S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10817
 
                           I N  A S S E M B L Y
 
                               May 21, 2018
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Governmental Employees
 
 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.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL: The proposed legislation would amend Retirement and
 Social Security Law (RSSL) Section 507-a by adding a new  subdivision  f
 to  remove  post-retirement  earnings  restrictions  from private sector
 employment for periods after the applicable service retirement eligibil-
 ity date for certain retired uniformed personnel of the  New  York  City
 Department  of  Correction who are receiving certain disability benefits
 from the New York City Employees' Retirement System (NYCERS).
   Effective Date: Upon enactment.
   IMPACT ON BENEFITS: NYCERS restricts the total calendar year  Personal
 Service  Income  (PSI)  resulting from all public and private employment
 for certain retirees, including certain Tier 3 correction  officers  who
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06033-03-8

 A. 10817                            2
 
 receive   disability   retirement  benefits  under  RSSL  Section  507-a
 (Correction Disability Retiree).
   If  a  Correction Disability Retiree's PSI from all public and private
 employment exceeds the NYCERS PSI limitation for the calendar year, then
 such retiree's disability pension is suspended for 12 months. The NYCERS
 PSI limitation for 2016 was $29,900 and increases  each  year  with  the
 Consumer Price Index.
   If  the  proposed  legislation is enacted, Correction Disability Reti-
 rees, who were Tier 3 correction members in the Early Service Retirement
 Benefit Plan for General Members, the Correction Officer 20-year Plan or
 the Correction Captain 20-year Plan, would no longer be subject  to  the
 PSI limitation for private employment earnings after the date they would
 have  been  eligible to receive a service retirement in their respective
 plan.
   For purposes of this fiscal note, it was assumed that Correction Disa-
 bility Retirees would continue to be limited  by  other  post-retirement
 earnings  restrictions such as New York City Charter (NYCC) Section 1117
 and RSSL Section 212.
   NYCC Section 1117 limits the PSI for any NYCERS retiree to $1,800  per
 year  from  most  public employment within New York State (including New
 York City). PSI from those sources that exceeds  $1,800  per  year  will
 result  in  a suspension of the retiree's pension. However, NYCC Section
 1117 places no limits on the amounts of PSI  that  may  be  earned  from
 private  employment.  RSSL  Section  212  limits a retiree to earn up to
 $30,000 per year from post-retirement public employment, notwithstanding
 NYCC Section 1117, if certain conditions are met.
   FINANCIAL IMPACT - EMPLOYER COSTS: The change in employer costs  would
 depend  upon  the  amount  and  timing of pension payments that would no
 longer be suspended due to this legislation.
   To the extent the NYCERS earnings limitation  would  have  applied  in
 Calendar  Years  2018  and  later,  Correction Disability Retirees whose
 post-retirement earnings exceeded the  PSI  limitation  would  have  had
 their  pension  suspended for 12 months in years after the date on which
 they would have become eligible for service retirement.
   Enactment of the legislation would eliminate the reduction in benefits
 to those Correction Disability Retirees whose  PSI  exceeds  the  NYCERS
 earnings  limitation  after  the  date  on  which they would have become
 eligible for service retirement.
   Because few, if any,  Correction  Disability  Retirees'  benefits  are
 suspended  due  to  PSI that exceeds the NYCERS earnings limitation, the
 increase in benefits would likely be de minimis.
   OTHER COSTS: Not  measured  in  this  Fiscal  Note  are  any  possible
 increased administrative costs attributable to enactment of the proposed
 legislation.
   ACTUARIAL  ASSUMPTIONS  AND  METHODS:  The  additional  employer costs
 presented herein have  been  calculated  based  on  the  same  actuarial
 assumptions  and methods in effect for the June 30, 2016 (Lag) actuarial
 valuations used to determine the Preliminary Fiscal Year  2018  employer
 contributions  of  NYCERS. Please note these assumptions and methods are
 subject to change as this valuation is not considered  final  until  the
 end of the Fiscal Year 2018.
   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

 A. 10817                            3
 
 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 actuari-
 al  principles  and procedures and with the Actuarial Standards of Prac-
 tice issued by the Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2018-13 dated  March  29,
 2018,  was  prepared  by  the Chief Actuary for New York City Employees'
 Retirement System. This estimate is intended for  use  only  during  the
 2018 Legislative Session.