A08365 Summary:
| BILL NO | A08365 |
| SAME AS | SAME AS S06102-A |
| SPONSOR | Abbate |
| COSPNSR | |
| MLTSPNSR | |
| Add §13-157.5, amd §13-125.2, NYC Ad Cd; amd §§444, 445, 613 & 603, add §§445-j & 604-j, R & SS L | |
| Relates to the twenty-five year retirement program for members of the New York city employees' retirement system who are employed as fire protection inspectors and associate fire protection inspectors; establishes the 25-year retirement programs for applicable members. | |
A08365 Actions:
| BILL NO | A08365 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 06/12/2017 | referred to governmental employees | |||||||||||||||||||||||||||||||||||||||||||||||||
| 01/03/2018 | referred to governmental employees | |||||||||||||||||||||||||||||||||||||||||||||||||
A08365 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 8365 2017-2018 Regular Sessions IN ASSEMBLY June 12, 2017 ___________ Introduced by M. of A. ABBATE -- read once and referred to the Committee on Governmental Employees AN ACT to amend the administrative code of the city of New York, in relation to the establishment of a twenty-five year retirement program for members of the New York city employees' retirement system employed as fire protection inspectors and associate fire protection inspec- tors; and to amend the retirement and social security law, in relation to the establishment of twenty-five year retirement programs for such members who are subject to articles 11 and 15 of such law The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The administrative code of the city of New York is amended 2 by adding a new section 13-157.5 to read as follows: 3 § 13-157.5 Twenty-five year retirement program for fire protection 4 inspector members. a. Definitions. The following words and phrases as 5 used in this section shall have the following meanings unless a differ- 6 ent meaning is plainly required by the context. 7 1. "Fire protection inspector member" shall mean a member of the 8 retirement system who is employed by the city of New York or by the New 9 York city fire department in a title whose duties are those of a fire 10 protection inspector or associate fire protection inspector, or in a 11 title whose duties require the supervision of employees whose duties are 12 those of a fire protection inspector or associate fire protection 13 inspector. 14 2. "Twenty-five year retirement program" shall mean all the terms and 15 conditions of this section. 16 3. "Starting date of the twenty-five year retirement program" shall 17 mean the date of enactment of this section. 18 4. "Participant in the twenty-five year retirement program" shall mean 19 any fire protection inspector member who, under the applicable 20 provisions of subdivision b of this section, is entitled to the rights, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05670-04-7A. 8365 2 1 benefits and privileges and is subject to the obligations of the twen- 2 ty-five year retirement program as applicable to him or her. 3 5. "Discontinued member" shall mean a participant in the twenty-five 4 year retirement program who, while he or she was a fire protection 5 inspector member, discontinued service as such a member and has a right 6 to a deferred vested benefit under the provisions of subdivision d of 7 this section. 8 6. "Allowable service as a fire protection inspector member" shall 9 mean (i) all service while employed by the city of New York or by the 10 New York city fire department in a title whose duties are those of a 11 fire protection inspector or associate fire protection inspector, and 12 (ii) with respect to an individual who was employed upon the effective 13 date of this section or thereafter in a title whose duties are those of 14 a fire protection inspector or associate fire protection inspector, all 15 such service subsequent thereto in a title whose duties require the 16 supervision of employees whose duties are those of a fire protection 17 inspector or associate fire protection inspector in the New York city 18 fire department. 19 b. Participation in the twenty-five year retirement program. 1. 20 Subject to the provisions of paragraphs five and six of this subdivi- 21 sion, any person who is a fire protection inspector member on the start- 22 ing date of the twenty-five year retirement program may elect to become 23 a participant in the twenty-five year retirement program by filing, 24 within one hundred eighty days after the starting date of the twenty- 25 five year retirement program, a duly executed application for such 26 participation with the retirement system of which such person is a 27 member, provided he or she is such a fire protection inspector member on 28 the date such application is filed. 29 2. Subject to the provisions of paragraphs five and six of this subdi- 30 vision, any person who becomes a fire protection inspector member after 31 the starting date of the twenty-five year retirement program may elect 32 to become a participant in the twenty-five year retirement program by 33 filing, within one hundred eighty days after becoming such a fire 34 protection inspector member, a duly executed application for such 35 participation with the retirement system of which such person is a 36 member, provided he or she is such a fire protection inspector member on 37 the date such application is filed. 38 3. Any election to be a participant in the twenty-five year retirement 39 program shall be irrevocable. 40 4. Where any participant in the twenty-five year retirement program 41 shall cease to be employed as a fire protection inspector member, he or 42 she shall cease to be such a participant and, during any period in which 43 such person is not so employed, he or she shall not be a participant in 44 the twenty-five year retirement program and shall not be eligible for 45 the benefits of subdivision c of this section. 46 5. Where any participant in the twenty-five year retirement program 47 terminates service as a fire protection inspector member and returns to 48 such service as a fire protection inspector at a later date, he or she 49 shall again become such a participant on that date. 50 6. Notwithstanding any other provision of law to the contrary, any 51 person who is eligible to become a participant in the twenty-five year 52 retirement program pursuant to paragraph one or two of this subdivision 53 for the full one hundred eighty day period provided for in such applica- 54 ble paragraph and who fails to timely file a duly executed application 55 for such participation with the retirement system, shall not thereafter 56 be eligible to become a participant in such program.A. 8365 3 1 c. Service retirement benefits. 1. A participant in the twenty-five 2 year retirement program: 3 (i) who has completed twenty-five or more years of allowable service 4 as a fire protection inspector member; and 5 (ii) who files with the retirement system an application for service 6 retirement setting forth at what time, not less than thirty days subse- 7 quent to the execution and filing thereof, he or she desires to be 8 retired; and 9 (iii) who shall be a participant in the twenty-five year retirement 10 program at the time so specified for his or her retirement; shall be 11 retired pursuant to the provisions of this section affording early 12 service retirement. 13 2. Notwithstanding any other provision of law to the contrary, the 14 early service retirement benefit for a participant in the twenty-five 15 year retirement program who retires pursuant to paragraph one of this 16 subdivision shall be a retirement allowance consisting of: 17 (i) an amount, on account of the required minimum period of service, 18 equal to the sums of (a) an annuity which shall be the actuarial equiv- 19 alent of the accumulated deductions from his or her pay during such 20 period, (b) a pension for increased-take-home-pay which shall be the 21 actuarial equivalent of the reserve for increased-take-home-pay to which 22 he or she may be entitled for such period, and (c) a pension which, when 23 added to such annuity and such pension for increased-take-home-pay, 24 produces a retirement allowance equal to fifty-five percent of the sala- 25 ry earned or earnable in the year prior to his or her retirement; plus 26 (ii) an amount for each additional year of allowable service as a fire 27 protection inspector member, or fraction thereof, beyond such required 28 minimum period of service equal to one and seven-tenths percent of the 29 salary earned or earnable in the year prior to his or her retirement for 30 such allowable service during the period from the completion of twenty- 31 five years of allowable service as a fire protection inspector member to 32 the date of retirement. 33 d. Vesting. 1. A participant in the twenty-five year retirement 34 program who: (i) discontinues service as a fire protection inspector 35 member, other than by death or retirement; and (ii) prior to such 36 discontinuance, completed five but less than twenty-five years of allow- 37 able city service; and (iii) does not withdraw in whole or in part his 38 or her accumulated member contributions pursuant to section 13-141 of 39 this chapter, shall be entitled to receive a deferred vested benefit as 40 provided in this subdivision. 41 2. (i) Upon such discontinuance under the conditions and in compliance 42 with the provisions of paragraph one of this subdivision, such deferred 43 vested benefit shall vest automatically. 44 (ii) Such vested benefit shall become payable on the earliest date on 45 which such discontinued member could have retired for service if such 46 discontinuance had not occurred. 47 3. Such deferred vested benefit shall be a retirement allowance 48 consisting of an amount equal to two and two-tenths percent of such 49 discontinued member's salary earned or earnable in the year prior to his 50 or her discontinuance, multiplied by the number of years of allowable 51 service as a fire protection member. 52 e. Member contributions. All fire protection inspector members of the 53 twenty-five year retirement program shall be required to make member 54 contributions and additional member contributions in accordance with and 55 subject to the same rights, privileges, obligations and procedures as 56 govern the member contributions and additional member contributionsA. 