NY State Senate Bill 2025-S6702

Senate Bill S6702

2025-2026 Legislative Session

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Current Bill Status - In Senate Committee Finance 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 02, 2025	reported and committed to finance
Mar 20, 2025	referred to civil service and pensions

Votes

- Apr 2, 2025 - Civil Service And Pensions Committee Vote
  S6702
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Civil Service And Pensions Committee Vote: Apr 2, 2025
      
      aye (7)
      
      Cooney
      
      Gonzalez
      
      Jackson
      
      Mattera
      
      Parker
      
      Scarcella-Spanton
      
      Weik

2025-S6702 (ACTIVE) - Details

See Assembly Version of this Bill:: A7359
Current Committee:: Senate Finance
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§603 & 604-g, R & SS L
Versions Introduced in 2023-2024 Legislative Session:: S7498, A7572

2025-S6702 (ACTIVE) - Summary

Relates to eligibility for participants in the automotive 25 year/age 50 pension plan with more than 30 years of credited service who remain in active service after age 62 to receive a service retirement benefit equivalent to the standard service retirement benefit received by Tier IV members with the same age and service.

2025-S6702 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6702

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
eligibility for participants in the automotive 25 year/age 50 pension
plan with more than 30 years of credited service who remain in active
service after age 62 to receive a service retirement benefit equivalent
to the standard service retirement benefit received by Tier IV members
with the same age and service

 
PURPOSE:

This bill will permit members of the Automotive 25 year/age 50 retire-
ment program with more than 30 years of credit to retire with the same
benefits that they would have been entitled to if they had not elected
to become members of that program and had simply remained in Tier 4.

 
SUMMARY OF PROVISIONS:

Sections 1 and 2 amend subdivision a of Section 603 of the Retirement

and Social Security Law.

Section 3 amends paragraph 3 of subdivision b of Section 604-G of the
Retirement and Social Security Law to provide that a participant who has
more than 30 years of credited service and has remained active after
reaching 62 years of age may elect to retire with the same benefits that
they would have been entitled to if they had not elected to become
members of that program and had simply remained in Tier 4.

Section 4 is the effective date.

 
JUSTIFICATION:

The 25-year/age 50 retirement program for Automotive members was enacted
by Chapter 414 of the Laws of 2002 (see Retirement and Social Security
Law Section 604-g). It is a special early retirement program for New
York City employees in certain automotive mechanic and related titles,
enabling those employees to retire after they have attained at least 25
years of credited service and are at least 50 years of age. The automo-
tive 25/50 program requires that covered employees make additional
member contributions in excess of those required of Tier 4 members.

The Automotive 25/50 program provides that the retirement benefit of
covered members shall be 50% of final average salary for 25 years of
credited service and an additional 2% of final average service for each
additional year of credited service up to a maximum of 30 years.

Notwithstanding the early retirement option provided by the Automotive
25/50 program, a number of covered employees have chosen to continue
working in covered employment well beyond their 50th birthday and have
accrued more than 30 years of service. Ironically, these employees are
disadvantaged by the Automotive 25/50 service program when their age and
years of credited service reaches a certain level.  The retirement
allowance for participants in the standard Tier 4 program who have at
least 25 years of credited service is 2% of final average salary for
each year of service up to a maximum of 30 years, and an additional 1.5%
of final average salary for years of credited service beyond 30 years
(see Retirement and Social Security Law Sections 603 and 604). Thus, a
Tier 4 member with more than 30 years of credited service is entitled to
a retirement benefit calculated at a higher rate than the rate applica-
ble to an Automotive 25/50 program member. And yet, the Tier 4 member
has not had to pay the additional member contributions required of the
Automotive 25/50 member.

This act will enable members of the Automotive 25/50 program to revert
to the standard Tier 4 formulation in the event they attain more than 30
years of credited service and have reached the retirement age provided
for in Tier 4. In these circumstances, the member can accrue the addi-
tions to retirement allowance for service beyond 30 years that are
available to members in the standard Tier 4 program. There is no
rational basis for disadvantaging these employees who have decided not
to avail themselves of the early retirement option afforded by the 25/50
Automotive program and have continued to render service to New York
City. This law remedies a structural inequity that the drafters of the
25/50 Automotive program did not foresee and certainly did not intend.

