S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5361
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 11, 2019
                                ___________
 
 Introduced  by  M.  of  A. FITZPATRICK -- Multi-Sponsored by -- M. of A.
   MANKTELOW -- read once and referred to the Committee  on  Governmental
   Employees
 
 AN  ACT  to amend the retirement and social security law, in relation to
   calculating pension benefits for public employees

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  75  of the retirement and social security law is
 amended by adding a new subdivision e to read as follows:
   E. FOR PURPOSES OF THIS TITLE, ALL FINAL  AVERAGE  SALARIES  SHALL  BE
 CALCULATED  EXCLUSIVE OF ANY FORM OF OVERTIME COMPENSATION, UNUSED VACA-
 TION TIME, UNUSED SICK LEAVE OR UNUSED PERSONAL TIME.
   § 2. Section 375 of the retirement and social security law is  amended
 by adding a new subdivision e to read as follows:
   E.  FOR  PURPOSES  OF  THIS TITLE, ALL FINAL AVERAGE SALARIES SHALL BE
 CALCULATED EXCLUSIVE OF ANY FORM OF OVERTIME COMPENSATION, UNUSED  VACA-
 TION TIME, UNUSED SICK LEAVE OR UNUSED PERSONAL TIME.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law,  Section  50:    This  bill
 would reduce the retirement benefits for members who retire from the New
 York State and Local Employees' Retirement System (ERS) and the New York
 State  and  Local  Police and Fire Retirement System (PFRS) by requiring
 the exclusion of any form  of  overtime  compensation,  unused  vacation
 time,  unused  sick  leave or unused personal time in the calculation of
 final average salary (FAS).
   This legislation would reduce the benefits of many members in the  ERS
 and  the PFRS who retire on or after the effective date. If this becomes
 law, it is likely to face a  constitutional  challenge  based  upon  the
 guarantee that a member's benefits may not be diminished.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05978-02-9
              

 A. 5361                             2
 
   There  would be an administrative cost to the System to change the FAS
 calculation.
   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, 2018  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2018
 Report of the  Actuary  and  the  2018  Comprehensive  Annual  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2015,
 2016, 2017 and 2018  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, 2018
 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  January  10,  2019,  and intended for use only
 during the  2019  Legislative  Session,  is  Fiscal  Note  No.  2019-20,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.