Modifies the retirement program for Triborough bridge and tunnel members to a twenty-year retirement program; clarifies the statutory peace officer designation of certain employees of the Triborough bridge and tunnel authority.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6571
SPONSOR: Pheffer Amato TITLE OF BILL:
An act to amend the retirement and social security law, in relation to
modifying the retirement program for Triborough bridge and tunnel
members; to amend the criminal procedure law, in relation to clarifying
the statutory peace officer designation of certain employees of the
Triborough bridge and tunnel authority; and providing for the repeal of
certain provisions
PURPOSE OR GENERAL IDEA OF BILL:
To eliminate the requirement to reach 50 years of age in the NYCERS
20/50 plans for Triborough Bridge and Tunnel Authority employees.
SUMMARY OF PROVISIONS:
Section one of this bill amends section 604-c of the Retirement and
Social Security Law to eliminate the age 50 qualifier in the 20 Year/Age
50 Retirement Plan for tier 4 and tier 6 members of the Triborough
Bridge and Tunnel Authority.
Section two of the bill amends subdivision 20 of section 2.10 of the
criminal procedure law, to designate the titles of captains, inspectors,
deputy chiefs, assistant chiefs, and chiefs as peace officers.
Section three of the bill provides for the effective date.
JUSTIFICATION:
This bill would remove the requirement that a Tier 4 or Tier 6 employee
of the Triborough Bridge and Tunnel Authority (TBTA), or MTA Bridges and
Tunnels, enrolled in NYCERS 20/50 plan reach 50 years of age before
becoming eligible to receive a full service retirement. This bill if
enacted would allow any Tier 4 or Tier 6 member to receive a full
pension after 20 years of service, regardless of age. Tier 4 members
with at least five years of service, currently able to receive a
reduced, vested benefit on the date they would have attained 20/50, will
be eligible for the vested benefit on the date they would have attained
20 years of service regardless of age. Tier 6 members with at least ten
years of service, currently able to receive a reduced, vested benefit at
age 63, would continue to be eligible for the vested benefit at age 63.
This bill will allow younger TBTA employees, who may reach their 20th
year of service well before their 50th birthday, to retire at an earlier
age and will thus lower the payroll obligations for the MTA. Addi-
tionally, allowing employees to retire upon their 20th year of service,
by which point Tier 4 members are no longer contributing anything to
their pensions out of gross wages, also has the potential for long-term
cost savings for the NYC Employees' Retirement System. These employees
generally retire at lower salaries and thus receive smaller pension
benefits than if they had remained employed until reaching age SO.
PRIOR LEGISLATIVE HISTORY:
2022: A10539-Refered to Governmental Employees
FISCAL IMPLICATIONS:
See bill
EFFECTIVE DATE:
Immediate
STATE OF NEW YORK
________________________________________________________________________
6571
2023-2024 Regular Sessions
IN ASSEMBLY
April 19, 2023
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
modifying the retirement program for Triborough bridge and tunnel
members; to amend the criminal procedure law, in relation to clarify-
ing the statutory peace officer designation of certain employees of
the Triborough bridge and tunnel authority; and providing for the
repeal of certain provisions
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 604-c of the retirement and social security law, as
2 added by chapter 472 of the laws of 1995, paragraph 2 of subdivision c
3 and paragraph 7-a of subdivision e as amended by chapter 693 of the laws
4 of 2003, paragraph 1 and subparagraph (ii) of paragraph 2 of subdivision
5 d as amended by chapter 18 of the laws of 2012, subparagraph (ii) of
6 paragraph 1 of subdivision d as amended by section 6 of part TT of chap-
7 ter 56 of the laws of 2022, paragraph 1 of subdivision e as amended by
8 chapter 661 of the laws of 2002, subparagraph (iv) of paragraph 3 of
9 subdivision e as added by chapter 365 of the laws of 1999, subparagraph
10 (i) of paragraph 8 of subdivision e as amended by chapter 448 of the
11 laws of 2018 and paragraph 9 of subdivision e as amended by chapter 664
12 of the laws of 1996, is amended to read as follows:
13 § 604-c. [Twenty-year/age fifty] Twenty-year retirement program for
14 Triborough bridge and tunnel members. a. Definitions. The following
15 words and phrases as used in this section shall have the following mean-
16 ings unless a different meaning is plainly required by the context.
