S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7134
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 3, 2018
                                ___________
 
 Introduced  by  Sen.  ORTT  --  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
   providing  county  correction  officers with a special optional twenty
   year retirement plan

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The retirement and social security law is amended by adding
 a new article 14-C to read as follows:
                               ARTICLE 14-C
     OPTIONAL RETIREMENT PLAN FOR COUNTY CORRECTION OFFICERS OR DEPUTY
                SHERIFFS PERFORMING AS CORRECTION OFFICERS
 SECTION 561. DEFINITIONS.
         562. OPTIONAL  TWENTY  YEAR  RETIREMENT PLAN FOR CERTAIN MEMBERS
                WHOSE EMPLOYER ELECTS TO PROVIDE SAME.
         563. ADDITIONAL PENSION BENEFIT FOR MEMBERS OF  OPTIONAL  TWENTY
                YEAR RETIREMENT PLAN.
         564. CONSISTENT PROVISIONS.
   § 561. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   (A)  "MEMBER"  SHALL  MEAN  A  PERSON  WHO  IS  EMPLOYED  AS  A COUNTY
 CORRECTION OFFICER OR A  DEPUTY  SHERIFF  WHO  IS  ENGAGED  DIRECTLY  IN
 CORRECTION  OFFICER  DUTIES  THAT  AGGREGATE  FIFTY  PER CENTUM OF THEIR
 SERVICE BY A COUNTY WHICH  ELECTS  BY  RESOLUTION  OR  LOCAL  LAW,  DULY
 ADOPTED, TO PROVIDE THE BENEFITS AS AUTHORIZED BY THIS ARTICLE.
   (B)  "RETIREMENT  SYSTEM"  SHALL  MEAN  THE  NEW  YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM.
   (C) "CREDITABLE SERVICE" SHALL INCLUDE ANY AND ALL SERVICES  PERFORMED
 AS  A  SHERIFF,  UNDERSHERIFF  OR DEPUTY SHERIFF, OR CORRECTION OFFICER.
 CREDIT FOR SERVICE AS A MEMBER OR OFFICER OF THE STATE POLICE  OR  AS  A
 PAID  FIREMAN,  POLICEMAN OR OFFICER OF ANY ORGANIZED FIRE DEPARTMENT OR
 POLICE FORCE OR DEPARTMENT OF ANY  COUNTY,  CITY,  VILLAGE,  TOWN,  FIRE
 DISTRICT  OR  POLICE  DISTRICT,  SHALL  ALSO  BE DEEMED TO BE CREDITABLE
 SERVICE AND SHALL BE INCLUDED IN COMPUTING YEARS OF  TOTAL  SERVICE  FOR
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04153-04-7

