S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7714--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 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 administrative code of the  city  of  New  York,  in
   relation to promotions of detectives
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 14-114 of the administrative code of  the  city  of
 New York is amended by adding a new subdivision d to read as follows:
   D.  (1)  WHEN  A DETECTIVE OF THE THIRD GRADE SHALL HAVE SERVED IN THE
 RANK OF DETECTIVE OF THE THIRD GRADE FOR A PERIOD OF FIFTEEN YEARS, SUCH
 DETECTIVE SHALL HAVE THE SAME RIGHTS IN RESPECT TO  THE  POLICE  PENSION
 FUND  AS  A DETECTIVE OF THE THIRD GRADE DETAILED TO ACT AS DETECTIVE OF
 THE SECOND GRADE.
   (2) WHEN A DETECTIVE OF THE SECOND GRADE SHALL HAVE SERVED IN THE RANK
 OF DETECTIVE OF THE SECOND GRADE FOR A PERIOD OF TEN YEARS, SUCH  DETEC-
 TIVE SHALL HAVE THE SAME RIGHTS IN RESPECT TO THE POLICE PENSION FUND AS
 A  DETECTIVE  OF  THE  SECOND  GRADE DETAILED TO ACT AS DETECTIVE OF THE
 FIRST GRADE.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would increase the salary used  for
 determining  pension  benefits  for  certain NYPD detectives to salaries
 equivalent to a detective of the next  higher  rank.  Pensions  for  3rd
 grade  detectives,  who served in such rank for 15 years, would be based
 on salaries for 2nd grade detectives, and pensions for 2nd grade  detec-
 tives,  who served in such rank for 10 years, would be based on salaries
 of 1st grade detectives.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08615-03-4
 A. 7714--A                          2
              

 
             ILLUSTRATION - INCREASE IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
 
                     Year            POLICE
                     2025            0.0
                     2026            0.9
                     2027            1.8
                     2028            2.7
                     2029            3.7
                     2030            4.7
                     2031            5.7
                     2032            6.8
                     2033            7.9
                     2034            9.1
                     2035            10.3
                     2036            11.6
                     2037            13.0
                     2038            14.5
                     2039            16.1
                     2040            16.9
                     2041            17.7
                     2042            18.6
                     2043            19.5
                     2044            20.4
                     2045            21.4
                     2046            22.4
                     2047            23.4
                     2048            24.5
                     2049            25.5
 
   Projected contributions are based on historical experience for Tier 2
        members. Future retirement experience may differ as Tier 3
                         members begin to retire.

   The entire increase in employer contributions will be allocated to New
 York City.
 
           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
 
   The enactment of this proposed legislation is expected to increase the
 Present Value of Future Benefits (PVFB) by approximately $7.5 million in
 the first year and every year thereafter. Each year's PVFB increase will
 depend  on  the  actual  experience  of  benefiting retirees and will be
 recognized in the year benefits are first payable.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
           Recognized as Ongoing Gain/Loss         POLICE
           Number of Payments:                     14
           Fiscal Year of Last Payment:            N/A
           First-year Amortization Payment:        $0.9 M
 
   CENSUS DATA: The estimates presented herein are based on data provided
 by the Police Pension Fund which was not audited  but  was  checked  for
 reasonableness.    This  data  was  used  to  supplement  valuation data
 collected as of June 30, 2023.
 A. 7714--A                          3
 
   Historical experience was used to estimate the number of retirees  who
 could  potentially  benefit from this proposed legislation and is summa-
 rized below.
   *  3rd  grade detectives who retired after serving in such rank for 15
 years - 187 retired over the past five years.
   * 2nd grade detectives who retired after serving in such rank  for  10
 years - 78 retired over the past five years.
   The average age of all detectives who retired over the past five years
 is 49.3 for males and 49.2 for females, where approximately 84% of reti-
 rees were male.
   IMPACT  ON  MEMBER BENEFITS: The proposed legislation would permit 3rd
 grade police detectives, who have served in such grade for at  least  15
 years,  and  2nd  grade police detectives, who have served in such grade
 for at least 10 years, to have their pension  calculations  based  on  a
 higher  assumed  salary. Pensions for such 3rd grade detectives would be
 based on salaries 2nd grade detectives and pensions for such  2nd  grade
 detectives would be based on salaries of 1st grade detectives.
   With  respect  to  an individual member, the impact on benefits due to
 this proposed legislation could vary greatly depending on  the  member's
 age, years of service, retirement cause, and Tier.
   ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
 calculated based on the actuarial assumptions and methods to be used for
 the Preliminary Fiscal Year 2025 employer contributions of the  impacted
 retirement systems. In addition:
   *  Future  retirement  patterns were assumed to remain consistent with
 prior experience.  The number of 3rd grade detectives who  retire  after
 serving  in  such  rank  for 15 years was assumed to be 40 per year. The
 number of 2nd grade detectives who retire after serving in such rank for
 10 years was assumed to be 20 per year.
   * For 3rd grade police detectives who  retire  and  benefit  from  the
 proposed  legislation  in  the  first  year, annual pension benefits are
 assumed to increase by $8,700 for Tier 2 members and $8,400 for  Tier  3
 members.  Each year thereafter, annual pension benefits for new retirees
 are assumed to increase by an additional 3% per year.
   * For 2nd grade police detectives who  retire  and  benefit  from  the
 proposed  legislation  in  the  first  year, annual pension benefits are
 assumed to increase by $11,600 for Tier 2 members and $11,300 for Tier 3
 members. Each year thereafter, annual pension benefits for new  retirees
 are assumed to increase by an additional 3% per year.
   * For police detectives who benefit from the proposed legislation, the
 assumed  number  of retirements for each gender, and the assumed retire-
 ment ages for each gender are assumed to remain the same.
   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
 A. 7714--A                          4
 
 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  2024-56  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.