S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6273--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 11, 2023
                                ___________
 
 Introduced  by Sens. MANNION, MARTINEZ, BORRELLO, HELMING, MATTERA, MAY,
   MURRAY, OBERACKER, PALUMBO, RHOADS, ROLISON, SKOUFIS,  STEC,  TEDISCO,
   THOMAS, WEBB, WEBER -- read twice and ordered printed, and when print-
   ed  to  be committed to the Committee on Civil Service and Pensions --
   recommitted to the Committee on Civil Service and Pensions in  accord-
   ance with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
   ordered  reprinted  as  amended  and  recommitted to said committee --
   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
   establishing a retirement service credit for volunteer fire  or  emer-
   gency service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The retirement and social security law is amended by adding
 a new article 20-A to read as follows:
 
                               ARTICLE 20-A
       CREDIT FOR NEW YORK STATE VOLUNTEER FIRE OR EMERGENCY SERVICE
 
 SECTION 1050. NEW YORK STATE VOLUNTEER FIRE OR EMERGENCY SERVICE CREDIT.
   § 1050. NEW YORK STATE VOLUNTEER FIRE OR EMERGENCY SERVICE CREDIT.  1.
 FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   (A)  "PUBLIC RETIREMENT SYSTEM OF THE STATE" SHALL HAVE THE SAME MEAN-
 ING AS SUCH TERM IS DEFINED  PURSUANT  TO  SUBDIVISION  TWENTY-THREE  OF
 SECTION FIVE HUNDRED ONE OF THIS CHAPTER.
   (B)  "MEMBER" SHALL MEAN A MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE
 STATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08016-13-4
 S. 6273--B                          2

              

