Bill Text: NY S08497 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to amending the contribution provisions applicable to certain special plans to allow using any excess basic or additional member contributions to offset any deficits in such other contribution account prior to the date of retirement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2018-12-21 - SIGNED CHAP.448 [S08497 Detail]
Download: New_York-2017-S08497-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8497 IN SENATE May 9, 2018 ___________ Introduced by Sen. SAVINO -- 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 amending the contribution provisions applicable to certain New York City Employees' Retirement System (NYCERS) Special Plans subject to Retirement and Social Security Law (RSSL) Articles 14 and 15 to allow using any excess basic or additional member contributions to offset any deficits in such other contribution account prior to date of retirement The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (i) of paragraph 8 of subdivision e of section 2 504-a of the retirement and social security law, as amended by chapter 3 467 of the laws of 2017, is amended to read as follows: 4 (i) Such additional member contributions (and any interest thereon) 5 shall be paid into the contingent reserve fund of the retirement system 6 of which the participant is a member and shall not for any purpose be 7 deemed to be member contributions or accumulated contributions of a 8 member under section five hundred seventeen of this article or otherwise 9 while he or she is a participant in the twenty-year retirement program 10 or otherwise, except that, [upon the participant's separation from city11service as a result of retirement,] a surplus of such additional member 12 contributions that are paid into the retirement system's contingent 13 reserve fund may be used for the sole purpose of offsetting a deficit of 14 basic member contributions. 15 § 2. Subparagraph (i) of paragraph 12 of subdivision e of section 16 504-b of the retirement and social security law, as amended by chapter 17 467 of the laws of 2017, is amended to read as follows: 18 (i) All additional member contributions required by this subdivision 19 (and any interest thereon) which are received by the retirement system 20 of which the participant is a member shall be paid into its contingent 21 reserve fund and shall not for any purpose be deemed to be member 22 contributions or accumulated contributions of a member under section 23 five hundred seventeen of this article or otherwise while he or she is a EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15792-01-8S. 8497 2 1 participant in the twenty-year retirement program for captains and above 2 or otherwise, except that, [upon the participant's separation from city3service as a result of retirement,] a surplus of such additional member 4 contributions that are paid into the retirement system's contingent 5 reserve fund may be used for the sole purpose of offsetting a deficit of 6 basic member contributions. 7 § 3. Subparagraph (i) of paragraph 9 of subdivision e of section 504-d 8 of the retirement and social security law, as amended by chapter 467 of 9 the laws of 2017, is amended to read as follows: 10 (i) All additional member contributions required by this subdivision 11 (and any interest thereon) which are received by the retirement system 12 of which the participant is a member shall be paid into its contingent 13 reserve fund and shall not for any purpose be deemed to be member 14 contributions or accumulated contributions of a member under section 15 five hundred seventeen of this article or otherwise while he or she is a 16 participant in the twenty-year retirement program or otherwise, except 17 that, [upon the participant's separation from city service as a result18of retirement,] a surplus of such additional member contributions that 19 are paid into the retirement system's contingent reserve fund may be 20 used for the sole purpose of offsetting a deficit of basic member 21 contributions. 22 § 4. Subdivision d of section 517 of the retirement and social securi- 23 ty law, as amended by chapter 467 of the laws of 2017, is amended to 24 read as follows: 25 d. Notwithstanding any other provision of this article, a member shall 26 be entitled to withdraw any excess contributions within six months of 27 becoming subject to this article. Thereafter, such contributions, and 28 interest thereon, may only be withdrawn upon separation from service. 