S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9527
 
                           I N  A S S E M B L Y
 
                              March 20, 2024
                                ___________
 
 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 and the education
   law, in relation to the  retirement  contributions  of  career  public
   employees
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision a of section 517 of the retirement  and  social
 security  law,  as amended by chapter 18 of the laws of 2012, the second
 undesignated paragraph as amended by section 1 of part SS of chapter  56
 of the laws of 2022, is amended to read as follows:
   a.  Members  shall  contribute  three  percent  of annual wages to the
 retirement system in which they  have  membership,  provided  that  such
 contributions  shall  not  be  required  for more than thirty years, for
 general members, or twenty-five years, for police/fire members,  [except
 that  beginning April first, two thousand thirteen for members who first
 become members of the New York state  and  local  employees'  retirement
 system  on  or after April first, two thousand twelve, the rate at which
 each such member shall contribute in any current plan year (April  first
 to  March thirty-first) shall be determined by reference to the wages of
 such member in the second plan year (April first to March  thirty-first)
 preceding such current plan year as follows:
   1. members with wages of forty-five thousand dollars per annum or less
 shall contribute three per centum of annual wages;
   2.  members with wages greater than forty-five thousand per annum, but
 not more than fifty-five thousand per annum shall contribute  three  and
 one-half per centum of annual wages;
   3.  members with wages greater than fifty-five thousand per annum, but
 not more than seventy-five thousand per annum shall contribute four  and
 one-half per centum of annual wages;
   4. members with wages greater than seventy-five thousand per annum but
 not  more  than one hundred thousand per annum shall contribute five and
 three-quarters per centum of annual wages; and

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14515-04-4
              

 A. 9527                             2

   5. members with wages greater than  one  hundred  thousand  per  annum
 shall contribute six per centum of annual wages.
   Notwithstanding  the  foregoing,  during  each of the first three plan
 years (April first to March  thirty-first)  in  which  such  member  has
 established  membership  in  the  New  York  state  and local employees'
 retirement system, such member shall contribute a percentage  of  annual
 wages  in accordance with the preceding schedule based upon a projection
 of annual wages provided by the employer. Notwithstanding the foregoing,
 when determining the rate at which each such member who became a  member
 of the New York state and local employees' retirement system on or after
 April  first,  two  thousand  twelve  shall contribute for any plan year
 (April first to March thirty-first) between April  first,  two  thousand
 twenty-two and April first, two thousand twenty-four, such rate shall be
 determined by reference to employees annual base wages of such member in
 the  second plan year (April first to March thirty-first) preceding such
 current plan year] EXCEPT THAT BEGINNING ON AND AFTER APRIL  FIRST,  TWO
 THOUSAND  TWENTY-FOUR,  FOR  MEMBERS  WHO  JOINED THE NEW YORK STATE AND
 LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND
 TWELVE, THE CONTRIBUTIONS IN ANY CURRENT PLAN YEAR (APRIL FIRST TO MARCH
 THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE BASE WAGES OF SUCH
 MEMBER AS OF APRIL FIRST IN THE PREVIOUS PLAN YEAR AS FOLLOWS:
   1. MEMBERS WITH BASE WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER  ANNUM
 OR LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   2.  MEMBERS  WITH  BASE  WAGES  GREATER THAN SEVENTY-FIVE THOUSAND PER
 ANNUM, BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE
 FOUR PER CENTUM OF ANNUAL WAGES; AND
   3. MEMBERS WITH BASE WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
 SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
   NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
 ESTABLISHED MEMBERSHIP IN  THE  NEW  YORK  STATE  AND  LOCAL  EMPLOYEES'
 RETIREMENT  SYSTEM,  SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL
 WAGES IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A  PROJECTION
 OF ANNUAL WAGES PROVIDED BY THE EMPLOYER. Base wages shall include regu-
 lar  pay, shift differential pay, location pay, and any increased hiring
 rate pay, but shall not include any overtime payments.
   The head of each retirement system shall promulgate  such  regulations
 as  may  be  necessary  and appropriate with respect to the deduction of
 such contribution from members' wages and for  the  maintenance  of  any
 special fund or funds with respect to amounts so contributed.
   § 2. Paragraphs 1 and 2 of subdivision a of section 613 of the retire-
 ment  and  social security law, as amended by chapter 510 of the laws of
 2015, the second undesignated  paragraphs  of  paragraphs  1  and  2  as
 amended  by  section 2 of part SS of chapter 56 of the laws of 2022, are
 amended to read as follows:
   1. Except as provided by paragraph two of  this  subdivision,  members
 shall  contribute three percent of annual wages to the retirement system
 in which they have membership, [except that beginning April  first,  two
 thousand  thirteen  for  members  who  first  become members of a public
 retirement system of the state on or after  April  first,  two  thousand
 twelve,  the  rate  at  which  each  such member shall contribute in any
 current plan year (April first to March thirty-first, except for members
 of the New York city employees' retirement system, New York city  teach-
 ers'  retirement  system and New York city board of education retirement
 system, plan year shall mean January first through December thirty-first
 commencing with the January first next succeeding the effective date  of
 the  chapter of the laws of two thousand fifteen that amended this para-
 A. 9527                             3

