S T A T E   O F   N E W   Y O R K
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                                  5378--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2021
                                ___________
 
 Introduced  by  Sen.  AKSHAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- recommitted to the Committee  on  Civil  Service  and  Pensions  in
   accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to amend the retirement and social security law, in relation to
   granting members or officers of the state police credit for service as
   a deputy sheriff, county corrections  officer,  or  state  corrections
   officer
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of  subdivision  c  of  section  381-b  of  the
 retirement  and  social  security  law, as amended by chapter 581 of the
 laws of 2001, is amended and a new paragraph  3  is  added  to  read  as
 follows:
   (1) Police service. In computing the years of total creditable service
 in such division, full credit shall be given and full allowance shall be
 made  for  service  rendered  as  a police officer or member of a police
 force or department of a state park authority or commission or an organ-
 ized police force or department of a county, city, town, village, police
 district, authority or other participating employer  or  member  of  the
 capital police force in the office of general services while a member of
 the  New  York state and local police and fire retirement system, of the
 New York state and local employees' retirement system or of the New York
 city police pension fund and for all service for which full  credit  has
 been given and full allowance made pursuant to the provisions of section
 three  hundred seventy-five-h of this [chapter] ARTICLE provided, howev-
 er, that full credit pursuant to the provisions of  such  section  shall
 mean  only  such  service as would be creditable service pursuant to the
 provisions of  section  three  hundred  eighty-three  or  section  three
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04170-05-2
              

 S. 5378--A                          2
 
 hundred  eighty-three-a or three hundred eighty-three-b enacted by chap-
 ter six hundred seventy-seven of the laws of nineteen hundred eighty-six
 of this [chapter] TITLE or pursuant to the provisions of title  thirteen
 of  the  administrative  code  of  the  city  of New York for any member
 contributing pursuant to this section who transferred to the division of
 state police.
   (3) (A) DEPUTY  SHERIFF,  COUNTY  CORRECTIONS,  OR  STATE  CORRECTIONS
 SERVICE.  UPON  COMPLETION OF MORE THAN SEVENTEEN YEARS OF SERVICE, EACH
 SUCH MEMBER WHO WAS PREVIOUSLY CREDITED WITH SERVICE CREDIT IN  THE  NEW
 YORK  STATE  AND LOCAL EMPLOYEES' RETIREMENT SYSTEM AS A DEPUTY SHERIFF,
 COUNTY CORRECTIONS OFFICER, OR MEMBER  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 AND WHO WAS ENGAGED DIRECTLY IN LAW ENFORCEMENT ACTIV-
 ITIES WHILE PERFORMING SUCH SERVICES SHALL RECEIVE ONE YEAR  OF  SERVICE
 CREDIT  FOR  EACH  SUCH  YEAR  OF  PREVIOUS SERVICE, UP TO A TOTAL OF NO
 GREATER THAN TWO YEARS OF PREVIOUS SERVICE CREDIT.
   (B) TO OBTAIN SUCH CREDIT, A MEMBER SHALL PAY SUCH RETIREMENT  SYSTEM,
 FOR DEPOSIT IN THE FUND USED TO ACCUMULATE EMPLOYER CONTRIBUTIONS, A SUM
 EQUAL  TO  THE  PRODUCT  OF  THE NUMBER OF YEARS OF POLICE SERVICE BEING
 CLAIMED AND THREE PERCENT OF SUCH MEMBER'S  COMPENSATION  EARNED  DURING
 THE  TWELVE  MONTHS  OF  CREDITED SERVICE IMMEDIATELY PRECEDING THE DATE
 THAT THE MEMBER MADE APPLICATION FOR CREDIT PURSUANT TO THIS SECTION. IF
 PERMITTED BY RULE OR REGULATION OF THE RETIREMENT SYSTEM, THE MEMBER MAY
 PAY SUCH MEMBER COSTS BY PAYROLL DEDUCTION FOR A PERIOD WHICH SHALL  NOT
 EXCEED THE TIME PERIOD OF POLICE SERVICE TO BE CREDITED PURSUANT TO THIS
 SECTION.  IN  THE  EVENT THE MEMBER LEAVES THE EMPLOYER PAYROLL PRIOR TO
 COMPLETION OF PAYMENT, HE OR SHE SHALL FORWARD  ALL  REMAINING  REQUIRED
 PAYMENTS  TO  THE  APPROPRIATE  RETIREMENT SYSTEM PRIOR TO THE EFFECTIVE
 DATE OF RETIREMENT. IF THE FULL AMOUNT OF SUCH MEMBER COSTS IS NOT  PAID
 TO  THE  APPROPRIATE RETIREMENT SYSTEM PRIOR TO THE MEMBER'S RETIREMENT,
 THE AMOUNT OF SERVICE CREDITED SHALL BE PROPORTIONAL TO THE TOTAL AMOUNT
 OF THE PAYMENTS MADE PRIOR TO RETIREMENT.
   (C) IN NO EVENT SHALL THE CREDIT GRANTED PURSUANT TO  THIS  PARAGRAPH,
 WHEN  ADDED  TO  CREDIT  GRANTED  FOR POLICE SERVICE WITH ANY RETIREMENT
 SYSTEM OF THIS STATE PURSUANT TO THIS OR ANY  OTHER  PROVISION  OF  LAW,
 EXCEED A TOTAL OF TWO YEARS.
   (D)  TO  BE  ELIGIBLE  TO RECEIVE CREDIT FOR POLICE SERVICE UNDER THIS
 PARAGRAPH, A MEMBER MUST MAKE APPLICATION FOR  SUCH  CREDIT  BEFORE  THE
 EFFECTIVE DATE OF RETIREMENT.
   (E)  ALL COSTS FOR SERVICE CREDITED TO A MEMBER PURSUANT TO THIS PARA-
 GRAPH, OTHER THAN THE MEMBER COSTS SET FORTH IN SUBPARAGRAPH (B) OF THIS
 PARAGRAPH, SHALL BE PAID BY THE STATE.
   (F) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IN THE EVENT OF  DEATH
 PRIOR  TO  RETIREMENT,  AMOUNTS  PAID  BY THE MEMBER FOR THE PURCHASE OF
 POLICE SERVICE CREDIT PURSUANT TO THIS PARAGRAPH SHALL BE REFUNDED, WITH
 INTEREST, TO THE EXTENT THE POLICE SERVICE PURCHASED WITH  SUCH  AMOUNTS
 DOES  NOT  PRODUCE  A GREATER DEATH BENEFIT THAN WOULD HAVE BEEN PAYABLE
 HAD THE MEMBER NOT PURCHASED SUCH CREDIT.
   (G) NOTWITHSTANDING ANY OTHER  PROVISION  OF  LAW,  IN  THE  EVENT  OF
 RETIREMENT,  AMOUNTS  PAID  BY  THE  MEMBER  FOR  THE PURCHASE OF POLICE
 SERVICE CREDIT PURSUANT TO THIS SECTION SHALL BE REFUNDED,  WITH  INTER-
 EST,  TO  THE EXTENT THE POLICE SERVICE PURCHASED WITH SUCH AMOUNTS DOES
 NOT PRODUCE A GREATER RETIREMENT ALLOWANCE THAN WOULD HAVE BEEN  PAYABLE
 HAD THE MEMBER NOT PURCHASED SUCH CREDIT.
 S. 5378--A                          3
 
