Assembly Bill A4519

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

                                  4519

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2015
                               ___________

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 and the civil
  service law, in relation to university police  officers  appointed  by
  the state university of New York

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

  Section 1. Subdivision 11 of section 302 of the retirement and  social
security law is amended by adding a new paragraph i to read as follows:
  I.  SERVICE  AS  A  UNIVERSITY  POLICE  OFFICER APPOINTED BY THE STATE
UNIVERSITY OF NEW YORK PURSUANT TO PARAGRAPH L  OF  SUBDIVISION  TWO  OF
SECTION THREE HUNDRED FIFTY-FIVE OF THE EDUCATION LAW.
  S 2. Subdivision d of section 375-f of the retirement and social secu-
rity  law,  as separately amended by chapters 674 and 677 of the laws of
1986, is amended to read as follows:
  d. In addition to the retirement allowance provided  pursuant  to  the
plans  set  forth  in sections three hundred eighty-three, three hundred
eighty-three-a [and], three hundred  eighty-three-b  AND  THREE  HUNDRED
EIGHTY-THREE-D  of this [chapter] ARTICLE, a member of [either] ANY such
plan who retires on or after April first,  nineteen  hundred  sixty-nine
with  more  than twenty-five years of total service shall be entitled to
receive, in addition to the benefits provided pursuant to  [either]  ANY
such  section  and  notwithstanding the limitations of [either] ANY such
section, an additional retirement allowance for such  years  of  service
rendered  in  excess of twenty-five. The additional retirement allowance
for such additional years of service shall be computed as if such member
had been eligible to have his retirement allowance computed pursuant  to
the  provisions of subdivision b of section three hundred seventy-five-c
and of paragraph one of subdivision a of section three hundred  seventy-
five-d of this [chapter] TITLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08196-01-5

              

