S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   513

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of A. CUSICK, ORTIZ, COLTON, MARKEY, MILLMAN, PERRY,
  GUNTHER, TITONE, CASTRO, BOYLAND, CAHILL, GABRYSZAK, HIKIND, V. LOPEZ,
  LUPARDO, MAISEL, SCHIMMINGER, WEISENBERG -- read once and referred  to
  the Committee on Governmental Employees

AN  ACT  to amend the retirement and social security law, in relation to
  providing three years of retirement service credit to certain  members
  of  public  retirement  systems of the state honorably discharged from
  the military for medical  reasons  due  to  injuries  suffered  during
  certain military conflicts

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

  Section 1. Section 1000 of the retirement and social security  law  is
amended by adding a new subdivision 2-a to read as follows:
   2-A. A MEMBER, UPON APPLICATION TO SUCH RETIREMENT SYSTEM, MAY OBTAIN
A  TOTAL  OF  THREE YEARS OF SERVICE CREDIT FOR LESS THAN THREE YEARS OF
MILITARY DUTY, AS DEFINED IN SECTION  TWO  HUNDRED  FORTY-THREE  OF  THE
MILITARY  LAW,  IF THE MEMBER WAS HONORABLY DISCHARGED FROM THE MILITARY
FOR MEDICAL REASONS DUE TO INJURIES SUFFERED DURING SUCH MILITARY  DUTY,
IF  ALL  OR PART OF SUCH SERVICES WAS RENDERED IN THE MILITARY CONFLICTS
REFERENCED BELOW, AS FOLLOWS:
  (A) COMMENCING DECEMBER SEVENTH, NINETEEN HUNDRED FORTY-ONE AND TERMI-
NATING DECEMBER THIRTY-FIRST, NINETEEN HUNDRED FORTY-SIX;
  (B) COMMENCING JUNE TWENTY-SEVENTH, NINETEEN HUNDRED FIFTY AND  TERMI-
NATING JANUARY THIRTY-FIRST, NINETEEN HUNDRED FIFTY-FIVE;
  (C)  COMMENCING FEBRUARY TWENTY-EIGHTH, NINETEEN HUNDRED SIXTY-ONE AND
TERMINATING MAY SEVENTH, NINETEEN HUNDRED SEVENTY-FIVE;
  (D) HOSTILITIES PARTICIPATED IN BY THE MILITARY FORCES OF  THE  UNITED
STATES  IN LEBANON, FROM THE FIRST DAY OF JUNE, NINETEEN HUNDRED EIGHTY-
THREE TO THE FIRST DAY OF DECEMBER, NINETEEN  HUNDRED  EIGHTY-SEVEN,  AS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00841-02-3
              

A. 513                              2

ESTABLISHED BY RECEIPT OF THE ARMED FORCES EXPEDITIONARY MEDAL, THE NAVY
EXPEDITIONARY MEDAL, OR THE MARINE CORPS EXPEDITIONARY MEDAL;
  (E)  HOSTILITIES  PARTICIPATED IN BY THE MILITARY FORCES OF THE UNITED
STATES IN GRENADA,  FROM  THE  TWENTY-THIRD  DAY  OF  OCTOBER,  NINETEEN
HUNDRED  EIGHTY-THREE  TO  THE  TWENTY-FIRST  DAY  OF NOVEMBER, NINETEEN
HUNDRED EIGHTY-THREE, AS ESTABLISHED BY  RECEIPT  OF  THE  ARMED  FORCES
EXPEDITIONARY  MEDAL,  THE NAVY EXPEDITIONARY MEDAL, OR THE MARINE CORPS
EXPEDITIONARY MEDAL;
  (F) HOSTILITIES PARTICIPATED IN BY THE MILITARY FORCES OF  THE  UNITED
STATES  IN  PANAMA, FROM THE TWENTIETH DAY OF DECEMBER, NINETEEN HUNDRED
EIGHTY-NINE TO THE THIRTY-FIRST DAY OF JANUARY, NINETEEN HUNDRED NINETY,
AS ESTABLISHED BY RECEIPT OF THE ARMED FORCES EXPEDITIONARY  MEDAL,  THE
NAVY EXPEDITIONARY MEDAL, OR THE MARINE CORPS EXPEDITIONARY MEDAL; OR
  (G)  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 IN CASE OF A VETERAN WHO SERVED IN THE THEATER
OF OPERATIONS INCLUDING IRAQ, KUWAIT, SAUDI ARABIA, BAHRAIN, QATAR,  THE
UNITED  ARAB  EMIRATES,  OMAN,  THE  GULF OF ADEN, THE GULF OF OMAN, THE
PERSIAN GULF, THE RED SEA, AND THE AIRSPACE ABOVE THESE LOCATIONS.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after December 21, 1998.
  FISCAL NOTE.--This bill would amend Chapter 548 of the Laws of 2000 to
allow  certain  individuals  with  less than three (3) years of military
duty, who were discharged from the military for medical reasons  due  to
injuries suffered during such military duty, to purchase three (3) years
of  service  credit  for  military  duty.  The additional service credit
granted pursuant to this legislation, when added to credit  granted  for
military service pursuant to any other provision of law shall not exceed
a total of three (3) years. Members must have at least five (5) years of
credit  service. Tier 1-5 members 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. Tier 6 members would be required to
make a payment of six percent of their most recent compensation per year
of additional service credit.
  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% (9% for Tier 6) of
an affected members' compensation for each year  of  additional  service
credit that is purchased.
  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% (14% for  Tier  6)  of  an  affected
members'  compensation  for  each  year  of  additional  service that is
purchased.
  The exact number of members who could be affected by this  legislation
cannot  be readily determined. In all likelihood, very few members would
be affected.
  Summary of relevant resources:
  ERS Costs: Pursuant to section 25 of the Retirement and Social Securi-
ty Law, these per person one-time costs would be borne by the  State  of
New York and would require an itemized appropriation by the State of New
York sufficient to pay the cost of the provision. The State may amortize
these per person one-time costs over a period of 5 years.
  PFRS  Costs:  These costs would be shared by the State of New York and
the participating employers in the PFRS.