8365 4 1 required by subdivision d of section four hundred forty-five-j of the 2 retirement and social security law. 3 For the purpose of applying under this subdivision, such subdivision d 4 of section four hundred forty-five-j of the retirement and social secu- 5 rity law to a fire protection inspector member of the twenty-five year 6 retirement program who is subject to the provisions of this section, and 7 is not subject to the provisions of article eleven of the retirement and 8 social security law, the term "credited service," as used in such subdi- 9 vision, shall be deemed to mean allowable service as a fire protection 10 inspector member. 11 § 2. Subdivision a of section 444 of the retirement and social securi- 12 ty law, as amended by section 141 of subpart B of part C of chapter 62 13 of the laws of 2011, is amended to read as follows: 14 a. Except as provided in subdivision c of section four hundred forty- 15 five-a of this article, subdivision c of section four hundred forty- 16 five-b of this article, subdivision c of section four hundred forty- 17 five-c of this article, subdivision c of section four hundred 18 forty-five-d of this article as added by chapter four hundred seventy- 19 two of the laws of nineteen hundred ninety-five, subdivision c of 20 section four hundred forty-five-e of this article, subdivision c of 21 section four hundred forty-five-f of this article [and], subdivision c 22 of section four hundred forty-five-h of this article and subdivision c 23 of section four hundred forty-five-j, the maximum retirement benefit 24 computed without optional modification provided to a member of a retire- 25 ment system who is subject to the provisions of this article, other than 26 a police officer, a firefighter, an investigator member of the New York 27 city employees' retirement system, a member of the uniformed personnel 28 in institutions under the jurisdiction of the New York city department 29 of correction who receives a performance of duty disability retirement 30 allowance, a member of the uniformed personnel in institutions under the 31 jurisdiction of the department of corrections and community supervision 32 or a security hospital treatment assistant, as those terms are defined 33 in subdivision i of section eighty-nine of this chapter, who receives a 34 performance of duty disability retirement allowance, a member of a 35 teachers' retirement system, New York city employees' retirement system, 36 New York city board of education retirement system or a member of the 37 New York state and local employees' retirement system or a member of the 38 New York city employees' retirement system or New York city board of 39 education retirement system employed as a special officer, parking 40 control specialist, school safety agent, campus peace officer, taxi and 41 limousine inspector or a police communications member and who receives a 42 performance of duty disability pension, from funds other than those 43 based on a member's own or increased-take-home-pay contributions, shall, 44 before any reduction for early retirement, be sixty per centum of the 45 first fifteen thousand three hundred dollars of final average salary, 46 and fifty per centum of final average salary in excess of fifteen thou- 47 sand three hundred dollars, and forty per centum of final average salary 48 in excess of twenty-seven thousand three hundred dollars, provided, 49 however, that the benefits provided by subdivision c of section four 50 hundred forty-five-d of this article as added by chapter four hundred 51 seventy-two of the laws of nineteen hundred ninety-five based upon the 52 additional member contributions required by subdivision d of such 53 section four hundred forty-five-d shall be subject to the maximum 54 retirement benefit computations set forth in this section. The maximum 55 retirement benefit computed without optional modification payable to a 56 police officer, an investigator member of the New York city employees'A. 8365 5 1 retirement system or a firefighter shall equal that payable upon 2 completion of thirty years of service, except that the maximum service 3 retirement benefit computed without optional modification shall equal 4 that payable upon completion of thirty-two years of service. 5 § 3. Subdivision a of section 445 of the retirement and social securi- 6 ty law, as amended by chapter 295 of the laws of 2007, is amended to 7 read as follows: 8 a. No member of a retirement system who is subject to the provisions 9 of this article shall retire without regard to age, exclusive of retire- 10 ment for disability, unless he or she is a policeman, an investigator 11 member of the New York city employees' retirement system, fireman, 12 correction officer, a qualifying member as defined in section eighty- 13 nine-t, as added by chapter six hundred fifty-seven of the laws of nine- 14 teen hundred ninety-eight, of this chapter, sanitation man, a special 15 officer (including persons employed by the city of New York in the title 16 urban park ranger or associate urban park ranger), school safety agent, 17 campus peace officer or a taxi and limousine commission inspector member 18 of the New York city employees' retirement system or the New York city 19 board of education retirement system, a dispatcher member of the New 20 York city employees' retirement system, a police communications member 21 of the New York city employees' retirement system, an EMT member of the 22 New York city employees' retirement system, a deputy sheriff member of 23 the New York city employees' retirement system, a fire protection 24 inspector member of the New York city employees' retirement system, a 25 correction officer of the Westchester county correction department as 26 defined in section eighty-nine-e of this chapter or employed in Suffolk 27 county as a peace officer, as defined in section eighty-nine-s, as added 28 by chapter five hundred eighty-eight of the laws of nineteen hundred 29 ninety-seven, of this chapter, employed in Suffolk county as a 30 correction officer, as defined in section eighty-nine-f of this chapter, 31 or employed in Nassau county as a correction officer, uniformed 32 correction division personnel, sheriff, undersheriff or deputy sheriff, 33 as defined in section eighty-nine-g of this chapter, or employed in 34 Nassau county as an ambulance medical technician, an ambulance medical 35 technician/supervisor or a member who performs ambulance medical techni- 36 cian related services, as defined in section eighty-nine-s, as amended 37 by chapter five hundred seventy-eight of the laws of nineteen hundred 38 ninety-eight, of this chapter, or employed in Nassau county as a peace 39 officer, as defined in section eighty-nine-s, as added by chapter five 40 hundred ninety-five of the laws of nineteen hundred ninety-seven, of 41 this chapter, or employed in Albany county as a sheriff, undersheriff, 42 deputy sheriff, correction officer or identification officer, as defined 43 in section eighty-nine-h of this chapter or is employed in St. Lawrence 44 county as a sheriff, undersheriff, deputy sheriff or correction officer, 45 as defined in section eighty-nine-i of this chapter or is employed in 46 Orleans county as a sheriff, undersheriff, deputy sheriff or correction 47 officer, as defined in section eighty-nine-l of this chapter or is 48 employed in Jefferson county as a sheriff, undersheriff, deputy sheriff 49 or correction officer, as defined in section eighty-nine-j of this chap- 50 ter or is employed in Onondaga county as a deputy sheriff-jail division 51 competitively appointed or as a correction officer, as defined in 52 section eighty-nine-k of this chapter or is employed in a county which 53 makes an election under subdivision j of section eighty-nine-p of this 54 chapter as a sheriff, undersheriff, deputy sheriff or correction officer 55 as defined in such section eighty-nine-p or is employed in Broome County 56 as a sheriff, undersheriff, deputy sheriff or correction officer, asA. 8365 6 1 defined in section eighty-nine-m of this chapter or is a Monroe county 2 deputy sheriff-court security, or deputy sheriff-jailor as defined in 3 section eighty-nine-n, as added by chapter five hundred ninety-seven of 4 the laws of nineteen hundred ninety-one, of this chapter or is employed 5 in Greene county as a sheriff, undersheriff, deputy sheriff or 6 correction officer, as defined in section eighty-nine-o of this chapter 7 or is a traffic officer with the town of Elmira as defined in section 8 eighty-nine-q of this chapter or is employed by Suffolk county as a park 9 police officer, as defined in section eighty-nine-r of this chapter or 10 is a peace officer employed by a county probation department as defined 11 in section eighty-nine-t, as added by chapter six hundred three of the 12 laws of nineteen hundred ninety-eight, of this chapter or is employed in 13 Rockland county as a deputy sheriff-civil as defined in section eighty- 14 nine-v of this chapter as added by chapter four hundred forty-one of the 15 laws of two thousand one, or is employed in Rockland county as a superi- 16 or correction officer as defined in section eighty-nine-v of this chap- 17 ter as added by chapter five hundred fifty-six of the laws of two thou- 18 sand one or is a paramedic employed by the police department in the town 19 of Tonawanda and retires under the provisions of section eighty-nine-v 20 of this chapter, as added by chapter four hundred seventy-two of the 21 laws of two thousand one, or is a county fire marshal, supervising fire 22 marshal, fire marshal, assistant fire marshal, assistant chief fire 23 marshal or chief fire marshal employed by the county of Nassau as 24 defined in section eighty-nine-w of this chapter and is in a plan which 25 permits immediate retirement upon completion of a specified period of 26 service without regard to age. Except as provided in subdivision c of 27 section four hundred forty-five-a of this article, subdivision c of 28 section four hundred forty-five-b of this article, subdivision c of 29 section four hundred forty-five-c of this article, subdivision c of 30 section four hundred forty-five-d of this article, subdivision c of 31 section four hundred forty-five-e of this article, subdivision c of 32 section four hundred forty-five-f of this article [and], subdivision c 33 of section four hundred forty-five-h of this article, and subdivision c 34 of section four hundred forty-five-j of this article, a member in such a 35 plan and such an occupation, other than a policeman or investigator 36 member of the New York city employees' retirement system or a fireman, 37 shall not be permitted to retire prior to the completion of twenty-five 38 years of credited service; provided, however, if such a member in such 39 an occupation is in a plan which permits retirement upon completion of 40 twenty years of service regardless of age, he or she may retire upon 41 completion of twenty years of credited service and prior to the 42 completion of twenty-five years of service, but in such event the bene- 43 fit provided from funds other than those based on such a member's own 44 contributions shall not exceed two per centum of final average salary 45 per each year of credited service. 