 graph) shall be determined by reference to the wages of such  member  in
 the  second  plan  year  (April  first to March thirty-first, except for
 members of the New York city employees' retirement system, New York city
 teachers' retirement system and New York city board of education retire-
 ment  system,  plan year shall mean January first through December thir-
 ty-first commencing with the January first next succeeding the effective
 date of the chapter of the laws of two  thousand  fifteen  that  amended
 this paragraph) preceding such current plan year as follows:
   (i)  members  with  wages  of forty-five thousand dollars per annum or
 less shall contribute three per centum of annual wages;
   (ii) members with wages greater than forty-five  thousand  per  annum,
 but  not  more than fifty-five thousand per annum shall contribute three
 and one-half per centum of annual wages;
   (iii) members with wages greater than fifty-five thousand  per  annum,
 but  not more than seventy-five thousand per annum shall contribute four
 and one-half per centum of annual wages;
   (iv) members with wages greater than seventy-five thousand  per  annum
 but  not  more than one hundred thousand per annum shall contribute five
 and three-quarters per centum of annual wages; and
   (v) members with wages greater than one  hundred  thousand  per  annum
 shall contribute six per centum of annual wages.
   Notwithstanding  the  foregoing,  during  each of the first three plan
 years (April first to March thirty-first, except for members of New York
 city employees' retirement system, New York  city  teachers'  retirement
 system and New York city board of education retirement system, plan year
 shall  mean  January first through December thirty-first commencing with
 the January first next succeeding the effective  date  of  chapter  five
 hundred  ten  of  the laws of two thousand fifteen) in which such member
 has established membership in a public retirement system of  the  state,
 such  member shall contribute a percentage of annual wages in accordance
 with the preceding schedule based upon  a  projection  of  annual  wages
 provided  by the employer. Notwithstanding the foregoing, when determin-
 ing the rate at which each such member who became a member  of  the  New
 York state and local employees' retirement system, New York city employ-
 ees'  retirement  system,  New York city teachers' retirement system and
 New York city board of education retirement system, on  or  after  April
 first,  two  thousand  twelve  shall contribute for any plan year (April
 first to March thirty-first, except for members of  the  New  York  city
 employees'  retirement system, New York city teachers' retirement system
 and New York city board of education retirement system, plan year  shall
 mean January first through December thirty-first commencing with January
 first  next succeeding the effective date of chapter five hundred ten of
 the laws of two thousand fifteen)  between  April  first,  two  thousand
 twenty-two and April first, two thousand twenty-four, such rate shall be
 determined by reference to employees annual base wages of such member in
 the  second plan year (April first to March thirty-first) preceding such
 current plan year] EXCEPT THAT BEGINNING ON AND AFTER APRIL  FIRST,  TWO
 THOUSAND  TWENTY-FOUR,  FOR MEMBERS OF A PUBLIC RETIREMENT SYSTEM OF THE
 STATE WHO JOINED ON OR AFTER  APRIL  FIRST,  TWO  THOUSAND  TWELVE,  THE
 CONTRIBUTIONS  IN  ANY  CURRENT  PLAN YEAR (APRIL FIRST TO MARCH THIRTY-
 FIRST, EXCEPT FOR MEMBERS OF NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM,
 NEW YORK CITY TEACHERS' RETIREMENT SYSTEM AND NEW  YORK  CITY  BOARD  OF
 EDUCATION  RETIREMENT SYSTEM, PLAN YEAR SHALL MEAN JANUARY FIRST THROUGH
 DECEMBER THIRTY-FIRST) SHALL BE DETERMINED  BY  REFERENCE  TO  THE  BASE
 WAGES  OF  SUCH MEMBER AS OF APRIL FIRST (EXCEPT FOR MEMBERS OF NEW YORK
 CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK  CITY  TEACHERS'  RETIREMENT
 A. 9527                             4
 
 SYSTEM  AND  NEW  YORK  CITY  BOARD OF EDUCATION RETIREMENT SYSTEM,  THE
 CONTRIBUTIONS OF MEMBERS IN ANY PLAN YEAR SHALL BE DETERMINED BY  REFER-
 ENCE  TO  THE  BASE WAGES OF SUCH MEMBER AS OF DECEMBER THIRTY-FIRST) IN
 THE PREVIOUS PLAN YEAR AS FOLLOWS:
   1.  MEMBERS WITH BASE WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM
 OR LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   2. MEMBERS WITH BASE WAGES  GREATER  THAN  SEVENTY-FIVE  THOUSAND  PER
 ANNUM, BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE
 FOUR PER CENTUM OF ANNUAL WAGES; AND
   3. MEMBERS WITH BASE WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
 SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
   NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
 ESTABLISHED  MEMBERSHIP IN A PUBLIC RETIREMENT SYSTEM OF THE STATE, SUCH
 MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN ACCORDANCE  WITH
 THE  PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL WAGES PROVIDED
 BY THE EMPLOYER. Base wages shall include regular pay,  shift  differen-
 tial pay, location pay, and any increased hiring rate pay, but shall not
 include any overtime payments or compensation earned for extracurricular
 programs or any other pensionable earnings paid in addition to the annu-
 al base wages.
   The  head  of each retirement system shall promulgate such regulations
 as may be necessary and appropriate with respect  to  the  deduction  of
 such  contribution  from  members'  wages and for the maintenance of any
 special fund or funds with respect to amounts so contributed.
   2. A member of the New York city employees' retirement system  who  is
 eligible  to be a participant in the twenty-five-year and age fifty-five
 retirement program, as defined by paragraph five  of  subdivision  a  of
 section  six hundred four-b of this article shall contribute two percent
 of annual wages to such system effective on the  starting  date  of  the
 elimination  of  additional  member  contributions,  as  defined  in  an
 election made pursuant to paragraph ten of subdivision e of section  six
 hundred  four-b of this article, [except that beginning April first, two
 thousand thirteen for members who first become members of the  New  York
 city  employees' retirement system on or after April first, two thousand
 twelve, the rate at which each  such  member  shall  contribute  in  any
 current plan year (April first to March thirty-first, provided, however,
 that  plan  year  shall mean January first through December thirty-first
 commencing with the January first next succeeding the effective date  of
 the  chapter of the laws of two thousand fifteen that amended this para-
 graph) shall be determined by reference to the wages of such  member  in
 the  second  plan  year  (April  first  to March thirty-first, provided,
 however, that plan year shall mean January first through December  thir-
 ty-first commencing with the January first next succeeding the effective
 date  of  the  chapter  of the laws of two thousand fifteen that amended
 this paragraph) preceding such current plan year as follows:
   (i) members with wages of forty-five thousand  dollars  per  annum  or
 less shall contribute three per centum of annual wages;
   (ii)  members  with  wages greater than forty-five thousand per annum,
 but not more than fifty-five thousand per annum shall  contribute  three
 and one-half per centum of annual wages;
   (iii)  members  with wages greater than fifty-five thousand per annum,
 but not more than seventy-five thousand per annum shall contribute  four
 and one-half per centum of annual wages;
   (iv)  members  with wages greater than seventy-five thousand per annum
 but not more than one hundred thousand per annum shall  contribute  five
 and three-quarters per centum of annual wages; and
 A. 9527                             5

