NY State Senate Bill 2021-S5110B

Senate Bill S5110B

2021-2022 Legislative Session

Relates to supplemental military retirement allowances for members of public retirement systems of the state

download bill text pdf

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 25, 2022	print number 5110b
Apr 25, 2022	amend and recommit to civil service and pensions
Jan 05, 2022	referred to civil service and pensions
Jun 07, 2021	print number 5110a
Jun 07, 2021	amend and recommit to finance
May 03, 2021	reported and committed to finance
Feb 23, 2021	referred to civil service and pensions

Votes

- May 3, 2021 - Civil Service And Pensions Committee Vote
  S5110B
  
  6
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Civil Service And Pensions Committee Vote: May 3, 2021
      
      aye (6)
      
      Addabbo Jr.
      
      Akshar
      
      Gounardes
      
      Mannion
      
      Savino
      
      Weik
      
      aye wr (1)
      
      Jackson

Bill Amendments

Original

B (Active)

co-Sponsors

2021-S5110 - Details

See Assembly Version of this Bill:: A6468
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§1000, 78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6820
2015-2016: S5065
2017-2018: S6505
2019-2020: S3968
2023-2024: S7529, A7821
2025-2026: S7115

2021-S5110 - Summary

Relates to supplemental military retirement allowances for members of public retirement systems of the state.

2021-S5110 - Sponsor Memo

                                
 
BILL NUMBER: S5110

SPONSOR: BROOKS
 
TITLE OF BILL:

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

 
PURPOSE:

This bill intends to provide veterans who have retired from public
service in the state with a veterans pension benefit similar to that
which active veteran public employees are entitled to receive

 
SUMMARY OF PROVISIONS:

Section 1. Provide that a member of a public retirement system of the
State of New York who retired prior to May thirty-first, two thousand
seventeen may make application to the retirement system for a supple-

mental military allowance;

Section 2. Applies to persons who meet the eligibility requirements of
the veteran's service credit buy back law

Section 3. provides a supplemental military allowance equal to .25% for
each month of military service of such person, to a maximum of 36 months

Section 4. provides that the supplemental military allowance shall apply
to the first $15,000, prior to optional modification, of the retired
person

Section 5. requires the application for the supplemental military allow-
ance be made no later than December 31, 2019.

 
JUSTIFICATION:

The Veterans Service Credit Act of 2000 permitted active military public
employees who served in the military during specific military conflicts
to purchase up to three years retirement credit for that military
service. This was the first opportunity veterans had to include their
military service in their public retirement plan since 1976.

Many Korean veterans were not eligible for that 1976 buy back law.
Vietnam veterans were just entering public service at that time. In the
ensuing years, many of these veterans provided years of dedicated public
service and retired without the ability to add military credit to their
retirement. Current employees now have that ability.  It is unfair to
ignore the service provided by veterans to our state and country now
that active employees can receive this benefit. This bill overcomes that
injustice by providing retired veterans with a comparable supplemental
military allowance.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately after it shall have become law.

2021-S5110 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5110
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 23, 2021
                                ___________
 
 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-TWO FOR A SUPPLEMENTAL  MILI-
 TARY  RETIREMENT  ALLOWANCE  PURSUANT TO THIS SUBDIVISION.   THE SUPPLE-
 MENTAL 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 APPLICA-
 TION, 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
 MODIFICATION  AND  NOT TO EXCEED FIFTEEN THOUSAND DOLLARS, MULTIPLIED BY
 TWENTY-FIVE ONE-HUNDREDTHS OF ONE PERCENT PER MONTH OF THE SERVICE CRED-
 IT AS DETERMINED PURSUANT TO  THIS  SUBDIVISION.    ONE-TWELFTH  OF  THE
 SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL BE ADDED TO THE RETIRE-
 MENT  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09719-02-1

 S. 5110                             2
 
 PERSON. 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. 5110                             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, 2022 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:
   Membership data as of March 31, 2020 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2020 actuari-
 al  valuation.    Distributions and other statistics can be found in the
 2020 Report of the Actuary and the 2020 Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2020
 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, 2020
 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  19,  2021, and intended for use only
 during the  2021  Legislative  Session,  is  Fiscal  Note  No.  2021-92,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.

co-Sponsors

View additional co-sponsors

2021-S5110A - Details

See Assembly Version of this Bill:: A6468
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§1000, 78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6820
2015-2016: S5065
2017-2018: S6505
2019-2020: S3968
2023-2024: S7529, A7821
2025-2026: S7115

2021-S5110A - Summary

Relates to supplemental military retirement allowances for members of public retirement systems of the state.