17 1. "Triborough bridge and tunnel member" shall mean a member (as
18 defined in subdivision e of section six hundred one of this article) who
19 is employed by the Triborough bridge and tunnel authority as a bridge
20 and tunnel officer, sergeant, or lieutenant in a non-managerial posi-
21 tion.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08581-02-3
A. 6571 2
1 2. ["Twenty-year/age fifty] "Twenty-year retirement program" shall
2 mean all the terms and conditions of this section.
3 3. "Starting date of the [twenty-year/age fifty] twenty-year retire-
4 ment program" shall mean the date of enactment of the act which added
5 this section, as such date is certified pursuant to section forty-one of
6 the legislative law.
7 4. "Participant in the [twenty-year/age fifty] twenty-year retirement
8 program" shall mean any Triborough bridge and tunnel member who, under
9 the applicable provisions of subdivision b of this section, is entitled
10 to the rights, benefits and privileges and is subject to the obligations
11 of the [twenty-year/age fifty] twenty-year retirement program, as appli-
12 cable to him or her.
13 5. "Discontinued member" shall mean a participant in the [twenty-
14 year/age fifty] twenty-year retirement program who, while he or she was
15 a Triborough bridge and tunnel member, discontinued service as such a
16 member and has a right to a deferred vested benefit under subdivision d
17 of this section.
18 6. "Administrative code" shall mean the administrative code of the
19 city of New York.
20 b. Participation in [twenty-year/age fifty] twenty-year retirement
21 program. 1. Subject to the provisions of paragraph six of this subdivi-
22 sion, any person who is a Triborough bridge and tunnel member on the
23 starting date of the [twenty-year/age fifty] twenty-year retirement
24 program and who, as such a bridge and tunnel member or otherwise, last
25 became subject to the provisions of this article prior to such starting
26 date, may elect to become a participant in the [twenty-year/age fifty]
27 twenty-year retirement program by filing, within one hundred eighty days
28 after the starting date of the [twenty-year/age fifty] twenty-year
29 retirement program, a duly executed application for such participation
30 with the retirement system of which such person is a member, provided he
31 or she is such a bridge and tunnel member on the date such application
32 is filed.
33 2. Subject to the provisions of paragraph six of this subdivision, any
34 person who becomes a Triborough bridge and tunnel member after the
35 starting date of the [twenty-year/age fifty] twenty-year retirement
36 program and who, as such a bridge and tunnel member or otherwise, last
37 became subject to the provisions of this article prior to such starting
38 date, may elect to become a participant in the [twenty-year/age fifty]
39 twenty-year retirement program by filing, within one hundred eighty days
40 after becoming such a bridge and tunnel member, a duly executed applica-
41 tion for such participation with the retirement system of which such
42 person is a member, provided he or she is such a bridge and tunnel
43 member on the date such application is filed.
44 3. Any election to be a participant in the [twenty-year/age fifty]
45 twenty-year retirement program shall be irrevocable.
46 4. Each Triborough bridge and tunnel member who becomes subject to the
47 provisions of this article on or after the starting date of the [twenty-
48 year/age fifty] twenty-year retirement program shall become a partic-
49 ipant in the [twenty-year/age fifty] twenty-year retirement program on
50 the date he or she becomes such a bridge and tunnel member.
51 5. Where any participant in the [twenty-year/age fifty] twenty-year
52 retirement program shall cease to be employed by the Triborough bridge
53 and tunnel authority as a bridge and tunnel member, he or she shall
54 cease to be such a participant and, during any period in which such
55 person is not so employed, he or she shall not be a participant in the
A. 6571 3
1 [twenty-year/age fifty] twenty-year retirement program and shall not be
2 eligible for the benefits of subdivision c of this section.
3 6. Where any participant in the [twenty-year/age fifty] twenty-year
4 retirement program terminates service as a Triborough bridge and tunnel
5 member and returns to such service as a Triborough bridge and tunnel
6 member at a later date, he or she shall again become such a participant
7 on that date.
