Authorizes the town of Inlet to offer a 20 year retirement plan to police officer John Harrington.
TITLE OF BILL: An act to authorize the town of Inlet, in the county of Hamilton to offer an optional twenty year retirement plan to police officer John Harrington
PURPOSE: To authorize the town of Inlet to re-open the optional retirement plan offered under Section 384-d of the Retirement and Social Security law to police officer John Harrington.
SUMMARY OF PROVISIONS: Section 1: The Town of Inlet is authorized to make participation in the twenty year retirement plan established under section 384-d of the retirement and social security law available to police officer John Harrington.
Section 2: All employer costs associated with the implementation of this act will be borne by the Town of Inlet, and past service costs associated with this act shall be paid in ten equal annual installments.
Section 3: Contains the effective date.
JUSTIFICATION: This legislation is necessary to allow the Town of Inlet to make participation in plan 354-d of the New York State and Local Police and Fire Retirement System available to police officer John Harrington, who through no negligence of his own failed to make a timely application to participate in such an optional retirement plan when he transitioned from part to full time in said town.
LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: All costs associated with the implementation of this act shall be borne by the town of Inlet.
LOCAL FISCAL IMPLICATIONS: If the legislation is enacted during the 2012 legislative session, the Town of InIet will bear an annual contribution increase of$3,600 for the fiscal year ending March 31, 2013. The town will pay an additional $5,480 in past service costs annually for ten years.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6394 IN SENATE February 3, 2012 ___________Introduced by Sen. LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to authorize the town of Inlet, in the county of Hamilton to offer an optional twenty year retirement plan to police officer John Harrington 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 town of Inlet, in the county of Hamilton, 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 secu- rity law, to police officers employed by such town, is hereby authorized to make participation in such plan available to sergeant John Harring- ton, a police officer employed by the town of Inlet, who, for reasons not ascribable to his own negligence, failed to make a timely applica- tion to participate in such optional twenty year retirement plan. The town of Inlet may so elect by filing with the state comptroller, on or before December 31, 2013, a resolution of its town board together with certification that such police officer did not bar himself from partic- ipation 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, 2014. S 2. All past costs associated with implementing the provisions of this act shall be borne by the town of Inlet. S 3. This act shall take effect immediately. FISCAL NOTE.--If this legislation is enacted during the 2012 legisla- tive session, we anticipate that there will be an increase of approxi- mately $3,600 in the annual contributions of the Town of Inlet for the fiscal year ending March 31, 2013.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14345-02-2 S. 6394 2 In addition to the annual contributions discussed above, there will be an immediate past service cost of approximately $40,400, which would be borne by the Town of Inlet as a one-time payment. This estimate is based on the assumption that payment will be made on February 1, 2013. If the legislation so specifies and the past service cost were amortized over a period of five (5) or ten (10) years, the past service costs for the first year including interest, would be approximately $9,300 or $5,480 respectively. 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 and Actuarial Assumptions, Codes Rules and Regulations of the State of New York: Audit and Control. Markets 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.