Senate Bill S6864A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6864--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2023
                                ___________
 
 Introduced  by Sens. JACKSON, SANDERS -- read twice and ordered printed,
   and when printed to be committed to the Committee on Civil Service and
   Pensions -- recommitted to the Committee on Civil Service and Pensions
   in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10049-07-4
              

 S. 6864--A                          2
 
   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. 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.
   NOTWITHSTANDING THE FOREGOING, ON AND AFTER THE EFFECTIVE DATE OF THIS
 PARAGRAPH, THE RATE OF CONTRIBUTION FOR MEMBERS WITH TEN OR  MORE  YEARS
 OF MEMBERSHIP SHALL BE THREE PER CENTUM OF ANNUAL 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. Subdivision a of section 613 of the retirement and social securi-
 ty law, as amended by chapter 10 of the laws of 2000, paragraphs 1 and 2
 as amended by chapter 510 of the laws of 2015,  the second  undesignated
 paragraph  of paragraph 1 and the second undesignated paragraph of para-
 graph 2 as amended by section 2 of part SS of chapter 56 of the laws  of
 2022, is amended to read as follows:
   a. 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-
 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
 S. 6864--A                          3
 
 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. 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.
   NOTWITHSTANDING THE FOREGOING, ON AND AFTER THE EFFECTIVE DATE OF THIS
 PARAGRAPH, THE RATE OF CONTRIBUTION FOR MEMBERS WITH TEN OR  MORE  YEARS
 OF MEMBERSHIP SHALL BE THREE PER CENTUM OF ANNUAL 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
 S. 6864--A                          4
 
 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
   (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. 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.
   NOTWITHSTANDING THE FOREGOING, ON AND AFTER THE EFFECTIVE DATE OF THIS
 PARAGRAPH,  THE  RATE OF CONTRIBUTION FOR MEMBERS WITH TEN OR MORE YEARS
 OF MEMBERSHIP SHALL BE THREE PER CENTUM OF ANNUAL WAGES.
 S. 6864--A                          5
 
   § 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, the second
 undesignated paragraph of subdivision  f  and  the  second  undesignated
 paragraph  of subdivision g as amended  by section 2 of part SS of chap-
 ter 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)
 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. 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.
   NOTWITHSTANDING THE FOREGOING, ON AND AFTER THE EFFECTIVE DATE OF THIS
 PARAGRAPH,  THE  RATE OF CONTRIBUTION FOR MEMBERS WITH TEN OR MORE YEARS
 OF MEMBERSHIP SHALL BE THREE PER CENTUM OF ANNUAL WAGES.
   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.
 S. 6864--A                          6
 
   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.  Annual  base
 wages shall not include compensation earned for extracurricular programs
 or  any  other  pensionable earnings paid in addition to the annual base
 wages.
   NOTWITHSTANDING THE FOREGOING, ON AND AFTER THE EFFECTIVE DATE OF THIS
 PARAGRAPH, THE RATE OF CONTRIBUTION FOR MEMBERS WITH TEN OR  MORE  YEARS
 OF MEMBERSHIP SHALL BE THREE PER CENTUM OF ANNUAL WAGES.
   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
 paragraph 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-
 S. 6864--A                          7
 
 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. Base wages shall include regular 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  annual  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.
   NOTWITHSTANDING THE FOREGOING, ON AND AFTER THE EFFECTIVE DATE OF THIS
 PARAGRAPH,  THE  RATE OF CONTRIBUTION FOR MEMBERS WITH TEN OR MORE YEARS
 OF MEMBERSHIP SHALL BE THREE PER CENTUM OF ANNUAL WAGES.
   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:
 S. 6864--A                          8
 
   2. Employee contributions. In  the  case  of  any  electing  employee,
 contributions  at the rate of three per centum of [his] THE state salary
 OF SUCH EMPLOYEE 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] SUCH EMPLOYEE'S 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;
   (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.
   NOTWITHSTANDING THE FOREGOING, ON AND AFTER THE EFFECTIVE DATE OF THIS
 PARAGRAPH,  THE  RATE OF CONTRIBUTION FOR MEMBERS WITH TEN OR MORE YEARS
 OF MEMBERSHIP SHALL BE THREE PER CENTUM OF ANNUAL WAGES.
   § 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;
 S. 6864--A                          9
 
