S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10548
 
                           I N  A S S E M B L Y
 
                               June 3, 2024
                                ___________
 
 Introduced   by   COMMITTEE  ON  RULES  --  (at  request  of  M.  of  A.
   J. M. Giglio) -- read once and referred to the  Committee  on  Govern-
   mental Employees
 
 AN  ACT  to amend the retirement and social security law, in relation to
   certain benefits  of  sheriffs,  undersheriffs,  deputy  sheriffs  and
   correction  officers  with  credited  service of more than twenty-five
   years

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision c of section 89-p of the retirement and social
 security law, as added by chapter 725 of the laws of 1994, is amended to
 read as follows:
   c. Upon completion of twenty-five  years  of  such  service  and  upon
 retirement,  each  such  member  shall receive a pension which, together
 with an annuity which shall be the actuarial equivalent  of  [his]  SUCH
 MEMBER'S  accumulated  contributions  at the time of [his] SUCH MEMBER'S
 retirement and an additional pension which is the  actuarial  equivalent
 of  the  reserved-for-increased-take-home-pay  to which [he] SUCH MEMBER
 may then be entitled shall be sufficient to provide  [him]  SUCH  MEMBER
 with  a  retirement  allowance  equal to one-half of [his] SUCH MEMBER'S
 final average salary, PROVIDED  HOWEVER  THAT  A  MEMBER  WITH  CREDITED
 SERVICE  IN  EXCESS  OF  TWENTY-FIVE  YEARS  SHALL RECEIVE AN ADDITIONAL
 RETIREMENT ALLOWANCE EQUAL TO ONE-SIXTIETH OF SUCH MEMBER'S FINAL  AVER-
 AGE  SALARY FOR EACH YEAR OF CREDITABLE SERVICE IN EXCESS OF TWENTY-FIVE
 YEARS, PROVIDED, HOWEVER THAT  THE  PENSION  PAYABLE  PURSUANT  TO  THIS
 SECTION  SHALL  NOT EXCEED THREE-QUARTERS OF SUCH MEMBER'S FINAL AVERAGE
 SALARY.
   § 2. Subdivision m of section 604 of the retirement and social securi-
 ty law, as added by chapter 725 of the laws of 1994, is amended to  read
 as follows:
   m.  The  early service retirement benefit for a member who is employed
 in a county that makes the election provided for  in  subdivision  j  of
 section eighty-nine-p of this chapter as a sheriff, undersheriff, deputy
 sheriff  or  correction  officer  as defined in section eighty-nine-p of
 this chapter shall be a pension equal to one-fiftieth of  final  average
 salary  times years of credited service at the completion of twenty-five
 years of service  as  such  sheriff,  undersheriff,  deputy  sheriff  or
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14582-05-4
 A. 10548                            2

 correction  officer,  [but not exceeding one-half of his or her] PLUS AN
 ADDITIONAL RETIREMENT ALLOWANCE EQUAL TO ONE-SIXTIETH OF  SUCH  MEMBER'S
 final  average  salary  FOR  EACH  YEAR OF CREDITED SERVICE IN EXCESS OF
 TWENTY-FIVE  YEARS,  PROVIDED, HOWEVER THAT THE PENSION PAYABLE PURSUANT
 TO SUCH SECTION SHALL NOT EXCEED THREE-QUARTERS OF SUCH  MEMBER'S  FINAL
 AVERAGE SALARY.
   §   3.  All  past  service  costs  associated  with  implementing  the
 provisions of this act shall be borne  by  the  county  that  makes  the
 election provided for in subdivision j of section 89-p of the retirement
 and social security law.
   §  4. Notwithstanding any other provision of law to the contrary, none
 of the provisions of this act shall  be  subject  to  the  appropriation
 requirement of section 25 of the retirement and social security law.
   §  5.  This  act  shall take effect immediately and shall apply to all
 qualified members pursuant to sections one  and  two  of  this  act  who
 retire on or after such date.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would modify the service retirement benefit for members of
 the New York State and  Local  Employees'  Retirement  System  (NYSLERS)
 covered  by the provisions of Retirement and Social Security Law section
 89-p. The modified service retirement benefit will be one-half of  final
 average  salary (FAS) upon completion of twenty-five years of creditable
 service with additional sixtieths for each year of creditable service in
 excess of twenty-five years but not more than fifteen  such  years.  The
 current service retirement benefit is one-half of FAS upon completion of
 twenty-five years of creditable service.
   If this bill is enacted during the 2024 Legislative Session, we antic-
 ipate  that  there  will be an increase of approximately $4.4 million in
 the annual contributions of the affected counties for  the  fiscal  year
 ending  March  31,  2025.  In  future  years  this cost will vary but is
 expected to average 1.1% of salary annually.
   In addition to the annual contributions discussed above, there will be
 an immediate past service cost of approximately $41.2 million which will
 be shared by the affected counties and  will  be  borne  as  a  one-time
 payment.  This estimate assumes that payment will be made on February 1,
 2025.
   Detailed costs with a breakdown by affected counties are as follows:
 
