Senate Bill S7115

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7115
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               April 1, 2025
                                ___________
 
 Introduced  by Sen. SCARCELLA-SPANTON -- 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,  the  education
   law  and  the administrative code of the city of New York, in relation
   to supplemental military retirement allowances for members  of  public
   retirement systems of the state
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1000 of the retirement and social security  law  is
 amended by adding a new subdivision 8-a to read as follows:
   8-A.  A  PERSON  WHO  RETIRED  PRIOR TO MAY THIRTY-FIRST, TWO THOUSAND
 SEVENTEEN AND WHO WOULD HAVE BEEN ENTITLED TO  THE  PROVISIONS  OF  THIS
 SECTION,  MAY  MAKE  APPLICATION TO SUCH RETIREMENT SYSTEM NO LATER THAN
 DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE FOR A SUPPLEMENTAL MILI-
 TARY RETIREMENT ALLOWANCE PURSUANT TO THIS  SUBDIVISION.    THE  SUPPLE-
 MENTAL  RETIREMENT  ALLOWANCE  PROVIDED  BY THIS SUBDIVISION SHALL BE IN
 LIEU OF ANY BENEFIT OTHERWISE PROVIDED PURSUANT TO THIS SECTION AND  ANY
 CREDIT  GRANTED  FOR MILITARY SERVICE WITH ANY RETIREMENT SYSTEM OF THIS
 STATE PURSUANT TO ANY OTHER SECTION OF LAW.  UPON RECEIPT OF AN APPLICA-
 TION, THE RETIREMENT SYSTEM SHALL DETERMINE THE AMOUNT OF SERVICE CREDIT
 SUCH PERSON WOULD HAVE BEEN ENTITLED TO RECEIVE PURSUANT TO SUBDIVISIONS
 ONE AND TWO OF THIS SECTION, SUBJECT TO  THE  LIMITATIONS  CONTAINED  IN
 THIS SECTION. THE SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL EQUAL
 THE  RETIREMENT  ALLOWANCE  OF  SUCH  PERSON,  COMPUTED WITHOUT OPTIONAL
 MODIFICATION AND NOT TO EXCEED FIFTEEN THOUSAND DOLLARS,  MULTIPLIED  BY
 TWENTY-FIVE ONE-HUNDREDTHS OF ONE PERCENT PER MONTH OF THE SERVICE CRED-
 IT  AS  DETERMINED  PURSUANT  TO  THIS SUBDIVISION.   ONE-TWELFTH OF THE
 SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL BE ADDED TO THE RETIRE-
 MENT ALLOWANCE OF SUCH PERSON EACH MONTH. THE BENEFIT  PAYABLE  PURSUANT
 TO  THIS SECTION SHALL COMMENCE ON THE NEXT RETIREMENT ALLOWANCE PAYABLE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08346-02-5
              

 S. 7115                             2
 
 AT LEAST THIRTY DAYS AFTER THE  RECEIPT  OF  AN  APPLICATION  FROM  SUCH
 PERSON. FOR THE PURPOSES OF THIS SUBDIVISION, RETIREMENT ALLOWANCE SHALL
 EXCLUDE  ANY  ANNUITY  DERIVED  FROM VOLUNTARY CONTRIBUTIONS MADE BY THE
 INDIVIDUAL,  EXCEPT  THOSE  MADE PURSUANT TO ELECTIONS UNDER SUBDIVISION
 ONE OF SECTION FIVE HUNDRED ELEVEN-A OR PARAGRAPH C OF SUBDIVISION THREE
 OF SECTION FIVE HUNDRED SIXTEEN OF THE EDUCATION LAW, BUT SHALL  INCLUDE
 ANY  COST OF LIVING ADJUSTMENT DERIVED FROM SECTIONS SEVENTY-EIGHT-A AND
 THREE HUNDRED SEVENTY-EIGHT-A OF THIS CHAPTER OR  SECTION  FIVE  HUNDRED
 THIRTY-TWO-A  OF  THE EDUCATION LAW, AS APPLICABLE.  THE BENEFIT PAYABLE
 PURSUANT TO THIS SUBDIVISION SHALL  BE  PAYABLE  FOR  THE  LIFE  OF  THE
 RETIRED  MEMBER  ONLY,  EXCEPT  THAT  THE SURVIVING SPOUSE OF A DECEASED
 MEMBER WHO RETIRED UNDER AN OPTION PROVIDING A BENEFIT TO  BE  CONTINUED
 FOR  LIFE TO THE SURVIVING SPOUSE AFTER THE DEATH OF THE MEMBER SHALL BE
 ENTITLED TO RECEIVE FIFTY  PERCENT  OF  THE  MONTHLY  BENEFIT  THAT  THE
 RETIRED  MEMBER  WOULD  BE  RECEIVING  PURSUANT  TO THIS SUBDIVISION, IF
 LIVING, COMMENCING WITH THE NEXT RETIREMENT ALLOWANCE PAYABLE  AT  LEAST
 THIRTY  DAYS AFTER RECEIPT OF AN APPLICATION FROM THE RETIRED MEMBER FOR
 THE BENEFIT OR PAYABLE AFTER THE DEATH OF THE RETIRED MEMBER.
   § 2. Subdivision b of section 78-a of the retirement and social  secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:
   b. Said cost-of-living adjustment shall be a percentage of the  annual
 retirement   allowance  otherwise  payable,  computed  without  optional
 modification, but including any benefit derived from  subdivision  f  of
 this  section  [and], any prior year's cost-of-living adjustment derived
 from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT
 ALLOWANCE DERIVED FROM SUBDIVISION EIGHT-A OF SECTION  ONE  THOUSAND  OF
 THIS  CHAPTER.  Said  percentage  is  set forth in subdivision d of this
 section.
   § 3. Subdivision b of section 378-a of the retirement and social secu-
 rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
 read as follows:
   b.  Said cost-of-living adjustment shall be a percentage of the annual
 retirement  allowance  otherwise  payable,  computed  without   optional
 modification,  but  including  any benefit derived from subdivision f of
 this section [and], any prior year's cost-of-living  adjustment  derived
 from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT
 ALLOWANCE  DERIVED  FROM  SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF
 THIS CHAPTER.  Said percentage is set forth in  subdivision  d  of  this
 section.
   §  4. Subdivision b of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   b. Said cost-of-living adjustment shall be a percentage of the  annual
 retirement   allowance  otherwise  payable,  computed  without  optional
 modification, excluding any annuity derived from voluntary contributions
 made by members, except those made pursuant to elections under  subdivi-
 sion  one of section five hundred eleven-a or paragraph c of subdivision
 three of section five hundred sixteen of this article, but including any
 benefit derived from subdivision f of  this  section  [and],  any  prior
 year's  cost-of-living  adjustment  derived  from  this  section AND THE
 AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT  ALLOWANCE  DERIVED  FROM
 SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THE RETIREMENT AND SOCIAL
 SECURITY  LAW.  Said  percentage  is  set forth in subdivision d of this
 section.
 S. 7115                             3
 
