S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5866--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 3, 2017
                                ___________
 
 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  administrative code of the city of New York, in
   relation to membership in  the  New  York  city  teachers'  retirement
   system
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 7 of  section  13-501  of  the
 administrative  code  of the city of New York, as amended by chapter 650
 of the laws of 1990, is amended to read as follows:
   (a) "Teacher" shall mean the superintendent of schools, the  associate
 superintendents,  the  assistant  superintendents,  the director and the
 assistant director of the  divisions  of  reference  and  research,  the
 director  and the assistant directors of the bureau of compulsory educa-
 tion, school census and child welfare, attendance teachers and specially
 certificated attendance officers who are first employed by the New  York
 city  board  of  education on or after September first, nineteen hundred
 sixty-eight, attendance teachers and specially  certificated  attendance
 officers  who  were  members  of  the  New  York city board of education
 retirement system and who, on or before December thirty-first,  nineteen
 hundred  sixty-nine,  gave  notice to said board of education retirement
 system of their intention to transfer to the  New  York  city  teachers'
 retirement  system,  the  director  of attendance, assistant director of
 attendance, chief attendance officer,  division  supervising  attendance
 officers  and  district supervising attendance officers of the bureau of
 compulsory education, school census and child  welfare,  supervisors  of
 school  social workers who are first employed by the New York city board

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06019-09-8

 S. 5866--A                          2
 
 of education on or after September first, nineteen hundred sixty-nine or
 who were members of the New York  city  board  of  education  retirement
 system  and  who  on  or  before December thirty-first, nineteen hundred
 seventy, gave notice to the said board of education retirement system of
 their  intention  to  transfer to the New York city teachers' retirement
 system, the members of the board of examiners,  the  directors  and  the
 assistant  directors  of  special branches, the supervisor and assistant
 supervisors of lectures, all principals, vice-principals, assistants-to-
 principals, heads of departments, and all regular and  special  teachers
 of the public day schools of the city, and all employees of the board of
 education  appointed  to  regular positions in the service of the public
 schools at annual salaries and whose appointments were made or shall  be
 made  from eligible lists prepared as the result of examinations held by
 the board of examiners or from hiring lists established by the  chancel-
 lor  of  the  board  of education, as the case may be, and all employees
 employed by the board of education in the titles of teacher aide, educa-
 tional assistant, educational associate,  auxiliary  trainer,  bilingual
 professional  assistant, family worker, family assistant, family associ-
 ate[,] OR parent program assistant[, who file an application for member-
 ship in the retirement association on a form supplied by the  retirement
 board].
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   FINANCIAL  IMPACT  -  ADDITIONAL  ANNUAL  EMPLOYER  CONTRIBUTIONS:  If
 enacted into law, the ultimate employer cost for  this  proposed  legis-
 lation  would be based on the number, ages, years of service, and salary
 of those paraprofessionals that would  otherwise  not  have  elected  to
 become members of TRS.
   In order to estimate the costs associated with this group, census data
 of  approximately  4,200 paraprofessionals who are not currently members
 of TRS was reviewed. Based on this data and the population  of  parapro-
 fessionals  who  have already joined TRS, it was estimated that approxi-
 mately 2,450 paraprofessionals, who would not have otherwise joined TRS,
 would be mandated into TRS membership if this  proposed  legislation  is
 enacted.  The  remaining  1,750  paraprofessionals  were assumed to have
 become members of TRS at some point in their  careers  even  absent  the
 proposed legislation.
   Based on these assumptions and other actuarial assumptions and methods
 in effect for the June 30, 2017 (Lag) actuarial valuation used to deter-
 mine the Preliminary Fiscal Year 2019 employer contributions for TRS, we
 have  estimated  the  annual cost of this legislation to be $7.7 million
 for the 2,450 paraprofessionals. However, the total increase in employer
 contributions for Fiscal Year 2018 would be approximately $12.8  million
 for  the entire group of approximately 4,200 paraprofessionals who would
 be mandated into the plan if the proposed legislation is  enacted.  This
 amount includes the estimated cost of approximately $5.1 million for the
 1,750  paraprofessionals whose membership is being accelerated into TRS.
 These employer contribution amounts are  representative  of  the  annual
 employer  contribution  amounts for each future year if paraprofessional
 member participation numbers  and  demographic  characteristics  do  not
 significantly change.
   CONTRIBUTION  TIMING:  If  enacted  on  or before June 30, 2018, these
 additional paraprofessionals would likely be included in the census data
 as of June 30, 2018. In accordance with  the  One-Year  Lag  Methodology
 used  to  determine  employer  contributions,  the  increase in employer
 contributions for TRS would first be reflected in Fiscal Year 2020.

 S. 5866--A                          3
 
   OTHER COSTS: Not measured in this Fiscal Note are the following poten-
 tial costs:
   The  additional  administrative  costs  to  TRS  and its participating
 employers to implement the proposed legislation.
   The impact of this proposed legislation on Other Postemployment  Bene-
 fit  (OPEB)  costs.  In order to be eligible for OPEB, a retiree must be
 receiving a pension from one of the New York  City  Retirement  Systems.
 Therefore, there is potential for additional OPEB costs if this proposed
 legislation is enacted.
   ACTUARIAL  ASSUMPTIONS  AND  METHODS: The additional employer contrib-
 utions presented herein have been calculated based on the same actuarial
 assumptions and methods in effect for the June 30, 2016 (Lag)  actuarial
 valuation  used  to  determine the Preliminary Fiscal Year 2018 employer
 contributions of TRS. 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,  and  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 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 2018-10 dated  March  23,
 2018,  was prepared by the Chief Actuary for the New York City Teachers'
 Retirement System. This estimate is intended for  use  only  during  the
 2018 Legislative Session.