NY State Senate Bill 2017-S6505B

Senate Bill S6505B

2017-2018 Legislative Session

Relates to supplemental military retirement allowances for members of public retirement systems of the state

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 20, 2018	committed to rules
May 16, 2018	advanced to third reading
May 15, 2018	2nd report cal.
May 14, 2018	1st report cal.1163
May 04, 2018	print number 6505b
May 04, 2018	amend and recommit to civil service and pensions
Apr 03, 2018	print number 6505a
Apr 03, 2018	amend and recommit to civil service and pensions
Jan 03, 2018	referred to civil service and pensions
May 26, 2017	referred to civil service and pensions

Votes

- May 14, 2018 - Civil Service And Pensions Committee Vote
  S6505B
  
  8
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Civil Service And Pensions Committee Vote: May 14, 2018
      
      aye (8)
      
      Addabbo Jr.
      
      Golden
      
      Lanza
      
      Persaud
      
      Phillips
      
      Ritchie
      
      Sanders Jr.
      
      Savino
      
      aye wr (1)
      
      Ortt
      
      excused (2)
      
      Benjamin
      
      Croci

Bill Amendments

Original

B (Active)

co-Sponsors

2017-S6505 - Details

See Assembly Version of this Bill:: A10324
Current Committee:: Senate Rules
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§1000, 78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6820
2015-2016: S5065
2019-2020: S3968
2021-2022: S5110
2023-2024: S7529

2017-S6505 - Summary

Relates to supplemental military retirement allowances for members of public retirement systems of the state.

2017-S6505 - Sponsor Memo

                                 BILL NUMBER:  S6505

 TITLE OF BILL :

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

 PURPOSE :

This bill intends to provide veterans who have retired from public
service in the state with a veterans pension benefit similar to that
which active veteran public employees are entitled to receive.

 SUMMARY OF PROVISIONS :

This bill would:

1. Provide that a member of a public retirement system of the State of
New York who retired prior to May twenty-first, two thousand sixteen
may make application to the retirement system for a supplemental
military allowance;

2. Apply to persons who meet the eligibility requirements of the
veteran's service credit buy back law;

3. Provide a supplemental military allowance equal to .25% for each
month of military service of such person, to a maximum of 36 months;

4. Provide that the supplemental military allowance shall apply to the
first $15,000, prior to optional modification, of the retired person;
and

5. Require the application for the supplemental military allowance be
made no later than December 31, 2018.

 EXISTING LAW :

Chapter 41 of the Laws of 2016 permits all honorably discharged in
veterans active public service to have three years of military service
credit added to their retirement service. There is no provision to
allow public retirees to receive a commensurate benefit.  This
legislation provides that benefit.

 JUSTIFICATION :

The Veterans Service Credit of 2000 permitted active military public
employees who served in the military during specific military conflict
to purchase up to three years retirement credit for that military
service. This was the first opportunity veterans had to include their
military service in their public retirement plan since 1976.

Many Korean veterans were not eligible for that 1976 buy back law.
Vietnam veterans were just entering public service at that time. In
the ensuring years, many of these veterans provided years of dedicated
public service arid retired without the ability to add military credit
to their retirement. Current employees now have that ability.

It is unfair to ignore the service provided by veterans to our state
and country now that active employees can receive this benefit. This
bill overcomes that injustice by providing retired veterans with a
comparable supplemental military allowance.

 LEGISLATIVE HISTORY :

2014: S.6820-Referred to Civil Service and Pensions.
2008: A.6805-A Towns Amended and recommit to Governmental Employees
Committee
2007: A6695 Towns Governmental Employees Committee
2006: A5472-A Towns Governmental Employees Committee
2005: A5472 Towns Governmental Employees Committee
2004: A8374-A Tocci Governmental Employees Committee
2003: A8374 Tocci Reported to Ways and Means Committee
2002: A9839 Tocci Passed Assembly
2001: A4246 Vitaliano Passed Assembly
2000: A11501 Vitaliano Passed Assembly

 FISCAL IMPLICATIONS :

See fiscal notes attached.