   2. NOTWITHSTANDING ANY LAW TO THE CONTRARY, A MEMBER SHALL BE ELIGIBLE
 FOR CREDIT FOR VOLUNTEER FIRE OR EMERGENCY SERVICE AS PROVIDED  PURSUANT
 TO THIS SECTION.
   3.  A  MEMBER,  UPON  APPLICATION TO A PUBLIC RETIREMENT SYSTEM OF THE
 STATE, MAY OBTAIN ONE YEAR OF SERVICE CREDIT FOR  EVERY  FIVE  YEARS  OF
 VOLUNTEER  FIRE  OR  EMERGENCY  SERVICE  PROVIDED IN THE STATE. A MEMBER
 SHALL BE LIMITED UNDER THIS SECTION TO OBTAIN NOT MORE THAN THREE  YEARS
 OF  SERVICE  CREDIT  FOR  A  TOTAL OF FIFTEEN YEARS OF VOLUNTEER FIRE OR
 EMERGENCY SERVICE PROVIDED.    PROOF  OF  VOLUNTEER  FIRE  OR  EMERGENCY
 SERVICE SHALL BE CERTIFIED BY THE VOLUNTEER AGENCY FOR WHICH SUCH MEMBER
 VOLUNTEERED TIME.
   4.  A  MEMBER  SHALL HAVE AT LEAST FIVE YEARS OF CREDITED SERVICE, NOT
 INCLUDING SERVICE GRANTED HEREUNDER, TO BE ELIGIBLE  TO  RECEIVE  CREDIT
 PURSUANT TO THIS SECTION.
   5.  TO  OBTAIN CREDIT PURSUANT TO THIS SECTION, A MEMBER SHALL PAY THE
 APPROPRIATE RETIREMENT SYSTEM, FOR DEPOSIT IN THE FUND USED  TO  ACCUMU-
 LATE EMPLOYER CONTRIBUTIONS, A SUM EQUAL TO THE PRODUCT OF THE NUMBER OF
 YEARS  OF  VOLUNTEER  FIRE OR EMERGENCY SERVICE BEING CREDITED AND THREE
 PERCENT OF SUCH MEMBER'S COMPENSATION EARNED DURING THE TWELVE MONTHS OF
 CREDITED SERVICE IMMEDIATELY PRECEDING THE DATE THAT  SUCH  MEMBER  MADE
 APPLICATION FOR CREDIT PURSUANT TO THIS SECTION. IF PERMITTED BY RULE OR
 REGULATION  OF  THE  APPLICABLE RETIREMENT SYSTEM, A MEMBER MAY PAY SUCH
 MEMBER COSTS BY PAYROLL DEDUCTION FOR A PERIOD WHICH  SHALL  NOT  EXCEED
 THE  TIME  PERIOD  OF VOLUNTEER FIRE OR EMERGENCY SERVICE TO BE CREDITED
 PURSUANT TO THIS SECTION. IN THE EVENT SUCH MEMBER LEAVES  THE  EMPLOYER
 PAYROLL  PRIOR  TO  COMPLETION OF PAYMENT, SUCH MEMBER 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 PROPOR-
 TIONAL TO THE TOTAL AMOUNT OF THE PAYMENTS MADE PRIOR TO RETIREMENT.
   6. IN NO EVENT SHALL THE CREDIT GRANTED PURSUANT TO THIS SECTION, WHEN
 ADDED TO CREDIT GRANTED FOR VOLUNTEER FIRE OR EMERGENCY SERVICE WITH ANY
 RETIREMENT SYSTEM OF THIS STATE PURSUANT TO ANY OTHER PROVISION OF  LAW,
 EXCEED A TOTAL OF THREE YEARS.
   7.  TO  BE  ELIGIBLE TO RECEIVE CREDIT FOR VOLUNTEER FIRE OR EMERGENCY
 SERVICE UNDER THIS SECTION, A MEMBER SHALL  MAKE  APPLICATION  FOR  SUCH
 CREDIT BEFORE THE EFFECTIVE DATE OF RETIREMENT.
   8.  ALL  COSTS  FOR  SERVICE  CREDITED  TO  A  MEMBER PURSUANT TO THIS
 SECTION, OTHER THAN THE MEMBER COSTS SET FORTH IN  SUBDIVISION  FIVE  OF
 THIS SECTION, SHALL BE PAID BY THE STATE AND ALL EMPLOYERS WHICH PARTIC-
 IPATE IN THE RETIREMENT SYSTEM IN WHICH SUCH MEMBER IS GRANTED CREDIT.
   9.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, NONE OF THE
 PROVISIONS OF  THIS  SECTION  SHALL  BE  SUBJECT  TO  THE  APPROPRIATION
 REQUIREMENT OF SECTION TWENTY-FIVE OF THIS CHAPTER.
   10.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IN THE EVENT OF DEATH
 PRIOR TO RETIREMENT, AMOUNTS PAID BY A MEMBER FOR THE PURCHASE OF VOLUN-
 TEER FIRE OR EMERGENCY SERVICE CREDIT PURSUANT TO THIS SECTION SHALL  BE
 REFUNDED,  WITH  INTEREST, TO THE EXTENT THE VOLUNTEER FIRE OR EMERGENCY
 SERVICE PURCHASED WITH SUCH AMOUNTS DOES NOT  PRODUCE  A  GREATER  DEATH
 BENEFIT  THAN WOULD HAVE BEEN PAYABLE HAD SUCH MEMBER NOT PURCHASED SUCH
 CREDIT.
   11. SERVICE CREDIT GRANTED PURSUANT TO THIS SECTION SHALL BE  CREDITA-
 BLE IN ANY SPECIAL TWENTY OR TWENTY-FIVE YEAR RETIREMENT PLAN.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 S. 6273--B                          3
 
