BILL NUMBER: S4972
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the retirement and social security law, in relation to
the calculation of final average salary for certain members of the New
York state and local police and fire retirement system
 
PURPOSE OR GENERAL IDEA OF BILL:
To allow Tier 6 members of the Police and Fire Retirement System to
retain a 1 year final average salary calculation when their locality had
previously adopted such calculation prior to the creation of Tier 6.
 
SUMMARY OF PROVISIONS:
Section one amends Section 1209 of the Retirement and Social Security
Law to add a new subdivision b to provide that Tier 6 members of the
Police and Fire Retirement System (PFRS) whose employer had previously
elected a 1 year final average salary (FAS) pursuant to paragraph d of
subdivision 9 of section 302 of RSSL shall be able to retain such 1 year
FAS for retirement benefits.
Section two provides that this act shall take effect immediately.
 
JUSTIFICATION:
In 1999, the New York State legislature passed Chapter 638 to provide
that municipalities who had negotiated a 1 year final average salary
(FAS) with local employee organizations could choose to offer such 1
year FAS to affected Tier 2 members of the state's Police and Fire
Retirement System (PFRS). The locality must actively opt into the 1 year
FAS by the filing of a local resolution, similar to many other enhanced
retirement benefits such as additional service credit for each year
served beyond 20, or the "Section 384-e" benefit. These benefits are
paid for by unions at the bargaining table, who give up raises and other
opportunities in order to get their local employers to offer enhanced
pensions.
Since the passage of Chapter 638 of 1999, Tiers 3, 4, and 5 were created
with no change to this 1 year FAS for those who had negotiated and paid
for it. When Tier 6 was created in 2012, however, it did not account for
the prior local purchase of this 1 year FAS. The statute has been
applied inconsistently since, at times negating the enhanced FAS and at
times maintaining it. Tier 6 otherwise provides a 5 year FAS for all
members who join PFRS on or after April 1st, 2012.
This bill would clarify that localities who had negotiated and purchased
the 1 year FAS prior to the creation of Tier 6 are able to retain such
FAS for their Tier 6 employees, unless such employees are entitled to a
greater benefit under the 5 year FAS formula. The inconsistent applica-
tion of this benefit unfairly robs Tier 6 PFRS members whose localities
willingly opted into the 1 year FAS of due retirement benefits. It is
the sponsor's hope that this bill will clarify that all localities
purchasing the 1 year FAS shall retain such benefits despite the legis-
lative loopholes of Tier 6.
 
PRIOR LEGISLATIVE HISTORY:
2022: S8401 - Vetoed, Veto Memo No. 116
 
FISCAL IMPLICATIONS:
See bill
 
EFFECTIVE DATE:
Immediate

Statutes affected:
S4972: 1209 retirement and social security law