2021-S5110A - Sponsor Memo

                                
 
BILL NUMBER: S5110A

SPONSOR: BROOKS
 
TITLE OF BILL:

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

 
PURPOSE:

This bill intends to provide veterans who have retired from public
service in the state with a veterans pension benefit similar to that
which active veteran public employees are entitled to receive

 
SUMMARY OF PROVISIONS:

Section 1. Provide that a member of a public retirement system of the
State of New York who retired prior to May thirty-first, two thousand
seventeen may make application to the retirement system for a supple-

mental military allowance;

Section 2. Applies to persons who meet the eligibility requirements of
the veteran's service credit buy back law

Section 3. provides a supplemental military allowance equal to .25% for
each month of military service of such person, to a maximum of 36 months

Section 4. provides that the supplemental military allowance shall apply
to the first $15,000, prior to optional modification, of the retired
person

Section 5. requires the application for the supplemental military allow-
ance be made no later than December 31, 2019.

 
JUSTIFICATION:

The Veterans Service Credit Act of 2000 permitted active military public
employees who served in the military during specific military conflicts
to purchase up to three years retirement credit for that military
service. This was the first opportunity veterans had to include their
military service in their public retirement plan since 1976.

Many Korean veterans were not eligible for that 1976 buy back law.
Vietnam veterans were just entering public service at that time. In the
ensuing years, many of these veterans provided years of dedicated public
service and retired without the ability to add military credit to their
retirement. Current employees now have that ability.  It is unfair to
ignore the service provided by veterans to our state and country now
that active employees can receive this benefit. This bill overcomes that
injustice by providing retired veterans with a comparable supplemental
military allowance.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately after it shall have become law.

2021-S5110A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5110--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 23, 2021
                                ___________
 
 Introduced  by Sens. BROOKS, GALLIVAN -- read twice and ordered printed,
   and when printed to be committed to the Committee on Civil Service and
   Pensions -- reported favorably from said committee  and  committed  to
   the  Committee  on  Finance  --  committee  discharged,  bill amended,
   ordered reprinted as amended and recommitted to said committee

 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-TWO FOR A SUPPLEMENTAL  MILI-
 TARY  RETIREMENT  ALLOWANCE  PURSUANT TO THIS SUBDIVISION.   THE SUPPLE-
 MENTAL 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 APPLICA-
 TION, 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
 MODIFICATION  AND  NOT TO EXCEED FIFTEEN THOUSAND DOLLARS, MULTIPLIED BY
 TWENTY-FIVE ONE-HUNDREDTHS OF ONE PERCENT PER MONTH OF THE SERVICE CRED-
 IT AS DETERMINED PURSUANT TO  THIS  SUBDIVISION.    ONE-TWELFTH  OF  THE
 SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL BE ADDED TO THE RETIRE-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09719-03-1

 S. 5110--A                          2
 
 MENT  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. 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.

 S. 5110--A                          3
 
   § 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:
   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, 2022 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:
   Membership data as of March 31, 2020 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2020 actuari-
 al  valuation.    Distributions and other statistics can be found in the
 2020 Report of the Actuary and the 2020 Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2020
 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, 2020
 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.