   This  bill would allow members of any New York State retirement system
 to purchase service credit for time rendered in volunteer fire or  emer-
 gency  service. A member may obtain one year of service credit for every
 five years of time rendered as a volunteer fire or  emergency  services,
 not  to exceed three years of total credit. To be eligible, members must
 have at least five years of credited service  (not  including  volunteer
 service).  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. Service credit would only be creditable on 20-year
 and  25-year service-based retirement plans. Members may not be credited
 more than one year for all service obtained in a calendar year.
   This bill would not be consistent with the Retirement System's  policy
 that  service  credit may only be granted for service for which a salary
 has been paid.
   The provisions of Section 25 of the Retirement and Social Security Law
 shall not apply.
   Insofar as this proposal affects the New York State and Local  Employ-
 ees' Retirement System (NYSLERS), all costs would be shared by the State
 of  New  York  and  the local participating employers in the NYSLERS. If
 enacted during the 2024 Legislative Session, it is  estimated  that  the
 past  service  cost will be 22% of an affected member's compensation for
 each year of service credit that is purchased.
   Insofar as this proposal affects the New York State and  Local  Police
 and  Fire Retirement System (NYSLPFRS), all costs would be shared by the
 State of New York and the local participating employers in the NYSLPFRS.
 If enacted during the 2024 Legislative Session, it is estimated that the
 past service cost will be 22% of an affected member's  compensation  for
 each year of service credit that is purchased.
   Further,  we  anticipate  additional administrative costs to implement
 the provisions of this legislation.
   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, 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 April 10, 2024, and intended for use only  during
 the  2024  Legislative Session, is Fiscal Note No. 2024-161, prepared by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would allow eligible  active  NYCRS
 members  to  purchase one year of service credit for every five years of
 S. 6273--B                          4
 
 volunteer fire or emergency service provided in the state, for up  to  a
 total of three years of NYCRS service credit.
 
       ILLUSTRATION - INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                 by Fiscal Year for the first 25 years ($)
 
             Year    One Year of Service   One Year of Service
                          Purchased         Purchased Per Year
             2025                  1,700                 1,700
             2026                  1,700                 3,500
             2027                  1,700                 5,400
             2028                  1,700                 7,300
             2029                  1,700                 9,200
             2030                  1,700                11,200
             2031                  1,700                13,300
             2032                  1,700                15,500
             2033                  1,700                17,700
             2034                  1,700                19,900
             2035                  1,700                22,300
             2036                  1,700                24,700
             2037                  1,700                27,200
             2038                  1,700                29,700
             2039                      0                30,600
             2040                      0                31,500
             2041                      0                32,500
             2042                      0                33,400
             2043                      0                34,400
             2044                      0                35,500
             2045                      0                36,500
             2046                      0                37,600
             2047                      0                38,800
             2048                      0                39,900
             2049                      0                41,100
    Employer contribution impact beyond Fiscal Year 2049 is not shown.
 
   The potential increases in employer contributions will be allocated to
 New York City and other applicable obligors of NYCRS.

           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                   as of June 30, 2023 ($ in Thousands)
 
             Present Value (PV)        Per Year of Service
                                           Purchased
             PV of Benefits:                          17.0
             PV of Employee Contributions:            (2.4)
             PV of Employer Contributions:            14.7
             Unfunded Accrued Liabilities:            14.7
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
           Recognized as Ongoing Gain/Loss    Per Year of Service
                                              Purchased
           Number of Payments:                             14
           Amortization Payment:                           1.7 K
 S. 6273--B                          5

   CENSUS  DATA:  The  number of members who will be eligible to purchase
 service based on  certified  volunteer  fire  or  emergency  service  is
 unknown.  The estimates presented herein are based on preliminary census
 data collected as of June 30, 2023. The census data for the  potentially
 impacted  population  used  to  develop the average costs in this Fiscal
 Note is summarized below.
 
                                         NYCRS
             Active Members
             - Number Count:             272,111
             - Average Age:              48.6
             - Average Service:          15.4
             - Average Salary:           104,900
 
