NY State Senate Bill 2019-S5660A

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 26, 2020	print number 5660a
Mar 26, 2020	amend and recommit to civil service and pensions
Jan 08, 2020	referred to civil service and pensions
May 10, 2019	referred to civil service and pensions

Bill Amendments

Original

A (Active)

2019-S5660 - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§504, 604, 516 & 1312, R & SS L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S4235
2023-2024: S6174
2025-2026: S6638

2019-S5660 - Summary

Relates to calculating certain pensions; increases pension calculation from thirty-five to forty per centum of final average salary.

2019-S5660 - Sponsor Memo

                                
 
BILL NUMBER: S5660

SPONSOR: GOUNARDES
 
TITLE OF BILL:  An act to amend the retirement and social security
law, in relation to calculating certain pensions

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would amend the retirement and social security law to increase
the final average salary multiplier for employees who have twenty years
of credit in the New York State and Local Government Employees Retire-
ment System.

 
SUMMARY OF PROVISIONS:

This bill amends sections 504, 516, 604, and 1312 of the retirement and
social security law to increase the final average salary percentage
multiplier for employees in the tier 6.

 
EXISTING LAW:

Upon reaching twenty-years of service, employees in the tier 6 NYSLERS
pension plan receive a pension allowance equal to 35% of final average
salary. After twenty-years, a person receives an additional 2% per year
of final average salary.

 
JUSTIFICATION:

New York's pension plan used to be a draw to workers in our state.
Employees knew they would earn less than their counterparts in the
private sector but would have a quality defined-benefit pension in their
retirement. The changes to tier 6 have changed this dynamic.  It's now
harder than ever to recruit employees into positions such as direct care
work and jobs in the medical field. This legislation would amend the
tier 6 pension plan to give employees a 40% final average salary pension
after twenty years rather than the current 35%. This will help reduce
attrition and strengthen our public workforce.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

See fiscal note

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S5660 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5660
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 10, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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
   calculating certain pensions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision a of section 504 of the retirement and social
 security law, as amended by chapter 18 of the laws of 2012,  is  amended
 to read as follows:
   a.  The  service  retirement  benefit  for  general  members at normal
 retirement age with twenty or more years of credited service shall be  a
 pension  equal  to  one-fiftieth  of final average salary times years of
 credited service, not in excess of thirty years, less fifty  percent  of
 the  primary  social  security retirement benefit as provided in section
 five hundred eleven of this article. The service retirement benefit  for
 general  members  at  normal retirement age with twenty or more years of
 service who first become members of the New York state and local employ-
 ees' retirement system on or after April first, two thousand  twelve  at
 normal  retirement  age  shall be a pension equal to the sum of [thirty-
 five] FORTY per centum and one-fiftieth of final average salary for each
 year of service in excess of twenty, but not in excess of thirty,  times
 final average salary times years of credited service.
   § 2. Subdivision b-1 of section 604 of the retirement and social secu-
 rity law, as added by chapter 18 of the laws of 2012, is amended to read
 as follows:
   b-1.  Notwithstanding  any other provision of law to the contrary, the
 service retirement benefit for members with  twenty  or  more  years  of
 credit  service  who first become a member of a public retirement system
 of the state on or after April first, two thousand twelve at age  sixty-
 three  shall  be  a  pension equal to the sum of [thirty-five] FORTY per
 centum and one-fiftieth of final average salary for each year of service
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06130-03-9

