S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8897
 
                             I N  S E N A T E
 
                              March 25, 2024
                                ___________
 
 Introduced  by  Sen.  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
   the calculation of past service credit for police officers employed by
   the  division  of  law  enforcement in the department of environmental
   protection in the city of New York transferring between the  New  York
   city  employees'  retirement  system  to  the New York state and local
   police and fire retirement system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  343 of the retirement and social security law is
 amended by adding a new subdivision i to read as follows:
   I. 1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
 RY, FOR ANY POLICE OFFICER EMPLOYED BY THE DIVISION OF  LAW  ENFORCEMENT
 IN  THE  DEPARTMENT  OF ENVIRONMENTAL PROTECTION IN THE CITY OF NEW YORK
 TRANSFERRING FROM THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM TO  THE
 NEW  YORK  STATE  AND  LOCAL POLICE AND FIRE RETIREMENT SYSTEM AFTER THE
 EFFECTIVE DATE OF THIS  SUBDIVISION  AND  ANY  POLICE  OFFICER  FORMERLY
 EMPLOYED  BY  THE DIVISION OF LAW ENFORCEMENT IN THE DEPARTMENT OF ENVI-
 RONMENTAL PROTECTION IN THE CITY OF NEW YORK HAVING MADE SUCH  TRANSFER,
 SUCH  POLICE  OFFICER'S DIVISION OF LAW ENFORCEMENT IN THE DEPARTMENT OF
 ENVIRONMENTAL PROTECTION IN THE CITY OF NEW YORK SERVICE CREDIT SHALL BE
 DEEMED CREDITABLE SERVICE, IN SUCH POLICE OFFICER'S TWENTY YEAR OR TWEN-
 TY-FIVE YEAR RETIREMENT PLAN, IF SUCH POLICE OFFICER HAS SERVED  FOR  AT
 LEAST  TWO  YEARS IN SUCH EMPLOYMENT AND IF, WITHIN ONE YEAR OF THE DATE
 ON WHICH HE OR SHE FIRST BECAME A MEMBER OF THE NEW YORK STATE AND LOCAL
 POLICE AND FIRE RETIREMENT SYSTEM OR WITHIN ONE YEAR  OF  THE  EFFECTIVE
 DATE OF THIS SUBDIVISION, SUCH MEMBER ELECTS TO DO SO.
   2.  THE  AMOUNT OF SUCH SERVICE CREDITED TO THE MEMBER IN THE NEW YORK
 STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM PLAN SHALL NOT  EXCEED
 THE  AMOUNT  OF  SERVICE  CREDITED  TO  THE  MEMBER IN THE NEW YORK CITY
 EMPLOYEES' RETIREMENT SYSTEM PLAN.
   3. IF THE MEMBER SUBSEQUENTLY RETIRES ON AN AGE-BASED RETIREMENT  PLAN
 IN  THE  NEW  YORK  STATE  AND  LOCAL  POLICE AND FIRE RETIREMENT SYSTEM
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03776-04-4
 S. 8897                             2

 INSTEAD OF A TWENTY YEAR OR TWENTY-FIVE YEAR PLAN, THE  FULL  AMOUNT  OF
 SERVICE  CREDIT  EARNED, AS A POLICE OFFICER EMPLOYED BY THE DIVISION OF
 LAW ENFORCEMENT IN THE DEPARTMENT OF  ENVIRONMENTAL  PROTECTION  IN  THE
 CITY OF NEW YORK SHALL BE GRANTED.
   4. IN NO EVENT SHALL THE DIVISION OF LAW ENFORCEMENT IN THE DEPARTMENT
 OF  ENVIRONMENTAL PROTECTION IN THE CITY OF NEW YORK SERVICE CREDITED TO
 A MEMBER OF THE NEW YORK STATE AND  LOCAL  POLICE  AND  FIRE  RETIREMENT
 SYSTEM PURSUANT TO THIS SUBDIVISION EXCEED A TOTAL OF TEN YEARS.
   5.  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW IN THIS SECTION TO THE
 CONTRARY, THE RESERVE ON SUCH MEMBER'S  BENEFITS  SHALL  BE  TRANSFERRED
 FROM  THE  NEW  YORK  CITY  EMPLOYEES' RETIREMENT SYSTEM TO THE NEW YORK
 STATE AND LOCAL POLICE AND FIRE RETIREMENT  SYSTEM  IN  ACCORDANCE  WITH
 SUBDIVISIONS C AND D OF THIS SECTION.
   6.  NO MEMBER WHO RECEIVES SERVICE CREDIT PURSUANT TO THIS SUBDIVISION
 SHALL BE ELIGIBLE TO  RECEIVE  ADDITIONAL  SERVICE  CREDIT  PURSUANT  TO
 SUBDIVISION  B OF SECTION THREE HUNDRED EIGHTY-FOUR-E OF THIS ARTICLE IF
 HIS OR HER EMPLOYER HAS ELECTED TO PROVIDE SUCH SERVICE CREDIT.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  expand  the  definition of service creditable under
 20-year and 25-year plans in the New York State  and  Local  Police  and
 Fire  Retirement System (NYSLPFRS) to include service transferred by any
 police officer employed or formerly employed  by  the  Division  of  Law
 Enforcement in the Department of Environmental Protection in the City of
 New  York,  provided  that such police officer has at least two years of
 such employment. The member must elect  to  obtain  the  service  credit
 within  one  year of the date on which they first became a member of the
 NYSLPFRS or within one year of the effective date of this bill, whichev-
 er occurs later. The amount of service credit received in  the  NYSLPFRS
 shall  not  exceed  the minimum of the amount of service credited to the
 member in the New York City Employees' Retirement System  (NYCERS)  plan
 or 10 years.
   If  this  bill  is  enacted during the 2024 Legislative Session, it is
 estimated that the past service cost will average approximately  25%  of
 an  affected member's salary for each year of additional service that is
 credited on a 20-year or 25-year plan. This cost will be offset  by  any
 reserves  transferred from the NYCERS. The remaining cost will be shared
 by the State  of  New  York  and  the  participating  employers  in  the
 NYSLPFRS.
   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, 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.
 S. 8897                             3
 
