S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5378
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 13, 2025
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   the  additional  member  contributions required of certain EMTs in the
   twenty-five year retirement program

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  1  of  subdivision  e  of section 604-e of the
 retirement and social security law, as added by chapter 577 of the  laws
 of 2000, is amended to read as follows:
   1.  In  addition  to  the member contributions required by section six
 hundred thirteen of this article, each participant  in  the  twenty-five
 year  retirement  program  shall  contribute to the retirement system of
 which [he or she is] THEY  ARE  a  member  (subject  to  the  applicable
 provisions  of  subdivision  d  of  section six hundred thirteen of this
 article) an additional six and  twenty-five  one-hundredths  percent  of
 [his  or  her] THEIR compensation earned from (i) all allowable service,
 as a participant in the twenty-five year retirement program, rendered on
 or after the starting date of the twenty-five year  retirement  program,
 and  (ii) all allowable service after such person ceases to be a partic-
 ipant, but before [he or she] THEY again [becomes] BECOME a  participant
 pursuant  to  paragraph six of subdivision b of this section.  The addi-
 tional contributions required by this subdivision shall be  in  lieu  of
 additional member contributions required by subdivision d of section six
 hundred  four-c of this [chapter] ARTICLE as added by chapter ninety-six
 of the laws of nineteen hundred ninety-five, and no member making  addi-
 tional  contributions pursuant to this section shall be required to make
 contributions pursuant to such subdivision  d  of  section  six  hundred
 four-c  of  this  [chapter]  ARTICLE.    NOTWITHSTANDING  THE  FOREGOING
 PROVISIONS  OF  THIS  PARAGRAPH,  THE  ADDITIONAL  MEMBER   CONTRIBUTION
 REQUIRED TO BE PAID BY EACH PARTICIPANT PURSUANT TO THIS PARAGRAPH SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00105-02-5
              

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 NOT  EXCEED THE PERCENTAGE OF THEIR COMPENSATION THAT, WHEN ADDED TO THE
 CONTRIBUTION MADE PURSUANT TO SUBDIVISION D OF SECTION SIX HUNDRED THIR-
 TEEN OF THIS ARTICLE, EQUALS NINE AND TWENTY-FIVE ONE-HUNDREDTHS PERCENT
 OF THAT COMPENSATION.
   §  2. This act shall take effect on the first of April next succeeding
 the date on which it shall have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would limit total employee contrib-
 utions for Tier 6 members of the  NYCERS  Emergency  Medical  Technician
 (EMT)  25-Year  Retirement Plan to 9.25% of pensionable pay, starting on
 the April 1st following adoption of the proposed legislation.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                              ($ in Millions)
 
                           Year           NYCERS
                           2026          4.2
                           2027          4.4
                           2028          4.6
                           2029          4.8
                           2030          4.9
                           2031          5.1
                           2032          5.3
                           2033          5.6
                           2034          5.8
                           2035          6.1
                           2036          6.3
                           2037          6.6
                           2038          6.9
                           2039          7.3
                           2040          7.6
                           2041          8.0
                           2042          8.3
                           2043          8.7
                           2044          9.2
                           2045          7.9
                           2046          8.4
                           2047          8.9
                           2048          9.4
                           2049          10.0
                           2050          10.5
 
   Projected contributions include future new hires that may be impacted.
 For Fiscal Year 2051 and beyond, the increase in  normal  cost  for  new
 entrants  will  remain  level as a percent of pay for the impacted popu-
 lation (approximately 2.20%).
 
 The entire increase in employer contributions will be allocated  to  New
 York City.
 
 PRESENT  VALUE  OF  BENEFITS:  The  Present  Value  of  Benefits  is the
 discounted expected value of benefits paid to  current  members  if  all
 assumptions are met, including future service accrual and pay increases.
 Future new hires are not included in this present value.
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          INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
                    as of June 30, 2024 ($ in Millions)
          Present Value (PV)                     NYCERS
          (1) PV of of Employer Contributions:   51.7
          (2) PV of Employee Contributions:      (52.2)
          Total PB of Benefits (1)+(2):          (0.5)
 
 UNFUNDED  ACCRUED LIABILITY (UAL): Actuarial Accrued Liabilities are the
 portion of the Present Value of  Benefits  allocated  to  past  service.
 Changes  in UAL were amortized over the expected remaining working life-
 time of those impacted using level dollar payments.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                                                 NYCERS
              Increase (Decrease) in UAL:        17.3 M
              Number of Payments:                19
              Amortization Payment:              1.7 M
 
 CENSUS DATA: The estimates presented herein  are  based  on  preliminary
 census  data  collected  as  of  June  30, 2024. The census data for the
 impacted population is summarized below.
 
                                                 NYCERS
              Active Members
              - Number Count:                    2,557
              - Average Age:                     32.0
              - Average Service:                 5.5
              - Average Salary:                  67,500
 
 IMPACT ON MEMBER CONTRIBUTIONS: Members of the EMT 25-Year Plan for Tier
 6 members currently contribute basic member contributions,  which  range
 from  3%  to 6% of pensionable pay, plus additional member contributions
 of 6.25% of pensionable  pay  until  attaining  30  years  of  Allowable
 Service.
 Under the proposed legislation, additional member contributions would be
 reduced,  as  necessary,  so  that  total  employee contributions do not
 exceed 9.25% of pensionable pay. Basic member contributions would remain
 the same.
 The following table provides further illustration of the proposed chang-
 es in employee contributions.
 
      Salary Band                Current Total      Proposed Total
                                 Rate               Rate
      $45,000 or less            9.25%              9.25%
      $45,001 up to $55,000      9.75%              9.25%
      $55,001 up to $75,000      10.75%             9.25%
      $75,001 up to $100,000     12.00%             9.25%
      Greater than $100,000      12.25%             9.25%
 ASSUMPTIONS AND METHODS: The estimates presented herein have been calcu-
 lated based on the Revised 2021 Actuarial Assumptions and Methods of the
 impacted retirement systems. In addition:
   * New entrants were assumed to replace exiting members so  that  total
 payroll increases by 3% each year for impacted groups. New entrant demo-
 graphics were developed based on data for recent new hires and actuarial
 judgement.
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 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). This Fiscal Note does not reflect any  chapter
 laws that may have been enacted during the current legislative session.
 STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikovsky
 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 2025-03 dated  January  29,
 2025  was prepared by the Chief Actuary for the New York City Retirement
 Systems and Pension Funds and is intended for use only during  the  2025
 Legislative Session.