NY State Assembly Bill 2023-A6865A

Assembly Bill A6865A

2023-2024 Legislative Session

Grants service credit to members of the uniformed correction force of the New York city department of correction covered by provisions of law for over 25 years

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Current Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 27, 2024	print number 6865a
Mar 27, 2024	amend and recommit to governmental employees
Jan 03, 2024	referred to governmental employees
May 08, 2023	referred to governmental employees

Bill Amendments

Original

A (Active)

2023-A6865 - Details

See Senate Version of this Bill:: S6322
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §504, R & SS L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6133
2019-2020: S5435
2021-2022: S6986

2023-A6865 - Summary

Grants service credit to members of the uniformed correction force of the New York city department of correction covered by provisions of law for over 25 years.

2023-A6865 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6865
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 8, 2023
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   retirement  benefits  for  general members in the uniformed correction
   force of the New York city department of correction

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision d of section 504 of the retirement and social
 security law, as amended by chapter 18 of the laws of 2012,  is  amended
 to read as follows:
   d.  The  early  service  retirement benefit for general members in the
 uniformed  correction  force  of  the  New  York  city   department   of
 correction,  who are not entitled to an early service retirement benefit
 pursuant to subdivision c of section five hundred four-a of this article
 or subdivision c of section five  hundred  four-b  of  this  article  or
 subdivision  c  of  section  five hundred four-d of this article, or for
 general members in the uniformed personnel  in  institutions  under  the
 jurisdiction of the department of corrections and community supervision,
 as  defined  in  subdivision  i  of section eighty-nine of this chapter,
 shall be a pension equal to one-fiftieth of final average  salary  times
 years  of  credited  service  at  the completion of twenty-five years of
 service, [but not in excess of fifty percent of  final  average  salary]
 PLUS  ONE-SIXTIETH  OF  FINAL  AVERAGE  SALARY  TIMES  YEARS OF CREDITED
 SERVICE IN EXCESS OF TWENTY-FIVE, provided, however, that the provisions
 of  this  section  shall  not  apply  to  a  New  York  city   uniformed
 correction/sanitation revised plan member.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF BILL: This proposed legislation would amend Retirement and
 Social Security Law (RSSL) Section 504 by modifying the service  retire-
 ment benefit calculation formula for uniformed employees of the New York
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08667-02-3

 A. 6865                             2
 
 City  Department  of  Correction (Correction) who are members of the New
 York City Employees' Retirement System (NYCERS) and are subject  to  the
 Early  Service  Retirement  Benefit Plan for General Members pursuant to
 RSSL  Section  504  (CO-25  Plan).  The  CO-25 Plan is limited to Tier 3
 Correction members who joined NYCERS prior to December 19,  1990  (CO-25
 Plan Members).
   Effective Date: Upon enactment.
   IMPACT ON BENEFITS: Currently, upon reaching 25 or more years of cred-
 ited  service,  CO-25  Plan Members are entitled to a service retirement
 pension benefit equal to:
   * 50% of Final Average Salary (FAS).
   Under the proposed legislation, if  enacted,  the  service  retirement
 benefit for CO-25 Plan Members who retire for service under RSSL Section
 504(d)  after  the effective date of the proposed legislation with 25 or
 more years of credited service would be equal to:
   * 50% of FAS for the first 25 years of credited service, plus
   * 1/60th of FAS for each additional year of credited service, or frac-
 tion thereof, exceeding 25 years (if any).
   FINANCIAL IMPACT - PRESENT VALUES: Based on the census data and  actu-
 arial  assumptions  and  methods  herein, the enactment of this proposed
 legislation would increase the present value of future employer contrib-
 utions by approximately $4.0 million.
   Under the Entry Age Normal cost method used to determine the  employer
 contributions  to  NYCERS,  there  would  be an increase in the Unfunded
 Accrued Liability (UAL) of approximately $3.9 million and an increase in
 the Present Value of Future Employer Normal Cost of $0.1 million.
   FINANCIAL IMPACT - ANNUAL EMPLOYER  CONTRIBUTIONS:  The  enactment  of
 this  proposed legislation would result in an initial increase in annual
 employer contributions of approximately $4.3 million which is the result
 of an increase in the Normal Cost in addition to the UAL payment.
   New UAL attributable to benefit changes are generally  amortized  over
 the remaining working lifetime of those impacted by the benefit changes.
 The remaining working lifetime for this group is approximately two years
 and  the  increase in UAL was therefore amortized over a two-year period
 (one payments under the One-Year Lag  Methodology)  using  level  dollar
 payments.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the June 30, 2022 actuarial valuation of NYCERS  to  deter-
 mine the Preliminary Fiscal Year 2024 employer contributions.
   The  21  NYCERS  CO-25 Plan Members as of June 30, 2022 had an average
 age of approximately 59.9 years, average service of  approximately  33.3
 years, and an average salary of approximately $158,500.
   ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
 been calculated based on the actuarial assumptions and methods in effect
 for the Preliminary Fiscal Year 2024 employer contributions of NYCERS.
   For  the  purposes of this Fiscal Note, it is assumed that the changes
 would be reflected for the first time in the  June  30,  2022  actuarial
 valuation  of NYCERS used to determine employer contributions for Fiscal
 Year 2024.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on the realization of the actuarial assumptions used, demograph-
 ics of the impacted population, and other factors  such  as  investment,
 contribution,  and other risks. If actual experience deviates from actu-
 arial assumptions, the actual costs could differ  from  those  presented
 herein.
 A. 6865                             3
 