 EFFECTIVE DATE :
Immediately.

2017-S6505 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6505
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 26, 2017
                                ___________
 
 Introduced  by Sens. LARKIN, GALLIVAN -- 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,  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 MAY TWENTY-FIRST, TWO THOUSAND
 SIXTEEN 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 EIGHTEEN FOR A SUPPLEMENTAL MILITARY
 RETIREMENT ALLOWANCE PURSUANT TO THIS  SUBDIVISION.    THE  SUPPLEMENTAL
 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  APPLICATION,
 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 MODIFICA-
 TION  AND  NOT TO EXCEED FIFTEEN THOUSAND DOLLARS, MULTIPLIED BY TWENTY-
 FIVE ONE-HUNDREDTHS OF ONE PERCENT PER MONTH OF THE  SERVICE  CREDIT  AS
 DETERMINED  PURSUANT  TO  THIS SUBDIVISION.   ONE-TWELFTH OF THE SUPPLE-
 MENTAL MILITARY RETIREMENT ALLOWANCE SHALL BE ADDED  TO  THE  RETIREMENT
 ALLOWANCE  OF  SUCH  PERSON  EACH MONTH. THE BENEFIT PAYABLE PURSUANT TO
 THIS SECTION SHALL COMMENCE ON THE NEXT RETIREMENT ALLOWANCE PAYABLE  AT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08584-03-7

 S. 6505                             2
 
 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.
   § 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.
   § 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.
   §  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. 6505                             3
 
   § 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.
   § 6. This act shall take effect immediately.
   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. This supplemental benefit would be in lieu of any  bene-
 fit  otherwise  provided  by military service credit. The annual supple-
 mental 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-hun-
 dredths 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  retired
 prior  to  May  21, 2016 and make application no later than December 31,
 2018. This benefit is prospective only and shall commence  at  least  30
 days  after the receipt of said application. There is no member cost for
 this benefit.
   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 $12,400 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  2017-11  dated  March  23,
 2017  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2017 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.
   FISCAL  NOTE.--  This  bill would amend Section 1000 of the Retirement
 and Social Security Law to give veterans who retired prior  to  May  21,
 2016  a supplemental pension equal to their first $15,000 of single life
 allowance together with any cost of living adjustment, multiplied by  3%

 S. 6505                             4
 
 per  year  for up to three (3) years of such service credit for military
 service that would have been eligible if the member retired on or  after
 such  date.  The  surviving spouse of such a retired veteran who chose a
 continued  life  benefit  to  the  spouse shall receive half of what the
 deceased member would have received. There  would  not  be  any  payment
 required  by  an  affected  retiree or surviving spouse for this supple-
 mental pension. Such retiree may make application for  the  supplemental
 pension  no  later than December 31, 2018 and the payment of the benefit
 will begin with the next monthly pension payment  payable  at  least  30
 days after receipt of the application.
   The  exact  number  of  retirees that could be affected by this legis-
 lation 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  and  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 applies for this benefit a cost will be
 generated, which will be billed to the state.
   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, 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.
   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  February  3,  2017,  and intended for use only
 during the  2017  Legislative  Session,  is  Fiscal  Note  No.  2017-50,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.

co-Sponsors

2017-S6505A - Details

See Assembly Version of this Bill:: A10324
Current Committee:: Senate Rules
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§1000, 78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6820
2015-2016: S5065
2019-2020: S3968
2021-2022: S5110
2023-2024: S7529

2017-S6505A - Summary

Relates to supplemental military retirement allowances for members of public retirement systems of the state.

2017-S6505A - Sponsor Memo

                                
 
BILL NUMBER: S6505A

SPONSOR: LARKIN
 
TITLE OF BILL:  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

 
PURPOSE:

This bill intends to provide veterans who have retired from public
service in the state with a veterans pension benefit similar to that
which active veteran public employees are entitled to receive.

