Bill S6820-2013

Relates to supplemental military retirement allowances for members of public retirement systems of the state

Relates to supplemental military retirement allowances for members of public retirement systems of the state.

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  • Mar 13, 2014: REFERRED TO CIVIL SERVICE AND PENSIONS

Memo

BILL NUMBER:S6820

TITLE OF BILL: An act to amend the retirement and social security law, the education law and the administrative code of the city of New York, in relation to supplemental military retirement allowances for members of public retirement systems of the state

PURPOSE: This bill intends to provide veterans who have retired from public service in the state with a veterans pension benefit similar to that which active veteran public employees are entitled to receive.

SUMMARY OF PROVISIONS:

This bill would: 1. Provide that a member of a public retirement system of the State of New York who retired prior to December twenty-first, nineteen hundred ninety-eight may make application to the retirement system for a supplemental military allowance;

2. Apply to persons who meet the eligibility requirements of the veteran's service credit buy back law;

3. Provide a supplemental military allowance equal to .25% for each month of military service of such person, to a maximum of 36 months;

4. Provide that the supplemental military allowance shall apply to the first $15,000, prior to optional modification, of the retired person; and

5. Require the application for the supplemental military allowance be made no later than December 31, 2014.

EXISTING LAW: Chapter 548 of the Laws of 2000 permits veterans in active public service to have up to three years of military service credit added to their retirement service. There is no provision to allow public retirees to receive a commensurate benefit. This legislation provides that benefit.

JUSTIFICATION: The Veterans Service Credit of 2000 permitted active military public employees who served in the military during specific military conflict to purchase up to three years retirement credit for that military service. This was the first opportunity veterans had to include their military service in their public retirement plan since 1976.

Many Korean veterans were not eligible for that 1976 buy back law. Vietnam veterans were just entering public service at that time. In the ensuring years, many of these veterans provided years of dedicated public service arid retired without the ability to add military credit to their retirement. Current employees now have that ability.

It is unfair to ignore the service provided by veterans to our state and country now that active employees can receive this benefit. This bill overcomes that injustice by providing retired veterans with a comparable supplemental military allowance.

LEGISLATIVE HISTORY: 2008: A.6805-A Towns Amended and recommit to Governmental Employees Committee 2007: A6695 Towns Governmental

Employees Committee 2006: A5472-A Towns Governmental Employees Committee 2005: A5472 Towns Governmental Employees Committee 2004: A8374A Tocci Governmental Employees Committee 2003: A8374 Tocci Reported to Ways and Means Committee 2002: A9839 Tocci Passed Assembly 2001: A4246 Vitaliano Passed Assembly 2000: A11501 Vitaliano Passed Assembly

