S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8349
 
                             I N  S E N A T E
 
                               May 18, 2020
                                ___________
 
 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, in  relation  to
   certain honorably discharged veterans
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision 9 of section 1000 of the retirement and  social
 security  law,  as amended by chapter 41 of the laws of 2016, is amended
 to read as follows:
   9. Anything to the contrary  in  subdivision  three  of  this  section
 notwithstanding,  to  obtain  such  credit,  a  member who first joins a
 public retirement system of the state on or after April first, two thou-
 sand twelve 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 [six] THREE
 percent of such member's compensation earned during the twelve months of
 credited service immediately preceding the date  that  the  member  made
 application for credit pursuant to this section.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  decrease  the amount of payment required for Tier 6
 members who  are obtaining military service credit pursuant  to  Section
 1000  of  the  Retirement and Social Security Law.  Under current law, a
 Tier 6 member must pay a sum equal to the product of the number of years
 of military service being claimed  and  six  percent  of  such  member's
 compensation  earned  during the twelve months of credited service imme-
 diately preceding the date that the member made application for  credit.
 This legislation would require such members to pay only three percent of
 compensation per year of service being claimed.
   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 be 3% of an affected members' compensation
 for each year of additional service credit that is purchased.  For  ERS,
 this cost would be borne entirely by the State of New York.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15570-02-0

 S. 8349                             2
 
   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 be 3% of an affected members' compensation for  each  year  of
 additional  service  that  is  purchased.   For PFRS, this cost would be
 shared  by  the State of New York and the participating employers of the
 PFRS.
   The exact number of current members as  well  as  future  members  who
 could be affected by this legislation cannot be readily determined.
   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 May 8, 2020, and intended for use only during the
 2020 Legislative Session, is Fiscal Note No. 2020-113, prepared  by  the
 Actuary for the New York State and Local Retirement System.