29 Upon retirement, such excess contributions, and any interest thereon, 30 may be withdrawn in a single lump sum, or at the election of the member 31 may be paid as an annuity under an option authorized pursuant to section 32 five hundred fourteen of this article[, or at the election of the33participant]. The retirement system may [be used] at any time use any 34 such excess contributions to offset a deficit of additional member 35 contributions as required pursuant to sections five hundred four-a, five 36 hundred four-b, and five hundred four-d of this article. The use of 37 basic member contributions to offset a deficit of additional member 38 contributions does not affect the contributions' tax designation pursu- 39 ant to section 414(h) of the Internal Revenue Code. 40 § 5. Subparagraph (i) of paragraph 8 of subdivision e of section 604-a 41 of the retirement and social security law, as amended by chapter 467 of 42 the laws of 2017, is amended to read as follows: 43 (i) Such additional member contributions (and any interest thereon) 44 shall be paid into the contingent reserve fund of the retirement system 45 of which the participant is a member and shall not for any purpose be 46 deemed to be member contributions or accumulated contributions of a 47 member under section six hundred thirteen of this article or otherwise 48 while he or she is a participant in the twenty-year retirement program 49 or otherwise, except that, [upon the participant's separation from city50service as a result of retirement,] a surplus of such additional member 51 contributions that are paid into the retirement system's contingent 52 reserve fund may be used for the sole purpose of offsetting a deficit of 53 basic member contributions. 54 § 6. Subparagraph (i) of paragraph 8 of subdivision e of section 604-b 55 of the retirement and social security law, as amended by chapter 467 of 56 the laws of 2017, is amended to read as follows:S. 8497 3 1 (i) Such additional member contributions (and any interest thereon) 2 shall be paid into the contingent reserve fund of the retirement system 3 of which the participant is a member and shall not for any purpose be 4 deemed to be member contributions or accumulated contributions of a 5 member under section six hundred thirteen of this article or otherwise 6 while he or she is a participant in the twenty-five-year and age fifty- 7 five retirement program or otherwise, except that, [upon the partic-8ipant's separation from city service as a result of retirement,] a 9 surplus of such additional member contributions that are paid into the 10 retirement system's contingent reserve fund may be used for the sole 11 purpose of offsetting a deficit of basic member contributions. 12 § 7. Subparagraph (i) of paragraph 7 of subdivision d of section 604-c 13 of the retirement and social security law, as amended by section 7 of 14 chapter 467 of the laws of 2017, is amended to read as follows: 15 (i) All additional member contributions required by this subdivision 16 (and any interest paid thereon) which are received by the retirement 17 system of which the participant is a member shall be paid into its 18 contingent reserve fund and shall not for any purpose be deemed to be 19 member contributions or accumulated contributions of a member under 20 section six hundred thirteen of this article or otherwise while he or 21 she is a participant in the twenty-five-year early retirement program or 22 otherwise, except that, [upon the participant's separation from city23service as a result of retirement,] a surplus of such additional member 24 contributions that are paid into the retirement system's contingent 25 reserve fund may be used for the sole purpose of offsetting a deficit of 26 basic member contributions. 27 § 8. Subparagraph (i) of paragraph 8 of subdivision e of section 604-c 28 of the retirement and social security law, as amended by section 8 of 29 chapter 467 of the laws of 2017, is amended to read as follows: 30 (i) Such additional member contributions (and any interest thereon) 31 shall be paid into the contingent reserve fund of the retirement system 32 of which the participant is a member and shall not for any purpose be 33 deemed to be member contributions or accumulated contributions of a 34 member under section six hundred thirteen of this article or otherwise 35 while he or she is a participant in the twenty-year/age fifty retirement 36 program or otherwise, except that, [upon the participant's separation37from city service as a result of retirement,] a surplus of such addi- 38 tional member contributions that are paid into the retirement system's 39 contingent reserve fund may be used for the sole purpose of offsetting a 40 deficit of basic member contributions. 41 § 9. Subparagraph (i) of paragraph 6 of subdivision f of section 604-d 42 of the retirement and social security law, as amended by chapter 467 of 43 the laws of 2017, is amended to read as follows: 44 (i) All additional member contributions required by this subdivision 45 (and any interest paid thereon) which are received by the retirement 46 system of which the participant is a member shall be paid into its 47 contingent reserve fund and shall not for any purpose be deemed to be 48 member contributions or accumulated contributions of a member under 49 section six hundred thirteen of this article or otherwise while he or 50 she is a participant in the age fifty-seven retirement program or other- 51 wise, except that, [upon the participant's separation from city service52as a result of retirement,] a surplus of such additional member contrib- 53 utions that are paid into the retirement system's contingent reserve 54 fund may be used for the sole purpose of offsetting a deficit of basic 55 member contributions.S. 8497 4 1 § 10. Subparagraph (i) of paragraph 