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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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| Jun 17, 2020 |
referred to rules |
Senate Bill S8599
2019-2020 Legislative Session
Provides a temporary retirement incentive for certain public employees (Part A); and provides an age 55/25 years temporary retirement incentive for certain public employees (Part B)
download bill text pdfSponsored By
(D, WF) 4th Senate District
Archive: Last Bill Status - In Senate Committee Rules Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
co-Sponsors
(D, WF) 40th Senate District
(D) 14th Senate District
(D, WF) 47th Senate District
(D, WF) 48th Senate District
(D, WF) Senate District
(D, WF) 13th Senate District
(D, WF) 18th Senate District
(D) 10th Senate District
(D) 42nd Senate District
2019-S8599 (ACTIVE) - Details
- See Assembly Version of this Bill:
- A10595
- Current Committee:
- Senate Rules
- Law Section:
- Retirement
- Versions Introduced in 2021-2022 Legislative Session:
-
S2722, A5087
2019-S8599 (ACTIVE) - Sponsor Memo
BILL NUMBER: S8599
SPONSOR: MARTINEZ
TITLE OF BILL:
An act to provide a temporary retirement incentive for certain public
employees (Part A); and to provide an age 55/25 years temporary retire-
ment incentive for certain public employees (Part B)
PURPOSE OR GENERAL IDEA OF BILL:
This bill would establish a temporary retirement incentive program for
certain state employees and other public employees to assist in stream-
lining the workforce while also achieving cost savings. This bill would
apply to members of the New York State and Local Employees Retirement
System; New York City Employees Retirement System; New York State Teach-
ers Retirement System; New York City Teachers Retirement System; and New
York City Board of Education Retirement-System. The members of the
Police and Fire Retirement Systems are not included because of the
existing 2C- and 25-year retirement options.
SUMMARY OF PROVISIONS: Section 1 of the bill sets forth the components of the act that would enable public employers to offer a temporary retirement incentive to their employees, as well as to provide an age 55/25 years temporary incentive for certain public employees. Section 2 is the legislative findings. Part A - Section 1 of Part A of the bill would define terms and establish eligibility requirements for participation in the retirement incentive program. Eligibility would be determined at employer discretion and excludes agency heads and elected officials. An employer who elects to participate in the retirement incentive program would be required to provide a 30 to 90-day open peri- od to allow eligible employees adequate time to consider the incentive. Eligibility is targeted to positions that can be eliminated for reasons of economy, consolidation, abolition or curtailment of governmental activities. An eligible position can also include a title into which an employee could be transferred to avoid a layoff. Section 2 of Part A of the bill would establish the criteria to be considered in determining whether positions should be eligible for participation in the retirement incentive program. This determination would consider whether the abolition of positions within a title would unacceptably reduce the level of patient care, pose health and safety risks, or result in adverse budgetary implications. Section 3 of Part A of the bill would provide that eligibility for the retirement incentive would be first determined on the basis of seniority and require eligible employees who intend to participate in the incen- tive program to provide written notice to their, employer 21 days prior to the end of the program's open period. Section 4 of Part A of the bill would require certain employers to enact a local law or resolution, as appropriate on or before August 31, 2020, to take advantage of the program. School districts would need to enact such law or resolution by July 30, 2020. This section would also provide that the retirement incentive would not be available to persons other- wise eligible to receive benefits under any other retirement incentive or severance program, unless such person agrees to waive payment under the other program. In addition, this section would authorize the Mayor of the City of New York to declare employees of the community colleges of the City University of New York ineligible for the program by filing a notice with the University Chancellor within 30 days of the effective date of this act. Section 5 of Part A of the bill would require eligible employees to be in active service on the effective date of this act and continue in active service up to the date immediately preceding commencement of the program open period. Eligible employees would need either to be current- ly eligible to retire or be at least 50 years of age with ten or more years of service. Employees who participate in a pension plan that allows for retirement after 25 years of service without regard to age would be eligible for the program as long as they meet the 25-year requirement, which could be achieved with the service credit provided by the incentive. Section 6 of Part A of the bill would establish the retirement incentive benefit as one-twelfth of a year of additional retirement service credit for each year of pension service, up to a maximum of 3 years of addi- tional retirement service credit. The benefit would be subject to reduction for early retirement based on the employee's tier, age and years. of service. Eligible employees who participate in an optional retirement program would receive a retirement incentive of one-twelfth for each year of, service multiplied by 15 percent multiplied by the employee's annual salary, up to a maximum benefit equal to 45 percent salary. Section 7 of Part A of the bill would provide that state employees who participate in the program may defer participation in the health insur- ance program as well as the calculation of the value of available sick leave credits to offset the retiree's share of health insurance premi- ums. This section would also authorize the payment of certain leave compensation in 3 installments over a 2-year period to New York City employees. Section 8 of Part A of the bin would require the elimination of any position vacated by a state employee receiving the retirement incentive, other than a position supported by Special Revenue Funds. An exception to this rule is made where another state employee could be appointed, transferred or reassigned to the vacated position to avoid a layoff, This section would also authorize the Director of State Operations to direct the Department of Civil Service to prepare a report designating the title, grade level, .salary, and classification of each position eliminated, each position into which another employee was appointed, transferred, or reassigned and the former position of such employee, and . each position eliminated as a result of an appointment, transfer, or reassignment. Section 9 of Part A of the bill would provide that local government employers and the State University of New York would not be required to eliminate positions vacated as a result of the retirement incentive if they can demonstrate savings of at least one-half of the total amount of the base salary of employees who receive the incentive for the 2-year period subsequent to the program. Section 10 of Part A of the bill would provide that the incentive cannot result in an employee's pension exceeding the limits of Internal Revenue Code (IRC) 415. However, if the IRC 415 limit is increased in subsequent years, the retirement benefit which would otherwise have been paid to any employees originally affected by the limit would be paid to the extent permitted by the new IRC 415 limit. Section 11 of Part A of the bill would require an employee receiving the retirement incentive to forfeit the benefit of such incentive if that employee reenters public service and joins or rejoins any public retire- ment system in the State. Section 12 of Part A of the bill would provide that the retirement incentive is not subject to any maximum retirement benefit limitation pursuant to Retirement and Social Security Law (R&SSL).. Section 13 of Part A of the bill would make R&SSL 430, which requires an employer to pay for any benefit or benefit improvement in the fiscal year it becomes effective, inapplicable to any benefit or benefit improvement provided by this bill. Section 14 of Part A of the bill would require employers to pay the pension costs of offering a retirement incentive program over a period not to exceed 5 years commencing in the State fiscal year ending March 31, 2022. Section 15 of Part A of the bill would prevent employees from receiving either the benefits of Part B of this incentive program or the benefits of any other incentive program authorized by the State in conjunction with the benefits provided by this part of the bill. Section 16 of Part A of the bill would provide for an immediate effec- tive date. Part 3 - Section 1 of Part B of the bill would define terms used in the bill