S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7540
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               June 5, 2023
                                ___________
 
 Introduced  by Sen. SCARCELLA-SPANTON -- read twice and ordered printed,
   and when printed to be committed to the Committee on Rules
 
 AN ACT to amend the retirement and social security law, in  relation  to
   obtaining  military  service  credit for members of 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. Subdivision 9 of section 1000 of the retirement and social
 security law, as amended by chapter 41 of the laws of 2016,  is  amended
 to read as follows:
   9.  (A)  Anything to the contrary in subdivision three of this section
 notwithstanding, to obtain such credit,  a  member  who  first  joins  a
 public retirement system of the state on or after April first, two thou-
 sand  twelve  shall  pay such retirement system, for deposit in the fund
 used to accumulate employer contributions, a sum equal to the product of
 the number of years of military service being claimed and six percent of
 such member's compensation earned during the twelve months  of  credited
 service  immediately preceding the date that the member made application
 for credit pursuant to this section.
   (B) BEGINNING WITH APPLICATIONS RECEIVED BY THE  NEW  YORK  STATE  AND
 LOCAL  POLICE  AND  FIRE RETIREMENT SYSTEM ON AND AFTER APRIL FIRST, TWO
 THOUSAND TWENTY-FOUR, FOR MEMBERS WHO FIRST BECOME MEMBERS  OF  THE  NEW
 YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM ON OR AFTER APRIL
 FIRST,  TWO  THOUSAND  TWELVE, THE SUM REQUIRED IN PARAGRAPH (A) OF THIS
 SUBDIVISION SHALL BE EQUAL TO THE PRODUCT OF  THE  NUMBER  OF  YEARS  OF
 MILITARY  SERVICE  BEING  CLAIMED  AND  THREE  PERCENT  OF SUCH MEMBER'S
 COMPENSATION EARNED DURING THE TWELVE MONTHS OF CREDITED  SERVICE  IMME-
 DIATELY  PRECEDING THE DATE THE MEMBER MADE APPLICATION PURSUANT TO THIS
 SECTION.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10817-03-3
              

 S. 7540                             2
 
   This bill would decrease the amount of  payment  required  by  Tier  6
 members  of  the  New  York  State  and Local Police and Fire Retirement
 System (NYSLPFRS) who are obtaining military service credit pursuant  to
 Section  1000  of  the Retirement and Social Security Law. Under current
 law,  a  Tier 6 member must pay a sum equal to the product of the number
 of years of military service being  claimed  and  six  percent  of  such
 member's  compensation  earned  during  the  twelve  months  of credited
 service immediately preceding the date that the member made  application
 for  credit.  Beginning  with applications received on or after April 1,
 2024, this legislation would require such  members  to  pay  only  three
 percent of compensation per year of service being claimed.
   If  this  bill  is  enacted during the 2023 legislative session, it is
 estimated that the cost for the reduction of the member's  payment  will
 be  3%  of an affected members' compensation for each year of additional
 service that is purchased. This cost would be shared by the State of New
 York and the local participating employers in 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, 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 May 10, 2023, and intended for  use  only  during
 the  2023  Legislative Session, is Fiscal Note No. 2023-141, prepared by
 the Actuary for the New York State and Local Retirement System.