A5093B-2011 Actions

• Jan 30, 2012: print number 5093b
• Jan 30, 2012: amend and recommit to governmental employees
• Jan 4, 2012: referred to governmental employees
• Apr 4, 2011: print number 5093a
• Apr 4, 2011: amend and recommit to governmental employees
• Feb 11, 2011: referred to governmental employees

A5093B-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 5093--B
 2011-2012 Regular Sessions
 I N  ASSEMBLY
 February 11, 2011
 
 Introduced  by  M. of A. ABBATE -- Multi-Sponsored by -- M. of A. AUBRY,
 BOYLAND,  CANESTRARI,  CLARK,  COOK,  CYMBROWITZ,  GOTTFRIED,  LIFTON,
 MAGEE,  McENENY,  ORTIZ, SWEENEY, WEISENBERG -- read once and referred
 to the Committee on Governmental Employees  --  committee  discharged,
 bill  amended,  ordered  reprinted  as amended and recommitted to said
 committee -- recommitted to the Committee on Governmental Employees in
 accordance with Assembly Rule 3, sec. 2 -- committee discharged,  bill
 amended,  ordered reprinted as amended and recommitted to said commit
 tee
 

AN ACT to amend the retirement and social security law, in  relation  to
 the definitions of final average salary
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Subdivisions a and b of section 512 of the  retirement  and
 social security law, subdivision a as amended by chapter 379 of the laws
 of 1986 and subdivision b as amended by chapter 286 of the laws of 2010,
 are amended to read as follows:

 a.  A  member's final average salary shall be the average wages earned
 by such a member during any three consecutive years  which  provide  the
 highest  average wage; provided, however, if the wages earned during any
 year included in the period  used  to  determine  final  average  salary
 exceeds that of the average of the previous two years by more than [ten]
 TWENTY  percent,  the  amount in excess of [ten] TWENTY percent shall be
 excluded from the computation of final average salary.  Where the period
 used to determine final average salary is the period  which  immediately
 precedes  the  date of retirement, any month or months (not in excess of
 twelve) which would otherwise be included  in  computing  final  average
 salary but during which the member was on authorized leave of absence at
 partial  pay  or  without  pay shall be excluded from the computation of
 final average salary and the month or an equal number  of  months  imme
 diately preceding such period shall be substituted in lieu thereof.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD07901-03-2
 
       A. 5093--B                          2
 b.  Notwithstanding  the  provisions of subdivision a of this section,
 with respect to members of the  New  York  state  AND  LOCAL  employees'
 retirement  system, the New York state and local police and fire retire
 ment system and  the  New  York  city  teachers'  retirement  system,  a
 member's final average salary shall be equal to one-third of the highest
 total  wages earned during any continuous period of employment for which
 the member was credited with three years of  service  credit;  provided,
 however,  if  the  wages  earned  during  any  year  of credited service
 included the period used to determine final average salary  exceeds  the
 average  of  the  wages of the previous two years of credited service by
 more than [ten] TWENTY percent, the amount in  excess  of  [ten]  TWENTY
 percent shall be excluded from the computation of final average salary.
 

S  2. Subdivisions a and b of section 608 of the retirement and social
 security law, subdivision a as amended by chapter 379  of  the  laws  of
 1986  and  subdivision  b as amended by chapter 286 of the laws of 2010,
 are amended to read as follows:

 a. A member's final average salary shall be the average  wages  earned
 by  such  a  member during any three consecutive years which provide the
 highest average wage; provided, however, if the wages earned during  any
 year  included  in  the  period  used  to determine final average salary
 exceeds that of the average of the previous two years by more than [ten]
 TWENTY percent, the amount in excess of [ten] TWENTY  percent  shall  be
 excluded  from the computation of final average salary. Where the period
 used to determine final average salary is the period  which  immediately
 precedes  the  date of retirement, any month or months (not in excess of
 twelve) which would otherwise be included  in  computing  final  average
 salary but during which the member was on authorized leave of absence at
 partial  pay  or  without  pay shall be excluded from the computation of
 final average salary and the month or an equal number  of  months  imme
 diately preceding such period shall be substituted in lieu thereof.
 b.  Notwithstanding  the  provisions of subdivision a of this section,
 with respect to members of the  New  York  state  AND  LOCAL  employees'
 retirement  system  and the New York city teachers' retirement system, a
 member's final average salary shall be equal to one-third of the highest
 total wages earned by  such  member  during  any  continuous  period  of
 employment for which the member was credited with three years of service
 credit;  provided, however, if the wages earned during any year of cred
 ited service included in the period  used  to  determine  final  average
 salary  exceeds  the  average  of the wages of the previous two years of
 credited service by more than [ten] TWENTY percent, the amount in excess
 of [ten] TWENTY percent shall be excluded from the computation of  final
 average salary.
 

S  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on or after June 30, 2012.
 FISCAL NOTE.--Pursuant to Legislative Law,

Section 50:

 This bill will  amend  the  definition  of  final  average  salary  in
 Sections  512  and  608  of  the  Retirement and Social Security Law for
 certain Tiers 3, 4 and 5 members. It would raise  the  restriction  that
 limits  salary  from a maximum of a 10% increase over the average of the
 previous two years to a 20% maximum.
 If this bill is enacted, insofar as this bill will affect Tiers  3,  4
 and  5  members  of  the  New York State and Local Employees' Retirement
 System (ERS) and Tier 3 members of the New York State and  Local  Police
 and  Fire  Retirement System (PFRS) who are subject to the provisions of
 Article 14, there would be estimated additional annual contributions  of
 approximately  $94 million to the State of New York, $135 million to the
 
       A. 5093--B                          3
 participating employers in the ERS  and  $71,000  to  the  participating
 employers in the PFRS.
 Summary of relevant resources:

 Data:  March  31,  2011  Actuarial Year End File with distributions of
 membership and other statistics displayed in  the  2011  Report  of  the
 Actuary and 2011 Comprehensive Annual Financial Report.
 Assumptions  and  Methods:  2010  and  2011 Annual Report to the Comp
 troller on Actuarial Assumptions, Codes, Rules and  Regulations  of  the
 State of New York: Audit and Control.
 Market  Assets and GASB Disclosures: March 31, 2011 New York State and
 Local Retirement System Financial Statements and Supplementary  Informa
 tion.
 Valuations  of Benefit Liabilities and Actuarial Assets: summarized in
 the 2011 Actuarial Valuations report.
 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 November 28, 2011,  and  intended  for  use  only
 during  the  2012  Legislative  Session,  is  Fiscal  Note  No. 2012-28,
 prepared by the Actuary for the ERS and PFRS.

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