S T A T E O F N E W Y O R K
________________________________________________________________________
6367
2019-2020 Regular Sessions
I N S E N A T E
June 6, 2019
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend chapter 504 of the laws of 2009 amending the retirement
and social security law and other laws relating to establishing police
and fire retirement provisions, in relation to a special retirement
plan for certain members of 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 8 of part A of chapter 504 of the laws of 2009
amending the retirement and social security law and other laws relating
to establishing police and fire retirement provisions, as amended by
chapter 263 of the laws of 2016, is amended to read as follows:
§ 8. (a) Notwithstanding any provision of law to the contrary, nothing
in this act shall limit the eligibility of any member of an employee
organization to join a special retirement plan open to him or her pursu-
ant to a collectively negotiated agreement with any state or local
government employer, where such agreement is in effect on the effective
date of this act and so long as such agreement remains in effect there-
after; provided, however, that any such eligibility shall not apply upon
termination of such agreement for employees otherwise subject to the
provisions of article [twenty-two] 22 of the retirement and social secu-
rity law.
(b) Notwithstanding any other provision of law to the contrary, any
member of a retirement system within New York state who became a member
of such system on or after July 1, 2009 and before January 10, 2010 and
subsequently become a member of the New York state and local police and
fire retirement system and thereafter transferred his or her membership
in the first retirement system to the New York state and local police
and fire retirement system may elect to be covered by the provisions of
article [twenty-two] 22 of the retirement and social security law effec-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11962-06-9
S. 6367 2
tive on the date of membership in the first retirement system. Such
member shall also be permitted to elect any special retirement plan
available to him or her. Any contributions for previous pension benefits
shall not be refunded.
(C) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY ANY
MEMBER OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM
WHO BECAME A MEMBER ON OR AFTER JULY 1, 2009 AND BEFORE JANUARY 9, 2010
MAY JOIN A SPECIAL RETIREMENT PLAN OPEN TO HIM OR HER PURSUANT TO A
COLLECTIVE NEGOTIATED AGREEMENT WITH ANY STATE OR LOCAL GOVERNMENT
EMPLOYER, WHERE SUCH AGREEMENT WAS IN EFFECT ON OR AFTER JULY 1, 2009
AND BEFORE JANUARY 9, 2010 OR SUCH AGREEMENT WAS EXPIRED BUT CONTINUED
PURSUANT TO SECTION 209 OF THE CIVIL SERVICE LAW ON OR AFTER JULY 1,
2009 AND BEFORE JANUARY 9, 2010.
(D) ANY MEMBER OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIRE-
MENT SYSTEM WHO ELECTS COVERAGE OF A SPECIAL RETIREMENT PLAN PURSUANT TO
SUBDIVISION (C) OF THIS SECTION SHALL BE CONSIDERED A MEMBER SUBJECT TO
ALL THE TERMS AND CONDITIONS OF ARTICLE 11 OF THE RETIREMENT AND SOCIAL
SECURITY LAW.
§ 2. No employee contributions made to the New York state and local
police and fire retirement system by any police officer or firefighter
who elects to make such change in plan coverage pursuant to this act
shall be returned to such officer or firefighter. Such employee contrib-
ution shall be used to offset any past service costs incurred by opera-
tion of the provisions of this act.
§ 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend Chapter 504 of the Laws of 2009 to allow indi-
viduals who became a member of the New York State and Local Police and
Fire Retirement System (PFRS) on or after July 1, 2009 and before Janu-
ary 9, 2010, to make an irrevocable election to become covered by the
provisions of Tier 2. Any member who elects to become covered would not
receive a refund of member contributions.
If this bill is enacted during the 2019 legislative session, there
will be an increase in annual contributions made to PFRS on behalf of
affected members by such member's employers based upon the current and
resulting plan coverage. For the fiscal year ending March 31, 2020,
anticipated increases in employer contribution rates, as a percent of
salary, are approximately
Current Plan
Resulting
Tier 2 Plan Tier 3 Tier 5 Tier 5
Contributory Non-Contrib
384-d 0.1% 4.5% 1.1%
384-e 0.9% 4.5% 1.1%
381-b 2.8% 4.6%
In future years, these costs will vary as billing rates and salaries
change.
This proposal is expected to affect 231 active members earning a sala-
ry of approximately $21.6 million as of March 31, 2018.
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. 6367 3
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 May 16, 2019, and intended for use only during
the 2019 Legislative Session, is Fiscal Note No. 2019-112, prepared by
the Actuary for the New York State and Local Retirement System.
