The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5087
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 10, 2021
                                ___________
 
 Introduced  by  M. of A. ABINANTI, PAULIN, GRIFFIN, STECK, WALKER, DICK-
   ENS, TAGUE, SANTABARBARA, McDONOUGH, COLTON, RAMOS,  TAYLOR,  DARLING,
   THIELE,  GUNTHER,  McMAHON, REYES, LUPARDO, DeSTEFANO, BRABENEC, MIKU-
   LIN, BARRON, ZEBROWSKI, ENGLEBRIGHT, REILLY -- read once and  referred
   to the Committee on Governmental Employees

 AN  ACT  to  provide a temporary retirement incentive for certain public
   employees (Part A); and  to  provide  an  age  55/25  years  temporary
   retirement incentive for certain public employees (Part B)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law  components  of  legislation  that
 would  enable public employers to offer a temporary retirement incentive
 to their employees, as well as to provide an age 55/25  years  temporary
 incentive  for  certain  public  employees.  Each  component  is  wholly
 contained within a Part identified as Parts A and B. The effective  date
 for each particular provision contained within such Part is set forth in
 the  last  section  of such part. Any provision in any section contained
 within a Part, including the effective date of  the  Part,  which  makes
 reference  to a section "of this act", when used in connection with that
 particular component, shall be deemed to mean and refer  to  the  corre-
 sponding  section  of the Part in which it is found, unless noted other-
 wise. The benefits of this act shall not be  applicable  to  anyone  who
 first  became  a member of a public retirement system of the state on or
 after January first, two thousand ten.
   § 2. Legislative findings. The legislature finds and declares that the
 retirement benefits provided for in this act  are  designed  to  achieve
 cost-savings for public employers and to avoid layoffs of public employ-
 ees  in  this  time  of fiscal need. Therefore, the retirement incentive
 benefit provided for in Part A of this  act  and  the  age  55/25  years
 retirement  benefit provided for in Part B of this act are intended only
 to be temporary in nature for employees who are eligible to receive  and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03658-03-1

 A. 5087                             2
 
 qualify  for  the  applicable benefit during the applicable time periods
 specified within each Part.  Further,  nothing  in  this  act  shall  be
 construed  to create an expectation of a future or continuing retirement
 benefit for any public employee who is not eligible to receive and qual-
 ify  for  the retirement benefits in this act during the applicable time
 periods.
 
                                  PART A

   Section 1. Definitions. As used in this act, unless the context clear-
 ly requires otherwise:
   a. "Retirement system" means the New York state and  local  employees'
 retirement  system,  the New York state teachers' retirement system, the
 New York city teachers' retirement system, the New York  city  board  of
 education  retirement  system or the New York city employees' retirement
 system, exclusive  of  the  retirement  plans  established  pursuant  to
 sections 13-156 and 13-157 of the administrative code of the city of New
 York.
   b.  "Teachers'  retirement  system" means the New York state teachers'
 retirement system or the New York city teachers' retirement system.
   c. "Optional retirement program" means the programs established pursu-
 ant to the provisions of section 181, 391 or 6251 of the education  law;
 or continued pursuant to section 3 of chapter 980 of the laws of 1962.
   d.  "State  employer" means (a) the executive branch of the state, (b)
 the state-operated institutions of the state university of New York, (c)
 the statutory and contract colleges operated pursuant to section 357  of
 the  education  law, (d) the state university construction fund (herein-
 after referred to in this act as the "fund"), (e) a  cooperative  exten-
 sion  association  (hereinafter  referred to in this act as the "associ-
 ation"), (f) the city university of New York as defined in subdivision 2
 of section 6202 of the education law, (g) the unified court system,  (h)
 the senate, (i) the assembly, and (j) joint legislative employers.
   e.  (a) "Participating employer" means an employer, other than a state
 employer, which participates in a retirement  system;  such  term  shall
 include  a  community  college  operating under the program of the state
 university of New York.
   (b) "Educational employer" means a participating employer which  is  a
 school  district,  a  board of cooperative educational services, a voca-
 tional education and extension board, an institution for the instruction
 of the deaf and of the blind as enumerated in section 4201 of the educa-
 tion law, or a school district as enumerated in section 1 of chapter 566
 of the laws of 1967, as amended.
   f. "Eligible employee" means a person who is a member of a  retirement
 system  or  a  participant  in  an optional retirement program who is an
 employee in the executive branch of a state employer or an employee of a
 state employer or a participating employer which makes an election under
 this section or section four of  this  act,  but  such  term  shall  not
 include the following persons:
   (a) elected officials, judges or justices appointed to or serving in a
 court of record and acting village justices;
   (b)  chief  administrative  officers  of participating employers which
 participate in a teachers' retirement system;
   (c) officers described in sections 4, 41-a,  46,  61,  70,  70-a,  169
 (including those officers whose salary is established pursuant to salary
 plans  under  subdivision  3  of  section 169), 180 and subdivision 1 of

 A. 5087                             3
 
 section 41 of the executive  law  and  any  agency  or  department  head
 appointed by the governor, comptroller or attorney general;
   (d)  appointed  members  of boards or commissions any of whose members
 are appointed by the governor or by another state officer or body;
   (e) nonjudicial officers and employees of  the  unified  court  system
 unless  the chief administrator of the courts elects as provided herein,
 which election shall cover only nonjudicial officers and employees hold-
 ing positions in any title in the  classified  service  of  the  unified
 court system;
   (f)  officers  or  employees  of the senate unless the senate adopts a
 resolution authorizing the temporary president to file the  election  as
 provided in this subdivision;
   (g) officers or employees of the assembly unless the assembly adopts a
 resolution  authorizing the speaker of the assembly to file the election
 as provided in this subdivision; and
   (h) officers or employees of joint legislative employers unless:
   (i) with respect to officers or employees of the legislative  library,
 legislative  messenger  service, legislative health service, legislative
 ethics commission, the legislative bill  drafting  commission,  and  the
 joint  line  of  the  legislative task force on demographic research and
 reapportionment, the senate and assembly adopt a  concurrent  resolution
 authorizing the temporary president of the senate and the speaker of the
 assembly to jointly file an election as provided in this subdivision;
   (ii) with respect to officers or employees of components of the senate
 as  identified pursuant to section 90 of the legislative law, the senate
 adopts a resolution authorizing  the  temporary  president  to  file  an
 election  for  officers  or  employees of those components designated in
 such resolution; and
   (iii) with respect to officers  or  employees  of  components  of  the
 assembly  as  identified  pursuant to section 90 of the legislative law,
 the assembly adopts a resolution authorizing the speaker of the assembly
 to file an election for officers or employees of those components desig-
 nated in such resolution.
   Any election under paragraphs (e) through (h) of this  subdivision  to
 make  available  the  retirement  incentive program provided by this act
 shall be in writing and filed with the state comptroller not later  than
 ninety  days  after  the effective date of this act. Notwithstanding any
 other provision  of  this  act,  each  such  filing  shall  specify  the
 commencement date and the length of the open period. Only one open peri-
 od  shall  be  made  available  for employees covered by elections under
 paragraphs (e) through (h) of this subdivision.
   For the purposes of such paragraphs (f), (g) or (h) of  this  subdivi-
 sion, an employee of the legislature shall be as such term is defined in
 section 7-a, 7-b or 7-d of the legislative law or by any other provision
 of law which classifies employees of an entity to be legislative employ-
 ees  for  all purposes, but shall not include senators or members of the
 assembly. The term "joint legislative employer" shall  mean  legislative
 commissions,  committees,  task forces, councils or similar bodies whose
 membership is comprised of both senators and assembly members, or  which
 consist  of  commissioners,  or  the  majority  of  whose  membership is
 appointed by one or more of the following: the  temporary  president  of
 the  senate,  the  speaker  of  the assembly, the minority leader of the
 senate, and/or the minority leader of the assembly. The temporary presi-
 dent of the senate and the speaker of the assembly shall  be  the  joint
 legislative  employer of the employees of the legislature referred to in
 sections 7-a and 7-b of the legislative law.

