S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5374--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 9, 2023
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental Employees -- recommitted to the Committee on
   Governmental Employees in accordance with Assembly Rule 3, sec.  2  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee

 AN ACT to amend the retirement and social security law, in  relation  to
   service  retirement  benefits  for uniformed sanitation members of the
   New York city employees' retirement system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 505 of the retirement and social security law, as
 amended by chapter 18 of the  laws  of  2012,  is  amended  to  read  as
 follows:
   § 505. Service retirement benefits; police/fire members, New York city
 uniformed  correction/sanitation  revised  plan members and investigator
 revised plan members. a.  The  normal  service  retirement  benefit  for
 police/fire  members,  New  York  city  uniformed  correction/sanitation
 revised plan members and investigator revised  plan  members  at  normal
 retirement  age shall be a pension equal to fifty percent of final aver-
 age salary, less fifty percent of the primary social security retirement
 benefit commencing at age sixty-two, as provided in section five hundred
 eleven of this article, EXCEPT THAT FOR NEW YORK CITY UNIFORMED  SANITA-
 TION  REVISED  PLAN  MEMBERS  OF THE NEW YORK CITY EMPLOYEES' RETIREMENT
 SYSTEM, THE NORMAL SERVICE RETIREMENT BENEFIT SHALL NOT  BE  REDUCED  BY
 THE  PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-
 TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   b. The early service retirement benefit for police/fire  members,  New
 York  city  uniformed  sanitation  revised plan members and investigator
 revised plan members shall be a pension  equal  to  two  and  one-tenths
 percent  of  final average salary times years of credited service at the
 completion of twenty years of service or upon attainment of  age  sixty-
 two,  increased  by one-third of one percent of final average salary for
 each month of service in excess of twenty years, but not  in  excess  of
 fifty percent of final average salary, less fifty percent of the primary
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06943-03-4
 A. 5374--A                          2
 
 social  security  retirement  benefit  commencing  at  age  sixty-two as
 provided in section five  hundred  eleven  of  this  article,  provided,
 however,  that  New York city police/fire revised plan members, New York
 city  uniformed sanitation revised plan members and investigator revised
 plan members shall not be eligible to retire for service  prior  to  the
 attainment  of  twenty  years  of credited service, AND PROVIDED FURTHER
 THAT FOR NEW YORK CITY UNIFORMED SANITATION REVISED PLAN MEMBERS OF  THE
 NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE EARLY SERVICE RETIREMENT
 BENEFIT  SHALL  NOT BE REDUCED BY THE PRIMARY SOCIAL SECURITY RETIREMENT
 BENEFIT COMMENCING AT AGE SIXTY-TWO AS PROVIDED IN SECTION FIVE  HUNDRED
 ELEVEN OF THIS ARTICLE.
   c.  A police/fire member, a New York city uniformed sanitation revised
 plan member or an investigator revised  plan  member  who  retires  with
 twenty-two  years  of  credited  service or less may become eligible for
 annual escalation of the service retirement benefit if he elects to have
 the payment of his benefit commence on the date he would have  completed
 twenty-two  years  and  one month or more of service. In such event, the
 service retirement benefit shall equal  two  percent  of  final  average
 salary  for  each  year  of  credited service, less fifty percent of the
 primary social security retirement benefit commencing at  age  sixty-two
 as  provided in section five hundred eleven of this article, EXCEPT THAT
 FOR NEW YORK CITY UNIFORMED SANITATION REVISED PLAN MEMBERS OF  THE  NEW
 YORK  CITY  EMPLOYEES' RETIREMENT SYSTEM, THE SERVICE RETIREMENT BENEFIT
 SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL SECURITY  RETIREMENT  BENEFIT
 COMMENCING  AT  AGE SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN
 OF THIS ARTICLE.
   § 2. Section 511 of the retirement and social security law is  amended
 by adding a new subdivision h to read as follows:
   H.  THIS SECTION SHALL NOT APPLY TO NEW YORK CITY UNIFORMED SANITATION
 REVISED PLAN MEMBERS OF THE NEW YORK CITY EMPLOYEES'  RETIREMENT  SYSTEM
 WHO  RECEIVE  A  SERVICE  RETIREMENT  BENEFIT  PURSUANT  TO SECTION FIVE
 HUNDRED FIVE OF THIS ARTICLE OR A DEFERRED VESTED  BENEFIT  PURSUANT  TO
 SECTION FIVE HUNDRED SIXTEEN OF THIS ARTICLE.
   § 3. Subdivision c of section 516 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   c.  The  deferred vested benefit of police/fire members, New York city
 police/fire   revised   plan   members,   New   York   city    uniformed
 correction/sanitation  revised plan members or investigator revised plan
 members shall be a pension commencing at early retirement age  equal  to
 two  and one-tenths percent of final average salary times years of cred-
 ited service, less fifty percent of the primary social security  retire-
 ment  benefit  commencing  at age sixty-two, as provided in section five
 hundred eleven of this article, EXCEPT THAT FOR NEW YORK CITY  UNIFORMED
 SANITATION  REVISED PLAN MEMBERS OF THE NEW YORK CITY EMPLOYEES' RETIRE-
 MENT SYSTEM, THE SERVICE RETIREMENT BENEFIT SHALL NOT BE REDUCED BY  THE
 PRIMARY  SOCIAL  SECURITY RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-TWO
 AS  PROVIDED  IN  SECTION  FIVE  HUNDRED  ELEVEN  OF  THIS  ARTICLE.   A
 police/fire  member,  a New York city police/fire revised plan member, a
 New York city uniformed correction/sanitation  revised  plan  member  or
 investigator revised plan member may elect to receive his vested benefit
 commencing  at  early  retirement  age  or age fifty-five. If the vested
 benefit commences before early retirement  age,  the  benefit  shall  be
 reduced  by one-fifteenth for each year, if any, that the member's early
 retirement age is in excess of age sixty, and by one-thirtieth for  each
 additional  year  by  which  the vested benefit commences prior to early
 A. 5374--A                          3
 
