Bill Text: NY A10715 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Provides for the equalization of retirement benefits for police officers across New York state.

Spectrum: Partisan Bill (Democrat 20-0)

Status: (Introduced - Dead) 2018-06-04 - print number 10715a [A10715 Detail]

Download: New_York-2017-A10715-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          10715
                   IN ASSEMBLY
                                      May 15, 2018
                                       ___________
        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on Governmental Employees
        AN  ACT  to amend the retirement and social security law, in relation to
          the equalization of retirement benefits for police officers across New
          York state
          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 500 of the retirement and social
     2  security law, as amended by section 9-a of part A of chapter 504 of  the
     3  laws of 2009, is amended to read as follows:
     4    c.  If the comptroller certifies that the contribution rate under this
     5  article for any participating  employer  who  is  participating  on  the
     6  effective date hereof would be at least one percent higher than the rate
     7  which  would  be  applicable  to  such  employer  for an employee who is
     8  subject to article eleven of this chapter and who  was  hired  prior  to
     9  July first, nineteen hundred seventy-six, the provisions of this article
    10  shall  not  apply with respect to such participating employer, provided,
    11  however that members who first join the New York state and local  police
    12  and  fire  retirement system on or after January first, two thousand ten
    13  and police/fire members, as that term is defined in section five hundred
    14  one of this article, who have made an election  to  be  subject  to  the
    15  provisions of article twenty-two of this chapter pursuant to subdivision
    16  b  or  c  of  section  twelve hundred five of this chapter, shall not be
    17  subject to the provisions of this article. In such event, the provisions
    18  of article eleven and article twenty-two of this chapter shall  continue
    19  to  be  applicable  to such participating employer and its employees, as
    20  provided in section four hundred fifty-one of this  chapter.  If,  as  a
    21  result of actuarial experience, such employer's contribution rate should
    22  increase  to  the  extent that it is not at least one percent lower than
    23  the contribution rate under this article, then,  upon  certification  of
    24  such  fact  by the comptroller, the provisions of this subdivision shall
    25  no longer apply with respect to the employees of such employer who ther-
    26  eafter first join or rejoin a public retirement system.
    27    § 2. Section 1200 of the retirement and social security law, as  added
    28  by section 1 of part A of chapter 504 of the laws of 2009, is amended to
    29  read as follows:
    30    § 1200. Definitions. For purposes of this article the terms:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15632-03-8
        A. 10715                            2
     1    a. "Member" shall mean a person who is employed as a police officer or
     2  firefighter  by  any  employer other than the city of New York who first
     3  joins [the] a retirement system on or after January first, two  thousand
     4  ten  or  a  police/fire  member, as that term is defined in section five
     5  hundred  one  of  this  chapter,  who  has made an election, pursuant to
     6  subdivision b or c of section twelve hundred five of this article, to be
     7  subject to the provisions of this article.
     8    b. "Retirement system" shall mean the New York state and local  police
     9  and  fire  retirement  system, the New York city police pension fund, or
    10  the New York city fire department pension fund.
    11    § 3. Section 1201 of the retirement and social security law, as  added
    12  by section 1 of part A of chapter 504 of the laws of 2009, is amended to
    13  read as follows:
    14    §  1201.  Applicability.  Notwithstanding  any provision of law to the
    15  contrary, the provisions of this article  shall  be  applicable  to  all
    16  [employees  in  the retirement system who first joined such system on or
    17  after January first, two thousand ten] members of a retirement system as
    18  those terms are defined in section twelve hundred of this article.
    19    § 4.   Section 1202 of the  retirement  and  social  security  law  is
    20  amended by adding a new subdivision d to read as follows:
    21    d.  Notwithstanding  anything  to  the  contrary in any other law, the
    22  amount of the vested retirement benefit for any member who has  made  an
    23  election  to  be  subject  to the provisions of this article pursuant to
    24  subdivision b or c of section twelve hundred five of this article, shall
    25  be equal to one-sixtieth of the member's final  average  salary  on  the
    26  date  of  his  or  her discontinuance of service, multiplied by a number
    27  equal to the number of years of service credited to the  member  on  the
    28  date of such discontinuance.