and establish eligibility requirements for partic- ipation in the retirement incentive program. Eligibility is determined at employer discretion and excludes agency heads and elected officials. An employer who elects to participate in the retirement incentive program is required to provide a 90-day open period to allow eligible employees adequate time to consider the incentive. Employees of the executive branch or participating employers who have attained age fifty-five and have at least twenty-five years of creditable service in an eligible retirement system may participate in this part of the incen- tive. Section 2 of Part B of the bill would require State employers, partic- ipating employers not empowered to act by local law which elect to participate in Part B of the incentive, and New York City to establish a commencement date. In the event State employers fail to establish a commencement date, the default commencement date would be July 1, 2020. Section 3 of Part B of the bill would provide that State employers and participating employers may elect to provide employees the benefits of Part B on or before September 1, 2020, provided that educational employ- ers make such election by July 1, 2020. It would further provide that the Executive Branch would be deemed to have opted in upon enactment. Section 4 of Part B of the bill would provide that any eligible employee that has been continuously in active service from February 1, 2020 to the commencement date and who files an application for retirement during the open period would be entitled to the benefits provided by this part of the bill. Section 5 of Part B of the bill would provide that an eligible employee in an eligible retirement system who is entitled to the benefits provided by this part of the bill who has attained the age of fifty-five and has completed at least twenty-five years or more of service may retire during the open period without a reduction of his or her retire- ment benefit that would otherwise be imposed. This section also would provide that the Director of State Operations, the chief executive offi- cer of the City of New York, or the chief executive officer or governing board of a participating employer may deny participation in the benefits provided by this part of the bill if they determine an employee holds _a and safety. that is deemed critical to the maintenance of public health and safety. Section 6 of Part B of the bill would require employers to pay the pension costs of offering a retirement incentive program over a period not to exceed 5 years commencing in the State fiscal year ending March 31, 2022. Section 7 of Part B of the bill would provide for an immediate effective date. Section 3 of the bill would provide a severability clause, Section 4 of the bill would provide for an immediate effective date. JUSTIFICATION: The COVID-19 pandemic has dramatically impacted the fiscal stability of state and local governments, This bill would streamline the public sector workforce and result in savings to the State and local govern- ments through the elimination of specific positions determined to be less critical to governmental operations. The savings of this bill, however, would be at least be partially offset by costs to the pension system and its members. The New York State and Local Retirement System (NYSLRS) estimates that per-member cost (at retirement) of the additional service credit benefit will average approximately 65% of a member's final average salary. The NYSLRS esti- mates that the per-member cost (at retirement) of the elimination of the early retirement reductions at 25 years of service instead of at 30 years of service will average approximately 110% of a member's final average salary. This cost will be borne by each employer electing the incentive over a period not to exceed five years commencing with a payment in the State fiscal. year ending March 31, 2022. The New York State Teachers Retirement System estimates that the Part A cost, measured as the increase in the present value of benefit per participating member will range from 5% to approximately 250% of final average salary, depending on the member's age, years of service, and tier at retirement. The Part B cost per participating member will range from 3% to approximately 200% of final average salary, depending on the member's age, year of service, and tier at retirement. The potential number of members eligible to benefit under Part A is much greater than under Part B. Employers participating in Part A or Part B (or both) would pay the cost of the retirement incentive over a period not to exceed five years, beginning in the state fiscal year ending March 31, 2022. This program is very similar to the two-part retirement incentive offered by the State in 2010. PRIOR LEGISLATIVE HISTORY: New Bill FISCAL IMPACT FOR STATE AND LOCAL GOVERNMENTS: To be determined. EFFECTIVE DATE: This act would take effect immediately; provided, however, that the applicable effective date of Parts A and B of this act shall be as specifically set forth in the last section of such Parts.
2019-S8599 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
8599
I N S E N A T E
June 17, 2020
___________
Introduced by Sens. MARTINEZ, HARCKHAM -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Rules
AN ACT to provide a temporary retirement incentive for certain public
employees (Part A); and to provide an age 55/25 years temporary
retirement incentive for certain public employees (Part B)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law components of legislation that
would enable public employers to offer a temporary retirement incentive
to their employees, as well as to provide an age 55/25 years temporary
incentive for certain public employees. Each component is wholly
contained within a Part identified as Parts A and B. The effective date
for each particular provision contained within such Part is set forth in
the last section of such part. Any provision in any section contained
within a Part, including the effective date of the Part, which makes
reference to a section "of this act", when used in connection with that
particular component, shall be deemed to mean and refer to the corre-
sponding section of the Part in which it is found, unless noted other-
wise. The benefits of this act shall not be applicable to anyone who
first became a member of a public retirement system of the state on or
after January first, two thousand ten.
§ 2. Legislative findings. The legislature finds and declares that the
retirement benefits provided for in this act are designed to achieve
cost-savings for public employers and to avoid layoffs of public employ-
ees in this time of fiscal need. Therefore, the retirement incentive
benefit provided for in Part A of this act and the age 55/25 years
retirement benefit provided for in Part B of this act are intended only
to be temporary in nature for employees who are eligible to receive and
qualify for the applicable benefit during the applicable time periods
specified within each Part. Further, nothing in this act shall be
construed to create an expectation of a future or continuing retirement
benefit for any public employee who is not eligible to receive and qual-
ify for the retirement benefits in this act during the applicable time
periods.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16471-02-0
S. 8599 2
PART A
Section 1. Definitions. As used in this act, unless the context clear-
ly requires otherwise:
a. "Retirement system" means the New York state and local employees'
retirement system, the New York state teachers' retirement system, the
New York city teachers' retirement system, the New York city board of
education retirement system or the New York city employees' retirement
system, exclusive of the retirement plans established pursuant to
sections 13-156 and 13-157 of the administrative code of the city of New
York.
b. "Teachers' retirement system" means the New York state teachers'
retirement system or the New York city teachers' retirement system.
c. "Optional retirement program" means the programs established pursu-
ant to the provisions of section 181, 391 or 6251 of the education law;
or continued pursuant to section 3 of chapter 980 of the laws of 1962.
d. "State employer" means (a) the executive branch of the state, (b)
the state-operated institutions of the state university of New York, (c)
the statutory and contract colleges operated pursuant to section 357 of
the education law, (d) the state university construction fund (herein-
after referred to in this act as the "fund"), (e) a cooperative exten-
sion association (hereinafter referred to in this act as the "associ-
ation"), (f) the city university of New York as defined in subdivision 2
of section 6202 of the education law, (g) the unified court system, (h)
the senate, (i) the assembly, and (j) joint legislative employers.
e. (a) "Participating employer" means an employer, other than a state
employer, which participates in a retirement system; such term shall
include a community college operating under the program of the state
university of New York.
