S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6435
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 13, 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
   retirement  benefits  for  general members in the uniformed correction
   force of the New York city department of correction

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision d of section 504 of the retirement and social
 security law, as amended by chapter 18 of the laws of 2012,  is  amended
 to read as follows:
   d.  The  early  service  retirement benefit for general members in the
 uniformed  correction  force  of  the  New  York  city   department   of
 correction,  who are not entitled to an early service retirement benefit
 pursuant to subdivision c of section five hundred four-a of this article
 or subdivision c of section five  hundred  four-b  of  this  article  or
 subdivision  c  of  section  five hundred four-d of this article, or for
 general members in the uniformed personnel  in  institutions  under  the
 jurisdiction of the department of corrections and community supervision,
 as  defined  in  subdivision  i  of section eighty-nine of this chapter,
 shall be a pension equal to one-fiftieth of final average  salary  times
 years  of  credited  service  at  the completion of twenty-five years of
 service, [but not in excess of fifty percent of  final  average  salary]
 PLUS  ONE-SIXTIETH  OF  FINAL  AVERAGE  SALARY  TIMES  YEARS OF CREDITED
 SERVICE IN EXCESS OF TWENTY-FIVE, provided, however, that the provisions
 of  this  section  shall  not  apply  to  a  New  York  city   uniformed
 correction/sanitation revised plan member.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This proposed legislation would increase the service retire-
 ment benefit for credited  service  exceeding  25  years  for  uniformed

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04085-02-5
 S. 6435                             2
              

 
 employees  of  the  New  York  City  Department of Correction who joined
 NYCERS prior to December 19, 1990 (Tier 3 CO-25 Plan Members).
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
          by Fiscal Year for the first 25 years ($ in Thousands)
                     Year      NYCERS
                     2026        4,635
                     2027        12
                     2028        8
                     2029        4
                     2030        2
                     2031        1
                     2032        1
                     2033        0
                     2034        0
                     2035        0
                     2036        0
                     2037        0
                     2038        0
                     2039        0
                     2040        0
                     2041        0
                     2042        0
                     2043        0
                     2044        0
                     2045        0
                     2046        0
                     2047        0
                     2048        0
                     2049        0
                     2050        0
 
 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 Thousands)
              Present Value (PV)                 NYCERS
              (1) PV of Employer Contributions:  4,211
              (2) PV of Employee Contributions:  0
              Total PV of Benefits (1) + (2):    4,211
 
   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
 S. 6435                             3
 
                Increase (Decrease) in UAL:        4,174 K
                Number of Payments:                1
                Amortization Payment:              4,619 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:                    19
                - Average Age:                     61.8
                - Average Service:                 34.6
                - Average Salary:                  169,100
 
   IMPACT  ON  MEMBER BENEFITS: Currently, upon reaching 25 or more years
 of credited service, CO-25  Plan  Members  are  entitled  to  a  service
 retirement pension benefit equal to 50% of Final Average Salary (FAS).
   Under  the  proposed  legislation,  CO-25  Plan Members who retire for
 service under Retirement and Social Security Law  section  504(d)  after
 the  effective date of the proposed legislation with 25 or more years of
 credited service would be equal to 50% of FAS for the first 25 years  of
 credited service, plus 1/60th of FAS for each additional year of credit-
 ed service, or fraction thereof, exceeding 25 years.
   ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
 calculated based on the Revised 2021 Actuarial Assumptions  and  Methods
 of the impacted retirement systems.
   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 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 2025-22 dated February
 27, 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.