S3721-2013 - NY Senate Open Legislation - Relates to service credit of certain members of the New York state and local employees' retirement system who obtained credit for service with the Niagara Frontier Transit Metro System, Inc.

Relates to service credit of certain members of the New York state and local employees' retirement system who obtained credit for service with the Niagara Frontier Transit Metro System, Inc.; provides that any retirement or death benefit payable or paid by such retirement system shall be reduced by the amount of the non-forfeitable benefit payable or paid for such service under the Amalgamated Transit Union Local 1342 - Niagara Frontier Transit Metro System Pension Fund.

Sponsor: MAZIARZ / Co-sponsor(s): KENNEDY
Law Section: Retirement

S3721-2013 Actions

Mar 20, 2013: ADVANCED TO THIRD READING
Mar 19, 2013: 2ND REPORT CAL.
Mar 18, 2013: 1ST REPORT CAL.220
Feb 12, 2013: REFERRED TO CIVIL SERVICE AND PENSIONS

S3721-2013 Meetings

Civil Service and Pensions: Mar 18, 2013

S3721-2013 Calendars

S3721-2013 Votes

VOTE: COMMITTEE VOTE: - Civil Service and Pensions - Mar 18, 2013

Ayes (9): Golden, Fuschillo, Lanza, Martins, Ritchie, Savino, Sanders, Addabbo, Dilan
Ayes W/R (2): Hannon, Perkins

S3721-2013 Memo

BILL NUMBER:S3721

TITLE OF BILL:  An act in relation to service credit of  certain members
of the New York state and local employees' retirement system who
obtained credit for service with the Niagara Frontier Transit Metro
System, Inc.

PURPOSE:  To ensure that the proper pension amount is paid by the New
York state and local retirement system to certain members and retirees
of the system.

SUMMARY OF PROVISIONS:

Section 1 of the bill adds a provision that clarifies the payment of
pension benefits to any member or retiree of the New York state and
local employees' retirement system who obtained credit for certain
service with the Niagara Frontier Metro System and who also has a non-
forfeitable benefit for such service under another pension.

Section 2 of the bill is the effective date.

JUSTIFICATION:

At the present time, the pension benefit amount for some members of the
New York state and local employees' retirement system (the "State
Retirement System") is under review due to a non-forfeitable benefit
that these individuals have under another pension. Specifically, some
members and retirees of the State Retirement System, who obtained credit
for service after March 31, 1974 with the Niagara Frontier Metro System,
also have a non-forfeitable benefit for such service under the Amalga-
mated Transit Union Local 1342 - Niagara Frontier Transit Metro System
Pension Fund (the "Amalgamated Transit Union Pension").

The non-forfeitable nature of the Amalgamated Transit Union Pension
benefit has complicated the potential eligibility and calculation of the
pension benefit that these members and retirees of the State Retirement
System rightly deserve. Although the affected individuals completed and
filed the appropriate paperwork at the required time (in some cases,
many years ago), this complication still persists today. By clarifying
that the service provided by these individuals remains eligible for
service with the State Retirement System, this legislation will provide
the security these individuals need (and deserve) to plan their post-re-
tirement lives. Further, this legislation protects the integrity of the
State Retirement System by ensuring that members and retirees have been
paid, and will continue to be paid, the correct pension benefit amounts.

LEGISLATIVE HISTORY: New legislation.

FISCAL IMPLICATIONS:

State revenues will increase to the extent that overpayments made by the
State Retirement System in prior years are recouped.

EFFECTIVE DATE:

This act shall take effect immediately.

S3721-2013 Text

 S T A T E   O F   N E W   Y O R K
 
                                          3721
 2013-2014 Regular Sessions
 I N  SENATE
 February 12, 2013
 
 Introduced  by Sens. MAZIARZ, KENNEDY -- read twice and ordered printed,
 and when printed to be committed to the Committee on Civil Service and
 Pensions
 

AN ACT in relation to service credit of  certain members of the New York
 state and local employees' retirement system who obtained  credit  for
 service with the Niagara Frontier Transit Metro System, Inc.
 

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

 

Section 1. Notwithstanding the provisions of chapter 670 of  the  laws
 of  1996  or  any  other provision of law to the contrary, any member or
 retiree of the New York state and local employees' retirement system who
 obtained credit for service after March 31, 1974 with the Niagara  Fron
 tier Transit Metro System, Inc., and who retains a non-forfeitable bene
 fit  for  such service under the Amalgamated Transit Union Local 1342 -
 Niagara Frontier Transit Metro System Pension Fund shall remain eligible
 for such service with the New York state and local employees' retirement
 system; provided, however, that any retirement or death benefit  payable
 or  paid by such retirement system shall be reduced by the amount of the
 non-forfeitable benefit payable or paid for such service under the Amal
 gamated Transit Union Local  1342  --  Niagara  Frontier  Transit  Metro
 System  Pension  Fund.  For  any person currently receiving a retirement
 allowance, such reduction shall be retroactive to the effective date  of
 retirement.
 

S 2. This act shall take effect immediately.
 FISCAL  NOTE.--This  bill would reduce the retirement or death benefit
 payable or paid by the New York State and  Local  Employees'  Retirement
 System  (NYSLERS)  to  any  member  or  retiree  who obtained credit for
 service after March 31, 1974 with the  Niagara  Frontier  Transit  Metro
 System  who  retains  a  non-forfeitable  benefit with the Niagara Metro
 Pension Fund for such service. The reduction in the benefit from NYSLERS
 will be based on the amount of the non-forfeitable  benefit  payable  or
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD07702-02-3
        S. 3721                             2
 paid  for  such service, for which the affected individuals will receive
 benefits  from  both  retirement  plans.  For  current  retirees,   such
 reduction will be retroactive to the date of retirement.
 If this bill is enacted, there will be no cost to the State or partic
 ipating employers in the NYSLERS.
 Summary of relevant resources:

 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  February  12,  2013  and intended for use only
 during the  2013  Legislative  Session,  is  Fiscal  Note  No.  2013-82,
 prepared  by  the  Actuary  for  the New York State and Local Employees'
 Retirement System.

S3721-2013: Relates to service credit of certain members of the New York state and local employees' retirement system who obtained credit for service with the Niagara Frontier Transit Metro System, Inc.