BILL NUMBER: S8871

SPONSOR: YOUNG
 
TITLE OF BILL:  An act making an appropriation to the common retire-
ment fund account for payment of services and expenses related to the
administration of the New York state and local employees' retirement
system and the New York state and local police and fire retirement
system

 
PURPOSE:

This bill makes an appropriation to the common retirement fund account
for payment of services and expenses related to the administration of
the New York state and local employees' retirement system and the New
York state and local police and fire retirement system.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill appropriates the sum of nine million one hundred
eighty-one thousand dollars ($9,181,000) out of any fiduciary funds of
the common retirement fund to the Department of Audit and Control to the
              

credit of the Common Retirement Fund Account not otherwise appropriated,
as follows: for Personal Service - regular six million two hundred and
thirteen thousand dollars ($6,213,000 ), for Non Personal Service-
supplies sixty thousand dollars ($60,000), for travel eighty thousand
dollars ($80,000), for equipment one hundred sixty-five thousand dollars
($165,000), for General State Charges-Fringe Benefits two million five
hundred forty thousand dollars ($2,540,000), and for Indirect Costs one
hundred twenty-two thousand dollars ($122,000).

Section 2 of this bill states that this act would take effect immediate-
ly.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
JUSTIFICATION:

This appropriation authority represents the cost of additional staff to
handle a range of the New York State and Local Employees' Retirement
System's and the New York State and Local Police and Fire Retirement
System's (collectively the Retirement System) essential functions on
behalf of the State, the Retirement System's 3,700 participating employ-
ers and the more than one million current members, retirees and benefi-
ciaries. The need for this staff augmentation is driven largely by the
combination of the continued, significant growth in participants, the
implementation of a new replacement system, increased customer expecta-
tions and compliance with new legislative mandates.

The Retirement System's sizeable increase in the number of retirees and
beneficiaries over the last decade is expected to continue as the baby
boomer generation reaches retirement age. As of the end of fiscal year
2017, Retirement System serves 652,324 members, 414,220 retirees, and
38,235 beneficiaries-almost 100,000 more than ten years ago. In addi-
tion, member registration processing, salary and service credit tracking
and pension calculations will be more complex as earlier Tiers phase out
and a growing percentage of the member population join Tier 6, the most
complicated.
Additionally, over the past five years, legislative mandates have
required systems changes and enhanced support to employers. The volume
and complexity of customer inquiries have grown. The methods used for
processing both new members and soon to be retired employees are more
complex as well. Staff have been redirected away from their primary
duties to assist with new mandates. At the same time, changes in tech-
nology have made customers expect faster, simpler and secure access to
more information. As a result, staffing and resources are no longer
sufficient.

This appropriation authority would enable the Retirement System to
assure timely customer service in areas that support the processing of
World Trade Center related disability retirement and death benefit cases
and the investigation and remediation of instances of inappropriate
membership and service crediting. Additional staffing is also necessary
for the execution of Retirement System business process changes needed
to continually streamline, address upgrades and implement legislative
changes. Finally, more staff is needed to effectively and timely meet
requests for over 600 administrative hearings annually and prepare
employers for substantial changes in the ways they conduct business so
that they can reap the benefits of enhanced reporting and automated
features of the new benefit administration system.

Accordingly, the Comptroller urges passage of this legislation.

 
BUDGET IMPLICATIONS:

This appropriation would have no actual cost to the General Fund of the
State. It represents appropriation authority to spend monies to be reim-
bursed wholly by the Common Retirement Fund. The whole of this request
would be paid for by the Fund.

 
EFFECTIVE DATE:
This bill would take effect immediately.