Bill Text: NY S05529 | 2023-2024 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enables public employers to offer an age fifty-five with ten years of service or age fifty with twenty-five years of service temporary retirement incentives for certain public employees.
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Introduced) 2024-04-24 - PRINT NUMBER 5529A [S05529 Detail]
Download: New_York-2023-S05529-Introduced.html
Bill Title: Enables public employers to offer an age fifty-five with ten years of service or age fifty with twenty-five years of service temporary retirement incentives for certain public employees.
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Introduced) 2024-04-24 - PRINT NUMBER 5529A [S05529 Detail]
Download: New_York-2023-S05529-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5529 2023-2024 Regular Sessions IN SENATE March 7, 2023 ___________ Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT in relation to enabling public employers to offer certain tempo- rary retirement incentives for certain public employees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings. The legislature finds and declares 2 that the state is experiencing economic difficulties and in order to 3 avoid layoffs of public employees, a retirement incentive is necessary. 4 However, nothing in this act shall be construed to create an expectation 5 of a future or continuing retirement benefit for any public employee who 6 is not eligible to receive and qualify for the retirement benefits in 7 this act during the applicable time periods. 8 § 2. Definitions. For purposes of this act, the following terms shall 9 have the following meanings: 10 (a) "Retirement system" means the New York state and local employees' 11 retirement system, the New York state teachers' retirement system, the 12 New York city teachers' retirement system, the New York city board of 13 education retirement system or the New York city employees' retirement 14 system, exclusive of the retirement plans established pursuant to 15 sections 13-156 and 13-157 of the administrative code of the city of New 16 York. 17 (b) "State employer" means: 18 (1) the executive branch of the state; 19 (2) the state-operated institutions of the state university of New 20 York; 21 (3) the statutory and contract colleges operated pursuant to section 22 357 of the education law; 23 (4) the state university construction fund (hereinafter referred to in 24 this act as the "fund"); EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05022-02-3S. 5529 2 1 (5) a cooperative extension association (hereinafter referred to in 2 this act as the "association"); 3 (6) the city university of New York as defined in subdivision 2 of 4 section 6202 of the education law; 5 (7) the unified court system; 6 (8) the senate; 7 (9) the assembly; and 8 (10) joint legislative employers. 9 (c) "Participating employer" means an employer, other than a state 10 employer, which participates in a retirement system. Such term shall 11 include a community college operating under the program of state univer- 12 sity of New York. 13 (d) "Educational employer" means a participating employer which is a 14 school district, a board of cooperative educational services, a voca- 15 tional education and extension board, an institution for the instruction 16 of the deaf and of the blind pursuant to section 4201 of the education 17 law, or a school district pursuant to section 1 of chapter 566 of the 18 laws of 1967, as amended. 19 (e) (1) "Eligible employee" means a person who is a member of a 20 retirement system who is an employee in the executive branch of a state 21 employer or an employee of a state employer or a participating employer 22 who has attained fifty years of age and has at least twenty-five years 23 of creditable service or has attained fifty-five years of age and has at 24 least ten years of creditable service in a retirement system, but such 25 term shall not include the following persons: 26 (i) elected officials, judges or justices appointed to or serving in a 27 court of record and acting village justices; 28 (ii) chief administrative officers of participating employers which 29 participate in a teachers' retirement system; 30 (iii) officers described in sections 4, 41-a, 46, 61, 70, 70-a, 169 31 (including those officers whose salary is established pursuant to salary 32 plans described in subdivision 3 of section 169), 180 and subdivision 1 33 of section 41 of the executive law and any agency or department head 34 appointed by the governor, comptroller or attorney general; 35 (iv) appointed members of boards or commissions, any of whose members 36 are appointed by the governor or by another state officer or body; 37 (v) nonjudicial officers and employees of the unified court system, 38 unless the chief administrator of the courts elects as provided herein, 39 which election shall cover only nonjudicial officers and employees hold- 40 ing positions in any title in the classified service of the unified 41 court system; 42 (vi) officers or employees of the senate unless the senate adopts a 43 resolution authorizing the temporary president to file the election as 44 provided in this subdivision; 45 (vii) officers or employees of the assembly unless the assembly adopts 46 a resolution authorizing the speaker of