(b) "Educational employer" means a participating employer which is a
school district, a board of cooperative educational services, a voca-
tional education and extension board, an institution for the instruction
of the deaf and of the blind as enumerated in section 4201 of the educa-
tion law, or a school district as enumerated in section 1 of chapter 566
of the laws of 1967, as amended.
f. "Eligible employee" means a person who is a member of a retirement
system or a participant in an optional retirement program who is an
employee in the executive branch of a state employer or an employee of a
state employer or a participating employer which makes an election under
this section or section four of this act, but such term shall not
include the following persons:
(a) elected officials, judges or justices appointed to or serving in a
court of record and acting village justices;
(b) chief administrative officers of participating employers which
participate in a teachers' retirement system;
(c) officers described in sections 4, 41-a, 46, 61, 70, 70-a, 169
(including those officers whose salary is established pursuant to salary
plans under subdivision 3 of section 169), 180 and subdivision 1 of
section 41 of the executive law and any agency or department head
appointed by the governor, comptroller or attorney general;
(d) appointed members of boards or commissions any of whose members
are appointed by the governor or by another state officer or body;
(e) nonjudicial officers and employees of the unified court system
unless the chief administrator of the courts elects as provided herein,
which election shall cover only nonjudicial officers and employees hold-
S. 8599 3
ing positions in any title in the classified service of the unified
court system;
(f) officers or employees of the senate unless the senate adopts a
resolution authorizing the temporary president to file the election as
provided in this subdivision;
(g) officers or employees of the assembly unless the assembly adopts a
resolution authorizing the speaker of the assembly to file the election
as provided in this subdivision; and
(h) officers or employees of joint legislative employers unless:
(i) with respect to officers or employees of the legislative library,
legislative messenger service, legislative health service, legislative
ethics commission, the legislative bill drafting commission, and the
joint line of the legislative task force on demographic research and
reapportionment, the senate and assembly adopt a concurrent resolution
authorizing the temporary president of the senate and the speaker of the
assembly to jointly file an election as provided in this subdivision;
(ii) with respect to officers or employees of components of the senate
as identified pursuant to section 90 of the legislative law, the senate
adopts a resolution authorizing the temporary president to file an
election for officers or employees of those components designated in
such resolution; and
(iii) with respect to officers or employees of components of the
assembly as identified pursuant to section 90 of the legislative law,
the assembly adopts a resolution authorizing the speaker of the assembly
to file an election for officers or employees of those components desig-
nated in such resolution.
Any election under paragraphs (e) through (h) of this subdivision to
make available the retirement incentive program provided by this act
shall be in writing and filed with the state comptroller not later than
ninety days after the effective date of this act. Notwithstanding any
other provision of this act, each such filing shall specify the
commencement date and the length of the open period. Only one open peri-
od shall be made available for employees covered by elections under
paragraphs (e) through (h) of this subdivision.
For the purposes of such paragraphs (f), (g) or (h) of this subdivi-
sion, an employee of the legislature shall be as such term is defined in
section 7-a, 7-b or 7-d of the legislative law or by any other provision
of law which classifies employees of an entity to be legislative employ-
ees for all purposes, but shall not include senators or members of the
assembly. The term "joint legislative employer" shall mean legislative
commissions, committees, task forces, councils or similar bodies whose
membership is comprised of both senators and assembly members, or which
consist of commissioners, or the majority of whose membership is
appointed by one or more of the following: the temporary president of
the senate, the speaker of the assembly, the minority leader of the
senate, and/or the minority leader of the assembly. The temporary presi-
dent of the senate and the speaker of the assembly shall be the joint
legislative employer of the employees of the legislature referred to in
sections 7-a and 7-b of the legislative law.
g. "Eligible title" means any title where a certain number of posi-
tions in that title, as identified by agency, department, work location
or appointing authority, college or campus, as the case may be, would
otherwise be identified for layoff but for this act because of economy,
consolidation or abolition of functions, curtailment of activities or
otherwise. However, an eligible title can also include a title as iden-
tified by agency, department, work location or appointing authority in
S. 8599 4
which positions would not be eliminated but into which employees in
titles affected by layoff can be transferred or reassigned pursuant to
the civil service law, rule or regulation. The determination of eligible
titles shall be made by: (a) the appointing authority, subject to the
approval of the director of state operations for titles within the exec-
utive branch, (b) the board of trustees for the state university
(including the association) subject to the approval of the director of
state operations, the fund, the city university of New York and of each
community college operating under the program of the state university,
(c) the person or persons who elect under paragraphs (e) through (h) of
subdivision f of this section to offer the retirement incentive provided
by this act, and (d) the chief executive officer or other comparable
official for participating employers other than the community colleges.
h. "College faculty" means an employee, not in the classified service,
of a state employer described in paragraphs (b), (c), (d), (e) and (f)
of subdivision d of this section or of a community college who is a
member of a teachers' retirement system, the New York state and local
employees' retirement system or a participant in an optional retirement
program.
i. "Active service" means service while being paid on the payroll,
provided that (a) a leave of absence with pay shall be deemed active
service; (b) other approved leave without pay not to exceed twelve weeks
from February 1, 2020 and the commencement of the designated open peri-
od; and (c) the period of time subsequent to the June 2020 school term
and on or before August 31, 2020 for a teacher (or other employee
employed on a school-year basis) who is otherwise in active service on
February 1, 2020 shall be deemed active service.
j. "Open period" means the period beginning with the commencement date
as defined in subdivision k of this section and shall not be more than
ninety days nor less than thirty days in length, as specified by the
director of state operations or by a participating employer pursuant to
section four of this act, by the appropriate board of trustees for the
state university (including the association), the fund, the city univer-
sity of New York or a community college operating under a program of the
state university or by a state employer described in paragraphs (g),
(h), (i) and (j) of subdivision d of this section; provided however that
any such period shall not extend beyond September 30, 2020 for the exec-
utive branch of a state employer described in paragraphs (a) and (b) of
subdivision d of this section (except for college faculty), not beyond
December 31, 2020 for participating employers, college faculty for a
state employer described in paragraph (b) of subdivision d of this
section, state employers described in paragraphs (c), (d) and (e) of
subdivision d of this section, not beyond January 31, 2021 for college
faculty of an employer described in paragraph (f) of subdivision d of
this section, and not beyond August 31, 2020 for educational employers.
For the purposes of retirement pursuant to this act, a service retire-
ment application must be filed with the appropriate retirement system
not less than fourteen days prior to the effective date of retirement to
become effective, unless a shorter period of time is permitted under
law.
k. "Commencement date" means the first day the retirement incentive
authorized by this act shall be made available, which shall mean a date
on or after the effective date of this act to be determined by the
director of state operations for the executive branch of the state, and
which date shall occur no later than thirty days before September 30,
2020 or for any participating employer a date on or after the effective
S. 8599 5
date of this act. For any other state employer, such term shall mean a
date on or after the effective date of this act and shall occur no later
than thirty days before September 30, 2020. The director of state oper-
ations shall notify the head of the appropriate retirement system of the
date of each open period applicable to employees of the executive branch
or of a state employer prior to the commencement date.
§ 2. The determination of whether a title shall be considered eligible
shall consider whether the reduction of a specific number of positions
within a title would unacceptably:
a. Directly result in a reduction of the level of service required or
mandated to protect and care for clients of the state or a participating
employer or to assure public health and safety;
b. Endanger the health or safety of employees of the state or a
participating employer; or
c. Clearly result in a loss of significant revenue to the state or a
participating employer or result in substantially increased overtime or
contractual costs. However, upon the determination of the director of
state operations, with respect to employees of the executive branch of a
state employer, any titles may be determined eligible if the vacancies
created can be controlled by the use of transfer or reassignment
provisions of the civil service law, rules or regulations or other
deployment of state employees.
§ 3. a. Eligibility for inclusion in the retirement incentive provided
by section six of this act shall be determined: (a) by seniority: for
participating employers and for state employers described in paragraphs
(a), (b), (c), (d), (e) and (f) of subdivision d of section one of this
act, other than for college faculty; seniority shall mean the date of
original permanent appointment in the civil service of the state
adjusted to include veteran's credits for those entitled to receive such
credits pursuant to sections 80, 80-a and 85, if applicable, of the
civil service law, as established in the official records of the depart-
ment of civil service, regardless of the jurisdictional classification
of the position or the status of the incumbent; (b) by seniority, as
applicable for the unified court system; (c) for state employers
described in paragraphs (h), (i) and (j) of subdivision d of section one
of this act as determined by the person or persons who make the election
to offer the retirement incentive; and (d) for college faculty, by the
board of trustees of the state university, city university and of each
community college operating under the program of the state university.
b. All eligible employees serving in eligible titles desiring to avail
themselves of the retirement incentive provided by section six of this
act shall provide written notice to his or her employer on or before the
twenty-first day preceding the end of the open period, or before the end
of the applicable open period as such open period is determined by the
director of state operations. Failure to provide such written notice
shall render the employee ineligible for the retirement incentive
provided by this act.
