S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2094
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 22, 2019
                                ___________
 
 Introduced  by  Sen.  AKSHAR -- 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
   the  calculation  of  past  service credit for members in the title of
   deputy sheriff transferring between  the  New  York  state  and  local
   employees'  retirement  system  to the New York state and local police
   and fire retirement system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  43  of the retirement and social security law is
 amended by adding a new subdivision m to read as follows:
   M. 1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
 RY, ANY MEMBER IN THE TITLE OF DEPUTY SHERIFF TRANSFERRING FROM THE  NEW
 YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM TO THE NEW YORK STATE
 AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM AFTER THE EFFECTIVE DATE  OF
 THIS  SUBDIVISION AND ANY MEMBER PREVIOUSLY IN THE TITLE OF DEPUTY SHER-
 IFF HAVING MADE SUCH TRANSFER SHALL BE ENTITLED TO  A  DETERMINATION  OF
 THE  AMOUNT OF SERVICE CREDIT THAT IS ELIGIBLE ON A TWENTY YEAR OR TWEN-
 TY-FIVE YEAR RETIREMENT PLAN IF, WITHIN ONE YEAR OF THE DATE ON WHICH HE
 OR SHE FIRST BECAME A MEMBER OF THE NEW YORK STATE AND LOCAL POLICE  AND
 FIRE  RETIREMENT SYSTEM OR WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS
 SUBDIVISION, SUCH MEMBER ELECTS TO DO SO.  IF  THE  MEMBER  SUBSEQUENTLY
 TRANSFERS  BACK  TO  THE  NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM, THE FULL AMOUNT OF SERVICE CREDIT EARNED WHILE IN THE  TITLE  OF
 DEPUTY SHERIFF SHALL BE TRANSFERRED BACK TO THE NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM.
   2.  THE  CALCULATION OF THE AMOUNT OF SUCH SERVICE CREDIT FOR A MEMBER
 WILL BE DETERMINED BY MULTIPLYING THE ELIGIBLE SERVICE CREDITED  IN  THE
 NEW  YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN BY A SALARY
 MULTIPLIER, REFLECTING THE RATE OF SALARY IN  THE  NEW  YORK  STATE  AND
 LOCAL  EMPLOYEES'  RETIREMENT SYSTEM PLAN RELATIVE TO THE RATE OF SALARY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05171-02-9

 S. 2094                             2
 
 IN THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM  PLAN,
 AND  A BILLING RATE MULTIPLIER, REFLECTING THE ACTUARIAL LONG-TERM AVER-
 AGE BILLING RATE IN THE NEW YORK STATE AND LOCAL  EMPLOYEES'  RETIREMENT
 SYSTEM  PLAN RELATIVE TO THE ACTUARIAL LONG-TERM AVERAGE BILLING RATE IN
 THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN. THE
 DETERMINATION OF THE SALARY MULTIPLIER AND BILLING RATE MULTIPLIER  WILL
 BE  DETERMINED BY THE ACTUARY OF THE NEW YORK STATE AND LOCAL EMPLOYEES'
 RETIREMENT SYSTEM AND THE NEW YORK  STATE  AND  LOCAL  POLICE  AND  FIRE
 RETIREMENT  SYSTEM. THE AMOUNT OF SUCH SERVICE CREDITED TO THE MEMBER IN
 THE NEW YORK STATE AND LOCAL POLICE  AND  FIRE  RETIREMENT  SYSTEM  PLAN
 SHALL NOT EXCEED THE AMOUNT OF SERVICE CREDITED TO THE MEMBER IN THE NEW
 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN.
   §  2. Section 343 of the retirement and social security law is amended
 by adding a new subdivision i to read as follows:
   I. 1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
 RY, ANY MEMBER IN THE TITLE OF DEPUTY SHERIFF TRANSFERRING FROM THE  NEW
 YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM TO THE NEW YORK STATE
 AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM AFTER THE EFFECTIVE DATE  OF
 THIS  SUBDIVISION AND ANY MEMBER PREVIOUSLY IN THE TITLE OF DEPUTY SHER-
 IFF HAVING MADE SUCH TRANSFER SHALL BE ENTITLED TO  A  DETERMINATION  OF
 THE  AMOUNT OF SERVICE CREDIT THAT IS ELIGIBLE ON A TWENTY YEAR OR TWEN-
 TY-FIVE YEAR RETIREMENT PLAN IF, WITHIN ONE YEAR OF THE DATE ON WHICH HE
 OR SHE FIRST BECAME A MEMBER OF THE NEW YORK STATE AND LOCAL POLICE  AND
 FIRE  RETIREMENT SYSTEM OR WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS
 SUBDIVISION, SUCH MEMBER ELECTS TO DO SO.  IF  THE  MEMBER  SUBSEQUENTLY
 TRANSFERS  BACK  TO  THE  NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM, THE FULL AMOUNT OF SERVICE CREDIT EARNED WHILE IN THE  TITLE  OF
 DEPUTY  SHERIFF  SHALL  BE  TRANSFERRED BACK TO NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM.
   2. THE CALCULATION OF THE AMOUNT OF SUCH SERVICE CREDIT FOR  A  MEMBER
 WILL  BE  DETERMINED BY MULTIPLYING THE ELIGIBLE SERVICE CREDITED IN THE
 NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN BY  A  SALARY
 MULTIPLIER,  REFLECTING  THE  RATE  OF  SALARY IN THE NEW YORK STATE AND
 LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN RELATIVE TO THE RATE  OF  SALARY
 IN  THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN,
 AND A BILLING RATE MULTIPLIER, REFLECTING THE ACTUARIAL LONG-TERM  AVER-
 AGE  BILLING  RATE IN THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM PLAN RELATIVE TO THE ACTUARIAL LONG-TERM AVERAGE BILLING RATE  IN
 THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN. THE
 DETERMINATION  OF THE SALARY MULTIPLIER AND BILLING RATE MULTIPLIER WILL
 BE DETERMINED BY THE ACTUARY OF THE NEW YORK STATE AND LOCAL  EMPLOYEES'
 RETIREMENT  SYSTEM  AND  THE  NEW  YORK  STATE AND LOCAL POLICE AND FIRE
 RETIREMENT SYSTEM. THE AMOUNT OF SUCH SERVICE CREDITED TO THE MEMBER  IN
 THE  NEW  YORK  STATE  AND  LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN
 SHALL NOT EXCEED THE AMOUNT OF SERVICE CREDITED TO THE MEMBER IN THE NEW
 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN.
   3. IF THE MEMBER SUBSEQUENTLY RETIRES ON AN AGE BASED RETIREMENT  PLAN
 IN  THE  NEW  YORK  STATE  AND  LOCAL  POLICE AND FIRE RETIREMENT SYSTEM
 INSTEAD OF A TWENTY YEAR OR TWENTY-FIVE YEAR PLAN, THE  FULL  AMOUNT  OF
 SERVICE  CREDIT  EARNED  WHILE  IN  THE TITLE OF DEPUTY SHERIFF SHALL BE
 GRANTED.
   4. NO MEMBER WHO RECEIVES SERVICE CREDIT PURSUANT TO THIS  SUBDIVISION
 SHALL  BE  ELIGIBLE  TO  RECEIVE  ADDITIONAL  SERVICE CREDIT PURSUANT TO
 SUBDIVISION B OF SECTION THREE HUNDRED EIGHTY FOUR-E OF THIS ARTICLE  IF
 HIS OR HER EMPLOYER HAS ELECTED TO PROVIDE SUCH SERVICE CREDIT.