A. 4519                             2

  S 3. The retirement and social security law is amended by adding a new
section 383-d to read as follows:
  S  383-D.  ALTERNATIVE RETIREMENT BENEFITS FOR UNIVERSITY POLICE OFFI-
CERS APPOINTED BY THE STATE UNIVERSITY. A. AS USED IN THIS SECTION,  THE
TERM "UNIVERSITY POLICE OFFICER" SHALL MEAN A PERSON WHO IS SO APPOINTED
PURSUANT  TO  PARAGRAPH  L  OF  SUBDIVISION TWO OF SECTION THREE HUNDRED
FIFTY-FIVE OF THE EDUCATION LAW.
  B. NOTWITHSTANDING ANY OTHER PROVISION OF LAW PROVIDING FOR  TRANSFERS
BETWEEN RETIREMENT SYSTEMS, ANY UNIVERSITY POLICE OFFICER IN THE SERVICE
OF THE STATE UNIVERSITY WHO IS A MEMBER OF THE NEW YORK STATE EMPLOYEES'
RETIREMENT  SYSTEM  MAY  TRANSFER TO THE NEW YORK STATE AND LOCAL POLICE
AND FIRE RETIREMENT SYSTEM AND SHALL RECEIVE CREDIT PURSUANT TO  AND  BE
ENTITLED  TO  THE  RETIREMENT  BENEFITS AFFORDED IN ACCORDANCE WITH THIS
SECTION. UPON ANY SUCH TRANSFER THE MEMBER  SHALL  BE  ENTITLED  TO  THE
AMOUNT  OF  SERVICE  WHICH  WOULD  HAVE  BEEN DEEMED CREDITABLE HAD SUCH
MEMBER BEEN SUBJECT TO SUCH SYSTEM DURING  THE  COURSE  OF  HIS  OR  HER
MEMBERSHIP  WITHIN  SUCH  SYSTEM.  CONTRIBUTIONS TO SUCH SYSTEM SHALL BE
MADE IN ACCORDANCE WITH APPROPRIATE PROVISIONS OF LAW RELATING  THERETO.
APPLICATION  FOR  SUCH TRANSFER MUST BE MADE TO THE STATE COMPTROLLER ON
OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN. THE PROVISIONS OF
SECTION THREE HUNDRED FORTY-THREE OF THIS ARTICLE  SHALL  APPLY  TO  ANY
MEMBER MAKING APPLICATION FOR TRANSFER UNDER THIS SUBDIVISION.
  C. ANY UNIVERSITY POLICE OFFICER IN THE SERVICE OF THE STATE UNIVERSI-
TY  WHO  ELECTS  OR  IS  REQUIRED TO CONTRIBUTE UNDER THIS SECTION SHALL
CONTRIBUTE TO THE NEW YORK STATE AND LOCAL POLICE  AND  FIRE  RETIREMENT
SYSTEM ON THE BASIS OF RETIREMENT UPON HIS OR HER:
  1. COMPLETION OF TWENTY-FIVE YEARS OF TOTAL CREDITABLE SERVICE; OR
  2.  ATTAINMENT  OF  AGE  SIXTY  AS  A UNIVERSITY POLICE OFFICER IN THE
SERVICE OF THE STATE UNIVERSITY, IF PRIOR THERETO, ON  AN  ALLOWANCE  OF
ONE-FIFTIETH  OF  HIS OR HER FINAL AVERAGE SALARY FOR EACH YEAR OF TOTAL
CREDITABLE SERVICE NOT IN EXCESS OF  TWENTY-FIVE  YEARS.  SUCH  ELECTION
SHALL  BE IN WRITING AND SHALL BE DULY EXECUTED AND FILED WITH THE COMP-
TROLLER.
  D. EVERY EMPLOYEE ENTERING OR  RE-ENTERING  SERVICE  AS  A  UNIVERSITY
POLICE  OFFICER  IN  THE SERVICE OF THE STATE UNIVERSITY ON OR AFTER THE
EFFECTIVE DATE OF THIS SECTION SHALL CONTRIBUTE ON  THE  BASIS  PROVIDED
FOR BY THIS SECTION.
  E.  A  MEMBER  WHO  IS  REQUIRED TO CONTRIBUTE IN ACCORDANCE WITH THIS
SECTION SHALL CONTRIBUTE, IN LIEU OF THE PROPORTION OF  COMPENSATION  AS
PROVIDED  IN SECTION THREE HUNDRED TWENTY-ONE OF THIS ARTICLE, A PROPOR-
TION OF HIS  OR  HER  COMPENSATION  SIMILARLY  DETERMINED.  SUCH  LATTER
PROPORTION SHALL BE COMPUTED TO PROVIDE AT THE TIME WHEN HE OR SHE SHALL
FIRST  BECOME  ELIGIBLE    FOR RETIREMENT UNDER THIS SECTION, AN ANNUITY
EQUAL TO ONE-ONE HUNDREDTH OF HIS OR HER FINAL AVERAGE SALARY  FOR  EACH
YEAR  OF  SERVICE AS A MEMBER PRIOR TO THE ATTAINMENT OF THE AGE WHEN HE
OR SHE SHALL FIRST BECOME ELIGIBLE FOR RETIREMENT. SUCH MEMBER'S RATE OF
CONTRIBUTION PURSUANT TO THIS SECTION  SHALL  BE  APPROPRIATELY  REDUCED
PURSUANT  TO  SECTION  THREE  HUNDRED SEVENTY-A OF THIS ARTICLE FOR SUCH
PERIOD OF TIME AS HIS OR  HER  EMPLOYER  CONTRIBUTES  PURSUANT  TO  SUCH
SECTION  TOWARD  PENSIONS-PROVIDING-FOR-INCREASED-TAKE-HOME-PAY. NO SUCH
MEMBER SHALL BE REQUIRED  TO  CONTINUE  CONTRIBUTIONS  AFTER  COMPLETING
TWENTY-FIVE YEARS OF SUCH SERVICE.
  F.  A MEMBER CONTRIBUTING ON THE BASIS OF THIS SECTION, AT THE TIME OF
RETIREMENT, SHALL BE ENTITLED TO RETIRE AFTER THE COMPLETION OF  TWENTY-
FIVE  YEARS  OF  TOTAL  CREDITABLE SERVICE OR UPON THE ATTAINMENT OF AGE
SIXTY BY FILING AN APPLICATION THEREFOR IN  A  MANNER  SIMILAR  TO  THAT

