S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4667
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 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
   service  retirement  benefits  for uniformed sanitation members of the
   New York city employees' retirement system

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 505 of the retirement and social security law, as
 amended by chapter 18 of the  laws  of  2012,  is  amended  to  read  as
 follows:
   § 505. Service retirement benefits; police/fire members, New York city
 uniformed  correction/sanitation  revised  plan members and investigator
 revised plan members. a.  The  normal  service  retirement  benefit  for
 police/fire  members,  New  York  city  uniformed  correction/sanitation
 revised plan members and investigator revised  plan  members  at  normal
 retirement  age shall be a pension equal to fifty percent of final aver-
 age salary, less fifty percent of the primary social security retirement
 benefit commencing at age sixty-two, as provided in section five hundred
 eleven of this article, EXCEPT THAT FOR NEW YORK CITY UNIFORMED  SANITA-
 TION  REVISED  PLAN  MEMBERS  OF THE NEW YORK CITY EMPLOYEES' RETIREMENT
 SYSTEM, THE NORMAL SERVICE RETIREMENT BENEFIT SHALL NOT  BE  REDUCED  BY
 THE  PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-
 TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   b. The early service retirement benefit for police/fire  members,  New
 York  city  uniformed  sanitation  revised plan members and investigator
 revised plan members shall be a pension  equal  to  two  and  one-tenths
 percent  of  final average salary times years of credited service at the
 completion of twenty years of service or upon attainment of  age  sixty-
 two,  increased  by one-third of one percent of final average salary for
 each month of service in excess of twenty years, but not  in  excess  of
 fifty percent of final average salary, less fifty percent of the primary
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07037-05-5
              

 S. 4667                             2
 
 social  security  retirement  benefit  commencing  at  age  sixty-two as
 provided in section five  hundred  eleven  of  this  article,  provided,
 however,  that  New York city police/fire revised plan members, New York
 city  uniformed sanitation revised plan members and investigator revised
 plan members shall not be eligible to retire for service  prior  to  the
 attainment  of  twenty  years  of credited service, AND PROVIDED FURTHER
 THAT FOR NEW YORK CITY UNIFORMED SANITATION REVISED PLAN MEMBERS OF  THE
 NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE EARLY SERVICE RETIREMENT
 BENEFIT  SHALL  NOT BE REDUCED BY THE PRIMARY SOCIAL SECURITY RETIREMENT
 BENEFIT COMMENCING AT AGE SIXTY-TWO AS PROVIDED IN SECTION FIVE  HUNDRED
 ELEVEN OF THIS ARTICLE.
   c.  A police/fire member, a New York city uniformed sanitation revised
 plan member or an investigator revised  plan  member  who  retires  with
 twenty-two  years  of  credited  service or less may become eligible for
 annual escalation of the service retirement benefit if [he] SUCH  MEMBER
 elects  to  have  the payment of [his] SUCH MEMBER'S benefit commence on
 the date [he] SUCH MEMBER would have completed twenty-two years and  one
 month  or more of service. In such event, the service retirement benefit
 shall equal two percent of final average salary for each year of credit-
 ed service, less fifty percent of the primary social security retirement
 benefit commencing at age sixty-two as provided in section five  hundred
 eleven  of this article, EXCEPT THAT FOR NEW YORK CITY UNIFORMED SANITA-
 TION REVISED PLAN MEMBERS OF THE NEW  YORK  CITY  EMPLOYEES'  RETIREMENT
 SYSTEM,  THE  SERVICE  RETIREMENT  BENEFIT  SHALL  NOT BE REDUCED BY THE
 PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT  AGE  SIXTY-TWO
 AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   §  2. Section 511 of the retirement and social security law is amended
 by adding a new subdivision h to read as follows:
   H. THIS SECTION SHALL NOT APPLY TO NEW YORK CITY UNIFORMED  SANITATION
 REVISED  PLAN  MEMBERS OF THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM
 WHO RECEIVE A  SERVICE  RETIREMENT  BENEFIT  PURSUANT  TO  SECTION  FIVE
 HUNDRED  FIVE  OF  THIS ARTICLE OR A DEFERRED VESTED BENEFIT PURSUANT TO
 SECTION FIVE HUNDRED SIXTEEN OF THIS ARTICLE.
   § 3. Subdivision c of section 516 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   c. The deferred vested benefit of police/fire members, New  York  city
 police/fire    revised   plan   members,   New   York   city   uniformed
 correction/sanitation revised plan members or investigator revised  plan
 members  shall  be a pension commencing at early retirement age equal to
 two and one-tenths percent of final average salary times years of  cred-
 ited  service, less fifty percent of the primary social security retire-
 ment benefit commencing at age sixty-two, as provided  in  section  five
 hundred  eleven of this article, EXCEPT THAT FOR NEW YORK CITY UNIFORMED
 SANITATION REVISED PLAN MEMBERS OF THE NEW YORK CITY EMPLOYEES'  RETIRE-
 MENT  SYSTEM,  THE  DEFERRED  VESTED BENEFIT SHALL NOT BE REDUCED BY THE
 PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT  AGE  SIXTY-TWO
 AS   PROVIDED  IN  SECTION  FIVE  HUNDRED  ELEVEN  OF  THIS  ARTICLE.  A
 police/fire member, a New York city police/fire revised plan  member,  a
 New  York  city  uniformed  correction/sanitation revised plan member or
 investigator revised  plan  member  may  elect  to  receive  [his]  SUCH
 MEMBER'S  vested  benefit  commencing  at  early  retirement  age or age
 fifty-five. If the vested benefit commences before early retirement age,
 the benefit shall be reduced by one-fifteenth for  each  year,  if  any,
 that the member's early retirement age is in excess of age sixty, and by
 one-thirtieth  for  each  additional  year  by  which the vested benefit
 S. 4667                             3
 
