S T A T E   O F   N E W   Y O R K
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                                 5065--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 29, 2015
                               ___________

Introduced  by  Sen.  LARKIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and recommitted to said committee

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  DECEMBER  TWENTY-FIRST,  NINETEEN
HUNDRED  NINETY-EIGHT 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  SIXTEEN  FOR  A  SUPPLEMENTAL
MILITARY 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04756-03-5
              

S. 5065--A                          2

TO  THIS SECTION SHALL COMMENCE ON THE NEXT RETIREMENT ALLOWANCE PAYABLE
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.
  S  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.
  S 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.
  S 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. 5065--A                          3

  S 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.
  S 6. This act shall take effect immediately.
  FISCAL NOTE.--This bill would amend Section 1000 of the Retirement and
Social Security Law to give veterans who retired prior to  December  21,
1998  or  the  surviving  spouse  of  such a retired veteran who chose a
continued life benefit to the spouse, a supplemental  pension  equal  to
their  first  $15,000 of single life allowance multiplied by 3% per year
for up to three (3) years of such service credit  for  military  service
performed during certain periods of military conflicts for certain reti-
rees  of  public retirement systems in New York State. Retirees who have
already received credit in public retirement systems other than those in
New York State will be allowed to receive credit for these same years of
military service in the New York State and Local  Employees'  Retirement
System (ERS) and the New York State and Local Police and Fire Retirement
System  (PFRS). The annual allowance will be recalculated as of the date
of enactment of  this  legislation.  There  would  not  be  any  payment
required  by an affected retiree for such service. Such retiree may make
application for such supplemental pension no  later  than  December  31,
2016.
  The  exact  number  of  retirees  or  surviving  spouses that could be
affected by this legislation cannot be readily determined.
  ERS Costs: Pursuant to Section 25 of the Retirement and Social Securi-
ty Law, the increased cost  to  the  New  York  State  Local  Employees'
Retirement  System  would be borne entirely by the State of New York and
would require an itemized appropriation sufficient to pay  the  cost  of
the provision. Once a retiree or surviving spouse applies for this bene-
fit  a cost will be generated. Every year a cost will be determined (and
billed to the state) based on those benefitting from this provision.
  PFRS Costs: These costs would be shared by the State of New  York  and
the participating employers in the PFRS.
  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, 2014  actuarial  valu-
ation.    Distributions  and  other  statistics can be found in the 2014
Report of the  Actuary  and  the  2014  Comprehensive  Annual  Financial
Report.
  The  actuarial assumptions and methods used are described in the 2010,
2011, 2012, 2013 and 2014 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, 2014
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.

S. 5065--A                          4

  This  estimate,  dated April 21, 2015 and intended for use only during
the 2015 Legislative Session, is Fiscal Note No.  2015-97,  prepared  by
the  Actuary  for  the  New  York  State and Local Employees' Retirement
System and the New York State  and  Local  Police  and  Fire  Retirement
System.
  FISCAL NOTE.--This bill would amend section 1000 of the Retirement and
Social  Security  Law  by adding a new subdivision 8-a to allow eligible
retired members of public  retirement  systems  of  New  York  State  to
receive  a  supplemental  military  retirement  allowance based upon the
retirement allowance of such member and up to three  years  of  military
service  credit.  The  annual supplemental military retirement allowance
shall be equal to 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  military  service claimed. The surviving spouse of a deceased
member who retired under an option which provides them with a continuing
lifetime benefit would be entitled  to  receive  fifty  percent  of  the
supplemental military retirement allowance that the retired member would
have  received.  A  member must have returned prior to December 21, 1998
and make application no later than December 31, 2016.  This  benefit  is
prospective  only  and shall commence at least 30 days after the receipt
of said application.
  It is not possible to determine the total annual cost to the employers
of members of the New York State Teachers' Retirement System  since  the
number  of  retired  members  who would be eligible for the supplemental
military retirement allowance under  this  bill  cannot  be  effectively
estimated.  However,  the  cost is estimated to be, on average, approxi-
mately $9,000 for each retired  member  eligible  for  the  supplemental
military retirement allowance provided under this bill if enacted.
  Employee  data  is  from  the System's most recent actuarial valuation
files, consisting of data provided by the employers  to  the  Retirement
System.  Data  distributions and statistics can be found in the System's
Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
reported  in the System's financial statements, and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
  The source of this estimate is Fiscal Note 2015-27 dated May  7,  2015
prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
System and is intended for use only during the 2015 Legislative Session.
I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
Retirement  System.  I  am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of  Actu-
aries to render the actuarial opinion contained herein.