S T A T E   O F   N E W   Y O R K
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                                   6394
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2017
                                ___________
 
 Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the retirement and social security law, in  relation  to
   mandatory retirement age
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (f) of paragraph 1 and the  opening  paragraph
 of  subparagraph  (g) of paragraph 2 of subdivision e and subdivisions h
 and k of section 384 of the  retirement  and  social  security  law,  as
 amended  by  chapter  1043  of  the laws of 1968, are amended to read as
 follows:
   (f) Upon  completion  of  twenty-five  years  service,  an  additional
 pension,  if  required, of such amount as shall be necessary to increase
 the total amount of the benefits provided  herein  to  one-half  of  his
 final  average  salary.  The  pension  provided  by this [sub-paragraph]
 SUBPARAGRAPH shall be payable only if a member retires from  service  on
 or  before the last day of the calendar month next succeeding the calen-
 dar month in which he attains age  [sixty-two]  SIXTY-FIVE.    Provided,
 however,  that in the case of any member who attained the age of [sixty-
 two] SIXTY-FIVE on or before July first, nineteen hundred sixty-six,  to
 be  eligible  for  additional  pension credit under this [sub-paragraph]
 SUBPARAGRAPH, his service shall be terminated and he shall retire on  or
 before  December  thirty-first,  nineteen  hundred  sixty-seven. For the
 purpose only of determining the amount of the pension provided  in  this
 paragraph,  the  annuity shall be computed as it would be if it were not
 reduced by the actuarial equivalent of any outstanding loan, and  if  it
 were  not  increased  by  the  actuarial  equivalent  of  any additional
 contributions, and if it were not reduced  by  reason  of  the  member's
 election  to decrease his annuity contributions to the retirement system
 in order to apply the  amount  of  such  reduction  in  payment  of  his
 contributions for old-age and survivors insurance coverage.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11375-02-7

 S. 6394                             2
 
   Upon  completion  of twenty-five years service, an additional pension,
 if required, of such amount as shall be necessary to increase the  total
 amount  of the benefits provided herein to one-half of his final average
 salary. The pension provided by this [sub-paragraph] SUBPARAGRAPH  shall
 be  payable  only if a member retires from service on or before the last
 day of the calendar month next succeeding the calendar month in which he
 attains age [sixty-two] SIXTY-FIVE. Provided, however, that in the  case
 of  any  member who attained the age of [sixty-two] SIXTY-FIVE before or
 within one month after his employer first elected to assume all or  part
 of the additional cost of service as provided by paragraph two of subdi-
 vision  d  of this section, to be eligible for additional pension credit
 under this [sub-paragraph] SUBPARAGRAPH, his service shall be terminated
 and he shall retire within three months after his employer so elects  or
 on or before December thirty-first, nineteen hundred sixty-eight, which-
 ever shall last occur.
   h.  Any  officer or member of such organized fire department or organ-
 ized police force or department, may, within one year after  he  becomes
 such officer or member or within one year after his employer assumes the
 additional  cost  therefor, whichever shall last occur, elect to receive
 the additional benefits provided for by subdivision f [hereof]  OF  THIS
 SECTION. Any officer or member who elects to receive such benefits shall
 be  separated  from  service on the first day of the calendar month next
 succeeding  his  attainment  of  age  [sixty-two]  SIXTY-FIVE  and   the
 completion  of  twenty-five years of service, provided, however, that in
 the case of any officer or member who attained the  age  of  [sixty-two]
 SIXTY-FIVE  before his employer assumed the additional cost therefor, or
 who attains the age of [sixty-two] SIXTY-FIVE within one month after his
 employer assumes the additional cost therefor, to be eligible for  addi-
 tional  pension  credit under subdivision f of this section, his service
 shall be terminated and he shall be retired within  three  months  after
 his employer assumes the additional cost therefor or on or before Decem-
 ber  thirty-first,  nineteen  hundred  sixty-eight, whichever shall last
 occur, and provided further that a member who is a chief  or  commanding
 officer of a police department or police force shall retire on the first
 day  of  the calendar month next succeeding his attainment of age sixty-
 five; a member who is a chief or commanding officer of a police  depart-
 ment  or  police  force, who attained age sixty-five before his employer
 elected to provide this added benefit and has rendered twenty-five years
 of total creditable service, shall retire on or before December  thirty-
 first,  nineteen  hundred  sixty-eight,  or  within  one  year after his
 employer assumes the additional  cost  therefor,  whichever  shall  last
 occur.
   k.  Any  officer or member of such organized fire department or organ-
 ized police force or department, may, within one year after  he  becomes
 such officer or member or within one year after his employer assumes the
 additional  cost  therefor, whichever shall last occur, elect to receive
 the additional benefits provided for by subdivision i [hereof]  OF  THIS
 SECTION. Any officer or member who elects to receive such benefits shall
 be  separated  from  service on the first day of the calendar month next
 succeeding  his  attainment  of  age  [sixty-two]  SIXTY-FIVE  and   the
 completion  of  twenty-five years of service, provided, however, that in
 the case of any officer or member who attained the  age  of  [sixty-two]
 SIXTY-FIVE  before his employer assumed the additional cost therefor, or
 who attains the age of [sixty-two] SIXTY-FIVE within one month after his
 employer assumes the additional cost therefor, to be eligible for  addi-
 tional  pension  credit under subdivision i of this section, his service

 S. 6394                             3
 
 shall be terminated and he shall be retired within  three  months  after
 his  employer  assumes  the  additional  cost  therefor, or on or before
 December thirty-first, nineteen  hundred  sixty-eight,  whichever  shall
 last  occur,  and  provided  further  that  a  member  who is a chief or
 commanding officer of a police department or police force  shall  retire
 on the first day of the calendar month next succeeding his attainment of
 age  sixty-five;  a  member  who  is  a chief or commanding officer of a
 police department or police force, who attained  age  sixty-five  before
 his  employer  elected  to  provide  this added benefit and has rendered
 twenty-five years of total creditable service, shall retire on or before
 December thirty-first, nineteen hundred sixty-eight, or within one  year
 after his employer assumes the additional cost therefor, whichever shall
 last occur.
   § 2. This act shall take effect immediately.
   FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
   This bill will increase the mandatory retirement age from 62 to 65 for
 members  of  the  New  York  State  and Local Police and Fire Retirement
 System (PFRS) who are covered under the provisions of Section 384 of the
 Retirement and Social Security Law.
   If this bill is  enacted,  there  would  be  additional  benefits  for
 certain  members  who  remain  employed  beyond age 62. However, if some
 members delay retirement due to the enactment of this bill, we would not
 anticipate that there would be an increase in the  annual  contributions
 of the participating employers in 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, 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 May 4, 2017, and intended for use only during the
 2017  Legislative  Session,  is Fiscal Note No. 2017-90, prepared by the
 Actuary for the New York State and Local Retirement System.