A. 513                              3

  Data: March 31, 2012 Actuarial Year End  File  with  distributions  of
membership  and  other  statistics  displayed  in the 2012 Report of the
Actuary and 2012 Comprehensive Annual Financial Report.
  Assumptions  and  Methods:  2010,  2011  and 2012 Annual Report to the
Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the
State of New York: Audit and Control.
  Market Assets and GASB Disclosures: March 31, 2012 New York State  and
Local  Retirement System Financial Statements and Supplementary Informa-
tion.
  Valuations of Benefit Liabilities and Actuarial Assets: summarized  in
the 2012 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  December  17,  2012  and intended for use only
during the  2013  Legislative  Session,  is  Fiscal  Note  No.  2013-15,
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.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 513--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of A. CUSICK, ORTIZ, COLTON, MARKEY, MILLMAN, PERRY,
  GUNTHER, TITONE, BOYLAND, CAHILL, GABRYSZAK, HIKIND, LUPARDO,  MAISEL,
  SCHIMMINGER,  WEISENBERG,  SIMANOWITZ -- read once and referred to the
  Committee on Governmental  Employees  --  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
  providing  three years of retirement service credit to certain members
  of public retirement systems of the state  honorably  discharged  from
  the  military  for  medical  reasons  due  to injuries suffered during
  certain military conflicts

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

  Section  1.  Section 1000 of the retirement and social security law is
amended by adding a new subdivision 2-a to read as follows:
   2-A. A MEMBER, UPON APPLICATION TO SUCH RETIREMENT SYSTEM, MAY OBTAIN
A TOTAL OF THREE YEARS OF SERVICE CREDIT FOR LESS THAN  THREE  YEARS  OF
MILITARY  DUTY,  AS  DEFINED  IN  SECTION TWO HUNDRED FORTY-THREE OF THE
MILITARY LAW, IF THE MEMBER WAS HONORABLY DISCHARGED FROM  THE  MILITARY
FOR  MEDICAL REASONS DUE TO INJURIES SUFFERED DURING SUCH MILITARY DUTY,
IF ALL OR PART OF SUCH SERVICES WAS RENDERED IN THE  MILITARY  CONFLICTS
REFERENCED BELOW, AS FOLLOWS:
  (A) COMMENCING DECEMBER SEVENTH, NINETEEN HUNDRED FORTY-ONE AND TERMI-
NATING DECEMBER THIRTY-FIRST, NINETEEN HUNDRED FORTY-SIX;
  (B)  COMMENCING JUNE TWENTY-SEVENTH, NINETEEN HUNDRED FIFTY AND TERMI-
NATING JANUARY THIRTY-FIRST, NINETEEN HUNDRED FIFTY-FIVE;
  (C) COMMENCING FEBRUARY TWENTY-EIGHTH, NINETEEN HUNDRED SIXTY-ONE  AND
TERMINATING MAY SEVENTH, NINETEEN HUNDRED SEVENTY-FIVE;
  (D)  HOSTILITIES  PARTICIPATED IN BY THE MILITARY FORCES OF THE UNITED
STATES IN LEBANON, FROM THE FIRST DAY OF JUNE, NINETEEN HUNDRED  EIGHTY-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00841-03-3

