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A07572 Summary:

BILL NOA07572A
 
SAME ASSAME AS S07498-A
 
SPONSORPheffer Amato
 
COSPNSR
 
MLTSPNSR
 
Amd 603 & 604-g, R & SS L
 
Relates to eligibility for participants in the automotive 25 year/age 50 pension plan with more than 30 years of credited service who remain in active service after age 62 to receive a service retirement benefit equivalent to the standard service retirement benefit received by Tier IV members with the same age and service.
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A07572 Actions:

BILL NOA07572A
 
05/25/2023referred to governmental employees
01/03/2024referred to governmental employees
02/27/2024amend and recommit to governmental employees
02/27/2024print number 7572a
06/07/2024reference changed to ways and means
06/07/2024reported referred to rules
06/07/2024reported
06/07/2024rules report cal.609
06/07/2024substituted by s7498a
 S07498 AMEND=A JACKSON
 06/01/2023REFERRED TO CIVIL SERVICE AND PENSIONS
 01/03/2024REFERRED TO CIVIL SERVICE AND PENSIONS
 02/23/2024AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
 02/23/2024PRINT NUMBER 7498A
 03/12/2024REPORTED AND COMMITTED TO FINANCE
 06/06/2024COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/06/2024ORDERED TO THIRD READING CAL.1840
 06/06/2024HOME RULE REQUEST
 06/06/2024PASSED SENATE
 06/06/2024DELIVERED TO ASSEMBLY
 06/06/2024referred to governmental employees
 06/07/2024substituted for a7572a
 06/07/2024ordered to third reading rules cal.609
 06/07/2024home rule request
 06/07/2024passed assembly
 06/07/2024returned to senate
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A07572 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7572--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 25, 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 retirement and social security law, in  relation  to
          eligibility  for participants in the automotive 25 year/age 50 pension
          plan with more than 30 years of credited service who remain in  active
          service  after  age  62 to receive a service retirement benefit equiv-
          alent to the standard service retirement benefit received by  Tier  IV
          members with the same age and service
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision a of section 603 of the retirement  and  social
     2  security  law,  as amended by chapter 18 of the laws of 2012, is amended
     3  to read as follows:
     4    a. The service retirement benefit specified  in  section  six  hundred
     5  four  of this article shall be payable to members who have met the mini-
     6  mum service requirements upon retirement and attainment  of  age  sixty-
     7  two,  other  than  members who are eligible for early service retirement
     8  pursuant to subdivision c of section six hundred four-b of this article,
     9  subdivision c of section six hundred four-c of this article, subdivision
    10  d of section six hundred  four-d  of  this  article,  subdivision  c  of
    11  section six hundred four-e of this article, subdivision c of section six
    12  hundred  four-f  of  this article, [subdivision c of section six hundred
    13  four-g of this article,] subdivision c of section six hundred four-h  of
    14  this  article  or  subdivision  c  of section six hundred four-i of this
    15  article, provided, however, a member of a teachers' retirement system or
    16  the New York state and local  employees'  retirement  system  who  first
    17  joins such system before January first, two thousand ten or a member who
    18  is  a  uniformed  court officer or peace officer employed by the unified
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09945-04-4

        A. 7572--A                          2
 
     1  court system who first becomes a member of the New York state and  local
     2  employees' retirement system before April first, two thousand twelve may
     3  retire  without  reduction of his or her retirement benefit upon attain-
     4  ment  of  at  least  fifty-five years of age and completion of thirty or
     5  more years of service, provided, however, that a uniformed court officer
     6  or peace officer employed by the unified court system who first  becomes
     7  a member of the New York state and local employees' retirement system on
     8  or  after  January first, two thousand ten and retires without reduction
     9  of his or her retirement benefit upon attainment of at least  fifty-five
    10  years  of age and completion of thirty or more years of service pursuant
    11  to this section shall be  required  to  make  the  member  contributions
    12  required  by subdivision f of section six hundred thirteen of this arti-
    13  cle for all years of credited and creditable service,  provided  further
    14  that  the [the] preceding provisions of this subdivision shall not apply
    15  to a New York city revised plan member.
    16    § 2. Subdivision a of section 603 of the retirement and social securi-
    17  ty law, as amended by section 3-a of chapter 19 of the laws of 2008,  is
    18  amended to read as follows:
    19    a.  The  service  retirement  benefit specified in section six hundred
    20  four of this article shall be payable to members who have met the  mini-
    21  mum  service  requirements  upon retirement and attainment of age sixty-
    22  two, other than members who are eligible for  early  service  retirement
    23  pursuant to subdivision c of section six hundred four-b of this article,
    24  subdivision c of section six hundred four-c of this article, subdivision
    25  d  of  section  six  hundred  four-d  of  this article, subdivision c of
    26  section six hundred four-e of this article, subdivision c of section six
    27  hundred four-f of this article, [subdivision c of  section  six  hundred
    28  four-g  of this article,] subdivision c of section six hundred four-h of
    29  this article or subdivision c of section  six  hundred  four-i  of  this
    30  article  provided,  however, a member who is a peace officer employed by
    31  the unified court system or a member of a teachers' retirement system or
    32  the New York state and local employees'  retirement  system  may  retire
    33  without reduction of his or her retirement benefit upon attainment of at
    34  least  fifty-five years of age and completion of thirty or more years of
    35  service.
    36    § 3. Paragraph 3 of subdivision b of section 604-g of  the  retirement
    37  and social security law, as added by chapter 414 of the laws of 2002, is
    38  amended to read as follows:
    39    3.  Any election to be a participant in the twenty-five year/age fifty
    40  retirement program shall be irrevocable; provided that a participant who
    41  has more than thirty years of credited service and  who has remained  in
    42  active  service  after  reaching  sixty-two  years  of  age may elect to
    43  receive a service  retirement  benefit  calculated  in  accordance  with
    44  subdivision  b  of section six hundred four of this article in lieu of a
    45  service retirement benefit calculated in accordance with  subdivision  c
    46  of this section.
    47    §  4. This act shall take effect immediately; provided that the amend-
    48  ments to subdivision a of section 603 of the retirement and social secu-
    49  rity law made by section one of this act shall be subject to the expira-
    50  tion and reversion of such subdivision pursuant to  subdivision  (b)  of
    51  section  13  of  chapter  683 of the laws of 2003, as amended, when upon
    52  such date the provisions of section two of this act shall take effect.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY: This proposed legislation would permit certain Tier 4 members
        in NYCERS and BERS Automotive 25-Year/Age 50 Plans (Auto  25-Year  Plan)

