S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4548
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2021
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT  to authorize employers to provide a temporary retirement incen-
   tive for certain public employees in the city of New  York  (Part  A);
   and  to  provide an age 55/25 years temporary retirement incentive for
   certain public employees in the city of New York (Part B)
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  enacts into law components of legislation that
 would enable the city of New York to offer a temporary retirement incen-
 tive to their employees, as well as to provide an age 55/25 years tempo-
 rary incentive for certain public employees. Each  component  is  wholly
 contained  within a Part identified as Parts A and B. The effective date
 for each particular provision contained within such Part is set forth in
 the last section of such Part. Any provision in  any  section  contained
 within  a  Part,  including  the effective date of the Part, which makes
 reference to a section "of this act", when used in connection with  that
 particular  component,  shall  be deemed to mean and refer to the corre-
 sponding section of the Part in which it is found, unless  noted  other-
 wise.
   § 2. Legislative findings. The legislature finds and declares that the
 retirement  benefits  provided  for  in this act are designed to achieve
 cost-savings for public employers and to avoid layoffs of public employ-
 ees in this time of fiscal need.  Therefore,  the  retirement  incentive
 benefit  provided  for  in  Part  A  of this act and the age 55/25 years
 retirement benefit provided for in Part B of this act are intended  only
 to  be temporary in nature for employees who are eligible to receive and
 qualify for the applicable benefit during the  applicable  time  periods
 specified  within  each  Part.  Further,  nothing  in  this act shall be
 construed to create an expectation of a future or continuing  retirement
 benefit for any public employee who is not eligible to receive and qual-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03567-02-1

 A. 4548                             2
 
 ify  for  the retirement benefits in this act during the applicable time
 periods.
 
                                  PART A
 
   Section 1. Definitions. As used in this act, unless the context clear-
 ly requires otherwise:
   a.  "Retirement  system"  means the New York city teachers' retirement
 system, the New York city board of education retirement  system  or  the
 New  York city employees' retirement system, exclusive of the retirement
 plans established pursuant to sections 13-156 and 13-157 of the adminis-
 trative code of the city of New York.
   b. "Teachers' retirement system" means the  New  York  city  teachers'
 retirement system.
   c.  "Eligible employee" means a person who is a member of a retirement
 system who is an employee of the city of New York, but such  term  shall
 not include the following persons:
   (a) elected officials, judges or justices appointed to or serving in a
 court of record;
   (b)  chief administrative officers of employers which participate in a
 teachers' retirement system;
   (c) appointed members of boards or commissions any  of  whose  members
 are appointed by the governor or by another public officer or body;
   d.  "Eligible  title"  means any title where a certain number of posi-
 tions in that title, as identified by agency, department, work  location
 or  appointing  authority  of  the city of New York, as the case may be,
 would otherwise be identified for layoff but for  this  act  because  of
 economy,  consolidation or abolition of functions, curtailment of activ-
 ities or otherwise. However, an eligible title can also include a  title
 as  identified  by  an  agency,  department, work location or appointing
 authority of the city of New York in which positions would not be elimi-
 nated but into which employees in  titles  affected  by  layoff  can  be
 transferred  or  reassigned  pursuant  to the civil service law, rule or
 regulation. The determination of eligible titles shall be  made  by  the
 chief executive officer of the city of New York.
   e.  "Active  service"  means  service while being paid on the payroll,
 provided that (a) a leave of absence with pay  shall  be  deemed  active
 service; (b) other approved leave without pay not to exceed twelve weeks
 prior  to  the  commencement  of the designated open period; and (c) the
 period of time subsequent to a June school term and on or before  August
 31  of the year for which an open period is designated for a teacher (or
 other employee employed on a school-year  basis)  who  is  otherwise  in
 active  service on the effective date of this act shall be deemed active
 service.
   f. "Open period" means the period beginning with the commencement date
 as defined in subdivision g of this section and shall not be  more  than
 ninety  days  nor  less  than thirty days in length, as specified by the
 city of New York. For the purposes of retirement pursuant to this act, a
 service retirement  application  must  be  filed  with  the  appropriate
 retirement  system  not  less  than fourteen days prior to the effective
 date of retirement to become effective, unless a shorter period of  time
 is permitted under law.
   g.  "Commencement  date"  means the first day the retirement incentive
 authorized by this act shall be made available, which shall mean a  date
 or  dates on or after the effective date of this act to be determined by
 the chief executive officer of the city of New York. The chief executive

