S T A T E   O F   N E W   Y O R K
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                                  4865

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 9, 2015
                               ___________

Introduced  by  M. of A. FITZPATRICK, TENNEY, DiPIETRO, BORELLI, HAWLEY,
  FINCH, CORWIN, GOODELL, McLAUGHLIN -- read once and  referred  to  the
  Committee on Governmental Employees

AN  ACT to amend the civil service law, in relation to improper employer
  practices relating to the continuation of  pay,  vacation  and  health
  care  benefits;  to  amend  the education law, in relation to employer
  contributions to certain retirement plans;  and  to  amend  the  civil
  service law, in relation to disputed agreements

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

  Section 1. Paragraph (e) of subdivision 1  of  section  209-a  of  the
civil  service  law,  as  amended by chapter 244 of the laws of 2007, is
amended to read as follows:
  (e) to refuse to continue [all the] terms of an expired agreement THAT
RELATE TO LEAVES OF ABSENCE, ACTIVE EMPLOYEES  HEALTH  INSURANCE,  HOLI-
DAYS,  SALARIES  EXCLUDING  STEP  INCREASES,  AND  ALL  OTHER  MANDATORY
SUBJECTS OF A BARGAINING AGREEMENT AS DEFINED BY THE  PUBLIC  EMPLOYMENT
RELATIONS  BOARD  CASE  LAW PRIOR TO ITS CONVERSION DOCTRINE until a new
agreement is negotiated, unless the employee  organization  which  is  a
party  to  such agreement has, during such negotiations or prior to such
resolution of such negotiations, engaged in conduct violative of  subdi-
vision one of section two hundred ten of this article;
  S  2. Subdivision 1-a of section 392 of the education law, as added by
chapter 18 of the laws of 2012, is amended to read as follows:
  1-a. Employer contributions. (A) In the case of any electing  employee
excluded  from  or  not encompassed within a negotiating unit within the
meaning of article fourteen of the civil service law initially hired  on
or  after  July first, two thousand thirteen, the state and the electing
employer shall, during the continuance of his or  her  employment,  make
contributions at the rate of eight per centum of his or her salary.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08173-02-5

              

