S T A T E   O F   N E W   Y O R K
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                                  6942

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 25, 2013
                               ___________

Introduced by M. of A. ABBATE -- read once and referred to the Committee
  on Governmental Employees

AN  ACT  to amend the retirement and social security law, in relation to
  partial lump sum payments for certain members of the  New  York  state
  and local police and fire retirement system

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

  Section 1. Subdivision 2 of section 1100 of the retirement and  social
security  law is amended by adding two new paragraphs d and e to read as
follows:
  D. ANY MEMBER WHO FILES FOR RETIREMENT AFTER BEING ELIGIBLE TO  RETIRE
FOR FOUR YEARS MAY ELECT TO RECEIVE A TWENTY PERCENT LUMP SUM PAYMENT OF
THE  ACTUARIAL EQUIVALENT OF HIS OR HER RETIREMENT ALLOWANCE AT THE TIME
OF RETIREMENT.
  E. ANY MEMBER WHO FILES FOR RETIREMENT AFTER BEING ELIGIBLE TO  RETIRE
FOR  FIVE  YEARS  MAY  ELECT  TO  RECEIVE A TWENTY-FIVE PERCENT LUMP SUM
PAYMENT OF THE ACTUARIAL EQUIVALENT OF HIS OR HER  RETIREMENT  ALLOWANCE
AT THE TIME OF RETIREMENT.
  S 2. This act shall take effect immediately.
  FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
  This  bill  would  allow larger lump sum payments to be made under the
Partial Lump Sum (PLS) program for certain members of the New York State
and Local Police and Fire  Retirement  System  (PFRS).  Currently,  PFRS
members  who  are  eligible  for  the PLS program may elect to receive a
partial lump sum payment of up to 15% of  the  present  value  of  their
actuarially determined retirement allowance at retirement, and a smaller
annual  retirement  allowance  thereafter.  This  proposal would allow a
member who files for service retirement after being eligible  to  retire
for 4 or 5 or more years to be eligible to receive a partial lump sum of
up to 20% or 25%, respectively, of the present value of their actuarial-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10253-01-3

              

A. 6942                             2

ly  determined  retirement  allowance,  and  a smaller annual retirement
allowance thereafter.
  If  this  bill is enacted, there would be administrative costs associ-
ated with redesigned estimate and option forms. There would not be costs
associated with the lump sum payment options  since  payments  would  be
determined  on  an actuarially equivalent basis. Should future proposals
exceed 25%, further analysis will  be  necessary  to  determine  whether
there may be costs due to adverse selection.
  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.
  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 March 18, 2013 and intended for use only during
the 2013 Legislative Session, is Fiscal Note No. 2013-104,  prepared  by
the  Actuary for the New York State and Local Police and Fire Retirement
System.