§ 4. a. On or before August 31, 2020, a participating employer or a
state employer described in paragraphs (b), (c), (d), (e) and (f) of
subdivision d of section one of this act may elect to provide its
employees the retirement incentive authorized by this act by (a) the
enactment of a local law or (b) in the case of a participating employer
which is not so empowered to act by local law or a state employer
described in paragraphs (b), (c), (d), (e) and (f) of subdivision d of
section one of this act, by the adoption of a resolution of its govern-
ing body; provided however, no local law or resolution enacted pursuant
S. 8599 6
to this section shall in any manner supersede any local charter,
provided further, that for an educational employer such election must be
made by July 30, 2020. The local law or resolution shall specify the
commencement date of the program and the length of the open period. For
a community college operating under the program of state university of
New York, such election shall be made by the board of trustees of such
community college subject to the approval of its sponsor. A copy of such
law or resolution shall be filed with the appropriate retirement system
or systems, and, if applicable, on forms provided by such system. The
local law or resolution shall be accompanied by the affidavit of the
chief executive officer or other comparable official certifying to the
information contained in subdivision b of this section.
b. Notwithstanding any other provision of law, the benefits provided
by this act shall not be made available to any person who (a) has
received any retirement incentive authorized by any provision of state
law, or (b) who receives, has received or is eligible to receive a
payment in a lump sum or in another form from a retirement incentive
pursuant to the provisions of a collective bargaining agreement or by
other arrangement with his or her employer, unless such person files a
written statement with his or her employer, a copy of which shall be
forwarded to the appropriate retirement system, that he or she agrees to
waive any right to such payment. A participating employer who makes an
election pursuant to this section and who offers or has offered a
retirement incentive pursuant to the provisions of a collective bargain-
ing agreement or by other arrangement shall prepare, and file with each
retirement system, a list containing the names and social security
numbers of all persons described in this subdivision. A participating
employer is authorized to exempt persons in its employ from the
provisions of paragraph (b) of this subdivision. Such exemption shall be
made part of the election made pursuant to this section.
c. Notwithstanding any other provision of this act to the contrary,
the mayor of the city of New York may declare employees of the community
colleges of the city university of New York ineligible for the retire-
ment incentive provided by this act by filing such notification with the
chancellor of the city university of New York, with copies to the chair
of the senate finance committee, the chair of the assembly ways and
means committee and the director of the budget, in writing, no later
than the thirtieth day next succeeding the effective date of this act.
§ 5. Notwithstanding any other provision of law, any eligible employee
serving in an eligible title who:
a. has been continuously in the active service of a state employer or
of a participating employer from February 1, 2020 to the date immediate-
ly prior to the commencement date of the applicable open period;
b. files an application for service retirement (or files the appropri-
ate application and authorization form with the optional retirement
program and a duly acknowledged retirement incentive form for such
program with the appropriate personnel office) that is effective during
the open period; and
c. is otherwise eligible for a service retirement as of the effective
date of the application for retirement shall be entitled to the retire-
ment incentive provided in section six of this act. If not otherwise
eligible for a service retirement, the following person shall be deemed
to satisfy the eligibility condition of this section: a person who is at
least age fifty with ten or more years service as of the effective date
of retirement (other than a member of a retirement plan which provides
for half-pay pension upon completion of twenty-five years or less
S. 8599 7
service without regard to age); a member of a retirement plan which
provides for half-pay pension upon completion of twenty-five years of
service without regard to age who has not accrued, excluding additional
credit granted pursuant to this act, the minimum number of years of
service required to retire with an allowance equal to fifty percent of
final average salary under such plan, but has, with the inclusion of the
additional credit provided under this act, accrued such number of years
of credit; or a participant in an optional retirement plan at least
fifty years of age with ten years of service on an annual salary basis
with his or her employer as of the date of retirement.
§ 6. Notwithstanding any other provision of law, an eligible employee
serving in an eligible title who is:
a. A member of a retirement system and who is entitled to a retirement
incentive pursuant to section five of this act shall receive a retire-
ment incentive of one-twelfth of a year of additional retirement credit
for each year of pension service credited as of the date of retirement,
up to a maximum of three years of retirement service credit at the time
of retirement, provided, however, that service credit provided under the
provisions of sections 902 and 911 of the retirement and social security
law shall not be included when calculating the additional retirement
credit awarded pursuant to this act. For the New York city teachers'
retirement system, the New York city employees' retirement system and
the New York city board of education retirement system such incentive
shall be available for all purposes, including fulfilling the qualifying
service requirements of plan A and C, if applicable.
An eligible employee who is covered by the provisions of article 15 of
the retirement and social security law shall retire under the provisions
of article 15 of the retirement and social security law. The amount of
such benefit for an eligible employee who is covered by article 15 of
the retirement and social security law and retires under the provisions
of this section (other than a member with thirty or more years of
service in the New York state and local employees' retirement system or
a teachers' retirement system) shall be reduced by six percent for each
of the first two years by which retirement precedes age sixty-two, plus
a further reduction of three percent for each year by which retirement
precedes age sixty, provided, however, the foregoing reductions shall
not apply: (i) in any case where an eligible employee can retire after
twenty-five years of service with immediate payability prior to the age
of sixty-two pursuant to section 604-b of the retirement and social
security law or (ii) to any time period subsequent to the point at which
an eligible employee can retire for service without reduction of his or
her service retirement allowance pursuant to article 16 of the retire-
ment and social security law. Such reduction shall be prorated for
partial years. The amount of such benefit for an eligible employee with
thirty or more years of service who is a member of the New York state
and local employees' retirement system or a teachers' retirement system
or an eligible employee who is a participant in the optional twenty-five
year early retirement program for certain New York city members governed
by section 604-c of the retirement and social security law, as added by
chapter 96 of the laws of 1995 or a twenty-five year participant in the
age fifty-five retirement program governed by section 604-i of the
retirement and social security law, with twenty-five or more years of
service and who is covered by article 15 of the retirement and social
security law shall be reduced by five percent for each year by which
retirement pursuant to this section precedes age fifty-five. The amount
of such benefit for an eligible New York city employee with five or more
S. 8599 8
years of service and who is a participant in the age fifty-seven retire-
ment program governed by section 604-d of the retirement and social
security law shall be reduced by one-thirtieth for the first two years
by which retirement precedes age fifty-seven plus a further reduction of
one-twentieth for each year by which retirement precedes age fifty-five.
Such reduction shall be prorated for partial years. There shall be no
reduction for an eligible New York city employee in a physically taxing
position with twenty-five or more years of service and who is a partic-
ipant (i) in the optional twenty-five year early retirement program for
certain members governed by section 604-c of the retirement and social
security law, as added by chapter 96 of the laws of 1995, or (ii) in the
age fifty-seven retirement program governed by section 604-d of the
retirement and social security law.