46 § 4. The retirement and social security law is amended by adding a new 47 section 445-j to read as follows: 48 § 445-j. Optional twenty-five year improved benefit retirement program 49 for fire protection inspector members. a. Definitions. The following 50 words and phrases as used in this section shall have the following mean- 51 ings unless a different meaning is plainly required by the context. 52 1. "Retirement system" shall mean the New York city employees' retire- 53 ment system. 54 2. "Fire protection inspector member" shall mean (i) a member of the 55 retirement system who is subject to the provisions of this article, who 56 is employed by the city of New York or by the New York city fire depart-A. 8365 7 1 ment in a title whose duties are those of a fire protection inspector or 2 associate fire protection inspector; and (ii) a member of the retirement 3 system who, on the date this act shall take effect or thereafter, was 4 employed by the city of New York or by the New York city fire department 5 in a title whose duties are those of a fire protection inspector or 6 associate fire protection inspector and who, subsequent thereto, became 7 employed by the city of New York or by the New York city fire department 8 in a title whose duties require the supervision of employees whose 9 duties are those of a fire protection inspector or associate fire 10 protection inspector. 11 3. "Twenty-five year improved benefit retirement program" shall mean 12 all the terms and conditions of this section. 13 4. "Starting date of the twenty-five year improved benefit retirement 14 program" shall mean the date of enactment of the act which added this 15 section, as such date is certified pursuant to section forty-one of the 16 legislative law. 17 5. "Participant in the twenty-five year improved benefit retirement 18 program" shall mean any fire protection inspector member who, under the 19 applicable provisions of subdivision b of this section, is entitled to 20 the rights, benefits and privileges and is subject to the obligations of 21 the twenty-five year improved benefit retirement program, as applicable 22 to him or her. 23 6. "Administrative code" shall mean the administrative code of the 24 city of New York. 25 7. "Accumulated deductions" shall mean accumulated deductions as 26 defined in subdivision eleven of section 13-101 of the administrative 27 code. 28 8. "Optional retirement provisions" shall mean the right to retire and 29 receive a retirement allowance under this section upon the completion of 30 twenty-five years of allowable service. 31 9. "Allowable service" for purposes of this section shall mean (1) all 32 service while employed by the city of New York or by the New York city 33 fire department in a title whose duties are those of a fire protection 34 inspector or associate fire protection inspector, and (2) with respect 35 to an individual who was employed upon the effective date of this 36 section or thereafter in a title whose duties are those of a fire 37 protection inspector or associate fire protection inspector, all such 38 service subsequent thereto in a title whose duties require the super- 39 vision of employees whose duties are those of a fire protection inspec- 40 tor or associate fire protection inspector. 41 b. Election of twenty-five year improved benefit retirement program. 42 1. Subject to the provisions of paragraph five and six of this subdivi- 43 sion, any person who is a fire protection inspector member on the start- 44 ing date of the twenty-five year improved benefit retirement program may 45 elect to become a participant in the twenty-five year improved benefit 46 retirement program by filing, within one hundred eighty days after such 47 starting date, a duly executed application for such participation with 48 the retirement system, provided that he or she is such a fire protection 49 inspector member on the date such application is filed. 50 2. Subject to the provision of paragraphs five and six of this subdi- 51 vision, any person who becomes a fire protection inspector member after 52 the starting date of the twenty-five year improved benefit retirement 53 program may elect to become a participant in the twenty-five year 54 improved benefit retirement program by filing, within one hundred eighty 55 days after becoming such a fire protection inspector member, a duly 56 executed application for such participation with the retirement system,A. 8365 8 1 provided that he or she is such a fire protection inspector member on 2 the date such application is filed. 3 3. Any election to be a participant in the twenty-five year improved 4 benefit retirement program shall be irrevocable. 5 4. Where any participant in the twenty-five year improved benefit 6 retirement program shall cease to hold a position as a fire protection 7 inspector member, he or she shall cease to be such a participant and, 8 during any period in which such a person does not hold such a fire 9 protection inspector position, he or she shall not be a participant in 10 the twenty-five year improved benefit retirement program and shall not 11 be eligible for the benefits of subdivision c of this section. 12 5. Where any participant in the twenty-five year improved benefit 13 retirement program terminates service as a fire protection inspector 14 member and returns to such service as a fire protection inspector member 15 at a later date, he or she shall again become such a participant on that 16 date. 17 6. Notwithstanding any other provision of law to the contrary, any 18 person who is eligible to become a participant in the twenty-five year 19 improved benefit retirement program pursuant to paragraph one or two of 20 this subdivision for the full one hundred eighty day period provided for 21 in such applicable paragraph and who fails to timely file a duly 22 executed application for such participation with the retirement system, 23 shall not thereafter be eligible to become a participant in such 24 program. 25 c. Service retirement benefits. Notwithstanding any other provision of 26 law to the contrary, where a participant in the twenty-five year 27 improved benefit retirement program, who is otherwise qualified for a 28 retirement allowance pursuant to the optional retirement provision set 29 forth in subdivision a of this section, has made and/or paid, while he 30 or she is a fire protection inspector member, all additional member 31 contributions and interest (if any) required by subdivision d of this 32 section, then: 33 1. that participant, while he or she remains participant, shall not be 34 subject to the provisions of subdivision a of section four hundred 35 forty-five of this chapter; and 36 2. if that participant, while such a participant, retires for service, 37 he or she shall not be subject to the provisions of section four hundred 38 forty-four of this chapter; and 39 3. his or her retirement allowance shall be an amount, on account of 40 the required minimum period of service, equal to the sum of (i) an annu- 41 ity which shall be the actuarial equivalent of the accumulated 42 deductions from his or her pay during such period, (ii) a pension for 43 increased-take-home-pay which shall be the actuarial equivalent of the 44 reserve for increased-take-home-pay to which he or she may be entitled, 45 for such period, and (iii) a pension which, when added to such annuity 46 and such pension for increased-take-home-pay, produces a retirement 47 allowance equal to fifty percent of his or her final average salary, 48 plus an amount for each additional year of allowable service as a fire 49 protection inspector member, or fraction thereof, beyond such required 50 minimum period of service equal to two percent of his or her final aver- 51 age salary for such allowable service as a fire protection inspector 52 member during the period from completion of twenty-five years of allow- 53 able service as a fire protection inspector member to the date of 54 retirement but not to exceed more than five years of additional service 55 as a fire protection inspector member.A. 8365 9 1 d. Additional member contributions. 1. In addition to the member 2 contributions required pursuant to section 13-125 or 13-162 of the 3 administrative code of the city of New York, each participant in the 4 twenty-five year improved benefit retirement program shall contribute, 5 subject to the applicable provisions of section 13-125.2 of the adminis- 6 trative code of the city of New York, an additional six percent of his 7 or her compensation earned from allowable service as a fire protection 8 inspector member, as a participant in the twenty-five year improved 9 benefit retirement program, rendered on and after the starting date of 10 the improved benefit retirement program, and all allowable service as a 11 fire protection inspector member after such person ceases to be a 12 participant, but before he or she again becomes a participant pursuant 13 to paragraph five of subdivision b of this section. A participant in 14 the twenty-five year improved benefit retirement program shall contrib- 15 ute additional member contributions until the later of the date as of 16 which he or she is eligible to retire with thirty years of allowable 17 service as a fire protection inspector member under such retirement 18 program, or the first anniversary of the starting date of the twenty- 19 five year improved benefit retirement program. The additional contrib- 20 utions required by this section shall be in lieu of additional member 21 contributions required by subdivision d of section four hundred forty- 22 five-d of this chapter, as added by chapter ninety-six of the laws of 23 nineteen hundred ninety-five, and no member paying additional contrib- 24 utions pursuant to this section shall be required to pay additional 25 contributions pursuant to such subdivision d of section four hundred 26 forty-five-d of this chapter. 