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A7479 - Supplemental military retirement allowances for members of
public retirement systems of the state.
A07479 Summary:
BILL NO A07479
SAME AS No same as
SPONSOR Benedetto (MS)
COSPNSR Ramos
MLTSPNSR
Amd SS1000, 78-a & 378-a, R & SS L; amd S532-a, Ed L; amd S13-696, NYC Ad Cd
Relates to supplemental military retirement allowances for members of public
retirement systems of the state.
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A07479 Actions:
BILL NO A07479
05/22/2013 referred to governmental employees
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A07479 Memo:
BILL NUMBER:A7479
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 Or General idea Of Bill:
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 Specific 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.
Effects Of Present Law Which This Bill Would Alter:
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.
Prior 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: A8374-A 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 For State And Local Governments:
See fiscal notes attached
Effective Date:
Immediately
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A07479 Text:
S T A T E O F N E W Y O R K
________________________________________________________________________
7479
2013-2014 Regular Sessions
I N A S S E M B L Y
May 22, 2013
___________
Introduced by M. of A. BENEDETTO, RAMOS -- read once and referred to the
Committee on Governmental Employees
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:
1 Section 1. Section 1000 of the retirement and social security law is
2 amended by adding a new subdivision 8-a to read as follows:
3 8-A. A PERSON WHO RETIRED PRIOR TO DECEMBER TWENTY-FIRST, NINETEEN
4 HUNDRED NINETY-EIGHT AND WHO WOULD HAVE BEEN ENTITLED TO THE PROVISIONS
5 OF THIS SECTION, MAY MAKE APPLICATION TO SUCH RETIREMENT SYSTEM NO LATER
6 THAN DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN FOR A SUPPLEMENTAL
7 MILITARY RETIREMENT ALLOWANCE PURSUANT TO THIS SUBDIVISION. THE SUPPLE-
8 MENTAL RETIREMENT ALLOWANCE PROVIDED BY THIS SUBDIVISION SHALL BE IN
9 LIEU OF ANY BENEFIT OTHERWISE PROVIDED PURSUANT TO THIS SECTION AND ANY
10 CREDIT GRANTED FOR MILITARY SERVICE WITH ANY RETIREMENT SYSTEM OF THIS
11 STATE PURSUANT TO ANY OTHER SECTION OF LAW. UPON RECEIPT OF AN APPLICA-
12 TION, THE RETIREMENT SYSTEM SHALL DETERMINE THE AMOUNT OF SERVICE CREDIT
13 SUCH PERSON WOULD HAVE BEEN ENTITLED TO RECEIVE PURSUANT TO SUBDIVISIONS
14 ONE AND TWO OF THIS SECTION, SUBJECT TO THE LIMITATIONS CONTAINED IN
15 THIS SECTION. THE SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL EQUAL
16 THE RETIREMENT ALLOWANCE OF SUCH PERSON, COMPUTED WITHOUT OPTIONAL
17 MODIFICATION AND NOT TO EXCEED FIFTEEN THOUSAND DOLLARS, MULTIPLIED BY
18 TWENTY-FIVE ONE HUNDREDTHS OF ONE PERCENT PER MONTH OF THE SERVICE CRED-
19 IT AS DETERMINED PURSUANT TO THIS SUBDIVISION. ONE-TWELFTH OF THE
20 SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE SHALL BE ADDED TO THE RETIRE-
21 MENT ALLOWANCE OF SUCH PERSON EACH MONTH. THE BENEFIT PAYABLE PURSUANT
22 TO THIS SECTION SHALL COMMENCE ON THE NEXT RETIREMENT ALLOWANCE PAYABLE
23 AT LEAST THIRTY DAYS AFTER THE RECEIPT OF AN APPLICATION FROM SUCH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07946-03-3
