Authorizes the village of Port Chester to offer an optional twenty-year retirement plan to a certain police officer employed by such village, the official text

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7007
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 18, 2025
                                ___________
 
 Introduced  by  M. of A. OTIS -- read once and referred to the Committee
   on Governmental Employees
 
 AN ACT authorizing the village of Port  Chester  to  offer  an  optional
   twenty-year  retirement  plan  to a certain police officer employed by
   such village
 
   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,
 Michael  Sprague,  a  member  of the New York state and local police and
 fire retirement system, who was appointed as a police officer  with  the
 village of Port Chester on January 7, 2013, and who, through no fault of
 his  own,  failed  to  file  a  timely application to participate in the
 special twenty-year retirement plan contained in section  384-d  of  the
 retirement  and  social  security  law resulting in the crediting of his
 service with the village of Port Chester in the general retirement  plan
 contained  in  section  375-i of such law, shall be given full credit in
 the special twenty-year  retirement  plan  for  such  service  upon  the
 election of the village of Port Chester to assume the additional cost of
 such  service.    Thereafter, Michael Sprague 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 the effect with
 the state comptroller within one year of the effective date of this act.
   § 2. All employer past service costs associated with implementing  the
 provisions of this act shall be borne by the village of Port Chester and
 may be amortized over a ten-year period.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  allow  the  Village  of  Port Chester to reopen the
 provisions of section 384-d of the Retirement and  Social  Security  Law
 for police officer Michael Sprague.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06920-02-5
 A. 7007                             2
 
   If this bill is enacted during the 2025 Legislative Session, we antic-
 ipate  that  there  will  be an increase of approximately $21,000 in the
 annual contributions of the Village of Port Chester for the fiscal  year
 ending  March 31, 2026. In future years this cost will vary as the bill-
 ing rates and salary of Michael Sprague change.
   In addition to the annual contributions discussed above, there will be
 an  immediate  past service cost of approximately $345,000 which will be
 borne by the Village of Port Chester as a one-time payment.  This  esti-
 mate  assumes  that  payment  will  be  made on February 1, 2026. If the
 Village of Port Chester elects to amortize  this  cost  over  a  10-year
 period, the cost for the first year including interest would be $44,100.
   Summary of relevant resources:
   Membership  data as of March 31, 2024 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2024 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2024  Report  of the Actuary and the 2024 Annual Comprehensive Financial
 Report.  The actuarial assumptions and methods used are described in the
 2024 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, 2024 New York State and Local Retirement System Financial Statements
 and Supplementary Information.
   This  fiscal note does not constitute a legal opinion on the viability
 of the proposed change nor is it intended to serve as a  substitute  for
 the professional judgment of an attorney.
   This  estimate,  dated  February  3,  2025,  and intended for use only
 during the 2025 Legislative Session, is  Fiscal  Note  No.  2025-42.  As
 Chief  Actuary  of  the  New  York State and Local Retirement System, I,
 Aaron Schottin Young, hereby certify that this  analysis  complies  with
 applicable  Actuarial  Standards  of  Practice  as  well  as the Code of
 Professional Conduct and Qualification Standards for  Actuaries  Issuing
 Statements of Actuarial Opinion of the American Academy of Actuaries, of
 which I am a member.