Bill S5676B-2013

Authorizes Joel Lochner to participate in the optional twenty year retirement system

Authorizes Joel Lochner to participate in the optional twenty year retirement plan.

Details

Actions

  • Jun 16, 2014: SUBSTITUTED BY A7478B
  • Jun 2, 2014: ADVANCED TO THIRD READING
  • May 29, 2014: 2ND REPORT CAL.
  • May 28, 2014: 1ST REPORT CAL.988
  • Mar 26, 2014: PRINT NUMBER 5676B
  • Mar 26, 2014: AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
  • Jan 8, 2014: REFERRED TO CIVIL SERVICE AND PENSIONS
  • Jun 6, 2013: PRINT NUMBER 5676A
  • Jun 6, 2013: AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
  • Jun 3, 2013: REFERRED TO CIVIL SERVICE AND PENSIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Civil Service and Pensions - May 28, 2014
Ayes (8): Golden, Lanza, Martins, Ritchie, Savino, Sanders, Addabbo, Dilan
Ayes W/R (3): Hannon, Maziarz, Perkins

Memo

BILL NUMBER:S5676B

TITLE OF BILL: An act to allow Joel Lochner to join the optional twenty year retirement plan, city of Amsterdam, county of Montgomery

PURPOSE:

Authorizes Joel Lochner to participate in the optional twenty year local police and fire retirement system.

SUMMARY OF PROVISIONS:

Section 1 authorizes the city of Amsterdam and the county of Montgomery to allow Joel Lochner, excluded from the following due to an administrative error, to now elect to be covered by the provisions of section 384-d of the retirement and social security law as a Tier 5 member, and shall be entitled to the full rights and benefits associated with coverage under such section, by filling a request to that effect with the state comptroller on or before December 31, 2014.

Section 2 states that all past service costs associated with implementing the provisions in the act shall be borne by the city of Amsterdam and may be amortized over a period of five years.

Section 3 contains the effective date.

JUSTIFICATION:

Each and every police officer in the city of Amsterdam is automatically placed into retirement plan 384-d. Due to an administrative error at the time of hire, Mr. Lochner was mistakenly entered into the 375-1 retirement option. This bill is intended to correct this error, retroactively.

LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS:

Increase of $3,600 in the annual contributions of the city of Amsterdam for the fiscal year ending March 31, 2015 and an immediate past service cost of $9,400 born by the city of Amsterdam as a one-time payment which is based on the assumption that payment will be made on February 1, 2015. If the past service cost is amortized over five years, the past service costs for the first year including interest, would be approximately $2,200.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5676--B 2013-2014 Regular Sessions IN SENATE June 3, 2013 ___________
Introduced by Sen. TKACZYK -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Civil Service and Pensions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to allow Joel Lochner to join the optional twenty year retirement plan, city of Amsterdam, county of Montgomery THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Notwithstanding any other provision of law to the contrary, the city of Amsterdam, in the county of Montgomery, a participating employer in the New York state and local police and fire retirement system, which previously elected to offer the optional twenty year retirement plan, established pursuant to section 384-d of the retirement and social security law, to police officers employed by such city, is hereby authorized to make participation in such plan available to Joel Lochner, a police officer employed by the city of Amsterdam, who, for reasons not ascribable to his own negligence failed to make a timely application to participate in such optional twenty year retirement plan. The city of Amsterdam may so elect by filing with the state comptroller, on or before December 31, 2014, a resolution of its governing body together with certification that such police officer did not bar himself from participation in such retirement plan. Thereafter, Joel Lochner, may elect to be covered by the provisions of section 384-d of the retirement and social security law as a Tier 5 member, and shall be entitled to the full rights and benefits associated with coverage under such section, by filing a request to that effect with the state comp- troller on or before December 31, 2014.
S 2. All past service costs associated with implementing the provisions of this act shall be borne by the city of Amsterdam and may be amortized over a period of five years. S 3. This act shall take effect immediately. FISCAL NOTE.-- Pursuant to Section 50 of the Legislative Law: This bill will allow the city of Amsterdam to elect to reopen the provisions of Section 384-d of the Retirement and Social Security Law for police officer Joel Lochner. If this bill were enacted, we anticipate that there will be an increase of approximately $3,900 in the annual contributions of the city of Amsterdam for the fiscal year ending March 31, 2015. In future years this cost will vary as the billing rates and salary of police officer Joel Lochner change. In addition to the annual contributions discussed above, there will be an immediate past service cost of approximately $14,300 which would be borne by the city of Amsterdam as a one-time payment. This estimate is based on the assumption that payment will be made on February 1, 2015. If the past service cost is amortized over a period of five (5) years, the past service costs for the first year including interest, would be approximately $3,300. 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- 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. 2014-92, prepared by the Actuary for the New York State and Local Police and Fire Retirement System.

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