8 c. Service retirement benefits. 1. A participant in the [twenty-
9 year/age fifty] twenty-year retirement program:
10 (i) who has completed twenty or more years of credited service; and
11 (ii) [who has attained age fifty; and
12 (iii)] who has paid, before the effective date of retirement, all
13 additional member contributions and interest (if any) required by subdi-
14 vision e of this section; and
15 [(iv)] (iii) who files with the retirement system of which he or she
16 is a member an application for service retirement setting forth at what
17 time he or she desires to be retired; and
18 [(v)] (iv) who shall be a participant in the [twenty-year/age fifty]
19 twenty-year retirement program at the time so specified for his or her
20 retirement; shall be retired pursuant to the provisions of this section
21 affording early service retirement.
22 2. (i) Notwithstanding any other provision of law to the contrary, the
23 early service retirement benefit for participants in the [twenty-
24 year/age fifty] twenty-year retirement program who retire pursuant to
25 paragraph one of this subdivision shall be a pension consisting of:
26 (A) an amount, on account of the required minimum period of service,
27 equal to one-half of his or her final average salary; plus
28 (B) an amount of credited service, or fraction thereof, beyond such
29 required minimum period of service equal to one and one-half percent of
30 his or her final average salary.
31 (ii) The maximum pension computed without optional modification paya-
32 ble pursuant to subparagraph (i) of this paragraph shall equal that
33 payable upon completion of thirty years of service.
34 d. Vesting. 1. A participant in the [twenty-year/age fifty] twenty-
35 year retirement program [who] shall be entitled to receive a deferred
36 vested benefit as provided in this subdivision if such participant:
37 (i) discontinues service as a Triborough bridge and tunnel member,
38 other than by death or retirement; and
39 (ii) prior to such discontinuance, completed five but less than twenty
40 years of credited service; and
41 (iii) has paid, prior to such discontinuance, all additional member
42 contributions and interest (if any) required by subdivision e of this
43 section; and
44 (iv) does not withdraw in whole or in part his or her accumulated
45 member contributions pursuant to section six hundred thirteen of this
46 article unless such participant thereafter returns to public service and
47 repays the amounts so withdrawn, together with interest, pursuant to
48 such section six hundred thirteen[; shall be entitled to receive a
49 deferred vested benefit as provided in this subdivision].
50 2. (i) Upon such discontinuance under the conditions and in compliance
51 with the provisions of paragraph one of this subdivision, such deferred
52 vested benefit shall vest automatically.
53 (ii) In the case of a participant who is not a New York city revised
54 plan member, such vested benefit shall become payable on the earliest
55 date on which such discontinued member could have retired for service if
56 such discontinuance had not occurred or, in the case of a participant
A. 6571 4
1 who is a New York city revised plan member, such vested benefit shall
2 become payable at age sixty-three.
3 3. Such deferred vested benefit shall be a pension consisting of an
4 amount equal to two and one-half percent of such discontinued member's
5 final average salary, multiplied by the number of years of credited
6 service.
7 e. Additional member contributions. 1. In addition to the member
8 contributions required by section six hundred thirteen of this article,
9 each participant in the [twenty-year/age fifty] twenty-year retirement
10 program in the rank of bridge and tunnel officer shall contribute to the
11 retirement system of which he or she is a member (subject to the appli-
12 cable provisions of subdivision d of section six hundred thirteen of
13 this article) an additional five and fifty one-hundredths percent of his
14 or her compensation and each participant in the [twenty-year/age fifty]
15 twenty-year retirement program in the rank of sergeant or lieutenant
16 shall contribute to the retirement system an additional six percent of
17 his or her compensation earned from all allowable service as a Tribor-
18 ough bridge and tunnel member rendered on and after the date which is
19 one hundred eighty days prior to the starting date of the [twenty-
20 year/age fifty] twenty-year retirement program. A participant in the
21 [twenty-year/age fifty] twenty-year retirement program shall contribute
22 additional member contributions until the later of (i) the date as of
23 which he or she has twenty years of credited service as a bridge and
24 tunnel officer, or (ii) the third anniversary of the date that he or she
25 last became a participant in the [twenty-year/age fifty] twenty-year
26 retirement program.
