S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5088
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 10, 2021
                                ___________
 
 Introduced  by M. of A. ABINANTI, EPSTEIN, DICKENS, THIELE, ENGLEBRIGHT,
   SEAWRIGHT, McDONOUGH -- read once and referred  to  the  Committee  on
   Governmental Employees
 
 AN  ACT  to  provide  temporary  retirement incentive for certain public
   employees
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  enacts into law components of legislation that
 would establish an age 55/25  temporary  incentive  for  certain  public
 employees.
   § 2. Legislative findings. The legislature finds and declares that the
 retirement benefit for certain public employees who are above age 55 and
 with 25 years of service provided for in this act is intended only to be
 temporary in nature for employees who are eligible to receive and quali-
 fy  for the applicable benefit during the applicable time periods speci-
 fied in this act. Further, nothing in this act  shall  be  construed  to
 create  an  expectation of a future or continuing retirement benefit for
 any public employee who is not eligible to receive and qualify  for  the
 retirement benefits herein during the applicable time periods.
   §  3.  Definitions.  As  used  in this act, unless the context clearly
 requires otherwise:
   (a) "Retirement system" means the New York state and local  employees'
 retirement system and the New York state teachers' retirement system.
   (b)  "Teachers'  retirement system" means the New York state teachers'
 retirement system.
   (c) "Participating employer" means an educational employer, the state-
 operated institutions of the state university of New York, and a  commu-
 nity  college  operating  under a program of the state university of New
 York, and which participates in a retirement system as defined  in  this
 section.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03609-03-1
              

 A. 5088                             2
 
   (d)  "Educational  employer" means a participating employer which is a
 school district, a board of cooperative educational  services,  a  voca-
 tional education and extension board, an institution for the instruction
 of the deaf and of the blind as enumerated in section 4201 of the educa-
 tion law, or a school district as enumerated in section 1 of chapter 566
 of  the  laws of 1967, as amended; who employ members who participate in
 the New York state teachers' retirement system and the  New  York  state
 and local employees' retirement system.
   (e) "Eligible employee" means a person who is a member of the New York
 State  teachers'  retirement  system  or  the  New  York State and local
 employees retirement system and who is an employee of an educational  or
 participating  employer  as  defined  in  subdivision (c) or (d) of this
 section.
   (f) "Active service" means service while being paid  on  the  payroll,
 provided  that  (i)  a  leave of absence with pay shall be deemed active
 service; (ii) other approved leave without  pay  not  to  exceed  twelve
 weeks  from February 1, 2021 and the commencement of the designated open
 period; and (iii) the period of time subsequent to the June 2021  school
 term  and  on  or  before  August  31,  2021 for an eligible employee as
 defined in this act who is otherwise in active service on the  effective
 date of this act shall be deemed active service.
   (g)  "Open  period"  means  the period beginning with the commencement
 date as defined in subdivision (h) of this section;  provided,  however,
 for  the state-operated institutions of the state university of New York
 and community colleges, the open period shall be  as  specified  by  the
 appropriate  board  of  trustees,  and  shall  be ninety days in length;
 provided however that there shall be only one such open period  and  any
 such  period  shall not extend beyond September 11, 2021 for educational
 employers and shall not extend beyond December 31, 2021 for  the  state-
 operated  institutions of the state university of New York and community
 colleges. For the purposes of retirement pursuant to this act, a service
 retirement application must be filed  with  the  appropriate  retirement
 system  not  less  than fourteen days prior to the effective date of the
 retirement, unless a shorter time period is permitted under law.
   (h) "Commencement date" means the first  day  the  retirement  benefit
 mandated by this act shall be made available, which shall mean a date or
 dates  on  or after the effective date of this act to be determined by a
 participating employer;  provided,  however,  that  for  an  educational
 employer, the commencement date shall be June 30, 2021.
   § 4. Notwithstanding any other provision of law, any eligible employee
 serving in an eligible title who (a) has been continuously in the active
 service  of  a  participating employer from February 1, 2021 to the date
 immediately prior to the commencement date of the applicable open  peri-
 od,  (b)  files  an application for service retirement that is effective
 during the open period, and (c) is  otherwise  eligible  for  a  service
 retirement  as  of  the effective date of the application for retirement
 shall be entitled to the retirement benefit provided in section five  of
 this act.
   §  5. Notwithstanding any other provision of law, an eligible employee
 who is: (a) a member of a retirement  system,  and  (b)  entitled  to  a
 retirement  benefit  pursuant  to  section  four  of this act may retire
 during the open period without the reduction of his  or  her  retirement
 benefit  that  would  otherwise  be  imposed  by article 11 or 15 of the
 retirement and social security law if he or she has attained the age  of
 55 and has completed at least 25 or more years of creditable service. An
 eligible employee who is covered by the provisions of articles 11 and 15