   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  February  2,  2024,  and intended for use only
 during the 2024  Legislative  Session,  is  Fiscal  Note  No.  2024-108,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed  legislation  would  allow  current  or  former
 NYCERS  members  employed  as  New York City Department of Environmental
 Protection (DEP) police officers who transfer or transferred to the  New
 York State and Local Police and Fire Retirement System (PFRS) to receive
 up to 10 years of service credit in the 20 or 25-year State Plans.
 
       ILLUSTRATION - INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
          by Fiscal Year for the first 25 years ($ in Thousands)
                   Year   One Transfer   One Transfer
                                           Per Year
                   2025        5.3           5.3
                   2026        5.3          10.6
                   2027        5.3          16.0
                   2028        5.3          21.5
                   2029        5.3          27.0
                   2030        5.3          32.6
                   2031        5.3          38.2
                   2032        5.3          43.9
                   2033        5.3          49.7
                   2034        5.3          55.5
                   2035        5.3          61.4
                   2036        5.3          67.3
                   2037        5.3          73.2
                   2038        5.3          79.2
                   2039          0          80.0
                   2040          0          80.7
                   2041          0          81.4
                   2042          0          82.1
                   2043          0          82.8
                   2044          0          83.4
                   2045          0          84.0
                   2046          0          84.5
                   2047          0          85.0
                   2048          0          85.5
                   2049          0          85.9
   Employer Contribution impact beyond Fiscal Year 2049 is not shown.
 
   The potential increases in employer contributions will be allocated to
 New York City.
 
           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                   as of June 30, 2023 ($ in Thousands)
 
                 Present Value (PV)           Per Transfer
                 PV of Benefits:                      44.6
                 PV of Employee Contributions:        0.0
 S. 8897                             4
 
                 PV of Employer Contributions:        44.6
                 Unfunded Accrued Liabilities:        44.6

                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
            Recognized as Ongoing Gain/Loss    Per Transfer
            Number of Payments:                        14
            Amortization Payment:                     5.3 K
 
   CENSUS DATA: The number of members who have transferred or will trans-
 fer  to  PFRS  is  unknown.  The estimates presented herein are based on
 preliminary census data collected as of June 30, 2023. The  census  data
 for  the  potentially  impacted  population  used to develop the average
 costs in this Fiscal Note is based on DEP police officers  currently  in
 NYCERS  who  have  between two and 15 years of service and is summarized
 below.
 
                                               NYCERS
            Active Members
            - Number Count:                    82
            - Average Age:                     35.9
            - Average Service:                 8.6
            - Average Salary:                  79,400
            Term. Vested Members
            - Number Count:                    23
            - Average Age:                     39.8
            Term. Non-Vested Members
            - Number Count:                    41
            - Average Age:                     35.6
 
   BACKGROUND: Currently, NYCERS members employed as DEP police  officers
 who  subsequently  become employed by the State are eligible to transfer
 their NYCERS membership and receive service credit in the  State  plans,
 but  generally  do not receive service credit in the 20-year and 25-year
 PFRS Plans.
   Under the proposed legislation, DEP police officers who served in such
 title for a minimum of two years and then transfer their NYCERS  member-
 ship  to  PFRS within one year of becoming a PFRS member (or one year of
 the effective date, if later) would receive up to 10 years of credit  in
 the 20-year and 25-year PFRS Plans for such equal DEP service.
   Currently,  member  accumulated contributions (with accrued interest),
 and employer paid reserves if the  member  has  at  least  10  years  of
 service,  are  transferred. Under the proposed legislation, NYCERS would
 be required to calculate and pay such member's pension reserve,  net  of
 any  accumulated  salary deductions otherwise transferred, to PFRS, even
 if the member has less than 10 years of service.
   It should be noted that the proposed legislation does not provide  for
 a  reciprocal transfer of reserves should a member transfer from PFRS to
 NYCERS with less than 10 years of service.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems.
   For purposes of this  Fiscal  Note,  it  has  been  assumed  that  the
 impacted  NYCERS  members  would  generally  not  have transferred their
 membership to PFRS absent this proposed legislation. It has been further
 S. 8897                             5
 
 assumed that members with more than 15 years of service would not trans-
 fer their membership even under the proposed legislation.
   The  number of members who will benefit in the future from this fiscal
 note is unknown. The cost of this proposed legislation could vary great-
 ly depending on the number of future members who benefit and,  on  their
 plan, length of service, age, and salary history.
   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 2024-29 dated  March  15,
 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.