LBD05266-05-1
A. 5278--A 2
31. "Service in world war II." (1) Military service during the period
commencing July first, nineteen hundred forty, and terminating December
thirty-first, nineteen hundred forty-six, as a member of the armed forc-
es of the United States, or service by one who was employed by the War
Shipping Administration or Office of Defense Transportation or their
agents as a merchant seaman documented by the United States Coast Guard
or Department of Commerce, or as a civil servant employed by the United
States Army Transport Service (later redesignated as the United States
Army Transportation Corps, Water Division) or the Naval Transportation
Service; and who served satisfactorily as a crew member during the peri-
od of armed conflict, December seventh, nineteen hundred forty-one, to
August fifteenth, nineteen hundred forty-five, aboard merchant vessels
in oceangoing, i.e., foreign, intercoastal, or coastwise service as such
terms are defined under federal law (46 USCA 10301 & 10501) and further
to include "near foreign" voyages between the United States and Canada,
Mexico, or the West Indies via ocean routes, or public vessels in ocean-
going service or foreign waters and who has received a Certificate of
Release or Discharge from Active Duty and a discharge certificate, or an
Honorable Service Certificate/Report of Casualty, from the Department of
Defense, or service by one who served as a United States civilian
employed by the American Field Service and served overseas under United
States Armies and United States Army Groups in world war II during the
period of armed conflict, December seventh, nineteen hundred forty-one
through May eighth, nineteen hundred forty-five, and who (I) was
discharged or released therefrom under honorable conditions, OR (II) HAS
A QUALIFYING CONDITION, AS DEFINED IN SECTION THREE HUNDRED FIFTY OF THE
EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR
DISHONORABLE FROM SUCH SERVICE, OR (III) IS A DISCHARGED LGBT VETERAN,
AS DEFINED IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS
RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH
SERVICE, or service by one who served as a United States civilian Flight
Crew and Aviation Ground Support Employee of Pan American World Airways
or one of its subsidiaries or its affiliates and served overseas as a
result of Pan American's contract with Air Transport Command or Naval
Air Transport Service during the period of armed conflict, December
fourteenth, nineteen hundred forty-one through August fourteenth, nine-
teen hundred forty-five, and who (IV) was discharged or released there-
from under honorable conditions, OR (V) HAS A QUALIFYING CONDITION, AS
DEFINED IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS
RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH
SERVICE, OR (VI) IS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION
THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE
OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, or of any
person who:
a. (I) Has been honorably discharged or released therefrom under
honorable circumstances, OR (II) HAS A QUALIFYING CONDITION, AS DEFINED
IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A
DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, OR
(III) IS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION THREE HUNDRED
FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE OTHER THAN BAD
CONDUCT OR DISHONORABLE FROM SUCH SERVICE, and
b. Was a resident of this state at the time of his entrance into such
armed forces, or, if not a resident of this state at that time, was then
or thereafter became an employee of a participating employer created by
and deriving its powers from an agreement between this state and any
A. 5278--A 3
other state and was a resident of such other state at the time of his
entrance into such armed forces, and
c. Was either a member of the retirement system and an employee of the
state or of a participating employer at the time he entered such armed
forces or became such employee and such member while in such armed forc-
es on or before July first, nineteen hundred forty-eight, or became such
employee while in such armed forces and subsequently became such member
on or before July first, nineteen hundred forty-eight, or was an employ-
ee of an employer which was not a participating employer at the time he
entered such armed forces but which elected to become a participating
employer while he was absent on military duty, or was an employee of the
state or of a participating employer or was a teacher as defined in
article eleven of the education law at the time of his entrance into the
armed forces and became a member of the retirement system subsequent to
separation or discharge from the armed services, and
d. Returned to the employment of the state or a participating employ-
er, within one year following discharge or release or completion of
advanced education provided under the servicemen's readjustment act of
nineteen hundred forty-four, certified on a world war II military
service certificate, and allowable as provided in section forty-one of
this article. Such service shall not include any periods during which
civil compensation was received by the member under the provisions of
section two hundred forty-two of the military law, or section six of
chapter six hundred eight of the laws of nineteen hundred fifty-two; or
(2) Military service, not in excess of three years and not otherwise
creditable under paragraph one hereof, rendered on active duty in the
armed forces of the United States during the period commencing July
