S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1879--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2021
                                ___________
 
 Introduced by Sens. SKOUFIS, AKSHAR, BROOKS, GALLIVAN, HELMING, HINCHEY,
   MARTUCCI,  ORTT,  RITCHIE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- recommitted to the Committee  on  Civil  Service  and  Pensions  in
   accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to amend the retirement and social security law, in relation to
   providing county correction officers with a  special  optional  twenty
   year retirement plan
 
   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 article 14-C to read as follows:
                               ARTICLE 14-C
     OPTIONAL RETIREMENT PLAN FOR COUNTY CORRECTION OFFICERS OR DEPUTY
                SHERIFFS PERFORMING AS CORRECTION OFFICERS
 SECTION 561. DEFINITIONS.
         562. OPTIONAL TWENTY YEAR RETIREMENT PLAN  FOR  CERTAIN  MEMBERS
                WHOSE EMPLOYER ELECTS TO PROVIDE SAME.
         563. ADDITIONAL  PENSION  BENEFIT FOR MEMBERS OF OPTIONAL TWENTY
                YEAR RETIREMENT PLAN.
         564. CONSISTENT PROVISIONS.
   § 561. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   (A) "MEMBER"  SHALL  MEAN  A  PERSON  WHO  IS  EMPLOYED  AS  A  COUNTY
 CORRECTION  OFFICER  OR  A  DEPUTY  SHERIFF  WHO  IS ENGAGED DIRECTLY IN
 CORRECTION OFFICER DUTIES THAT  AGGREGATE  FIFTY  PER  CENTUM  OF  THEIR
 SERVICE  BY  A  COUNTY  WHICH  ELECTS  BY  RESOLUTION OR LOCAL LAW, DULY
 ADOPTED, TO PROVIDE THE BENEFITS AS AUTHORIZED BY THIS ARTICLE.
   (B) "RETIREMENT SYSTEM" SHALL  MEAN  THE  NEW  YORK  STATE  AND  LOCAL
 EMPLOYEES' RETIREMENT SYSTEM.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06043-02-2
              