 A. 5087                             4
 
   g. "Eligible title" means any title where a certain  number  of  posi-
 tions  in that title, as identified by agency, department, work location
 or appointing authority, college or campus, as the case  may  be,  would
 otherwise  be identified for layoff but for this act because of economy,
 consolidation  or  abolition  of functions, curtailment of activities or
 otherwise. However, an eligible title can also include a title as  iden-
 tified  by  agency, department, work location or appointing authority in
 which positions would not be eliminated  but  into  which  employees  in
 titles  affected  by layoff can be transferred or reassigned pursuant to
 the civil service law, rule or regulation. The determination of eligible
 titles shall be made by: (a) the appointing authority,  subject  to  the
 approval of the director of state operations for titles within the exec-
 utive  branch,  (b)  the  board  of  trustees  for  the state university
 (including the association) subject to the approval of the  director  of
 state  operations, the fund, the city university of New York and of each
 community college operating under the program of the  state  university,
 (c)  the person or persons who elect under paragraphs (e) through (h) of
 subdivision f of this section to offer the retirement incentive provided
 by this act, and (d) the chief executive  officer  or  other  comparable
 official for participating employers other than the community colleges.
   h. "College faculty" means an employee, not in the classified service,
 of  a  state employer described in paragraphs (b), (c), (d), (e) and (f)
 of subdivision d of this section or of a  community  college  who  is  a
 member  of  a  teachers' retirement system, the New York state and local
 employees' retirement system or a participant in an optional  retirement
 program.
   i.  "Active  service"  means  service while being paid on the payroll,
 provided that (a) a leave of absence with pay  shall  be  deemed  active
 service; (b) other approved leave without pay not to exceed twelve weeks
 from  February 1, 2021 and the commencement of the designated open peri-
 od; and (c) the period of time subsequent to the June 2021  school  term
 and  on  or  before  August  31,  2021  for a teacher (or other employee
 employed on a school-year basis) who is otherwise in active  service  on
 February 1, 2021 shall be deemed active service.
   j. "Open period" means the period beginning with the commencement date
 as  defined  in subdivision k of this section and shall not be more than
 ninety days nor less than thirty days in length,  as  specified  by  the
 director  of state operations or by a participating employer pursuant to
 section four of this act, by the appropriate board of trustees  for  the
 state university (including the association), the fund, the city univer-
 sity of New York or a community college operating under a program of the
 state  university  or  by  a state employer described in paragraphs (g),
 (h), (i) and (j) of subdivision d of this section; provided however that
 any such period shall not extend beyond September 30, 2021 for the exec-
 utive branch of a state employer described in paragraphs (a) and (b)  of
 subdivision  d  of this section (except for college faculty), not beyond
 December 31, 2021 for participating employers,  college  faculty  for  a
 state  employer  described  in  paragraph  (b)  of subdivision d of this
 section, state employers described in paragraphs (c),  (d)  and  (e)  of
 subdivision  d  of this section, not beyond January 31, 2022 for college
 faculty of an employer described in paragraph (f) of  subdivision  d  of
 this  section, and not beyond August 31, 2021 for educational employers.
 For the purposes of retirement pursuant to this act, a  service  retire-
 ment  application  must  be filed with the appropriate retirement system
 not less than fourteen days prior to the effective date of retirement to

 A. 5087                             5
 
 become effective, unless a shorter period of  time  is  permitted  under
 law.
   k.  "Commencement  date"  means the first day the retirement incentive
 authorized by this act shall be made available, which shall mean a  date
 on  or  after  the  effective  date  of this act to be determined by the
 director of state operations for the executive branch of the state,  and
 which  date  shall  occur no later than thirty days before September 30,
 2021 or for any participating employer a date on or after the  effective
 date  of  this act. For any other state employer, such term shall mean a
 date on or after the effective date of this act and shall occur no later
 than thirty days before September 30, 2021.  The director of state oper-
 ations shall notify the head of the appropriate retirement system of the
 date of each open period applicable to employees of the executive branch
 or of a state employer prior to the commencement date.
   § 2. The determination of whether a title shall be considered eligible
 shall consider whether the reduction of a specific number  of  positions
 within a title would unacceptably:
   a.  Directly result in a reduction of the level of service required or
 mandated to protect and care for clients of the state or a participating
 employer or to assure public health and safety;
   b. Endanger the health or safety  of  employees  of  the  state  or  a
 participating employer; or
   c.  Clearly  result in a loss of significant revenue to the state or a
 participating employer or result in substantially increased overtime  or
 contractual  costs.  However,  upon the determination of the director of
 state operations, with respect to employees of the executive branch of a
 state employer, any titles may be determined eligible if  the  vacancies
 created  can  be  controlled  by  the  use  of  transfer or reassignment
 provisions of the civil service  law,  rules  or  regulations  or  other
 deployment of state employees.
   § 3. a. Eligibility for inclusion in the retirement incentive provided
 by  section  six  of this act shall be determined: (a) by seniority: for
 participating employers and for state employers described in  paragraphs
 (a),  (b), (c), (d), (e) and (f) of subdivision d of section one of this
 act, other than for college faculty; seniority shall mean  the  date  of
 original  permanent  appointment  in  the  civil  service  of  the state
 adjusted to include veteran's credits for those entitled to receive such
 credits pursuant to sections 80, 80-a and  85,  if  applicable,  of  the
 civil service law, as established in the official records of the depart-
 ment  of  civil service, regardless of the jurisdictional classification
 of the position or the status of the incumbent;  (b)  by  seniority,  as
 applicable  for  the  unified  court  system;  (c)  for  state employers
 described in paragraphs (h), (i) and (j) of subdivision d of section one
 of this act as determined by the person or persons who make the election
 to offer the retirement incentive; and (d) for college faculty,  by  the
 board  of  trustees of the state university, city university and of each
 community college operating under the program of the state university.
   b. All eligible employees serving in eligible titles desiring to avail
 themselves of the retirement incentive provided by section six  of  this
 act shall provide written notice to his or her employer on or before the
 twenty-first day preceding the end of the open period, or before the end
 of  the  applicable open period as such open period is determined by the
 director of state operations. Failure to  provide  such  written  notice
 shall  render  the  employee  ineligible  for  the  retirement incentive
 provided by this act.