    29    §  5.    Section  1204  of  the retirement and social security law, as
    30  amended by chapter 18 of the  laws  of  2012,  is  amended  to  read  as
    31  follows:
    32    §   1204.  Member  contributions.  Members  who  are  subject  to  the
    33  provisions of this article shall  contribute  three  percent  of  annual
    34  wages  to  the  retirement  system in which they have membership, except
    35  that beginning April first, two thousand thirteen for members who  first
    36  become  members  of the New York state and local police and fire retire-
    37  ment system on or after April first, two thousand  twelve;  for  members
    38  who  have made an election to be subject to the provisions of this arti-
    39  cle pursuant to subdivision b of section twelve  hundred  five  of  this
    40  article,  beginning  on  the  date  that such election is filed with the
    41  administrative head of the retirement system; and for members  who  have
    42  made  an election to be subject to the provisions of this article pursu-
    43  ant to subdivision c of section twelve hundred  five  of  this  article,
    44  beginning  on  the date that the member joins the retirement system, the
    45  rate at which each such member shall contribute in any current plan year
    46  (April first to March thirty-first) shall be determined by reference  to
    47  the  wages  of such member in the second plan year (April first to March
    48  thirty-first) preceding such current plan year as follows:
    49    a. members with wages of forty-five thousand dollars per annum or less
    50  shall contribute three per centum of annual wages;
    51    b. members with wages greater than forty-five thousand per annum,  but
    52  not  more  than fifty-five thousand per annum shall contribute three and
    53  one-half per centum of annual wages;
    54    c. members with wages greater than fifty-five thousand per annum,  but
    55  not  more than seventy-five thousand per annum shall contribute four and
    56  one-half per centum of annual wages;
        A. 10715                            3
     1    d. members with wages greater than seventy-five thousand per annum but
     2  not more than one hundred thousand per annum shall contribute  five  and
     3  three-quarters per centum of annual wages; and
     4    e.  members  with  wages  greater  than one hundred thousand per annum
     5  shall contribute six per centum of annual wages.
     6    Notwithstanding the foregoing, during each of  the  first  three  plan
     7  years  (April  first  to  March  thirty-first)  in which such member has
     8  established membership in [the New York state and local police and fire]
     9  a retirement system, such member shall contribute a percentage of annual
    10  wages in accordance with the preceding schedule based upon a  projection
    11  of  annual  wages  provided  by the employer. Effective April first, two
    12  thousand twelve, all members subject to the provisions of  this  article
    13  shall  not  be  required  to  make  member contributions on annual wages
    14  excluded from the  calculation  of  final  average  salary  pursuant  to
    15  section  [1203]  twelve  hundred  three of this article. Nothing in this
    16  section, however, shall be construed  or  deemed  to  allow  members  to
    17  receive a refund of any member contributions on such wages paid prior to
    18  April first, two thousand twelve.
    19    Members  who  are enrolled in a retirement plan that limits the amount
    20  of creditable service a member can accrue shall not be required to  make
    21  contributions pursuant to this section after accruing the maximum amount
    22  of  service  credit  allowed  by  the  retirement plan in which they are
    23  enrolled. The state comptroller, or for the New York city police pension
    24  fund and the New York city fire department pension fund,  the  board  of
    25  trustees,  shall  promulgate  such  regulations  as may be necessary and
    26  appropriate with respect to the  deduction  of  such  contribution  from
    27  members' wages and for the maintenance of any special fund or funds with
    28  respect  to  amounts so contributed. In no way shall the member contrib-
    29  utions made pursuant to this section be  used  to  provide  for  pension
    30  increases or annuities of any kind.
