[ ] is old law to be omitted.
LBD15792-01-8
A. 10696 2
participant in the twenty-year retirement program for captains and above
or otherwise, except that, [upon the participant's separation from city
service as a result of retirement,] a surplus of such additional member
contributions that are paid into the retirement system's contingent
reserve fund may be used for the sole purpose of offsetting a deficit of
basic member contributions.
§ 3. Subparagraph (i) of paragraph 9 of subdivision e of section 504-d
of the retirement and social security law, as amended by chapter 467 of
the laws of 2017, is amended to read as follows:
(i) All additional member contributions required by this subdivision
(and any interest thereon) which are received by the retirement system
of which the participant is a member shall be paid into its contingent
reserve fund and shall not for any purpose be deemed to be member
contributions or accumulated contributions of a member under section
five hundred seventeen of this article or otherwise while he or she is a
participant in the twenty-year retirement program or otherwise, except
that, [upon the participant's separation from city service as a result
of retirement,] a surplus of such additional member contributions that
are paid into the retirement system's contingent reserve fund may be
used for the sole purpose of offsetting a deficit of basic member
contributions.
§ 4. Subdivision d of section 517 of the retirement and social securi-
ty law, as amended by chapter 467 of the laws of 2017, is amended to
read as follows:
d. Notwithstanding any other provision of this article, a member shall
be entitled to withdraw any excess contributions within six months of
becoming subject to this article. Thereafter, such contributions, and
interest thereon, may only be withdrawn upon separation from service.
Upon retirement, such excess contributions, and any interest thereon,
may be withdrawn in a single lump sum, or at the election of the member
may be paid as an annuity under an option authorized pursuant to section
five hundred fourteen of this article[, or at the election of the
participant]. THE RETIREMENT SYSTEM may [be used] AT ANY TIME USE ANY
SUCH EXCESS CONTRIBUTIONS to offset a deficit of additional member
contributions as required pursuant to sections five hundred four-a, five
hundred four-b, and five hundred four-d of this article. The use of
basic member contributions to offset a deficit of additional member
contributions does not affect the contributions' tax designation pursu-
ant to section 414(h) of the Internal Revenue Code.
§ 5. Subparagraph (i) of paragraph 8 of subdivision e of section 604-a
of the retirement and social security law, as amended by chapter 467 of
the laws of 2017, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon)
shall be paid into the contingent reserve fund of the retirement system
of which the participant is a member and shall not for any purpose be
deemed to be member contributions or accumulated contributions of a
member under section six hundred thirteen of this article or otherwise
while he or she is a participant in the twenty-year retirement program
or otherwise, except that, [upon the participant's separation from city
service as a result of retirement,] a surplus of such additional member
contributions that are paid into the retirement system's contingent
reserve fund may be used for the sole purpose of offsetting a deficit of
basic member contributions.
§ 6. Subparagraph (i) of paragraph 8 of subdivision e of section 604-b
of the retirement and social security law, as amended by chapter 467 of
the laws of 2017, is amended to read as follows:
A. 10696 3
(i) Such additional member contributions (and any interest thereon)
shall be paid into the contingent reserve fund of the retirement system
of which the participant is a member and shall not for any purpose be
deemed to be member contributions or accumulated contributions of a
member under section six hundred thirteen of this article or otherwise
while he or she is a participant in the twenty-five-year and age fifty-
five retirement program or otherwise, except that, [upon the partic-
ipant's separation from city service as a result of retirement,] a
surplus of such additional member contributions that are paid into the
retirement system's contingent reserve fund may be used for the sole
purpose of offsetting a deficit of basic member contributions.
§ 7. Subparagraph (i) of paragraph 7 of subdivision d of section 604-c
of the retirement and social security law, as amended by section 7 of
chapter 467 of the laws of 2017, is amended to read as follows:
(i) All additional member contributions required by this subdivision
(and any interest paid thereon) which are received by the retirement
system of which the participant is a member shall be paid into its
contingent reserve fund and shall not for any purpose be deemed to be
member contributions or accumulated contributions of a member under
section six hundred thirteen of this article or otherwise while he or
she is a participant in the twenty-five-year early retirement program or
otherwise, except that, [upon the participant's separation from city
service as a result of retirement,] a surplus of such additional member
contributions that are paid into the retirement system's contingent
reserve fund may be used for the sole purpose of offsetting a deficit of
basic member contributions.
