S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5618
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 9, 2023
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 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]  FOUR  years of service credit for up to
 [three] FOUR 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] FOUR 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]  FOUR  years of service credit for up to
 [three] FOUR 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
 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09065-02-3
 S. 5618                             2
              

 
 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 four years of service credit for up  to  four
 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.
   Insofar as this proposal affects the New York State and Local  Employ-
 ees'  Retirement System (NYSLERS), pursuant to Section 25 of the Retire-
 ment and Social Security Law, the increased costs would be borne entire-
 ly by the State of New York and would require an itemized  appropriation
 sufficient  to pay the cost of the provision. If enacted during the 2023
 legislative session, it is estimated that the past service cost will  be
 18%  (15% for Tier 6) of an affected member's compensation for each year
 of service credit that is purchased.
   Insofar as this proposal affects the New York State and  Local  Police
 and  Fire Retirement System (NYSLPFRS), all costs would be shared by the
 State of New York and the local participating employers in the NYSLPFRS.
 If enacted during the 2023 legislative session, it is estimated that the
 past service cost will be 23% (20% for Tier 6) of an  affected  member's
 compensation for each year of service credit that is purchased.
   Further,  we anticipate some additional administrative costs to imple-
 ment 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.
   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 March 3, 2023, and intended for use  only  during
 the  2023  Legislative  Session, is Fiscal Note No. 2023-78, prepared by
 the Actuary for the New York State and Local Retirement System.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5618--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 9, 2023
                                ___________
 
 Introduced  by  Sens.  THOMAS,  ADDABBO,  ASHBY,  COONEY, HARCKHAM, LIU,
   PALUMBO, RHOADS, SCARCELLA-SPANTON, TEDISCO, WALCZYK -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Civil  Service  and Pensions -- reported favorably from said committee
   and committed to the Committee on  Finance  --  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
   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]  FOUR  years of service credit for up to
 [three] FOUR 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] FOUR 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]  FOUR  years of service credit for up to
 [three] FOUR years of military duty, as defined in section  two  hundred
 forty-three  of  the  military  law,  if  the  member  (a) was honorably

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09065-06-3
              

 S. 5618--A                          2
 
 discharged from the military, or (b)  has  a  qualifying  condition,  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,  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. Notwithstanding any provision of law to the contrary, none of the
 provisions of this act shall be subject to the appropriation requirement
 of section 25 of the retirement and social security law.
   §  4.  This act shall take effect immediately; provided, however, 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:
   SUMMARY  OF  BILL: This proposed legislation, as it relates to members
 of the New York City Retirement Systems and Pension Funds (NYCRS), would
 amend Retirement and Social Security Law Section 1000  to  increase  the
 maximum  number  of  years  of military duty service credit that a NYCRS
 member may purchase from three years to four.
   Effective Date: Upon enactment.
   BACKGROUND: Currently, members of NYCRS may obtain service credit  for
 up  to  three  years of military duty upon application to the respective
 retirement system. Under the proposed legislation, the maximum number of
 such years that a NYCRS member may  purchase  would  be  increased  from
 three years to four years.
   Once  purchased,  eligible military service may increase pension bene-
 fits  in  addition  to  counting  towards  meeting  minimum  eligibility
 requirements.
   MEMBER  CONTRIBUTIONS: Eligible NYCRS members are required to contrib-
 ute, for each year of military service purchased, 3% (or 6% for  members
 who  first join on or after April 1, 2012) of such member's compensation
 earned during the 12 months of credited  service  immediately  preceding
 the date the member applies for military service credit.
   FINANCIAL  IMPACT - PRESENT VALUES: Based on census data and the actu-
 arial assumptions and methods described herein, the  enactment  of  this
 proposed legislation would increase the present value of future employer
 contributions  by  approximately  $18,400,  on average, for each year of
 military service purchased above three years and not greater  than  four
 years.
   FINANCIAL  IMPACT  -  ANNUAL EMPLOYER CONTRIBUTIONS: Enactment of this
 proposed legislation would increase employer contributions,  where  such
 amount  would  depend on the number of members affected as well as other
 characteristics including the age, years of service, and salary  history
 of each member.
   Based  on  the actuarial assumptions and methods described herein, the
 enactment of this proposed legislation is estimated to  increase  annual
 employer contributions by approximately $2,200 for each year of eligible
 military service purchased.
   As there is limited data currently available to estimate the number of
 members  who  might  purchase  between  three and four years of military
 service, the financial impact would be recognized at the  time  of  each
 event.  Changes  in  employer contributions have been estimated assuming
 that the increase in the present value of future employer  contributions
 will  be  financed  over  a closed 15-year period (14 payments under the
 One-Year Lag Methodology) using level dollar payments.
   With respect to the timing, increases in employer contributions  would
 depend  upon when members purchase eligible military service but, gener-
 S. 5618--A                          3
 
