Bill Text: NY A10548 | 2023-2024 | General Assembly | Introduced
Bill Title: Provides 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 average salary for each year of creditable service in excess of twenty-five years; makes related provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-06-03 - referred to governmental employees [A10548 Detail]
Download: New_York-2023-A10548-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10548 IN ASSEMBLY June 3, 2024 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. J. M. Giglio) -- read once and referred to the Committee on Govern- mental Employees 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: 1 Section 1. Subdivision c of section 89-p of the retirement and social 2 security law, as added by chapter 725 of the laws of 1994, is amended to 3 read as follows: 4 c. Upon completion of twenty-five years of such service and upon 5 retirement, each such member shall receive a pension which, together 6 with an annuity which shall be the actuarial equivalent of [his] such 7 member's accumulated contributions at the time of [his] such member's 8 retirement and an additional pension which is the actuarial equivalent 9 of the reserved-for-increased-take-home-pay to which [he] such member 10 may then be entitled shall be sufficient to provide [him] such member 11 with a retirement allowance equal to one-half of [his] such member's 12 final average salary, provided however that a member with credited 13 service in excess of twenty-five years shall receive an additional 14 retirement allowance equal to one-sixtieth of such member's final aver- 15 age salary for each year of creditable service in excess of twenty-five 16 years, provided, however that the pension payable pursuant to this 17 section shall not exceed three-quarters of such member's final average 18 salary. 19 § 2. Subdivision m of section 604 of the retirement and social securi- 20 ty law, as added by chapter 725 of the laws of 1994, is amended to read 21 as follows: 22 m. The early service retirement benefit for a member who is employed 23 in a county that makes the election provided for in subdivision j of 24 section eighty-nine-p of this chapter as a sheriff, undersheriff, deputy 25 sheriff or correction officer as defined in section eighty-nine-p of 26 this chapter shall be a pension equal to one-fiftieth of final average 27 salary times years of credited service at the completion of twenty-five 28 years of service as such sheriff, undersheriff, deputy sheriff or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14582-05-4A. 10548 2 1 correction officer, [but not exceeding one-half of his or her] plus an 2 additional retirement allowance equal to one-sixtieth of such member's 3 final average salary for each year of credited service in excess of 4 twenty-five years, provided, however that the pension payable pursuant 5 to such section shall not exceed three-quarters of such member's final 6 average salary. 7 § 3. All past service costs associated with implementing the 8 provisions of this act shall be borne by the county that makes the 9 election provided for in subdivision j of section 89-p of the retirement 10 and social security law. 11 § 4. Notwithstanding any other provision of law to the contrary, none 12 of the provisions of this act shall be subject to the appropriation 13 requirement of section 25 of the retirement and social security law. 14 § 5. This act shall take effect immediately and shall apply to all 15 qualified members pursuant to sections one and two of this act who 16 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 2024 Legislative Session, we antic- ipate that there will be an increase of approximately $4.4 million in the annual contributions of the affected counties for the fiscal year ending March 31, 2025. In future years this cost will vary but is expected to average 1.1% of salary annually. In addition to the annual contributions discussed above, there will be an immediate past service cost of approximately $41.2 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, 2025. Detailed costs with a breakdown by affected counties are as follows: Name of County Employer Past Future Location Service Annual Code Cost Cost ALLEGANY COUNTY 10002 $ 919,000 $ 63,000 CATTARAUGUS COUNTY 10004 484,000 68,000 CAYUGA COUNTY 10005 765,000 70,000 CHAUTAUQUA COUNTY 10006 734,000 82,000 CHEMUNG COUNTY 10007 744,000 57,000 CHENANGO COUNTY 10008 343,000 63,000 CLINTON COUNTY 10009 578,000 67,000 COLUMBIA COUNTY 10010 327,000 45,000 CORTLAND COUNTY 10011 489,000 40,000 DELAWARE COUNTY 10012 243,000 35,000 DUTCHESS COUNTY 10013 3,003,000 324,000 ERIE COUNTY 10014 6,302,000 609,000 ESSEX COUNTY 10015 369,000 53,000 FULTON COUNTY 10017 340,000 76,000 GENESEE COUNTY 10018 288,000 47,000A. 10548 3 HERKIMER COUNTY 10021 276,000 46,000 LEWIS COUNTY 10023 149,000 26,000 LIVINGSTON COUNTY 10024 626,000 66,000 MADISON COUNTY 10025 313,000 56,000 MONROE COUNTY 10026 24,000 7,000 MONTGOMERY COUNTY 10027 796,000 74,000 NIAGARA COUNTY 10029 1,342,000 139,000 ONEIDA COUNTY 10030 2,846,000 253,000 ONTARIO COUNTY 10032 1,178,000 133,000 ORANGE COUNTY 10033 4,228,000 340,000 OSWEGO COUNTY 10035 486,000 77,000 OTSEGO COUNTY 10036 307,000 36,000 PUTNAM COUNTY 10037 703,000 66,000 RENSSELAER COUNTY 10038 1,267,000 150,000 ROCKLAND COUNTY 10039 1,460,000 199,000 SARATOGA COUNTY 10041 882,000 104,000 SCHENECTADY COUNTY 10042 1,743,000 154,000 SCHOHARIE COUNTY 10043 409,000 33,000 SCHUYLER COUNTY 10044 166,000 24,000 SENECA COUNTY 10045 438,000 51,000 SULLIVAN COUNTY 10048 798,000 95,000 TIOGA COUNTY 10049 323,000 36,000 TOMPKINS COUNTY 10050 334,000 87,000 ULSTER COUNTY 10051 1,821,000 145,000 WARREN COUNTY 10052 605,000 86,000 WAYNE COUNTY 10054 1,199,000 117,000 WYOMING COUNTY 10056 217,000 41,000 YATES COUNTY 10057 $ 332,000 $ 37,000 Further, we anticipate some administrative costs to implement the provisions of this legislation. These estimated costs are based on 4,765 affected members of the NYSLERS employed by certain counties, with annual salary of approximate- ly $389 million as of March 31, 2023. 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 March 28, 2024, and intended for use only during the 2024 Legislative Session, is Fiscal Note No. 2024-125 Revised, prepared by the Actuary for the New York State and Local Retirement System.
