NY State Senate Bill 2025-S4598

Senate Bill S4598

2025-2026 Legislative Session

Provides for eligibility of certain participants in the New York City employees retirement system to opt into the twenty-five year retirement program for EMT members

download bill text pdf

Current Bill Status - In Senate Committee Civil Service And Pensions Committee

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 10, 2025	referred to civil service and pensions

2025-S4598 (ACTIVE) - Details

See Assembly Version of this Bill:: A5771
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §604-e, R & SS L
Versions Introduced in 2023-2024 Legislative Session:: S6976, A7420, A10603

2025-S4598 (ACTIVE) - Summary

Provides for eligibility of certain participants in the New York City employees retirement system to opt into the twenty-five year retirement program for EMT members.

2025-S4598 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4598

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
the eligibility of certain participants in the New York city employees'
retirement system to opt into the twenty-five year retirement program
for EMT members

 
PURPOSE:

This bill provides New York City EMT members with the option to opt into
the 25-year retirement program.

 
SUMMARY OF PROVISIONS:

Section 1 amends paragraph 3 of subdivision b of Section 604-E of the
Retirement and Social Security Law to provide New York City EMT members
with the option to opt into a 25-year retirement program if the EMT
files a duly executed election form with the retirement system within
180 days after the effective date of this bill.

Section 2 is the effective date.

 
JUSTIFICATION:

The Twenty-Five Year Retirement Program for EMT members provides EMTs
and Paramedics with an opportunity to retire with a full pension after
25 years of service, regardless of age. The job performed by these
covered emergency medical clinicians is hazardous and extremely stress-
ful. The early retirement opportunity has been extended to the, as with
other uniformed service workers, in recognition of the vital service
they provide to members of the public.

However, the right to participate in the program is conditioned on the
member's paying substantial additional member contributions to the
Retirement System, specifically 6.25% of their salary. While those hired
into covered employment are mandated into the program, the law makes an
exception for persons who were older than 25 years of age at the time of
hire. These individuals have been permitted to opt out of the program,
provided they elect to do so within 180 days of their hire date.

Over the years since the law was enacted, a small group of covered
employees have opted out. A number of these now recognize that this was
a mistake - a mistake that was not apparent to them when they were young
and first hired.

If adopted, this bill will give these persons a one-time opportunity to
reverse that choice and opt into the program, provided that they make
that election with 180 days of the date of enactment and agreed to make
all the additional member contributions that they would have made had
they not opted out when they were hired, plus interest. Allowing these
individuals to opt in will only put them in a position equivalent to
their coworkers hired at the same time who did not opt out. Moreover, by
conditioning the opt-in on the participant's payment of all of the past
AMCs and interest, there should be no material fiscal impact on the
plan.

 
LEGISLATIVE HISTORY:

2023-2024: S.6976/ A.7420 - vetoed by the Governor

 
STATE AND LOCAL FISCAL IMPLICATIONS:

See fiscal note.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S4598 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4598
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2025
                                ___________
 
 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 retirement and social security law, in  relation  to
   the  eligibility  of certain participants in the New York city employ-
   ees' retirement system to opt into  the  twenty-five  year  retirement
   program for EMT members
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 3 of  subdivision  b  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:
   3. Each EMT member, other than an EMT member subject to paragraph  one
 or  two  of  this  subdivision, who becomes subject to the provisions of
 this article on or after the  starting  date  of  the  twenty-five  year
 retirement  program  shall  become a participant in the twenty-five year
 retirement program on the date [he or she] SUCH PERSON becomes  such  an
 EMT  member.  Provided, however, a person subject to this paragraph, and
 who has exceeded age twenty-five upon employment as an EMT member, shall
 be exempt from participation in the improved twenty-five year retirement
 program if such person elects  not  to  participate  by  filing  a  duly
 executed  form with the retirement system within one hundred eighty days
 of becoming an EMT member. PROVIDED FURTHER, HOWEVER, THAT A PERSON  WHO
 HAS  OPTED  TO BE EXEMPT PURSUANT TO THIS PARAGRAPH MAY BECOME A PARTIC-
 IPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM IF SUCH PERSON FILES  A
 DULY  EXECUTED  ELECTION  FORM  WITH  THE  RETIREMENT  SYSTEM WITHIN ONE
 HUNDRED EIGHTY DAYS AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE  LAWS
 OF  TWO  THOUSAND TWENTY-FIVE THAT AMENDED THIS PARAGRAPH, PROVIDED SUCH
 PERSON IS AN EMT MEMBER ON THE DATE SUCH ELECTION  IS  FILED,  AND  SUCH
 PERSON  SHALL  PAY ALL ADDITIONAL MEMBER CONTRIBUTIONS REQUIRED PURSUANT
 TO SUBDIVISION E OF THIS SECTION FROM THE DATE THAT SUCH  PERSON  BECAME
 AN  EMT MEMBER TO THE DATE SUCH PERSON ELECTS TO BECOME A PARTICIPANT IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06971-02-5

