LBD15738-05-2
A. 10335 2
(i) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(ii) members with wages greater than forty-five thousand per annum,
but not more than fifty-five thousand per annum shall contribute three
and one-half per centum of annual wages;
(iii) members with wages greater than fifty-five thousand per annum,
but not more than seventy-five thousand per annum shall contribute four
and one-half per centum of annual wages;
(iv) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(v) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages].
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first, except for members of New York
city employees' retirement system, New York city teachers' retirement
system and New York city board of education retirement system, plan year
shall mean January first through December thirty-first commencing with
the January first next succeeding the effective date of chapter five
hundred ten of the laws of two thousand fifteen) in which such member
has established membership in a public retirement system of the state,
such member shall contribute a percentage of annual wages in accordance
with the preceding schedule based upon a projection of annual wages
provided by the employer. Notwithstanding the foregoing, when determin-
ing the rate at which each such member who became a member of the New
York state and local employees' retirement system, New York city employ-
ees' retirement system, New York city teachers' retirement system and
New York city board of education retirement system, on or after April
first, two thousand twelve shall contribute for any plan year (April
first to March thirty-first, except for members of the New York city
employees' retirement system, New York city teachers' retirement system
and New York city board of education retirement system, plan year shall
mean January first through December thirty-first commencing with January
first next succeeding the effective date of chapter five hundred ten of
the laws of two thousand fifteen) between April first, two thousand
twenty-two and April first, two thousand twenty-four, such rate shall be
determined by reference to employees annual base wages of such member in
the second plan year (April first to March thirty-first) preceding such
current plan year. Base wages shall include regular pay, shift differen-
tial pay, location pay, and any increased hiring rate pay, but shall not
include any overtime payments or compensation earned for extracurricular
programs or any other pensionable earnings paid in addition to the annu-
al base wages.
The head of each retirement system shall promulgate such regulations
as may be necessary and appropriate with respect to the deduction of
such contribution from members' wages and for the maintenance of any
special fund or funds with respect to amounts so contributed.
2. A member of the New York city employees' retirement system who is
eligible to be a participant in the twenty-five-year and age fifty-five
retirement program, as defined by paragraph five of subdivision a of
section six hundred four-b of this article shall contribute two percent
of annual wages to such system effective on the starting date of the
elimination of additional member contributions, as defined in an
election made pursuant to paragraph ten of subdivision e of section six
hundred four-b of this article[, except that beginning April first, two
thousand thirteen for members who first become members of the New York
A. 10335 3
city employees' retirement system on or after April first, two thousand
twelve, the rate at which each such member shall contribute in any
current plan year (April first to March thirty-first, provided, however,
that plan year shall mean January first through December thirty-first
commencing with the January first next succeeding the effective date of
the chapter of the laws of two thousand fifteen that amended this para-
graph) shall be determined by reference to the wages of such member in
the second plan year (April first to March thirty-first, provided,
however, that plan year shall mean January first through December thir-
ty-first commencing with the January first next succeeding the effective
date of the chapter of the laws of two thousand fifteen that amended
this paragraph) preceding such current plan year as follows:
(i) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(ii) members with wages greater than forty-five thousand per annum,
but not more than fifty-five thousand per annum shall contribute three
and one-half per centum of annual wages;
(iii) members with wages greater than fifty-five thousand per annum,
but not more than seventy-five thousand per annum shall contribute four
and one-half per centum of annual wages;
(iv) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(v) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages].
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first, provided, however, that plan
year shall mean January first through December thirty-first commencing
with the January first next succeeding the effective date of chapter
five hundred ten of the laws of two thousand fifteen) in which such
member has established membership in the New York city employees'
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of, New York city employees' retirement system, on or after April first,
two thousand twelve shall contribute for any plan year (April first to
March thirty-first, provided, however, that plan year shall mean January
first through December thirty-first commencing with the January first
next succeeding the effective date of chapter five hundred ten of the
laws of two thousand fifteen) between April first, two thousand twenty-
two and April first, two thousand twenty-four, such rate shall be deter-
mined by reference to employees annual base wages of such member in the
second plan year (April first to March thirty-first) preceding such
current plan year. Base wages shall include regular pay, shift differen-
tial pay, location pay, and any increased hiring rate pay, but shall not
include any overtime payments.
§ 2. Subdivision g of section 613 of the retirement and social securi-
ty law is REPEALED.