§ 8. Subparagraph (i) of paragraph 8 of subdivision e of section 604-c
of the retirement and social security law, as amended by section 8 of
chapter 467 of the laws of 2017, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon)
shall be paid into the contingent reserve fund of the retirement system
of which the participant is a member and shall not for any purpose be
deemed to be member contributions or accumulated contributions of a
member under section six hundred thirteen of this article or otherwise
while he or she is a participant in the twenty-year/age fifty retirement
program or otherwise, except that, [upon the participant's separation
from city service as a result of retirement,] a surplus of such addi-
tional member contributions that are paid into the retirement system's
contingent reserve fund may be used for the sole purpose of offsetting a
deficit of basic member contributions.
§ 9. Subparagraph (i) of paragraph 6 of subdivision f of section 604-d
of the retirement and social security law, as amended by chapter 467 of
the laws of 2017, is amended to read as follows:
(i) All additional member contributions required by this subdivision
(and any interest paid thereon) which are received by the retirement
system of which the participant is a member shall be paid into its
contingent reserve fund and shall not for any purpose be deemed to be
member contributions or accumulated contributions of a member under
section six hundred thirteen of this article or otherwise while he or
she is a participant in the age fifty-seven retirement program or other-
wise, except that, [upon the participant's separation from city service
as a result of retirement,] a surplus of such additional member contrib-
utions that are paid into the retirement system's contingent reserve
fund may be used for the sole purpose of offsetting a deficit of basic
member contributions.
A. 10696 4
§ 10. Subparagraph (i) of paragraph 10 of subdivision e of section
604-e of the retirement and social security law, as amended by section
10 of chapter 467 of the laws of 2017, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon)
shall be paid into the contingent reserve fund of the retirement system
of which the participant is a member and shall not for any purpose be
deemed to be member contributions or accumulated contributions of a
member under section six hundred thirteen of this article or otherwise
while he or she is a participant in the twenty-five year retirement
program or otherwise, except that, [upon the participant's separation
from city service as a result of retirement,] a surplus of such addi-
tional member contributions that are paid into the retirement system's
contingent reserve fund may be used for the sole purpose of offsetting a
deficit of basic member contributions.
§ 11. Subparagraph (i) of paragraph 10 of subdivision e of section
604-e of the retirement and social security law, as amended by section
11 of chapter 467 of the laws of 2017, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon)
shall be paid into the contingent reserve fund of the retirement system
of which the participant is a member and shall not for any purpose be
deemed to be member contributions or accumulated contributions of a
member under section six hundred thirteen of this article or otherwise
while he or she is a participant in the twenty-five year retirement
program or otherwise, except that, [upon the participant's separation
from city service as a result of retirement,] a surplus of such addi-
tional member contributions that are paid into the retirement system's
contingent reserve fund may be used for the sole purpose of offsetting a
deficit of basic member contributions.
§ 12. Subparagraph (i) of paragraph 10 of subdivision e of section
604-f of the retirement and social security law, as amended by section
12 of chapter 467 of the laws of 2017, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon)
shall be paid into the contingent reserve fund of the retirement system
of which the participant is a member and shall not for any purpose be
deemed to be member contributions or accumulated contributions of a
member under section six hundred thirteen of this article or otherwise
while he or she is a participant in the twenty-five year retirement
program or otherwise, except that, [upon the participant's separation
from city service as a result of retirement,] a surplus of such addi-
tional member contributions that are paid into the retirement system's
contingent reserve fund may be used for the sole purpose of offsetting a
deficit of basic member contributions.
§ 13. Subparagraph (i) of paragraph 10 of subdivision e of section
604-f of the retirement and social security law, as amended by section
13 of chapter 467 of the laws of 2017, is amended to read as follows:
(i) Such additional member contributions, and any interest thereon,
shall be paid into the contingent reserve fund of the retirement system
of which the participant is a member and shall not for any purpose be
deemed to be member contributions or accumulated contributions of a
member under section six hundred thirteen of this article or otherwise
while he or she is a participant in the twenty-five year retirement
program or otherwise, except that, [upon the participant's separation
from city service as a result of retirement,] a surplus of such addi-
tional member contributions that are paid into the retirement system's
contingent reserve fund may be used for the sole purpose of offsetting a
deficit of basic member contributions.
A. 10696 5
§ 14. Subparagraph (i) of paragraph 10 of subdivision e of section
604-g of the retirement and social security law, as amended by chapter
467 of the laws of 2017, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon)
shall be paid into the contingent reserve fund of the retirement system
of which the participant is a member and shall not for any purpose be
deemed to be member contributions or accumulated contributions of a
member under section six hundred thirteen of this article or otherwise
while he or she is a participant in the twenty-five year/age fifty
retirement program or otherwise, except that, [upon the participant's
separation from city service as a result of retirement,] a surplus of
such additional member contributions that are paid into the retirement
system's contingent reserve fund may be used for the sole purpose of
offsetting a deficit of basic member contributions.
