S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10875
 
                           I N  A S S E M B L Y
 
                               May 25, 2018
                                ___________
 
 Introduced  by M. of A. ORTIZ -- read once and referred to the Committee
   on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in relation to a
   twenty-five year retirement plan for New York city probation officers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The retirement and social security law is amended by adding
 a new section 604-j to read as follows:
   §  604-J. TWENTY-FIVE YEAR RETIREMENT PLAN FOR NEW YORK CITY PROBATION
 OFFICERS. A. DEFINITIONS. THE FOLLOWING WORDS AND  PHRASES  AS  USED  IN
 THIS  SECTION SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEAN-
 ING IS PLAINLY REQUIRED BY THE CONTEXT.
   1. "PROBATION OFFICER" SHALL MEAN A MEMBER (AS DEFINED IN  SUBDIVISION
 E  OF  SECTION  SIX  HUNDRED ONE OF THIS ARTICLE) WHO IS A PEACE OFFICER
 EMPLOYED BY THE NEW YORK CITY DEPARTMENT OF PROBATION.
   2. "TWENTY-FIVE YEAR RETIREMENT PROGRAM" SHALL MEAN ALL THE TERMS  AND
 CONDITIONS OF THIS SECTION.
   3.  "STARTING  DATE  OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM" SHALL
 MEAN THE EFFECTIVE DATE OF THIS  SECTION,  AS  SUCH  DATE  IS  CERTIFIED
 PURSUANT TO SECTION FORTY-ONE OF THE LEGISLATIVE LAW.
   4. "PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM" SHALL MEAN
 ANY  PROBATION  OFFICER  MEMBER  WHO, UNDER THE APPLICABLE PROVISIONS OF
 SUBDIVISION B OF THIS SECTION, IS ENTITLED TO THE RIGHTS,  BENEFITS  AND
 PRIVILEGES  AND  IS  SUBJECT  TO THE OBLIGATIONS OF THE TWENTY-FIVE YEAR
 RETIREMENT PROGRAM, AS APPLICABLE TO HIM OR HER.
   5. "DISCONTINUED MEMBER" SHALL MEAN A PARTICIPANT IN  THE  TWENTY-FIVE
 YEAR  RETIREMENT  PROGRAM  WHO,  WHILE HE OR SHE WAS A PROBATION OFFICER
 MEMBER, DISCONTINUED SERVICE AS SUCH A MEMBER  AND  HAS  A  RIGHT  TO  A
 DEFERRED VESTED BENEFIT UNDER SUBDIVISION D OF THIS SECTION.
   6.  "ADMINISTRATIVE  CODE"  SHALL  MEAN THE ADMINISTRATIVE CODE OF THE
 CITY OF NEW YORK.
   B. PARTICIPATION IN TWENTY-FIVE YEAR RETIREMENT PROGRAM. 1. SUBJECT TO
 THE PROVISIONS OF PARAGRAPHS SIX AND  SEVEN  OF  THIS  SUBDIVISION,  ANY
 PERSON  WHO  IS  A  PROBATION OFFICER MEMBER ON THE STARTING DATE OF THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD11088-05-8