first, nineteen hundred forty, and terminating December thirty-first,
nineteen hundred forty-six, or service by one who was employed by the
War Shipping Administration or Office of Defense Transportation or their
agents as a merchant seaman documented by the United States Coast Guard
or Department of Commerce, or as a civil servant employed by the United
States Army Transport Service (later redesignated as the United States
Army Transportation Corps, Water Division) or the Naval Transportation
Service; and who served satisfactorily as a crew member during the peri-
od of armed conflict, December seventh, nineteen hundred forty-one, to
August fifteenth, nineteen hundred forty-five, aboard merchant vessels
in oceangoing, i.e., foreign, intercoastal, or coastwise service as such
terms are defined under federal law (46 USCA 10301 & 10501) and further
to include "near foreign" voyages between the United States and Canada,
Mexico, or the West Indies via ocean routes, or public vessels in ocean-
going service or foreign waters and who has received a Certificate of
Release or Discharge from Active Duty and a discharge certificate, or an
Honorable Service Certificate/Report of Casualty, from the Department of
Defense, or service by one who served as a United States civilian
employed by the American Field Service and served overseas under United
States Armies and United States Army Groups in world war II during the
period of armed conflict, December seventh, nineteen hundred forty-one
through May eighth, nineteen hundred forty-five, and who (I) was
discharged or released therefrom under honorable conditions, OR (II) HAS
A QUALIFYING CONDITION, AS DEFINED IN SECTION THREE HUNDRED FIFTY OF THE
EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR
DISHONORABLE FROM SUCH SERVICE, OR (III) IS A DISCHARGED LGBT VETERAN,
AS DEFINED IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS
RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH
SERVICE, or service by one who served as a United States civilian Flight
A. 5278--A 4
Crew and Aviation Ground Support Employee of Pan American World Airways
or one of its subsidiaries or its affiliates and served overseas as a
result of Pan American's contract with Air Transport Command or Naval
Air Transport Service during the period of armed conflict, December
fourteenth, nineteen hundred forty-one through August fourteenth, nine-
teen hundred forty-five, and who (IV) was discharged or released there-
from under honorable conditions, OR (V) HAS A QUALIFYING CONDITION, AS
DEFINED IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS
RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH
SERVICE, OR (VI) IS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION
THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE
OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, by a person
who was a resident of New York state at the time of entry into such
service and at the time of being discharged therefrom (VII) under honor-
able circumstances, OR (VIII) WITH A QUALIFYING CONDITION, AS DEFINED IN
SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND RECEIVED A
DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, OR
(IX) AS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION THREE HUNDRED
FIFTY OF THE EXECUTIVE LAW, AND RECEIVED A DISCHARGE OTHER THAN BAD
CONDUCT OR DISHONORABLE FROM SUCH SERVICE, or, if not a resident of this
state at such times was then or thereafter became an employee of a
participating employer created by and deriving its powers from an agree-
ment between this state and any other state, and was a resident of such
other state at the time of entry into and discharge from such service,
and who makes the payments required by subdivision k of section forty-
one of this article.
However, no military service shall be creditable under this paragraph
two in the case of a member under an existing plan permitting retirement
upon twenty years of creditable service who is receiving a federal
pension (other than for disability) based upon a minimum of twenty years
of full time active military service in the armed forces of the United
States nor shall any military service be creditable in the case of a
member under any other plan who is receiving a military pension (other
than for disability) for military service in the armed forces of the
United States.
§ 4. Subparagraph (c) of paragraph 8 of subdivision a of section 80-a
of the retirement and social security law, as added by chapter 219 of
the laws of 1968, is amended to read as follows:
(c) In the case of a senator or assemblyman, service, not in excess of
three years and not otherwise creditable under subparagraph (b) of this
paragraph [eight], rendered on active duty in the armed forces of the
United States during the period commencing July first, nineteen hundred
forty, and terminating December thirty-first, nineteen hundred forty-
six, by a person who was a resident of the state at the time of entry
into service and at the time of being discharged therefrom (I) under
honorable circumstances, OR (II) HAS A QUALIFYING CONDITION, AS DEFINED
IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND WAS A RESIDENT
OF THE STATE AT THE TIME OF ENTRY INTO SERVICE AND AT THE TIME OF
RECEIVING A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH
SERVICE, OR (III) IS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION
THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND WAS A RESIDENT OF THE
STATE AT THE TIME OF ENTRY INTO SERVICE AND AT THE TIME OF RECEIVING A
DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE.
