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A07791 Summary:

BILL NOA07791A
 
SAME ASSAME AS S07714-A
 
SPONSORPheffer Amato
 
COSPNSRFall, Berger, Braunstein, Lavine, Stern, Colton, Sayegh, Williams
 
MLTSPNSR
 
Amd §§501, 503 & 505, R & SS L
 
Restores 20 year service retirement for New York city police officers.
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A07791 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7791--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 15, 2023
                                       ___________
 
        Introduced  by M. of A. PHEFFER AMATO, FALL, BERGER, BRAUNSTEIN, LAVINE,
          STERN, COLTON -- read once and referred to the  Committee  on  Govern-
          mental  Employees  --  recommitted  to  the  Committee on Governmental
          Employees in accordance with Assembly Rule  3,  sec.  2  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
 
        AN  ACT  to amend the retirement and social security law, in relation to
          the restoration of 20 year service retirement for New York city police
          officers
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Subdivision 17 of section 501 of the retirement and social
     2  security law, as amended by chapter 18 of the laws of 2012,  is  amended
     3  to read as follows:
     4    17.  "Normal  retirement  age"  shall  be  age  sixty-two, for general
     5  members, and the age at which a member completes or would have completed
     6  twenty-two years of service, for  police/fire  members,  New  York  city
     7  uniformed  correction/sanitation  revised  plan members and investigator
     8  revised plan members, except that for police/fire  members  of  the  New
     9  York city police pension fund, normal retirement age shall be the age at
    10  which  a  member  completes  or  would  have  completed  twenty years of
    11  service.
    12    § 2. Subdivision d of section 503 of the retirement and social securi-
    13  ty law, as amended by chapter 18 of the laws of 2012, is amended to read
    14  as follows:
    15    d. The normal service retirement benefit  specified  in  section  five
    16  hundred  five  of this article shall be paid to police/fire members, New
    17  York city  uniformed  correction/sanitation  revised  plan  members  and
    18  investigator  revised plan members without regard to age upon retirement
    19  after twenty-two years  of  service,  except  that  the  normal  service
    20  retirement  benefit specified in section five hundred five of this arti-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11368-03-4

        A. 7791--A                          2
 
     1  cle shall be paid to police/fire members of the  New  York  city  police
     2  pension  fund,  after twenty years of service.  Early service retirement
     3  shall be permitted  upon  retirement  after  twenty  years  of  credited
     4  service or attainment of age sixty-two, provided, however, that New York
     5  city   police/fire   revised  plan  members,  New  York  city  uniformed
     6  correction/sanitation revised plan members and investigator revised plan
     7  members shall not be eligible to retire for service prior to the attain-
     8  ment of twenty years of credited service.
     9    § 3. Section 505 of the retirement and social security law is  amended
    10  by adding a new subdivision d to read as follows:
    11    d.  Notwithstanding  anything  to  the  contrary  in  any  other  law,
    12  police/fire members of the New York city police pension  fund  shall  be
    13  eligible  for  a  normal  service retirement benefit in lieu of an early
    14  service retirement benefit  upon  completing  twenty  years  of  service
    15  pursuant to subdivision d of section five hundred three of this article.
    16    § 4. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY:  This proposed legislation would reduce the Normal Retirement
        Age for Tier 3 original, revised, and enhanced plan members of  the  New
        York  City  Police Pension Fund (POLICE) to be the age at which a member
        completes or would have completed twenty years of service.
 
                 EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                  by Fiscal Year for the first 25 years ($ in Millions)
                            Year      POLICE
                            2025        12.5
                            2026        13.3
                            2027        14.4
                            2028        15.6
                            2029        16.7
                            2030        17.9
                            2031        18.9
                            2032        19.8
                            2033        20.7
                            2034        21.5
                            2035        22.4
                            2036        23.2
                            2037        24.1
                            2038        24.8
                            2039        25.6
                            2040        26.4
                            2041        22.1
                            2042        22.9
                            2043        23.7
                            2044        24.5
                            2045        25.2
                            2046        26.0
                            2047        26.7
                            2048        27.4
                            2049        28.2
           Employer Contribution impact beyond Fiscal Year 2049 is not shown.
         Projected contributions include future new hires that may be impacted.
 
          The entire increase in employer contributions will be allocated to New
        York City.

        A. 7791--A                          3
 
                  INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                           as of June 30, 2023 ($ in Millions)
                     Present Value (PV)                 POLICE
                     PV of Benefits:                    85.0
                     PV of Employee Contributions:      (9.1)
                     PV of Employer Contributions:      94.0
                     Unfunded Accrued Liabilities:      45.6
 
                       AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                        POLICE
                     Number of Payments:                16
                     Fiscal Year of Last Payment:       2040
                     Amortization Payment:              5.0 M
 
          Unfunded  Accrued Liability increases were amortized over the expected
        remaining working lifetime of those  impacted  by  the  benefit  changes
        using level dollar payments.
          CENSUS  DATA:  The estimates presented herein are based on preliminary
        census data collected as of June 30,  2023.  The  census  data  for  the
        impacted population is summarized below.

                                                        POLICE
                     Active Members
                     - Number Count:                    20,176
                     - Average Age:                     32.8
                     - Average Service:                 6.1
                     - Average Salary:                  107,600
 
          IMPACT ON MEMBER BENEFITS: Currently, Tier 3 POLICE members who retire
        with  at  least  20  years  of service are eligible to receive an annual
        benefit that is equal to 42% of Final Average Salary (FAS),  plus  0.33%
        of FAS for each month of service (up to 24 months) in excess of 20 years
        of  service,  resulting  in  a  benefit  of 50% of FAS after 22 years of
        service.
          Under the proposed legislation, Tier 3 POLICE members who retire  with
        at  least  20  years  of  service would be eligible to receive an annual
        benefit that is equal to 50% of FAS.
          ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
        calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
        of the impacted retirement systems except for:
          * Retirement rates were adjusted to reflect the earlier payability  of
        the service retirement benefit associated with the proposed legislation.
          *  New  entrants were assumed to replace exiting members so that total
        payroll increases by 3% each year for impacted groups. New entrant demo-
        graphics were developed based on data for recent new hires and actuarial
        judgement.
          RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
        highly  on  the  actuarial  assumptions, methods, and models used, demo-
        graphics of the impacted population and other factors  such  as  invest-
        ment,  contribution, and other risks. If actual experience deviates from
        actuarial  assumptions,  the  actual  costs  could  differ  from   those
        presented  herein.  Quantifying  these risks is beyond the scope of this
        Fiscal Note.
          This Fiscal Note is intended to measure  pension-related  impacts  and
        does  not  include other potential costs (e.g., administrative and Other
        Postemployment Benefits).

        A. 7791--A                          4
 
          STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
        sky are members of the Society of Actuaries and the American Academy  of
        Actuaries.  We  are  members of NYCERS but do not believe it impairs our
        objectivity and we meet the  Qualification  Standards  of  the  American
        Academy  of  Actuaries to render the actuarial opinion contained herein.
        To the best of our knowledge, the results  contained  herein  have  been
        prepared  in accordance with generally accepted actuarial principles and
        procedures and with the Actuarial Standards of Practice  issued  by  the
        Actuarial Standards Board.
          FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-13 dated February 7,
        2024  was prepared by the Chief Actuary for the New York City Retirement
        Systems and Pension Funds. This estimate is intended for use only during
        the 2024 Legislative Session.
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