A. 4519                             3

PROVIDED  IN  SECTION  THREE  HUNDRED SEVENTY OF THIS ARTICLE. HE OR SHE
SHALL RECEIVE, ON RETIREMENT, A RETIREMENT ALLOWANCE CONSISTING OF:
  1.  AN  ANNUITY  WHICH SHALL BE THE ACTUARIAL EQUIVALENT OF HIS OR HER
ACCUMULATED CONTRIBUTIONS AT THE TIME OF HIS OR HER RETIREMENT, PLUS
  2. A PENSION WHICH, TOGETHER WITH SUCH ANNUITY AND A PENSION WHICH  IS
THE  ACTUARIAL  EQUIVALENT OF THE RESERVE-FOR-INCREASED-TAKE-HOME-PAY TO
WHICH HE OR SHE MAY THEN BE ENTITLED, IF ANY, SHALL  EQUAL  ONE-FIFTIETH
OF  HIS  OR HER FINAL AVERAGE SALARY FOR EACH YEAR OF CREDITABLE SERVICE
IN SUCH SERVICE. THIS PENSION SHALL NOT EXCEED THE AMOUNT NEEDED TO MAKE
THE TOTAL AMOUNT OF THE BENEFITS PROVIDED UNDER THIS PARAGRAPH AND PARA-
GRAPH ONE OF THIS SUBDIVISION EQUAL TO ONE-HALF OF FINAL AVERAGE SALARY.
  3. AN ADDITIONAL PENSION EQUAL  TO  THE  PENSION  FOR  ANY  CREDITABLE
SERVICE  RENDERED  WHILE  NOT EMPLOYED AS A UNIVERSITY POLICE OFFICER IN
THE SERVICE OF THE STATE UNIVERSITY AS PROVIDED UNDER PARAGRAPHS TWO AND
THREE OF SUBDIVISION A OF SECTION THREE  HUNDRED  SEVENTY-FIVE  OF  THIS
ARTICLE.  THIS PENSION SHALL:
  (I)  BE PAYABLE ONLY IF SUCH MEMBER HAS ATTAINED AGE SIXTY AT THE TIME
OF RETIREMENT AND HAS NOT COMPLETED TWENTY-FIVE YEARS OF  SERVICE  AS  A
UNIVERSITY  POLICE  OFFICER  IN  THE SERVICE OF THE STATE UNIVERSITY FOR
WHICH HE OR SHE RECEIVES CREDIT UNDER THIS ARTICLE, AND
  (II) NOT INCREASE THE TOTAL ALLOWANCE TO MORE THAN  HE  OR  SHE  WOULD
HAVE RECEIVED HAD HIS OR HER TOTAL SERVICE BEEN RENDERED AS A UNIVERSITY
POLICE  OFFICER  IN THE SERVICE OF THE STATE UNIVERSITY. FOR THE PURPOSE
ONLY OF DETERMINING THE AMOUNT OF THE PENSION PROVIDED HEREIN, THE ANNU-
ITY SHALL BE COMPUTED AS IT WOULD BE:
  (A) IF NOT REDUCED BY THE  ACTUARIAL  EQUIVALENT  OF  ANY  OUTSTANDING
LOAN, AND
  (B)  IF  NOT  INCREASED  BY THE ACTUARIAL EQUIVALENT OF ANY ADDITIONAL
CONTRIBUTIONS, AND
  (C) IF NOT REDUCED BY REASON OF THE MEMBER'S ELECTION TO DECREASE  HIS
OR  HER ANNUITY CONTRIBUTIONS TO THE RETIREMENT SYSTEM IN ORDER TO APPLY
THE AMOUNT OF SUCH REDUCTION IN PAYMENT OF HIS OR HER CONTRIBUTIONS  FOR
OLD-AGE AND SURVIVORS INSURANCE COVERAGE.
  G.  THE  INCREASED  PENSIONS  TO  A  UNIVERSITY  POLICE OFFICER IN THE
SERVICE OF THE STATE UNIVERSITY, AS PROVIDED BY THIS SECTION,  SHALL  BE
PAID  FROM ADDITIONAL CONTRIBUTIONS MADE BY THE STATE ON ACCOUNT OF SUCH
MEMBERS.  THE ACTUARY OF THE RETIREMENT SYSTEM SHALL COMPUTE  THE  ADDI-
TIONAL  CONTRIBUTION  OF  EACH  MEMBER WHO ELECTS TO RECEIVE THE SPECIAL
BENEFITS PROVIDED UNDER  THIS  SECTION.  SUCH  ADDITIONAL  CONTRIBUTIONS
SHALL  BE  COMPUTED ON THE BASIS OF CONTRIBUTIONS DURING THE PROSPECTIVE
SERVICE OF SUCH MEMBER WHICH WILL COVER THE LIABILITY OF THE  RETIREMENT
SYSTEM  FOR  SUCH EXTRA PENSIONS. UPON APPROVAL BY THE COMPTROLLER, SUCH
ADDITIONAL CONTRIBUTIONS SHALL BE CERTIFIED BY HIM OR HER TO  THE  CHAN-
CELLOR  OF THE STATE UNIVERSITY. THE AMOUNT THEREOF SHALL BE INCLUDED IN
THE ANNUAL APPROPRIATION OF THE STATE FOR  THE  STATE  UNIVERSITY.  SUCH
AMOUNT  SHALL  BE  PAID ON THE WARRANT OF THE COMPTROLLER TO THE PENSION
ACCUMULATION FUND OF THE RETIREMENT SYSTEM.
  H. IN COMPUTING THE  TWENTY-FIVE  YEARS  OF  COMPLETED  SERVICE  OF  A
UNIVERSITY  POLICE  OFFICER IN THE SERVICE OF THE STATE UNIVERSITY, FULL
CREDIT SHALL BE GIVEN AND FULL ALLOWANCE SHALL BE MADE  FOR  SERVICE  OF
SUCH  MEMBER  IN WAR AFTER WORLD WAR I AS DEFINED IN SECTION TWO OF THIS
CHAPTER, PROVIDED SUCH MEMBER AT THE TIME OF HIS OF  HER  ENTRANCE  INTO
THE  ARMED  FORCES WAS IN STATE SERVICE, AND FULL CREDIT AND FULL ALLOW-
ANCE SHALL BE MADE FOR SERVICE AS A UNIVERSITY PEACE  OFFICER  PRIOR  TO
THE  EFFECTIVE  DATE  OF CHAPTER FOUR HUNDRED TWENTY-FOUR OF THE LAWS OF
NINETEEN HUNDRED NINETY-EIGHT.

