S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5379--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2021
                                ___________
 
 Introduced  by  Sens. AKSHAR, GALLIVAN, HELMING, MARTUCCI, ORTT, STEC --
   read twice and ordered printed, and when printed to  be  committed  to
   the  Committee  on  Civil  Service  and Pensions -- recommitted to the
   Committee on Civil Service and Pensions in accordance with Senate Rule
   6, sec. 8 -- committee discharged, bill amended, ordered reprinted  as
   amended and recommitted to said committee
 
 AN  ACT  to amend the retirement and social security law, in relation to
   the calculation of past service credit for members  in  the  title  of
   deputy  sheriff  transferring  between  the  New  York state and local
   employees' retirement system to the New York state  and  local  police
   and fire retirement system
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 43 of the retirement and  social  security  law  is
 amended by adding a new subdivision m to read as follows:
   M. 1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
 RY,  ANY MEMBER IN THE TITLE OF DEPUTY SHERIFF TRANSFERRING FROM THE NEW
 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM TO THE NEW YORK  STATE
 AND  LOCAL POLICE AND FIRE RETIREMENT SYSTEM AFTER THE EFFECTIVE DATE OF
 THIS SUBDIVISION AND ANY MEMBER PREVIOUSLY IN THE TITLE OF DEPUTY  SHER-
 IFF  HAVING  MADE  SUCH TRANSFER SHALL BE ENTITLED TO A DETERMINATION OF
 THE AMOUNT OF SERVICE CREDIT THAT IS ELIGIBLE ON A TWENTY YEAR OR  TWEN-
 TY-FIVE YEAR RETIREMENT PLAN IF, WITHIN ONE YEAR OF THE DATE ON WHICH HE
 OR  SHE FIRST BECAME A MEMBER OF THE NEW YORK STATE AND LOCAL POLICE AND
 FIRE RETIREMENT SYSTEM OR WITHIN ONE YEAR OF THE EFFECTIVE DATE OF  THIS
 SUBDIVISION,  SUCH  MEMBER  ELECTS  TO DO SO. IF THE MEMBER SUBSEQUENTLY
 TRANSFERS BACK TO THE NEW YORK STATE  AND  LOCAL  EMPLOYEES'  RETIREMENT
 SYSTEM,  THE  FULL AMOUNT OF SERVICE CREDIT EARNED WHILE IN THE TITLE OF
 DEPUTY SHERIFF SHALL BE TRANSFERRED BACK TO THE NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04164-04-2
 S. 5379--A                          2
              

 
   2. THE CALCULATION OF THE AMOUNT OF SUCH SERVICE CREDIT FOR  A  MEMBER
 WILL  BE  DETERMINED BY MULTIPLYING THE ELIGIBLE SERVICE CREDITED IN THE
 NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN BY  A  SALARY
 MULTIPLIER,  REFLECTING  THE  RATE  OF  SALARY IN THE NEW YORK STATE AND
 LOCAL  EMPLOYEES'  RETIREMENT SYSTEM PLAN RELATIVE TO THE RATE OF SALARY
 IN THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM  PLAN,
 AND  A BILLING RATE MULTIPLIER, REFLECTING THE ACTUARIAL LONG-TERM AVER-
 AGE BILLING RATE IN THE NEW YORK STATE AND LOCAL  EMPLOYEES'  RETIREMENT
 SYSTEM  PLAN RELATIVE TO THE ACTUARIAL LONG-TERM AVERAGE BILLING RATE IN
 THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN. THE
 DETERMINATION OF THE SALARY MULTIPLIER AND BILLING RATE MULTIPLIER  WILL
 BE  DETERMINED BY THE ACTUARY OF THE NEW YORK STATE AND LOCAL EMPLOYEES'
 RETIREMENT SYSTEM AND THE NEW YORK  STATE  AND  LOCAL  POLICE  AND  FIRE
 RETIREMENT  SYSTEM. THE AMOUNT OF SUCH SERVICE CREDITED TO THE MEMBER IN
 THE NEW YORK STATE AND LOCAL POLICE  AND  FIRE  RETIREMENT  SYSTEM  PLAN
 SHALL NOT EXCEED THE AMOUNT OF SERVICE CREDITED TO THE MEMBER IN THE NEW
 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN.
   §  2. Section 343 of the retirement and social security law is amended
 by adding a new subdivision i to read as follows:
   I. 1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
 RY, ANY MEMBER IN THE TITLE OF DEPUTY SHERIFF TRANSFERRING FROM THE  NEW
 YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM TO THE NEW YORK STATE
 AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM AFTER THE EFFECTIVE DATE  OF
 THIS  SUBDIVISION AND ANY MEMBER PREVIOUSLY IN THE TITLE OF DEPUTY SHER-
 IFF HAVING MADE SUCH TRANSFER SHALL BE ENTITLED TO  A  DETERMINATION  OF
 THE  AMOUNT OF SERVICE CREDIT THAT IS ELIGIBLE ON A TWENTY YEAR OR TWEN-
 TY-FIVE YEAR RETIREMENT PLAN IF, WITHIN ONE YEAR OF THE DATE ON WHICH HE
 OR SHE FIRST BECAME A MEMBER OF THE NEW YORK STATE AND LOCAL POLICE  AND
 FIRE  RETIREMENT SYSTEM OR WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS
 SUBDIVISION, SUCH MEMBER ELECTS TO DO SO.  IF  THE  MEMBER  SUBSEQUENTLY
 TRANSFERS  BACK  TO  THE  NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM, THE FULL AMOUNT OF SERVICE CREDIT EARNED WHILE IN THE  TITLE  OF
 DEPUTY  SHERIFF  SHALL  BE  TRANSFERRED BACK TO NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM.
   2. THE CALCULATION OF THE AMOUNT OF SUCH SERVICE CREDIT FOR  A  MEMBER
 WILL  BE  DETERMINED BY MULTIPLYING THE ELIGIBLE SERVICE CREDITED IN THE
 NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN BY  A  SALARY
 MULTIPLIER,  REFLECTING  THE  RATE  OF  SALARY IN THE NEW YORK STATE AND
 LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN RELATIVE TO THE RATE  OF  SALARY
 IN  THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN,
 AND A BILLING RATE MULTIPLIER, REFLECTING THE ACTUARIAL LONG-TERM  AVER-
 AGE  BILLING  RATE IN THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM PLAN RELATIVE TO THE ACTUARIAL LONG-TERM AVERAGE BILLING RATE  IN
 THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN. THE
 DETERMINATION  OF THE SALARY MULTIPLIER AND BILLING RATE MULTIPLIER WILL
 BE DETERMINED BY THE ACTUARY OF THE NEW YORK STATE AND LOCAL  EMPLOYEES'
 RETIREMENT  SYSTEM  AND  THE  NEW  YORK  STATE AND LOCAL POLICE AND FIRE
 RETIREMENT SYSTEM. THE AMOUNT OF SUCH SERVICE CREDITED TO THE MEMBER  IN
 THE  NEW  YORK  STATE  AND  LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN
 SHALL NOT EXCEED THE AMOUNT OF SERVICE CREDITED TO THE MEMBER IN THE NEW
 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN.
   3. IF THE MEMBER SUBSEQUENTLY RETIRES ON AN AGE BASED RETIREMENT  PLAN
 IN  THE  NEW  YORK  STATE  AND  LOCAL  POLICE AND FIRE RETIREMENT SYSTEM
 INSTEAD OF A TWENTY YEAR OR TWENTY-FIVE YEAR PLAN, THE  FULL  AMOUNT  OF
 SERVICE  CREDIT  EARNED  WHILE  IN  THE TITLE OF DEPUTY SHERIFF SHALL BE
 GRANTED.
 S. 5379--A                          3