§ 3. Subdivision t 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:
t. Members who join the New York state teachers' retirement system on
or after January first, two thousand ten, shall be eligible to retire
without reduction of his or her retirement benefit upon attainment of at
least fifty-seven years of age and completion of thirty or more years of
A. 10335 4
service. [Members who retire pursuant to the provisions of this subdivi-
sion shall be required to make the member contributions required by
subdivision g of section six hundred thirteen of this article for all
years of credited and creditable service.] The provisions of this subdi-
vision shall not apply to members who first become a member of the New
York state teachers' retirement system on or after April first, two
thousand twelve.
§ 4. Subdivision a of section 517 of the retirement and social securi-
ty law, as amended by chapter 18 of the laws of 2012, the second undes-
ignated paragraph as amended by section 1 of part SS of chapter 56 of
the laws of 2022, is amended to read as follows:
a. Members shall contribute three percent of annual wages to the
retirement system in which they have membership, provided that such
contributions shall not be required for more than thirty years, for
general members, or twenty-five years, for police/fire members[, except
that beginning April first, two thousand thirteen for members who first
become members of the New York state and local employees' retirement
system on or after April first, two thousand twelve, the rate at which
each such member shall contribute in any current plan year (April first
to March thirty-first) shall be determined by reference to the wages of
such member in the second plan year (April first to March thirty-first)
preceding such current plan year as follows:
1. members with wages of forty-five thousand dollars per annum or less
shall contribute three per centum of annual wages;
2. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
3. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
4. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
5. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages].
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first) in which such member has
established membership in the New York state and local employees'
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of the New York state and local employees' retirement system on or after
April first, two thousand twelve shall contribute for any plan year
(April first to March thirty-first) between April first, two thousand
twenty-two and April first, two thousand twenty-four, such rate shall be
determined by reference to employees annual base wages of such member in
the second plan year (April first to March thirty-first) preceding such
current plan year. Base wages shall include regular pay, shift differen-
tial pay, location pay, and any increased hiring rate pay, but shall not
include any overtime payments.
The head of each retirement system shall promulgate such regulations
as may be necessary and appropriate with respect to the deduction of
such contribution from members' wages and for the maintenance of any
special fund or funds with respect to amounts so contributed.
A. 10335 5
§ 5. Section 1204 of the retirement and social security law, as
amended by chapter 18 of the laws of 2012, the second undesignated para-
graph as amended by section 3 of part SS of chapter 56 of the laws of
2022, is amended to read as follows:
§ 1204. Member contributions. Members who are subject to the
provisions of this article shall contribute three percent of annual
wages to the retirement system in which they have membership[, except
that beginning April first, two thousand thirteen for members who first
become members of the New York state and local police and fire retire-
ment system on or after April first, two thousand twelve, the rate at
which each such member shall contribute in any current plan year (April
first to March thirty-first) shall be determined by reference to the
wages of such member in the second plan year (April first to March thir-
ty-first) preceding such current plan year as follows:
a. members with wages of forty-five thousand dollars per annum or less
shall contribute three per centum of annual wages;
b. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
c. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
d. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
e. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages].
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first) in which such member has
established membership in the New York state and local police and fire
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of the New York state and local police and fire retirement system on or
after April first, two thousand twelve shall contribute for any plan
year (April first to March thirty-first) between April first, two thou-
sand twenty-two and April first, two thousand twenty-four, such rate
shall be determined by reference to employees annual base wages of such
member in the second plan year (April first to March thirty-first)
preceding such current plan year. Base wages shall include regular pay,
shift differential pay, location pay, and any increased hiring rate pay,
but shall not include any overtime payments. Effective April first, two
thousand twelve, all members subject to the provisions of this article
shall not be required to make member contributions on annual wages
excluded from the calculation of final average salary pursuant to
section twelve hundred three of this article. Nothing in this section,
however, shall be construed or deemed to allow members to receive a
refund of any member contributions on such wages paid prior to April
first, two thousand twelve.
Members who are enrolled in a retirement plan that limits the amount
of creditable service a member can accrue shall not be required to make
contributions pursuant to this section after accruing the maximum amount
of service credit allowed by the retirement plan in which they are
enrolled. The state comptroller shall promulgate such regulations as may
be necessary and appropriate with respect to the deduction of such
A. 10335 6
contribution from members' wages and for the maintenance of any special
fund or funds with respect to amounts so contributed. In no way shall
the member contributions made pursuant to this section be used to
provide for pension increases or annuities of any kind.