the assembly to file the 47 election as provided in this subdivision; and 48 (viii) officers or employees of joint legislative employers unless: 49 a. with respect to officers or employees of the legislative library, 50 legislative messenger service, legislative health service, legislative 51 ethics committee, the legislative bill drafting commission, and the 52 joint line of the legislative task force on demographic research and 53 reapportionment, the senate and assembly adopt a concurrent resolution 54 authorizing the temporary president of the senate and the speaker of the 55 assembly to jointly file an election as provided in this subdivision;S. 5529 3 1 b. with respect to officers or employees of components of the senate 2 as identified pursuant to section 90 of the legislative law, the senate 3 adopts a resolution authorizing the temporary president to file an 4 election for officers or employees of those components designated in 5 such resolution; and 6 c. with respect to officers or employees of components of the assembly 7 as identified pursuant to section 90 of the legislative law, the assem- 8 bly adopts a resolution authorizing the speaker of the assembly to file 9 an election for officers or employees of those components designated in 10 such resolution. 11 (2) Any election under subparagraphs (v) through (viii) of paragraph 12 one of this subdivision to make available the retirement incentive 13 provided by this act shall be in writing and filed with the state comp- 14 troller not later than ninety days after the effective date of this act. 15 Notwithstanding any other provision of this act, each such filing shall 16 specify the commencement date of the open period. 17 (3) For the purposes of paragraph (vi), (vii) or (viii) of paragraph 18 one of this subdivision, an employee of the legislature shall be as such 19 term is defined in section 7-a, 7-b or 7-d of the legislative law or by 20 any other provision of law which classifies employees of an entity to be 21 legislative employees for all purposes, but shall not include senators 22 or members of the assembly. The term "joint legislative employer" shall 23 mean legislative commissions, committees, task forces, councils or simi- 24 lar bodies whose membership is comprised of both senators and assembly 25 members, or which consist of commissioners, or the majority of whose 26 membership is appointed by one or more of the following: the temporary 27 president of the senate, the speaker of the assembly, the minority lead- 28 er of the senate, and/or the minority leader of the assembly. The tempo- 29 rary president of the senate and the speaker of the assembly shall be 30 the joint legislative employer of the employees of the legislature 31 referred to in sections 7-a and 7-b of the legislative law. 32 (f) "College faculty" means an employee, not in the classified 33 service, of a state employer described in paragraphs 2, 3, 4, 5 and 6 of 34 subdivision (b) of this section or of a community college who is a 35 member of a teachers' retirement system, or the New York state and local 36 employees' retirement system. 37 (g) "Active service" means service while being paid on the payroll, 38 provided that: 39 (1) a leave of absence with pay shall be deemed active service; 40 (2) other approved leave without pay not to exceed twelve weeks from 41 February 1, 2023 and the commencement of the designated open period; and 42 (3) the period of time subsequent to the June 2023 school term and on 43 or before August 31, 2023 for a teacher (or other employee employed on a 44 school-year basis) who is otherwise in active service on the effective 45 date of this act shall be deemed active service. 46 (h) "Open period" means the period beginning with the commencement 47 date as defined in subdivision (i) of this section and shall be ninety 48 days in length, provided however that there shall be only one such open 49 period and any such period shall not extend beyond September 30, 2023 50 for a state employer and December 31, 2023 for a participating employer. 51 For educational employers who make election after July 15, 2023, the 52 open period shall begin immediately after such election, and shall not 53 extend beyond October 15, 2023. For the purposes of retirement pursuant 54 to this act, a service retirement application shall be filed with the 55 appropriate retirement system not less than fourteen days prior to theS. 5529 4 1 effective date of retirement to become effective, unless a shorter peri- 2 od of time is permitted under law. 3 (i) "Commencement date" means the first day the retirement benefit 4 mandated by this act shall be made available, which shall mean a date or 5 dates on or after the effective date of this act to be determined by the 6 director of state operations for the executive branch of the state, or 7 for any other state employer or any participating employer which elects 8 to participate pursuant to section four of this act, a date on or after 9 the effective date of this act, provided, however, that for an educa- 10 tional employer which elects to participate pursuant to subdivision (d) 11 of this section, the commencement date shall be July 15, 2023 or imme- 12 diately after election of the retirement incentive for educational 13 employers who elect after July 15, 2023 and