27 2. Commencing with the first full payroll period after each person
28 becomes a participant in the [twenty-year/age fifty] twenty-year retire-
29 ment program, additional member contributions at the rate specified in
30 paragraph one of this subdivision shall be deducted (subject to the
31 applicable provisions of subdivision d of section six hundred thirteen
32 of this article) from the compensation of such participant on each and
33 every payroll of such participant for each and every payroll period.
34 3. (i) Subject to the provisions of subparagraph (ii) of this para-
35 graph, where any additional member contributions required by paragraph
36 one of this subdivision are not paid by deductions from a participant's
37 compensation pursuant to paragraph two of this subdivision:
38 (A) that participant shall be charged with a contribution deficiency
39 consisting of such unpaid amounts, together with interest thereon at the
40 rate of five percent per annum, compounded annually; and
41 (B) such interest on each amount of undeducted contributions shall
42 accrue from the end of the payroll period for which such amount would
43 have been deducted from compensation if he or she had been a participant
44 at the beginning of that payroll period, until such amount is paid to
45 the retirement system.
46 (ii) Except as provided in subparagraph (iii) of this paragraph, no
47 interest shall be due on any such unpaid additional contributions which
48 are not attributable to the period prior to the first full payroll peri-
49 od referred to in paragraph two of this subdivision.
50 (iii) Should any person who, pursuant to paragraph eight of this
51 subdivision, has withdrawn any additional member contributions (and any
52 interest paid thereon) again become a participant in the [twenty-
53 year/age fifty] twenty-year retirement program pursuant to paragraph six
54 of subdivision b of this section, an appropriate amount shall be
55 included in such participant's contribution deficiency (including inter-
A. 6571 5
1 est thereon as calculated pursuant to subparagraph (i) of this para-
2 graph) as if such additional contributions had never been made.
3 (iv) Notwithstanding any other provisions of this paragraph, no
4 participant shall be charged interest for any period prior to March
5 twenty-fifth, nineteen hundred ninety-eight with respect to any contrib-
6 utions owed with respect to any payroll period beginning prior to such
7 date.
8 4. The head of a retirement system which includes participants in the
9 [twenty-year/age fifty] twenty-year retirement program in its membership
10 may, consistent with the provisions of this subdivision, promulgate
11 regulations for the payment of such additional member contributions, and
12 any interest thereon, by such participants (including the deduction of
13 such contributions, and any interest thereon, from the participant's
14 compensation).
15 5. Where a contribution deficiency chargeable to a participant pursu-
16 ant to paragraph three of this subdivision has not been paid in full
17 before the effective date of retirement, that participant shall not be
18 eligible to retire pursuant to subdivision c of this section.
19 6. Where a contribution deficiency chargeable to a participant pursu-
20 ant to paragraph three of this subdivision has not been paid in full
21 before the date of discontinuance of service, that participant shall not
22 be entitled to a deferred vested benefit pursuant to subdivision d of
23 this section.
24 7. Where a participant has not paid in full any contribution deficien-
25 cy chargeable to him or her pursuant to paragraph three of this subdivi-
26 sion, and a benefit, other than a refund of member contributions pursu-
27 ant to section six hundred thirteen of this article or a refund of
28 additional member contributions pursuant to paragraph eight of this
29 subdivision, becomes payable under this article to the participant or to
30 his or her designated beneficiary or estate, the actuarial equivalent of
31 any such unpaid amount shall be deducted from the benefit otherwise
32 payable.
33 7-a. Notwithstanding paragraph six or seven of this subdivision, where
34 a deficiency chargeable to a participant pursuant to paragraph three of
35 this subdivision has not been paid in full while the participant is a
36 Triborough bridge and tunnel member and such participant retires prior
37 to July first, two thousand eleven, such participant may elect to be
38 covered by this paragraph. Such participant shall be entitled to the
39 benefits provided in subdivision c of this section provided that partic-
40 ipant authorizes the retirement system to deduct from such benefits an
41 amount which will result in the deficiency, plus associated interest to
42 date of final payment, being paid in full no later than July first, two
43 thousand eleven or such earlier date as agreed to by the participant.
