S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10796
 
                           I N  A S S E M B L Y
 
                               July 10, 2020
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Griffin) --
   read once and referred to the Committee on Governmental Employees
 
 AN ACT to authorize the village of Malverne, in the county of Nassau, to
   offer a twenty-year retirement plan to police officer Thomas Smith
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Notwithstanding any other provision of law to the contrary,
 the  village  of  Malverne,  in  the  county  of Nassau, a participating
 employer in the New York state and  local  police  and  fire  retirement
 system,  which  previously  elected  to  offer  the optional twenty-year
 retirement plan, established pursuant to section 384-d of the retirement
 and social security law, to police officers employed by such village, is
 hereby authorized to make participation in such plan available to Thomas
 Smith, a police officer employed by the village of  Malverne,  who,  for
 reasons  not  ascribable  to his own negligence, failed to make a timely
 application to participate in such optional twenty-year retirement plan.
 The village of Malverne may so elect by  filing  with  the  state  comp-
 troller,  within  12  months of the effective date of this act, a resol-
 ution of the village board of trustees together with certification  that
 such  police  officer  did  not  bar  himself from participation in such
 retirement plan as a result of  his  own  negligence.  Thereafter,  such
 police  officer  may  elect  to  be covered by the provisions of section
 384-d of the retirement and social security law, and shall  be  entitled
 to  the  full  rights  and  benefits associated with coverage under such
 section, by filing a request to that effect with the  state  comptroller
 within 6 months of the village of Malverne's filing.
   §  2.  All  past  costs associated with implementing the provisions of
 this act shall be borne by the village of Malverne, and may be amortized
 over a period of ten years.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow Thomas Smith, a member of the New York State and
 Local Police and Fire Retirement System (PFRS) employed by  the  Village
 of  Malverne  and  currently covered under an age 55 retirement plan, to
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16890-03-0

 A. 10796                            2
 
 elect to participate in the  20  year  retirement  plan  established  by
 Section 384-d of the Retirement and Social Security Law.
   If this bill is enacted during the 2020 legislative session and Thomas
 Smith  becomes  covered under the provisions of Section 384-d, we antic-
 ipate that there will be an increase of  approximately  $13,000  in  the
 annual  contributions  of  the  Village  of Malverne for the fiscal year
 ending March 31, 2021. In future years, this cost will vary as the bill-
 ing rates and salary of Thomas Smith change.
   In addition to the annual contributions discussed above, there will be
 an immediate past service cost of approximately $101,000 which  will  be
 borne by the Village of Malverne as a one-time payment. This estimate is
 based  on  the assumption that payment will be made on February 1, 2021.
 If the Village of Malverne elects to amortize this cost over a  10  year
 period, the cost for the first year including interest would be $13,300.
   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, 2019  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2019
 Report of the  Actuary  and  the  2019  Comprehensive  Annual  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2015,
 2016, 2017, 2018, and 2019 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, 2019
 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 fiscal note does not constitute a legal opinion on the  viability
 of  the  proposed change nor is it intended to serve as a substitute for
 the professional judgment of an attorney.
   This estimate, dated July 10, 2020, and intended for use  only  during
 the  2020  Legislative Session, is Fiscal Note No. 2020-127, prepared by
 the Actuary for the New York State and Local Retirement System.