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A07962 Summary:

BILL NOA07962A
 
SAME ASSAME AS S06988-B
 
SPONSORAbbate
 
COSPNSRGriffin, Pheffer Amato, Colton
 
MLTSPNSR
 
Amd §§444, 445, 613 & 603, add §§445-j & 604-j, R & SS L; amd §13-125.2, NYC Ad Cd
 
Establishes twenty-five year retirement programs for members of the New York city employees' retirement system employed as fire protection inspectors and associate fire protection inspectors.
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A07962 Actions:

BILL NOA07962A
 
06/04/2021referred to governmental employees
01/05/2022referred to governmental employees
04/29/2022amend and recommit to governmental employees
04/29/2022print number 7962a
05/25/2022reported referred to ways and means
05/25/2022reported referred to rules
05/31/2022reported
05/31/2022rules report cal.456
05/31/2022substituted by s6988b
 S06988 AMEND=B GOUNARDES
 05/20/2021REFERRED TO CIVIL SERVICE AND PENSIONS
 05/26/2021AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
 05/26/2021PRINT NUMBER 6988A
 01/05/2022REFERRED TO CIVIL SERVICE AND PENSIONS
 04/29/2022AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
 04/29/2022PRINT NUMBER 6988B
 05/10/2022REPORTED AND COMMITTED TO FINANCE
 05/17/2022REPORTED AND COMMITTED TO RULES
 05/23/2022ORDERED TO THIRD READING CAL.1433
 05/25/2022PASSED SENATE
 05/25/2022DELIVERED TO ASSEMBLY
 05/25/2022referred to ways and means
 05/31/2022substituted for a7962a
 05/31/2022ordered to third reading rules cal.456
 05/31/2022home rule request
 05/31/2022passed assembly
 05/31/2022returned to senate
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A07962 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7962A
 
SPONSOR: Abbate
  PURPOSE OR GENERAL IDEA OF BILL: To establish a 25-year retirement plan for fire protection inspectors who are members of the NYC employees retirement system.   SUMMARY OF PROVISIONS: This bill would establish a 25-year retirement for fire protection inspectors, associate fire protection inspectors, and their supervisors who are uniformed fire service personnel and members of the New York City employee's retirement system. The plan would be optional for those who are fire protection inspectors, associate fire protection inspectors or their supervisors and members of the system on the effective date who can opt in by filing a form within 180 days. Any fire protection inspec- tor who becomes a NYCERS member at or under the age of 25 after the effective date will be mandated into the 25-year plan. Those over the age of 25 may opt out of the plan within 180 days of becoming a fire inspector. The costs of the plan are paid for by required additional employee contributions of 6.25% of salary.   JUSTIFICATION: Fire protection inspectors and associate fire protection inspectors perform some of the most important jobs in New York City - inspecting and ensuring compliance with the fire code. This bill would afford these uniformed fire service personnel the opportunity to retire with a full pension after 25 years of service. It would grant them parity with other uniformed service personnel who perform essential tasks that mean the difference between life and death for New Yorkers - police officers, firefighters, EMTs and other uniformed service employees. Those who participate in the new pension program would be required to make additional member contributions of their earnings, which will cover the cost of the plan. Thus, there is no fiscal impact to the City of New York in providing this well-deserved pension. A number of other classes of employees currently enjoy analogous bene- fits. 'For example, sanitation workers, who are members of the New York City employee retirement system, are granted the option of participating in a program that allows them to retire after twenty years of service regardless of age. See N.Y.C. Admin. Code §§ 13159, 13-160; Ret. & Soc. Sec. L. § 445-b. Similarly, investigators, dispatchers, emergency medical technicians, special officers, parking control specialists, school safety agents, campus peace officers, and New York City taxi and limousine inspectors are granted the option of participating in a program that allows them to retire after twenty-five years of service. See N.Y.C. Admin. Code §§ 13-157.1, .§§ 13-157.2, § 13-157.2, (n.b. there are two sections 13157.2.), and §§ 13-157.3. Corrections officers and housing police have similar benefits, as do others. See, e.g., N.Y.C. Admin. Code §§ 13-155, 13-156, 13157. Those opting to join the program are required to make additional contributions which are designed to pay for the benefits thereof. The work performed by fire protection inspectors and associate fire protection inspectors is hazardous in nature and of special value to the residents of New York City. There is thus every reason they should be given analogous treatment of investigators, dispatchers, and the other professions mentioned above.   PRIOR LEGISLATIVE HISTORY: 2020: A7659A - Referred to Governmental Employees Committee 2019: A7659 - Referred to Governmental Employees Committee   FISCAL IMPLICATIONS: See bill.   EFFECTIVE DATE: This act shall take effect immediately.
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A07962 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7962--A
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 4, 2021
                                       ___________
 
        Introduced  by M. of A. ABBATE, GRIFFIN -- 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 and the  adminis-
          trative code of the city of New York, in relation to the establishment
          of  twenty-five  year  retirement programs for members of the New York
          city employees' retirement system employed as fire protection  inspec-
          tors and associate fire protection inspectors
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision a of section 444 of the retirement  and  social
     2  security  law, as amended by section 141 of subpart B of part C of chap-
     3  ter 62 of the laws of 2011, is amended to read as follows:
     4    a. Except as provided in subdivision c of section four hundred  forty-
     5  five-a  of  this  article,  subdivision c of section four hundred forty-
     6  five-b of this article, subdivision c of  section  four  hundred  forty-
     7  five-c   of   this  article,  subdivision  c  of  section  four  hundred
     8  forty-five-d of this article as added by chapter four  hundred  seventy-
     9  two  of  the  laws  of  nineteen  hundred  ninety-five, subdivision c of
    10  section four hundred forty-five-e of  this  article,  subdivision  c  of
    11  section  four  hundred forty-five-f of this article [and], subdivision c
    12  of section four hundred forty-five-h of this article and  subdivision  c
    13  of  section  four  hundred  forty-five-j  of  this  article, the maximum
    14  retirement benefit computed without optional modification provided to  a
    15  member  of  a retirement system who is subject to the provisions of this
    16  article, other than a police officer,  a  firefighter,  an  investigator
    17  member  of  the  New York city employees' retirement system, a member of
    18  the uniformed personnel in institutions under the  jurisdiction  of  the
    19  New  York  city  department  of correction who receives a performance of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08561-07-2

        A. 7962--A                          2
 
     1  duty disability retirement allowance, a member of the uniformed  person-
     2  nel  in  institutions  under  the  jurisdiction  of  the  department  of
     3  corrections and community supervision or a security  hospital  treatment
     4  assistant, as those terms are defined in subdivision i of section eight-
     5  y-nine  of  this  chapter, who receives a performance of duty disability
     6  retirement allowance, a member of a  teachers'  retirement  system,  New
     7  York city employees' retirement system, New York city board of education
     8  retirement system or a member of the New York state and local employees'
     9  retirement system or a member of the New York city employees' retirement
    10  system or New York city board of education retirement system employed as
    11  a  special  officer,  parking  control  specialist, school safety agent,
    12  campus peace officer, taxi and limousine inspector or a police  communi-
    13  cations  member  and  who  receives  a  performance  of  duty disability
    14  pension, from funds  other  than  those  based  on  a  member's  own  or
    15  increased-take-home-pay  contributions,  shall, before any reduction for
    16  early retirement, be sixty per centum  of  the  first  fifteen  thousand
    17  three  hundred  dollars of final average salary, and fifty per centum of
    18  final average  salary  in  excess  of  fifteen  thousand  three  hundred
    19  dollars, and forty per centum of final average salary in excess of twen-
    20  ty-seven  thousand  three  hundred  dollars, provided, however, that the
    21  benefits provided by subdivision c of section four hundred  forty-five-d
    22  of this article as added by chapter four hundred seventy-two of the laws
    23  of  nineteen  hundred  ninety-five  based  upon  the  additional  member
    24  contributions required by subdivision d of  such  section  four  hundred
    25  forty-five-d shall be subject to the maximum retirement benefit computa-
    26  tions set forth in this section. The maximum retirement benefit computed
    27  without  optional  modification payable to a police officer, an investi-
    28  gator member of the New York city  employees'  retirement  system  or  a
    29  firefighter  shall equal that payable upon completion of thirty years of
    30  service, except that the maximum  service  retirement  benefit  computed
    31  without  optional  modification shall equal that payable upon completion
    32  of thirty-two years of service.
    33    § 2. Subdivision a of section 445 of the retirement and social securi-
    34  ty law, as amended by chapter 245 of the laws of  2021,  is  amended  to
    35  read as follows:
    36    a.  No  member of a retirement system who is subject to the provisions
    37  of this article shall retire without regard to age, exclusive of retire-
    38  ment for disability, unless he or she is a police officer,  an  investi-
    39  gator  member  of  the New York city employees' retirement system, fire-
    40  fighter, correction officer, a qualifying member as defined  in  section
    41  eighty-nine-t,  as  added by chapter six hundred fifty-seven of the laws
    42  of nineteen hundred ninety-eight, of this chapter, sanitation worker,  a
    43  special  officer  (including persons employed by the city of New York in
    44  the title urban park ranger or  associate  urban  park  ranger),  school
    45  safety  agent,  campus  peace officer or a taxi and limousine commission
    46  inspector member of the New York city employees'  retirement  system  or
    47  the  New  York  city  board of education retirement system, a dispatcher
    48  member of the New York  city  employees'  retirement  system,  a  police
    49  communications member of the New York city employees' retirement system,
    50  an EMT member of the New York city employees' retirement system, a depu-
    51  ty  sheriff  member of the New York city employees' retirement system, a
    52  fire protection inspector member of the New York city employees' retire-
    53  ment system, a correction officer of the Westchester  county  correction
    54  department  as  defined  in  section  eighty-nine-e  of  this chapter or
    55  employed in Suffolk county as a peace officer,  as  defined  in  section
    56  eighty-nine-s, as added by chapter five hundred eighty-eight of the laws

