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A11089 Summary:

BILL NOA11089
 
SAME ASSAME AS S09041
 
SPONSORRules (Abbate)
 
COSPNSRRichardson
 
MLTSPNSR
 
 
Authorizes certain public employers to offer temporary retirement incentives (Part A); provides an age 55/25 years temporary retirement incentive for certain public employees (Part B).
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A11089 Actions:

BILL NOA11089
 
10/09/2020referred to governmental employees
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A11089 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          11089
 
                   IN ASSEMBLY
 
                                     October 9, 2020
                                       ___________
 
        Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Abbate) --
          read once and referred to the Committee on Governmental Employees
 
        AN ACT to authorize employers to provide a temporary  retirement  incen-
          tive  for  certain  public employees in the city of New York (Part A);
          and to provide an age 55/25 years temporary retirement  incentive  for
          certain public employees in the city of New York (Part B)
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act enacts into law  components  of  legislation  that
     2  would enable the city of New York to offer a temporary retirement incen-
     3  tive to their employees, as well as to provide an age 55/25 years tempo-
     4  rary  incentive  for  certain public employees. Each component is wholly
     5  contained within a Part identified as Parts A and B. The effective  date
     6  for each particular provision contained within such Part is set forth in
     7  the  last  section  of such Part. Any provision in any section contained
     8  within a Part, including the effective date of  the  Part,  which  makes
     9  reference  to a section "of this act", when used in connection with that
    10  particular component, shall be deemed to mean and refer  to  the  corre-
    11  sponding  section  of the Part in which it is found, unless noted other-
    12  wise.
    13    § 2. Legislative findings. The legislature finds and declares that the
    14  retirement benefits provided for in this act  are  designed  to  achieve
    15  cost-savings for public employers and to avoid layoffs of public employ-
    16  ees  in  this  time  of fiscal need. Therefore, the retirement incentive
    17  benefit provided for in Part A of this  act  and  the  age  55/25  years
    18  retirement  benefit provided for in Part B of this act are intended only
    19  to be temporary in nature for employees who are eligible to receive  and
    20  qualify  for  the  applicable benefit during the applicable time periods
    21  specified within each Part.  Further,  nothing  in  this  act  shall  be
    22  construed  to create an expectation of a future or continuing retirement
    23  benefit for any public employee who is not eligible to receive and qual-
    24  ify for the retirement benefits in this act during the  applicable  time
    25  periods.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD17044-07-0

        A. 11089                            2
 
     1                                   PART A
 
     2    Section 1. Definitions. As used in this act, unless the context clear-
     3  ly requires otherwise:
     4    a.  "Retirement  system"  means the New York city teachers' retirement
     5  system, the New York city board of education retirement  system  or  the
     6  New  York city employees' retirement system, exclusive of the retirement
     7  plans established pursuant to sections 13-156 and 13-157 of the adminis-
     8  trative code of the city of New York.
     9    b. "Teachers' retirement system" means the  New  York  city  teachers'
    10  retirement system.
    11    c.  "Eligible employee" means a person who is a member of a retirement
    12  system who is an employee of the city of New York, but such  term  shall
    13  not include the following persons:
    14    (a) elected officials, judges or justices appointed to or serving in a
    15  court of record;
    16    (b)  chief administrative officers of employers which participate in a
    17  teachers' retirement system;
    18    (c) appointed members of boards or commissions any  of  whose  members
    19  are appointed by the governor or by another public officer or body;
    20    d.  "Eligible  title"  means any title where a certain number of posi-
    21  tions in that title, as identified by agency, department, work  location
    22  or  appointing  authority  of  the city of New York, as the case may be,
    23  would otherwise be identified for layoff but for  this  act  because  of
    24  economy,  consolidation or abolition of functions, curtailment of activ-
    25  ities or otherwise. However, an eligible title can also include a  title
    26  as  identified  by  an  agency,  department, work location or appointing
    27  authority of the city of New York in which positions would not be elimi-
    28  nated but into which employees in  titles  affected  by  layoff  can  be
    29  transferred  or  reassigned  pursuant  to the civil service law, rule or
    30  regulation. The determination of eligible titles shall be  made  by  the
    31  chief executive officer of the city of New York.
    32    e.  "Active  service"  means  service while being paid on the payroll,
    33  provided that (a) a leave of absence with pay  shall  be  deemed  active
    34  service; (b) other approved leave without pay not to exceed twelve weeks
    35  prior  to  the  commencement  of the designated open period; and (c) the
    36  period of time subsequent to a June school term and on or before  August
    37  31  of the year for which an open period is designated for a teacher (or
    38  other employee employed on a school-year  basis)  who  is  otherwise  in
    39  active  service on the effective date of this act shall be deemed active
    40  service.
    41    f. "Open period" means the period beginning with the commencement date
    42  as defined in subdivision g of this section and shall not be  more  than
    43  ninety  days  nor  less  than thirty days in length, as specified by the
    44  city of New York. For the purposes of retirement pursuant to this act, a
    45  service retirement  application  must  be  filed  with  the  appropriate
    46  retirement  system  not  less  than fourteen days prior to the effective
    47  date of retirement to become effective, unless a shorter period of  time
    48  is permitted under law.
    49    g.  "Commencement  date"  means the first day the retirement incentive
    50  authorized by this act shall be made available, which shall mean a  date
    51  or  dates on or after the effective date of this act to be determined by
    52  the chief executive officer of the city of New York. The chief executive
    53  officer shall notify the heads of the appropriate retirement systems  of
    54  the  dates  of  each open period prior to the commencement dates of such
    55  periods.

