NY State Senate Bill 2023-S7372

Senate Bill S7372

Signed By Governor

2023-2024 Legislative Session

Extends for two fiscal years the current 7% per annum statutory rate of interest used in valuing retirement system liabilities for the purpose of computing the amount of employer contributions

download bill text pdf

Current Bill Status - Signed by Governor

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

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 30, 2023	signed chap.184
Jun 26, 2023	delivered to governor
Jun 06, 2023	returned to senate passed assembly ordered to third reading rules cal.563 substituted for a7644
Jun 05, 2023	referred to ways and means delivered to assembly passed senate
May 30, 2023	ordered to third reading cal.1424 committee discharged and committed to rules
May 22, 2023	referred to civil service and pensions

Votes

- Jun 5, 2023 - Floor Vote
  S7372
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 5, 2023
      
      aye (61)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      excused (2)
      
      Cooney
      
      Felder
  May 30, 2023 - Rules Committee Vote
  S7372
  
  21
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: May 30, 2023
      
      aye (21)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Helming
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mayer
      
      O'Mara
      
      Ortt
      
      Parker
      
      Sepúlveda
      
      Stec
      
      Stewart-Cousins
      
      Thomas

2023-S7372 (ACTIVE) - Details

See Assembly Version of this Bill:: A7644
Law Section:: New York City Administrative Code
Laws Affected:: Amd §13-638.2, NYC Ad Cd

2023-S7372 (ACTIVE) - Summary

Relates to the rate of interest used in the actuarial valuation of liabilities for the purpose of calculating contributions to the New York city employees' retirement system, the New York city teachers' retirement system, the police pension fund, subchapter two, the fire department pension fund, subchapter two and the board of education retirement system of such city by public employers and other obligors required to make employer contributions to such retirement systems, the crediting of special interest and additional interest and additional interest to members of such retirement systems, and the allowance of supplementary interest on the funds of such retirement systems; extends such provisions until June 30, 2025.

2023-S7372 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7372

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to the rate of interest used in the actuarial valuation of
liabilities for the purpose of calculating contributions to the New York
city employees' retirement system, the New York city teachers' retire-
ment system, the police pension fund, subchapter two, the fire depart-
ment pension fund, subchapter two and the board of education retirement
system of such city by public employers and other obligors required to
make employer contributions to such retirement systems, the crediting of
special interest and additional interest to members of such retirement
systems, and the allowance of supplementary interest on the funds of
such retirement systems

 
SUMMARY OF PROVISIONS:

This bill would extend for two fiscal years, until June 30, 2025, the
current 7% per annum statutory rate of interest used by the Chief Actu-
ary ("Actuary") for the New York City Employees' Retirement System,
Teachers' Retirement System, Board of Education Retirement System,

Police Pension Fund and Fire Department Pension Fund ("City retirement
systems") in valuing retirement system liabilities for the purpose of
computing the amount of employer contributions to those systems. The
bill also would extend for that same period of time the current rates of
special interest, additional interest and supplementary interest, which,
in effect govern the amount of interest to be paid into certain constit-
uent funds of the City retirement systems, and the amount of interest to
be credited on accumulated member contributions and increased-take-home-
pay reserves of Tier 1 and 2 members of those retirement systems. The
current valuation rate of interest and the rate of supplementary inter-
est were originally enacted by Chapter 3 of the Laws of 2013. The
current rates of special and additional interest were continued and
recodified by Chapter 878 of the Laws of 1990 and have remained the same
since. The current one-year period ending on June 30, 202 3, for all
these rates of interest was enacted by Chapter 391 of the Laws of 2021.

 
JUSTIFICATION:

The current rates of interest are effective for the period ending June
30, 2023, and expire as of July 1, 2023.

The City of New York supports the enactment of this bill, which would
provide for a two-year extension of the current valuation rate of inter-
est and the accompanying rates of special, additional and supplementary
interest. The Actuary has stated that the proposed two-year extension of
these rates to June 30, 2025 is consistent with the current preliminary
recommendations regarding these rates from its actuarial auditor,
retained pursuant to New York City Charter § 96. Seeking a two-year
extension is preferable to a longer extension at this time because it
will enable the Actuary to further examine the final experience analysis
of its auditor and expected market conditions. After the expiration of
the current rates, in calendar year 2023.

