S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5678--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 20, 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 certain 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
 CORRECTION/SANITATION  REVISED PLAN MEMBERS OF THE NEW YORK CITY EMPLOY-
 EES' 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  correction/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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08386-03-4
              

 A. 5678--A                          2
 
 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 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 correction/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 CORRECTION/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
 correction/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 commenc-
 ing  at age sixty-two as provided in section five hundred eleven of this
 article, EXCEPT THAT FOR NEW YORK CITY  UNIFORMED  CORRECTION/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
 CORRECTION/SANITATION REVISED PLAN MEMBERS OF THE NEW YORK CITY  EMPLOY-
 EES' RETIREMENT SYSTEM WHO RECEIVE A SERVICE RETIREMENT BENEFIT PURSUANT
 TO  SECTION FIVE HUNDRED FIVE OF THIS ARTICLE OR A DEFERRED VESTED BENE-
 FIT 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
 CORRECTION/SANITATION REVISED PLAN MEMBERS OF THE NEW YORK CITY  EMPLOY-
 EES'  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. 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
 A. 5678--A                          3
 
 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 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  and
 Correction members of NYCERS.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                     Year      NYCERS
                     2025        32.3
                     2026        34.3
                     2027        37.0
                     2028        40.0
                     2029        43.2
                     2030        46.4
                     2031        49.5
                     2032        52.1
                     2033        54.9
                     2034        57.9
                     2035        60.7
                     2036        63.3
                     2037        65.9
                     2038        68.6
                     2039        71.3
                     2040        73.8
                     2041        62.5
                     2042        65.0
                     2043        67.6
                     2044        70.4
                     2045        73.1
                     2046        75.9
                     2047        78.6
                     2048        81.3
                     2049        84.2
    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:                    366.8
 A. 5678--A                          4
 
              PV of Employee Contributions:      0.0
              PV of Employer Contributions:      366.8
              Unfunded Accrued Liabilities:      127.1
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                 NYCERS
              Number of Payments:                16
              Fiscal Year of Last Payment:       2040
              Amortization Payment:              13.9M
 
   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:                    7,415
              - Average Age:                     39.2
              - Average Service:                 6.7
              - Average Salary:                  100,200
              Term. Vested Members
              - Number Count:                    589
              - Average Age:                     38.7
 
   IMPACT  ON  MEMBER  BENEFITS: Currently, Tier 3 normal service retire-
 ment, early service retirement, and vested retirement benefits for Sani-
 tation and Correction 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
 A. 5678--A                          5
 
 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 2024-08 dated January 25,
 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.