AB7793 Summary:

BILL NOA07793A
 
SAME ASSAME AS S07872
 
SPONSORAbbate
 
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.
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AB7793 Actions:

BILL NOA07793A
 
05/27/2015referred to governmental employees
01/06/2016referred to governmental employees
05/06/2016amend and recommit to governmental employees
05/06/2016print number 7793a
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AB7793 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7793A
 
SPONSOR: Abbate (MS)
  TITLE OF BILL: An act to amend the administrative code of the city of New York, in relation to the establishment of a twenty-five year retire- ment program for members of the New York city employees' retirement system employed as fire protection inspectors and associate fire protection inspectors; 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   SUMMARY OF PROVISIONS: This bill would establish a 25-year retirement for fire protection inspectors, associate fire protection inspectors, and their supervisors who are uniformed fire service personnel and members of the New York City employees retirement system. The plan would be optional for those who are fire protection inspectors, associate fire protection inspectors or their supervisors and members of the system on the effective date. The costs of the plan are paid for by required additional employee contributions of 6.00% of salary.   REASONS FOR APPROVAL: Fire protection inspectors and associate fire protection inspectors perform some of the most important jobs in New York City - inspecting and ensuring compliance with the fire code. This bill would afford these uniformed fire service personnel the opportunity to retire with a full pension after 25 years of service. It would grant them parity with other uniformed service personnel who perform essential tasks that mean the difference between life and death for New Yorkers -- police officers, firefighters, EMTs and other uniformed service employees. Those who participate in the new pension program would be required to make additional member contributions of their earnings, which will cover the cost of the plan. Thus, there is no fiscal impact to the City of New York in providing this well-deserved pension. A number of other classes of employees currently enjoy analogous bene- fits. For example, sanitation workers, who are members of the New York City employee retirement system, are granted the option of participating in a program that allows them to retire after twenty years of service regardless of age. See N.Y.C. Admin. Code §§ 13-159, 13-160; Ret. & Soc. Sec. L. § 445-b. Similarly, investigators, dispatchers, emergency medical technicians, special officers, parking control specialists, school safety agents, campus peace officers, and New York city taxi and limousine inspectors are granted the option of participating in a program that allows them to retire after twenty-five years of service. See N.Y.C. Admin. Code §§ 13-157.1, §§ 13-157.2, § 13-157.2, (n.b. there are two sections 13-157.2.), and §§ 13-157.3. Corrections officers and housing police have similar benefits, as do others. See, e.g., N.Y.C. Admin. Code §§ 13-155, 13-156, 13-157. Those opting to join the program are required to make additional contributions whibh are designed to pay for the benefits thereof. To the extent that "uniformed service" employees should be given greater pension benefits than other city employees, it is because of the content of their jobs: uniformed service employees perform work of an emergent nature or which is of special need to the residents of the city, under hazardous conditions. The job performed by fire protection inspectors and associate fire protection inspectors have these same character- istics: it is hazardous work of an emergent nature which 1s of special need to the residents of New York City. Indeed, because these charac- teristics of their work are the characteristics of the work of uniformed services personnel, there is every reason they should be given analogous pension benefits. Accordingly it is urged that this bill be approved.   FISCAL: See the bill   EFFECTIVE DATE: This bill shall take effect immediately.
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AB7793 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7793--A
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 27, 2015
                                       ___________
 
        Introduced by M. of A. ABBATE -- Multi-Sponsored by -- M. of A. GOLDFED-
          ER  -- read once and referred to the Committee on Governmental Employ-
          ees -- recommitted to  the  Committee  on  Governmental  Employees  in
          accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee
 
        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.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11281-02-6