10 of subdivision e of section 2 604-e of the retirement and social security law, as amended by section 3 10 of chapter 467 of the laws of 2017, is amended to read as follows: 4 (i) Such additional member contributions (and any interest thereon) 5 shall be paid into the contingent reserve fund of the retirement system 6 of which the participant is a member and shall not for any purpose be 7 deemed to be member contributions or accumulated contributions of a 8 member under section six hundred thirteen of this article or otherwise 9 while he or she is a participant in the twenty-five year retirement 10 program or otherwise, except that, [upon the participant's separation11from city service as a result of retirement,] a surplus of such addi- 12 tional member contributions that are paid into the retirement system's 13 contingent reserve fund may be used for the sole purpose of offsetting a 14 deficit of basic member contributions. 15 § 11. Subparagraph (i) of paragraph 10 of subdivision e of section 16 604-e of the retirement and social security law, as amended by section 17 11 of chapter 467 of the laws of 2017, is amended to read as follows: 18 (i) Such additional member contributions (and any interest thereon) 19 shall be paid into the contingent reserve fund of the retirement system 20 of which the participant is a member and shall not for any purpose be 21 deemed to be member contributions or accumulated contributions of a 22 member under section six hundred thirteen of this article or otherwise 23 while he or she is a participant in the twenty-five year retirement 24 program or otherwise, except that, [upon the participant's separation25from city service as a result of retirement,] a surplus of such addi- 26 tional member contributions that are paid into the retirement system's 27 contingent reserve fund may be used for the sole purpose of offsetting a 28 deficit of basic member contributions. 29 § 12. Subparagraph (i) of paragraph 10 of subdivision e of section 30 604-f of the retirement and social security law, as amended by section 31 12 of chapter 467 of the laws of 2017, is amended to read as follows: 32 (i) Such additional member contributions (and any interest thereon) 33 shall be paid into the contingent reserve fund of the retirement system 34 of which the participant is a member and shall not for any purpose be 35 deemed to be member contributions or accumulated contributions of a 36 member under section six hundred thirteen of this article or otherwise 37 while he or she is a participant in the twenty-five year retirement 38 program or otherwise, except that, [upon the participant's separation39from city service as a result of retirement,] a surplus of such addi- 40 tional member contributions that are paid into the retirement system's 41 contingent reserve fund may be used for the sole purpose of offsetting a 42 deficit of basic member contributions. 43 § 13. Subparagraph (i) of paragraph 10 of subdivision e of section 44 604-f of the retirement and social security law, as amended by section 45 13 of chapter 467 of the laws of 2017, is amended to read as follows: 46 (i) Such additional member contributions, and any interest thereon, 47 shall be paid into the contingent reserve fund of the retirement system 48 of which the participant is a member and shall not for any purpose be 49 deemed to be member contributions or accumulated contributions of a 50 member under section six hundred thirteen of this article or otherwise 51 while he or she is a participant in the twenty-five year retirement 52 program or otherwise, except that, [upon the participant's separation53from city service as a result of retirement,] a surplus of such addi- 54 tional member contributions that are paid into the retirement system's 55 contingent reserve fund may be used for the sole purpose of offsetting a 56 deficit of basic member contributions.S. 8497 5 1 § 14. Subparagraph (i) of paragraph 10 of subdivision e of section 2 604-g of the retirement and social security law, as amended by chapter 3 467 of the laws of 2017, is amended to read as follows: 4 (i) Such additional member contributions (and any interest thereon) 5 shall be paid into the contingent reserve fund of the retirement system 6 of which the participant is a member and shall not for any purpose be 7 deemed to be member contributions or accumulated contributions of a 8 member under section six hundred thirteen of this article or otherwise 9 while he or she is a participant in the twenty-five year/age fifty 10 retirement program or otherwise, except that, [upon the participant's11separation from city service as a result of retirement,] a surplus of 12 such additional member contributions that are paid into the retirement 13 system's contingent reserve fund may be used for the sole purpose of 14 offsetting a deficit of basic member contributions. 