27 2. Commencing with the first full payroll period after each person 28 becomes a participant in the twenty-five year improved benefit retire- 29 ment program, additional member contributions at the rate specified in 30 paragraph one of this subdivision shall be deducted, subject to the 31 applicable provisions of section 13-125.2 of the administrative code of 32 the city of New York, from the compensation of such participant on each 33 and every payroll of such participant for each and every payroll period 34 for which he or she is such a participant. 35 3. (i) Subject to the provisions of subparagraph (ii) of this para- 36 graph, where any additional member contributions required by paragraph 37 one of this subdivision are not paid by deductions from a participant's 38 compensation pursuant to paragraph two of this subdivision: 39 (A) that participant shall be charged with a contribution deficiency 40 consisting of such unpaid amounts, together with interest thereon, 41 compounded annually; and 42 (B) such interest on each amount of undeducted contributions shall 43 accrue from the end of the payroll period for which such amount would 44 have been deducted from compensation if he or she had been a participant 45 at the beginning of that payroll period and such deductions had been 46 required for such payroll period until such amount is paid to the 47 retirement system; and 48 (C) (1) interest on each such amount included in such participant's 49 contribution deficiency pursuant to this subparagraph shall be calcu- 50 lated as if such additional member contributions never had been paid by 51 such participant, and such interest shall accrue from the end of the 52 payroll period to which an amount of such additional member contribution 53 is attributable, compounded annually, until such amount is paid to the 54 retirement system; 55 (2) the rate of interest to be applied to each such amount during the 56 period for which interest accrues on that amount shall be equal to theA. 8365 10 1 rate or rates of interest required by law to be used during that same 2 period to credit interest on the accumulated deductions of retirement 3 system members; 4 (ii) Except as provided in subparagraph (iii) of this paragraph, no 5 interest shall be due on any unpaid additional contributions which are 6 not attributable to the period prior to the first full payroll period 7 referred to in paragraph two of this subdivision; 8 (iii) Should any person who, pursuant to paragraph seven of this 9 subdivision has withdrawn any additional member contributions (and any 10 interest paid thereon) again become a participant in the twenty-five 11 year improved benefit retirement program pursuant to paragraph five of 12 subdivision b of this section, an appropriate amount shall be included 13 in such participant's contribution deficiency (including interest there- 14 on as calculated pursuant to this paragraph) for any credited service 15 with respect to which such person received a refund of additional member 16 contributions (including any amount of an unpaid loan balance deemed to 17 have been returned to such person pursuant to paragraph seven of this 18 subdivision), as if such additional member contributions never had been 19 paid. 20 4. The board of trustees of the retirement system may, consistent with 21 the provisions of this subdivision, promulgate regulations for the 22 payment of the additional member contributions required by this subdivi- 23 sion, and any interest thereon, by a participant in the twenty-five year 24 improved benefit retirement program (including the deduction of such 25 contributions, and any interest thereon, from his or her compensation). 26 5. Where a participant who is otherwise eligible for service retire- 27 ment pursuant to subdivision c of this section did not, prior to the 28 effective date of retirement, pay the entire amount of a contribution 29 deficiency chargeable to him or her pursuant to paragraph three of this 30 subdivision, or repay the entire amount of a loan of his or her addi- 31 tional member contributions pursuant to paragraph eight of this subdivi- 32 sion (including accrued interest on such loan), that participant, never- 33 theless, shall be eligible to retire pursuant to subdivision c of this 34 section, provided, however, that where such participant is not entitled 35 to a refund of additional member contributions pursuant to paragraph 36 seven of this subdivision, such participant's service retirement benefit 37 calculated pursuant to the applicable provisions of subdivision c of 38 this section shall be reduced by a life annuity (calculated in accord- 39 ance with the method set forth in subdivision i of section six hundred 40 thirteen-b of this chapter) which is actuarially equivalent to: (i) the 41 amount of any unpaid contribution deficiency chargeable to such member 42 pursuant to paragraph three of this subdivision; plus (ii) the amount of 43 any unpaid balance of a loan of his or her additional member contrib- 44 utions pursuant to paragraph eight of this subdivision (including 45 accrued interest on such loan). 46 6. Subject to the provisions of paragraph five of this subdivision, 47 where a participant has not paid in full any contribution deficiency 48 chargeable to him or her pursuant to paragraph three of this subdivi- 49 sion, and a benefit, other than a refund of a member's accumulated 50 deductions or a refund of additional member contributions pursuant to 51 paragraph seven of this subdivision, becomes payable by the retirement 52 system to the participant or to his or her designated beneficiary or 53 estate, the actuarial equivalent of any such unpaid amount shall be 54 deducted from the benefit otherwise payable. 55 7. (i) All additional member contributions required by this subdivi- 56 sion (and any interest thereon) which are received by the retirementA. 8365 11 1 system shall be paid into its contingent reserve fund and shall be the 2 property of the retirement system. Such additional member contributions 3 (and any interest thereon) shall not for any purpose be deemed to be 4 member contributions or accumulated deductions of a member of the 5 retirement system under section 13-125 or 13-162 of the administrative 6 code of the city of New York while he or she is a participant in the 7 twenty-five year improved benefit retirement program or otherwise. 8 (ii) Should a participant in the twenty-five year improved benefit 9 retirement program, who has rendered less than fifteen years of credited 10 service cease to hold a position as a fire protection inspector member 11 for any reason whatsoever, his or her accumulated additional member 12 contributions made pursuant to this subdivision (together with any 13 interest thereon paid to the retirement system) which remain credited to 14 such participant's account may be withdrawn by him or her pursuant to 15 procedures promulgated in regulations of the board of trustees of the 16 retirement system, together with interest thereon at the rate of inter- 17 est required by law to be used to credit interest on the accumulated 18 deductions of retirement system members compounded annually. 19 (iii) Notwithstanding any other provision of law to the contrary, 20 (A) no person shall be permitted to withdraw from the retirement 21 system any additional member contributions paid pursuant to this subdi- 22 vision or any interest paid thereon, except pursuant to and in accord- 23 ance with the preceding subparagraphs of this paragraph; and 24 (B) no person, while he or she is a participant in the twenty-five 25 year improved benefit retirement program, shall be permitted to withdraw 26 any such additional member contributions or any interest paid thereon 27 pursuant to any of the preceding subparagraphs of this paragraph or 28 otherwise. 29 8. A participant in the twenty-five year improved benefit retirement 30 program shall be permitted to borrow from his or her additional member 31 contributions, including any interest paid thereon, which are credited 32 to the additional contributions account established for such participant 33 in the contingent reserve fund of the retirement system. The borrowing 34 from such additional member contributions pursuant to this paragraph 35 shall be governed by the same rights, privileges, obligations and proce- 36 dures set forth in section six hundred thirteen-b of this chapter which 37 govern the borrowing by members subject to article fifteen of this chap- 38 ter of member contributions made pursuant to section six hundred thir- 39 teen of this chapter. The board of trustees of the retirement system 40 may, consistent with the provisions of this subdivision and the 41 provisions of section six hundred thirteen-b of this chapter as made 42 applicable to this subdivision, promulgate regulations governing the 43 borrowing of such addition member contributions. 44 9. Wherever a person has an unpaid balance of a loan of his or her 45 additional member contributions pursuant to paragraph eight of this 46 subdivision at the time he or she becomes entitled to a refund of his or 47 her additional member contributions pursuant to subparagraph (ii) of 48 paragraph seven of this subdivision, the amount of such unpaid loan 49 balance (including accrued interest) shall be deemed to have been 50 returned to such member, and the refund of such additional contributions 51 shall be the net amount of such contributions, together with interest 52 thereon in accordance with the provisions of such subparagraph. 