§ 5. Subdivision (i) of section 89-a of the retirement and social
security law, as added by chapter 996 of the laws of 1966 and such
A. 5278--A 5
section as renumbered by chapter 1059 of the laws of 1968, is amended to
read as follows:
(i) In computing the twenty-five years of total service of a member
pursuant to this section full credit shall be given and full allowance
shall be made for service of such member in time of war after world war
I as defined in section two of this chapter, provided such member at the
time of his entrance into the military service of the United States was
then a resident of this state and in the service of a sheriffs depart-
ment and (1) had been honorably discharged or released under honorable
circumstances from such military service, OR (2) HAS A QUALIFYING CONDI-
TION, AS DEFINED IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW,
AND RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM
SUCH SERVICE, OR (3) IS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION
THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND RECEIVED A DISCHARGE OTHER
THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, and SUCH MEMBER
returned to the service of a sheriffs department within the time limited
by section two of this chapter.
§ 6. Paragraph a of subdivision 29 of section 302 of the retirement
and social security law, as added by chapter 1000 of the laws of 1966,
is amended to read as follows:
a. (1) Has been honorably discharged or released therefrom under
honorable circumstances, OR (2) HAS A QUALIFYING CONDITION, AS DEFINED
IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A
DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, OR
(3) IS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION THREE HUNDRED
FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE OTHER THAN BAD
CONDUCT OR DISHONORABLE FROM SUCH SERVICE, and
§ 7. Paragraph d of subdivision 29-a of section 302 of the retirement
and social security law, as added by chapter 1000 of the laws of 1966,
is amended to read as follows:
d. Credit under this section shall not accrue to a person who is
released from active duty under conditions other than honorable, UNLESS
SUCH PERSON HAS A QUALIFYING CONDITION, AS DEFINED IN SECTION THREE
HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE OTHER
THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, OR IS A DISCHARGED
LGBT VETERAN, AS DEFINED IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE
LAW, AND HAS RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE
FROM SUCH SERVICE.
§ 8. Subdivision 31 of section 302 of the retirement and social secu-
rity law, as amended by chapter 616 of the laws of 1995, subparagraph c
of paragraph 1 as amended by chapter 476 of the laws of 2018, is amended
to read as follows:
31. "Service in world war II." (1) Military service during the period
commencing July first, nineteen hundred forty, and terminating December
thirty-first, nineteen hundred forty-six, as a member of the armed forc-
es of the United States, or service by one who was employed by the War
Shipping Administration or Office of Defense Transportation or their
agents as a merchant seaman documented by the United States Coast Guard
or Department of Commerce, or as a civil servant employed by the United
States Army Transport Service (later redesignated as the United States
Army Transportation Corps, Water Division) or the Naval Transportation
Service; and who served satisfactorily as a crew member during the peri-
od of armed conflict, December seventh, nineteen hundred forty-one, to
August fifteenth, nineteen hundred forty-five, aboard merchant vessels
in oceangoing, i.e., foreign, intercoastal, or coastwise service as such
terms are defined under federal law (46 USCA 10301 & 10501) and further
A. 5278--A 6
to include "near foreign" voyages between the United States and Canada,
Mexico, or the West Indies via ocean routes, or public vessels in ocean-
going service or foreign waters and who has received a Certificate of
Release or Discharge from Active Duty and a discharge certificate, or an
Honorable Service Certificate/Report of Casualty, from the Department of
Defense, or service by one who served as a United States civilian
employed by the American Field Service and served overseas under United
States Armies and United States Army Groups in world war II during the
period of armed conflict, December seventh, nineteen hundred forty-one
through May eighth, nineteen hundred forty-five, and who (I) was
discharged or released therefrom under honorable conditions, OR (II) HAS
A QUALIFYING CONDITION, AS DEFINED IN SECTION THREE HUNDRED FIFTY OF THE
EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR
DISHONORABLE FROM SUCH SERVICE, OR (III) IS A DISCHARGED LGBT VETERAN,
AS DEFINED IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS
RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH
SERVICE, or service by one who served as a United States civilian Flight
Crew and Aviation Ground Support Employee of Pan American World Airways
or one of its subsidiaries or its affiliates and served overseas as a
result of Pan American's contract with Air Transport Command or Naval
Air Transport Service during the period of armed conflict, December
fourteenth, nineteen hundred forty-one through August fourteenth, nine-
teen hundred forty-five, and who (IV) was discharged or released there-
from under honorable conditions, OR (V) HAS A QUALIFYING CONDITION, AS
DEFINED IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS
RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH
SERVICE, OR (VI) IS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION
THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE
OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, or of any
person who:
a. (I) Has been honorably discharged or released therefrom under
honorable circumstances, OR (II) HAS A QUALIFYING CONDITION, AS DEFINED
IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A
DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, OR
(III) IS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION THREE HUNDRED
FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE OTHER THAN BAD
CONDUCT OR DISHONORABLE FROM SUCH SERVICE, and
b. Was a resident of this state at the time of his entrance into such
armed forces, or, if not a resident of this state at that time, was then
or thereafter became an employee of a participating employer created by
and deriving its powers from an agreement between this state and any
other state and was a resident of such other state at the time of his
entrance into such armed forces, and
c. Was either a member of the New York state and local employees'
retirement system and an employee of the state or of a participating
employer of such system at the time he or she entered such armed forces
or became such employee and such member while in such armed forces on or
before July first, nineteen hundred forty-eight, or became such employee
while in such armed forces and subsequently became such member on or
before July first, nineteen hundred forty-eight, or was an employee of
an employer which was not a participating employer at the time he or she
entered such armed forces but which elected to become a participating
employer while he or she was absent on military duty, or was an employee
of the state or of a participating employer or was a teacher as defined
in article eleven of the education law at the time of his or her
entrance into the armed forces and became a member of the police and
A. 5278--A 7
fire retirement system subsequent to separation or discharge from the
armed services, and
d. Returned to the employment of the state or a participating employ-
er, within one year following discharge or release or completion of
advanced education provided under the servicemen's readjustment act of
nineteen hundred forty-four, certified on a world war II military
service certificate, and allowable as provided in section forty-one of
this article. Such service shall not include any periods during which
civil compensation was received by the member under the provisions of
section two hundred forty-two of the military law, or section six of
chapter six hundred eight of the laws of nineteen hundred fifty-two; or
(2) Military service, not in excess of three years and not otherwise
creditable under paragraph one hereof, rendered on active duty in the
armed forces of the United States during the period commencing July
first, nineteen hundred forty, and terminating December thirty-first,
nineteen hundred forty-six, or service by one who was employed by the
War Shipping Administration or Office of Defense Transportation or their
agents as a merchant seaman documented by the United States Coast Guard
or Department of Commerce, or as a civil servant employed by the United
States Army Transport Service (later redesignated as the United States
Army Transportation Corps, Water Division) or the Naval Transportation
Service; and who served satisfactorily as a crew member during the peri-
od of armed conflict, December seventh, nineteen hundred forty-one, to
August fifteenth, nineteen hundred forty-five, aboard merchant vessels
in oceangoing, i.e., foreign, intercoastal, or coastwise service as such
terms are defined under federal law (46 USCA 10301 & 10501) and further
to include "near foreign" voyages between the United States and Canada,
Mexico, or the West Indies via ocean routes, or public vessels in ocean-
going service or foreign waters and who has received a Certificate of
Release or Discharge from Active Duty and a discharge certificate, or an
Honorable Service Certificate/Report of Casualty, from the Department of
Defense, or service by one who served as a United States civilian
employed by the American Field Service and served overseas under United
States Armies and United States Army Groups in world war II during the
period of armed conflict, December seventh, nineteen hundred forty-one
through May eighth, nineteen hundred forty-five, and who (I) was
discharged or released therefrom under honorable conditions, OR (II) HAS
A QUALIFYING CONDITION, AS DEFINED IN SECTION THREE HUNDRED FIFTY OF THE
EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR
DISHONORABLE FROM SUCH SERVICE, OR (III) IS A DISCHARGED LGBT VETERAN,
AS DEFINED IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS
RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH
SERVICE, or service by one who served as a United States civilian Flight
Crew and Aviation Ground Support Employee of Pan American World Airways
or one of its subsidiaries or its affiliates and served overseas as a
result of Pan American's contract with Air Transport Command or Naval
Air Transport Service during the period of armed conflict, December
fourteenth, nineteen hundred forty-one through August fourteenth, nine-
teen hundred forty-five, and who (IV) was discharged or released there-
from under honorable conditions, OR (V) HAS A QUALIFYING CONDITION, AS
DEFINED IN SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS
RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH
SERVICE, OR (VI) IS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION
THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE
OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, or by a person
who was a resident of New York state at the time of entry into such
A. 5278--A 8
service and at the time of being discharged therefrom (VII) under honor-
able circumstances, OR (VIII) WITH A QUALIFYING CONDITION, AS DEFINED IN
SECTION THREE HUNDRED FIFTY OF THE EXECUTIVE LAW, AND RECEIVED A
DISCHARGE OTHER THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, OR
(IX) AS A DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION THREE HUNDRED
FIFTY OF THE EXECUTIVE LAW, AND RECEIVED A DISCHARGE OTHER THAN BAD
CONDUCT OR DISHONORABLE FROM SUCH SERVICE, or, if not a resident of this
state at such times was then or thereafter became an employee of a
participating employer created by and deriving its powers from an agree-
ment between this state and any other state, and was a resident of such
other state at the time of entry into and discharge from such service,
and who makes the payments required by subdivision k of section three
hundred forty-one of this chapter.
