S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8053
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2025
                                ___________
 
 Introduced  by  Sen.  ASHBY  -- 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
   military service qualifying for military service credit
 
   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, subdivision 1 as amended by chapter 585 of the laws
 of  2022 and subdivision 4 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 years of service credit for up to three 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 mili-
 tary, or (b) has a qualifying condition, as defined  in  section  [three
 hundred  fifty]  ONE  of the [executive] VETERANS' SERVICES 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] ONE of the [executive] VETERANS' SERVICES law, and
 has received a discharge other than bad  conduct  or  dishonorable  from
 such service.
   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,  EXCLUDING
 SERVICE  CREDIT GRANTED UNDER SECTION TWO HUNDRED FORTY-TWO OF THE MILI-
 TARY LAW, exceed a total of three years.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill amends Section 1000 of the Retirement  and  Social  Security
 Law  to  reference Section 1 of the Veterans' Services Law for the defi-
 nitions of qualifying condition and discharged LGBT  veteran.  It  would
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08369-03-5
              

 S. 8053                             2
 
 also exempt service credit granted under Section 242 of the Military Law
 from  the three-year limit on military service which can be purchased as
 service credit.
   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                                 12.5%  11.2% 9.7%
         Member Contribution offset           3.0%   3.0%  6.0%
         Net cost to participating employers  9.5%   8.2%  3.7%

   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 2025-13 dated March 21,
 2025 prepared by the Office of the Actuary of the New York State  Teach-
 ers'  Retirement  System  and  is  intended for use only during the 2025
 Legislative Session. I, Richard A. Young, am the Chief Actuary  for  the
 New  York State Teachers' Retirement System. I am a member of the Ameri-
 can 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 individuals who are eligible for service  credit
 under  Section  1000 of the Retirement and Social Security Law (RSSL) to
 purchase up to three years of service credit  without  consideration  of
 service purchased under §242 of the Military Law. Currently, the maximum
 of  three  years  allowed  under  §1000  of  the RSSL is reduced for any
 service credited under §242 of the Military Law.
   Insofar as this proposal affects the New York State and Local  Employ-
 ees'  Retirement  System  (NYSLERS), pursuant to Section 25 of the RSSL,
 all increased costs would be borne entirely by the State of New York and
 would require an annual itemized appropriation  sufficient  to  pay  the
 costs of this provision. If enacted during the 2025 Legislative Session,
 it  is  estimated  that  such  costs  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 NYSLPFRS. If
 enacted during the 2025 Legislative Session, it is  estimated  that  the
 S. 8053                             3
 
 past  service  cost will be 22% (19% 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.
   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  February  24,  2025, and intended for use only
 during the 2025 Legislative Session, is  Fiscal  Note  No.  2025-70.  As
 Chief  Actuary  of  the  New  York State and Local Retirement System, I,
 Aaron Schottin Young, hereby certify that this  analysis  complies  with
 applicable  Actuarial  Standards  of  Practice  as  well  as the Code of
 Professional Conduct and Qualification Standards for  Actuaries  Issuing
 Statements of Actuarial Opinion of the American Academy of Actuaries, of
 which I am a member.