 A. 5087                             6
 
   § 4. a. On or before August 31, 2021, a participating  employer  or  a
 state  employer  described  in  paragraphs (b), (c), (d), (e) and (f) of
 subdivision d of section one of  this  act  may  elect  to  provide  its
 employees  the  retirement  incentive  authorized by this act by (a) the
 enactment  of a local law or (b) in the case of a participating employer
 which is not so empowered to act  by  local  law  or  a  state  employer
 described  in  paragraphs (b), (c), (d), (e) and (f) of subdivision d of
 section one of this act, by the adoption of a resolution of its  govern-
 ing  body; provided however, no local law or resolution enacted pursuant
 to this section  shall  in  any  manner  supersede  any  local  charter,
 provided further, that for an educational employer such election must be
 made  by  July  30,  2021. The local law or resolution shall specify the
 commencement date of the program and the length of the open period.  For
 a  community  college operating under the program of state university of
 New York, such election shall be made by the board of trustees  of  such
 community college subject to the approval of its sponsor. A copy of such
 law  or resolution shall be filed with the appropriate retirement system
 or systems, and, if applicable, on forms provided by  such  system.  The
 local  law  or  resolution  shall be accompanied by the affidavit of the
 chief executive officer or other comparable official certifying  to  the
 information contained in subdivision b of this section.
   b.  Notwithstanding  any other provision of law, the benefits provided
 by this act shall not be made  available  to  any  person  who  (a)  has
 received  any  retirement incentive authorized by any provision of state
 law, or (b) who receives, has received  or  is  eligible  to  receive  a
 payment  in  a  lump  sum or in another form from a retirement incentive
 pursuant to the provisions of a collective bargaining  agreement  or  by
 other  arrangement  with his or her employer, unless such person files a
 written statement with his or her employer, a copy  of  which  shall  be
 forwarded to the appropriate retirement system, that he or she agrees to
 waive  any  right to such payment. A participating employer who makes an
 election pursuant to this section  and  who  offers  or  has  offered  a
 retirement incentive pursuant to the provisions of a collective bargain-
 ing  agreement or by other arrangement shall prepare, and file with each
 retirement system, a list  containing  the  names  and  social  security
 numbers  of  all  persons described in this subdivision. A participating
 employer is  authorized  to  exempt  persons  in  its  employ  from  the
 provisions of paragraph (b) of this subdivision. Such exemption shall be
 made part of the election made pursuant to this section.
   c.  Notwithstanding  any  other provision of this act to the contrary,
 the mayor of the city of New York may declare employees of the community
 colleges of the city university of New York ineligible for  the  retire-
 ment incentive provided by this act by filing such notification with the
 chancellor  of the city university of New York, with copies to the chair
 of the senate finance committee, the chair  of  the  assembly  ways  and
 means  committee  and  the  director of the budget, in writing, no later
 than the thirtieth day next succeeding the effective date of this act.
   § 5. Notwithstanding any other provision of law, any eligible employee
 serving in an eligible title who:
   a. has been continuously in the active service of a state employer  or
 of a participating employer from February 1, 2021 to the date immediate-
 ly prior to the commencement date of the applicable open period;
   b. files an application for service retirement (or files the appropri-
 ate  application  and  authorization  form  with the optional retirement
 program and a duly  acknowledged  retirement  incentive  form  for  such

 A. 5087                             7
 
 program  with the appropriate personnel office) that is effective during
 the open period; and
   c.  is otherwise eligible for a service retirement as of the effective
 date of the application for retirement shall be entitled to the  retire-
 ment  incentive  provided  in  section six of this act. If not otherwise
 eligible for a service retirement, the following person shall be  deemed
 to satisfy the eligibility condition of this section: a person who is at
 least  age fifty with ten or more years service as of the effective date
 of retirement (other than a member of a retirement plan  which  provides
 for  half-pay  pension  upon  completion  of  twenty-five  years or less
 service without regard to age); a member  of  a  retirement  plan  which
 provides  for  half-pay  pension upon completion of twenty-five years of
 service without regard to age who has not accrued, excluding  additional
 credit  granted  pursuant  to  this  act, the minimum number of years of
 service required to retire with an allowance equal to fifty  percent  of
 final average salary under such plan, but has, with the inclusion of the
 additional  credit provided under this act, accrued such number of years
 of credit; or a participant in an  optional  retirement  plan  at  least
 fifty  years  of age with ten years of service on an annual salary basis
 with his or her employer as of the date of retirement.
   § 6. Notwithstanding any other provision of law, an eligible  employee
 serving in an eligible title who is:
   a. A member of a retirement system and who is entitled to a retirement
 incentive  pursuant  to section five of this act shall receive a retire-
 ment incentive of one-twelfth of a year of additional retirement  credit
 for  each year of pension service credited as of the date of retirement,
 up to a maximum of three years of retirement service credit at the  time
 of retirement, provided, however, that service credit provided under the
 provisions of sections 902 and 911 of the retirement and social security
 law  shall  not  be  included when calculating the additional retirement
 credit awarded pursuant to this act. For the  New  York  city  teachers'
 retirement  system,  the  New York city employees' retirement system and
 the New York city board of education retirement  system  such  incentive
 shall be available for all purposes, including fulfilling the qualifying
 service requirements of plan A and C, if applicable.
   An eligible employee who is covered by the provisions of article 15 of
 the retirement and social security law shall retire under the provisions
 of  article  15 of the retirement and social security law. The amount of
 such benefit for an eligible employee who is covered by  article  15  of
 the  retirement and social security law and retires under the provisions
 of this section (other than a  member  with  thirty  or  more  years  of
 service  in the New York state and local employees' retirement system or
 a teachers' retirement system) shall be reduced by six percent for  each
 of  the first two years by which retirement precedes age sixty-two, plus
 a further reduction of three percent for each year by  which  retirement
 precedes  age  sixty,  provided, however, the foregoing reductions shall
 not apply: (i) in any case where an eligible employee can  retire  after
 twenty-five  years of service with immediate payability prior to the age
 of sixty-two pursuant to section 604-b  of  the  retirement  and  social
 security law or (ii) to any time period subsequent to the point at which
 an  eligible employee can retire for service without reduction of his or
 her service retirement allowance pursuant to article 16 of  the  retire-
 ment  and  social  security  law.  Such  reduction shall be prorated for
 partial years. The amount of such benefit for an eligible employee  with
 thirty  or  more  years of service who is a member of the New York state
 and local employees' retirement system or a teachers' retirement  system

