S T A T E O F N E W Y O R K
________________________________________________________________________
7640
2017-2018 Regular Sessions
I N A S S E M B L Y
May 5, 2017
___________
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, in relation to
providing sheriffs, undersheriffs, deputy sheriffs and correction
officers in Westchester county with a special optional twenty year
retirement plan
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 14-C to read as follows:
ARTICLE 14-C
OPTIONAL RETIREMENT PLAN FOR SHERIFFS, UNDERSHERIFFS, DEPUTY
SHERIFFS AND CORRECTION OFFICERS IN WESTCHESTER COUNTY
SECTION 561. DEFINITIONS.
562. OPTIONAL TWENTY YEAR RETIREMENT PLAN FOR SHERIFFS, UNDERSH-
ERIFFS, DEPUTY SHERIFFS AND CORRECTION OFFICERS IN WEST-
CHESTER COUNTY.
563. ADDITIONAL PENSION BENEFIT FOR MEMBERS OF OPTIONAL TWENTY
YEAR RETIREMENT PLAN.
564. CONSISTENT PROVISIONS.
§ 561. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
(A) "MEMBER" SHALL MEAN A PERSON WHO IS EMPLOYED AS A SHERIFF, DEPUTY
SHERIFF, UNDERSHERIFF, CORRECTION OFFICER, CORRECTION OFFICER-SERGEANT,
CORRECTION OFFICER-CAPTAIN, ASSISTANT WARDEN, ASSOCIATE WARDEN OR WARDEN
IN WESTCHESTER COUNTY AND SUCH COUNTY ELECTS BY RESOLUTION OR LOCAL LAW,
DULY ADOPTED, TO PROVIDE THE BENEFITS AS AUTHORIZED BY THIS ARTICLE;
(B) "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL
EMPLOYEES' RETIREMENT SYSTEM;
(C) "CREDITABLE SERVICE" SHALL INCLUDE ANY AND ALL SERVICES PERFORMED
FOR A COUNTY AS A SHERIFF, UNDERSHERIFF, DEPUTY SHERIFF, CORRECTION
OFFICER, CORRECTION OFFICER-SERGEANT, CORRECTION OFFICER-CAPTAIN,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09527-03-7
A. 7640 2
ASSISTANT WARDEN, ASSOCIATE WARDEN OR WARDEN. CREDIT FOR SERVICE AS A
MEMBER OR OFFICER OF THE STATE POLICE OR AS A PAID FIREMAN, POLICEMAN OR
OFFICER OF ANY ORGANIZED FIRE DEPARTMENT OR POLICE FORCE OR DEPARTMENT
OF ANY COUNTY, CITY, VILLAGE, TOWN, FIRE DISTRICT OR POLICE DISTRICT
RENDERED IN A TWENTY YEAR PLAN, SHALL ALSO BE DEEMED TO BE CREDITABLE
SERVICE AND SHALL BE INCLUDED IN COMPUTING YEARS OF TOTAL SERVICE FOR
RETIREMENT PURSUANT TO THIS SECTION, PROVIDED SUCH SERVICE WAS PERFORMED
BY THE MEMBER WHILE CONTRIBUTING TO THE RETIREMENT SYSTEM; AND
(D) "COUNTY" SHALL MEAN WESTCHESTER COUNTY.
§ 562. OPTIONAL TWENTY YEAR RETIREMENT PLAN FOR SHERIFFS, UNDERSHER-
IFFS, DEPUTY SHERIFFS AND CORRECTION OFFICERS IN WESTCHESTER COUNTY. (A)
ANY MEMBER OF THE RETIREMENT SYSTEM MAY ELECT TO BECOME A MEMBER PURSU-
ANT TO THE PROVISIONS OF THIS SECTION WITHIN ONE YEAR AFTER HE OR SHE
BECOMES A MEMBER, IF THE COUNTY HAS ELECTED TO MAKE THE BENEFITS
PROVIDED BY THIS SECTION AVAILABLE TO MEMBERS, OR WITHIN ONE YEAR AFTER
THE COUNTY ELECTS TO MAKE THE BENEFITS PROVIDED BY THIS SECTION AVAIL-
ABLE TO ITS MEMBERS.