 ally, increased employer  contributions  will  first  occur  the  second
 fiscal year following the year in which service is purchased.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data of NYCRS members who have purchased up to three years  of  military
 service under Chapter 41 of the Laws of 2016 as of June 30, 2021.
   There is insufficient data available to estimate the number of members
 who  have more than three years of qualifying military service and could
 therefore potentially benefit from this proposed legislation. Therefore,
 the estimated financial impact has been calculated on a per event  basis
 equal  to  the increase in the present value of future employer contrib-
 utions for an average NYCRS member who has purchased an additional  year
 of  qualifying  military  service  under Chapter 41 of the Laws of 2016,
 which is currently limited to three years.
   ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
 been calculated based on the actuarial assumptions and methods used  for
 the Preliminary Fiscal Year 2024 employer contributions of NYCRS.
   Most  of  the  additional  contributions  associated with NYCRS active
 members who purchase service for military duty above  three  years,  but
 less  than  four  years,  are  expected  to be made to the New York City
 Police Pension Fund.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on the realization of the actuarial assumptions used, demograph-
 ics of the impacted population, and other factors  such  as  investment,
 contribution,  and other risks. If actual experience deviates from actu-
 arial assumptions, the actual costs could differ  from  those  presented
 herein.
   Costs  are also dependent on the actuarial methods used, and therefore
 different actuarial methods could produce different results. Quantifying
 these risks is beyond the scope of this Fiscal Note.
   Not measured in this Fiscal Note are the following:
   *  The  initial  additional  administrative  costs  to  implement  the
 proposed legislation.
   *  The  impact  of  this  proposed legislation on Other Postemployment
 Benefit costs.
   STATEMENT OF ACTUARIAL OPINION: I, Marek  Tyszkiewicz,  am  the  Chief
 Actuary  for,  and  independent of, the New York City Retirement Systems
 and Pension Funds. I am an Associate of the Society of Actuaries  and  a
 Member of the American Academy of Actuaries. I am a member of NYCERS but
 do  not  believe  it impairs my objectivity and I meet the Qualification
 Standards of the American Academy of Actuaries to render  the  actuarial
 opinion  contained  herein.  To  the  best  of my knowledge, the results
 contained  herein  have  been  prepared  in  accordance  with  generally
 accepted  actuarial  principles  and  procedures  and with the Actuarial
 Standards of Practice issued by the Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note  2023-60  dated  May  26,
 2023  was prepared by the Chief Actuary for the New York City Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2023 Legislative Session.
   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 four years of service credit for up to four
 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
 S. 5618--A                          4
 
 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.
   Insofar  as this proposal affects the New York State and Local Employ-
 ees' Retirement System (NYSLERS), all costs would be shared by the State
 of New York and the local participating employers  in  the  NYSLERS.  If
 enacted  during  the  2023 legislative session, it is estimated that the
 past service cost will be 18% (15% for Tier 6) of an  affected  member's
 compensation for each year of service credit that is purchased.
   Insofar  as  this proposal affects the New York State and Local Police
 and Fire Retirement System (NYSLPFRS), all costs would be shared by  the
 State of New York and the local participating employers in the NYSLPFRS.
 If enacted during the 2023 legislative session, it is estimated that the
 past  service  cost will be 23% (20% for Tier 6) of an affected member's
 compensation for each year of service credit that is purchased.
   Further, we anticipate some additional administrative costs to  imple-
 ment 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.
   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 21, 2023, and intended for use only during
 the 2023 Legislative Session, is Fiscal Note No. 2023-140,  prepared  by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  amend  subdivisions  1 and 4 of Section 1000 of the
 Retirement and Social Security Law to increase  the  maximum  number  of
 years  of  military  service  credit to four that a member may purchase.
 Currently, a member can purchase up to three years of  military  service
 credit provided such member did not receive a dishonorable discharge and
 was not discharged for bad conduct. To obtain such credit, a member must
 make  payments  as required by Section 1000 of the Retirement and Social
 Security Law. Tiers 1, 2, 3, 4 and 5 members are required to  pay  three
 percent  of  salary  earned during the twelve months of credited service
 immediately preceding the year in which a claim is made for each year of
 military service. Tier 6 members are required  to  pay  six  percent  of
 salary  earned  during the twelve months of credited service immediately
 preceding the year in which a claim is made for each  year  of  military
 service.
 S. 5618--A                          5
 
