BILL NUMBER: S9037

SPONSOR: BROOKS
 
TITLE OF BILL:

An act to amend the civil service law, in relation to state health
insurance benefits for veterans

1 
PURPOSE:

This bill would amend Civil Service Law section 163 to allow veterans
who have purchased military service credit in the New York State and
Local Retirement System (NYSLRS) to attribute this credit to the New
York State Health Insurance Plan (NYSHIP) service credit.

2. 
SUMMARY OF PROVISIONS:

Section 1 of the bill would create CSL section 163(9)(a) to allow
retired State employees who do not have the requisite years of State
Service to maintain NYSHIP enrollment during retirement, if they have
purchased military service credit pursuant to article twenty of the
retirement and social security law, and the sum of the employee's years
              

of service and purchased military service credit is equal to or exceeds
the years of service required to continue in the health benefit plan in
retirement. Retired state employees who become eligible for enrollment
based on the provision of this section can enroll in the health plan
prospectively, but are not entitled to retroactive coverage.

Section 2 of the bill of the bill would create CSL section 163(9)(b) to
allow participating employers in the health benefit plan to elect to
allow retired employees who do not have the required years of service to
continue in the health benefit plan, if such employees have purchased
military service credit pursuant to article twenty of retirement and
social security law and the sum of the employee's years of service and
purchased military service credit is equal to or exceeds the years of
service required to continue in the health benefit plan in retirement.

Section 3 of the bill provides that the bill shall take effect imme-
diately.

3. 
EXISTING LAW:

New York Retirement and Social Security Law Article 20 authorizes
employees to purchase up to three years of military service credit in
the NYSLRS. When this service is purchased, these years are factored in
as years of service when determining the employee's pension benefit.To
purchase this service employees must pay 3 or 6 percent of their salary
for each year of service. Presently, this purchased retirement service
credit does not apply to NYSHIP years of service for determining NYSHIP
eligibility in retirement.

4. 
LEGISLATIVE HISTORY:

This is a new proposal.

5. 
STATEMENT IN SUPPORT:

This proposal would create parity between NYSLRS and NYSHIP in their
respective benefits for veterans who wish to purchase military service
credit. Under the current system, an individual who has purchased mili-
tary service credit in the NYSLRS may be ineligible to receive NYSHIP in
retirement due to a failure to meet the minimum service thresholds at
their respective agency. This proposal would eliminate this discrepancy
and resolve significant confusion that can occur when a veteran with
purchased military service credit discovers they are ineligible for
NYSHIP due to insufficient years of service at their agency.

There have been instances where individuals have been less than three
months away from the requisite number of years (ten for State employees)
for continued enrolment in NYSHIP, while having over twelve years of
service in NYSLRS due to purchased military service credit. Based on the
current statutory restrictions, these Veterans are unable to receive
NYSHIP benefits in retirement. This proposal would correct this issue
and provide an essential benefit to the eligible impacted Veterans.

 
BUDGET IMPLICATIONS:

This bill would likely only affect a handful of individuals annually.
However, the impact the bill would have on the impacted veterans' lives
in retirement would be significant.

7. 
LOCAL IMPACT:

Any local impact would be at the discretion of the participating employ-
ers who elect to provide the benefit.