        A. 7572--A                          3

        with 30 or more years of service to receive a service retirement benefit
        calculated under the Tier 4 basic plan, if greater.
 
                 EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                 by Fiscal Year for the first 25 years ($ in Thousands)
 
                Year    NYCERS      BERS      TOTAL
 
                2025     1,457        3         1,460
                2026     1,458        3         1,461
                2027     1,460        3         1,463
                2028     1,462        3         1,465
                2029     1,464        3         1,467
                2030     1,465        3         1,468
                2031     1,465        3         1,468
                2032     1,464        3         1,467
                2033     1,462        0         1,462
                2034     1,457        0         1,457
                2035       217        0           217
                2036       212        0           212
                2037       205        0           205
                2038       198        0           198
                2039       189        0           189
                2040       180        0           180
                2041       170        0           170
                2042       161        0           161
                2043       151        0           151
                2044       140        0           140
                2045       129        0           129
                2046       118        0           118
                2047       107        0           107
                2048        96        0            96
                2049        85        0            85
           Employer Contribution impact beyond Fiscal Year 2049 is not shown.
 
          The  initial  increase  in  employer  contributions of $1.5 million is
        estimated to be $1.4 million for New York City and $0.1 million for  the
        other obligors of NYCRS.

                  EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                          as of June 30, 2023 ($ in Thousands)
 
        Present Value (PV)                 NYCERS              BERS
        PV of Benefits:                    10,735              18
        PV of Employee Contributions:      0                   0
        PV of Employer Contributions:      10,735              18
        Unfunded Accrued Liabilities:      8,390               13
 
                       AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                                                NYCERS          BERS
             Number of Payments:                10              8
             Fiscal Year of Last Payment:       2034            2032
             Amortization Payment:              1,236 K         2 K

        A. 7572--A                          4
 
          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.
 
                                                NYCERS          BERS
             Active Members
             - Number Count:                    457             2
             - Average Age:                     53.3            50.0
             - Average Service:                 16.8            15.5
             - Average Salary:                  125,900         122,600
 
          IMPACT  ON  MEMBER  BENEFITS:    Currently,  Tier  4 Auto 25-Year Plan
        members who never previously participated in either the  55/25  plan  or
        57/5  plan enacted by Chapter 96 of the Laws of 1995 and who retire with
        30 or more years of service, receive a service retirement  benefit  that
        is equal to 60% of Final Average Salary (FAS).
          Under  the  proposed  legislation,  the service retirement benefit for
        such members with 30 or more years of service would be calculated as the
        greater of the above, and:
          * For those at least age 62, 60% of FAS plus 1.5% of FAS for each year
        of service beyond 30 years.
          * For those age 55 through 61, 60% of FAS plus 1.5% of  FAS  for  each
        year  of  service  beyond  30  years, multiplied by the applicable early
        retirement age reduction factor.
          The service retirement benefits for Tier 6 Auto 25-Year  Plan  members
        and  Tier 4 members with previous Tier 4 55/25 plan or 57/5 plan partic-
        ipation are assumed to remain unchanged.
          ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
        calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
        of the impacted retirement systems.
          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 2024-14 dated February
        22, 2024 was prepared by the Chief Actuary for the New York City Retire-
        ment Systems and Pension Funds. This estimate is intended for  use  only
        during the 2024 Legislative Session.
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