUTHORIZED BY
THIS SECTION AT THE TIME OF HIS OR HER SUBSEQUENT RETIREMENT; OR (2)
SUBDIVISION F OF THIS SECTION, REPAY TO THE PARTICIPATING EMPLOYER SUCH
ADDITIONAL CONTRIBUTION TOGETHER WITH THE APPROPRIATE INTEREST AS DETER-
MINED BY THE APPROPRIATE RETIREMENT SYSTEM.
I. MAXIMUM RETIREMENT BENEFIT. NOTWITHSTANDING ANY OTHER PROVISION OF
LAW, IF THE SERVICE RETIREMENT BENEFIT OF A MEMBER OF A RETIREMENT
SYSTEM IS SUBJECT TO A MAXIMUM RETIREMENT BENEFIT, THE ADDITIONAL BENE-
FIT AUTHORIZED BY THIS SECTION WILL BE COMPUTED BY MULTIPLYING THE FINAL
AVERAGE SALARY TIMES THE NUMBER OF YEARS OF SERVICE CREDIT GRANTED BY
SUBDIVISION E OF THIS SECTION TIMES THE BENEFIT FRACTION OF THE PLAN
UNDER WHICH SUCH MEMBER RETIRES.
J. PAYMENT OF COSTS. THE PENSION BENEFIT COSTS OF THIS SECTION SHALL
BE PAID BY THE PARTICIPATING EMPLOYER AS PROVIDED BY APPLICABLE LAW FOR
EACH RETIREMENT SYSTEM COVERED BY THIS SECTION OVER A PERIOD NOT TO
EXCEED FIVE YEARS COMMENCING IN THE STATE FISCAL YEAR ENDING MARCH THIR-
TY-FIRST, TWO THOUSAND FOURTEEN.
K. INELIGIBILITY. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE
BENEFITS PROVIDED BY THIS SECTION SHALL NOT BE MADE AVAILABLE TO ANY
PERSON WHO (1) HAS RECEIVED ANY RETIREMENT INCENTIVE AUTHORIZED BY ANY
PROVISION OF STATE LAW, OR (2) WHO RECEIVES, HAS RECEIVED OR IS ELIGIBLE
TO RECEIVE A PAYMENT IN A LUMP SUM OR IN ANOTHER FORM FROM A RETIREMENT
INCENTIVE PURSUANT TO THE PROVISIONS OF A COLLECTIVE BARGAINING AGREE-
MENT OR BY OTHER ARRANGEMENT WITH HIS OR HER EMPLOYER, UNLESS SUCH
PERSON FILES A WRITTEN STATEMENT WITH HIS OR HER EMPLOYER, A COPY OF
WHICH SHALL BE FORWARDED TO THE APPROPRIATE RETIREMENT SYSTEM, THAT HE
OR SHE AGREES TO WAIVE ANY RIGHT TO SUCH PAYMENT. THE PARTICIPATING
EMPLOYER WHO MAKES AN ELECTION PURSUANT TO THIS SECTION AND WHO OFFERS
OR HAS OFFERED A RETIREMENT INCENTIVE PURSUANT TO THE PROVISIONS OF A
COLLECTIVE BARGAINING AGREEMENT OR BY OTHER ARRANGEMENT SHALL PREPARE,
AND FILE WITH EACH RETIREMENT SYSTEM, A LIST CONTAINING THE NAMES AND
SOCIAL SECURITY NUMBERS OF ALL PERSONS DESCRIBED IN THIS SUBDIVISION.
S 921. FIFTY-FIVE/TWENTY-FIVE YEARS RETIREMENT INCENTIVE. A. DEFI-
NITIONS. FOR PURPOSES OF THIS SECTION:
1. "RETIREMENT SYSTEM" MEANS THE NEW YORK STATE AND LOCAL EMPLOYEES'
RETIREMENT SYSTEM AND THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM.
2. "TEACHERS' RETIREMENT SYSTEM" MEANS THE NEW YORK STATE TEACHERS'
RETIREMENT SYSTEM.
