Bill Text: NY A06862 | 2023-2024 | General Assembly | Amended
Bill Title: Increases benefits payable by the correction officers' variable supplements fund to beneficiaries.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-03-21 - print number 6862a [A06862 Detail]
Download: New_York-2023-A06862-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6862--A 2023-2024 Regular Sessions IN ASSEMBLY May 8, 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 administrative code of the city of New York, in relation to increasing benefits payable by the correction officers' variable supplements fund to beneficiaries The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 13-194 of the administrative code of the city of 2 New York is amended by adding a new subdivision 12 to read as follows: 3 12. In addition to the payments set forth in paragraphs (c) and (d) of 4 subdivision four of this section, there shall be paid to each benefici- 5 ary on or about the December fifteenth next succeeding his or her date 6 of retirement, an amount equal to the variable supplements payments, 7 subject to the provisions of items (i) and (ii) of subparagraph one of 8 paragraph (e) of subdivision four of this section, that he or she would 9 have received, had he or she retired on the date of his or her earliest 10 eligibility for service retirement, in the period measured from (1) the 11 later of (i) such earliest eligibility date and (ii) January first, two 12 thousand twenty-four and (2) his or her date of retirement. 13 § 2. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would provide certain NYCERS Correction officers a lump sum benefit upon retirement, commonly referred to as a Deferred Retirement Option Plan (DROP), equal to the amount of Correction Officer Variable Supplements Fund (COVSF) payments such officer would have received if he or she had retired at the later of their respective earliest service retirement eligibility date or January 1, 2024. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08663-03-4A. 6862--A 2 EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Millions) Year NYCERS 2025 9.9 2026 10.0 2027 10.2 2028 10.4 2029 10.6 2030 10.8 2031 11.0 2032 11.2 2033 11.4 2034 4.7 2035 4.9 2036 5.1 2037 5.2 2038 5.4 2039 5.5 2040 5.6 2041 5.6 2042 5.7 2043 5.7 2044 5.7 2045 5.6 2046 5.7 2047 5.7 2048 5.8 2049 5.9 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. INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES as of June 30, 2023 ($ in Millions) Present Value (PV) NYCERS PV of Benefits: 71.9 PV of Employee Contributions: 0.0 PV of Employer Contributions: 71.9 Unfunded Accrued Liabilities: 43.0 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY NYCERS Number of Payments: 9 Fiscal Year of Last Payment: 2033 Amortization Payment: 6.8 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.A. 6862--A 3 NYCERS Active Members - Number Count: 6,097 - Average Age: 43.0 - Average Service: 12.4 - Average Salary: 128,500 IMPACT ON MEMBER BENEFITS: This proposed legislation would provide to NYCERS correction officers who continue to work beyond their earliest service retirement eligibility date a lump sum DROP payment consisting of the annual COVSF payment each year beyond the later of their earliest service retirement date or January 1, 2024 (i.e., the COVSF payments the retiree would have received if he or she had retired at his or her earliest service retirement eligibility date or January 1, 2024, which- ever is later) without any adjustment for interest. The DROP would not apply to deaths or to disability retirement, even if those events occur after the earliest service retirement eligibility date. 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). 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 2024-30 dated March 19, 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.