        A. 7962--A                          3
 
     1  of  nineteen  hundred ninety-seven, of this chapter, employed in Suffolk
     2  county as a correction officer, as defined in section  eighty-nine-f  of
     3  this  chapter,  or  employed  in  Nassau county as a correction officer,
     4  uniformed correction division personnel, sheriff, undersheriff or deputy
     5  sheriff,  as  defined  in  section  eighty-nine-g  of  this  chapter, or
     6  employed in Nassau county as an ambulance medical technician,  an  ambu-
     7  lance  medical  technician/supervisor or a member who performs ambulance
     8  medical technician related services, or a  police  medic,  police  medic
     9  supervisor  or  a  member who performs police medic related services, as
    10  defined in section eighty-nine-s, as amended  by  chapter  five  hundred
    11  seventy-eight  of  the  laws  of  nineteen hundred ninety-eight, of this
    12  chapter, or employed in Nassau county as a peace officer, as defined  in
    13  section  eighty-nine-s,  as added by chapter five hundred ninety-five of
    14  the laws of nineteen hundred ninety-seven, of this chapter, or  employed
    15  in  Albany county as a sheriff, undersheriff, deputy sheriff, correction
    16  officer or identification officer, as defined in  section  eighty-nine-h
    17  of  this  chapter  or  is  employed in St. Lawrence county as a sheriff,
    18  undersheriff, deputy  sheriff  or  correction  officer,  as  defined  in
    19  section  eighty-nine-i  of this chapter or is employed in Orleans county
    20  as a sheriff, undersheriff, deputy sheriff  or  correction  officer,  as
    21  defined  in  section  eighty-nine-l  of  this  chapter or is employed in
    22  Jefferson  county  as  a  sheriff,  undersheriff,  deputy   sheriff   or
    23  correction  officer, as defined in section eighty-nine-j of this chapter
    24  or is employed in Onondaga county  as  a  deputy  sheriff-jail  division
    25  competitively  appointed  or  as  a  correction  officer,  as defined in
    26  section eighty-nine-k of this chapter or is employed in a  county  which
    27  makes  an  election under subdivision j of section eighty-nine-p of this
    28  chapter as a sheriff, undersheriff, deputy sheriff or correction officer
    29  as defined in such section eighty-nine-p or is employed in Broome County
    30  as a sheriff, undersheriff, deputy sheriff  or  correction  officer,  as
    31  defined  in  section eighty-nine-m of this chapter or is a Monroe county
    32  deputy sheriff-court security, or deputy sheriff-jailor  as  defined  in
    33  section  eighty-nine-n, as added by chapter five hundred ninety-seven of
    34  the laws of nineteen hundred ninety-one, of this chapter or is  employed
    35  in   Greene  county  as  a  sheriff,  undersheriff,  deputy  sheriff  or
    36  correction officer, as defined in section eighty-nine-o of this  chapter
    37  or  is  a  traffic officer with the town of Elmira as defined in section
    38  eighty-nine-q of this chapter or is employed by Suffolk county as a park
    39  police officer, as defined in section eighty-nine-r of this  chapter  or
    40  is  a peace officer employed by a county probation department as defined
    41  in section eighty-nine-t, as added by chapter six hundred three  of  the
    42  laws of nineteen hundred ninety-eight, of this chapter or is employed in
    43  Rockland  county as a deputy sheriff-civil as defined in section eighty-
    44  nine-v of this chapter as added by chapter four hundred forty-one of the
    45  laws of two thousand one, or is employed in Rockland county as a superi-
    46  or correction officer as defined in section eighty-nine-v of this  chap-
    47  ter  as added by chapter five hundred fifty-six of the laws of two thou-
    48  sand one or is a paramedic employed by the police department in the town
    49  of Tonawanda and retires under the provisions of  section  eighty-nine-v
    50  of  this  chapter,  as  added by chapter four hundred seventy-two of the
    51  laws of two thousand one, or is a county fire marshal, supervising  fire
    52  marshal,  fire  marshal,  assistant  fire  marshal, assistant chief fire
    53  marshal or chief fire marshal  employed  by  the  county  of  Nassau  as
    54  defined  in section eighty-nine-w of this chapter and is in a plan which
    55  permits immediate retirement upon completion of a  specified  period  of
    56  service  without  regard  to age. Except as provided in subdivision c of

        A. 7962--A                          4

     1  section four hundred forty-five-a of  this  article,  subdivision  c  of
     2  section  four  hundred  forty-five-b  of  this article, subdivision c of
     3  section four hundred forty-five-c of  this  article,  subdivision  c  of
     4  section  four  hundred  forty-five-d  of  this article, subdivision c of
     5  section four hundred forty-five-e of  this  article,  subdivision  c  of
     6  section  four  hundred forty-five-f of this article [and], subdivision c
     7  of section four hundred forty-five-h of this article, and subdivision  c
     8  of section four hundred forty-five-j of this article, a member in such a
     9  plan and such an occupation, other than a police officer or investigator
    10  member of the New York city employees' retirement system or a firefight-
    11  er,  shall not be permitted to retire prior to the completion of twenty-
    12  five years of credited service; provided, however, if such a  member  in
    13  such an occupation is in a plan which permits retirement upon completion
    14  of  twenty years of service regardless of age, he or she may retire upon
    15  completion of  twenty  years  of  credited  service  and  prior  to  the
    16  completion  of twenty-five years of service, but in such event the bene-
    17  fit provided from funds other than those based on such  a  member's  own
    18  contributions  shall  not  exceed two per centum of final average salary
    19  per each year of credited service.
    20    § 3. The retirement and social security law is amended by adding a new
    21  section 445-j to read as follows:
    22    § 445-j. Optional twenty-five year improved benefit retirement program
    23  for fire protection inspector members.  a.  Definitions.  The  following
    24  words and phrases as used in this section shall have the following mean-
    25  ings unless a different meaning is plainly required by the context.
    26    1. "Retirement system" shall mean the New York city employees' retire-
    27  ment system.
    28    2.  "Fire  protection inspector member" shall mean (i) a member of the
    29  retirement system who is subject to the provisions of this article,  who
    30  is employed by the city of New York or by the New York city fire depart-
    31  ment in a title whose duties are those of a fire protection inspector or
    32  associate fire protection inspector; and (ii) a member of the retirement
    33  system  who,  on  the  effective date of this section or thereafter, was
    34  employed by the city of New York or by the New York city fire department
    35  in a title whose duties are those of  a  fire  protection  inspector  or
    36  associate  fire protection inspector and who, subsequent thereto, became
    37  employed by the city of New York or by the New York city fire department
    38  in a title whose duties  require  the  supervision  of  employees  whose
    39  duties  are  those  of  a  fire  protection  inspector or associate fire
    40  protection inspector.
    41    3. "Twenty-five year improved benefit retirement program"  shall  mean
    42  all the terms and conditions of this section.
    43    4.  "Starting date of the twenty-five year improved benefit retirement
    44  program" shall mean the effective date of this section, as such date  is
    45  certified pursuant to section forty-one of the legislative law.
    46    5.  "Participant  in  the twenty-five year improved benefit retirement
    47  program" shall mean any fire protection inspector member who, under  the
    48  applicable  provisions  of subdivision b of this section, is entitled to
    49  the rights, benefits and privileges and is subject to the obligations of
    50  the twenty-five year improved benefit retirement program, as  applicable
    51  to him or her.
    52    6.  "Administrative  code"  shall  mean the administrative code of the
    53  city of New York.
    54    7. "Accumulated  deductions"  shall  mean  accumulated  deductions  as
    55  defined  in  subdivision  eleven of section 13-101 of the administrative
    56  code.