A. 513--A                           2

THREE  TO  THE  FIRST DAY OF DECEMBER, NINETEEN HUNDRED EIGHTY-SEVEN, AS
ESTABLISHED BY RECEIPT OF THE ARMED FORCES EXPEDITIONARY MEDAL, THE NAVY
EXPEDITIONARY MEDAL, OR THE MARINE CORPS EXPEDITIONARY MEDAL;
  (E)  HOSTILITIES  PARTICIPATED IN BY THE MILITARY FORCES OF THE UNITED
STATES IN GRENADA,  FROM  THE  TWENTY-THIRD  DAY  OF  OCTOBER,  NINETEEN
HUNDRED  EIGHTY-THREE  TO  THE  TWENTY-FIRST  DAY  OF NOVEMBER, NINETEEN
HUNDRED EIGHTY-THREE, AS ESTABLISHED BY  RECEIPT  OF  THE  ARMED  FORCES
EXPEDITIONARY  MEDAL,  THE NAVY EXPEDITIONARY MEDAL, OR THE MARINE CORPS
EXPEDITIONARY MEDAL;
  (F) HOSTILITIES PARTICIPATED IN BY THE MILITARY FORCES OF  THE  UNITED
STATES  IN  PANAMA, FROM THE TWENTIETH DAY OF DECEMBER, NINETEEN HUNDRED
EIGHTY-NINE TO THE THIRTY-FIRST DAY OF JANUARY, NINETEEN HUNDRED NINETY,
AS ESTABLISHED BY RECEIPT OF THE ARMED FORCES EXPEDITIONARY  MEDAL,  THE
NAVY EXPEDITIONARY MEDAL, OR THE MARINE CORPS EXPEDITIONARY MEDAL; OR
  (G)  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 IN CASE OF A VETERAN WHO SERVED IN THE THEATER
OF OPERATIONS INCLUDING IRAQ, KUWAIT, SAUDI ARABIA, BAHRAIN, QATAR,  THE
UNITED  ARAB  EMIRATES,  OMAN,  THE  GULF OF ADEN, THE GULF OF OMAN, THE
PERSIAN GULF, THE RED SEA, AND THE AIRSPACE ABOVE THESE LOCATIONS.
  S 2. Notwithstanding any other provision of law to the contrary,  none
of  the  provisions  of  this  act shall be subject to section 25 of the
retirement and social security law.
  S 3. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after December 21, 1998.
  FISCAL NOTE.--This bill would amend Chapter 548 of the Laws of 2000 to
allow  certain  individuals  with  less than three (3) years of military
duty, who were discharged from the military for medical reasons  due  to
injuries suffered during such military duty, to purchase three (3) years
of  service  credit  for  military  duty.  The additional service credit
granted pursuant to this legislation, when added to credit  granted  for
military service pursuant to any other provision of law shall not exceed
a total of three (3) years. Members must have at least five (5) years of
credit  service. Tier 1-5 members 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. Tier 6 members would be required to
make a payment of six percent of their most recent compensation per year
of additional service credit.
  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% (9% for Tier 6) of
an affected members' compensation for each year  of  additional  service
credit that is purchased.
  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% (14% for  Tier  6)  of  an  affected
members'  compensation  for  each  year  of  additional  service that is
purchased.
  The exact number of members who could be affected by this  legislation
cannot  be readily determined. In all likelihood, very few members would
be affected.
  Summary of relevant resources:
  ERS Costs: Pursuant to section 25 of the Retirement and Social Securi-
ty Law, these per person one-time costs would be borne by the  State  of
New York and would require an itemized appropriation by the State of New

A. 513--A                           3

York sufficient to pay the cost of the provision. The State may amortize
these per person one-time costs over a period of 5 years.
  PFRS  Costs:  These costs would be shared by the State of New York and
the participating employers in the PFRS.
  Data: March 31, 2012 Actuarial Year End  File  with  distributions  of
membership  and  other  statistics  displayed  in the 2012 Report of the
Actuary and 2012 Comprehensive Annual Financial Report.
  Assumptions and Methods: 2010, 2011 and  2012  Annual  Report  to  the
Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the
State of New York: Audit and Control.
  Market  Assets and GASB Disclosures: March 31, 2012 New York State and
Local Retirement System Financial Statements and Supplementary  Informa-
tion.
  Valuations  of Benefit Liabilities and Actuarial Assets: summarized in
the 2012 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 December 17,  2012  and  intended  for  use  only
during  the  2013  Legislative  Session,  is  Fiscal  Note  No. 2013-15,
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.--This bill would add a new  subdivision  2-a  to  Section
1000  of  the  Retirement  and  Social  Security Law to allow members of
public retirement systems of New York State to claim service credit  for
up  to  three  years  of  military service, for less than three years of
military duty, if  the  member  was  honorably  discharged  for  medical
reasons  due  to  injuries  suffered during such military duty. A member
must have at least five years of credited service  to  be  eligible.  To
obtain  such  credit, a member must make payments as required in Section
1000 of the Retirement and Social Security Law. A member who retired  on
or after December 21, 1998 may apply for credit pursuant to this section
within one year of the effective date of this act.
  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
$21,400  per  year of service credited for Tier 1 and 2 members, $18,300
per year of service credited for Tier 3 and 4 members, $16,600 per  year
of  service credited for Tier 5 members, and $10,700 per year of service
credited for Tier 6 members if this bill is enacted.
  The source of this estimate is Fiscal Note 2013-32 dated May  9,  2013
prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
System and is intended for use only during the 2013 Legislative Session.
I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
Retirement  System.  I  am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of  Actu-
aries to render the actuarial opinion contained herein.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 513--C

