S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7756

                            I N  S E N A T E

                              June 5, 2014
                               ___________

Introduced  by  Sen.  GOLDEN -- 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, in relation to a
  lump sum payment at retirement

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The opening paragraph of section 1100 of the retirement and
social  security  law,  as  added by chapter 735 of the laws of 2006, is
amended to read as follows:
  Certain eligible members of the New York state and  local  police  and
fire retirement system, AND SHERIFFS, UNDERSHERIFFS, DEPUTY SHERIFFS AND
CORRECTION  OFFICERS,  WHO  ARE  EMPLOYED  IN  A  COUNTY  WHICH MAKES AN
ELECTION PURSUANT TO THIS SECTION, may elect an optional form of retire-
ment pursuant to the terms of this article that provides for  a  partial
lump  sum  at  retirement with a reduced service retirement allowance as
hereinafter provided:
  S 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would allow any county  to  elect  to  allow  its  sheriffs,
undersheriffs,  deputy  sheriffs  and correction officers who file for a
service retirement to elect an optional form of retirement  which  would
provide  for  a  partial  lump  sum payment at retirement, and a smaller
annual retirement allowance thereafter.  Such  lump  sum  shall  not  be
eligible  for  any  cost  of  living adjustments. A member who files for
service retirement after being eligible to retire for 1, 2, 3, 4 or 5 or
more years shall be eligible to receive a partial lump sum of up to  5%,
10%,  15%, 20% or 25%, respectively, of the present value of their actu-
arially determined retirement allowance and a smaller annual  retirement
allowance thereafter.
  If  this  bill is enacted, there would be administrative costs associ-
ated with redesigned estimate and option forms. There would not be costs
associated with the lump sum payment options  since  payments  would  be
determined  on  an actuarially equivalent basis. Should future proposals

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15400-01-4
              

S. 7756                             2

exceed 25%, further analysis will  be  necessary  to  determine  whether
there may be costs due to adverse selection.
  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  May 15, 2014, and intended for use only during
the 2014 Legislative Session, is Fiscal Note No. 2014-133,  prepared  by
the  Actuary  for  the  New  York  State and Local Employees' Retirement
System.