The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 4153                                                  A. 3435
 
                        2023-2024 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 IN  SENATE  --  Introduced  by  Sens.  THOMAS, SKOUFIS -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Civil Service and Pensions
 
 IN ASSEMBLY -- Introduced by M. of A. SILLITTI -- read once and referred
   to the Committee on Governmental Employees

 AN  ACT  to amend the retirement and social security law, in relation to
   increasing the amount of years of military service credit a member may
   purchase
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivisions 1 and 4 of section 1000 of the retirement and
 social security law, as amended by chapter 41 of the laws of  2016,  are
 amended to read as follows:
   1.  A member, upon application to such retirement system, may obtain a
 total not to exceed [three] TEN  years  of  service  credit  for  up  to
 [three]  TEN  years  of military duty, as defined in section two hundred
 forty-three of the military law, if the member was honorably  discharged
 from the military.
   4. In no event shall the credit granted pursuant to this section, when
 added  to credit granted for military service with any retirement system
 of this state pursuant to this or any other provision of law,  exceed  a
 total of [three] TEN years.
   §  2. Subdivision 1 of section 1000 of the retirement and social secu-
 rity law, as amended by chapter 585 of the laws of 2022, is  amended  to
 read as follows:
   1.  A member, upon application to such retirement system, may obtain a
 total not to exceed [three] TEN  years  of  service  credit  for  up  to
 [three]  TEN  years  of military duty, as defined in section two hundred
 forty-three of the  military  law,  if  the  member  (a)  was  honorably
 discharged  from  the  military,  or  (b) has a qualifying condition, as

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01914-02-3

 S. 4153                             2                            A. 3435
 
 defined in section three hundred fifty of the  executive  law,  and  has
 received  a  discharge  other than bad conduct or dishonorable from such
 service, or (c) is a discharged LGBT  veteran,  as  defined  in  section
 three  hundred  fifty of the executive law, and has received a discharge
 other than bad conduct or dishonorable from such service.
   § 3. This act shall take effect immediately; provided that section two
 of this act shall take effect on the same date and in the same manner as
 chapter 585 of the laws of 2022, takes effect.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend the current military law to allow for  a  member
 to  obtain  up  to  a total of ten years of service credit for up to ten
 years of military duty if  the  member  was  honorably  discharged.  The
 current  maximum  is three years of service credit. Members must have at
 least five years of credited service (not including  military  service).
 Tier 1-5 members would be required to make a payment of three percent of
 their  most  recent  compensation  per year of additional service credit
 granted by this bill. Tier 6 members would be required to make a payment
 of six percent of their most recent compensation per year of  additional
 service credit.
   If this bill is enacted, insofar as this proposal affects the New York
 State  and Local Employees' Retirement System (NYSLERS), it is estimated
 that the past service cost will be 20% (17% for Tier 6) of  an  affected
 member's compensation for each year of service credit that is purchased.
 For  the  NYSLERS, this cost would be borne entirely by the State of New
 York.
   Insofar as this proposal affects the New York State and  Local  Police
 and  Fire  Retirement  System  (NYSLPFRS), it is estimated that the past
 service cost will be 29% (26%  for  Tier  6)  of  an  affected  member's
 compensation  for each year of service credit that is purchased. For the
 NYSLPFRS, this cost would be shared by the State of  New  York  and  the
 participating employers of the NYSLPFRS.
   The  exact  number  of  current  members as well as future members who
 could be affected by this legislation cannot be readily determined.
   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  January  25,  2023,  and intended for use only
 during the  2023  Legislative  Session,  is  Fiscal  Note  No.  2023-25,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.