        A. 7793--A                          2
 
     1    3.  "Starting  date  of the twenty-five year retirement program" shall
     2  mean the date of enactment of this section.
     3    4. "Participant in the twenty-five year retirement program" shall mean
     4  any   fire   protection  inspector  member  who,  under  the  applicable
     5  provisions of subdivision b of this section, is entitled to the  rights,
     6  benefits  and  privileges and is subject to the obligations of the twen-
     7  ty-five year retirement program as applicable to him or her.
     8    5. "Discontinued member" shall mean a participant in  the  twenty-five
     9  year  retirement  program  who,  while  he  or she was a fire protection
    10  inspector member, discontinued service as such a member and has a  right
    11  to  a  deferred  vested benefit under the provisions of subdivision d of
    12  this section.
    13    6. "Allowable service as a fire  protection  inspector  member"  shall
    14  mean  (i)  all  service while employed by the city of New York or by the
    15  New York city fire department in a title whose duties  are  those  of  a
    16  fire  protection  inspector  or associate fire protection inspector, and
    17  (ii) with respect to an individual who was employed upon  the  effective
    18  date  of this section or thereafter in a title whose duties are those of
    19  a fire protection inspector or associate fire protection inspector,  all
    20  such  service  subsequent  thereto  in  a title whose duties require the
    21  supervision of employees whose duties are those  of  a  fire  protection
    22  inspector  or  associate  fire protection inspector in the New York city
    23  fire department.
    24    b. Participation  in  the  twenty-five  year  retirement  program.  1.
    25  Subject  to  the  provisions of paragraphs five and six of this subdivi-
    26  sion, any person who is a fire protection inspector member on the start-
    27  ing date of the twenty-five year retirement program may elect to  become
    28  a  participant  in  the  twenty-five  year retirement program by filing,
    29  within one hundred eighty days after the starting date  of  the  twenty-
    30  five  year  retirement  program,  a  duly  executed application for such
    31  participation with the retirement system  of  which  such  person  is  a
    32  member, provided he or she is such a fire protection inspector member on
    33  the date such application is filed.
    34    2. Subject to the provisions of paragraphs five and six of this subdi-
    35  vision,  any person who becomes a fire protection inspector member after
    36  the starting date of the twenty-five year retirement program  may  elect
    37  to  become  a  participant in the twenty-five year retirement program by
    38  filing, within one hundred  eighty  days  after  becoming  such  a  fire
    39  protection  inspector  member,  a  duly  executed  application  for such
    40  participation with the retirement system  of  which  such  person  is  a
    41  member, provided he or she is such a fire protection inspector member on
    42  the date such application is filed.
    43    3. Any election to be a participant in the twenty-five year retirement
    44  program shall be irrevocable.
    45    4.  Where  any  participant in the twenty-five year retirement program
    46  shall cease to be employed as a fire protection inspector member, he  or
    47  she shall cease to be such a participant and, during any period in which
    48  such  person is not so employed, he or she shall not be a participant in
    49  the twenty-five year retirement program and shall not  be  eligible  for
    50  the benefits of subdivision c of this section.
    51    5.  Where  any  participant in the twenty-five year retirement program
    52  terminates service as a fire protection inspector member and returns  to
    53  such  service  as a fire protection inspector at a later date, he or she
    54  shall again become such a participant on that date.
    55    6. Notwithstanding any other provision of law  to  the  contrary,  any
    56  person  who  is eligible to become a participant in the twenty-five year