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of A. CUSICK, ORTIZ, COLTON, MARKEY, MILLMAN, PERRY,
  GUNTHER, TITONE, CAHILL,  HIKIND,  LUPARDO,  SCHIMMINGER,  WEISENBERG,
  SIMANOWITZ  -- 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 committee -- reported and referred  to
  the Committee on Ways and Means -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to amend the retirement and social security law, in relation to
  providing three years of retirement service credit to certain  members
  of  public  retirement  systems of the state honorably discharged from
  the military for medical  reasons  due  to  injuries  suffered  during
  certain military conflicts

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

  Section 1. Section 1000 of the retirement and social security  law  is
amended by adding a new subdivision 2-a to read as follows:
   2-A. A MEMBER, UPON APPLICATION TO SUCH RETIREMENT SYSTEM, MAY OBTAIN
A  TOTAL  OF  THREE YEARS OF SERVICE CREDIT FOR LESS THAN THREE YEARS OF
MILITARY DUTY, AS DEFINED IN SECTION  TWO  HUNDRED  FORTY-THREE  OF  THE
MILITARY  LAW,  IF THE MEMBER WAS HONORABLY DISCHARGED FROM THE MILITARY
FOR MEDICAL REASONS DUE TO INJURIES SUFFERED DURING SUCH MILITARY  DUTY,
IF  ALL  OR PART OF SUCH SERVICES WAS RENDERED IN THE MILITARY CONFLICTS
REFERENCED BELOW, AS FOLLOWS:
  (A) COMMENCING DECEMBER SEVENTH, NINETEEN HUNDRED FORTY-ONE AND TERMI-
NATING DECEMBER THIRTY-FIRST, NINETEEN HUNDRED FORTY-SIX;
  (B) COMMENCING JUNE TWENTY-SEVENTH, NINETEEN HUNDRED FIFTY AND  TERMI-
NATING JANUARY THIRTY-FIRST, NINETEEN HUNDRED FIFTY-FIVE;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00841-07-4

A. 513--C                           2

  (C)  COMMENCING FEBRUARY TWENTY-EIGHTH, NINETEEN HUNDRED SIXTY-ONE AND
TERMINATING MAY SEVENTH, NINETEEN HUNDRED SEVENTY-FIVE;
  (D)  HOSTILITIES  PARTICIPATED IN BY THE MILITARY FORCES OF THE UNITED
STATES IN LEBANON, FROM THE FIRST DAY OF JUNE, NINETEEN HUNDRED  EIGHTY-
THREE  TO  THE  FIRST DAY OF DECEMBER, NINETEEN HUNDRED EIGHTY-SEVEN, AS
ESTABLISHED BY RECEIPT OF THE ARMED FORCES EXPEDITIONARY MEDAL, THE NAVY
EXPEDITIONARY MEDAL, OR THE MARINE CORPS EXPEDITIONARY MEDAL;
  (E) HOSTILITIES PARTICIPATED IN BY THE MILITARY FORCES OF  THE  UNITED
STATES  IN  GRENADA,  FROM  THE  TWENTY-THIRD  DAY  OF OCTOBER, NINETEEN
HUNDRED EIGHTY-THREE TO  THE  TWENTY-FIRST  DAY  OF  NOVEMBER,  NINETEEN
HUNDRED  EIGHTY-THREE,  AS  ESTABLISHED  BY  RECEIPT OF THE ARMED FORCES
EXPEDITIONARY MEDAL, THE NAVY EXPEDITIONARY MEDAL, OR THE  MARINE  CORPS
EXPEDITIONARY MEDAL;
  (F)  HOSTILITIES  PARTICIPATED IN BY THE MILITARY FORCES OF THE UNITED
STATES IN PANAMA, FROM THE TWENTIETH DAY OF DECEMBER,  NINETEEN  HUNDRED
EIGHTY-NINE TO THE THIRTY-FIRST DAY OF JANUARY, NINETEEN HUNDRED NINETY,
AS  ESTABLISHED  BY RECEIPT OF THE ARMED FORCES EXPEDITIONARY MEDAL, THE
NAVY EXPEDITIONARY MEDAL, OR THE MARINE CORPS EXPEDITIONARY MEDAL; OR
  (G) 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 IN CASE OF A VETERAN WHO SERVED IN  THE  THEATER
OF  OPERATIONS INCLUDING IRAQ, KUWAIT, SAUDI ARABIA, BAHRAIN, QATAR, THE
UNITED ARAB EMIRATES, OMAN, THE GULF OF ADEN,  THE  GULF  OF  OMAN,  THE
PERSIAN  GULF,  THE  RED  SEA,  AND  THE AIRSPACE ABOVE THESE LOCATIONS.
HOWEVER, NOTHING PROVIDED HEREIN SHALL AUTHORIZE OR PERMIT THE CREDITING
OF SERVICE WHERE NOT PERMITTED PURSUANT TO SECTION 415(N) OF THE  INTER-
NAL REVENUE CODE OR ANY REGULATIONS PROMULGATED THEREUNDER.
  S  2. Notwithstanding any other provision of law to the contrary, none
of the provisions of this act shall be subject  to  section  25  of  the
retirement and social security law.
  S  3.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after December 21, 1998.
  FISCAL NOTE.--This bill would add a new  subdivision  2-a  to  Section
1000  of  the  Retirement  and  Social  Security Law to allow members of
public retirement systems of New York State to claim service credit  for
up  to  three  years  of  military service, for less than three years of
military duty, if  the  member  was  honorably  discharged  for  medical
reasons  due  to  injuries  suffered during such military duty. A member
must have at least five years of credited service  to  be  eligible.  To
obtain  such  credit, a member must make payments as required in Section
1000 of the Retirement and Social Security Law. Tier 1, 2, 3,  4  and  5
members  are  required  to pay three percent of salary earned during the
twelve months of credited service  immediately  preceding  the  year  in
which  a claim is made for each year of military service. Tier 6 members
are required to pay six percent  of  salary  earned  during  the  twelve
months  of  credited  service  immediately preceding the year in which a
claim is made for each year of military service. A member who retired on
or after December 21, 1998 may apply for credit pursuant to this section
within one year of the effective date of this act.
  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
$21,700 per year of service credited for Tier 1 and 2  members,  $20,500
per  year of service credited for Tier 3 and 4 members, $20,400 per year