 A. 10875                            2
 
 TWENTY-FIVE YEAR RETIREMENT PROGRAM AND WHO, AS SUCH A PROBATION OFFICER
 MEMBER OR OTHERWISE, LAST BECAME SUBJECT TO THE PROVISIONS OF THIS ARTI-
 CLE PRIOR TO SUCH STARTING DATE, MAY ELECT TO BECOME  A  PARTICIPANT  IN
 THE  TWENTY-FIVE  YEAR  RETIREMENT PROGRAM BY FILING, WITHIN ONE HUNDRED
 EIGHTY DAYS AFTER THE STARTING DATE OF THE TWENTY-FIVE  YEAR  RETIREMENT
 PROGRAM,  A  DULY  EXECUTED  APPLICATION FOR SUCH PARTICIPATION WITH THE
 RETIREMENT SYSTEM OF WHICH SUCH PERSON IS A MEMBER, PROVIDED HE  OR  SHE
 IS  SUCH  A  PROBATION  OFFICER  MEMBER  ON THE DATE SUCH APPLICATION IS
 FILED.
   2. SUBJECT TO THE PROVISIONS OF  PARAGRAPHS  SIX  AND  SEVEN  OF  THIS
 SUBDIVISION, ANY PERSON WHO BECOMES A PROBATION OFFICER MEMBER AFTER THE
 STARTING  DATE  OF  THE  TWENTY-FIVE YEAR RETIREMENT PROGRAM AND WHO, AS
 SUCH A PROBATION OFFICER MEMBER OR OTHERWISE, LAST BECAME SUBJECT TO THE
 PROVISIONS OF THIS ARTICLE PRIOR TO SUCH STARTING  DATE,  MAY  ELECT  TO
 BECOME  A  PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR RETIREMENT PROGRAM BY
 FILING, WITHIN ONE HUNDRED EIGHTY DAYS AFTER BECOMING SUCH  A  PROBATION
 OFFICER  MEMBER, A DULY EXECUTED APPLICATION FOR SUCH PARTICIPATION WITH
 THE RETIREMENT SYSTEM FOR WHICH SUCH PERSON IS A MEMBER, PROVIDED HE  OR
 SHE  IS  SUCH A PROBATION OFFICER MEMBER ON THE DATE SUCH APPLICATION IS
 FILED.
   3. ANY ELECTION TO BE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
 PROGRAM SHALL BE IRREVOCABLE.
   4. EACH PROBATION OFFICER MEMBER WHO BECOMES SUBJECT  TO  ANY  OF  THE
 PROVISIONS  OF THIS ARTICLE ON OR AFTER THE STARTING DATE OF THE TWENTY-
 FIVE YEAR RETIREMENT PROGRAM SHALL BECOME A PARTICIPANT IN  THE  TWENTY-
 FIVE  YEAR  RETIREMENT  PROGRAM  ON  THE  DATE  HE OR SHE BECOMES SUCH A
 PROBATION OFFICER MEMBER.
   5. WHERE ANY PARTICIPANT IN THE TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM
 SHALL  CEASE TO BE EMPLOYED BY THE CITY OF NEW YORK AS A PROBATION OFFI-
 CER MEMBER, HE OR SHE SHALL CEASE TO BE SUCH A PARTICIPANT  AND,  DURING
 ANY  PERIOD IN WHICH SUCH PERSON IS NOT SO EMPLOYED, HE OR SHE SHALL NOT
 BE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT  PROGRAM  AND  SHALL
 NOT BE ELIGIBLE FOR THE BENEFITS OF SUBDIVISION C OF THIS SECTION.
   6.  WHERE  ANY  PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
 TERMINATES SERVICE AS A PROBATION OFFICER MEMBER  AND  RETURNS  TO  SUCH
 SERVICE  AS  A PROBATION OFFICER MEMBER AT A LATER DATE, HE OR SHE SHALL
 AGAIN BECOME SUCH A PARTICIPANT ON THAT DATE.
   7. NOTWITHSTANDING ANY OTHER PROVISION OF LAW  TO  THE  CONTRARY,  ANY
 PERSON  WHO  IS ELIGIBLE TO ELECT TO BECOME A PARTICIPANT IN THE TWENTY-
 FIVE YEAR RETIREMENT PROGRAM PURSUANT TO PARAGRAPH ONE OR  TWO  OF  THIS
 SUBDIVISION  FOR  THE FULL ONE HUNDRED EIGHTY DAY PERIOD PROVIDED FOR IN
 SUCH APPLICABLE PARAGRAPH AND WHO FAILS TO TIMELY FILE A  DULY  EXECUTED
 APPLICATION FOR SUCH PARTICIPATION WITH THE RETIREMENT SYSTEM, SHALL NOT
 THEREAFTER BE ELIGIBLE TO BECOME A PARTICIPANT IN SUCH PROGRAM.
   C.  SERVICE  RETIREMENT  BENEFITS. 1. A PARTICIPANT IN THE TWENTY-FIVE
 YEAR RETIREMENT PROGRAM:
   (I) WHO HAS COMPLETED TWENTY-FIVE OR MORE YEARS OF  CREDITED  SERVICE;
 AND
   (II)  WHO HAS PAID, BEFORE THE EFFECTIVE DATE OF RETIREMENT, ALL ADDI-
 TIONAL MEMBER CONTRIBUTIONS AND INTEREST (IF ANY) REQUIRED  BY  SUBDIVI-
 SION E OF THIS SECTION; AND
   (III)  WHO  FILES  WITH  THE RETIREMENT SYSTEM OF WHICH HE OR SHE IS A
 MEMBER AN APPLICATION FOR SERVICE RETIREMENT SETTING FORTH AT WHAT TIME,
 NOT LESS THAN THIRTY DAYS SUBSEQUENT TO THE EXECUTION AND FILING  THERE-
 OF, HE OR SHE DESIRES TO BE RETIRED; AND

