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A07681 Summary:

BILL NOA07681A
 
SAME ASSAME AS S07128-B
 
SPONSORPheffer Amato
 
COSPNSR
 
MLTSPNSR
 
Amd §209-fff, Gen Muni L
 
Relates to allowing certain members of the New York city fire department pension fund to receive a membership date in such fund attributable to service in the titles of police cadet program and police cadet program II in the New York city police department cadet program.
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A07681 Actions:

BILL NOA07681A
 
06/05/2023referred to governmental employees
01/03/2024referred to governmental employees
05/07/2024amend and recommit to governmental employees
05/07/2024print number 7681a
06/07/2024reference changed to ways and means
06/07/2024reported referred to rules
06/07/2024reported
06/07/2024rules report cal.610
06/07/2024substituted by s7128b
 S07128 AMEND=B GOUNARDES
 05/18/2023REFERRED TO CIVIL SERVICE AND PENSIONS
 06/02/2023AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
 06/02/2023PRINT NUMBER 7128A
 01/03/2024REFERRED TO CIVIL SERVICE AND PENSIONS
 05/07/2024AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
 05/07/2024PRINT NUMBER 7128B
 06/06/2024COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/06/2024ORDERED TO THIRD READING CAL.1839
 06/06/2024HOME RULE REQUEST
 06/06/2024PASSED SENATE
 06/06/2024DELIVERED TO ASSEMBLY
 06/06/2024referred to governmental employees
 06/07/2024substituted for a7681a
 06/07/2024ordered to third reading rules cal.610
 06/07/2024passed assembly
 06/07/2024returned to senate
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A07681 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7681A
 
SPONSOR: Pheffer Amato
  TITLE OF BILL: An act to amend the general municipal law, in relation to allowing certain members of the New York city fire department pension fund to receive a membership date in the New York city fire department pension fund attributable to service in the titles of police cadet program or police cadet program II in the New York city police department cadet program   PURPOSE OR GENERAL IDEA OF BILL: To allow NYC fire members to repurchase time served in the NYPD cadet program for tier reinstatement.   SUMMARY OF PROVISIONS: Section 1 of the bill amends section 209-fff of the General Municipal Law, as added by Chapter 431 of the laws of 2019, to extend the same rights afforded NYC police pension fund members to NYC fire department pension fund members. Section two sets the effective date.   JUSTIFICATION: In 2019 the legislature passed Chapter 431 to allow Tier 3 police offi- cers in New York City to purchase time served in the NYPD Cadet Corps for purposes of tier reinstatement. This was done to rectify a long- standing inequity for NYPD members who had served in the Cadet Corps prior to 2012 and were wrongfully denied the opportunity to join NYCERS. Many of these officers then wound up in a later tier, Tier 3, with a reduced retirement benefit when Governor Paterson vetoed the Tier 2 extender in 2009. With the passage of Chapter 431, these officers were able to repurchase their cadet service to reinstate to Tier 2 if they had joined the cadets prior to this veto. The skills and experience garnered in the cadet program also apply to other uniformed careers such as firefighting, and so many former cadets go on to join the FDNY instead of the NYPD. Tier 3 firefighters were never granted the opportunity to tier reinstate, however, despite being in the same cadet classes that were wrongfully told they could not join a public retirement system and thus later being subject to a later tier. This bill will create parity between the two professions so that both have the opportunity to tier reinstate to their initial dates of public service.   PRIOR LEGISLATIVE HISTORY: 2022: S8950 - Referred to Civil Service and Pensions 2021: A8172 - Referred to Assembly Governmental Employees 2020: S8620 - Referred to Senate Rules   FISCAL IMPLICATIONS: Please see bill   EFFECTIVE DATE: This act shall take effect immediately.
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A07681 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7681--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 5, 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 general  municipal  law,  in  relation  to  allowing
          certain  members  of the New York city fire department pension fund to
          receive a membership date in the New York city fire department pension
          fund attributable to service in the titles of police cadet program  or
          police  cadet  program II in the New York city police department cadet
          program
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section 209-fff of the general municipal law, as added by
     2  chapter 431 of the laws of 2019, is amended to read as follows:
     3    § 209-fff. Provisions relating to a membership date in  the  New  York
     4  city  police  pension fund or the fire department pension fund attribut-
     5  able to service in the titles of police cadet program and  police  cadet
     6  program  II  in  the  New  York city police department cadet program. 1.
     7  Notwithstanding any provision of law to the contrary, upon election, any
     8  member of the New York city police pension fund or  the  New  York  city
     9  fire  department  pension fund who is subject to article fourteen of the
    10  retirement and social security law, and who served in the New York  city
    11  police  department cadet program in the title of police cadet program or
    12  police cadet program II prior to April first, two thousand  twelve,  but
    13  did  not join the New York city employees' retirement system while serv-
    14  ing in either such title, may purchase credit for the period of  service
    15  in  such  titles in the New York city police department cadet program by
    16  paying into the New York city police pension fund or the New  York  city
    17  fire  department pension fund all member contributions plus interest, at
    18  a rate of five percent per annum, which would have been payable  to  the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10936-07-4