 A. 4548                             3
 
 officer shall notify the heads of the appropriate retirement systems  of
 the  dates  of  each open period prior to the commencement dates of such
 periods.
   § 2. The determination of whether a title shall be considered eligible
 shall  consider  whether the reduction of a specific number of positions
 within a title would unacceptably:
   a. Directly result in a reduction of the level of service required  or
 mandated  to  protect and care for clients of the city of New York or to
 assure public health and safety;
   b. Endanger the health or safety of employees of the city of New York;
 or
   c. Clearly result in a loss of significant revenue to the city of  New
 York or result in substantially increased overtime or contractual costs.
 However,  any  title may be determined eligible if the vacancies created
 can be controlled by the use of transfer or reassignment  provisions  of
 the  civil service law, rules or regulations or other deployment of city
 employees.
   § 3. a. Eligibility for inclusion in the retirement incentive provided
 by section six of this act shall be determined by seniority for  employ-
 ees  of  the city of New York; seniority shall mean the date of original
 permanent appointment in the civil  service  of  the  city  adjusted  to
 include  veteran's  credits  for  those entitled to receive such credits
 pursuant to sections 80, 80-a  and  85,  if  applicable,  of  the  civil
 service law, as established in the official records of the New York city
 department of citywide administrative services, regardless of the juris-
 dictional classification of the position or the status of the incumbent.
   b. All eligible employees serving in eligible titles desiring to avail
 themselves  of  the retirement incentive provided by section six of this
 act shall provide written notice to his or her employer on or before the
 twenty-first day preceding the end of  the  open  period.    Failure  to
 provide such written notice shall render the employee ineligible for the
 retirement incentive provided by this act.
   §  4.  a.  On or after the effective date of this act, the city of New
 York may elect to provide its employees the retirement incentive author-
 ized by this act by the enactment of a local law, provided  however,  no
 local law enacted pursuant to this section shall in any manner supersede
 any  local charter. The local law shall specify the commencement date of
 the program and the length of the open period or periods.    A  copy  of
 such  law  shall  be  filed  with  the  appropriate retirement system or
 systems, and, if applicable, on forms provided by such system. The local
 law or resolution shall be accompanied by the  affidavit  of  the  chief
 executive officer certifying to the information contained in subdivision
 c of this section.
   b. The commencement date of an open period for eligible employees of a
 retirement system of the city of New York who elects retirement benefits
 pursuant  to this section may be up to one hundred eighty days after the
 end of the open period for other eligible  employees,  if  requested  by
 such system.
   c.  Notwithstanding  any other provision of law, the benefits provided
 by this act shall not be made  available  to  any  person  who  (a)  has
 received  any  retirement incentive authorized by any provision of state
 law, or (b) who receives, has received  or  is  eligible  to  receive  a
 payment  in  a  lump  sum or in another form from a retirement incentive
 pursuant to the provisions of a collective bargaining  agreement  or  by
 other  arrangement  with his or her employer, unless such person files a
 written statement with his or her employer, a copy  of  which  shall  be

 A. 4548                             4
 
 forwarded to the appropriate retirement system, that he or she agrees to
 waive  any  right to such payment. If the city of New York has offered a
 retirement incentive pursuant to the provisions of a collective bargain-
 ing agreement or by other arrangement, such city shall prepare, and file
 with  each  retirement  system,  a  list containing the names and social
 security numbers of all persons described in this subdivision. The  city
 is  authorized,  however,  to  exempt  persons  in  its  employ from the
 provisions of paragraph (b) of this subdivision. Such exemption shall be
 made part of the election made pursuant to this section.
   § 5. Notwithstanding any other provision of law, any eligible employee
 serving in an eligible title who:
   a. has been continuously in the active service of the city of New York
 prior to the commencement date of the applicable open period;
   b. files an application  for  service  retirement  that  is  effective
 during the open period; and
   c.  is otherwise eligible for a service retirement as of the effective
 date of the application for retirement shall be entitled to the  retire-
 ment  incentive  provided  in  section six of this act. If not otherwise
 eligible for a service retirement, the following person shall be  deemed
 to satisfy the eligibility condition of this section: a person who is at
 least  age fifty with ten or more years service as of the effective date
 of retirement (other than a member of a retirement plan  which  provides
 for  half-pay  pension  upon  completion  of  twenty-five  years or less
 service without regard to age); or a member of a retirement  plan  which
 provides  for  half-pay  pension upon completion of twenty-five years of
 service without regard to age who has not accrued, excluding  additional
 credit  granted  pursuant  to  this  act, the minimum number of years of
 service required to retire with an allowance equal to fifty  percent  of
 final average salary under such plan, but has, with the inclusion of the
 additional  credit provided under this act, accrued such number of years
 of credit.
   § 6. Notwithstanding any other provision of law, an eligible  employee
 serving  in  an eligible title who is a member of a retirement system of
 the city of New York and employed by the city of New  York  and  who  is
 entitled  to a retirement incentive pursuant to section five of this act
 shall receive a retirement incentive of one-twelfth of a year  of  addi-
 tional retirement credit for each year of pension service credited as of
 the  date  of  retirement,  up to a maximum of three years of retirement
 service credit at  the  time  of  retirement,  provided,  however,  that
 service  credit provided under the provisions of sections 902 and 911 of
 the retirement and social security law shall not be included when calcu-
 lating the additional retirement credit awarded pursuant  to  this  act.
 For  the  New  York  city teachers' retirement system, the New York city
 employees' retirement system and the New York city  board  of  education
 retirement  system  such  incentive shall be available for all purposes,
 including fulfilling the qualifying service requirements of plan  A  and
 C, if applicable.
   An eligible employee who is covered by the provisions of article 15 of
 the retirement and social security law shall retire under the provisions
 of  article  15 of the retirement and social security law. The amount of
 such benefit for an eligible employee who is covered by  article  15  of
 the  retirement and social security law and retires under the provisions
 of this section (other than a  member  with  thirty  or  more  years  of
 service  in the New York city employees' retirement system, the New York
 city teachers' retirement system, or the New York city board  of  educa-
 tion  retirement system) shall be reduced by six percent for each of the

