S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7049
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 21, 2021
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT  to amend the retirement and social security law, in relation to
   calculating certain pensions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivision a of section 504 of the retirement and social
 security law, as amended by chapter 18 of the laws of 2012,  is  amended
 to read as follows:
   a.  The  service  retirement  benefit  for  general  members at normal
 retirement age with twenty or more years of credited service shall be  a
 pension  equal  to  one-fiftieth  of final average salary times years of
 credited service, not in excess of thirty years, less fifty  percent  of
 the  primary  social  security retirement benefit as provided in section
 five hundred eleven of this article. The service retirement benefit  for
 general  members  at  normal retirement age with twenty or more years of
 service who first become members of the New York state and local employ-
 ees' retirement system on or after April first, two thousand  twelve  at
 normal  retirement  age  shall be a pension equal to the sum of [thirty-
 five] FORTY per centum and one-fiftieth of final average salary for each
 year of service in excess of twenty, but not in excess of thirty,  times
 final average salary times years of credited service.
   § 2. Subdivision b-1 of section 604 of the retirement and social secu-
 rity law, as added by chapter 18 of the laws of 2012, is amended to read
 as follows:
   b-1.  Notwithstanding  any other provision of law to the contrary, the
 service retirement benefit for members with  twenty  or  more  years  of
 credit  service  who first become a member of a public retirement system
 of the state on or after April first, two thousand twelve at age  sixty-
 three  shall  be  a  pension equal to the sum of [thirty-five] FORTY per
 centum and one-fiftieth of final average salary for each year of service
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03545-02-1

 A. 7049                             2
 
 in excess of twenty times final average salary times years  of  credited
 service.  In  no  event  shall  any  retirement  benefit payable without
 optional modification be less than the actuarially equivalent annuitized
 value  of  the  member's contributions accumulated with interest at five
 percent per annum compounded annually to the date of retirement.
   § 3. Subdivision d of section 516 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   d. The deferred vested benefit of general  members  in  the  uniformed
 correction  force of the New York city department of correction, who are
 not entitled to a deferred vested benefit under subdivision d of section
 five hundred four-a of this article or under subdivision  d  of  section
 five  hundred  four-b  of this article or under subdivision d of section
 five hundred four-d of this  article,  or  of  general  members  in  the
 uniformed  personnel  in  institutions  under  the  jurisdiction  of the
 department of corrections  and  community  supervision,  as  defined  in
 subdivision  i  of  section  eighty-nine of this chapter, with twenty or
 more years of credited service shall be a pension commencing  at  normal
 retirement age equal to one-fiftieth of final average salary times years
 of  credited  service, not in excess of thirty years, or for members who
 first become members of the New York state and local employees'  retire-
 ment  system  on  or  after  April first, two thousand twelve, a pension
 equal to the sum of [thirty-five] FORTY per centum and  one-fiftieth  of
 final  average  salary for each year of service in excess of twenty, but
 not in excess of thirty, times final average salary times years of cred-
 ited service. The deferred vested benefit  of  general  members  in  the
 uniformed   correction   force  of  the  New  York  city  department  of
 correction, who are not entitled to  a  deferred  vested  benefit  under
 subdivision  d  of  section five hundred four-a of this article or under
 subdivision d of section five hundred four-b of this  article  or  under
 subdivision  d  of  section  five  hundred four-d of this article, or of
 general members in the uniformed personnel in institutions under  juris-
 diction  of  the department of corrections and community supervision, as
 defined in subdivision i of section eighty-nine of  this  chapter,  with
 less than twenty years of credited service shall be a pension commencing
 at  normal  retirement age equal to one-sixtieth of final average salary
 times years of credited service. Such deferred  vested  benefit  may  be
 paid in the form of an early service retirement benefit, or may be post-
 poned until after normal retirement age, in which event the benefit will
 be  subject  to  reduction or escalation as provided in subdivision c of
 section five hundred four of this article.
   § 4. Section 1312 of the retirement and social security law, as  added
 by chapter 18 of the laws of 2012, is amended to read as follows:
   §  1312.  Benefit  enhancements.  Notwithstanding any other law to the
 contrary, eligible employees  shall  be  permitted  to  retire,  without
 penalty,  upon  reaching  age fifty-seven and completing at least thirty
 years of credited service. Employees retiring pursuant to  this  section
 shall  receive  a  pension  allowance  equal to the sum of [thirty-five]
 FORTY per centum and one-fiftieth of final average salary for each  year
 of service in excess of twenty times final average salary times years of
 credited service.
   §  5. 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.
   § 6. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:

 A. 7049                             3

   This  bill  will  change  the benefit fraction for a Tier 6 member for
 service greater than 20 years to 40% of FAS plus 2% per year of  service
 greater than 20. Currently the benefit for service greater than 20 years
 is 35% of FAS plus 2% per year of service greater than 20.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System (NYSLERS), if this legislation is enacted  during  the
 2021  legislative  session, we anticipate that there will be an increase
 in the annual contributions of the State of New York and all participat-
 ing employers in the NYSLERS approximately 0.8% of the  compensation  of
 each affected Tier 6 member.
   In addition to the annual contributions discussed above, there will be
 a  past service cost of approximately $291 million which would be shared
 by the State of New York and all of the participating employers  in  the
 NYSLERS.  The  estimated  first  year  cost would be approximately $14.3
 million to the State of New York and approximately $20.6 million to  the
 participating employers in the NYSLERS.
   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 January 13,  2021,  and  intended  for  use  only
 during  the  2021  Legislative  Session,  is  Fiscal  Note  No. 2021-20,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.