 S. 7134                             2
 
 RETIREMENT PURSUANT TO THIS SECTION, PROVIDED SUCH SERVICE WAS PERFORMED
 BY  THE  MEMBER  WHILE CONTRIBUTING TO THE RETIREMENT SYSTEM PURSUANT TO
 THE PROVISIONS OF THIS ARTICLE OR ARTICLE EIGHT OF THIS CHAPTER.
   §  562. OPTIONAL TWENTY YEAR RETIREMENT PLAN FOR CERTAIN MEMBERS WHOSE
 EMPLOYER ELECTS TO PROVIDE SAME. (A) ANY MEMBER OF THE RETIREMENT SYSTEM
 MAY ELECT TO BECOME A MEMBER PURSUANT TO THE PROVISIONS OF THIS  SECTION
 WITHIN ONE YEAR AFTER HE OR SHE BECOMES A MEMBER, IF HIS OR HER EMPLOYER
 HAS  ELECTED  TO MAKE THE BENEFITS PROVIDED BY THIS SECTION AVAILABLE TO
 MEMBERS, OR WITHIN ONE YEAR AFTER HIS OR HER EMPLOYER ELECTS TO MAKE THE
 BENEFITS PROVIDED BY THIS SECTION AVAILABLE TO ITS MEMBERS.
   (B) ELECTIONS MADE PURSUANT TO THIS SECTION SHALL BE  IN  WRITING  AND
 SHALL  BE  DULY  ACKNOWLEDGED AND FILED WITH THE COMPTROLLER. ANY MEMBER
 WHO FILES SUCH AN ELECTION PURSUANT TO  THIS  SECTION  MAY  WITHDRAW  IT
 AFTER IT HAS BEEN FILED FOR AT LEAST A YEAR. SUCH WITHDRAWAL SHALL BE BY
 WRITTEN NOTICE DULY ACKNOWLEDGED AND FILED WITH THE COMPTROLLER.
   (C) A MEMBER PARTICIPATING ON THE BASIS OF THIS SECTION AT THE TIME OF
 RETIREMENT  SHALL  BE  ENTITLED TO RETIRE AFTER THE COMPLETION OF TWENTY
 YEARS OF TOTAL CREDITABLE SERVICE OR UPON THE ATTAINMENT OF  AGE  SIXTY-
 TWO,  BY  FILING  AN  APPLICATION  THEREFOR  IN A MANNER SIMILAR TO THAT
 PROVIDED IN THIS CHAPTER.
   (I) UPON COMPLETION OF TWENTY YEARS OF SUCH SERVICE AND  UPON  RETIRE-
 MENT, EACH SUCH MEMBER SHALL RECEIVE A PENSION SUFFICIENT TO PROVIDE HIM
 OR  HER  WITH A RETIREMENT ALLOWANCE EQUAL TO ONE-FORTIETH OF HIS OR HER
 FINAL AVERAGE SALARY FOR EACH YEAR  OF  TOTAL  CREDITABLE  SERVICES  FOR
 WHICH HE OR SHE IS OTHERWISE ENTITLED BUT NOT EXCEEDING IN THE AGGREGATE
 ONE-HALF OF HIS OR HER FINAL AVERAGE SALARY.
   (II)  UPON  ATTAINMENT  OF  AGE  SIXTY-TWO AND UPON RETIREMENT WITHOUT
 COMPLETION OF TWENTY YEARS OF  SUCH  SERVICE,  EACH  SUCH  MEMBER  SHALL
 RECEIVE  A  PENSION  SUFFICIENT  TO PROVIDE HIM OR HER WITH A RETIREMENT
 ALLOWANCE EQUAL TO ONE-FORTIETH OF HIS OR HER FINAL AVERAGE  SALARY  FOR
 EACH  YEAR  OF CREDITABLE SERVICE. EVERY SUCH MEMBER SHALL ALSO BE ENTI-
 TLED TO AN ADDITIONAL PENSION EQUAL TO THE PENSION FOR ANY OTHER CREDIT-
 ABLE SERVICE RENDERED AS OTHERWISE PROVIDED FOR IN THIS CHAPTER.    THIS
 LATTER  PENSION SHALL NOT INCREASE THE TOTAL ALLOWANCE TO MORE THAN ONE-
 HALF OF HIS OR HER FINAL AVERAGE SALARY.
   (D) THE INCREASED PENSIONS  TO  SUCH  MEMBERS,  AS  PROVIDED  BY  THIS
 SECTION, SHALL BE PAID FROM ADDITIONAL CONTRIBUTIONS MADE BY THE PARTIC-
 IPATING  EMPLOYER ON ACCOUNT OF SUCH MEMBERS. THE ACTUARY OF THE RETIRE-
 MENT SYSTEM SHALL COMPUTE THE ADDITIONAL CONTRIBUTION REQUIRED FOR  EACH
 MEMBER  WHO  ELECTS  TO RECEIVE THE SPECIAL BENEFITS PROVIDED UNDER THIS
 SECTION. SUCH ADDITIONAL CONTRIBUTIONS SHALL BE COMPUTED ON THE BASIS OF
 CONTRIBUTIONS DURING THE PROSPECTIVE SERVICE OF SUCH MEMBER  WHICH  WILL
 COVER  THE  LIABILITY  OF THE RETIREMENT SYSTEM FOR SUCH EXTRA PENSIONS.
 UPON APPROVAL OF THE COMPTROLLER, SUCH ADDITIONAL CONTRIBUTIONS SHALL BE
 CERTIFIED BY HIM OR HER TO THE CHIEF FISCAL OFFICER OR THE PARTICIPATING
 EMPLOYER. THE AMOUNT THEREOF SHALL BE INCLUDED IN THE  ANNUAL  APPROPRI-
 ATION  OF  THE  PARTICIPATING EMPLOYER. SUCH AMOUNT SHALL BE PAID ON THE
 WARRANT OF THE CHIEF FISCAL OFFICER OF THE PARTICIPATING EMPLOYER TO THE
 PENSION ACCUMULATION FUND OF THE RETIREMENT SYSTEM.
   (E) IN COMPUTING THE TWENTY YEARS OF COMPLETED SERVICE  OF  A  MEMBER,
 FULL  CREDIT  SHALL BE GIVEN FOR MILITARY SERVICE AS DEFINED IN SUBDIVI-
 SIONS TWENTY-NINE-A AND THIRTY OF SECTION  THREE  HUNDRED  TWO  OF  THIS
 CHAPTER.
   (F)  EVERY  MEMBER PARTICIPATING ON THE BASIS OF THIS SECTION SHALL BE
 SEPARATED FROM THE SERVICE ON THE LAST DAY OF THE  CALENDAR  MONTH  NEXT
 SUCCEEDING  THE CALENDAR MONTH IN WHICH HE OR SHE ATTAINS AGE SIXTY-TWO,

