S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10500
 
                           I N  A S S E M B L Y
 
                               May 29, 2024
                                ___________
 
 Introduced   by   COMMITTEE  ON  RULES  --  (at  request  of  M.  of  A.
   Pheffer Amato) -- read once and referred to the Committee  on  Govern-
   mental Employees
 
 AN  ACT  to  amend  the  administrative code of the city of New York, in
   relation to affording certain uniformed members of the fire department
   pension fund with an increased pension benefit for each year of  addi-
   tional service beyond their required minimum service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (a) of paragraph 2 of subdivision a of section
 13-359 of the administrative code of the city of New York is amended  to
 read as follows:
   (a)  a  pension  of  [one-sixtieth]  ONE-FORTIETH of [his or her] SUCH
 MEMBER'S average annual earnings from [his or her] THEIR date of  eligi-
 bility for retirement to the actual date of retirement; and
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would increase the additional annu-
 al pension for Tier 2 New York City Fire Pension Fund (FIRE) members who
 retire with more than 20 years of service from 1/60th to 1/40th of total
 annual earnings after reaching 20 years of credited service.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
 
                     Year       FIRE
 
                     2025       94.2
                     2026       93.6
                     2027       93.2
                     2028       92.7
                     2029       92.0
                     2030       91.4
                     2031       90.7
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14129-02-4
 A. 10500                            2
 
                     2032       90.0
                     2033       10.8
                     2034       10.0
                     2035       9.2
                     2036       8.3
                     2037       7.4
                     2038       6.6
                     2039       5.7
                     2040       4.9
                     2041       4.1
                     2042       3.3
                     2043       2.6
                     2044       2.0
                     2045       1.5
                     2046       1.1
                     2047       0.7
                     2048       0.5
                     2049       0.3
     Employer Contribution impact beyond Fiscal Year 2049 is not shown.

   The  increase  in employer contributions will be allocated to New York
 City.
 
           INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)
 
      Present Value (PV)                  FIRE
 
      PV of Benefits:                     565.3
      PV of Employee Contributions:       0.0
      PV of Employer Contributions:       565.3
      Unfunded Accrued Liabilities:       452.6
 
                 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                                          FIRE
 
      Number of Payments:                 8
      Fiscal Year of Last Payment:        2032
      Amortization Payment:               78.4 M
 
   Unfunded Accrued Liability increases were amortized over the  expected
 remaining  working  lifetime  of  those  impacted by the benefit changes
 using level dollar payments.
   CENSUS DATA: The estimates presented herein are based  on  preliminary
 census  data  collected  as  of  June  30, 2023. The census data for the
 impacted population is summarized below.
 
                                          FIRE
      Active Members
      - Number Count:                     5,690
      - Average Age:                      47.3
      - Average Service:                  21.3
      - Average Salary:                   163,500
 A. 10500                            3
 
   IMPACT ON MEMBER BENEFITS: This proposed  legislation  would  increase
 the  annual  pension for certain members who retire for service or acci-
 dental disability from 1/60th to 1/40th of average annual earnings  from
 the  date of eligibility for retirement to the actual date of retirement
 for  each  additional  year  of  credited  service, or fraction thereof,
 exceeding 20 years.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on  the  actuarial  assumptions, methods, and models used, demo-
 graphics of the impacted population, and other factors such  as  invest-
 ment,  contribution, and other risks. If actual experience deviates from
 actuarial  assumptions,  the  actual  costs  could  differ  from   those
 presented  herein.  Quantifying  these risks is beyond the scope of this
 Fiscal Note.
   This Fiscal Note is intended to measure  pension-related  impacts  and
 does  not  include other potential costs (e.g., administrative and Other
 Postemployment Benefits).
   STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
 sky are members of the Society of Actuaries and the American Academy  of
 Actuaries.  We  are  members of NYCERS but do not believe it impairs our
 objectivity and we meet the  Qualification  Standards  of  the  American
 Academy  of  Actuaries to render the actuarial opinion contained herein.
 To the best of our 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 2024-59 dated May 14,
 2024 was prepared by the Chief Actuary for the New York City  Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2024 Legislative Session.