Senate Bill S6977

                                
 
BILL NUMBER: S6977

SPONSOR: SERINO
 
TITLE OF BILL:

An act authorizing Joseph Murphy to receive a refund for military
service credit purchased in the New York state and local employees'
retirement system

 
PURPOSE:

To allow Joseph Murphy to receive a refund for military service credit
purchased in the New York state and local employees' retirement system

 
SUMMARY OF PROVISIONS:

Section 1: Provides that notwithstanding the provisions of section 1000
of the retirement and social security law, Joseph Murray shall be
authorized to receive a refund of $18,518.73 from the purchase of three
years of military service credit.

              

Section 2: Provides the effective date.

 
JUSTIFICATION:

Mr. Murphy began employment by the New York State Department of
Corrections and Community Supervision on August 5, 2013 as a pharmacist
at Ulster Correction Facility, and approximately five years later paid
$18,518.73 of service credit based on military service. After resigning
from his position a year before becoming vested, the New York State and
Local Retirement System transferred monies into his IRA account, however
this amount only included bi-weekly contributions deducted from his
paycheck for retirement and did not include the amount he paid for
service credit.

After discussing the matter with New York State and Local Retirement
System employees, he was informed that under Article 20 of the Retire-
ment and Social Security Law, his credit funds are considered allocated
funds and cannot be returned to him. However, under Section 1000 of
Article 20 of the Retirement and Social Security Law, it seems clear
that consideration was made to ensure opting to purchase the military
service credit did not negatively impact an individual's retirement, as
subdivision 8 provides for a refund with interest for those who
purchased the credit but had a lower retirement allowance as a result.

This legislation will ensure Mr. Murphy receives a full refund of the
money he paid for his military service credit, in line with the intent
of Section 1000 of Article 20 of the Retirement and Social Security Law.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

A $18,518.73 refund from the New York state land local employees'
retirement system

 
EFFECTIVE DATE:
This act shall take effect immediately.