 A. 5087                             8
 
 or an eligible employee who is a participant in the optional twenty-five
 year early retirement program for certain New York city members governed
 by  section 604-c of the retirement and social security law, as added by
 chapter  96 of the laws of 1995 or a twenty-five year participant in the
 age fifty-five retirement program  governed  by  section  604-i  of  the
 retirement  and  social  security law, with twenty-five or more years of
 service and who is covered by article 15 of the  retirement  and  social
 security  law  shall  be  reduced by five percent for each year by which
 retirement pursuant to this section precedes age fifty-five. The  amount
 of such benefit for an eligible New York city employee with five or more
 years of service and who is a participant in the age fifty-seven retire-
 ment  program  governed  by  section  604-d of the retirement and social
 security law shall be reduced by one-thirtieth for the first  two  years
 by which retirement precedes age fifty-seven plus a further reduction of
 one-twentieth for each year by which retirement precedes age fifty-five.
 Such  reduction  shall  be prorated for partial years. There shall be no
 reduction for an eligible New York city employee in a physically  taxing
 position  with twenty-five or more years of service and who is a partic-
 ipant (i) in the optional twenty-five year early retirement program  for
 certain  members  governed by section 604-c of the retirement and social
 security law, as added by chapter 96 of the laws of 1995, or (ii) in the
 age fifty-seven retirement program governed  by  section  604-d  of  the
 retirement and social security law.
   An  eligible  employee  serving in an eligible title who is covered by
 article 11 of the retirement and social security law shall retire  under
 the provisions of such article. The amount of such benefit for an eligi-
 ble employee covered by article 11 of the retirement and social security
 law  other than a member of a teachers' retirement system or a member of
 the New York state and local employees' retirement system with thirty or
 more years of service, a participant  in  the  optional  age  fifty-five
 improved  benefit retirement program for certain New York city employees
 governed by section 445-d of the retirement and social security law,  as
 added  by chapter 96 of the laws of 1995, with twenty-five or more years
 of service, or a participant in the optional age  fifty-five  retirement
 program for New York city teachers and certain other members governed by
 section  445-i  of  the retirement and social security law, with twenty-
 five or more years of service, shall be reduced by six percent for  each
 of  the  first  two  years  by which retirement pursuant to this section
 precedes age sixty-two, plus a further reduction of  three  percent  for
 each  year  by  which  retirement  pursuant to this section precedes age
 sixty, provided, however, the foregoing reductions shall not apply:  (i)
 in  any  case  where  an eligible employee can retire pursuant to a plan
 which permits retirement for service with immediate  payability,  exclu-
 sive  of  this  act,  prior to the age of fifty-five or (ii) to any time
 period subsequent to the point at which an eligible employee can  retire
 for service without reduction of his or her service retirement allowance
 pursuant  to  article 16 of the retirement and social security law. Such
 reduction shall be prorated for partial years. The amount of such  bene-
 fit  for  an eligible employee who is a member of a teachers' retirement
 system or a member of the New York state and local employees' retirement
 system with thirty or more  years  of  service,  a  participant  in  the
 optional  age fifty-five improved benefit retirement program for certain
 New York city employees governed by section 445-d of the retirement  and
 social  security  law,  as added by chapter 96 of the laws of 1995, with
 twenty-five or more years of service, or a participant in  the  optional
 age fifty-five retirement program for New York city teachers and certain

 A. 5087                             9
 
 other  members  governed  by  section 445-i of the retirement and social
 security law, with twenty-five or more  years  of  service  and  who  is
 covered by article 11 of the retirement and social security law shall be
 reduced  by  five  percent for each year by which retirement pursuant to
 this section precedes age fifty-five. Such reduction shall  be  prorated
 for  partial years. There shall be no reduction for an eligible New York
 city employee in a physically taxing position and who is  a  participant
 in  the  optional age fifty-five improved benefit retirement program for
 certain New York city employees governed by section 445-d of the retire-
 ment and social security law, as added by chapter  96  of  the  laws  of
 1995, with twenty-five or more years of service.
   An  eligible  employee serving in an eligible title who is not covered
 by article 11 or 15 of the retirement  and  social  security  law  shall
 retire  under  the provisions of the plan by which he or she is covered.
 The amount of such benefit shall be reduced by  five  percent  for  each
 year  by  which  retirement pursuant to this section precedes age fifty-
 five, provided, however, the foregoing reductions shall not  apply:  (i)
 in  any  case  where  an eligible employee can retire pursuant to a plan
 which permits retirement for service with immediate  payability,  exclu-
 sive  of  this  act,  prior to the age of fifty-five or (ii) to any time
 period subsequent to the point at which an eligible employee can  retire
 for service without reduction of his or her service retirement allowance
 pursuant  to  article 16 of the retirement and social security law. Such
 reduction shall be prorated for partial years.
   An eligible employee serving in an eligible title who participates  in
 a  retirement  plan  which  provides for a retirement allowance equal to
 fifty percent of final average salary upon the completion of twenty-five
 years of service without regard to age and who is otherwise eligible  to
 retire  shall  retire  under  the provisions of such plan. Such employee
 shall, at the time of retirement, be credited with one-twelfth of a year
 of additional retirement service credit for each year of service credit-
 ed under such plan as of the date of retirement,  up  to  a  maximum  of
 three  years  of retirement service credit, subject to the provisions of
 subdivision b of this section. If such employee has not accrued, exclud-
 ing additional credit granted pursuant to this act, the  minimum  number
 of  years of service required to retire with an allowance equal to fifty
 percent of final average salary under  such  plan,  but  has,  with  the
 inclusion of the additional credit provided under this act, accrued such
 number  of  years of credit, the benefit payable shall be the percentage
 of final average salary that would  ordinarily  be  applicable  to  such
 individual  upon retirement with such amount of credit (including incen-
 tive credit), reduced by five per centum per year for each year by which
 the number of years of service otherwise  required  to  retire  with  an
 allowance equal to fifty percent of final average salary under such plan
 exceeds  the amount of service credited to such employee under such plan
 at retirement (excluding the  additional  retirement  incentive  service
 credit  provided pursuant to this act). Such reduction shall be prorated
 for partial years.
   b. A participant in an optional retirement program who is entitled  to
 a  retirement  incentive  pursuant  to  section  five  of this act shall
 receive an additional employer contribution equal to  an  amount,  which
 shall  be  calculated as follows: (one-twelfth for each year of service)
 multiplied by (fifteen percent) multiplied by (the  employee's  earnable
 annual  salary  rate in effect on March 1, 2021 or the effective date of
 this act if the employee retires prior to March 1,  2021),  such  amount
 not  to exceed forty-five percent of such salary rate. Such contribution