 A. 4548                             5
 
 first two years by which  retirement  precedes  age  sixty-two,  plus  a
 further  reduction  of  three  percent for each year by which retirement
 precedes age sixty, provided, however, the  foregoing  reductions  shall
 not  apply:  (i) in any case where an eligible employee can retire after
 twenty-five years of service with immediate payability prior to the  age
 of  sixty-two  pursuant  to  section  604-b of the retirement and social
 security law or (ii) to any time period subsequent to the point at which
 an eligible employee can retire for service without reduction of his  or
 her  service  retirement allowance pursuant to article 16 of the retire-
 ment and social security law.  Such  reduction  shall  be  prorated  for
 partial  years. The amount of such benefit for an eligible employee with
 thirty or more years of service who is a member of  the  New  York  city
 employees'  retirement  system,  the  New York city teachers' retirement
 system, or the New York city board of education retirement system, or an
 eligible employee who is a participant in the optional twenty-five  year
 early  retirement  program for certain New York city members governed by
 section 604-c of the retirement and social security  law,  as  added  by
 chapter  96 of the laws of 1995 or a twenty-five year participant in the
 age fifty-five retirement program  governed  by  section  604-i  of  the
 retirement  and  social  security law, with twenty-five or more years of
 service and who is covered by article 15 of the  retirement  and  social
 security  law  shall  be  reduced by five percent for each year by which
 retirement pursuant to this section precedes age fifty-five. The  amount
 of such benefit for an eligible New York city employee with five or more
 years of service and who is a participant in the age fifty-seven retire-
 ment  program  governed  by  section  604-d of the retirement and social
 security law shall be reduced by one-thirtieth for the first  two  years
 by which retirement precedes age fifty-seven plus a further reduction of
 one-twentieth for each year by which retirement precedes age fifty-five.
 Such  reduction  shall  be prorated for partial years. There shall be no
 reduction for an eligible New York city employee in a physically  taxing
 position  with twenty-five or more years of service and who is a partic-
 ipant (i) in the optional twenty-five year early retirement program  for
 certain  members  governed by section 604-c of the retirement and social
 security law, as added by chapter 96 of the laws of 1995, or (ii) in the
 age fifty-seven retirement program governed  by  section  604-d  of  the
 retirement and social security law.
   An  eligible  employee  serving in an eligible title who is covered by
 article 11 of the retirement and social security law shall retire  under
 the  provisions  of such article. There shall be no reduction in retire-
 ment benefit provided that such employee retires  with  thirty  or  more
 years of service at age fifty-five or older.
   An  eligible  employee serving in an eligible title who is not covered
 by article 11 or 15 of the retirement  and  social  security  law  shall
 retire  under  the provisions of the plan by which he or she is covered.
 The amount of such benefit shall be reduced by  five  percent  for  each
 year  by  which  retirement pursuant to this section precedes age fifty-
 five, provided, however, the foregoing reductions shall not  apply:  (i)
 in  any  case  where  an eligible employee can retire pursuant to a plan
 which permits retirement for service with immediate  payability,  exclu-
 sive  of  this  act,  prior to the age of fifty-five or (ii) to any time
 period subsequent to the point at which an eligible employee can  retire
 for service without reduction of his or her service retirement allowance
 pursuant  to  article 16 of the retirement and social security law. Such
 reduction shall be prorated for partial years.