 A. 10875                            3
 
   (IV)  WHO  SHALL  BE  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
 PROGRAM AT THE TIME SO SPECIFIED FOR HIS OR  HER  RETIREMENT;  SHALL  BE
 RETIRED  PURSUANT  TO  THE  PROVISIONS  OF  THIS SECTION AFFORDING EARLY
 SERVICE RETIREMENT.
   2. (I) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, AND
 SUBJECT  TO  THE  PROVISIONS  OF  PARAGRAPH SIX OF SUBDIVISION E OF THIS
 SECTION, THE EARLY SERVICE RETIREMENT BENEFIT FOR  PARTICIPANTS  IN  THE
 TWENTY-FIVE YEAR RETIREMENT PROGRAM WHO RETIRE PURSUANT TO PARAGRAPH ONE
 OF THIS SUBDIVISION SHALL BE A RETIREMENT ALLOWANCE CONSISTING OF:
   (A)  AN  AMOUNT, ON ACCOUNT OF THE REQUIRED MINIMUM PERIOD OF SERVICE,
 EQUAL TO FIFTY-FIVE PERCENT OF HIS OR HER FINAL AVERAGE SALARY; PLUS
   (B) AN AMOUNT ON ACCOUNT OF CREDITED  SERVICE,  OR  FRACTION  THEREOF,
 BEYOND  SUCH  REQUIRED MINIMUM PERIOD OF SERVICE EQUAL TO ONE AND SEVEN-
 TENTHS PERCENT OF HIS OR HER FINAL SALARY;
   (II)  THE  MAXIMUM  RETIREMENT  ALLOWANCE  COMPUTED  WITHOUT  OPTIONAL
 MODIFICATION  PAYABLE  PURSUANT  TO  SUBPARAGRAPH  (I) OF THIS PARAGRAPH
 SHALL EQUAL THAT PAYABLE UPON COMPLETION OF THIRTY YEARS OF SERVICE.
   D. VESTING. 1.  A  PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR  RETIREMENT
 PROGRAM:
   (I)  WHO  DISCONTINUES  SERVICE  AS  SUCH A PARTICIPANT, OTHER THAN BY
 DEATH OR RETIREMENT; AND
   (II) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK  CITY  REVISED
 PLAN  MEMBER,  WHO PRIOR TO SUCH DISCONTINUANCE, COMPLETED FIVE BUT LESS
 THAN TWENTY-FIVE YEARS OF CREDITED SERVICE OR, IN THE CASE OF A  PARTIC-
 IPANT  WHO  IS  A  NEW  YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
 DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
 ED SERVICE; AND
   (III) WHO, SUBJECT TO THE PROVISIONS OF PARAGRAPH SEVEN OF SUBDIVISION
 E OF THIS SECTION, HAS PAID, PRIOR TO  SUCH  DISCONTINUANCE,  ALL  ADDI-
 TIONAL  MEMBER  CONTRIBUTIONS AND INTEREST (IF ANY) REQUIRED BY SUBDIVI-
 SION E OF THIS SECTION; AND
   (IV) WHO DOES NOT WITHDRAW IN WHOLE OR IN PART HIS OR HER  ACCUMULATED
 MEMBER  CONTRIBUTIONS  PURSUANT  TO SECTION SIX HUNDRED THIRTEEN OF THIS
 ARTICLE UNLESS SUCH PARTICIPANT THEREAFTER RETURNS TO PUBLIC SERVICE AND
 REPAYS THE AMOUNTS SO WITHDRAWN, TOGETHER  WITH  INTEREST,  PURSUANT  TO
 SUCH  SECTION  SIX  HUNDRED  THIRTEEN;  SHALL  BE  ENTITLED TO RECEIVE A
 DEFERRED VESTED BENEFIT AS PROVIDED IN THIS SUBDIVISION.
   2. (I) UPON SUCH DISCONTINUANCE UNDER THE CONDITIONS AND IN COMPLIANCE
 WITH THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION, SUCH  DEFERRED
 VESTED BENEFIT SHALL VEST AUTOMATICALLY.
   (II)  IN  THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
 PLAN MEMBER, SUCH VESTED BENEFIT SHALL BECOME PAYABLE  ON  THE  EARLIEST
 DATE ON WHICH SUCH DISCONTINUED MEMBER COULD HAVE RETIRED FOR SERVICE IF
 SUCH  DISCONTINUANCE  HAD  NOT OCCURRED OR, IN THE CASE OF A PARTICIPANT
 WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH  VESTED  BENEFIT  SHALL
 BECOME PAYABLE AT AGE SIXTY-THREE.
   3.  SUBJECT  TO  THE PROVISIONS OF PARAGRAPH SEVEN OF SUBDIVISION E OF
 THIS SECTION, SUCH DEFERRED VESTED BENEFIT SHALL BE A RETIREMENT  ALLOW-
 ANCE CONSISTING OF AN AMOUNT EQUAL TO TWO AND TWO-TENTHS PERCENT OF SUCH
 DISCONTINUED  MEMBER'S FINAL AVERAGE SALARY, MULTIPLIED BY THE NUMBER OF
 YEARS OF CREDITED SERVICE.
   E. ADDITIONAL MEMBER CONTRIBUTIONS.  1.  IN  ADDITION  TO  THE  MEMBER
 CONTRIBUTIONS  REQUIRED BY SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE,
 EACH PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM  SHALL
 CONTRIBUTE  TO  THE  RETIREMENT  SYSTEM  OF  WHICH HE OR SHE IS A MEMBER
 (SUBJECT TO THE APPLICABLE PROVISIONS OF SUBDIVISION D  OF  SECTION  SIX

