What's happening
This bill allows certain military veterans who retired before May 31, 2017, to apply for a new supplemental military retirement allowance.
Why it matters
Expands eligibility for supplemental benefits. This bill retroactively allows military veterans who retired before May 31, 2017, to access a supplemental military retirement allowance, addressing a previous gap where only more recent retirees could benefit.
Adjusts calculation and integration with existing benefits. The supplemental allowance is capped at $15,000 of the retirement allowance and calculated at 3% per year of eligible military service (up to three years), ensuring the benefit is proportional and coordinated with other military service credits.
Improves survivor benefits and cost-of-living adjustments. Surviving spouses are granted half of the supplemental benefit if the retiree elected a continuing benefit, and the new allowance will count toward future cost-of-living adjustments, potentially increasing long-term financial security for veterans and their families.
No application fee or repayment required. Eligible retirees and their surviving spouses do not need to pay for this supplemental benefit, making it more accessible and removing potential financial barriers for those who served.
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Who cares
Veterans who retired from public retirement systems before May 31, 2017
Eligible retirees could apply by December 31, 2020, for a supplemental pension based on qualifying military service, in place of other military-service benefits or credits.
Surviving spouses of eligible retirees
Spouses covered by a lifetime survivor option would receive half the monthly military supplement the retired member would have received.
State and city public retirement systems
Administrators would determine qualifying military service, pay the supplements and include them in cost-of-living adjustment calculations.
New York State and participating police and fire employers
The fiscal note assigns the Employees’ Retirement System costs entirely to the state and Police and Fire Retirement System costs to the state and participating employers.
Headline styles
Boost Military Retiree Pensions
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 8
History
- Referred to civil service and pensions
- Returned to senate
- Died in assembly
- Referred to governmental employees
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1185
- Committee discharged and committed to rules
- Reported and committed to finance
- Referred to civil service and pensions
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3968
2019-2020 Regular Sessions
IN SENATE
February 22, 2019
Introduced by Sen. BROOKS -- 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, 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 Assembly, do enact as follows:
Section 1. Section 1000 of the retirement and social security law is amended by adding a new subdivision 8-a to read as follows:
8-a. A person who retired prior to May thirty-first, two thousand seventeen and who would have been entitled to the provisions of this section, may make application to such retirement system no later than December thirty-first, two thousand twenty for a supplemental military retirement allowance pursuant to this subdivision. The supplemental retirement allowance provided by this subdivision shall be in lieu of any benefit otherwise provided pursuant to this section and any credit granted for military service with any retirement system of this state pursuant to any other section of law. Upon receipt of an application, the retirement system shall determine the amount of service credit such person would have been entitled to receive pursuant to subdivisions one and two of this section, subject to the limitations contained in this section. The supplemental military retirement allowance shall equal the retirement allowance of such person, computed without optional modification and not to exceed fifteen thousand dollars, multiplied by twentyfive one-hundredths of one percent per month of the service credit as determined pursuant to this subdivision. One-twelfth of the supplemental military retirement allowance shall be added to the retirement allowance of such person each month. The benefit payable pursuant to this section shall commence on the next retirement allowance payable at least thirty days after the receipt of an application from such person.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08018-03-9
S. 3968 2
For the purposes of this subdivision, retirement allowance shall exclude any annuity derived from voluntary contributions made by the individual, except those made pursuant to elections under subdivision one of section five hundred eleven-a or paragraph c of subdivision three of section five hundred sixteen of the education law, but shall include any cost of living adjustment derived from sections seventy-eight-a and three hundred seventy-eight-a of this chapter or section five hundred thirtytwo-a of the education law, as applicable. The benefit payable pursuant to this subdivision shall be payable for the life of the retired member only, except that the surviving spouse of a deceased member who retired under an option providing a benefit to be continued for life to the surviving spouse after the death of the member shall be entitled to receive fifty percent of the monthly benefit that the retired member would be receiving pursuant to this subdivision, if living, commencing with the next retirement allowance payable at least thirty days after receipt of an application from the retired member for the benefit or payable after the death of the retired member.