 S. 5660                             2
 
 in excess of twenty times final average salary times years  of  credited
 service.  In  no  event  shall  any  retirement  benefit payable without
 optional modification be less than the actuarially equivalent annuitized
 value  of  the  member's contributions accumulated with interest at five
 percent per annum compounded annually to the date of retirement.
   § 3. Subdivision d of section 516 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   d. The deferred vested benefit of general  members  in  the  uniformed
 correction  force of the New York city department of correction, who are
 not entitled to a deferred vested benefit under subdivision d of section
 five hundred four-a of this article or under subdivision  d  of  section
 five  hundred  four-b  of this article or under subdivision d of section
 five hundred four-d of this  article,  or  of  general  members  in  the
 uniformed  personnel  in  institutions  under  the  jurisdiction  of the
 department of corrections  and  community  supervision,  as  defined  in
 subdivision  i  of  section  eighty-nine of this chapter, with twenty or
 more years of credited service shall be a pension commencing  at  normal
 retirement age equal to one-fiftieth of final average salary times years
 of  credited  service, not in excess of thirty years, or for members who
 first become members of the New York state and local employees'  retire-
 ment  system  on  or  after  April first, two thousand twelve, a pension
 equal to the sum of [thirty-five] FORTY per centum and  one-fiftieth  of
 final  average  salary for each year of service in excess of twenty, but
 not in excess of thirty, times final average salary times years of cred-
 ited service. The deferred vested benefit  of  general  members  in  the
 uniformed   correction   force  of  the  New  York  city  department  of
 correction, who are not entitled to  a  deferred  vested  benefit  under
 subdivision  d  of  section five hundred four-a of this article or under
 subdivision d of section five hundred four-b of this  article  or  under
 subdivision  d  of  section  five  hundred four-d of this article, or of
 general members in the uniformed personnel in institutions under  juris-
 diction  of  the department of corrections and community supervision, as
 defined in subdivision i of section eighty-nine of  this  chapter,  with
 less than twenty years of credited service shall be a pension commencing
 at  normal  retirement age equal to one-sixtieth of final average salary
 times years of credited service. Such deferred  vested  benefit  may  be
 paid in the form of an early service retirement benefit, or may be post-
 poned until after normal retirement age, in which event the benefit will
 be  subject  to  reduction or escalation as provided in subdivision c of
 section five hundred four of this article.
   § 4. Section 1312 of the retirement and social security law, as  added
 by chapter 18 of the laws of 2012, is amended to read as follows:
   §  1312.  Benefit  enhancements.  Notwithstanding any other law to the
 contrary, eligible employees  shall  be  permitted  to  retire,  without
 penalty,  upon  reaching  age fifty-seven and completing at least thirty
 years of credited service. Employees retiring pursuant to  this  section
 shall  receive  a  pension  allowance  equal to the sum of [thirty-five]
 FORTY per centum and one-fiftieth of final average salary for each  year
 of service in excess of twenty times final average salary times years of
 credited service.
   §  5. Notwithstanding any other provision of law to the contrary, none
 of the provisions of this act shall be subject  to  section  25  of  the
 retirement and social security law.
   § 6. This act shall take effect April 1, 2019.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:

 S. 5660                             3

   This  bill  will  change  the benefit fraction for a Tier 6 Article 15
 plan member for the service greater than 20 years to 40% of FAS plus  2%
 per  year  of service greater than 20. Currently the benefit for service
 greater than 20 years is 35% of FAS plus 2% per year of service  greater
 than 20.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System (NYSLERS), if this legislation is enacted  during  the
 2019  legislative  session, we anticipate that there will be an increase
 in the annual contributions of the state of New York and all participat-
 ing employers in the NYSLERS approximately 0.8% of the  compensation  of
 each affected Tier 6 member.
   In addition to the annual contributions discussed above, there will be
 a  past service cost of approximately $149 million which would be shared
 by the State of New York and all of the participating employers  in  the
 NYSLERS.  The  estimated  first  year  cost would be approximately $8.03
 million to the State of New York and approximately $11.4 million to  the
 participating employers in the NYSLERS.
   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  February  26,  2019, and intended for use only
 during the  2019  Legislative  Session,  is  Fiscal  Note  No.  2019-28,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.

2019-S5660A (ACTIVE) - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§504, 604, 516 & 1312, R & SS L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S4235
2023-2024: S6174
2025-2026: S6638

2019-S5660A (ACTIVE) - Summary

Relates to calculating certain pensions; increases pension calculation from thirty-five to forty per centum of final average salary.

2019-S5660A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5660A

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
calculating certain pensions

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would amend the retirement and social security law to increase
the final average salary multiplier for employees who have twenty years
of credit in the New York State and Local Government Employees Retire-
ment System.