44 Such amount will be deducted in equal installments on a monthly basis.
45 Nothing in this paragraph shall prevent the participant from making a
46 partial payment of the amount of the deficiency at the time of retire-
47 ment so as to reduce the monthly payment nor to make a lump sum payment
48 equal to the amount of the total unpaid balance at any time during the
49 period of repayment.
50 8. (i) Such additional member contributions (and any interest thereon)
51 shall be paid into the contingent reserve fund of the retirement system
52 of which the participant is a member and shall not for any purpose be
53 deemed to be member contributions or accumulated contributions of a
54 member under section six hundred thirteen of this article or otherwise
55 while he or she is a participant in the [twenty-year/age fifty] twenty-
56 year retirement program or otherwise, except that, a surplus of such
A. 6571 6
1 additional member contributions that are paid into the retirement
2 system's contingent reserve fund may be used for the sole purpose of
3 offsetting a deficit of basic member contributions.
4 (ii) Should a participant in the [twenty-year/age fifty] twenty-year
5 retirement program who has rendered less than fifteen years of allowable
6 service as a Triborough bridge and tunnel member cease to hold a posi-
7 tion as a Triborough bridge and tunnel member for any reason whatsoever,
8 his or her accumulated additional member contributions made pursuant to
9 this subdivision (together with any interest thereon paid to the retire-
10 ment system) may be withdrawn by him or her pursuant to procedures
11 promulgated in regulations of the board of trustees of the retirement
12 system, together with interest thereon at the rate of five percent per
13 annum, compounded annually.
14 (iii) Except as provided in subparagraph (ii) of this paragraph, no
15 member, while he or she is a participant or otherwise, shall have a
16 right to withdraw such additional member contributions or any interest
17 thereon from the retirement system.
18 9. A member who has made the additional contributions specified by
19 this subdivision may borrow a portion of such contributions, pursuant to
20 the provisions of section six hundred thirteen-b of this article.
21 § 2. Subdivision 20 of section 2.10 of the criminal procedure law, as
22 added by chapter 843 of the laws of 1980, is amended to read as follows:
23 20. Bridge and tunnel officers, sergeants [and], lieutenants,
24 captains, inspectors, deputy chiefs, assistant chiefs, and chiefs of the
25 Triborough bridge and tunnel authority.
26 § 3. This act shall take effect immediately; provided, however, that:
27 (a) section one of this act shall take effect on the one hundred twen-
28 tieth day after it shall have become a law, provided that the Triborough
29 bridge and tunnel authority has elected prior to such effective date to
30 provide its employees the retirement incentive authorized by this act by
31 resolution of its governing body specifying which titles and/or ranks
32 are covered by such election as amongst those titles and/or ranks
33 already covered by section 604-c of the retirement and social security
34 law; provided, however, if the Triborough bridge and tunnel authority
35 shall not elect by resolution to provide its employees the retirement
36 incentive authorized by this act during the time period required by this
37 subdivision, section one of this act shall be deemed repealed; and
38 (b) the Triborough bridge and tunnel authority shall notify the legis-
39 lative bill drafting commission on whether it has elected by resolution
40 to provide its employees the retirement incentive authorized by this act
41 within the time period required by subdivision (a) of this section in
42 order that the commission may maintain an accurate and timely effective
43 data base of the official text of the laws of the state of New York in
44 furtherance of effectuating the provisions of section 44 of the legisla-
45 tive law and section 70-b of the public officers law.
46 FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY OF BILL: This proposed legislation, as it relates to Tier 4
and Tier 6 members of the New York City Employees' Retirement System
(NYCERS) who are members of the respective TBTA 20/50 Plans, would amend
Section 604-c of the Retirement and Social Security Law (RSSL) to remove
age 50 as an eligibility requirement for service retirement.