 A. 5087                            10
 
 shall be made to the employee's retirement annuity  under  the  optional
 retirement  program  up  to  the  maximum  contribution  allowable under
 section 415 of the internal revenue code. Any contribution in excess  of
 that  limit  shall be contributed by the employer to an internal revenue
 code section 403(b) contract on behalf of the employee to the extent  it
 can  be  contributed  on  a  before-tax  basis  under the maximum limits
 allowed under the internal revenue code. Contributions in excess of that
 amount shall be paid in cash to the participant in three equal  install-
 ments  during  a  twenty-four  month  period commencing on such eligible
 employee's effective date  of  retirement.  Provided,  however,  if  the
 employee  is  employed  by  the  city  university of New York and in the
 active service of such employer on October 1, 2021 or the effective date
 of this act if the employee  retires  prior  to  October  1,  2021,  the
 employee's  earnable  annual salary rate shall be the annual salary rate
 in effect on such applicable date.
   § 7. a. An employee of a state employer, other than the city universi-
 ty of New York, who retires pursuant to this act may  defer  calculation
 of  the  value  of  accumulated  sick leave credits, if any, and partic-
 ipation in the state health insurance plan.
   b. Notwithstanding any other provision of law, any termination pay  or
 leave  arising  from  accrued  sick leave or accrued annual leave for an
 eligible employee who has elected the retirement incentive  provided  by
 this  act  and who is a member of the New York city teachers' retirement
 system employed by the board of education of the city of New York  shall
 be  paid  in  three equal installments during a twenty-four month period
 commencing on such eligible employee's effective date of retirement.
   c. An employee of the city of New York or the city university  of  New
 York,  as defined in subdivision 2 of section 6202 of the education law,
 who retires under the retirement incentive provided by this act, who  is
 eligible  for  terminal  leave  pursuant  to  an  applicable  collective
 bargaining agreement or a personnel policy or rule or  retirement  leave
 pursuant  to  section  3107  of  the education law or who has an accrued
 annual leave balance on the effective date of retirement shall  be  paid
 in  three equal installments two months, fourteen months and twenty-four
 months following such eligible employee's effective date of retirement.
   § 8. a. With respect to employees of the executive branch of  a  state
 employer,  any  position,  other  than  a  position supported by special
 revenue funds, vacated as a result of an eligible employee in an  eligi-
 ble  title receiving the retirement incentive provided by section six of
 this act shall be eliminated unless such position is identified  by  the
 director  of  state  operations as one into which another state employee
 can be appointed,  transferred  or  reassigned  pursuant  to  the  civil
 service  law, rules or regulations, in which case the former position of
 the state employee so appointed,  transferred  or  reassigned  shall  be
 eliminated.
   b.  The  director  of  state operations shall direct the department of
 civil service to prepare a report designating the  title,  grade  level,
 salary,  and  classification,  according to appointing authority, (i) of
 each position which is eliminated pursuant  to  subdivision  a  of  this
 section,  (ii)  of  each  position into which another state employee was
 appointed, transferred, or reassigned and the former  position  of  such
 state  employee,  and  (iii)  of  each position which is eliminated as a
 result of an appointment, transfer or reassignment referred to in  para-
 graph  (ii) of this subdivision. Such report shall be available no later
 than ninety days after the last date of the open period related to  such
 positions.

 A. 5087                            11
 
   §  9.  Notwithstanding  any inconsistent provision of section eight of
 this act or any other provision of law:
   a.  A  participating  employer  or a state employer described in para-
 graphs (b) through (e) of subdivision d of section one of this act shall
 not be required to eliminate the  positions  of  eligible  employees  in
 eligible  titles  receiving the retirement incentive provided by section
 six of this act if such employer can demonstrate that it will achieve  a
 compensation  savings such that the total amount of base salary paid for
 the two-year period subsequent to the effective date of  retirement  for
 such  eligible  employees in eligible titles to those new hires, if any,
 who otherwise would not have been  hired  by  such  employer  after  the
 effective  date  of  this  act but for the retirement incentive provided
 herein shall be no more than one-half of the total amount of base salary
 that would have been paid to such eligible employees from their date  of
 retirement  for  such  two-year  period.  Each  such employer shall make
 available its plans for achieving these savings.
   b. The city of New York or the city university of New York, as defined
 in subdivision 2 of section 6202 of the  education  law,  shall  not  be
 required  to  eliminate  the positions of eligible employees in eligible
 titles receiving the retirement incentive provided  by  section  six  of
 this  act  if  such  participating employer can demonstrate that it will
 achieve a compensation or equivalent headcount  savings  such  that  the
 total  amount  of  compensation including benefits paid for the two-year
 period subsequent to the effective date of retirement for such  eligible
 employees  in  eligible titles to those new hires, if any, who otherwise
 would not have been hired by such employer after the effective  date  of
 this  act  but  for the retirement incentive provided herein shall be no
 more than one-half of the total amount of base salary  that  would  have
 been  paid  to such eligible employees from their date of retirement for
 such two-year period. For purposes of this subdivision, the "city of New
 York" shall mean the city of New York  or  a  participating  employer  a
 majority  of  the  members of whose governing body are: (a) appointed by
 the mayor of the city of New York or other citywide elected official,  a
 borough  president  of the city of New York, or any combination thereof;
 (b) designated by virtue of their city of New York office or position or
 their office or position with a participating employer  whose  governing
 board  is  described  in  paragraph  (a)  of  this  subdivision;  or (c)
 appointed or designated by any combination of the foregoing.  Each  such
 employer shall make available its plans for achieving these savings.
   c.  To the extent any transfer of personnel between the state employer
 described in paragraph (a) of subdivision d of section one of  this  act
 and  the  state  employer described in paragraph (b) of subdivision d of
 section one of this act occurs pursuant to a voluntary transfer of state
 personnel, or otherwise, the provisions of subdivision a of this section
 with respect to achieving savings shall be applicable.   Nothing  herein
 shall  be  construed  to  impair  the authority of the director of state
 operations pursuant to subdivision g of section one or  section  two  of
 this act.
   § 10. Nothing in this act shall be used to provide benefits that shall
 exceed the limits contained in section 415 of the internal revenue code.
 Provided, however, any service retirement benefit which has been reduced
 because  of  section 415 of the internal revenue code shall be increased
 when (and consistent with) the dollar  limits  in  section  415  of  the
 internal  revenue  code are adjusted by the internal revenue service for
 cost of living increases. Such increases shall not increase the  benefit
 in excess of the service retirement benefit otherwise payable.

