S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6502--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2017
                                ___________
 
 Introduced  by  M. of A. ABBATE, D'URSO, WEPRIN -- Multi-Sponsored by --
   M. of A.  McDONOUGH -- read once and  referred  to  the  Committee  on
   Governmental Employees -- recommitted to the Committee on Governmental
   Employees  in  accordance  with  Assembly  Rule 3, sec. 2 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  allowing  certain  members  of  the New York city police
   pension fund to receive service credit for their service  in  the  New
   York city police department cadet program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision h of section 13-218 of the administrative  code
 of the city of New York, as added by chapter 594 of the laws of 2000, is
 relettered  subdivision  i  and  a new subdivision j is added to read as
 follows:
   J. (1) NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  UPON
 ELECTION,  ANY MEMBER OF THE POLICE PENSION FUND, SUBCHAPTER TWO OF THIS
 CHAPTER WHO IS SUBJECT TO ARTICLE FOURTEEN OF THE RETIREMENT AND  SOCIAL
 SECURITY  LAW,  AND  SERVED IN THE NEW YORK CITY POLICE DEPARTMENT CADET
 PROGRAM SHALL RECEIVE CREDIT IN SUCH POLICE PENSION FUND, SUBCHAPTER TWO
 OF THIS CHAPTER, FOR THE PERIOD OF SERVICE IN THE NEW YORK  CITY  POLICE
 DEPARTMENT CADET PROGRAM. ANY MEMBER WHO WAS NOT A MEMBER OF THE RETIRE-
 MENT  SYSTEM SHALL RECEIVE SUCH CREDIT BY PAYING INTO THE POLICE PENSION
 FUND ADDITIONAL MEMBER CONTRIBUTIONS PLUS INTEREST, AT A  RATE  OF  FIVE
 PERCENT,  WHICH  WOULD HAVE BEEN PAID OR CREDITED HAD SUCH MEMBER BEEN A
 MEMBER OF THE POLICE PENSION FUND, SUBCHAPTER TWO OF THIS CHAPTER,  FROM
 HIS  OR  HER  DATE  OF  APPOINTMENT AS A NEW YORK CITY POLICE DEPARTMENT
 CADET, PROVIDED SUCH PAYMENT IS MADE WITHIN FIVE YEARS AFTER THE  EFFEC-
 TIVE  DATE  OF THIS SUBDIVISION, OR WITHIN FIVE YEARS AFTER COMMENCEMENT
 OF MEMBERSHIP IN THE NEW YORK CITY POLICE  PENSION  FUND,  WHICHEVER  IS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09399-02-8