 A. 10875                            4
 
 HUNDRED  THIRTEEN  OF THIS ARTICLE) AN ADDITIONAL SIX AND THREE-QUARTERS
 PERCENT OF HIS OR HER COMPENSATION EARNED FROM (I) ALL CREDITED SERVICE,
 AS A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM, RENDERED ON
 OR  AFTER  THE STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM,
 AND (II) ALL CREDITED SERVICE AFTER SUCH PERSON CEASES TO BE  A  PARTIC-
 IPANT,  BUT  BEFORE  HE  OR  SHE AGAIN BECOMES A PARTICIPANT PURSUANT TO
 PARAGRAPH SIX OF SUBDIVISION B OF THIS SECTION. THE ADDITIONAL  CONTRIB-
 UTIONS  REQUIRED  BY  THIS  SUBDIVISION  SHALL  BE IN LIEU OF ADDITIONAL
 MEMBER CONTRIBUTIONS REQUIRED  BY  (I)  SUBDIVISION  D  OF  SECTION  SIX
 HUNDRED  FOUR-C  OF  THIS ARTICLE, AS ADDED BY CHAPTER NINETY-SIX OF THE
 LAWS OF NINETEEN HUNDRED NINETY-FIVE, OR (II) SUBDIVISION F  OF  SECTION
 SIX  HUNDRED  FOUR-D OF THIS ARTICLE, AND NO MEMBER MAKING CONTRIBUTIONS
 PURSUANT TO THIS SECTION SHALL BE REQUIRED TO MAKE CONTRIBUTIONS  PURSU-
 ANT  TO  EITHER SUCH SUBDIVISION D OF SECTION SIX HUNDRED FOUR-C OF THIS
 ARTICLE, OR SUCH SUBDIVISION F OF SECTION SIX  HUNDRED  FOUR-D  OF  THIS
 ARTICLE.
   2.  A  PARTICIPANT  IN  THE  TWENTY-FIVE YEAR RETIREMENT PROGRAM SHALL
 CONTRIBUTE ADDITIONAL MEMBER CONTRIBUTIONS UNTIL THE LATER  OF  (I)  THE
 FIRST  ANNIVERSARY  OF THE STARTING DATE OF THE TWENTY-FIVE YEAR RETIRE-
 MENT PROGRAM, OR (II) THE DATE ON WHICH HE OR SHE COMPLETES THIRTY YEARS
 OF CREDITED SERVICE AS A PROBATION OFFICER MEMBER.
   3. COMMENCING WITH THE FIRST FULL PAYROLL  PERIOD  AFTER  EACH  PERSON
 BECOMES  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM, ADDI-
 TIONAL MEMBER CONTRIBUTIONS AT THE RATE SPECIFIED IN  PARAGRAPH  ONE  OF
 THIS SUBDIVISION SHALL BE DEDUCTED (SUBJECT TO THE APPLICABLE PROVISIONS
 OF  SUBDIVISION  D OF SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE) FROM
 THE COMPENSATION OF SUCH PARTICIPANT ON EACH AND EVERY PAYROLL  OF  SUCH
 PARTICIPANT  FOR  EACH  AND  EVERY PAYROLL PERIOD FOR WHICH HE OR SHE IS
 SUCH A PARTICIPANT.
   4. (I) EACH PARTICIPANT IN THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM
 SHALL  BE CHARGED WITH A CONTRIBUTION DEFICIENCY CONSISTING OF THE TOTAL
 AMOUNTS OF ADDITIONAL MEMBER CONTRIBUTIONS SUCH PERSON  IS  REQUIRED  TO
 MAKE  PURSUANT  TO  PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION WHICH ARE
 NOT DEDUCTED FROM HIS OR HER COMPENSATION PURSUANT TO PARAGRAPH THREE OF
 THIS SUBDIVISION, IF ANY, TOGETHER  WITH  INTEREST  THEREON,  COMPOUNDED
 ANNUALLY,  AND  COMPUTED  IN  ACCORDANCE WITH THE PROVISIONS OF SUBPARA-
 GRAPHS (II) AND (III) OF THIS PARAGRAPH.
   (II) (A) THE INTEREST REQUIRED TO BE PAID ON EACH SUCH  AMOUNT  SPECI-
 FIED  IN SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL ACCRUE FROM THE END OF
 THE PAYROLL PERIOD FOR WHICH SUCH AMOUNT WOULD HAVE BEEN  DEDUCTED  FROM
 COMPENSATION  IF  HE  OR  SHE HAD BEEN A PARTICIPANT AT THE BEGINNING OF
 THAT PAYROLL PERIOD AND  SUCH  DEDUCTION  HAD  BEEN  REQUIRED  FOR  SUCH
 PAYROLL PERIOD, UNTIL SUCH AMOUNT IS PAID TO THE RETIREMENT SYSTEM.
   (B)  THE RATE OF INTEREST TO BE APPLIED TO EACH SUCH AMOUNT DURING THE
 PERIOD FOR WHICH INTEREST ACCRUES ON THAT AMOUNT SHALL BE EQUAL  TO  THE
 RATE  OR  RATES  OF INTEREST REQUIRED BY LAW TO BE USED DURING THAT SAME
 PERIOD TO CREDIT INTEREST ON THE ACCUMULATED  DEDUCTIONS  OF  RETIREMENT
 SYSTEM MEMBERS.
   (III)  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH FIVE OF THIS SUBDIVI-
 SION, NO INTEREST SHALL BE DUE ON ANY UNPAID ADDITIONAL MEMBER  CONTRIB-
 UTIONS  WHICH  ARE  NOT ATTRIBUTABLE TO A PERIOD PRIOR TO THE FIRST FULL
 PAYROLL PERIOD REFERRED TO IN PARAGRAPH THREE OF THIS SUBDIVISION.
   5. (I) SHOULD ANY PERSON WHO, PURSUANT TO SUBPARAGRAPH (II)  OF  PARA-
 GRAPH TEN OF THIS SUBDIVISION, HAS RECEIVED A REFUND OF HIS OR HER ADDI-
 TIONAL MEMBER CONTRIBUTIONS INCLUDING ANY INTEREST PAID ON SUCH CONTRIB-
 UTIONS,  AGAIN  BECOME  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT

 A. 10875                            5
 
 PROGRAM PURSUANT TO PARAGRAPH SIX OF SUBDIVISION B OF THIS  SECTION,  AN
 APPROPRIATE  AMOUNT SHALL BE INCLUDED IN SUCH PARTICIPANT'S CONTRIBUTION
 DEFICIENCY (INCLUDING INTEREST THEREON AS CALCULATED PURSUANT TO SUBPAR-
 AGRAPH  (II)  OF THIS PARAGRAPH) FOR ANY CREDITED SERVICE FOR WHICH SUCH
 PERSON  RECEIVED  A  REFUND  OF  SUCH  ADDITIONAL  MEMBER  CONTRIBUTIONS
 (INCLUDING  ANY  AMOUNT  OF  AN  UNPAID LOAN BALANCE DEEMED TO HAVE BEEN
 RETURNED TO SUCH PERSON PURSUANT TO THIS SUBDIVISION), AS IF SUCH  ADDI-
 TIONAL MEMBER CONTRIBUTIONS NEVER HAD BEEN PAID.
   (II)(A)  INTEREST  ON  A PARTICIPANT'S ADDITIONAL MEMBER CONTRIBUTIONS
 INCLUDED IN  SUCH  PARTICIPANT'S  CONTRIBUTION  DEFICIENCY  PURSUANT  TO
 SUBPARAGRAPH  (I) OF THIS PARAGRAPH SHALL BE CALCULATED AS IF SUCH ADDI-
 TIONAL MEMBER CONTRIBUTIONS HAD NEVER BEEN PAID BY SUCH PARTICIPANT, AND
 SUCH INTEREST SHALL ACCRUE FROM THE END OF THE PAYROLL PERIOD  TO  WHICH
 AN AMOUNT OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS IS ATTRIBUTABLE, UNTIL
 SUCH AMOUNT IS PAID TO THE RETIREMENT SYSTEM.
   (B)  THE RATE OF INTEREST TO BE APPLIED TO EACH SUCH AMOUNT DURING THE
 PERIOD FOR WHICH INTEREST ACCRUES ON THAT AMOUNT SHALL BE  FIVE  PERCENT
 PER ANNUM, COMPOUNDED ANNUALLY.
   6.  WHERE  A PARTICIPANT WHO IS OTHERWISE ELIGIBLE FOR SERVICE RETIRE-
 MENT PURSUANT TO SUBDIVISION C OF THIS SECTION DID  NOT,  PRIOR  TO  THE
 EFFECTIVE  DATE  OF  RETIREMENT, PAY THE ENTIRE AMOUNT OF A CONTRIBUTION
 DEFICIENCY CHARGEABLE TO HIM OR HER PURSUANT TO PARAGRAPHS FOUR AND FIVE
 OF THIS SUBDIVISION, THAT PARTICIPANT, NEVERTHELESS, SHALL  BE  ELIGIBLE
 TO  RETIRE PURSUANT TO SUBDIVISION C OF THIS SECTION, PROVIDED, HOWEVER,
 THAT SUCH PARTICIPANT'S SERVICE RETIREMENT BENEFIT  CALCULATED  PURSUANT
 TO PARAGRAPH TWO OF SUCH SUBDIVISION C SHALL BE REDUCED BY A LIFE ANNUI-
 TY  (CALCULATED IN ACCORDANCE WITH THE METHOD SET FORTH IN SUBDIVISION I
 OF SECTION SIX HUNDRED THIRTEEN-B OF THIS ARTICLE) WHICH IS  ACTUARIALLY
 EQUIVALENT  TO THE AMOUNT OF ANY UNPAID CONTRIBUTION DEFICIENCY CHARGEA-
 BLE TO SUCH MEMBER PURSUANT TO PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI-
 SION.
   7. WHERE A PARTICIPANT WHO IS OTHERWISE ELIGIBLE FOR A VESTED RIGHT TO
 A DEFERRED BENEFIT PURSUANT TO SUBDIVISION D OF THIS  SECTION  DID  NOT,
 PRIOR TO THE DATE OF DISCONTINUANCE OF SERVICE, PAY THE ENTIRE AMOUNT OF
 A  CONTRIBUTION  DEFICIENCY  CHARGEABLE  TO HIM OR HER PURSUANT TO PARA-
 GRAPHS FOUR AND FIVE OF THIS SUBDIVISION, HE OR SHE NEVERTHELESS,  SHALL
 BE  ELIGIBLE FOR A VESTED RIGHT TO A DEFERRED BENEFIT PURSUANT TO SUBDI-
 VISION D OF THIS SECTION, PROVIDED, HOWEVER, THAT  THE  DEFERRED  VESTED
 BENEFIT  CALCULATED  PURSUANT  TO  PARAGRAPH THREE OF SUCH SUBDIVISION D
 SHALL BE REDUCED BY A LIFE ANNUITY (CALCULATED IN  ACCORDANCE  WITH  THE
 METHOD  SET  FORTH IN SUBDIVISION I OF SECTION SIX HUNDRED THIRTEEN-B OF
 THIS ARTICLE) WHICH IS ACTUARIALLY  EQUIVALENT  TO  THE  AMOUNT  OF  ANY
 UNPAID  CONTRIBUTION  DEFICIENCY  CHARGEABLE  TO SUCH MEMBER PURSUANT TO
 PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION.
   8. THE HEAD OF A RETIREMENT SYSTEM WHICH INCLUDES PARTICIPANTS IN  THE
 TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM IN ITS MEMBERSHIP MAY, CONSISTENT
 WITH THE PROVISIONS OF THIS SUBDIVISION, PROMULGATE REGULATIONS FOR  THE
 PAYMENT OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS, AND ANY INTEREST THERE-
 ON, BY SUCH PARTICIPANTS (INCLUDING THE DEDUCTION OF SUCH CONTRIBUTIONS,
 AND ANY INTEREST THEREON, FROM THE PARTICIPANT'S COMPENSATION).
   9.  SUBJECT  TO  THE  PROVISIONS  OF  PARAGRAPHS SIX AND SEVEN OF THIS
 SUBDIVISION, WHERE A PARTICIPANT HAS NOT PAID IN FULL  ANY  CONTRIBUTION
 DEFICIENCY CHARGEABLE TO HIM OR HER PURSUANT TO PARAGRAPHS FOUR AND FIVE
 OF  THIS  SUBDIVISION,  AND  A  BENEFIT,  OTHER  THAN A REFUND OF MEMBER
 CONTRIBUTIONS PURSUANT TO SECTION SIX HUNDRED THIRTEEN OF  THIS  ARTICLE
 OR  A REFUND OF ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO SUBPARAGRAPH