However, no military service shall be creditable under this paragraph
two in the case of a member under an existing plan permitting retirement
upon twenty years of creditable service who is receiving a federal
pension (other than for disability) based upon a minimum of twenty years
of military service in the armed forces of the United States nor shall
such military service be creditable in the case of a member under any
other plan who is receiving a military pension (other than for disabili-
ty) for such service.
§ 9. Subdivision 1 of section 1000 of the retirement and social secu-
rity law, as amended by chapter 41 of the laws of 2016, is amended to
read as follows:
1. A member, upon application to such retirement system, may obtain a
total not to exceed three years of service credit for up to three years
of military duty, as defined in section two hundred forty-three of the
military law, if the member (A) was honorably discharged from the mili-
tary, OR (B) HAS A QUALIFYING CONDITION, AS DEFINED IN SECTION THREE
HUNDRED FIFTY OF THE EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE OTHER
THAN BAD CONDUCT OR DISHONORABLE FROM SUCH SERVICE, OR (C) IS A
DISCHARGED LGBT VETERAN, AS DEFINED IN SECTION THREE HUNDRED FIFTY OF
THE EXECUTIVE LAW, AND HAS RECEIVED A DISCHARGE OTHER THAN BAD CONDUCT
OR DISHONORABLE FROM SUCH SERVICE.
§ 10. Notwithstanding any other provision of law to the contrary, none
of the provisions of this act shall be subject to section 25 of the
retirement and social security law.
§ 11. This act shall take effect one year after it shall have become a
law. Effective immediately, the addition, amendment and/or repeal of any
rule or regulation necessary for the implementation of this act on its
effective date are authorized to be made and completed on or before such
effective date.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would extend the benefits of Section 1000 of Retirement and
Social Security Law to any member of a public retirement system in New
York State who has a qualifying condition or is a discharged LGBT veter-
an as defined in section 350 of the Executive Law. The total service
credit granted for any military service shall not exceed three years.
Members must have at least five years of credited service (not including
military service). Tier 1-5 members would be required to make a payment
of three percent of their most recent compensation per year of addi-
tional service credit granted by this bill. Tier 6 members would be
required to make a payment of six percent of their most recent compen-
sation per year of additional service credit.
If this bill is enacted during the 2021 legislative session, insofar
as this proposal affects the New York State and Local Employees' Retire-
A. 5278--A 9
ment System (ERS), it is estimated that the past service cost will aver-
age approximately 15% (12% for Tier 6) of an affected members' compen-
sation for each year of additional service credit that is purchased.
Insofar as this proposal affects the New York State and Local Police
and Fire Retirement System (PFRS), it is estimated that the past service
cost will average approximately 19% (16% for Tier 6) of an affected
members' compensation for each year of additional service that is
purchased.
The exact number of current members as well as future members who
could be affected by this legislation cannot be readily determined.
Costs arising in ERS would be shared by the State of New York and the
participating employers in the ERS
Costs arising in PFRS would be shared by the State of New York and the
participating employers in the PFRS.