 S. 4598                             2
 
 THE PROGRAM TOGETHER WITH INTEREST COMPUTED IN ACCORDANCE WITH PARAGRAPH
 FOUR OF SUBDIVISION E OF THIS SECTION.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This  proposed  legislation  would allow eligible Tier 4 and
 Tier 6 EMT Members who previously opted out of the EMT 25-Year  Plan,  a
 second  opportunity  to join such Plan by filing an application with the
 New York City Employee's Retirement System (NYCERS) within 180  days  of
 the effective date.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
          by Fiscal Year for the first 25 years ($ in Thousands)
 
                     Year      NYCERS
 
                     2026      102
                     2027      85
                     2028      72
                     2029      67
                     2030      (5)
                     2031      (9)
                     2032      (12)
                     2033      (14)
                     2034      (17)
                     2035      (19)
                     2036      (20)
                     2037      (21)
                     2038      (22)
                     2039      (23)
                     2040      (22)
                     2041      (21)
                     2042      (20)
                     2043      (18)
                     2044      (17)
                     2045      (15)
                     2046      (13)
                     2047      (11)
                     2048      (9)
                     2049      (8)
                     2050      (6)
 
   Employer Contribution impact beyond Fiscal Year 2050 is not shown.
 
   The entire increase (decrease) in employer contributions will be allo-
 cated 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 Thousands)
 
              Present Value (PV)                 NYCERS
 
              (1) PV of Employer Contributions:  145.1
 S. 4598                             3
 
              (2) PV of Employee Contributions:  249.4
              Total PV of Benefits (1) + (2):    394.5
 
   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:        221.6 K
              Number of Payments:                4
              Amortization Payment:              67.7 K
 
   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:                    7
              - Average Age:                     47.1
              - Average Service:                 24.9
              - Average Salary:                  89,300
 
   IMPACT ON MEMBER BENEFITS AND CONTRIBUTIONS: This proposed legislation
 would provide current EMT members, who previously opted out of  the  EMT
 25-Year Plans, a 180-day opportunity to join such plan.
   Members of the EMT 25-Year Plans would be required to pay Basic Member
 Contributions (BMC), which vary by tier, plus Additional Member Contrib-
 utions  (AMC)  equal  to 6.25% of compensation for all service as a Plan
 participant until attaining 30 years of Allowable 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:
     * Election assumptions and the  rates  of  retirement  for  the  EMT
 25-Year Plans were assigned based on the bill's provisions including the
 eligibility requirements for retirement under the EMT 25-Year Plans.
     * For purposes of this fiscal note, existing AMC balances, including
 physically taxing AMC, are assumed to offset the AMC payment required to
 join the EMT 25-Year Plan.
   To  determine the impact of the elective nature of the proposed legis-
 lation, a subgroup of EMT members was developed based on who is  assumed
 to  benefit  actuarially  by  comparing  the net present value of future
 employer costs of each member's benefit under  their  current  plan  and
 under the applicable EMT 25-Year Plan.
   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.
 S. 4598                             4

   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 2025-05 dated February 3,
 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.

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