Assembly Bill A8017A

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8017--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2017
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on  Governmental  Employees -- recommitted to the Committee on Govern-
   mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted to said committee

 AN  ACT  to amend the retirement and social security law, in relation to
   authorizing participating employers in the New York  state  and  local
   police  and  fire  retirement  system offering an optional twenty year
   retirement plan for its police officers  and  firefighters,  to  offer
   such plan on a non-contributory basis
 
   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.
   § 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  PARTIC-
 IPATE 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 PLAN.
   § 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)
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09303-04-8

 A. 8017--A                          2
 
 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
 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.
   § 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.
   § 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, 2018, the contribution
 increases, as a percentage of salary, are as follows:
 
                          TIER   384-D  384-E
                           3     0.3%   1.0%
                           5     3.5%   3.5%
                           6     6.5%   6.6%
 
   These additional annual 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, 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  January  19,  2018,  and intended for use only
 during the  2018  Legislative  Session,  is  Fiscal  Note  No.  2018-45,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.