 S. 5110--A                          4
 
   This  estimate,  dated  February  19,  2021, and intended for use only
 during the  2021  Legislative  Session,  is  Fiscal  Note  No.  2021-92,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill (legislative bill draft 09719-02-1) would amend section 1000
 of  the  Retirement  and Social Security Law by adding a new subdivision
 8-a to allow eligible retired members of public  retirement  systems  of
 New  York  State to receive a supplemental military retirement allowance
 based upon the retirement allowance of such member and up to three years
 of military service credit. This supplemental benefit would be  in  lieu
 of any benefit otherwise provided by military service credit.  The annu-
 al  supplemental  military  retirement  allowance  shall be equal to 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  military service
 claimed. The surviving spouse of a deceased member who retired under  an
 option  which  provides them with a continuing lifetime benefit would be
 entitled to receive fifty percent of the supplemental  military  retire-
 ment  allowance  that  the  retired member would have received. A member
 must have retired prior to May 31, 2017 and make  application  no  later
 than  December  31,  2022.  This  benefit  is prospective only and shall
 commence on the next retirement allowance payable at least 30 days after
 the receipt of said application. There is no member cost for this  bene-
 fit.
   It is not possible to determine the total annual cost to the employers
 of  members  of the New York State Teachers' Retirement System since the
 number of retired members who would be  eligible  for  the  supplemental
 military  retirement  allowance  under  this  bill cannot be effectively
 estimated. However, the cost is estimated to be,  on  average,  approxi-
 mately  $12,400  for  each  retired  member  eligible for three years of
 supplemental military retirement allowance provided under this  bill  if
 enacted.
   Member  data  is  from  the  System's  most recent actuarial valuation
 files, consisting of data provided by the employers  to  the  Retirement
 System.   Data distributions and statistics can be found in the System's
 Annual Report. System assets are as reported in the  System's  financial
 statements and can also be found in the System's Annual Report. Actuari-
 al  assumptions and methods are provided in the System's Actuarial Valu-
 ation Report.
   The source of this estimate is Fiscal Note 2021-51 dated June 2,  2021
 prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
 System and is intended for use only during the 2021 Legislative Session.
 I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
 Retirement  System.  I  am a member of the American Academy of Actuaries
 and I meet the Qualification Standards of the American Academy of  Actu-
 aries to render the actuarial opinion contained herein.

co-Sponsors

View additional co-sponsors

2021-S5110B (ACTIVE) - Details

See Assembly Version of this Bill:: A6468
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§1000, 78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6820
2015-2016: S5065
2017-2018: S6505
2019-2020: S3968
2023-2024: S7529, A7821
2025-2026: S7115

2021-S5110B (ACTIVE) - Summary

Relates to supplemental military retirement allowances for members of public retirement systems of the state.

2021-S5110B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5110B

SPONSOR: BROOKS
 
TITLE OF BILL:

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

 
PURPOSE:

This bill intends to provide veterans who have retired from public
service in the state with a veterans pension benefit similar to that
which active veteran public employees are entitled to receive

 
SUMMARY OF PROVISIONS:

Section 1. Provide that a member of a public retirement system of the
State of New York who retired prior to May thirty-first, two thousand
seventeen may make application to the retirement system for a supple-
mental military allowance;

Section 2. Applies to persons who meet the eligibility requirements of
the veteran's service credit buy back law

Section 3. provides a supplemental military allowance equal to .25% for
each month of military service of such person, to a maximum of 36 months

Section 4. provides that the supplemental military allowance shall apply
to the first $15,000, prior to optional modification, of the retired
person

Section 5. requires the application for the supplemental military allow-
ance be made no later than December 31, 2019.

 
JUSTIFICATION:

The Veterans Service Credit Act of 2000 permitted active military public
employees who served in the military during specific military conflicts
to purchase up to three years retirement credit for that military
service. This was the first opportunity veterans had to include their
military service in their public retirement plan since 1976.

Many Korean veterans were not eligible for that 1976 buy back law.
Vietnam veterans were just entering public service at that time. In the
ensuing years, many of these veterans provided years of dedicated public
service and retired without the ability to add military credit to their
retirement. Current employees now have that ability. It is unfair to
ignore the service provided by veterans to our state and country now
that active employees can receive this benefit. This bill overcomes that
injustice by providing retired veterans with a comparable supplemental
military allowance.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately after it shall have become law.