   (v)  members  with  wages  greater than one hundred thousand per annum
 shall contribute six per centum of annual wages.
   Notwithstanding  the  foregoing,  during  each of the first three plan
 years (April first to March thirty-first, provided, however,  that  plan
 year  shall  mean January first through December thirty-first commencing
 with the January first next succeeding the  effective  date  of  chapter
 five  hundred  ten  of  the  laws of two thousand fifteen) in which such
 member has established  membership  in  the  New  York  city  employees'
 retirement  system,  such member shall contribute a percentage of annual
 wages in accordance with the preceding schedule based upon a  projection
 of annual wages provided by the employer. Notwithstanding the foregoing,
 when  determining the rate at which each such member who became a member
 of, New York city employees' retirement system, on or after April first,
 two thousand twelve shall contribute for any plan year (April  first  to
 March thirty-first, provided, however, that plan year shall mean January
 first  through  December  thirty-first commencing with the January first
 next succeeding the effective date of chapter five hundred  ten  of  the
 laws  of two thousand fifteen) between April first, two thousand twenty-
 two and April first, two thousand twenty-four, such rate shall be deter-
 mined by reference to employees annual base wages of such member in  the
 second  plan  year  (April  first  to March thirty-first) preceding such
 current plan year] EXCEPT THAT BEGINNING ON AND AFTER APRIL  FIRST,  TWO
 THOUSAND TWENTY-FOUR, FOR MEMBERS OF NEW YORK CITY EMPLOYEES' RETIREMENT
 SYSTEM  WHO  JOINED  ON  OR  AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE
 CONTRIBUTIONS IN ANY CURRENT PLAN YEAR (APRIL  FIRST  TO  MARCH  THIRTY-
 FIRST) SHALL BE DETERMINED BY REFERENCE TO THE BASE WAGES OF SUCH MEMBER
 AS OF APRIL FIRST IN THE PREVIOUS PLAN YEAR AS FOLLOWS:
   1.  MEMBERS WITH BASE WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM
 OR LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   2. MEMBERS WITH BASE WAGES  GREATER  THAN  SEVENTY-FIVE  THOUSAND  PER
 ANNUM, BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE
 FOUR PER CENTUM OF ANNUAL WAGES; AND
   3. MEMBERS WITH BASE WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
 SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
   NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
 ESTABLISHED  MEMBERSHIP  IN  THE  NEW  YORK  CITY  EMPLOYEES' RETIREMENT
 SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE  OF  ANNUAL  WAGES  IN
 ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
 WAGES  PROVIDED  BY  THE EMPLOYER. Base wages shall include regular pay,
 shift differential pay, location pay, and any increased hiring rate pay,
 but shall not include any overtime payments.
   § 3. Subdivisions f and g of section 613 of the retirement and  social
 security  law,  as  amended  by  chapter 18 of the laws of 2012, and the
 second undesignated paragraphs of subdivisions f and  g  as  amended  by
 section  2  of part SS of chapter 56 of the laws of 2022, are amended to
 read as follows:
   f. Anything in subdivision a of this section to the contrary  notwith-
 standing a member employed as a uniformed court officer or peace officer
 in the unified court system who first joins the New York state and local
 employees' retirement system on or after January first, two thousand ten
 shall  contribute four percent of annual wages to the New York state and
 local employees' retirement system, [except that beginning April  first,
 two  thousand  thirteen  for members who first become members of the New
 York state and local employees' retirement  system  on  or  after  April
 first,  two  thousand  twelve,  the rate at which each such member shall
 contribute in any current plan year (April first to March  thirty-first)
 A. 9527                             6

 shall  be  determined  by  reference  to the wages of such member in the
 second plan year (April first  to  March  thirty-first)  preceding  such
 current plan year as follows:
   1. members with wages of forty-five thousand dollars per annum or less
 shall contribute three per centum of annual wages;
   2.  members with wages greater than forty-five thousand per annum, but
 not more than fifty-five thousand per annum shall contribute  three  and
 one-half per centum of annual wages;
   3.  members with wages greater than fifty-five thousand per annum, but
 not more than seventy-five thousand per annum shall contribute four  and
 one-half per centum of annual wages;
   4. members with wages greater than seventy-five thousand per annum but
 not  more  than one hundred thousand per annum shall contribute five and
 three-quarters per centum of annual wages; and
   5. members with wages greater than  one  hundred  thousand  per  annum
 shall contribute six per centum of annual wages.
   Notwithstanding  the  foregoing,  during  each of the first three plan
 years (April first to March  thirty-first)  in  which  such  member  has
 established  membership  in  the  New  York  state  and local employees'
 retirement system, such member shall contribute a percentage  of  annual
 wages  in accordance with the preceding schedule based upon a projection
 of annual wages provided by the employer. Notwithstanding the foregoing,
 when determining the rate at which each such member who became a  member
 of the New York state and local employees' retirement system on or after
 April  first,  two  thousand  twelve  shall contribute for any plan year
 (April first to March thirty-first) between April  first,  two  thousand
 twenty-two and April first, two thousand twenty-four, such rate shall be
 determined by reference to employees annual base wages of such member in
 the  second plan year (April first to March thirty-first) preceding such
 current plan year] EXCEPT THAT BEGINNING ON AND AFTER APRIL  FIRST,  TWO
 THOUSAND  TWENTY-FOUR, FOR MEMBERS EMPLOYED AS A UNIFORMED COURT OFFICER
 OR PEACE OFFICER IN THE UNIFIED COURT SYSTEM WHO FIRST JOIN THE NEW YORK
 STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR  AFTER  APRIL  FIRST,
 TWO  THOUSAND  TWELVE, THE CONTRIBUTIONS IN ANY CURRENT PLAN YEAR (APRIL
 FIRST TO MARCH THIRTY-FIRST) SHALL BE DETERMINED  BY  REFERENCE  TO  THE
 BASE WAGES OF SUCH MEMBER AS OF APRIL FIRST IN THE PREVIOUS PLAN YEAR AS
 FOLLOWS:
   1.  MEMBERS  WITH  WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR
 LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   2. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE  THOUSAND  PER  ANNUM,
 BUT  NOT  MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
 PER CENTUM OF ANNUAL WAGES; AND
   3. MEMBERS WITH WAGES GREATER THAN  ONE  HUNDRED  THOUSAND  PER  ANNUM
 SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
   NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
 ESTABLISHED  MEMBERSHIP IN A PUBLIC RETIREMENT SYSTEM, SUCH MEMBER SHALL
 CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN ACCORDANCE WITH THE PRECEDING
 SCHEDULE BASED UPON A PROJECTION OF ANNUAL WAGES PROVIDED BY THE EMPLOY-
 ER.   Base wages shall include  regular  pay,  shift  differential  pay,
 location  pay,  and any increased hiring rate pay, but shall not include
 any overtime payments.
   The head of the New York state and local employees' retirement  system
 shall  promulgate  such  regulations as may be necessary and appropriate
 with respect to the deduction of such contribution from  members'  wages
 and  for  the  maintenance  of any special fund or funds with respect to
 amounts so contributed.
 A. 9527                             7