53 10. Notwithstanding any other provision of law to the contrary, the 54 provisions of section one hundred thirty-eight-b of this chapter shall 55 not be applicable to the additional member contributions which are 56 required by this subdivision.A. 8365 12 1 11. Notwithstanding any other provision of law to the contrary, the 2 additional member contributions which are required by this subdivision 3 shall not be reduced under any program for increased-take-home-pay. 4 e. The provisions of this section shall not be construed to provide 5 benefits to any participant in the twenty-five year improved benefit 6 retirement program which are greater than those which would be received 7 by a similarly situated member who is entitled to benefits under the 8 provisions of section 13-157.2 of the administrative code, but who is 9 not governed by the provisions of this article. 10 § 5. The retirement and social security law is amended by adding a new 11 section 604-j to read as follows: 12 § 604-j. Twenty-five year retirement program for fire protection 13 inspector members. a. Definitions. The following words and phrases as 14 used in this section shall have the following meanings unless a differ- 15 ent meaning is plainly required by the context. 16 1. "Fire protection inspector member" shall mean a member who is 17 employed by the city of New York or by the New York city fire department 18 in a title whose duties are those of a fire protection inspector or 19 associate fire protection inspector; or in a title whose duties require 20 the supervision of employees whose duties are those of a fire protection 21 inspector or associate fire protection inspector. 22 2. "Twenty-five year retirement program" shall mean all the terms and 23 conditions of this section. 24 3. "Starting date of the twenty-five year retirement program" shall 25 mean the date of enactment of this section. 26 4. "Participant in the twenty-five year retirement program" shall mean 27 any fire protection inspector member who, under the applicable 28 provisions of subdivision b of this section, is entitled to the rights, 29 benefits and privileges and is subject to the obligations of the twen- 30 ty-five year retirement program, as applicable to him or her. 31 5. "Discontinued member" shall mean a participant in the twenty-five 32 year retirement program who, while he or she was a fire protection 33 inspector member, discontinued service as such a member and has a right 34 to a deferred vested benefit under subdivision d of this section. 35 6. "Administrative code" shall mean the administrative code of the 36 city of New York. 37 7. "Allowable service as a fire protection inspector member" shall 38 mean all service as a fire protection inspector member. 39 b. Participation in twenty-five year retirement program. 1. Subject to 40 the provisions of paragraphs six and seven of this subdivision, any 41 person who is a fire protection inspector member on the starting date of 42 the twenty-five year retirement program and who, as such a fire 43 protection inspector member or otherwise, last became subject to the 44 provisions of this article prior to such starting date, may elect to 45 become a participant in the twenty-five year retirement program by 46 filing, within one hundred eighty days after the starting date of the 47 twenty-five year retirement program, a duly executed application for 48 such participation with the retirement system of which such person is a 49 member, provided he or she is such a fire protection inspector member on 50 the date such application is filed. 51 2. Subject to the provisions of paragraphs six and seven of this 52 subdivision, any person who becomes a fire protection inspector member 53 after the starting date of the twenty-five year retirement program and 54 who, as such a fire protection inspector member or otherwise, last 55 became subject to the provisions of this article prior to such starting 56 date, may elect to become a participant in the twenty-five year retire-A. 8365 13 1 ment program by filing, within one hundred eighty days after becoming 2 such a fire protection inspector member, a duly executed application for 3 such participation with the retirement system for which such person is a 4 member, provided that he or she is such a fire protection inspector 5 member on the date such application is filed. 6 3. Each fire protection inspector member, other than a fire protection 7 inspector member subject to paragraph one or two of this subdivision, 8 who becomes subject to the provisions of this article on or after the 9 starting date of the twenty-five year retirement program shall become a 10 participant in the twenty-five year retirement program on the date he or 11 she becomes such a fire protection inspector member. Provided, however, 12 a person subject to this paragraph, and who has exceeded age twenty-five 13 upon employment as a fire protection inspector member, shall be exempt 14 from participation in the improved twenty-five year retirement program 15 if such person elects not to participate by filing a duly executed form 16 with the retirement system within one hundred eighty days of becoming a 17 fire protection inspector member. 18 4. Any election to be a participant in the twenty-five year retirement 19 program shall be irrevocable. 20 5. Where any participant in the twenty-five year retirement program 21 shall cease to be employed as a fire protection member, he or she shall 22 cease to be such a participant and, during any period in which such 23 person is not so employed, he or she shall not be a participant in the 24 twenty-five year retirement program and shall not be eligible for the 25 benefits of subdivision c of this section. 26 6. Where any participant in the twenty-five year retirement program 27 terminates service as a fire protection inspector member and returns to 28 such service as a fire protection inspector member at a later date, he 29 or she shall again become such a participant on that date. 30 7. Notwithstanding any other provision of the law to the contrary, any 31 person who is eligible to elect to become a participant in the twenty- 32 five year retirement program pursuant to paragraph one or two of this 33 subdivision for the full one hundred eighty day period provided for in 34 such applicable paragraph and who fails to timely file a duly executed 35 application for such participation with the retirement system, shall not 36 thereafter be eligible to become a participant in such program. 37 c. Service retirement benefits. 1. A participant in the twenty-five 38 year retirement program: 39 (i) who has completed twenty-five or more years of allowable service 40 as a fire protection member, and 41 (ii) who has paid, before the effective date of retirement, all addi- 42 tional member contributions and interest (if any) required by subdivi- 43 sion e of this section; and 44 (iii) who files with the retirement system of which he or she is a 45 member an application for service retirement setting forth at what time, 46 not less than thirty days subsequent to the execution and filing there- 47 of, he or she desires to be retired; and 48 (iv) who shall be a participant in the twenty-five year retirement 49 program at the time so specified for his or her retirement, shall be 50 retired pursuant to the provisions of this section affording early 51 service retirement. 52 2. Notwithstanding an other provision of law to the contrary, and 53 subject to the provisions of paragraph six of subdivision e of this 54 section, the early service retirement benefit for participants in the 55 twenty-five year retirement program who retire pursuant to paragraph one 56 of this subdivision shall be a retirement allowance consisting of:A. 8365 14 1 (i) an amount, on account of the required minimum period of service, 2 equal to fifty percent of his or her final average salary; plus 3 (ii) an amount on account of allowable service as a fire protection 4 member, or fraction thereof, beyond such required minimum period of 5 service equal to two percent of his or her final salary for such allow- 6 able service as a fire protection member during the period from 7 completion of twenty-five years of allowable service as a fire 8 protection member to the date of retirement but not to exceed more than 9 five years of additional service as a fire protection member. 10 d. Vesting. 1. A participant in the twenty-five year retirement 11 program: 12 (i) who discontinues service as such a participant, other than by 13 death or retirement; and 14 (ii) in the case of a participant who is not a New York city revised 15 plan member, who prior to such discontinuance, completed five but less 16 than than twenty-five years of allowable service as a fire protection 17 member or, in the case of a participant who is a New York city revised 18 plan member, who prior to such discontinuance, completed ten but less 19 than twenty-five years of allowable service as a fire protection member; 20 and 21 (iii) who, subject to the provisions of paragraph seven of subdivision 22 e of this section, has paid, prior to such discontinuance, all addi- 23 tional member contributions and interest (if any) required by subdivi- 24 sion e of this section; and 25 (iv) who does not withdraw in whole or in part his or her accumulated 26 member contributions pursuant to section six hundred thirteen of this 27 article unless such participant thereafter returns to public service and 28 repays the amounts so withdrawn, together with interest, pursuant to 29 such section six hundred thirteen; shall be entitled to receive a 30 deferred vested benefit as provided in this subdivision. 31 2. (i) Upon such discontinuance under the conditions and in compliance 32 with the provisions of paragraph one of this subdivision, such deferred 33 vested benefit shall vest automatically. 34 (ii) In the case of a participant who is not a New York city revised 35 plan member, such vested benefit shall become payable on the earliest 36 date on which such discontinued member could have retired for service if 37 such discontinuance had not occurred or, in the case of a participant 38 who is a New York city revised plan member, such vested benefit shall 39 become payable at age sixty-three. Subject to the provisions of para- 40 graph seven of subdivision e of this section, such deferred vested bene- 41 fit shall be a retirement allowance consisting of an amount equal to two 42 percent of such discontinued member's final average salary, multiplied 43 by the number of years of allowable service. 