 A. 5087                            12
 
   §  11. Any eligible employee who retires pursuant to the provisions of
 this act and enters or reenters public service as defined in subdivision
 e of section 210 of the retirement and social security law and joins  or
 rejoins any public retirement system of the state as defined in subdivi-
 sion  6  of  section  152  of  the retirement and social security law or
 elects to participate in an optional retirement  program  shall  if  the
 additional  benefit  was  provided  pursuant  to:  (a)  subdivision a of
 section six of this act, forfeit the additional  benefit  authorized  by
 this  act at the time of his or her subsequent retirement; or (b) subdi-
 vision b of section six of this act, repay to the state or participating
 employer such additional  contribution  together  with  the  appropriate
 interest as determined by the state comptroller.
   §  12.  Notwithstanding  any  other  provision  of law, if the service
 retirement benefit of a member of a retirement system is  subject  to  a
 maximum  retirement  benefit,  the additional benefit authorized by this
 act will be computed by multiplying the final average salary  times  the
 number  of  years  of  service credit granted by section six of this act
 times the benefit fraction of the plan under which such member retires.
   § 13. The provisions of section 430 of the retirement and social secu-
 rity law shall not apply to any benefit or benefit improvement  provided
 by this act.
   §  14.  The  pension  benefit costs of subdivision a of section six of
 this act shall be paid by employers as provided by  applicable  law  for
 each  retirement  system covered by this act over a period not to exceed
 five years commencing in the state fiscal year ending March 31, 2023.
   § 15. Where an employee is eligible to receive the benefit  authorized
 under  section six and the retirement benefit provided for under section
 five of part B of the chapter of the laws of 2021 which added this part,
 such employee may elect a section under which he  or  she  will  partic-
 ipate.
   § 16. This act shall take effect immediately.
 
                                  PART B
 
   Section 1. Definitions. As used in this act, unless the context clear-
 ly requires otherwise:
   a.  "Retirement  system" means the New York state and local employees'
 retirement system, the New York state teachers' retirement  system,  the
 New  York  city  teachers' retirement system, the New York city board of
 education retirement system or the New York city  employees'  retirement
 system,  exclusive  of  the  retirement  plans  established  pursuant to
 sections 13-156 and 13-157 of the administrative code of the city of New
 York.
   b. "Teachers' retirement system" means the New  York  state  teachers'
 retirement system or the New York city teachers' retirement system.
   c.  "State  employer" means (a) the executive branch of the state, (b)
 the state-operated institutions of the state university of New York, (c)
 the statutory and contract colleges operated pursuant to section 357  of
 the  education  law, (d) the state university construction fund (herein-
 after referred to in this act as the "fund"), (e) a  cooperative  exten-
 sion  association  (hereinafter  referred to in this act as the "associ-
 ation"), and  (f)  the  city  university  of  New  York  as  defined  in
 subdivision  2  of  section  6202  of the education law, (g) the unified
 court system, (h) the senate, (i) the assembly, and (j)  joint  legisla-
 tive employers.

 A. 5087                            13
 
   d.  (a) "Participating employer" means an employer, other than a state
 employer, which participates in a retirement  system;  such  term  shall
 include a community college operating under the program of state univer-
 sity of New York.
   (b)  "Educational  employer" means a participating employer which is a
 school district, a board of cooperative educational  services,  a  voca-
 tional education and extension board, an institution for the instruction
 of the deaf and of the blind as enumerated in section 4201 of the educa-
 tion law, or a school district as enumerated in section 1 of chapter 566
 of the laws of 1967, as amended.
   e.  "Eligible employee" means a person who is a member of a retirement
 system who is an employee in the executive branch of a state employer or
 an employee of a state employer or  a  participating  employer  who  has
 attained age fifty-five and has at least twenty-five years of creditable
 service  in  a  retirement  system,  but such term shall not include the
 following persons:
   (a) elected officials, judges or justices appointed to or  serving  in
 court of record and acting village justices;
   (b)  chief  administrative  officers  of participating employers which
 participate in a teachers' retirement system;
   (c) officers described in sections 4, 41-a,  46,  61,  70,  70-a,  169
 (including those officers whose salary is established pursuant to salary
 plans  under  subdivision  3  of  section 169), 180 and subdivision 1 of
 section 41 of the executive  law  and  any  agency  or  department  head
 appointed by the governor, comptroller or attorney general;
   (d)  appointed  members  of boards or commissions any of whose members
 are appointed by the governor or by another state officer or body;
   (e) nonjudicial officers and employees of  the  unified  court  system
 unless  the chief administrator of the courts elects as provided herein,
 which election shall cover only nonjudicial officers and employees hold-
 ing positions in any title in the  classified  service  of  the  unified
 court system;
   (f)  officers  or  employees  of the senate unless the senate adopts a
 resolution authorizing the temporary president to file the  election  as
 provided in this subdivision;
   (g) officers or employees of the assembly unless the assembly adopts a
 resolution  authorizing the speaker of the assembly to file the election
 as provided in this subdivision; and
   (h) officers or employees of joint legislative employers unless:
   (i) with respect to officers or employees of the legislative  library,
 legislative  messenger  service, legislative health service, legislative
 ethics committee, the legislative  bill  drafting  commission,  and  the
 joint  line  of  the  legislative task force on demographic research and
 reapportionment, the senate and assembly adopt a  concurrent  resolution
 authorizing the temporary president of the senate and the speaker of the
 assembly to jointly file an election as provided in this subdivision;
   (ii) with respect to officers or employees of components of the senate
 as  identified pursuant to section 90 of the legislative law, the senate
 adopts a resolution authorizing  the  temporary  president  to  file  an
 election  for  officers  or  employees of those components designated in
 such resolution; and
   (iii) with respect to officers  or  employees  of  components  of  the
 assembly  as  identified  pursuant to section 90 of the legislative law,
 the assembly adopts a resolution authorizing the speaker of the assembly
 to file an election for officers or employees of those components desig-
 nated in such resolution.

 A. 5087                            14
 
   Any election under paragraphs (e) through (h) of this  subdivision  to
 make available the retirement incentive provided by this act shall be in
 writing  and filed with the state comptroller not later than ninety days
 after  the  effective  date  of  this  act.  Notwithstanding  any  other
 provision  of  this act, each such filing shall specify the commencement
 date of the open period.
   For the purposes of such paragraph (f), (g) or (h)  of  this  subdivi-
 sion, an employee of the legislature shall be as such term is defined in
 section 7-a, 7-b or 7-d of the legislative law or by any other provision
 of law which classifies employees of an entity to be legislative employ-
 ees  for  all purposes, but shall not include senators or members of the
 assembly. The term "joint legislative employer" shall  mean  legislative
 commissions,  committees,  task forces, councils or similar bodies whose
 membership is comprised of both senators and assembly members, or  which
 consist  of  commissioners,  or  the  majority  of  whose  membership is
 appointed by one or more of the following: the  temporary  president  of
 the  senate,  the  speaker  of  the assembly, the minority leader of the
 senate, and/or the minority leader of the assembly. The temporary presi-
 dent of the senate and the speaker of the assembly shall  be  the  joint
 legislative  employer of the employees of the legislature referred to in
 sections 7-a and 7-b of the legislative law.
   f. "College faculty" means an employee, not in the classified service,
 of a state employer described in paragraphs (b), (c), (d), (e)  and  (f)
 of  subdivision  c  of  this  section or of a community college who is a
 member of a teachers' retirement system, or the New York state and local
 employees' retirement system.
   g. "Active service" means service while being  paid  on  the  payroll,
 provided  that  (a)  a  leave of absence with pay shall be deemed active
 service; (b) other approved leave without pay not to exceed twelve weeks
 from February 1, 2021 and the commencement of the designated open  peri-
 od;  and  (c) the period of time subsequent to the June 2021 school term
 and on or before August 31,  2021  for  a  teacher  (or  other  employee
 employed  on  a school-year basis) who is otherwise in active service on
 the effective date of this act shall be deemed active service.
   h. "Open period" means the period beginning with the commencement date
 as defined in subdivision i of this section and shall be ninety days  in
 length;  provided  however that there shall be only one such open period
 and any such period shall not extend beyond September  30,  2021  for  a
 state  employer  and December 31, 2021 for a participating employer. For
 educational employers who make election after June  1,  2021,  the  open
 period shall begin immediately after such election, and shall not extend
 beyond August 31, 2021.  For the purposes of retirement pursuant to this
 act, a service retirement application must be filed with the appropriate
 retirement  system  not  less  than fourteen days prior to the effective
 date of retirement to become effective, unless a shorter period of  time
 is permitted under law.
   i.  "Commencement  date"  means  the  first day the retirement benefit
 mandated by this act shall be made available, which shall mean a date or
 dates on or after the effective date of this act to be determined by the
 director of state operations for the executive branch of the  state,  or
 for  any other state employer or any participating employer which elects
 to participate pursuant to section three of this act a date on or  after
 the  effective  date  of this act; provided, however, that for an educa-
 tional employer which elects to participate pursuant to section three of
 this act, the commencement date shall be June 1,  2021;  or  immediately
 after election of the retirement incentive for educational employers who