        A. 11089                            3
 
     1    § 2. The determination of whether a title shall be considered eligible
     2  shall consider whether the reduction of a specific number  of  positions
     3  within a title would unacceptably:
     4    a.  Directly result in a reduction of the level of service required or
     5  mandated to protect and care for clients of the city of New York  or  to
     6  assure public health and safety;
     7    b. Endanger the health or safety of employees of the city of New York;
     8  or
     9    c.  Clearly result in a loss of significant revenue to the city of New
    10  York or result in substantially increased overtime or contractual costs.
    11  However, any title may be determined eligible if the  vacancies  created
    12  can  be  controlled by the use of transfer or reassignment provisions of
    13  the civil service law, rules or regulations or other deployment of  city
    14  employees.
    15    § 3. a. Eligibility for inclusion in the retirement incentive provided
    16  by  section six of this act shall be determined by seniority for employ-
    17  ees of the city of New York; seniority shall mean the date  of  original
    18  permanent  appointment  in  the  civil  service  of the city adjusted to
    19  include veteran's credits for those entitled  to  receive  such  credits
    20  pursuant  to  sections  80,  80-a  and  85,  if applicable, of the civil
    21  service law, as established in the official records of the New York city
    22  department of citywide administrative services, regardless of the juris-
    23  dictional classification of the position or the status of the incumbent.
    24    b. All eligible employees serving in eligible titles desiring to avail
    25  themselves of the retirement incentive provided by section six  of  this
    26  act shall provide written notice to his or her employer on or before the
    27  twenty-first  day  preceding  the  end  of the open period.   Failure to
    28  provide such written notice shall render the employee ineligible for the
    29  retirement incentive provided by this act.
    30    § 4. a. On or after the effective date of this act, the  city  of  New
    31  York may elect to provide its employees the retirement incentive author-
    32  ized  by  this act by the enactment of a local law, provided however, no
    33  local law enacted pursuant to this section shall in any manner supersede
    34  any local charter. The local law shall specify the commencement date  of
    35  the  program  and  the  length of the open period or periods.  A copy of
    36  such law shall be  filed  with  the  appropriate  retirement  system  or
    37  systems, and, if applicable, on forms provided by such system. The local
    38  law  or  resolution  shall  be accompanied by the affidavit of the chief
    39  executive officer certifying to the information contained in subdivision
    40  c of this section.
    41    b. The commencement date of an open period for eligible employees of a
    42  retirement system of the city of New York who elects retirement benefits
    43  pursuant to this section may be up to one hundred eighty days after  the
    44  end  of  the  open  period for other eligible employees, if requested by
    45  such system.
    46    c. Notwithstanding any other provision of law, the  benefits  provided
    47  by  this  act  shall  not  be  made  available to any person who (a) has
    48  received any retirement incentive authorized by any provision  of  state
    49  law,  or  (b)  who  receives,  has  received or is eligible to receive a
    50  payment in a lump sum or in another form  from  a  retirement  incentive
    51  pursuant  to  the  provisions of a collective bargaining agreement or by
    52  other arrangement with his or her employer, unless such person  files  a
    53  written  statement  with  his  or her employer, a copy of which shall be
    54  forwarded to the appropriate retirement system, that he or she agrees to
    55  waive any right to such payment. If the city of New York has  offered  a
    56  retirement incentive pursuant to the provisions of a collective bargain-

