Senate Bill S4993

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

                                  4993

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               May 3, 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 military service rendered during periods of military conflict

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

  Section  1.  Paragraphs  (a),  (b) and (c) of subdivision 2 of section
1000 of the retirement and social security law, as added by chapter  548
of  the  laws of 2000, are amended and a new subdivision 6-a is added to
read 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
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
  6-A.  NOTWITHSTANDING  THE  FOREGOING  PROVISIONS  OF THIS SECTION, AN
INDIVIDUAL WHO RETIRED PRIOR TO THE EFFECTIVE DATE OF THIS  SUBDIVISION,
MAY  MAKE  AN  APPLICATION  FOR  CREDIT WITHIN SIX MONTHS FOLLOWING SUCH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01570-04-3
              

S. 4993                             2

EFFECTIVE DATE, IN WHICH EVENT, THE COST TO THE RETIREE WOULD  BE  BASED
ON  THE  TWELVE MONTHS OF CREDITED SERVICE IMMEDIATELY PRECEDING RETIRE-
MENT.   A RETIREMENT SYSTEM SHALL  RECALCULATE  A  RETIREE'S  RETIREMENT
ALLOWANCE RETROACTIVE TO THE DATE OF RETIREMENT TO ACCOUNT FOR ANY ADDI-
TIONAL CREDIT PURCHASED PURSUANT TO THIS SUBDIVISION.
  S 2. This act shall take effect immediately.
  FISCAL NOTE.--This bill would extend the benefits of Chapter 548, Laws
of 2000 to members and retirees of public retirement systems in New York
State  who  rendered  military  services in Lebanon from 6/1/83-12/1/87,
Grenada from 10/23/83-11/21/83 or Panama from 12/20/89-1/31/90  who  did
not  receive  an  expeditionary medal. However, 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 addi-
tional service credit granted by this bill.  Tier  6  members  would  be
required  to  make a payment of six percent of their most recent compen-
sation per year of additional service credit.
  Retirees must apply for this service credit within six months  follow-
ing  the  effective  date of the passage of this bill. Tier 1-5 retirees
would be required to make a payment  of  three  percent  of  the  twelve
months  salary  immediately  preceding retirement for each year of addi-
tional service credit granted by this bill. Tier  6  retirees  would  be
required  to  make  a payment of six percent of the twelve months salary
immediately preceding retirement for each  year  of  additional  service
credit. The increased retirement benefit will be paid retroactive to the
date of retirement.
  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  retirees,  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
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.

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  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 a the American Academy  of  Actuaries  and  meet  the
Qualification  Standards to render the actuarial opinion contained here-
in.
  This estimate, dated May 2, 2013 and intended for use only during  the
2013  Legislative  Session, is Fiscal Note No. 2013-109, 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.