 A. 4548                             6
 
   An eligible employee serving in an eligible title who participates  in
 a  retirement  plan  which  provides for a retirement allowance equal to
 fifty percent of final average salary upon the completion of twenty-five
 years of service without regard to age and who is otherwise eligible  to
 retire  shall  retire  under  the provisions of such plan. Such employee
 shall, at the time of retirement, be credited with one-twelfth of a year
 of additional retirement service credit for each year of service credit-
 ed under such plan as of the date of retirement,  up  to  a  maximum  of
 three  years  of  retirement  service  credit.  If such employee has not
 accrued, excluding additional credit granted pursuant to this  act,  the
 minimum  number of years of service required to retire with an allowance
 equal to fifty percent of final average salary under such plan, but has,
 with the inclusion of the additional credit  provided  under  this  act,
 accrued such number of years of credit, the benefit payable shall be the
 percentage  of  final average salary that would ordinarily be applicable
 to such individual upon retirement with such amount of credit (including
 incentive credit), reduced by five per centum per year for each year  by
 which  the  number of years of service otherwise required to retire with
 an allowance equal to fifty percent of final average salary  under  such
 plan  exceeds the amount of service credited to such employee under such
 plan  at  retirement  (excluding  the  additional  retirement  incentive
 service  credit  provided pursuant to this act). Such reduction shall be
 prorated for partial years.
   § 7. a. Notwithstanding any other provision of  law,  any  termination
 pay or leave arising from accrued sick leave or accrued annual leave for
 an  eligible  employee who has elected the retirement incentive provided
 by this act and who is a member of the New York city  teachers'  retire-
 ment  system  employed by the board of education of the city of New York
 shall be paid in three equal installments  during  a  twenty-four  month
 period  commencing on such eligible employee's effective date of retire-
 ment.
   b. An employee of the city of New York who retires under  the  retire-
 ment  incentive provided by this act, who is eligible for terminal leave
 pursuant to an applicable collective bargaining agreement or a personnel
 policy or rule or retirement leave  pursuant  to  section  3107  of  the
 education  law  or who has an accrued annual leave balance on the effec-
 tive date of retirement shall be paid in three  equal  installments  two
 months,  fourteen  months and twenty-four months following such eligible
 employee's effective date of retirement.
   § 8. a. The city of New York, if it elects  the  retirement  incentive
 provided  by  this  act  shall be required to demonstrate the savings of
 their election by either eliminating positions vacated as a result of an
 eligible employee in an eligible title receiving the incentive  provided
 by  section six of this act or demonstrating a compensation savings such
 that the total amount of base salary paid for the two-year period subse-
 quent to the effective date of retirement for such eligible employees in
 eligible titles to new hires, if any, who otherwise would not have  been
 hired  by such employer after the effective date of this act but for the
 retirement incentive provided herein shall be no more than  one-half  of
 the total amount of base salary that would have been paid to such eligi-
 ble  employees  from  their date of retirement for such two-year period.
 The city may also demonstrate savings, however, by identifying a  vacant
 position  into  which another employee can be appointed, transferred, or
 reassigned pursuant to the civil service law, rules or  regulations,  in
 which  case  the  former  position  of the employee so appointed, trans-