    31    §  6. Section 1205 of the retirement and social security law, as added
    32  by section 1 of part A of chapter 504 of the laws of 2009, is amended to
    33  read as follows:
    34    § 1205. Recalculation of  benefits.    a.  Notwithstanding  any  other
    35  provision of law, any member who has joined the New York state and local
    36  police  and fire retirement system pursuant to the provisions of article
    37  fourteen of this chapter on or after July first, two thousand  nine  may
    38  elect to have his or her retirement benefits calculated pursuant to this
    39  article  by  filing within one hundred twenty days of the effective date
    40  of [this section] the chapter of the laws of two thousand eighteen  that
    41  amended this subdivision a request for such calculation with the retire-
    42  ment system in the form and manner prescribed by the state comptroller.
    43    b.   Notwithstanding  any  provision  of  law  to  the  contrary,  any
    44  police/fire member, as that term is defined in section five hundred  one
    45  of  this chapter who joined the New York state and local police and fire
    46  retirement system between July first, two  thousand  nine  and  December
    47  thirty-first,  two  thousand ten, or who joined the New York city police
    48  pension fund or the New York city fire department pension  fund  between
    49  July first, two thousand nine and the effective date of this subdivision
    50  may  make  an irrevocable election that shall be duly executed and filed
    51  with the administrative head of the retirement system no later than  one
    52  hundred  twenty  days after the effective date of this subdivision to be
    53  subject to the provisions of this article and have his or her retirement
    54  benefits calculated pursuant to this article.  Nothing in this  subdivi-
    55  sion,  however,  shall  be  construed  or  deemed to allow a police/fire
    56  member who makes an irrevocable election pursuant to this subdivision to
        A. 10715                            4
     1  receive a refund of any member contributions for credited  service  that
     2  occurred  before  the  date that such election is filed by a police/fire
     3  member with the New York city police pension fund or New York city  fire
     4  department pension fund, as applicable to such member.
     5    c.  Notwithstanding  any  provision  to  the contrary, any police/fire
     6  member, as that term is defined in section  five  hundred  one  of  this
     7  chapter,  who first becomes a member of the New York city police pension
     8  fund or the New York city fire department pension fund after the  effec-
     9  tive  date  of  this  subdivision  may make an irrevocable election that
    10  shall be duly executed and filed with the  administrative  head  of  the
    11  retirement system no later than thirty days after joining the retirement
    12  system  to  be subject to the provisions of this article and have his or
    13  her retirement benefits calculated pursuant to this article.
    14    § 7. Section 1206 of the retirement and social security law, as  added
    15  by section 1 of part A of chapter 504 of the laws of 2009, is amended to
    16  read as follows:
    17    §  1206.  Conflicting provisions. Except as otherwise provided in this
    18  article, or in conflict therewith, the provisions of article  eleven  of
    19  this  chapter  and title thirteen of the administrative code of the city
    20  of New York, including any plan that has been elected by the employer or
    21  is otherwise applicable under article eight of  this  chapter  or  title
    22  thirteen of the administrative code of the city of New York shall govern
    23  the retirement benefits provided under this article. In the event of any
    24  conflict  between the provisions of this article and any other provision
    25  of law, this article shall govern.
    26    § 8. Paragraph 2 of subdivision a of section 1207  of  the  retirement
    27  and social security law, as added by chapter 303 of the laws of 2017, is
    28  amended to read as follows:
    29    2. A member who first joins such system on or after January first, two
    30  thousand eighteen in active service who has credit for at least one year
    31  of member service may borrow, no more than once during each twelve month
    32  period,  an  amount,  not less than one thousand dollars and which would
    33  not cause the balance owed  pursuant  to  this  section,  including  any
    34  amounts  borrowed  then  outstanding, to exceed (i) fifty percent of the
    35  member's total contributions made  pursuant  to  section  [five  hundred
    36  seventeen  of  this  chapter] twelve hundred four of this article or any
    37  other article of this chapter (including interest credited at  the  rate
    38  set  forth  in subdivision c of [such] section five hundred seventeen of
    39  this chapter compounded  annually);  or  (ii)  fifty  thousand  dollars,
    40  whichever is less.
