Bill Text: NY A06424 | 2011-2012 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Provides credit to Linda Bores, Lisa Bosse and Catherine Littlefield, members of the New York city employees' retirement system, for their service at Coney Island Hospital while employed by University Group Medical Associates.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-02-23 - print number 6424a [A06424 Detail]

Download: New_York-2011-A06424-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        6424--A
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                    March 16, 2011
                                      ___________
       Introduced by M. of A. ABBATE -- read once and referred to the Committee
         on  Governmental  Employees -- recommitted to the Committee on Govern-
         mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit-
         tee discharged, bill amended, ordered reprinted as amended and  recom-
         mitted to said committee
       AN ACT in relation to service credit 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. Notwithstanding any other provision of law to the contrary,
    2  Ms. Linda Bores, Ms. Lisa Bosse and Ms. Catherine Littlefield members of
    3  the New York city employee's retirement system and employees of the  New
    4  York city health and hospitals corporation at Coney Island Hospital, who
    5  were previously employed by University Group Medical Associates at Coney
    6  Island  Hospital,  shall  be  eligible  for  credit for service at Coney
    7  Island Hospital while employed by University Group  Medical  Associates,
    8  provided  that  each  such  member files a claim for part or all of such
    9  service with the retirement system within 90 days of the effective  date
   10  of  this  act  and  contributes to the retirement system an amount which
   11  such member would have contributed during  such  period,  together  with
   12  interest  thereon,  and  further  provided that no additional credit for
   13  service shall be given for any periods of service already purchased. The
   14  amount contributed shall be pursuant to regulations adopted by the board
   15  of trustees of the retirement system.
   16    S 2. This act shall take effect immediately.
         FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
         PROVISIONS OF PROPOSED LEGISLATION -  OVERVIEW:  The  proposed  legis-
       lation  would  permit  Linda Bores, Lisa Bosse and Catherine Littlefield
       ("Eligible Members"), who are members of the New  York  City  Employees'
       Retirement System ("NYCERS") employed by the Health and Hospitals Corpo-
       ration  ("HHC") at Coney Island Hospital who were previously employed by
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09344-04-2
       A. 6424--A                          2
       University Group Medical Associates ("UGMA") at Coney  Island  Hospital,
       to  be  eligible  for  credit for service at Coney Island Hospital while
       employed by UGMA ("Eligible Service").
         The  Effective  Date  of the proposed legislation would be the date of
       enactment.
         IMPACT ON MEMBER CONTRIBUTIONS: The Eligible Members currently partic-
       ipate in the Tier IV Age Fifty-Seven Retirement Program for certain  New
       York City members ("57/5 Plan").
         Under the proposed legislation, each Eligible Member would be required
       to pay Basic Member Contributions ("BMC") and Additional Member Contrib-
       utions ("AMC") including accrued interest at a rate of 5.0% per annum in
       order to purchase Eligible Service.
         The method of payment, including the amount of periodic deduction from
       payroll  and  the  time  period needed to purchase the Eligible Service,
       would be prescribed by the Executive Director and approved by the  Board
       of Trustees of NYCERS.
         IMPACT ON BENEFITS: The proposed legislation, if enacted, would permit
       the  Eligible  Members  to  acquire  service  credit  for their Eligible
       Service and would increase their expected benefits payable from NYCERS.
         FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: Based  on  the  actuarial
       assumptions and methods described herein, the enactment of this proposed
       legislation  would  increase  the  Actuarial  Present  Value of Benefits
       ("APVB") of NYCERS by approximately $760,000 as of June 30, 2010.
         In addition, the Actuarial Present  Value  ("APV")  of  future  member
       contributions  would  decrease  by  approximately $40,000 as of June 30,
       2010. The member contributions to buy back the prior service would equal
       approximately $370,000 measured as of June 30, 2010.
         Consequently, the APV  of  net  future  employer  contributions  would
       increase by approximately $430,000 as of June 30, 2010.