FISCAL IMPLICATIONS: See fiscal notes attached

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6820 IN SENATE March 13, 2014 ___________
Introduced by Sen. LARKIN -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the retirement and social security law, the education law and the administrative code of the city of New York, in relation to supplemental military retirement allowances for members of public retirement systems of the state 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 8-a to read as follows: 8-A. A PERSON WHO RETIRED PRIOR TO DECEMBER TWENTY-FIRST, NINETEEN HUNDRED NINETY-EIGHT AND WHO WOULD HAVE BEEN ENTITLED TO THE PROVISIONS OF THIS SECTION, MAY MAKE APPLICATION TO SUCH RETIREMENT SYSTEM NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN FOR A SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE PURSUANT TO THIS SUBDIVISION. THE SUPPLE- MENTAL RETIREMENT ALLOWANCE PROVIDED BY THIS SUBDIVISION SHALL BE IN LIEU OF ANY BENEFIT OTHERWISE PROVIDED PURSUANT TO THIS SECTION AND ANY CREDIT GRANTED FOR MILITARY SERVICE WITH ANY RETIREMENT SYSTEM OF THIS STATE PURSUANT TO ANY OTHER SECTION OF LAW. UPON RECEIPT OF AN APPLICA- TION, THE RETIREMENT SYSTEM SHALL DETERMINE THE AMOUNT OF SERVICE CREDIT SUCH PERSON WOULD HAVE BEEN ENTITLED TO RECEIVE PURSUANT TO SUBDIVISIONS ONE AND TWO OF THIS SECTION, SUBJECT TO THE LIMITATIONS CONTAINED IN THIS SECTION. THE SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL EQUAL THE RETIREMENT ALLOWANCE OF SUCH PERSON, COMPUTED WITHOUT OPTIONAL MODIFICATION AND NOT TO EXCEED FIFTEEN THOUSAND DOLLARS, MULTIPLIED BY TWENTY-FIVE ONE HUNDREDTHS OF ONE PERCENT PER MONTH OF THE SERVICE CRED- IT AS DETERMINED PURSUANT TO THIS SUBDIVISION. ONE-TWELFTH OF THE SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL BE ADDED TO THE RETIRE- MENT ALLOWANCE OF SUCH PERSON EACH MONTH. THE BENEFIT PAYABLE PURSUANT TO THIS SECTION SHALL COMMENCE ON THE NEXT RETIREMENT ALLOWANCE PAYABLE AT LEAST THIRTY DAYS AFTER THE RECEIPT OF AN APPLICATION FROM SUCH PERSON. FOR THE PURPOSES OF THIS SUBDIVISION, RETIREMENT ALLOWANCE SHALL EXCLUDE ANY ANNUITY DERIVED FROM VOLUNTARY CONTRIBUTIONS MADE BY THE INDIVIDUAL, EXCEPT THOSE MADE PURSUANT TO ELECTIONS UNDER SUBDIVISION
ONE OF SECTION FIVE HUNDRED ELEVEN-A OR PARAGRAPH C OF SUBDIVISION THREE OF SECTION FIVE HUNDRED SIXTEEN OF THE EDUCATION LAW, BUT SHALL INCLUDE ANY COST OF LIVING ADJUSTMENT DERIVED FROM SECTIONS SEVENTY-EIGHT-A AND THREE HUNDRED SEVENTY-EIGHT-A OF THIS CHAPTER OR SECTION FIVE HUNDRED THIRTY-TWO-A OF THE EDUCATION LAW, AS APPLICABLE. THE BENEFIT PAYABLE PURSUANT TO THIS SUBDIVISION SHALL BE PAYABLE FOR THE LIFE OF THE RETIRED MEMBER ONLY, EXCEPT THAT THE SURVIVING SPOUSE OF A DECEASED MEMBER WHO RETIRED UNDER AN OPTION PROVIDING A BENEFIT TO BE CONTINUED FOR LIFE TO THE SURVIVING SPOUSE AFTER THE DEATH OF THE MEMBER SHALL BE ENTITLED TO RECEIVE FIFTY PERCENT OF THE MONTHLY BENEFIT THAT THE RETIRED MEMBER WOULD BE RECEIVING PURSUANT TO THIS SUBDIVISION, IF LIVING, COMMENCING WITH THE NEXT RETIREMENT ALLOWANCE PAYABLE AT LEAST THIRTY DAYS AFTER RECEIPT OF AN APPLICATION FROM THE RETIRED MEMBER FOR THE BENEFIT OR PAYABLE AFTER THE DEATH OF THE RETIRED MEMBER. S 2. Subdivision b of section 78-a of the retirement and social secu- rity law, as added by chapter 125 of the laws of 2000, is amended to read as follows: b. Said cost-of-living adjustment shall be a percentage of the annual retirement allowance otherwise payable, computed without optional modification, but including any benefit derived from subdivision f of this section [and], any prior year's cost-of-living adjustment derived from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THIS CHAPTER. Said percentage is set forth in subdivision d of this section. S 3. Subdivision b of section 378-a of the retirement and social secu- rity law, as added by chapter 125 of the laws of 2000, is amended to read as follows: b. Said cost-of-living adjustment shall be a percentage of the annual retirement allowance otherwise payable, computed without optional modification, but including any benefit derived from subdivision f of this section [and], any prior year's cost-of-living adjustment derived from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THIS CHAPTER. Said percentage is set forth in subdivision d of this section. S 4. Subdivision b of section 532-a of the education law, as added by chapter 125 of the laws of 2000, is amended to read as follows: b. Said cost-of-living adjustment shall be a percentage of the annual retirement allowance otherwise payable, computed without optional modification, excluding any annuity derived from voluntary contributions made by members, except those made pursuant to elections under subdivi- sion one of section five hundred eleven-a or paragraph c of subdivision three of section five hundred sixteen of this article, but including any benefit derived from subdivision f of this section [and], any prior year's cost-of-living adjustment derived from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THE RETIREMENT AND SOCIAL SECURITY LAW. Said percentage is set forth in subdivision d of this section. S 5. Subdivision b of section 13-696 of the administrative code of the city of New York, as added by chapter 125 of the laws of 2000, is amended to read as follows: b. Said cost-of-living adjustment shall be a percentage of the annual fixed retirement allowance otherwise payable, computed without optional modification, but including any benefit derived from subdivision f of
this section [and], any prior year's cost-of-living adjustment derived from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY ALLOWANCE DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THE RETIRE- MENT AND SOCIAL SECURITY LAW. Said percentage is set forth in subdivi- sion d of this section. S 6. This act shall take effect immediately. FISCAL NOTE.-- Pursuant to Legislative Law, Section 50: This bill would amend Section 1000 of the Retirement and Social Secu- rity Law to give veterans who retired prior to December 21, 1998 or the surviving spouse of such a retired veteran who chose a continued life benefit to the spouse, a supplemental pension equal to their first $15,000 of single life allowance multiplied by 3% per year for up to three (3) years of such service credit for military service performed during certain periods of military conflicts for certain retirees of public retirement systems in New York State. Retirees who have already received credit in public retirement systems other than those in New York State will be allowed to receive credit for these same years of military service in the New York State and Local Employees' Retirement System (ERS) and the New York State and Local Police and Fire Retirement System (PFRS). The annual allowance will be recalculated as of the date of enactment of this legislation. There would not be any payment required by an affected retiree for such service. Such retiree may make application for such supplemental pension no later than December 31, 2015. The exact number of retirees or surviving spouses that could be affected by this legislation cannot be readily determined. ERS Costs: Pursuant to Section 25 of the Retirement and Social Securi- ty Law, the increased cost to the New York State and Local Employees' Retirement System would be borne entirely by the State of New York and would require an itemized appropriation sufficient to pay the cost of the provision. Once a retiree or surviving spouse applied for this bene- fit a cost will be generated. Every year a cost will be determined (and billed to the state) based on those benefitting from this provision. PFRS Costs: These costs would be shared by the State of New York and the participating employers in 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- 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 6, 2014 and intended for use only during the 2014 Legislative Session, is Fiscal Note No. 2014-74, 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.

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