44 e. Additional member contributions. 1. In addition to the member 45 contributions required by section six hundred thirteen of this article, 46 each participant in the twenty-five year retirement program shall 47 contribute to the retirement system of which he or she is a member 48 (subject to the applicable provisions of subdivision d of section six 49 hundred thirteen of this article) an additional six percent of his or 50 her compensation earned from (i) all allowable service, as a participant 51 in the twenty-five year retirement program, rendered on or after the 52 starting date of the twenty-five year retirement program, and (ii) all 53 allowable service after such person ceases to be a participant, but 54 before he or she again becomes a participant pursuant to paragraph six 55 of subdivision b of this section. The additional contributions required 56 by this section shall be in lieu of additional member contributionsA. 8365 15 1 required by subdivision d of section six hundred four-c of this chapter 2 as added by chapter ninety-six of the laws of nineteen hundred ninety- 3 five, and no member making additional contributions pursuant to this 4 section shall be required to make contributions pursuant to such subdi- 5 vision d of section six hundred four-c of this chapter. 6 2. A participant in the twenty-five year retirement program shall 7 contribute additional member contributions until the later of (i) the 8 first anniversary of the starting date of the twenty-five year retire- 9 ment program, or (ii) the date on which he or she completes thirty years 10 of allowable service as a fire protection inspector member. 11 3. Commencing with the first full payroll period after each person 12 becomes a participant in the twenty-five year retirement program, addi- 13 tional member contributions at the rate specified in paragraph one of 14 this subdivision shall be deducted (subject to the applicable provisions 15 of subdivision d of section six hundred thirteen of this article) from 16 the compensation of such participant on each and every payroll of such 17 participant for each and every payroll period for which he or she is 18 such a participant. 19 4. (i) Each participant in the twenty-five year retirement program 20 shall be charged with a contribution deficiency consisting of the total 21 amounts of additional member contributions such person is required to 22 make pursuant to paragraphs one and two of this subdivision which are 23 not deducted from his or her compensation pursuant to paragraph three of 24 this subdivision, if any, together with interest thereon, compounded 25 annually, and computed in accordance with the provisions of subpara- 26 graphs (ii) and (iii) of this paragraph. 27 (ii)(A) The interest required to be paid on each such amount specified 28 in subparagraph (i) of this paragraph shall accrue from the end of the 29 payroll period for which such amount would have been deducted from 30 compensation if he or she had been a participant at the beginning of 31 that payroll period and such deduction had been required for such 32 payroll period, until such amount is paid to the retirement system. 33 (B) The rate of interest to be applied to each such amount during the 34 period for which interest accrues on that amount shall be equal to the 35 rate or rates of interest required by law to be used during that same 36 period to credit interest on the accumulated deductions of retirement 37 system members. 38 (iii) Except as otherwise provided in paragraph five of this subdivi- 39 sion, no interest shall be due on any unpaid additional member contrib- 40 utions which are not attributable to a period prior to the first full 41 payroll period referred to in paragraph three of this subdivision. 42 5. (i) Should any person who, pursuant to subparagraph (ii) of para- 43 graph ten of this subdivision, has received a refund of his or her addi- 44 tional member contribution including any interest paid on such contrib- 45 utions, again become a participant in the twenty-five year retirement 46 program pursuant to paragraph six of subdivision b of this section, an 47 appropriate amount shall be included in such participant's contribution 48 deficiency (including interest thereon as calculated pursuant to subpar- 49 agraph (ii) of this paragraph) for any allowable service for which such 50 person received a refund of such additional member contributions 51 (including any amount of an unpaid loan balance deemed to have been 52 returned to such person pursuant to paragraph twelve of this subdivi- 53 sion), as if such additional member contributions never had been paid. 54 (ii) (A) Interest on a participant's additional member contributions 55 included in such participant's contribution deficiency pursuant to 56 subparagraph (i) of this paragraph shall be calculated as if such addi-A. 8365 16 1 tional member contributions had never been paid by such participant, and 2 such interest shall accrue from the end of the payroll period to which 3 an amount of such additional member contributions is attributable, until 4 such amount is paid to the retirement system. 5 (B) The rate of interest to be applied to each such amount during the 6 period for which interest accrues on that amount shall be five percent 7 per annum, compounded annually. 8 6. Where a participant who is otherwise eligible for service retire- 9 ment pursuant to subdivision c of this section did not, prior to the 10 effective date of retirement, pay the entire amount of a contribution 11 deficiency chargeable to him or her pursuant to paragraphs four and five 12 of this subdivision, or repay the entire amount of a loan of his or her 13 additional member contributions pursuant to paragraph eleven of this 14 subdivision (including accrued interest on such loan), that participant, 15 nevertheless, shall be eligible to retire pursuant to subdivision c of 16 this section, provided, however, that such participant's service retire- 17 ment benefit calculated pursuant to paragraph two of such subdivision c 18 shall be reduced by a life annuity (calculated in accordance with the 19 method set forth in subdivision i of section six hundred thirteen-b of 20 this article) which is actuarially equivalent to: 21 (i) the amount of any unpaid contribution deficiency chargeable to 22 such member pursuant to paragraphs four and five of this subdivision; 23 plus 24 (ii) the amount of any unpaid balance of a loan of his or her addi- 25 tional member contributions pursuant to paragraph eleven of this subdi- 26 vision (including accrued interest on such loan). 27 7. Where a participant who is otherwise eligible for a vested right to 28 a deferred benefit pursuant to subdivision d of this section did not, 29 prior to the date of discontinuance of service, pay the entire amount of 30 a contribution deficiency chargeable to him or her pursuant to para- 31 graphs four and five of this subdivision, or repay the entire amount of 32 a loan of his or her additional member contributions pursuant to para- 33 graph eleven of this subdivision (including accrued interest on such 34 loan), that participant, nevertheless, shall have a vested right to a 35 deferred benefit pursuant to subdivision d of this section provided, 36 however, that the deferred vested benefit calculated pursuant to para- 37 graph three of subdivision d shall be reduced by a life annuity (calcu- 38 lated in accordance with the method set forth in subdivision i of 39 section six hundred thirteen-b of this article) which is actuarially 40 equivalent to: 41 (i) the amount of any unpaid contribution chargeable to such member 42 pursuant to paragraphs four and five of this subdivision; plus 43 (ii) the amount of any unpaid balance of a loan of his or her addi- 44 tional member contributions pursuant to paragraph eleven of this subdi- 45 vision (including accrued interest on such a loan). 46 8. The head of a retirement system which includes participants in the 47 twenty-five year retirement program in its membership may, consistent 48 with the provisions of this subdivision, promulgate regulations for the 49 payment of such additional member contributions, and any interest there- 50 on, by such participants (including the deduction of such contributions, 51 and any interest thereon, from the participant's compensation). 52 9. Subject to the provisions of paragraphs six and seven of this 53 subdivision, where a participant has not paid in full any contribution 54 deficiency chargeable to him or her pursuant to paragraphs four and five 55 of this subdivision, and a benefit, other than a refund of member 56 contributions pursuant to section six hundred thirteen of this articleA. 8365 17 1 or a refund of additional member contributions pursuant to subparagraph 2 (ii) of paragraph ten of this subdivision, becomes payable under this 3 article to the participant or to his or her designated beneficiary or 4 estate, the actuarial equivalent of any such unpaid amount shall be 5 deducted from the benefit otherwise payable. 6 10. (i) Such additional member contributions (and any interest there- 7 on) shall be paid into the contingent reserve fund of the retirement 8 system of which the participant is a member and shall not for any 9 purpose be deemed to be member contributions or accumulated contrib- 10 utions of a member under section six hundred thirteen of this article or 11 otherwise while he or she is a participant in the twenty-five year 12 retirement program or otherwise. 13 (ii) Should a participant in the twenty-five year retirement program 14 who has rendered less than fifteen years of credited service cease to 15 hold a position as a fire protection inspector member for any reason 16 whatsoever, his or her accumulated additional member contributions made 17 pursuant to this subdivision (together with any interest thereon paid to 18 the retirement system) may be withdrawn by him or her pursuant to proce- 19 dures promulgated in regulations of the board of trustees of the retire- 20 ment system, together with interest thereon at the rate of five percent 21 per annum, compounded annually. 