(B) ELECTIONS MADE PURSUANT TO THIS SECTION SHALL BE IN WRITING AND
SHALL BE DULY ACKNOWLEDGED AND FILED WITH THE COMPTROLLER. ANY MEMBER
WHO FILES SUCH AN ELECTION PURSUANT TO THIS SECTION MAY WITHDRAW IT
AFTER IT HAS BEEN FILED FOR AT LEAST ONE YEAR. SUCH WITHDRAWAL SHALL BE
BY WRITTEN NOTICE DULY ACKNOWLEDGED AND FILED WITH THE COMPTROLLER.
(C) A MEMBER PARTICIPATING ON THE BASIS OF THIS SECTION AT THE TIME OF
RETIREMENT SHALL BE ENTITLED TO RETIRE AFTER THE COMPLETION OF TWENTY
YEARS OF TOTAL CREDITABLE SERVICE OR UPON THE ATTAINMENT OF AGE SIXTY-
TWO, BY FILING AN APPLICATION THEREFOR IN A MANNER SIMILAR TO THAT
PROVIDED IN THIS CHAPTER.
(I) UPON COMPLETION OF TWENTY YEARS OF SUCH SERVICE AND UPON RETIRE-
MENT, EACH SUCH MEMBER SHALL RECEIVE A PENSION SUFFICIENT TO PROVIDE HIM
OR HER WITH A RETIREMENT ALLOWANCE EQUAL TO ONE-FORTIETH OF HIS OR HER
FINAL AVERAGE SALARY FOR EACH YEAR OF TOTAL CREDITABLE SERVICE FOR WHICH
HE OR SHE IS OTHERWISE ENTITLED BUT NOT EXCEEDING IN THE AGGREGATE ONE-
HALF OF HIS OR HER FINAL AVERAGE SALARY.
(II) UPON ATTAINMENT OF AGE SIXTY-TWO AND UPON RETIREMENT WITHOUT
COMPLETION OF TWENTY YEARS OF SUCH SERVICE, EACH SUCH MEMBER SHALL
RECEIVE A PENSION SUFFICIENT TO PROVIDE HIM OR HER WITH A RETIREMENT
ALLOWANCE EQUAL TO ONE-FORTIETH OF HIS OR HER FINAL AVERAGE SALARY FOR
EACH YEAR OF CREDITABLE SERVICE. EVERY SUCH MEMBER SHALL ALSO BE ENTI-
TLED TO AN ADDITIONAL PENSION EQUAL TO THE PENSION FOR ANY OTHER CREDIT-
ABLE SERVICE RENDERED AS OTHERWISE PROVIDED FOR IN THIS CHAPTER. THIS
LATTER PENSION SHALL NOT INCREASE THE TOTAL ALLOWANCE TO MORE THAN ONE-
HALF OF HIS OR HER FINAL AVERAGE SALARY.
(D) THE INCREASED PENSIONS TO SUCH MEMBERS, AS PROVIDED BY THIS
SECTION, SHALL BE PAID FROM ADDITIONAL CONTRIBUTIONS MADE BY THE PARTIC-
IPATING COUNTY ON ACCOUNT OF SUCH MEMBERS. UPON APPROVAL OF THE COMP-
TROLLER, SUCH ADDITIONAL CONTRIBUTIONS SHALL BE CERTIFIED BY HIM OR HER
TO THE COUNTY. THE AMOUNT THEREOF SHALL BE INCLUDED IN THE ANNUAL APPRO-
PRIATION OF THE PARTICIPATING COUNTY. SUCH AMOUNT SHALL BE PAID ON THE
WARRANT OF THE CHIEF FISCAL OFFICER OF THE COUNTY TO THE PENSION ACCUMU-
LATION FUND OF THE RETIREMENT SYSTEM.