 
SUMMARY OF PROVISIONS:

This bill would:

1. Provide that a member of a public retirement system of the State of
New York who retired prior to May thirty-first, two thousand sixteen may
make application to the retirement system for a supplemental military

allowance;

2. Apply to persons who meet the eligibility requirements of the veter-
an's service credit buy back law;

3. Provide a supplemental military allowance equal to .25% for each
month of military service of such person, to a maximum of 36 months;

4. Provide that the supplemental military allowance shall apply to the
first $15,000, prior to optional modification, of the retired person;
and

5. Require the application for the supplemental military allowance be
made no later than December 31, 2019.

 
EXISTING LAW:

Chapter 41 of the Laws of 2016 permits all honorably discharged veterans
in active public service to have three years of military service credit
added to their retirement service. There is no provision to allow public
retirees to receive a commensurate benefit.  This legislation provides
that benefit.

 
JUSTIFICATION:

The Veterans Service Credit Act of 2000 permitted active military public
employees who served in the military during specific military conflicts
to purchase up to three years retirement credit for that military
service. This was the first opportunity veterans had to include their
military service in their public retirement plan since 1976.

Many Korean veterans were not eligible for that 1976 buy back law.
Vietnam veterans were just entering public service at that time. In the
ensuing years, many of these veterans provided years of dedicated public
service and retired without the ability to add military credit to their
retirement. Current employees now have that ability.


It is unfair to ignore the service provided by veterans to our state and
country now that active employees can receive this benefit. This bill
overcomes that injustice by providing retired veterans with a comparable
supplemental military allowance.

 
LEGISLATIVE HISTORY:

2017: S.6505, Referred to Civil Service and Pension.
2016 & 2015: S.5065-A, Referred to Civil Service and Pensions.
2014: S.6820, Referred to Civil Service and Pensions.
2010 & 2009: S.6217, Valesky, Civil Service and Pensions.
2008 & 2007: S.4555-A, Robach, Civil Service and Pensions.
2006 & 2005: S.2942, Balboni, Civil Service and Pensions.
2004 & 2003: S5002-B, Balboni, Civil Service and Pensions.
2002: S2329-A, Morahan, Civil Service and Pensions.

 
FISCAL IMPLICATIONS:

See fiscal notes attached.

 
EFFECTIVE DATE:
Immediately.

2017-S6505A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6505--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 26, 2017
                                ___________
 
 Introduced by Sens. LARKIN, CARLUCCI, GALLIVAN -- read twice and ordered
   printed,  and  when  printed to be committed to the Committee on Civil
   Service and Pensions -- recommitted to the Committee on Civil  Service
   and  Pensions  in  accordance  with Senate Rule 6, sec. 8 -- 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 MAY THIRTY-FIRST, TWO THOUSAND
 SIXTEEN 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 NINETEEN FOR A SUPPLEMENTAL MILITARY
 RETIREMENT ALLOWANCE PURSUANT TO THIS  SUBDIVISION.    THE  SUPPLEMENTAL
 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  APPLICATION,
 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 MODIFICA-
 TION  AND  NOT TO EXCEED FIFTEEN THOUSAND DOLLARS, MULTIPLIED BY TWENTY-
 FIVE ONE-HUNDREDTHS OF ONE PERCENT PER MONTH OF THE  SERVICE  CREDIT  AS
 DETERMINED  PURSUANT  TO  THIS SUBDIVISION.   ONE-TWELFTH OF THE SUPPLE-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08584-07-8

 S. 6505--A                          2
 
 MENTAL MILITARY RETIREMENT ALLOWANCE SHALL BE ADDED  TO  THE  RETIREMENT
 ALLOWANCE  OF  SUCH  PERSON  EACH MONTH. THE BENEFIT PAYABLE PURSUANT 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.
   §  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.
   § 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.
   § 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

 S. 6505--A                          3
 
 SECURITY LAW. Said percentage is set forth  in  subdivision  d  of  this
 section.
   § 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.
   § 6. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would amend section 1000 of the Retirement and Social Secu-
 rity 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 cred-
 it.  This supplemental benefit would be in lieu of any benefit otherwise
 provided by 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 retired prior to May  31,
 2016  and make application no later than December 31, 2019. This benefit
 is prospective only and shall commence with the next  retirement  allow-
 ance  payable  at  least  30 days after the receipt of said application.
 There is no member cost for this benefit.
   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 $12,300 for each retired member  eligible  for  the  supplemental
 military retirement allowance provided under this bill if enacted.
   Member  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  2018-18  dated  March  30,
 2018  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2018 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.