22 (iii) Notwithstanding any other provision of law to the contrary, (A) 23 no person shall be permitted to withdraw from the retirement system any 24 additional member contributions paid pursuant to this subdivision or any 25 interest paid thereon, except pursuant to and in accordance with the 26 preceding subparagraphs of this paragraph; and (B) no person, while he 27 or she is a participant in the twenty-five year retirement program, 28 shall be permitted to withdraw any such additional member contributions 29 or any interest paid thereon pursuant to any of the preceding subpara- 30 graphs of this paragraph or otherwise. 31 11. A participant in the twenty-five year retirement program shall be 32 permitted to borrow from his or her additional member contributions 33 (including any interest paid thereon) which are credited to the addi- 34 tional contributions account established for such participant in the 35 contingent reserve fund of the retirement system. The borrowing from 36 such additional member contributions pursuant to this paragraph shall be 37 governed by the rights, privileges, obligations and procedures set forth 38 in section six hundred thirteen-b of this article which govern the 39 borrowing of member contributions made pursuant to section six hundred 40 thirteen of this article. The board of trustees of the retirement system 41 may, consistent with the provisions of this subdivision and the 42 provisions of section six hundred thirteen-b of this article as made 43 applicable to this subdivision, promulgate regulations governing the 44 borrowing of such additional member contributions. 45 12. Whenever a person has an unpaid balance of a loan or his or her 46 additional member contributions pursuant to paragraph eleven of this 47 subdivision at the time he or she becomes entitled to a refund of his or 48 her additional member contributions pursuant to subparagraph (ii) of 49 paragraph ten of this subdivision, the amount of such unpaid loan 50 balance (including accrued interest) shall be deemed to have been 51 returned to such member, and the refund of such additional contributions 52 shall be the net amount of such contribution, together with interest 53 thereon in accordance with the provisions of such subparagraph (ii). 54 § 6. Subdivision d of section 613 of the retirement and social securi- 55 ty law is amended by adding a new paragraph 12 to read as follows:A. 8365 18 1 12. (i) The city of New York shall, in the case of a fire protection 2 inspector member (as defined in paragraph one of subdivision a of 3 section six hundred four-j of this article) who is a participant in the 4 twenty-five year retirement program (as defined in paragraph four of 5 subdivision a of such section six hundred four-j), pick up and pay to 6 the retirement system of which such participant is a member all addi- 7 tional member contributions which otherwise would be required to be 8 deducted from such member's compensation pursuant to paragraphs one and 9 two of subdivision e of such section six hundred four-j (not including 10 any additional member contributions due for any period prior to the 11 first full payroll period referred to in paragraph three of such subdi- 12 vision e), and shall effect such pick up in each and every payroll of 13 such participant for each and every payroll period with respect to which 14 such paragraph three would otherwise require such deductions. 15 (ii) An amount equal to the amount of additional contributions picked 16 up pursuant to this paragraph shall be deducted by such employer from 17 the compensation of such member (as such compensation would be in the 18 absence of a pick up program applicable to him or her) and shall not be 19 paid to such member. 20 (iii) The additional member contributions picked up pursuant to this 21 paragraph for any such member shall be paid by such employer in lieu of 22 an equal amount of additional member contributions otherwise required to 23 be paid by such member under the applicable provisions of subdivision e 24 of section six hundred four-j of this article, and shall be deemed to be 25 and treated as employer contributions pursuant to section 414(h) of the 26 Internal Revenue Code. 27 (iv) For the purpose of determining the retirement system rights, 28 benefits and privileges of any member whose additional member contrib- 29 utions are picked up pursuant to this paragraph, such picked up addi- 30 tional member contributions shall be deemed to be and treated as part of 31 such member's additional member contributions under the applicable 32 provisions of subdivision e of section six hundred four-j of this arti- 33 cle. 34 (v) With the exception of federal income tax treatment, the additional 35 member contributions picked up pursuant to subparagraph (i) of this 36 paragraph shall for all other purposes, including computation of retire- 37 ment benefits and contributions by employers and employees, be deemed 38 employee salary. Nothing contained in this subdivision shall be 39 construed as superseding the provisions of section four hundred thirty- 40 one of this chapter, or any similar provision of law which limits the 41 salary base for computing retirement benefits payable by a public 42 retirement system. 43 § 7. Section 13-125.2 of the administrative code of the city of New 44 York is amended by adding a new subdivision a-9 to read as follows: 45 a-9. Notwithstanding any other provision of law to the contrary, on or 46 after the starting date for pick up, the employer responsible for pick 47 up shall, in the case of a fire protection inspector member (as defined 48 in paragraph two of subdivision a of section four hundred forty-five-j 49 of the retirement and social security law) who is a participant in the 50 twenty-five year improved benefit retirement program (as defined in 51 paragraph three of such subdivision a), pick up and pay to retirement 52 system all additional member contributions which otherwise would be 53 required to be deducted from such member's compensation pursuant to 54 subdivision d of such section four hundred forty-five-j, and shall 55 effect such pick up on each and every payroll of such participant forA. 8365 19 1 each and every payroll period with respect to which such subdivision d 2 would otherwise require such deductions. 3 § 8. Subparagraph (ii) of paragraph 1 of subdivision c of section 4 13-125.2 of the administrative code of the city of New York, as amended 5 by chapter 682 of the laws of 2003, is amended to read as follows: 6 (ii) the determination of the amount of such member's Tier I or Tier 7 II nonuniformed-force member contributions eligible for pick up by the 8 employer or additional member contributions required to be picked up 9 pursuant to subdivision a-one, subdivision a-two, subdivision a-three, 10 subdivision a-four, subdivision a-five, subdivision a-six, subdivision 11 a-seven [or], subdivision a-eight or subdivision a-nine of this section; 12 and 13 § 9. Subdivision d of section 13-125.2 of the administrative code of 14 the city of New York is amended by adding a new paragraph 2-h to read as 15 follows: 16 (2-h) For the purpose of determining the retirement system rights, 17 benefits and privileges of any member who is a participant in the twen- 18 ty-five year retirement program (as defined in paragraph two of subdivi- 19 sion a of section 13-157.5 of this chapter), the additional member 20 contributions of such participant picked up pursuant to subdivision 21 a-nine of this section shall be deemed to be and treated as a part of 22 such member's additional contributions under subdivision e of such 23 section 13-157.5. 24 § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis- 25 trative code of the city of New York, as amended by chapter 682 of the 26 laws of 2003, is amended to read as follows: 27 (3) Interest on contributions picked up for any Tier I or Tier II 28 non-uniformed-force member pursuant to this section (other than addi- 29 tional member contributions picked up pursuant to subdivision a-one, 30 subdivision a-two, subdivision a-three, subdivision a-four, subdivision 31 a-five, subdivision a-six, subdivision a-seven [or], subdivision a-eight 32 or subdivision a-nine of this section) shall accrue in favor of the 33 member and be payable to the retirement system at the same rate, for the 34 same time periods, in the same manner and under the same circumstances 35 as interest would be required to accrue in favor of the member and be 36 payable to the retirement system on such contributions if they were made 37 by such member in the absence of a pick up program applicable to such 38 member under the provisions of this section. 39 § 11. Subdivision a of section 603 of the retirement and social secu- 40 rity law, as amended by chapter 18 of the laws of 2012, is amended to 41 read as follows: 42 a. The service retirement benefit specified in section six hundred 43 four of this article shall be payable to members who have met the mini- 44 mum service requirements upon retirement and attainment of age sixty- 45 two, other than members who are eligible for early service retirement 46 pursuant to subdivision c of section six hundred four-b of this article, 47 subdivision c of section six hundred four-c of this article, subdivision 48 d of section six hundred four-d of this article, subdivision c of 49 section six hundred four-e of this article, subdivision c of section six 50 hundred four-f of this article, subdivision c of section six hundred 51 four-g of this article, subdivision c of section six hundred four-h of 52 this article [or], subdivision c of section six hundred four-i of this 53 article, or subdivision c of section six hundred four-j of this article 54 provided, however, a member of a teachers' retirement system or the New 55 York state and local employees' retirement system who first joins such 56 system before January first, two thousand ten or a member who is aA. 8365 20 1 uniformed court officer or peace officer employed by the unified court 2 system who first becomes a member of the New York state and local 3 employees' retirement system before April first, two thousand twelve may 4 retire without reduction of his or her retirement benefit upon attain- 5 ment of at least fifty-five years of age and completion of thirty or 6 more years of service, provided, however, that a uniformed court officer 7 or peace officer employed by the unified court system who first becomes 8 a member of the New York state and local employees' retirement system on 9 or after January first, two thousand ten and retires without reduction 10 of his or her retirement benefit upon attainment of at least fifty-five 11 years of age and completion of thirty or more years of service pursuant 12 to this section shall be required to make the member contributions 13 required by subdivision f of section six hundred thirteen of this arti- 14 cle for all years of credited and creditable service, provided further 15 that the the preceding provisions of this subdivision shall not apply to 16 a New York city revised plan member. 