Senate Bill S8692

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8692
 
                             I N  S E N A T E
 
                              March 30, 2022
                                ___________
 
 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
   establishing  a  retirement service credit for volunteer fire or emer-
   gency service
 
   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 20-A to read as follows:
                               ARTICLE 20-A
       CREDIT FOR NEW YORK STATE VOLUNTEER FIRE OR EMERGENCY SERVICE
 SECTION 1050. NEW YORK STATE VOLUNTEER FIRE OR EMERGENCY SERVICE CREDIT.
   §  1050. NEW YORK STATE VOLUNTEER FIRE OR EMERGENCY SERVICE CREDIT. 1.
 FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   (A) "PUBLIC RETIREMENT SYSTEM OF THE STATE" SHALL HAVE THE SAME  MEAN-
 ING  AS  SUCH  TERM  IS  DEFINED PURSUANT TO SUBDIVISION TWENTY-THREE OF
 SECTION FIVE HUNDRED ONE OF THIS CHAPTER.
   (B) "MEMBER" SHALL MEAN A MEMBER OF A PUBLIC RETIREMENT SYSTEM OF  THE
 STATE.
   2. NOTWITHSTANDING ANY LAW TO THE CONTRARY, A MEMBER SHALL BE ELIGIBLE
 FOR  CREDIT FOR VOLUNTEER FIRE OR EMERGENCY SERVICE AS PROVIDED PURSUANT
 TO THIS SECTION.
   3. A MEMBER, UPON APPLICATION TO A PUBLIC  RETIREMENT  SYSTEM  OF  THE
 STATE,  MAY  OBTAIN  ONE  YEAR OF SERVICE CREDIT FOR EVERY FIVE YEARS OF
 VOLUNTEER FIRE OR EMERGENCY SERVICE PROVIDED  IN  THE  STATE.  A  MEMBER
 SHALL  BE LIMITED UNDER THIS SECTION TO OBTAIN NOT MORE THAN THREE YEARS
 OF SERVICE CREDIT FOR A TOTAL OF FIFTEEN  YEARS  OF  VOLUNTEER  FIRE  OR
 EMERGENCY  SERVICE  PROVIDED.    PROOF  OF  VOLUNTEER  FIRE OR EMERGENCY
 SERVICE SHALL BE CERTIFIED BY THE VOLUNTEER AGENCY FOR WHICH SUCH MEMBER
 VOLUNTEERED HIS OR HER TIME.
   4. A MEMBER SHALL HAVE AT LEAST FIVE YEARS OF  CREDITED  SERVICE,  NOT
 INCLUDING  SERVICE  GRANTED  HEREUNDER, TO BE ELIGIBLE TO RECEIVE CREDIT
 PURSUANT TO THIS SECTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13482-05-2
 S. 8692                             2
 