3. "PARTICIPATING EMPLOYER" MEANS THE STATE UNIVERSITY OF NEW YORK.
A. 8058 6
4. "ELIGIBLE EMPLOYEE" MEANS A PERSON WHO IS A MEMBER OF A RETIREMENT
SYSTEM WHO IS AN EMPLOYEE OF THE STATE UNIVERSITY OF NEW YORK HEALTH
SCIENCE CENTER AT BROOKLYN WHO HAS ATTAINED AGE FIFTY-FIVE AND HAS AT
LEAST TWENTY-FIVE YEARS OF CREDITABLE SERVICE IN A RETIREMENT SYSTEM.
5. "ACTIVE SERVICE" MEANS SERVICE WHILE BEING PAID ON THE PAYROLL,
PROVIDED THAT (A) A LEAVE OF ABSENCE WITH PAY SHALL BE DEEMED ACTIVE
SERVICE; (B) OTHER APPROVED LEAVE WITHOUT PAY NOT TO EXCEED TWELVE WEEKS
FROM JANUARY FIRST, TWO THOUSAND THIRTEEN AND THE COMMENCEMENT OF THE
DESIGNATED OPEN PERIOD.
6. "OPEN PERIOD" MEANS THE PERIOD BEGINNING WITH THE COMMENCEMENT DATE
AS DEFINED IN PARAGRAPH SEVEN OF THIS SUBDIVISION AND SHALL NOT BE MORE
THAN SIXTY DAYS OR LESS THAN THIRTY DAYS IN LENGTH. FOR THE PURPOSES OF
RETIREMENT PURSUANT TO THIS SECTION, A SERVICE RETIREMENT APPLICATION
MUST BE FILED WITH THE APPROPRIATE RETIREMENT SYSTEM NOT LESS THAN FOUR-
TEEN DAYS PRIOR TO THE EFFECTIVE DATE OF RETIREMENT TO BECOME EFFECTIVE,
UNLESS A SHORTER PERIOD OF TIME IS PERMITTED UNDER LAW.
7. "COMMENCEMENT DATE" MEANS THE FIRST DAY THE RETIREMENT BENEFIT
MANDATED BY THIS SECTION SHALL BE MADE AVAILABLE, WHICH SHALL MEAN A
DATE WHICH SHALL BE NO LATER THAN AUGUST FIRST, TWO THOUSAND THIRTEEN.
B. ELECTION BY PARTICIPATING EMPLOYER. ON OR BEFORE JULY THIRTY-FIRST,
TWO THOUSAND THIRTEEN, THE PARTICIPATING EMPLOYER MAY ELECT TO PROVIDE
ITS EMPLOYEES THE RETIREMENT INCENTIVE AUTHORIZED BY THIS SECTION BY THE
ADOPTION OF A RESOLUTION OF ITS GOVERNING BODY. THE RESOLUTION SHALL
SPECIFY THE COMMENCEMENT DATE OF THE INCENTIVE AND THE LENGTH OF THE
OPEN PERIOD.
C. COMMENCEMENT DATE. 1. THE PARTICIPATING EMPLOYER, IF IT ELECTS TO
PARTICIPATE PURSUANT TO SUBDIVISION B OF THIS SECTION, SHALL ESTABLISH A
COMMENCEMENT DATE FOR THE RETIREMENT BENEFIT ESTABLISHED UNDER THIS
SECTION BY ITS GOVERNING BODY ADOPTING A RESOLUTION ESTABLISHING A
COMMENCEMENT DATE.
2. IN THE EVENT THAT THE PARTICIPATING EMPLOYER FAILS TO ESTABLISH A
COMMENCEMENT DATE FOR THE RETIREMENT BENEFIT ESTABLISHED UNDER THIS
SECTION, THE COMMENCEMENT DATE FOR THE ELIGIBLE EMPLOYEES SHALL BE
AUGUST FIRST, TWO THOUSAND THIRTEEN.