 A. 10875                            6
 
 (II) OF PARAGRAPH TEN OF THIS SUBDIVISION, BECOMES  PAYABLE  UNDER  THIS
 ARTICLE  TO  THE  PARTICIPANT OR TO HIS OR HER DESIGNATED BENEFICIARY OR
 ESTATE, THE ACTUARIAL EQUIVALENT OF ANY  SUCH  UNPAID  AMOUNT  SHALL  BE
 DEDUCTED FROM THE BENEFIT OTHERWISE PAYABLE.
   10.  (I) SUCH ADDITIONAL MEMBER CONTRIBUTIONS (AND ANY INTEREST THERE-
 ON) 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  CONTRIB-
 UTIONS 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.
   (II) SHOULD A PARTICIPANT IN THE TWENTY-FIVE YEAR  RETIREMENT  PROGRAM
 WHO  HAS  RENDERED  LESS THAN FIFTEEN YEARS OF CREDITED SERVICE CEASE TO
 HOLD A POSITION AS A PROBATION OFFICER MEMBER FOR ANY REASON WHATSOEVER,
 HIS OR HER ACCUMULATED ADDITIONAL MEMBER CONTRIBUTIONS MADE PURSUANT  TO
 THIS SUBDIVISION (TOGETHER WITH ANY INTEREST THEREON PAID TO THE RETIRE-
 MENT  SYSTEM)  MAY  BE  WITHDRAWN  BY  HIM OR HER PURSUANT TO PROCEDURES
 PROMULGATED IN REGULATIONS OF THE BOARD OF TRUSTEES  OF  THE  RETIREMENT
 SYSTEM,  TOGETHER  WITH INTEREST THEREON AT THE RATE OF FIVE PERCENT PER
 ANNUM, COMPOUNDED ANNUALLY.
   (III) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  (A)
 NO  PERSON SHALL BE PERMITTED TO WITHDRAW FROM THE RETIREMENT SYSTEM ANY
 ADDITIONAL MEMBER CONTRIBUTIONS PAID PURSUANT TO THIS SUBDIVISION OR ANY
 INTEREST PAID THEREON, EXCEPT PURSUANT TO AND  IN  ACCORDANCE  WITH  THE
 PRECEDING  SUBPARAGRAPHS  OF THIS PARAGRAPH; AND (B) NO PERSON, WHILE HE
 OR SHE IS A PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM,
 SHALL  BE PERMITTED TO WITHDRAW ANY SUCH ADDITIONAL MEMBER CONTRIBUTIONS
 OR ANY INTEREST PAID THEREON PURSUANT TO ANY OF THE  PRECEDING  SUBPARA-
 GRAPHS OF THIS PARAGRAPH OR OTHERWISE.
   11.  NO  MEMBER  OF  A  PUBLIC RETIREMENT SYSTEM SHALL BE PERMITTED TO
 BORROW ANY PORTION OF THE ADDITIONAL MEMBER CONTRIBUTIONS (INCLUDING ANY
 INTEREST PAID THEREON BY THE PARTICIPANT)  WHICH  ARE  SUBJECT  TO  THIS
 SUBDIVISION.
   § 2. Subdivision a of section 603 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   a.  The  service  retirement  benefit specified in section six hundred
 four of this article shall be payable to members who have met the  mini-
 mum  service  requirements  upon retirement and attainment of age sixty-
 two, other than members who are eligible for  early  service  retirement
 pursuant to subdivision c of section six hundred four-b of this article,
 subdivision c of section six hundred four-c of this article, subdivision
 d  of  section  six  hundred  four-d  of  this article, subdivision c of
 section six hundred four-e of this article, subdivision c of section six
 hundred four-f of this article, subdivision c  of  section  six  hundred
 four-g  of  this article, subdivision c of section six hundred four-h of
 this article [or], subdivision c of section six hundred four-i  of  this
 article  OR SUBDIVISION D OF SECTION SIX HUNDRED FOUR-J OF THIS ARTICLE,
 provided, however, a member of a teachers' retirement system or the  New
 York  state  and local employees' retirement system who first joins such
 system before January first, two thousand ten  or  a  member  who  is  a
 uniformed  court  officer or peace officer employed by the unified court
 system who first becomes a member  of  the  New  York  state  and  local
 employees' retirement system before April first, two thousand twelve may
 retire  without  reduction of his or her retirement benefit upon attain-
 ment of at least fifty-five years of age and  completion  of  thirty  or

