Senate Bill S3033

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

                                  3033

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 2, 2015
                               ___________

Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Veterans, Homeland Securi-
  ty and Military Affairs

AN ACT to amend the retirement and social security law, in  relation  to
  providing  three years of retirement service credit to certain members
  of public retirement systems of the state  honorably  discharged  from
  the  military  for  medical  reasons  due  to injuries suffered during
  certain military conflicts

  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 2-a to read as follows:
   2-A. A MEMBER, UPON APPLICATION TO SUCH RETIREMENT SYSTEM, MAY OBTAIN
A TOTAL OF THREE YEARS OF SERVICE CREDIT FOR LESS THAN  THREE  YEARS  OF
MILITARY  DUTY,  AS  DEFINED  IN  SECTION TWO HUNDRED FORTY-THREE OF THE
MILITARY LAW, IF THE MEMBER WAS HONORABLY DISCHARGED FROM  THE  MILITARY
FOR  MEDICAL REASONS DUE TO INJURIES SUFFERED DURING SUCH MILITARY DUTY,
IF ALL OR PART OF SUCH SERVICES WAS RENDERED IN THE  MILITARY  CONFLICTS
REFERENCED BELOW, AS FOLLOWS:
  (A) COMMENCING DECEMBER SEVENTH, NINETEEN HUNDRED FORTY-ONE AND TERMI-
NATING DECEMBER THIRTY-FIRST, NINETEEN HUNDRED FORTY-SIX;
  (B)  COMMENCING JUNE TWENTY-SEVENTH, NINETEEN HUNDRED FIFTY AND TERMI-
NATING JANUARY THIRTY-FIRST, NINETEEN HUNDRED FIFTY-FIVE;
  (C) COMMENCING FEBRUARY TWENTY-EIGHTH, NINETEEN HUNDRED SIXTY-ONE  AND
TERMINATING MAY SEVENTH, NINETEEN HUNDRED SEVENTY-FIVE;
  (D)  HOSTILITIES  PARTICIPATED IN BY THE MILITARY FORCES OF THE UNITED
STATES IN LEBANON, FROM THE FIRST DAY OF JUNE, NINETEEN HUNDRED  EIGHTY-
THREE  TO  THE  FIRST DAY OF DECEMBER, NINETEEN HUNDRED EIGHTY-SEVEN, AS
ESTABLISHED BY RECEIPT OF THE ARMED FORCES EXPEDITIONARY MEDAL, THE NAVY
EXPEDITIONARY MEDAL, OR THE MARINE CORPS EXPEDITIONARY MEDAL;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01745-02-5

              

S. 3033                             2

  (E) HOSTILITIES PARTICIPATED IN BY THE MILITARY FORCES OF  THE  UNITED
STATES  IN  GRENADA,  FROM  THE  TWENTY-THIRD  DAY  OF OCTOBER, NINETEEN
HUNDRED EIGHTY-THREE TO  THE  TWENTY-FIRST  DAY  OF  NOVEMBER,  NINETEEN
HUNDRED  EIGHTY-THREE,  AS  ESTABLISHED  BY  RECEIPT OF THE ARMED FORCES
EXPEDITIONARY  MEDAL,  THE NAVY EXPEDITIONARY MEDAL, OR THE MARINE CORPS
EXPEDITIONARY MEDAL;
  (F) HOSTILITIES PARTICIPATED IN BY THE MILITARY FORCES OF  THE  UNITED
STATES  IN  PANAMA, FROM THE TWENTIETH DAY OF DECEMBER, NINETEEN HUNDRED
EIGHTY-NINE TO THE THIRTY-FIRST DAY OF JANUARY, NINETEEN HUNDRED NINETY,
AS ESTABLISHED BY RECEIPT OF THE ARMED FORCES EXPEDITIONARY  MEDAL,  THE
NAVY EXPEDITIONARY MEDAL, OR THE MARINE CORPS EXPEDITIONARY MEDAL; OR
  (G)  HOSTILITIES  PARTICIPATED IN BY THE MILITARY FORCES OF THE UNITED
STATES, FROM THE SECOND DAY OF AUGUST, NINETEEN HUNDRED NINETY,  TO  THE
END  OF  SUCH HOSTILITIES IN CASE OF A VETERAN WHO SERVED IN THE THEATER
OF OPERATIONS INCLUDING IRAQ, KUWAIT, SAUDI ARABIA, BAHRAIN, QATAR,  THE
UNITED  ARAB  EMIRATES,  OMAN,  THE  GULF OF ADEN, THE GULF OF OMAN, THE
PERSIAN GULF, THE RED SEA,  AND  THE  AIRSPACE  ABOVE  THESE  LOCATIONS.
HOWEVER, NOTHING PROVIDED HEREIN SHALL AUTHORIZE OR PERMIT THE CREDITING
OF  SERVICE WHERE NOT PERMITTED PURSUANT TO SECTION 415(N) OF THE INTER-
NAL REVENUE CODE OR ANY REGULATIONS PROMULGATED THEREUNDER.
  S 2. Notwithstanding any other provision of law to the contrary,  none
of  the  provisions  of  this  act shall be subject to section 25 of the
retirement and social security law.
  S 3. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after December 21, 1998.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would amend Chapter 548 of the Laws of 2000 to allow members
and  retirees  of  public retirement systems in New York State with less
than three (3) years of military duty,  who  were  discharged  from  the
military  for medical reasons due to injuries suffered during such mili-
tary duty, to purchase three (3) years of service  credit  for  military
duty.  The  additional  service  credit  granted pursuant to this legis-
lation, when added to credit granted for military  service  pursuant  to
any  other provision of law shall not exceed a total of three (3) years.
Members must have at least five (5) year of credited service.  Tier  1-5
members  would  be  required to make a payment of three percent of their
most recent compensation per year of additional service  credit  granted
by  this bill. Tier 6 members would be required to make a payment of six
percent of their most recent compensation per year of additional service
credit. Retirees must have retired on or after December  21,  1998.  The
recalculated  annual  allowance  would  be  retroactive  to  the date of
retirement. In addition, none of the provisions of  this  bill  will  be
subject to Section 25 of the retirement and social security law.
  If this bill is enacted, insofar as this proposal affects the New York
State and Local Employees' Retirement System (ERS), it is estimated that
the  past service cost will average approximately 12% (9% for Tier 6) of
an affected members' compensation for each year  of  additional  service
credit  that  is purchased. For members who retired on or after December
21, 1998 there would be additional costs for payments which will be paid
retroactive to their date of retirement.
  Insofar as this proposal affects the New York State and  Local  Police
and Fire Retirement System (PFRS), it is estimated that the past service
cost  will  average  approximately  17%  (14% for Tier 6) of an affected
members' compensation for  each  year  of  additional  service  that  is
purchased.  For  members who retired on or after December 21, 1998 there

S. 3033                             3

would be additional costs for payments which will be paid retroactive to
their date of retirement.
  The  exact  number  of  retirees,  current  members  as well as future
members who could be affected by  this  legislation  cannot  be  readily
determined.  In all likelihood, very few members would be affected.
  These  cost  would  be shared by the State of New York and the partic-
ipating employers in the ERS and 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, 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 7, 2015 and intended for use only  during
the  2015  Legislative  Session, is Fiscal Note No. 2015-20, 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.