 A. 5088                             3
 
 of  the  retirement  and  social  security  law  shall  retire under the
 provisions of articles 11 and 15 of the retirement and  social  security
 law.
   §  6.  Notwithstanding any other provision of law, this act shall have
 no impact on retirement incentives, options or  inducements  offered  as
 part  of a contractual agreement between an eligible employee and eligi-
 ble employer which were negotiated prior to the effective date  of  this
 act.
   § 7. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 8. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would eliminate the early retirement reductions for Tier  2,
 3, 4, 5 and 6 members of the New York State and Local Employees' Retire-
 ment  System (ERS) and the New York State Teachers Retirement System who
 have attained age 55 and have accrued 25 years  of  creditable  service,
 who are employed by educational institutions and who retire within their
 employer's  90  day  open  election  period, which may not extend beyond
 December 31, 2021.
   If this bill is enacted, insofar as it affects the New York State  and
 Local  Employees'  Retirement System (ERS), the additional cost for each
 member who receives these benefits will vary depending on  the  member's
 age,  years of service, plans and final average salary. We estimate that
 the per-member cost could average approximately 120% of a member's final
 average salary.
   The exact number of members who would be affected by  this  cannot  be
 readily determined.
   These  costs  would  be  borne  entirely  by  the State of New York. A
 precise cost cannot be determined until  each  member  is  approved  for
 retirement under the incentive. After the election deadline, a cost will
 be  calculated  (and billed to the State) based on those benefiting from
 this provision.
   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.

 A. 5088                             4
 
   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 8, 2021, and intended for use only during
 the 2021 Legislative Session, is Fiscal Note No. 2021-8, prepared by the
 Actuary for the New York State and Local Retirement System.
 
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide a temporary retirement incentive during fiscal
 year  2021-2022.  This  incentive  would  permit  eligible members of an
 educational employer to retire without  an  early  retirement  reduction
 upon  attainment  of at least age 55 with 25 years of service. Currently
 30 years of service are required in order to retire  without  reduction.
 In order to receive this benefit, a member must retire during the desig-
 nated  open  period, beginning on June 30, 2021 and not extending beyond
 September 11, 2021. The cost of this incentive will be socialized across
 all employers.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers'  Retirement  System  for this benefit is estimated to be $46.7
 million or .27% of payroll if this bill is enacted.
   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
 Comprehensive  Annual  Financial  Report  (CAFR).  System  assets are as
 reported in the System's financial statements, and can also be found  in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report except rates of retirement have been modified
 to reflect participation in the incentive.
   The  source  of this estimate is Fiscal Note 2021-10 dated February 3,
 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.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5088--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 10, 2021
                                ___________
 