(E) IN COMPUTING THE TWENTY YEARS OF COMPLETED SERVICE OF A MEMBER,
FULL CREDIT SHALL BE GIVEN FOR MILITARY SERVICE AS DEFINED IN SUBDIVI-
SIONS TWENTY-NINE-A AND THIRTY OF SECTION TWO OF THIS CHAPTER.
(F) EVERY MEMBER PARTICIPATING ON THE BASIS OF THIS SECTION SHALL BE
SEPARATED FROM THE SERVICE ON THE LAST DAY OF THE CALENDAR MONTH NEXT
SUCCEEDING THE CALENDAR MONTH IN WHICH HE OR SHE ATTAINS THE AGE OF
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SIXTY-TWO, PROVIDED, HOWEVER, THAT SUCH A MEMBER WHO ATTAINED THE AGE OF
SIXTY-TWO BEFORE THE COUNTY ELECTED TO MAKE THE BENEFITS PROVIDED BY
THIS SECTION AVAILABLE TO HIM OR HER, OR WHO ATTAINS THE AGE OF SIXTY-
TWO WITHIN ONE MONTH AFTER THE COUNTY MAKES SUCH BENEFITS AVAILABLE, TO
BE ELIGIBLE FOR A PENSION COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF
THIS SECTION, SHALL BE SEPARATED FROM THE SERVICE WITHIN THREE MONTHS
AFTER THE COUNTY MAKES SUCH BENEFITS AVAILABLE.
(G) THE PROVISIONS OF THIS SECTION SHALL BE CONTROLLING NOTWITHSTAND-
ING ANY OTHER PROVISION OF THIS ARTICLE TO THE CONTRARY.
(H) THE BENEFITS OF THIS SECTION SHALL BE AVAILABLE ONLY TO MEMBERS
UPON THE COUNTY'S ELECTION TO PROVIDE SUCH BENEFITS BY ADOPTING A RESOL-
UTION OR LOCAL LAW TO SUCH EFFECT AND FILING A CERTIFIED COPY THEREOF
WITH THE COMPTROLLER.
(I) THE BENEFITS PROVIDED BY THIS SECTION SHALL BE PAYABLE TO A
MEMBER, UNLESS AT THE DATE OF RETIREMENT SUCH MEMBER WOULD OTHERWISE BE
ENTITLED TO A GREATER BENEFIT UNDER OTHER PROVISIONS OF THIS CHAPTER HAD
HE OR SHE WITHDRAWN FROM THIS SECTION, IN WHICH EVENT SUCH GREATER BENE-
FITS SHALL BE PAYABLE.
§ 563. ADDITIONAL PENSION BENEFIT FOR MEMBERS OF OPTIONAL TWENTY YEAR
RETIREMENT PLAN. (A) A COUNTY WHICH HAS ELECTED, OR WHICH ELECTS TO
PROVIDE THE BENEFITS OF THE OPTIONAL TWENTY YEAR RETIREMENT PLAN FOR ITS
EMPLOYEES AS SPECIFIED IN THIS ARTICLE MAY ELECT TO MAKE CONTRIBUTIONS
FOR THE PURPOSE OF PROVIDING AN ADDITIONAL PENSION PURSUANT TO THIS
SECTION FOR MEMBERS IN ITS EMPLOY WHO ARE ENTITLED TO A PENSION PURSUANT
TO SECTION FIVE HUNDRED SIXTY-TWO OF THIS ARTICLE. EVERY MEMBER EMPLOYED
BY THE COUNTY WHICH HAS ELECTED THE PROVISIONS OF SECTION FIVE HUNDRED
SIXTY-TWO OF THIS ARTICLE AND THIS SECTION MAY ELECT TO BE COVERED BY
THE PROVISIONS OF THIS SECTION BY FILING WITH THE COMPTROLLER, A DULY
EXECUTED AND ACKNOWLEDGED FORM PREPARED BY THE COMPTROLLER FOR THAT
PURPOSE.