   (H)  IN  THE  EVENT  THE SERVICE CREDIT GRANTED PURSUANT TO THIS PARA-
 GRAPH, WHEN ADDED TO A MEMBER'S CURRENT SERVICE CREDIT, RENDERS  HIM  OR
 HER  ELIGIBLE FOR SERVICE RETIREMENT, SUCH MEMBER SHALL BE DEEMED ELIGI-
 BLE FOR SUCH SERVICE RETIREMENT AND MAY ELECT TO RETIRE UNDER THE  RULES
 SET FORTH BY THE RETIREMENT SYSTEM.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  allow  up  to  two  (2) years of service credit for
 service rendered as a deputy  sheriff,  county  corrections  officer  or
 state  corrections  officer  to  be creditable to State Police officers.
 Such officers must have at least seventeen years of credited service and
 would be required to make a payment  of  three  percent  of  their  most
 recent   compensation  per  year  of  additional  service  credit  being
 purchased under the provisions of this bill.
   If this bill is enacted during the 2022  legislative  session,  it  is
 estimated  that  the past service cost will average approximately 22% of
 an affected officer's compensation for each year of  additional  service
 credit  that is purchased. This cost will be borne entirely by the State
 of New York.
   Internal Revenue Service (IRS)  plan  qualification  issues:  granting
 service  credit  towards  retirement  in  a 20-year plan in the New York
 State and Local Police and Fire Retirement System (PFRS) for  employment
 that  was  not  rendered  in  the  PFRS  could jeopardize the Retirement
 System's governmental plan status and its  exemption  from  ERISA.  This
 could  result in the loss of qualified status, which would mean the loss
 of tax benefits and would substantially impair the System's value to our
 more than one million participants.
   Prior to the enactment of this legislation, we recommend that a favor-
 able ruling be obtained from the IRS stating that these provisions would
 not harm the qualification status of the System. It  is  estimated  that
 the  costs  to obtain such a ruling would be $28,000 for the services of
 the IRS, and $800 per hour for legal consultants.
   Summary of relevant resources:
   Membership data as of March 31, 2021 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2021 actuari-
 al  valuation.    Distributions and other statistics can be found in the
 2021 Report of the Actuary and the 2021 Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2020
 and 2021 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, 2021
 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  25,  2022,  and intended for use only
 during the  2022  Legislative  Session,  is  Fiscal  Note  No.  2022-59,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.