It should be noted that the Legislature has enacted similar short-term
extensions of such interest rates for the City retirement systems on
numerous previous occasions. See, Chapter 878 of the Laws of 1990, Chap-
ter 642 of the Laws of 1995, Chapter 133 of the Laws of 2004, Chapter
133 of the Laws of 2005, Chapter 211 of the Laws of 2009, Chapter 265 of
the Laws of 2010, Chapter 180 of the Laws of 2011, Chapter 83 of the
Laws of 2016. Chapter 71 of the Laws of 2017, Chapter 100 of the Laws of
2018, Chapter 76 of the Laws of 2019.As this bill would continue the
existing valuation rate of interest and the existing rates of special,
additional, and supplementary interest, its enactment would not change
the amount or timing of expected employer contributions. Accordingly,
the Mayor urges the earliest possible favorable consideration of this
proposal by the Legislature.

 
PRIOR LEGISLATIVE HISTORY:

2021: Chapter 391

2019: Chapter 76

2018: Chapter 100

2017: Chapter 71

2016: Chapter 83

2011: Chapter 180

2010: Chapter 265

2009: Chapter 211

2005: Chapter 133

2004: Chapter 133

1995: Chapter 642

1990: Chapter 878

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Fiscal note is attached.

 
EFFECTIVE DATE:
This act shall take effect July 1, 2023, except that if it shall have
become a law subsequent to such date, this act shall take effect imme-
diately and be deemed to have been in full force and effect on and after
July 1, 2023.

2023-S7372 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7372
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 22, 2023
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  the  rate of interest used in the actuarial valuation of
   liabilities for the purpose of calculating contributions  to  the  New
   York  city  employees'  retirement system, the New York city teachers'
   retirement system, the police pension fund, subchapter two,  the  fire
   department  pension  fund,  subchapter  two and the board of education
   retirement system of such city by public employers and other  obligors
   required  to  make  employer contributions to such retirement systems,
   the crediting of special interest and additional interest  to  members
   of  such retirement systems, and the allowance of supplementary inter-
   est on the funds of such retirement systems
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  2  of subdivision b of section 13-638.2 of the
 administrative code of the city of New York, as amended by  chapter  391
 of the laws of 2021, is amended to read as follows:
   (2)  With  respect  to  each  retirement system, such rate of interest
 shall be as hereinafter set forth in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS             7%                           July 1, 2011 to
                                                 June 30, [2023] 2025
 NYCTRS             7%                           July 1, 2011 to
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11207-01-3

 S. 7372                             2
 
                                                 June 30, [2023] 2025
 PPF                7%                           July 1, 2011 to
                                                 June 30, [2023] 2025
 FPF                7%                           July 1, 2011 to
                                                 June 30, [2023] 2025
 BERS               7%                           July 1, 2011 to
                                                 June 30, [2023] 2025
 
   §  2. Paragraph 2 of subdivision f of section 13-638.2 of the adminis-
 trative code of the city of New York, as amended by chapter 391  of  the
 laws of 2021, is amended to read as follows:
   (2)  Such  special  interest shall be allowed at the rates and for the
 periods set forth below in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2023] 2025
 NYCTRS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2023] 2025
 PPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2023] 2025
 FPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2023] 2025
 BERS                1 1/4%                      July 1, 2011 to
                                                 June 30, [2023] 2025
 
   § 3. Paragraph 2 of subdivision g of section 13-638.2 of the  adminis-
 trative  code  of the city of New York, as amended by chapter 391 of the
 laws of 2021, is amended to read as follows:
   (2) Such additional interest shall be included at the  rates  and  for
 the periods set forth below in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2023] 2025
 NYCTRS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2023] 2025
 PPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2023] 2025
 FPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2023] 2025
 BERS                1 1/4%                      July 1, 2011 to
                                                 June 30, [2023] 2025
 S. 7372                             3
 
   §  4. Paragraph 2 of subdivision i of section 13-638.2 of the adminis-
 trative code of the city of New York, as amended by chapter 391  of  the
 laws of 2021, is amended to read as follows:
   (2)  Such supplementary interest shall be allowed at the rates and for
 the periods set forth below in this paragraph:

                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS             0%                           July 1, 2011 to
                                                 June 30, [2023] 2025
 NYCTRS             0%                           July 1, 2011 to
                                                 June 30, [2023] 2025
 PPF                0%                           July 1, 2011 to
                                                 June 30, [2023] 2025
 FPF                0%                           July 1, 2011 to
                                                 June 30, [2023] 2025
 BERS               0%                           July 1, 2011 to
                                                 June 30, [2023] 2025
 
   § 5. This act shall take effect July 1, 2023, except that if it  shall
 have  become a law subsequent to such date, this act  shall  take effect
 immediately and shall be deemed to have been in full force and effect on
 and after July 1, 2023.

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