        A. 11089                            4

     1  ing agreement or by other arrangement, such city shall prepare, and file
     2  with  each  retirement  system,  a  list containing the names and social
     3  security numbers of all persons described in this subdivision. The  city
     4  is  authorized,  however,  to  exempt  persons  in  its  employ from the
     5  provisions of paragraph (b) of this subdivision. Such exemption shall be
     6  made part of the election made pursuant to this section.
     7    § 5. Notwithstanding any other provision of law, any eligible employee
     8  serving in an eligible title who:
     9    a. has been continuously in the active service of the city of New York
    10  prior to the commencement date of the applicable open period;
    11    b. files an application  for  service  retirement  that  is  effective
    12  during the open period; and
    13    c.  is otherwise eligible for a service retirement as of the effective
    14  date of the application for retirement shall be entitled to the  retire-
    15  ment  incentive  provided  in  section six of this act. If not otherwise
    16  eligible for a service retirement, the following person shall be  deemed
    17  to satisfy the eligibility condition of this section: a person who is at
    18  least  age fifty with ten or more years service as of the effective date
    19  of retirement (other than a member of a retirement plan  which  provides
    20  for  half-pay  pension  upon  completion  of  twenty-five  years or less
    21  service without regard to age); or a member of a retirement  plan  which
    22  provides  for  half-pay  pension upon completion of twenty-five years of
    23  service without regard to age who has not accrued, excluding  additional
    24  credit  granted  pursuant  to  this  act, the minimum number of years of
    25  service required to retire with an allowance equal to fifty  percent  of
    26  final average salary under such plan, but has, with the inclusion of the
    27  additional  credit provided under this act, accrued such number of years
    28  of credit.
    29    § 6. Notwithstanding any other provision of law, an eligible  employee
    30  serving  in  an eligible title who is a member of a retirement system of
    31  the city of New York and employed by the city of New  York  and  who  is
    32  entitled  to a retirement incentive pursuant to section five of this act
    33  shall receive a retirement incentive of one-twelfth of a year  of  addi-
    34  tional retirement credit for each year of pension service credited as of
    35  the  date  of  retirement,  up to a maximum of three years of retirement
    36  service credit at  the  time  of  retirement,  provided,  however,  that
    37  service  credit provided under the provisions of sections 902 and 911 of
    38  the retirement and social security law shall not be included when calcu-
    39  lating the additional retirement credit awarded pursuant  to  this  act.
    40  For  the  New  York  city teachers' retirement system, the New York city
    41  employees' retirement system and the New York city  board  of  education
    42  retirement  system  such  incentive shall be available for all purposes,
    43  including fulfilling the qualifying service requirements of plan  A  and
    44  C, if applicable.
    45    An eligible employee who is covered by the provisions of article 15 of
    46  the retirement and social security law shall retire under the provisions
    47  of  article  15 of the retirement and social security law. The amount of
    48  such benefit for an eligible employee who is covered by  article  15  of
    49  the  retirement and social security law and retires under the provisions
    50  of this section (other than a  member  with  thirty  or  more  years  of
    51  service  in the New York city employees' retirement system, the New York
    52  city teachers' retirement system, or the New York city board  of  educa-
    53  tion  retirement system) shall be reduced by six percent for each of the
    54  first two years by which  retirement  precedes  age  sixty-two,  plus  a
    55  further  reduction  of  three  percent for each year by which retirement
    56  precedes age sixty, provided, however, the  foregoing  reductions  shall

        A. 11089                            5
 
     1  not  apply:  (i) in any case where an eligible employee can retire after
     2  twenty-five years of service with immediate payability prior to the  age
     3  of  sixty-two  pursuant  to  section  604-b of the retirement and social
     4  security law or (ii) to any time period subsequent to the point at which
     5  an  eligible employee can retire for service without reduction of his or
     6  her service retirement allowance pursuant to article 16 of  the  retire-
     7  ment  and  social  security  law.  Such  reduction shall be prorated for
     8  partial years. The amount of such benefit for an eligible employee  with
     9  thirty  or  more  years  of service who is a member of the New York city
    10  employees' retirement system, the New  York  city  teachers'  retirement
    11  system, or the New York city board of education retirement system, or an
    12  eligible  employee who is a participant in the optional twenty-five year
    13  early retirement program for certain New York city members  governed  by
    14  section  604-c  of  the  retirement and social security law, as added by
    15  chapter 96 of the laws of 1995 or a twenty-five year participant in  the
    16  age  fifty-five  retirement  program  governed  by  section 604-i of the
    17  retirement and social security law, with twenty-five or  more  years  of
    18  service  and  who  is covered by article 15 of the retirement and social
    19  security law shall be reduced by five percent for  each  year  by  which
    20  retirement  pursuant to this section precedes age fifty-five. The amount
    21  of such benefit for an eligible New York city employee with five or more
    22  years of service and who is a participant in the age fifty-seven retire-
    23  ment program governed by section 604-d  of  the  retirement  and  social
    24  security  law  shall be reduced by one-thirtieth for the first two years
    25  by which retirement precedes age fifty-seven plus a further reduction of
    26  one-twentieth for each year by which retirement precedes age fifty-five.
    27  Such reduction shall be prorated for partial years. There  shall  be  no
    28  reduction  for an eligible New York city employee in a physically taxing
    29  position with twenty-five or more years of service and who is a  partic-
    30  ipant  (i) in the optional twenty-five year early retirement program for
    31  certain members governed by section 604-c of the retirement  and  social
    32  security law, as added by chapter 96 of the laws of 1995, or (ii) in the
    33  age  fifty-seven  retirement  program  governed  by section 604-d of the
    34  retirement and social security law.
    35    An eligible employee serving in an eligible title who  is  covered  by
    36  article  11 of the retirement and social security law shall retire under
    37  the provisions of such article. There shall be no reduction  in  retire-
    38  ment  benefit  provided  that  such employee retires with thirty or more
    39  years of service at age fifty-five or older.
    40    An eligible employee serving in an eligible title who is  not  covered
    41  by  article  11  or  15  of the retirement and social security law shall
    42  retire under the provisions of the plan by which he or she  is  covered.
    43  The  amount  of  such  benefit shall be reduced by five percent for each
    44  year by which retirement pursuant to this section  precedes  age  fifty-
    45  five,  provided,  however, the foregoing reductions shall not apply: (i)
    46  in any case where an eligible employee can retire  pursuant  to  a  plan
    47  which  permits  retirement for service with immediate payability, exclu-
    48  sive of this act, prior to the age of fifty-five or  (ii)  to  any  time
    49  period  subsequent to the point at which an eligible employee can retire
    50  for service without reduction of his or her service retirement allowance
    51  pursuant to article 16 of the retirement and social security  law.  Such
    52  reduction shall be prorated for partial years.
    53    An  eligible employee serving in an eligible title who participates in
    54  a retirement plan which provides for a  retirement  allowance  equal  to
    55  fifty percent of final average salary upon the completion of twenty-five
    56  years  of service without regard to age and who is otherwise eligible to