 S. 7134                             3
 
 PROVIDED, HOWEVER, THAT SUCH A MEMBER WHO ATTAINED THE AGE OF  SIXTY-TWO
 BEFORE HIS OR HER EMPLOYER ELECTED TO MAKE THE BENEFITS PROVIDED BY THIS
 SECTION  AVAILABLE  TO  HIM  OR HER, OR WHO ATTAINS THE AGE OF SIXTY-TWO
 WITHIN  ONE  MONTH  AFTER HIS OR HER EMPLOYER MAKES SUCH BENEFITS AVAIL-
 ABLE, TO BE ELIGIBLE FOR A  PENSION  COMPUTED  IN  ACCORDANCE  WITH  THE
 PROVISIONS  OF  THIS SECTION, SHALL BE SEPARATED FROM THE SERVICE WITHIN
 THREE MONTHS AFTER HIS OR HER EMPLOYER MAKES SUCH BENEFITS AVAILABLE.
   (G) THE PROVISIONS OF THIS SECTION SHALL BE CONTROLLING  NOTWITHSTAND-
 ING ANY OTHER PROVISION OF THIS ARTICLE TO THE CONTRARY.
   (H)  THE  BENEFITS  OF  THIS  SECTION SHALL BE AVAILABLE ONLY TO THOSE
 MEMBERS WHOSE EMPLOYER ELECTS TO PROVIDE SUCH  BENEFITS  BY  ADOPTING  A
 RESOLUTION OR LOCAL LAW TO SUCH EFFECT AND FILING A CERTIFIED COPY THER-
 EOF WITH THE COMPTROLLER.
   (I)  THE  BENEFITS  PROVIDED  BY  THIS  SECTION  SHALL BE PAYABLE TO A
 MEMBER, UNLESS AT THE DATE OF RETIREMENT SUCH MEMBER WOULD OTHERWISE  BE
 ENTITLED TO A GREATER BENEFIT UNDER OTHER PROVISIONS OF THIS CHAPTER HAD
 HE OR SHE WITHDRAWN FROM THIS SECTION, IN WHICH EVENT SUCH GREATER BENE-
 FITS SHALL BE PAYABLE.
   §  563. ADDITIONAL PENSION BENEFIT FOR MEMBERS OF OPTIONAL TWENTY YEAR
 RETIREMENT PLAN. (A) A PARTICIPATING  EMPLOYER  WHICH  HAS  ELECTED,  OR
 WHICH ELECTS TO PROVIDE THE BENEFITS OF THE OPTIONAL TWENTY YEAR RETIRE-
 MENT  PLAN  FOR  ITS EMPLOYEES AS SPECIFIED IN THIS ARTICLE MAY ELECT TO
 MAKE CONTRIBUTIONS FOR THE PURPOSE OF PROVIDING  AN  ADDITIONAL  PENSION
 PURSUANT TO THIS SECTION FOR MEMBERS IN ITS EMPLOY WHO ARE ENTITLED TO A
 PENSION  PURSUANT  TO  SECTION  FIVE  HUNDRED SIXTY-TWO OF THIS ARTICLE.
 EVERY MEMBER EMPLOYED BY AN EMPLOYER WHICH HAS ELECTED THE PROVISIONS OF
 SECTION FIVE HUNDRED SIXTY-TWO OF THIS  ARTICLE  AND  THIS  SECTION  MAY
 ELECT TO BE COVERED BY THE PROVISIONS OF THIS SECTION BY FILING WITH THE
 COMPTROLLER, A DULY EXECUTED AND ACKNOWLEDGED FORM PREPARED BY THE COMP-
 TROLLER FOR THAT PURPOSE.
   (B)  UPON RETIREMENT, EACH SUCH MEMBER SHALL RECEIVE, FOR EACH YEAR OF
 SERVICE IN EXCESS OF TWENTY, AN ADDITIONAL PENSION WHICH SHALL BE  EQUAL
 TO  ONE-SIXTIETH  OF HIS OR HER FINAL AVERAGE SALARY; PROVIDED, HOWEVER,
 THAT THE TOTAL ALLOWANCE PAYABLE PURSUANT  TO  THIS  SECTION  SHALL  NOT
 EXCEED THREE-QUARTERS OF SUCH MEMBER'S FINAL AVERAGE SALARY.
   §  564. CONSISTENT PROVISIONS. NOTHING CONTAINED IN THIS ARTICLE SHALL
 BE CONSTRUED TO OTHERWISE AFFECT THE APPLICABILITY  OF  ARTICLE  ELEVEN,
 FOURTEEN  OR FIFTEEN OF THIS CHAPTER. ANY OTHER PROVISIONS OF THIS CHAP-
 TER RELATING TO MANDATORY CONTRIBUTION TO THE  RETIREMENT  SYSTEM  BASED
 UPON A MEMBER'S DATE OF MEMBERSHIP IN SUCH SYSTEM SHALL NOT BE DEEMED TO
 BE AFFECTED BY THE PROVISIONS OF THIS ARTICLE, AND ANY MEMBER WHO ON THE
 EFFECTIVE  DATE  OF THIS ARTICLE IS NOT REQUIRED TO CONTRIBUTE SHALL NOT
 BE REQUIRED TO MAKE ANY CONTRIBUTIONS AS A RESULT OF THIS  SECTION.  FOR
 THOSE  MEMBERS  REQUIRED  TO  CONTRIBUTE  TO THE RETIREMENT SYSTEM, SUCH
 CONTRIBUTION SHALL BE TREATED IN THE SAME MANNER AS SPECIFIED  FOR  SUCH
 MEMBERS IN ARTICLE FOURTEEN OR FIFTEEN OF THIS CHAPTER.
   § 2. Any past service payments required of a county as a result of the
 adoption  of  the benefits permitted by this act may be amortized over a
 period of up to ten years at the option of such county.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill will allow any county to elect to provide  their  correction
 officers  and  deputy  sheriffs  who  are  engaged in correction officer
 duties to become covered by the provisions of a special 20 year  retire-
 ment  plan,  which  will  provide a benefit of one-half of final average
 salary upon retirement. The county may also elect an additional  benefit

