S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6511
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 12, 2023
                                ___________
 
 Introduced by M. of A. BYRNES -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT  to amend the retirement and social security law, in relation to
   allowing for certain members of a  public  retirement  system  of  the
   state to apply for credit for military service

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Section 1000 of the retirement and social security law  is
 amended by adding a new subdivision 5-a to read as follows:
   5-A.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  FIVE  OF THIS
 SECTION, A MEMBER, WHO IS  INELIGIBLE  TO  RECEIVE  THE  CREDIT  ALLOWED
 PURSUANT TO THIS SECTION SOLELY BECAUSE SUCH MEMBER RETIRED ON OR BEFORE
 MAY THIRTY-FIRST, TWO THOUSAND SIXTEEN, SHALL BE ELIGIBLE TO RECEIVE THE
 CREDIT ALLOWED PURSUANT TO THIS SECTION IF SUCH MEMBER MAKES APPLICATION
 FOR  SUCH  CREDIT ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND TWEN-
 TY-FOUR. THE SERVICE  CREDIT  AVAILABLE  PURSUANT  TO  THIS  SUBDIVISION
 SHALL,  WHEN  CALCULATED,  APPLY ONLY TO BENEFITS RECEIVED BY THE MEMBER
 AFTER THE DATE SUCH MEMBER MAKES APPLICATION  FOR  SUCH  CREDIT  AND  NO
 RETROACTIVE BENEFIT PAYMENTS SHALL BE MADE TO SUCH APPLICANT PURSUANT TO
 THIS  SUBDIVISION.  TO  OBTAIN  CREDIT  PURSUANT  TO THIS SUBDIVISION, A
 MEMBER SHALL PAY SUCH RETIREMENT SYSTEM, FOR DEPOSIT IN THE FUND USED TO
 ACCUMULATE EMPLOYER CONTRIBUTIONS, A SUM EQUAL TO  THE  PRODUCT  OF  THE
 NUMBER  OF  YEARS OF MILITARY SERVICE BEING CLAIMED AND THREE PERCENT OF
 SUCH MEMBER'S COMPENSATION EARNED DURING  THE  LAST  TWELVE  CONSECUTIVE
 MONTHS OF CREDITED SERVICE PRECEDING THE DATE THAT THE MEMBER RETIRED.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow members who retired on or before May 31, 2016 to
 apply  to  receive  military  service  credit  pursuant  to §1000 of the
 Retirement and Social Security Law.  Application  must  be  made  on  or
 before  December  31,  2024. If approved, the retirement benefit will be
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09136-02-3
              

 A. 6511                             2
 
 recalculated as of the date of application and no  retroactive  benefits
 will  be paid. Retires would be required to pay a sum equal to the prod-
 uct of number of years of military service granted times  three  percent
 (3%) of compensation earned during the last twelve consecutive months of
 credited  service  preceding  the  date  of retirement. Such retiree may
 receive up to three (3) years  of  service  credit  for  their  military
 service.
   Insofar  as this proposal affects the New York State and Local Employ-
 ees' Retirement Systems (NYSLERS) and  the  New  York  State  and  Local
 Police and Fire Retirement System (NYSLPFRS), if enacted during the 2023
 legislative  session,  the  cost  will  depend upon the applicant's age,
 service, salary, plan, and benefit type payable. For each year of  addi-
 tional  service  credit that is purchased, it is estimated that the past
 service cost will average:
   approximately 13% of affected retiree's final average  salary  in  the
 NYSLERS, and
   approximately  17%  of  affected retiree's final average salary in the
 NYSLPFRS.
   The number of retirees who  could  be  affected  by  this  legislation
 cannot  be readily determined. A precise cost cannot be calculated until
 each retiree applies for the service credit.
   Pursuant to Section 25 of the  Retirement  and  Social  Security  Law,
 those costs arising in the NYSLERS would be borne solely by the State of
 New  York. After the application deadline, a precise cost will be deter-
 mined (and billed to the State) based  on  those  benefiting  from  this
 provision.
   Those  costs  arising  in the NYSLPFRS would be shared by the State of
 New York and the participating employers in the NYSLPFRS  and  would  be
 spread over future billing cycles.
   Further,  we  anticipate  some  administrative  costs to implement the
 provisions of this legislation.
   Summary of relevant resources:
   Membership data as of March 31, 2022 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al  valuation.    Distributions and other statistics can be found in the
 2022 Report of the Actuary and the 2022 Annual  Comprehensive  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2020,
 2021, and 2022 Annual Report to the  Comptroller  on  Actuarial  Assump-
 tions,  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, 2022
 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 April 5, 2023, and intended for use only during
 the 2023 Legislative Session, is Fiscal Note No. 2023-134,  prepared  by
 the Actuary for the New York State and Local Retirement System.