S T A T E O F N E W Y O R K
________________________________________________________________________
6612--B
2015-2016 Regular Sessions
I N A S S E M B L Y
March 27, 2015
___________
Introduced by M. of A. ABBATE, GOLDFEDER, CERETTO, HAWLEY, PALUMBO,
GIGLIO -- Multi-Sponsored by -- M. of A. MARKEY -- read once and
referred to the Committee on Governmental Employees -- ordered to a
third reading -- committed to the Committee on Governmental Employees
in accordance with Assembly Rule 3, sec. 2 -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee -- again reported from said committee with amendments,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the retirement and social security law, in relation to
providing county correction officers with a special optional twenty
year retirement plan
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 14-C to read as follows:
ARTICLE 14-C
OPTIONAL RETIREMENT PLAN FOR COUNTY CORRECTION OFFICERS OR DEPUTY
SHERIFFS PERFORMING AS CORRECTION OFFICERS
SECTION 561. DEFINITIONS.
562. OPTIONAL TWENTY YEAR RETIREMENT PLAN FOR CERTAIN MEMBERS
WHOSE EMPLOYER ELECTS TO PROVIDE SAME.
563. ADDITIONAL PENSION BENEFIT FOR MEMBERS OF OPTIONAL TWENTY
YEAR RETIREMENT PLAN.
564. CONSISTENT PROVISIONS.
S 561. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
(A) "MEMBER" SHALL MEAN A PERSON WHO IS EMPLOYED AS A COUNTY
CORRECTION OFFICER OR A DEPUTY SHERIFF WHO IS ENGAGED DIRECTLY IN
CORRECTION OFFICER DUTIES THAT AGGREGATE FIFTY PER CENTUM OF THEIR
SERVICE BY A COUNTY WHICH ELECTS BY RESOLUTION OR LOCAL LAW, DULY
ADOPTED, TO PROVIDE THE BENEFITS AS AUTHORIZED BY THIS ARTICLE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09277-07-6
A. 6612--B 2
(B) "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL
EMPLOYEES' RETIREMENT SYSTEM.
(C) "CREDITABLE SERVICE" SHALL INCLUDE ANY AND ALL SERVICES PERFORMED
AS A SHERIFF, UNDERSHERIFF OR DEPUTY SHERIFF, OR CORRECTION OFFICER.
CREDIT FOR SERVICE AS A MEMBER OR OFFICER OF THE STATE POLICE OR AS A
PAID FIREMAN, POLICEMAN OR OFFICER OF ANY ORGANIZED FIRE DEPARTMENT OR
POLICE FORCE OR DEPARTMENT OF ANY COUNTY, CITY, VILLAGE, TOWN, FIRE
DISTRICT OR POLICE DISTRICT, SHALL ALSO BE DEEMED TO BE CREDITABLE
SERVICE AND SHALL BE INCLUDED IN COMPUTING YEARS OF TOTAL SERVICE FOR
RETIREMENT PURSUANT TO THIS SECTION, PROVIDED SUCH SERVICE WAS PERFORMED
BY THE MEMBER WHILE CONTRIBUTING TO THE RETIREMENT SYSTEM PURSUANT TO
THE PROVISIONS OF THIS ARTICLE OR ARTICLE EIGHT OF THIS CHAPTER.
S 562. OPTIONAL TWENTY YEAR RETIREMENT PLAN FOR CERTAIN MEMBERS WHOSE
EMPLOYER ELECTS TO PROVIDE SAME. (A) ANY MEMBER OF THE RETIREMENT SYSTEM
MAY ELECT TO BECOME A MEMBER PURSUANT TO THE PROVISIONS OF THIS SECTION
WITHIN ONE YEAR AFTER HE OR SHE BECOMES A MEMBER, IF HIS OR HER EMPLOYER
HAS ELECTED TO MAKE THE BENEFITS PROVIDED BY THIS SECTION AVAILABLE TO
MEMBERS, OR WITHIN ONE YEAR AFTER HIS OR HER EMPLOYER ELECTS TO MAKE THE
BENEFITS PROVIDED BY THIS SECTION AVAILABLE TO ITS MEMBERS.
