Relates to promotions of detectives; grants detectives of the third grade and detectives of the second grade the same rights in respect to the police pension fund as detectives of a grade higher after a certain period of time.
STATE OF NEW YORK
________________________________________________________________________
7714--A
2023-2024 Regular Sessions
IN ASSEMBLY
June 6, 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 promotions of detectives
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 14-114 of the administrative code of the city of
2 New York is amended by adding a new subdivision d to read as follows:
3 d. (1) When a detective of the third grade shall have served in the
4 rank of detective of the third grade for a period of fifteen years, such
5 detective shall have the same rights in respect to the police pension
6 fund as a detective of the third grade detailed to act as detective of
7 the second grade.
8 (2) When a detective of the second grade shall have served in the rank
9 of detective of the second grade for a period of ten years, such detec-
10 tive shall have the same rights in respect to the police pension fund as
11 a detective of the second grade detailed to act as detective of the
12 first grade.
13 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would increase the salary used for
determining pension benefits for certain NYPD detectives to salaries
equivalent to a detective of the next higher rank. Pensions for 3rd
grade detectives, who served in such rank for 15 years, would be based
on salaries for 2nd grade detectives, and pensions for 2nd grade detec-
tives, who served in such rank for 10 years, would be based on salaries
of 1st grade detectives.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08615-03-4
A. 7714--A 2
ILLUSTRATION - INCREASE IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year POLICE
2025 0.0
2026 0.9
2027 1.8
2028 2.7
2029 3.7
2030 4.7
2031 5.7
2032 6.8
2033 7.9
2034 9.1
2035 10.3
2036 11.6
2037 13.0
2038 14.5
2039 16.1
2040 16.9
2041 17.7
2042 18.6
2043 19.5
2044 20.4
2045 21.4
2046 22.4
2047 23.4
2048 24.5
2049 25.5
Projected contributions are based on historical experience for Tier 2
members. Future retirement experience may differ as Tier 3
members begin to retire.
The entire increase in employer contributions will be allocated to New
York City.
EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
The enactment of this proposed legislation is expected to increase the
Present Value of Future Benefits (PVFB) by approximately $7.5 million in
the first year and every year thereafter. Each year's PVFB increase will
depend on the actual experience of benefiting retirees and will be
recognized in the year benefits are first payable.
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
Recognized as Ongoing Gain/Loss POLICE
Number of Payments: 14
Fiscal Year of Last Payment: N/A
First-year Amortization Payment: $0.9 M
CENSUS DATA: The estimates presented herein are based on data provided
by the Police Pension Fund which was not audited but was checked for
reasonableness. This data was used to supplement valuation data
collected as of June 30, 2023.
A. 7714--A 3
Historical experience was used to estimate the number of retirees who
could potentially benefit from this proposed legislation and is summa-
rized below.
* 3rd grade detectives who retired after serving in such rank for 15
years - 187 retired over the past five years.
* 2nd grade detectives who retired after serving in such rank for 10
years - 78 retired over the past five years.
The average age of all detectives who retired over the past five years
is 49.3 for males and 49.2 for females, where approximately 84% of reti-
rees were male.
IMPACT ON MEMBER BENEFITS: The proposed legislation would permit 3rd
grade police detectives, who have served in such grade for at least 15
years, and 2nd grade police detectives, who have served in such grade
for at least 10 years, to have their pension calculations based on a
higher assumed salary. Pensions for such 3rd grade detectives would be
based on salaries 2nd grade detectives and pensions for such 2nd grade
detectives would be based on salaries of 1st grade detectives.
With respect to an individual member, the impact on benefits due to
this proposed legislation could vary greatly depending on the member's
age, years of service, retirement cause, and Tier.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the actuarial assumptions and methods to be used for
the Preliminary Fiscal Year 2025 employer contributions of the impacted
retirement systems. In addition:
* Future retirement patterns were assumed to remain consistent with
prior experience. The number of 3rd grade detectives who retire after
serving in such rank for 15 years was assumed to be 40 per year. The
number of 2nd grade detectives who retire after serving in such rank for
10 years was assumed to be 20 per year.
* For 3rd grade police detectives who retire and benefit from the
proposed legislation in the first year, annual pension benefits are
assumed to increase by $8,700 for Tier 2 members and $8,400 for Tier 3
members. Each year thereafter, annual pension benefits for new retirees
are assumed to increase by an additional 3% per year.
* For 2nd grade police detectives who retire and benefit from the
proposed legislation in the first year, annual pension benefits are
assumed to increase by $11,600 for Tier 2 members and $11,300 for Tier 3
members. Each year thereafter, annual pension benefits for new retirees
are assumed to increase by an additional 3% per year.
* For police detectives who benefit from the proposed legislation, the
assumed number of retirements for each gender, and the assumed retire-
ment ages for each gender are assumed to remain the same.
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
A. 7714--A 4
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 2024-56 dated May 14,
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.