 S. 7134                             4
 
 of  one  sixtieth  of  final  average salary for each year of service in
 excess of 20 years, not to exceed 15 such years.
   If this bill is enacted, the increase in the annual contributions of a
 county  electing to provide these benefits will depend on the salary and
 plan coverage of the affected members in its employ.  For  the  20  year
 plan, the additional annual cost will be:
             Current Plan     Tier 3&4    Tier 5        Tier 6
               25-year         4.7%        5.0%          5.5%
               Age 55          7.0%        7.5%          7.1%
   For  the 20 year plan with additional sixtieths, the additional annual
 cost will be:
             Current Plan     Tier 3&4    Tier 5        Tier 6
               25-year         5.2%        5.7%          6.4%
               Age 55          7.5%        8.2%          8.0%
   These costs are stated as of the fiscal year ending March 31, 2019, as
 a percent of affected corrections officers'  salary.  In  future  years,
 this annual cost will vary as the billing rates of these plans change.
   In addition to the annual contributions discussed above, there will be
 an  immediate  past  service  cost for the affected officers which would
 depend on the current salary, plan, age and length  of  service  of  the
 officers,  as  well  as on the proposed plan. This cost may be amortized
 over a period of up to 10 years as determined by  the  employing  county
 which elects the benefit.
   Summary of relevant sources:
   The  membership  date  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  December  8,  2017,  and intended for use only
 during the  2018  Legislative  Session,  is  Fiscal  Note  No.  2018-12,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.