Senate Bill S7570

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7570
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               June 7, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the retirement and social security law, in  relation  to
   providing for early retirement without a pension reduction for certain
   disabled veterans

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The retirement and social security law is amended by adding
 a new article 20-A to read as follows:
 
                               ARTICLE 20-A
                     DISABLED VETERAN EARLY RETIREMENT
 SECTION 1005. DISABLED VETERAN EARLY RETIREMENT.
   § 1005. DISABLED VETERAN EARLY RETIREMENT. 1. NOTWITHSTANDING ANY  LAW
 TO THE CONTRARY, A MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE STATE, AS
 DEFINED  IN SUBDIVISION TWENTY-THREE OF SECTION FIVE HUNDRED ONE OF THIS
 CHAPTER, WHO IS A DISABLED VETERAN MAY RETIRE WITHOUT REDUCTION OF THEIR
 RETIREMENT BENEFIT UPON THEIR ATTAINMENT OF AT LEAST FIFTY-FIVE YEARS OF
 AGE AND COMPLETION OF AT LEAST THIRTEEN YEARS  OF  CREDITED  SERVICE  IN
 SUCH  RETIREMENT  SYSTEM.  AS  USED  IN THIS SECTION, THE TERM "DISABLED
 VETERAN" MEANS A VETERAN WHO IS CERTIFIED BY THE UNITED STATES VETERANS'
 ADMINISTRATION OR A MILITARY DEPARTMENT AS ENTITLED TO RECEIVE DISABILI-
 TY PAYMENTS UPON THE CERTIFICATION OF SUCH VETERANS' ADMINISTRATION OR A
 MILITARY DEPARTMENT  FOR  A  SERVICE-CONNECTED  DISABILITY  INCURRED  OR
 AGGRAVATED  BY  THE  VETERAN  IN THE LINE OF DUTY IN THE ACTIVE MILITARY
 SERVICE OF THE UNITED STATES, AS DEFINED IN SECTION ONE OF THE  MILITARY
 LAW,  AND WHOSE DISABILITY IS IN EXISTENCE AT THE TIME OF RETIREMENT. TO
 BE ELIGIBLE UNDER THIS SECTION, A MEMBER MUST  MAKE  APPLICATION  BEFORE
 THE  EFFECTIVE  DATE  OF  RETIREMENT. SUCH DISABILITY SHALL BE DEEMED IN
 EXISTENCE AT SUCH TIME OF RETIREMENT  IF  THE  CERTIFICATE  SHALL  STATE
 AFFIRMATIVELY  THAT  SUCH  VETERAN HAS BEEN IDENTIFIED BY SUCH VETERANS'
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03609-04-3
              

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 ADMINISTRATION AS HAVING ONE OR MORE SERVICE-CONNECTED DISABILITIES ON A
 DATE PRIOR TO THE DATE OF RETIREMENT, THE EFFECTIVE DATE  OF  WHEN  SUCH
 VETERAN BECAME PERMANENTLY DISABLED DUE TO THEIR SERVICE-CONNECTED DISA-
 BILITIES,  AND  THAT SUCH SERVICE-CONNECTED DISABILITY IS RATED AT SIXTY
 PERCENTUM OR MORE.
   2. ALL COSTS FOR THE EARLY RETIREMENT OF A MEMBER WHO  IS  A  DISABLED
 VETERAN  PURSUANT  TO  THIS  SECTION  SHALL BE PAID BY THE STATE AND ALL
 EMPLOYERS WHICH PARTICIPATE IN THE RETIREMENT  SYSTEM  FROM  WHICH  SUCH
 MEMBER RETIRES.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow members of the New York State and Local  Retire-
 ment System (NYSLRS) to retire without early age reduction provided that
 the  member  is  at least age 55 with 13 years of service credit and was
 certified by the United States Veterans' Administration  or  a  military
 department as permanently disabled in connection with military service.
   Insofar as this bill would affect the New York State and Local Employ-
 ees' Retirement System (NYSLERS), if enacted during the 2023 legislative
 session, the cost will depend upon the applicant's age, service, salary,
 plan, and any benefit type otherwise payable.
 
    NYSLERS Membership:       Tiers 2 - 4     Tier 5        Tier 6
    Average Increased Cost:   1 times         1.5 times     2 times
                               salary          salary        salary
 
   Insofar  as this bill would affect the New York State and Local Police
 and Fire Retirement System (NYSLPFRS), if enacted during the 2023 legis-
 lative session, the cost will depend upon the applicant's age,  service,
 salary, plan, and any benefit type otherwise payable.
 
    NYSLPFRS Membership:      Tiers 2 - 5     Tier 6
    Average Increased Cost:   1 times         2 times
                               salary          salary
 
   Further,  we  anticipate  some  administrative  costs to implement the
 provisions of this legislation.
   The exact number of current members as  well  as  future  members  who
 could  be affected by this legislation cannot be readily determined. All
 costs will be shared by the State of  New  York  and  all  participating
 employers in the NYSLRS and spread over future billing cycles.
   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.
 S. 7570                             3
 
   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 27, 2023, and intended for use only during
 the 2023 Legislative Session, is Fiscal Note No.  2023-27,  prepared  by
 the Actuary for the New York State and Local Retirement System.