2021-S5110B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5110--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 23, 2021
                                ___________
 
 Introduced by Sens. BROOKS, GALLIVAN, KAMINSKY, LANZA, REICHLIN-MELNICK,
   THOMAS, WEIK -- read twice and ordered printed, and when printed to be
   committed  to  the Committee on Civil Service and Pensions -- reported
   favorably from said  committee  and  committed  to  the  Committee  on
   Finance  --  committee  discharged, bill amended, ordered reprinted as
   amended and recommitted  to  said  committee  --  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 committee
 
 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
 SIXTEEN 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-THREE  FOR  A  SUPPLEMENTAL
 MILITARY RETIREMENT ALLOWANCE PURSUANT TO THIS SUBDIVISION.  THE SUPPLE-
 MENTAL  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 APPLICA-
 TION, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09719-10-2

 S. 5110--B                          2
 
 MODIFICATION AND NOT TO EXCEED FIFTEEN THOUSAND DOLLARS,  MULTIPLIED  BY
 TWENTY-FIVE ONE-HUNDREDTHS OF ONE PERCENT PER MONTH OF THE SERVICE CRED-
 IT  AS  DETERMINED  PURSUANT  TO  THIS SUBDIVISION.   ONE-TWELFTH OF THE
 SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL BE ADDED TO THE RETIRE-
 MENT  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. 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
 S. 5110--B                          3
 
 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:
   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, 2016,  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,  2023 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
 all  of  the  participating  employers  in  the New York State and Local
 Police and Fire Retirement System.
   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.
 S. 5110--B                          4
 
   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 30, 2022, and intended for use only during
 the 2022 Legislative Session, is Fiscal Note No. 2022-109,  prepared  by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
   This  bill would amend Section 1000 of the Retirement and Social Secu-
 rity Law by adding a new  subdivision  8-a  to  allow  eligible  retired
 members  of  public  retirement  systems  of New York State to receive a
 supplemental military retirement allowance  based  upon  the  retirement
 allowance of such member and up to three years of military service cred-
 it.  This supplemental benefit would be in lieu of any benefit otherwise
 provided by military service credit. The  annual  supplemental  military
 retirement  allowance shall be equal to the retirement allowance of such
 person, computed without optional modification and not to exceed fifteen
 thousand  dollars,  multiplied  by  twenty-five  one-hundredths  of  one
 percent per month of military service claimed. The surviving spouse of a
 deceased  member who retired under an option which provides a continuing
 lifetime benefit would be entitled  to  receive  fifty  percent  of  the
 supplemental military retirement allowance that the retired member would
 have received. A member must have retired prior to May 31, 2016 and make
 application no later than December 31, 2023. This benefit is prospective
 only  and  shall  commence  on  the next retirement allowance payable at
 least 30 days after the receipt of said application. There is no  member
 cost for this benefit.
   It is not possible to determine the total annual cost to the employers
 of  members  of the New York State Teachers' Retirement System since the
 number of retired members who would be  eligible  for  the  supplemental
 military  retirement  allowance  under  this  bill cannot be effectively
 estimated. However, the cost is estimated to be,  on  average,  approxi-
 mately  $12,100  for  each  retired member eligible for the supplemental
 military retirement allowance provided under this bill if enacted.
   Member data is from  the  System's  most  recent  actuarial  valuation
 files,  consisting  of  data provided by the employers to the Retirement
 System. Data distributions and statistics can be found in  the  System's
 Annual  Report.  System assets are as reported in the System's financial
 statements and can also be found in the System's Annual Report. Actuari-
 al assumptions and methods are provided in the System's Actuarial  Valu-
 ation Report and the 2021 Actuarial Assumptions Report.
   The  source  of  this  estimate is Fiscal Note 2022-12 dated March 29,
 2022 prepared by the Office of the Actuary of the New York State  Teach-
 ers'  Retirement  System  and  is  intended for use only during the 2022
 Legislative Session. I, Richard A.  Young, am the Chief Actuary for  the
 New York State Teachers' Retirement System.  I am a member of the Ameri-
 can  Academy  of Actuaries and I meet the Qualification Standards of the
 American Academy of Actuaries to render the actuarial opinion  contained
 herein.
   FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL: The proposed legislation would, among other things,
 amend Retirement and Social Security Law (RSSL) Section 1000 by adding a
 new subdivision 8-a to allow eligible retirees who retired from a public
 retirement system within the State prior to May 31, 2016, and who  would
 have  had  qualifying  military service had they been active members, to
 S. 5110--B                          5
 
