S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3144
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2023
                                ___________
 
 Introduced  by Sens. MANNION, HARCKHAM, HINCHEY, MAYER -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Civil Service and Pensions
 
 AN  ACT  to amend the retirement and social security law, in relation to
   increasing the earning limitations for retired law  enforcement  offi-
   cers; and providing for the repeal of such provisions upon the expira-
   tion thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 212 of the retirement and social  security  law  is
 amended by adding a new subdivision 4 to read as follows:
   4.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS
 SECTION, THE EARNINGS LIMITATION FOR THE YEAR TWO  THOUSAND  TWENTY-FOUR
 AND  THEREAFTER  SHALL  BE SIXTY-FIVE THOUSAND DOLLARS FOR A RETIRED LAW
 ENFORCEMENT OFFICER EMPLOYED AS A LAW  ENFORCEMENT  OFFICER  AFTER  SUCH
 RETIREMENT.
   §  2.  This  act shall take effect immediately and shall expire and be
 deemed repealed January 1, 2029.
 
 
 
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03862-01-3



              

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3144--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2023
                                ___________
 
 Introduced  by  Sens.  MANNION,  HARCKHAM, HINCHEY, LANZA, MAYER -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on Civil Service and Pensions -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 AN  ACT  to amend the retirement and social security law, in relation to
   increasing the earning limitations for retired law  enforcement  offi-
   cers; and providing for the repeal of such provisions upon the expira-
   tion thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 212 of the retirement and social  security  law  is
 amended by adding a new subdivision 4 to read as follows:
   4.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS
 SECTION, THE EARNINGS LIMITATION FOR THE YEAR TWO  THOUSAND  TWENTY-FIVE
 AND  THEREAFTER  SHALL  BE SIXTY-FIVE THOUSAND DOLLARS FOR A RETIRED LAW
 ENFORCEMENT OFFICER EMPLOYED AS A LAW  ENFORCEMENT  OFFICER  AFTER  SUCH
 RETIREMENT.
   §  2.  This  act shall take effect immediately and shall expire and be
 deemed repealed January 1, 2030.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03862-03-3



              

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3144--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2023
                                ___________
 
 Introduced  by  Sens.  MANNION,  HARCKHAM, HINCHEY, LANZA, MAYER -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on Civil Service and Pensions -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 AN  ACT  to amend the retirement and social security law, in relation to
   increasing the earning limitations for retired law  enforcement  offi-
   cers; and providing for the repeal of such provisions upon the expira-
   tion thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 212 of the retirement and social  security  law  is
 amended by adding a new subdivision 4 to read as follows:
   4.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS
 SECTION, THE EARNINGS LIMITATION FOR THE YEAR TWO  THOUSAND  TWENTY-FOUR
 AND  THEREAFTER  SHALL  BE SIXTY-FIVE THOUSAND DOLLARS FOR A RETIRED LAW
 ENFORCEMENT OFFICER EMPLOYED AS A LAW  ENFORCEMENT  OFFICER  AFTER  SUCH
 RETIREMENT.  FOR  THE PURPOSES OF THIS SECTION, "RETIRED LAW ENFORCEMENT
 OFFICER" SHALL MEAN A RETIRED POLICE OFFICER, A RETIRED  STATE  TROOPER,
 OR A RETIRED DEPUTY SHERIFF.
   §  2.  This  act shall take effect immediately and shall expire and be
 deemed repealed January 1, 2029.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   Insofar as it would affect the New York  State  and  Local  Retirement
 System (NYSLRS), this bill would allow retired police officers and depu-
 ty sheriffs to be reemployed in a law enforcement capacity with an annu-
 al  salary  of $65,000 or less to continue to receive their full retire-
 ment benefit for the 5-year period beginning January 1, 2024 and  ending
 December  31,  2028.  Currently,  the  post-retirement earnings limit is
 $35,000.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03862-05-3
 S. 3144--B                          2
              

