S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9476

                          I N  A S S E M B L Y

                               May 1, 2014
                               ___________

Introduced by M. of A. ABBATE -- read once and referred to the Committee
  on Governmental Employees

AN ACT to amend the retirement and social security law, in relation to a
  partial lump sum option at retirement

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The opening paragraph of section 1100 of the retirement and
social security law, as added by chapter 735 of the  laws  of  2006,  is
amended to read as follows:
  Certain  eligible  members  of the New York state and local police and
fire retirement system, AND SHERIFFS, UNDERSHERIFFS, DEPUTY SHERIFFS AND
CORRECTION OFFICERS EMPLOYED BY  THE  COUNTY  OF  NASSAU  may  elect  an
optional  form  of retirement pursuant to the terms of this article that
provides for a partial lump sum at retirement  with  a  reduced  service
retirement allowance as hereinafter provided:
  S 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would  allow Nassau County sheriffs, undersheriffs, deputy
sheriffs and correction officers who file for a  service  retirement  to
elect  an  optional form of retirement which would provide for a partial
lump sum payment at retirement, and a smaller annual  retirement  allow-
ance  thereafter.  Such  lump  sum shall not be eligible for any cost of
living adjustments. A member who  files  for  service  retirement  after
being  eligible  to  retire  for  1, 2, 3, 4 or 5 or more years shall be
eligible to receive a partial lump sum of up to 5%,  10%,  15%,  20%  or
25%,  respectively, of the present value of their actuarially determined
retirement allowance and a smaller annual retirement allowance thereaft-
er.
  If this bill is enacted, there would be administrative  costs  associ-
ated with redesigned estimate and option forms. There would not be costs
associated  with  the  lump  sum payment options since payments would be
determined on an actuarially equivalent basis. Should  future  proposals
exceed  25%,  further  analysis  will be necessary to determined whether
there may be costs due to adverse selection.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD14857-03-4

A. 9476                             2

  Summary of relevant resources:
  The  membership  data  used  in  measuring  the impact of the proposed
change was the same as that used in the March 31, 2013  actuarial  valu-
ation.    Distributions  and  other  statistics can be found in the 2013
Report of the  Actuary  and  the  2013  Comprehensive  Annual  Financial
Report.
  The  actuarial assumptions and methods used are described in the 2010,
2011, 2012 and 2013  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, 2013
New York State and Local  Retirement  System  Financial  Statements  and
Supplementary Information.
  I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
  This  estimate, dated April 29, 2014, and intended for use only during
the 2014 Legislative Session, is Fiscal Note No. 2014-115,  prepared  by
the  Actuary  for  the  New  York  State and Local Employees' Retirement
System.