   § 5. Subdivision b of section 13-696 of the administrative code of the
 city of New York, as added by chapter  125  of  the  laws  of  2000,  is
 amended to read as follows:
   b.  Said cost-of-living adjustment shall be a percentage of the annual
 fixed retirement allowance otherwise payable, computed without  optional
 modification,  but  including  any benefit derived from subdivision f of
 this section [and], any prior year's cost-of-living  adjustment  derived
 from  this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY ALLOWANCE
 DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THE  RETIRE-
 MENT  AND SOCIAL SECURITY LAW.  Said percentage is set forth in subdivi-
 sion d of this section.
   § 6. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend Section 1000 of the Retirement and Social  Secu-
 rity  Law  to  allow retirees of the New York State and Local Retirement
 Systems to apply for a supplemental pension benefit. The amount  of  the
 supplemental  benefit  would  be  the  retiree's  current  benefit up to
 $15,000 times 3% for each year of military service up  to  three  years,
 that was not credited prior to retirement. The retiree must have retired
 prior  to May 31, 2017. Half of the supplement would continue to be paid
 to a spousal beneficiary collecting a lifetime benefit.
   Applications must be filed before January 1,  2026.  Payments  of  the
 supplemental benefit begin with the first monthly pension payment issued
 at  least  30  days  after  receipt  of  the  application,  should it be
 approved.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System  (NYSLERS),  pursuant to Section 25 of the Retirement
 and Social Security Law, the increased costs would be borne entirely  by
 the State of New York and would require an itemized appropriation suffi-
 cient to pay the cost of the provision. If this bill were enacted during
 the  the  2025 Legislative Session, the increase in the present value of
 benefits would be approximately $55.8 million.
   In NYSLERS, this benefit improvement will be funded entirely by  bill-
 ing  a  past  service  cost to cover retrospective benefit increases. To
 fund these retrospective costs, the State of New York will  be  required
 to pay $62.3 million (including interest) as of March 1, 2026.
   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 the
 NYSLPFRS.   If this  bill  were  enacted  during  the  2025  Legislative
 Session, the increase in the present value of benefits would be approxi-
 mately $26.3 million.
   NYSLPFRS          Increase in present   Increase in required
                      value of benefits        contributions
   Pensioners             $ 26.3 mn             $ 0.0 mn
   Actives Tiers 1-5      $ 0.0 mn              $ 10.8 mn
   (Closed)
   Actives Tier 6         $ 0.0 mn              $ 15.5 mn
   (Open)
     Total                $ 26.3 mn             $ 26.3 mn
 
   In the NYSLPFRS, this benefit improvement will be funded by increasing
 the  billing  rates  charged  annually  to  cover both retrospective and
 prospective benefit increases. The annual contribution required  of  all
 participating  employers  in  NYSLPFRS  is  0.1%  of billable salary, or
 approximately $870,000 to the State of New York and  approximately  $3.8
 S. 7115                             4
 
 million to the local participating employers. This permanent annual cost
 will  vary in subsequent billing cycles with changes in the billing rate
 and salary of the affected members.
   The exact number of retirees who could be affected by this legislation
 cannot be readily determined.
   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 7, 2025, and intended for use only during
 the 2025 Legislative Session, is Fiscal Note No. 2025-75. 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.