S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8987
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              August 13, 2025
                                ___________
 
 Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
   tee on Governmental Employees
 
 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.
                                                            LBD07976-02-5
              

 A. 8987                             2
 
 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 add a new Article 20-A to the  Retirement  and  Social
 Security  Law  to allow an active member of the New York State Teachers'
 Retirement System who is a disabled veteran to retire upon  the  attain-
 ment  of  at  least  age  55 and completion of thirteen or more years of
 service credit without reduction to their benefit for  early  retirement
 provided such member was certified by the United States Veterans' Admin-
 istration  or  a  military  department  as being permanently disabled in
 connection with military service. Such certificate should state that the
 veteran has been identified by  the  United  States  Veterans'  Adminis-
 tration  as  having one or more service-connected disabilities on a date
 prior to their date of retirement from  the  New  York  State  Teachers'
 Retirement System, the effective date of when such veteran became perma-
 nently  disabled  due  to their military service-connected disabilities,
 and that such military service-connected disability is  rated  at  sixty
 percent or more.
   It  is  not possible to accurately determine the total cost to the New
 York State Teachers' Retirement System because the  number  of  eligible
 active  members, their ages and the amount of service credited cannot be
 readily estimated. However, the cost per eligible member measured as the
 increase in the present value of benefit will range from 15% to over 3.5
 times final average salary, depending on  the  member's  age,  years  of
 service, and tier at retirement.
   Member data is from the System's most recent actuarial valuation files
 as of June 30, 2024, consisting of data provided by the employers to the
 Retirement System. The most recent data distributions and statistics can
 be  found  in  the System's Annual Report for fiscal year ended June 30,
 2024. System assets are as reported in the System's financial statements
 and can also be found in the System's Annual Report.  Actuarial  assump-
 tions  and  methods will be provided in the System's Actuarial Valuation
 Report as of June 30, 2024.
   The source of this estimate is Fiscal Note 2025-7 dated March 7,  2025
 prepared  by  the  Office of the Actuary of the New York State Teachers'
 Retirement System and is intended for use only during the 2025  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.
   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
 A. 8987                             3
 
 certified by the United States Veterans' Administration  or  a  military
 department as permanently disabled in connection with military service.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System (NYSLERS), if  enacted  during  the  2025  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 Cost             1 times           1.5 times       2 times
 Increase:                salary            salary          salary
 
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), if enacted during the  2025  Legisla-
 tive  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 Cost             1 times           2 times
 Increase:                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, 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 19, 2025, and intended for use only  during
 the 2025 Legislative Session, is Fiscal Note No. 2025-54. 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.