D. EMPLOYEE ELIGIBILITY. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
ANY ELIGIBLE EMPLOYEE WHO (1) HAS BEEN CONTINUOUSLY IN THE ACTIVE
SERVICE OF THE PARTICIPATING EMPLOYER FROM JANUARY FIRST, TWO THOUSAND
TWELVE TO THE DATE IMMEDIATELY PRIOR TO THE COMMENCEMENT DATE OF THE
APPLICABLE OPEN PERIOD, (2) FILES AN APPLICATION FOR SERVICE RETIREMENT
THAT IS EFFECTIVE DURING THE OPEN PERIOD, AND (3) IS OTHERWISE ELIGIBLE
FOR A SERVICE RETIREMENT AS OF THE EFFECTIVE DATE OF THE APPLICATION FOR
RETIREMENT SHALL BE ENTITLED TO THE RETIREMENT BENEFIT PROVIDED IN THIS
SECTION.
E. TWENTY-FIVE YEAR AGE FIFTY-FIVE INCENTIVE. 1. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW, AN ELIGIBLE EMPLOYEE WHO IS A MEMBER OF A
RETIREMENT SYSTEM AND WHO IS ENTITLED TO A RETIREMENT BENEFIT PURSUANT
TO THIS SECTION MAY RETIRE DURING THE OPEN PERIOD WITHOUT THE REDUCTION
OF HIS OR HER RETIREMENT BENEFIT THAT WOULD OTHERWISE BE IMPOSED BY
ARTICLES ELEVEN AND FIFTEEN OF THIS CHAPTER IF HE OR SHE HAS ATTAINED
THE AGE OF FIFTY-FIVE AND HAS COMPLETED AT LEAST TWENTY-FIVE OR MORE
YEARS OF CREDITABLE SERVICE. AN ELIGIBLE EMPLOYEE WHO IS COVERED BY THE
PROVISIONS OF ARTICLES ELEVEN AND FIFTEEN OF THIS CHAPTER SHALL RETIRE
UNDER THE PROVISIONS OF ARTICLES ELEVEN AND FIFTEEN OF THIS CHAPTER.
2. THE PARTICIPATING EMPLOYER MAY DENY PARTICIPATION IN THE RETIREMENT
BENEFIT PROVIDED BY THIS SECTION IF THE GOVERNING BOARD OF THE PARTIC-
IPATING EMPLOYER MAKES A DETERMINATION THAT THE EMPLOYEE HOLDS A POSI-
A. 8058 7
TION THAT IS DEEMED CRITICAL TO THE MAINTENANCE OF PUBLIC HEALTH AND
SAFETY.
3. THE ACTION OF THE PARTICIPATING EMPLOYER IN DENYING THE RETIREMENT
BENEFIT PROVIDED FOR IN THIS SECTION TO ANY INDIVIDUAL SHALL BE SUBJECT
TO REVIEW IN THE MANNER PROVIDED FOR IN ARTICLE SEVENTY-EIGHT OF THE
CIVIL PRACTICE LAW AND RULES. SUCH ACTION FOR REVIEW PURSUANT TO ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES SHALL ONLY BE
COMMENCED BY THE INDIVIDUAL THAT WAS DENIED THE RETIREMENT BENEFIT
PROVIDED BY THIS SECTION.
4. AFTER MAKING ANY SUCH DETERMINATION UNDER PARAGRAPH TWO OF THIS
SUBDIVISION, THE CHIEF EXECUTIVE OFFICER OR GOVERNING BOARD, AS APPRO-
PRIATE, OF THE PARTICIPATING EMPLOYER SHALL NOTIFY THE APPROPRIATE
RETIREMENT SYSTEM OR TEACHERS' RETIREMENT SYSTEM OF ITS DETERMINATION.
F. REPAYMENT OF COSTS. THE PENSION BENEFIT COSTS OF THIS SECTION SHALL
BE PAID BY THE PARTICIPATING EMPLOYER AS PROVIDED BY APPLICABLE LAW FOR
EACH RETIREMENT SYSTEM COVERED BY THIS SECTION OVER A PERIOD NOT TO
EXCEED FIVE YEARS COMMENCING IN THE STATE FISCAL YEAR ENDING MARCH THIR-
TY-FIRST, TWO THOUSAND FOURTEEN.