A. 513--C                           3

of service credited for Tier 5 members, and $15,000 per year of  service
credited  for  Tier 6 members if this bill is enacted. These costs would
be offset by member payments required under Section 1000 of the  Retire-
ment  and  Social Security Law. The cost is estimated to be, on average,
approximately $75,000 for each retired member  claiming  service  credit
under this bill if enacted, including payments retroactive to their date
of retirement.
  Employee  data  is  from  the System's most recent actuarial valuation
files, consisting of data provided by the employers  to  the  Retirement
System.  Data  distributions and statistics can be found in the System's
Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
reported  in the System's financial statements, and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
  The source of this estimate is Fiscal Note 2014-24 dated April 4, 2014
prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
System and is intended for use only during the 2014 Legislative Session.
I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American  Academy  of  Actuaries
and  I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 513--D

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of A. CUSICK, ORTIZ, COLTON, MARKEY, MILLMAN, PERRY,
  GUNTHER, TITONE, CAHILL,  HIKIND,  LUPARDO,  SCHIMMINGER,  WEISENBERG,
  SIMANOWITZ  -- 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 committee -- reported and referred  to
  the Committee on Ways and Means -- committee discharged, bill amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  again reported from said committee with amendments, ordered  reprinted
  as amended and recommitted to said committee

AN  ACT  to amend the retirement and social security law, in relation to
  providing three years of retirement service credit to certain  members
  of  public  retirement  systems of the state honorably discharged from
  the military for medical  reasons  due  to  injuries  suffered  during
  certain military conflicts

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

  Section 1. Section 1000 of the retirement and social security  law  is
amended by adding a new subdivision 2-a to read as follows:
   2-A. A MEMBER, UPON APPLICATION TO SUCH RETIREMENT SYSTEM, MAY OBTAIN
A  TOTAL  OF  THREE YEARS OF SERVICE CREDIT FOR LESS THAN THREE YEARS OF
MILITARY DUTY, AS DEFINED IN SECTION  TWO  HUNDRED  FORTY-THREE  OF  THE
MILITARY  LAW,  IF THE MEMBER WAS HONORABLY DISCHARGED FROM THE MILITARY
FOR MEDICAL REASONS DUE TO INJURIES SUFFERED DURING SUCH MILITARY  DUTY,
IF  ALL  OR PART OF SUCH SERVICES WAS RENDERED IN THE MILITARY CONFLICTS
REFERENCED BELOW, AS FOLLOWS:
  (A) COMMENCING DECEMBER SEVENTH, NINETEEN HUNDRED FORTY-ONE AND TERMI-
NATING DECEMBER THIRTY-FIRST, NINETEEN HUNDRED FORTY-SIX;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00841-09-4