 A. 4548                             7
 
 ferred, or reassigned shall be eliminated.  The city shall  make  avail-
 able its plans for achieving the savings described herein.
   b.  The  New  York city department of citywide administrative services
 shall prepare a report designating the title, grade level,  salary,  and
 classification,  according to appointing authority, (i) of each position
 which is eliminated pursuant to subdivision a of this section,  (ii)  of
 each position into which another employee was appointed, transferred, or
 reassigned  and  the former position of such employee, and (iii) of each
 position which is eliminated as a result of an appointment, transfer  or
 reassignment  referred  to  in  paragraph (ii) of this subdivision. Such
 report shall be available no later than ninety days after the last  date
 of the open period related to such positions.
   §  9. Nothing in this act shall be used to provide benefits that shall
 exceed the limits contained in section 415 of the internal revenue code.
 Provided, however, any service retirement benefit which has been reduced
 because of section 415 of the internal revenue code shall  be  increased
 when  (and  consistent  with)  the  dollar  limits in section 415 of the
 internal revenue code are adjusted by the internal revenue  service  for
 cost  of living increases. Such increases shall not increase the benefit
 in excess of the service retirement benefit otherwise payable.
   § 10. Any eligible employee who retires pursuant to the provisions  of
 this act and enters or reenters public service as defined in subdivision
 e  of section 210 of the retirement and social security law and joins or
 rejoins any public retirement system of the city of New  York  shall  if
 the additional benefit was provided pursuant to: (a) section six of this
 act,  forfeit  the additional benefit authorized by this act at the time
 of his or her subsequent retirement; or (b) repay to the city such addi-
 tional contribution together with the appropriate interest as determined
 by the appropriate retirement system.
   § 11. Notwithstanding any other  provision  of  law,  if  the  service
 retirement  benefit  of  a member of a retirement system is subject to a
 maximum retirement benefit, the additional benefit  authorized  by  this
 act  will  be computed by multiplying the final average salary times the
 number of years of service credit granted by section  six  of  this  act
 times the benefit fraction of the plan under which such member retires.
   § 12. The provisions of section 430 of the retirement and social secu-
 rity  law shall not apply to any benefit or benefit improvement provided
 by this act.
   § 13. The pension benefit costs of section six of this  act  shall  be
 paid  by  the  city  of  New York as provided by applicable law for each
 retirement system covered by this act over a period not to  exceed  five
 years  commencing  in the fiscal year following the fiscal year in which
 this act shall have become a law.
   § 14. Where an employee is eligible to receive the benefit  authorized
 under  section six and the retirement benefit provided for under section
 five of part B of this act, such employee  may  elect  a  section  under
 which  he  or  she  will  participate.    In no event shall the benefits
 provided for in section six of this act be received by any  employee  in
 conjunction with the benefits of section five of part B of this act.
   § 15. This act shall take effect immediately.
                                   PART B
 
   Section 1. Definitions. As used in this act, unless the context clear-
 ly requires otherwise:
   a.  "Retirement  system"  means the New York city teachers' retirement
 system, the New York city board of education retirement  system  or  the

 A. 4548                             8

 New  York city employees' retirement system, exclusive of the retirement
 plans established pursuant to sections 13-156 and 13-157 of the adminis-
 trative code of the city of New York.
   b.  "Teachers'  retirement  system"  means the New York city teachers'
 retirement system.
   c. "Eligible employee" means a person who is a member of a  retirement
 system  of  the city of New York who has attained age fifty-five and has
 at least twenty-five years of creditable service in a retirement system,
 but such term shall not include the following persons:
   (a) elected officials, judges or justices appointed to or  serving  in
 court of record;
   (b)  chief administrative officers of employers which participate in a
 teachers' retirement system;
   (c) appointed members of boards or commissions any  of  whose  members
 are appointed by the governor or by another public officer or body;
   d.  "Active  service"  means  service while being paid on the payroll,
 provided that (a) a leave of absence with pay  shall  be  deemed  active
 service; (b) other approved leave without pay not to exceed twelve weeks
 prior to and the commencement of the designated open period; and (c) the
 period  of time subsequent to a June school term and on or before August
 31 of the year for which an open period is designated for a teacher  (or
 other  employee  employed  on  a  school-year basis) who is otherwise in
 active service on the effective date of this act shall be deemed  active
 service.
   e. "Open period" means the period beginning with the commencement date
 as  defined in subdivision f of this section and shall be ninety days in
 length, as specified by the city  of  New  York.  For  the  purposes  of
 retirement  pursuant  to this act, a service retirement application must
 be filed with the appropriate retirement system not less  than  fourteen
 days  prior  to  the  effective  date of retirement to become effective,
 unless a shorter period of time is permitted under law.
   f. "Commencement date" means the  first  day  the  retirement  benefit
 mandated by this act shall be made available, which shall mean a date or
 dates on or after the effective date of this act to be determined by the
 chief  executive  officer  of  the city of New York. The chief executive
 officer shall notify the head of the appropriate  retirement  system  of
 the  date  of  the  open periods prior to the commencement dates of such
 periods.
   § 2. The city of New York, if it elects  to  participate  pursuant  to
 section  three  of  this act shall establish a commencement date for the
 retirement benefit established under section five of  this  act  by  the
 chief  executive  officer  issuing  an executive order establishing such
 commencement date, provided, however, no executive order  shall  in  any
 manner  supersede  any local charter. A copy of any such executive order
 establishing a commencement date shall be  filed  with  the  appropriate
 retirement  system  or systems, and, if applicable, on forms provided by
 such system. The executive order shall be accompanied by  the  affidavit
 of the chief executive officer certifying the commencement date.
   §  3.  a.  On or after the effective date of this act, the city of New
 York may elect to provide its employees the retirement incentive author-
 ized by this act by the enactment of a local law  provided  however,  no
 local law enacted pursuant to this section shall in any manner supersede
 any local charter.  A copy of such law or resolution shall be filed with
 the  appropriate  retirement  system  or systems, and, if applicable, on
 forms provided by such system. The local law shall be accompanied by the