 
   If this bill were enacted during the  2023  legislative  session,  the
 direct  cost  incurred  would  be the retiree's post-retirement earnings
 more than $35,000 each calendar year, not to  exceed  the  full  pension
 benefit paid by the NYSLRS during that period.
   The  number  of  members  and  retirees  who could be affected by this
 legislation cannot be readily determined. For each retiree hired  pursu-
 ant to this proposal, an annual cost of $30,000 is expected.
   In addition to the direct costs quoted above, insofar as this proposal
 disrupts  the usual pattern and timing of employee turnover (that is, if
 members retire earlier than expected and participating employers hire  a
 retiree  instead  of  a  new billable member), shifts in member behavior
 could generate losses that increase the average billing rate in  20-year
 and 25-year service-based plans from 27.8% to 40.4%. The actual increase
 in  billing rates will depend upon member and employer utilization, with
 the rate above representing an upper maximum.
   All costs will be shared by the State of New York and all  participat-
 ing employers in the NYSLRS and spread over future billing cycles. Since
 this  proposal  exclusively  benefits  retirees, the increased costs are
 primarily attributable to retirees from Tiers 1 - 4. Approximately  half
 the  contributions  required  to fund this proposal will be collected on
 salary reported for current members of Tier 6.
   Summary of relevant resources:
   Membership data as of March 31, 2022 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2022 Report of the Actuary and the 2022 Annual  Comprehensive  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2020,
 2021, and 2022 Annual Report to the  Comptroller  on  Actuarial  Assump-
 tions,  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, 2022
 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 30, 2023, and intended for use only during
 the 2023 Legislative Session, is Fiscal Note No. 2023-3, prepared by the
 Actuary for the New York State and Local Retirement System.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3144--C
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2023
                                ___________
 
 Introduced  by Sens. MANNION, BORRELLO, HARCKHAM, HINCHEY, LANZA, MAYER,
   PALUMBO, ROLISON -- read twice and ordered printed, and  when  printed
   to  be  committed  to  the  Committee on Civil Service and Pensions --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to  said committee -- 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
   increasing  the  earning limitations for retired law enforcement offi-
   cers; and providing for the repeal of such provisions upon the expira-
   tion thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  212 of the retirement and social security law is
 amended by adding a new subdivision 4 to read as follows:
   4. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF  THIS
 SECTION,  THE  EARNINGS LIMITATION FOR THE YEAR TWO THOUSAND TWENTY-FOUR
 AND THEREAFTER SHALL BE SIXTY-FIVE THOUSAND DOLLARS FOR  A  RETIRED  LAW
 ENFORCEMENT  OFFICER  EMPLOYED  AS  A LAW ENFORCEMENT OFFICER AFTER SUCH
 RETIREMENT. FOR THE PURPOSES OF THIS SECTION, "RETIRED  LAW  ENFORCEMENT
 OFFICER"  SHALL  MEAN A RETIRED POLICE OFFICER, A RETIRED STATE TROOPER,
 OR A RETIRED DEPUTY SHERIFF.
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed repealed January 1, 2029.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   Insofar  as  it  would  affect the New York State and Local Retirement
 System (NYSLRS), this bill would allow retired police officers and depu-
 ty sheriffs to be reemployed in a law enforcement capacity with an annu-
 al salary of $65,000 or less to continue to receive their  full  retire-
 ment  benefit for the 5-year period beginning January 1, 2024 and ending
 December 31, 2028. Currently,  the  post-retirement  earnings  limit  is
 $35,000.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03862-06-3
              

 S. 3144--C                          2
 
   If  this  bill  were  enacted during the 2023 legislative session, the
 direct cost incurred would be  the  retiree's  post-retirement  earnings
 more  than  $35,000  each  calendar year, not to exceed the full pension
 benefit paid by the NYSLRS during that period.
   The  number  of  members  and  retirees  who could be affected by this
 legislation cannot be readily determined. For each retiree hired  pursu-
 ant to this proposal, an annual cost of $30,000 is expected.
   In addition to the direct costs quoted above, insofar as this proposal
 disrupts  the usual pattern and timing of employee turnover (that is, if
 members retire earlier than expected and participating employers hire  a
 retiree  instead  of  a  new billable member), shifts in member behavior
 could generate losses that increase the average billing rate in  20-year
 and 25-year service-based plans from 27.8% to 40.4%. The actual increase
 in  billing rates will depend upon member and employer utilization, with
 the rate above representing an upper maximum.
   All costs will be shared by the State of New York and all  participat-
 ing employers in the NYSLRS and spread over future billing cycles. Since
 this  proposal  exclusively  benefits  retirees, the increased costs are
 primarily attributable to retirees from Tiers 1 - 4. Approximately  half
 the  contributions  required  to fund this proposal will be collected on
 salary reported for current members of Tier 6.
   Summary of relevant resources:
   Membership data as of March 31, 2022 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2022 Report of the Actuary and the 2022 Annual  Comprehensive  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2020,
 2021, and 2022 Annual Report to the  Comptroller  on  Actuarial  Assump-
 tions,  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, 2022
 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 30, 2023, and intended for use only during
 the 2023 Legislative Session, is Fiscal Note No. 2023-3, prepared by the
 Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation, as it relates to  the  New
 York  City  Retirement  Systems  and  Pension Funds and, would add a new
 subdivision 4 to Section 212 of the Retirement and Social  Security  Law
 (RSSL)  to increase the post-retirement public employment earnings limit
 from $35,000 per year to $65,000 per year for retired New York City  law
 enforcement  officers,  which  include New York City Police Pension Fund
 (POLICE) Police Officer and New York City Employees'  Retirement  System
 (NYCERS) Deputy Sheriff retirees.
   Effective Date: Upon enactment, and expiring and being deemed repealed
 on January 1, 2029.
   IMPACT  ON PENSION BENEFITS: Retirees who return to public service and
 elect to be covered under the provisions of RSSL Section 212 are permit-
 ted to earn while working  in  retirement  an  amount  not  exceeding  a
 S. 3144--C                          3
 
