Extends the Tier II provisions to all police officers and firefighters who join a public retirement system on or after July 1, 2009 and prior to July 1, 2011

1 Co-sponsor

• Martin J. Golden

Title of bill

An act to amend the retirement and social security law, in relation to the membership of police officers and firefighters; and creating a task force to examine the benefit structure of all public retirement systems

Purpose

This bill would extend the Tier 2 provisions to all police officers and firefighters who join a public retirement system on or after July 1, 2009 but prior to July 1, 2011 and establish a Task Force.

Summary of provisions

This bill would extend the Tier 2 provisions to all police officers and firefighters who join a public retirement system on or after July 1, 2009 but prior to July 1, 2011 and establish a Task Force to study the cost and alternatives to the current Tier 2. Recommendations shall be completed by January 1, 2009.

Existing law

Current extender expires June 30, 2009.

Justification

Article fourteen of the Retirement and Social Security Law established a uniform retirement plan (Coordinated-Escalator Retirement Plan - COESC) for all public employees in the State of New York and its political subdivisions. However, section 500( c) of that Article provides that if the cost of COESC is at least one percent greater than the cost of another plan available on July 1, 1976, then Article Fourteen shall not apply to the New York State and Local Police and Fire Retirement System. In such event, the provisions of Article Eleven were to continue to be applicable. The effect of the current statutory scheme has been to place police officers and firefighters enrolling in a public retirement system on or after July 31, 1976 under the provisions of Article Eleven. Members who are subject to the provisions of Article Eleven are commonly referred to as "Tier Two" members. These actions were taken to clarify the status of those police officers and firefighters. It is appropriate to extend such Tier 2 status for a period of two years while a Task Force is created to study cost and alternatives.

Legislative history

C 63 of 2007 Veto No.5 of 2009

Fiscal implications

If it is enacted, there would be no resulting additional annual cost to employers of the System. The estimated rates of contribution for the various Tier 2 plans would not increase due to enactment of the bill.

Local fiscal implications

No additional annual cost to employers of the System.

Effective date

Immediately.