   g. Members who first join the  New  York  state  teachers'  retirement
 system  on  or  after  January  first, two thousand ten shall contribute
 three and one-half percent of annual wages to the New York state  teach-
 ers' retirement system, [except that beginning April first, two thousand
 thirteen  for  members  who  first  become members of the New York state
 teachers' retirement system  on  or  after  April  first,  two  thousand
 twelve,  the  rate  at  which  each  such member shall contribute in any
 current plan year (July first to June thirtieth) shall be determined  by
 reference  to  the  wages  of  such member in the second plan year (July
 first to June thirtieth) preceding such current plan year as follows:
   1. members with wages of forty-five thousand dollars per annum or less
 shall contribute three per centum of annual wages;
   2. members with wages greater than forty-five thousand per annum,  but
 not  more  than fifty-five thousand per annum shall contribute three and
 one-half per centum of annual wages;
   3. members with wages greater than fifty-five thousand per annum,  but
 not  more than seventy-five thousand per annum shall contribute four and
 one-half per centum of annual wages;
   4. members with wages greater than seventy-five thousand per annum but
 not more than one hundred thousand per annum shall contribute  five  and
 three-quarters per centum of annual wages; and
   5.  members  with  wages  greater  than one hundred thousand per annum
 shall contribute six per centum of annual wages.
   Notwithstanding the foregoing, during each of  the  first  three  plan
 years  (July  first  to  June thirtieth) in which such member has estab-
 lished membership in the New York  state  teachers'  retirement  system,
 such  member shall contribute a percentage of annual wages in accordance
 with the preceding schedule based upon  a  projection  of  annual  wages
 provided  by the employer. Notwithstanding the foregoing, when determin-
 ing the contribution rate at which a member of the New York state teach-
 ers' retirement system with a date  of  membership  on  or  after  April
 first,  two  thousand twelve shall contribute for plan years (July first
 to June thirtieth) between July first, two thousand twenty-two and  July
 first, two thousand twenty-four, such rate shall be determined by refer-
 ence  to  the  member's  annual base wages in the second plan year (July
 first to June thirtieth) preceding such current plan year]  EXCEPT  THAT
 BEGINNING  ON  AND  AFTER  APRIL  FIRST,  TWO  THOUSAND TWENTY-FOUR, FOR
 MEMBERS WHO FIRST JOINED THE NEW YORK STATE TEACHERS' RETIREMENT  SYSTEM
 ON  OR  AFTER  APRIL FIRST, TWO THOUSAND TWELVE, THE CONTRIBUTION IN ANY
 CURRENT PLAN YEAR (APRIL FIRST TO MARCH THIRTY-FIRST)  SHALL  BE  DETER-
 MINED BY REFERENCE TO THE BASE WAGES OF SUCH MEMBER AS OF APRIL FIRST IN
 THE PREVIOUS PLAN YEAR AS FOLLOWS:
   1.  MEMBERS  WITH  WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR
 LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   2. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE  THOUSAND  PER  ANNUM,
 BUT  NOT  MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
 PER CENTUM OF ANNUAL WAGES; AND
   3. MEMBERS WITH WAGES GREATER THAN  ONE  HUNDRED  THOUSAND  PER  ANNUM
 SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
   NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
 ESTABLISHED  MEMBERSHIP  IN  THE  NEW  YORK  STATE  TEACHERS' RETIREMENT
 SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE  OF  ANNUAL  WAGES  IN
 ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
 WAGES  PROVIDED  BY  THE EMPLOYER.   Annual base wages shall not include
 compensation earned for extracurricular programs or any other  pensiona-
 ble earnings paid in addition to the annual base wages.
 A. 9527                             8
 