         FINANCIAL IMPACT - ANNUAL EMPLOYER COSTS: Based on the Actuary's actu-
       arial  assumptions and methods in effect on June 30, 2010, the enactment
       of this proposed legislation would increase first year  annual  employer
       costs to NYCERS by approximately $60,000.
         FINANCIAL  IMPACT - EMPLOYER CONTRIBUTIONS: If enacted during the 2012
       Legislative Session on or before June 30, 2012, and  if  these  Eligible
       Members  elect to purchase Eligible Service, that Eligible Service would
       likely first be reflected in the June 30, 2012 census data.  In  accord-
       ance  with  the  One-Year  Lag  methodology  used  to determine employer
       contributions, increased employer contributions would be consistent with
       the increased employer costs and would be  determined  for  Fiscal  Year
       2014.
         If enacted during the 2012 Legislative Session after June 30, 2012 and
       on  or  before  June 30, 2013, increased employer contributions would be
       determined for Fiscal Year 2015.
         CENSUS DATA: The census data used for the results presented herein was
       the active data used in the June 30, 2010 (Lag) actuarial  valuation  of
       NYCERS  used to determine Preliminary Fiscal Year 2012 employer contrib-
       utions, supplemented by additional information provided by the  Eligible
       Members.
         This  supplemental  information  indicates  that  the Eligible Members
       would be  eligible  to  purchase  approximately  48  years  of  Eligible
       Service.
         ACTUARIAL  ASSUMPTIONS  AND  METHODS:  The  APVB, APV of future member
       contributions, APV of  future  salaries,  employer  costs  and  employer
       contributions shown herein have been determined using estimated benefits
       A. 6424--A                          3
       and the applicable actuarial assumptions and methods currently in effect
       for the June 30, 2010 (Lag) actuarial valuation of NYCERS.
         POTENTIAL  CHANGES IN ACTUARIAL ASSUMPTIONS AND METHODS: The impact of
       enactment of the proposed legislation provided in this Fiscal  Note  has
       been based on the continued use of the current actuarial assumptions and
       methods.
         However,  the  Actuary  is currently in the process of proposing a new
       package of actuarial assumptions and  methods  for  use  in  determining
       employer  contributions to NYCERS for Fiscal Year 2012 and after, as the
       current actuarial assumptions no longer  represent  the  Actuary's  best
       estimates.
         It  it  anticipated that the proposed new package of actuarial assump-
       tions and methods would likely result in a greater increase in APVB than
       the amount determined under the current actuarial assumptions and  meth-
       ods.    Annual employer costs and contributions would increase similarly
       assuming that the prior service obligation associated with this increase
       in APVB were amortized over a period comparable to that  required  under
       the current actuarial methodology.
         Hence, the estimated financial impact of proposed legislation incorpo-
       rating  the new package of actuarial assumptions and methods is expected
       to differ from the financial impact computed using the actuarial assump-
       tions and methods continued from Fiscal Year 2011.
         ECONOMIC VALUES OF BENEFITS: The actuarial assumptions used to  deter-
       mine  the financial impact of the proposed legislation discussed in this
       Fiscal Note are those appropriate for budgetary models  and  determining
       annual employer contributions to NYCERS.
         However, the economic assumptions (current and proposed) that are used
       for  determining  employer  contributions  do not develop risk-adjusted,
       economic values of benefits.  Such  risk-adjusted,  economic  values  of
       benefits  would  likely differ significantly from those developed by the
       budgetary models.
         STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the  Chief
       Actuary  for  the New York City Retirement Systems. I am a Fellow of the
       Society of Actuaries and a Member of the American Academy of  Actuaries.
       I meet the Qualification Standards of of the American Academy of Actuar-
       ies to render the actuarial opinion contained herein.
         FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
       during the 2012 Legislative Session. It is Fiscal  Note  2012-01,  dated
       January  12,  2012,  prepared by the Chief Actuary for the New York City
       Employees' Retirement System.