§ 6. Subdivision 2 of section 182 of the education law, as amended by
chapter 18 of the laws of 2012, is amended to read as follows:
2. Employee contributions. In the case of any electing employee,
contributions at the rate of three per centum of his state salary shall
be deducted by the state comptroller as the employee contribution,
provided however, that such employee contribution shall be made by the
state in accordance with subdivision one of this section during such
period as (a) either section seventy-a of the retirement and social
security law or section five hundred twenty-eight of this title provides
that the contribution of each member of the New York state employees'
retirement system or the New York state teachers' retirement system in
the employ of the state shall be reduced by at least eight per centum of
his compensation, or (b) employee contributions to either such system
are no longer required by reason of such system becoming noncontributory
for state employees.
[Notwithstanding any other law to the contrary, beginning April first,
two thousand thirteen any electing employee appointed on or after April
first, two thousand twelve, the rate at which each such employee shall
contribute in any current plan year (January first to December thirty-
first) shall be determined by reference to the wages of such member in
the second plan year (January first to December thirty-first) preceding
such current plan year as follows:
(a) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(b) members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
(c) members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
(d) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(e) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.
Notwithstanding the foregoing, during each of the first three plan
years (January first to December thirty-first) in which such member has
established membership in the Education Department Optional Retirement
Program, such employee shall contribute a percent of annual wages in
accordance with the preceding schedule based upon a projection of annual
wages provided by the employer.]
§ 7. Subdivision f of section 613 of the retirement and social securi-
ty law, as amended by chapter 18 of the laws of 2012, the second undes-
ignated paragraph as amended by section 2 of part SS of chapter 56 of
the laws of 2022, is amended to read as follows:
f. Anything in subdivision a of this section to the contrary notwith-
standing a member employed as a uniformed court officer or peace officer
in the unified court system who first joins the New York state and local
employees' retirement system on or after January first, two thousand ten
shall contribute four percent of annual wages to the New York state and
local employees' retirement system[, except that beginning April first,
two thousand thirteen for members who first become members of the New
A. 10335 7
York state and local employees' retirement system on or after April
first, two thousand twelve, the rate at which each such member shall
contribute in any current plan year (April first to March thirty-first)
shall be determined by reference to the wages of such member in the
second plan year (April first to March thirty-first) preceding such
current plan year as follows:
1. members with wages of forty-five thousand dollars per annum or less
shall contribute three per centum of annual wages;
2. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
3. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
4. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
5. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages].
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first) in which such member has
established membership in the New York state and local employees'
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of the New York state and local employees' retirement system on or after
April first, two thousand twelve shall contribute for any plan year
(April first to March thirty-first) between April first, two thousand
twenty-two and April first, two thousand twenty-four, such rate shall be
determined by reference to employees annual base wages of such member in
the second plan year (April first to March thirty-first) preceding such
current plan year. Base wages shall include regular pay, shift differen-
tial pay, location pay, and any increased hiring rate pay, but shall not
include any overtime payments.
The head of the New York state and local employees' retirement system
shall promulgate such regulations as may be necessary and appropriate
with respect to the deduction of such contribution from members' wages
and for the maintenance of any special fund or funds with respect to
amounts so contributed.
§ 8. Nothing in this act shall be construed or deemed to allow members
to receive a refund of any member contributions made or collected prior
to the effective date of this act.
§ 9. Notwithstanding any other provision of law to the contrary, none
of the provisions of this act shall be subject to section 25 of the
retirement and social security law.
§ 10. This act shall take effect on the sixtieth day after it shall
have become a law.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would change the member contribution rate to 3% for Tier 5
uniformed court peace officers (UCPOs) and Tier 6 members of the New
York State and Local Retirement System. Tier 5 UCPOs currently pay 4%
and Tier 6 members currently pay a variable percentage between 3% and 6%
depending on annual compensation. There will be no return of member
contributions. Section 25 does not apply.
A. 10335 8
Insofar as this bill affects the New York State and Local Employees'
Retirement System (NYSLERS), if this legislation is enacted during the
2022 legislative session, there will be an increase in the present value
of benefits of approximately $2.8 billion which would be shared by the
State of New York and all participating employers in the NYSLERS. The
estimated first-year cost would be approximately $126 million to the
State of New York and approximately $179 million to the participating
employers in the NYSLERS.
Insofar as this bill affects the New York State and Local Police and
Fire Retirement System (NYSLPFRS), if this legislation is enacted during
the 2022 legislative session, there will be an increase in the present
value of benefits of approximately $500 million which would be shared by
the State of New York and all participating employers in the NYSLPFRS.
The estimated first-year cost would be approximately $10 million to the
State of New York and approximately $40 million to the participating
employers in the NYSLPFRS.
