S T A T E   O F   N E W   Y O R K
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                                   3968
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2019
                                ___________
 
 Introduced  by  Sen.  BROOKS -- 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,  the  education
   law  and  the administrative code of the city of New York, in relation
   to supplemental military retirement allowances for members  of  public
   retirement systems of the state
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1000 of the retirement and social security  law  is
 amended by adding a new subdivision 8-a to read as follows:
   8-A.  A  PERSON  WHO  RETIRED  PRIOR TO MAY THIRTY-FIRST, TWO THOUSAND
 SEVENTEEN AND WHO WOULD HAVE BEEN ENTITLED TO  THE  PROVISIONS  OF  THIS
 SECTION,  MAY  MAKE  APPLICATION TO SUCH RETIREMENT SYSTEM NO LATER THAN
 DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY FOR A  SUPPLEMENTAL  MILITARY
 RETIREMENT  ALLOWANCE  PURSUANT  TO THIS SUBDIVISION.   THE SUPPLEMENTAL
 RETIREMENT ALLOWANCE PROVIDED BY THIS SUBDIVISION SHALL BE  IN  LIEU  OF
 ANY  BENEFIT  OTHERWISE PROVIDED PURSUANT TO THIS SECTION AND ANY CREDIT
 GRANTED FOR MILITARY SERVICE WITH ANY RETIREMENT SYSTEM  OF  THIS  STATE
 PURSUANT  TO  ANY OTHER SECTION OF LAW.  UPON RECEIPT OF AN APPLICATION,
 THE RETIREMENT SYSTEM SHALL DETERMINE THE AMOUNT OF SERVICE CREDIT  SUCH
 PERSON  WOULD HAVE BEEN ENTITLED TO RECEIVE PURSUANT TO SUBDIVISIONS ONE
 AND TWO OF THIS SECTION, SUBJECT TO THE LIMITATIONS  CONTAINED  IN  THIS
 SECTION.  THE SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL EQUAL THE
 RETIREMENT ALLOWANCE OF SUCH PERSON, COMPUTED WITHOUT OPTIONAL MODIFICA-
 TION AND NOT TO EXCEED FIFTEEN THOUSAND DOLLARS, MULTIPLIED  BY  TWENTY-
 FIVE  ONE-HUNDREDTHS  OF  ONE PERCENT PER MONTH OF THE SERVICE CREDIT AS
 DETERMINED PURSUANT TO THIS SUBDIVISION.   ONE-TWELFTH  OF  THE  SUPPLE-
 MENTAL  MILITARY  RETIREMENT  ALLOWANCE SHALL BE ADDED TO THE RETIREMENT
 ALLOWANCE OF SUCH PERSON EACH MONTH. THE  BENEFIT  PAYABLE  PURSUANT  TO
 THIS  SECTION SHALL COMMENCE ON THE NEXT RETIREMENT ALLOWANCE PAYABLE AT
 LEAST THIRTY DAYS AFTER THE RECEIPT OF AN APPLICATION FROM SUCH  PERSON.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08018-03-9