        A. 7681--A                          2
 
     1  New  York  city  employees' retirement system under any provision of law
     2  had such member joined the New York city employees' retirement system on
     3  the earliest date that [he or she] such  member  was  appointed  to  the
     4  title of police cadet program or police cadet program II in the New York
     5  city police department cadet program, provided such payment, for members
     6  of  the  New  York  city  police pension fund, is made within five years
     7  [after] of the effective date of [this  section]  chapter  four  hundred
     8  thirty-one of the laws of two thousand nineteen.  For members of the New
     9  York city fire department pension fund, such payment must be made within
    10  five years of the effective date of the chapter of the laws of two thou-
    11  sand twenty-four which amended this section.
    12    2. Any member of the New York city police pension fund or the New York
    13  city  fire  department pension fund who acquires service credit pursuant
    14  to this section shall be entitled to all rights, benefits and privileges
    15  to which [he or she] such member would have been entitled  had  [his  or
    16  her]  such  member's membership in the New York city police pension fund
    17  or the New York city fire department pension fund begun upon the  earli-
    18  est  date  that  [he  or  she] such member was appointed to the title of
    19  police cadet program or police cadet program II in  the  New  York  city
    20  police department cadet program, but in no event shall the service cred-
    21  it acquired pursuant to this section be deemed to be: (a) service in the
    22  police  force  or  any  other  type  of service counted or creditable as
    23  service in the police force under section 13-218 of  the  administrative
    24  code  of  the city of New York[,]; (b) service in the fire department of
    25  the city of New York or any other type of service counted or  creditable
    26  as  service in such fire department under section 13-318 of the adminis-
    27  trative code of the city of New York; or (c) service under section  five
    28  hundred  thirteen of the retirement and social security law or any other
    29  provision of law for purposes of eligibility for benefits and to  deter-
    30  mine  the amount of benefits under the New York city police pension fund
    31  or the New York city fire department pension fund.
    32    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY: This proposed legislation would allow Tier 3 members of  FIRE
        to purchase prior service as a cadet in the NYPD and use the appointment
        date  as  a  cadet  to determine the initial date of FIRE membership for
        plan or tier eligibility purposes provided such purchase of  service  is
        made within five years of the effective date of this legislation.
              ILLUSTRATION - INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                        by Fiscal Year for the first 25 years ($)
 
                                  Tier or Plan Change*
                            Year      To Tier 2 From Within Tier 3
                            2025      51,700    1,500
                            2026      51,700    1,500
                            2027      51,700    1,500
                            2028      51,700    1,500
                            2029      51,700    1,500
                            2030      51,700    1,500
                            2031      51,700    1,500
                            2032      51,700    1,500
                            2033      51,700    1,500
                            2034      51,700    1,500
                            2035      51,700    1,500
                            2036      51,700    1,500
                            2037      51,700    1,500

        A. 7681--A                          3
 
                            2038      51,700    1,500
                            2039      0         0
                            2040      0         0
                            2041      0         0
                            2042      0         0
                            2043      0         0
                            2044      0         0
                            2045      0         0
                            2046      0         0
                            2047      0         0
                            2048      0         0
                            2049      0         0
          * From Tier 3 (original, modified, or enhanced) to Tier 2 or from Tier
        3 (modified or enhanced) to Tier 3 original.
 
          The potential increases in employer contributions will be allocated to
        New York City.

                  EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                          as of June 30, 2023 ($ in Thousands)
 
                  Present Value (PV)                 To Tier 2 Within Tier 3
                  PV of Benefits:                    390.6     14.4
                  PV of Employee Contributions:      (46.8)    1.7
                  PV of Employer Contributions:      437.4     12.7
                  Unfunded Accrued Liabilities:      437.4     12.7
 
                       AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                  Recognized as Ongoing Gain/Loss    To Tier 2 Within Tier 3
                  Number of Payments:                14        14
                  Amortization Payment:              51.7 K    1.5 K
 
          CENSUS DATA: The number of members who will benefit in the future from
        this fiscal note is unknown. The estimates presented herein are based on
        preliminary  census  data collected as of June 30, 2023. The census data
        for the potentially impacted population  used  to  develop  the  average
        costs is summarized below.
                                                     To Tier 2 Within Tier 3
                  Active Members
                  - Number Count:                    3,144     3,913
                  - Average Age:                     35.9      34.3
                  - Average Service:                 6.8       5.8
                  - Average Salary:                  125,500   117,100
 
          IMPACT  ON  MEMBER BENEFITS AND CONTRIBUTIONS: Currently, the purchase
        of prior NYPD cadet service performed while not a member of the New York
        City Employees' Retirement System (NYCERS) does not provide  a  retroac-
        tive date of membership in FIRE, nor would it provide additional service
        retirement benefits for Tier 3 members.
          Under  the  proposed  legislation,  purchased NYPD cadet service would
        entitle members with cadet service before July 1, 2009 to  be  deemed  a
        Tier  2  member, and would be included in the calculation of benefits as
        non-qualifying service credit.

        A. 7681--A                          4
 
          Also, purchased NYPD cadet service would entitle  members  with  cadet
        service  between July 1, 2009 and April 1, 2012 to be deemed an original
        Tier 3 member.
          For  cadets  who  did  not  join  NYCERS, the member would have to pay
        member contributions that would have been payable  to  NYCERS  had  they
        joined  on their initial cadet appointment date, plus 5.0% annual inter-
        est.
          ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
        calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
        of the impacted retirement systems. Additionally,  1.2  years  of  cadet
        service  was  assumed  based  on  the amount of cadet service previously
        purchased by members of the New York City Police Pension Fund.
          The number of members who will benefit in the future from this  Fiscal
        Note is unknown. The cost of this proposed legislation could vary great-
        ly  depending  on  the number of future members who benefit and on their
        length of service, age, and salary history.
          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 2024-49 dated May 3, 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.
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