    41    §  9. Section 1209 of the retirement and social security law, as added
    42  by chapter 18 of the laws of 2012, is amended to read as follows:
    43    § 1209. Final average salary.  For members who first become members of
    44  the New York state and local police and fire  retirement  system  on  or
    45  after  April  first,  two  thousand twelve, and members who have made an
    46  election to be subject to the provisions of  this  article  pursuant  to
    47  subdivision  b  or  c  of section twelve hundred five of this article, a
    48  member's final average salary shall be equal to one-fifth of the highest
    49  total wages earned by  such  member  during  any  continuous  period  of
    50  employment  for which the member was credited with five years of service
    51  credit; provided, however, if the wages earned during any year of  cred-
    52  ited  service  included  in  the  period used to determine final average
    53  salary exceeds the average of the wages of the previous  four  years  of
    54  credited  service  by more than ten percent, the amount in excess of ten
    55  percent shall be excluded from the computation of final average  salary.
    56  Wages  in  excess  of the annual salary paid to the governor pursuant to
        A. 10715                            5
     1  section three of  article  four  of  the  state  constitution  shall  be
     2  excluded  from  the  computation of final average salary for members who
     3  first become members of the New York state and  local  police  and  fire
     4  retirement system on or after April first, two thousand twelve.
     5    § 10. Section 1210 of the retirement and social security law, as added
     6  by chapter 18 of the laws of 2012, is amended to read as follows:
     7    §  1210. Wages.   For members who first become members of the New York
     8  state and local police and fire retirement  system  on  or  after  April
     9  first,  two thousand twelve, and members who have made an election to be
    10  subject to the provisions of this article pursuant to subdivision b or c
    11  of section twelve hundred five of  this  article,  the  following  items
    12  shall  not be included in the definition of wages: a. wages in excess of
    13  the annual salary paid to the governor  pursuant  to  section  three  of
    14  article  four  of  the  state  constitution,  b.  lump  sum payments for
    15  deferred compensation, sick leave, accumulated vacation or other credits
    16  for time not worked, c. any form of termination pay, d.  any  additional
    17  compensation  paid  in anticipation of retirement, and e. in the case of
    18  employees who receive wages from three or more  employers  in  a  twelve
    19  month period, the wages paid by the third and each successive employer.
    20    § 11. This act shall take effect immediately.
          Fiscal Note.--Pursuant to Legislative Law, Section 50:
          This  bill  would  allow  certain  police  and  fire employees who are
        members of certain public retirement systems to become covered under the
        provisions of Article 22 of the  Retirement  and  Social  Security  Law.
        Insofar  as  this  bill  affects the New York State and Local Police and
        Fire Retirement System (PFRS), an individual who became a PFRS member on
        or after July 1, 2009 and before January 9, 2010 to elect to be  covered
        by  the  provisions  of Article 22 of the Retirement and Social Security
        Law.  Any member who becomes covered under a non-contributory plan would
        no longer be required to make  member  contributions.  Affected  members
        shall not receive a refund of their member contributions.
          If  this  bill is enacted, there would not be any cost to the State of
        New York and the participating employers in the New York State and Local
        Police and Fire Retirement System.
          Summary of relevant resources:
          The membership data used in  measuring  the  impact  of  the  proposed
        change  was  the same as that used in the March 31, 2017 actuarial valu-
        ation.  Distributions and other statistics can  be  found  in  the  2017
        Report  of  the  Actuary  and  the  2017  Comprehensive Annual Financial
        Report.
          The actuarial assumptions and methods used are described in the  2015,
        2016,  and  2017  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, 2017
        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 estimate, dated March 13, 2018, and intended for use only  during
        the  2018  Legislative  Session, is Fiscal Note No. 2018-74, prepared by
        the Actuary for the New York State and Local Retirement System.