   (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
 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.
   NOTWITHSTANDING THE FOREGOING, ON AND AFTER THE EFFECTIVE DATE OF THIS
 PARAGRAPH, THE RATE OF CONTRIBUTION FOR MEMBERS WITH TEN OR  MORE  YEARS
 OF MEMBERSHIP SHALL BE THREE PER CENTUM OF ANNUAL WAGES.
   §  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.
   NOTWITHSTANDING THE FOREGOING, ON AND AFTER THE EFFECTIVE DATE OF THIS
 PARAGRAPH, THE RATE OF CONTRIBUTION FOR MEMBERS WITH TEN OR  MORE  YEARS
 OF MEMBERSHIP SHALL BE THREE PER CENTUM OF ANNUAL WAGES.
   §  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.
 S. 6864--A                         10
 
   §  9. No   employee contributions made by a member of a public retire-
 ment system prior to the effective date of this act shall be refunded as
 a result of this act becoming a law.
   § 10. This act shall take effect April 1, 2024.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  decrease  the member contribution rate to three (3)
 percent for Tier 5 uniformed court officers and peace  officers  in  the
 unified court system (UCPO) and all Tier 6 members of the New York State
 and  Local  Retirement System (NYSLRS) with ten or more years of member-
 ship, effective April 1, 2024. The current member contribution rate  for
 a Tier 5 UCPO is four (4) percent, regardless of membership tenure.  The
 current member contribution rate for Tier 6 members is variable, depend-
 ing  on  annual  compensation,  between  three  (3)  percent and six (6)
 percent, regardless of membership tenure. There will  be  no  refund  of
 member contributions.
   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 NYSLRS and its more than 3,000 partic-
 ipating employers.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System (NYSLERS), the increased costs would be shared by  the
 State  of New York and the local participating employers in the NYSLERS.
 If this bill were enacted  during  the  2024  Legislative  Session,  the
 increase  in  the  present  value of future costs would be approximately
 $2.73 billion.
 
                Increase in              Increase in
 NYSLERS        Present Value of         Required
                Future Costs             Contributions
 
 Tiers 1 - 5    $0.003 billion           $0.42 billion
 Tier 6         $2.73 billion            $2.31 billion
 Total          $2.73 billion            $2.73 billion
 
   In the NYSLERS, this benefit improvement will be funded by (1) billing
 a past service cost to all participating employers to  cover  retrospec-
 tive  benefit  increases  and  (2) increasing the Tier 5 UCPO and Tier 6
 billing rates charged annually to cover prospective  benefit  increases,
 as follows:
   (1)  To  fund  retrospective  costs,  we anticipate an increase in the
 billing rates charged annually to all participating employers by approx-
 imately 0.3% of salary, beginning with the fiscal year ending March  31,
 2026.
   (2)  To  fund  prospective costs, there would be a further increase in
 the annual billing rate for any Tier 5 UCPO by 0.4%  of  salary  (for  a
 0.7% total annual rate increase) and further increase the annual billing
 rates  for  all  Tier  6 members in the NYSLERS by 1.2% of salary (for a
 1.5% total annual rate increase) beginning with the fiscal  year  ending
 March 31, 2026. This PERMANENT ANNUAL COST will vary in subsequent bill-
 ing  cycles  with changes in the billing rate and salary of the affected
 members.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  System (NYSLPFRS), the increased costs would be shared
 by the State of New York and the local participating  employers  in  the
 NYSLPFRS. If this bill were enacted during the 2024 Legislative Session,
 S. 6864--A                         11
 
 the increase in the present value of future costs would be approximately
 $555 million.
 