   It  is  not  possible  to determine the number of eligible current and
 future members, or the additional military service  credit  each  member
 may  purchase under this bill. Therefore, it is not possible to estimate
 the annual increase in the  employers'  cost  for  this  bill.  Whatever
 increase  in liability arises for service credited under this bill above
 that paid for by the member would be included in the cost that would  be
 shared by employers through the employer contribution rate.
   It is estimated that the cost, expressed as a percentage of a member's
 salary  for  the  additional  year  of service credit a member purchases
 under this bill is as follows:
      Cost per year of Service Purchased (as a percentage of the member's
 salary)
      Tier(s)               1-4       5         6
      Cost                  12.7%     11.4%     9.5%
      Member Contribution   3.0%      3.0%      6.0%
      offset
      Net cost to           9.7%      8.4%      3.5%
      participating
      employers
   Member data is from  the  System's  most  recent  actuarial  valuation
 files,  consisting  of  data provided by the employers to the Retirement
 System.  Data distributions and statistics can be found in the  System's
 Annual  Report.  System assets are as reported in the System's financial
 statements and can also be found in the System's Annual Report. Actuari-
 al assumptions and methods are provided in the System's Actuarial  Valu-
 ation Report.
   The  source of this estimate is Fiscal Note 2023-33 dated May 23, 2023
 prepared by the Office of the Actuary of the New  York  State  Teachers'
 Retirement  System and is intended for use only during the 2023 Legisla-
 tive Session. I, Richard A. Young, am the Chief Actuary for the New York
 State Teachers' Retirement System. I am a member of the American Academy
 of Actuaries and I meet the  Qualification  Standards  of  the  American
 Academy of Actuaries to render the actuarial opinion contained herein.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5618--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 9, 2023
                                ___________
 
 Introduced  by  Sens.  THOMAS,  ADDABBO,  ASHBY,  COONEY, HARCKHAM, LIU,
   PALUMBO, RHOADS, ROLISON, SCARCELLA-SPANTON, TEDISCO, WALCZYK --  read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee on Civil Service and Pensions  --  reported  favorably  from
   said  committee and committed to the Committee on Finance -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee -- 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
   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. Subdivision 4 of section 1000 of the retirement and social
 security law, as amended by chapter 41 of the laws of 2016,  is  amended
 to read as follows:
   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] FOUR 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] FOUR years  of  service  credit  for  up  to
 [three]  FOUR  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
 defined in section three hundred fifty of the  executive  law,  and  has

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09065-08-4
              

 S. 5618--B                          2
 
 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. Notwithstanding any provision of law to the contrary, none of the
 provisions of this act shall be subject to the appropriation requirement
 of section 25 of the retirement and social security law.
   § 4. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This  proposed  legislation, as it relates to members of the
 New York City  Retirement  Systems  and  Pension  Funds  (NYCRS),  would
 increase  the  maximum  number  of years of military duty service credit
 that a member may purchase from three years to four.
 
       ILLUSTRATION - INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                 by Fiscal Year for the first 25 years ($)
      Year      One Year of Service      One Year of Service
                   Purchased             Purchased Per Year
      2025         2,100                 2,100
      2026         2,100                 4,200
      2027         2,100                 6,300
      2028         2,100                 8,500
      2029         2,100                 10,700
      2030         2,100                 13,000
      2031         2,100                 15,300
      2032         2,100                 17,700
      2033         2,100                 20,100
      2034         2,100                 22,500
      2035         2,100                 25,000
      2036         2,100                 27,600
      2037         2,100                 30,200
      2038         2,100                 32,900
      2039             0                 33,500
      2040             0                 34,200
      2041             0                 34,900
      2042             0                 35,600
      2043             0                 36,300
      2044             0                 37,000
      2045             0                 37,800
      2046             0                 38,500
      2047             0                 39,300
      2048             0                 40,100
      2049             0                 40,900
    Employer contribution impact beyond Fiscal Year 2049 is not shown.
 
   The potential increases in employer contributions will be allocated to
 New York City and other applicable obligors of NYCRS.
 
