LBD11221-03-2
A. 10474 2
such service in the retirement system to which the member is trans-
ferring as such member was allowed in the retirement system from which
the member has transferred, the transfer shall be deemed complete upon
receipt by the transferee retirement system of (a) a statement from the
transferor retirement system of the transferring member's date of
membership in the transferor retirement system, tier status, service
credited to the transferred membership, and such other information as
the transferee retirement system may require to effectuate the transfer,
[and] (b) such member's accumulated contributions from the transferor
retirement system, if same had not been previously withdrawn, or notice
from the transferor retirement system that such member had no accumu-
lated contributions, or notice from the transferor retirement system
that such member's accumulated contributions had been withdrawn and the
amount thereof and, as applicable, receipt from such member of such
member's accumulated contributions and interest, AND (C) THE PENSION
RESERVE IN THE CASE OF A MEMBER WHO TRANSFERS IN TEN OR MORE YEARS OF
CREDITED SERVICE, EXCEPT WHEN TRANSFERRING WITHIN AND BETWEEN THE NEW
YORK CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY TEACHERS' RETIRE-
MENT SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM.
§ 2. Subdivision k of section 43 of the retirement and social security
law, as amended by chapter 41 of the laws of 2009, is amended to read as
follows:
k. Notwithstanding any other provision of this section, any member of
the New York state and local employees' retirement system or the New
York city teachers' retirement system who retired from service from
either the New York city employees' retirement system or the New York
city board of education retirement system as a member of the career
pension plan maintained by such system and who, but for the fact that he
or she retired, would be eligible for transfer and who has not, in fact,
received a pension payment from such system shall be permitted to trans-
fer his or her retirement system membership pursuant to the provisions
of this section. In such event, the application for retirement shall be
deemed to have been rescinded and the retirement system from which the
service shall be transferred shall transfer the appropriate reserves as
provided by this section, provided, however, that with respect to trans-
fers pursuant to this subdivision which occur on or after [the twenty-
sixth day of October, two thousand four] THE EFFECTIVE DATE OF THE CHAP-
TER OF THE LAWS OF TWO THOUSAND TWENTY-TWO THAT AMENDED THIS
SUBDIVISION, except for the purposes of providing the benefits, if any,
of subdivision four of section five hundred twenty-two of the education
law, no determination of a reserve pursuant to subdivision c of this
section or transfer thereof pursuant to the first sentence of subdivi-
sion d of this section shall be required in the case of any transfer
pursuant to this subdivision WITH LESS THAN TEN YEARS OF CREDITED
SERVICE WITH THE TRANSFERRING RETIREMENT SYSTEM AT THE TIME THE TRANSFER
IS INITIATED. WITH RESPECT TO TRANSFERS PURSUANT TO THIS SECTION WHICH
OCCUR ON OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO
THOUSAND TWENTY-TWO THAT AMENDED THIS SUBDIVISION, THE TRANSFER OF A
PENSION RESERVE SHALL BE REQUIRED WHEN THE MEMBER IS TRANSFERRING TEN OR
MORE YEARS OF CREDITED SERVICE FROM A PUBLIC RETIREMENT SYSTEM OF THE
STATE TO ANY OTHER PUBLIC RETIREMENT SYSTEM OF THE STATE, EXCLUDING ANY
TRANSFERS WITHIN AND BETWEEN THE NEW YORK CITY EMPLOYEES' RETIREMENT
SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY
BOARD OF EDUCATION RETIREMENT SYSTEM. Notwithstanding the provision of
this subdivision or any other provision of law, an individual who trans-
fers pursuant to this subdivision shall not be required to render any
A. 10474 3
minimum period of service following transfer in order to be eligible to
receive the full benefit provided hereunder. Notwithstanding the forego-
ing, a retiree covered by either the career pension plan or the fifty-
five-year-increased-service-fraction plan who has received a pension
payment or payments from such system shall be eligible for the
provisions of this subdivision upon payment, to the retirement system
from which the pension payment or payments were made, of an amount equal
to such pension payment or payments. After such payments AND THE PENSION
RESERVE, IN THE CASE OF A MEMBER WHO TRANSFERS IN TEN OR MORE YEARS OF
CREDITED SERVICE, EXCEPT WHEN TRANSFERRING WITHIN AND BETWEEN THE NEW
YORK CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY TEACHERS' RETIRE-
MENT SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM, are
received, such person shall be permitted to transfer his or her retire-
ment system membership pursuant to the provisions of this section.
