Bill Text: NY A05678 | 2023-2024 | General Assembly | Amended
Bill Title: Relates to service retirement benefits for certain members of the New York city employees' retirement system; provides that for New York city uniformed correction/sanitation revised plan members of the New York city employees' retirement system, the service retirement benefit shall not be reduced by the primary social security retirement benefit commencing at age sixty-two.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2024-01-26 - print number 5678a [A05678 Detail]
Download: New_York-2023-A05678-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5678--A 2023-2024 Regular Sessions IN ASSEMBLY March 20, 2023 ___________ Introduced by M. of A. PHEFFER AMATO -- 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, in relation to service retirement benefits for certain members of the New York city employees' retirement system The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 505 of the retirement and social security law, as 2 amended by chapter 18 of the laws of 2012, is amended to read as 3 follows: 4 § 505. Service retirement benefits; police/fire members, New York city 5 uniformed correction/sanitation revised plan members and investigator 6 revised plan members. a. The normal service retirement benefit for 7 police/fire members, New York city uniformed correction/sanitation 8 revised plan members and investigator revised plan members at normal 9 retirement age shall be a pension equal to fifty percent of final aver- 10 age salary, less fifty percent of the primary social security retirement 11 benefit commencing at age sixty-two, as provided in section five hundred 12 eleven of this article, except that for New York city uniformed 13 correction/sanitation revised plan members of the New York city employ- 14 ees' retirement system, the normal service retirement benefit shall not 15 be reduced by the primary social security retirement benefit commencing 16 at age sixty-two as provided in section five hundred eleven of this 17 article. 18 b. The early service retirement benefit for police/fire members, New 19 York city uniformed correction/sanitation revised plan members and 20 investigator revised plan members shall be a pension equal to two and 21 one-tenths percent of final average salary times years of credited EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08386-03-4A. 5678--A 2 1 service at the completion of twenty years of service or upon attainment 2 of age sixty-two, increased by one-third of one percent of final average 3 salary for each month of service in excess of twenty years, but not in 4 excess of fifty percent of final average salary, less fifty percent of 5 the primary social security retirement benefit commencing at age sixty- 6 two as provided in section five hundred eleven of this article, 7 provided, however, that New York city police/fire revised plan members, 8 New York city uniformed correction/sanitation revised plan members and 9 investigator revised plan members shall not be eligible to retire for 10 service prior to the attainment of twenty years of credited service, and 11 provided further that for New York city uniformed correction/sanitation 12 revised plan members of the New York city employees' retirement system, 13 the early service retirement benefit shall not be reduced by the primary 14 social security retirement benefit commencing at age sixty-two as 15 provided in section five hundred eleven of this article. 16 c. A police/fire member, a New York city uniformed 17 correction/sanitation revised plan member or an investigator revised 18 plan member who retires with twenty-two years of credited service or 19 less may become eligible for annual escalation of the service retirement 20 benefit if he elects to have the payment of his benefit commence on the 21 date he would have completed twenty-two years and one month or more of 22 service. In such event, the service retirement benefit shall equal two 23 percent of final average salary for each year of credited service, less 24 fifty percent of the primary social security retirement benefit commenc- 25 ing at age sixty-two as provided in section five hundred eleven of this 26 article, except that for New York city uniformed correction/sanitation 27 revised plan members of the New York city employees' retirement system, 28 the service retirement benefit shall not be reduced by the primary 29 social security retirement benefit commencing at age sixty-two as 30 provided in section five hundred eleven of this article. 31 § 2. Section 511 of the retirement and social security law is amended 32 by adding a new subdivision h to read as follows: 33 h. This section shall not apply to New York city uniformed 34 correction/sanitation revised plan members of the New York city employ- 35 ees' retirement system who receive a service retirement benefit pursuant 36 to section five hundred five of this article or a deferred vested bene- 37 fit pursuant to section five hundred sixteen of this article. 38 § 3. Subdivision c of section 516 of the retirement and social securi- 39 ty law, as amended by chapter 18 of the laws of 2012, is amended to read 40 as follows: 41 c. The deferred vested benefit of police/fire members, New York city 42 police/fire revised plan members, New York city uniformed 43 correction/sanitation revised plan members or investigator revised plan 44 members shall be a pension commencing at early retirement age equal to 45 two and one-tenths percent of final average salary times years of cred- 46 ited service, less fifty percent of the primary social security retire- 47 ment benefit commencing at age sixty-two, as provided in section five 48 hundred eleven of this article, except that for New York city uniformed 49 correction/sanitation revised plan members of the New York city employ- 50 ees' retirement system, the service retirement benefit shall not be 51 reduced by the primary social security retirement benefit commencing at 52 age sixty-two as provided in section five hundred eleven of this 53 article. A police/fire member, a New York city police/fire revised plan 54 member, a New York city uniformed correction/sanitation revised plan 55 member or investigator revised plan member may elect to receive his 56 vested benefit commencing at early retirement age or age fifty-five. IfA. 5678--A 3 1 the vested benefit commences before early retirement age, the benefit 2 shall be reduced by one-fifteenth for each year, if any, that the 3 member's early retirement age is in excess of age sixty, and by one- 4 thirtieth for each additional year by which the vested benefit commences 5 prior to early retirement age. If such vested benefit is deferred until 6 after such member's normal retirement age, the benefit shall be computed 7 and subject to annual escalation in the same manner as provided for an 8 early retirement benefit pursuant to subdivision c of section five 9 hundred five of this article. 10 § 4. This act shall take effect on the sixtieth day after it shall 11 have become a law. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would amend Sections of the Retire- ment and Social Security Law (RSSL) to eliminate the offset equal to 50% of the primary social security benefit in the service, early service, and vested retirement benefits for certain Tier 3 Sanitation and Correction members of NYCERS. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Millions) Year NYCERS 2025 32.3 2026 34.3 2027 37.0 2028 40.0 2029 43.2 2030 46.4 2031 49.5 2032 52.1 2033 54.9 2034 57.9 2035 60.7 2036 63.3 2037 65.9 2038 68.6 2039 71.3 2040 73.8 2041 62.5 2042 65.0 2043 67.6 2044 70.4 2045 73.1 2046 75.9 2047 78.6 2048 81.3 2049 84.2 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. EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES as of June 30, 2023 ($ in Millions) Present Value (PV) NYCERS PV of Benefits: 366.8A. 5678--A 4 PV of Employee Contributions: 0.0 PV of Employer Contributions: 366.8 Unfunded Accrued Liabilities: 127.1 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY NYCERS Number of Payments: 16 Fiscal Year of Last Payment: 2040 Amortization Payment: 13.9M 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. NYCERS Active Members - Number Count: 7,415 - Average Age: 39.2 - Average Service: 6.7 - Average Salary: 100,200 Term. Vested Members - Number Count: 589 - Average Age: 38.7 IMPACT ON MEMBER BENEFITS: Currently, Tier 3 normal service retire- ment, early service retirement, and vested retirement benefits for Sani- tation and Correction members in 22-Year Plans are subject to an offset equal to 50% of the primary social security benefit as defined in RSSL Section 511 beginning at age 62. Under the proposed legislation, the offset for such benefits would be eliminated resulting in an increase in benefits. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the Revised 2021 Actuarial Assumptions and Methods of the impacted retirement systems. In addition: * 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). This Fiscal Note does not include cost analyses relating to provisions contained in RSSL Section 500(c). 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 ourA. 5678--A 5 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 2024-08 dated January 25, 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.