§ 15. Subparagraph (i) of paragraph 10 of subdivision e of section
604-h of the retirement and social security law, as amended by chapter
467 of the laws of 2017, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon)
shall be paid into the contingent reserve fund of the retirement system
of which the participant is a member and shall not for any purpose be
deemed to be member contributions or accumulated contributions of a
member under section six hundred thirteen of this article or otherwise
while he or she is a participant in the twenty-five year retirement
program or otherwise, except that, [upon the participant's separation
from city service as a result of retirement,] a surplus of such addi-
tional member contributions that are paid into the retirement system's
contingent reserve fund may be used for the sole purpose of offsetting a
deficit of basic member contributions.
§ 16. Subdivision h of section 613 of the retirement and social secu-
rity law, as added by chapter 467 of the laws of 2017, is amended to
read as follows:
h. Notwithstanding any other provision of law to the contrary, [upon
the participant's separation from city service as a result of retire-
ment,] a participant may use any excess basic member contributions to
offset a deficit of additional member contributions as required pursuant
to sections six hundred four-a, six hundred four-b, six hundred four-c,
as added by chapter 96 of the laws of 1995, six hundred four-c, as added
by chapter 472 of the laws of 1995, six hundred four-d, six hundred
four-e, as added by chapter 576 of the laws of 2000, six hundred four-e,
as added by chapter 577 of the laws of 2000, six hundred four-f, as
added by chapter 559 of the laws of 2001, six hundred four-f, as added
by chapter 582 of the laws of 2001, six hundred four-g, and six hundred
four-h of this article. The use of basic member contributions to offset
a deficit of additional member contributions does not affect the
contributions' tax designation pursuant to section 414(h) of the Inter-
nal Revenue Code.
§ 17. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This proposed legislation would amend the contribution provisions
applicable to certain New York City Employees' Retirement System
(NYCERS) Special Plans subject to Retirement and Social Security Law
(RSSL) Articles 14 and 15 to allow using any excess basic or additional
member contributions to offset any deficits in such other contribution
account prior to date of retirement.
The Effective Date: Upon enactment.
A. 10696 6
PLANS IMPACTED BY THE PROPOSED LEGISLATION: The proposed legislation
would cover those members of NYCERS who are participants in the follow-
ing special plans requiring the payment of additional member contrib-
utions (Special Plans):
Article 14 Special Plans:
*Twenty-Year Retirement Program for New York City Correction Members
below the Rank of Captain
*Twenty-Year Retirement Program for New York City Correction Members
of the Rank of Captain or above
*Twenty-Year Retirement Program for New York City Correction Members
Article 15 Special Plans:
*Twenty-Year Retirement Program for New York City Sanitation Members
*Twenty-Five-Year and Age Fifty-Five Retirement Program for New York
City Transit Authority Members
*Optional Twenty-Five-Year Early Retirement Program for Certain New
York City Members
*Twenty-Year/Age Fifty Retirement Program for Triborough Bridge and
Tunnel Members
*Age Fifty-Seven Retirement Program for Certain New York City Members
*Twenty-Five Year Retirement Program for Dispatcher Members
*Twenty-Five Year Retirement Program for EMT Members
*Twenty-Five Year Retirement Program for Deputy Sheriff Members
*Twenty-Five Year Retirement Program for Special Officer, Parking
Control Specialist, School Safety Agent, Campus Peace Officer or New
York City Taxi and Limousine Inspector Members
*Twenty-Five Year/Age Fifty Retirement Program for Automotive Members
*Twenty-Five Year Retirement Program for Police Communications Members
IMPACT ON BENEFITS PAYABLE: The proposed legislation would not affect
the benefits payable to participants in the Special Plans. Rather, the
proposed legislation would enable immediate reallocation of excess basic
or additional member contributions to cover any deficits in such
contribution accounts instead of performing such transfer of excess
contributions at the date of retirement as permitted by Chapter 467 of
the Laws of 2017.
FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The enactment of this
proposed legislation would not result in any change in employer contrib-
utions.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Retirement Systems and
Pension Funds. I am a Fellow of the Society of Actuaries, an Enrolled
Actuary under the Employee Retirement Income and Security Act of 1974
(ERISA), a Member of the American Academy of Actuaries, and a Fellow of
the Conference of Consulting Actuaries. I meet the Qualification Stand-
ards of the American Academy of Actuaries to render the actuarial opin-
ion contained herein. To the best of my knowledge, the results
contained herein have been prepared in accordance with generally
accepted actuarial principles and procedures and with the Actuarial
Standards of Practice issued by the Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2018-26 dated May 4,
2018, was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for use only during the
2018 Legislative Session.