S T A T E   O F   N E W   Y O R K
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                                   8008
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 30, 2019
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT  to amend the retirement and social security law, in relation to
   transfer of retirement membership for certain employees of SUNY within
   the professional, scientific and technical bargaining unit

   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 section 618 to read as follows:
   § 618. TRANSFER OF MEMBERSHIP INTO NEW YORK STATE AND LOCAL EMPLOYEES'
 RETIREMENT SYSTEM. A. DEFINITIONS. WHENEVER USED IN THIS SECTION:
   1.  THE  TERM  "ELIGIBLE  EMPLOYEE"  SHALL MEAN A PERSON WHO AS OF THE
 EFFECTIVE DATE OF THIS SECTION IS AN EMPLOYEE OF THE STATE UNIVERSITY OF
 NEW YORK IN A POSITION WITHIN THE PROFESSIONAL, SCIENTIFIC AND TECHNICAL
 BARGAINING UNIT AND WHO IS, AS OF SAID EFFECTIVE DATE, A MEMBER  OF  THE
 OPTIONAL  RETIREMENT  PROGRAM  AND  WHO  IS A REGISTERED NURSE WHO FIRST
 BECAME AN EMPLOYEE OF THE STATE UNIVERSITY OF NEW YORK  AT  STONY  BROOK
 HOSPITAL  ON  A  DATE BETWEEN JANUARY FIRST, NINETEEN HUNDRED NINETY-SIX
 AND DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-NINE AND WHO IS STILL
 EMPLOYED BY THE STATE UNIVERSITY OF NEW YORK AS OF THE DATE SAID EMPLOY-
 EE FILES AN APPLICATION PURSUANT TO SUBDIVISION B OF THIS SECTION;
   2. THE TERM "OPTIONAL RETIREMENT  PROGRAM"  SHALL  MEAN  THE  OPTIONAL
 RETIREMENT PROGRAM ESTABLISHED PURSUANT TO ARTICLE EIGHT-B OF THE EDUCA-
 TION LAW.
   B.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW, AN ELIGIBLE EMPLOYEE
 SHALL BE ALLOWED TO BECOME A MEMBER OF THE  NEW  YORK  STATE  AND  LOCAL
 EMPLOYEES'  RETIREMENT SYSTEM BY FILING AN APPLICATION WITH SAID RETIRE-
 MENT SYSTEM NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY.
   C. AN ELIGIBLE EMPLOYEE WHO FILES AN APPLICATION TO BECOME A MEMBER OF
 THE NEW YORK STATE AND  LOCAL  EMPLOYEES'  RETIREMENT  SYSTEM  SHALL  BE
 DEEMED  TO  BE A MEMBER OF THAT RETIREMENT SYSTEM WITH A DATE OF MEMBER-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08687-02-9

 A. 8008                             2
 
 SHIP AS OF THE DATE SAID ELIGIBLE EMPLOYEE WAS  FIRST  EMPLOYED  BY  THE
 STATE  UNIVERSITY OF NEW YORK. THE ELIGIBLE EMPLOYEE'S MEMBERSHIP IN THE
 OPTIONAL RETIREMENT PROGRAM SHALL TERMINATE AS OF THE DATE SAID APPLICA-
 TION IS FILED.
   D. AN ELIGIBLE EMPLOYEE WHO BECOMES A MEMBER OF THE NEW YORK STATE AND
 LOCAL  EMPLOYEES'  RETIREMENT  SYSTEM  PURSUANT TO SUBDIVISION B OF THIS
 SECTION MAY ELECT TO PURCHASE CREDIT FOR PREVIOUS SERVICE FOR ANY PERIOD
 DURING WHICH SAID EMPLOYEE WAS  A  MEMBER  OF  THE  OPTIONAL  RETIREMENT
 PROGRAM  BY  FILING  AN  APPLICATION  WITH  THE NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM NO LATER THAN  DECEMBER  THIRTY-FIRST,  TWO
 THOUSAND  TWENTY  AND  BY  PAYING TO SAID RETIREMENT SYSTEM AN AMOUNT AS
 DETERMINED BY THE COMPTROLLER EQUAL TO THE FULL COST  OF  SUCH  PREVIOUS
 SERVICE CREDIT PURCHASED WHICH SHALL INCLUDE AN AMOUNT EQUIVALENT TO THE
 ADDITIONAL  COSTS TO THE EMPLOYER OF PROVIDING RETIREMENT SERVICE CREDIT
 TO SUCH EMPLOYEE WHILE SUCH  EMPLOYEE  WAS  A  MEMBER  OF  THE  OPTIONAL
 RETIREMENT  PROGRAM  AS  DETERMINED  BY  THE  ACTUARY FOR THE RETIREMENT
 SYSTEM. SAID PAYMENT MAY BE MADE BY A TRANSFER OF FUNDS FROM THE EMPLOY-
 EE'S OPTIONAL RETIREMENT PROGRAM ACCOUNT TO THE NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM. SAID PAYMENT  MAY  ALSO  BE  MADE  IN  ONE
 PAYMENT  BY  THE  EMPLOYEE  OR BY PAYROLL DEDUCTION OVER A PERIOD NOT TO
 EXCEED FIVE YEARS.
   § 2. Notwithstanding any other provision of law to the contrary,  none
 of  the  provisions  of  this  act shall be subject to section 25 of the
 retirement and social security law.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill will allow any employee of the State University of New  York
 (SUNY)  who is a registered nurse in a position within the Professional,
 Scientific and Technical bargaining unit, who first became employed with
 SUNY at Stony Brook Hospital between January 1, 1996  and  December  31,
 1999,  and who enrolled in the Optional Retirement Program, to terminate
 their membership in the Optional Retirement Program and to be deemed  to
 be a member of the New York State and Local Employees' Retirement System
 (NYSLERS)  with  a date of membership as of the date of first employment
 by SUNY. Affected members will  be  required  to  pay  the  entire  past
 service  cost  as  determined  by  the  Comptroller  in order to receive
 retirement service credit for service rendered prior to their  dates  of
 membership.
   If  this  bill is enacted, the number of employees who may be affected
 cannot be readily determined. For every  employee  who  does  so  elect,
 there  will  be an annual cost to the State of New York of approximately
 15.8% of salary beginning with the fiscal year ending March 31, 2020.
   In addition to the annual cost above, for every member who elects this
 benefit, there will be a past service cost that will depend on the  age,
 service  and salary of the member. Members will be able to pay this cost
 using any of three methods, including a transfer  of  funds  from  their
 Optional  Retirement  Program balance, a one-time payment, or by payroll
 deduction over a period not to exceed five (5) years.
   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

 A. 8008                             3
 
 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.
   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 April 30, 2019, and intended for use only  during
 the  2019  Legislative Session, is Fiscal Note No. 2019-106, prepared by
 the Actuary for the New York State and Local Retirement System.