 
SUMMARY OF PROVISIONS:

This bill amends sections 504, 516, 604, and 1312 of the retirement and
social security law to increase the final average salary percentage
multiplier for employees in the tier 6.

 
EXISTING LAW:

Upon reaching twenty-years of service, employees in the tier 6 NYSLRS
pension plan receive a pension allowance equal to 35% of final average
salary. After twenty-years, a person receives an additional 2% per year
of final average salary.

 
JUSTIFICATION:

New York's pension plan used to be a draw to workers in our state.
Employees knew they would earn less than their counterparts in the
private sector but would have a quality defined-benefit pension in their
retirement. The changes to tier 6 have changed this dynamic.  It's now
harder than ever to recruit employees into positions such as direct care
work and jobs in the medical field. This legislation would amend the
tier 6 pension plan to give employees a 40% final average salary pension
after twenty years rather than the current 35%. This will help reduce
attrition and strengthen our public workforce.

 
PRIOR LEGISLATIVE HISTORY:

2019: S5660 - Referred to Civil Service & Pensions

 
FISCAL IMPLICATIONS:

See bill.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S5660A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5660--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 10, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   --  recommitted  to  the  Committee  on  Civil Service and Pensions in
   accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the retirement and social security law, in  relation  to
   calculating certain pensions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision a of section 504 of the retirement  and  social
 security  law,  as amended by chapter 18 of the laws of 2012, is amended
 to read as follows:
   a. The service  retirement  benefit  for  general  members  at  normal
 retirement  age with twenty or more years of credited service shall be a
 pension equal to one-fiftieth of final average  salary  times  years  of
 credited  service,  not in excess of thirty years, less fifty percent of
 the primary social security retirement benefit as  provided  in  section
 five  hundred eleven of this article. The service retirement benefit for
 general members at normal retirement age with twenty or  more  years  of
 service who first become members of the New York state and local employ-
 ees'  retirement  system on or after April first, two thousand twelve at
 normal retirement age shall be a pension equal to the  sum  of  [thirty-
 five] FORTY per centum and one-fiftieth of final average salary for each
 year  of service in excess of twenty, but not in excess of thirty, times
 final average salary times years of credited service.
   § 2. Subdivision b-1 of section 604 of the retirement and social secu-
 rity law, as added by chapter 18 of the laws of 2012, is amended to read
 as follows:
   b-1. Notwithstanding any other provision of law to the  contrary,  the
 service  retirement  benefit  for  members  with twenty or more years of