Summary of relevant resources:
Membership data as of March 31, 2021 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2021 actuari-
al valuation. Distributions and other statistics can be found in the
2021 Report of the Actuary and the 2021 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2020
and 2021 Annual Report to the Comptroller on Actuarial Assumptions, and
the Codes, Rules and Regulations of the State of New York: Audit and
Control.
The Market Assets and GASB Disclosures are found in the March 31, 2021
New York State and Local Retirement System Financial Statements and
Supplementary Information.
I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
This fiscal note does not constitute a legal opinion on the viability
of the proposed change nor is it intended to serve as a substitute for
the professional judgment of an attorney.
This estimate, dated May 9, 2022, and intended for use only during the
2022 Legislative Session, is Fiscal Note No. 2022-143, prepared by the
Actuary for the New York State and Local Retirement System.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
As it relates to the New York State Teachers' Retirement System, this
bill would amend Section 613 of the Retirement and Social Security Law
to reduce the required employee contribution rate for Tier 5 and 6
members to a flat 3.0% of salary, payable over their career. Currently,
Tier 5 members are required to contribute at a rate of 3.5% of salary,
and Tier 6 members are required to contribute between 3.0% and 6.0% of
salary, in accordance with a salary-based schedule. No contributions
made or collected before the effective date of this bill would be
refunded.
The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $102.4
million or 0.59% of payroll if this bill is enacted.
The System's "new entrant rate", a hypothetical employer contribution
rate that would occur if we started a new Retirement System without any
assets, is equal to 4.69% of pay under the current Tier 6 benefit struc-
ture. This can be thought of as the long-term expected employer cost of
the benefit structure, based on current actuarial assumptions. For the
reduction to the Tier 6 employee contribution rate proposed under this
A. 10335 9
bill, this new entrant rate would increase to 6.16% of pay, an increase
of 1.47% of pay.
Member data is from the System's most recent actuarial valuation
files, consisting of data provided by the employers to the Retirement
System. Data distributions and statistics can be found in the System's
Annual Report. System assets are as reported in the System's financial
statements and can also be found in the System's Annual Report. Actuar-
ial assumptions and methods are provided in the System's Actuarial Valu-
ation Report and the 2021 Actuarial Assumptions Report.
The source of this estimate is Fiscal Note 2022-41 dated May 9, 2022
prepared by the Office of the Actuary of the New York State Teachers'
Retirement System and is intended for use only during the 2022 Legisla-
tive Session. I, Richard A. Young, am the Chief Actuary for the New York
State Teachers' Retirement System. I am a member of the American Academy
of Actuaries and I meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY OF BILL: This proposed legislation, as it relates to the New
York City Retirement Systems and Pension Funds (NYCRS), would amend
Section 613 of the Retirement and Social Security Law (RSSL) to reduce
the Basic Member Contribution (BMC) rate to 3% for Tier 6 members of the
New York City Employees' Retirement System (NYCERS), the New York City
Teachers' Retirement System (NYCTRS), and the New York City Board of
Education Retirement System (BERS).
Effective Date: 60th day after enactment.
IMPACT ON MEMBER CONTRIBUTIONS: Currently, Tier 6 members of NYCERS,
NYCTRS, and BERS are required to make BMCs ranging from 3% to 6% depend-
ing on the members' applicable annual wages.
Under the proposed legislation, if enacted, the required BMCs would be
reduced to a flat 3% starting on the effective date of the proposed
legislation. Refunds of contributions made prior to the effective date
would not be permitted.
FINANCIAL IMPACT - SUMMARY: The estimated financial impact of imple-
menting a flat 3% contribution rate as described above is a decrease in
the Present Value of member contributions. There is also a small
decrease in the Present Value of Future Benefits (PVFB) as a result of
reduced refunds of member contributions upon termination of employment.
The net result is an increase in the Present Value of future employer
contributions and annual employer contributions of NYCERS, NYCTRS, and
BERS.
In the initial year, the Present Value of future employer contrib-
utions as of June 30, 2021 would increase by approximately $1.5 billion
for NYCERS, $1.7 billion for NYCTRS, and $0.1 billion for BERS. This
total increase in the Present Value of future employer contributions of
approximately $3.3 billion for NYCRS is estimated to be $2.4 billion for
New York City and $0.9 billion for the other obligors of NYCRS.
The financial impact will increase as the impacted populations
increase over time. The estimate of the increase in annual employer
contributions for Fiscal Years 2023 through 2027 based on the applicable
actuarial assumptions and methods noted herein, are shown in the table
below.
