Establishes a retirement service credit for volunteer fire or emergency service.
Summary
Bill S07021 aims to amend the retirement and social security law in New York by establishing a retirement service credit for individuals who have served as volunteer firefighters or emergency service personnel. Under this bill, members of public retirement systems can obtain one year of service credit for every five years of volunteer service, with a maximum of three years of credit available. Members must have at least five years of credited service to be eligible for this benefit and are required to pay a fee equivalent to three percent of their compensation for each year of service credit purchased. The bill also stipulates that costs associated with this credit will be shared between the state and local employers participating in the retirement system.
Impact
If enacted, this bill would significantly alter the retirement benefits landscape for volunteer firefighters and emergency service workers in New York. It would enable these individuals to convert their volunteer service into retirement credits, potentially enhancing their financial security upon retirement. This change could encourage more individuals to participate in volunteer emergency services, knowing that their contributions could lead to tangible retirement benefits. The bill is expected to incur additional administrative costs for implementation, and the fiscal implications include a projected past service cost of 22 percent of an affected member's compensation for each year of service credit purchased.
Sentiment
The sentiment surrounding Bill S07021 appears to be positive, as evidenced by the unanimous vote of 7-0 in the Senate Civil Service and Pensions Committee. Supporters argue that the bill recognizes the valuable contributions of volunteer firefighters and emergency service personnel, providing them with an opportunity to enhance their retirement benefits. However, there may be concerns regarding the financial implications for the state and local governments, particularly in terms of the costs associated with implementing the new service credit system.
Contention
Notable points of contention may arise from the potential financial burden this bill could impose on the state and local governments, as they will be responsible for sharing the costs of the additional retirement credits. Some stakeholders may question the sustainability of funding these benefits, especially in light of existing budget constraints. Additionally, there may be discussions about the fairness of allowing volunteer service to count towards retirement credits, particularly in comparison to paid service members.