 Introduced  by M. of A. ABINANTI, EPSTEIN, DICKENS, THIELE, ENGLEBRIGHT,
   SEAWRIGHT,  McDONOUGH,  PAULIN,  FAHY,  DeSTEFANO  --  read  once  and
   referred  to  the  Committee  on  Governmental  Employees -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN ACT to provide temporary  retirement  incentive  for  certain  public
   employees
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law  components  of  legislation  that
 would  establish  an  age  55/25  temporary incentive for certain public
 employees.
   § 2. Legislative findings. The legislature finds and declares that the
 retirement benefit for certain public employees who are above age 55 and
 with 25 years of service provided for in this act is intended only to be
 temporary in nature for employees who are eligible to receive and quali-
 fy for the applicable benefit during the applicable time periods  speci-
 fied  in  this  act.  Further, nothing in this act shall be construed to
 create an expectation of a future or continuing retirement  benefit  for
 any  public  employee who is not eligible to receive and qualify for the
 retirement benefits herein during the applicable time periods.
   § 3. Definitions. As used in this  act,  unless  the  context  clearly
 requires otherwise:
   (a)  "Retirement system" means the New York state and local employees'
 retirement system and the New York state teachers' retirement system.
   (b) "Teachers' retirement system" means the New York  state  teachers'
 retirement system.
   (c) "Participating employer" means an educational employer, the state-
 operated  institutions of the state university of New York, and a commu-
 nity college operating under a program of the state  university  of  New
 York,  and  which participates in a retirement system as defined in this
 section.
   (d) "Educational employer" means a participating employer which  is  a
 school  district,  a  board of cooperative educational services, a voca-
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03609-04-1

 A. 5088--A                          2
 
 tional education and extension board, an institution for the instruction
 of the deaf and of the blind as enumerated in section 4201 of the educa-
 tion law, or a school district as enumerated in section 1 of chapter 566
 of  the  laws of 1967, as amended; who employ members who participate in
 the New York state teachers' retirement system and the  New  York  state
 and local employees' retirement system.
   (e) "Eligible employee" means a person who is a member of the New York
 State  teachers'  retirement  system  or  the  New  York State and local
 employees retirement system and who is an employee of an educational  or
 participating  employer  as  defined  in  subdivision (c) or (d) of this
 section.
   (f) "Active service" means service while being paid  on  the  payroll,
 provided  that  (i)  a  leave of absence with pay shall be deemed active
 service; (ii) other approved leave without  pay  not  to  exceed  twelve
 weeks  from February 1, 2021 and the commencement of the designated open
 period; and (iii) the period of time subsequent to the June 2021  school
 term  and  on  or  before  August  31,  2021 for an eligible employee as
 defined in this act who is otherwise in active service on the  effective
 date of this act shall be deemed active service.
   (g)  "Open  period"  means  the period beginning with the commencement
 date as defined in subdivision (h) of this section;  provided,  however,
 for  the state-operated institutions of the state university of New York
 and community colleges, the open period shall be  as  specified  by  the
 appropriate board of trustees, and shall be no less than thirty days but
 no  longer than ninety days in length; provided however that there shall
 be only one such open period and any such period shall not extend beyond
 September 11, 2021 for educational employers and shall not extend beyond
 December 31, 2021 for  the  state-operated  institutions  of  the  state
 university  of  New  York  and  community  colleges. For the purposes of
 retirement pursuant to this act, a service retirement  application  must
 be  filed  with the appropriate retirement system not less than fourteen
 days prior to the effective date of the  retirement,  unless  a  shorter
 time period is permitted under law.
   (h)  "Commencement  date"  means  the first day the retirement benefit
 mandated by this act shall be made available, which shall mean a date or
 dates on or after the effective date of this act to be determined  by  a
 participating  employer;  provided,  however,  that  for  an educational
 employer, the commencement date shall be June 30, 2021.
   § 4. Notwithstanding any other provision of law, any eligible employee
 serving in an eligible title whose participating employer has elected to
 participate pursuant to section five of this act and who  (a)  has  been
 continuously  in  the  active  service  of a participating employer from
 February 1, 2021 to the date immediately prior to the commencement  date
 of  the  applicable  open  period,  (b) files an application for service
 retirement that is effective during the open period, and (c)  is  other-
 wise  eligible  for a service retirement as of the effective date of the
 application for retirement shall be entitled to the  retirement  benefit
 provided in section six of this act.
   §  5.  On or before June 30, 2021, a participating employer as defined
 in section three of this act, may elect to  provide  its  employees  the
 retirement  incentive  authorized  by this act by (a) the enactment of a
 local law or (b) in the case of a participating or educational  employer
 which is not empowered to act by local law, by resolution of its govern-
 ing  body, provided however, no state or local law or resolution enacted
 pursuant to this section shall in any manner supersede any  local  char-
 ter,  provided  further,  that for an educational employer such election