Increase in Employer Contributions
($ Millions)
Fiscal
Year NYCERS NYCTRS BERS TOTAL
A. 10335 10
2023 $130.8 $112.7 $13.6 $257.1*
2024 $146.9 $122.3 $14.2 $283.4
2025 $162.9 $130.9 $15.0 $308.8
2026 $179.0 $139.1 $15.7 $333.8
2027 $199.8 $153.1 $17.0 $369.9
* The increase in annual employer contributions for Fiscal Year 2023
is estimated to be $182.7 million for New York City and $74.4 million
for the other obligors of NYCRS.
In accordance with Section 13-638.2(k-2) of the Administrative Code of
the City of New York (ACCNY), new Unfunded Accrued Liability (UAL)
attributable to benefit changes are to be amortized as determined by the
Actuary but are generally amortized over the remaining working lifetime
of those impacted by the benefit changes. As of June 30, 2021, the
remaining working lifetime is approximately 16 years for NYCERS Tier 6
members, approximately 20 years for NYCTRS Tier 6 members, and approxi-
mately 14 years for BERS Tier 6 members.
For purposes of this Fiscal Note, the increase in the UAL for NYCERS
was amortized over a 16-year period (15 payments under the One-Year Lag
Methodology (OYLM)) using level dollar payments. Under the same method-
ology the increase in the UAL for NYCTRS and BERS was amortized over 19
and 13 payments, respectively.
CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is
assumed that the changes in the Present Value of future employer
contributions and annual employer contributions would be reflected for
the first time in the Final June 30, 2021 actuarial valuation of NYCERS,
NYCTRS, and BERS. In accordance with the OYLM used to determine employer
contributions, the increase in employer contributions would first be
reflected in Fiscal Year 2023.
CENSUS DATA: The estimates presented herein are based on the census
data used in the Preliminary June 30, 2021 (Lag) actuarial valuation of
NYCERS, NYCTRS, and BERS to determine the Preliminary Fiscal Year 2023
employer contributions.
The table below contains a summary of the census data for active Tier
6 members in NYCERS, NYCTRS, and BERS as of June 30, 2021.
NYCRS Active Average Average Average
Count Age Service Salary
NYCERS 71,663 41.3 3.9 $72,000
NYCTRS 49,642 37.1 4.5 $74,600
BERS 12,229 45.5 3.3 $50,400
ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of
future employer contributions and annual employer contributions
presented herein have been calculated based on the actuarial assumptions
and methods in effect for the Preliminary June 30, 2021 (Lag) actuarial
valuations used to determine the Preliminary Fiscal Year 2023 employer
contributions of NYCERS, NYCTRS, and BERS.
This Fiscal Note also reflects changes to plan provisions enacted as
part of Chapter 56 of the laws of 2022.
New entrants were projected to replace the members expected to leave
the active population to maintain a steady-state population. New entrant
demographics and future salary increases are consistent with those used
in projections for the New York City Office of Management and Budget in
April 2022.
A. 10335 11
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the realization of the actuarial assumptions used, as well as
certain demographic characteristics of NYCERS, NYCTRS, and BERS and
other exogenous factors such as investment, contribution, and other
risks. If actual experience deviates from actuarial assumptions, the
actual costs could differ from those presented herein. Costs are also
dependent on the actuarial methods used, and therefore different actuar-
ial methods could produce different results. Quantifying these risks is
beyond the scope of this Fiscal Note.
Not measured in this Fiscal Note are the following:
* The initial, additional administrative costs of NYCERS, NYCTRS,
BERS, and other New York City agencies to implement the proposed legis-
lation.
* Pension costs for future members of NYCERS, NYCTRS, and BERS hired
on or after 7/1/2025.
* The impact of this proposed legislation on Other Postemployment
Benefit (OPEB) costs.
STATEMENT OF ACTUARIAL OPINION: I, Michael J. Samet, am the Interim
Chief Actuary for, and independent of, the New York City Retirement
Systems and Pension Funds. I am a Fellow of the Society of Actuaries and
a Member of the American Academy of Actuaries. I meet the Qualification
Standards of the American Academy of Actuaries to render the actuarial
opinion 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 2022-45 dated May 9, 2022
was prepared by the Interim Chief Actuary for the New York City Employ-
ees' Retirement System, the New York City Teachers' Retirement System,
and the New York City Board of Education Retirement System. This esti-
mate is intended for use only during the 2022 Legislative Session.