S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5231
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2023
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   the  calculation  of  past  service credit for members in the title of
   deputy sheriff transferring between  the  New  York  state  and  local
   employees'  retirement  system  to the New York state and local police
   and fire retirement system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  43  of the retirement and social security law is
 amended by adding a new subdivision m to read as follows:
   M. 1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
 RY, ANY MEMBER IN THE TITLE OF DEPUTY SHERIFF TRANSFERRING FROM THE  NEW
 YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM TO THE NEW YORK STATE
 AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM AFTER THE EFFECTIVE DATE  OF
 THIS  SUBDIVISION AND ANY MEMBER PREVIOUSLY IN THE TITLE OF DEPUTY SHER-
 IFF HAVING MADE SUCH TRANSFER SHALL BE ENTITLED TO  A  DETERMINATION  OF
 THE  AMOUNT OF SERVICE CREDIT THAT IS ELIGIBLE ON A TWENTY YEAR OR TWEN-
 TY-FIVE YEAR RETIREMENT PLAN IF, WITHIN ONE YEAR OF THE DATE ON WHICH HE
 OR SHE FIRST BECAME A MEMBER OF THE NEW YORK STATE AND LOCAL POLICE  AND
 FIRE  RETIREMENT SYSTEM OR WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS
 SUBDIVISION, SUCH MEMBER ELECTS TO DO SO.  IF  THE  MEMBER  SUBSEQUENTLY
 TRANSFERS  BACK  TO  THE  NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM, THE FULL AMOUNT OF SERVICE CREDIT EARNED WHILE IN THE  TITLE  OF
 DEPUTY SHERIFF SHALL BE TRANSFERRED BACK TO THE NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM.
   2.  THE  CALCULATION OF THE AMOUNT OF SUCH SERVICE CREDIT FOR A MEMBER
 WILL BE DETERMINED BY MULTIPLYING THE ELIGIBLE SERVICE CREDITED  IN  THE
 NEW  YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN BY A SALARY
 MULTIPLIER, REFLECTING THE RATE OF SALARY IN  THE  NEW  YORK  STATE  AND
 LOCAL  EMPLOYEES'  RETIREMENT SYSTEM PLAN RELATIVE TO THE RATE OF SALARY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07037-02-3
              

 A. 5231                             2
 
 IN THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM  PLAN,
 AND  A BILLING RATE MULTIPLIER, REFLECTING THE ACTUARIAL LONG-TERM AVER-
 AGE BILLING RATE IN THE NEW YORK STATE AND LOCAL  EMPLOYEES'  RETIREMENT
 SYSTEM  PLAN RELATIVE TO THE ACTUARIAL LONG-TERM AVERAGE BILLING RATE IN
 THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN. THE
 DETERMINATION OF THE SALARY MULTIPLIER AND BILLING RATE MULTIPLIER  WILL
 BE  DETERMINED BY THE ACTUARY OF THE NEW YORK STATE AND LOCAL EMPLOYEES'
 RETIREMENT SYSTEM AND THE NEW YORK  STATE  AND  LOCAL  POLICE  AND  FIRE
 RETIREMENT  SYSTEM. THE AMOUNT OF SUCH SERVICE CREDITED TO THE MEMBER IN
 THE NEW YORK STATE AND LOCAL POLICE  AND  FIRE  RETIREMENT  SYSTEM  PLAN
 SHALL NOT EXCEED THE AMOUNT OF SERVICE CREDITED TO THE MEMBER IN THE NEW
 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN.
   §  2. Section 343 of the retirement and social security law is amended
 by adding a new subdivision i to read as follows:
   I. 1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
 RY, ANY MEMBER IN THE TITLE OF DEPUTY SHERIFF TRANSFERRING FROM THE  NEW
 YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM TO THE NEW YORK STATE
 AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM AFTER THE EFFECTIVE DATE  OF
 THIS  SUBDIVISION AND ANY MEMBER PREVIOUSLY IN THE TITLE OF DEPUTY SHER-
 IFF HAVING MADE SUCH TRANSFER SHALL BE ENTITLED TO  A  DETERMINATION  OF
 THE  AMOUNT OF SERVICE CREDIT THAT IS ELIGIBLE ON A TWENTY YEAR OR TWEN-
 TY-FIVE YEAR RETIREMENT PLAN IF, WITHIN ONE YEAR OF THE DATE ON WHICH HE
 OR SHE FIRST BECAME A MEMBER OF THE NEW YORK STATE AND LOCAL POLICE  AND
 FIRE  RETIREMENT SYSTEM OR WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS
 SUBDIVISION, SUCH MEMBER ELECTS TO DO SO.  IF  THE  MEMBER  SUBSEQUENTLY
 TRANSFERS  BACK  TO  THE  NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM, THE FULL AMOUNT OF SERVICE CREDIT EARNED WHILE IN THE  TITLE  OF
 DEPUTY  SHERIFF  SHALL  BE  TRANSFERRED BACK TO NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM.