   4. NO MEMBER WHO RECEIVES SERVICE CREDIT PURSUANT TO THIS  SUBDIVISION
 SHALL  BE  ELIGIBLE  TO  RECEIVE  ADDITIONAL  SERVICE CREDIT PURSUANT TO
 SUBDIVISION B OF SECTION THREE HUNDRED EIGHTY FOUR-E OF THIS ARTICLE  IF
 HIS OR HER EMPLOYER HAS ELECTED TO PROVIDE SUCH SERVICE CREDIT.
   §  3. This act shall take effect on the sixtieth day after an internal
 revenue service ruling stating that the transfer and crediting of deputy
 sheriff service credit from the New  York  state  and  local  employees'
 retirement  system  into  the  New  York state and local police and fire
 retirement system special retirement plan by this act is  allowable  and
 does  not  jeopardize such retirement system's tax-qualified status, and
 shall remain in full force and effect only as long as such  transfer  is
 authorized  pursuant  to  the  provisions  of the internal revenue code;
 provided, that the state comptroller shall notify the  legislative  bill
 drafting  commission  upon  the  occurrence  of such ruling and upon any
 change in the provisions of the  internal  revenue  code  affecting  the
 provisions  of  this  act  in  order that the commission may maintain an
 accurate and timely effective data base of the official text of the laws
 of the state of New York in furtherance of effecting the  provisions  of
 section  44  of the legislative law and section 70-b of the public offi-
 cers law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would expand the  definition  of  creditable  service  under
 20-year  and  25-year  plans  (special  plans) in the New York State and
 Local Police and Fire Retirement System (PFRS) to include service credit
 earned in the New York State  and  Local  Employees'  Retirement  System
 (ERS)  for  those individuals previously employed in the title of Deputy
 Sheriff. To be eligible for the service credit, an individual must be  a
 member  of PFRS and elect to transfer the ERS service credit to the PFRS
 plan within 12 months of first joining PFRS, or within 12 months of  the
 effective  date  of  the bill, whichever is later. The amount of service
 credit granted in the PFRS special plan will be calculated by the  Actu-
 ary  of  the New York State and Local Retirement System (NYLSRS), not to
 exceed the service credited under the ERS plan.
   Internal Revenue Service (IRS)  plan  qualification  issues:  granting
 service  credit  towards  retirement  in  a 20-year plan in the PFRS for
 employment that was not  rendered  in  the  PFRS  could  jeopardize  the
 Retirement  System's  governmental  plan  status  and its exemption from
 Employees Retirement Income Security Act (ERISA). This development could
 result in the loss of qualified status, which would mean the loss of tax
 benefits. This result would substantially impair the System's  value  to
 our more than one million participants.
   This  legislation  will  not  become  effective until NYLSRS obtains a
 favorable ruling from the IRS stating that these  provisions  would  not
 harm  the qualification status of the System. Further, the provisions of
 this legislation will only continue in full force and  effect  while  so
 authorized  by  the  IRS.  It  is  estimated that the costs to obtain an
 initial ruling would be $28,000 for the services of the  IRS,  and  $800
 per hour for legal consultants.
   In addition to the costs to obtain a ruling from the IRS stated above,
 if  this bill is enacted, there will be an administrative cost to imple-
 ment the provisions of this legislation.
   All costs will be shared by the State of  New  York  and  all  of  the
 participating employers in the PFRS.
   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-
 S. 5379--A                          4
 
 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  February  18,  2022, and intended for use only
 during the  2022  Legislative  Session,  is  Fiscal  Note  No.  2022-60,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.