        A. 7962--A                          5

     1    8. "Optional retirement provisions" shall mean the right to retire and
     2  receive a retirement allowance under this section upon the completion of
     3  twenty-five years of credited service.
     4    9.  "Credited  service"  for  purposes  of this section shall mean all
     5  service as a fire protection inspector member.
     6    b. Election of twenty-five year improved benefit  retirement  program.
     7  1. Subject to the provisions of paragraphs five and six of this subdivi-
     8  sion, any person who is a fire protection inspector member on the start-
     9  ing date of the twenty-five year improved benefit retirement program may
    10  elect  to  become a participant in the twenty-five year improved benefit
    11  retirement program by filing, within one hundred eighty days after  such
    12  starting  date,  a duly executed application for such participation with
    13  the retirement system, provided he or she  is  such  a  fire  protection
    14  inspector member on the date such application is filed.
    15    2.  Subject  to  the  provision of paragraphs five and six of the this
    16  subdivision, any person who becomes a fire protection  inspector  member
    17  after the starting date of the twenty-five year improved benefit retire-
    18  ment  program  may elect to become a participant in the twenty-five year
    19  improved benefit retirement program by filing, within one hundred eighty
    20  days after becoming such a fire  protection  inspector  member,  a  duly
    21  executed  application for such participation with the retirement system,
    22  provided he or she is such a fire protection  inspector  member  on  the
    23  date such application is filed.
    24    3.  Any  election to be a participant in the twenty-five year improved
    25  benefit retirement program shall be irrevocable.
    26    4. Where any participant in  the  twenty-five  year  improved  benefit
    27  retirement  program  shall cease to hold a position as a fire protection
    28  inspector member, he or she shall cease to be such  a  participant  and,
    29  during  any  period  in  which  such  a person does not hold such a fire
    30  protection inspector position, he or she shall not be a  participant  in
    31  the  twenty-five  year improved benefit retirement program and shall not
    32  be eligible for the benefits of subdivision c of this section.
    33    5. Where any participant in  the  twenty-five  year  improved  benefit
    34  retirement  program  terminates  service  as a fire protection inspector
    35  member and returns to such service as a fire protection inspector member
    36  at a later date, he or she shall again become such a participant on that
    37  date.
    38    6. Notwithstanding any other provision of law  to  the  contrary,  any
    39  person  who  is eligible to become a participant in the twenty-five year
    40  improved benefit retirement program pursuant to paragraph one or two  of
    41  this subdivision for the full one hundred eighty day period provided for
    42  in  such  applicable  paragraph  and  who  fails  to  timely file a duly
    43  executed application for such participation with the retirement  system,
    44  shall  not  thereafter  be  eligible  to  become  a  participant in such
    45  program.
    46    c. Service retirement benefits. Notwithstanding any other provision of
    47  law to the  contrary,  where  a  participant  in  the  twenty-five  year
    48  improved  benefit  retirement  program, who is otherwise qualified for a
    49  retirement allowance pursuant to the optional retirement  provision  set
    50  forth  in  subdivision a of this section, has made and/or paid, while he
    51  or she is a fire protection  inspector  member,  all  additional  member
    52  contributions  and  interest  (if any) required by subdivision d of this
    53  section, then:
    54    1. that participant, while he or she remains a participant, shall  not
    55  be  subject  to  the provisions of subdivision a of section four hundred
    56  forty-five of this article; and

        A. 7962--A                          6
 
     1    2. if  that  participant,  while  such  a  participant,  retires  from
     2  service,  he  or  she  shall not be subject to the provisions of section
     3  four hundred forty-four of this article; and
     4    3.  his  or her retirement allowance shall be an amount, on account of
     5  the required minimum period of service, equal to the sum of (i) an annu-
     6  ity  which  shall  be  the  actuarial  equivalent  of  the   accumulated
     7  deductions  from  his  or her pay during such period, (ii) a pension for
     8  increased-take-home-pay which shall be the actuarial equivalent  of  the
     9  reserve  for increased-take-home-pay to which he or she may be entitled,
    10  for such period, and (iii) a pension which, when added to  such  annuity
    11  and  such  pension  for  increased-take-home-pay,  produces a retirement
    12  allowance equal to fifty percent of his or  her  final  average  salary,
    13  plus  an  amount for each additional year of allowable service as a fire
    14  protection inspector member, or fraction thereof, beyond  such  required
    15  minimum period of service equal to two percent of his or her final aver-
    16  age  salary  for  such  allowable service as a fire protection inspector
    17  member during the period from completion of twenty-five years of  allow-
    18  able  service  as  a  fire  protection  inspector  member to the date of
    19  retirement but not to exceed more than five years of additional  service
    20  as a fire protection inspector member.
    21    d.  Additional  member  contributions.  1.  In  addition to the member
    22  contributions required pursuant to  section  13-125  or  13-162  of  the
    23  administrative  code,  each participant in the twenty-five year improved
    24  benefit retirement program shall contribute, subject to  the  applicable
    25  provisions of section 13-125.2 of the administrative code, an additional
    26  six  and  twenty-five  one-hundredths percent of his or her compensation
    27  earned from all allowable service as a fire protection inspector member,
    28  as a participant in the twenty-five  year  improved  benefit  retirement
    29  program, rendered on and after the starting date of the improved benefit
    30  retirement  program,  and  all  allowable  service  as a fire protection
    31  inspector member after such person  ceases  to  be  a  participant,  but
    32  before  he or she again becomes a participant pursuant to paragraph five
    33  of subdivision b of this section. A participant in the twenty-five  year
    34  improved  benefit  retirement program shall contribute additional member
    35  contributions until the later of the date as  of  which  he  or  she  is
    36  eligible  to  retire  with  thirty  years of allowable service as a fire
    37  protection inspector member under such retirement program, or the  first
    38  anniversary  of the starting date of the twenty-five year improved bene-
    39  fit retirement program. The additional contributions  required  by  this
    40  section  shall be in lieu of additional member contributions required by
    41  subdivision d of section four hundred forty-five-d of this  chapter,  as
    42  added by chapter ninety-six of the laws of nineteen hundred ninety-five,
    43  and  no  member paying additional contributions pursuant to this section
    44  shall be required to  pay  additional  contributions  pursuant  to  such
    45  subdivision d of section four hundred forty-five-d of this article.
    46    2.  Commencing  with  the  first full payroll period after each person
    47  becomes a participant in the twenty-five year improved  benefit  retire-
    48  ment  program,  additional member contributions at the rate specified in
    49  paragraph one of this subdivision shall  be  deducted,  subject  to  the
    50  applicable  provisions  of  section 13-125.2 of the administrative code,
    51  from the compensation of such participant on each and every  payroll  of
    52  such  participant  for each and every payroll period for which he or she
    53  is such a participant.
    54    3. (i) Subject to the provisions of subparagraph (ii)  of  this  para-
    55  graph,  where  any additional member contributions required by paragraph

        A. 7962--A                          7
 
     1  one of this subdivision are not paid by deductions from a  participant's
     2  compensation pursuant to paragraph two of this subdivision:
     3    (A)  that  participant shall be charged with a contribution deficiency
     4  consisting of such  unpaid  amounts,  together  with  interest  thereon,
     5  compounded annually; and
     6    (B)  such  interest  on  each amount of undeducted contributions shall
     7  accrue from the end of the payroll period for which  such  amount  would
     8  have been deducted from compensation if he or she had been a participant
     9  at  the  beginning  of  that payroll period and such deductions had been
    10  required for such payroll period  until  such  amount  is  paid  to  the
    11  retirement system; and
    12    (C)  (1)  interest  on each such amount included in such participant's
    13  contribution deficiency pursuant to this subparagraph  shall  be  calcu-
    14  lated  as if such additional member contributions never had been paid by
    15  such participant, and such interest shall accrue from  the  end  of  the
    16  payroll period to which an amount of such additional member contribution
    17  is  attributable,  compounded annually, until such amount is paid to the
    18  retirement system;
    19    (2) the rate of interest to be applied to each such amount during  the
    20  period  for  which interest accrues on that amount shall be equal to the
    21  rate or rates of interest required by law to be used  during  that  same
    22  period  to  credit  interest on the accumulated deductions of retirement
    23  system members;
    24    (ii) Except as provided in subparagraph (iii) of  this  paragraph,  no
    25  interest  shall  be due on any unpaid additional contributions which are
    26  not attributable to the period prior to the first  full  payroll  period
    27  referred to in paragraph two of this subdivision;
    28    (iii)  Should  any  person  who,  pursuant  to paragraph seven of this
    29  subdivision has withdrawn any additional member contributions  (and  any
    30  interest  paid  thereon)  again  become a participant in the twenty-five
    31  year improved benefit retirement program pursuant to paragraph  five  of
    32  subdivision  b  of this section, an appropriate amount shall be included
    33  in such participant's contribution deficiency (including interest there-
    34  on as calculated pursuant to this paragraph) for  any  credited  service
    35  with respect to which such person received a refund of additional member
    36  contributions  (including any amount of an unpaid loan balance deemed to
    37  have been returned to such person pursuant to paragraph  seven  of  this
    38  subdivision),  as if such additional member contributions never had been
    39  paid.
    40    4. The board of trustees of the retirement system may, consistent with
    41  the provisions of  this  subdivision,  promulgate  regulations  for  the
    42  payment of the additional member contributions required by this subdivi-
    43  sion, and any interest thereon, by a participant in the twenty-five year
    44  improved  benefit  retirement  program  (including the deduction of such
    45  contributions, and any interest thereon, from his or her compensation).
    46    5. Where a participant who is otherwise eligible for  service  retire-
    47  ment  pursuant  to  subdivision  c of this section did not, prior to the
    48  effective date of retirement, pay the entire amount  of  a  contribution
    49  deficiency  chargeable to him or her pursuant to paragraph three of this
    50  subdivision, or repay the entire amount of a loan of his  or  her  addi-
    51  tional member contributions pursuant to paragraph eight of this subdivi-
    52  sion (including accrued interest on such loan), that participant, never-
    53  theless,  shall  be eligible to retire pursuant to subdivision c of this
    54  section, provided, however, that where such participant is not  entitled
    55  to  a  refund  of  additional member contributions pursuant to paragraph
    56  seven of this subdivision, such participant's service retirement benefit