Effective Date: Upon enactment, provided, however, that it shall
become effective on the 120th day after enactment in the event the TBTA
elects by resolution to provide to its employees the retirement incen-
tive authorized by the bill within such 120-day period.
A. 6571 7
IMPACT ON BENEFITS: Currently, members of the Tier 4 and Tier 6 TBTA
20/50 Plans are eligible to receive a service retirement benefit upon
attaining 20 or more years of credited service and age 50. Tier 4
members who leave employment with at least five, but less than 20 years
of service, are eligible to receive a vested retirement benefit payable
on the date they would have attained 20 years of credited service and
age 50. Tier 6 members who leave employment with at least five, but less
than 20 years of credited service are eligible to receive a vested
retirement benefit payable at age 63.
Under the proposed legislation, if enacted, affected members of the
TBTA 20/50 Plans would be eligible to receive a service retirement bene-
fit upon attaining 20 years of credited service, without regard to age.
Tier 4 members who leave employment with at least five, but less than 20
years of credited service, would be eligible to receive a vested retire-
ment benefit payable on the date the member would have completed 20
years of credited service, without regard to age. Tier 6 members who
leave employment with at least five, but less than 20 years of credited
service would continue to be eligible to receive a vested retirement
benefit payable at age 63.
FINANCIAL IMPACT - PRESENT VALUES: Based on the anticipated group of
members benefiting from the change in the eligibility requirement and
the actuarial assumptions and methods described herein, the enactment of
this proposed legislation would increase the Present Value of Future
Benefits (PVFB) by approximately $5.6 million for TBTA.
Under the Entry Age Normal cost method used to determine the employer
contributions to NYCERS, there would be an increase in the Unfunded
Accrued Liability (UAL) of approximately $7.0 million offset by a
decrease in the Present Value of future employer Normal Cost of $1.4
million.
FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: The enactment of
this proposed legislation would result in an initial increase in annual
employer contributions for TBTA of approximately $1.7 million which is
the result of an increase in the Normal Cost in addition to the UAL
payment.
CENSUS DATA: The estimates presented herein are based on the census
data used in the June 30, 2022 actuarial valuation of NYCERS to deter-
mine the Preliminary Fiscal Year 2024 employer contributions.
The 92 NYCERS Tier 4 members as of June 30, 2022 who could potentially
benefit from the change in the eligibility requirement for retirement
had an average age of approximately 42.5 years, average service of
approximately 16.8 years, and an average salary of approximately
$115,400. As of June 30, 2022, there are no active members in the Tier 6
TBTA 20/50 Plan.
ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
been calculated based on the actuarial assumptions and methods in effect
for the Preliminary Fiscal Year 2024 employer contributions of NYCERS.
For the purposes of this Fiscal Note, it is assumed that the changes
would be reflected for the first time in the June 30, 2022 actuarial
valuation of NYCERS used to determine employer contributions for Fiscal
Year 2024.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the realization of the actuarial assumptions used, demograph-
ics of the impacted population and other factors such as investment,
contribution, and other risks. If actual experience deviates from actu-
arial assumptions, the actual costs could differ from those presented
herein.
A. 6571 8
Costs are also dependent on the actuarial methods used, and therefore
different actuarial methods could produce different results. Quantifying
these risks is beyond the scope of this Fiscal Note.
Not measured in this Fiscal Note are the following:
* The initial additional administrative costs of NYCERS and other New
York City agencies to implement the proposed legislation.
* The impact of this proposed legislation on Other Postemployment
Benefit (OPEB) costs.
* The amendment to include enumerated titles in the Criminal Proce-
dural law.
STATEMENT OF ACTUARIAL OPINION: I, Marek Tyszkiewicz, am the Chief
Actuary for, and independent of, the New York City Retirement Systems
and Pension Funds. I am an Associate of the Society of Actuaries and a
Member of the American Academy of Actuaries. I am a member of NYCERS but
do not believe it impairs my objectivity and I meet the Qualification
Standards of the American Academy of Actuaries to render the actuarial
opinion contained herein. To the best of my 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 2023-30 dated April 13,
2023 was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for use only during the
2023 Legislative Session.
