S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3332
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2017
                                ___________
 
 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
   eligibility for retirement benefits for certain members of the unified
   court system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision a of section 503 of the retirement and social
 security law, as amended by chapter 18 of the laws of 2012,  is  amended
 to read as follows:
   a.  The  normal  service  retirement benefit specified in section five
 hundred four of this article shall be payable to general members,  other
 than  elective  members,  who  have met the minimum service requirements
 upon retirement and attainment of age sixty-two,  provided,  however,  a
 general  member  who  is  a  peace officer employed by the unified court
 system or a member of a teachers' retirement system may  retire  without
 reduction  of  his or her retirement benefit upon attainment of at least
 fifty-five years of age and  completion  of  thirty  or  more  years  of
 service.  For members who become members of the New York state and local
 employees' retirement system on  or  after  April  first,  two  thousand
 twelve, the normal service retirement benefits specified in section five
 hundred  four of this article shall be payable to general members, other
 than elective members, who have met  the  minimum  service  requirements
 upon  retirement  and  attainment  of  age sixty-three; PROVIDED THAT, A
 MEMBER WHO IS A PEACE OFFICER EMPLOYED BY THE UNIFIED COURT  SYSTEM  MAY
 RETIRE  WITHOUT  REDUCTION OF HIS OR HER RETIREMENT BENEFIT UPON ATTAIN-
 MENT OF AT LEAST FIFTY-FIVE YEARS OF AGE AND  COMPLETION  OF  THIRTY  OR
 MORE YEARS OF SERVICE.
   §  2.  Subdivisions  a  and  a-1  of section 603 of the retirement and
 social security law, subdivision a as amended  and  subdivision  a-1  as
 added by chapter 18 of the laws of 2012, are amended to read as follows:

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

                                                            LBD05070-02-7

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   a.  The  service  retirement  benefit specified in section six hundred
 four of this article shall be payable to members who have met the  mini-
 mum  service  requirements  upon retirement and attainment of age sixty-
 two, other than members who are eligible for  early  service  retirement
 pursuant to subdivision c of section six hundred four-b of this article,
 subdivision c of section six hundred four-c of this article, subdivision
 d  of  section  six  hundred  four-d  of  this article, subdivision c of
 section six hundred four-e of this article, subdivision c of section six
 hundred four-f of this article, subdivision c  of  section  six  hundred
 four-g  of  this article, subdivision c of section six hundred four-h of
 this article or subdivision c of section  six  hundred  four-i  of  this
 article, provided, however, a member of a teachers' retirement system or
 the  New  York  state  and  local employees' retirement system who first
 joins such system before January first, two thousand ten or a member who
 is a uniformed court officer or peace officer employed  by  the  unified
 court system [who first becomes a member of the New York state and local
 employees'  retirement  system  before April first, two thousand twelve]
 may retire without reduction of  his  or  her  retirement  benefit  upon
 attainment  of at least fifty-five years of age and completion of thirty
 or more years of service, provided,  however,  that  a  uniformed  court
 officer  or peace officer employed by the unified court system who first
 becomes a member of the New York state and local  employees'  retirement
 system  on  or after January first, two thousand ten and retires without
 reduction of his or her retirement benefit upon attainment of  at  least
 fifty-five  years  of  age  and  completion  of  thirty or more years of
 service pursuant to this section shall be required to  make  the  member
 contributions  required by subdivision f of section six hundred thirteen
 of this article for  all  years  of  credited  and  creditable  service,
 provided further that the [the] preceding provisions of this subdivision
 shall not apply to a New York city revised plan member.
   a-1.  For  members  who  first  become a member of a public retirement
 system of the state on or after April first, two thousand twelve, EXCEPT
 FOR UNIFORMED COURT OFFICERS OR PEACE OFFICERS EMPLOYED BY  THE  UNIFIED
 COURT  SYSTEM,  the  service retirement benefit specified in section six
 hundred four of this article shall be payable to members  who  have  met
 the  minimum  service requirements upon retirement and have attained age
 sixty-three.
   § 3. Subdivisions a and b-1 of  section  604  of  the  retirement  and
 social  security  law,  subdivision  a as amended and subdivision b-1 as
 added by chapter 18 of the laws of 2012, are amended to read as follows:
   a. The service retirement benefit  at  normal  retirement  age  for  a
 member  with  less  than  twenty years of credited service, or less than
 twenty-five years credited service for a member who joins the  New  York
 state  teachers'  retirement system on or after January first, two thou-
 sand ten, shall be a retirement allowance equal to one-sixtieth of final
 average salary times years of credited service.  Normal  retirement  age
 for  members  who  first become members of a public retirement system of
 the state on or after April first, two  thousand  twelve  shall  be  age
 sixty-three;  EXCEPT  THAT  THE NORMAL RETIREMENT AGE SHALL BE SIXTY-TWO
 FOR A MEMBER WHO IS A PEACE OFFICER OR UNIFORMED COURT OFFICER  EMPLOYED
 BY THE UNIFIED COURT SYSTEM.
   b-1.  Notwithstanding  any other provision of law to the contrary, the
 service retirement benefit for members with  twenty  or  more  years  of
 [credit]  CREDITED service who first become a member of a public retire-
 ment system of the state on or after April first, two thousand twelve at
 age sixty-three, OR AT AGE SIXTY-TWO FOR  UNIFORMED  COURT  OFFICERS  OR