 S. 6505--A                          4
 
   FISCAL  NOTE.--  This  bill would amend Section 1000 of the Retirement
 and Social Security Law to give veterans who retired prior  to  May  31,
 2016, a supplemental pension equal to their first $15,000 of single life
 allowance  together with any cost of living adjustment, multiplied by 3%
 per  year  for up to three (3) years of such service credit for military
 service that would have been eligible if the member retired on or  after
 such  date.  The  surviving spouse of such a retired veteran who chose a
 continued life benefit to the spouse shall  receive  half  of  what  the
 deceased  member  would  have  received.  There would not be any payment
 required by an affected retiree or surviving  spouse  for  this  supple-
 mental  pension.  Such retiree may make application for the supplemental
 pension no later than December 31, 2019 and the payment of  the  benefit
 will  begin  with  the  next monthly pension payment payable at least 30
 days after receipt of the application.
   The exact number of retirees that could be  affected  by  this  legis-
 lation 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 and 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 applies for this benefit a  cost  will  be
 generated, which will be billed to the State.
   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, 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 9, 2018, and intended for use  only  during
 the  2018  Legislative  Session, is Fiscal Note No. 2018-71, prepared by
 the Actuary for the New York State and Local Retirement System.

co-Sponsors

View additional co-sponsors

2017-S6505B (ACTIVE) - Details

See Assembly Version of this Bill:: A10324
Current Committee:: Senate Rules
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§1000, 78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6820
2015-2016: S5065
2019-2020: S3968
2021-2022: S5110
2023-2024: S7529

2017-S6505B (ACTIVE) - Summary

Relates to supplemental military retirement allowances for members of public retirement systems of the state.

2017-S6505B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6505B

SPONSOR: LARKIN
 
PURPOSE:

This bill intends to provide veterans who have retired from public
service in the state with a veterans pension benefit similar to that
which active veteran public employees are entitled to receive.

 
SUMMARY OF PROVISIONS:

This bill would:

1. Provide that a member of a public retirement system of the State of
New York who retired prior to May thirty-first, two thousand sixteen may
make application to the retirement system for a supplemental military
allowance;

2. Apply to persons who meet the eligibility requirements of the veter-
an's service credit buy back law;

3. Provide a supplemental military allowance equal to .25% for each

month of military service of such person, to a maximum of 36 months;

4. Provide that the supplemental military allowance shall apply to the
first $15,000, prior to optional modification, of the retired person;
and

5. Require the application for the supplemental military allowance be
made no later than December 31, 2019.

 
EXISTING LAW:

Chapter 41 of the Laws of 2016 permits all honorably discharged veterans
in active public service to have three years of military service credit
added to their retirement service. There is no provision to allow public
retirees to receive a commensurate benefit.  This legislation provides
that benefit.

 
JUSTIFICATION:

The Veterans Service Credit Act of 2000 permitted active military public
employees who served in the military during specific military conflicts
to purchase up to three years retirement credit for that military
service. This was the first opportunity veterans had to include their
military service in their public retirement plan since 1976.

Many Korean veterans were not eligible for that 1976 buy back law.
Vietnam veterans were just entering public service at that time. In the
ensuing years, many of these veterans provided years of dedicated public
service and retired without the ability to add military credit to their
retirement. Current employees now have that ability.

It is unfair to ignore the service provided by veterans to our state and
country now that active employees can receive this benefit. This bill
overcomes that injustice by providing retired veterans with a comparable
supplemental military allowance.

