S T A T E   O F   N E W   Y O R K
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                                   5038
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 4, 2019
                                ___________
 
 Introduced  by Sen. HARCKHAM -- 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
   the military service credit
 
   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 5-a to read as follows:
   5-A.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  FIVE  OF THIS
 SECTION, A MEMBER, WHO IS  INELIGIBLE  TO  RECEIVE  THE  CREDIT  ALLOWED
 PURSUANT TO THIS SECTION SOLELY BECAUSE SUCH MEMBER RETIRED ON OR BEFORE
 MAY THIRTY-FIRST, TWO THOUSAND SIXTEEN, SHALL BE ELIGIBLE TO RECEIVE THE
 CREDIT ALLOWED PURSUANT TO THIS SECTION IF SUCH MEMBER MAKES APPLICATION
 FOR SUCH CREDIT ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY.
 THE  SERVICE  CREDIT  AVAILABLE PURSUANT TO THIS SUBDIVISION SHALL, WHEN
 CALCULATED, APPLY ONLY TO BENEFITS RECEIVED BY THE MEMBER AFTER THE DATE
 SUCH MEMBER MAKES APPLICATION FOR SUCH CREDIT AND NO RETROACTIVE BENEFIT
 PAYMENTS SHALL BE MADE TO SUCH APPLICANT PURSUANT TO  THIS  SUBDIVISION.
 TO  OBTAIN  CREDIT PURSUANT TO THIS SUBDIVISION, A MEMBER SHALL PAY SUCH
 RETIREMENT SYSTEM, FOR DEPOSIT IN THE FUND USED TO  ACCUMULATE  EMPLOYER
 CONTRIBUTIONS,  A  SUM  EQUAL  TO  THE PRODUCT OF THE NUMBER OF YEARS OF
 MILITARY SERVICE BEING  CLAIMED  AND  THREE  PERCENT  OF  SUCH  MEMBER'S
 COMPENSATION EARNED DURING THE LAST TWELVE CONSECUTIVE MONTHS OF CREDIT-
 ED SERVICE PRECEDING THE DATE THAT THE MEMBER RETIRED.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow members who retired on or before May 31, 2016 to
 apply  to  receive  military  service  credit  pursuant  to §1000 of the
 Retirement and Social Security Law.  Application  must  be  made  on  or
 before  December  31,  2020. If approved, the retirement benefit will be
 recalculated as of the date of application and no  retroactive  benefits
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10317-03-9

 S. 5038                             2
 
 will  be paid. Members would be required to pay a sum equal to the prod-
 uct of number of years of miliary service granted  times  three  percent
 (3%) of compensation earned during the last twelve consecutive months of
 credited  service  preceding  the  date  of  retirement. Such member may
 receive up to three (3) years  of  service  credit  for  their  military
 service.
   If this bill is enacted, insofar as this proposal affects the New York
 State and Local Employees' Retirement System (ERS), it is estimated that
 the  past  service  cost  will  average approximately 10% of an affected
 members' compensation for each year of additional service credit that is
 purchased.
   Insofar as this proposal affects the New York State and  Local  Police
 and Fire Retirement System (PFRS), it is estimated that the past service
 cost will average approximately 12% of an affected members' compensation
 for each year of additional service that is purchased.
   The  exact  number  of  retired  members who could be affected by this
 legislation cannot be readily determined.
   ERS costs would be borne entirely by the State of New York. A  precise
 cost can't be determined until each member applies for the service cred-
 it.  After  the  application  deadline,  a  cost will be determined (and
 billed to the state) based on those benefiting from this provision.
   PFRS costs would be shared by the State of New York  and  the  partic-
 ipating 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 April 2, 2019, and intended for use only during
 the 2019 Legislative Session, is Fiscal Note No.  2019-98,  prepared  by
 the Actuary for the New York State and Local Retirement System.