S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3314
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2025
                                ___________
 
 Introduced by Sens. GALLIVAN, BORRELLO, GRIFFO, HELMING, RHOADS, WEIK --
   read  twice  and  ordered printed, and when printed to be committed to
   the Committee on Civil Service and Pensions
 
 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01063-02-5
 S. 3314                             2
              

 
   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
 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 2025 Legislative Session, we antic-
 ipate  that  there  will be an increase of approximately $5.0 million in
 the annual contributions of the affected counties for  the  fiscal  year
 ending  March  31,  2026.  In  future  years  this cost will vary but is
 expected to average 1.2% of salary annually.
   In addition to the annual contributions discussed above, there will be
 an immediate past service cost  (PSC)  of  approximately  $44.8  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, 2026.

   Detailed costs with a breakdown by affected counties are as follows:
 
 County Name         Employer       Past Service       Future Annual
                     Location Code  Cost (one-time)    Cost (ongoing)
 ALLEGANY COUNTY     10002          $ 1,023,000        $ 70,000
 CATTARAUGUS COUNTY  10004            511,000            71,000
 CAYUGA COUNTY       10005            927,000            89,000
 CHAUTAUQUA COUNTY   10006            757,000            90,000
 CHEMUNG COUNTY      10007            1,029,000          81,000
 CHENANGO COUNTY     10008            363,000            72,000
 CLINTON COUNTY      10009            626,000            70,000
 COLUMBIA COUNTY     10010            380,000            53,000
 S. 3314                             3
 
 CORTLAND COUNTY     10011            503,000            51,000
 DELAWARE COUNTY     10012            337,000            53,000
 DUTCHESS COUNTY     10013            3,095,000          318,000
 ERIE COUNTY         10014            6,857,000          692,000
 ESSEX COUNTY        10015            459,000            62,000
 FULTON COUNTY       10017            393,000            94,000
 GENESEE COUNTY      10018            377,000            67,000
 HERKIMER COUNTY     10021            335,000            47,000
 LEWIS COUNTY        10023            199,000            33,000
 LIVINGSTON COUNTY   10024            635,000            75,000
 MADISON COUNTY      10025            381,000            67,000
 MONROE COUNTY       10026            8,000              7,000
 MONTGOMERY COUNTY   10027            624,000            57,000
 NIAGARA COUNTY      10029            1,338,000          160,000
 ONEIDA COUNTY       10030            3,299,000          280,000
 ONTARIO COUNTY      10032            1,241,000          155,000
 ORANGE COUNTY       10033            4,859,000          457,000
 OSWEGO COUNTY       10035            646,000            113,000
 OTSEGO COUNTY       10036            337,000            48,000
 PUTNAM COUNTY       10037            775,000            69,000
 RENSSELAER COUNTY   10038            1,138,000          152,000
 ROCKLAND COUNTY     10039            1,318,000          213,000
 SARATOGA COUNTY     10041            901,000            120,000
 SCHENECTADY COUNTY  10042            2,175,000          193,000
 SCHOHARIE COUNTY    10043            431,000            38,000
 SCHUYLER COUNTY     10044            244,000            31,000
 SENECA COUNTY       10045            438,000            44,000
 SULLIVAN COUNTY     10048            1,013,000          121,000
 TIOGA COUNTY        10049            359,000            45,000
 TOMPKINS COUNTY     10050            275,000            49,000
 ULSTER COUNTY       10051            2,056,000          175,000
 WARREN COUNTY       10052            748,000            101,000
 WAYNE COUNTY        10054            846,000            102,000
 WYOMING COUNTY      10056            213,000            45,000
 YATES COUNTY        10057          $ 359,000          $ 44,000
 
 TOTAL               All            $44,000,000        $5,000,000
 
   Further,  we  anticipate  some  administrative  costs to implement the
 provisions of this legislation.
   These estimated costs are based on 4,728 affected members  of  NYSLERS
 employed  by  certain  counties and having a total annual salary base of
 approximately $402 million, estimated as of March 31, 2025.
   Summary of relevant resources:
   Membership data as of March 31, 2024 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2024 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2024 Report of the Actuary and the 2024 Annual  Comprehensive  Financial
 Report.  The actuarial assumptions and methods used are described in the
 2024  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, 2024 New York State and Local Retirement System Financial Statements
 and Supplementary Information.
 S. 3314                             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  23,  2025,  and intended for use only
 during the 2025 Legislative Session, is Fiscal Note No. 2025-5. As Chief
 Actuary of the New York State and  Local  Retirement  System,  I,  Aaron
 Schottin Young, hereby certify that this analysis complies with applica-
 ble  Actuarial Standards of Practice as well as the Code of Professional
 Conduct and Qualification Standards for Actuaries Issuing Statements  of
 Actuarial  Opinion of the American Academy of Actuaries, of which I am a
 member.