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A10029 Summary:

BILL NOA10029
 
SAME ASSAME AS S06980-B
 
SPONSORAbbate
 
COSPNSRColton, Griffin
 
MLTSPNSR
 
Amd §513, R & SS L
 
Authorizes police/fire members of the New York city fire department pension fund to obtain credit for certain prior service as an EMT member.
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A10029 Actions:

BILL NOA10029
 
04/29/2022referred to governmental employees
05/25/2022reported referred to ways and means
05/25/2022reported referred to rules
05/31/2022reported
05/31/2022rules report cal.490
05/31/2022substituted by s6980b
 S06980 AMEND=B GOUNARDES
 05/20/2021REFERRED TO CIVIL SERVICE AND PENSIONS
 06/14/2021AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
 06/14/2021PRINT NUMBER 6980A
 01/05/2022REFERRED TO CIVIL SERVICE AND PENSIONS
 04/21/2022AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
 04/21/2022PRINT NUMBER 6980B
 05/10/2022REPORTED AND COMMITTED TO FINANCE
 05/17/2022REPORTED AND COMMITTED TO RULES
 05/23/2022ORDERED TO THIRD READING CAL.1432
 05/25/2022HOME RULE REQUEST
 05/25/2022PASSED SENATE
 05/25/2022DELIVERED TO ASSEMBLY
 05/25/2022referred to ways and means
 05/31/2022substituted for a10029
 05/31/2022ordered to third reading rules cal.490
 05/31/2022home rule request
 05/31/2022passed assembly
 05/31/2022returned to senate
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A10029 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10029
 
SPONSOR: Abbate
  TITLE OF BILL: An act to amend the retirement and social security law, in relation to authorizing police/fire members of the New York city fire department pension fund to obtain credit for service as an EMT member   SUMMARY OF PROVISIONS: Section one of this bill amends paragraph 2 of section 513 of the Retirement and Social Security Law. Section two sets the effective date.   JUSTIFICATION: This bill will give Tier III members of the New York City Fire Depart- ment Pension Fund who have prior creditable service as an Emergency Medical Technician with the Fire Department of the City of New York the ability to receive Fire Department Pension service credit for such service and have it apply to their minimum number of years needed for a vested, early, or regular service retirement. This will provide parity with Tier II firefighters who are already able to purchase time for EMT service. This bill aims to correct this discrepancy between tiers by allowing Tier III firefighters to purchase EMT time.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: See bill.   EFFECTIVE DATE: This act shall take effect immediately.
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A10029 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10029
 
                   IN ASSEMBLY
 
                                     April 29, 2022
                                       ___________
 
        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on Governmental Employees
 
        AN  ACT  to amend the retirement and social security law, in relation to
          authorizing police/fire members of the New York city  fire  department
          pension fund to obtain credit for service as an EMT member
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 2 of subdivision c of section 513 of the  retire-
     2  ment  and  social  security  law, as added by chapter 890 of the laws of
     3  1976, is amended to read as follows:
     4    2. (i) A police/fire member shall be eligible  to  obtain  credit  for
     5  service  with  a public employer described in paragraph one only if such
     6  service, if rendered prior to July first, nineteen  hundred  seventy-six
     7  by  a police/fire member who was subject to article eleven of this chap-
     8  ter, would have been eligible for credit in the  police/fire  retirement
     9  system or plan involved.
    10    (ii)  Notwithstanding  any  other  provision of law to the contrary, a
    11  member of the New York city fire department pension fund subject to this
    12  article shall be eligible to obtain credit for any period  of  allowable
    13  service  rendered as an EMT member, as such term is defined in paragraph
    14  one of subdivision a of section six hundred four-e of this  chapter,  as
    15  added  by  chapter  577  of the laws of 2000, which immediately precedes
    16  service in the uniformed force of the fire department and  such  service
    17  shall  be  deemed  to  be  in service of the uniformed force of the fire
    18  department for purposes of eligibility for benefits and to determine the
    19  amount of benefits under the New York city fire department pension fund,
    20  provided that such member pays or transfers into the New York city  fire
    21  department  pension  fund  all member contributions set forth in section
    22  five hundred seventeen of this article plus interest, at a rate of  five
    23  percent  per  annum.  For a member who transfers such contributions from
    24  the New York city employees' retirement system to the New York city fire
    25  department pension fund or for a member who withdraws such contributions
    26  from the New York  city  employees'  retirement  system,  such  member's
    27  membership in the New York city employees' retirement system shall cease
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07873-06-2

