Bill Text: NY S04114 | 2011-2012 | General Assembly | Introduced
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 (Republican 1-0)
Status: (Introduced - Dead) 2012-02-08 - PRINT NUMBER 4114A [S04114 Detail]
Download: New_York-2011-S04114-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4114
2011-2012 Regular Sessions
I N S E N A T E
March 18, 2011
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
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:
The proposed legislation 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 Corporation ("HHC") at Coney Island Hospital who were
previously employed by 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").
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09344-01-1
S. 4114 2
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 their 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 2011
Legislative Session on or before June 30, 2011, and if these Eligible
Members elect to purchase Eligible Service, that Eligible Service would
likely first be reflected in the June 30, 2011 census data. In accord-
ance with the One-Year Lag methodology used to determine employer
contributions, increased employer contributions would be determined for
Fiscal Year 2013.
If enacted during the 2011 Legislative Session after June 30, 2011 and
on or before June 30, 2012, increased employer contributions would be
determined for Fiscal Year 2014.
FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES - POTENTIAL METHODOLOGY:
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 current actuarial assumptions and method do not represent
the only possible approach for funding NYCERS.
Historically, actuarial assumptions and methods have been reviewed on
average every five years in connection with an actuarial experience
study mandated by New York City Charter Section 96.
Following this review, the Actuary generally proposes changes in actu-
arial assumptions and methods that he believes appropriate and reason-
ably related to such experience period and future expectations.
The next such review is anticipated during Fiscal Year 2011 or 2012.
The estimated financial impact of proposed legislation incorporating
those revised actuarial assumptions and methods is expected to differ,
S. 4114 3
possibly significantly, from the financial impact computed using the
actuarial assumptions and methods continued from Fiscal Year 2010.
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
and the applicable actuarial assumptions and methods in effect for the
June 30, 2010 (Lag) actuarial valuation of NYCERS.
Note: The Actuarial Interest Rate ("AIR") assumption currently
employed for determining employer contributions does not represent a
risk-adjusted, economic discount rate. Such a risk-adjusted, economic
discount rate would produce APVs that differ form those shown herein.
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 the American Academy of Actuaries
to render the actuarial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This estimate is intended for use only
during the 2011 Legislative Session. It is Fiscal Note 2011-04, dated
February 2, 2011, prepared by the Chief Actuary for the New York City
Employees' Retirement System.