 
LEGISLATIVE HISTORY:
2017: S.6505, Referred to Civil Service and Pension.
2016 & 2015: S.5065-A, Referred to Civil Service and Pensions.
2014: S.6820,Referred to Civil Service and Pensions.
2010 & 2009: S.6217, Valesky, Civil Service and Pensions.
2008 & 2007: S.4555-A, Robach, Civil Service and Pensions.
2006 & 2005: S.2942, Balboni, Civil Service and Pensions.
2004 & 2003: S5002-B, Balboni, Civil Service and Pensions.
2002: S2329-A, Morahan, Civil Service and Pensions.

 
FISCAL IMPLICATIONS:

See fiscal notes attached.

 
EFFECTIVE DATE:
Immediately.

2017-S6505B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6505--B
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 26, 2017
                                ___________
 
 Introduced  by Sens. LARKIN, CARLUCCI, GALLIVAN, JACOBS, VALESKY -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on Civil Service and Pensions -- recommitted to the Commit-
   tee on Civil Service and Pensions in accordance with  Senate  Rule  6,
   sec.  8  --  committee  discharged, bill amended, ordered reprinted as
   amended and recommitted to said  committee  --  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 MAY THIRTY-FIRST, TWO THOUSAND
 SIXTEEN 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 NINETEEN FOR A SUPPLEMENTAL MILITARY
 RETIREMENT ALLOWANCE PURSUANT TO THIS  SUBDIVISION.    THE  SUPPLEMENTAL
 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  APPLICATION,
 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 MODIFICA-
 TION  AND  NOT TO EXCEED FIFTEEN THOUSAND DOLLARS, MULTIPLIED BY TWENTY-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08584-09-8

 S. 6505--B                          2
 
 FIVE ONE-HUNDREDTHS OF ONE PERCENT PER MONTH OF THE  SERVICE  CREDIT  AS
 DETERMINED  PURSUANT  TO  THIS SUBDIVISION.   ONE-TWELFTH OF THE SUPPLE-
 MENTAL MILITARY RETIREMENT ALLOWANCE SHALL BE ADDED  TO  THE  RETIREMENT
 ALLOWANCE  OF  SUCH  PERSON  EACH MONTH. THE BENEFIT PAYABLE PURSUANT 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.
   §  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.
   § 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.
   § 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

 S. 6505--B                          3
 
 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.
   § 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.
   § 6. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would amend section 1000 of the Retirement and Social Secu-
 rity 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 cred-
 it.  This supplemental benefit would be in lieu of any benefit otherwise
 provided by 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 retired prior to May  31,
 2016  and make application no later than December 31, 2019. This benefit
 is prospective only and shall commence with the next  retirement  allow-
 ance  payable  at  least  30 days after the receipt of said application.
 There is no member cost for this benefit.
   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 $12,300 for each retired member  eligible  for  the  supplemental
 military retirement allowance provided under this bill if enacted.
   Member  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  2018-18  dated  March  30,
 2018  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2018 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.

 S. 6505--B                          4
 
   FISCAL  NOTE.--  This  bill would amend Section 1000 of the Retirement
 and Social Security Law to give veterans who retired prior  to  May  31,
 2016, a supplemental pension equal to their first $15,000 of single life
 allowance  together with any cost of living adjustment, multiplied by 3%
 per  year  for up to three (3) years of such service credit for military
 service that would have been eligible if the member retired on or  after
 such  date.  The  surviving spouse of such a retired veteran who chose a
 continued life benefit to the spouse shall  receive  half  of  what  the
 deceased  member  would  have  received.  There would not be any payment
 required by an affected retiree or surviving  spouse  for  this  supple-
 mental  pension.  Such retiree may make application for the supplemental
 pension no later than December 31, 2019 and the payment of  the  benefit
 will  begin  with  the  next monthly pension payment payable at least 30
 days after receipt of the application.
   The exact number of retirees that could be  affected  by  this  legis-
 lation 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 and 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 applies for this benefit a  cost  will  be
 generated, which will be billed to the State.
   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, 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 9, 2018, and intended for use  only  during
 the  2018  Legislative  Session, is Fiscal Note No. 2018-71, prepared by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE. -- The proposed legislation would  amend  Retirement  and
 Social  Security Law (RSSL) Section 1000 by adding a new subdivision 8-a
 to allow eligible retirees who retired from a public  retirement  system
 within  the State prior to May 31, 2016, and who would have had qualify-
 ing military service had they  been  active  members,  to  apply  for  a
 prospective  supplemental  military  retirement  allowance (Supplemental
 Retirement Allowance).
   For purposes of this Fiscal Note, "NYCRS" refers to the New York  City
 Employees'  Retirement  System  (NYCERS),  the  New  York City Teachers'
 Retirement System (TRS), the New York City Board of Education Retirement
 System (BERS), the New York City Police Pension Fund (POLICE),  and  the
 New York City Fire Pension Fund (FIRE).
   With  respect  to  the  NYCERS, the proposed legislation would further
 amend Administrative Code of the City of New York (ACCNY) Section 13-696