An eligible employee serving in an eligible title who is covered by
article 11 of the retirement and social security law shall retire under
the provisions of such article. The amount of such benefit for an eligi-
ble employee covered by article 11 of the retirement and social security
law other than a member of a teachers' retirement system or a member of
the New York state and local employees' retirement system with thirty or
more years of service, a participant in the optional age fifty-five
improved benefit retirement program for certain New York city employees
governed by section 445-d of the retirement and social security law, as
added by chapter 96 of the laws of 1995, with twenty-five or more years
of service, or a participant in the optional age fifty-five retirement
program for New York city teachers and certain other members governed by
section 445-i of the retirement and social security law, with twenty-
five or more years of service, shall be reduced by six percent for each
of the first two years by which retirement pursuant to this section
precedes age sixty-two, plus a further reduction of three percent for
each year by which retirement pursuant to this section precedes age
sixty, provided, however, the foregoing reductions shall not apply: (i)
in any case where an eligible employee can retire pursuant to a plan
which permits retirement for service with immediate payability, exclu-
sive of this act, prior to the age of fifty-five or (ii) to any time
period subsequent to the point at which an eligible employee can retire
for service without reduction of his or her service retirement allowance
pursuant to article 16 of the retirement and social security law. Such
reduction shall be prorated for partial years. The amount of such bene-
fit for an eligible employee who is a member of a teachers' retirement
system or a member of the New York state and local employees' retirement
system with thirty or more years of service, a participant in the
optional age fifty-five improved benefit retirement program for certain
New York city employees governed by section 445-d of the retirement and
social security law, as added by chapter 96 of the laws of 1995, with
twenty-five or more years of service, or a participant in the optional
age fifty-five retirement program for New York city teachers and certain
other members governed by section 445-i of the retirement and social
security law, with twenty-five or more years of service and who is
covered by article 11 of the retirement and social security law shall be
reduced by five percent for each year by which retirement pursuant to
this section precedes age fifty-five. Such reduction shall be prorated
for partial years. There shall be no reduction for an eligible New York
city employee in a physically taxing position and who is a participant
in the optional age fifty-five improved benefit retirement program for
certain New York city employees governed by section 445-d of the retire-
S. 8599 9
ment and social security law, as added by chapter 96 of the laws of
1995, with twenty-five or more years of service.
An eligible employee serving in an eligible title who is not covered
by article 11 or 15 of the retirement and social security law shall
retire under the provisions of the plan by which he or she is covered.
The amount of such benefit shall be reduced by five percent for each
year by which retirement pursuant to this section precedes age fifty-
five, provided, however, the foregoing reductions shall not apply: (i)
in any case where an eligible employee can retire pursuant to a plan
which permits retirement for service with immediate payability, exclu-
sive of this act, prior to the age of fifty-five or (ii) to any time
period subsequent to the point at which an eligible employee can retire
for service without reduction of his or her service retirement allowance
pursuant to article 16 of the retirement and social security law. Such
reduction shall be prorated for partial years.
An eligible employee serving in an eligible title who participates in
a retirement plan which provides for a retirement allowance equal to
fifty percent of final average salary upon the completion of twenty-five
years of service without regard to age and who is otherwise eligible to
retire shall retire under the provisions of such plan. Such employee
shall, at the time of retirement, be credited with one-twelfth of a year
of additional retirement service credit for each year of service credit-
ed under such plan as of the date of retirement, up to a maximum of
three years of retirement service credit, subject to the provisions of
subdivision b of this section. If such employee has not accrued, exclud-
ing additional credit granted pursuant to this act, the minimum number
of years of service required to retire with an allowance equal to fifty
percent of final average salary under such plan, but has, with the
inclusion of the additional credit provided under this act, accrued such
number of years of credit, the benefit payable shall be the percentage
of final average salary that would ordinarily be applicable to such
individual upon retirement with such amount of credit (including incen-
tive credit), reduced by five per centum per year for each year by which
the number of years of service otherwise required to retire with an
allowance equal to fifty percent of final average salary under such plan
exceeds the amount of service credited to such employee under such plan
at retirement (excluding the additional retirement incentive service
credit provided pursuant to this act). Such reduction shall be prorated
for partial years.
b. A participant in an optional retirement program who is entitled to
a retirement incentive pursuant to section five of this act shall
receive an additional employer contribution equal to an amount, which
shall be calculated as follows: (one-twelfth for each year of service)
multiplied by (fifteen percent) multiplied by (the employee's earnable
annual salary rate in effect on March 1, 2020 or the effective date of
this act if the employee retires prior to March 1, 2020), such amount
not to exceed forty-five percent of such salary rate. Such contribution
shall be made to the employee's retirement annuity under the optional
retirement program up to the maximum contribution allowable under
section 415 of the internal revenue code. Any contribution in excess of
that limit shall be contributed by the employer to an internal revenue
code section 403(b) contract on behalf of the employee to the extent it
can be contributed on a before-tax basis under the maximum limits
allowed under the internal revenue code. Contributions in excess of that
amount shall be paid in cash to the participant in three equal install-
ments during a twenty-four month period commencing on such eligible
S. 8599 10
employee's effective date of retirement. Provided, however, if the
employee is employed by the city university of New York and in the
active service of such employer on October 1, 2020 or the effective date
of this act if the employee retires prior to October 1, 2020, the
employee's earnable annual salary rate shall be the annual salary rate
in effect on such applicable date.
§ 7. a. An employee of a state employer, other than the city universi-
ty of New York, who retires pursuant to this act may defer calculation
of the value of accumulated sick leave credits, if any, and partic-
ipation in the state health insurance plan.
b. Notwithstanding any other provision of law, any termination pay or
leave arising from accrued sick leave or accrued annual leave for an
eligible employee who has elected the retirement incentive provided by
this act and who is a member of the New York city teachers' retirement
system employed by the board of education of the city of New York shall
be paid in three equal installments during a twenty-four month period
commencing on such eligible employee's effective date of retirement.
c. An employee of the city of New York or the city university of New
York, as defined in subdivision 2 of section 6202 of the education law,
who retires under the retirement incentive provided by this act, who is
eligible for terminal leave pursuant to an applicable collective
bargaining agreement or a personnel policy or rule or retirement leave
pursuant to section 3107 of the education law or who has an accrued
annual leave balance on the effective date of retirement shall be paid
in three equal installments two months, fourteen months and twenty-four
months following such eligible employee's effective date of retirement.
§ 8. a. With respect to employees of the executive branch of a state
employer, any position, other than a position supported by special
revenue funds, vacated as a result of an eligible employee in an eligi-
ble title receiving the retirement incentive provided by section six of
this act shall be eliminated unless such position is identified by the
director of state operations as one into which another state employee
can be appointed, transferred or reassigned pursuant to the civil
service law, rules or regulations, in which case the former position of
the state employee so appointed, transferred or reassigned shall be
eliminated.
b. The director of state operations shall direct the department of
civil service to prepare a report designating the title, grade level,
salary, and classification, according to appointing authority, (i) of
each position which is eliminated pursuant to subdivision a of this
section, (ii) of each position into which another state employee was
appointed, transferred, or reassigned and the former position of such
state employee, and (iii) of each position which is eliminated as a
result of an appointment, transfer or reassignment referred to in para-
graph (ii) of this subdivision. Such report shall be available no later
than ninety days after the last date of the open period related to such
positions.