   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 initial additional administrative costs of NYCERS 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, Marek Tyszkiewicz, am the Chief
 Actuary for, and independent of, the New York  City  Retirement  Systems
 and  Pension  Funds. I am an Associate of the Society of Actuaries and a
 Member of the American Academy of Actuaries. I am a member of NYCERS but
 do not believe it impairs my objectivity and 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.
   FISCAL  NOTE  IDENTIFICATION: This Fiscal Note 2023-29 dated April 12,
 2023 was prepared by the Chief Actuary for the New York City  Employees'
 Retirement  System.  This  estimate  is intended for use only during the
 2023 Legislative Session.

2023-A6865A (ACTIVE) - Details

See Senate Version of this Bill:: S6322
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §504, R & SS L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6133
2019-2020: S5435
2021-2022: S6986

2023-A6865A (ACTIVE) - Summary

Grants service credit to members of the uniformed correction force of the New York city department of correction covered by provisions of law for over 25 years.

2023-A6865A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6865--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 8, 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
   retirement  benefits  for  general members in the uniformed correction
   force of the New York city department of correction
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision d of section 504 of the retirement and social
 security law, as amended by chapter 18 of the laws of 2012,  is  amended
 to read as follows:
   d.  The  early  service  retirement benefit for general members in the
 uniformed  correction  force  of  the  New  York  city   department   of
 correction,  who are not entitled to an early service retirement benefit
 pursuant to subdivision c of section five hundred four-a of this article
 or subdivision c of section five  hundred  four-b  of  this  article  or
 subdivision  c  of  section  five hundred four-d of this article, or for
 general members in the uniformed personnel  in  institutions  under  the
 jurisdiction of the department of corrections and community supervision,
 as  defined  in  subdivision  i  of section eighty-nine of this chapter,
 shall be a pension equal to one-fiftieth of final average  salary  times
 years  of  credited  service  at  the completion of twenty-five years of
 service, [but not in excess of fifty percent of  final  average  salary]
 PLUS  ONE-SIXTIETH  OF  FINAL  AVERAGE  SALARY  TIMES  YEARS OF CREDITED
 SERVICE IN EXCESS OF TWENTY-FIVE, provided, however, that the provisions
 of  this  section  shall  not  apply  to  a  New  York  city   uniformed
 correction/sanitation revised plan member.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08667-03-4

 A. 6865--A                          2
 
   SUMMARY:  This proposed legislation would increase the service retire-
 ment benefit for credited  service  exceeding  25  years  for  uniformed
 employees  of  the  New  York  City  Department of Correction who joined
 NYCERS prior to December 19, 1990 (Tier 3 CO-25 Plan Members).
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
          by Fiscal Year for the first 25 years ($ in Thousands)
 
                             Year       NYCERS
                             2025        4,484
                             2026           14
                             2027           11
                             2028            7
                             2029            3
                             2030            2
                             2031            1
                             2032            1
                             2033            0
                             2034            0
                             2035            0
                             2036            0
                             2037            0
                             2038            0
                             2039            0
                             2040            0
                             2041            0
                             2042            0
                             2043            0
                             2044            0
                             2045            0
                             2046            0
                             2047            0
                             2048            0
                             2049            0
 
   The entire increase in employer contributions will be allocated to New
 York City.
 
           INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                   as of June 30, 2023 ($ in Thousands)
 
                Present Value (PV)                  NYCERS
                PV of Benefits:                      4,081
                PV of Employee Contributions:            0
                PV of Employer Contributions:        4,081
                Unfunded Accrued Liabilities:        4,034
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY

                                                    NYCERS
                   Number of Payments:                 1
                   Fiscal Year of Last Payment:      2025
                   Amortization Payment:           4,465 K
 A. 6865--A                          3
 
   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:                          19
                - Average Age:                         60.6
                - Average Service:                     35.0
                - Average Salary:                   164,900
 
   IMPACT  ON  MEMBER BENEFITS: Currently, upon reaching 25 or more years
 of credited service, CO-25  Plan  Members  are  entitled  to  a  service
 retirement pension benefit equal to 50% of Final Average Salary (FAS).
   Under  the  proposed  legislation,  CO-25  Plan Members who retire for
 service under RSSL Section  504(d)  after  the  effective  date  of  the
 proposed  legislation with 25 or more years of credited service would be
 equal to 50% of FAS for the first 25 years  of  credited  service,  plus
 1/60th  of FAS for each additional year of credited service, or fraction
 thereof, exceeding 25 years (if any).
   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 2024-36 dated March 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.

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