S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8593
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 21, 2025
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- 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. 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
 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:
   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
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09124-02-5
 A. 8593                             2
 
 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).
 For  each  year  of additional service credit granted by this bill, Tier
 1-5 members would be required to pay 3% member contributions and Tier  6
 would pay 6% contributions.
   The provisions of Section 25 of the Retirement and Social Security Law
 shall not apply.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System (NYSLERS), the increased costs would be shared by  the
 State  of  New York and the local participating employers in NYSLERS. If
 this bill were enacted during the 2025 Legislative Session, it is  esti-
 mated  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 bill affects the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), the increased costs would  be  shared
 by  the  State  of  New  York  and  the local participating employers in
 NYSLPFRS. If this bill were enacted during the 2025 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.
 Through  December  31, 2024, approximately 12,200 members have purchased
 military service credit pursuant to Chapter 41 of the Laws of 2016, with
 a total cost of approximately $436 million. It is  estimated  that,  had
 this  proposal been law since 2016, approximately 8,400 of these members
 could have purchased a fourth year of military  service  credit  for  an
 additional cost of approximately $120 million.
   Summary of relevant resources:
   Membership  data as of March 31, 2024 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2024 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2024  Report  of the Actuary and the 2024 Annual Comprehensive Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2024
 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, 2024 New York State and Local Retirement System Financial Statements
 and Supplementary Information.
   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 24, 2025, and intended for use only  during
 the 2025 Legislative Session, is Fiscal Note No. 2025-98. As Chief Actu-
 ary of the New York State and Local Retirement System, I, Aaron Schottin
 Young,  hereby certify that this analysis complies with applicable Actu-
 arial Standards of Practice as well as the Code of Professional  Conduct
 and Qualification Standards for Actuaries Issuing Statements of Actuari-
 al Opinion of the American Academy of Actuaries, of which I am a member.