   2. THE CALCULATION OF THE AMOUNT OF SUCH SERVICE CREDIT FOR  A  MEMBER
 WILL  BE  DETERMINED BY MULTIPLYING THE ELIGIBLE SERVICE CREDITED IN THE
 NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN BY  A  SALARY
 MULTIPLIER,  REFLECTING  THE  RATE  OF  SALARY IN THE NEW YORK STATE AND
 LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN RELATIVE TO THE RATE  OF  SALARY
 IN  THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN,
 AND A BILLING RATE MULTIPLIER, REFLECTING THE ACTUARIAL LONG-TERM  AVER-
 AGE  BILLING  RATE IN THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM PLAN RELATIVE TO THE ACTUARIAL LONG-TERM AVERAGE BILLING RATE  IN
 THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN. THE
 DETERMINATION  OF THE SALARY MULTIPLIER AND BILLING RATE MULTIPLIER WILL
 BE DETERMINED BY THE ACTUARY OF THE NEW YORK STATE AND LOCAL  EMPLOYEES'
 RETIREMENT  SYSTEM  AND  THE  NEW  YORK  STATE AND LOCAL POLICE AND FIRE
 RETIREMENT SYSTEM. THE AMOUNT OF SUCH SERVICE CREDITED TO THE MEMBER  IN
 THE  NEW  YORK  STATE  AND  LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN
 SHALL NOT EXCEED THE AMOUNT OF SERVICE CREDITED TO THE MEMBER IN THE NEW
 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN.
   3. IF THE MEMBER SUBSEQUENTLY RETIRES ON AN AGE BASED RETIREMENT  PLAN
 IN  THE  NEW  YORK  STATE  AND  LOCAL  POLICE AND FIRE RETIREMENT SYSTEM
 INSTEAD OF A TWENTY YEAR OR TWENTY-FIVE YEAR PLAN, THE  FULL  AMOUNT  OF
 SERVICE  CREDIT  EARNED  WHILE  IN  THE TITLE OF DEPUTY SHERIFF SHALL BE
 GRANTED.
   4. NO MEMBER WHO RECEIVES SERVICE CREDIT PURSUANT TO THIS  SUBDIVISION
 SHALL  BE  ELIGIBLE  TO  RECEIVE  ADDITIONAL  SERVICE CREDIT PURSUANT TO
 SUBDIVISION B OF SECTION THREE HUNDRED EIGHTY FOUR-E OF THIS ARTICLE  IF
 HIS OR HER EMPLOYER HAS ELECTED TO PROVIDE SUCH SERVICE CREDIT.
 A. 5231                             3
 
   §  3. This act shall take effect on the sixtieth day after an internal
 revenue service ruling stating that the transfer and crediting of deputy
 sheriff service credit from the New  York  state  and  local  employees'
 retirement  system  into  the  New  York state and local police and fire
 retirement  system  special retirement plan by this act is allowable and
 does not jeopardize such retirement system's tax-qualified  status,  and
 shall  remain  in full force and effect only as long as such transfer is
 authorized pursuant to the provisions  of  the  internal  revenue  code;
 provided,  that  the state comptroller shall notify the legislative bill
 drafting commission upon the occurrence of  such  ruling  and  upon  any
 change  in  the  provisions  of  the internal revenue code affecting the
 provisions of this act in order that  the  commission  may  maintain  an
 accurate and timely effective data base of the official text of the laws
 of  the  state of New York in furtherance of effecting the provisions of
 section 44 of the legislative law and section 70-b of the  public  offi-
 cers law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  expand  the  definition of creditable service under
 20-year and 25-year plans (special plans) in  the  New  York  State  and
 Local Police and Fire Retirement System (PFRS) to include service credit
 earned  in  the  New  York  State and Local Employees' Retirement System
 (ERS) for those individuals previously employed in the title  of  Deputy
 Sheriff.  To be eligible for the service credit, an individual must be a
 member of the PFRS and elect to transfer the ERS service credit  to  the
 PFRS  plan  within  12  months  of  first joining the PFRS, or within 12
 months of the effective date of the bill, whichever is later. The amount
 of service credit granted in the PFRS special plan will be calculated by
 the Actuary of the New York State and Local Retirement System  (NYLSRS),
 not to exceed the service credited under the ERS plan.
