Bill Text: NY S04667 | 2025-2026 | General Assembly | Introduced
Bill Title: Provides that for New York city uniformed 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) 2025-02-11 - REFERRED TO CIVIL SERVICE AND PENSIONS [S04667 Detail]
Download: New_York-2025-S04667-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4667 2025-2026 Regular Sessions IN SENATE February 11, 2025 ___________ Introduced by Sen. JACKSON -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the retirement and social security law, in relation to service retirement benefits for uniformed sanitation 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 sanita- 13 tion revised plan members of the New York city employees' retirement 14 system, the normal service retirement benefit shall not be reduced by 15 the primary social security retirement benefit commencing at age sixty- 16 two as provided in section five hundred eleven of this article. 17 b. The early service retirement benefit for police/fire members, New 18 York city uniformed sanitation revised plan members and investigator 19 revised plan members shall be a pension equal to two and one-tenths 20 percent of final average salary times years of credited service at the 21 completion of twenty years of service or upon attainment of age sixty- 22 two, increased by one-third of one percent of final average salary for 23 each month of service in excess of twenty years, but not in excess of 24 fifty percent of final average salary, less fifty percent of the primary EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07037-05-5S. 4667 2 1 social security retirement benefit commencing at age sixty-two as 2 provided in section five hundred eleven of this article, provided, 3 however, that New York city police/fire revised plan members, New York 4 city uniformed sanitation revised plan members and investigator revised 5 plan members shall not be eligible to retire for service prior to the 6 attainment of twenty years of credited service, and provided further 7 that for New York city uniformed sanitation revised plan members of the 8 New York city employees' retirement system, the early service retirement 9 benefit shall not be reduced by the primary social security retirement 10 benefit commencing at age sixty-two as provided in section five hundred 11 eleven of this article. 12 c. A police/fire member, a New York city uniformed sanitation revised 13 plan member or an investigator revised plan member who retires with 14 twenty-two years of credited service or less may become eligible for 15 annual escalation of the service retirement benefit if [he] such member 16 elects to have the payment of [his] such member's benefit commence on 17 the date [he] such member would have completed twenty-two years and one 18 month or more of service. In such event, the service retirement benefit 19 shall equal two percent of final average salary for each year of credit- 20 ed service, less fifty percent of the primary social security retirement 21 benefit commencing at age sixty-two as provided in section five hundred 22 eleven of this article, except that for New York city uniformed sanita- 23 tion revised plan members of the New York city employees' retirement 24 system, the service retirement benefit shall not be reduced by the 25 primary social security retirement benefit commencing at age sixty-two 26 as provided in section five hundred eleven of this article. 27 § 2. Section 511 of the retirement and social security law is amended 28 by adding a new subdivision h to read as follows: 29 h. This section shall not apply to New York city uniformed sanitation 30 revised plan members of the New York city employees' retirement system 31 who receive a service retirement benefit pursuant to section five 32 hundred five of this article or a deferred vested benefit pursuant to 33 section five hundred sixteen of this article. 34 § 3. Subdivision c of section 516 of the retirement and social securi- 35 ty law, as amended by chapter 18 of the laws of 2012, is amended to read 36 as follows: 37 c. The deferred vested benefit of police/fire members, New York city 38 police/fire revised plan members, New York city uniformed 39 correction/sanitation revised plan members or investigator revised plan 40 members shall be a pension commencing at early retirement age equal to 41 two and one-tenths percent of final average salary times years of cred- 42 ited service, less fifty percent of the primary social security retire- 43 ment benefit commencing at age sixty-two, as provided in section five 44 hundred eleven of this article, except that for New York city uniformed 45 sanitation revised plan members of the New York city employees' retire- 46 ment system, the deferred vested benefit shall not be reduced by the 47 primary social security retirement benefit commencing at age sixty-two 48 as provided in section five hundred eleven of this article. A 49 police/fire member, a New York city police/fire revised plan member, a 50 New York city uniformed correction/sanitation revised plan member or 51 investigator revised plan member may elect to receive [his] such 52 member's vested benefit commencing at early retirement age or age 53 fifty-five. If the vested benefit commences before early retirement age, 54 the benefit shall be reduced by one-fifteenth for each year, if any, 55 that the member's early retirement age is in excess of age sixty, and by 56 one-thirtieth for each additional year by which the vested benefitS. 4667 3 1 commences prior to early retirement age. If such vested benefit is 2 deferred until after such member's normal retirement age, the benefit 3 shall be computed and subject to annual escalation in the same manner as 4 provided for an early retirement benefit pursuant to subdivision c of 5 section five hundred five of this article. 6 § 4. Notwithstanding any provision of law, rule or regulation to the 7 contrary, any effect on a participating employer's contribution rate due 8 to the provisions of this act shall not apply to the calculation of such 9 participating employer's contribution rate for the purposes of subdivi- 10 sion c of section 500 of the retirement and social security law. 11 § 5. This act shall take effect on the sixtieth day after it shall 12 have become a law. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would 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 members of NYCERS. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Millions) Year NYCERS 2026 23.4 2027 22.1 2028 23.6 2029 25.2 2030 26.7 2031 28.1 2032 29.4 2033 30.9 2034 32.4 2035 33.9 2036 35.3 2037 36.7 2038 38.1 2039 39.5 2040 40.9 2041 42.4 2042 44.0 2043 37.1 2044 38.6 2045 40.3 2046 41.9 2047 43.6 2048 45.3 2049 47.0 2050 48.8 Projected contributions include future new hires that may be impacted. For Fiscal Year 2051 and beyond, the increase in normal cost for new entrants will remain level as a percent of pay for the impacted popu- lation (approximately 2.77%). The entire increase in employer contributions will be allocated to New York City. INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES as of June 30, 2024 ($ in Millions)S. 4667 4 Present Value (PV) NYCERS (1) PV of Employer Contributions: 254.2 (2) PV of Employee Contributions: 0.0 Total PV of Benefits (1) + (2): 254.2 UNFUNDED ACCRUED LIABILITY (UAL): Actuarial Accrued Liabilities are the portion of the Present Value of Benefits allocated to past service. Changes in UAL for active members were amortized over the expected remaining working lifetime of those impacted using level dollar payments. UAL attributable to inactive members was recognized in the first year. AMORTIZATION OF UNFUNDED ACCRUED LIABILITY NYCERS Increase (Decrease) in UAL: 82.0 M Number of Payments: 17 Amortization Payment: 8.4 M Additional One-time Payment: 2.6 M CENSUS DATA: The estimates presented herein are based on preliminary census data collected as of June 30, 2024. The census data for the impacted population is summarized below. NYCERS Active Members - Number Count: 5,074 - Average Age: 39.9 - Average Service: 6.5 - Average Salary: 94,500 Term. Vested Members - Number Count: 99 - Average Age: 43.6 IMPACT ON MEMBER BENEFITS: Currently, Tier 3 normal service retire- ment, early service retirement, and vested retirement benefits for Sani- tation members in 22-Year Plans are subject to an offset equal to 50% of the primary social security benefit as defined in Retirement and Social Security Law (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 OtherS. 4667 5 Postemployment Benefits). This Fiscal Note does not reflect any chapter laws that may have been enacted during the current legislative session. 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 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 2025-10 dated February 10, 2025 was prepared by the Chief Actuary for the New York City Retire- ment Systems and Pension Funds and is intended for use only during the 2025 Legislative Session.