 Name of County           Employer         Past              Future
                          Location         Service           Annual
                          Code             Cost              Cost
 ALLEGANY COUNTY          10002            $ 919,000         $ 63,000
 CATTARAUGUS COUNTY       10004            484,000           68,000
 CAYUGA COUNTY            10005            765,000           70,000
 CHAUTAUQUA COUNTY        10006            734,000           82,000
 CHEMUNG COUNTY           10007            744,000           57,000
 CHENANGO COUNTY          10008            343,000           63,000
 CLINTON COUNTY           10009            578,000           67,000
 COLUMBIA COUNTY          10010            327,000           45,000
 CORTLAND COUNTY          10011            489,000           40,000
 DELAWARE COUNTY          10012            243,000           35,000
 DUTCHESS COUNTY          10013            3,003,000         324,000
 ERIE COUNTY              10014            6,302,000         609,000
 ESSEX COUNTY             10015            369,000           53,000
 FULTON COUNTY            10017            340,000           76,000
 GENESEE COUNTY           10018            288,000           47,000
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 HERKIMER COUNTY          10021            276,000           46,000
 LEWIS COUNTY             10023            149,000           26,000
 LIVINGSTON COUNTY        10024            626,000           66,000
 MADISON COUNTY           10025            313,000           56,000
 MONROE COUNTY            10026            24,000            7,000
 MONTGOMERY COUNTY        10027            796,000           74,000
 NIAGARA COUNTY           10029            1,342,000         139,000
 ONEIDA COUNTY            10030            2,846,000         253,000
 ONTARIO COUNTY           10032            1,178,000         133,000
 ORANGE COUNTY            10033            4,228,000         340,000
 OSWEGO COUNTY            10035            486,000           77,000
 OTSEGO COUNTY            10036            307,000           36,000
 PUTNAM COUNTY            10037            703,000           66,000
 RENSSELAER COUNTY        10038            1,267,000         150,000
 ROCKLAND COUNTY          10039            1,460,000         199,000
 SARATOGA COUNTY          10041            882,000           104,000
 SCHENECTADY COUNTY       10042            1,743,000         154,000
 SCHOHARIE COUNTY         10043            409,000           33,000
 SCHUYLER COUNTY          10044            166,000           24,000
 SENECA COUNTY            10045            438,000           51,000
 SULLIVAN COUNTY          10048            798,000           95,000
 TIOGA COUNTY             10049            323,000           36,000
 TOMPKINS COUNTY          10050            334,000           87,000
 ULSTER COUNTY            10051            1,821,000         145,000
 WARREN COUNTY            10052            605,000           86,000
 WAYNE COUNTY             10054            1,199,000         117,000
 WYOMING COUNTY           10056            217,000           41,000
 YATES COUNTY             10057            $ 332,000         $ 37,000
   Further,  we  anticipate  some  administrative  costs to implement the
 provisions of this legislation.
   These estimated costs are based  on  4,765  affected  members  of  the
 NYSLERS employed by certain counties, with annual salary of approximate-
 ly $389 million as of March 31, 2023.
   Summary of relevant resources:
   Membership  data as of March 31, 2023 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2023 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2023  Report  of the Actuary and the 2023 Annual Comprehensive Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2023
 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, 2023
 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 March 28, 2024, and intended for use only  during
 the  2024  Legislative  Session,  is  Fiscal  Note No. 2024-125 Revised,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.