15 § 15. Subparagraph (i) of paragraph 10 of subdivision e of section 16 604-h of the retirement and social security law, as amended by chapter 17 467 of the laws of 2017, is amended to read as follows: 18 (i) Such additional member contributions (and any interest thereon) 19 shall be paid into the contingent reserve fund of the retirement system 20 of which the participant is a member and shall not for any purpose be 21 deemed to be member contributions or accumulated contributions of a 22 member under section six hundred thirteen of this article or otherwise 23 while he or she is a participant in the twenty-five year retirement 24 program or otherwise, except that, [upon the participant's separation25from city service as a result of retirement,] a surplus of such addi- 26 tional member contributions that are paid into the retirement system's 27 contingent reserve fund may be used for the sole purpose of offsetting a 28 deficit of basic member contributions. 29 § 16. Subdivision h of section 613 of the retirement and social secu- 30 rity law, as added by chapter 467 of the laws of 2017, is amended to 31 read as follows: 32 h. Notwithstanding any other provision of law to the contrary, [upon33the participant's separation from city service as a result of retire-34ment,] a participant may use any excess basic member contributions to 35 offset a deficit of additional member contributions as required pursuant 36 to sections six hundred four-a, six hundred four-b, six hundred four-c, 37 as added by chapter 96 of the laws of 1995, six hundred four-c, as added 38 by chapter 472 of the laws of 1995, six hundred four-d, six hundred 39 four-e, as added by chapter 576 of the laws of 2000, six hundred four-e, 40 as added by chapter 577 of the laws of 2000, six hundred four-f, as 41 added by chapter 559 of the laws of 2001, six hundred four-f, as added 42 by chapter 582 of the laws of 2001, six hundred four-g, and six hundred 43 four-h of this article. The use of basic member contributions to offset 44 a deficit of additional member contributions does not affect the 45 contributions' tax designation pursuant to section 414(h) of the Inter- 46 nal Revenue Code. 47 § 17. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This proposed legislation would amend the contribution provisions applicable to certain New York City Employees' Retirement System (NYCERS) Special Plans subject to Retirement and Social Security Law (RSSL) Articles 14 and 15 to allow using any excess basic or additional member contributions to offset any deficits in such other contribution account prior to date of retirement. The Effective Date: Upon enactment.S. 8497 6 PLANS IMPACTED BY THE PROPOSED LEGISLATION: The proposed legislation would cover those members of NYCERS who are participants in the follow- ing special plans requiring the payment of additional member contrib- utions (Special Plans): Article 14 Special Plans: *Twenty-Year Retirement Program for New York City Correction Members below the Rank of Captain *Twenty-Year Retirement Program for New York City Correction Members of the Rank of Captain or above *Twenty-Year Retirement Program for New York City Correction Members Article 15 Special Plans: *Twenty-Year Retirement Program for New York City Sanitation Members *Twenty-Five-Year and Age Fifty-Five Retirement Program for New York City Transit Authority Members *Optional Twenty-Five-Year Early Retirement Program for Certain New York City Members *Twenty-Year/Age Fifty Retirement Program for Triborough Bridge and Tunnel Members *Age Fifty-Seven Retirement Program for Certain New York City Members *Twenty-Five Year Retirement Program for Dispatcher Members *Twenty-Five Year Retirement Program for EMT Members *Twenty-Five Year Retirement Program for Deputy Sheriff Members *Twenty-Five Year Retirement Program for Special Officer, Parking Control Specialist, School Safety Agent, Campus Peace Officer or New York City Taxi and Limousine Inspector Members *Twenty-Five Year/Age Fifty Retirement Program for Automotive Members *Twenty-Five Year Retirement Program for Police Communications Members IMPACT ON BENEFITS PAYABLE: The proposed legislation would not affect the benefits payable to participants in the Special Plans. Rather, the proposed legislation would enable immediate reallocation of excess basic or additional member contributions to cover any deficits in such contribution accounts instead of performing such transfer of excess contributions at the date of retirement as permitted by Chapter 467 of the Laws of 2017. FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The enactment of this proposed legislation would not result in any change in employer contrib- utions. STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu- ary for, and independent of, the New York City Retirement Systems and Pension Funds. I am a Fellow of the Society of Actuaries, an Enrolled Actuary under the Employee Retirement Income and Security Act of 1974 (ERISA), a Member of the American Academy of Actuaries, and a Fellow of the Conference of Consulting Actuaries. I meet the Qualification Stand- ards of the American Academy of Actuaries to render the actuarial opin- ion contained herein. To the best of my 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 2018-26 dated May 4, 2018, was prepared by the Chief Actuary for the New York City Employees' Retirement System. This estimate is intended for use only during the 2018 Legislative Session.
