S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2710
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 22, 2025
                                ___________
 
 Introduced  by Sen. SCARCELLA-SPANTON -- 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 restoration of 20 year service retirement for New York city police
   officers

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 17 of section 501 of the retirement and  social
 security  law,  as amended by chapter 18 of the laws of 2012, is amended
 to read as follows:
   17. "Normal retirement  age"  shall  be  age  sixty-two,  for  general
 members, and the age at which a member completes or would have completed
 twenty-two  years  of  service,  for  police/fire members, New York city
 uniformed correction/sanitation revised plan  members  and  investigator
 revised  plan  members,  EXCEPT  THAT FOR POLICE/FIRE MEMBERS OF THE NEW
 YORK CITY POLICE PENSION FUND, NORMAL RETIREMENT AGE SHALL BE THE AGE AT
 WHICH A MEMBER  COMPLETES  OR  WOULD  HAVE  COMPLETED  TWENTY  YEARS  OF
 SERVICE.
   § 2. Subdivision d of section 503 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   d.  The  normal  service  retirement benefit specified in section five
 hundred five of this article shall be paid to police/fire  members,  New
 York  city  uniformed  correction/sanitation  revised  plan  members and
 investigator revised plan members without regard to age upon  retirement
 after  twenty-two  years  of  service,  EXCEPT  THAT  THE NORMAL SERVICE
 RETIREMENT BENEFIT SPECIFIED IN SECTION FIVE HUNDRED FIVE OF THIS  ARTI-
 CLE  SHALL  BE  PAID  TO POLICE/FIRE MEMBERS OF THE NEW YORK CITY POLICE
 PENSION FUND, AFTER TWENTY YEARS OF SERVICE.   Early service  retirement
 shall  be  permitted  upon  retirement  after  twenty  years of credited

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05882-02-5
              

 S. 2710                             2
 
 service or attainment of age sixty-two, provided, however, that New York
 city  police/fire  revised  plan  members,  New  York   city   uniformed
 correction/sanitation revised plan members and investigator revised plan
 members shall not be eligible to retire for service prior to the attain-
 ment of twenty years of credited service.
   §  3. Section 505 of the retirement and social security law is amended
 by adding a new subdivision d to read as follows:
   D.  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY  IN  ANY  OTHER  LAW,
 POLICE/FIRE  MEMBERS  OF  THE NEW YORK CITY POLICE PENSION FUND SHALL BE
 ELIGIBLE FOR A NORMAL SERVICE RETIREMENT BENEFIT IN  LIEU  OF  AN  EARLY
 SERVICE  RETIREMENT  BENEFIT  UPON  COMPLETING  TWENTY  YEARS OF SERVICE
 PURSUANT TO SUBDIVISION D OF SECTION FIVE HUNDRED THREE OF THIS ARTICLE.
   § 4. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would reduce the Normal  Retirement
 Age for Tier 3 members of the New York City Police Pension Fund (POLICE)
 to be the age at which a member completes or would have completed twenty
 years of service.
 
                 EXPECTED IMPACT ON EMPLOYER CONTRIBUTIONS
                              ($ in Millions)
 
                                Year  POLICE
                                2026   16.3
                                2027   17.4
                                2028   18.7
                                2029   20.0
                                2030   21.3
                                2031   22.5
                                2032   23.5
                                2033   24.5
                                2034   25.5
                                2035   26.4
                                2036   27.3
                                2037   28.2
                                2038   29.1
                                2039   29.9
                                2040   30.8
                                2041   31.7
                                2042   25.8
                                2043   26.7
                                2044   27.6
                                2045   28.5
                                2046   29.4
                                2047   30.3
                                2048   31.2
                                2049   32.1
                                2050   33.1
 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 0.33%).
 
 The entire increase in employer contributions will be allocated  to  New
 York City.
 S. 2710                             3
 
   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)                 POLICE
                (1) PV of Employer Contributions:  122.9
                (2) PV of Employee Contributions:  (10.6)
                Total PV of Benefits (1) + (2):    112.3
 
 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
 
                                                   POLICE
                Increase (Decrease) in UAL:        61.6 M
                Number of Payments:                16
                Amortization Payment:              6.8 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.
 
                                                   POLICE
                Active Members
                - Number Count:                    21,782
                - Average Age:                     33.2
                - Average Service:                 6.5
                - Average Salary:                  116,200
 
 IMPACT ON MEMBER BENEFITS: Currently, Tier 3 POLICE members  who  retire
 with  at  least  20  years  of service are eligible to receive an annual
 benefit that is equal to 42% of Final Average Salary  (FAS),  increasing
 to a maximum benefit of 50% of FAS after 22 years of service.
   Under  the proposed legislation, Tier 3 POLICE members who retire with
 at least 20 years of service would be  eligible  to  receive  an  annual
 benefit that is equal to 50% of FAS.
   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:
   o  Retirement rates were adjusted to reflect the earlier payability of
 the service retirement benefit associated with the proposed legislation.
   o 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
 S. 2710                             4
 
 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 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 2025-02 dated January 17,
 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.