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

                                                            LBD06130-06-0

 S. 5660--A                          2
 
 credit service who first become a member of a public  retirement  system
 of  the state on or after April first, two thousand twelve at age sixty-
 three shall be a pension equal to the sum  of  [thirty-five]  FORTY  per
 centum and one-fiftieth of final average salary for each year of service
 in  excess  of twenty times final average salary times years of credited
 service. In no  event  shall  any  retirement  benefit  payable  without
 optional modification be less than the actuarially equivalent annuitized
 value  of  the  member's contributions accumulated with interest at five
 percent per annum compounded annually to the date of retirement.
   § 3. Subdivision d of section 516 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   d. The deferred vested benefit of general  members  in  the  uniformed
 correction  force of the New York city department of correction, who are
 not entitled to a deferred vested benefit under subdivision d of section
 five hundred four-a of this article or under subdivision  d  of  section
 five  hundred  four-b  of this article or under subdivision d of section
 five hundred four-d of this  article,  or  of  general  members  in  the
 uniformed  personnel  in  institutions  under  the  jurisdiction  of the
 department of corrections  and  community  supervision,  as  defined  in
 subdivision  i  of  section  eighty-nine of this chapter, with twenty or
 more years of credited service shall be a pension commencing  at  normal
 retirement age equal to one-fiftieth of final average salary times years
 of  credited  service, not in excess of thirty years, or for members who
 first become members of the New York state and local employees'  retire-
 ment  system  on  or  after  April first, two thousand twelve, a pension
 equal to the sum of [thirty-five] FORTY per centum and  one-fiftieth  of
 final  average  salary for each year of service in excess of twenty, but
 not in excess of thirty, times final average salary times years of cred-
 ited service. The deferred vested benefit  of  general  members  in  the
 uniformed   correction   force  of  the  New  York  city  department  of
 correction, who are not entitled to  a  deferred  vested  benefit  under
 subdivision  d  of  section five hundred four-a of this article or under
 subdivision d of section five hundred four-b of this  article  or  under
 subdivision  d  of  section  five  hundred four-d of this article, or of
 general members in the uniformed personnel in institutions under  juris-
 diction  of  the department of corrections and community supervision, as
 defined in subdivision i of section eighty-nine of  this  chapter,  with
 less than twenty years of credited service shall be a pension commencing
 at  normal  retirement age equal to one-sixtieth of final average salary
 times years of credited service. Such deferred  vested  benefit  may  be
 paid in the form of an early service retirement benefit, or may be post-
 poned until after normal retirement age, in which event the benefit will
 be  subject  to  reduction or escalation as provided in subdivision c of
 section five hundred four of this article.
   § 4. Section 1312 of the retirement and social security law, as  added
 by chapter 18 of the laws of 2012, is amended to read as follows:
   §  1312.  Benefit  enhancements.  Notwithstanding any other law to the
 contrary, eligible employees  shall  be  permitted  to  retire,  without
 penalty,  upon  reaching  age fifty-seven and completing at least thirty
 years of credited service. Employees retiring pursuant to  this  section
 shall  receive  a  pension  allowance  equal to the sum of [thirty-five]
 FORTY per centum and one-fiftieth of final average salary for each  year
 of service in excess of twenty times final average salary times years of
 credited service.

 S. 5660--A                          3

   §  5. Notwithstanding any other provision of law to the contrary, none
 of the provisions of this act shall be subject  to  section  25  of  the
 retirement and social security law.
   § 6. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  will  change  the benefit fraction for a Tier 6 member for
 service greater than 20 years to 40% of FAS plus 2% per year of  service
 greater than 20. Currently the benefit for service greater than 20 years
 is 35% of FAS plus 2% per year of service greater than 20.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System (NYSLERS), if this legislation is enacted  during  the
 2020  legislative  session, we anticipate that there will be an increase
 in the annual contributions of the state of New York and all participat-
 ing employers in the NYSLERS approximately 0.8% of the  compensation  of
 each affected Tier 6 member.
   In addition to the annual contributions discussed above, there will be
 a  past service cost of approximately $213 million which would be shared
 by the State of New York and all of the participating employers  in  the
 NYSLERS.  The  estimated  first  year  cost would be approximately $10.5
 million to the State of New York and approximately $15.1 million to  the
 participating employers in the NYSLERS.
   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 March 23, 2020, and intended for use only during
 the 2020 Legislative Session, is Fiscal Note No.  2020-76,  prepared  by
 the Actuary for the New York State and Local Retirement System.

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Senate Bill S5660A

Sponsored By

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Actions

Bill Amendments

2019-S5660 - Details

2019-S5660 - Summary

2019-S5660 - Sponsor Memo

2019-S5660 - Bill Text download pdf

2019-S5660A (ACTIVE) - Details

2019-S5660A (ACTIVE) - Summary

2019-S5660A (ACTIVE) - Sponsor Memo

2019-S5660A (ACTIVE) - Bill Text download pdf

Comments

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Get Status Alerts for 2019-S5660A

Senate Bill S5660A

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Sponsored By

Andrew Gounardes

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Actions

Bill Amendments

2019-S5660 - Details

2019-S5660 - Summary

2019-S5660 - Sponsor Memo

2019-S5660 - Bill Text download pdf

2019-S5660A (ACTIVE) - Details

2019-S5660A (ACTIVE) - Summary

2019-S5660A (ACTIVE) - Sponsor Memo

2019-S5660A (ACTIVE) - Bill Text download pdf

Comments