Grants service credit to members of the uniformed correction force of the New York city department of correction covered by provisions of law for over 25 years.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6865A
SPONSOR: Pheffer Amato TITLE OF BILL:
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
PURPOSE OR GENERAL IDEA OF BILL:
Grants service credit to members of the uniformed correction force of
the NYC Department of Correction covered by provisions of law for over
25 years.
SUMMARY OF PROVISIONS:
This bill amends subdivision d of section 504 of the retirement and
social security law as amended by chapter 18 of the laws of 2012 to add
the language "plus one-sixtieth of final average salary times years of
credited service in excess of twenty-five".
JUSTIFICATION:
This legislation is designed to provide New York City Correction offi-
cers with more than 25 years of service with continued benefits at one-
sixtieth of their final average salary. Without this legislative remedy,
the most senior correction personnel would be unjustly penalized for
continuing to serve the public after more than 25 years of service. This
proposal would allow for those dedicated individuals to continue to
accrue retirement credits for their service.
PRIOR LEGISLATIVE HISTORY:
2021: S6986A - Referred to Civil Service and Pensions
2020: S5435A - Referred to Civil Service and Pensions
2019: S5435 - Referred to Civil Service and Pensions
2018: S6133A - Referred to Civil Service and Pensions
2017: S.6133 - Referred to Civil Service and Pensions
2013-4: S.5544 - Referred to Civil Service and Pensions
FISCAL IMPLICATIONS:
Please see bill.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6865--A
2023-2024 Regular Sessions
IN ASSEMBLY
May 8, 2023
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees -- recommitted to the Committee on
Governmental Employees in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
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:
1 Section 1. Subdivision d of section 504 of the retirement and social
2 security law, as amended by chapter 18 of the laws of 2012, is amended
3 to read as follows:
4 d. The early service retirement benefit for general members in the
5 uniformed correction force of the New York city department of
6 correction, who are not entitled to an early service retirement benefit
7 pursuant to subdivision c of section five hundred four-a of this article
8 or subdivision c of section five hundred four-b of this article or
9 subdivision c of section five hundred four-d of this article, or for
10 general members in the uniformed personnel in institutions under the
11 jurisdiction of the department of corrections and community supervision,
12 as defined in subdivision i of section eighty-nine of this chapter,
13 shall be a pension equal to one-fiftieth of final average salary times
14 years of credited service at the completion of twenty-five years of
15 service, [but not in excess of fifty percent of final average salary]
16 plus one-sixtieth of final average salary times years of credited
17 service in excess of twenty-five, provided, however, that the provisions
18 of this section shall not apply to a New York city uniformed
19 correction/sanitation revised plan member.
20 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08667-03-4
A. 6865--A 2
SUMMARY: This proposed legislation would increase the service retire-
ment benefit for credited service exceeding 25 years for uniformed
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
2025 4,484
2026 14
2027 11
2028 7
2029 3
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
The entire increase in employer contributions will be allocated to New
York City.
INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
as of June 30, 2023 ($ in Thousands)
Present Value (PV) NYCERS
PV of Benefits: 4,081
PV of Employee Contributions: 0
PV of Employer Contributions: 4,081
Unfunded Accrued Liabilities: 4,034
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
NYCERS
Number of Payments: 1
Fiscal Year of Last Payment: 2025
Amortization Payment: 4,465 K
A. 6865--A 3
Unfunded Accrued Liability increases were amortized over the expected
remaining working lifetime of those impacted by the benefit changes
using level dollar payments.
CENSUS DATA: The estimates presented herein are based on preliminary
census data collected as of June 30, 2023. The census data for the
impacted population is summarized below.
NYCERS
Active Members
- Number Count: 19
- Average Age: 60.6
- Average Service: 35.0
- Average Salary: 164,900
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 RSSL 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 credited service, or fraction
thereof, exceeding 25 years (if any).
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).
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 2024-36 dated March 25,
2024 was prepared by the Chief Actuary for the New York City Retirement
Systems and Pension Funds. This estimate is intended for use only during
the 2024 Legislative Session.