17 § 12. Nothing contained in sections six and eleven of this act shall 18 be construed to create any contractual right with respect to members to 19 whom such sections apply. The provisions of such sections are intended 20 to afford members the advantages of certain benefits contained in the 21 internal revenue code, and the effectiveness and existence of such 22 sections and benefits they confer are completely contingent thereon. 23 § 13. This act shall take effect immediately, provided, however that: 24 (a) the amendments to subdivision a of section 603 of the retirement 25 and social security law made by section eleven of this act shall not 26 affect the expiration of such subdivision and shall be deemed to expire 27 therewith; 28 (b) the provisions of section six of this act shall remain in force 29 and effect only so long as, pursuant to federal law, contributions 30 picked up under such section are not includable as gross income of a 31 member for federal income tax purposes until distributed or made avail- 32 able to the member; and 33 (c) the amendments to section 13-125.2 of the administrative code of 34 the city of New York made by sections seven, eight, nine and ten of this 35 act shall not affect the expiration of such provisions as provided for 36 in section 16 of chapter 681 of the laws of 1992, as amended. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: PROVISIONS OF PROPOSED LEGISLATION: This proposed legislation would amend Administrative Code of the City of New York (ACNY) Section 13-125.2 and Retirement and Social Security Law (RSSL) Sections 444, 445, 603 and 613, and add ACNY Section 13-157.5 and RSSL Sections 445-j and 604-j to establish a 25-Year Retirement Program for Fire Protection Inspectors (FPI 25-Year Plan) for each tier. The Effective Date of the proposed legislation is the date of enact- ment. MEMBERS ELIGIBLE TO JOIN: Those members whose duties are one of the following are eligible to participate in the FPI 25-Year Plan: * Fire Protection Inspector * Associate Fire Protection Inspector * Supervisor of employees whose duties are those of a fire protection inspector, and * Supervisor of employees whose duties are those of an associate fire protection inspector. For purposes of this Fiscal Note, these members are collectively referred to as "Fire Inspectors."A. 8365 21 Participation in the FPI 25-Year Plan is optional for anyone who is eligible to participate in the plan on the date of enactment by filing an election form within 180 days of enactment. Anyone who is a member of the New York City Employees' Retirement System (NYCERS) on the date of enactment and subsequently becomes employed as a Fire Inspector has 180 days to elect to join the FPI 25-Year Plan. Any Fire Inspector who becomes a Tier 6 NYCERS member after the date of enactment is mandated into the plan. However, if the member exceeds age 25 upon being mandated into the FPI 25-Year Plan, the member has the option not to participate. IMPACT OF BENEFITS: Currently, Fire Inspectors generally participate in one of the NYCERS general plans (basic Tier 4 62/5 Plan, Tier 6 63/10 Plan or Improved Tier 4 57/5, 55/25 Plans). (Note that since there is only one Tier 2 Fire Inspector remaining, the following summary of the FPI 25-Year Plan is for Tier 4 and Tier 6 members only). The proposed legislation would provide the following benefits to Fire Inspectors under the FPI 25-Year Plan: * Service retirement benefit: Upon attaining 25 years of service, a benefit equal to 50% of Final Average Salary (FAS) for the first 25 years of Allowable Service plus 2% of FAS for each additional year of Allowable Service up to a maximum of 30 years of such service. * Final Average Salary: Three Year Average (FAS3) for Tier 4 members and Five Year Average (FAS5) for Tier 6 members. * Vested benefit: * Eligibility is: * At least five, but less than 25, years of allowable service for Tier 4, and * At least 10, but less than 25, years of allowable service for Tier 6. * Payable at: * The date the member would have completed 25 years of allowable service for Tier 4, and * Age 63 for Tier 6. * Amount: * 2% of FAS for each year of allowable service. * Other benefits: Members of the proposed FPI 25-Year Plan are enti- tled to the same disability and death benefits as other Tier 4 and Tier 6 members under the respective basic plans. ADDITIONAL MEMBER CONTRIBUTIONS: Members of the FPI 25-Year Plan are required to make, in addition to the 3% Basic Member Contributions, Additional Member Contributions equal to 6% of compensation for all allowable service as a Plan participant on and after the starting date of the FPI 25-Year Plan for a maximum of 30 years. FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: With respect to NYCERS and based on the anticipated group of members joining the FPI 25-Year Plan and the actuarial assumptions and methods described herein, if the proposed legislation is enacted, the Actuarial Present Value (APV) of Benefits (APVB) would increase by approximately $1.0 million, consisting of APV of member contributions of approximately $0.3 million, and APV of future employer contributions of approximately $0.7 million. Under the Entry Age Actuarial Cost Method used to determine the employer contributions to NYCERS, there would be an increase in the Unfunded Actuarial Accrued Liability (UAAL) of approximately $1.6 million offset by a decrease in the APV of future employer Normal Cost of $0.9 million.A. 8365 22 FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with ACNY Section 13.638.2(k-2), the new UAAL estimated to be $1.6 million attributable to benefit changes is to be amortized as determined by the Actuary but generally over the remaining working lifetime of those impacted by the benefit changes. As of June 30, 2016, the remaining working lifetime of the Fire Inspectors assumed to join the FPI 25-Year Plan is approximately 5 years. Based on the actuarial assumptions and methods described below, the enactment of this proposed legislation would increase annual employer contributions by approximately $385,000 per year. The increase in employer contributions has been estimated assuming that the increase in UAAL would be financed over a 5-year period (4 payments under One-Year Lag Methodology) using level dollar payments. Regarding the timing of these increased contributions, if the Effec- tive Date of the proposed legislation is on or before June 30, 2017, then the increase in employer contributions would first be reflected in Fiscal Year 2019. OTHER COSTS: Not measured in this Fiscal Note are the following: * The initial, additional administrative costs of NYCERS and other New York City agencies to implement the proposed legislation. * The impact of this proposed legislation on Other Postemployment Benefit (OPEB) costs. CENSUS DATA: The starting census data used for the calculations presented herein is that of the Preliminary June 30, 2016 (Lag) actuari- al valuation of NYCERS. Under the One Year Lag Methodology (OYLM), this was used to determine the Preliminary Fiscal Year 2018 employer contrib- utions for members who are eligible for and who could potentially bene- fit from this proposed legislation. The 29 Fire Inspectors as of June 30, 2016 assumed to join the FPI 25-Year Plan had an average age of approximately 55, average service of approximately 26 years and an average salary of approximately $74,800. ACTUARIAL ASSUMPTIONS AND METHODS: The additional employer contrib- utions presented herein have been calculated based on the actuarial assumptions and methods in effect for the June 30, 2016 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year 2018 employer contributions of NYCERS. To determine the impact of the elective nature of the proposed legis- lation a subgroup of Fire Inspectors was developed on the basis of who could potentially benefit actuarially. The net APV of future employer costs (i.e., the APVB less the APV of future member contributions) of each member's benefit was determined under their current plan and under the FPI 25-Year Plan. If the net APV of future employer cost under the FPI 25-Year Plan was greater then or equal to the APV of future employer cost under the member's current plan, the member was deemed to benefit actuarially. Based on this analysis, it was determined that those who have the option of joining the FPI Plan upon becoming a NYCERS member in the future will not actuarially benefit in the Plan. Therefore, it is assumed that these future members who have the option of joining the Plan will choose to not participate in the Plan, and that future Plan participation will be limited to those hired at the age of 25 or younger because they will be mandated into the Plan. Since it is expected that very few, if any, Fire Inspectors will be hired at the age of 25 or younger, the costs presented in this Fiscal Note are borne only from current NYCERS members who are assumed to benefit from, and thus opt to join, the FPI 25-Year Plan.A. 8365 23 STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu- ary for, and independent of, the New York City Pension Funds and Retire- ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the Conference of Consulting 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 Fiscal Note 2017-24 dated May 31, 2017, was prepared by the Chief Actuary for the New York City Employees' Retirement System. This estimate is intended for use only during the 2017 Legislative Session.