§ 9. Notwithstanding any inconsistent provision of section eight of
this act or any other provision of law:
a. A participating employer or a state employer described in para-
graphs (b) through (e) of subdivision d of section one of this act shall
not be required to eliminate the positions of eligible employees in
eligible titles receiving the retirement incentive provided by section
six of this act if such employer can demonstrate that it will achieve a
compensation savings such that the total amount of base salary paid for
the two-year period subsequent to the effective date of retirement for
S. 8599 11
such eligible employees in eligible titles to those new hires, if any,
who otherwise would not have been hired by such employer after the
effective date of this act but for the retirement incentive provided
herein shall be no more than one-half of the total amount of base salary
that would have been paid to such eligible employees from their date of
retirement for such two-year period. Each such employer shall make
available its plans for achieving these savings.
b. The city of New York or the city university of New York, as defined
in subdivision 2 of section 6202 of the education law, shall not be
required to eliminate the positions of eligible employees in eligible
titles receiving the retirement incentive provided by section six of
this act if such participating employer can demonstrate that it will
achieve a compensation or equivalent headcount savings such that the
total amount of compensation including benefits paid for the two-year
period subsequent to the effective date of retirement for such eligible
employees in eligible titles to those new hires, if any, who otherwise
would not have been hired by such employer after the effective date of
this act but for the retirement incentive provided herein shall be no
more than one-half of the total amount of base salary that would have
been paid to such eligible employees from their date of retirement for
such two-year period. For purposes of this subdivision, the "city of New
York" shall mean the city of New York or a participating employer a
majority of the members of whose governing body are: (a) appointed by
the mayor of the city of New York or other citywide elected official, a
borough president of the city of New York, or any combination thereof;
(b) designated by virtue of their city of New York office or position or
their office or position with a participating employer whose governing
board is described in paragraph (a) of this subdivision; or (c)
appointed or designated by any combination of the foregoing. Each such
employer shall make available its plans for achieving these savings.
c. To the extent any transfer of personnel between the state employer
described in paragraph (a) of subdivision d of section one of this act
and the state employer described in paragraph (b) of subdivision d of
section one of this act occurs pursuant to a voluntary transfer of state
personnel, or otherwise, the provisions of subdivision a of this section
with respect to achieving savings shall be applicable. Nothing herein
shall be construed to impair the authority of the director of state
operations pursuant to subdivision g of section one or section two of
this act.
§ 10. Nothing in this act shall be used to provide benefits that shall
exceed the limits contained in section 415 of the internal revenue code.
Provided, however, any service retirement benefit which has been reduced
because of section 415 of the internal revenue code shall be increased
when (and consistent with) the dollar limits in section 415 of the
internal revenue code are adjusted by the internal revenue service for
cost of living increases. Such increases shall not increase the benefit
in excess of the service retirement benefit otherwise payable.
§ 11. Any eligible employee who retires pursuant to the provisions of
this act and enters or reenters public service as defined in subdivision
e of section 210 of the retirement and social security law and joins or
rejoins any public retirement system of the state as defined in subdivi-
sion 6 of section 152 of the retirement and social security law or
elects to participate in an optional retirement program shall if the
additional benefit was provided pursuant to: (a) subdivision a of
section six of this act, forfeit the additional benefit authorized by
this act at the time of his or her subsequent retirement; or (b) subdi-
S. 8599 12
vision b of section six of this act, repay to the state or participating
employer such additional contribution together with the appropriate
interest as determined by the state comptroller.
§ 12. Notwithstanding any other provision of law, if the service
retirement benefit of a member of a retirement system is subject to a
maximum retirement benefit, the additional benefit authorized by this
act will be computed by multiplying the final average salary times the
number of years of service credit granted by section six of this act
times the benefit fraction of the plan under which such member retires.
§ 13. The provisions of section 430 of the retirement and social secu-
rity law shall not apply to any benefit or benefit improvement provided
by this act.
§ 14. The pension benefit costs of subdivision a of section six of
this act shall be paid by employers as provided by applicable law for
each retirement system covered by this act over a period not to exceed
five years commencing in the state fiscal year ending March 31, 2022.
§ 15. Where an employee is eligible to receive the benefit authorized
under section six and the retirement benefit provided for under section
five of part B of the chapter of the laws of 2020 which added this part,
such employee may elect a section under which he or she will partic-
ipate.
§ 16. This act shall take effect immediately.
PART B
Section 1. Definitions. As used in this act, unless the context clear-
ly requires otherwise:
a. "Retirement system" means the New York state and local employees'
retirement system, the New York state teachers' retirement system, the
New York city teachers' retirement system, the New York city board of
education retirement system or the New York city employees' retirement
system, exclusive of the retirement plans established pursuant to
sections 13-156 and 13-157 of the administrative code of the city of New
York.
b. "Teachers' retirement system" means the New York state teachers'
retirement system or the New York city teachers' retirement system.
c. "State employer" means (a) the executive branch of the state, (b)
the state-operated institutions of the state university of New York, (c)
the statutory and contract colleges operated pursuant to section 357 of
the education law, (d) the state university construction fund (herein-
after referred to in this act as the "fund"), (e) a cooperative exten-
sion association (hereinafter referred to in this act as the "associ-
ation"), and (f) the city university of New York as defined in
subdivision 2 of section 6202 of the education law, (g) the unified
court system, (h) the senate, (i) the assembly, and (j) joint legisla-
tive employers.
d. (a) "Participating employer" means an employer, other than a state
employer, which participates in a retirement system; such term shall
include a community college operating under the program of state univer-
sity of New York.
(b) "Educational employer" means a participating employer which is a
school district, a board of cooperative educational services, a voca-
tional education and extension board, an institution for the instruction
of the deaf and of the blind as enumerated in section 4201 of the educa-
tion law, or a school district as enumerated in section 1 of chapter 566
of the laws of 1967, as amended.
S. 8599 13
e. "Eligible employee" means a person who is a member of a retirement
system who is an employee in the executive branch of a state employer or
an employee of a state employer or a participating employer who has
attained age fifty-five and has at least twenty-five years of creditable
service in a retirement system, but such term shall not include the
following persons:
(a) elected officials, judges or justices appointed to or serving in
court of record and acting village justices;
(b) chief administrative officers of participating employers which
participate in a teachers' retirement system;
(c) officers described in sections 4, 41-a, 46, 61, 70, 70-a, 169
(including those officers whose salary is established pursuant to salary
plans under subdivision 3 of section 169), 180 and subdivision 1 of
section 41 of the executive law and any agency or department head
appointed by the governor, comptroller or attorney general;
(d) appointed members of boards or commissions any of whose members
are appointed by the governor or by another state officer or body;
(e) nonjudicial officers and employees of the unified court system
unless the chief administrator of the courts elects as provided herein,
which election shall cover only nonjudicial officers and employees hold-
ing positions in any title in the classified service of the unified
court system;
(f) officers or employees of the senate unless the senate adopts a
resolution authorizing the temporary president to file the election as
provided in this subdivision;
(g) officers or employees of the assembly unless the assembly adopts a
resolution authorizing the speaker of the assembly to file the election
as provided in this subdivision; and
(h) officers or employees of joint legislative employers unless:
(i) with respect to officers or employees of the legislative library,
legislative messenger service, legislative health service, legislative
ethics committee, the legislative bill drafting commission, and the
joint line of the legislative task force on demographic research and
reapportionment, the senate and assembly adopt a concurrent resolution
authorizing the temporary president of the senate and the speaker of the
assembly to jointly file an election as provided in this subdivision;
(ii) with respect to officers or employees of components of the senate
as identified pursuant to section 90 of the legislative law, the senate
adopts a resolution authorizing the temporary president to file an
election for officers or employees of those components designated in
such resolution; and
(iii) with respect to officers or employees of components of the
assembly as identified pursuant to section 90 of the legislative law,
the assembly adopts a resolution authorizing the speaker of the assembly
to file an election for officers or employees of those components desig-
nated in such resolution.