 commences prior to early retirement  age.  If  such  vested  benefit  is
 deferred  until  after  such member's normal retirement age, the benefit
 shall be computed and subject to annual escalation in the same manner as
 provided  for  an  early retirement benefit pursuant to subdivision c of
 section five hundred five of this article.
   § 4. Notwithstanding any provision of law, rule or regulation  to  the
 contrary, any effect on a participating employer's contribution rate due
 to the provisions of this act shall not apply to the calculation of such
 participating  employer's contribution rate for the purposes of subdivi-
 sion c of section 500 of the retirement and social security law.
   § 5. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would eliminate the offset equal to
 50%  of  the  primary  social  security  benefit  in  the service, early
 service, and vested retirement benefits for certain  Tier  3  Sanitation
 members of NYCERS.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                     Year      NYCERS
                     2026        23.4
                     2027        22.1
                     2028        23.6
                     2029        25.2
                     2030        26.7
                     2031        28.1
                     2032        29.4
                     2033        30.9
                     2034        32.4
                     2035        33.9
                     2036        35.3
                     2037        36.7
                     2038        38.1
                     2039        39.5
                     2040        40.9
                     2041        42.4
                     2042        44.0
                     2043        37.1
                     2044        38.6
                     2045        40.3
                     2046        41.9
                     2047        43.6
                     2048        45.3
                     2049        47.0
                     2050        48.8
   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 2.77%).
 
   The entire increase in employer contributions will be allocated to New
 York City.
 
          INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
                    as of June 30, 2024 ($ in Millions)
 S. 4667                             4
 
              Present Value (PV)                 NYCERS
              (1) PV of Employer Contributions:  254.2
              (2) PV of Employee Contributions:    0.0
              Total PV of Benefits (1) + (2):    254.2

   UNFUNDED  ACCRUED  LIABILITY  (UAL): Actuarial Accrued Liabilities are
 the portion of the Present Value of Benefits allocated to past  service.
 Changes  in  UAL  for  active  members  were amortized over the expected
 remaining  working  lifetime  of  those  impacted  using  level   dollar
 payments.    UAL  attributable to inactive members was recognized in the
 first year.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                 NYCERS
              Increase (Decrease) in UAL:        82.0 M
              Number of Payments:                  17
              Amortization Payment:              8.4 M
              Additional One-time Payment:       2.6 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:                    5,074
              - Average Age:                     39.9
              - Average Service:                 6.5
              - Average Salary:                  94,500
              Term. Vested Members
              - Number Count:                    99
              - Average Age:                     43.6
 
   IMPACT ON MEMBER BENEFITS: Currently, Tier 3  normal  service  retire-
 ment, early service retirement, and vested retirement benefits for Sani-
 tation members in 22-Year Plans are subject to an offset equal to 50% of
 the  primary social security benefit as defined in Retirement and Social
 Security Law (RSSL) Section 511 beginning at age 62.
   Under the proposed legislation, the offset for such benefits would  be
 eliminated resulting in an increase in benefits.
   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:
   *  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
 S. 4667                             5
 
 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 RSSL Section 500(c).
   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  2025-10  dated  February
 10, 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.