(B) ELECTIONS MADE PURSUANT TO THIS SECTION SHALL BE IN WRITING AND
SHALL BE DULY ACKNOWLEDGED AND FILED WITH THE COMPTROLLER. ANY MEMBER
WHO FILES SUCH AN ELECTION PURSUANT TO THIS SECTION MAY WITHDRAW IT
AFTER IT HAS BEEN FILED FOR AT LEAST A YEAR. SUCH WITHDRAWAL SHALL BE BY
WRITTEN NOTICE DULY ACKNOWLEDGED AND FILED WITH THE COMPTROLLER.
(C) A MEMBER PARTICIPATING ON THE BASIS OF THIS SECTION AT THE TIME OF
RETIREMENT SHALL BE ENTITLED TO RETIRE AFTER THE COMPLETION OF TWENTY
YEARS OF TOTAL CREDITABLE SERVICE OR UPON THE ATTAINMENT OF AGE
SIXTY-TWO, BY FILING AN APPLICATION THEREFOR IN A MANNER SIMILAR TO THAT
PROVIDED IN THIS CHAPTER.
(I) UPON COMPLETION OF TWENTY YEARS OF SUCH SERVICE AND UPON RETIRE-
MENT, EACH SUCH MEMBER SHALL RECEIVE A PENSION SUFFICIENT TO PROVIDE HIM
OR HER WITH A RETIREMENT ALLOWANCE EQUAL TO ONE-FORTIETH OF HIS OR HER
FINAL AVERAGE SALARY FOR EACH YEAR OF TOTAL CREDITABLE SERVICES FOR
WHICH HE OR SHE IS OTHERWISE ENTITLED BUT NOT EXCEEDING IN THE AGGREGATE
ONE-HALF OF HIS OR HER FINAL AVERAGE SALARY.
(II) UPON ATTAINMENT OF AGE SIXTY-TWO AND UPON RETIREMENT WITHOUT
COMPLETION OF TWENTY YEARS OF SUCH SERVICE, EACH SUCH MEMBER SHALL
RECEIVE A PENSION SUFFICIENT TO PROVIDE HIM OR HER WITH A RETIREMENT
ALLOWANCE EQUAL TO ONE-FORTIETH OF HIS OR HER FINAL AVERAGE SALARY FOR
EACH YEAR OF CREDITABLE SERVICE. EVERY SUCH MEMBER SHALL ALSO BE ENTI-
TLED TO AN ADDITIONAL PENSION EQUAL TO THE PENSION FOR ANY OTHER CREDIT-
ABLE SERVICE RENDERED AS OTHERWISE PROVIDED FOR IN THIS CHAPTER. THIS
LATTER PENSION SHALL NOT INCREASE THE TOTAL ALLOWANCE TO MORE THAN ONE-
HALF OF HIS OR HER FINAL AVERAGE SALARY.
(D) THE INCREASED PENSIONS TO SUCH MEMBERS, AS PROVIDED BY THIS
SECTION, SHALL BE PAID FROM ADDITIONAL CONTRIBUTIONS MADE BY THE PARTIC-
IPATING EMPLOYER ON ACCOUNT OF SUCH MEMBERS. THE ACTUARY OF THE RETIRE-
MENT SYSTEM SHALL COMPUTE THE ADDITIONAL CONTRIBUTION REQUIRED FOR EACH
MEMBER WHO ELECTS TO RECEIVE THE SPECIAL BENEFITS PROVIDED UNDER THIS
SECTION. SUCH ADDITIONAL CONTRIBUTIONS SHALL BE COMPUTED ON THE BASIS OF
CONTRIBUTIONS DURING THE PROSPECTIVE SERVICE OF SUCH MEMBER WHICH WILL
COVER THE LIABILITY OF THE RETIREMENT SYSTEM FOR SUCH EXTRA PENSIONS.
UPON APPROVAL OF THE COMPTROLLER, SUCH ADDITIONAL CONTRIBUTIONS SHALL BE
CERTIFIED BY HIM OR HER TO THE CHIEF FISCAL OFFICER OR THE PARTICIPATING
EMPLOYER. THE AMOUNT THEREOF SHALL BE INCLUDED IN THE ANNUAL APPROPRI-
ATION OF THE PARTICIPATING EMPLOYER. SUCH AMOUNT SHALL BE PAID ON THE
A. 6612--B 3
WARRANT OF THE CHIEF FISCAL OFFICER OF THE PARTICIPATING EMPLOYER TO THE
PENSION ACCUMULATION FUND OF THE RETIREMENT SYSTEM.