 S. 1879--A                          2
 
   (C)  "CREDITABLE SERVICE" SHALL INCLUDE ANY AND ALL SERVICES PERFORMED
 AS A SHERIFF, UNDERSHERIFF OR DEPUTY  SHERIFF,  OR  CORRECTION  OFFICER.
 CREDIT  FOR  SERVICE  AS A MEMBER OR OFFICER OF THE STATE POLICE OR AS A
 PAID FIREMAN, POLICEMAN OR OFFICER OF ANY ORGANIZED FIRE  DEPARTMENT  OR
 POLICE  FORCE  OR  DEPARTMENT  OF  ANY COUNTY, CITY, VILLAGE, TOWN, FIRE
 DISTRICT OR POLICE DISTRICT, SHALL  ALSO  BE  DEEMED  TO  BE  CREDITABLE
 SERVICE  AND  SHALL  BE INCLUDED IN COMPUTING YEARS OF TOTAL SERVICE FOR
 RETIREMENT PURSUANT TO THIS SECTION, PROVIDED SUCH SERVICE WAS PERFORMED
 BY THE MEMBER WHILE CONTRIBUTING TO THE RETIREMENT  SYSTEM  PURSUANT  TO
 THE PROVISIONS OF THIS ARTICLE OR ARTICLE EIGHT OF THIS CHAPTER.
   §  562. OPTIONAL TWENTY YEAR RETIREMENT PLAN FOR CERTAIN MEMBERS WHOSE
 EMPLOYER ELECTS TO PROVIDE SAME. (A) ANY MEMBER OF THE RETIREMENT SYSTEM
 MAY ELECT TO BECOME A MEMBER PURSUANT TO THE PROVISIONS OF THIS  SECTION
 WITHIN ONE YEAR AFTER HE OR SHE BECOMES A MEMBER, IF HIS OR HER EMPLOYER
 HAS  ELECTED  TO MAKE THE BENEFITS PROVIDED BY THIS SECTION AVAILABLE TO
 MEMBERS, OR WITHIN ONE YEAR AFTER HIS OR HER EMPLOYER ELECTS TO MAKE THE
 BENEFITS PROVIDED BY THIS SECTION AVAILABLE TO ITS MEMBERS.
   (B) ELECTIONS MADE PURSUANT TO THIS SECTION SHALL BE  IN  WRITING  AND
 SHALL  BE  DULY  ACKNOWLEDGED AND FILED WITH THE COMPTROLLER. ANY MEMBER
 WHO FILES SUCH AN ELECTION PURSUANT TO  THIS  SECTION  MAY  WITHDRAW  IT
 AFTER IT HAS BEEN FILED FOR AT LEAST A YEAR. SUCH WITHDRAWAL SHALL BE BY
 WRITTEN NOTICE DULY ACKNOWLEDGED AND FILED WITH THE COMPTROLLER.
   (C) A MEMBER PARTICIPATING ON THE BASIS OF THIS SECTION AT THE TIME OF
 RETIREMENT  SHALL  BE  ENTITLED TO RETIRE AFTER THE COMPLETION OF TWENTY
 YEARS OF TOTAL CREDITABLE SERVICE OR UPON THE ATTAINMENT OF  AGE  SIXTY-
 TWO,  BY  FILING  AN  APPLICATION  THEREFOR  IN A MANNER SIMILAR TO THAT
 PROVIDED IN THIS CHAPTER.
   (I) UPON COMPLETION OF TWENTY YEARS OF SUCH SERVICE AND  UPON  RETIRE-
 MENT, EACH SUCH MEMBER SHALL RECEIVE A PENSION SUFFICIENT TO PROVIDE HIM
 OR  HER  WITH A RETIREMENT ALLOWANCE EQUAL TO ONE-FORTIETH OF HIS OR HER
 FINAL AVERAGE SALARY FOR EACH YEAR  OF  TOTAL  CREDITABLE  SERVICES  FOR
 WHICH HE OR SHE IS OTHERWISE ENTITLED BUT NOT EXCEEDING IN THE AGGREGATE
 ONE-HALF OF HIS OR HER FINAL AVERAGE SALARY.
   (II)  UPON  ATTAINMENT  OF  AGE  SIXTY-TWO AND UPON RETIREMENT WITHOUT
 COMPLETION OF TWENTY YEARS OF  SUCH  SERVICE,  EACH  SUCH  MEMBER  SHALL
 RECEIVE  A  PENSION  SUFFICIENT  TO PROVIDE HIM OR HER WITH A RETIREMENT
 ALLOWANCE EQUAL TO ONE-FORTIETH OF HIS OR HER FINAL AVERAGE  SALARY  FOR
 EACH  YEAR  OF CREDITABLE SERVICE. EVERY SUCH MEMBER SHALL ALSO BE ENTI-
 TLED TO AN ADDITIONAL PENSION EQUAL TO THE PENSION FOR ANY OTHER CREDIT-
 ABLE SERVICE RENDERED AS OTHERWISE PROVIDED FOR IN THIS CHAPTER.    THIS
 LATTER  PENSION SHALL NOT INCREASE THE TOTAL ALLOWANCE TO MORE THAN ONE-
 HALF OF HIS OR HER FINAL AVERAGE SALARY.
   (D) THE INCREASED PENSIONS  TO  SUCH  MEMBERS,  AS  PROVIDED  BY  THIS
 SECTION, SHALL BE PAID FROM ADDITIONAL CONTRIBUTIONS MADE BY THE PARTIC-
 IPATING  EMPLOYER ON ACCOUNT OF SUCH MEMBERS. THE ACTUARY OF THE RETIRE-
 MENT SYSTEM SHALL COMPUTE THE ADDITIONAL CONTRIBUTION REQUIRED FOR  EACH
 MEMBER  WHO  ELECTS  TO RECEIVE THE SPECIAL BENEFITS PROVIDED UNDER THIS
 SECTION. SUCH ADDITIONAL CONTRIBUTIONS SHALL BE COMPUTED ON THE BASIS OF
 CONTRIBUTIONS DURING THE PROSPECTIVE SERVICE OF SUCH MEMBER  WHICH  WILL
 COVER  THE  LIABILITY  OF THE RETIREMENT SYSTEM FOR SUCH EXTRA PENSIONS.
 UPON APPROVAL OF THE COMPTROLLER, SUCH ADDITIONAL CONTRIBUTIONS SHALL BE
 CERTIFIED BY HIM OR HER TO THE CHIEF FISCAL OFFICER OR THE PARTICIPATING
 EMPLOYER. THE AMOUNT THEREOF SHALL BE INCLUDED IN THE  ANNUAL  APPROPRI-
 ATION  OF  THE  PARTICIPATING EMPLOYER. SUCH AMOUNT SHALL BE PAID ON THE
 WARRANT OF THE CHIEF FISCAL OFFICER OF THE PARTICIPATING EMPLOYER TO THE
 PENSION ACCUMULATION FUND OF THE RETIREMENT SYSTEM.
 S. 1879--A                          3
 
