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A09633 Summary:

BILL NOA09633
 
SAME ASNo Same As
 
SPONSORPheffer Amato
 
COSPNSR
 
MLTSPNSR
 
Amd §343, R & SS L
 
Relates to the calculation of past service credit for police officers employed by the division of law enforcement in the department of environmental protection in the city of New York transferring between the New York city employees' retirement system to the New York state and local police and fire retirement system.
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A09633 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9633
 
                   IN ASSEMBLY
 
                                     March 26, 2024
                                       ___________
 
        Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
          Committee on Governmental Employees
 
        AN ACT to amend the retirement and social security law, in  relation  to
          the calculation of past service credit for police officers employed by
          the  division  of  law  enforcement in the department of environmental
          protection in the city of New York transferring between the  New  York
          city  employees'  retirement  system  to  the New York state and local
          police and fire retirement system
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  343 of the retirement and social security law is
     2  amended by adding a new subdivision i to read as follows:
     3    i. 1. Notwithstanding any other law, rule or regulation to the contra-
     4  ry, for any police officer employed by the division of  law  enforcement
     5  in  the  department  of environmental protection in the city of New York
     6  transferring from the New York city employees' retirement system to  the
     7  New  York  state  and  local police and fire retirement system after the
     8  effective date of this  subdivision  and  any  police  officer  formerly
     9  employed  by  the division of law enforcement in the department of envi-
    10  ronmental protection in the city of New York having made such  transfer,
    11  such  police  officer's division of law enforcement in the department of
    12  environmental protection in the city of New York service credit shall be
    13  deemed creditable service, in such police officer's twenty year or twen-
    14  ty-five year retirement plan, if such police officer has served  for  at
    15  least  two  years in such employment and if, within one year of the date
    16  on which he or she first became a member of the New York state and local
    17  police and fire retirement system or within one year  of  the  effective
    18  date of this subdivision, such member elects to do so.
    19    2.  The  amount of such service credited to the member in the New York
    20  state and local police and fire retirement system plan shall not  exceed
    21  the  amount  of  service  credited  to  the  member in the New York city
    22  employees' retirement system plan.
    23    3. If the member subsequently retires on an age-based retirement  plan
    24  in  the  New  York  state  and  local  police and fire retirement system
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03776-03-4

        A. 9633                             2
 
     1  instead of a twenty year or twenty-five year plan, the  full  amount  of
     2  service  credit  earned, as a police officer employed by the division of
     3  law enforcement in the department of  environmental  protection  in  the
     4  city of New York shall be granted.
     5    4. In no event shall the division of law enforcement in the department
     6  of  environmental protection in the city of New York service credited to
     7  a member of the New York state and  local  police  and  fire  retirement
     8  system pursuant to this subdivision exceed a total of ten years.
     9    5.  Notwithstanding  any other provision of law in this section to the
    10  contrary, the reserve on such member's  benefits  shall  be  transferred
    11  from  the  New  York  city  employees' retirement system to the New York
    12  state and local police and fire retirement  system  in  accordance  with
    13  subdivisions c and d of this section.
    14    6.  No member who receives service credit pursuant to this subdivision
    15  shall be eligible to  receive  additional  service  credit  pursuant  to
    16  subdivision  b of section three hundred eighty-four-e of this article if
    17  his or her employer has elected to provide such service credit.
    18    § 2. This act shall take effect on the sixtieth  day  after  it  shall
    19  have become a law.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY:  This  proposed  legislation  would  allow  current or former
        NYCERS members employed as New York  City  Department  of  Environmental
        Protection  (DEP) police officers who transfer or transferred to the New
        York State and Local Police and Fire Retirement System (PFRS) to receive
        up to 10 years of service credit in the 20 or 25-year State Plans.
 