 S. 3968                             2
 
 FOR THE PURPOSES OF THIS SUBDIVISION, RETIREMENT ALLOWANCE SHALL EXCLUDE
 ANY ANNUITY DERIVED FROM VOLUNTARY CONTRIBUTIONS MADE BY THE INDIVIDUAL,
 EXCEPT THOSE MADE PURSUANT TO ELECTIONS UNDER SUBDIVISION ONE OF SECTION
 FIVE  HUNDRED  ELEVEN-A  OR  PARAGRAPH C OF SUBDIVISION THREE OF SECTION
 FIVE HUNDRED SIXTEEN OF THE EDUCATION LAW, BUT SHALL INCLUDE ANY COST OF
 LIVING  ADJUSTMENT  DERIVED  FROM  SECTIONS  SEVENTY-EIGHT-A  AND  THREE
 HUNDRED  SEVENTY-EIGHT-A OF THIS CHAPTER OR SECTION FIVE HUNDRED THIRTY-
 TWO-A OF THE EDUCATION LAW, AS APPLICABLE.  THE BENEFIT PAYABLE PURSUANT
 TO THIS SUBDIVISION SHALL BE PAYABLE FOR THE LIFE OF THE RETIRED  MEMBER
 ONLY,  EXCEPT THAT THE SURVIVING SPOUSE OF A DECEASED MEMBER WHO RETIRED
 UNDER AN OPTION PROVIDING A BENEFIT TO BE  CONTINUED  FOR  LIFE  TO  THE
 SURVIVING  SPOUSE  AFTER  THE  DEATH  OF THE MEMBER SHALL BE ENTITLED TO
 RECEIVE FIFTY PERCENT OF THE MONTHLY BENEFIT  THAT  THE  RETIRED  MEMBER
 WOULD  BE  RECEIVING PURSUANT TO THIS SUBDIVISION, IF LIVING, COMMENCING
 WITH THE NEXT RETIREMENT ALLOWANCE PAYABLE AT LEAST  THIRTY  DAYS  AFTER
 RECEIPT  OF  AN  APPLICATION  FROM THE RETIRED MEMBER FOR THE BENEFIT OR
 PAYABLE AFTER THE DEATH OF THE RETIRED MEMBER.
   § 2. Subdivision b of section 78-a of the retirement and social  secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:
   b. Said cost-of-living adjustment shall be a percentage of the  annual
 retirement   allowance  otherwise  payable,  computed  without  optional
 modification, but including any benefit derived from  subdivision  f  of
 this  section  [and], any prior year's cost-of-living adjustment derived
 from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT
 ALLOWANCE DERIVED FROM SUBDIVISION EIGHT-A OF SECTION  ONE  THOUSAND  OF
 THIS  CHAPTER.  Said  percentage  is  set forth in subdivision d of this
 section.
   § 3. Subdivision b of section 378-a of the retirement and social secu-
 rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
 read as follows:
   b.  Said cost-of-living adjustment shall be a percentage of the annual
 retirement  allowance  otherwise  payable,  computed  without   optional
 modification,  but  including  any benefit derived from subdivision f of
 this section [and], any prior year's cost-of-living  adjustment  derived
 from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT
 ALLOWANCE  DERIVED  FROM  SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF
 THIS CHAPTER.  Said percentage is set forth in  subdivision  d  of  this
 section.
   §  4. Subdivision b of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   b. Said cost-of-living adjustment shall be a percentage of the  annual
 retirement   allowance  otherwise  payable,  computed  without  optional
 modification, excluding any annuity derived from voluntary contributions
 made by members, except those made pursuant to elections under  subdivi-
 sion  one of section five hundred eleven-a or paragraph c of subdivision
 three of section five hundred sixteen of this article, but including any
 benefit derived from subdivision f of  this  section  [and],  any  prior
 year's  cost-of-living  adjustment  derived  from  this  section AND THE
 AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT  ALLOWANCE  DERIVED  FROM
 SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THE RETIREMENT AND SOCIAL
 SECURITY  LAW.  Said  percentage  is  set forth in subdivision d of this
 section.
   § 5. Subdivision b of section 13-696 of the administrative code of the
 city of New York, as added by chapter  125  of  the  laws  of  2000,  is
 amended to read as follows:

 S. 3968                             3
 
   b.  Said cost-of-living adjustment shall be a percentage of the annual
 fixed retirement allowance otherwise payable, computed without  optional
 modification,  but  including  any benefit derived from subdivision f of
 this section [and], any prior year's cost-of-living  adjustment  derived
 from  this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY ALLOWANCE
 DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THE  RETIRE-
 MENT  AND SOCIAL SECURITY LAW.  Said percentage is set forth in subdivi-
 sion d of this section.
   § 6. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend Section 1000 of the Retirement and Social  Secu-
 rity  Law  to give veterans who retired prior to May 31, 2017, a supple-
 mental pension equal to their first $15,000  of  single  life  allowance
 together  with  any cost of living adjustment, multiplied by 3% per year
 for up to three (3) years of such service credit  for  military  service
 that  would  have  been  eligible if the member retired on or after such
 date. The surviving spouse of such a retired veteran who chose a contin-
 ued life benefit to the spouse shall receive half of what  the  deceased
 member  would  have received. There would not be any payment required by
 an affected retiree or surviving spouse for this  supplemental  pension.
 Such  retiree may make application for the supplemental pension no later
 than December 31, 2020 and the payment of the benefit  will  begin  with
 the  next monthly pension payment payable at least 30 days after receipt
 of the application.
   The exact number of retirees that could be  affected  by  this  legis-
 lation cannot be readily determined.
   ERS Costs: Pursuant to Section 25 of the Retirement and Social Securi-
 ty  Law,  the  increased cost to the New York State and Local Employees'
 Retirement System would be borne entirely by the State of New  York  and
 would  require  an  itemized appropriation sufficient to pay the cost of
 the provision. Once a retiree applies for this benefit a  cost  will  be
 generated, which will be billed to the State.
   PFRS  Costs:  These costs would be shared by the State of New York and
 the participating employers in the PFRS.
   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 13, 2019,  and  intended  for  use  only
 during  the  2019  Legislative  Session,  is  Fiscal  Note  No. 2019-77,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.