                Increase in              Increase in
 NYSLPFRS       Present Value of         Required
                Future Costs             Contributions
 
 Tiers 1 - 5    $0                       $45 million
 Tier 6         $555 million             $510 million
 Total          $555 million             $555 million
 
   In  the NYSLPFRS, this benefit improvement will be funded by (1) bill-
 ing a past service cost to all participating employers to  cover  retro-
 spective  benefit  increases and (2) increasing the Tier 6 billing rates
 charged annually to cover prospective benefit increases, as follows:
   (1) To fund retrospective costs, we  anticipate  an  increase  in  the
 billing rates charged annually to all participating employers by approx-
 imately  0.2% of salary, beginning with the fiscal year ending March 31,
 2026.
   (2) To fund prospective costs, there would be a  further  increase  in
 the  annual  billing rate for all Tier 6 members in the NYSLPFRS by 1.6%
 of salary (for a 1.8% total annual rate  increase)  beginning  with  the
 fiscal  year ending March 31, 2026. This PERMANENT ANNUAL COST will vary
 in subsequent billing cycles with changes in the billing rate and salary
 of the affected members.
   These estimated costs are based on 265,829 Tier  5  UCPO  and  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 1, 2024, and intended for use  only  during
 the  2024  Legislative  Session, is Fiscal Note No. 2024-95, prepared by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   As it relates to the New York State Teachers' Retirement System,  this
 bill  would  amend Section 613 of the Retirement and Social Security Law
 to reduce the required employee contribution  rate  for  Tier  5  and  6
 members who have attained ten or more years of membership to a flat 3.0%
 of  salary, payable over the remainder of their careers. Currently, Tier
 S. 6864--A                         12
 
 5 members are required to contribute at a rate of 3.5%  of  salary,  and
 Tier 6 members are required to contribute between 3.0% and 6.0% of sala-
 ry,  according  to a salary-based schedule. No contributions made before
 the  effective date of this bill would be refunded. This change would be
 effective on April 1, 2024.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers'  Retirement  System for this benefit is estimated to be $134.9
 million or 0.70% 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
 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 6.26% of pay, an increase of 0.95% 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  2024-27  dated  March  15,
 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 Basic
 Member Contribution rate to 3% upon attaining 10 years  of  service  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      129.2      123.1     12.1      264.4
     2026      138.3      129.6     12.8      280.7
     2027      147.9      136.7     13.5      298.1
     2028      157.9      144.3     14.3      316.5
     2029      168.2      152.6     15.2      336.0
     2030      178.9      161.5     16.0      356.4
     2031      189.7      171.1     16.9      377.7
     2032      200.7      181.3     17.9      399.9
     2033      212.0      192.2     18.9      423.1
     2034      223.6      204.0     19.9      447.5
     2035      235.4      216.6     21.0      473.0
     2036      247.3      229.9     22.1      499.3
     2037      259.4      243.9     23.2      526.5
     2038      271.7      258.7     19.4      549.8
     2039      284.1      274.3     20.5      578.9
 S. 6864--A                         13
 
     2040      248.2      290.5     21.7      560.4
     2041      260.7      307.1     22.9      590.7
     2042      273.3      324.0     24.1      621.4
     2043      286.0      340.7     25.3      652.0
     2044      298.7      311.6     26.5      636.8
     2045      311.5      327.9     27.7      667.1
     2046      324.2      343.8     29.0      697.0
     2047      337.1      359.3     30.2      726.6
     2048      349.9      374.4     31.5      755.8
     2049      362.8      389.0     32.7      784.5
    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 $264.4 million is
 estimated to be $191.2 million for New York City and $73.2  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:               (97)      (118)   (9)
 PV of Employee Contributions: (1,547)   (1,871) (136)
 PV of Employer Contributions: 1,450     1,753   127
 Unfunded Accrued Liabilities: 427       457     40
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                               NYCERS    TRS     BERS
 Number of Payments:           15        19      13
 Fiscal Year of Last Payment:  2039      2043    2037
 Amortization Payment:         48.5 M    45.7 M  5.0 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 required to  make  Basic  Member  Contributions  (BMC)
 ranging from 3% to 6% depending on the members' applicable annual wages.
   Under  the  proposed  legislation, the required BMC would be a flat 3%
 upon attaining 10  years  of  service,  effective  April  1,  2024.  The
 required  BMCs  prior  to  attaining  10  years  of service would remain
 unchanged.
   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-
 S. 6864--A                         14
 
 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 2024-20  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.