   (E) IN COMPUTING THE TWENTY YEARS OF COMPLETED SERVICE  OF  A  MEMBER,
 FULL  CREDIT  SHALL BE GIVEN FOR MILITARY SERVICE AS DEFINED IN SUBDIVI-
 SIONS TWENTY-NINE-A AND THIRTY OF SECTION  THREE  HUNDRED  TWO  OF  THIS
 CHAPTER.
   (F)  EVERY  MEMBER PARTICIPATING ON THE BASIS OF THIS SECTION SHALL BE
 SEPARATED FROM THE SERVICE ON THE LAST DAY OF THE  CALENDAR  MONTH  NEXT
 SUCCEEDING  THE CALENDAR MONTH IN WHICH HE OR SHE ATTAINS AGE SIXTY-TWO,
 PROVIDED, HOWEVER, THAT SUCH A MEMBER WHO ATTAINED THE AGE OF  SIXTY-TWO
 BEFORE HIS OR HER EMPLOYER ELECTED TO MAKE THE BENEFITS PROVIDED BY THIS
 SECTION  AVAILABLE  TO  HIM  OR HER, OR WHO ATTAINS THE AGE OF SIXTY-TWO
 WITHIN ONE MONTH AFTER HIS OR HER EMPLOYER MAKES  SUCH  BENEFITS  AVAIL-
 ABLE,  TO  BE  ELIGIBLE  FOR  A  PENSION COMPUTED IN ACCORDANCE WITH THE
 PROVISIONS OF THIS SECTION, SHALL BE SEPARATED FROM THE  SERVICE  WITHIN
 THREE MONTHS AFTER HIS OR HER EMPLOYER MAKES SUCH BENEFITS AVAILABLE.
   (G)  THE PROVISIONS OF THIS SECTION SHALL BE CONTROLLING NOTWITHSTAND-
 ING ANY OTHER PROVISION OF THIS ARTICLE TO THE CONTRARY.
   (H) THE BENEFITS OF THIS SECTION SHALL  BE  AVAILABLE  ONLY  TO  THOSE
 MEMBERS  WHOSE  EMPLOYER  ELECTS  TO PROVIDE SUCH BENEFITS BY ADOPTING A
 RESOLUTION OR LOCAL LAW TO SUCH EFFECT AND FILING A CERTIFIED COPY THER-
 EOF WITH THE COMPTROLLER.
   (I) THE BENEFITS PROVIDED BY  THIS  SECTION  SHALL  BE  PAYABLE  TO  A
 MEMBER,  UNLESS AT THE DATE OF RETIREMENT SUCH MEMBER WOULD OTHERWISE BE
 ENTITLED TO A GREATER BENEFIT UNDER OTHER PROVISIONS OF THIS CHAPTER HAD
 HE OR SHE WITHDRAWN FROM THIS SECTION, IN WHICH EVENT SUCH GREATER BENE-
 FITS SHALL BE PAYABLE.
   § 563. ADDITIONAL PENSION BENEFIT FOR MEMBERS OF OPTIONAL TWENTY  YEAR
 RETIREMENT  PLAN.  (A)  A  PARTICIPATING  EMPLOYER WHICH HAS ELECTED, OR
 WHICH ELECTS TO PROVIDE THE BENEFITS OF THE OPTIONAL TWENTY YEAR RETIRE-
 MENT PLAN FOR ITS EMPLOYEES AS SPECIFIED IN THIS ARTICLE  MAY  ELECT  TO
 MAKE  CONTRIBUTIONS  FOR  THE PURPOSE OF PROVIDING AN ADDITIONAL PENSION
 PURSUANT TO THIS SECTION FOR MEMBERS IN ITS EMPLOY WHO ARE ENTITLED TO A
 PENSION PURSUANT TO SECTION FIVE  HUNDRED  SIXTY-TWO  OF  THIS  ARTICLE.
 EVERY MEMBER EMPLOYED BY AN EMPLOYER WHICH HAS ELECTED THE PROVISIONS OF
 SECTION  FIVE  HUNDRED  SIXTY-TWO  OF  THIS ARTICLE AND THIS SECTION MAY
 ELECT TO BE COVERED BY THE PROVISIONS OF THIS SECTION BY FILING WITH THE
 COMPTROLLER, A DULY EXECUTED AND ACKNOWLEDGED FORM PREPARED BY THE COMP-
 TROLLER FOR THAT PURPOSE.
   (B) UPON RETIREMENT, EACH SUCH MEMBER SHALL RECEIVE, FOR EACH YEAR  OF
 SERVICE  IN EXCESS OF TWENTY, AN ADDITIONAL PENSION WHICH SHALL BE EQUAL
 TO ONE-SIXTIETH OF HIS OR HER FINAL AVERAGE SALARY;  PROVIDED,  HOWEVER,
 THAT  THE  TOTAL  ALLOWANCE  PAYABLE  PURSUANT TO THIS SECTION SHALL NOT
 EXCEED THREE-QUARTERS OF SUCH MEMBER'S FINAL AVERAGE SALARY.
   § 564. CONSISTENT PROVISIONS. NOTHING CONTAINED IN THIS ARTICLE  SHALL
 BE  CONSTRUED  TO  OTHERWISE AFFECT THE APPLICABILITY OF ARTICLE ELEVEN,
 FOURTEEN OR FIFTEEN OF THIS CHAPTER. ANY OTHER PROVISIONS OF THIS  CHAP-
 TER  RELATING  TO  MANDATORY CONTRIBUTION TO THE RETIREMENT SYSTEM BASED
 UPON A MEMBER'S DATE OF MEMBERSHIP IN SUCH SYSTEM SHALL NOT BE DEEMED TO
 BE AFFECTED BY THE PROVISIONS OF THIS ARTICLE, AND ANY MEMBER WHO ON THE
 EFFECTIVE DATE OF THIS ARTICLE IS NOT REQUIRED TO CONTRIBUTE  SHALL  NOT
 BE  REQUIRED  TO MAKE ANY CONTRIBUTIONS AS A RESULT OF THIS SECTION. FOR
 THOSE MEMBERS REQUIRED TO CONTRIBUTE  TO  THE  RETIREMENT  SYSTEM,  SUCH
 CONTRIBUTION  SHALL  BE TREATED IN THE SAME MANNER AS SPECIFIED FOR SUCH
 MEMBERS IN ARTICLE FOURTEEN OR FIFTEEN OF THIS CHAPTER.
   § 2. Any past service payments required of a county as a result of the
 adoption of the benefits permitted by this act may be amortized  over  a
 period of up to ten years at the option of such county.
 S. 1879--A                          4
 