        A. 11089                            6
 
     1  retire shall retire under the provisions of  such  plan.  Such  employee
     2  shall, at the time of retirement, be credited with one-twelfth of a year
     3  of additional retirement service credit for each year of service credit-
     4  ed  under  such  plan  as  of the date of retirement, up to a maximum of
     5  three years of retirement service  credit.  If  such  employee  has  not
     6  accrued,  excluding  additional credit granted pursuant to this act, the
     7  minimum number of years of service required to retire with an  allowance
     8  equal to fifty percent of final average salary under such plan, but has,
     9  with  the  inclusion  of  the additional credit provided under this act,
    10  accrued such number of years of credit, the benefit payable shall be the
    11  percentage of final average salary that would ordinarily  be  applicable
    12  to such individual upon retirement with such amount of credit (including
    13  incentive  credit), reduced by five per centum per year for each year by
    14  which the number of years of service otherwise required to  retire  with
    15  an  allowance  equal to fifty percent of final average salary under such
    16  plan exceeds the amount of service credited to such employee under  such
    17  plan  at  retirement  (excluding  the  additional  retirement  incentive
    18  service credit provided pursuant to this act). Such reduction  shall  be
    19  prorated for partial years.
    20    §  7.  a.  Notwithstanding any other provision of law, any termination
    21  pay or leave arising from accrued sick leave or accrued annual leave for
    22  an eligible employee who has elected the retirement  incentive  provided
    23  by  this  act and who is a member of the New York city teachers' retire-
    24  ment system employed by the board of education of the city of  New  York
    25  shall  be  paid  in  three equal installments during a twenty-four month
    26  period commencing on such eligible employee's effective date of  retire-
    27  ment.
    28    b.  An  employee of the city of New York who retires under the retire-
    29  ment incentive provided by this act, who is eligible for terminal  leave
    30  pursuant to an applicable collective bargaining agreement or a personnel
    31  policy  or  rule  or  retirement  leave  pursuant to section 3107 of the
    32  education law or who has an accrued annual leave balance on  the  effec-
    33  tive  date  of  retirement shall be paid in three equal installments two
    34  months, fourteen months and twenty-four months following  such  eligible
    35  employee's effective date of retirement.
    36    §  8.  a.  The city of New York, if it elects the retirement incentive
    37  provided by this act shall be required to  demonstrate  the  savings  of
    38  their election by either eliminating positions vacated as a result of an
    39  eligible  employee in an eligible title receiving the incentive provided
    40  by section six of this act or demonstrating a compensation savings  such
    41  that the total amount of base salary paid for the two-year period subse-
    42  quent to the effective date of retirement for such eligible employees in
    43  eligible  titles to new hires, if any, who otherwise would not have been
    44  hired by such employer after the effective date of this act but for  the
    45  retirement  incentive  provided herein shall be no more than one-half of
    46  the total amount of base salary that would have been paid to such eligi-
    47  ble employees from their date of retirement for  such  two-year  period.
    48  The  city may also demonstrate savings, however, by identifying a vacant
    49  position into which another employee can be appointed,  transferred,  or
    50  reassigned  pursuant  to the civil service law, rules or regulations, in
    51  which case the former position of  the  employee  so  appointed,  trans-
    52  ferred,  or  reassigned shall be eliminated.  The city shall make avail-
    53  able its plans for achieving the savings described herein.
    54    b. The New York city department of  citywide  administrative  services
    55  shall  prepare  a report designating the title, grade level, salary, and
    56  classification, according to appointing authority, (i) of each  position