 S. 6505--B                          5
 
 to include Cost-of-Living Adjustment (COLA) increases in the calculation
 and payment of such Supplemental Retirement Allowance.
   Effective Date: Upon enactment.
   BACKGROUND:  A NYCERS retiree would be eligible to receive the Supple-
 mental Retirement Allowance (Eligible Recipient) if he or she:
   *Retired prior to May 31, 2016,
   *Would have otherwise met the current  eligibility  criteria  of  RSSL
 Section 1000, and
   *Files an application for such benefit by December 31, 2019.
   The  Supplemental  Retirement  Allowance would be in lieu of any other
 retirement benefit provided for military service.
   For purposes of this Fiscal Note, it is assumed that the  Supplemental
 Retirement Allowance is provided without cost to Eligible Recipients.
   IMPACT ON BENEFITS PAYABLE: With respect to NYCRS Eligible Recipients,
 the  Supplemental  Retirement  Allowance would be payable as of the next
 retirement allowance payment following 30 days from filing  an  applica-
 tion for such benefit.
   The  Supplemental Retirement Allowance would be payable for the Eligi-
 ble Recipient's lifetime, and payable, at 50% of  the  Eligible  Recipi-
 ent's  Supplemental  Retirement  Allowance  rate, for the lifetime of an
 Eligible Recipient's surviving spouse who is eligible to receive a life-
 time retirement allowance benefit under an existing option election.
   The annual Supplemental Retirement Allowance would  be  equal  to  the
 retirement   allowance  of  the  Eligible  Recipient  (computed  without
 optional modification, without certain annuities derived from  voluntary
 contributions  and  not  to exceed $15,000) multiplied by 0.25% for each
 month of qualifying military service (not to exceed 36 months).   There-
 fore,  the  initial  maximum Supplemental Retirement Allowance would not
 exceed $1,350 per year (i.e. $15,000 x 0.25% x 36 months  =  $1,350  per
 year),  and  would  thereafter be subject to the COLA provisions, to the
 extent the total retirement allowance including Supplemental  Retirement
 Allowance  is  less  than  $18,000  per  year, provided by ACCNY Section
 13-696.
   FINANCIAL IMPACT - OVERVIEW: The number of members  who  could  poten-
 tially  benefit from this proposed legislation cannot be determined. For
 illustrative purposes only,  the  table  below  presents  the  estimated
 financial  impact  assuming  that,  (1)  the percentage of retirees that
 would benefit is the same percentage  for  each  of  the  NYCRS  as  the
 percentage  of active members that have purchased military service under
 Chapter 41 of the Laws of 2016 as of June 30, 2017, (2) that each member
 purchased 2.5 years of military service, (3) that each retiree's pension
 is equal to or greater than $15,000 per year, and (4) that the  percent-
 age  of  those retirees who are receiving their pension in the form of a
 Joint and Survivor benefit is the same percentage  as  current  retirees
 for each of the NYCRS.
 