§ 3. Subdivision 1 of section 43 of the retirement and social security
law, as amended by chapter 41 of the laws of 2009, is amended to read as
follows:
l. Notwithstanding any other provision of law to the contrary, with
respect to transfers pursuant to this section which occur on or after
[the twenty-sixth day of October, two thousand four] THE EFFECTIVE DATE
OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO THAT AMENDED THIS
SUBDIVISION, except for the purposes of providing the benefits, if any,
of subdivision four of section five hundred twenty-two of the education
law, no determination of a reserve pursuant to subdivision c of this
section or transfer thereof pursuant to the first sentence of subdivi-
sion d of this section shall be required in the case of any transfer
pursuant to this section WITH LESS THAN TEN YEARS OF CREDITED SERVICE
WITH THE TRANSFERRING RETIREMENT SYSTEM AT THE TIME THE TRANSFER IS
INITIATED. WITH RESPECT TO TRANSFERS PURSUANT TO THIS SECTION WHICH
OCCUR ON OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO
THOUSAND TWENTY-TWO THAT AMENDED THIS SUBDIVISION, THE TRANSFER OF A
PENSION RESERVE SHALL BE REQUIRED WHEN THE MEMBER IS TRANSFERRING TEN OR
MORE YEARS OF CREDITED SERVICE FROM A PUBLIC RETIREMENT SYSTEM OF THE
STATE TO ANY OTHER PUBLIC RETIREMENT SYSTEM OF THE STATE, EXCLUDING ANY
TRANSFERS WITHIN AND BETWEEN THE NEW YORK CITY EMPLOYEES' RETIREMENT
SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY
BOARD OF EDUCATION RETIREMENT SYSTEM. For the purpose of giving the
transferring member such status and crediting such service in the second
retirement system as such member was allowed in the first retirement
system in those cases to which this subdivision shall apply, the trans-
fer shall be deemed complete upon receipt by the second retirement
system of:
1. a statement from the first retirement system of the transferring
member's date of membership in the first retirement system, tier status,
service credited to such membership being transferred, and such other
information as the second retirement system may require to effectuate
the transfer; [and]
2. such member's accumulated contributions from the first retirement
system, if same had not been previously withdrawn, or notice from the
first retirement system that such member had no accumulated contrib-
utions, or notice from the first retirement system that such member's
accumulated contributions had been withdrawn and the amount thereof and,
as applicable, receipt from such member of such member's accumulated
contributions and interest; AND
3. THE PENSION RESERVE IN THE CASE OF A MEMBER WHO TRANSFERS IN TEN OR
MORE YEARS OF CREDITED SERVICE, EXCEPT WHEN TRANSFERRING WITHIN AND
A. 10474 4
BETWEEN THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY
TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIRE-
MENT SYSTEM.