Any election under paragraphs (e) through (h) of this subdivision to
make available the retirement incentive provided by this act shall be in
writing and filed with the state comptroller not later than ninety days
after the effective date of this act. Notwithstanding any other
provision of this act, each such filing shall specify the commencement
date of the open period.
For the purposes of such paragraph (f), (g) or (h) of this subdivi-
sion, an employee of the legislature shall be as such term is defined in
section 7-a, 7-b or 7-d of the legislative law or by any other provision
of law which classifies employees of an entity to be legislative employ-
S. 8599 14
ees for all purposes, but shall not include senators or members of the
assembly. The term "joint legislative employer" shall mean legislative
commissions, committees, task forces, councils or similar bodies whose
membership is comprised of both senators and assembly members, or which
consist of commissioners, or the majority of whose membership is
appointed by one or more of the following: the temporary president of
the senate, the speaker of the assembly, the minority leader of the
senate, and/or the minority leader of the assembly. The temporary presi-
dent of the senate and the speaker of the assembly shall be the joint
legislative employer of the employees of the legislature referred to in
sections 7-a and 7-b of the legislative law.
f. "College faculty" means an employee, not in the classified service,
of a state employer described in paragraphs (b), (c), (d), (e) and (f)
of subdivision c of this section or of a community college who is a
member of a teachers' retirement system, or the New York state and local
employees' retirement system.
g. "Active service" means service while being paid on the payroll,
provided that (a) a leave of absence with pay shall be deemed active
service; (b) other approved leave without pay not to exceed twelve weeks
from February 1, 2020 and the commencement of the designated open peri-
od; and (c) the period of time subsequent to the June 2020 school term
and on or before August 31, 2020 for a teacher (or other employee
employed on a school-year basis) who is otherwise in active service on
the effective date of this act shall be deemed active service.
h. "Open period" means the period beginning with the commencement date
as defined in subdivision i of this section and shall be ninety days in
length; provided however that there shall be only one such open period
and any such period shall not extend beyond September 30, 2020 for a
state employer and December 31, 2020 for a participating employer. For
educational employers who make election after June 1, 2020, the open
period shall begin immediately after such election, and shall not extend
beyond August 31, 2020. For the purposes of retirement pursuant to this
act, a service retirement application must be filed with the appropriate
retirement system not less than fourteen days prior to the effective
date of retirement to become effective, unless a shorter period of time
is permitted under law.
i. "Commencement date" means the first day the retirement benefit
mandated by this act shall be made available, which shall mean a date or
dates on or after the effective date of this act to be determined by the
director of state operations for the executive branch of the state, or
for any other state employer or any participating employer which elects
to participate pursuant to section three of this act a date on or after
the effective date of this act; provided, however, that for an educa-
tional employer which elects to participate pursuant to section three of
this act, the commencement date shall be June 1, 2020; or immediately
after election of the retirement incentive for educational employers who
elect after June 1, 2020 and provided, further that for participating
employers which elect to participate pursuant to section three of this
act, except the city of New York and participating employers which are
not empowered to act by local law, the commencement date shall be Octo-
ber 1, 2020. The director of state operations shall notify the head of
the appropriate retirement system of the date of the open period appli-
cable to employees of the executive branch or of a state employer prior
to the commencement date.
§ 2. a. A state employer which elects to participate pursuant to
section three of this act, participating employer which is not empowered
S. 8599 15
to act by local law which elects to participate pursuant to section
three of this act, or the city of New York, if it elects to participate
pursuant to section three of this act shall establish a commencement
date for the retirement benefit established under section five of this
act in the following manner: (a) for the executive branch, the director
of state operations shall establish the commencement date in writing to
the appropriate retirement system; (b) for state employers described in
paragraphs (b), (c), (d), (e) and (f) of subdivision c of section one of
this act and participating employers that are not empowered to act by
local law, its governing body shall adopt a resolution establishing a
commencement date; (c) for state employers described in paragraphs (g),
(h), (i) and (j) of subdivision c of section one of this act, the person
or persons who make the election to offer the retirement incentive
pursuant to part A of the chapter of the laws of 2020 which added this
part shall establish a commencement date in writing to the appropriate
retirement system; and (d) for the city of New York, the chief executive
officer shall issue an executive order establishing the commencement
date, provided, however, no executive order, in the case of the city of
New York issued pursuant to this section, shall in any manner supersede
any local charter. A copy of any such resolution or executive order in
the case of the city of New York establishing a commencement date shall
be filed with the appropriate retirement system or systems, and, if
applicable, on forms provided by such system. The resolution or execu-
tive order in the case of the city of New York shall be accompanied by
the affidavit of the chief executive officer or other comparable offi-
cial certifying the commencement date.
b. A state employer, participating employer which is not empowered to
act by local law which elects to participate pursuant to section three
of this act, or the city of New York if it elects to participate pursu-
ant to section three of this act shall be required to establish a
commencement date under paragraph a of this subdivision for the retire-
ment benefit established under section five of this act. In the event
that a state employer, participating employer which is not empowered to
act by local law which elects to participate pursuant to section three
of this act, or the city of New York if it elects to participate pursu-
ant to section three of this act fails to establish a commencement date
for the retirement benefit established under section five of this act,
the commencement date for the eligible employees of a state employer
shall be July 1, 2020. The commencement date for the eligible employees
of all other employers referenced in this subdivision shall be September
1, 2020.
§ 3. On or before September 1, 2020, a participating employer or a
state employer described in paragraphs (b), (c), (d), (e) and (f) of
subdivision c of section one of this act may elect to provide its
employees the retirement incentive authorized by this act by (a) the
enactment of a local law or (b) in the case of a participating employer
which is not so empowered to act by local law or a state employer
described in paragraphs (b), (c), (d), (e) and (f) of subdivision c of
section one of this act, by the adoption of a resolution of its govern-
ing body; provided however, no local law or resolution enacted pursuant
to this section shall in any manner supersede any local charter,
provided further, that for an educational employer such election must be
made by July 1, 2020. For a community college operating under the
program of state university of New York, such election shall be made by
the board of trustees of such community college subject to the approval
of its sponsor. A copy of such law or resolution shall be filed with the
S. 8599 16
appropriate retirement system or systems, and, if applicable, on forms
provided by such system. The local law or resolution shall be accompa-
nied by the affidavit of the chief executive officer or other comparable
official certifying the validity of such local law or resolution. The
executive branch of the state shall be deemed to have made an election
under this section upon its enactment.
§ 4. Notwithstanding any other provision of law, any eligible employee
who (a) has been continuously in the active service of a state employer
or of a participating employer from February 1, 2020 to the date imme-
diately prior to the commencement date of the applicable open period,
(b) files an application for service retirement that is effective during
the open period, and (c) is otherwise eligible for a service retirement
as of the effective date of the application for retirement shall be
entitled to the retirement benefit provided in section five of this act.