 retirement age. If such vested benefit  is  deferred  until  after  such
 member's  normal  retirement  age,  the  benefit  shall  be computed and
 subject to annual escalation in the same manner as provided for an early
 retirement  benefit  pursuant  to  subdivision c of section five hundred
 five of this article.
   § 4. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would amend Sections of the Retire-
 ment and Social Security Law (RSSL) to eliminate the offset equal to 50%
 of  the  primary  social security benefit in the service, early service,
 and vested retirement benefits for certain Tier 3 Sanitation members  of
 NYCERS.
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                               Year      NYCERS
                               2025      17.4
                               2026      18.5
                               2027      19.9
                               2028      21.5
                               2029      23.1
                               2030      24.6
                               2031      26.1
                               2032      27.4
                               2033      29.0
                               2034      30.6
                               2035      32.0
                               2036      33.4
                               2037      34.9
                               2038      36.3
                               2039      37.7
                               2040      39.2
                               2041      40.7
                               2042      35.4
                               2043      36.9
                               2044      38.4
                               2045      40.0
                               2046      41.6
                               2047      43.2
                               2048      44.8
                               2049      46.4
    Employer Contribution impact beyond Fiscal Year 2049 is not shown.
  Projected contributions include future new hires that may be impacted.
 The  entire  increase in employer contributions will be allocated to New
 York City.
           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)
                   Present Value (PV)                  NYCERS
                   PV of Benefits:                      214.5
                   PV of Employee Contributions:          0.0
                   PV of Employer Contributions:        214.5
                   Unfunded Accrued Liabilities:         64.0
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                       NYCERS
                   Number of Payments:                   17
                   Fiscal Year of Last Payment:         2041
 A. 5374--A                          4
 
                   Amortization Payment:                6.8M
 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.
                                                       NYCERS
                   Active Members
                   - Number Count:                      4,627
                   - Average Age:                        39.2
                   - Average Service:                       6
                   - Average Salary:                   89,800
                   Term. Vested Members
                   - Number Count:                         67
                   - Average Age:                        41.5
   IMPACT  ON  MEMBER  BENEFITS: Currently, Tier 3 normal service retire-
 ment, early service retirement, and vested retirement benefits for Sani-
 tation members in 22-Year Plans are subject to an offset equal to 50% of
 the primary social security benefit  as  defined  in  RSSL  Section  511
 beginning at age 62.
   Under  the proposed legislation, the offset for such benefits would be
 eliminated resulting in an increase in benefits.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems. In addition:
   * New entrants were assumed to replace exiting members so  that  total
 payroll increases by 3% each year for impacted groups. New entrant demo-
 graphics were developed based on data for recent new hires and actuarial
 judgement.
   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).
   This Fiscal Note does not include cost analyses relating to provisions
 contained in RSSL Section 500(c).
   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 2024-06 dated January 22,
 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.