        A. 11089                            7
 
     1  which  is  eliminated pursuant to subdivision a of this section, (ii) of
     2  each position into which another employee was appointed, transferred, or
     3  reassigned and the former position of such employee, and (iii)  of  each
     4  position  which is eliminated as a result of an appointment, transfer or
     5  reassignment referred to in paragraph (ii)  of  this  subdivision.  Such
     6  report  shall be available no later than ninety days after the last date
     7  of the open period related to such positions.
     8    § 9. Nothing in this act shall be used to provide benefits that  shall
     9  exceed the limits contained in section 415 of the internal revenue code.
    10  Provided, however, any service retirement benefit which has been reduced
    11  because  of  section 415 of the internal revenue code shall be increased
    12  when (and consistent with) the dollar  limits  in  section  415  of  the
    13  internal  revenue  code are adjusted by the internal revenue service for
    14  cost of living increases. Such increases shall not increase the  benefit
    15  in excess of the service retirement benefit otherwise payable.
    16    §  10. Any eligible employee who retires pursuant to the provisions of
    17  this act and enters or reenters public service as defined in subdivision
    18  e of section 210 of the retirement and social security law and joins  or
    19  rejoins  any  public  retirement system of the city of New York shall if
    20  the additional benefit was provided pursuant to: (a) section six of this
    21  act, forfeit the additional benefit authorized by this act at  the  time
    22  of his or her subsequent retirement; or (b) repay to the city such addi-
    23  tional contribution together with the appropriate interest as determined
    24  by the appropriate retirement system.
    25    §  11.  Notwithstanding  any  other  provision  of law, if the service
    26  retirement benefit of a member of a retirement system is  subject  to  a
    27  maximum  retirement  benefit,  the additional benefit authorized by this
    28  act will be computed by multiplying the final average salary  times  the
    29  number  of  years  of  service credit granted by section six of this act
    30  times the benefit fraction of the plan under which such member retires.
    31    § 12. The provisions of section 430 of the retirement and social secu-
    32  rity law shall not apply to any benefit or benefit improvement  provided
    33  by this act.
    34    §  13.  The  pension benefit costs of section six of this act shall be
    35  paid by the city of New York as provided  by  applicable  law  for  each
    36  retirement  system  covered by this act over a period not to exceed five
    37  years commencing in the fiscal year following the fiscal year  in  which
    38  this act shall have become a law.
    39    §  14. Where an employee is eligible to receive the benefit authorized
    40  under section six and the retirement benefit provided for under  section
    41  five  of  part  B  of  this act, such employee may elect a section under
    42  which he or she will participate.    In  no  event  shall  the  benefits
    43  provided  for  in section six of this act be received by any employee in
    44  conjunction with the benefits of section five of part B of this act.
    45    § 15. This act shall take effect immediately.
    46                                    PART B
 
    47    Section 1. Definitions. As used in this act, unless the context clear-
    48  ly requires otherwise:
    49    a. "Retirement system" means the New York  city  teachers'  retirement
    50  system,  the  New  York city board of education retirement system or the
    51  New York city employees' retirement system, exclusive of the  retirement
    52  plans established pursuant to sections 13-156 and 13-157 of the adminis-
    53  trative code of the city of New York.
    54    b.  "Teachers'  retirement  system"  means the New York city teachers'
    55  retirement system.

        A. 11089                            8
 
     1    c. "Eligible employee" means a person who is a member of a  retirement
     2  system  of  the city of New York who has attained age fifty-five and has
     3  at least twenty-five years of creditable service in a retirement system,
     4  but such term shall not include the following persons:
     5    (a)  elected  officials, judges or justices appointed to or serving in
     6  court of record;
     7    (b) chief administrative officers of employers which participate in  a
     8  teachers' retirement system;
     9    (c)  appointed  members  of boards or commissions any of whose members
    10  are appointed by the governor or by another public officer or body;
    11    d. "Active service" means service while being  paid  on  the  payroll,
    12  provided  that  (a)  a  leave of absence with pay shall be deemed active
    13  service; (b) other approved leave without pay not to exceed twelve weeks
    14  prior to and the commencement of the designated open period; and (c) the
    15  period of time subsequent to a June school term and on or before  August
    16  31  of the year for which an open period is designated for a teacher (or
    17  other employee employed on a school-year  basis)  who  is  otherwise  in
    18  active  service on the effective date of this act shall be deemed active
    19  service.
    20    e. "Open period" means the period beginning with the commencement date
    21  as defined in subdivision f of this section and shall be ninety days  in
    22  length,  as  specified  by  the  city  of  New York. For the purposes of
    23  retirement pursuant to this act, a service retirement  application  must
    24  be  filed  with the appropriate retirement system not less than fourteen
    25  days prior to the effective date  of  retirement  to  become  effective,
    26  unless a shorter period of time is permitted under law.
    27    f.  "Commencement  date"  means  the  first day the retirement benefit
    28  mandated by this act shall be made available, which shall mean a date or
    29  dates on or after the effective date of this act to be determined by the
    30  chief executive officer of the city of New  York.  The  chief  executive
    31  officer  shall  notify  the head of the appropriate retirement system of
    32  the date of the open periods prior to the  commencement  dates  of  such
    33  periods.
    34    §  2.  The  city  of New York, if it elects to participate pursuant to
    35  section three of this act shall establish a commencement  date  for  the
    36  retirement  benefit  established  under  section five of this act by the
    37  chief executive officer issuing an  executive  order  establishing  such
    38  commencement  date,  provided,  however, no executive order shall in any
    39  manner supersede any local charter. A copy of any such  executive  order
    40  establishing  a  commencement  date  shall be filed with the appropriate
    41  retirement system or systems, and, if applicable, on forms  provided  by
    42  such  system.  The executive order shall be accompanied by the affidavit
    43  of the chief executive officer certifying the commencement date.
    44    § 3. a. On or after the effective date of this act, the  city  of  New
    45  York may elect to provide its employees the retirement incentive author-
    46  ized  by  this  act by the enactment of a local law provided however, no
    47  local law enacted pursuant to this section shall in any manner supersede
    48  any local charter.  A copy of such law or resolution shall be filed with
    49  the appropriate retirement system or systems,  and,  if  applicable,  on
    50  forms provided by such system. The local law shall be accompanied by the
    51  affidavit of the chief executive officer certifying the validity of such
    52  law.
    53    b. The commencement date of an open period for eligible employees of a
    54  retirement system of the city of New York who elects retirement benefits
    55  pursuant  to this section may be up to one hundred eighty days after the