S 922. PAYMENT INCENTIVE. A. DEFINITIONS. FOR THE PURPOSES OF THIS
SECTION:
1. "ACTIVE SERVICE" SHALL MEAN: SERVICE WHILE BEING PAID ON THE
PAYROLL, PROVIDED THAT (I) A LEAVE OF ABSENCE WITH PAY SHALL BE DEEMED
ACTIVE SERVICE, AND (II) OTHER APPROVED LEAVE WITHOUT PAY NOT TO EXCEED
TWELVE WEEKS FROM JANUARY FIRST, TWO THOUSAND THIRTEEN AND THE COMMENCE-
MENT OF THE DESIGNATED OPEN PERIOD.
2. "COMMENCEMENT DATE" SHALL MEAN: THE FIRST DAY THE PAYMENT INCENTIVE
AUTHORIZED BY THIS SECTION SHALL BE MADE AVAILABLE, WHICH SHALL MEAN A
DATE WHICH SHALL OCCUR NO LATER THAN AUGUST FIRST, TWO THOUSAND THIR-
TEEN.
3. "ELIGIBLE EMPLOYEE" SHALL MEAN: ANY INDIVIDUAL WHO IS PAID A SALARY
OR OTHER FORM OF COMPENSATION BY THE PARTICIPATING EMPLOYER FOR WORKING
ON A FULL-TIME BASIS FOR AT LEAST FIVE YEARS AT THE UNIVERSITY HOSPITAL
OF BROOKLYN, AND WHO IS EITHER (I) NOT A MEMBER OF A RETIREMENT SYSTEM
OR A PARTICIPANT OF AN OPTIONAL RETIREMENT PROGRAM, OR (II) A MEMBER OF
A RETIREMENT SYSTEM OR A PARTICIPANT OF AN OPTIONAL RETIREMENT PROGRAM
WHO IS NOT OTHERWISE ELIGIBLE FOR A SERVICE RETIREMENT ON THE EFFECTIVE
DATE OF THIS ARTICLE, PROVIDED, HOWEVER, THAT "ELIGIBLE EMPLOYEE" SHALL
NOT MEAN AN INDIVIDUAL WHO RECEIVES A BENEFIT ENHANCEMENT OR OPTIONAL
RETIREMENT BENEFIT PURSUANT TO ANOTHER PROVISION OF LAW, INCLUDING BUT
NOT LIMITED TO, SECTIONS NINE HUNDRED TWENTY AND NINE HUNDRED TWENTY-ONE
OF THIS CHAPTER.
4. "OPEN PERIOD" SHALL MEAN: THE PERIOD BEGINNING WITH THE COMMENCE-
MENT DATE AS DEFINED IN PARAGRAPH TWO OF THIS SUBDIVISION AND SHALL NOT
BE MORE THAN SIXTY DAYS OR LESS THAN THIRTY DAYS IN LENGTH, AS SPECIFIED
BY THE PARTICIPATING EMPLOYER.
5. "PARTICIPATING EMPLOYER" SHALL MEAN: THE STATE UNIVERSITY OF NEW
YORK.
B. ELECTION BY PARTICIPATING EMPLOYER. ON OR BEFORE JULY THIRTY-FIRST,
TWO THOUSAND THIRTEEN, THE PARTICIPATING EMPLOYER MAY ELECT TO PROVIDE
ITS ELIGIBLE EMPLOYEES THE PAYMENT INCENTIVE AUTHORIZED BY THIS SECTION
BY THE ADOPTION OF A RESOLUTION BY ITS GOVERNING BODY. THE RESOLUTION
SHALL SPECIFY THE COMMENCEMENT DATE OF THE INCENTIVE AND THE LENGTH OF
THE OPEN PERIOD.