 A. 4548                             9
 
 affidavit of the chief executive officer certifying the validity of such
 law.
   b. The commencement date of an open period for eligible employees of a
 retirement system of the city of New York who elects retirement benefits
 pursuant  to this section may be up to one hundred eighty days after the
 end of the open period for other eligible  employees,  if  requested  by
 such system.
   § 4. Notwithstanding any other provision of law, any eligible employee
 who  (a)  has been continuously in the active service of the city of New
 York prior to the commencement date of the applicable open  period,  (b)
 files an application for service retirement that is effective during the
 open  period,  and (c) is otherwise eligible for a service retirement as
 of the effective date of the application for retirement shall  be  enti-
 tled to the retirement benefit provided in section five of this act.
   §  5.  a.  Notwithstanding  any  other  provision  of law, an eligible
 employee who is: (a) a member of a retirement system of the city of  New
 York  and  employed by the city of New York and (b) who is entitled to a
 retirement benefit pursuant to section  four  of  this  act  may  retire
 during  the  open  period without the reduction of his or her retirement
 benefit that would otherwise be imposed by  article  11  or  15  of  the
 retirement  and social security law if he or she has attained the age of
 fifty-five and has completed at least twenty-five or more years of cred-
 itable service. An eligible employee who is covered by the provisions of
 articles 11 and 15 of the  retirement  and  social  security  law  shall
 retire  under the provisions of articles 11 and 15 of the retirement and
 social security law.
   b. The chief executive officer of  the  city  of  New  York  may  deny
 participation  in  the  retirement  benefit provided by subdivision a of
 this section if the chief executive officer makes a  determination  that
 the employee holds a position that is deemed critical to the maintenance
 of public health and safety.
   c. Where an employee is eligible for the retirement benefit under this
 section  and the retirement incentive authorized pursuant to section six
 of part A of this act, such employee shall elect a section  under  which
 he  or  she  will participate. The benefits provided by subdivision a of
 this section shall not be conditioned upon the city of New  York  making
 the benefits of section six of part A of this act available to employees
 in their employ. Further, the benefits provided by subdivision a of this
 section  shall  not  be  available  in  conjunction with the benefits of
 section six of part A of this act.
   d. The action of the chief executive officer of the city of  New  York
 in  denying the retirement benefit provided for in subdivision a of this
 section to any individual shall be  subject  to  review  in  the  manner
 provided  for  in  article  78 of the civil practice law and rules. Such
 action for review pursuant to article 78 of the civil practice  law  and
 rules  shall  only  be  commenced  by the individual that was denied the
 retirement benefit provided by subdivision a of this section.
   e. After making any such determination under  subdivision  b  of  this
 section the chief executive officer of the city of New York shall notify
 the  appropriate retirement system or teachers' retirement system of its
 determination.
   § 6. The pension benefit costs of section five of this  act  shall  be
 paid  by  the  city  of  New York as provided by applicable law for each
 retirement system covered by this act over a period not to  exceed  five
 years  commencing  in the fiscal year following the fiscal year in which
 this act shall have become a law.