        A. 7962--A                          8
 
     1  calculated pursuant to the applicable provisions  of  subdivision  c  of
     2  this  section  shall be reduced by a life annuity (calculated in accord-
     3  ance with the method set forth in subdivision i of section  six  hundred
     4  thirteen-b  of  this chapter) which is actuarially equivalent to (i) the
     5  amount of any unpaid contribution deficiency chargeable to  such  member
     6  pursuant to paragraph three of this subdivision; plus (ii) the amount of
     7  any  unpaid  balance  of a loan of his or her additional member contrib-
     8  utions pursuant  to  paragraph  eight  of  this  subdivision  (including
     9  accrued interest on such loan).
    10    6.  Subject  to  the provisions of paragraph five of this subdivision,
    11  where a participant has not paid in  full  any  contribution  deficiency
    12  chargeable  to  him  or her pursuant to paragraph three of this subdivi-
    13  sion, and a benefit, other than  a  refund  of  a  member's  accumulated
    14  deductions  or  a  refund of additional member contributions pursuant to
    15  paragraph seven of this subdivision, becomes payable by  the  retirement
    16  system  to  the  participant  or to his or her designated beneficiary or
    17  estate, the actuarial equivalent of any  such  unpaid  amount  shall  be
    18  deducted from the benefit otherwise payable.
    19    7.  (i)  All additional member contributions required by this subdivi-
    20  sion (and any interest thereon) which are  received  by  the  retirement
    21  system  shall  be paid into its contingent reserve fund and shall be the
    22  property of the retirement system. Such additional member  contributions
    23  (and  any  interest  thereon)  shall not for any purpose be deemed to be
    24  member contributions or  accumulated  deductions  of  a  member  of  the
    25  retirement  system  under section 13-125 or 13-162 of the administrative
    26  code while he or she is a participant in the twenty-five  year  improved
    27  benefit retirement program or otherwise.
    28    (ii)  Should  a  participant  in the twenty-five year improved benefit
    29  retirement program, who has rendered less than fifteen years of credited
    30  service cease to hold a position as a fire protection  inspector  member
    31  for  any  reason  whatsoever,  his  or her accumulated additional member
    32  contributions made pursuant  to  this  subdivision  (together  with  any
    33  interest thereon paid to the retirement system) which remain credited to
    34  such  participant's  account  may be withdrawn by him or her pursuant to
    35  procedures promulgated in regulations of the board of  trustees  of  the
    36  retirement  system, together with interest thereon at the rate of inter-
    37  est required by law to be used to credit  interest  on  the  accumulated
    38  deductions of retirement system members compounded annually.
    39    (iii)  Notwithstanding any other provision of law to the contrary, (A)
    40  no person shall be permitted to withdraw from the retirement system  any
    41  additional member contributions paid pursuant to this subdivision or any
    42  interest  paid  thereon,  except  pursuant to and in accordance with the
    43  preceding subparagraphs of this paragraph; and
    44    (B) no person, while he or she is a  participant  in  the  twenty-five
    45  year improved benefit retirement program, shall be permitted to withdraw
    46  any  such  additional  member contributions or any interest paid thereon
    47  pursuant to any of the preceding  subparagraphs  of  this  paragraph  or
    48  otherwise.
    49    8.  A  participant in the twenty-five year improved benefit retirement
    50  program shall be permitted to borrow from his or her  additional  member
    51  contributions,  including  any interest paid thereon, which are credited
    52  to the additional contributions account established for such participant
    53  in the contingent reserve fund of the retirement system.  The  borrowing
    54  from  such  additional  member  contributions pursuant to this paragraph
    55  shall be governed by the same rights, privileges, obligations and proce-
    56  dures set forth in section six hundred thirteen-b of this chapter  which

        A. 7962--A                          9
 
     1  govern the borrowing by members subject to article fifteen of this chap-
     2  ter  of  member contributions made pursuant to section six hundred thir-
     3  teen of this chapter. The board of trustees  of  the  retirement  system
     4  may,  consistent  with  the  provisions  of  this  subdivision  and  the
     5  provisions of section six hundred thirteen-b of  this  chapter  as  made
     6  applicable  to  this  subdivision,  promulgate regulations governing the
     7  borrowing of such additional member contributions.
     8    9. Wherever a person has an unpaid balance of a loan  of  his  or  her
     9  additional  member  contributions  pursuant  to  paragraph eight of this
    10  subdivision at the time he or she becomes entitled to a refund of his or
    11  her additional member contributions pursuant  to  subparagraph  (ii)  of
    12  paragraph  seven  of  this  subdivision,  the amount of such unpaid loan
    13  balance (including accrued  interest)  shall  be  deemed  to  have  been
    14  returned to such member, and the refund of such additional contributions
    15  shall  be  the  net amount of such contributions, together with interest
    16  thereon in accordance with the provisions of such subparagraph.
    17    10. Notwithstanding any other provision of law to  the  contrary,  the
    18  provisions  of  section one hundred thirty-eight-b of this chapter shall
    19  not be applicable to  the  additional  member  contributions  which  are
    20  required by this subdivision.
    21    11.  Notwithstanding  any  other provision of law to the contrary, the
    22  additional member contributions which are required by  this  subdivision
    23  shall not be reduced under any program for increased-take-home-pay.
    24    e.  The  provisions  of this section shall not be construed to provide
    25  benefits to any participant in the  twenty-five  year  improved  benefit
    26  retirement  program which are greater than those which would be received
    27  by a similarly situated member who is entitled  to  benefits  under  the
    28  provisions  of  section  13-157.2 of the administrative code, but who is
    29  not governed by the provisions of this article.
    30    § 4. The retirement and social security law is amended by adding a new
    31  section 604-j to read as follows:
    32    § 604-j. Twenty-five  year  retirement  program  for  fire  protection
    33  inspector  members. a.   Definitions. The following words and phrases as
    34  used in this section shall have the following meanings unless a  differ-
    35  ent meaning is plainly required by the context.
    36    1.  "Fire  protection  inspector  member"  shall  mean a member who is
    37  employed by the city of New York or by the New York city fire department
    38  in a title whose duties are those of  a  fire  protection  inspector  or
    39  associate  fire protection inspector; or in a title whose duties require
    40  the supervision of employees whose duties are those of a fire protection
    41  inspector or associate fire protection inspector.
    42    2. "Twenty-five year retirement program" shall mean all the terms  and
    43  conditions of this section.
    44    3.  "Starting  date  of the twenty-five year retirement program" shall
    45  mean the effective date of this section.
    46    4. "Participant in the twenty-five year retirement program" shall mean
    47  any  fire  protection  inspector  member  who,  under   the   applicable
    48  provisions  of subdivision b of this section, is entitled to the rights,
    49  benefits and privileges and is subject to the obligations of  the  twen-
    50  ty-five year retirement program, as applicable to him or her.
    51    5.  "Discontinued  member" shall mean a participant in the twenty-five
    52  year retirement program who, while he  or  she  was  a  fire  protection
    53  inspector  member, discontinued service as such a member and has a right
    54  to a deferred vested benefit under subdivision d of this section.
    55    6. "Administrative code" shall mean the  administrative  code  of  the
    56  city of New York.

