S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5853
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2025
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  affording certain uniformed members of the New York city
   fire department pension fund with an  increased  pension  benefit  for
   each year of additional service beyond their required minimum service;
   and  to  amend  the retirement and social security law, in relation to
   affording certain police/fire  members  of  the  New  York  city  fire
   department  pension fund to continue in service past normal retirement
   age with an additional pension benefit for  each  year  of  additional
   service beyond their required minimum service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (a) of paragraph 2 of subdivision a of section
 13-359 of the administrative code of the city of New York is amended  to
 read as follows:
   (a)  a  pension  of  [one-sixtieth]  ONE-FORTIETH of [his or her] SUCH
 MEMBER'S average annual earnings from [his or her] THEIR date of  eligi-
 bility for retirement to the actual date of retirement; and
   § 2. The retirement and social security law is amended by adding a new
 section 503-a to read as follows:
   §  503-A. EXTRA PENSION SERVICE CREDITS. NOTWITHSTANDING ANY PROVISION
 OF LAW TO THE CONTRARY, A POLICE/FIRE MEMBER WHO IS A MEMBER OF THE  NEW
 YORK  CITY FIRE DEPARTMENT PENSION FUND MAY CONTINUE IN SERVICE PAST THE
 DATE THAT SUCH MEMBER ATTAINS NORMAL RETIREMENT AGE. IN SUCH EVENT,  AND
 UPON  THE  MEMBER'S  RETIREMENT FOR ANY CAUSE WHATSOEVER, THERE SHALL BE
 ADDED TO SUCH MEMBER'S ANNUAL PENSION TO WHICH THEY SHALL  UPON  RETIRE-
 MENT  BE ENTITLED, AN ADDITIONAL AMOUNT COMPUTED AT THE RATE OF ONE-FOR-
 TIETH OF SUCH MEMBER'S FINAL SALARY FOR EACH  YEAR  OF  SUCH  ADDITIONAL
 SERVICE.
   § 3. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00091-02-5
              

 A. 5853                             2
 
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would increase the additional annu-
 al  pension for Tier 2 FIRE members from 1/60th to 1/40th after reaching
 20 years of credited service and would provide Tier 3  FIRE  members  an
 additional  1/40th  of  "final  salary" benefit for each year of service
 beyond 22 years of service.

          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                          Year      FIRE
                          2026       127.8
                          2027       130.9
                          2028       134.0
                          2029       137.3
                          2030       140.7
                          2031       144.2
                          2032       147.8
                          2033       151.5
                          2034       155.3
                          2035       159.2
                          2036       163.1
                          2037       167.0
                          2038       171.0
                          2039        95.1
                          2040        99.0
                          2041       102.9
                          2042       106.7
                          2043       110.6
                          2044       114.3
                          2045       118.1
                          2046       121.8
                          2047       125.5
                          2048       129.2
                          2049       132.8
                          2050       136.5
 
   Projected contributions include future new hires that may be impacted.
 For Fiscal Year 2051 and beyond, the expected increase in normal cost as
 a level percent of pay for impacted new entrants is approximately 4.04%.
   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.
 
          INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
                    as of June 30, 2024 ($ in Millions)
              Present Value (PV)                 FIRE
              (1) PV of Employer Contributions:  1,300.0
              (2) PV of Employee Contributions:      0.9
              Total PV Benefits (1) + (2):       1,301.0
 
   UNFUNDED ACCRUED LIABILITY (UAL): Actuarial  Accrued  Liabilities  are
 the  portion of the Present Value of Benefits allocated to past service.
 A. 5853                             3
 
 Changes in UAL were amortized over the expected remaining working  life-
 time of those impacted using level dollar payments.

                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                 FIRE
              Increase (Decrease) in UAL:        644.5 M
              Number of Payments:                  13
              Amortization Payment:              79.8 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.
 
                                                 FIRE
              Active Members
              - Number Count:                    10,691
              - Average Age:                     40.7
              - Average Service:                 13.7
              - Average Salary:                  143,400
 
   IMPACT  ON  MEMBER  BENEFITS: For Tier 2 members, this proposed legis-
 lation would increase the annual pension for certain members who  retire
 for  service  or  accidental disability from 1/60th to 1/40th of average
 annual earnings from the date of eligibility for retirement to the actu-
 al date of retirement for each additional year of credited  service,  or
 fraction thereof, exceeding 20 years.
   For Tier 3 members, this proposed legislation would increase the annu-
 al  pension  for members who retire for service, ordinary disability, or
 accidental disability by 1/40th of Final Salary for each additional year
 of credited service, or fraction thereof, exceeding 22  years.  For  the
 purposes  of  this Fiscal Note, Final Salary has been interpreted as the
 member's pensionable earnings in their final 12 months 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. In addition:
   * The probability of Tier 3 members working beyond 22 years of service
 was increased to recognize the impact  the  proposed  legislation  would
 have on retirement behavior.
   *  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.
   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.
   This Fiscal Note does not include cost analyses relating to provisions
 contained in Retirement and Social Security Law Section 500(c).
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   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 2025-15 dated February
 14, 2025 was prepared by the Chief Actuary for the New York City Retire-
 ment Systems and Pension Funds and is intended for use only  during  the
 2025 Legislative Session.