Bill Text: NY A08565 | 2011-2012 | General Assembly | Introduced
Bill Title: Provides credit to members of public retirement systems of the state for military service in certain hostilities in Afghanistan.
Spectrum: Partisan Bill (Democrat 29-0)
Status: (Introduced - Dead) 2012-05-15 - held for consideration in governmental employees [A08565 Detail]
Download: New_York-2011-A08565-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
8565
2011-2012 Regular Sessions
I N A S S E M B L Y
August 31, 2011
___________
Introduced by M. of A. MAGNARELLI, GUNTHER, GABRYSZAK, JAFFEE, NOLAN,
ZEBROWSKI, COLTON, PERRY, WEISENBERG, BENEDETTO, SCHROEDER, ORTIZ,
PAULIN, CAHILL, WRIGHT, MILLMAN, MAISEL -- Multi-Sponsored by -- M. of
A. BOYLAND, BROOK-KRASNY, CLARK, GOTTFRIED, HOOPER, JEFFRIES, MAGEE,
McENENY, REILLY, SCHIMMINGER, SWEENEY, TITONE -- read once and
referred to the Committee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
providing credit to members of public retirement systems of the state
for certain military service
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Paragraph (d) of subdivision 2 of section 1000 of the
2 retirement and social security law, as added by chapter 548 of the laws
3 of 2000, is amended to read as follows:
4 (d) hostilities participated in by the military forces of the United
5 States, from the second day of August, nineteen hundred ninety, to the
6 end of such hostilities in case of a veteran who served in the theater
7 of operations including Iraq, Kuwait, Saudi Arabia, AFGHANISTAN,
8 Bahrain, Qatar, the United Arab Emirates, Oman, the Gulf of Aden, the
9 Gulf of Oman, the Persian Gulf, the Red Sea, and the airspace above
10 these locations.
11 S 2. This act shall take effect immediately and shall be deemed to
12 have been in full force and effect on and after December 21, 1998.
FISCAL NOTE. --Pursuant to Legislative Law, Section 50:
This bill would extend the benefits of Chapter 548, Laws of 2000 to
members of public retirement systems in New York State who rendered
military service during the period of conflict in Afghanistan and were
assigned to the theater of operations. However, the total service credit
granted for any military service shall not exceed three (3) years.
Members must have at least five years of credited service (not including
military service). Retirees must have retired on or after December 21,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04138-02-1
A. 8565 2
1998. Members and retirees 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.
If this bill is enacted, insofar as this proposal affects the New York
State and Local Employees' Retirement System (ERS), it is estimated that
the past service cost will average approximately 12% of an affected
members' compensation for each year of additional service credit that is
purchased. For members who retired on or after December 21, 1998 there
would be additional costs for payments which will be paid retroactive to
their date of retirement.
Insofar as this proposal affects the New York State and Local Police
and Fire Retirement System (PFRS), it is estimated that the past service
cost will average approximately 17% of an affected members' compensation
for each year of additional service that is purchased. For members who
retired on or after December 21, 1998 there would be additional costs
for payments which will be paid retroactive to their date of retirement.
If less than 300 of the active membership and post 12/21/1998 retirees
have such military service and will benefit by purchasing the service
credit, there will be estimated increases in annual contributions of
less than $440,000 to employers in the ERS and less than $160,000 to
employers in the PFRS.
In addition to the above costs, there would be additional costs for
future members of the Retirement Systems who have such military service.
This estimate, dated December 28, 2010 and intended for use only
during the 2011 Legislative Session, is Fiscal Note No. 2011-49,
prepared by the Actuary for the New York State and Local Employees'
Retirement System and the New York State and Local Police and Fire
Retirement System.
FISCAL NOTE. --Pursuant to Legislative Law, Section 50:
This bill would amend subdivision 2 of section 1000 of the Retirement
and Social Security Law to add Afghanistan to the list of theaters of
operations in which a member of a public retirement system of New York
State may claim retirement credit. A member may claim retirement credit
for up to three years of military service performed during hostilities
participated in by the military forces of the United States, from the
second day of August, nineteen hundred ninety, to the end of such
hostilities. A member must have at least five years of credited service
to be eligible and make application for such credit before the effective
date of retirement. To obtain such credit, the member shall deposit in
the pension accumulation fund a sum equal to the product of the period
of military service being claimed and three percent of his or her
current annual full-time rate of compensation. This act shall take
effect immediately and shall be deemed to have been in full force and
effect on and after December 21, 1998.
It is not possible to determine the total annual cost to the employers
of members of the New York State Teachers' Retirement System since the
total amount of service credit which would be claimed under this bill
cannot be estimated. However, the cost to the employers of members of
the New York State Teachers' Retirement System is estimated to be
$17,300 per year of service credited for Tier 1 and 2 members, $17,000
per year of service credited for Tier 3 and 4 members, and $16,100 per
year of service credited for Tier 5 members if this bill is enacted.
The source of this estimate is Fiscal Note 2011-52 dated June 6, 2011
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2011 Legislative Session.