 A. 5088--A                          3
 
 must be made by June 30, 2021. For a community college  operating  under
 the  program of the state university of New York, such election shall be
 made by the board of trustees of such community college subject  to  the
 approval of its sponsor. A copy of such local law or resolution shall be
 filed with the appropriate retirement system or systems, and if applica-
 ble, on forms provided by such system. The local law or resolution shall
 be  accompanied  by  the affidavit of the chief executive officer or the
 comparable executive branch of the state shall be deemed  to  have  made
 election under this section upon its enactment.
   §  6. Notwithstanding any other provision of law, an eligible employee
 who is: (a) a member of a retirement  system,  and  (b)  entitled  to  a
 retirement  benefit  pursuant  to  section  four  of this act may retire
 during the open period without the reduction of his  or  her  retirement
 benefit  that  would  otherwise  be  imposed  by article 11 or 15 of the
 retirement and social security law if he or she has attained the age  of
 55 and has completed at least 25 or more years of creditable service. An
 eligible employee who is covered by the provisions of articles 11 and 15
 of  the  retirement  and  social  security  law  shall  retire under the
 provisions of articles 11 and 15 of the retirement and  social  security
 law.
   §  7.  Notwithstanding any other provision of law, this act shall have
 no impact on retirement incentives, options or  inducements  offered  as
 part  of a contractual agreement between an eligible employee and eligi-
 ble employer which were negotiated prior to the effective date  of  this
 act.
   §  8.  The  pension  benefit costs of section six of this act shall be
 paid by the participating employers as provided by  applicable  law  for
 each  retirement  system covered by this act over a period not to exceed
 five years commencing in state fiscal year ending March 31, 2023.
   § 9. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   § 10. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would eliminate the early retirement reductions for Tier 2,
 3, 4, 5 and 6 members of the New York State and Local Employees' Retire-
 ment System (ERS) and the New York State Teachers Retirement System  who
 have  attained  age  55 and have accrued 25 years of creditable service,
 who are employed by educational institutions and who retire within their
 employer's 90 day open election period,  which  may  not  extend  beyond
 December 31, 2021.
   If  this bill is enacted, insofar as it affects the New York State and
 Local Employees' Retirement System (ERS), the additional cost  for  each
 member  who  receives these benefits will vary depending on the member's
 age, years of service, plans and final average salary. We estimate  that
 the per-member cost could average approximately 120% of a member's final
 average salary.
   The  exact  number  of members who would be affected by this cannot be
 readily determined.

 A. 5088--A                          4
 
   These costs would be borne entirely  by  the  State  of  New  York.  A
 precise  cost  cannot  be  determined  until each member is approved for
 retirement under the incentive. After the election deadline, a cost will
 be calculated (and billed to the State) based on those  benefiting  from
 this provision.
   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 8, 2021, and intended for use only during
 the 2021 Legislative Session, is Fiscal Note No. 2021-8, prepared by the
 Actuary for the New York State and Local Retirement System.
 
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide a temporary retirement incentive during fiscal
 year 2021-2022. This incentive  would  permit  eligible  members  of  an
 educational  employer  to  retire  without an early retirement reduction
 upon attainment of at least age 55 with 25 years of  service.  Currently
 30  years  of service are required in order to retire without reduction.
 In order to receive this benefit, a member must retire during the desig-
 nated open period, beginning on June 30, 2021 and not  extending  beyond
 September 11, 2021. The cost of this incentive will be socialized across
 all employers.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System for this benefit is estimated  to  be  $46.7
 million or .27% of payroll if this bill is enacted.
   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
 Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
 reported  in the System's financial statements, and can also be found in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report except rates of retirement have been modified
 to reflect participation in the incentive.
   The source of this estimate is Fiscal Note 2021-10 dated  February  3,
 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.