          ESTIMATED FINANCIAL IMPACT FOR PROVIDING A SUPPLEMENTAL
                 RETIREMENT ALLOWANCE TO CERTAIN RETIREES
 
                                        One-Time Increase
 Retirement System                  in Employer Contributions
                                        ($ Millions)
 NYCERS                                     $ 3.8
 TRS                                          0.8
 BERS                                         0.1
 POLICE                                      16.3

 S. 6505--B                          6
 
 FIRE                                         2.1
 Total                                      $23.1*
 *Any  costs  may  be  subject  to  State appropriation and reimbursement
 pursuant to RSSL Section 25.
   FINANCIAL IMPACT - EMPLOYER  CONTRIBUTIONS:  In  accordance  with  the
 ACCNY  Section  13-638.2(k-2),  new  Unfunded  Accrued  Liability  (UAL)
 attributable to benefit changes are to be amortized as determined by the
 Actuary but generally over  the  remaining  working  lifetime  of  those
 impacted  by  the  benefit changes. For this proposed legislation, since
 those that would benefit are retired, the entire increase in  UAL  would
 be recognized in the first year that the increased pension was paid.
   CONTRIBUTION  TIMING:  Increased  pensions  for  the affected retirees
 would commence on the next retirement allowance payable at least  thirty
 days  after  receipt of an application from such person. For purposes of
 this Fiscal Note,  it  is  assumed  that  increased  pensions  would  be
 reflected  in  the census data used in the June 30, 2018 actuarial valu-
 ations of NYCRS.  Under the One-Year Lag Methodology, the  first  fiscal
 year  in  which these changes in benefits would impact employer contrib-
 utions would be Fiscal Year 2020.
   However, since Eligible Recipients have until  December  31,  2019  to
 file  an  application  for  the additional service credit, the increased
 contributions would likely be spread out over Fiscal Years  2020,  2021,
 and 2022.
   OTHER  COSTS:  Not  measured  in  the  Fiscal  Note  are  any possible
 increased administrative costs attributable to enactment of the proposed
 legislation.
   ACTUARIAL ASSUMPTIONS AND METHODS:  In  addition  to  the  assumptions
 described  in the Financial Impact - Overview section above, the changes
 in employer contributions presented herein have been calculated based on
 the same actuarial assumptions and methods in effect for  the  June  30,
 2017  (Lag) actuarial valuation used to determine the Preliminary Fiscal
 Year 2019 employer contributions of NYCRS. Please note these assumptions
 and methods are subject to change as this valuation  is  not  considered
 final until the end of the Fiscal Year 2019.
   STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
 ary for, and independent of, the New York City  Retirement  Systems  and
 Pension  Funds.  I  am a Fellow of the Society of Actuaries, an Enrolled
 Actuary under the Employee Retirement Income and Security  Act  of  1974
 (ERISA),  a Member of the American Academy of Actuaries, and a Fellow of
 the Conference of Consulting Actuaries. I meet the Qualification  Stand-
 ards  of the American Academy of Actuaries to render the actuarial opin-
 ion contained herein. To the best of my knowledge, the results contained
 herein have been prepared in accordance with generally accepted actuari-
 al principles and procedures and with the Actuarial Standards  of  Prac-
 tice issued by the Actuarial Standards Board.
   FISCAL  NOTE  IDENTIFICATION:  This  Fiscal  Note 2018-24 dated May 2,
 2018, was prepared by the Chief Actuary for the New York City Employees'
 Retirement System, the New York City Teachers'  Retirement  System,  the
 New  York  City  Board of Education Retirement System, the New York City
 Police Pension Fund, and the New York City Fire Pension Fund. This esti-
 mate is intended for use only during the 2018 Legislative Session.

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Senate Bill S6505B

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Archive: Last Bill Status - In Senate Committee Rules Committee

Bill Amendments

co-Sponsors

2017-S6505 - Details

2017-S6505 - Summary

2017-S6505 - Sponsor Memo

2017-S6505 - Bill Text download pdf

co-Sponsors

2017-S6505A - Details

2017-S6505A - Summary

2017-S6505A - Sponsor Memo

2017-S6505A - Bill Text download pdf

co-Sponsors

2017-S6505B (ACTIVE) - Details

2017-S6505B (ACTIVE) - Summary

2017-S6505B (ACTIVE) - Sponsor Memo

2017-S6505B (ACTIVE) - Bill Text download pdf

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