(E) IN COMPUTING THE TWENTY YEARS OF COMPLETED SERVICE OF A MEMBER,
FULL CREDIT SHALL BE GIVEN FOR MILITARY SERVICE AS DEFINED IN SUBDIVI-
SIONS TWENTY-NINE-A AND THIRTY OF SECTION THREE HUNDRED TWO OF THIS
CHAPTER.
(F) EVERY MEMBER PARTICIPATING ON THE BASIS OF THIS SECTION SHALL BE
SEPARATED FROM THE SERVICE ON THE LAST DAY OF THE CALENDAR MONTH NEXT
SUCCEEDING THE CALENDAR MONTH IN WHICH HE OR SHE ATTAINS AGE SIXTY-TWO,
PROVIDED, HOWEVER, THAT SUCH A MEMBER WHO ATTAINED THE AGE OF SIXTY-TWO
BEFORE HIS OR HER EMPLOYER ELECTED TO MAKE THE BENEFITS PROVIDED BY THIS
SECTION AVAILABLE TO HIM OR HER, OR WHO ATTAINS THE AGE OF SIXTY-TWO
WITHIN ONE MONTH AFTER HIS OR HER EMPLOYER MAKES SUCH BENEFITS AVAIL-
ABLE, TO BE ELIGIBLE FOR A PENSION COMPUTED IN ACCORDANCE WITH THE
PROVISIONS OF THIS SECTION, SHALL BE SEPARATED FROM THE SERVICE WITHIN
THREE MONTHS AFTER HIS OR HER EMPLOYER MAKES SUCH BENEFITS AVAILABLE.
(G) THE PROVISIONS OF THIS SECTION SHALL BE CONTROLLING NOTWITHSTAND-
ING ANY OTHER PROVISION OF THIS ARTICLE TO THE CONTRARY.
(H) THE BENEFITS OF THIS SECTION SHALL BE AVAILABLE ONLY TO THOSE
MEMBERS WHOSE EMPLOYER ELECTS TO PROVIDE SUCH BENEFITS BY ADOPTING A
RESOLUTION OR LOCAL LAW TO SUCH EFFECT AND FILING A CERTIFIED COPY THER-
EOF WITH THE COMPTROLLER.
(I) THE BENEFITS PROVIDED BY THIS SECTION SHALL BE PAYABLE TO A
MEMBER, UNLESS AT THE DATE OF RETIREMENT SUCH MEMBER WOULD OTHERWISE BE
ENTITLED TO A GREATER BENEFIT UNDER OTHER PROVISIONS OF THIS CHAPTER HAD
HE OR SHE WITHDRAWN FROM THIS SECTION, IN WHICH EVENT SUCH GREATER BENE-
FITS SHALL BE PAYABLE.
S 563. ADDITIONAL PENSION BENEFIT FOR MEMBERS OF OPTIONAL TWENTY YEAR
RETIREMENT PLAN. (A) A PARTICIPATING EMPLOYER WHICH HAS ELECTED, OR
WHICH ELECTS TO PROVIDE THE BENEFITS OF THE OPTIONAL TWENTY YEAR RETIRE-
MENT PLAN FOR ITS EMPLOYEES AS SPECIFIED IN THIS ARTICLE MAY ELECT TO
MAKE CONTRIBUTIONS FOR THE PURPOSE OF PROVIDING AN ADDITIONAL PENSION
PURSUANT TO THIS SECTION FOR MEMBERS IN ITS EMPLOY WHO ARE ENTITLED TO A
PENSION PURSUANT TO SECTION FIVE HUNDRED SIXTY-TWO OF THIS ARTICLE.
EVERY MEMBER EMPLOYED BY AN EMPLOYER WHICH HAS ELECTED THE PROVISIONS OF
SECTION FIVE HUNDRED SIXTY-TWO OF THIS ARTICLE AND THIS SECTION MAY
ELECT TO BE COVERED BY THE PROVISIONS OF THIS SECTION BY FILING WITH THE
COMPTROLLER, A DULY EXECUTED AND ACKNOWLEDGED FORM PREPARED BY THE COMP-
TROLLER FOR THAT PURPOSE.