§ 5. a. Notwithstanding any other provision of law, an eligible
employee who is: (a) a member of a retirement system and (b) who is
entitled to a retirement benefit pursuant to section four of this act
may retire during the open period without the reduction of his or her
retirement benefit that would otherwise be imposed by article 11 or 15
of the retirement and social security law if he or she has attained the
age of fifty-five and has completed at least twenty-five or more years
of creditable service. An eligible employee who is covered by the
provisions of articles 11 and 15 of the retirement and social security
law shall retire under the provisions of articles 11 and 15 of the
retirement and social security law.
b. The director of state operations, the chief executive officer of
the city of New York, or chief executive officer or governing board, as
appropriate, of the participating employer may deny participation in the
retirement benefit provided by subdivision a of this section if the
director of state operations, the chief executive officer of New York
city or the chief executive officer or governing board of the partic-
ipating employer makes a determination that the employee holds a posi-
tion that is deemed critical to the maintenance of public health and
safety.
c. Where an employee is eligible for the retirement benefit under this
section and the retirement incentive authorized pursuant to section six
of part A of the chapter of the laws of 2020 which added this part, such
employee shall elect a section under which he or she will participate.
The benefits provided by subdivision a of this section shall not be
conditioned upon a state or participating employer making the benefits
of section six of part A of this act available to employees in their
employ. Further, the benefits provided by subdivision a of this section
shall not be available in conjunction with the benefits of section six
of part A of the chapter of the laws of 2020 which added this part.
d. The action of the director of state operations, the chief executive
officer of the city of New York, or chief executive officer or governing
board, as appropriate, of the participating employer in denying the
retirement benefit provided for in subdivision a of this section to any
individual shall be subject to review in the manner provided for in
article 78 of the civil practice law and rules. Such action for review
pursuant to article seventy-eight of the civil practice law and rules
shall only be commenced by the individual that was denied the retirement
benefit provided by subdivision a of this section.
e. After making any such determination under subdivision b of this
section, the director of state operations, the chief executive officer
of the city of New York and the chief executive officer or governing
S. 8599 17
board, as appropriate, of the participating employer shall notify the
appropriate retirement system or teachers' retirement system of its
determination.
§ 6. The pension benefit costs of section five of this act shall be
paid by employers as provided by applicable law for each retirement
system covered by this act over a period not to exceed five years
commencing in the state fiscal year ending March 31, 2022.
§ 7. This act shall take effect immediately.
§ 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 4. This act shall take effect immediately; provided, however, that
the applicable effective date of Parts A and B of this act shall be as
specifically set forth in the last section of such Parts.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would provide a temporary retirement incentive for fiscal
year 2020-2021 for eligible members of the New York State Teachers'
Retirement System (NYSTRS). In Part A of the retirement incentive,
employers who elect to participate would provide certain eligible
employees a retirement incentive of one-twelfth of a year of additional
service credit per year of accrued service credit up to a maximum of
three additional years. To be eligible, a member must have attained age
50 or greater, with at least ten years of service. Members not subject
to an early retirement reduction and less than age 55 at retirement will
have their benefit reduced by five percent for each year their age
precedes 55.
Part B of the retirement incentive would permit eligible Tier 2, 3 and
4 members of employers who elect to participate to retire without early
retirement reductions upon attainment of at least age 55 with 25 years
of service. Currently 30 years of service are required.
In order to receive either the Part A or Part B benefit, an eligible
member of an employer who has elected to participate must retire during
the employer's designated open period. For Part A, such open period
shall be at least 30 but not more than 90 days in length and for educa-
tional employers, shall not extend beyond August 31, 2020. For Part B,
the open period shall begin immediately after the election to partic-
ipate and shall not extend beyond August 31, 2020. Members may not
receive a benefit under both Part A and Part B. Employers participating
in Part A or Part B (or both) would pay the cost of the retirement
incentive over a period not to exceed five years, beginning in the state
fiscal year ending March 31, 2022.
It is not possible to accurately forecast the total cost to the New
York State Teachers' Retirement System employers electing to participate
in this retirement incentive because the number of eligible members
electing to retire under the incentive, their ages and the amount of
service credited cannot be readily estimated. The Part A cost, measured
as the increase in the present value of benefit per participating
member, however, will range from 5% to approximately 250% of final aver-
age salary, depending on the member's age, years of service, and tier at
retirement. The Part B cost per participating member will range from 3%
S. 8599 18
to approximately 200% of final average salary, depending on the member's
age, years of service, and tier at retirement. The potential number of
members eligible to benefit under Part A is much greater than under Part
B.
Member data is from the System's most recent actuarial valuation
files, consisting of data provided by the employers to the Retirement
System. Data distributions and statistics can be found in the System's
Comprehensive Annual Financial Report (CAFR). System assets are as
reported in the System's financial statements, and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
The source of this estimate is Fiscal Note 2020-26 dated June 3, 2020
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2020 Legislative Session.
I, Richard A. Young, am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
This bill would provide additional service credit (one-twelfth of a
year for each year of non-sick leave, non-Article 19 service credited as
of the date of retirement, up to a maximum of three years) for certain
members of the New York State and Local Employees' Retirement System,
New York State Teachers Retirement System, New York City Teachers
Retirement System, New York City Board of Education and the New York
City Employees' Retirement System. Further, for certain members who are
not otherwise eligible for a service retirement benefit, this bill would
provide the ability to retire with reductions. This benefit would be
available to only targeted positions.
In addition, this bill would eliminate the early retirement reductions
at 25 years of service instead of at 30 years of service for retirement
during a specified 90 day period for Tier 2, 3 and 4 members of the New
York State and Local Employees' Retirement System, New York State Teach-
ers Retirement System, New York City Teachers Retirement System, New
York City Board of Education and the New York City Employees' Retirement
System. Employers electing this provision can declare health and safety
positions to be ineligible.
Retiring members may not receive both the additional service credit
and the elimination of the early retirement reductions at 25 years of
service instead of at 30 years of service.
If this bill is enacted, insofar as it affects the New York State and
Local Employees' Retirement System (ERS), the additional cost for each
member who receives these benefits will vary depending on the member's
age, years of service, retirement plan and final average salary.
We anticipate that the per-member cost (at retirement) of the addi-
tional service credit benefit will average approximately 65% of a
member's final average salary. This cost will be borne by each employer
electing the incentive over a period not to exceed five years commencing
with a payment in the State fiscal year ending March 31, 2022.
We anticipate that the per-member cost (at retirement) of the elimi-
nation of the early retirement reductions at 25 years of service instead
of at 30 years of service will average approximately 110% of a member's
final average salary. This cost will be borne by each employer electing
the incentive over a period not to exceed five years commencing with a
payment in the State fiscal year ending March 31, 2022.
Summary of relevant resources:
S. 8599 19
The membership data used in measuring the impact of the proposed
change was the same as that used in the March 31, 2019 actuarial valu-
ation. Distributions and other statistics can be found in the 2019
Report of the Actuary and the 2019 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015,
2016, 2017, 2018, and 2019 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, 2019
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 June 1, 2020, and intended for use only during
the 2020 Legislative Session, is Fiscal Note No. 2020-116, prepared by
the Actuary for the New York State and Local Retirement System.
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