Senate Bill S6265

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6265
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 19, 2021
                                ___________
 
 Introduced  by Sen. GALLIVAN -- 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
   providing   equal  retirement  benefits  for  persons  who  have  been
   appointed to the title of correction lieutenant,  correction  captain,
   deputy assistant superintendent or superintendent in the department of
   corrections and community supervision
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Clause (ii) of subparagraph (b) of paragraph 2 of  subdivi-
 sion  a  of  section  600  of the retirement and social security law, as
 amended by section 149 of subpart B of part C of chapter 62 of the  laws
 of 2011, is amended and two new clauses (iii) and (iv) are added to read
 as follows:
   (ii)  a  person  who serves in the title of superintendent as of April
 first, two thousand six, who has had at least  seven  years  of  service
 credited toward the retirement plan established pursuant to this article
 while  employed  by  the  department of corrections and community super-
 vision and who elects the retirement plan established pursuant  to  this
 article  on  or  before  September  thirtieth,  two  thousand  six. Such
 election shall be in writing, shall be duly executed and filed with  the
 comptroller  and  shall  be irrevocable as long as such person is in the
 title of superintendent[.]; OR
   (III) A PERSON WHO IS APPOINTED TO THE TITLE OF CORRECTION LIEUTENANT,
 CORRECTION CAPTAIN, DEPUTY ASSISTANT SUPERINTENDENT OR SUPERINTENDENT IN
 INSTITUTIONS UNDER THE JURISDICTION OF THE DEPARTMENT OF CORRECTIONS AND
 COMMUNITY SUPERVISION AND WHO ELECTS  THE  RETIREMENT  PLAN  ESTABLISHED
 PURSUANT  TO  THIS ARTICLE WITHIN NINETY DAYS OF HIS OR HER APPOINTMENT.
 SUCH ELECTION SHALL BE IN WRITING, SHALL BE DULY EXECUTED AND FILED WITH
 THE COMPTROLLER AND SHALL BE IRREVOCABLE AS LONG AS SUCH  PERSON  IS  IN
 THE TITLE OF CORRECTION LIEUTENANT, CORRECTION CAPTAIN, DEPUTY ASSISTANT
 SUPERINTENDENT OR SUPERINTENDENT; OR
   (IV)  A  PERSON  WHO  SERVES  IN  THE  TITLE OF CORRECTION LIEUTENANT,
 CORRECTION CAPTAIN, DEPUTY ASSISTANT SUPERINTENDENT OR SUPERINTENDENT ON
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10528-02-1

 S. 6265                             2
 
 THE EFFECTIVE DATE OF THIS CLAUSE AND WHO  ELECTS  THE  RETIREMENT  PLAN
 ESTABLISHED PURSUANT TO THIS ARTICLE WITHIN NINETY DAYS OF THE EFFECTIVE
 DATE  OF  THIS  CLAUSE. SUCH ELECTION SHALL BE IN WRITING, SHALL BE DULY
 EXECUTED AND FILED WITH THE COMPTROLLER AND SHALL BE IRREVOCABLE AS LONG
 AS  SUCH  PERSON  IS  IN  THE TITLE OF CORRECTION LIEUTENANT, CORRECTION
 CAPTAIN, DEPUTY ASSISTANT SUPERINTENDENT OR SUPERINTENDENT.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow certain Tier 3, 5 and 6 correction  lieutenants,
 correction  captains,  deputy  assistant superintendents and superinten-
 dents under the jurisdiction of the department of corrections and commu-
 nity supervision of New York State to become eligible to  receive  bene-
 fits  under  the  provisions  of Article 15 of the Retirement and Social
 Security Law instead of the special plan giving  50%  of  final  average
 salary  at 25 years of service. Affected members would have 90 days from
 the later of the effective date of this bill and  their  date  of  being
 appointed  to one of the aforementioned titles to file for this benefit.
 Such elections shall be irrevocable.   Current law  only  allows  super-
 intendents  with at least seven years in such title to become covered by
 the provisions of Article 15.
   If this bill is enacted during the  2021  legislative  session,  there
 will  be  an  immediate past service cost for members currently in these
 titles of approximately $32.2 million, which would be borne by the State
 of New York as a one-time payment. This estimate is based on the assump-
 tion that payment will be made on March 1, 2022.
   In addition to this cost, there would also be future costs for members
 who are appointed to these titles and become eligible for this  improved
 benefit  in  the  future.  These costs would depend on the age, service,
 salary and tier of the affected members, and would be paid by the  State
 of New York as one-time payments as they occur.
   The  past service cost is based on 566 affected members employed, with
 annual salary of approximately $61 million as of March 31, 2020  identi-
 fied using job title code.
   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 April 13, 2021, and intended for use only  during
 the  2021  Legislative Session, is Fiscal Note No. 2021-112, prepared by
 the Actuary for the New York State and Local Retirement System.