        A. 7962--A                         10
 
     1    7.  "Allowable  service  as  a fire protection inspector member" shall
     2  mean all service as a fire protection inspector member.
     3    b.  Participation  in  the  twenty-five  year  retirement  program. 1.
     4  Subject to the provisions of paragraphs six and seven of  this  subdivi-
     5  sion, any person who is a fire protection inspector member on the start-
     6  ing  date  of the twenty-five year retirement program and who, as such a
     7  fire protection inspector member or otherwise, last  became  subject  to
     8  the provisions of this article prior to such starting date, may elect to
     9  become  a  participant  in  the  twenty-five  year retirement program by
    10  filing, within one hundred eighty days after the starting  date  of  the
    11  twenty-five  year  retirement  program,  a duly executed application for
    12  such participation with the retirement system of which such person is  a
    13  member, provided he or she is such a fire protection inspector member on
    14  the date such application is filed.
    15    2.  Subject  to  the  provisions  of  paragraphs six and seven of this
    16  subdivision, any person who becomes a fire protection  inspector  member
    17  after  the  starting date of the twenty-five year retirement program and
    18  who, as such a fire  protection  inspector  member  or  otherwise,  last
    19  became  subject to the provisions of this article prior to such starting
    20  date, may elect to become a participant in the twenty-five year  retire-
    21  ment  program  by  filing, within one hundred eighty days after becoming
    22  such a fire protection inspector member, a duly executed application for
    23  such participation with the retirement system for which such person is a
    24  member, provided he or she is such a fire protection inspector member on
    25  the date such application is filed.
    26    3. Each fire protection inspector member, other than a fire protection
    27  inspector member subject to paragraph one or two  of  this  subdivision,
    28  who  becomes  subject  to the provisions of this article on or after the
    29  starting date of the twenty-five year retirement program shall become  a
    30  participant in the twenty-five year retirement program on the date he or
    31  she  becomes such a fire protection inspector member. Provided, however,
    32  a person subject to this paragraph, and who has exceeded age twenty-five
    33  upon employment as a fire protection inspector member, shall  be  exempt
    34  from  participation  in the improved twenty-five year retirement program
    35  if such person elects not to participate by filing a duly executed  form
    36  with  the retirement system within one hundred eighty days of becoming a
    37  fire protection inspector member.
    38    4. Any election to be a participant in the twenty-five year retirement
    39  program shall be irrevocable.
    40    5. Where any participant in the twenty-five  year  retirement  program
    41  shall  cease to be employed as a fire protection inspector member, he or
    42  she shall cease to be such a participant and, during any period in which
    43  such person is not so employed, he or she shall not be a participant  in
    44  the  twenty-five  year  retirement program and shall not be eligible for
    45  the benefits of subdivision c of this section.
    46    6. Where any participant in the twenty-five  year  retirement  program
    47  terminates  service as a fire protection inspector member and returns to
    48  such service as a fire protection inspector member at a later  date,  he
    49  or she shall again become such a participant on that date.
    50    7. Notwithstanding any other provision of the law to the contrary, any
    51  person  who  is eligible to elect to become a participant in the twenty-
    52  five year retirement program pursuant to paragraph one or  two  of  this
    53  subdivision  for  the full one hundred eighty day period provided for in
    54  such applicable paragraph and who fails to timely file a  duly  executed
    55  application for such participation with the retirement system, shall not
    56  thereafter be eligible to become a participant in such program.

        A. 7962--A                         11
 
     1    c.  Service  retirement  benefits. 1. A participant in the twenty-five
     2  year retirement program:
     3    (i)  who  has completed twenty-five or more years of allowable service
     4  as a fire protection inspector member; and
     5    (ii) who has paid, before the effective date of retirement, all  addi-
     6  tional  member  contributions and interest (if any) required by subdivi-
     7  sion e of this section; and
     8    (iii) who files with the retirement system of which he  or  she  is  a
     9  member an application for service retirement setting forth at what time,
    10  not  less than thirty days subsequent to the execution and filing there-
    11  of, he or she desires to be retired; and
    12    (iv) who shall be a participant in  the  twenty-five  year  retirement
    13  program  at  the  time  so specified for his or her retirement; shall be
    14  retired pursuant to the  provisions  of  this  section  affording  early
    15  service retirement.
    16    2.  Notwithstanding  the  provisions of subdivision a-1 of section six
    17  hundred three of this article, or any other  provision  of  law  to  the
    18  contrary,  and subject to the provisions of paragraph six of subdivision
    19  e of this section, the early service retirement benefit for participants
    20  in the twenty-five year retirement program who retire pursuant to  para-
    21  graph one of this subdivision shall be a retirement allowance consisting
    22  of:
    23    (i)  an  amount, on account of the required minimum period of service,
    24  equal to fifty percent of his or her final average salary; plus
    25    (ii) an amount on account of allowable service as  a  fire  protection
    26  inspector  member,  or  fraction  thereof,  beyond such required minimum
    27  period of service equal to two percent of his or her  final  salary  for
    28  such  allowable service as a fire protection inspector member during the
    29  period from completion of twenty-five years of allowable  service  as  a
    30  fire  protection  inspector  member to the date of retirement but not to
    31  exceed more than five years of additional service as a  fire  protection
    32  inspector member.
    33    d.  Vesting.  1.  A  participant  in  the  twenty-five year retirement
    34  program:
    35    (i) who discontinues service as such  a  participant,  other  than  by
    36  death or retirement; and
    37    (ii)  in  the case of a participant who is not a New York city revised
    38  plan member, who prior to such discontinuance, completed five  but  less
    39  than twenty-five years of allowable service as a fire protection inspec-
    40  tor  member  or,  in  the  case  of a participant who is a New York city
    41  revised plan member, who prior to such discontinuance, completed ten but
    42  less than twenty-five years of allowable service as  a  fire  protection
    43  inspector member; and
    44    (iii) who, subject to the provisions of paragraph seven of subdivision
    45  e  of  this  section,  has paid, prior to such discontinuance, all addi-
    46  tional member contributions and interest (if any) required  by  subdivi-
    47  sion e of this section; and
    48    (iv)  who does not withdraw in whole or in part his or her accumulated
    49  member contributions pursuant to section six hundred  thirteen  of  this
    50  article unless such participant thereafter returns to public service and
    51  repays  the  amounts  so  withdrawn, together with interest, pursuant to
    52  such section six hundred  thirteen;  shall  be  entitled  to  receive  a
    53  deferred vested benefit as provided in this subdivision.
    54    2. (i) Upon such discontinuance under the conditions and in compliance
    55  with  the provisions of paragraph one of this subdivision, such deferred
    56  vested benefit shall vest automatically.

        A. 7962--A                         12
 
     1    (ii) In the case of a participant who is not a New York  city  revised
     2  plan  member,  such  vested benefit shall become payable on the earliest
     3  date on which such discontinued member could have retired for service if
     4  such discontinuance had not occurred or, in the case  of  a  participant
     5  who  is  a  New York city revised plan member, such vested benefit shall
     6  become payable at age sixty-three. Subject to the  provisions  of  para-
     7  graph seven of subdivision e of this section, such deferred vested bene-
     8  fit shall be a retirement allowance consisting of an amount equal to two
     9  percent  of  such discontinued member's final average salary, multiplied
    10  by the number of years of credited service.
    11    e. Additional member contributions.  1.  In  addition  to  the  member
    12  contributions  required by section six hundred thirteen of this article,
    13  each participant  in  the  twenty-five  year  retirement  program  shall
    14  contribute  to  the  retirement  system  of  which he or she is a member
    15  (subject to the applicable provisions of subdivision d  of  section  six
    16  hundred  thirteen of this article and subject to the limitation provided
    17  for in paragraph two of this subdivision) an additional six and  twenty-
    18  five  one-hundredths  percent of his or her compensation earned from (i)
    19  all allowable service, as a participant in the twenty-five year  retire-
    20  ment  program, rendered on or after the starting date of the twenty-five
    21  year retirement program, and  (ii)  all  allowable  service  after  such
    22  person  ceases to be a participant, but before he or she again becomes a
    23  participant pursuant to paragraph six of subdivision b of this  section.
    24  The  additional  contributions required by this section shall be in lieu
    25  of additional member contributions required by subdivision d of  section
    26  six  hundred  four-c  of this article, as added by chapter ninety-six of
    27  the laws of nineteen hundred ninety-five, and  no  member  making  addi-
    28  tional  contributions pursuant to this section shall be required to make
    29  contributions pursuant to such subdivision  d  of  section  six  hundred
    30  four-c of this article. Notwithstanding the foregoing provisions of this
    31  paragraph,  the  additional  member  contribution required to be paid by
    32  each participant  pursuant  to  this  paragraph  shall  not  exceed  the
    33  percentage  of  his or her compensation that, when added to the contrib-
    34  ution made pursuant to subdivision d of section six hundred thirteen  of
    35  this article, equals nine and twenty-five one-hundredths percent of that
    36  compensation.
    37    2.  A  participant  in  the  twenty-five year retirement program shall
    38  contribute additional member contributions until the later  of  (i)  the
    39  first  anniversary  of the starting date of the twenty-five year retire-
    40  ment program, or (ii) the date on which he or she completes thirty years
    41  of allowable service as a fire protection inspector member.
    42    3. Commencing with the first full payroll  period  after  each  person
    43  becomes  a participant in the twenty-five year retirement program, addi-
    44  tional member contributions at the rate specified in  paragraph  one  of
    45  this subdivision shall be deducted (subject to the applicable provisions
    46  of  subdivision  d of section six hundred thirteen of this article) from
    47  the compensation of such participant on each and every payroll  of  such
    48  participant  for  each  and  every payroll period for which he or she is
    49  such a participant.
    50    4. (i) Each participant in the  twenty-five  year  retirement  program
    51  shall  be charged with a contribution deficiency consisting of the total
    52  amounts of additional member contributions such person  is  required  to
    53  make  pursuant  to  paragraphs one and two of this subdivision which are
    54  not deducted from his or her compensation pursuant to paragraph three of
    55  this subdivision, if any, together  with  interest  thereon,  compounded

