S T A T E   O F   N E W   Y O R K
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                                  7387

                            I N  S E N A T E

                             April 25, 2016
                               ___________

Introduced  by  Sen.  HANNON -- 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
  mandatory retirement age

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

  Section 1. Subparagraph (f) of paragraph 1 and the  opening  paragraph
of  subparagraph  (g) of paragraph 2 of subdivision e and subdivisions h
and k of section 384 of the  retirement  and  social  security  law,  as
amended  by  chapter  1043  of  the laws of 1968, are amended to read as
follows:
  (f) Upon  completion  of  twenty-five  years  service,  an  additional
pension,  if  required, of such amount as shall be necessary to increase
the total amount of the benefits provided  herein  to  one-half  of  his
final  average  salary.  The  pension  provided  by this [sub-paragraph]
SUBPARAGRAPH shall be payable only if a member retires from  service  on
or  before the last day of the calendar month next succeeding the calen-
dar month in which he attains age  [sixty-two]  SIXTY-FIVE.    Provided,
however,  that in the case of any member who attained the age of [sixty-
two] SIXTY-FIVE on or before July first, nineteen hundred sixty-six,  to
be  eligible  for  additional  pension credit under this [sub-paragraph]
SUBPARAGRAPH, his service shall be terminated and he shall retire on  or
before  December  thirty-first,  nineteen  hundred  sixty-seven. For the
purpose only of determining the amount of the pension provided  in  this
paragraph,  the  annuity shall be computed as it would be if it were not
reduced by the actuarial equivalent of any outstanding loan, and  if  it
were  not  increased  by  the  actuarial  equivalent  of  any additional
contributions, and if it were not reduced  by  reason  of  the  member's
election  to decrease his annuity contributions to the retirement system
in order to apply the  amount  of  such  reduction  in  payment  of  his
contributions for old-age and survivors insurance coverage.
  Upon  completion  of twenty-five years service, an additional pension,
if required, of such amount as shall be necessary to increase the  total
amount  of the benefits provided herein to one-half of his final average

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

                                                           LBD14784-02-6

S. 7387                             2

salary. The pension provided by this [sub-paragraph] SUBPARAGRAPH  shall
be  payable  only if a member retires from service on or before the last
day of the calendar month next succeeding the calendar month in which he
attains  age [sixty-two] SIXTY-FIVE. Provided, however, that in the case
of any member who attained the age of [sixty-two] SIXTY-FIVE  before  or
within  one month after his employer first elected to assume all or part
of the additional cost of service as provided by paragraph two of subdi-
vision d of this section, to be eligible for additional  pension  credit
under this [sub-paragraph] SUBPARAGRAPH, his service shall be terminated
and  he shall retire within three months after his employer so elects or
on or before December thirty-first, nineteen hundred sixty-eight, which-
ever shall last occur.
  h. Any officer or member of such organized fire department  or  organ-
ized  police  force or department, may, within one year after he becomes
such officer or member or within one year after his employer assumes the
additional cost therefor, whichever shall last occur, elect  to  receive
the  additional  benefits provided for by subdivision f [hereof] OF THIS
SECTION. Any officer or member who elects to receive such benefits shall
be separated from service on the first day of the  calendar  month  next
succeeding   his  attainment  of  age  [sixty-two]  SIXTY-FIVE  and  the
completion of twenty-five years of service, provided, however,  that  in
the  case  of  any officer or member who attained the age of [sixty-two]
SIXTY-FIVE before his employer assumed the additional cost therefor,  or
who attains the age of [sixty-two] SIXTY-FIVE within one month after his
employer  assumes the additional cost therefor, to be eligible for addi-
tional pension credit under subdivision f of this section,  his  service
shall  be  terminated  and he shall be retired within three months after
his employer assumes the additional cost therefor or on or before Decem-
ber thirty-first, nineteen hundred  sixty-eight,  whichever  shall  last
occur,  and  provided further that a member who is a chief or commanding
officer of a police department or police force shall retire on the first
day of the calendar month next succeeding his attainment of  age  sixty-
five;  a member who is a chief or commanding officer of a police depart-
ment or police force, who attained age sixty-five  before  his  employer
elected to provide this added benefit and has rendered twenty-five years
of  total creditable service, shall retire on or before December thirty-
first, nineteen hundred  sixty-eight,  or  within  one  year  after  his
employer  assumes  the  additional  cost  therefor, whichever shall last
occur.
  k. Any officer or member of such organized fire department  or  organ-
ized  police  force or department, may, within one year after he becomes
such officer or member or within one year after his employer assumes the
additional cost therefor, whichever shall last occur, elect  to  receive
the  additional  benefits provided for by subdivision i [hereof] OF THIS
SECTION. Any officer or member who elects to receive such benefits shall
be separated from service on the first day of the  calendar  month  next
succeeding   his  attainment  of  age  [sixty-two]  SIXTY-FIVE  and  the
completion of twenty-five years of service, provided, however,  that  in
the  case  of  any officer or member who attained the age of [sixty-two]
SIXTY-FIVE before his employer assumed the additional cost therefor,  or
who attains the age of [sixty-two] SIXTY-FIVE within one month after his
employer  assumes the additional cost therefor, to be eligible for addi-
tional pension credit under subdivision i of this section,  his  service
shall  be  terminated  and he shall be retired within three months after
his employer assumes the additional  cost  therefor,  or  on  or  before
December  thirty-first,  nineteen  hundred  sixty-eight, whichever shall

S. 7387                             3

last occur, and provided further  that  a  member  who  is  a  chief  or
commanding  officer  of a police department or police force shall retire
on the first day of the calendar month next succeeding his attainment of
age  sixty-five;  a  member  who  is  a chief or commanding officer of a
police department or police force, who attained  age  sixty-five  before
his  employer  elected  to  provide  this added benefit and has rendered
twenty-five years of total creditable service, shall retire on or before
December thirty-first, nineteen hundred sixty-eight, or within one  year
after his employer assumes the additional cost therefor, whichever shall
last occur.
  S 2. This act shall take effect immediately.
  FISCAL NOTE. --Pursuant to Legislative Law, Section 50:
  This bill will increase the mandatory retirement age from 62 to 65 for
members  of  the  New  York  State  and Local Police and Fire Retirement
System (PFRS) who are covered under the provisions of Section 384 of the
Retirement and Social Security Law.
  If this bill is  enacted,  there  would  be  additional  benefits  for
certain  members  who  remain  employed  beyond age 62. However, if some
members delay retirement due to the enactment of this bill, we would not
anticipate that there would be an increase in the  annual  contributions
of 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, 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 March 31, 2016, and intended for use only during
the 2016 Legislative Session, is Fiscal Note No.  2016-84,  prepared  by
the Actuary for the New York State and Local Retirement System.