           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                   as of June 30, 2023 ($ in Thousands)
      Present Value (PV)                 Per Year of
                                         Service Purchased
      PV of Benefits:                    20.2
      PV of Employee Contributions:      (2.8)
      PV of Employer Contributions:      17.4
      Unfunded Accrued Liabilities:      17.4
 S. 5618--B                          3
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
      Recognized as Ongoing Gain/Loss    Per Year of
                                         Service Purchased
      Number of Payments:                14
      Amortization Payment:              2.1 K
 
   CENSUS  DATA:  The  number  of members who will purchase an additional
 fourth year of military service  is  unknown.  The  estimates  presented
 herein  are  based  on  preliminary census data collected as of June 30,
 2023. The census data for the potentially impacted  population  used  to
 develop the average costs in this Fiscal Note is based on active members
 who have already purchased three years of military service and is summa-
 rized below.
 
                                    NYCRS
      Active Members
      - Number Count:               461
      - Average Age:                49.3
      - Average Service:            17.1
      - Average Salary:             117,900

   IMPACT ON MEMBER CONTRIBUTIONS: Eligible NYCRS members are required to
 contribute,  for  each year of military service purchased, 3% (or 6% for
 members who first join on or after  April  1,  2012)  of  such  member's
 compensation earned during the 12 months of credited service immediately
 preceding the date the member applies for military service credit.
   ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
 calculated based on the Revised 2021 Actuarial Assumptions  and  Methods
 of the impacted retirement systems.
   The  number  of  members  who  will  benefit  in  the future from this
 proposed legislation is unknown. The cost of this  proposed  legislation
 could vary greatly depending on the number of future members who benefit
 and, on their plan, length of service, age, and salary history.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the actuarial assumptions, methods,  and  models  used,  demo-
 graphics  of  the  impacted population and other factors such as invest-
 ment, contribution, and other risks. If actual experience deviates  from
 actuarial   assumptions,  the  actual  costs  could  differ  from  those
 presented herein. Quantifying these risks is beyond the  scope  of  this
 Fiscal Note.
   This  Fiscal  Note  is intended to measure pension-related impacts and
 does not include other potential costs (e.g., administrative  and  Other
 Postemployment Benefits).
   STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
 sky  are members of the Society of Actuaries and the American Academy of
 Actuaries. We are members of NYCERS but do not believe  it  impairs  our
 objectivity  and  we  meet  the  Qualification Standards of the American
 Academy of Actuaries to render the actuarial opinion  contained  herein.
 To  the  best  of  our knowledge, the results contained herein have been
 prepared in accordance with generally accepted actuarial principles  and
 procedures  and  with  the Actuarial Standards of Practice issued by the
 Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-24 dated  March  11,
 2024  was prepared by the Chief Actuary for the New York City Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2024 Legislative Session.
 S. 5618--B                          4
 
   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 four years of service credit for up  to  four
 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. Portions of the bill would become effective on  November
 10, 2023.
   Insofar  as this proposal affects the New York State and Local Employ-
 ees' Retirement System (NYSLERS), all costs would be shared by the State
 of New York and the local participating employers  in  the  NYSLERS.  If
 enacted  during  the  2024 Legislative Session, it is estimated that the
 past service cost will be 18% (15% for Tier 6) of an  affected  member's
 compensation for each year of service credit that is purchased.
   Insofar  as  this proposal affects the New York State and Local Police
 and Fire Retirement System (NYSLPFRS), all costs would be shared by  the
 State of New York and the local participating employers in the NYSLPFRS.
 If enacted during the 2024 Legislative Session, it is estimated that the
 past  service  cost will be 23% (20% for Tier 6) of an affected member's
 compensation for each year of service credit that is purchased.
   Further, we anticipate some additional administrative costs to  imple-
 ment the provisions of this legislation.
   The  exact  number of current and future members who could be affected
 by this legislation cannot be readily determined. Through  December  31,
 2023, approximately 11,200 members have purchased military service cred-
 it  pursuant  to  Chapter  41  of the Laws of 2016, with a total cost of
 approximately $400 million. It is estimated that, had this proposal been
 law  since  2016,  approximately  7,700  of  these  members  could  have
 purchased  a  fourth  year  of military service credit for an additional
 cost of approximately $110 million.
   Summary of relevant resources:
   Membership data as of March 31, 2023 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2023 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2023 Report of the Actuary and the 2023 Annual  Comprehensive  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2023
 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, 2023
 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 March 1, 2024, and intended for use only during
 the 2024 Legislative Session, is Fiscal Note No.  2024-64,  prepared  by
 the Actuary for the New York State and Local Retirement System.