 A. 5087                            15
 
 elect  after  June  1, 2021 and provided, further that for participating
 employers which elect to participate pursuant to section three  of  this
 act,  except  the city of New York and participating employers which are
 not  empowered to act by local law, the commencement date shall be Octo-
 ber 1, 2021. The director of state operations shall notify the  head  of
 the  appropriate retirement system of the date of the open period appli-
 cable to employees of the executive branch or of a state employer  prior
 to the commencement date.
   §  2.  a.  A  state  employer  which elects to participate pursuant to
 section three of this act, participating employer which is not empowered
 to act by local law which elects  to  participate  pursuant  to  section
 three  of this act, or the city of New York, if it elects to participate
 pursuant to section three of this act  shall  establish  a  commencement
 date  for  the retirement benefit established under section five of this
 act in the following manner: (a) for the executive branch, the  director
 of  state operations shall establish the commencement date in writing to
 the appropriate retirement system; (b) for state employers described  in
 paragraphs (b), (c), (d), (e) and (f) of subdivision c of section one of
 this  act  and  participating employers that are not empowered to act by
 local law, its governing body shall adopt a  resolution  establishing  a
 commencement  date; (c) for state employers described in paragraphs (g),
 (h), (i) and (j) of subdivision c of section one of this act, the person
 or persons who make the  election  to  offer  the  retirement  incentive
 pursuant  to  part A of the chapter of the laws of 2021 which added this
 part shall establish a commencement date in writing to  the  appropriate
 retirement system; and (d) for the city of New York, the chief executive
 officer  shall  issue  an  executive order establishing the commencement
 date, provided, however, no executive order, in the case of the city  of
 New  York issued pursuant to this section, shall in any manner supersede
 any local charter. A copy of any such resolution or executive  order  in
 the  case of the city of New York establishing a commencement date shall
 be filed with the appropriate retirement  system  or  systems,  and,  if
 applicable,  on  forms provided by such system. The resolution or execu-
 tive order in the case of the city of New York shall be  accompanied  by
 the  affidavit  of the chief executive officer or other comparable offi-
 cial certifying the commencement date.
   b. A state employer, participating employer which is not empowered  to
 act  by  local law which elects to participate pursuant to section three
 of this act, or the city of New York if it elects to participate  pursu-
 ant  to  section  three  of  this  act  shall be required to establish a
 commencement date under paragraph a of this subdivision for the  retire-
 ment  benefit  established  under section five of this act. In the event
 that a state employer, participating employer which is not empowered  to
 act  by  local law which elects to participate pursuant to section three
 of this act, or the city of New York if it elects to participate  pursu-
 ant  to section three of this act fails to establish a commencement date
 for the retirement benefit established under section five of  this  act,
 the  commencement  date  for  the eligible employees of a state employer
 shall be July 1, 2021.  The commencement date for the eligible employees
 of all other employers referenced in this subdivision shall be September
 1, 2021.
   § 3. On or before September 1, 2021, a  participating  employer  or  a
 state  employer  described  in  paragraphs (b), (c), (d), (e) and (f) of
 subdivision c of section one of  this  act  may  elect  to  provide  its
 employees  the  retirement  incentive  authorized by this act by (a) the
 enactment of a local law or (b) in the case of a participating  employer

 A. 5087                            16
 
 which  is  not  so  empowered  to  act  by local law or a state employer
 described in paragraphs (b), (c), (d), (e) and (f) of subdivision  c  of
 section  one of this act, by the adoption of a resolution of its govern-
 ing  body; provided however, no local law or resolution enacted pursuant
 to this section  shall  in  any  manner  supersede  any  local  charter,
 provided further, that for an educational employer such election must be
 made  by  July  1,  2021.    For a community college operating under the
 program of state university of New York, such election shall be made  by
 the  board of trustees of such community college subject to the approval
 of its sponsor. A copy of such law or resolution shall be filed with the
 appropriate retirement system or systems, and, if applicable,  on  forms
 provided  by  such system. The local law or resolution shall be accompa-
 nied by the affidavit of the chief executive officer or other comparable
 official certifying the validity of such local law or resolution.    The
 executive  branch  of the state shall be deemed to have made an election
 under this section upon its enactment.
   § 4. Notwithstanding any other provision of law, any eligible employee
 who (a) has been continuously in the active service of a state  employer
 or  of  a participating employer from February 1, 2021 to the date imme-
 diately prior to the commencement date of the  applicable  open  period,
 (b) files an application for service retirement that is effective during
 the  open period, and (c) is otherwise eligible for a service retirement
 as of the effective date of the  application  for  retirement  shall  be
 entitled to the retirement benefit provided in section five of this act.
   §  5.  a.  Notwithstanding  any  other  provision  of law, an eligible
 employee who is: (a) a member of a retirement  system  and  (b)  who  is
 entitled  to  a  retirement benefit pursuant to section four of this act
 may retire during the open period without the reduction of  his  or  her
 retirement  benefit  that would otherwise be imposed by article 11 or 15
 of the retirement and social security law if he or she has attained  the
 age  of  fifty-five and has completed at least twenty-five or more years
 of creditable service. An  eligible  employee  who  is  covered  by  the
 provisions  of  articles 11 and 15 of the retirement and social security
 law shall retire under the provisions of  articles  11  and  15  of  the
 retirement and social security law.
   b.  The  director  of state operations, the chief executive officer of
 the city of New York, or chief executive officer or governing board,  as
 appropriate, of the participating employer may deny participation in the
 retirement  benefit  provided  by  subdivision  a of this section if the
 director of state operations, the chief executive officer  of  New  York
 city  or  the  chief executive officer or governing board of the partic-
 ipating employer makes a determination that the employee holds  a  posi-
 tion  that  is  deemed  critical to the maintenance of public health and
 safety.
   c. Where an employee is eligible for the retirement benefit under this
 section and the retirement incentive authorized pursuant to section  six
 of part A of the chapter of the laws of 2021 which added this part, such
 employee  shall  elect a section under which he or she will participate.
 The benefits provided by subdivision a of  this  section  shall  not  be
 conditioned  upon  a state or participating employer making the benefits
 of section six of part A of this act available  to  employees  in  their
 employ.  Further, the benefits provided by subdivision a of this section
 shall not be available in conjunction with the benefits of  section  six
 of part A of the chapter of the laws of 2021 which added this part.
   d. The action of the director of state operations, the chief executive
 officer of the city of New York, or chief executive officer or governing