   5. TO OBTAIN CREDIT PURSUANT TO THIS SECTION, A MEMBER SHALL  PAY  THE
 APPROPRIATE  RETIREMENT  SYSTEM, FOR DEPOSIT IN THE FUND USED TO ACCUMU-
 LATE EMPLOYER CONTRIBUTIONS, A SUM EQUAL TO THE PRODUCT OF THE NUMBER OF
 YEARS OF VOLUNTEER FIRE OR EMERGENCY SERVICE  BEING  CLAIMED  AND  THREE
 PERCENT OF SUCH MEMBER'S COMPENSATION EARNED DURING THE TWELVE MONTHS OF
 CREDITED  SERVICE  IMMEDIATELY  PRECEDING THE DATE THAT SUCH MEMBER MADE
 APPLICATION FOR CREDIT PURSUANT TO THIS SECTION. IF PERMITTED BY RULE OR
 REGULATION OF THE APPLICABLE RETIREMENT SYSTEM, A MEMBER  MAY  PAY  SUCH
 MEMBER  COSTS  BY  PAYROLL DEDUCTION FOR A PERIOD WHICH SHALL NOT EXCEED
 THE TIME PERIOD OF VOLUNTEER FIRE OR EMERGENCY SERVICE  TO  BE  CREDITED
 PURSUANT  TO  THIS SECTION. IN THE EVENT SUCH MEMBER LEAVES THE EMPLOYER
 PAYROLL PRIOR TO COMPLETION OF PAYMENT, HE  OR  SHE  SHALL  FORWARD  ALL
 REMAINING  REQUIRED  PAYMENTS TO THE APPROPRIATE RETIREMENT SYSTEM PRIOR
 TO THE EFFECTIVE DATE OF RETIREMENT. IF THE FULL AMOUNT OF  SUCH  MEMBER
 COSTS  IS  NOT  PAID  TO  THE APPROPRIATE RETIREMENT SYSTEM PRIOR TO THE
 MEMBER'S RETIREMENT, THE AMOUNT OF SERVICE  CREDITED  SHALL  BE  PROPOR-
 TIONAL TO THE TOTAL AMOUNT OF THE PAYMENTS MADE PRIOR TO RETIREMENT.
   6. IN NO EVENT SHALL THE CREDIT GRANTED PURSUANT TO THIS SECTION, WHEN
 ADDED TO CREDIT GRANTED FOR VOLUNTEER FIRE OR EMERGENCY SERVICE WITH ANY
 RETIREMENT  SYSTEM OF THIS STATE PURSUANT TO ANY OTHER PROVISION OF LAW,
 EXCEED A TOTAL OF THREE YEARS.
   7. TO BE ELIGIBLE TO RECEIVE CREDIT FOR VOLUNTEER  FIRE  OR  EMERGENCY
 SERVICE  UNDER  THIS  SECTION,  A MEMBER SHALL MAKE APPLICATION FOR SUCH
 CREDIT BEFORE THE EFFECTIVE DATE OF RETIREMENT.
   8. ALL COSTS FOR  SERVICE  CREDITED  TO  A  MEMBER  PURSUANT  TO  THIS
 SECTION,  OTHER  THAN  THE MEMBER COSTS SET FORTH IN SUBDIVISION FIVE OF
 THIS SECTION, SHALL BE PAID BY THE STATE AND ALL EMPLOYERS WHICH PARTIC-
 IPATE IN THE RETIREMENT SYSTEM IN WHICH SUCH MEMBER IS GRANTED CREDIT.
   9. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IN THE EVENT  OF  DEATH
 PRIOR TO RETIREMENT, AMOUNTS PAID BY A MEMBER FOR THE PURCHASE OF VOLUN-
 TEER  FIRE OR EMERGENCY SERVICE CREDIT PURSUANT TO THIS SECTION SHALL BE
 REFUNDED, WITH INTEREST, TO THE EXTENT THE VOLUNTEER FIRE  OR  EMERGENCY
 SERVICE  PURCHASED  WITH  SUCH  AMOUNTS DOES NOT PRODUCE A GREATER DEATH
 BENEFIT THAN WOULD HAVE BEEN PAYABLE HAD SUCH MEMBER NOT PURCHASED  SUCH
 CREDIT.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would allow members of any New York State retirement system
 to purchase service credit for time rendered in volunteer fire or  emer-
 gency  service. A member may obtain one year of service credit for every
 five years of volunteer fire or emergency service, not to  exceed  three
 years of total credit.  Members must have at least five years of credit-
 ed  service (not including volunteer service). Members would be required
 to make a payment of three percent of their most recent compensation per
 year of additional service credit granted by this bill.  Service  credit
 would  be  creditable  on  regular  age-based  and special service-based
 plans. Members may not be credited more than one year  for  all  service
 obtained in a calendar year.
   This  bill would not be consistent with the Retirement System's policy
 that service credit may only be granted for service for which  a  salary
 has been paid.
   If this bill is enacted, insofar as this proposal affects the New York
 State  and Local Employees' Retirement System (NYSLERS), it is estimated
 that the past service cost will be 18% of an affected  member's  compen-
 sation  for  each  year  of  service  credit  that is purchased. For the
 S. 8692                             3
 
 NYSLERS, this cost would be shared by the State  of  New  York  and  the
 participating employers in the NYSLERS.
   Insofar  as  this proposal affects the New York State and Local Police
 and Fire Retirement System (NYSLPFRS), it is  estimated  that  the  past
 service  cost  will be 22% of an affected member's compensation for each
 year of service credit that is purchased. For the  NYSLPFRS,  this  cost
 would be shared by the State of New York and the participating employers
 in the NYSLPFRS.
   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:
   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 2, 2022, and intended for use only during
 the 2022 Legislative Session, is Fiscal Note No. 2022-5, prepared by the
 Actuary for the New York State and Local Retirement System.