        A. 7962--A                         13
 
     1  annually,  and  computed  in  accordance with the provisions of subpara-
     2  graphs (ii) and (iii) of this paragraph.
     3    (ii)  (A)  The interest required to be paid on each such amount speci-
     4  fied in subparagraph (i) of this paragraph shall accrue from the end  of
     5  the  payroll  period for which such amount would have been deducted from
     6  compensation if he or she had been a participant  at  the  beginning  of
     7  that  payroll  period  and  such  deduction  had  been required for such
     8  payroll period, until such amount is paid to the retirement system.
     9    (B) The rate of interest to be applied to each such amount during  the
    10  period  for  which interest accrues on that amount shall be equal to the
    11  rate or rates of interest required by law to be used  during  that  same
    12  period  to  credit  interest on the accumulated deductions of retirement
    13  system members.
    14    (iii) Except as otherwise provided in paragraph five of this  subdivi-
    15  sion,  no interest shall be due on any unpaid additional member contrib-
    16  utions which are not attributable to a period prior to  the  first  full
    17  payroll period referred to in paragraph three of this subdivision.
    18    5.  (i)  Should any person who, pursuant to subparagraph (ii) of para-
    19  graph ten of this subdivision, has received a refund of his or her addi-
    20  tional member contribution including any interest paid on such  contrib-
    21  utions,  again  become  a participant in the twenty-five year retirement
    22  program pursuant to paragraph six of subdivision b of this  section,  an
    23  appropriate  amount shall be included in such participant's contribution
    24  deficiency (including interest thereon as calculated pursuant to subpar-
    25  agraph (ii) of this paragraph) for any credited service for  which  such
    26  person  received  a  refund  of  such  additional  member  contributions
    27  (including any amount of an unpaid loan  balance  deemed  to  have  been
    28  returned  to  such  person pursuant to paragraph twelve of this subdivi-
    29  sion), as if such additional member contributions never had been paid.
    30    (ii)(A) Interest on a participant's  additional  member  contributions
    31  included  in  such  participant's  contribution  deficiency  pursuant to
    32  subparagraph (i) of this paragraph shall be calculated as if such  addi-
    33  tional member contributions had never been paid by such participant, and
    34  such  interest  shall accrue from the end of the payroll period to which
    35  an amount of such additional member contributions is attributable, until
    36  such amount is paid to the retirement system.
    37    (B) The rate of interest to be applied to each such amount during  the
    38  period  for  which interest accrues on that amount shall be five percent
    39  per annum, compounded annually.
    40    6. Where a participant who is otherwise eligible for  service  retire-
    41  ment  pursuant  to  subdivision  c of this section did not, prior to the
    42  effective date of retirement, pay the entire amount  of  a  contribution
    43  deficiency chargeable to him or her pursuant to paragraphs four and five
    44  of  this subdivision, or repay the entire amount of a loan of his or her
    45  additional member contributions pursuant to  paragraph  eleven  of  this
    46  subdivision (including accrued interest on such loan), that participant,
    47  nevertheless,  shall  be eligible to retire pursuant to subdivision c of
    48  this section, provided, however, that such participant's service retire-
    49  ment benefit calculated pursuant to paragraph two of such subdivision  c
    50  of  this  section  shall  be  reduced  by  a life annuity (calculated in
    51  accordance with the method set forth in subdivision  i  of  section  six
    52  hundred thirteen-b of this article) which is actuarially equivalent to:
    53    (i)  the  amount  of  any unpaid contribution deficiency chargeable to
    54  such member pursuant to paragraphs four and five  of  this  subdivision;
    55  plus

        A. 7962--A                         14
 
     1    (ii)  the  amount  of any unpaid balance of a loan of his or her addi-
     2  tional member contributions pursuant to paragraph eleven of this  subdi-
     3  vision (including accrued interest on such loan).
     4    7. Where a participant who is otherwise eligible for a vested right to
     5  a  deferred  benefit  pursuant to subdivision d of this section did not,
     6  prior to the date of discontinuance of service, pay the entire amount of
     7  a contribution deficiency chargeable to him or  her  pursuant  to  para-
     8  graphs  four and five of this subdivision, or repay the entire amount of
     9  a loan of his or her additional member contributions pursuant  to  para-
    10  graph  eleven  of  this  subdivision (including accrued interest on such
    11  loan), that participant, nevertheless, shall have a vested  right  to  a
    12  deferred  benefit  pursuant  to  subdivision d of this section provided,
    13  however, that the deferred vested benefit calculated pursuant  to  para-
    14  graph  two  of  subdivision d of this section shall be reduced by a life
    15  annuity (calculated in accordance with the method set forth in  subdivi-
    16  sion i of section six hundred thirteen-b of this article) which is actu-
    17  arially equivalent to:
    18    (i)  the  amount  of any unpaid contribution chargeable to such member
    19  pursuant to paragraphs four and five of this subdivision; plus
    20    (ii) the amount of any unpaid balance of a loan of his  or  her  addi-
    21  tional  member contributions pursuant to paragraph eleven of this subdi-
    22  vision (including accrued interest on such a loan).
    23    8. The head of a retirement system which includes participants in  the
    24  twenty-five  year  retirement  program in its membership may, consistent
    25  with the provisions of this subdivision, promulgate regulations for  the
    26  payment of such additional member contributions, and any interest there-
    27  on, by such participants (including the deduction of such contributions,
    28  and any interest thereon, from the participant's compensation).
    29    9.  Subject  to  the  provisions  of  paragraphs six and seven of this
    30  subdivision, where a participant has not paid in full  any  contribution
    31  deficiency chargeable to him or her pursuant to paragraphs four and five
    32  of  this  subdivision,  and  a  benefit,  other  than a refund of member
    33  contributions pursuant to section six hundred thirteen of  this  article
    34  or  a refund of additional member contributions pursuant to subparagraph
    35  (ii) of paragraph ten of this subdivision, becomes  payable  under  this
    36  article  to  the  participant or to his or her designated beneficiary or
    37  estate, the actuarial equivalent of any  such  unpaid  amount  shall  be
    38  deducted from the benefit otherwise payable.
    39    10.  (i) Such additional member contributions (and any interest there-
    40  on) shall be paid into the contingent reserve  fund  of  the  retirement
    41  system  of  which  the  participant  is  a  member and shall not for any
    42  purpose be deemed to be member  contributions  or  accumulated  contrib-
    43  utions of a member under section six hundred thirteen of this article or
    44  otherwise  while  he  or  she  is  a participant in the twenty-five year
    45  retirement program or otherwise.
    46    (ii) Should a participant in the twenty-five year  retirement  program
    47  who  has  rendered  less than fifteen years of credited service cease to
    48  hold a position as a fire protection inspector  member  for  any  reason
    49  whatsoever,  his or her accumulated additional member contributions made
    50  pursuant to this subdivision (together with any interest thereon paid to
    51  the retirement system) may be withdrawn by him or her pursuant to proce-
    52  dures promulgated in regulations of the board of trustees of the retire-
    53  ment system, together with interest thereon at the rate of five  percent
    54  per annum, compounded annually.
    55    (iii)  Notwithstanding any other provision of law to the contrary, (A)
    56  no person shall be permitted to withdraw from the retirement system  any

        A. 7962--A                         15
 
     1  additional member contributions paid pursuant to this subdivision or any
     2  interest  paid  thereon,  except  pursuant to and in accordance with the
     3  preceding subparagraphs of this paragraph; and (B) no person,  while  he
     4  or  she  is  a  participant  in the twenty-five year retirement program,
     5  shall be permitted to withdraw any such additional member  contributions
     6  or  any  interest paid thereon pursuant to any of the preceding subpara-
     7  graphs of this paragraph or otherwise.
     8    11. A participant in the twenty-five year retirement program shall  be
     9  permitted  to  borrow  from  his  or her additional member contributions
    10  (including any interest paid thereon) which are credited  to  the  addi-
    11  tional  contributions  account  established  for such participant in the
    12  contingent reserve fund of the retirement  system.  The  borrowing  from
    13  such additional member contributions pursuant to this paragraph shall be
    14  governed by the rights, privileges, obligations and procedures set forth
    15  in  section  six  hundred  thirteen-b  of  this article which govern the
    16  borrowing of member contributions made pursuant to section  six  hundred
    17  thirteen of this article. The board of trustees of the retirement system
    18  may,  consistent  with  the  provisions  of  this  subdivision  and  the
    19  provisions of section six hundred thirteen-b of  this  article  as  made
    20  applicable  to  this  subdivision,  promulgate regulations governing the
    21  borrowing of such additional member contributions.
    22    12. Whenever a person has an unpaid balance of a loan or  his  or  her
    23  additional  member  contributions  pursuant  to paragraph eleven of this
    24  subdivision at the time he or she becomes entitled to a refund of his or
    25  her additional member contributions pursuant  to  subparagraph  (ii)  of
    26  paragraph  ten  of  this  subdivision,  the  amount  of such unpaid loan
    27  balance (including accrued  interest)  shall  be  deemed  to  have  been
    28  returned to such member, and the refund of such additional contributions
    29  shall  be  the  net  amount of such contribution, together with interest
    30  thereon in accordance with the provisions of such subparagraph (ii).
    31    § 5. Subdivision d of section 613 of the retirement and social securi-
    32  ty law is amended by adding a new paragraph 12 to read as follows:
    33    12. (i) The city of New York shall, in the case of a  fire  protection
    34  inspector  member  (as  defined  in  paragraph  one  of subdivision a of
    35  section six hundred four-j of this article) who is a participant in  the
    36  twenty-five  year  retirement  program  (as defined in paragraph four of
    37  subdivision a of such section six hundred four-j), pick up  and  pay  to
    38  the  retirement  system  of which such participant is a member all addi-
    39  tional member contributions which otherwise  would  be  required  to  be
    40  deducted  from such member's compensation pursuant to paragraphs one and
    41  two of subdivision e of such section six hundred four-j of this  article
    42  (not  including  any  additional member contributions due for any period
    43  prior to the first full payroll period referred  to  in  such  paragraph
    44  three  of such subdivision e), and shall effect such pick up in each and
    45  every payroll of such participant for each and every payroll period with
    46  respect to which such  paragraph  three  would  otherwise  require  such
    47  deductions.
    48    (ii)  An amount equal to the amount of additional contributions picked
    49  up pursuant to this paragraph shall be deducted by  such  employer  from
    50  the  compensation  of  such member (as such compensation would be in the
    51  absence of a pick up program applicable to him  or  her  hereunder)  and
    52  shall not be paid to such member.
    53    (iii)  The  additional member contributions picked up pursuant to this
    54  paragraph for any such member shall be paid by such employer in lieu  of
    55  an equal amount of additional member contributions otherwise required to
    56  be  paid by such member under the applicable provisions of subdivision e