        A. 11089                            9
 
     1  end of the open period for other eligible  employees,  if  requested  by
     2  such system.
     3    § 4. Notwithstanding any other provision of law, any eligible employee
     4  who  (a)  has been continuously in the active service of the city of New
     5  York prior to the commencement date of the applicable open  period,  (b)
     6  files an application for service retirement that is effective during the
     7  open  period,  and (c) is otherwise eligible for a service retirement as
     8  of the effective date of the application for retirement shall  be  enti-
     9  tled to the retirement benefit provided in section five of this act.
    10    §  5.  a.  Notwithstanding  any  other  provision  of law, an eligible
    11  employee who is: (a) a member of a retirement system of the city of  New
    12  York  and  employed by the city of New York and (b) who is entitled to a
    13  retirement benefit pursuant to section  four  of  this  act  may  retire
    14  during  the  open  period without the reduction of his or her retirement
    15  benefit that would otherwise be imposed by  article  11  or  15  of  the
    16  retirement  and social security law if he or she has attained the age of
    17  fifty-five and has completed at least twenty-five or more years of cred-
    18  itable service. An eligible employee who is covered by the provisions of
    19  articles 11 and 15 of the  retirement  and  social  security  law  shall
    20  retire  under the provisions of articles 11 and 15 of the retirement and
    21  social security law.
    22    b. The chief executive officer of  the  city  of  New  York  may  deny
    23  participation  in  the  retirement  benefit provided by subdivision a of
    24  this section if the chief executive officer makes a  determination  that
    25  the employee holds a position that is deemed critical to the maintenance
    26  of public health and safety.
    27    c. Where an employee is eligible for the retirement benefit under this
    28  section  and the retirement incentive authorized pursuant to section six
    29  of part A of this act, such employee shall elect a section  under  which
    30  he  or  she  will participate. The benefits provided by subdivision a of
    31  this section shall not be conditioned upon the city of New  York  making
    32  the benefits of section six of part A of this act available to employees
    33  in their employ. Further, the benefits provided by subdivision a of this
    34  section  shall  not  be  available  in  conjunction with the benefits of
    35  section six of part A of this act.
    36    d. The action of the chief executive officer of the city of  New  York
    37  in  denying the retirement benefit provided for in subdivision a of this
    38  section to any individual shall be  subject  to  review  in  the  manner
    39  provided  for  in  article  78 of the civil practice law and rules. Such
    40  action for review pursuant to article 78 of the civil practice  law  and
    41  rules  shall  only  be  commenced  by the individual that was denied the
    42  retirement benefit provided by subdivision a of this section.
    43    e. After making any such determination under  subdivision  b  of  this
    44  section the chief executive officer of the city of New York shall notify
    45  the  appropriate retirement system or teachers' retirement system of its
    46  determination.
    47    § 6. The pension benefit costs of section five of this  act  shall  be
    48  paid  by  the  city  of  New York as provided by applicable law for each
    49  retirement system covered by this act over a period not to  exceed  five
    50  years  commencing  in the fiscal year following the fiscal year in which
    51  this act shall have become a law.
    52    § 7. This act shall take effect immediately.
    53    § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
    54  sion, section or part of this act shall be  adjudged  by  any  court  of
    55  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    56  impair, or invalidate the remainder thereof, but shall  be  confined  in

