S 7716: Enacts the "building recruitment and incentives for dedicated government employees (BRIDGE) act" which provides a service credit for members who were previously employed by the federal government.

  
  STATE OF NEW YORK ________________________________________________________________________ 7716 2025-2026 Regular Sessions  IN SENATE May 1, 2025 ___________ Introduced by Sens. RAMOS, CLEARE, COONEY, HOYLMAN-SIGAL -- 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, in relation to enacting the "building recruitment and incentives for dedicated government employees (BRIDGE) act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "building recruitment and incentives for dedicated government 3 employees (BRIDGE) act". 4 § 2. Legislative findings. The legislature finds that in light of 5 recent federal workforce reductions, particularly those orchestrated by 6 the Department of Government Efficiency (DOGE), New York state has an 7 unprecedented opportunity to attract highly skilled professionals with 8 substantial public service experience. The abrupt termination of thou- 9 sands of federal employees, including seasoned scientists, engineers, 10 and public administrators, has not only disrupted federal operations but 11 also released a wealth of talent into the job market. 12 To capitalize on this opportunity and strengthen our state workforce, 13 this legislation proposes allowing current and future New York state 14 employees who have prior federal service to purchase service credit 15 toward their New York state pension for the time they spent in federal 16 employment. By offering a pathway to integrate their prior service into 17 the state pension system, the legislature aims to create a more attrac- 18 tive employment environment that honors the contributions of these 19 public servants and secures their future within our state workforce. 20 § 3. The retirement and social security law is amended by adding a new 21 article 20-A to read as follows: 22 ARTICLE 20-A 23 FEDERAL SERVICE CREDIT EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10790-08-5 
 S. 7716 2 1 Section 1010. Federal service credit. 2 § 1010. Federal service credit. Notwithstanding any law to the contra- 3 ry, a member of the New York state and local employees' retirement 4 system, may be eligible for credit for prior employment by the federal 5 government as hereinafter provided: 6 a. A member, upon application to such retirement system, may obtain a 7 total not to exceed five years of service credit for up to five years of 8 employment by the federal government, if the member was enrolled in a 9 federal defined benefit pension plan. To obtain such credit, a member 10 shall pay such retirement system, for deposit in the fund used to accu- 11 mulate employer contributions, a sum equal to the product of the number 12 of years of federal service being claimed and three percent of such 13 member's compensation earned during the twelve months of credited 14 service immediately preceding the date that the member made application 15 for credit pursuant to this section. If permitted by rule or regulation 16 of the applicable retirement system, the member may pay such member 17 costs by payroll deduction for a period which shall not exceed the time 18 period of federal service to be credited pursuant to this section. In 19 the event the member leaves the employer payroll prior to completion of 20 payment, such member shall forward all remaining required payments to 21 the appropriate retirement system prior to the effective date of retire- 22 ment. If the full amount of such member costs is not paid to the appro- 23 priate retirement system prior to the member's retirement, the amount of 24 service credited shall be proportional to the total amount of the 25 payments made prior to retirement. 26 b. A member must have at least five years of credited service (not 27 including service granted hereunder) to be eligible to receive credit 28 under this section. 29 c. In no event shall the credit granted pursuant to this section, when 30 added to credit granted for federal service with any retirement system 31 of this state pursuant to this or any other provision of law, exceed a 32 total of five years, provided however that this shall be considered 33 separately from, and not count against, credit granted for military 34 service in accordance with section one thousand of this chapter. 35 d. To be eligible to receive credit for federal service under this 36 section, a member shall make application for such credit before the 37 effective date of retirement. 38 e. All costs for service credited to a member pursuant to this 39 section, other than the member costs set forth in subdivision a of this 40 section, shall be paid by the state and all employers which participate 41 in the retirement system in which such member is granted credit. 42 f. 1. Notwithstanding any other provision of law, in the event of 43 death prior to retirement, amounts paid by the member for the purchase 44 of federal service credit pursuant to this section shall be refunded, 45 with interest, to the extent the federal service purchased with such 46 amounts does not produce a greater death benefit than would have been 47 payable had the member not purchased such credit. 48 2. Notwithstanding any other provision of law, in the event of retire- 49 ment, amounts paid by the member for the purchase of federal service 50 credit pursuant to this section shall be refunded, with interest, to the 51 extent the federal service purchased with such amounts does not produce 52 a greater retirement allowance than would have been payable had the 53 member not purchased such credit. 54 g. Anything to the contrary in subdivision a of this section notwith- 55 standing, to obtain such credit, a member who first joins a public 56 retirement system of the state on or after April first, two thousand 
 S. 7716 3 1 twelve shall pay such retirement system, for deposit in the fund used to 2 accumulate employer contributions, a sum equal to the product of the 3 number of years of federal service being claimed and six percent of such 4 member's compensation earned during the twelve months of credited 5 service immediately preceding the date that the member made application 6 for credit pursuant to this section. 7 § 4. Notwithstanding any other provision of law to the contrary, none 8 of the provisions of this act shall be subject to section 25 of the 9 retirement and social security law. 10 § 5. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill would allow members of the New York State and Local Retire- ment System (NYSLRS) Employees' Retirement System (ERS) to obtain up to five years of service credit for employment by the federal government, if the member was enrolled in a federal defined benefit plan. Federal service is interpreted to be distinct from military service. The purchased service is creditable in age-based plans, like Article 15, but not service-based plans where specific criteria limits crediting, like Article 14-B. This bill is not consistent with NYSLRS policy defining credited service as paid employment with a participating employer in NYSLRS. This bill is not consistent with NYSLRS policy prohibiting service credit for any employment that entitles the member to a benefit from the federal government, or any other public or private retirement system in New York State or any other state. To be eligible, members must apply before retirement but not before attaining 5 years of service credit. Members would be required to pay three percent of their most recent compensation (six percent for Tier 6 members) for each year of additional service credit granted by this bill. Member contributions are refunded to the member, with interest, if the purchased service does not result in an improved death or retire- ment benefit. The provisions of Section 25 of the Retirement and Social Security Law shall not apply. If this bill is enacted during the 2025 Legislative Session, it is estimated that the past service cost will average 21% of an affected member's compensation for each year of additional service that is cred- ited. This cost will be reduced by member contributions. All remaining costs will be shared by the State of New York and the local participat- ing employers in ERS. Further, we anticipate significant administrative costs to implement the provisions of this legislation. The exact number of current members as well as future members who could be affected by this legislation cannot be readily determined. Because a member can apply for this service credit at any time prior to retirement, a precise cost cannot be determined until each current or future member applies for the service credit. 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 
 S. 7716 4 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 April 30, 2025, and intended for use only during the 2025 Legislative Session, is Fiscal Note No. 2025-135. As Chief Actuary of the New York State and Local Retirement System, I, Aaron Schottin Young, hereby certify that this analysis complies with applica- ble 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.