A. 513--D                           2

  (B) COMMENCING JUNE TWENTY-SEVENTH, NINETEEN HUNDRED FIFTY AND  TERMI-
NATING JANUARY THIRTY-FIRST, NINETEEN HUNDRED FIFTY-FIVE;
  (C)  COMMENCING FEBRUARY TWENTY-EIGHTH, NINETEEN HUNDRED SIXTY-ONE AND
TERMINATING MAY SEVENTH, NINETEEN HUNDRED SEVENTY-FIVE;
  (D) HOSTILITIES PARTICIPATED IN BY THE MILITARY FORCES OF  THE  UNITED
STATES  IN LEBANON, FROM THE FIRST DAY OF JUNE, NINETEEN HUNDRED EIGHTY-
THREE TO THE FIRST DAY OF DECEMBER, NINETEEN  HUNDRED  EIGHTY-SEVEN,  AS
ESTABLISHED BY RECEIPT OF THE ARMED FORCES EXPEDITIONARY MEDAL, THE NAVY
EXPEDITIONARY MEDAL, OR THE MARINE CORPS EXPEDITIONARY MEDAL;
  (E)  HOSTILITIES  PARTICIPATED IN BY THE MILITARY FORCES OF THE UNITED
STATES IN GRENADA,  FROM  THE  TWENTY-THIRD  DAY  OF  OCTOBER,  NINETEEN
HUNDRED  EIGHTY-THREE  TO  THE  TWENTY-FIRST  DAY  OF NOVEMBER, NINETEEN
HUNDRED EIGHTY-THREE, AS ESTABLISHED BY  RECEIPT  OF  THE  ARMED  FORCES
EXPEDITIONARY  MEDAL,  THE NAVY EXPEDITIONARY MEDAL, OR THE MARINE CORPS
EXPEDITIONARY MEDAL;
  (F) HOSTILITIES PARTICIPATED IN BY THE MILITARY FORCES OF  THE  UNITED
STATES  IN  PANAMA, FROM THE TWENTIETH DAY OF DECEMBER, NINETEEN HUNDRED
EIGHTY-NINE TO THE THIRTY-FIRST DAY OF JANUARY, NINETEEN HUNDRED NINETY,
AS ESTABLISHED BY RECEIPT OF THE ARMED FORCES EXPEDITIONARY  MEDAL,  THE
NAVY EXPEDITIONARY MEDAL, OR THE MARINE CORPS EXPEDITIONARY MEDAL; OR
  (G)  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 IN CASE OF A VETERAN WHO SERVED IN THE THEATER
OF OPERATIONS INCLUDING IRAQ, KUWAIT, SAUDI ARABIA, BAHRAIN, QATAR,  THE
UNITED  ARAB  EMIRATES,  OMAN,  THE  GULF OF ADEN, THE GULF OF OMAN, THE
PERSIAN GULF, THE RED SEA,  AND  THE  AIRSPACE  ABOVE  THESE  LOCATIONS.
HOWEVER, NOTHING PROVIDED HEREIN SHALL AUTHORIZE OR PERMIT THE CREDITING
OF  SERVICE WHERE NOT PERMITTED PURSUANT TO SECTION 415(N) OF THE INTER-
NAL REVENUE CODE OR ANY REGULATIONS PROMULGATED THEREUNDER.
  S 2. Notwithstanding any other provision of law to the contrary,  none
of  the  provisions  of  this  act shall be subject to section 25 of the
retirement and social security law.
  S 3. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after December 21, 1998.
  FISCAL  NOTE.--This  bill  would  add a new subdivision 2-a to Section
1000 of the Retirement and Social  Security  Law  to  allow  members  of
public  retirement systems of New York State to claim service credit for
up to three years of military service, for  less  than  three  years  of
military  duty,  if  the  member  was  honorably  discharged for medical
reasons due to injuries suffered during such  military  duty.  A  member
must  have  at  least  five years of credited service to be eligible. To
obtain such credit, a member must make payments as required  in  Section
1000  of  the  Retirement and Social Security Law. Tier 1, 2, 3, 4 and 5
members are required to pay three percent of salary  earned  during  the
twelve  months  of  credited  service  immediately preceding the year in
which a claim is made for each year of military service. Tier 6  members
are  required  to  pay  six  percent  of salary earned during the twelve
months of credited service immediately preceding the  year  in  which  a
claim is made for each year of military service. A member who retired on
or after December 21, 1998 may apply for credit pursuant to this section
within one year of the effective date of this act.
  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

A. 513--D                           3

$21,700  per  year of service credited for Tier 1 and 2 members, $20,500
per year of service credited for Tier 3 and 4 members, $20,400 per  year
of  service credited for Tier 5 members, and $15,000 per year of service
credited  for  Tier 6 members if this bill is enacted. These costs would
be offset by member payments required under Section 1000 of the  Retire-
ment  and  Social Security Law. The cost is estimated to be, on average,
approximately $75,000 for each retired member  claiming  service  credit
under this bill if enacted, including payments retroactive to their date
of retirement.
  Employee  data  is  from  the System's most recent actuarial valuation
files, consisting of data provided by the employers  to  the  Retirement
System.  Data  distributions and statistics can be found in the System's
Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
reported  in the System's financial statements, and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
  The source of this estimate is Fiscal Note 2014-24 dated April 4, 2014
prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
System and is intended for use only during the 2014 Legislative Session.
I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American  Academy  of  Actuaries
and  I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
  FISCAL NOTE.-- This bill would amend Chapter 548 of the Laws  of  2000
to  allow certain individuals with less than three (3) years of military
duty, who were discharged from the military for medical reasons  due  to
injuries suffered during such military duty, to purchase three (3) years
of  service  credit  for  military  duty.  The additional service credit
granted pursuant to this legislation, when added to credit  granted  for
military service pursuant to any other provision of law shall not exceed
a total of three (3) years. Members must have at least five (5) years of
credited  service.  Tier 1-5 members would be required to make a payment
of three percent of their most recent compensation  per  year  of  addi-
tional  service  credit  granted  by  this bill. Tier 6 members would be
required to make a payment of six percent of their most  recent  compen-
sation  per  year of additional service credit. In addition, none of the
provisions of this bill will be subject to Section 25 of the  retirement
and social security law.
  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% (9% for Tier 6) of
an affected members' compensation for each year  of  additional  service
credit that is purchased.
  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% (14  for  Tier  6)  of  an  affected
members'  compensation  for  each  year  of  additional  service that is
purchased.
  The exact number of members who could be affected by this  legislation
cannot  be readily determined. In all likelihood, very few members would
be affected.
  These costs would be shared by the State of New York and  the  partic-
ipating employers in the ERS and the PFRS.
  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, 2013  actuarial  valu-