 A. 10875                            7
 
 more years of service, provided, however, that a uniformed court officer
 or  peace officer employed by the unified court system who first becomes
 a member of the New York state and local employees' retirement system on
 or  after  January first, two thousand ten and retires without reduction
 of his or her retirement benefit upon attainment of at least  fifty-five
 years  of age and completion of thirty or more years of service pursuant
 to this section shall be  required  to  make  the  member  contributions
 required  by subdivision f of section six hundred thirteen of this arti-
 cle for all years of credited and creditable service,  provided  further
 that  the [the] preceding provisions of this subdivision shall not apply
 to a New York city revised plan member.
   § 3. Subdivision a of section 603 of the retirement and social securi-
 ty law, as amended by chapter 19 of the laws of 2008, is amended to read
 as follows:
   a. The service retirement benefit specified  in  section  six  hundred
 four  of this article shall be payable to members who have met the mini-
 mum service requirements upon retirement and attainment  of  age  sixty-
 two,  other  than  members who are eligible for early service retirement
 pursuant to subdivision c of section six hundred four-b of this article,
 subdivision c of section six hundred four-c of this article, subdivision
 d of section six hundred  four-d  of  this  article,  subdivision  c  of
 section six hundred four-e of this article, subdivision c of section six
 hundred  four-f  of  this  article, subdivision c of section six hundred
 four-g of this article, subdivision c of section six hundred  four-h  of
 this  article  [or], subdivision c of section six hundred four-i of this
 article OR SUBDIVISION D OF SECTION SIX HUNDRED FOUR-J OF  THIS  ARTICLE
 provided,  however,  a  member  who  is  a peace officer employed by the
 unified court system or a member of a teachers' retirement system or the
 New York state and local employees' retirement system may retire without
 reduction of his or her retirement benefit upon attainment of  at  least
 fifty-five  years  of  age  and  completion  of  thirty or more years of
 service.
   § 4. This act shall take effect January 1,  2019,  provided  that  the
 amendments  to subdivision a of section 603 of the retirement and social
 security law made by section two of this act shall not affect the  expi-
 ration  and reversion of such subdivision pursuant to subdivision (b) of
 section 13 of chapter 682 of the laws of 2003,  as  amended,  when  upon
 such date the provisions of section three of this act shall take effect.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL:  This  proposed  legislation  would  amend  certain
 provisions of the Retirement and Social Security Law (RSSL) to establish
 a 25-Year Retirement Program for Tier 4 and Tier 6 New York City Employ-
 ees' Retirement System (NYCERS) members who are employed in the title of
 Probation Officers (Probation 25-Year Plan).
   Effective Date: January 1, 2019.
   MEMBERS ELIGIBLE TO JOIN: NYCERS members who are employed as Probation
 Officers  (peace  officers  with  the  New  York  City   Department   of
 Probation).
   Participation in the Probation 25-Year Plan is optional for anyone who
 is eligible to participate in the Plan on the date of enactment, and for
 anyone  who  is  a  member of NYCERS on the date of enactment and subse-
 quently becomes eligible to  participate  in  the  plan  by  becoming  a
 Probation  Officer, by filing an election form within 180 days of enact-
 ment for existing Probation Officers or within 180 days  of  becoming  a
 Probation  Officer for existing NYCERS members. Once an election is made
 to participate in the Plan, the election is irrevocable.

