Bill S7089-2011

Authorizes persons rendering services to certain development corporations or centers to continue to receive credit in the State and Local Employees Retirement System

Authorizes persons who are members or retirees of the New York State and Local Employees' Retirement System pursuant to administrative agreements between the Jefferson County Industrial Development Agency and certain development corporations or centers to continue to receive credit for service.

Details

Actions

  • Jun 21, 2012: COMMITTED TO RULES
  • Jun 6, 2012: ADVANCED TO THIRD READING
  • Jun 5, 2012: 2ND REPORT CAL.
  • Jun 4, 2012: 1ST REPORT CAL.1010
  • Apr 27, 2012: REFERRED TO CIVIL SERVICE AND PENSIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Civil Service and Pensions - Jun 4, 2012
Ayes (12): Golden, Fuschillo, Hannon, Lanza, Little, Martins, O'Mara, Perkins, Addabbo, Dilan, Savino, Serrano

Memo

BILL NUMBER:S7089

TITLE OF BILL: An act to authorize persons who are members or retirees of the New York State and Local Employees' Retirement System pursuant to administrative agreements between the Jefferson County Industrial Development Agency and certain development corporations or centers to continue to receive credit for service

PURPOSE: This bill authorizes persons rendering services to certain development corporations in Jefferson County to receive credit in the State and Local Employees Retirement System

SUMMARY: Section 1 authorizes persons who are rendering, or have rendered services to certain development corporations in Jefferson County to receive retirement credit for all such service rendered prior to January 1, 2013 provided that all required employer and employee contributions are made to the New York State and Local Employees' Retirement System.

Section 2 states that this act shall take effective immediately.

JUSTIFICATION: Pursuant to a recent ruling from the Comptroller, employees who, in good faith believed they were working for the Jefferson County Industrial Development Authority, and who were contributing to the state pension system - for as much as 13 years in some cases, were determined to be employees of local development corporations and therefore not entitled to retirement credit.

Not only have these individuals have been making contributions to the retirement system in good faith, they have received regular notifications that they were a part of the system, and it is only fair that they should be allowed to keep the pension credits they believed, in good faith they were earning, until the end of 2012. Had these employees not been led to believe they were members of the state retirement system, they would likely have been contributing members of their local retirement system, an option which they cannot now retroactively take advantage of. Restoring the retirement credits of these employees through 2012 is the just and fair action to take.

HISTORY: New bill.

FISCAL IMPACT: None

EFFECTIVE DATE: This act shall take effective immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7089 IN SENATE April 27, 2012 ___________
Introduced by Sen. RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to authorize persons who are members or retirees of the New York State and Local Employees' Retirement System pursuant to administra- tive agreements between the Jefferson County Industrial Development Agency and certain development corporations or centers to continue to receive credit for service 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 contra- ry, any person who is or has been a member of the New York State and Local Employees' Retirement System and is rendering service or has rendered service to the Jefferson County Job Development Corporation, the Jefferson County Local Development Corporation, the Jefferson County Agricultural Development Corporation, the Watertown Industrial Center Local Development Corporation, the Watertown Local Development Corpo- ration, The Economic Development Corporation of the Village of Carthage, or The Carthage Industrial Development Corporation pursuant to adminis- trative service agreements, contract or other arrangements entered into between the Jefferson County Industrial Development Agency and such development corporation shall be eligible to receive and retain credit for service previously granted by the retirement system for all such service rendered prior to January 1, 2013, provided, however, that the Jefferson County Industrial Development Agency and the person who is rendering or has rendered service to the Jefferson County Job Develop- ment Corporation, the Jefferson County Local Development Corporation, the Jefferson County Agricultural Development Corporation, the Watertown Industrial Center Local Development Corporation, the Watertown Local Development Corporation, The Economic Development Corporation of the Village of Carthage, or The Carthage Industrial Development Corporation shall make all required employer and employee contributions to the New York State and Local Employees' Retirement System. S 2. This act shall take effect immediately.
FISCAL NOTE.--This bill will allow current and retired employees of the Jefferson County Industrial Development Agency (JCIDA) to retain service credit and membership status and obtain additional service cred- it through December 31, 2012 in the New York State and Local Employees' Retirement System (ERS) based upon services rendered to the Jefferson County Job Development Corporation, the Jefferson County Local Develop- ment Corporation, the Jefferson County Agricultural Development Corpo- ration, the Watertown Industrial Center Local Development Corporation, the Watertown Local Development Corporation, The Economic Development Corporation of the Village of Carthage or The Carthage Industrial Devel- opment Corporation pursuant to arrangements entered into with the JCIDA. The JCIDA has paid into the ERS for all such service on behalf of these individuals. If this bill is enacted, there would be no additional annual costs. 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 April 25, 2012, and intended for use only during the 2012 Legislative Session, is Fiscal Note No. 2012-137, prepared by the Actuary for the New York State and Local Employees' Retirement System.

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