§ 4. Subdivision h of section 343 of the retirement and social securi-
ty law, as amended by chapter 533 of the laws of 2015, is amended to
read as follows:
h. Notwithstanding any other provision of law to the contrary, with
respect to transfers pursuant to this section which occur on or after
the effective date of THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO
THAT AMENDED this subdivision, no determination of a reserve pursuant to
subdivision c of this section or transfer thereof pursuant to the first
sentence of subdivision d of this section shall be required in the case
of any transfer pursuant to this section (other than a transfer from the
New York state and local police and fire retirement system to either (1)
the New York city police department subchapter two pension fund, (2) the
New York city fire department subchapter two pension fund or (3) the MTA
police retirement program or a transfer from either (i) the New York
city police department subchapter two pension fund or (ii) the New York
city fire department subchapter two pension fund to either (A) the New
York state and local police and fire retirement system or (B) the MTA
police retirement program or a transfer from the MTA police retirement
program to the New York state and local police and fire retirement
system) IN THE CASE OF A MEMBER WITH LESS THAN TEN YEARS OF CREDITED
SERVICE WITH THE TRANSFERRING RETIREMENT SYSTEM AT THE TIME THE TRANSFER
IS INITIATED. WITH RESPECT TO TRANSFERS PURSUANT TO SUCH SUBDIVISIONS
WHICH OCCUR ON OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF
TWO THOUSAND TWENTY-TWO THAT AMENDED THIS SUBDIVISION, THE TRANSFER OF A
PENSION RESERVE SHALL BE REQUIRED WHEN THE MEMBER IS TRANSFERRING TEN OR
MORE YEARS OF CREDITED SERVICE FROM A PUBLIC RETIREMENT SYSTEM OF THE
STATE TO ANY OTHER PUBLIC RETIREMENT SYSTEM OF THE STATE, EXCLUDING ANY
TRANSFERS WITHIN AND BETWEEN THE NEW YORK CITY EMPLOYEES' RETIREMENT
SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY
BOARD OF EDUCATION RETIREMENT SYSTEM. For the purpose of giving the
transferring member such status and crediting such service in the second
retirement system as such member was allowed in the first retirement
system in those cases to which this subdivision shall apply, the trans-
fer shall be deemed complete upon receipt by the second retirement
system of:
1. a statement from the first retirement system of the transferring
member's date of membership in the first retirement system, tier status,
service credited to such membership being transferred, and such other
information as the second retirement system may require to effectuate
the transfer; [and]
2. such member's accumulated contributions from the first retirement
system, if same had not been previously withdrawn, or notice from the
first retirement system that such member had no accumulated contrib-
utions, or notice from the first retirement system that such member's
accumulated contributions had been withdrawn and the amount thereof and,
as applicable, receipt from such member of such member's accumulated
contributions and interest; AND
3. THE PENSION RESERVE IN THE CASE OF A MEMBER WHO TRANSFERS IN TEN OR
MORE YEARS OF CREDITED SERVICE, EXCEPT WHEN TRANSFERRING WITHIN AND
BETWEEN THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY
TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIRE-
MENT SYSTEM.
A. 10474 5
§ 5. Paragraph 4 of subdivision a of section 13-143 of the administra-
tive code of the city of New York, as added by chapter 647 of the laws
of 2004, is amended to read as follows:
(4) Notwithstanding the provisions of paragraph two of this subdivi-
sion, with respect to transfers pursuant to this section which occur on
or after the effective date of THE CHAPTER OF THE LAWS OF TWO THOUSAND
TWENTY-TWO THAT AMENDED this paragraph, the actuary of the New York city
employees' retirement system shall not be required to determine the
reserve on the benefits allowable to the transferring member as the
result of employer contributions, including the reserve-for-increased-
take-home-pay, and the transfer of such reserve, including the reserve-
for-increased-take-home-pay, from the New York city employees' retire-
ment system to said police pension fund [shall not be required] WHEN A
MEMBER IS TRANSFERRING WITH LESS THAN TEN YEARS OF CREDITED SERVICE WITH
THE TRANSFERRING RETIREMENT SYSTEM AT THE TIME THE TRANSFER IS INITI-
ATED. WITH RESPECT TO TRANSFERS PURSUANT TO THIS SUBDIVISION WHICH OCCUR
ON OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOU-
SAND TWENTY-TWO THAT AMENDED THIS PARAGRAPH, THE TRANSFER OF A PENSION
RESERVE SHALL BE REQUIRED WHEN THE MEMBER IS TRANSFERRING TEN OR MORE
YEARS OF CREDITED SERVICE FROM A PUBLIC RETIREMENT SYSTEM OF THE STATE
TO ANY OTHER PUBLIC RETIREMENT SYSTEM OF THE STATE, EXCLUDING ANY TRANS-
FERS WITHIN AND BETWEEN THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM,
NEW YORK CITY TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY BOARD OF
EDUCATION RETIREMENT SYSTEM. The New York city employees' retirement
system, within one year from the date of the request for the transfer of
credit, shall comply with all requirements for completing the transfer
imposed on it by the provisions of this section, INCLUDING THE PENSION
RESERVE IN THE CASE OF A MEMBER WHO TRANSFERS TEN OR MORE YEARS OF CRED-
ITED SERVICE, EXCEPT WHEN TRANSFERRING WITHIN AND BETWEEN THE NEW YORK
CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT
SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM. Nothing
set forth in this paragraph shall be deemed to modify the requirement
set forth in paragraph two of this subdivision that the New York city
employees' retirement system transfer to said police pension fund the
accumulated deductions of such member.
