Relates to the calculation of past service credit for police officers employed by the division of law enforcement in the department of environmental protection in the city of New York transferring between the New York city employees' retirement system to the New York state and local police and fire retirement system.
STATE OF NEW YORK
________________________________________________________________________
9633--A
IN ASSEMBLY
March 26, 2024
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the retirement and social security law, in relation to
the calculation of past service credit for police officers employed by
the division of law enforcement in the department of environmental
protection in the city of New York transferring between the New York
city employees' retirement system to the New York state and local
police and fire retirement system
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 343 of the retirement and social security law is
2 amended by adding a new subdivision i to read as follows:
3 i. 1. Notwithstanding any other law, rule or regulation to the contra-
4 ry, for any police officer employed by the division of law enforcement
5 in the department of environmental protection in the city of New York
6 transferring from the New York city employees' retirement system to the
7 New York state and local police and fire retirement system after the
8 effective date of this subdivision and any police officer formerly
9 employed by the division of law enforcement in the department of envi-
10 ronmental protection in the city of New York having made such transfer,
11 such police officer's division of law enforcement in the department of
12 environmental protection in the city of New York service credit shall be
13 deemed creditable service, in such police officer's twenty year or twen-
14 ty-five year retirement plan, if such police officer has served for at
15 least two years in such employment and if, within one year of the date
16 on which he or she first became a member of the New York state and local
17 police and fire retirement system or within one year of the effective
18 date of this subdivision, such member elects to do so.
19 2. The amount of such service credited to the member in the New York
20 state and local police and fire retirement system plan shall not exceed
21 the amount of service credited to the member in the New York city
22 employees' retirement system plan.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03776-05-4
A. 9633--A 2
1 3. If the member subsequently retires on an age-based retirement plan
2 in the New York state and local police and fire retirement system
3 instead of a twenty year or twenty-five year plan, the full amount of
4 service credit earned, as a police officer employed by the division of
5 law enforcement in the department of environmental protection in the
6 city of New York shall be granted.
7 4. In no event shall the division of law enforcement in the department
8 of environmental protection in the city of New York service credited to
9 a member of the New York state and local police and fire retirement
10 system pursuant to this subdivision exceed a total of ten years.
11 5. Notwithstanding any other provision of law in this section to the
12 contrary, the reserve on such member's benefits shall be transferred
13 from the New York city employees' retirement system to the New York
14 state and local police and fire retirement system in accordance with
15 subdivisions c and d of this section.
16 6. No member who receives service credit pursuant to this subdivision
17 shall be eligible to receive additional service credit pursuant to
18 subdivision b of section three hundred eighty-four-e of this article if
19 his or her employer has elected to provide such service credit.
20 § 2. This act shall take effect on the sixtieth day after it shall
21 have become a law.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would expand the definition of service creditable under
20-year and 25-year plans in the New York State and Local Police and
Fire Retirement System (NYSLPFRS) to include service transferred by any
police officer employed or formerly employed by the Division of Law
Enforcement in the Department of Environmental Protection in the City of
New York, provided that such police officer has at least two years of
such employment. The member must elect to obtain the service credit
within one year of the date on which they first became a member of the
NYSLPFRS or within one year of the effective date of this bill, whichev-
er occurs later. The amount of service credit received in the NYSLPFRS
shall not exceed the minimum of the amount of service credited to the
member in the New York City Employees' Retirement System (NYCERS) plan
or 10 years.
If this bill is enacted during the 2024 Legislative Session, it is
estimated that the past service cost will average approximately 25% of
an affected member's salary for each year of additional service that is
credited on a 20-year or 25-year plan. This cost will be offset by any
reserves transferred from the NYCERS. The remaining cost will be shared
by the State of New York and the participating employers in the
NYSLPFRS.
The exact number of current members as well as future members who
could be affected by this legislation cannot be readily determined.
Summary of relevant resources:
Membership data as of March 31, 2023 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2023 actuari-
al valuation. Distributions and other statistics can be found in the
2023 Report of the Actuary and the 2023 Annual Comprehensive Financial
Report.
The actuarial assumptions and methods used are described in the 2023
Annual Report to the Comptroller on Actuarial Assumptions, and the
Codes, Rules and Regulations of the State of New York: Audit and
Control.
A. 9633--A 3
The Market Assets and GASB Disclosures are found in the March 31, 2023
New York State and Local Retirement System Financial Statements and
Supplementary Information.
I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
This fiscal note does not constitute a legal opinion on the viability
of the proposed change nor is it intended to serve as a substitute for
the professional judgment of an attorney.