 A. 5087                            17
 
 board,  as  appropriate,  of  the  participating employer in denying the
 retirement benefit provided for in subdivision a of this section to  any
 individual  shall  be  subject  to  review in the manner provided for in
 article  78  of the civil practice law and rules. Such action for review
 pursuant to article seventy-eight of the civil practice  law  and  rules
 shall only be commenced by the individual that was denied the retirement
 benefit provided by subdivision a of this section.
   e.  After  making  any  such determination under subdivision b of this
 section, the director of state operations, the chief  executive  officer
 of  the  city  of  New York and the chief executive officer or governing
 board, as appropriate, of the participating employer  shall  notify  the
 appropriate  retirement  system  or  teachers'  retirement system of its
 determination.
   § 6. The pension benefit costs of section five of this  act  shall  be
 paid  by  employers  as  provided  by applicable law for each retirement
 system covered by this act over  a  period  not  to  exceed  five  years
 commencing in the state fiscal year ending March 31, 2023.
   § 7. This act shall take effect immediately.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  applicable  effective date of Parts A and B of this act shall be as
 specifically set forth in the last section of such Parts.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide a temporary retirement  incentive  for  fiscal
 year  2021-  2022  for  eligible members of the New York State Teachers'
 Retirement System (NYSTRS).
   Part A of the retirement  incentive  would  provide  certain  eligible
 employees  of  employers who elect to participate a retirement incentive
 of one-twelfth of a year  of  additional  service  credit  per  year  of
 accrued  service credit up to a maximum of three additional years. To be
 eligible, a member must be eligible to retire, or have attained  age  50
 or  greater,  with  at least ten years of service. Members subject to an
 early retirement reduction and less than age 55 at retirement will  have
 their  benefit  further  reduced by 3% per year prior to age 55. Members
 not subject to an early retirement reduction and less  than  age  55  at
 retirement  will  have their benefit reduced by 5% per year prior to age
 55.
   Part B of the retirement incentive would permit eligible Tier 2, 3 and
 4 members of employers who elect to participate to retire without  early
 retirement  reductions  upon attainment of at least age 55 with 25 years
 of service. Currently 30 years of service are required.
   In order to receive either the Part A or Part B benefit,  an  eligible
 member  of an employer who has elected to participate must retire during
 the employer's designated open period. For  Part  A,  such  open  period
 shall  be at least 30 but not more than 90 days in length and for educa-
 tional employers, shall not extend beyond August 31, 2021. For  Part  B,
 the  open  period  shall begin immediately after the election to partic-
 ipate and shall not extend beyond  August  31,  2021.  Members  may  not

 A. 5087                            18
 
 receive  a benefit under both Part A and Part B. Employers participating
 in Part A or Part B (or both) would  pay  the  cost  of  the  retirement
 incentive over a period not to exceed five years, beginning in the state
 fiscal year ending March 31, 2023.
   It  is  not  possible to accurately forecast the total cost to the New
 York State Teachers' Retirement System employers electing to participate
 in this retirement incentive because  the  number  of  eligible  members
 electing  to  retire  under  the incentive, their ages and the amount of
 service credited cannot be readily estimated. The Part A cost,  measured
 as  the  increase  in  the  present  value  of benefit per participating
 member, however, will range from 5% to approximately 250% of final aver-
 age salary, depending on the member's age, years of service, and tier at
 retirement. The Part B cost per participating member will range from  3%
 to approximately 200% of final average salary, depending on the member's
 age,  years  of service, and tier at retirement. The potential number of
 members eligible to benefit under Part A is much greater than under Part
 B.
   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
 Comprehensive  Annual  Financial  Report  (CAFR).  System  assets are as
 reported in the System's financial statements, and can also be found  in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report.
   The  source  of  this estimate is Fiscal Note 2021-9 dated February 3,
 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.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide additional service credit  (one-twelfth  of  a
 year for each year of non-sick leave, non-Article 19 service credited as
 of  the  date of retirement, up to a maximum of three years) for certain
 members of the New York State and Local  Employees'  Retirement  System,
 New  York  State  Teachers  Retirement  System,  New  York City Teachers
 Retirement System, New York City Board of Education  and  the  New  York
 City  Employees' Retirement System. Further, for certain members who are
 not otherwise eligible for a service retirement benefit, this bill would
 provide the ability to retire with reductions.  This  benefit  would  be
 available to only targeted positions.
   In addition, this bill would eliminate the early retirement reductions
 at  25 years of service instead of at 30 years of service for retirement
 during a specified 90 day period for Tier 2, 3 and 4 members of the  New
 York State and Local Employees' Retirement System, New York State Teach-
 ers  Retirement  System,  New  York City Teachers Retirement System, New
 York City Board of Education and the New York City Employees' Retirement
 System. Employers electing this provision can declare health and  safety
 positions to be ineligible.
   Retiring  members  may  not receive both the additional service credit
 and the elimination of the early retirement reductions at  25  years  of
 service instead of at 30 years of service.
   If  this bill is enacted, insofar as it affects the New York State and
 Local Employees' Retirement System (ERS), the additional cost  for  each

 A. 5087                            19
 
 member  who  receives these benefits will vary depending on the member's
 age, years of service, retirement plan and final average salary.
   We  anticipate  that  the per-member cost (at retirement) of the addi-
 tional service credit  benefit  will  average  approximately  65%  of  a
 member's  final average salary. This cost will be borne by each employer
 electing the incentive over a period not to exceed five years commencing
 with a payment in the State fiscal year ending March 31, 2023.
   We anticipate that the per-member cost (at retirement) of  the  elimi-
 nation of the early retirement reductions at 25 years of service instead
 of  at 30 years of service will average approximately 115% of a member's
 final average salary. This cost will be borne by each employer  electing
 the  incentive  over a period not to exceed five years commencing with a
 payment in the State fiscal year ending March 31, 2023.
   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  December  30,  2020, and intended for use only
 during the 2021 Legislative Session, is Fiscal Note No. 2021-7, prepared
 by the Actuary for the New York State and Local Retirement System.