§ 6. Paragraph 4 of subdivision a of section 13-144 of the administra-
tive code of the city of New York, as added by chapter 647 of the laws
of 2004, is amended to read as follows:
(4) Notwithstanding the provisions of paragraph two of this subdivi-
sion, with respect to transfers pursuant to this section which occur on
or after the effective date of THE CHAPTER OF THE LAWS OF TWO THOUSAND
TWENTY-TWO THAT AMENDED this paragraph, the actuary of the New York city
employees' retirement system shall not be required to determine the
reserve on the benefits allowable to the transferring member as the
result of employer contributions, including [the reserve-for-increased-
take-home-pay, and] the transfer of such reserve[, including] AND the
reserve-for-increased-take-home-pay[,] from the New York city employees'
retirement system to said fire department pension fund [shall not be
required], WITH LESS THAN TEN YEARS OF CREDITED SERVICE FROM THE TRANS-
FERRING RETIREMENT SYSTEM AT THE TIME THE TRANSFER IS INITIATED. WITH
RESPECT TO TRANSFERS PURSUANT TO THIS SECTION WHICH OCCUR ON OR AFTER
THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO
THAT AMENDED THIS PARAGRAPH, THE TRANSFER OF A PENSION RESERVE PURSUANT
TO PARAGRAPH TWO OF THIS SUBDIVISION SHALL BE REQUIRED WHEN THE MEMBER
IS TRANSFERRING TEN OR MORE YEARS OF CREDITED SERVICE FROM A PUBLIC
RETIREMENT SYSTEM OF THE STATE TO ANY OTHER PUBLIC RETIREMENT SYSTEM OF
A. 10474 6
THE STATE, EXCLUDING ANY TRANSFERS WITHIN AND BETWEEN THE NEW YORK CITY
EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT SYSTEM
AND NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM. The New York
city employees' retirement system, within one year from the date of the
request for the transfer of credit, shall comply with all requirements
for completing the transfer imposed on it by the provisions of this
section, INCLUDING THE PENSION REVERSE IN THE CASE OF A MEMBER WHO
TRANSFERS TEN OR MORE YEARS OF MEMBER SERVICE CREDIT, EXCEPT WHEN TRANS-
FERRING WITHIN AND BETWEEN THE NEW YORK CITY EMPLOYEES' RETIREMENT
SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY
BOARD OF EDUCATION RETIREMENT SYSTEM. Nothing set forth in this para-
graph shall be deemed to modify the requirement set forth in paragraph
two of this subdivision that the New York city employees' retirement
system transfer to said fire department pension fund the accumulated
deductions of such member.
§ 7. Subdivision d of section 3 of chapter 666 of the laws of 1990,
amending the administrative code of the city of New York and the educa-
tion law relating to the availability of additional pension benefits for
an extended second public employment to certain retirees, as added by
chapter 647 of the laws of 2004, is amended to read as follows:
d. Notwithstanding the provisions of subdivision b of this section or
any other provision of law to the contrary, with respect to transfers
pursuant to this section which occur on or after the effective date of
THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO THAT AMENDED this
subdivision, no determination or transfer of the reserve on the benefits
allowable to the transferring member as the result of employer contrib-
utions, including the reserve-for-increased-take-home-pay, shall be
required FOR A MEMBER WITH LESS THAN TEN YEARS OF CREDITED SERVICE FROM
THE TRANSFERRING SYSTEM AT THE TIME THE TRANSFER IS INITIATED. WITH
RESPECT TO TRANSFERS PURSUANT TO THIS SECTION WHICH OCCUR ON OR AFTER
THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO
THAT AMENDED THIS SUBDIVISION, THE TRANSFER OF A PENSION RESERVE SHALL
BE REQUIRED WHEN THE MEMBER IS TRANSFERRING TEN OR MORE YEARS OF CREDIT-
ED SERVICE FROM A PUBLIC RETIREMENT SYSTEM OF THIS STATE TO ANY OTHER
PUBLIC RETIREMENT SYSTEM OF THE STATE, EXCLUDING ANY TRANSFERS WITHIN
AND BETWEEN THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK
CITY TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY BOARD OF EDUCATION
RETIREMENT SYSTEM.