 specific dollar limit in each calendar year without loss, suspension, or
 diminution  of  their  retirement  allowances. Once this dollar limit is
 reached, the retiree's retirement allowance is suspended for the remain-
 der  of that calendar year. Generally, there are no earnings limitations
 in, or following, the calendar year in which the retiree attains age 65.
   Currently, the Section  212  post-retirement  earnings  limitation  in
 effect for calendar year 2023 and each year thereafter is $35,000. Under
 the  proposed  legislation,  the RSSL Section 212 post-retirement public
 service earnings limitation would, for eligible retired law  enforcement
 officers,  be  increased  to  $65,000  per  year for calendar years 2024
 through 2028.
   The total amount of RSSL Section 212 retirement allowance suspensions,
 given certain RSSL Section 212 limits, are contingent upon both individ-
 ual post-retirement earnings and  individual  annual  retirement  allow-
 ances.  Therefore,  for  illustrative  purposes  only,  the  table below
 presents the estimated  additional  retirement  allowances  paid  (i.e.,
 those  benefits  that  would  not  be  subject  to  suspension), if this
 proposed legislation is enacted,  for  various  sample  combinations  of
 post-retirement annual earnings and annual retirement allowance amounts.
 
 Annual Retirement   Annual Post-Retirement Earnings in Calendar Year
    Allowance           $40,000          $60,000        $80,000
     $30,000             $3,750          $12,500        $11,250
     $40,000             $5,000          $16,667        $15,000
     $50,000             $6,250          $20,833        $18,750
     $60,000             $7,500          $25,000        $22,500
     $70,000             $8,750          $29,167        $26,250
 
 FINANCIAL  IMPACT  -  ANNUAL  EMPLOYER  CONTRIBUTIONS: Enactment of this
 proposed legislation would increase employer contributions,  where  such
 amount  would  depend  on  the number of retirees that benefit under the
 legislation and the amount of their earnings and retirement  allowances.
 As  there  is  no data currently available to estimate the number of law
 enforcement officers who might become reemployed, the  financial  impact
 would  be  recognized  at  the  time  of event. Consequently, changes in
 employer contributions have been estimated assuming that the increase in
 pension payments will be financed  over  a  closed  15-year  period  (14
 payments  under  the One-Year Lag Methodology (OLYM)) using level dollar
 payments.
   The number of retirees who  could  potentially  be  impacted  by  this
 proposed legislation cannot be readily determined. However, for each 100
 positions  that  would  be impacted if this legislation were to pass and
 assuming post-retirement earnings of $50,000 to $60,000 for  each  reti-
 ree,  the increase in pension payments is calculated to be approximately
 $1.5 million to $2.0 million per year if  the  proposed  legislation  is
 enacted.  This  would  result in an increase in annual employer contrib-
 utions of $180,000 to $240,000.
   CENSUS DATA: For purposes of analyzing  the  impact  of  the  proposed
 legislation,  illustrative  examples  with various salary and retirement
 allowance amounts have been provided above.
   ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
 been calculated based on the actuarial assumptions and methods  used  to
 determine  the  Preliminary  Fiscal  Year 2024 employer contributions of
 NYCERS and POLICE.
   For the purposes of this Fiscal Note, it is assumed that the change in
 the pension payments would be reflected for the first time in  the  June
 S. 3144--C                          4

 30,  2024  actuarial  valuations  of NYCERS and POLICE used to determine
 employer contributions for Fiscal Year 2026.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the realization of the actuarial assumptions used, demographic
 of the impacted populations,  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.
   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 initial  additional  adminis-
 trative costs to implement the proposed legislation.
   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 2023-58 dated May 24,
 2023 was prepared by the Chief Actuary for the New York  City  Employees
 Retirement  System  and New York City Police Pension Fund. This estimate
 is intended for use only during the 2023 Legislative Session.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3144--D
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2023
                                ___________
 