   Insofar  as this bill affects the PFRS, if this legislation is enacted
 during the 2023 legislative  session  it  is  estimated  that  the  past
 service  cost  will  average  approximately  21  percent  of an affected
 member's compensation for each year of additional service that is grant-
 ed.
   Internal Revenue Service (IRS)  plan  qualification  issues:  granting
 service  credit  towards  retirement  in  a 20-year plan in the PFRS for
 employment that was not  rendered  in  the  PFRS  could  jeopardize  the
 Retirement  System's governmental plan status and its exemption from the
 Employees Retirement Income Security Act (ERISA). This development could
 result in the loss of qualified status, which would mean the loss of tax
 benefits. This result would substantially impair the Retirement System's
 value to our more than one million participants.
   This legislation will not become effective until the NYLSRS obtains  a
 favorable  ruling  from  the IRS stating that these provisions would not
 harm the qualification status of the  Retirement  System.  Further,  the
 provisions  of  this  legislation  will  only continue in full force and
 effect while so authorized by the IRS. It is estimated that the costs to
 obtain an initial ruling would be $38,000 for the services of  the  IRS,
 and $1,000 per hour for legal consultants.
   In addition to the costs to obtain a ruling from the IRS stated above,
 if  this bill is enacted, there will be an administrative cost to imple-
 ment the provisions of this legislation.
   All costs will be shared by the  State  of  New  York  and  all  local
 participating employers in the PFRS.
   Summary of relevant resources:
 A. 5231                             4
 
   Membership  data as of March 31, 2022 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2022  Report  of the Actuary and the 2022 Annual Comprehensive Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2020,
 2021, and 2022 Annual Report to the  Comptroller  on  Actuarial  Assump-
 tions,  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, 2022
 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  February  27,  2023, and intended for use only
 during the  2023  Legislative  Session,  is  Fiscal  Note  No.  2023-74,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5231--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2023
                                ___________
 
 Introduced  by  M.  of  A.  PHEFFER AMATO,  LUNSFORD, WOERNER, McDONALD,
   DURSO, BRABENEC, SLATER, SANTABARBARA -- read once and referred to the
   Committee on Governmental Employees -- recommitted to the Committee on
   Governmental Employees in accordance with Assembly Rule 3, sec.  2  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the retirement and social security law, in  relation  to
   the  calculation  of  past  service credit for members in the title of
   deputy sheriff transferring between  the  New  York  state  and  local
   employees'  retirement  system  to the New York state and local police
   and fire retirement system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  43  of the retirement and social security law is
 amended by adding a new subdivision m to read as follows:
   M. 1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
 RY, ANY MEMBER IN THE TITLE OF DEPUTY SHERIFF TRANSFERRING FROM THE  NEW
 YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM TO THE NEW YORK STATE
 AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM AFTER THE EFFECTIVE DATE  OF
 THIS  SUBDIVISION AND ANY MEMBER PREVIOUSLY IN THE TITLE OF DEPUTY SHER-
 IFF HAVING MADE SUCH TRANSFER SHALL BE ENTITLED TO  A  DETERMINATION  OF
 THE  AMOUNT OF SERVICE CREDIT THAT IS ELIGIBLE ON A TWENTY YEAR OR TWEN-
 TY-FIVE YEAR RETIREMENT PLAN IF, WITHIN ONE YEAR OF THE DATE ON WHICH HE
 OR SHE FIRST BECAME A MEMBER OF THE NEW YORK STATE AND LOCAL POLICE  AND
 FIRE  RETIREMENT SYSTEM OR WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS
 SUBDIVISION, SUCH MEMBER ELECTS TO DO SO.  IF  THE  MEMBER  SUBSEQUENTLY
