S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6978
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 29, 2019
                                ___________
 
 Introduced  by M. of A. MONTESANO, LAWRENCE -- read once and referred to
   the Committee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   calculating the final average salary of justices and judges within the
   New York state unified court system

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 9 of section 2 of  the  retirement  and  social
 security law is amended by adding a new paragraph d to read as follows:
   D. IN THE CASE OF A MEMBER WHO:
   (1) SERVED AS AN ELECTED OR APPOINTED JUSTICE OR JUDGE OF THE NEW YORK
 STATE UNIFIED COURT SYSTEM, AND
   (2)  WAS PAID PURSUANT TO THE SALARY SET BY THE COMMISSION OF JUDICIAL
 COMPENSATION, AND
   (3) SHALL HAVE SERVED AT LEAST THREE YEARS OF  THE  JUDICIAL  TERM  TO
 WHICH  HE  OR SHE WAS APPOINTED OR ELECTED, SUCH TERM SHALL MEAN, AT THE
 OPTION OF SUCH MEMBER, THE LAST SALARY SET BY THE COMMISSION ON JUDICIAL
 COMPENSATION FOR THE YEAR IN WHICH SAID MEMBER LAST SERVED.
   § 2. Section 443 of the retirement and social security law is  amended
 by adding a new subdivision h to read as follows:
   H.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISIONS A AND B OF THIS
 SECTION, WITH RESPECT TO A MEMBER WHO SERVED AS AN ELECTED OR  APPOINTED
 JUSTICE  OR  JUDGE  OF  THE NEW YORK STATE UNIFIED COURT SYSTEM, WHO WAS
 PAID PURSUANT TO THE SALARY SET BY THE COMMISSION  ON  JUDICIAL  COMPEN-
 SATION,  AND  WHO SHALL HAVE SERVED AT LEAST THREE YEARS OF THE JUDICIAL
 TERM TO WHICH HE OR SHE WAS APPOINTED  OR  ELECTED,  THE  FINAL  AVERAGE
 SALARY  SHALL MEAN, AT THE OPTION OF SUCH MEMBER, THE LAST SALARY SET BY
 THE COMMISSION ON JUDICIAL COMPENSATION  FOR  THE  YEAR  IN  WHICH  SAID
 MEMBER LAST SERVED.
   §  3. Section 512 of the retirement and social security law is amended
 by adding a new subdivision e to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08289-02-9

 A. 6978                             2
 
   E. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS  A  AND  B  OF  THIS
 SECTION,  WITH RESPECT TO A MEMBER WHO SERVED AS AN ELECTED OR APPOINTED
 JUSTICE OR JUDGE OF THE NEW YORK STATE UNIFIED  COURT  SYSTEM,  WHO  WAS
 PAID  PURSUANT  TO  THE SALARY SET BY THE COMMISSION ON JUDICIAL COMPEN-
 SATION,  AND  WHO SHALL HAVE SERVED AT LEAST THREE YEARS OF THE JUDICIAL
 TERM TO WHICH HE OR SHE WAS APPOINTED  OR  ELECTED,  THE  FINAL  AVERAGE
 SALARY  SHALL MEAN, AT THE OPTION OF SUCH MEMBER, THE LAST SALARY SET BY
 THE COMMISSION ON JUDICIAL COMPENSATION  FOR  THE  YEAR  IN  WHICH  SAID
 MEMBER LAST SERVED.
   §  4. Section 608 of the retirement and social security law is amended
 by adding a new subdivision f to read as follows:
   F. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS  A  AND  B  OF  THIS
 SECTION,  WITH RESPECT TO A MEMBER WHO SERVED AS AN ELECTED OR APPOINTED
 JUSTICE OR JUDGE OF THE NEW YORK STATE UNIFIED  COURT  SYSTEM,  WHO  WAS
 PAID  PURSUANT  TO  THE SALARY SET BY THE COMMISSION ON JUDICIAL COMPEN-
 SATION, AND WHO SHALL HAVE SERVED AT LEAST THREE YEARS OF  THE  JUDICIAL
 TERM  TO  WHICH  HE  OR  SHE WAS APPOINTED OR ELECTED, THE FINAL AVERAGE
 SALARY SHALL MEAN, AT THE OPTION OF SUCH MEMBER, THE LAST SALARY SET  BY
 THE  COMMISSION  ON  JUDICIAL  COMPENSATION  FOR  THE YEAR IN WHICH SAID
 MEMBER LAST SERVED.
   § 5. All past service costs associated with the implementation of this
 act shall be borne by the state.
   § 6. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill will allow any member who served as an elected or  appointed
 justice  or  judge  of  the  New York State Unified Court System to have
 their final average salary determined using the rate of  salary  set  by
 the Commission on Judicial Compensation for the year in which the member
 last served.
   If this legislation is enacted during the 2019 legislative session, it
 is  estimated  that  there  will  be  an  increase of approximately $1.9
 million in the annual contributions of the state of  New  York  for  the
 fiscal  year ending March 31, 2020. In future years, this cost will vary
 as the billing rates and salaries of the affected members change.
   In addition to the annual contributions discussed above, it  is  esti-
 mated that there will be a past service cost of $57.4 million which will
 be  borne  by the state of New York as a one-time payment, assuming that
 such payment will be made on March 1, 2020.
   This estimate is based on a group of 1,205  affected  members  with  a
 salary  for  the fiscal year ending March 31, 2018 of approximately $216
 million. A list of eligible job titles was provided  by  the  Office  of
 Court Administration.
   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, 2018  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2018
 Report of the  Actuary  and  the  2018  Comprehensive  Annual  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2015,
 2016, 2017 and 2018  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, 2018
 New York State and Local  Retirement  System  Financial  Statements  and
 Supplementary Information.

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   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This  fiscal note does not constitute a legal opinion on the viability
 of the proposed change nor is it intended to serve as a  substitute  for
 the professional judgment of an attorney.
   This  estimate, dated March 21, 2019, and intended for use only during
 the 2019 Legislative Session, is Fiscal Note No.  2019-54,  prepared  by
 the Actuary for the New York State and Local Retirement System.