 
LEGISLATIVE HISTORY:

2023-2024: S.7498-A - Vetoed Memo 101/A.7572-A - Vetoed Memo 101

 
STATE AND LOCAL FISCAL IMPLICATIONS:

See fiscal note.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the amendments to
subdivision a of section 603 of the retirement and social security law
made by section one of this act shall be subject to the expiration and
reversion of such subdivision pursuant to subdivision (b) of section 13
of chapter 683 of the laws of 2003, as amended, when upon such date the
provisions of section two of this act shall take effect.

2025-S6702 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6702
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 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
   eligibility  for participants in the automotive 25 year/age 50 pension
   plan with more than 30 years of credited service who remain in  active
   service  after  age  62 to receive a service retirement benefit equiv-
   alent to the standard service retirement benefit received by  Tier  IV
   members with the same age and service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision a of section 603 of the retirement  and  social
 security  law,  as  amended by section 3 of part EE of chapter 55 of the
 laws of 2024, is amended to read as follows:
   a. The service retirement benefit specified  in  section  six  hundred
 four  of this article shall be payable to members who have met the mini-
 mum service requirements upon retirement and attainment  of  age  sixty-
 two,  other  than  members who are eligible for early service retirement
 pursuant to subdivision c of section six hundred four-b of this article,
 subdivision c of section six hundred four-c of this article, subdivision
 d of section six hundred  four-d  of  this  article,  subdivision  c  of
 section six hundred four-e of this article, subdivision c of section six
 hundred  four-f  of  this article, [subdivision c of section six hundred
 four-g of this article,] subdivision c of section six hundred four-h  of
 this  article  subdivision c of section six hundred four-i of this arti-
 cle, or subdivision c of section six hundred  four-j  of  this  article,
 provided,  however, a member of a teachers' retirement system or the New
 York state and local employees' retirement system who first  joins  such
 system  before  January  first,  two  thousand  ten or a member who is a
 uniformed court officer or peace officer employed by the  unified  court
 system  who  first  becomes  a  member  of  the New York state and local
 employees' retirement system before April first, two thousand twelve may
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10045-02-5

 S. 6702                             2
 
 retire without reduction of their retirement benefit upon attainment  of
 at  least fifty-five years of age and completion of thirty or more years
 of service, provided, however, that a uniformed court officer  or  peace
 officer  employed by the unified court system who first becomes a member
 of the New York state and local employees' retirement system on or after
 January first, two thousand ten and retires without reduction  of  their
 retirement  benefit  upon attainment of at least fifty-five years of age
 and completion of thirty or more  years  of  service  pursuant  to  this
 section  shall  be required to make the member contributions required by
 subdivision f of section six hundred thirteen of this  article  for  all
 years  of  credited  and  creditable  service, provided further that the
 preceding provisions of this subdivision shall not apply to a  New  York
 city revised plan member.
   § 2. Subdivision a of section 603 of the retirement and social securi-
 ty  law, as amended by section 3-a of chapter 19 of the laws of 2008, is
 amended to read as follows:
   a. The service retirement benefit specified  in  section  six  hundred
 four  of this article shall be payable to members who have met the mini-
 mum service requirements upon retirement and attainment  of  age  sixty-
 two,  other  than  members who are eligible for early service retirement
 pursuant to subdivision c of section six hundred four-b of this article,
 subdivision c of section six hundred four-c of this article, subdivision
 d of section six hundred  four-d  of  this  article,  subdivision  c  of
 section six hundred four-e of this article, subdivision c of section six
 hundred  four-f  of  this article, [subdivision c of section six hundred
 four-g of this article,] subdivision c of section six hundred four-h  of
 this  article  or  subdivision  c  of section six hundred four-i of this
 article provided, however, a member who is a peace officer  employed  by
 the unified court system or a member of a teachers' retirement system or
 the  New  York  state  and local employees' retirement system may retire
 without reduction of [his or her] THEIR retirement benefit upon  attain-
 ment  of  at  least  fifty-five years of age and completion of thirty or
 more years of service.
   § 3. Paragraph 3 of subdivision b of section 604-g of  the  retirement
 and social security law, as added by chapter 414 of the laws of 2002, is
 amended to read as follows:
   3.  Any election to be a participant in the twenty-five year/age fifty
 retirement program shall be irrevocable; PROVIDED THAT A PARTICIPANT WHO
 HAS MORE THAN THIRTY YEARS OF CREDITED SERVICE AND  WHO HAS REMAINED  IN
 ACTIVE  SERVICE  AFTER  REACHING  SIXTY-TWO  YEARS  OF  AGE MAY ELECT TO
 RECEIVE A SERVICE  RETIREMENT  BENEFIT  CALCULATED  IN  ACCORDANCE  WITH
 SUBDIVISION  B  OF SECTION SIX HUNDRED FOUR OF THIS ARTICLE IN LIEU OF A
 SERVICE RETIREMENT BENEFIT CALCULATED IN ACCORDANCE WITH  SUBDIVISION  C
 OF THIS SECTION.
   §  4. This act shall take effect immediately; provided that the amend-
 ments to subdivision a of section 603 of the retirement and social secu-
 rity law made by section one of this act shall be subject to the expira-
 tion and reversion of such subdivision pursuant to  subdivision  (b)  of
 section  13  of  chapter  683 of the laws of 2003, as amended, when upon
 such date the provisions of section two of this act shall take effect.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would permit certain Tier 4 members
 in NYCERS and BERS Automotive 25-Year/Age 50 Plans (Auto  25-Year  Plan)
 with 30 or more years of service to receive a service retirement benefit
 calculated under the Tier 4 basic plan, if greater.
 S. 6702                             3

