S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5545--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions
  -- recommitted to the Committee  on  Civil  Service  and  Pensions  in
  accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to amend the retirement and social security law, in relation to
  eligibility of uniformed personnel of the New York city department  of
  correction for ordinary disability benefits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 507-a of the retirement and social security law  is
amended by adding a new subdivision f to read as follows:
  F.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  LAW, THERE SHALL BE NO
RESTRICTIONS ON THE EARNINGS  FROM  EMPLOYMENT  NOT  IN  PUBLIC  SERVICE
PERMITTED  TO  A  MEMBER OF THE UNIFORMED PERSONNEL OF THE NEW YORK CITY
DEPARTMENT OF CORRECTION WHO:
  1. HAS RETIRED PURSUANT TO THE PROVISIONS OF THIS SECTION; AND
  2. WAS SUBJECT TO THE PROVISIONS OF (I) SUBDIVISION D OF SECTION  FIVE
HUNDRED FOUR OF THIS ARTICLE, (II) SUBDIVISION C OF SECTION FIVE HUNDRED
FOUR-A  OF  THIS ARTICLE, OR (III) SUBDIVISION C OF SECTION FIVE HUNDRED
FOUR-B OF THIS ARTICLE PRIOR TO HIS OR HER RETIREMENT, SUBSEQUENT TO THE
DATE AS OF WHICH HE OR SHE WOULD HAVE BEEN ELIGIBLE FOR SERVICE  RETIRE-
MENT.
  S 2. This act shall take effect immediately.
  FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
  PROVISIONS  OF  PROPOSED  LEGISLATION: This proposed legislation would
amend Retirement and Social Security Law ("RSSL") Section 507-a to add a
new Subdivision f to remove restrictions on the earnings from employment
in the private sector for periods  subsequent  to  the  former  member's
earliest eligibility date for Service Retirement for uniformed personnel
of  the  New York City Department of Correction ("Correction Personnel")
who were members of the  New  York  City  Employees'  Retirement  System

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD10901-02-4

S. 5545--A                          2

("NYCRS")  and  who  have  retired and are receiving Ordinary Disability
benefits ("Correction ODR Retirees").
  The  effective  date  of the proposed legislation would be the date of
enactment.
  IMPACT ON BENEFITS: NYCERS restricts the total Personal Service Income
("PSI") of a Correction ODR Retiree, in a calendar year, resulting  from
all public and private employment.
  If  a Correction ODR Retiree's PSI from all public and private employ-
ment exceeds the NYCERS PSI limitation, then such  retiree's  disability
pension  is  suspended for 12 months. The NYCERS PSI limitation for 2013
was $28,800 and increases each year with the Consumer Price Index.
  If the proposed legislation is enacted, earnings of a  Correction  ODR
Retiree earned subsequent to the date as of which the retiree would have
been  eligible for Service Retirement would no longer be limited in this
manner by the NYCERS.
  It is the understanding of the Actuary that in  lieu  of  such  NYCERS
limitations,  the  limitations  on  PSI or ODR Correction Retirees would
fall back to the restrictions imposed by New York City Charter  ("NYCC")
Section 1117.
  NYCC  Section  1117 limits the sum of the retirement allowance and the
PSI for any ODR Retiree of the  New  York  City  Retirement  Systems  to
$1,800  per  year  from  most  public  employment  within New York State
(including New York City). However, NYCC Section 1117 places  no  limits
on  the  amounts  of  PSI  that may be earned from employment from other
sources.
  FINANCIAL IMPACT - EMPLOYER COSTS: The ultimate cost of a pension plan
is the benefits it pays.
  To the extent NYCERS earnings limitations would have applied in Calen-
dar Years 2014 and later, certain Correction ODR Retirees would have had
their pension temporarily suspended in years subsequent to the  date  as
of  which  the  retiree  would have been eligible for Service Retirement
where PSI exceeded those NYCERS earnings limitations.
  Enactment of legislation would eliminate the decrease in  benefits  to
those  Correction  ODR  Retirees  where  PSI exceeds the NYCERS earnings
limitations.
  As the Actuary believes that few,  if  any,  Correction  ODR  Retirees
currently earn excess PSI that results in a suspension of their Ordinary
Disability benefits, the increase in benefits would be de minimis.
  FINANCIAL  IMPACT:  EMPLOYER  CONTRIBUTIONS:  The  change  in employer
contributions would  depend  upon  the  amount  and  timing  of  pension
payments  that  would  no longer be suspended as a result of this legis-
lation, but would ultimately be comparable to  the  change  in  employer
costs and would be de minimis.
  OTHER  COSTS:  Not  measured  in  this  Fiscal  Note  are any possible
increased administrative costs attributable to enactment of the proposed
legislation.
  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  2014  Legislative Session. It is Fiscal Note 2014-17, dated
April 21, 2014 prepared by the Chief  Actuary  for  the  New  York  City
Employees' Retirement System.