S T A T E O F N E W Y O R K
________________________________________________________________________
8933
2009-2010 Regular Sessions
I N A S S E M B L Y
June 16, 2009
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees
AN ACT to amend the administrative code of the city of New York, in
relation to the rate of regular interest used in the actuarial valu-
ation of liabilities for the purpose of calculating contributions to
the New York city employees' retirement system, the New York city
teachers' retirement system, the police pension fund, subchapter two,
the fire department pension fund, subchapter two and the board of
education retirement system of such city by public employers and other
obligers required to make employer contributions to such retirement
systems, and the crediting of special interest and additional interest
to members of such retirement systems, and the allowance of supplemen-
tary interest on the funds of such retirement systems
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 2 of subdivision b of section 13-638.2 of the
administrative code of the city of New York, as amended by chapter 152
of the laws of 2006, is amended to read as follows:
(2) With respect to each retirement system, such rate of interest
shall be as hereinafter set forth in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 8% July 1, 2004 to
June 30, [2009] 2010
NYCTRS 8% July 1, 2004 to
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14397-01-9
A. 8933 2
June 30, [2009] 2010
PPF 8% July 1, 2004 to
June 30, [2009] 2010
FPF 8% July 1, 2004 to
June 30, [2009] 2010
BERS 8% July 1, 2004 to
June 30, [2009] 2010
S 2. Paragraph 2 of subdivision f of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 152 of the
laws of 2006, is amended to read as follows:
(2) Such special interest shall be allowed at the rates and for the
periods set forth below in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 1 1/4% July 1, 2004 to
June 30, [2009] 2010
NYCTRS 1 1/4% July 1, 2004 to
June 30, [2009] 2010
PPF 1 1/4% July 1, 2004 to
June 30, [2009] 2010
FPF 1 1/4% July 1, 2004 to
June 30, [2009] 2010
BERS 1 1/4% July 1, 2004 to
June 30, [2009] 2010
S 3. Paragraph 2 of subdivision g of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 152 of the
laws of 2006, is amended to read as follows:
(2) Such additional interest shall be included at the rates and for
the periods set forth below in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 1 1/4% July 1, 2004 to
June 30, [2009] 2010
NYCTRS 1 1/4% July 1, 2004 to
June 30, [2009] 2010
PPF 1 1/4% July 1, 2004 to
June 30, [2009] 2010
FPF 1 1/4% July 1, 2004 to
June 30, [2009] 2010
BERS 1 1/4% July 1, 2004 to
June 30, [2009] 2010
A. 8933 3
S 4. Paragraph 2 of subdivision i of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 152 of the
laws of 2006, is amended to read as follows:
(2) Such supplementary interest shall be allowed at the rates and for
the periods set forth below in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 1% July 1, 2004 to
June 30, [2009] 2010
NYCTRS 1% July 1, 2004 to
June 30, [2009] 2010
PPF 1% July 1, 2004 to
June 30, [2009] 2010
FPF 1% July 1, 2004 to
June 30, [2009] 2010
BERS 1% July 1, 2004 to
June 30, [2009] 2010
S 5. This act shall take effect July 1, 2009, except that if it shall
have become a law subsequent to such date, this act shall take effect
immediately and shall be deemed to have been in full force and effect on
and after July 1, 2009.
FISCAL NOTE.-- PROVISIONS OF PROPOSED LEGISLATION - OVERVIEW:
The enactment of this proposed legislation (referred to hereafter as
"Interest Rate Extender Legislation") would amend Administrative Code of
the City of New York ("ACNY") Section 13-638.2 to continue for Fiscal
Year 2010 for the five actuarially-funded New York City Retirement
Systems ("NYCRS") the following rates that expire on June 30, 2009:
* The 8.25% per annum rate used to credit interest on Tier I and Tier
II member account balances and Increased-Take-Home-Pay ("ITHP")
Reserves, and
* The 8.0% per annum Actuarial Interest Rate ("AIR") assumption used
to compute employer contributions.
The Effective Date for this proposed Interest Rate Extender Legis-
lation would be July 1, 2009.
FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The continuation for Fiscal
Year 2010 of the same 8.25% per annum rate that was used for Fiscal Year
2009 to credit interest on Tier I and Tier II member contributions and
ITHP Reserves would not change the amount or timing of expected employer
contributions.
The continuation for Fiscal Year 2010 of the AIR assumption of 8.0%
per annum that was used to determine employer contributions to the NYCRS
for Fiscal Year 2009 would not change the expected amount or timing of
employer contributions.
Note: The Actuary anticipates developing proposed changes in actuarial
assumptions and methods to be effective for Fiscal Year 2010 or 2011 but
not until late Fiscal Year 2010 or sometime during Fiscal Year 2011.
The financial impact of implementing those proposed changes in actuar-
ial assumptions and methods can be expected to differ from the financial
A. 8933 4
impact determined using the actuarial assumptions and methods continued
from Fiscal Year 2009.
OTHER COSTS: Enactment of this proposed legislation would not be
expected to produce any additional costs.
STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems. I am a Fellow of the
Society of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification Standards of the American Academy of Actuaries
to render the actuarial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This estimate is intended for use only
during the 2009 Legislative Session. It is Fiscal Note 2009-10, dated
June 9, 2009, prepared by the Chief Actuary for the New York City
Retirement Systems.