        A. 7962--A                         16
 
     1  of section six hundred four-j of this article, and shall be deemed to be
     2  and treated as employer contributions pursuant to section 414(h) of  the
     3  Internal Revenue Code.
     4    (iv)  For  the  purpose  of  determining the retirement system rights,
     5  benefits and privileges of any member whose additional  member  contrib-
     6  utions  are  picked  up pursuant to this paragraph, such picked up addi-
     7  tional member contributions shall be deemed to be and treated as part of
     8  such member's  additional  member  contributions  under  the  applicable
     9  provisions  of subdivision e of section six hundred four-j of this arti-
    10  cle.
    11    (v) With the exception of federal income tax treatment, the additional
    12  member contributions picked up pursuant  to  subparagraph  (i)  of  this
    13  paragraph shall for all other purposes, including computation of retire-
    14  ment  benefits  and  contributions by employers and employees, be deemed
    15  employee  salary.  Nothing  contained  in  this  subdivision  shall   be
    16  construed  as superseding the provisions of section four hundred thirty-
    17  one of this chapter, or any similar provision of law  which  limits  the
    18  salary  base  for  computing  retirement  benefits  payable  by a public
    19  retirement system.
    20    § 6. Section 13-125.2 of the administrative code of the  city  of  New
    21  York is amended by adding a new subdivision a-9 to read as follows:
    22    a-9. Notwithstanding any other provision of law to the contrary, on or
    23  after  the  starting date for pick up, the employer responsible for pick
    24  up shall, in the case of a fire protection inspector member (as  defined
    25  in  paragraph  two of subdivision a of section four hundred forty-five-j
    26  of the retirement and social security law) who is a participant  in  the
    27  twenty-five  year  improved  benefit  retirement  program (as defined in
    28  paragraph three of such subdivision a), pick up and pay to  the  retire-
    29  ment system all additional member contributions which otherwise would be
    30  required  to  be  deducted  from  such member's compensation pursuant to
    31  subdivision d of such  section  four  hundred  forty-five-j,  and  shall
    32  effect  such  pick  up on each and every payroll of such participant for
    33  each and every payroll period with respect to which such  subdivision  d
    34  would otherwise require such deductions.
    35    §  7.  Subparagraph  (ii)  of  paragraph 1 of subdivision c of section
    36  13-125.2 of the administrative code of the city of New York, as  amended
    37  by chapter 682 of the laws of 2003, is amended to read as follows:
    38    (ii)  the  determination of the amount of such member's Tier I or Tier
    39  II nonuniformed-force member contributions eligible for pick up  by  the
    40  employer  or  additional  member  contributions required to be picked up
    41  pursuant to subdivision a-one, subdivision a-two,  subdivision  a-three,
    42  subdivision  a-four,  subdivision a-five, subdivision a-six, subdivision
    43  a-seven or subdivision a-eight of this section, or subdivision a-nine of
    44  this section; and
    45    § 8. Subdivision d of section 13-125.2 of the administrative  code  of
    46  the city of New York is amended by adding a new paragraph 2-h to read as
    47  follows:
    48    (2-h)  For  the  purpose  of determining the retirement system rights,
    49  benefits and privileges of any member who is a participant in the  twen-
    50  ty-five year retirement program (as defined in paragraph three of subdi-
    51  vision  a  of  section  four  hundred forty-five-j of the retirement and
    52  social security  law),  the  additional  member  contributions  of  such
    53  participant  picked  up  pursuant  to subdivision a-nine of this section
    54  shall be deemed to be and treated as a part of such member's  additional
    55  contributions  under  subdivision  d of such section four hundred forty-
    56  five-j.

        A. 7962--A                         17
 
     1    § 9. Paragraph 3 of subdivision d of section 13-125.2 of the  adminis-
     2  trative  code  of the city of New York, as amended by chapter 682 of the
     3  laws of 2003, is amended to read as follows:
     4    (3)  Interest  on  contributions  picked  up for any Tier I or Tier II
     5  non-uniformed-force member pursuant to this section  (other  than  addi-
     6  tional  member  contributions  picked  up pursuant to subdivision a-one,
     7  subdivision a-two, subdivision a-three, subdivision a-four,  subdivision
     8  a-five,   subdivision   a-six,  subdivision  a-seven  [or],  subdivision
     9  a-eight, or subdivision a-nine of this section) shall accrue in favor of
    10  the member and be payable to the retirement system at the same rate, for
    11  the same time periods, in the same manner and  under  the  same  circum-
    12  stances  as  interest would be required to accrue in favor of the member
    13  and be payable to the retirement system on such  contributions  if  they
    14  were  made by such member in the absence of a pick up program applicable
    15  to such member under the provisions of this section.
    16    § 10. Subdivision a of section 603 of the retirement and social  secu-
    17  rity  law,  as  amended by chapter 18 of the laws of 2012, is amended to
    18  read as follows:
    19    a. The service retirement benefit specified  in  section  six  hundred
    20  four  of this article shall be payable to members who have met the mini-
    21  mum service requirements upon retirement and attainment  of  age  sixty-
    22  two,  other  than  members who are eligible for early service retirement
    23  pursuant to subdivision c of section six hundred four-b of this article,
    24  subdivision c of section six hundred four-c of this article, subdivision
    25  d of section six hundred  four-d  of  this  article,  subdivision  c  of
    26  section six hundred four-e of this article, subdivision c of section six
    27  hundred  four-f  of  this  article, subdivision c of section six hundred
    28  four-g of this article, subdivision c of section six hundred  four-h  of
    29  this  article  [or]  subdivision c of section six hundred four-i of this
    30  article, or subdivision c of section six hundred four-j of this article,
    31  provided, however, a member of a teachers' retirement system or the  New
    32  York  state  and local employees' retirement system who first joins such
    33  system before January first, two thousand ten  or  a  member  who  is  a
    34  uniformed  court  officer or peace officer employed by the unified court
    35  system who first becomes a member  of  the  New  York  state  and  local
    36  employees' retirement system before April first, two thousand twelve may
    37  retire  without  reduction of his or her retirement benefit upon attain-
    38  ment of at least fifty-five years of age and  completion  of  thirty  or
    39  more years of service, provided, however, that a uniformed court officer
    40  or  peace officer employed by the unified court system who first becomes
    41  a member of the New York state and local employees' retirement system on
    42  or after January first, two thousand ten and retires  without  reduction
    43  of  his or her retirement benefit upon attainment of at least fifty-five
    44  years of age and completion of thirty or more years of service  pursuant
    45  to  this  section  shall  be  required  to make the member contributions
    46  required by subdivision f of section six hundred thirteen of this  arti-
    47  cle  for  all years of credited and creditable service, provided further
    48  that the [the] preceding provisions of this subdivision shall not  apply
    49  to a New York city revised plan member.
    50    §  11. Nothing contained in sections five and ten of this act shall be
    51  construed to create any contractual right with  respect  to  members  to
    52  whom  such sections apply.  The provisions of such sections are intended
    53  to afford members the advantages of certain benefits  contained  in  the
    54  internal  revenue  code,  and  the  effectiveness  and existence of such
    55  sections and benefits they confer are completely contingent thereon.
    56    § 12. This act shall take effect immediately, provided, however that:

        A. 7962--A                         18
 
     1    (a) The provisions of sections five and ten of this act  shall  remain
     2  in  full  force  and  effect  only  so long as, pursuant to federal law,
     3  contributions picked up under such sections are not includable as  gross
     4  income  of a member for federal income tax purposes until distributed or
     5  made available to the member; provided that the New York city employees'
     6  retirement  system shall notify the legislative bill drafting commission
     7  upon the occurrence of such a change in federal law ruling affecting the
     8  provisions of this act in order that  the  commission  may  maintain  an
     9  accurate and timely effective data base of the official text of the laws
    10  of  the  state of New York in furtherance of effectuating the provisions
    11  of section 44 of the legislative law and  section  70-b  of  the  public
    12  officers law;
    13    (b)  The  amendments to section 13-125.2 of the administrative code of
    14  the city of New York made by sections six, seven,  eight,  and  nine  of
    15  this  act  shall  not affect the expiration of such section and shall be
    16  deemed to expire therewith; and
    17    (c) The amendments to subdivision a of section 603 of  the  retirement
    18  and social security law made by section ten of this act shall not affect
    19  the  expiration of such subdivision and shall be deemed to expire there-
    20  with.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY OF BILL: This proposed legislation would amend  Administrative
        Code of the City of New York (ACCNY) Section 13-125.2 and Retirement and
        Social  Security  Law  (RSSL)  Sections  444, 445, 603, and 613, and add
        ACCNY Section 13-157.5 and RSSL Sections 445-j and 604-j to establish  a
        25-Year  Retirement  Program for Fire Protection Inspectors (FPI 25-Year
        Plan) for each tier.
          Effective Date: Upon enactment.
          BACKGROUND: Members whose duties are one of the following are eligible
        to participate in the FPI 25-Year Plans:
          * Fire Protection Inspector,
          * Associate Fire Protection Inspector,
          * Supervisor of employees whose duties are those of a fire  protection
        inspector, and
          *  Supervisor of employees whose duties are those of an associate fire
        protection inspector.
          For the purposes of this Fiscal Note, these members  are  collectively
        referred to as "Fire Protection Inspectors."
          Participation in an applicable FPI 25-Year Plan is optional for anyone
        who  is eligible to participate in such Plan on the date of enactment by
        filing an election form within 180 days of enactment. Anyone who  is  an
        existing  member  of  the  New  York  City  Employees' Retirement System
        (NYCERS) on the date of enactment and subsequently becomes employed as a
        Fire Protection Inspector also has 180 days to elect to join the  appli-
        cable FPI 25-Year Plan.
          Any  Fire  Protection  Inspector who becomes a NYCERS member after the
        date of enactment is mandated into the Tier 6 FPI 25-Year Plan. However,
        if the member exceeds age 25 upon being mandated into  the  FPI  25-Year
        Plan,  the  member  has  the  option, within 180 days of becoming a Fire
        Protection Inspector, to elect not to participate.
          IMPACT ON BENEFITS: Currently, Fire  Protection  Inspectors  generally
        participate  in one of the NYCERS general plans (i.e., basic Tier 4 62/5
        Plan, Tier 6 63/10 Plan, or Improved Tier 4  57/5,  55/25  Plans).  Note
        that since there are no active Tier 2 Fire Protection Inspectors remain-
        ing,  the  following  summary of the FPI 25-Year Plans is for Tier 4 and
        Tier 6 members only.

        A. 7962--A                         19
 
          The proposed legislation, if  enacted,  would  provide  the  following
        benefits to Fire Protection Inspectors under the FPI 25-Year Plans:
          * Service retirement benefit:
          o  50%  of Final Average Salary (FAS) for the first 25 years of Allow-
        able Service, plus
          o 2% of FAS for each additional year of Allowable Service, or fraction
        thereof, exceeding 25 years up to a maximum of 30 years of such service.
          * Final Average Salary:
          o Tier 4 - Three Year Average (FAS3).
          o Tier 6 - Five Year Average (FAS5).
          * Vested benefit:
          o Eligibility:
          * Tier 4 - At least  five,  but  less  than  25,  years  of  Allowable
        Service.
          * Tier 6 - At least 10, but less than 25, years of Allowable Service.
          o Payable at:
          * Tier 4 - The date the member would have completed 25 years of Allow-
        able Service.
          * Tier 6 - Age 63.
          o Amount:
          * 2% of FAS for each year of Allowable Service.
          *  Other benefits: Members of the proposed FPI 25-Year Plans are enti-
        tled to the same disability and death benefits as other Tier 4 and  Tier
        6 members under the respective basic plans.
          ADDITIONAL  MEMBER  CONTRIBUTIONS:  Members of an FPI 25-Year Plan are
        required to make, in addition to the Tier 4 Basic  Member  Contributions
        (BMC)  of  3%  and  the  Tier  6  BMC ranging from 3% to 6% depending on
        defined salary scales, Additional Member Contributions  (AMC)  equal  to
        6.25% of compensation for all service as a Plan participant on and after
        the  starting  date of the Plan until the later of the one-year anniver-
        sary of the effective date  of  the  Plans  or  30  years  of  Allowable
        Service. In no event shall BMC plus AMC exceed 9.25% of compensation.
          FINANCIAL  IMPACT  - PRESENT VALUES: Based on the anticipated group of
        members joining the FPI 25-Year Plans and the actuarial assumptions  and
        methods  described  herein,  the  enactment of this proposed legislation
        would increase the Present Value of Future Benefits (PVFB)  by  approxi-
        mately  $2.6  million  and increase the Present Value of member contrib-
        utions by approximately $1.4 million. The net result is an  increase  in
        the Present Value of future employer contributions of approximately $1.2
        million.
          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 $1.1 million plus an increase
        in the Present Value of future employer Normal Cost of $0.1 million.
          FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In  accordance  with
        Section  13-638.2(k-2)  of  the  ACCNY,  new UAL attributable to benefit
        changes are to be amortized as determined by the Actuary but are  gener-
        ally  amortized over the remaining working lifetime of those impacted by
        the benefit changes. As of June 30, 2021, the remaining working lifetime
        of the Fire Protection Inspectors assumed to join the FPI 25-Year  Plans
        is approximately 12 years.
          For  the  purposes  of this Fiscal Note, the increase in UAL was amor-
        tized over a 12-year period (eleven  payments  under  the  One-Year  Lag
        Methodology  (OYLM))  using level dollar payments. This payment plus the
        increase in the Normal Cost results in an increase  in  annual  employer
        contributions of approximately $290,000 each year.

        A. 7962--A                         20
 
          CONTRIBUTION  TIMING:  For  the  purposes  of  this Fiscal Note, it is
        assumed that the  changes  in  the  Present  Value  of  future  employer
        contributions  and  annual employer contributions would be reflected for
        the first time in the Preliminary June 30, 2022 actuarial  valuation  of
        NYCERS.  In accordance with the OYLM used to determine employer contrib-
        utions, the increase in employer contributions would first be  reflected
        in Fiscal Year 2024.
          CENSUS  DATA:  The  estimates presented herein are based on the census
        data used in the Preliminary June 30, 2021 (Lag) actuarial valuation  of
        NYCERS  to  determine the Preliminary Fiscal Year 2023 employer contrib-
        utions.
          The 66 NYCERS Fire Protection Inspectors as of June 30,  2021  assumed
        to  join  the FPI 25-Year Plans had an average age of approximately 42.3
        years, average service of approximately 15.2 years, and an average sala-
        ry of approximately $79,700.
          ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of
        future  employer  contributions  and   annual   employer   contributions
        presented herein have been calculated based on the actuarial assumptions
        and  methods in effect for the Preliminary June 30, 2021 (Lag) actuarial
        valuations used to determine the Preliminary Fiscal Year  2023  employer
        contributions of NYCERS.
          To  determine the impact of the elective nature of the proposed legis-
        lation, a subgroup of NYCERS Fire Protection  Inspectors  was  developed
        based  on  who  could  potentially  benefit actuarially. The net Present
        Value of future employer costs (i.e., the PVFB less the Present Value of
        future member contributions) of each  member's  benefit  was  determined
        under  their  current plan and under the applicable FPI 25-Year Plan. If
        the net Present Value of future employer cost under the FPI 25-Year Plan
        was greater than or equal to the Present Value of future  employer  cost
        under  the member's current plan, the member was deemed to benefit actu-
        arially.
          Based on this analysis, it was determined that those members  who  are
        mandated  into  the  FPI  25-Year  Plan in the future will generally not
        benefit under the Plan (i.e., they will have a decrease in Present Value
        of future employer costs as compared to the Tier 6 63/10 Plan they would
        otherwise participate in, absent this proposed legislation), and  there-
        fore the costs presented in this Fiscal Note are borne only from current
        NYCERS  members  who  are assumed to benefit from, and thus opt to join,
        the FPI-25 Year Plan.
          RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
        highly  on the realization of the actuarial assumptions used, as well as
        certain  demographic  characteristics  of  NYCERS  and  other  exogenous
        factors  such  as  investment,  contribution, and other risks. If actual
        experience deviates from actuarial assumptions, the actual  costs  could
        differ  from  those  presented  herein.  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.
          STATEMENT  OF  ACTUARIAL  OPINION: I, Michael J. Samet, am the Interim
        Chief Actuary for, and independent of,  the  New  York  City  Retirement
        Systems and Pension Funds. I am a Fellow of the Society of Actuaries and

        A. 7962--A                         21
 
        a  Member of the American Academy of Actuaries. 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 2022-37 dated April 27,
        2022 was prepared by the Interim Chief Actuary for  the  New  York  City
        Employees'  Retirement  System.  This  estimate is intended for use only
        during the 2022 Legislative Session.
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