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

                                  7251

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             April 29, 2015
                               ___________

Introduced by M. of A. ABBATE -- Multi-Sponsored by -- M. of A. GOLDFED-
  ER  -- read once and referred to the Committee on Governmental Employ-
  ees

AN ACT to amend the retirement and social security law, in  relation  to
  creating  an  optional  twenty-year retirement plan for certain police
  officers and firefighters who are 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.   The retirement and social  security  law  is  amended  by
adding a new article 26 to read as follows:
                               ARTICLE 26
                          BENEFIT ENHANCEMENTS

SECTION 1400. NON-CONTRIBUTORY BASIS.
        1401. COLLECTIVE BARGAINING.
        1402. PAST SERVICE COSTS.
  S  1400. NON-CONTRIBUTORY BASIS. (A) NOTWITHSTANDING THE PROVISIONS OF
THIS CHAPTER OR ANY OTHER LAW TO THE CONTRARY, A PARTICIPATING  EMPLOYER
IN  THE  NEW  YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM MAY
ELECT  TO  PROVIDE  ITS  EMPLOYEES  WHO  ARE  MEMBERS  OF  THE  OPTIONAL
TWENTY-YEAR  RETIREMENT  PLAN FOR POLICE AND FIREFIGHTERS ELIGIBILITY TO
PARTICIPATE ON A NON-CONTRIBUTORY BASIS.
  (B) NO MEMBER WHO PARTICIPATES  IN  THIS  NON-CONTRIBUTORY  RETIREMENT
PLAN SHALL BE ENTITLED TO A REFUND OF PREVIOUS CONTRIBUTIONS MADE TO THE
CONTRIBUTORY TWENTY-YEAR RETIREMENT FUND.
  S 1401. COLLECTIVE BARGAINING. A DEMAND IN COLLECTIVE BARGAINING NEGO-
TIATIONS FOR THE ADDITIONAL BENEFIT PROVIDED BY SECTION FOURTEEN HUNDRED
OF  THIS ARTICLE SHALL NOT BE SUBJECT TO THE PROVISIONS OF PARAGRAPH (B)
OR (C) OF SUBDIVISION FOUR OF SECTION TWO  HUNDRED  NINE  OF  THE  CIVIL
SERVICE  LAW,  NOR  SHALL  SUCH  DEMAND  BE SUBJECT TO ANY PROVISION FOR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10605-02-5
              

A. 7251                             2

INTEREST ARBITRATION CONTAINED IN ANY LOCAL LAW, RESOLUTION OR ORDINANCE
ADOPTED BY ANY  GOVERNMENTAL  ENTITY  PURSUANT  TO  SUBDIVISION  ONE  OF
SECTION TWO HUNDRED TWELVE OF THE CIVIL SERVICE LAW.
  S 1402. PAST SERVICE COSTS. ANY PARTICIPATING EMPLOYER THAT ELECTS THE
ADDITIONAL  BENEFITS  PROVIDED BY THIS ARTICLE MAY ALSO ELECT TO PAY THE
PAST SERVICE COST ASSOCIATED WITH THIS BENEFIT IN  TEN  ANNUAL  INSTALL-
MENTS.
  S 2. This act shall take effect immediately.
  FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
  This  bill will allow employers in the New York State and Local Police
and Fire Retirement System which have elected to provide their employees
with the benefits of the 20 year contributory retirement plan  to  elect
to  provide eligibility for their employees to participate on a non-con-
tributory basis. Any member who participates on a non-contributory basis
will not be entitled to a refund of previous member contributions.
  If this bill is enacted, there will  be  an  increase  in  the  annual
contributions  of ELECTING EMPLOYERS on behalf of their Tiers 3, 5 and 6
members. For the fiscal year ending March  31,  2016,  the  contribution
increases,  as  a percentage of salary, will be 3.2% for tier 3 members,
3.5% for tier 5 384-d and 384-e, 6.7% for tier  6  384-d  and  6.8%  for
384-e. These costs will be borne by the employers which elect to provide
this benefit.
  There will not be a past service cost.
  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  statement  of  actuarial  opinion
contained herein.
  This estimate, dated December 12, 2014,  and  intended  for  use  only
during  the  2015  Legislative  Session,  is  Fiscal  Note  No. 2015-11,
prepared by the Actuary for the New York State and Local Police and Fire
Retirement System and the New York State and Local Employees' Retirement
System.