§ 8. This act shall take effect immediately and shall apply to any
covered membership transfer initiated on or after the effective date of
this act; provided, however, that no provision of this act shall affect
the transfer of reserves required with respect to transfers between any
two of the New York state and local police and fire department system,
the New York city police department subchapter two pension fund and the
New York city fire department subchapter two pension fund and with
respect to transfers from the New York state and local police and fire
retirement system to the metropolitan transportation authority police
pension fund.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY OF BILL: This proposed legislation (see Appendix) would amend
Sections 43 and 343 of the Retirement and Social Security Law (RSSL),
Sections 13-143 and 13-144 of the Administrative Code of the City of New
York (ACCNY), Section 522 of the Education Law, and Chapter 666 of the
laws of 1990 to reinstate the transfer of reserves between certain New
York City and State retirement systems.
Effective Date: Upon enactment.
A. 10474 7
BACKGROUND: Chapter 647 of the Laws of 2004, for purposes of stream-
lining transfers between certain public retirement systems and alleviat-
ing the administrative burden of reserve calculations and transfers,
eliminated the transfer of reserves as a required step in completing the
transfer of memberships between certain public retirement systems within
New York.
Currently, members of the New York City Employees' Retirement System
(NYCERS), the New York City Teachers' Retirement System (NYCTRS), or the
New York City Board of Education Retirement System (BERS) who accept
another position that entitles them to membership in another New York
public retirement system may choose to transfer their membership. Upon
successful application for such transfer, certain member accumulated
contributions (with accrued interest) are generally transferred, but
additional employer paid reserves are not.
Under the proposed legislation, if enacted, when members with a mini-
mum of 10 years of Credited Service transfer their membership to another
retirement system, the originating system would be required to calculate
and pay such member's pension reserve, net of any accumulated salary
deductions otherwise transferred, to the destination retirement system.
Such transfers of reserves would not be required for members trans-
ferring wholly between NYCERS, NYCTRS, and BERS.
This proposed legislation would essentially repeal parts of Chapter
647 and eliminate the administrative efficiencies created by such law.
FINANCIAL IMPACT - OVERVIEW: There is no data available to accurately
estimate the number of New York City Retirement System or Pension Fund
(NYCRS) members who would potentially transfer between affected City and
State retirement systems. Therefore, the estimated financial impact has
been calculated on a per event basis equal to the increase in Unfunded
Accrued Liability (UAL) for an average NYCERS, NYCTRS, and BERS member
with at least 10 years of service. This increase in UAL consists of the
reserve required to be transferred to the State system, net of any
member contributions that would otherwise be transferred.
With respect to an individual member, the additional cost of this
proposed legislation could vary greatly depending on the member's length
of service, age, and salary history.
These costs would be offset by any reserves reciprocally transferred
from a State system to a City system. Transfers between affected City
systems would not be expected to materially impact these costs.
FINANCIAL IMPACT - SUMMARY: The enactment of this proposed legislation
would not be expected to result in any material changes in the ultimate
costs of the NYCRS but is expected to increase administrative burdens
and potentially delay member transfers.
Enactment of this proposed legislation would, on a transfer from a
City System to a State system, increase employer contributions, where
such amount would depend on the number of members affected as well as
other characteristics including the age, years of service, and salary
history of the member. A breakdown of the financial impact by System is
shown in the table below.