        A. 11089                           10
 
     1  its  operation  to the clause, sentence, paragraph, subdivision, section
     2  or part thereof directly involved in the controversy in which such judg-
     3  ment shall have been rendered. It is hereby declared to be the intent of
     4  the  legislature  that  this  act  would  have been enacted even if such
     5  invalid provisions had not been included herein.
     6    § 4. This act shall take effect immediately; provided,  however,  that
     7  the  applicable  effective date of Parts A and B of this act shall be as
     8  specifically set forth in the last section of such Parts.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY OF BILL: This proposed legislation, as it relates to  the  New
        York  City  Retirement  Systems  (NYCRS),  would provide for a temporary
        Early Retirement  Incentive  Program  (ERI  Program)  to  allow  certain
        members  of the New York City Employees' Retirement System (NYCERS), the
        New York City Teachers' Retirement System (TRS), and the New  York  City
        Board  of  Education  Retirement System (BERS), who are employees of the
        City of New York (City) and meet enumerated criteria, to elect immediate
        retirement with enhanced benefits.
          The ERI Program consists of two  parts  and  is  contingent  upon  the
        City's  election  to participate in the Program. Part A would provide to
        eligible members, determined by title, seniority, and enumerated  policy
        considerations,  an  additional  service credit. Part B would remove the
        application  of  early  retirement  reduction  factors  for   qualifying
        members.  The benefits of the respective Parts cannot be combined.
          Eligible  NYCRS  members  would have anywhere from 30 to 90 days in an
        open period to elect and retire under Part A or  within  a  90-day  open
        period following the commencement date to retire under Part B of the ERI
        Program.  Multiple  open periods, not to exceed 180 days from the end of
        an open period for other employees,  may  be  requested  by  the  NYCRS.
        Should the City elect to participate in the ERI Program provided by this
        Act,  it  would  be  required  to demonstrate the savings related to the
        election.
          A member is eligible to participate in Part A of the ERI Program if he
        or she:
          * Is otherwise eligible for service retirement;
          * Is at least age 50 with 10 or more years of service and is not in  a
        plan  which  permits  retirement  at  half-pay with 25 or fewer years of
        service without regard to age; or
          * Is in a plan that permits retirement at  half-pay  at  25  years  of
        service  without  regard  to  age  and  would  reach 25 years of service
        considering the additional service credit provided in Part A.
          A member is eligible to participate in Part B of the ERI Program if he
        or she is age 55 or older and has at least 25 years of service.
          In addition to the eligibility conditions above, members must also:
          * Be in continuous active service preceding the commencement  date  of
        the open period;
          *  For  Part  A - provide timely written notice of the intent to avail
        himself or herself of the ERI and file for service  retirement  that  is
        effective within the open period;
          *  For  Part  B - file for service retirement that is effective within
        the open period and otherwise be eligible to retire for  service  as  of
        the effective date of retirement.
          Effective  Date:  Upon  enactment  and as determined by the respective
        open periods contained in Parts A and B.
          IMPACT ON BENEFITS: Part A would provide  one-twelfth  of  a  year  of
        additional  retirement  service credit for each year of pension service,
        up to a maximum of three years of additional retirement service  credit.

        A. 11089                           11
 
        Some benefits provided under Part A could be subject to Early Retirement
        Factors (ERF) as specified in the proposed legislation.
          Part B would allow members to retire with an unreduced benefit if they
        are at least age 55 with 25 or more years of service.
          FINANCIAL  IMPACT  -  OVERVIEW: There is no credible data available to
        estimate the number of members who will retire  under  the  current  ERI
        Program  and potentially benefit from this proposed legislation.  There-
        fore, the estimated financial impact has been calculated on a per  event
        basis  equal  to  the  average  increase  in the Present Value of future
        employer contributions and in  the  annual  employer  contributions  for
        members who would benefit from the proposed legislation.
          The  Present  Value of future employer contributions is the net result
        of the increase in the Present Value of Future Benefits (PVFB)  and  the
        decrease in the Present Value of member contributions.
          For the purposes of this Fiscal Note, the increase in Present Value of
        future  employer  contributions  was  amortized  over a five-year period
        (four payments under the One-Year Lag Methodology  (OYLM))  using  level
        dollar  payments, the maximum allowable period under the proposed legis-
        lation.   This amortized value  is  the  estimated  increase  in  annual
        employer contributions.
          There  will  also be future savings in Employer Contributions assuming
        that these members are not replaced.  This  additional  savings  is  not
        included here.
          With  respect  to  an  individual  member, the additional cost of this
        proposed legislation could vary greatly depending on the member's length
        of service, age, and salary history.
          FINANCIAL IMPACT - SUMMARY: Based on the census data and the actuarial
        assumptions and methods described herein, the enactment of this proposed
        legislation would result in an increase in the Present Value of Employer
        Contributions and annual employer contributions. The  estimated  pension
        financial impact has been calculated as the average increase per person.
        A  breakdown  of  the  financial  impact  by NYCRS is shown in the table
        below:
                  NYCRS          Additional
                                 Present Value of         Estimated
                                 Future Employer          Annual Employer
                                 Contributions            Contributions
                                 ($ Per Person)           ($ Per Person)
 