provided, further that for 14 participating employers which elect to participate pursuant to section 15 four of this act, except the city of New York and participating employ- 16 ers which are not empowered to act by local law, the commencement date 17 shall be November 1, 2023. The director of state operations shall notify 18 the head of the appropriate retirement system of the date of the open 19 period applicable to employees of the executive branch or of a state 20 employer prior to the commencement date. 21 § 3. (a) A state employer which elects to participate pursuant to 22 section four of this act, a participating employer which is not 23 empowered to act by local law which elects to participate pursuant to 24 section four of this act, or the city of New York, if it elects to 25 participate pursuant to section four of this act shall establish a 26 commencement date for the retirement benefit established under section 27 six of this act in the following manner: 28 (1) for the executive branch, the director of state operations shall 29 establish the commencement date in writing to the appropriate retirement 30 system; 31 (2) for state employers described in paragraphs 2, 3, 4, 5 and 6 of 32 subdivision (b) of section two of this act and participating employers 33 that are not empowered to act by local law, its governing body shall 34 adopt a resolution establishing a commencement date; 35 (3) for state employers described in paragraphs 7, 8, 9 and 10 of 36 subdivision (b) of section two of this act, the person or persons who 37 make the election to offer the retirement incentive shall establish a 38 commencement date in writing to the appropriate retirement system; and 39 (4) for the city of New York, the chief executive officer shall issue 40 an executive order establishing the commencement date, provided, howev- 41 er, no executive order, in the case of the city of New York issued 42 pursuant to this section, shall in any manner supersede any local char- 43 ter. A copy of any such resolution or executive order in the case of 44 the city of New York establishing a commencement date shall be filed 45 with the appropriate retirement system or systems, and, if applicable, 46 on forms provided by such system. The resolution or executive order in 47 the case of the city of New York shall be accompanied by the affidavit 48 of the chief executive officer or other comparable official certifying 49 the commencement date. 50 (b) A state employer, participating employer which is not empowered to 51 act by local law which elects to participate pursuant to section four of 52 this act, or the city of New York if it elects to participate pursuant 53 to section four of this act shall be required to establish a commence- 54 ment date under subdivision (a) of this section for the retirement bene- 55 fit established under section six of this act. In the event that a state 56 employer, a participating employer which is not empowered to act byS. 5529 5 1 local law which elects to participate pursuant to section four of this 2 act, or the city of New York if it elects to participate pursuant to 3 section four of this act fails to establish a commencement date for the 4 retirement benefit established under section six of this act, the 5 commencement date for the eligible employees of a state employer shall 6 be July 15, 2023. The commencement date for the eligible employees of 7 all other employers referenced in this subdivision shall be September 1, 8 2023. 9 § 4. On or before September 1, 2023, a participating employer or a 10 state employer described in paragraphs 2, 3, 4, 5 and 6 of subdivision 11 (b) of section two of this act may elect to provide its employees the 12 retirement incentive authorized by this act by: 13 (a) the enactment of a local law; or 14 (b) in the case of a participating employer which is not so empowered 15 to act by local law or a state employer described in paragraphs 2, 3, 4, 16 5 and 6 of subdivision (b) of section two of this act, by the adoption 17 of a resolution of its governing body, provided however, no local law or 18 resolution enacted pursuant to this section shall in any manner super- 19 sede any local charter, provided further, that for an educational 20 employer such election shall be made thirty days after the effective 21 date of this act. For a community college operating under the program 22 of state university of New York, such election shall be made by the 23 board of trustees of such community college subject to the approval of 24 its sponsor. A copy of such law or resolution shall be filed with the 25 appropriate retirement system or systems, and, if applicable, on forms 26 provided by such system. The local law or resolution shall be accompa- 27 nied by the affidavit of the chief executive officer or other comparable 28 official certifying the validity of such local law or resolution. The 29 executive branch of the state shall be deemed to have made an election 30 under this section upon its enactment. 