 S. 2094                             3
 
   §  3. This act shall take effect on the sixtieth day after an internal
 revenue service ruling stating that the transfer and crediting of deputy
 sheriff service credit from the New  York  state  and  local  employees'
 retirement  system  into  the  New  York state and local police and fire
 retirement  system  special retirement plan by this act is allowable and
 does not jeopardize such retirement system's tax-qualified  status,  and
 shall  remain  in full force and effect only as long as such transfer is
 authorized pursuant to the provisions  of  the  internal  revenue  code;
 provided,  that  the state comptroller shall notify the legislative bill
 drafting commission upon the occurrence of  such  ruling  and  upon  any
 change  in  the  provisions  of  the internal revenue code affecting the
 provisions of this act in order that  the  commission  may  maintain  an
 accurate and timely effective data base of the official text of the laws
 of  the  state of New York in furtherance of effecting the provisions of
 section 44 of the legislative law and section 70-b of the  public  offi-
 cers law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  will  expand  the  definition  of creditable service under
 20-year and 25-year plans (special plans) in  the  New  York  State  and
 Local Police and Fire Retirement System (PFRS) to include service credit
 earned  in  the  New  York  State and Local Employees' Retirement System
 (ERS) for those individuals previously employed in the title  of  Deputy
 Sheriff.  To be eligible for the service credit, an individual must be a
 member of PFRS and elect to transfer the ERS service credit to the  PFRS
 plan  within 12 months of first joining PFRS, or within 12 months of the
 effective date of the bill, whichever is later. The  amount  of  service
 credit  granted in the PFRS special plan will be calculated by The Actu-
 ary of the New York State and Local Retirement Systems (NYLSRS), not  to
 exceed the service credited under the ERS plan.
   Internal  Revenue  Service  (IRS)  plan qualification issues: granting
 service credit towards retirement in a 20-year  plan  in  the  New  York
 State  and Local Police and Fire Retirement System (PFRS) for employment
 that was not rendered  in  the  PFRS  could  jeopardize  the  Retirement
 System's  governmental  plan  status  and  its  exemption from Employees
 Retirement Income Security Act (ERISA).  This development  could  result
 in  the loss of qualified status, which would mean the loss of tax bene-
 fits. This result would substantially impair the System's value  to  our
 more than one million participants.
   This  legislation  will  not  become  effective until NYLSRS obtains a
 favorable ruling from the IRS stating that these  provisions  would  not
 harm  the qualification status of the System. Further, the provisions of
 this legislation will only continue in full force and  effect  while  so
 authorized  by  the  IRS.  It  is  estimated that the costs to obtain an
 initial ruling would be $28,000 for the services of the  IRS,  and  $800
 per hour for legal consultants.
   In addition to the costs to obtain a ruling from the IRS stated above,
 if  this bill is enacted, there will be an administrative cost to imple-
 ment the provisions of this legislation.
   All costs will be shared and spread by the participating employers  in
 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, 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.

 S. 2094                             4
 
   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.
   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 January 10,  2019,  and  intended  for  use  only
 during  the  2019  Legislative  Session,  is  Fiscal  Note  No. 2019-23,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.