        A. 10029                            2
 
     1  upon such transfer or withdrawal and such member shall retain no credit-
     2  ed service in such system.
     3    (iii)  The  provisions  of this paragraph shall apply to a member with
     4  ten or more years of credited service in the New  York  city  employees'
     5  retirement system, notwithstanding the provisions of section six hundred
     6  thirteen of this chapter or any other provision of law to the contrary.
     7    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY  OF  BILL: This proposed legislation would amend subdivision c
        of section 513 of the Retirement and Social Security Law (RSSL) to allow
        New York City Fire Pension Fund (FIRE) members  subject  to  Article  14
        (Tier  3, Tier 3 Modified, and Tier 3 Enhanced) to obtain service credit
        for service rendered as an emergency medical technician (EMT)  with  the
        New  York  City  Employee's  Retirement System (NYCERS) that immediately
        precedes service in FIRE. If properly  transferred  or  purchased,  such
        service  shall  be deemed to be FIRE service for purposes of determining
        the eligibility for benefits (including the determination of the  number
        of  years  of required member contributions) and for determining benefit
        amounts.
          Effective Date: Upon enactment.
          BACKGROUND: Currently, the purchase or transfer of service rendered as
        a NYCERS EMT member does not provide an  additional  service  retirement
        benefit for FIRE members subject to Article 14.
          IMPACT  ON  BENEFITS:  Under  the  proposed legislation, eligible FIRE
        members would be able to purchase or transfer service earned as  an  EMT
        member  and  have  that  service  count  for purposes of determining the
        eligibility for benefits and for determining benefit  amounts  in  FIRE.
        Upon  attaining  eligible  service  credit  with  FIRE, the member would
        relinquish prior membership and applicable benefits with NYCERS.
          IMPACT ON PAYABILITY: Including EMT service towards eligibility  would
        increase and/or accelerate the payability date of benefits.
          MEMBER  CONTRIBUTIONS:  Eligible  FIRE  members with EMT service imme-
        diately preceding their FIRE service would have to pay, via purchase  or
        transfer  from  NYCERS, applicable Article 14 member contributions, plus
        5.0% annual interest for such purchased or transferred  service.  Member
        contributions  made as a NYCERS EMT member that exceed the amount needed
        for the applicable Article 14 contributions with interest would, if  not
        otherwise  utilized for a separate vested benefit, be refunded with 5.0%
        annual interest.
          FINANCIAL IMPACT - PRESENT VALUES: Based on the census  data  and  the
        actuarial  assumptions  and  methods  described herein, the enactment of
        this proposed legislation would increase the  Present  Value  of  Future
        Benefits  (PVFB) by approximately $14.9 million and decrease the Present
        Value of member contributions of approximately  $0.9  million.  The  net
        result  is  an increase in the Present Value of future employer contrib-
        utions of approximately $15.8 million.
          Under the Entry Age Normal cost method used to determine the  employer
        contributions  to  FIRE,  there  would  be  an  increase in the Unfunded
        Accrued Liability (UAL) of  approximately  $33.5  million  offset  by  a
        decrease  in  the  Present Value of future employer Normal Cost of $17.7
        million.
          FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In  accordance  with
        Section 13-638.2(k-2) of the Administrative Code of the City of New York
        (ACCNY) , new UAL attributable to benefit changes are to be amortized as
        determined by the Actuary but are generally amortized over the remaining
        working  lifetime  of  those impacted by the benefit changes. As of June

        A. 10029                            3
 
        30, 2021, the remaining working lifetime of  the  current  FIRE  Tier  3
        members potentially eligible to purchase EMT service is approximately 20
        years.
          For  the  purposes  of this Fiscal Note, the increase in UAL was amor-
        tized over a 20-year period (19 payments under the One-Year Lag  Method-
        ology  (OYLM))  using  level  dollar  payments. This payment offset by a
        decrease in the Normal Cost results in an increase  in  annual  employer
        contributions of approximately $3.2 million each year. The average annu-
        al employer cost per member included in this fiscal note is approximate-
        ly $2,600 per year.
          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 Final June 30, 2021 actuarial valuation  of  FIRE.
        In  accordance  with  the OYLM used to determine employer contributions,
        the increase in employer  contributions  would  first  be  reflected  in
        Fiscal Year 2023.
          CENSUS  DATA:  The  estimates presented herein are based on the census
        data used in the June 30, 2021 (Lag)  actuarial  valuation  of  FIRE  to
        determine the Preliminary Fiscal Year 2023 employer contributions.
          There are an estimated 1,224 active FIRE Tier 3 members as of June 30,
        2021  who  could  potentially  benefit  from the proposed legislation by
        purchasing service earned as an EMT member. These active members had  an
        average age of approximately 31.5 years, average service of approximate-
        ly  4.5 years (before purchasing any additional service), and an average
        salary of approximately $89,000. On average, the 1,224 active FIRE  Tier
        3  members  would  be able to purchase 3.0 years of service earned as an
        EMT member with an estimated purchase cost  of  $8,300  per  former  EMT
        member as of June 30, 2021.
          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 June 30, 2021 (Lag)  actuarial  valuations
        used  to  determine  the  Preliminary Fiscal Year 2023 employer contrib-
        utions of FIRE.
          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 FIRE 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 meth-
        ods 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 employer costs for service  purchased  by  future  FIRE  Tier  3
        members  for  service  earned as an EMT member. However, as noted above,
        the average annual employer cost per member included in this Fiscal Note
        is approximately $2,600 per year.
          * The  initial,  additional  administrative  costs  to  implement  the
        proposed legislation.
          *  The  impact  of  this  proposed legislation on Other Postemployment
        Benefit 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. 10029                            4
 
        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 2022-29 dated April 20,
        2022 was prepared by the Interim Chief Actuary for  the  New  York  City
        Fire  Pension  Fund.  This  estimate is intended for use only during the
        2022 Legislative Session.
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