A. 4519                             4

  I. THE PROVISIONS OF THIS SECTION SHALL BE CONTROLLING NOTWITHSTANDING
ANY PROVISION IN THIS ARTICLE TO THE CONTRARY.
  J.  NOTWITHSTANDING  ANY  PROVISION  OF  SUBDIVISION D, E OR I OF THIS
SECTION TO THE CONTRARY, A MEMBER WHO IS IN THE  COLLECTIVE  NEGOTIATING
UNIT  DESIGNATED  AS  THE  AGENCY  POLICE  SERVICES UNIT AND ESTABLISHED
PURSUANT TO ARTICLE FOURTEEN OF  THE  CIVIL  SERVICE  LAW  AND  WHO  HAS
ELECTED  OR  IS  REQUIRED  TO CONTRIBUTE IN ACCORDANCE WITH THIS SECTION
MAY, ON OR BEFORE MARCH THIRTY-FIRST, TWO  THOUSAND  SIXTEEN,  ELECT  TO
COME  UNDER  THE  PROVISIONS  OF SECTION THREE HUNDRED SEVENTY-FIVE-H OF
THIS ARTICLE. SUCH ELECTION SHALL BE DULY EXECUTED AND  FILED  WITH  THE
COMPTROLLER.
  K.  COMMENCING WITH THE EFFECTIVE DATE OF THIS SECTION AND IN A MANNER
DETERMINED BY THE HEAD OF THE RETIREMENT SYSTEM, THE STATE, AS EMPLOYER,
SHALL MAKE CONTRIBUTIONS TO THE  RETIREMENT  SYSTEM  TO  FUND  THE  PAST
SERVICE  LIABILITY  COSTS  ASSOCIATED  WITH  THE  IMPLEMENTATION OF THIS
SECTION AS THOSE COSTS ARE CALCULATED BY THE RETIREMENT SYSTEM  ACTUARY.
SUCH  CONTRIBUTIONS  MAY,  AT THE ELECTION OF THE EMPLOYER, BE AMORTIZED
OVER A TEN YEAR PERIOD.
  S 4. No employee contributions made to the New York  state  and  local
employees'  retirement system by any state university police officer who
elects to transfer pursuant to this act shall be returned to such  offi-
cer.  Such  employee  contributions  shall  be  used  to offset any past
service costs incurred by operation of the provisions of this act.
  S 5. Notwithstanding subdivision h of section 343  of  the  retirement
and  social  security  law,  the  provisions  of subdivisions c and d of
section 343 of the retirement and social security law  shall  apply  and
the  employer contributions reserve shall be transferred from the appro-
priate fund or funds of the New York state and local employees'  retire-
ment  system  to the New York state and local police and fire retirement
system.
  S 6. Subdivision 3 of section 58 of the civil service law, as  amended
by chapter 244 of the laws of 2013, is amended to read as follows:
  3.  As  used in this section, the term "police officer" means a police
officer in the  department  of  environmental  conservation,  THE  STATE
UNIVERSITY  POLICE,  a  member  of  the  regional state park police or a
police force, police department, or  other  organization  of  a  county,
city,  town,  village,  housing  authority,  transit authority or police
district, who is responsible for the prevention and detection  of  crime
and the enforcement of the general criminal laws of the state, but shall
not  include  any  person serving as such solely by virtue of his or her
occupying any other office or position, nor shall such  term  include  a
sheriff,  under-sheriff,  commissioner  of  police,  deputy or assistant
commissioner of police, chief of police, deputy or  assistant  chief  of
police  or  any  person  having  an equivalent title who is appointed or
employed to exercise equivalent supervisory authority.
  S 7. Paragraphs (a) and (b) of subdivision 4  of  section  58  of  the
civil  service  law,  as amended by chapter 244 of the laws of 2013, are
amended to read as follows:
  (a) Any person who has received provisional or  permanent  appointment
in the competitive class of the civil service as a police officer of the
regional state park police, THE STATE UNIVERSITY OF NEW YORK POLICE, the
department  of  environmental conservation or any police force or police
department of any county, city, town, village, housing authority, trans-
it authority or police district shall be eligible  to  resign  from  any
police force or police department, and to be appointed as a police offi-
cer  in  the same or any other police force or police department without

