Assembly Bill A11122

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11122
 
                           I N  A S S E M B L Y
 
                               June 6, 2018
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Gunther) --
   read once and referred to the Committee on Governmental Employees
 
 AN ACT to authorize the city of Newburgh, in the county  of  Orange,  to
   offer an optional twenty year retirement plan to police officer Samuel
   Kenan Jr.
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Samuel Kenan Jr.,  a  police  officer  who  was  previously
 employed by the city of Newburgh, in the county of Orange, a participat-
 ing  employer in the New York state and local police and fire retirement
 system, and who is currently employed by  the  city  of  Peekskill,  for
 reasons  not  ascribable  to  his own negligence failed to make a timely
 application to participate in the optional twenty year  retirement  plan
 established pursuant to section 384-d of the retirement and social secu-
 rity  law  while  employed  by the city of Newburgh. Notwithstanding any
 other provision of law to the contrary, upon the city of Newburgh filing
 with the state comptroller, within one year of  the  effective  date  of
 this  act,  a resolution of the city council together with certification
 that such police officer did not bar himself from participation in  such
 retirement  plan  as a result of his own negligence, such police officer
 may elect to be granted full credit in the special twenty year plan  for
 such  service  rendered with the city of Newburgh by filing a request to
 that effect with the state comptroller within  eighteen  months  of  the
 effective date of this act.
   §  2. All employer past service costs associated with implementing the
 provisions of this act shall be borne by the city of Newburgh and may be
 amortized over a ten year period.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill will allow the City of Newburgh to reopen the provisions  of
 section  384-d  of  the  Retirement  and  Social Security Law for former
 police officer Samuel Kenan Jr., who while an employee of the  city  was
 covered under the provisions of section 375-i. Officer Kenan is current-
 ly employed by the City of Peekskill and covered under 384-d.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14171-13-8

 A. 11122                            2
 
   If  this bill is enacted, there will be an immediate past service cost
 of $149,000 to be borne by the City of Newburgh as a  one-time  payment.
 This  cost  assumes  a  payment date of February 1, 2019. If the City of
 Newburgh elects to amortize this cost over a 10-year period, the cost of
 the first year would be $19,800.
   There  will  be  no increase in anticipated future annual costs as the
 member continues to be covered by 384-d.
   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, 2017 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2017
 Report  of  the  Actuary  and  the  2017  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in the  2015,
 2016,  and  2017  Annual  Report to the Comptroller on Actuarial Assump-
 tions, 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, 2017
 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 June 4, 2018, and intended for  use  only  during
 the  2018  Legislative Session, is Fiscal Note No. 2018-120, prepared by
 the Actuary for the New York State and Local Retirement System.