C. NOTICE TO EMPLOYER. ALL ELIGIBLE EMPLOYEES DESIRING TO AVAIL THEM-
SELVES OF THE PAYMENT INCENTIVE PROVIDED IN SUBDIVISION E OF THIS SUBDI-
VISION SHALL PROVIDE WRITTEN NOTICE TO HIS OR HER EMPLOYER ON OR BEFORE
A. 8058 8
THE FOURTEENTH DAY PRECEDING THE END OF THE OPEN PERIOD. FAILURE TO
PROVIDE SUCH WRITTEN NOTICE SHALL RENDER THE EMPLOYEE INELIGIBLE FOR THE
PAYMENT INCENTIVE PROVIDED BY THIS SECTION.
D. EMPLOYEE ELIGIBILITY. NOTWITHSTANDING ANY PROVISIONS OF LAW TO THE
CONTRARY, ANY ELIGIBLE EMPLOYEE WHO (1) HAS BEEN IN THE ACTIVE SERVICE
OF THE PARTICIPATING EMPLOYER FROM JANUARY FIRST, TWO THOUSAND TWELVE TO
THE DAY IMMEDIATELY PRIOR TO THE COMMENCEMENT DATE OF THE APPLICABLE
PERIOD, AND (2) FILES AN APPLICATION FOR A PAYMENT INCENTIVE THAT IS
EFFECTIVE DURING THE OPEN PERIOD SHALL BE ENTITLED TO THE PAYMENT INCEN-
TIVE PROVIDED IN THIS SECTION.
E. PAYMENT INCENTIVE. NOTWITHSTANDING ANY PROVISIONS OF LAW TO THE
CONTRARY, AN ELIGIBLE EMPLOYEE SHALL RECEIVE A PAYMENT INCENTIVE OF ONE
WEEK'S SALARY FOR EACH YEAR OF FULL-TIME EMPLOYMENT UP TO A MAXIMUM OF
THIRTEEN WEEKS OF PAYMENT INCENTIVE, PROVIDED THAT THE EMPLOYEE MUST
LEAVE ACTIVE SERVICE WITHIN SIXTY DAYS AFTER THE PARTICIPATING EMPLOYER
HAS SENT OR DELIVERED A WRITTEN OFFER OF THE INCENTIVE TO THE EMPLOYEE,
AND PROVIDED FURTHER THAT THE PAYMENT INCENTIVE OFFERED TO ANY EMPLOYEE
WHOSE ANNUAL SALARY EXCEEDS ONE HUNDRED THOUSAND DOLLARS, INCLUDING
OVERTIME, SHALL BE LIMITED TO A MAXIMUM OF EIGHT WEEKS.
F. PAYMENT OF COSTS. THE PAYMENT INCENTIVE COSTS OF THIS SECTION SHALL
BE PAID BY THE PARTICIPATING EMPLOYER FROM ITS GENERAL REVENUE FUND.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately.
FISCAL NOTE.--This fiscal note was requested by Member of Assembly
James Brennan. Pursuant to Section 50 of the Legislative Law, the fiscal
note that must be appended in its entirety to this bill is:
This bill would provide a temporary retirement incentive for eligible
employees of the State University of New York Health Science Center at
Brooklyn during the fiscal year 2013-2014. The first provision of this
retirement incentive provides certain eligible employees with a retire-
ment incentive of one-twelfth of a year of additional service credit per
year of accrued service credit up to a maximum of three additional
years. To be eligible, a member must be otherwise eligible for a service
retirement or have attained age 50 or greater, with at least ten years
of service. Members not subject to an early retirement reduction and
less than age 55 at retirement will have their benefit reduced by five
percent for each year their age precedes 55. The second provision of
this retirement incentive would permit members eligible for retirement
under Article 11 or Article 15 of the Retirement and Social Security Law
to retire without early retirement reductions upon attainment of at
least age 55 with 25 years of service. Currently 30 years of service are
required. An eligible employee retiring under one of the provisions must
retire during that provision's designated open period. Such open period
shall commence no later than August 1, 2013 and shall be at least 30
days, but not more than 60 days in length. Members may not receive a
benefit under both provisions of the retirement incentive.
