S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6367
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               June 6, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN  ACT to amend chapter 504 of the laws of 2009 amending the retirement
   and social security law and other laws relating to establishing police
   and fire retirement provisions, in relation to  a  special  retirement
   plan  for  certain  members of the New York state and local police and
   fire retirement system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  8  of  part A of chapter 504 of the laws of 2009
 amending the retirement and social security law and other laws  relating
 to  establishing  police  and  fire retirement provisions, as amended by
 chapter 263 of the laws of 2016, is amended to read as follows:
   § 8. (a) Notwithstanding any provision of law to the contrary, nothing
 in this act shall limit the eligibility of any  member  of  an  employee
 organization to join a special retirement plan open to him or her pursu-
 ant  to  a  collectively  negotiated  agreement  with any state or local
 government employer, where such agreement is in effect on the  effective
 date  of this act and so long as such agreement remains in effect there-
 after; provided, however, that any such eligibility shall not apply upon
 termination of such agreement for employees  otherwise  subject  to  the
 provisions of article [twenty-two] 22 of the retirement and social secu-
 rity law.
   (b)  Notwithstanding  any  other provision of law to the contrary, any
 member of a retirement system within New York state who became a  member
 of  such system on or after July 1, 2009 and before January 10, 2010 and
 subsequently become a member of the New York state and local police  and
 fire  retirement system and thereafter transferred his or her membership
 in the first retirement system to the New York state  and  local  police
 and  fire retirement system may elect to be covered by the provisions of
 article [twenty-two] 22 of the retirement and social security law effec-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11962-06-9

 S. 6367                             2
 
 tive on the date of membership in  the  first  retirement  system.  Such
 member  shall  also  be  permitted  to elect any special retirement plan
 available to him or her. Any contributions for previous pension benefits
 shall not be refunded.
   (C)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY ANY
 MEMBER OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM
 WHO BECAME A MEMBER ON OR AFTER JULY 1, 2009 AND BEFORE JANUARY 9,  2010
 MAY  JOIN  A  SPECIAL  RETIREMENT  PLAN OPEN TO HIM OR HER PURSUANT TO A
 COLLECTIVE NEGOTIATED AGREEMENT  WITH  ANY  STATE  OR  LOCAL  GOVERNMENT
 EMPLOYER,  WHERE  SUCH  AGREEMENT WAS IN EFFECT ON OR AFTER JULY 1, 2009
 AND BEFORE JANUARY 9, 2010 OR SUCH AGREEMENT WAS EXPIRED  BUT  CONTINUED
 PURSUANT  TO  SECTION  209  OF THE CIVIL SERVICE LAW ON OR AFTER JULY 1,
 2009 AND BEFORE JANUARY 9, 2010.
   (D) ANY MEMBER OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIRE-
 MENT SYSTEM WHO ELECTS COVERAGE OF A SPECIAL RETIREMENT PLAN PURSUANT TO
 SUBDIVISION (C) OF THIS SECTION SHALL BE CONSIDERED A MEMBER SUBJECT  TO
 ALL  THE TERMS AND CONDITIONS OF ARTICLE 11 OF THE RETIREMENT AND SOCIAL
 SECURITY LAW.
   § 2. No employee contributions made to the New York  state  and  local
 police  and  fire retirement system by any police officer or firefighter
 who elects to make such change in plan coverage  pursuant  to  this  act
 shall be returned to such officer or firefighter. Such employee contrib-
 ution  shall be used to offset any past service costs incurred by opera-
 tion of the provisions of this act.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend Chapter 504 of the Laws of 2009 to  allow  indi-
 viduals  who  became a member of the New York State and Local Police and
 Fire Retirement System (PFRS) on or after July 1, 2009 and before  Janu-
 ary  9,  2010,  to make an irrevocable election to become covered by the
 provisions of Tier 2. Any member who elects to become covered would  not
 receive a refund of member contributions.
   If  this  bill  is  enacted during the 2019 legislative session, there
 will be an increase in annual contributions made to PFRS  on  behalf  of
 affected  members  by such member's employers based upon the current and
 resulting plan coverage. For the fiscal  year  ending  March  31,  2020,
 anticipated  increases  in  employer contribution rates, as a percent of
 salary, are approximately
                         Current Plan
  Resulting
 Tier 2 Plan    Tier 3        Tier 5       Tier 5
                         Contributory    Non-Contrib
   384-d        0.1%     4.5%               1.1%
   384-e        0.9%     4.5%               1.1%
   381-b        2.8%     4.6%
   In future years, these costs will vary as billing rates  and  salaries
 change.
   This proposal is expected to affect 231 active members earning a sala-
 ry of approximately $21.6 million as of March 31, 2018.
   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.

 S. 6367                             3
 
   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 May 16, 2019, and intended for  use  only  during
 the  2019  Legislative Session, is Fiscal Note No. 2019-112, prepared by
 the Actuary for the New York State and Local Retirement System.