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 PEACE  OFFICERS EMPLOYED BY THE UNIFIED COURT SYSTEM, shall be a pension
 equal to the sum of thirty-five per centum  and  one-fiftieth  of  final
 average  salary for each year of service in excess of twenty times final
 average  salary  times  years of credited service. In no event shall any
 retirement benefit payable without optional modification  be  less  than
 the  actuarially  equivalent  annuitized  value of the member's contrib-
 utions accumulated with interest at five percent  per  annum  compounded
 annually to the date of retirement.
   § 4. Paragraph 3 of subdivision i of section 603 of the retirement and
 social  security  law,  as  added  by chapter 18 of the laws of 2012, is
 amended to read as follows:
   3. A member of a public retirement system of the state who has met the
 minimum service requirement, but who is not  a  New  York  city  transit
 authority  member,  as  defined  in  paragraph  one  of subdivision a of
 section six hundred four-b of this article, may retire prior  to  normal
 retirement  age,  but  no  earlier than attainment of age fifty-five, in
 which event, the amount of his or her retirement benefit computed  with-
 out  optional  modification  shall  be  reduced  by six and one-half per
 centum for each year by which early retirement precedes age sixty-three;
 PROVIDED, HOWEVER, THAT FOR A MEMBER WHO IS A UNIFORMED COURT OFFICER OR
 PEACE OFFICER EMPLOYED BY THE UNIFIED COURT SYSTEM, THE RETIREMENT BENE-
 FIT COMPUTED WITHOUT OPTIONAL MODIFICATION SHALL BE REDUCED  IN  ACCORD-
 ANCE WITH PARAGRAPH ONE OF THIS SUBDIVISION.
   §  5. Notwithstanding any other provision of law to the contrary, none
 of the provisions of this act shall  be  subject  to  the  appropriation
 requirement of section 25 of the retirement and social security law.
   §  6. This act shall take effect immediately; provided that the amend-
 ments to subdivision a of section 603 of the retirement and social secu-
 rity law made by section two of this act shall not affect the expiration
 of such subdivision and shall be deemed to expire therewith.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill will allow any Tier 6 member who is a uniformed court  offi-
 cer  or  peace  officer  employed  by the unified court system to retire
 without early age  reduction  upon  attaining  30  years  of  creditable
 service  and age 55. It would also reduce the normal retirement age from
 63 to 62, and lessen the reductions in benefits  for  those  who  retire
 prior to normal retirement age.
   If this legislation is enacted during the 2017 legislative session, we
 anticipate that there will be an increase in the annual contributions of
 the  state  of New York of approximately 1.1% of the compensation of the
 affected members. For the fiscal year ending March  31,  2018,  this  is
 estimated to be approximately $140,000.
   In addition to the annual contributions discussed above, there will be
 an  immediate past service cost of approximately $394,000 which would be
 borne by the state of New York as a one-time payment. This  estimate  is
 based on the assumption that payment will be made on March 1, 2018.
   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, 2016  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2016
 Report of the  Actuary  and  the  2016  Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2015
 and 2016 Annual Report to the Comptroller on Actuarial Assumptions,  and
 the  Codes  Rules  and  Regulations  of the State of New York: Audit and
 Control.

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   The Market Assets and GASB Disclosures are found in the March 31, 2016
 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 6, 2017, and intended for use only during
 the  2017  Legislative  Session, is Fiscal Note No. 2017-12, prepared by
 the Actuary for the New York State and Local Retirement System.