This estimate, dated February 2, 2024, and intended for use only
during the 2024 Legislative Session, is Fiscal Note No. 2024-108,
prepared by the Actuary for the New York State and Local Retirement
System.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would allow current or former
NYCERS members employed as New York City Department of Environmental
Protection (DEP) police officers who transfer or transferred to the New
York State and Local Police and Fire Retirement System (PFRS) to receive
up to 10 years of service credit in the 20 or 25-year State Plans.
ILLUSTRATION - INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Thousands)
Year One Transfer One Transfer
Per Year
2025 5.3 5.3
2026 5.3 10.6
2027 5.3 16.0
2028 5.3 21.5
2029 5.3 27.0
2030 5.3 32.6
2031 5.3 38.2
2032 5.3 43.9
2033 5.3 49.7
2034 5.3 55.5
2035 5.3 61.4
2036 5.3 67.3
2037 5.3 73.2
2038 5.3 79.2
2039 0 80.0
2040 0 80.7
2041 0 81.4
2042 0 82.1
2043 0 82.8
2044 0 83.4
2045 0 84.0
2046 0 84.5
2047 0 85.0
2048 0 85.5
2049 0 85.9
Employer Contribution impact beyond Fiscal Year 2049 is not shown.
The potential increases in employer contributions will be allocated to
New York City.
EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
as of June 30, 2023 ($ in Thousands)
A. 9633--A 4
Present Value (PV) Per Transfer
PV of Benefits: 44.6
PV of Employee Contributions: 0.0
PV of Employer Contributions: 44.6
Unfunded Accrued Liabilities: 44.6
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
Recognized as Ongoing Gain/Loss Per Transfer
Number of Payments: 14
Amortization Payment: 5.3 K
CENSUS DATA: The number of members who have transferred or will trans-
fer to PFRS is unknown. The estimates presented herein are based on
preliminary census data collected as of June 30, 2023. The census data
for the potentially impacted population used to develop the average
costs in this Fiscal Note is based on DEP police officers currently in
NYCERS who have between two and 15 years of service and is summarized
below.
NYCERS
Active Members
- Number Count: 82
- Average Age: 35.9
- Average Service: 8.6
- Average Salary: 79,400
Term. Vested Members
- Number Count: 23
- Average Age: 39.8
Term. Non-Vested Members
- Number Count: 41
- Average Age: 35.6
BACKGROUND: Currently, NYCERS members employed as DEP police officers
who subsequently become employed by the State are eligible to transfer
their NYCERS membership and receive service credit in the State plans,
but generally do not receive service credit in the 20-year and 25-year
PFRS Plans.
Under the proposed legislation, DEP police officers who served in such
title for a minimum of two years and then transfer their NYCERS member-
ship to PFRS within one year of becoming a PFRS member (or one year of
the effective date, if later) would receive up to 10 years of credit in
the 20-year and 25-year PFRS Plans for such equal DEP service.
Currently, member accumulated contributions (with accrued interest),
and employer paid reserves if the member has at least 10 years of
service, are transferred. Under the proposed legislation, NYCERS would
be required to calculate and pay such member's pension reserve, net of
any accumulated salary deductions otherwise transferred, to PFRS, even
if the member has less than 10 years of service.
It should be noted that the proposed legislation does not provide for
a reciprocal transfer of reserves should a member transfer from PFRS to
NYCERS with less than 10 years of service.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement systems.
A. 9633--A 5
For purposes of this Fiscal Note, it has been assumed that the
impacted NYCERS members would generally not have transferred their
membership to PFRS absent this proposed legislation. It has been further
assumed that members with more than 15 years of service would not trans-
fer their membership even under the proposed legislation.
The number of members who will benefit in the future from this fiscal
note is unknown. The cost of this proposed legislation could vary great-
ly depending on the number of future members who benefit and, on their
plan, length of service, age, and salary history.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the actuarial assumptions, methods, and models used, demo-
graphics of the impacted population, and other factors such as invest-
ment, contribution, and other risks. If actual experience deviates from
actuarial assumptions, the actual costs could differ from those
presented herein. Quantifying these risks is beyond the scope of this
Fiscal Note.
This Fiscal Note is intended to measure pension-related impacts and
does not include other potential costs (e.g., administrative and Other
Postemployment Benefits).
STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
sky are members of the Society of Actuaries and the American Academy of
Actuaries. We are members of NYCERS but do not believe it impairs our
objectivity and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
To the best of our knowledge, the results contained herein have been
prepared in accordance with generally accepted actuarial principles and
procedures and with the Actuarial Standards of Practice issued by the
Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-29 dated March 15,
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.