This bill would also provide an incentive payment during the fiscal
year 2013-2014 to certain eligible employees of the State University of
A. 8058 9
New York Health Science Center at Brooklyn who terminate employment. An
eligible employee would receive an incentive payment of one week's sala-
ry for each year of full-time employment up to a maximum of thirteen
weeks provided the employee is not eligible for a service retirement and
leaves active service within 60 days of receiving the payment offer from
the State University of New York Health Science Center at Brooklyn.
Eligible employees with a salary in excess of $100,000, including over-
time, would be limited to a maximum of eight weeks under this payment
incentive. An eligible employee must file an application for the payment
incentive during the designated open period. Such open period shall
commence no later than August 1, 2013 and shall be at least 30 days, but
not more than 60 days in length. Employees would not be permitted to
receive both the retirement incentive and payment incentive provider
under this bill.
The cost of the retirement incentive provided under this bill to
eligible employees of the State University of New York Health Science
Center at Brooklyn is estimated to be approximately $1.4 million assum-
ing all employees who are eligible elect to retire under the incentive.
The actual final cost will depend on the number of employees who actual-
ly elect to retire, and their final service and salary at retirement.
The cost of this retirement incentive shall be paid by the State Univer-
sity of New York Health Science Center at Brooklyn over a period not to
exceed five years commencing the state fiscal year ending March 31,
2014. The cost of the termination payment incentive would be paid by the
State University of New York Health Science Center at Brooklyn out of
its general revenue fund, and therefore does not have any impact on the
Retirement System.
The source of this estimate is Fiscal Note 2013-40 dated June 3, 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.
FISCAL NOTE.--This bill would allow the State University of New York
Health Science Center at Brooklyn (the employer) to elect to provide
their employees who are members of the New York State and Local Employ-
ees' Retirement System (ERS), the New York State Teachers Retirement
System (TRS) or the Optional Retirement Program with two temporary
retirement incentive programs and one employment termination incentive.
Electing employees may elect to receive only one of the incentives.
Using traditional labels from previous incentive programs:
Part A: ERS and TRS members would receive additional service credit
(one-twelfth of a year for each year of service credited as of the date
of retirement, up to a maximum of three years). Further, for certain
members who are not otherwise eligible for a service retirement benefit,
this bill would provide the ability to retire with reductions.
Part B: In addition, this bill would eliminate the early retirement
reductions at 25 years of service for retirement during the election
period for Tier 2, 3, 4, 5 and 6 members of ERS and TRS. The election
period must be for at least 30, but not more than 60 days. The employer
can declare health and safety positions to be ineligible.
Part C: Further, this bill would provide that any employee with at
least 5 years of service with the employer may receive an incentive
payment equal to 1 week of salary for each year of service with the
employer. Electing employees must leave the payroll within 60 days
A. 8058 10
after receiving a written offer of the incentive from the employer. The
payment may not exceed 13 weeks of salary, except that for employees who
earn in excess of $100,000, the payment may not exceed 8 weeks of sala-
ry.
If this bill is enacted, insofar as it affects the New York State and
Local Employees Retirement System (ERS), the additional cost for each
member who receives the benefit of Part A or Part B will vary depending
on the member's age, years of service, plans and final average salary.
Part A: We anticipate that the per-member cost (at retirement) of the
additional service credit benefit will average approximately 70% of a
member's final average salary. This cost will be borne by the employer
electing the incentive over a five-year period commencing with a payment
in the State fiscal year 2013-2014.
Part B: We anticipate that the per-member cost (at retirement) of the
elimination of the early retirement reductions at 25 years of service
will average approximately 120% of a member's final average salary. This
cost will be borne by the employer over a five-year period commencing
with a payment in the State fiscal year 2013-2014.
Part C: The cost for the incentive payments made to employees who are
not eligible for either of Parts A or B will be paid directly by the
employer to the employees. There will not be cost to the System.
This estimate, dated May 17, 2013, and intended for use only during
the 2013 Legislative Session, is Fiscal Note No. 2013-128 prepared by
the Actuary for the New York State and Local Employees' Retirement
System.