(B) UPON RETIREMENT, EACH SUCH MEMBER SHALL RECEIVE, FOR EACH YEAR OF
SERVICE IN EXCESS OF TWENTY, AN ADDITIONAL PENSION WHICH SHALL BE EQUAL
TO ONE-SIXTIETH OF HIS OR HER FINAL AVERAGE SALARY; PROVIDED, HOWEVER,
THAT THE TOTAL ALLOWANCE PAYABLE PURSUANT TO THIS SECTION SHALL NOT
EXCEED THREE-QUARTERS OF SUCH MEMBER'S FINAL AVERAGE SALARY.
§ 564. CONSISTENT PROVISIONS. NOTHING CONTAINED IN THIS ARTICLE SHALL
BE CONSTRUED TO OTHERWISE AFFECT THE APPLICABILITY OF ARTICLE ELEVEN,
FOURTEEN OR FIFTEEN OF THIS CHAPTER. ANY OTHER PROVISIONS OF THIS CHAP-
TER RELATING TO MANDATORY CONTRIBUTIONS TO THE RETIREMENT SYSTEM BASED
UPON A MEMBER'S DATE OF MEMBERSHIP IN SUCH SYSTEM SHALL NOT BE DEEMED TO
BE AFFECTED BY THE PROVISIONS OF THIS ARTICLE, AND ANY MEMBER WHO ON THE
EFFECTIVE DATE OF THIS ARTICLE IS NOT REQUIRED TO CONTRIBUTE SHALL NOT
BE REQUIRED TO MAKE ANY CONTRIBUTIONS AS A RESULT OF THIS SECTION. FOR
THOSE MEMBERS REQUIRED TO CONTRIBUTE TO THE RETIREMENT SYSTEM, SUCH
CONTRIBUTION SHALL BE TREATED IN THE SAME MANNER AS SPECIFIED FOR SUCH
MEMBERS IN ARTICLE FOURTEEN OR FIFTEEN OF THIS CHAPTER.
§ 2. Any past service payments required of Westchester county as a
result of the adoption of the benefits permitted by this act may be
amortized over a period of up to ten years at the option of such county.
§ 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill will allow any member employed by Westchester County as a
sheriff, deputy sheriff, undersheriff, correction officer, correction
officer-sergeant, correction officer-captain, assistant warden, associ-
ate warden or warden to become covered by the provisions of a special 20
year retirement plan, which will provide a benefit of one-half of final
A. 7640 4
average salary upon retirement, and an additional benefit of one-sixti-
eth of final average salary for each year of creditable service in
excess of 20 years, not to exceed 15 such years.
Further, service rendered in a 25 year plan or age 55 plan for any
other county in any of the above titles would be deemed creditable
service under the new 20 year plan.
If this bill is enacted, there will be an increase in the annual
contributions of Westchester County of approximately $5.0 million for
the fiscal year ending March 31, 2018.
In addition to the annual contributions discussed above, there will be
an immediate past service cost to Westchester County of approximately
$55 million. If this cost is amortized over a period of 10 years, the
cost for the first year, including interest will be approximately $7.32
million.
Further, there will be an additional past service cost whenever a
member who was employed by any other county in any of the above titles
becomes employed by Westchester County. Such cost would be paid by West-
chester County at the time such member becomes covered under this new
plan, and could exceed 200% of salary for certain individuals.
This estimate is based on 834 Westchester County correction officers
and deputy sheriffs, with an estimated annual salary of approximately
$88 million for the fiscal year ending March 31, 2017.
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, 2016 actuarial valu-
ation. Distributions and other statistics can be found in the 2016
Report of the Actuary and the 2016 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015
and 2016 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, 2016
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 April 7, 2017, and intended for use only during
the 2017 Legislative Session, is Fiscal Note No. 2017-68, prepared by
the Actuary for the New York State and Local Retirement System.