 A. 4548                            10
 
   § 7. This act shall take effect immediately.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  applicable  effective date of Parts A and B of this act shall be as
 specifically set forth in the last section of such Parts.
   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 provide
 for a temporary Early Retirement  Incentive  Program  (ERI  Program)  to
 allow  certain members of the New York City Employees' Retirement System
 (NYCERS), the New York City Teachers' Retirement System (TRS),  and  the
 New  York  City  Board  of  Education  Retirement System (BERS), who are
 employees of the City of New York (City) and meet  enumerated  criteria,
 to elect immediate retirement with enhanced benefits.
   The  ERI  Program  consists  of  two  parts and is contingent upon the
 City's election to participate in the Program. Part A would  provide  to
 eligible  members, determined by title, seniority, and enumerated policy
 considerations, an additional service credit. Part B  would  remove  the
 application   of  early  retirement  reduction  factors  for  qualifying
 members. The benefits of the respective Parts cannot be combined.
   Eligible NYCRS members would have anywhere from 30 to 90  days  in  an
 open  period  to  elect  and retire under Part A or within a 90-day open
 period following the commencement date to retire under Part B of the ERI
 Program. Multiple open periods, not to exceed 180 days from the  end  of
 an  open  period for other employees, may be requested by NYCRS.  Should
 the City elect to participate in the ERI Program provided by  this  Act,
 it would be required to demonstrate the savings related to the election.
   A member is eligible to participate in Part A of the ERI Program if he
 or she:
   * Is otherwise eligible for service retirement;
   *  Is at least age 50 with 10 or more years of service and is not in a
 plan which permits retirement at half-pay with  25  or  fewer  years  of
 service without regard to age; or
   *  Is  in  a  plan  that permits retirement at half-pay at 25 years of
 service without regard to age  and  would  reach  25  years  of  service
 considering the additional service credit provided in Part A.
   A member is eligible to participate in Part B of the ERI Program if he
 or she is age 55 or older and has at least 25 years of service.
   In addition to the eligibility conditions above, members must also:
   *  Be  in continuous active service preceding the commencement date of
 the open period;
   * For Part A - provide timely written notice of the  intent  to  avail
 himself  or  herself  of the ERI and file for service retirement that is
 effective within the open period;
   * For Part B - file for service retirement that  is  effective  within
 the  open  period  and otherwise be eligible to retire for service as of
 the effective date of retirement.

 A. 4548                            11
 
   Effective Date: Upon enactment and as  determined  by  the  respective
 open periods contained in Parts A and B.
   IMPACT  ON  BENEFITS:  Part  A  would provide one-twelfth of a year of
 additional retirement service credit for each year of  pension  service,
 up  to a maximum of three years of additional retirement service credit.
 Some benefits provided under Part A could be subject to Early Retirement
 Factors (ERF) as specified in the proposed legislation.
   Part B would allow members to retire with an unreduced benefit if they
 are at least age 55 with 25 or more years of service.
   FINANCIAL IMPACT - OVERVIEW: There is no credible  data  available  to
 estimate  the  number  of  members who will retire under the current ERI
 Program and potentially benefit from this proposed legislation.   There-
 fore,  the estimated financial impact has been calculated on a per event
 basis equal to the average increase  in  the  Present  Value  of  future
 employer  contributions  and  in  the  annual employer contributions for
 members who would benefit from the proposed legislation.
   The Present Value of future employer contributions is the  net  result
 of  the  increase in the Present Value of Future Benefits (PVFB) and the
 decrease in the Present Value of member contributions.
   For the purposes of this Fiscal Note, the increase in Present Value of
 future employer contributions was  amortized  over  a  five-year  period
 (four  payments  under  the One-Year Lag Methodology (OYLM)) using level
 dollar payments, the maximum allowable period under the proposed  legis-
 lation. This amortized value is the estimated increase in annual employ-
 er contributions.
   There  will  also be future savings in Employer Contributions assuming
 that these members are not replaced.  This  additional  savings  is  not
 included here.
   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.
   FINANCIAL IMPACT - SUMMARY: Based on the census data and the actuarial
 assumptions and methods described herein, the enactment of this proposed
 legislation would result in an increase in the Present Value of Employer
 Contributions and annual employer contributions.  The estimated  pension
 financial impact has been calculated as the average increase per person.
 A  breakdown  of  the  financial  impact  by NYCRS is shown in the table
 below:
 
                Additional
                Present Value of         Estimated
 NYCRS          Future Employer          Annual Employer
                Contributions            Contributions
                ($ Per Person)           ($ Per Person)
 Part A Only
 NYCERS         $80,700                  $24,600
 TRS            84,800                    25,900
 BERS           37,900                    11,600
 Average        $77,900                  $23,800
 
 Part B Only
 NYCERS         $113,600                 $34,700
 TRS            68,000                    20,800
 BERS           98,400                    30,100
 Average        $109,200                 $33,300

 A. 4548                            12
 
 Both A & B
 NYCERS         $96,500                  $29,500
 TRS            85,000                    26,000
 BERS           43,700                    13,400
 Average        $87,700                  $26,800
   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,  2020  actuarial  valuations  of
 NYCERS,  TRS,  and  BERS.  In accordance with the OYLM used to determine
 employer contributions, the increase  in  employer  contributions  would
 first be reflected in Fiscal Year 2022.
   CENSUS DATA: For purposes of this Fiscal Note, it was assumed that the
 census data had the same age, gender, and service characteristics as the
 census  data used in the Preliminary June 30, 2019 (Lag) actuarial valu-
 ations of NYCERS, TRS, and BERS to determine the Preliminary Fiscal Year
 2021 employer contributions. Active members' salaries have been adjusted
 to reflect estimated salary increases from June 30,  2019  to  June  30,
 2020.
   The  table  below  contains  the  census data for members who meet the
 eligibility requirements and would be impacted by  the  proposed  legis-
 lation  (Potential  Elections),  and  for  a subset of those members who
 would benefit actuarially (Assumed to Elect).
 