              Part A Only
                NYCERS               $78,000                 $23,800
                TRS                   82,200                  25,100
                BERS                  37,300                  11,400
                 Average             $75,500                 $23,100
 
              Part B Only
                NYCERS              $109,800                 $33,500
                TRS                   65,600                  20,000
                BERS                  95,100                  29,000
                 Average            $105,500                 $32,200
 
              Both A & B
                NYCERS               $93,400                 $28,500
                TRS                   82,400                  25,200
                BERS                  43,200                  13,200
                 Average             $85,100                 $26,000

        A. 11089                           12
 
          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, 2019 actuarial valuations of
        NYCERS,  TRS,  and BERS.   In accordance with the OYLM used to determine
        employer contributions, the increase  in  employer  contributions  would
        first be reflected in Fiscal Year 2021.
          CENSUS  DATA:  The  estimates presented herein are based on the census
        data used in the Preliminary June 30, 2019 (Lag) actuarial valuations of
        NYCERS, TRS, and BERS to determine  the  Preliminary  Fiscal  Year  2021
        employer contributions.
          The  table  below  contains  the  census data for members who meet the
        eligibility requirements and would be impacted by  the  proposed  legis-
        lation  (Potential  Elections),  and  for  a subset of those members who
        would benefit actuarially (Assumed to Elect).
             NYCRS                    Potential Elections
        Part A Only     Count      Avg Age      Avg Svc       Avg Salary
          NYCERS        34,147      58.5         22.3          $83,900
          TRS           31,727      57.7         21.2          101,300
          BERS           9,736      60.2         15.8           49,900
           Total        75,610      58.4         21.0          $86,800
 
        Part B Only    Count       Avg Age      Avg Svc       Avg Salary
          NYCERS        5,990       58.2         30.2          $88,600
          TRS             569       58.0         26.9          110,100
          BERS            430       58.6         29.5           72,700
           Total        6,989       58.2         29.9          $89,400
 
        Both A & B     Count      Avg Age       Avg Svc       Avg Salary
          NYCERS       34,147       58.5         22.3          $83,900
          TRS          31,727       57.7         21.2          101,300
          BERS          9,736       60.2         15.8           49,900
           Total       75,610       58.4         21.0          $86,800
 
                                      Assumed to Elect
                       Count      Avg Age       Avg Svc       Avg Salary
                       19,077       60.4         26.4          $87,600
                       11,372       61.2         27.1          109,100
                        3,218       63.6         21.8           51,900
                       33,667       61.0         26.2          $91,400
 
                       Count      Avg Age       Avg Svc       Avg Salary
                        5,941       58.2         30.2          $88,400
                          530       57.9         26.9          109,900
                          423       58.6         29.5           71,500
                        6,894       58.2         29.9          $89,000
 
                       Count      Avg Age       Avg Svc       Avg Salary
                       20,035       60.2         26.5          $88,000
                       11,525       61.2         27.1          109,200
                        3,231       63.5         21.8           52,200
                       34,791       60.8         26.3          $91,700
          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 June 30, 2019 (Lag) actuarial valuations

        A. 11089                           13

        used to determine the Preliminary Fiscal  Year  2021  employer  contrib-
        utions of NYCERS, TRS, and BERS.
          To  determine the impact of the elective nature of the proposed legis-
        lation, a subgroup based on who could  potentially  benefit  actuarially
        was  used.  The  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 as if retiring imme-
        diately  under  the ERI Program. If the Present Value of future employer
        cost under the ERI Program was greater than  or  equal  to  the  Present
        Value  of future employer cost under the member's current plan, then the
        member was deemed to benefit actuarially.
          Based on this analysis, the costs presented in this  Fiscal  Note  are
        borne  only  from current NYCERS, TRS, and BERS members who are employed
        by the City and assumed to benefit from, and thus opt to  retire  under,
        the ERI Program.
          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, TRS, and BERS, 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  offsetting reduction in salary due to retirements earlier than
        expected.
          * The impact of potential new hires replacing members who  retire  due
        to the ERI Program.
          *  The  initial,  additional  administrative  costs  to  implement the
        proposed legislation.
          * The impact of this  proposed  legislation  on  Other  Postemployment
        Benefit (OPEB) costs.
          STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
        ary for, and independent of, the New York City  Retirement  Systems  and
        Pension  Funds.  I  am a Fellow of the Society of Actuaries, an Enrolled
        Actuary under the Employee Retirement Income and Security Act of 1974, a
        Member of the American Academy of Actuaries, and a Fellow of the Confer-
        ence of Consulting 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 2020-61  dated  September
        16, 2020 was prepared by the Chief Actuary for the New York City Employ-
        ees'  Retirement  System, the New York City Teachers' Retirement System,
        and the New York City Board of Education Retirement System.  This  esti-
        mate is intended for use only during the 2020 Legislative Session.
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