Summary of relevant resources:
Membership data as of March 31, 2020 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2020 actuari-
al valuation. Distributions and other statistics can be found in the
2020 Report of the Actuary and the 2020 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2020
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, 2020
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 18, 2021, and intended for use only during
the 2021 Legislative Session, is Fiscal Note No. 2021-148, prepared by
the Actuary for the New York State and Local Retirement System.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
As it applies to members of the New York State Teachers' Retirement
System, section 9 of this bill (legislative bill drafts
05266-03-1/05266-04-1) would amend subdivision 1 of Section 1000 of the
Retirement and Social Security Law to allow a member who has a qualify-
ing condition as defined in Section 350 of the Executive Law (post-trau-
matic stress disorder or traumatic brain injury) or a member who is a
discharged LGBT veteran as defined in Section 350 of the Executive Law
to purchase up to three years of military service credit provided such
member did not receive a dishonorable discharge and was not discharged
for bad conduct. To obtain such credit, a member must make payments as
required by Section 1000 of the Retirement and Social Security Law. Tier
1, 2, 3, 4 and 5 members are required to pay three percent of salary
earned during the twelve months of credited service immediately preced-
ing the year in which a claim is made for each year of military service.
Tier 6 members are required to pay six percent of salary earned during
the twelve months of credited service immediately preceding the year in
which a claim is made for each year of military service.
It is not possible to determine the number of eligible current and
future members, or the number of years of military service credit each
such member may purchase under this bill. Therefore, it is not possible
A. 5278--A 10
to estimate the annual increase in the employers' cost for this bill.
Whatever increase in liability that arises for service credited under
this bill above that paid by the member would be included in the cost
that would be shared by employers through the employer contribution
rate.
It is estimated that the cost, expressed as a percentage of a member's
salary for each year of service credit a member purchases under this
bill is as follows:
Cost per year of Service Purchased (as a percentage of the member's
salary)
Tier(s) 1-4 5 6
Cost 11.4% 10.6% 9.0%
Member Contribution offset 3.0% 3.0% 6.0%
Net cost to participating employers 8.4% 7.6% 3.0%
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
Annual Report. System assets are as reported in the System's financial
statements, and can also be found in the System's Annual Report. Actuar-
ial assumptions and methods are provided in the System's Actuarial Valu-
ation Report.
The source of this estimate is Fiscal Note 2021-56 dated May 26, 2021
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2021 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:
SUMMARY OF BILL: This proposed legislation, as it relates to members
of the New York City Retirement Systems and Pension Funds (NYCRS),
amends Retirement and Social Security Law (RSSL) Section 1000 to permit
the purchase of qualifying, other than honorably discharged, military
service for NYCRS service credit.
Effective Date: One year after enactment.
BACKGROUND: Members of NYCRS who were other than honorably discharged
from military service due to (1) post-traumatic stress disorder; (2)
traumatic brain injury; (3) an experience of military sexual trauma; (4)
sexual orientation, gender identity, or gender expression; or (5)
conduct or acts relating to sexual orientation, gender identity, or
gender expression that was prohibited by the military at the time of
discharge, are generally ineligible to purchase such military service
for purposes of NYCRS benefits.
IMPACT ON BENEFITS: Under the proposed legislation, if enacted, mili-
tary service with qualifying discharges described above, would become
eligible for purchase pursuant to RSSL Section 1000. RSSL Section 1000
allows for up to three years of military service to be purchased as
NYCRS service credit.
Prior military service with discharges due to bad conduct or dishonor-
able discharge would remain ineligible to purchase for purposes of NYCRS
benefits.
IMPACT ON PAYABILITY: In addition to the impact on benefits above,
once purchased, eligible military service would count towards meeting
the minimum eligibility requirements for NYCRS pension benefits.
A. 5278--A 11
ADDITIONAL MEMBER CONTRIBUTIONS: Eligible NYCRS members are required
to make contributions, equal to 3% of compensation earned during the
year of credited service immediately preceding the date of application,
for all military service being purchased.
FINANCIAL IMPACT - OVERVIEW: There is no data available to estimate
the number of members who were previously ineligible to purchase quali-
fying military service and potentially benefit from this proposed legis-
lation. Therefore, the estimated financial impact has been calculated
on a per event basis equal to the increase in the Present Value of
Future Benefits (PVFB) for an average NYCRS member who has purchased
military service under Chapter 41 of the Laws of 2016. In determining
the increase in the PVFB, it has been assumed that 2.4 years were
purchased.
