S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4905--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 16, 2023
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- 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
   calculating the  earnings  limitations  for  retired  police  officers
   employed part-time by certain municipalities
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 212 of the retirement and social  security  law  is
 amended by adding a new subdivision 4 to read as follows:
   4.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS
 SECTION, SUCH EARNINGS LIMITATIONS SHALL NOT APPLY TO A  RETIRED  POLICE
 OFFICER EMPLOYED PART-TIME AS A POLICE OFFICER IN A VILLAGE OR TOWN WITH
 A POPULATION OF LESS THAN TWENTY-FIVE THOUSAND AS DETERMINED BY THE MOST
 RECENT  FEDERAL DECENNIAL CENSUS, WHERE AT LEAST SEVENTY PERCENT OF SUCH
 VILLAGE OR TOWN'S  ACTIVE-DUTY  POLICE  FORCE,  NOT  INCLUDING  CIVILIAN
 STAFF,  CONSISTS  OF  PART-TIME  OFFICERS. SUCH PART-TIME POLICE OFFICER
 SHALL BE PERMITTED TO WORK UP  TO  FIVE  HUNDRED  TWENTY  HOURS  IN  ANY
 CONSECUTIVE SIX-MONTH PERIOD IN A CALENDAR YEAR BASED ON HOURS WORKED AS
 REPORTED  BY  THE VILLAGE OR TOWN ON A MONTHLY BASIS, WITH NO SUSPENSION
 OR DIMINUTION OF RETIREMENT ALLOWANCE. ANY VILLAGE OR TOWN THAT HIRES  A
 RETIRED  POLICE  OFFICER  PURSUANT TO THIS SUBDIVISION SHALL REPORT SUCH
 OFFICER'S DAYS WORKED AND SALARY EARNED TO THE NEW YORK STATE AND  LOCAL
 POLICE AND FIRE RETIREMENT SYSTEM ON A MONTHLY BASIS.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   Insofar  as  it  would  affect the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), this bill would allow retired  police
 officers  to continue to receive their full retirement benefit even when
 reemployed as a police officer on a part-time basis for up to 520  hours
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09569-05-3
              

 S. 4905--A                          2
 
 in any consecutive six-month period, provided that such employment is by
 a  village  or  town  where  (1)  the  municipal population is less than
 25,000, and (2) at least 70% of the police force is employed on a  part-
 time basis. Currently, the post-retirement earnings limit is $35,000.
   If  this  bill  were  enacted during the 2023 legislative session, the
 direct cost incurred would be  the  retiree's  post-retirement  earnings
 more  than  $35,000  each  calendar year, not to exceed the full pension
 benefit paid by the NYSLPFRS during that period.
   The number of members and retirees  who  could  be  affected  by  this
 legislation  cannot  be readily determined. For an average retiree hired
 pursuant to this proposal, an annual cost of $40,000 is expected.
   In addition to the direct costs quoted above, insofar as this proposal
 disrupts the usual pattern and timing of employee turnover (that is,  if
 members  retire  earlier than assumed and participating employers hire a
 retiree instead of a new billable member),  shifts  in  member  behavior
 could  generate losses that increase the average billing rate in 20-year
 and 25-year service-based plans from 27.8% to 30.8%. The actual increase
 in billing rates will depend upon member and employer utilization,  with
 the rate above representing an upper limit.
   Further,  we  anticipate  additional administrative costs to implement
 the provisions of this legislation.
   Based on the 2020 census, approximately 95% of towns and  villages  in
 New  York State would satisfy the population requirement associated with
 this proposal. These employers represent approximately 20% of the  total
 NYSLPFRS membership.
   All  costs will be shared by the State of New York and all participat-
 ing employers in the NYSLPFRS and spread  over  future  billing  cycles.
 Since  this  proposal exclusively benefits retirees, the increased costs
 are primarily attributable to retirees from Tiers 1 through 3.  Approxi-
 mately  half  the  contributions  required to fund this proposal will be
 collected on salary reported for current members of Tier 6.
   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 17, 2023, and intended for use only during
 the 2023 Legislative Session, is Fiscal Note No.  2023-89,  prepared  by
 the Actuary for the New York State and Local Retirement System.