 NYCRS               Potential Elections
 Part A Only  Count   Avg Age  Avg Svc Avg Salary
 NYCERS       34,147  58.5     22.3    $83,900
 TRS          31,727  57.7     21.2    101,300
 BERS         9,736   60.2     15.8     49,900
 Total        75,610  58.4     21.0    $86,800
 
 Part B Only  Count   Avg Age  Avg Svc Avg Salary
 NYCERS       5,990   58.2     30.2    $88,600
 TRS          569     58.0     26.9    110,100
 BERS         430     58.6     29.5     72,700
 Total        6,989   58.2     29.9    $89,400
 
 Both A & B   Count   Avg Age  Avg Svc Avg Salary
 NYCERS       34,147  58.5     22.3    $83,900
 TRS          31,727  57.7     21.2    101,300
 BERS         9,736   60.2     15.8     49,900
 Total        75,610  58.4     21.0    $86,800
 
 NYCRS               Assumed to Elect
 Part A Only  Count   Avg Age  Avg Svc Avg Salary
 NYCRS        19,259  60.4     26.3    $87,600
 TRS          11,436  61.3     27.0    109,000
 BERS         3,318   63.6     21.6     51,600
 Total        34,013  61.0     26.1    $91,300
 
 Part B Only  Count   Avg Age  Avg Svc Avg Salary
 NYCERS       5,941   58.2     30.2    $88,400
 TRS          530     57.9     26.9    109,900
 BERS         423     58.6     29.5     71,500
 Total        6,894   58.2     29.9    $89,000

 A. 4548                            13
 
 Both A & B   Count   Avg Age  Avg Svc Avg Salary
 NYCERS       20,204  60.2     26.4    $88,000
 TRS          11,588  61.2     27.0    109,000
 BERS         3,331   63.6     21.6     51,900
 Total        35,123  60.9     26.2    $91,500
 
   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 June 30, 2019 (Lag)  actuarial  valuations
 used  to  determine  the  Preliminary Fiscal Year 2021 employer contrib-
 utions of NYCERS, TRS, and BERS.
   The Actuary is proposing a set of changes for use in the June 30, 2019
 (Lag) actuarial valuations of NYCRS to determine the Final  Fiscal  Year
 2021 Employer Contributions (2021 A&M). If the 2021 A&M is enacted it is
 estimated  that  it  would  produce  increases  in  the Present Value of
 Employer  Contributions  and  annual  employer  contributions  that  are
 approximately 1% larger than the results shown above.
   To  determine the impact of the elective nature of the proposed legis-
 lation, a subgroup based on who could  potentially  benefit  actuarially
 was used. The Present Value of future employer costs (i.e. the PVFB less
 the Present Value of future member contributions) of each member's bene-
 fit  was  determined  under  their current plan and as if retiring imme-
 diately under the ERI Program. If the Present Value of  future  employer
 cost  under  the  ERI  Program  was greater than or equal to the Present
 Value of future employer cost under the member's current plan, then  the
 member was deemed to benefit actuarially.
   Based  on  this  analysis, the costs presented in this Fiscal Note are
 borne only from current NYCERS, TRS, and BERS members who  are  employed
 by  the  City and assumed to benefit from, and thus opt to retire under,
 the ERI Program.
   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, TRS, 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  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 offsetting reduction in salary due to retirements  earlier  than
 expected.
   *  The  impact of potential new hires replacing members who retire due
 to the ERI Program.
   * The  initial,  additional  administrative  costs  to  implement  the
 proposed legislation.
   *  The  impact  of  this  proposed legislation on Other Postemployment
 Benefit (OPEB) costs.
   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,  an  Enrolled
 Actuary under the Employee Retirement Income and Security Act of 1974, a
 Member of the American Academy of Actuaries, and a Fellow of the Confer-
 ence  of Consulting Actuaries. I meet the Qualification Standards of the
 American Academy of Actuaries to render the actuarial opinion  contained

 A. 4548                            14
 
 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 2021-01 dated January 27,
 2021  was prepared by the Chief Actuary for the New York City Employees'
 Retirement System, the New York City Teachers'  Retirement  System,  and
 the New York City Board of Education Retirement System. This estimate is
 intended for use only during the 2021 Legislative Session.