 A. 6502--A                          2
 
 LATER.  ANY SUCH MEMBER WHO WAS A MEMBER OF THE NEW YORK CITY EMPLOYEES'
 RETIREMENT SYSTEM WHILE SERVING IN THE NEW YORK CITY  POLICE  DEPARTMENT
 CADET  PROGRAM  SHALL  RECEIVE SUCH CREDIT IN THE POLICE PENSION FUND BY
 REQUESTING A TRANSFER OF CREDIT WITHIN FIVE YEARS AFTER THIS SUBDIVISION
 SHALL TAKE EFFECT, OR WITHIN FIVE YEARS AFTER COMMENCEMENT OF MEMBERSHIP
 IN  THE NEW YORK CITY POLICE PENSION FUND, WHICHEVER IS LATER. UPON SUCH
 REQUEST, THE RESERVE ON THE BENEFITS ALLOWABLE TO  SUCH  MEMBER  AS  THE
 RESULT  OF  EMPLOYER CONTRIBUTIONS, INCLUDING THE RESERVE-FOR-INCREASED-
 TAKE-HOME-PAY, IF ANY, AND THE ACCUMULATED DEDUCTIONS  OF  SUCH  MEMBER,
 SHALL THEREUPON BE TRANSFERRED FROM THE NEW YORK CITY EMPLOYEES' RETIRE-
 MENT  SYSTEM TO THE POLICE PENSION FUND WITHIN ONE YEAR FROM THE DATE OF
 SUCH REQUEST.
   (2) THE PERIOD OF SUCH SERVICE TRANSFERRED OR  PURCHASED  PURSUANT  TO
 PARAGRAPH  ONE  OF THIS SUBDIVISION SHALL BE DEEMED TO BE SERVICE IN THE
 POLICE FORCE FOR PURPOSES OF ELIGIBILITY FOR BENEFITS AND  TO  DETERMINE
 THE AMOUNTS OF BENEFITS UNDER THE POLICE PENSION FUND.
   (3)  ANY  MEMBER  OF  THE  POLICE PENSION FUND, SUBCHAPTER TWO OF THIS
 CHAPTER, WHO ACQUIRES SERVICE CREDIT BY REASON OF THE PROVISIONS OF THIS
 SUBDIVISION SHALL BE ENTITLED TO ALL RIGHTS BENEFITS AND  PRIVILEGES  TO
 WHICH  HE OR SHE WOULD HAVE BEEN ENTITLED HAD HIS OR HER CURRENT MEMBER-
 SHIP BEGUN UPON APPOINTMENT AS A NEW YORK CITY POLICE DEPARTMENT  CADET,
 AS  WELL AS ANY OTHER RIGHT, BENEFIT OR ENTITLEMENT OF A SIMILARLY SITU-
 ATED MEMBER OF  SUCH  PENSION  FUND  WITH  EQUAL  TOTAL  SERVICE  CREDIT
 CONSISTING  ONLY OF SERVICE IN THE UNIFORMED FORCE OF THE POLICE DEPART-
 MENT.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   We have estimated the impact of the Cadet Bill, a  copy  of  which  is
 attached,  on  the  projected  employer  contributions.  The table below
 summarizes the resulting contributions by year.
 
                   (in millions)
                   Year                           Annual Cost
                   2018                           5.1
                   2019                           5.4
                   2020                           5.6
                   2021                           5.9
                   2022                           6.1
 
   These estimates are based on headcounts, as summarized below:
 
 Year                     Open Competitive                 Promotional
 2009                           5                             180
 2010                           3                             164
 2011                           1                              68
 2012                           1                              52
 2013                           0                              35
 2014                           2                              14
 2015                           5                              73
 2016 (partial year)            2                              22
 
   For the sake of projection, we assumed that from  2016  to  2020  (the
 time  period that impacts costs from 2018 to 2022), we would continue to
 see cadets enter the plan with past service. We assumed  for  each  year
 that  2 cadets would enter as Open Competitive hires and 50 cadets would
 enter through Promotional hire channels. Note, the new  Cadets  are  all

 A. 6502--A                          3
 
 subject  to  the  Tier  6  plan provisions, with no opportunity for Tier
 reassignment.
   We  also assumed that Promotional hires would enter with 1.25 years of
 past service on average and Open Competitive hires would have 0.83 years
 of service, which is 2/3 of the amount  of  the  Promotional  hires.  In
 addition, we had to make assumptions about the Tier Reinstatement Rates,
 as summarized in the table below:
 
 _______________________________________________________________________
                   Tier Reinstatement
 Year                     Rates                   Resulting Tier
 _______________________________________________________________________
 2009                     100%               All Tier Reinstate to Tier 2
 2010                     100%               All Tier Reinstate to Tier 2
 2011                      50%               50% Tier Reinstate to Tier 2
                                                 (7/1/2009 change date)
 2012                     100%               All Tier Reinstate to Tier 3
 2013                     100%               All Tier Reinstate to Tier 3
 2014                      25%               25% Tier Reinstate to Tier 3
                                                 (4/1/2012 change date)
 2015                       0%               Tier 6
 2016                       0%               Tier 6
 
   All other assumptions are consistent with our current understanding of
 the  actuarial  assumptions  employed by the New York City Office of the
 Actuary to illustrate expected contribution impact.
   The undersigned is familiar with the immediate and  long-term  aspects
 of  pension  calculations  and  meets the Qualification Standards of the
 American Academy of Actuaries necessary to render the actuarial opinions
 contained herein.