S T A T E   O F   N E W   Y O R K
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                                  7342--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 24, 2017
                                ___________
 
 Introduced  by  M.  of  A.  FITZPATRICK -- read once and referred to the
   Committee on Governmental Employees -- recommitted 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

 AN ACT to amend the retirement and social security law, in  relation  to
   calculating pension benefits for public employees
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 75 of the retirement and  social  security  law  is
 amended by adding a new subdivision e to read as follows:
   E.  FOR  PURPOSES  OF  THIS TITLE, ALL FINAL AVERAGE SALARIES SHALL BE
 CALCULATED EXCLUSIVE OF ANY FORM OF OVERTIME COMPENSATION, UNUSED  VACA-
 TION TIME, UNUSED SICK LEAVE OR UNUSED PERSONAL TIME.
   §  2. Section 375 of the retirement and social security law is amended
 by adding a new subdivision e to read as follows:
   E. FOR PURPOSES OF THIS TITLE, ALL FINAL  AVERAGE  SALARIES  SHALL  BE
 CALCULATED  EXCLUSIVE OF ANY FORM OF OVERTIME COMPENSATION, UNUSED VACA-
 TION TIME, UNUSED SICK LEAVE OR UNUSED PERSONAL TIME.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would reduce the retirement benefits for members who retire
 from the New York State and Local Employees' Retirement System (ERS) and
 the New York State and Local Police and Fire Retirement System (PFRS) by
 requiring the exclusion of any form  of  overtime  compensation,  unused
 vacation  time,  unused sick leave or unused personal time in the calcu-
 lation of final average salary (FAS).
   This legislation would reduce the benefits of many members in the  ERS
 and PFRS who retire on or after the effective date. If this becomes law,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10333-03-8
              

 A. 7342--A                          2
 
 it is likely to face a constitutional challenge based upon the guarantee
 that a member's benefits may not be diminished.
   There  would be an administrative cost to the System to change the FAS
 calculation.
   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, 2017 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2017
 Report  of  the  Actuary  and  the  2017  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in the  2015,
 2016,  and  2017  Annual  Report to the Comptroller on Actuarial Assump-
 tions, 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, 2017
 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 5, 2018, and intended for use  only  during
 the  2018  Legislative  Session, is Fiscal Note No. 2018-70, prepared by
 the Actuary for the New York State and Local Retirement System.