   The  head  of  the  New  York  state teachers' retirement system shall
 promulgate such regulations as may be  necessary  and  appropriate  with
 respect  to  the  deduction of such contribution from members' wages and
 for the maintenance of any special fund or funds with respect to amounts
 so contributed.
   §  4.  Section  1204  of  the  retirement  and social security law, as
 amended by chapter 18 of the laws of 2012, the second undesignated para-
 graph as amended by section 3 of part SS of chapter 56 of  the  laws  of
 2022, is amended to read as follows:
   §   1204.  Member  contributions.  Members  who  are  subject  to  the
 provisions of this article shall  contribute  three  percent  of  annual
 wages  to  the  retirement system in which they have membership, [except
 that beginning April first, two thousand thirteen for members who  first
 become  members  of the New York state and local police and fire retire-
 ment system on or after April first, two thousand twelve,  the  rate  at
 which  each such member shall contribute in any current plan year (April
 first to March thirty-first) shall be determined  by  reference  to  the
 wages of such member in the second plan year (April first to March thir-
 ty-first) preceding such current plan year as follows:
   a. members with wages of forty-five thousand dollars per annum or less
 shall contribute three per centum of annual wages;
   b.  members with wages greater than forty-five thousand per annum, but
 not more than fifty-five thousand per annum shall contribute  three  and
 one-half per centum of annual wages;
   c.  members with wages greater than fifty-five thousand per annum, but
 not more than seventy-five thousand per annum shall contribute four  and
 one-half per centum of annual wages;
   d. members with wages greater than seventy-five thousand per annum but
 not  more  than one hundred thousand per annum shall contribute five and
 three-quarters per centum of annual wages; and
   e. members with wages greater than  one  hundred  thousand  per  annum
 shall contribute six per centum of annual wages.
   Notwithstanding  the  foregoing,  during  each of the first three plan
 years (April first to March  thirty-first)  in  which  such  member  has
 established  membership  in the New York state and local police and fire
 retirement system, such member shall contribute a percentage  of  annual
 wages  in accordance with the preceding schedule based upon a projection
 of annual wages provided by the employer. Notwithstanding the foregoing,
 when determining the rate at which each such member who became a  member
 of  the New York state and local police and fire retirement system on or
 after April first, two thousand twelve shall  contribute  for  any  plan
 year  (April first to March thirty-first) between April first, two thou-
 sand twenty-two and April first, two  thousand  twenty-four,  such  rate
 shall  be determined by reference to employees annual base wages of such
 member in the second plan  year  (April  first  to  March  thirty-first)
 preceding  such  current  plan  year] EXCEPT THAT BEGINNING ON AND AFTER
 APRIL FIRST, TWO THOUSAND TWENTY-FOUR, FOR MEMBERS OF THE NEW YORK STATE
 AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM WHO FIRST JOINED ON OR AFTER
 APRIL FIRST, TWO THOUSAND TWELVE, THE CONTRIBUTION IN ANY  CURRENT  PLAN
 YEAR  (APRIL  FIRST TO MARCH THIRTY-FIRST) SHALL BE DETERMINED BY REFER-
 ENCE TO THE BASE WAGES OF SUCH MEMBER AS OF APRIL FIRST IN THE  PREVIOUS
 PLAN YEAR AS FOLLOWS:
   1.  MEMBERS  WITH  WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR
 LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
 A. 9527                             9
 
   2. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE  THOUSAND  PER  ANNUM,
 BUT  NOT  MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
 PER CENTUM OF ANNUAL WAGES; AND
   3.    MEMBERS  WITH  WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
 SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
   NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
 ESTABLISHED MEMBERSHIP IN THE NEW YORK STATE AND LOCAL POLICE  AND  FIRE
 RETIREMENT  SYSTEM,  SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL
 WAGES IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A  PROJECTION
 OF ANNUAL WAGES PROVIDED BY THE EMPLOYER. Base wages shall include regu-
 lar  pay, shift differential pay, location pay, and any increased hiring
 rate pay, but shall not include any overtime payments.  Effective  April
 first,  two  thousand  twelve,  all members subject to the provisions of
 this article shall not be required to make member contributions on annu-
 al wages excluded from the calculation of final average salary  pursuant
 to  section  twelve  hundred  three  of  this  article.  Nothing in this
 section, however, shall be construed  or  deemed  to  allow  members  to
 receive a refund of any member contributions on such wages paid prior to
 April first, two thousand twelve.
   Members  who  are enrolled in a retirement plan that limits the amount
 of creditable service a member can accrue shall not be required to  make
 contributions pursuant to this section after accruing the maximum amount
 of  service  credit  allowed  by  the  retirement plan in which they are
 enrolled. The state comptroller shall promulgate such regulations as may
 be necessary and appropriate with  respect  to  the  deduction  of  such
 contribution  from members' wages and for the maintenance of any special
 fund or funds with respect to amounts so contributed. In  no  way  shall
 the  member  contributions  made  pursuant  to  this  section be used to
 provide for pension increases or annuities of any kind.
   § 5. Subdivision 2 of section 182 of the education law, as amended  by
 chapter 18 of the laws of 2012, is amended to read as follows:
   2.  Employee  contributions.  In  the  case  of any electing employee,
 contributions at the rate of three per centum of his state salary  shall
 be  deducted  by  the  state  comptroller  as the employee contribution,
 provided however, that such employee contribution shall be made  by  the
 state  in  accordance  with  subdivision one of this section during such
 period as (a) either section seventy-a  of  the  retirement  and  social
 security law or section five hundred twenty-eight of this title provides
 that  the  contribution  of each member of the New York state employees'
 retirement system or the New York state teachers' retirement  system  in
 the employ of the state shall be reduced by at least eight per centum of
 his  compensation,  or  (b) employee contributions to either such system
 are no longer required by reason of such system becoming noncontributory
 for state employees.
   Notwithstanding any other law to the contrary, [beginning April first,
 two thousand thirteen any electing employee appointed on or after  April
 first,  two  thousand twelve, the rate at which each such employee shall
 contribute in any current plan year (January first to  December  thirty-
 first)  shall  be determined by reference to the wages of such member in
 the second plan year (January first to December thirty-first)  preceding
 such current plan year as follows:
   (a)  members  with  wages  of forty-five thousand dollars per annum or
 less shall contribute three per centum of annual wages;
   (b) members with wages greater than forty-five thousand per annum, but
 not more than fifty-five thousand per annum shall contribute  three  and
 one-half per centum of annual wages;
 A. 9527                            10