A. 513--D                           4

ation.    Distributions  and  other  statistics can be found in the 2013
Report of the  Actuary  and  the  2013  Comprehensive  Annual  Financial
Report.
  The  actuarial assumptions and methods used are described in the 2010,
2011, 2012 and 2013  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, 2013
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  February  27,  2014  and intended for use only
during the  2014  Legislative  Session,  is  Fiscal  Note  No.  2014-90,
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.-- PROVISIONS OF PROPOSED LEGISLATION: The proposed legis-
lation  would  amend Retirement and Social Security Law ("RSSL") section
1000 by adding a new subdivision 2-a to allow a member of the  New  York
City  Retirement  Systems  ("NYCRS")  the  option to purchase a total of
three years of service credit for less than three years of military duty
if the member was honorably discharged from  the  military  for  medical
reasons  due  to  injuries  suffered during such military duty if all or
part of such services was rendered during certain military conflicts.
  The  NYCRS  include  New  York  City  Employees'   Retirement   System
("NYCERS"),  New  York  City Teachers' Retirement System ("NYCTRS"), New
York City Board of Education Retirement System ("BERS"), New  York  City
Police Pension Fund ("POLICE") and New York Fire Department Pension Fund
("FIRE").
  The  Effective  Date  of the proposed legislation would be the date of
enactment and shall be deemed to have been in full force and  effect  on
and after December 21, 1998.
  In order to purchase such military service, a member would be required
to  pay  the  appropriate  NYCRS,  for  each  year  of  military service
purchased, a sum equal to 3.0% (6.0% for members who first  join  on  or
after  April  1,  2012)  of such member's compensation earned during the
twelve months of credited service immediately preceding  the  date  that
the member makes application for military service credit. For those that
are  already  retired,  the  cost  to  the retiree would be based on the
compensation earned during the twelve month period immediately preceding
retirement.
  IMPACT ON BENEFITS: For purposes of the respective NYCRS, each year of
military service credit  purchased  would  apply  toward  providing  the
member  with  a  year  of  benefit  accrual under the particular benefit
formula covering the member.
  In certain circumstances, the member also may be entitled  to  utilize
such  military  service  as  qualifying  service for benefit eligibility
purposes.
  For purposed of this Fiscal Note, it has been assumed that members who
purchase military service in accordance with this  proposed  legislation
would  generally  be  entitled to count such service for benefit accrual
purposes and the purpose of qualifying for benefits.
  MEMBERS IMPACTED: Insofar as this proposed legislation relates to  the
NYCRS,  the  number  of  members who could potentially benefit from this
proposed legislation cannot be readily determined.

A. 513--D                           5

  For illustrative purposes only, a table is  included  in  this  Fiscal
Note  presenting the estimated financial impact per member assuming that
the affected member purchases 1.5 years of service credit as a result of
the enactment of this legislation.
  FINANCIAL IMPACT - OVERVIEW: With respect to an individual member, the
additional  cost  of  this  proposed  legislation  would  depend  on the
member's length of service not  including  the  military  service  being
purchased,  the  years  of military service being purchased, age, salary
history and Plan in which the member participates.
  With respect to employers participating in  the  NYCRS,  the  ultimate
employer  cost  of  this proposed legislation would be determined by the
increase in benefits to be paid, the impact of certain benefits commenc-
ing earlier, shorter working lifetimes  and  the  reduction  in  certain
future member contributions.
  FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: With respect to the NYCRS
and  based  on  the census data and assumptions herein, the enactment of
this proposed legislation would increase  the  Actuarial  Present  Value
("APV")  of  benefits  ("APVB")  by  approximately  $13,400  for NYCERS,
$13,200 for NYCTRS, $8,100 for BERS, $22,900 for POLICE and $26,500  for
FIRE per year of service credit purchased as of June 30, 2014.
  In  addition,  with  respect  to  the  NYCRS, the APV of future member
contributions (primarily attributable to the payments by members of 3.0%
of salary who first joined prior to April 1,  2012)  would  increase  by
approximately  $2,100  for  NYCERS,  $2,300 for NYCTRS, $1,300 for BERS,
$3,300 for POLICE and  $3,400  for  FIRE  per  year  of  service  credit
purchased as of June 30, 2014.
  Consequently, with respect to the NYCRS, the APV of net future employ-
er  contributions  would  increase  by approximately $11,300 for NYCERS,
$10,900 for NYCTRS, $6,800 for BERS, $19,600 for POLICE and $23,100  for
FIRE per year of service credit purchased as of June 30, 2014.
  FINANCIAL  IMPACT  -  ADDITIONAL  EMPLOYER  COSTS:  Enactment  of this
proposed legislation would increase employer costs, where  such  amounts
depend on the number of members affected and upon the amount of military
service  being  credited  as well as other characteristics including the
age, salary history and Plan in which the member participates.
  With respect to the NYCRS, based on the  Actuary's  actuarial  assump-
tions  and  methods in effect as of June 30, 2013, the enactment of this
proposed legislation is estimated to increase annual employer  costs  by
approximately  $1,300  for  NYCERS,  $1,300  for  NYCTRS, $800 for BERS,
$2,300 for POLICE and  $2,700  for  FIRE  per  year  of  service  credit
purchased.
  The  real  cost of the enactment of this proposed legislation would be
the additional benefits paid.
  FINANCIAL IMPACT - ADDITIONAL EMPLOYER CONTRIBUTIONS: With respect  to
the  NYCRS,  increases  in employer contributions would depend upon when
the members purchase the military  service  permitted  by  the  proposed
legislation  and  such  service  is credited to their records, but would
ultimately be comparable to the increases in employer costs.
  FINANCIAL IMPACT - SUMMARY: The following table summarizes  the  esti-
mated  financial impact of this proposed legislation on the NYCRS assum-
ing one member in each System is eligible and each purchases  1.5  years
of service:

