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

                                  9702

                          I N  A S S E M B L Y

                              April 5, 2016
                               ___________

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
  authorizing participating employers in the New York  state  and  local
  police  and  fire  retirement  system offering an optional twenty year
  retirement plan for its police officers  and  firefighters,  to  offer
  such plan on a non-contributory basis

  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 26 to read as follows:
                               ARTICLE 26
                          BENEFIT ENHANCEMENTS
SECTION 1400. NON-CONTRIBUTORY BASIS.
        1401. COLLECTIVE BARGAINING.
        1402. PAST SERVICE COSTS.
  S 1400. NON-CONTRIBUTORY BASIS. (A) NOTWITHSTANDING THE PROVISIONS  OF
THIS  CHAPTER  OR ANY OTHER LAW TO THE CONTRARY A PARTICIPATING EMPLOYER
IN THE NEW YORK STATE AND LOCAL POLICE AND FIRE  RETIREMENT  SYSTEM  MAY
ELECT  TO  PROVIDE  ITS EMPLOYEES WHO ARE MEMBERS OF THE OPTIONAL TWENTY
YEAR RETIREMENT PLAN FOR POLICE AND FIREFIGHTERS ELIGIBILITY TO  PARTIC-
IPATE ON A NON-CONTRIBUTORY BASIS.
  (B)  NO  MEMBER  WHO  PARTICIPATES IN THIS NON-CONTRIBUTORY RETIREMENT
PLAN SHALL BE ENTITLED TO A REFUND OF PREVIOUS CONTRIBUTIONS MADE TO THE
CONTRIBUTORY TWENTY YEAR RETIREMENT PLAN.
  S 1401. COLLECTIVE BARGAINING. A DEMAND IN COLLECTIVE BARGAINING NEGO-
TIATIONS FOR THE ADDITIONAL BENEFIT PROVIDED BY SECTION FOURTEEN HUNDRED
OF THIS ARTICLE SHALL NOT BE SUBJECT TO THE PROVISIONS OF PARAGRAPH  (B)
OR  (C)  OF  SUBDIVISION  FOUR  OF SECTION TWO HUNDRED NINE OF THE CIVIL
SERVICE LAW, NOR SHALL SUCH DEMAND  BE  SUBJECT  TO  ANY  PROVISION  FOR
INTEREST ARBITRATION CONTAINED IN ANY LOCAL LAW, RESOLUTION OR ORDINANCE
ADOPTED  BY  ANY  GOVERNMENTAL  ENTITY  PURSUANT  TO  SUBDIVISION ONE OF
SECTION TWO HUNDRED TWELVE OF THE CIVIL SERVICE LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08156-04-6
              

A. 9702                             2

  S 1402. PAST SERVICE COSTS. ANY PARTICIPATING EMPLOYER THAT ELECTS THE
ADDITIONAL BENEFITS PROVIDED BY THIS ARTICLE MAY ALSO ELECT TO  PAY  THE
PAST  SERVICE  COST  ASSOCIATED WITH THIS BENEFIT IN TEN ANNUAL INSTALL-
MENTS.
  S 2. This act shall take effect immediately.
  FISCAL  NOTE.--  This  bill will allow employers in the New York State
and Local Police and  Fire  Retirement  System  which  have  elected  to
provide  their  employees  with the benefits of the 20 year contributory
retirement plan to elect to provide eligibility for their  employees  to
participate  on a non-contributory basis. Any member who participates on
a non-contributory basis will not be entitled to a  refund  of  previous
member contributions.
  If  this  bill  is  enacted,  there  will be an increase in the annual
contributions of ELECTING EMPLOYERS on behalf of their Tiers 3, 5 and  6
members.  For  the  fiscal  year ending March 31, 2017, the contribution
increases, as a percentage of salary, will be 0.3%  for  tier  3  384-d,
1.0%  for  tier  3  384-e, 3.4% for tier 5 384-d, 3.5% for tier 5 384-e,
6.5% for tier 6 384-d and 6.6% for tier 6 384-e. These additional annual
costs will be borne by the employers which elect to provide  this  bene-
fit.
  There will not be a past service cost.
  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 and 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  February  4,  2016,  and intended for use only
during the  2016  Legislative  Session,  is  Fiscal  Note  No.  2016-37,
prepared  by  the  Actuary  for  the New York State and Local Retirement
System.