   (c) members with wages greater than fifty-five thousand per annum, but
 not  more than seventy-five thousand per annum shall contribute four and
 one-half per centum of annual wages;
   (d)  members  with  wages greater than seventy-five thousand per annum
 but not more than one hundred thousand per annum shall  contribute  five
 and three-quarters per centum of annual wages; and
   (e)  members  with  wages  greater than one hundred thousand per annum
 shall contribute six per centum of annual wages.
   Notwithstanding the foregoing, during each of  the  first  three  plan
 years  (January first to December thirty-first) in which such member has
 established membership in the Education Department  Optional  Retirement
 Program,  such  employee  shall  contribute a percent of annual wages in
 accordance with the preceding schedule based upon a projection of annual
 wages provided by the employer]  BEGINNING  APRIL  FIRST,  TWO  THOUSAND
 TWENTY-FOUR,  FOR  ANY  ELECTING  EMPLOYEE  OF  THE EDUCATION DEPARTMENT
 OPTIONAL RETIREMENT PROGRAM APPOINTED ON OR AFTER APRIL FIRST, TWO THOU-
 SAND TWELVE, THE CONTRIBUTIONS IN THE CURRENT PLAN YEAR (APRIL FIRST  TO
 MARCH  THIRTY-FIRST)  SHALL BE DETERMINED BY REFERENCE TO THE BASE WAGES
 OF SUCH MEMBER AS OF APRIL FIRST IN THE PREVIOUS PLAN YEAR AS FOLLOWS:
   (A) MEMBERS WITH WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER  ANNUM  OR
 LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   (B)  MEMBERS  WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
 BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL  CONTRIBUTE  FOUR
 PER CENTUM OF ANNUAL WAGES; AND
   (C)  MEMBERS  WITH  WAGES  GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
 SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
   NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
 ESTABLISHED MEMBERSHIP IN THE EDUCATION DEPARTMENT  OPTIONAL  RETIREMENT
 PROGRAM,  SUCH  MEMBER  SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN
 ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
 WAGES PROVIDED BY THE EMPLOYER.
   § 6. Paragraph (d) of subdivision 2 of section 392  of  the  education
 law,  as  added by chapter 18 of the laws of 2012, is amended to read as
 follows:
   (d) Notwithstanding any other law to the  contrary,  [beginning  April
 first, two thousand thirteen any electing employee appointed on or after
 April  first,  two thousand twelve, the rate at which each such employee
 shall contribute in any current plan year  (January  first  to  December
 thirty-first)  shall  be  determined  by  reference to the wages of such
 member in the second plan year (January first to December  thirty-first)
 preceding such current plan year as follows:
   (i)  members  with  wages  of forty-five thousand dollars per annum or
 less shall contribute three per centum of annual wages;
   (ii) members with wages greater than forty-five  thousand  per  annum,
 but  not  more than fifty-five thousand per annum shall contribute three
 and one-half per centum of annual wages;
   (iii) members with wages greater than fifty-five thousand  per  annum,
 but  not more than seventy-five thousand per annum shall contribute four
 and one-half per centum of annual wages;
   (iv) members with wages greater than seventy-five thousand  per  annum
 but  not  more than one hundred thousand per annum shall contribute five
 and three-quarters per centum of annual wages; and
   (v) members with wages greater than one  hundred  thousand  per  annum
 shall contribute six per centum of annual wages.
   Notwithstanding  the  foregoing,  during  each of the first three plan
 years (January first to December thirty-first) in which such member  has
 A. 9527                            11

 established  membership  in  the  State  University  Optional Retirement
 Program, such employee shall contribute a percent  of  annual  wages  in
 accordance with the preceding schedule based upon a projection of annual
 wages  provided by the employer] BEGINNING ON AND AFTER APRIL FIRST, TWO
 THOUSAND TWENTY-FOUR, FOR ANY ELECTING EMPLOYEE OF THE STATE  UNIVERSITY
 OPTIONAL RETIREMENT PROGRAM APPOINTED ON OR AFTER APRIL FIRST, TWO THOU-
 SAND  TWELVE, THE CONTRIBUTIONS IN THE CURRENT PLAN YEAR (APRIL FIRST TO
 MARCH THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE  BASE  WAGES
 OF SUCH MEMBER AS OF APRIL FIRST IN THE PREVIOUS PLAN YEAR AS FOLLOWS:
   (I)  MEMBERS  WITH WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR
 LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   (II) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER  ANNUM,
 BUT  NOT  MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
 PER CENTUM OF ANNUAL WAGES; AND
   (III) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND  PER  ANNUM
 SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
   (IV)  NOTWITHSTANDING  THE  FOREGOING,  IN  THE  FIRST YEAR IN WHICH A
 MEMBER HAS ESTABLISHED  MEMBERSHIP  IN  THE  STATE  UNIVERSITY  OPTIONAL
 RETIREMENT  PROGRAM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL
 WAGES IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A  PROJECTION
 OF ANNUAL WAGES PROVIDED BY THE EMPLOYER.
   §  7.  Paragraph (d) of subdivision 2 of section 6252 of the education
 law, as added by chapter 18 of the laws of 2012, is amended to  read  as
 follows:
   (d)  Notwithstanding  any  other law to the contrary, [beginning April
 first, two thousand thirteen any electing employee appointed on or after
 April first, two thousand twelve, the rate at which each  such  employee
 shall  contribute  in  any  current plan year (January first to December
 thirty-first) shall be determined by reference  to  the  wages  of  such
 member  in the second plan year (January first to December thirty-first)
 preceding such current plan year as follows:
   (1) members with wages of forty-five thousand  dollars  per  annum  or
 less shall contribute three per centum of annual wages;
   (2) members with wages greater than forty-five thousand per annum, but
 not  more  than fifty-five thousand per annum shall contribute three and
 one-half per centum of annual wages;
   (3) members with wages greater than fifty-five thousand per annum, but
 not more than seventy-five thousand per annum shall contribute four  and
 one-half per centum of annual wages;
   (4)  members  with  wages greater than seventy-five thousand per annum
 but not more than one hundred thousand per annum shall  contribute  five
 and three-quarters per centum of annual wages; and
   (5)  members  with  wages  greater than one hundred thousand per annum
 shall contribute six per centum of annual wages.
   Notwithstanding the foregoing, during each of  the  first  three  plan
 years  (January first to December thirty-first) in which such member has
 established membership in the Board of Higher Education Optional Retire-
 ment Program, such employee shall contribute a percent of  annual  wages
 in  accordance  with  the  preceding schedule based upon a projection of
 annual wages provided by the employer] FOR ANY ELECTING EMPLOYEE OF  THE
 BOARD  OF  HIGHER  EDUCATION OPTIONAL RETIREMENT PROGRAM APPOINTED ON OR
 AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE CONTRIBUTIONS IN THE CURRENT
 PLAN YEAR (APRIL FIRST TO MARCH THIRTY-FIRST)  SHALL  BE  DETERMINED  BY
 REFERENCE  TO  THE  BASE  WAGES  OF SUCH MEMBER AS OF APRIL FIRST IN THE
 PREVIOUS PLAN YEAR AS FOLLOWS:
 A. 9527                            12
 