 TRANSFERS  BACK  TO  THE  NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM, THE FULL AMOUNT OF SERVICE CREDIT EARNED WHILE IN THE  TITLE  OF
 DEPUTY SHERIFF SHALL BE TRANSFERRED BACK TO THE NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07037-03-4
 A. 5231--A                          2
              

 
   2.  THE  CALCULATION OF THE AMOUNT OF SUCH SERVICE CREDIT FOR A MEMBER
 WILL BE DETERMINED BY MULTIPLYING THE ELIGIBLE SERVICE CREDITED  IN  THE
 NEW  YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN BY A SALARY
 MULTIPLIER, REFLECTING THE RATE OF SALARY IN  THE  NEW  YORK  STATE  AND
 LOCAL  EMPLOYEES'  RETIREMENT SYSTEM PLAN RELATIVE TO THE RATE OF SALARY
 IN THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM  PLAN,
 AND  A BILLING RATE MULTIPLIER, REFLECTING THE ACTUARIAL LONG-TERM AVER-
 AGE BILLING RATE IN THE NEW YORK STATE AND LOCAL  EMPLOYEES'  RETIREMENT
 SYSTEM  PLAN RELATIVE TO THE ACTUARIAL LONG-TERM AVERAGE BILLING RATE IN
 THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN. THE
 DETERMINATION OF THE SALARY MULTIPLIER AND BILLING RATE MULTIPLIER  WILL
 BE  DETERMINED BY THE ACTUARY OF THE NEW YORK STATE AND LOCAL EMPLOYEES'
 RETIREMENT SYSTEM AND THE NEW YORK  STATE  AND  LOCAL  POLICE  AND  FIRE
 RETIREMENT  SYSTEM. THE AMOUNT OF SUCH SERVICE CREDITED TO THE MEMBER IN
 THE NEW YORK STATE AND LOCAL POLICE  AND  FIRE  RETIREMENT  SYSTEM  PLAN
 SHALL NOT EXCEED THE AMOUNT OF SERVICE CREDITED TO THE MEMBER IN THE NEW
 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN.
   §  2. Section 343 of the retirement and social security law is amended
 by adding a new subdivision i to read as follows:
   I. 1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
 RY, ANY MEMBER IN THE TITLE OF DEPUTY SHERIFF TRANSFERRING FROM THE  NEW
 YORK  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM TO THE NEW YORK STATE
 AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM AFTER THE EFFECTIVE DATE  OF
 THIS  SUBDIVISION AND ANY MEMBER PREVIOUSLY IN THE TITLE OF DEPUTY SHER-
 IFF HAVING MADE SUCH TRANSFER SHALL BE ENTITLED TO  A  DETERMINATION  OF
 THE  AMOUNT OF SERVICE CREDIT THAT IS ELIGIBLE ON A TWENTY YEAR OR TWEN-
 TY-FIVE YEAR RETIREMENT PLAN IF, WITHIN ONE YEAR OF THE DATE ON WHICH HE
 OR SHE FIRST BECAME A MEMBER OF THE NEW YORK STATE AND LOCAL POLICE  AND
 FIRE  RETIREMENT SYSTEM OR WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS
 SUBDIVISION, SUCH MEMBER ELECTS TO DO SO.  IF  THE  MEMBER  SUBSEQUENTLY
 TRANSFERS  BACK  TO  THE  NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM, THE FULL AMOUNT OF SERVICE CREDIT EARNED WHILE IN THE  TITLE  OF
 DEPUTY  SHERIFF  SHALL  BE  TRANSFERRED BACK TO NEW YORK STATE AND LOCAL
 EMPLOYEES' RETIREMENT SYSTEM.
   2. THE CALCULATION OF THE AMOUNT OF SUCH SERVICE CREDIT FOR  A  MEMBER
 WILL  BE  DETERMINED BY MULTIPLYING THE ELIGIBLE SERVICE CREDITED IN THE
 NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN BY  A  SALARY
 MULTIPLIER,  REFLECTING  THE  RATE  OF  SALARY IN THE NEW YORK STATE AND
 LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN RELATIVE TO THE RATE  OF  SALARY
 IN  THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN,
 AND A BILLING RATE MULTIPLIER, REFLECTING THE ACTUARIAL LONG-TERM  AVER-
 AGE  BILLING  RATE IN THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
 SYSTEM PLAN RELATIVE TO THE ACTUARIAL LONG-TERM AVERAGE BILLING RATE  IN
 THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN. THE
 DETERMINATION  OF THE SALARY MULTIPLIER AND BILLING RATE MULTIPLIER WILL
 BE DETERMINED BY THE ACTUARY OF THE NEW YORK STATE AND LOCAL  EMPLOYEES'
 RETIREMENT  SYSTEM  AND  THE  NEW  YORK  STATE AND LOCAL POLICE AND FIRE
 RETIREMENT SYSTEM. THE AMOUNT OF SUCH SERVICE CREDITED TO THE MEMBER  IN
 THE  NEW  YORK  STATE  AND  LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN
 SHALL NOT EXCEED THE AMOUNT OF SERVICE CREDITED TO THE MEMBER IN THE NEW
 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM PLAN.
