S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8698
 
                             I N  S E N A T E
 
                              March 31, 2022
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the retirement and social security law, in  relation  to
   increasing the amount of years of military service credit a member may
   purchase
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1 and 4 of section 1000 of the retirement  and
 social  security  law, as amended by chapter 41 of the laws of 2016, are
 amended to read as follows:
   1. A member, upon application to such retirement system, may obtain  a
 total  not  to  exceed  [three]  TEN  years  of service credit for up to
 [three] TEN years of military duty, as defined in  section  two  hundred
 forty-three  of the military law, if the member was honorably discharged
 from the military.
   4. In no event shall the credit granted pursuant to this section, when
 added to credit granted for military service with any retirement  system
 of  this  state pursuant to this or any other provision of law, exceed a
 total of [three] TEN years.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend the current military law to allow for  a  member
 to  obtain  up  to  a total of ten years of service credit for up to ten
 years of military duty if  the  member  was  honorably  discharged.  The
 current  maximum  is three years of service credit. 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 additional service credit
 granted by this bill. Tier 6 members would be required to make a payment
 of six percent of their most recent compensation per year of  additional
 service credit.
   If this bill is enacted, insofar as this proposal affects the New York
 State  and Local EmployeesÆ Retirement System (NYSLERS), it is estimated
 that the past service cost will be 20% (17% for Tier 6) of  an  affected
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13322-02-2
 S. 8698                             2
 
 member's compensation for each year of service credit that is purchased.
 For  the  NYSLERS, this cost would be borne entirely by the State of New
 York.
   Insofar  as  this proposal affects the New York State and Local Police
 and Fire Retirement System (NYSLPFRS), it is  estimated  that  the  past
 service  cost  will  be  29%  (26%  for  Tier 6) of an affected member's
 compensation for each year of service credit that is purchased.  For the
 NYSLPFRS, this cost would be shared by the State of  New  York  and  the
 participating employers of the NYSLPFRS.
   The  exact  number  of  current  members as well as future members who
 could be affected by this legislation cannot be readily determined.
   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  27,  2022,  and intended for use only
 during the 2022 Legislative Session, is Fiscal Note No. 2022-2, prepared
 by the Actuary for the New York State and Local Retirement System.