   (1) MEMBERS WITH WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER  ANNUM  OR
 LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
   (2)  MEMBERS  WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
 BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL  CONTRIBUTE  FOUR
 PER CENTUM OF ANNUAL WAGES; AND
   (3)  MEMBERS  WITH  WAGES  GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
 SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
   NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
 ESTABLISHED MEMBERSHIP IN THE BOARD OF HIGHER EDUCATION OPTIONAL RETIRE-
 MENT PROGRAM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL  WAGES
 IN  ACCORDANCE  WITH  THE  PRECEDING SCHEDULE BASED UPON A PROJECTION OF
 ANNUAL WAGES PROVIDED BY THE EMPLOYER.
   § 8. Notwithstanding any other provision of law to the contrary,  none
 of  the  provisions  of  this  act shall be subject to section 25 of the
 retirement and social security law.
   § 9. This act shall take effect April 1, 2024; provided,  however,  if
 this  act  shall become a law after such date it shall take effect imme-
 diately and shall be deemed to have been in full force and effect on and
 after April 1, 2024.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would change the member contribution  rates,  and  the  wage
 ranges  to  which  member  contribution  rates  are  applied, for Tier 6
 members effective April 1, 2024.
   The proposed contribution rates and wage ranges  for  Tier  6  members
 are:
     * three (3) percent for wages of $75,000 or less,
     *  four (4) percent for wages greater than $75,000 but not more than
 $100,000, or
     * five (5) percent for wages greater than $100,000.
   The current contribution rates and wage ranges for Tier 6 members are:
     * three (3) percent for wages of $45,000 or less,
     * three and one-half (3.5) percent for wages  greater  than  $45,000
 but not more than $55,000,
     * four and one-half (4.5) percent for wages greater than $55,000 but
 not more than $75,000,
     *  five  and  three-quarters  (5.75)  percent for wages greater than
 $75,000 but not more than $100,000, or
     * six (6) percent for wages greater than $100,000.
   It is anticipated that this proposal will not become law  until  after
 the  effective  date of April 1, 2024, in which case member contribution
 rates will need to be revised retroactively. This will result in signif-
 icant administrative costs to the New York State  and  Local  Retirement
 System and its more than 3,000 participating employers.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System (NYSLERS), if this legislation is enacted  during  the
 2024  Legislative  Session,  there  would  be an increase in the present
 value of future costs of  approximately  $1.6  billion  which  would  be
 shared by the State of New York and all local participating employers in
 the  NYSLERS.  These  costs  will be funded by increasing Tier 6 billing
 rates by an average 0.9% of salary.
   The increased billing rates will result  in  a  recurring,  increasing
 annual  contribution  beginning in the fiscal year ending March 31, 2026
 of approximately $67 million to the State of New York and  approximately
 $90 million to local participating employers in the NYSLERS. THESE ANNU-
 AL COSTS ARE EXPECTED TO INCREASE SIGNIFICANTLY IN FUTURE YEARS and will
 A. 9527                            13
 
 vary  by  employer  based  upon the plan coverage and salary reported in
 Tier 6.
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), if this legislation is enacted during
 the 2024 Legislative Session, there would be an increase in the  present
 value  of  future  costs  of  approximately  $255 million which would be
 shared by the State of New York and all local participating employers in
 the NYSLPFRS. These costs will be funded by increasing  Tier  6  billing
 rates by an average 1.0% of salary.
   The  increased  billing  rates  will result in a recurring, increasing
 annual contribution beginning in the fiscal year ending March  31,  2026
 of  approximately  $5 million to the State of New York and approximately
 $18 million to local participating  employers  in  the  NYSLPFRS.  THESE
 ANNUAL  COSTS ARE EXPECTED TO INCREASE SIGNIFICANTLY IN FUTURE YEARS and
 will vary by employer based upon the plan coverage and  salary  reported
 in Tier 6.
   These  estimated costs are based on 265,533 Tier 6 members with annual
 salary of approximately $12 billion in the NYSLERS  and  16,538  Tier  6
 members  with  annual  salary  of  approximately  $1.5  billion  in  the
 NYSLPFRS, as of March 31, 2023.
   Summary of relevant resources:
   Membership data as of March 31, 2023 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2023 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2023 Report of the Actuary and the 2023 Annual  Comprehensive  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2023
 Annual Report to the  Comptroller  on  Actuarial  Assumptions,  and  the
 Codes,  Rules  and  Regulations  of  the  State  of  New York: Audit and
 Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2023
 New York State and Local  Retirement  System  Financial  Statements  and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This  fiscal note does not constitute a legal opinion on the viability
 of the proposed change nor is it intended to serve as a  substitute  for
 the professional judgment of an attorney.
   This  estimate,  dated March 4, 2024, and intended for use only during
 the 2024 Legislative Session, is Fiscal Note No.  2024-96,  prepared  by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  amend various sections of the Retirement and Social
 Security Law and the Education  Law  to  reduce  the  required  employee
 contribution for Tier 6 members. The salary ranges and employee contrib-
 ution  rates  for Tier 6 members would be changed to the following as of
 April 1, 2024:
   Salary                             Employee Contribution Rate
 $75,000 and less                     3.00%
 More than $75,000 to $100,000        4.00%
 More than $100,000                   5.00%
   The annual cost to the employers of members  of  the  New  York  State
 Teachers'  Retirement  System  for this benefit is estimated to be $81.5
 million or 0.42% of payroll if this bill is enacted.
   The System's "new entrant rate", a hypothetical employer  contribution
 rate  that would occur if we started a new Retirement System without any
 A. 9527                            14
 
