Bill S6382-2011

Relates to specifying the time frame under which the village of Southampton shall pay certain retirement costs

Relates to authorizing the village of Southampton, in the county of Suffolk, to offer certain retirement options to police officer Theodore Raffel, Jr.; specifies the time frame under which the village of Southampton shall pay the costs for implementing such retirement option.

Details

Actions

  • Jun 21, 2012: SUBSTITUTED BY A9182
  • May 16, 2012: ADVANCED TO THIRD READING
  • May 15, 2012: 2ND REPORT CAL.
  • May 14, 2012: 1ST REPORT CAL.747
  • Feb 2, 2012: REFERRED TO CIVIL SERVICE AND PENSIONS

Votes

VOTE: COMMITTEE VOTE: - Civil Service and Pensions - May 14, 2012
Ayes (10): Golden, Fuschillo, Hannon, Lanza, Little, Martins, Addabbo, Dilan, Savino, Serrano
Ayes W/R (2): O'Mara, Perkins

Memo

BILL NUMBER:S6382

TITLE OF BILL: An act to amend chapter 365 of the laws of 2011, relating to authorizing the village of Southampton, in the county of Suffolk, to offer certain retirement options to police officer Theodore Raffel, Jr., in relation to specifying the time frame under which the village of Southampton shall pay the costs for implementing such retirement options

PURPOSE: This legislation would allow the village of Southampton to amortize the costs associated with the reopening the optional retirement plan offered under Section 384-d of the Retirement and Social Security to police officer Theodore Raffel, Jr. over a five-year period.

SUMMARY OF PROVISIONS: This bill will allow the village of Southampton, in the county of Suffolk, a participating employer in the New York State and Local Police and Fire Retirement System, to elect to reopen the provisions of Section 384-d of the Retirement and Social Security Law for police officer Theodore Raffel, Jr.

The village may file with the State Comptroller by December 31, 2012 a resolution of its local legislative body together with certification that Theodore Raffel did not bar himself from participation in the retirement plan as a result of his own negligence. Thereafter, Theodore Raffel, Jr. must file a request with the State Comptroller by June 30, 2013 electing coverage under Section 384-d of the Retirement and Social Security Law.

All past service costs associated with the implementation of these provisions shall be borne by the village of Southampton and shall be payable over a period of five years.

JUSTIFICATION: For reasons not ascribable to his own negligence, Theodore Raffel, Jr. who is employed by the village of Southampton Police Department and is an active member of the New York State and Local Police and Fire Retirement currently covered by the provisions of Section 375-i of the Retirement and Social Security Law, failed to make a timely application to participate in the optional retirement plan that is available to police officers employed by the village of Southampton under Section 384-d of the Retirement and Social Security Law. To correct this inequity, Chapter 365 of the Laws of 2011 was enacted at the village's request to allow the reopening of such provisions.

The immediate past service costs associated with the implementation of Chapter 365 of the Laws of 2011 were to be borne by the village of

Southampton as a one-time payment. However, the village inadvertently budgeted for this payback over a five-year period. This chapter amendment is necessary to allow the village of Southampton to amortize the past service cost over a five-year period. Further, this chapter amendment grants Officer Raffel and the village of Southampton an additional year to elect Section 374-d since the filing deadlines contained in Chapter 365 have already expired.

LEGISLATIVE HISTORY: New legislation.

FISCAL IMPLICATIONS: The Actuary of the New York State and Local Police and Fire Retirement System anticipates an increase of approximately $11,100 in the annual contributions of the village of Southampton for the fiscal year ending March 31, 2013. In addition, there will e an immediate past service cost of approximately $185,000 which would be borne by the village of Southampton as a one-time payment based on the assumption that payment will be made on February 1, 2013. If the cost is amortized over a five-year period, the cost for the first year, including interest would be approximately $42,000.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ S. 6382 A. 9182 S E N A T E - A S S E M B L Y February 2, 2012 ___________
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Civil Service and Pensions IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Governmental Employees AN ACT to amend chapter 365 of the laws of 2011, relating to authorizing the village of Southampton, in the county of Suffolk, to offer certain retirement options to police officer Theodore Raffel, Jr., in relation to specifying the time frame under which the village of Southampton shall pay the costs for implementing such retirement options THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Sections 1 and 2 of chapter 365 of the laws of 2011, relating to authorizing the village of Southampton, in the county of Suffolk, to offer certain retirement options to police officer Theodore Raffel, Jr., are amended to read as follows: Section 1. Notwithstanding any other provision of law to the contrary, the village of Southampton, in the county of Suffolk, a participating employer in the New York state and local police and fire retirement system, which previously elected to offer the optional retirement plan established pursuant to section 384-d of the retirement and social secu- rity law to police officers employed by such village, is hereby author- ized to make participation in such plan available to Theodore Raffel, Jr., registration number 0A779322, a police officer employed by the village of Southampton, who, on the effective date of this act is covered under the provisions of section 375-i of the retirement and social security law, and who, for reasons not ascribable to his own negligence failed to make a timely application to participate in such optional retirement plan. The village of Southampton may so elect by filing with the state comptroller, on or before December 31, [2011] 2012, a resolution of its legislative body together with certification that such police officer did not bar himself from participation in such retirement plan as a result of his own negligence. Thereafter, such
police officer may elect to be covered by the provisions of section 384-d of the retirement and social security law, 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 comptroller on or before June 30, [2012] 2013. S 2. All past service costs associated with implementing the provisions of this act shall be borne by the village of Southampton AND SHALL BE PAYABLE OVER A PERIOD OF FIVE YEARS. S 2. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill amends chapter 365 of the laws of 2011 which allows the Village of Southampton to elect to reopen the provisions of Section 384-d of the Retirement and Social Security Law for police officer Theo- dore Raffel if he files an election by December 31, 2011. This amendment will grant officer Raffel and the Village of Southampton an additional year to elect Section 384-d and permit the Village of Southampton to amortize the past service cost over a five year period. If this bill is enacted, and officer Theodore Raffel becomes covered under Section 384-d, we anticipate that there will be an increase of approximately $11,100 in the annual contributions of the Village of Southampton for the fiscal year ending March 31, 2013. In addition to the annual contributions discussed above, there will be an immediate past service cost of approximately $185,000 which would be borne by the Village of Southampton as a one-time payment. This estimate is based on the assumption that payment will be made on February 1, 2013. If this cost is amortized over a five year period, the cost for the first year, including interest would be approximately $42,400. 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 December 16, 2011 and intended for use only during the 2012 Legislative Session, is Fiscal Note No. 2012-36, prepared by the Actuary for the New York State and Local Police and Fire Retirement System.

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