FINANCIAL IMPACT - PRESENT VALUES: Based on the census data and the
actuarial assumptions and methods described herein, the enactment of
this proposed legislation would increase the PVFB by approximately
$49,300, on average, for each military buyback of 2.4 years purchased.
The average cost to the member for each buyback was approximately
$8,300. This results in a net increase in the Present Value of future
employer contributions of approximately $41,000 for each military
buyback of 2.4 years purchased.
With respect to an individual member, the additional cost of this
proposed legislation could vary greatly depending on the member's length
of service, age, and salary history.
FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: Enactment of this
proposed legislation would increase employer contributions, where such
amount would depend on the number of members affected as well as other
member characteristics as described above.
As there is no data currently available to estimate the number of
members who might become eligible and purchase military service due to
the proposed legislation, the financial impact would be recognized at
the time of the event. Consequently, changes in employer contributions
have been estimated assuming that the increase in the PVFB will be
financed over a time period used under the current amortization period
for actuarial losses under the Entry Age Normal cost method. Using this
approach, the additional PVFB would be amortized over a closed 15-year
period (14 payments under the One-Year Lag Methodology (OYLM)) using
level dollar payments.
Based on the Actuary's actuarial assumptions and methods in effect
described herein, the enactment of this proposed legislation is esti-
mated to increase annual employer contributions by approximately $4,900
for each military buyback of 2.4 years purchased. With respect to the
timing, increases in employer contributions would depend upon when
members elect to purchase the service. Generally, increased employer
contributions will first occur the second fiscal year following process-
ing and payment of the buyback application.
The proposed legislation, pursuant to section 10 of the bill, is not
subject to RSSL section 25. Therefore, costs associated with the enact-
ment of this bill would not be subject to State reimbursement notwith-
standing the increased cost of prior service associated with the bill.
CENSUS DATA: The estimates presented herein are based on the census
data of members who have purchased military service under Chapter 41 of
the Laws of 2016 as of June 30, 2020.
As of June 30, 2020, there were 3,202 NYCRS members who have purchased
prior military service under Chapter 41. Those members had an average
age of approximately 48.6 years, average service of approximately 16.9
A. 5278--A 12
years before buyback, and an average salary of approximately $107,700.
The average amount of service credit purchased was approximately 2.4
years.
ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of
future employer contributions and annual employer contributions
presented herein have been calculated based on the actuarial assumptions
and methods in effect for the June 30, 2019 (Lag) actuarial valuations
used to determine the Preliminary Fiscal Year 2021 employer contrib-
utions of each respective NYCRS.
The Actuary is proposing a set of changes for use beginning with the
June 30, 2019 (Lag) actuarial valuations of each NYCRS to determine the
respective Final Fiscal Year 2021 Employer Contributions (2021 A&M). If
the 2021 A&M is enacted, it is estimated that it would produce PVFB and
annual employer contribution results that are within 1% from the results
shown above.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the realization of the actuarial assumptions used, as well as
certain demographic characteristics of each respective NYCRS and other
exogenous factors such as investment, contribution, and other risks. If
actual experience deviates from actuarial assumptions, the actual costs
could differ from those presented herein. Costs are also dependent on
the actuarial methods used, and therefore different actuarial methods
could produce different results. Quantifying these risks is beyond the
scope of this Fiscal Note.
Not measured in this Fiscal Note are the following:
* The initial, additional administrative costs of NYCRS and other
New York City agencies to implement the proposed legislation.
* The impact of this proposed legislation on Other Postemployment
Benefit (OPEB) costs.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Retirement Systems and
Pension Funds. I am a Fellow of the Society of Actuaries, an Enrolled
Actuary under the Employee Retirement Income and Security Act of 1974, a
Member of the American Academy of Actuaries, and a Fellow of the Confer-
ence of Consulting Actuaries. I meet the Qualification Standards of the
American Academy of Actuaries to render the actuarial opinion contained
herein. To the best of my knowledge, the results contained herein have
been prepared in accordance with generally accepted actuarial principles
and procedures and with the Actuarial Standards of Practice issued by
the Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2021-43 dated June 8,
2021 was prepared by the Chief Actuary for the New York City Retirement
Systems and Pension Funds. This estimate is intended for use only during
the 2021 Legislative Session.