 assets, is equal to 5.31% of pay under the current Tier 6 benefit struc-
 ture. This can be thought of as the long-term expected employer cost  of
 Tier  6, based on current actuarial assumptions. For the proposed change
 to  the  Tier 6 benefit structure under this bill, this new entrant rate
 is estimated to increase to 6.13% of pay, an increase of 0.82% of pay.
   Member data is from the System's most recent actuarial valuation files
 as of June 30, 2023, consisting of data provided by the employers to the
 Retirement System. The most recent data distributions and statistics can
 be found in the System's Annual Report for fiscal year  ended  June  30,
 2023. System assets are as reported in the System's financial statements
 and  can also be found in the System's Annual Report.  Actuarial assump-
 tions and methods are  provided  in  the  System's  Actuarial  Valuation
 Report as of June 30, 2023.
   The  source of this estimate is Fiscal Note 2024-18 dated February 27,
 2024 prepared by the Office of the Actuary of the New York State  Teach-
 ers'  Retirement  System  and  is  intended for use only during the 2024
 Legislative Session. I, Richard A. Young, am the Chief Actuary  for  the
 New  York State Teachers' Retirement System. I am a member of the Ameri-
 can Academy of Actuaries and I meet the Qualification Standards  of  the
 American  Academy of Actuaries to render the actuarial opinion contained
 herein.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation, as it relates to the New York City
 Retirement Systems and Pension Funds (NYCRS) would reduce  the  required
 Basic Member Contribution (BMC) rates for Tier 6 members of NYCERS, TRS,
 and BERS.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
 
               Year      NYCERS     TRS       BERS      TOTAL
               2025      74.9       55.2      6.4       136.5
               2026      81.9       58.8      6.9       147.6
               2027      89.3       62.8      7.5       159.6
               2028      97.0       67.1      8.1       172.2
               2029      105.1      71.8      8.8       185.7
               2030      113.3      76.8      9.5       199.6
               2031      121.7      82.2      10.2      214.1
               2032      130.2      88.0      10.9      229.1
               2033      138.8      94.2      11.7      244.7
               2034      147.7      100.9     12.5      261.1
               2035      156.8      107.9     13.3      278.0
               2036      165.9      115.3     14.1      295.3
               2037      175.2      123.1     15.0      313.3
               2038      184.6      131.4     13.5      329.5
               2039      194.2      140.3     14.4      348.9
               2040      178.7      149.5     15.3      343.5
               2041      188.5      159.1     16.2      363.8
               2042      198.4      168.8     17.2      384.4
               2043      208.4      178.5     18.2      405.1
               2044      218.6      169.3     19.1      407.0
               2045      228.8      178.9     20.1      427.8
               2046      239.1      188.4     21.1      448.6
               2047      249.4      197.8     22.2      469.4
               2048      259.8      207.0     23.2      490.0
               2049      270.2      216.2     24.2      510.6
 A. 9527                            15
 
 Employer Contribution impact beyond Fiscal year 2049 is not shown.
 Projected contributions include future new hires that may be impacted.
 
 The initial increase in employer contributions of $136.5 million is
 estimated to be $94.4 million for New York City and $42.1 million for
 the other obligors of NYCRS.
 
           INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)
 Present Value (PV)                 NYCERS    TRS     BERS
 PV of Benefits:                    (70.1)    (63.7)  (6.4)
 PV of Employee Contributions:      (900.6)   (847.6) (72.9)
 PV of Employer Contributions:      830.5     783.9   66.6
 Unfunded Accrued Liabilities:      222.0     189.2   19.1
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                    NYCERS    TRS     BERS
 Number of Payments:                15        19      13
 Fiscal Year of Last Payment:       2039      2043    2037
 Amortization Payment:              25.2 M    18.9 M  2.4 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.
                               NYCERS    TRS     BERS
 Active Members
 - Number Count:               85,203    60,663  12,932
 - Average Age:                42.4      38.1    46.9
 - Average Service:            4.4       5.0     4.0
 - Average Salary:             78,900    80,000  56,200
 
   IMPACT  ON  MEMBER CONTRIBUTIONS: Currently, Tier 6 members of NYCERS,
 TRS, and BERS are generally required to make Basic Member  Contributions
 (BMC)  ranging from 3% to 6% of annual wages, determined by the member's
 annual wages for the second prior calendar year.
   Under the proposed legislation, effective April 1, 2024:
   * The required BMC rates for each salary band above $45,000  would  be
 reduced as shown in the table below.
 
           Salary Band              Current Rate   Proposed Rate
           $45,000 or less          3.00%          3.00%
           $45,001 up to $55,000    3.50%          3.00%
           $55,001 up to $75,000    4.50%          3.00%
           $75,001 up to $100,000   5.75%          4.00%
           Greater than $100,000    6.00%          5.00%
 
   *  The determination of the member's rate will use a one-year lookback
 instead of a two-year lookback.
   * The annual wages used for the determination of the  member's  salary
 band  would exclude overtime and compensation earned for extracurricular
 activities for all years. Currently, this exclusion is set to expire  on
 January 1, 2025.
 A. 9527                            16
 
   *  New  members  would  use a projection of wages for their first year
 instead of their first three years.
   For  purposes  of  this  Fiscal Note, it has been assumed that members
 will retain rights to current rules  for  determining  the  contribution
 rate  for  a  given calendar year if they result in a lower contribution
 rate than under the proposed legislation.
   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).
   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 2024-19  dated  March  6,
 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.