A. 4865                             2

  (B)  IN  THE CASE OF ANY ELECTING EMPLOYEE INITIALLY HIRED ON OR AFTER
JANUARY FIRST, TWO THOUSAND SIXTEEN, THE STATE AND THE ELECTING EMPLOYER
SHALL, DURING THE CONTINUANCE OF HIS OR HER  EMPLOYMENT,  MAKE  CONTRIB-
UTIONS AT THE RATE OF EIGHT PER CENTUM OF HIS OR HER SALARY.
  S  3. Subdivision 3-a of section 390 of the education law, as added by
chapter 18 of the laws of 2012, is amended to read as follows:
  3-a. (A) Beginning July first, two thousand thirteen, the term "eligi-
ble employees" shall also mean any person excluded from  or  not  encom-
passed  within a negotiating unit within the meaning of article fourteen
of the civil service law who would otherwise be entitled  to  receive  a
benefit  under  the  retirement and social security law or the education
law initially hired on or after July first, two thousand  thirteen  with
estimated  annual  wages  of seventy-five thousand per annum or greater.
Such estimate of annual wages to determine eligibility for the  purposes
of  this subdivision shall be provided by the employer. For the purposes
of this subdivision,  a  newly  hired  state  employee  whose  immediate
preceding employment was with another department, division, or agency of
the state shall not be deemed to be an eligible employee.
  (B)  BEGINNING JANUARY FIRST, TWO THOUSAND SIXTEEN, THE TERM "ELIGIBLE
EMPLOYEES" SHALL ALSO MEAN ANY PERSON WHO WOULD OTHERWISE BE A MEMBER OF
THE NEW YORK STATE EMPLOYEES' RETIREMENT SYSTEM OR THE  NEW  YORK  STATE
TEACHERS'  RETIREMENT  SYSTEM INITIALLY HIRED ON OR AFTER JANUARY FIRST,
TWO THOUSAND SIXTEEN OR CURRENT MEMBERS OF THE NEW YORK STATE EMPLOYEES'
RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM  WHO
ARE NOT YET VESTED.
  (C)  BEGINNING JANUARY FIRST, TWO THOUSAND SIXTEEN, THE TERM "ELIGIBLE
EMPLOYEES" SHALL ALSO MEAN ALL NON-CIVIL SERVICE APPOINTED EMPLOYEES AND
ELECTED OFFICIALS EMPLOYED BY THE STATE OR ANY  OTHER  PUBLIC  EMPLOYER,
EXCEPT  FOR  THOSE NON-CIVIL SERVICE EMPLOYEES AND ELECTED OFFICIALS WHO
HAD PRIOR MEMBERSHIP IN A STATE OR LOCAL RETIREMENT PLAN.
  S 4. Section 209 of the civil service law is amended by adding  a  new
subdivision 7 to read as follows:
  7.    NOTWITHSTANDING  ANY OTHER PROVISION OF LAW TO THE CONTRARY, FOR
ANY DISPUTE THAT IS SUBJECT TO  THE  PROVISIONS  OF  THIS  SECTION,  THE
DETERMINATION  OF  THE  PUBLIC ARBITRATION PANEL ON A DISPUTED AGREEMENT
SHALL NOT CONTAIN AN INCREASE IN ALL COMPENSATION ITEMS SUBJECT TO NEGO-
TIATION WHICH IS GREATER THAN TWO PERCENT  MORE  THAN  ALL  COMPENSATION
ITEMS  SUBJECT  TO  NEGOTIATION RECEIVED BY THE EMPLOYEE ORGANIZATION IN
THE AGREEMENT BETWEEN THE PUBLIC EMPLOYER AND THE EMPLOYEE  ORGANIZATION
IMMEDIATELY PRECEDING THE AGREEMENT BEING ARBITRATED.
  S  5.  This act shall take effect immediately.  Effective immediately,
the addition, amendment and/or repeal of any rule or  regulation  neces-
sary  for  the  implementation  of  this  act  on its effective date are
authorized and directed to be made  and  completed  on  or  before  such
effective date.
  FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
  This bill would:
  1) amend section 209-a of the civil service law (Triborough act) to no
longer continue the terms of certain expired agreements.
  2) amend the Education law to allow any person who would have become a
member  of  either  the  New  York State and Local Employees' Retirement
System (NYS&LERS) or the  New  York  State  Teachers  Retirement  System
(NYSTRS)  as well as current members who are not yet vested employees of
either NYS&LERS or the NYSTRS  to  join  the  SUNY  optional  retirement
system  on  or  after  January 1, 2016. In addition this bill will allow
non-civil service employees and elected  officials  who  have  no  prior

A. 4865                             3

membership  in  a  state or local retirement plan join the SUNY optional
retirement system on or after January 1, 2016.
  Pursuant to Chapter 18 of the Laws of 2012, participation currently is
optional in a defined contribution plan for non-union employees hired on
or after July 1, 2013 whose salary is $75,000 or higher.
  3) limit binding arbitration awards to a maximum of 2% for all compen-
sation items subject to negotiation.
  There  would  be  additional  NYSLRS administrative expenses to inform
employers and new  members  of  joining  the  SUNY  optional  retirement
system.  These expenses are expected to be small.
  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, 2014  Actuarial  Valu-
ation.    Distributions  and  other  statistics can be found in the 2014
Report of the  Actuary  and  the  2014  Comprehensive  Annual  Financial
Report.
  The  actuarial assumptions and methods used are described in the 2010,
2011, 2012, 2013 and 2014 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, 2014
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  January  28,  2015,  and intended for use only
during the 2015 Legislative Session, is Fiscal Note No. 2015-44 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.