A. 4519                             5

satisfying the age requirements set forth in paragraph (a)  of  subdivi-
sion  one  of  this  section  at  the  time of such second or subsequent
appointment, provided such second or subsequent appointment occurs with-
in thirty days of the date of resignation.
  (b)  Any  person who has received permanent appointment in the compet-
itive class of the civil service as a police  officer  of  the  regional
state  park police, THE STATE UNIVERSITY OF NEW YORK POLICE, the depart-
ment of environmental conservation or any police force or police depart-
ment of any county, city,  town,  village,  housing  authority,  transit
authority or police district shall be eligible to resign from any police
force  or  police department and, subject to such civil service rules as
may be applicable, shall be  eligible  for  reinstatement  in  the  same
police force or police department or in any other police force or police
department  to which he or she was eligible for transfer, without satis-
fying the age requirements set forth in paragraph (a) of subdivision one
of this section at the time of such reinstatement, provided  such  rein-
statement occurs within one year of the date of resignation.
  S 8. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would  allow  State University Police Officers to elect to
transfer to the New York State and  Local  Police  and  Fire  Retirement
System  and  to  be  covered by the provisions of a new twenty-five (25)
year half pay retirement plan, with additional  one-sixtieths  of  final
average  salary  for  each year of service in excess of twenty-five (25)
years, but not exceeding fifteen (15) such years. For Tiers 2, 5, and  6
members,  the  additional  one-sixtieths  can  not exceed seven (7) such
years. There will be no refund  of  Article  14  or  Article  15  member
contributions  for officers who elect to transfer to the Police and Fire
Retirement system.
  If this bill is enacted, we anticipate that there will be an  increase
of  approximately  $1.1 million in the annual contributions of the State
of New York for the fiscal year ending March 31, 2016.
  In addition to the annual contributions discussed above, it  is  esti-
mated that there will be an immediate past service cost of $9.72 million
which  would  be  borne  by the State of New York, assuming that payment
will be made on March 1, 2016. If this cost is amortized over  ten  (10)
years,  the  cost for the first year, including interest, would be $1.32
million.
  These estimated costs are based on five hundred  sixteen  (516)  State
University Police Officers with a total estimated salary of approximate-
ly $39 million for the fiscal year ending March 31, 2014.
  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.

A. 4519                             6

  This estimate, dated January 16, 2015 and intended for use only during
the 2015 Legislative Session, is Fiscal Note No. 2015-30 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.