NYCRS Average Increase in Average Increase in
UAL Annual Employer Contributions
per Transfer per Transfer
NYCERS $298,700 $35,300
NYCTRS $387,500 $45,800
BERS $181,300 $21,400
A. 10474 8
As there is no data currently available to accurately estimate the
number and demographic characteristics of members who may transfer to
the State, the financial impact would be recognized at the time of
event. Consequently, changes in employer contributions have been esti-
mated assuming that the increase in the UAL will be financed over the
same time period used for actuarial losses in accordance with Section
13-638.2(k-2) of the ACCNY. Using this approach, the increase in UAL
would be amortized over a closed 15-year period (14 payments under the
One-Year Lag Methodology) using level dollar payments.
With respect to the timing, increases in employer contributions would
depend upon when eligible members file their application to transfer
their NYCRS membership to the State but, generally, increased employer
contributions will first occur the second fiscal year following the
transfer of reserves to the State.
CENSUS DATA: The estimates presented herein are based on the census
data used in the Preliminary June 30, 2021 (Lag) actuarial valuation of
NYCRS to determine the Preliminary Fiscal Year 2023 employer contrib-
utions.
The table below contains a summary of the census data for the members
in NYCERS, NYCTRS, and BERS who have at least 10 years of service as of
June 30, 2021.
NYCRS Active Average Average Average
Count Age Service Salary
NYCERS 95,530 53.6 19.6 $90,200
NYCTRS 68,118 50.1 18.7 $108,100
BERS 10,866 56.8 17.2 $63,900
ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the UAL 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 NYCRS.
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 NYCRS 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 meth-
ods used, and therefore different actuarial 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 NYCRS and other New
York City agencies to implement the proposed legislation.
* 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.
A. 10474 9
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2022-47 dated May 10,
2022 was prepared by the Interim Chief Actuary for the New York City
Retirement Systems and Pension Funds. This estimate is intended for use
only during the 2022 Legislative Session.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend Section 522 of the Education Law and various
sections of the Retirement and Social Security Law and the Administra-
tive Code of the City of New York to restore the transfer of pension
reserves in cases in which a member of the New York State Teachers'
Retirement System (NYSTRS) or any Retirement System of the State or City
of New York transfers a membership with ten or more years of credited
service at the time the transfer is initiated. This act shall take
effect immediately and shall apply to any membership transfer initiated
on or after the effective date of this act. No transfer of reserves will
be required for transfers within and between the NYC Retirement Systems.
The current transfer of reserves that occurs due to transfers between
the police and fire systems shall not be disturbed.
It is estimated that there will be no additional annual cost to the
employers of members of the NYSTRS if this bill is enacted. In fact,
this bill will greatly increase equity between the retirement systems of
the state by ensuring that a member who transfers with a significant
liability will bring with him or her the pension reserve accumulated by
the prior retirement system to offset the liability assumed by the new
retirement system.
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. Actuari-
al assumptions and methods are provided in the System's Actuarial Valu-
ation Report.
The source of this estimate is Fiscal Note 2022-2 dated October 18,
2021 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2022 Legislative Session.
I, Richard A. Young, am the Chief Actuary for the New York State Teach-
ers' Retirement System. I am a member of the American Academy of Actuar-
ies 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:
This bill would amend sections 43 and 343 of the Retirement and Social
Security Law and various sections of the Education Law and the Adminis-
trative Code of the City of New York to reinstate the calculation and
transfer of a pension reserve for a member transferring between the
public retirement systems in New York State, provided such member is
transferring ten (10) or more years of service credit.
Insofar as this bill affects the New York State and Local Employees'
Retirement System (NYSLERS) and the New York State and Local Police and
Fire Retirement System (NYSLPFRS), if this legislation is enacted during
the 2022 legislative session, there would be some ongoing administrative
costs to implement the provisions of this legislation.
The actuarial gains and losses arising from the transfer of reserves
is expected to net to zero over the long-term, making the proposal cost
neutral.
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-
A. 10474 10
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 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 February 9, 2022, and intended for use only
during the 2022 Legislative Session, is Fiscal Note No. 2022-56,
prepared by the Actuary for the New York State and Local Retirement
System.