   3. IF THE MEMBER SUBSEQUENTLY RETIRES ON AN AGE BASED RETIREMENT  PLAN
 IN  THE  NEW  YORK  STATE  AND  LOCAL  POLICE AND FIRE RETIREMENT SYSTEM
 INSTEAD OF A TWENTY YEAR OR TWENTY-FIVE YEAR PLAN, THE  FULL  AMOUNT  OF
 SERVICE  CREDIT  EARNED  WHILE  IN  THE TITLE OF DEPUTY SHERIFF SHALL BE
 GRANTED.
 A. 5231--A                          3

   4. NO MEMBER WHO RECEIVES SERVICE CREDIT PURSUANT TO THIS  SUBDIVISION
 SHALL  BE  ELIGIBLE  TO  RECEIVE  ADDITIONAL  SERVICE CREDIT PURSUANT TO
 SUBDIVISION B OF SECTION THREE HUNDRED EIGHTY FOUR-E OF THIS ARTICLE  IF
 HIS OR HER EMPLOYER HAS ELECTED TO PROVIDE SUCH SERVICE CREDIT.
   §  3. This act shall take effect on the sixtieth day after an internal
 revenue service ruling stating that the transfer and crediting of deputy
 sheriff service credit from the New  York  state  and  local  employees'
 retirement  system  into  the  New  York state and local police and fire
 retirement system special retirement plan by this act is  allowable  and
 does  not  jeopardize such retirement system's tax-qualified status, and
 shall remain in full force and effect only as long as such  transfer  is
 authorized  pursuant  to  the  provisions  of the internal revenue code;
 provided, that the state comptroller shall notify the  legislative  bill
 drafting  commission  upon  the  occurrence  of such ruling and upon any
 change in the provisions of the  internal  revenue  code  affecting  the
 provisions  of  this  act  in  order that the commission may maintain an
 accurate and timely effective data base of the official text of the laws
 of the state of New York in furtherance of effecting the  provisions  of
 section  44  of the legislative law and section 70-b of the public offi-
 cers law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would expand the  definition  of  creditable  service  under
 twenty-year and twenty-five-year retirement plans (special plans) in the
 New York State and Local Police and Fire Retirement System (NYSLPFRS) to
 include service credit earned in the New York State and Local Employees'
 Retirement System (NYSLERS) for those individuals previously employed in
 the  title  of  Deputy  Sheriff.  To be eligible an individual must be a
 member of the NYSLPFRS and elect to transfer the NYSLERS service  credit
 to  the  NYSLPFRS special plan within twelve months of first joining the
 NYSLPFRS, or within twelve months of the effective date  of  this  bill,
 whichever is later. The amount of service credit granted in the NYSLPFRS
 special plan will be calculated by the Actuary of the New York State and
 Local  Retirement  System and will not exceed the service credited under
 the NYSLERS plan.
   Insofar as this bill affects the NYSLPFRS, if enacted during the  2024
 Legislative  Session,  it  is  estimated that the past service cost will
 average approximately 21 percent of an  affected  member's  compensation
 for each year of additional service credit that is granted.
   Internal  Revenue  Service  (IRS)  plan qualification issues: granting
 service credit towards retirement in a twenty-year plan in the  NYSLPFRS
 for  employment  that  was not rendered in the NYSLPFRS could jeopardize
 the governmental plan status of the Retirement System ("the System") and
 its exemption from the Employees Retirement Income Security Act (ERISA).
 This development could result in the loss  of  qualified  status,  which
 would  mean  the  loss  of tax benefits. This result would substantially
 impair the System's value to our more than one million participants.
   This legislation will not become effective until the System obtains  a
 favorable  ruling  from  the IRS stating that these provisions would not
 harm the qualification status of the System. Further, the provisions  of
 this  legislation  will  only  continue  in  full force and effect while
 authorized by the IRS. It is estimated that the costs to obtain  such  a
 ruling would be $38,000 for the services of the IRS, and $1,000 per hour
 for legal consultants.
   In addition to the costs to obtain a ruling from the IRS stated above,
 if  this bill is enacted, there will be an administrative cost to imple-
 ment the provisions of this legislation.
 A. 5231--A                          4
 
   All costs will be shared by the  State  of  New  York  and  the  local
 participating employers in the NYSLPFRS.
   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 February 15, 2024,  and  intended  for  use  only
 during  the  2024  Legislative  Session,  is  Fiscal  Note  No. 2024-32,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.