S T A T E O F N E W Y O R K
________________________________________________________________________
6394
2017-2018 Regular Sessions
I N S E N A T E
May 15, 2017
___________
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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11375-02-7
S. 6394 2
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 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
S. 6394 3
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
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.
§ 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, 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 May 4, 2017, and intended for use only during the
2017 Legislative Session, is Fiscal Note No. 2017-90, prepared by the
Actuary for the New York State and Local Retirement System.