          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
          by Fiscal Year for the first 25 years ($ in Thousands)
           Year      NYCERS            BERS        TOTAL
           2026      1,552             18          1,570
           2027      1,554             18          1,572
           2028      1,556             18          1,574
           2029      1,558             18          1,576
           2030      1,559             18          1,577
           2031      1,560             18          1,578
           2032      1,559             1           1,560
           2033      1,557             1           1,558
           2034      1,553             0           1,553
           2035      213               0           213
           2036      208               0           208
           2037      202               0           202
           2038      195               0           195
           2039      187               0           187
           2040      177               0           177
           2041      168               0           168
           2042      158               0           158
           2043      149               0           149
           2044      138               0           138
           2045      128               0           128
           2046      117               0           117
           2047      106               0           106
           2048      95                0           95
           2049      85                0           85
           2050      74                0           74
    Employer Contribution impact beyond Fiscal Year 2050 is not shown.
 
   The initial increase in employer contributions of $1.6 million is
 estimated to be $1.5 million for New York City and $0.1 million for the
 other obligors of NYCRS.
   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        BERS
 (1) PV of Employer Contributions:     10,659        85
 (2) PV of Employee Contributions:     0             0
 Total PV of Benefits (1) + (2):       10,659        85
 
   UNFUNDED  ACCRUED  LIABILITY  (UAL): Actuarial Accrued Liabilities are
 the portion of the Present Value of Benefits allocated to past  service.
 Changes  in UAL members were amortized over the expected remaining work-
 ing lifetime of those impacted using level dollar payments.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                               NYCERS         BERS
 Increase (Decrease) in UAL:   8,412 K        79 K
 Number of Payments:           9              6
 Amortization Payment:         1,336 K        17 K
 S. 6702                             4
 
   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         BERS
 Active Members
 - Number Count:               438            3
 - Average Age:                54.0           54.3
 - Average Service:            17.5           21.3
 - Average Salary:             127,700        125,500
 
   IMPACT ON MEMBER BENEFITS: Currently, Tier 4 Auto 25-Year Plan members
 who  never previously participated in either the 55/25 plan or 57/5 plan
 enacted by Chapter 96 of the Laws of 1995 and who retire with 30 or more
 years of service, receive a service retirement benefit that is equal  to
 60% of Final Average Salary (FAS).
   Under  the  proposed  legislation,  the service retirement benefit for
 such members with 30 or more years of service would be calculated as the
 greater of the above, and:
      * For those at least age 62, 60% of FAS plus 1.5% of FAS  for  each
      year of service beyond 30 years.
      * For those age 55 through 61, 60% of FAS plus 1.5% of FAS for each
      year of service beyond 30 years, multiplied by the applicable early
      retirement age reduction factor.
   The  service  retirement benefits for Tier 6 Auto 25-Year Plan members
 and Tier 4 members with previous Tier 4 55/25 plan or 57/5 plan  partic-
 ipation are assumed to remain unchanged.
   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 2025-33 dated March 19,
 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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