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would create an Article 14-C for any county correction offi-
 cers or deputy sheriffs engaged directly in correction officer duties at
 least 50% of their service. The retirement benefit is 50% of final aver-
 age  salary  after 20 years of service with additional 60ths for service
 beyond 20 years if an employer so elects.  All  service  rendered  as  a
 correction  officer,  sheriff,  undersheriff,  or deputy sheriff or as a
 fireman, policeman or officer of any organized fire department or police
 force is creditable. The retirement benefit is  not  to  exceed  75%  of
 final average salary.
   If this bill is enacted during the 2022 legislative session, we antic-
 ipate  that there will be increases in employer contributions, according
 to the following tables, on behalf  of  the  affected  members  for  the
 fiscal  year ending March 31, 2023. In future years, this cost will vary
 as the billing rates and salaries of the affected members change.
 
                           20-year half pay plan
                                     Percent of salary
                Current Plan   Tier 4   Tier 5   Tier 6
                   A15          7.0%     7.2%     7.0%
                   89-e         3.4%     3.6%     3.7%
                   551          2.5%     2.6%     2.8%
                   551E         1.6%     1.5%     1.7%
                   551EE        0.9%     0.9%     1.2%
                   552          0.0%     0.0%     0.0%
                   553          0.0%     0.0%     0.0%
                   553B         0.0%     0.0%     0.0%

                  20-year half pay with additional 60ths
                                     Percent of salary
                Current Plan   Tier 4   Tier 5   Tier 6
                   A15          7.6%     8.0%     8.1%
                   89-e         4.0%     4.4%     4.8%
                   551          3.1%     3.4%     3.9%
                   551E         2.2%     2.3%     2.8%
                   551EE        1.5%     1.7%     2.3%
                   552          0.0%     0.0%     0.2%
                   553          0.0%     0.0%     0.0%
                   553B         0.0%     0.0%     0.0%
 
   Insofar as this bill would affect the New York State and Local Employ-
 ees' Retirement System, the past  service  cost  will  depend  upon  the
 member's  service, salary, tier, current retirement plan and new retire-
 ment plan. Once an employer elects to provide this  coverage,  an  exact
 cost would be determined.
   Internal  Revenue  Service  (IRS)  plan qualification issues: granting
 correction officers service credit towards retirement in a 20-year  plan
 could  jeopardize  the  Retirement System's governmental plan status and
 its exemption from ERISA. This could result in  the  loss  of  qualified
 status, which would mean the loss of tax benefits and would substantial-
 ly impair the System's value to our more than one million participants.
   Prior to the enactment of this legislation, we recommend that a favor-
 able ruling be obtained from the IRS stating that these provisions would
 not  harm  the  qualification status of the System. It is estimated that
 S. 1879--A                          5

 the costs to obtain such a ruling would be $28,000 for the  services  of
 the IRS, and $800 per hour for legal consultants.
   Summary of relevant resources:
   Membership  data as of March 31, 2021 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2021 actuari-
 al valuation.  Distributions and other statistics can be  found  in  the
 2021  Report  of the Actuary and the 2021 Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2020
 and  2021 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, 2021
 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 March 29, 2022, and intended for use only  during
 the  2022  Legislative Session, is Fiscal Note No. 2022-106, prepared by
 the Actuary for the New York State and Local Retirement System.