 apply for  a  prospective  supplemental  military  retirement  allowance
 (Supplemental Retirement Allowance).
   For purposes of this Fiscal Note, the New York City Employees' Retire-
 ment  System  (NYCERS),  the  New  York City Teachers' Retirement System
 (TRS), the New York City Board of Education  Retirement  System  (BERS),
 the  New  York  City Police Pension Fund (POLICE), and the New York City
 Fire Pension Fund (FIRE) are collectively referenced as the NYCRS.
   With respect to the NYCRS, the  proposed  legislation  further  amends
 Administrative  Code  of  the City of New York (ACCNY) Section 13-696 to
 include Cost-of-Living Adjustment (COLA) increases  in  the  calculation
 and payment of such Supplemental Retirement Allowance.
   Effective Date: Upon enactment.
   BACKGROUND:  A  NYCRS retiree would be eligible to receive the Supple-
 mental Retirement Allowance (Eligible Recipient) if he or she:
   * Retired prior to May 31, 2016,
   * Was, due to a May 31, 2016 effective date, ineligible for Chapter 41
 of the Laws of 2016,
   * Would have otherwise met the current eligibility  criteria  of  RSSL
 Section 1000, and
   * Files an application for such benefit by December 31, 2023.
   The  Supplemental  Retirement  Allowance would be in lieu of any other
 retirement benefit provided for military service.
   For purposes of this Fiscal Note, it is assumed that the  Supplemental
 Retirement Allowance is provided without cost to Eligible Recipients.
   IMPACT ON BENEFITS PAYABLE: With respect to NYCRS Eligible Recipients,
 the  Supplemental  Retirement  Allowance would be payable as of the next
 retirement allowance payment following 30 days from filing  an  applica-
 tion for such benefit.
   The  Supplemental Retirement Allowance would be payable for the Eligi-
 ble Recipient's lifetime, and payable, at 50% of  the  Eligible  Recipi-
 ent's  Supplemental  Retirement  Allowance  rate, for the lifetime of an
 Eligible Recipient's surviving spouse who is eligible to receive a life-
 time retirement allowance benefit under an existing option election.
   The annual Supplemental Retirement Allowance would  be  equal  to  the
 retirement   allowance  of  the  Eligible  Recipient  (computed  without
 optional modification, without certain annuities derived from  voluntary
 contributions  and  not  to exceed $15,000) multiplied by 0.25% for each
 month of qualifying military service (not to exceed 36 months).   There-
 fore,  the  initial  maximum Supplemental Retirement Allowance would not
 exceed $1,350 per year (i.e., $15,000 x 0.25% x 36 months =  $1,350  per
 year),  and  would  thereafter be subject to the COLA provisions, to the
 extent the total retirement allowance including Supplemental  Retirement
 Allowance  is  less  than  $18,000  per  year, provided by ACCNY Section
 13-696.
   FINANCIAL IMPACT - OVERVIEW: The number of members  who  could  poten-
 tially  benefit from this proposed legislation cannot be determined. For
 illustrative purposes only,  the  table  below  presents  the  estimated
 financial  impact  assuming  that,  (1)  the percentage of retirees that
 would benefit is the same percentage  for  each  of  the  NYCRS  as  the
 percentage  of active members that have purchased military service under
 Chapter 41 of the Laws of 2016 as of June 30, 2021, (2) that each member
 purchased 2.5 years of military service, (3) that each retiree's pension
 is equal to or greater than $18,000 per year, and (4) that the  percent-
 age  of  those retirees who are receiving their pension in the form of a
 Joint and Survivor benefit is the same percentage  as  current  retirees
 for each of the NYCRS.
 S. 5110--B                          6
 
    ESTIMATED FINANCIAL IMPACT FOR PROVIDING A SUPPLEMENTAL RETIREMENT
                       ALLOWANCE TO CERTAIN RETIREES
 
                     NYCRS                    One-Time Increase
                                              in Employer Contributions
                                              ($ Millions)
                     NYCERS                   $ 7.4
                     TRS                      0.8
                     BERS                     0.2
                     POLICE                   23.4
                     FIRE                     3.5
                     Total                    $35.3 {1}
   {1} Any costs may be subject to State appropriation and reimbursement
 pursuant to RSSL Section 25.
 