              ILLUSTRATION - INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                 by Fiscal Year for the first 25 years ($ in Thousands)
                          Year   One Transfer   One Transfer
                                                  Per Year
                          2025        5.3           5.3
                          2026        5.3          10.6
                          2027        5.3          16.0
                          2028        5.3          21.5
                          2029        5.3          27.0
                          2030        5.3          32.6
                          2031        5.3          38.2
                          2032        5.3          43.9
                          2033        5.3          49.7
                          2034        5.3          55.5
                          2035        5.3          61.4
                          2036        5.3          67.3
                          2037        5.3          73.2
                          2038        5.3          79.2
                          2039          0          80.0
                          2040          0          80.7
                          2041          0          81.4
                          2042          0          82.1
                          2043          0          82.8
                          2044          0          83.4
                          2045          0          84.0
                          2046          0          84.5
                          2047          0          85.0
                          2048          0          85.5
                          2049          0          85.9
          Employer Contribution impact beyond Fiscal Year 2049 is not shown.

        A. 9633                             3

          The potential increases in employer contributions will be allocated to
        New York City.
 
                  EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                          as of June 30, 2023 ($ in Thousands)
 
                        Present Value (PV)           Per Transfer
                        PV of Benefits:                      44.6
                        PV of Employee Contributions:        0.0
                        PV of Employer Contributions:        44.6
                        Unfunded Accrued Liabilities:        44.6
 
                       AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                   Recognized as Ongoing Gain/Loss    Per Transfer
                   Number of Payments:                        14
                   Amortization Payment:                     5.3 K
 
          CENSUS DATA: The number of members who have transferred or will trans-
        fer  to  PFRS  is  unknown.  The estimates presented herein are based on
        preliminary census data collected as of June 30, 2023. The  census  data
        for  the  potentially  impacted  population  used to develop the average
        costs in this Fiscal Note is based on DEP police officers  currently  in
        NYCERS  who  have  between two and 15 years of service and is summarized
        below.
 
                                                      NYCERS
                   Active Members
                   - Number Count:                    82
                   - Average Age:                     35.9
                   - Average Service:                 8.6
                   - Average Salary:                  79,400
                   Term. Vested Members
                   - Number Count:                    23
                   - Average Age:                     39.8
                   Term. Non-Vested Members
                   - Number Count:                    41
                   - Average Age:                     35.6
 
          BACKGROUND: Currently, NYCERS members employed as DEP police  officers
        who  subsequently  become employed by the State are eligible to transfer
        their NYCERS membership and receive service credit in the  State  plans,
        but  generally  do not receive service credit in the 20-year and 25-year
        PFRS Plans.
          Under the proposed legislation, DEP police officers who served in such
        title for a minimum of two years and then transfer their NYCERS  member-
        ship  to  PFRS within one year of becoming a PFRS member (or one year of
        the effective date, if later) would receive up to 10 years of credit  in
        the 20-year and 25-year PFRS Plans for such equal DEP service.
          Currently,  member  accumulated contributions (with accrued interest),
        and employer paid reserves if the  member  has  at  least  10  years  of
        service,  are  transferred. Under the proposed legislation, NYCERS would
        be required to calculate and pay such member's pension reserve,  net  of
        any  accumulated  salary deductions otherwise transferred, to PFRS, even
        if the member has less than 10 years of service.

        A. 9633                             4
 
          It should be noted that the proposed legislation does not provide  for
        a  reciprocal transfer of reserves should a member transfer from PFRS to
        NYCERS with less than 10 years of service.
          ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
        calculated based on the Revised 2021 Actuarial Assumptions  and  Methods
        of the impacted retirement systems.
          For  purposes  of  this  Fiscal  Note,  it  has  been assumed that the
        impacted NYCERS members  would  generally  not  have  transferred  their
        membership to PFRS absent this proposed legislation. It has been further
        assumed that members with more than 15 years of service would not trans-
        fer their membership even under the proposed legislation.
          The  number of members who will benefit in the future from this fiscal
        note is unknown. The cost of this proposed legislation could vary great-
        ly depending on the number of future members who benefit and,  on  their
        plan, length of service, age, and salary history.
          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 2024-29 dated  March  15,
        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.
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