   IMPACT ON MEMBER BENEFITS AND CONTRIBUTIONS: Eligible members who wish
 to purchase NYCRS service pursuant to this bill, must  contribute  three
 percent of such member's compensation earned during the twelve months of
 credited service immediately preceding the date that such member applied
 for NYCRS service credit for each year of credited service.
   Members  will  receive  one  year  of  NYCRS service per five years of
 volunteer fire or emergency service certified, up to a maximum of  three
 years of NYCRS service credit. A member must have at least five years of
 credited  service  in  NYCRS,  not including volunteer fire or emergency
 service credit requested, to be eligible to purchase volunteer service.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems.
   The estimated per incident costs are based on the purchase of one year
 of NYCRS service (i.e., five years of  volunteer  service)  for  members
 with five or more years of service.
   The  number of members who will benefit in the future from this fiscal
 note is unknown. The cost of this proposed legislation could vary great-
 ly depending on the number of future members who benefit and,  on  their
 plan, length of service, age, and salary history.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the actuarial assumptions, methods,  and  models  used,  demo-
 graphics  of  the impacted population, and other factors such as invest-
 ment, contribution, and other risks. If actual experience deviates  from
 actuarial   assumptions,  the  actual  costs  could  differ  from  those
 presented herein. Quantifying these risks is beyond the  scope  of  this
 Fiscal Note.
   This  Fiscal  Note  is intended to measure pension-related impacts and
 does not include other potential costs (e.g., administrative  and  Other
 Postemployment Benefits).
   STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
 sky  are members of the Society of Actuaries and the American Academy of
 Actuaries. We are members of NYCERS but do not believe  it  impairs  our
 objectivity  and  we  meet  the  Qualification Standards of the American
 Academy of Actuaries to render the actuarial opinion  contained  herein.
 To  the  best  of  our knowledge, the results contained herein have been
 prepared in accordance with generally accepted actuarial principles  and
 procedures  and  with  the Actuarial Standards of Practice issued by the
 Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-38 dated  March  28,
 2024  was prepared by the Chief Actuary for the New York City Retirement
 S. 6273--B                          6

 Systems and Pension Funds. This estimate is intended for use only during
 the 2024 Legislative Session.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would create Article 20-A of the Retirement and Social Secu-
 rity  Law that would allow members to purchase service credit for volun-
 teer fire or emergency services provided in  the  state.  A  member  may
 purchase  one  year  of service credit for every five years of volunteer
 fire or emergency  service,  not  to  exceed  a  total  of  three  years
 purchased.  To  obtain  such  credit,  members are required to pay three
 percent of salary earned during the twelve months  of  credited  service
 immediately preceding the date of application for each year of volunteer
 service  credited.  A  member  must  have at least five years of service
 credit, not including service credit granted  under  this  bill,  to  be
 eligible.
   It  is  not  possible  to determine the number of eligible current and
 future members, or the volunteer service credit each member may purchase
 under this bill. Therefore, it is not possible to  estimate  the  annual
 increase  in  the  employers'  cost  for this bill. Whatever increase in
 liability arises for service credited under this bill  above  that  paid
 for  by the member would be included in the cost that would be shared by
 employers through the employer contribution rate.
   It is estimated that the cost, expressed as a percentage of a member's
 salary for each year of service credit a  member  purchases  under  this
 bill is as follows:
 
                     Cost per year of Service Purchased
                 (as a percentage of the member's salary)
 
      Tier(s)                       1-4       5         6

      Cost                          12.5%     11.3%     9.5%
      Member Contribution
      offset                        3.0%      3.0%      3.0%
      Net cost to
      participating employers       9.5%      8.3%      6.5%
 
   Member data is from the System's most recent actuarial valuation files
 as of June 30, 2023, consisting of data provided by the employers to the
 Retirement System. The most recent data distributions and statistics can
 be  found  in  the System's Annual Report for fiscal year ended June 30,
 2023. System assets are as reported in the System's financial statements
 and can also be found in the System's Annual Report.  Actuarial  assump-
 tions  and  methods  are  provided  in  the System's Actuarial Valuation
 Report as of June 30, 2023.
   The source of this estimate is Fiscal Note  2024-32  dated  April  18,
 2024  prepared by the Office of the Actuary of the New York State Teach-
 ers' Retirement System and is intended for  use  only  during  the  2024
 Legislative  Session.  I, Richard A. Young, am the Chief Actuary for the
 New York State Teachers' Retirement System. I am a member of the  Ameri-
 can  Academy  of Actuaries and I meet the Qualification Standards of the
 American Academy of Actuaries to render the actuarial opinion  contained
 herein.