31 § 5. Notwithstanding any other provision of law, any eligible employee 32 who has been continuously in the active service of a state employer or 33 of a participating employer from February 1, 2023 to the date immediate- 34 ly prior to the commencement date of the applicable open period, files 35 an application for service retirement that is effective during the open 36 period, and is eligible for a service retirement pursuant to this act 37 because he or she has attained the age of fifty and has at least twen- 38 ty-five years of creditable service or has attained the age of fifty- 39 five and has at least ten years of creditable service, as of the effec- 40 tive date of the application for retirement shall be entitled to the 41 retirement benefit provided in section six of this act. 42 § 6. (a) Notwithstanding any other provision of law, an eligible 43 employee who is a member of a retirement system and who is entitled to a 44 retirement benefit pursuant to section five of this act may retire 45 during the open period without the reduction of his or her retirement 46 benefit that would otherwise be imposed by article 11 or 15 of the 47 retirement and social security law if he or she has attained the age of 48 fifty and has completed at least twenty-five years of creditable service 49 or has attained the age of fifty-five and has completed at least ten 50 years of creditable service. An eligible employee who is covered by the 51 provisions of articles 11 and 15 of the retirement and social security 52 law shall retire under the provisions of articles 11 and 15 of the 53 retirement and social security law. 54 (b) The director of state operations, the chief executive officer of 55 the city of New York, or chief executive officer or governing board, as 56 appropriate, of the participating employer may deny participation in theS. 5529 6 1 retirement benefit provided by subdivision (a) of this section if the 2 director of state operations, the chief executive officer of New York 3 city or the chief executive officer or governing board of the partic- 4 ipating employer makes a determination that the employee holds a posi- 5 tion that is deemed critical to the maintenance of public health and 6 safety. 7 (c) The action of the director of state operations, the chief execu- 8 tive officer of the city of New York, or chief executive officer or 9 governing board, as appropriate, of the participating employer in deny- 10 ing the retirement benefit provided for in subdivision (a) of this 11 section to any individual shall be subject to review in the manner 12 provided for in article 78 of the civil practice law and rules. Such 13 action for review pursuant to article 78 of the civil practice law and 14 rules shall only be commenced by the individual that was denied the 15 retirement benefit provided by subdivision (a) of this section. 16 (d) After making any such determination under subdivision (b) of this 17 section, the director of state operations, the chief executive officer 18 of the city of New York and the chief executive officer or governing 19 board, as appropriate, of the participating employer shall notify the 20 appropriate retirement system or teachers' retirement system of its 21 determination. 22 § 7. The pension benefit costs of section six of this act shall be 23 paid by employers as provided by applicable law for each retirement 24 system covered by this act over a period not to exceed five years 25 commencing in the state fiscal year ending March 31, 2025. 26 § 8. Severability clause. If any clause, sentence, paragraph, subdivi- 27 sion, section or part of this act shall be adjudged by any court of 28 competent jurisdiction to be invalid, such judgment shall not affect, 29 impair, or invalidate the remainder thereof, but shall be confined in 30 its operation to the clause, sentence, paragraph, subdivision, section 31 or part thereof directly involved in the controversy in which such judg- 32 ment shall have been rendered. It is hereby declared to be the intent of 33 the legislature that this act would have been enacted even if such 34 invalid provisions had not been included herein. 35 § 9. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill would allow retirement at age 50 for certain members of the New York State and Local Employees' Retirement System (NYSLERS) who have accrued at least 25 years of creditable service. It would also eliminate the early retirement reductions for members who have attained age 55 and have accrued at least 10 years of creditable service. Insofar as this bill affects the NYSLERS, if this bill is enacted during the 2023 legislative session, the additional cost for each member who receives these benefits will vary depending on the member's age, years of service, plans and final average salary. Eliminating the early age reductions for members retiring after attaining age 55 with at least 10 years of service credit is estimated to cost (on average for the group) 180% of the member's final average salary. Extending retirement eligibility to members who have attained age 50 with at least 25 years of service credit is estimated to cost (on average for the group) 180% of the member's final average salary. The final costs will be borne by each employer electing the incentive. The exact number of members who would be affected by this legislation cannot be readily determined. Summary of relevant resources:S. 5529 7 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 24, 2023, and intended for use only during the 2023 Legislative Session, is Fiscal Note No. 2023-67, prepared by the Actuary for the New York State and Local Retirement System.