   FINANCIAL  IMPACT  -  EMPLOYER  CONTRIBUTIONS:  In accordance with the
 ACCNY  Section  13-638.2(k-2),  new  Unfunded  Accrued  Liability  (UAL)
 attributable to benefit changes are to be amortized as determined by the
 Actuary  but are generally amortized over the remaining working lifetime
 of those impacted by the benefit changes. For this proposed legislation,
 since those who would benefit are retired, the entire  increase  in  UAL
 would  be  recognized  in  the first year that the increased pension was
 paid.
   CONTRIBUTION TIMING: Increased  pensions  for  the  affected  retirees
 would  commence on the next retirement allowance payable at least thirty
 days after receipt of an application from such person. For  purposes  of
 this  Fiscal  Note,  it  is  assumed  that  increased  pensions would be
 reflected in the census data used in the June 30, 2022  actuarial  valu-
 ations  of NYCRS.   Under the One-Year Lag Methodology, the first fiscal
 year in which these changes in benefits would impact  employer  contrib-
 utions would be Fiscal Year 2024.
   However,  since  Eligible  Recipients  have until December 31, 2023 to
 file an application for the additional  service  credit,  the  increased
 contributions  would  likely  be  spread  out over Fiscal Years 2025 and
 2026.
   ACTUARIAL ASSUMPTIONS AND METHODS:  In  addition  to  the  assumptions
 described  in the Financial Impact - Overview section above, the changes
 in employer contributions presented herein have been calculated based on
 the same actuarial assumptions and methods in effect for  the  June  30,
 2021  (Lag) actuarial valuation used to determine the Preliminary Fiscal
 Year 2023 employer contributions of NYCRS.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on the realization of the actuarial assumptions used, as well as
 certain demographic characteristics of NYCRS and other exogenous factors
 such as investment, contribution, and other risks. If actual  experience
 deviates  from actuarial assumptions, the actual costs could differ from
 those presented herein. Costs are also dependent on the actuarial  meth-
 ods  used,  and  therefore  different  actuarial  methods  could produce
 different results. Quantifying these risks is beyond the scope  of  this
 Fiscal Note.
   Not measured in this Fiscal Note are the following:
   *  The  initial,  additional  administrative  costs  to  implement the
 proposed legislation.
   * The impact of this  proposed  legislation  on  Other  Postemployment
 Benefit (OPEB) costs.
 S. 5110--B                          7
 
   STATEMENT  OF  ACTUARIAL  OPINION: I, Michael J. Samet, am the Interim
 Chief Actuary for, and independent of,  the  New  York  City  Retirement
 Systems and Pension Funds. I am a Fellow of the Society of Actuaries and
 a  Member of the American Academy of Actuaries. I meet the Qualification
 Standards  of  the American Academy of Actuaries to render the actuarial
 opinion contained herein. To the  best  of  my  knowledge,  the  results
 contained  herein  have  been  prepared  in  accordance  with  generally
 accepted actuarial principles and  procedures  and  with  the  Actuarial
 Standards of Practice issued by the Actuarial Standards Board.
   FISCAL  NOTE  IDENTIFICATION: This Fiscal Note 2022-21 dated April 13,
 2022, was prepared by the Interim Chief Actuary for the  New  York  City
 Employees'  Retirement  System,  the  New York City Teachers' Retirement
 System, the New York City Board of Education Retirement System, the  New
 York  City Police Pension Fund, and the New York City Fire Pension Fund.
 This estimate is intended for  use  only  during  the  2022  Legislative
 Session.

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Senate Bill S5110B

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Sponsored By

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Bill Amendments

co-Sponsors

2021-S5110 - Details

2021-S5110 - Summary

2021-S5110 - Sponsor Memo

2021-S5110 - Bill Text download pdf

co-Sponsors

2021-S5110A - Details

2021-S5110A - Summary

2021-S5110A - Sponsor Memo

2021-S5110A - Bill Text download pdf

co-Sponsors

2021-S5110B (ACTIVE) - Details

2021-S5110B (ACTIVE) - Summary

2021-S5110B (ACTIVE) - Sponsor Memo

2021-S5110B (ACTIVE) - Bill Text download pdf

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