(B) UPON RETIREMENT, EACH SUCH MEMBER SHALL RECEIVE, FOR EACH YEAR OF
SERVICE IN EXCESS OF TWENTY, AN ADDITIONAL PENSION WHICH SHALL BE EQUAL
TO ONE-SIXTIETH OF HIS OR HER FINAL AVERAGE SALARY; PROVIDED, HOWEVER,
THAT THE TOTAL ALLOWANCE PAYABLE PURSUANT TO THIS SECTION SHALL NOT
EXCEED THREE-QUARTERS OF SUCH MEMBER'S FINAL AVERAGE SALARY.
S 564. CONSISTENT PROVISIONS. NOTHING CONTAINED IN THIS ARTICLE SHALL
BE CONSTRUED TO OTHERWISE AFFECT THE APPLICABILITY OF ARTICLE ELEVEN,
FOURTEEN OR FIFTEEN OF THIS CHAPTER. ANY OTHER PROVISIONS OF THIS CHAP-
TER RELATING TO MANDATORY CONTRIBUTION TO THE RETIREMENT SYSTEM BASED
UPON A MEMBER'S DATE OF MEMBERSHIP IN SUCH SYSTEM SHALL NOT BE DEEMED TO
BE AFFECTED BY THE PROVISIONS OF THIS ARTICLE, AND ANY MEMBER WHO ON THE
EFFECTIVE DATE OF THIS ARTICLE IS NOT REQUIRED TO CONTRIBUTE SHALL NOT
BE REQUIRED TO MAKE ANY CONTRIBUTIONS AS A RESULT OF THIS SECTION. FOR
THOSE MEMBERS REQUIRED TO CONTRIBUTE TO THE RETIREMENT SYSTEM, SUCH
CONTRIBUTION SHALL BE TREATED IN THE SAME MANNER AS SPECIFIED FOR SUCH
MEMBERS IN ARTICLE FOURTEEN OR FIFTEEN OF THIS CHAPTER.
A. 6612--B 4
S 2. Any past service payments required of a county as a result of the
adoption of the benefits permitted by this act may be amortized over a
period of up to ten years at the option of such county.
S 3. This act shall take effect immediately.
FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
This bill will allow any county to elect to provide their correction
officers and deputy sheriffs who are engaged in correction officer
duties to become covered by the provisions of a special 20 year retire-
ment plan, which will provide a benefit of one-half of final average
salary upon retirement. The county may also elect an additional benefit
of one sixtieth of final average salary for each year of service in
excess of 20 years, not to exceed 15 such years.
If this bill is enacted, the increase in the annual contributions of a
county electing to provide these benefits will depend on the current
salary and plan coverage of the affected members in its employ, as well
as on the proposed plan elected by such county. For the fiscal year
ending March 31, 2017, the additional annual cost for the 20 year plan
will be 4.8% of the affected correction officers' salaries for those
currently covered by a 25 year plan, and 7.3% of the affected correction
officers' salaries for those currently covered by an age 55 plan. The
additional annual cost for the 20 year plan with additional sixtieths
will be an additional 0.5% of the affected salaries. In future years,
this annual cost will vary as the billing rates of these plans change.
In addition to the annual contributions discussed above, there will be
an immediate past service cost for the affected officers which would
depend on the current salary, plan, age and length of service of the
officers, as well as on their proposed plan. This cost may be amortized
over a period of up to 10 years as determined by the employing county
which elects this benefit.
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, 2015 actuarial valu-
ation. Distributions and other statistics can be found in the 2015
Report of the Actuary and the 2015 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015
Annual Report to the Comptroller on Actuarial Assumptions, and the Codes
Rules and Regulations of the State of New York: Audit Control.
The Market Assets and GASB Disclosures are found in the March 31, 2015
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 January 14, 2016, and intended for use only
during the 2016 Legislative Session, is Fiscal Note No. 2016-34,
prepared by the Actuary for the New York State and Local Retirement
System.