§ 2. Subdivision b of section 78-a of the retirement and social security law, as added by chapter 125 of the laws of 2000, is amended to read as follows:
b. Said cost-of-living adjustment shall be a percentage of the annual retirement allowance otherwise payable, computed without optional modification, but including any benefit derived from subdivision f of this section [and], any prior year's cost-of-living adjustment derived from this section and the amount of any supplemental military retirement allowance derived from subdivision eight-a of section one thousand of this chapter. Said percentage is set forth in subdivision d of this section.
§ 3. Subdivision b of section 378-a of the retirement and social security law, as added by chapter 125 of the laws of 2000, is amended to read as follows:
b. Said cost-of-living adjustment shall be a percentage of the annual retirement allowance otherwise payable, computed without optional modification, but including any benefit derived from subdivision f of this section [and], any prior year's cost-of-living adjustment derived from this section and the amount of any supplemental military retirement allowance derived from subdivision eight-a of section one thousand of this chapter. Said percentage is set forth in subdivision d of this section.
§ 4. Subdivision b of section 532-a of the education law, as added by chapter 125 of the laws of 2000, is amended to read as follows:
b. Said cost-of-living adjustment shall be a percentage of the annual retirement allowance otherwise payable, computed without optional modification, excluding any annuity derived from voluntary contributions made by members, except those made pursuant to elections under subdivision one of section five hundred eleven-a or paragraph c of subdivision three of section five hundred sixteen of this article, but including any benefit derived from subdivision f of this section [and], any prior year's cost-of-living adjustment derived from this section and the amount of any supplemental military retirement allowance derived from subdivision eight-a of section one thousand of the retirement and social security law. Said percentage is set forth in subdivision d of this section.
§ 5. Subdivision b of section 13-696 of the administrative code of the city of New York, as added by chapter 125 of the laws of 2000, is amended to read as follows:
S. 3968 3
b. Said cost-of-living adjustment shall be a percentage of the annual fixed retirement allowance otherwise payable, computed without optional modification, but including any benefit derived from subdivision f of this section [and], any prior year's cost-of-living adjustment derived from this section and the amount of any supplemental military allowance derived from subdivision eight-a of section one thousand of the retirement and social security law. Said percentage is set forth in subdivision d of this section.
§ 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 May 31, 2017, a supple-
mental pension equal to their first $15,000 of single life allowance
together with any cost of living adjustment, multiplied by 3% per year
for up to three (3) years of such service credit for military service
that would have been eligible if the member retired on or after such
date. The surviving spouse of such a retired veteran who chose a contin-
ued life benefit to the spouse shall receive half of what the deceased
member would have received. There would not be any payment required by
an affected retiree or surviving spouse for this supplemental pension.
Such retiree may make application for the supplemental pension no later
than December 31, 2020 and the payment of the benefit will begin with
the next monthly pension payment payable at least 30 days after receipt
of the application.
The exact number of retirees that could be affected by this legis-
lation 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 applies for this benefit a cost will be
generated, which will be billed to the State.
PFRS Costs: These costs would be shared by the State of New York and
the participating employers in the PFRS.
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, 2018 actuarial valu-
ation. Distributions and other statistics can be found in the 2018
Report of the Actuary and the 2018 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015,
2016, 2017 and 2018 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, 2018
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 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 13, 2019, and intended for use only
during the 2019 Legislative Session, is Fiscal Note No. 2019-77,
prepared by the Actuary for the New York State and Local Retirement
System.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
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 provisions
Section 1. Provide that a member of a public retirement system of the State of New York who retired prior to May thirty-first, two thousand seventeen may make application to the retirement system for a supple- mental military allowance;
Section 2. Applies to persons who meet the eligibility requirements of the veteran's service credit buy back law
Section 3. provides a supplemental military allowance equal to .25% for each month of military service of such person, to a maximum of 36 months
Section 4. provides that the supplemental military allowance shall apply to the first $15,000, prior to optional modification, of the retired person
Section 5. requires the application for the supplemental military allow- ance be made no later than December 31, 2019.
Justification
The Veterans Service Credit Act of 2000 permitted active military public employees who served in the military during specific military conflicts 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 ensuing years, many of these veterans provided years of dedicated public service and 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.
Fiscal implications
See fiscal note attached
Effective date
This act shall take effect immediately after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.