A. 7479 2
1 PERSON. FOR THE PURPOSES OF THIS SUBDIVISION, RETIREMENT ALLOWANCE SHALL
2 EXCLUDE ANY ANNUITY DERIVED FROM VOLUNTARY CONTRIBUTIONS MADE BY THE
3 INDIVIDUAL, EXCEPT THOSE MADE PURSUANT TO ELECTIONS UNDER SUBDIVISION
4 ONE OF SECTION FIVE HUNDRED ELEVEN-A OR PARAGRAPH C OF SUBDIVISION THREE
5 OF SECTION FIVE HUNDRED SIXTEEN OF THE EDUCATION LAW, BUT SHALL INCLUDE
6 ANY COST OF LIVING ADJUSTMENT DERIVED FROM SECTIONS SEVENTY-EIGHT-A AND
7 THREE HUNDRED SEVENTY-EIGHT-A OF THIS CHAPTER OR SECTION FIVE HUNDRED
8 THIRTY-TWO-A OF THE EDUCATION LAW, AS APPLICABLE. THE BENEFIT PAYABLE
9 PURSUANT TO THIS SUBDIVISION SHALL BE PAYABLE FOR THE LIFE OF THE
10 RETIRED MEMBER ONLY, EXCEPT THAT THE SURVIVING SPOUSE OF A DECEASED
11 MEMBER WHO RETIRED UNDER AN OPTION PROVIDING A BENEFIT TO BE CONTINUED
12 FOR LIFE TO THE SURVIVING SPOUSE AFTER THE DEATH OF THE MEMBER SHALL BE
13 ENTITLED TO RECEIVE FIFTY PERCENT OF THE MONTHLY BENEFIT THAT THE
14 RETIRED MEMBER WOULD BE RECEIVING PURSUANT TO THIS SUBDIVISION, IF
15 LIVING, COMMENCING WITH THE NEXT RETIREMENT ALLOWANCE PAYABLE AT LEAST
16 THIRTY DAYS AFTER RECEIPT OF AN APPLICATION FROM THE RETIRED MEMBER FOR
17 THE BENEFIT OR PAYABLE AFTER THE DEATH OF THE RETIRED MEMBER.
18 S 2. Subdivision b of section 78-a of the retirement and social secu-
19 rity law, as added by chapter 125 of the laws of 2000, is amended to
20 read as follows:
21 b. Said cost-of-living adjustment shall be a percentage of the annual
22 retirement allowance otherwise payable, computed without optional
23 modification, but including any benefit derived from subdivision f of
24 this section [and], any prior year's cost-of-living adjustment derived
25 from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT
26 ALLOWANCE DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF
27 THIS CHAPTER. Said percentage is set forth in subdivision d of this
28 section.
29 S 3. Subdivision b of section 378-a of the retirement and social secu-
30 rity law, as added by chapter 125 of the laws of 2000, is amended to
31 read as follows:
32 b. Said cost-of-living adjustment shall be a percentage of the annual
33 retirement allowance otherwise payable, computed without optional
34 modification, but including any benefit derived from subdivision f of
35 this section [and], any prior year's cost-of-living adjustment derived
36 from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT
37 ALLOWANCE DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF
38 THIS CHAPTER. Said percentage is set forth in subdivision d of this
39 section.
40 S 4. Subdivision b of section 532-a of the education law, as added by
41 chapter 125 of the laws of 2000, is amended to read as follows:
42 b. Said cost-of-living adjustment shall be a percentage of the annual
43 retirement allowance otherwise payable, computed without optional
44 modification, excluding any annuity derived from voluntary contributions
45 made by members, except those made pursuant to elections under subdivi-
46 sion one of section five hundred eleven-a or paragraph c of subdivision
47 three of section five hundred sixteen of this article, but including any
48 benefit derived from subdivision f of this section [and], any prior
49 year's cost-of-living adjustment derived from this section AND THE
50 AMOUNT OF ANY SUPPLEMENTAL MILITARY RETIREMENT ALLOWANCE DERIVED FROM
51 SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THE RETIREMENT AND SOCIAL
52 SECURITY LAW. Said percentage is set forth in subdivision d of this
53 section.
54 S 5. Subdivision b of section 13-696 of the administrative code of the
55 city of New York, as added by chapter 125 of the laws of 2000, is
56 amended to read as follows:
A. 7479 3
1 b. Said cost-of-living adjustment shall be a percentage of the annual
2 fixed retirement allowance otherwise payable, computed without optional
3 modification, but including any benefit derived from subdivision f of
4 this section [and], any prior year's cost-of-living adjustment derived
5 from this section AND THE AMOUNT OF ANY SUPPLEMENTAL MILITARY ALLOWANCE
6 DERIVED FROM SUBDIVISION EIGHT-A OF SECTION ONE THOUSAND OF THE RETIRE-
7 MENT AND SOCIAL SECURITY LAW. Said percentage is set forth in subdivi-
8 sion d of this section.
9 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,
2014.
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 applies for this bene-
fit a cost will be generated. Every year a cost will be determined (and
billed to the state) based on those benefiting 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:
Data: March 31, 2012 Actuarial Year End File with distributions of
membership and other statistics displayed in the 2012 Report of the
Actuary and 2012 Comprehensive Annual Financial Report.
Assumptions and Methods: 2010, 2011 and 2012 Annual Report to the
Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the
State of New York: Audit and Control.
Market Assets and GASB Disclosures: March 31, 2012 New York State and
Local Retirement System Financial Statements and Supplementary Informa-
tion.
Valuations of Benefit Liabilities and Actuarial Assets: summarized in
the 2012 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 May 9, 2013 and intended for use only during the
2013 Legislative Session, is Fiscal Note No. 2013-91, 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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