Senate Bill S8696

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8696
 
                             I N  S E N A T E
 
                               July 8, 2020
                                ___________
 
 Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the retirement and social security law, in  relation  to
   transfer of retirement membership for certain employees of SUNY within
   the professional, scientific and technical bargaining unit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The retirement and social security law is amended by adding
 a new section 618 to read as follows:
   § 618. TRANSFER OF MEMBERSHIP INTO NEW YORK STATE AND LOCAL EMPLOYEES'
 RETIREMENT SYSTEM. A. DEFINITIONS. WHENEVER USED IN THIS SECTION:
   1. THE TERM "ELIGIBLE EMPLOYEE" SHALL MEAN A  PERSON  WHO  AS  OF  THE
 EFFECTIVE DATE OF THIS SECTION IS AN EMPLOYEE OF THE STATE UNIVERSITY OF
 NEW YORK IN A POSITION WITHIN THE PROFESSIONAL, SCIENTIFIC AND TECHNICAL
 BARGAINING  UNIT  AND WHO IS, AS OF SAID EFFECTIVE DATE, A MEMBER OF THE
 OPTIONAL RETIREMENT PROGRAM AND WHO IS  A  REGISTERED  NURSE  WHO  FIRST
 BECAME  AN  EMPLOYEE  OF THE STATE UNIVERSITY OF NEW YORK AT STONY BROOK
 HOSPITAL ON A DATE BETWEEN JANUARY FIRST,  NINETEEN  HUNDRED  NINETY-SIX
 AND DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-NINE AND WHO IS STILL
 EMPLOYED BY THE STATE UNIVERSITY OF NEW YORK AS OF THE DATE SAID EMPLOY-
 EE FILES AN APPLICATION PURSUANT TO SUBDIVISION B OF THIS SECTION;
   2.  THE  TERM  "OPTIONAL  RETIREMENT  PROGRAM" SHALL MEAN THE OPTIONAL
 RETIREMENT PROGRAM ESTABLISHED PURSUANT TO ARTICLE EIGHT-B OF THE EDUCA-
 TION LAW.
   B. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  AN  ELIGIBLE  EMPLOYEE
 SHALL  BE  ALLOWED  TO  BECOME  A MEMBER OF THE NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM BY FILING AN APPLICATION WITH SAID  RETIRE-
 MENT  SYSTEM  NO  LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-
 ONE.
   C. AN ELIGIBLE EMPLOYEE WHO FILES AN APPLICATION TO BECOME A MEMBER OF
 THE NEW YORK STATE AND  LOCAL  EMPLOYEES'  RETIREMENT  SYSTEM  SHALL  BE
 DEEMED  TO  BE A MEMBER OF THAT RETIREMENT SYSTEM WITH A DATE OF MEMBER-
 SHIP AS OF THE DATE SAID ELIGIBLE EMPLOYEE WAS  FIRST  EMPLOYED  BY  THE
 STATE  UNIVERSITY OF NEW YORK. THE ELIGIBLE EMPLOYEE'S MEMBERSHIP IN THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD08687-05-0

 S. 8696                             2
 
 OPTIONAL RETIREMENT PROGRAM SHALL TERMINATE AS OF THE DATE SAID APPLICA-
 TION IS FILED.
   D. AN ELIGIBLE EMPLOYEE WHO BECOMES A MEMBER OF THE NEW YORK STATE AND
 LOCAL  EMPLOYEES'  RETIREMENT  SYSTEM  PURSUANT TO SUBDIVISION B OF THIS
 SECTION MAY ELECT TO PURCHASE CREDIT FOR PREVIOUS SERVICE FOR ANY PERIOD
 DURING WHICH SAID EMPLOYEE WAS  A  MEMBER  OF  THE  OPTIONAL  RETIREMENT
 PROGRAM  BY  FILING  AN  APPLICATION  WITH  THE NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM NO LATER THAN  DECEMBER  THIRTY-FIRST,  TWO
 THOUSAND TWENTY-ONE AND BY PAYING TO SAID RETIREMENT SYSTEM AN AMOUNT AS
 DETERMINED  BY  THE  COMPTROLLER EQUAL TO THE FULL COST OF SUCH PREVIOUS
 SERVICE CREDIT PURCHASED WHICH SHALL INCLUDE AN AMOUNT EQUIVALENT TO THE
 ADDITIONAL COSTS TO THE EMPLOYER OF PROVIDING RETIREMENT SERVICE  CREDIT
 TO  SUCH  EMPLOYEE  WHILE  SUCH  EMPLOYEE  WAS  A MEMBER OF THE OPTIONAL
 RETIREMENT PROGRAM AS DETERMINED  BY  THE  ACTUARY  FOR  THE  RETIREMENT
 SYSTEM. SAID PAYMENT MAY BE MADE BY A TRANSFER OF FUNDS FROM THE EMPLOY-
 EE'S OPTIONAL RETIREMENT PROGRAM ACCOUNT TO THE NEW YORK STATE AND LOCAL
 EMPLOYEES'  RETIREMENT  SYSTEM.  SAID  PAYMENT  MAY  ALSO BE MADE IN ONE
 PAYMENT BY THE EMPLOYEE OR BY PAYROLL DEDUCTION OVER  A  PERIOD  NOT  TO
 EXCEED FIVE YEARS.
   §  2. 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.
   § 3. This act shall take effect immediately.
   FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
   This  bill will allow any employee of the State University of New York
 (SUNY) who is a registered nurse in a position within the  Professional,
 Scientific and Technical bargaining unit, who first became employed with
 SUNY  at  Stony  Brook Hospital between January 1, 1996 and December 31,
 1999, and who enrolled in the Optional Retirement Program, to  terminate
 their  membership in the Optional Retirement Program and to be deemed to
 be a member of the New York State and Local Employees' Retirement System
 (NYSLERS) with a date of membership as of the date of  first  employment
 by  SUNY.  Affected  members  will  be  required  to pay the entire past
 service cost as determined  by  the  Comptroller  in  order  to  receive
 retirement  service  credit  for  any period of service rendered while a
 member of the Optional Retirement Program.
   If this bill is enacted, the number of employees who may  be  affected
 cannot  be  readily  determined.  For  every employee who does so elect,
 there will be an annual cost to the State of New York  of  approximately
 16.1% of salary beginning with the fiscal year ending March 31, 2021.
   In addition to the annual cost above, for every member who elects this
 benefit,  there will be a past service cost that will depend on the age,
 service and salary of the member. Members will be able to pay this  cost
 using  any  of  three  methods, including a transfer of funds from their
 Optional Retirement Program balance, a one-time payment, or  by  payroll
 deduction over a period not to exceed five (5) years.
   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.

 S. 8696                             3
 
   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  January  22,  2020,  and intended for use only
 during the  2020  Legislative  Session,  is  Fiscal  Note  No.  2020-41,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.