  Estimated Financial Impact to Allow Members of the NYCRS To Purchase
      Certain Years of Military Service Credit as of June 30, 2014

A. 513--D                           6

 (Assumes One Member in Each System Purchases 1.5 Years of Service Each)

                              ($ Thousands)
                                                     Estimated
                                   Additional        Additional
                 Additional       APV of Future        Annual
Retirement         APV of           Employer          Employer
  System          Benefits        Contributions{1}    Costs{2}

NYCERS            $20.16            $16.95             $2.01
NYCTRS             19.84             16.40              1.94
BERS               12.08             10.16              1.20
POLICE             34.29             29.41              3.48
FIRE               39.80             34.60              4.09

  {1}  Equals  increase  in  APVB minus increase in APV of future member
contributions
  {2} Estimated Additional Annual Employer Costs are determined  without
regard  to the funded status of the Retirement Systems and represent the
best estimates of the ultimate annual financial burden of  the  proposed
legislation  and  assume  that  any  additional  APV  of Future Employer
Contributions, as they arise, are amortized as actuarial losses over  15
years  (14 payments). Estimated Additional Annual Employer Contributions
would ultimately approximate estimated Additional Annual Employer Costs.

  If enacted during the 2014 Legislative Session and if  these  affected
members and their amount of military service being credited were identi-
fied  on  or  before  June  30, 2014, this proposed legislation would be
expected to increase employer contributions, if any, to the NYCRS begin-
ning Fiscal Year 2016.
  OTHER COSTS: The enactment of this proposed legislation  would  result
in  some administrative expenses for the NYCRS and costs for Other Post-
Employment Benefits ("OPEB").
  CENSUS DATA: The census data used for estimates of APV of benefits and
employer contributions presented herein are the active members  included
in  the  Preliminary June 30, 2013 (Lag) actuarial valuations of NYCERS,
NYCTRS, BERS, POLICE and FIRE used to determine the  Preliminary  Fiscal
Year 2015 employer contributions.
  ACTUARIAL  ASSUMPTIONS AND METHODS: The additional APV of benefits and
employer contributions presented herein have been estimated as  of  June
30,  2014  on  a  hypothetical basis for illustrative purposes with each
eligible member purchasing 1.5 years of military service.
  As benefiting from the provisions  of  this  proposed  legislation  is
dependent  upon  actions  by  Plan members and the timing and amounts of
military service to be purchased are unknown, the financial impact would
likely be realized upon receipt by the Actuary of updated service credit
information.
  Consequently, changes in employer contributions  have  been  estimated
assuming  the increase in the APV of Future Employer Contributions would
be financed over a time period comparable to  that  used  for  actuarial
gains  and  losses under the Entry Age Actuarial Cost Method. Using this
approach, the Additional APV of Future Employer Contributions  would  be
amortized  over  a closed 15-year period (14 payments under One-Year Lag
Methodology) using level dollar payments.
  ECONOMIC VALUES OF BENEFITS: The actuarial assumptions used to  deter-
mine  the financial impact of the proposed legislation discussed in this

A. 513--D                           7

Fiscal Note are those appropriate for budgetary models  and  determining
annual employer contributions to the NYCRS.
  However,  the  economic  assumptions  that  are  used  for determining
employer contributions do not develop risk-adjusted, economic values  of
benefits.   Such risk-adjusted, economic values of benefits would likely
differ significantly from those developed by the budgetary models.
  STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the  Chief
Actuary  for  the New York City Retirement Systems. I am a Fellow of the
Society of Actuaries and a Member of the American Academy of  Actuaries.
I  meet the Qualification Standards of the American Academy of Actuaries
to render the actuarial opinion contained herein.
  FISCAL NOTE IDENTIFICATION: This estimate is  intended  for  use  only
during  the  2014  Legislative Session. It is Fiscal Note 2014-20, dated
May 7, 2014 prepared by the Chief Actuary of the New York  City  Retire-
ment Systems.