 A. 10875                            8
 
   Any Probation Officer who becomes a Tier 6  NYCERS  member  after  the
 date of enactment would be mandated into the Probation 25-Year Plan.
   IMPACT ON BENEFITS: Currently, Probation Officers are generally eligi-
 ble to participate in one of the NYCERS general plans (i.e. basic Tier 4
 62/5  Plan,  Tier  6  63/10 Plan, or Improved Tier 4 57/5, 55/25 Plans).
 The  proposed  legislation  would  provide  the  following  benefits  to
 Probation Officers who participate in the Probation 25-Year Plan:
   * Service retirement benefit:
     * 55%  of  Final  Average Salary (FAS) for the first 25 years of any
       NYCERS credited service, plus
     * 1.7% of FAS for each additional year of credited service, or frac-
       tion thereof, exceeding 25 years up to a maximum of  30  years  of
       such service.
   * Final Average Salary:
     * Tier 4 - Three Year Average (FAS3)
     * Tier 6 - Five Year Average (FAS5)
   * Vested benefit:
     * Eligibility:
       * Tier  4  -  At  least  five, but less than 25, years of credited
         service
       * Tier 6 - At least 10,  but  less  than  25,  years  of  credited
         service
     * Payable at:
       * Tier  4  -  The date the member would have completed 25 years of
         credited service
       * Tier 6 - Age 63
     * Amount:
       * 2.2% of FAS for each year of credited service
   * Other benefits: Members of the proposed Probation 25-Year  Plan  are
     entitled  to  the same disability and death benefits as other Tier 4
     and Tier 6 members under the respective basic plans.
   ADDITIONAL MEMBER CONTRIBUTIONS: Members of the Probation 25-Year Plan
 are required to make, in addition to the Tier 4  Basic  Member  Contrib-
 utions (BMC) of 3% and the Tier 6 BMC ranging from 3% to 6% depending on
 defined salary scales, Additional Member Contributions equal to 6.75% of
 compensation  for  all  service  as  a Plan participant on and after the
 stating date of the Plan until the later of January 1, 2020 or 30  years
 of credited service.
   FINANCIAL  IMPACT - ACTUARIAL PRESENT VALUES: Based on the anticipated
 group of members joining the Probation 25-Year Plan  and  the  actuarial
 assumptions and methods described herein, the enactment of this proposed
 legislation would increase the Actuarial Present Value (APV) of Benefits
 (APVB)  by  approximately  $24.0 million, and increase the APV of member
 contributions of approximately $6.0 million, resulting in an increase in
 the APV of future employer contributions of approximately $18.0 million.
   Under the Entry Age Normal cost method used to determine the  employer
 contributions  to  NYCERS,  there  would  be an increase in the Unfunded
 Accrued Liability (UAL) of  approximately  $22.7  million  offset  by  a
 decrease in the APV of future employer Normal Cost of $4.6 million.
   FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
 Administrative  Code  of  the  City  of   New   York   (ACCNY)   Section
 13-638.2(k-2),  new  UAL attributable to benefit changes are to be amor-
 tized as determined by the Actuary  but  generally  over  the  remaining
 working  lifetime  of  those impacted by the benefit changes. As of June
 30, 2017, the remaining  working  lifetime  of  the  Probation  Officers
 assumed to join the Probation 25-Year Plan is approximately five years.

 A. 10875                            9
 
   For the purpose of this Fiscal Note, the increase in UAL was amortized
 over  a five-year period (four payments under the One-Year Lag Methodol-
 ogy) using level dollar payments. This payment plus the increase in  the
 Normal  Cost  results in an increase in annual employer contributions of
 approximately $7.7 million each year, beginning in Fiscal Year 2021.
   OTHER COSTS: Not measured in this Fiscal Note are the following:
   * The initial, additional administrative costs of NYCERS and other New
     York City agencies to implement the proposed legislation.
   * The  impact  of  this  proposed  legislation on Other Postemployment
     Benefit (OPEB) costs.
   CONTRIBUTION TIMING: For the purposes  of  this  Fiscal  Note,  it  is
 assumed that the changes in the APV of future employer contributions and
 annual  employer  contributions would be reflected for the first time in
 the June 30, 2019 actuarial valuation of NYCERS. In accordance with  the
 One-Year  Lag  Methodology  (OYLM)  used  to determine employer contrib-
 utions, the increase in employer contributions would first be  reflected
 in Fiscal Year 2021.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the Preliminary June 30, 2017 (Lag) actuarial valuation  of
 NYCERS  to  determine the Preliminary Fiscal Year 2019 employer contrib-
 utions.
   The 395 NYCERS Probation Officers as of June 30, 2017 assumed to  join
 the  Probation  25-Year  Plan  had  an average age of approximately 54.0
 years, average service of approximately 24.5 years, and an average sala-
 ry of approximately $77,700.
   ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the  APV  of  future
 employer contributions and annual employer contributions presented here-
 in  have  been calculated based on the actuarial assumptions and methods
 in effect for the June 30,  2017  (Lag)  actuarial  valuations  used  to
 determine  the  Preliminary  Fiscal  Year 2019 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 Fiscal Year
 2019.
   To determine the impact of the elective nature of the proposed  legis-
 lation,  a  subgroup of NYCERS Probation Officers was developed based on
 who could potentially benefit actuarially. The net APV of future employ-
 er costs (i.e. the APVB less the APV of future member contributions)  of
 each  member's benefit was determined under their current plan and under
 the Probation 25-Year Plan. If the net APV of future employer cost under
 the Probation 25-Year Plan was greater than  or  equal  to  the  APV  of
 future  employer  cost  under  the member's current plan, the member was
 deemed to benefit actuarially.
   Based on this analysis, it was determined that those members  who  are
 mandated  into  the  Probation 25-Year Plan in the future will generally
 not benefit under the Plan (i.e. they will have a  decrease  in  APV  of
 future  employer  costs  as compared to the Tier 6 63/10 Plan they would
 otherwise participate in, absent this proposed legislation), and  there-
 fore the costs presented in this Fiscal Note are borne only from current
 NYCERS  members  who  are assumed to benefit from, and thus opt to join,
 the Probation 25-Year Plan.
   STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
 ary  for,  and  independent  of, the New York City Retirement System 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-

 A. 10875                           10
 
 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  2018-27  dated  May  18,
 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.