 Introduced by Sens. MANNION, BORRELLO, COMRIE, HARCKHAM, HINCHEY, LANZA,
   MAYER,  PALUMBO,  ROLISON  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and  recommitted  to  said  committee  --  committee  discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee  --  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
   increasing the earning limitations for retired persons in positions of
   public service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 212 of the retirement and social  security  law  is
 amended by adding a new subdivision 2-a to read as follows:
   2-A.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  TWO  OF  THIS
 SECTION, THE EARNINGS LIMITATION FOR FOR RETIRED PERSONS IN  A  POSITION
 OF  PUBLIC SERVICE SHALL BE INCREASED TO FIFTY THOUSAND DOLLARS FROM THE
 YEAR TWO THOUSAND TWENTY-THREE AND THEREAFTER.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend Section 212 of the Retirement and Social Securi-
 ty Law (RSSL) to set the salary a retired  person  may  earn  in  public
 employment  without  reduction in retirement allowance to $50,000 during
 the calendar year 2023 and thereafter. Currently, the  salary  limit  is
 $35,000.
   Insofar  as  this bill affects the New York State and Local Retirement
 System (NYSLRS), if enacted during the  2023  legislative  session,  the
 direct  cost  incurred  would  be the retiree's post-retirement earnings
 more than $35,000 each calendar year, not to  exceed  the  full  pension
 benefit  paid  by  the NYSLRS during the calendar year. Annually, NYSLRS

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03862-11-3
              

 S. 3144--D                          2
 
 will determine which  retirees  earned  post-retirement  income  with  a
 public employer.
   In   the  New  York  State  and  Local  Employees'  Retirement  System
 (NYSLERS), pursuant to Section 25 of the RSSL, these direct costs  would
 be borne entirely by the State of New York and would require an itemized
 appropriation  sufficient  to pay the cost of the provision. The benefit
 improvement will be funded by including a separate  itemized  charge  on
 the  annual  invoice  of the State of New York, beginning March 1, 2025,
 equal to the cost quoted above, plus interest.
   In the New York State and Local  Police  and  Fire  Retirement  System
 (NYSLPFRS),  those  participating employers that elect to hire a retired
 person pursuant to this legislation will incur annual costs equal to the
 additional pension payments quoted above, plus interest.
   In addition to the direct costs quoted above, insofar as this proposal
 disrupts the usual pattern and timing of employee turnover (that is,  if
 members  retire  earlier than assumed and participating employers hire a
 retiree instead of a new billable member),  shifts  in  member  behavior
 could generate losses that increase the average billing rates.
   *  In  the  20-year  and  25-year service-based plans, average billing
 rates could increase from 27.8% to 37.7%.
   * In the age-based plans, average billing rates  could  increase  from
 13.7% to 17.2%.
   The  actual  increase  in  billing  rates  will depend upon member and
 employer utilization, with the rates above representing an upper limit.
   Further, we anticipate additional administrative  costs  to  implement
 the provisions of this legislation.
   The  exact  number  of  current  members as well as future members who
 could be affected by this legislation cannot be readily determined.
   Summary of relevant resources:
   Membership data as of March 31, 2022 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2022 Report of the Actuary and the 2022 Annual  Comprehensive  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2020,
 2021, and 2022 Annual Report to the  Comptroller  on  Actuarial  Assump-
 tions,  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, 2022
 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 13, 2023, and intended for use only during
 the 2023 Legislative Session, is Fiscal Note No. 2023-121,  prepared  by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  add  a  new  subdivision  2-a to Section 212 of the
 Retirement and Social Security Law to increase the  earnings  limitation
 for  retired  members  in  positions of public employment to $50,000 for
 calendar year 2023 and thereafter. Currently,  the  earnings  limitation
 for each calendar year is $35,000.
 S. 3144--D                          3
 
   This significant increase in the earnings-after-retirement limit could
 have  an  impact  on  the  Retirement System's patterns of retirement by
 inducing some members to retire earlier than they otherwise would  have.
 As a general rule of thumb, earlier retirement represents an increase in
 plan  costs  since members will be receiving their benefits for a longer
 period of time.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers'  Retirement  System  for this benefit is estimated to be $81.9
 million or 0.44% of payroll if this bill is enacted.
   Member data is from  the  System's  most  recent  actuarial  valuation
 files,  consisting  of  data provided by the employers to the Retirement
 System. Data distributions and statistics can be found in  the  System's
 Annual  Report.  System assets are as reported in the System's financial
 statements and can also be found in the System's Annual Report. Actuari-
 al assumptions and methods are provided in the System's Actuarial  Valu-
 ation Report.
   The  source of this estimate is Fiscal Note 2023-36 dated June 2, 2023
 prepared by the Office of the Actuary of the New  York  State  Teachers'
 Retirement  System and is intended for use only during the 2023 Legisla-
 tive Session. I, Richard A. Young, am the Chief Actuary for the New York
 State Teachers' Retirement System. I am a member of the American Academy
 of Actuaries and I meet the  Qualification  Standards  of  the  American
 Academy of Actuaries to render the actuarial opinion contained herein.