senate Bill S6820

2013-2014 Legislative Session

Relates to supplemental military retirement allowances for members of public retirement systems of the state

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Mar 13, 2014 referred to civil service and pensions

S6820 - Bill Details

Current Committee:
Senate Civil Service And Pensions
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §§1000, 78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd

S6820 - Bill Texts

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Relates to supplemental military retirement allowances for members of public retirement systems of the state.

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BILL NUMBER:S6820

TITLE OF BILL: 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

PURPOSE: This bill intends to provide veterans who have retired from
public service in the state with a veterans pension benefit similar to
that which active veteran public employees are entitled to receive.

SUMMARY OF PROVISIONS:

This bill would: 1. Provide that a member of a public retirement
system of the State of New York who retired prior to December
twenty-first, nineteen hundred ninety-eight may make application to
the retirement system for a supplemental military allowance;

2. Apply to persons who meet the eligibility requirements of the
veteran's service credit buy back law;

3. Provide a supplemental military allowance equal to .25% for each
month of military service of such person, to a maximum of 36 months;

4. Provide that the supplemental military allowance shall apply to the
first $15,000, prior to optional modification, of the retired person;
and

5. Require the application for the supplemental military allowance be
made no later than December 31, 2014.

EXISTING LAW: Chapter 548 of the Laws of 2000 permits veterans in
active public service to have up to three years of military service
credit added to their retirement service. There is no provision to
allow public retirees to receive a commensurate benefit. This
legislation provides that benefit.

JUSTIFICATION: The Veterans Service Credit of 2000 permitted active
military public employees who served in the military during specific
military conflict to purchase up to three years retirement credit for
that military service. This was the first opportunity veterans had to
include their military service in their public retirement plan since
1976.

Many Korean veterans were not eligible for that 1976 buy back law.
Vietnam veterans were just entering public service at that time. In
the ensuring years, many of these veterans provided years of dedicated
public service arid retired without the ability to add military credit
to their retirement. Current employees now have that ability.

It is unfair to ignore the service provided by veterans to our state
and country now that active employees can receive this benefit. This
bill overcomes that injustice by providing retired veterans with a
comparable supplemental military allowance.

LEGISLATIVE HISTORY: 2008: A.6805-A Towns Amended and recommit to
Governmental Employees Committee 2007: A6695 Towns Governmental


Employees Committee 2006: A5472-A Towns Governmental Employees
Committee 2005: A5472 Towns Governmental Employees Committee 2004:
A8374A Tocci Governmental Employees Committee 2003: A8374 Tocci
Reported to Ways and Means Committee 2002: A9839 Tocci Passed Assembly
2001: A4246 Vitaliano Passed Assembly 2000: A11501 Vitaliano Passed
Assembly

FISCAL IMPLICATIONS: See fiscal notes attached

EFFECTIVE DATE: Immediately.

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

                                  6820

                            I N  S E N A T E

                             March 13, 2014
                               ___________

Introduced  by  Sen.  LARKIN -- 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,  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  FIFTEEN 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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07946-07-4

S. 6820                             2

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:
  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

S. 6820                             3

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,
2015.
  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 applied for this bene-
fit  a cost will be generated. 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:
  The  membership  data  used  in  measuring  the impact of the proposed
change was the same as that used in the March 31, 2013  actuarial  valu-
ation.    Distributions  and  other  statistics can be found in the 2013
Report of the  Actuary  and  the  2013  Comprehensive  Annual  Financial
Report.
  The  actuarial assumptions and methods used are described in the 2010,
2011, 2012 and 2013  Annual  Report  to  the  Comptroller  on  Actuarial
Assumptions,  and  the  Codes  Rules and Regulations of the State of New
York: Audit and Control.
  The Market Assets and GASB Disclosures are found in the March 31, 2013
New York State and Local  Retirement  System  Financial  Statements  and
Supplementary Information.
  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 6, 2014 and intended for use only during
the  2014  Legislative  Session, is Fiscal Note No. 2014-74, 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.

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