Senate Bill S10333

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10333
 
                             I N  S E N A T E
 
                               May 14, 2026
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to authorize Mike Hartnett to apply for military  service  credit
   in the New York city fire pension fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Notwithstanding  subdivision  5  of  section  1000  of  the
 retirement  and  social security law, Mike Hartnett, a retired member of
 the New York city fire department, who was on active duty in the  United
 States  Army  from July 7, 1964 until July 7, 1967, shall be eligible to
 apply for military service credit, to be applied  retroactively  to  the
 date of his retirement, in the New York city fire pension fund as other-
 wise  provided pursuant to the provisions of section 1000 of the retire-
 ment and social security law. To obtain such credit Mr.  Hartnett  shall
 pay  the  New  York city fire pension fund a sum equal to the product of
 the number of years of military service he served, and three percent  of
 Mr.  Hartnett's  compensation  earned during the last twelve consecutive
 months of credited service preceding the date of his retirement.    Such
 military  service  credit  shall be applied retroactively to the date of
 Mr. Hartnett's retirement for purposes of computing his retirement bene-
 fit. Any increase in his retirement allowance resulting from such recom-
 putation shall be payable retroactively to the date of  his  retirement,
 less any retirement benefits previously paid.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This  proposed  legislation  would  allow Mike Hartnett, who
 retired from the New York City Fire Pension Fund (FIRE) with an Accident
 Disability Retirement, to purchase approximately seven months  of  mili-
 tary service credit, and to receive the resulting increase in retirement
 benefits retroactive to his original retirement date.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                 by Fiscal Year for the first 25 years ($)
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13541-04-6
              

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                     Year      FIRE
 
                     2027        0
                     2028        15,400
                     2029        0
                     2030        0
                     2031        0
                     2032        0
                     2033        0
                     2034        0
                     2035        0
                     2036        0
                     2037        0
                     2038        0
                     2039        0
                     2040        0
                     2041        0
                     2042        0
                     2043        0
                     2044        0
                     2045        0
                     2046        0
                     2047        0
                     2048        0
                     2049        0
                     2050        0
                     2051        0
 
   The entire increase in employer contributions will be allocated to New
 York City.
   PRESENT  VALUE  OF  BENEFITS:  The  Present  Value  of Benefits is the
 discounted expected value of benefits paid to  current  members  if  all
 assumptions are met.
 
         EXPECTED INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
                          as of June 30, 2026 ($)
 
              Present Value (PV)                 FIRE

              (1) PV of Employer Contributions:  13,900
              (2) PV of Employee Contributions:  2,000
              Total PV of Benefits (1) + (2):    16,000
 
   UNFUNDED  ACCRUED  LIABILITY  (UAL): Actuarial Accrued Liabilities are
 the portion of the Present Value of Benefits allocated to past  service.
 For  purposes  of this Fiscal Note, UAL attributable to inactive members
 was recognized immediately.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                   FIRE
           Increase (Decrease) in UAL:             13,900
           Number of Payments:                     1
           Amortization Payment:                   15,400
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   CENSUS DATA: The estimates presented herein are based  on  preliminary
 census  data  collected  as  of  June  30, 2025. The census data for the
 impacted population is summarized below.
 
                                                   FIRE
           Receiving Members
           - Number Count:                         1
           - Average Age:                          83.0
 
   IMPACT ON MEMBER BENEFITS: Mr. Hartnett retired with an Accident Disa-
 bility  Retirement  from  FIRE on July 7, 1999, and previously served on
 active duty in the United States Army from July  7,  1964,  to  July  7,
 1967.    As of June 30, 2025, Mr. Hartnett receives an annual pension of
 $126,975 per year payable under the maximum form of payment (i.e., paya-
 ble to him as long as he is alive).
   Based on information  provided  by  FIRE,  Mr.  Hartnett  has  already
 purchased  approximately  two  years and five months of military service
 credit, which is already reflected in his current  annual  pension.  The
 proposed  legislation  would entitle him to purchase an additional seven
 months of service, up to a maximum of  three  years  of  total  military
 service.
   If  Mr.  Hartnett purchases the additional service under this proposed
 legislation, his annual pension would increase by approximately $477 per
 year to a total of $127,452. This annual increase would  apply  prospec-
 tively  as  well as retroactively, less any payments previously made, to
 his original retirement date.
   The cost to purchase these additional seven months of service would be
 a one-time payment of approximately $2,049.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems.
   For purposes of calculating the impact of the proposed legislation, it
 has been assumed that the retroactive increase in benefits would be paid
 without interest.
   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). This Fiscal Note does not reflect any  chapter
 laws that may have been enacted during the current legislative session.
   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 2026-71 dated  April  24,
 2026  was prepared by the Chief Actuary for the New York City Retirement
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 Systems and Pension Funds and is intended for use only during  the  2026
 Legislative Session.