Senate Bill S3722

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

                                  3722

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 12, 2013
                               ___________

Introduced  by Sen. NOZZOLIO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions

AN ACT to amend the retirement and social security law, in  relation  to
  providing  credit to members of public retirement systems of the state
  for certain military service during the Iranian hostage crisis

  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, if all or part of such
services was rendered in the military  conflicts  referenced  below,  as
follows:
  (a)  HOSTILITIES  PARTICIPATED IN BY THE MILITARY FORCES OF THE UNITED
STATES IN IRAN, FROM THE FOURTH DAY OF NOVEMBER, NINETEEN HUNDRED SEVEN-
TY-NINE TO THE TWENTIETH DAY OF JANUARY, NINETEEN HUNDRED EIGHTY-ONE, 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 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)]  (C)  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01774-02-3

              

S. 3722                             2

expeditionary medal, the navy expeditionary medal, or the  marine  corps
expeditionary medal;
  [(c)]  (D)  hostilities  participated in by the military forces of the
United States in Panama, from the twentieth day  of  December,  nineteen
hundred eighty-nine to the thirty-first day of January, nineteen hundred
ninety,  as  established  by  receipt  of the armed forces expeditionary
medal, the navy expeditionary medal, or the marine  corps  expeditionary
medal; or
  [(d)]  (E)  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.--The fiscal note, required by Section 50 of the Legisla-
tive Law, which may not be altered and which must  be  appended  to  the
bill in its entirety, is:
  This  bill  would  extend the benefits of Chapter 548, Laws of 2000 to
members of public retirement systems in  New  York  State  who  rendered
military  service  during  the  period of conflict in Iran from 11/4/79-
1/20/81, as established by the receipt of the armed forces expeditionary
medal, the navy expeditionary medal or the  marine  corps  expeditionary
medal.  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.
  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. 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:

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  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  February  12,  2013  and intended for use only
during the  2013  Legislative  Session,  is  Fiscal  Note  No.  2013-84,
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.