        A. 7793--A                          3
 
     1  retirement program pursuant to paragraph one or two of this  subdivision
     2  for the full one hundred eighty day period provided for in such applica-
     3  ble  paragraph  and who fails to timely file a duly executed application
     4  for  such participation with the retirement system, shall not thereafter
     5  be eligible to become a participant in such program.
     6    c. Service retirement benefits. 1. A participant  in  the  twenty-five
     7  year retirement program:
     8    (i)  who  has completed twenty-five or more years of allowable service
     9  as a fire protection inspector member; and
    10    (ii) who files with the retirement system an application  for  service
    11  retirement  setting forth at what time, not less than thirty days subse-
    12  quent to the execution and filing thereof,  he  or  she  desires  to  be
    13  retired; and
    14    (iii)  who  shall  be a participant in the twenty-five year retirement
    15  program at the time so specified for his or  her  retirement;  shall  be
    16  retired  pursuant  to  the  provisions  of  this section affording early
    17  service retirement.
    18    2. Notwithstanding any other provision of law  to  the  contrary,  the
    19  early  service  retirement  benefit for a participant in the twenty-five
    20  year retirement program who retires pursuant to paragraph  one  of  this
    21  subdivision shall be a retirement allowance consisting of:
    22    (i)  an  amount, on account of the required minimum period of service,
    23  equal to the sums of (a) an annuity which shall be the actuarial  equiv-
    24  alent  of  the  accumulated  deductions  from his or her pay during such
    25  period, (b) a pension for increased-take-home-pay  which  shall  be  the
    26  actuarial equivalent of the reserve for increased-take-home-pay to which
    27  he or she may be entitled for such period, and (c) a pension which, when
    28  added  to  such  annuity  and  such pension for increased-take-home-pay,
    29  produces a retirement allowance equal to fifty-five percent of the sala-
    30  ry earned or earnable in the year prior to his or her retirement; plus
    31    (ii) an amount for each additional year of allowable service as a fire
    32  protection inspector member, or fraction thereof, beyond  such  required
    33  minimum  period  of service equal to one and seven-tenths percent of the
    34  salary earned or earnable in the year prior to his or her retirement for
    35  such allowable service during the period from the completion of  twenty-
    36  five years of allowable service as a fire protection inspector member to
    37  the date of retirement.
    38    d.  Vesting.  1.  A  participant  in  the  twenty-five year retirement
    39  program who: (i) discontinues service as  a  fire  protection  inspector
    40  member,  other  than  by  death  or  retirement;  and (ii) prior to such
    41  discontinuance, completed five but less than twenty-five years of allow-
    42  able city service; and (iii) does not withdraw in whole or in  part  his
    43  or  her  accumulated  member contributions pursuant to section 13-141 of
    44  this chapter, shall be entitled to receive a deferred vested benefit  as
    45  provided in this subdivision.
    46    2. (i) Upon such discontinuance under the conditions and in compliance
    47  with  the provisions of paragraph one of this subdivision, such deferred
    48  vested benefit shall vest automatically.
    49    (ii) Such vested benefit shall become payable on the earliest date  on
    50  which  such  discontinued  member could have retired for service if such
    51  discontinuance had not occurred.
    52    3. Such deferred  vested  benefit  shall  be  a  retirement  allowance
    53  consisting  of  an  amount  equal  to two and two-tenths percent of such
    54  discontinued member's salary earned or earnable in the year prior to his
    55  or her discontinuance, multiplied by the number of  years  of  allowable
    56  service as a fire protection member.

        A. 7793--A                          4
 
     1    e.  Member contributions. All fire protection inspector members of the
     2  twenty-five year retirement program shall be  required  to  make  member
     3  contributions and additional member contributions in accordance with and
     4  subject  to  the  same rights, privileges, obligations and procedures as
     5  govern  the  member  contributions  and  additional member contributions
     6  required by subdivision d of section four hundred  forty-five-j  of  the
     7  retirement and social security law.
     8    For the purpose of applying under this subdivision, such subdivision d
     9  of  section four hundred forty-five-j of the retirement and social secu-
    10  rity law to a fire protection inspector member of the  twenty-five  year
    11  retirement program who is subject to the provisions of this section, and
    12  is not subject to the provisions of article eleven of the retirement and
    13  social security law, the term "credited service," as used in such subdi-
    14  vision,  shall  be deemed to mean allowable service as a fire protection
    15  inspector member.
    16    § 2. Subdivision a of section 444 of the retirement and social securi-
    17  ty law, as amended by section 141 of subpart B of part C of  chapter  62
    18  of the laws of 2011, is amended to read as follows:
    19    a.  Except as provided in subdivision c of section four hundred forty-
    20  five-a of this article, subdivision c of  section  four  hundred  forty-
    21  five-b  of  this  article,  subdivision c of section four hundred forty-
    22  five-c  of  this  article,  subdivision  c  of  section   four   hundred
    23  forty-five-d  of  this article as added by chapter four hundred seventy-
    24  two of the laws  of  nineteen  hundred  ninety-five,  subdivision  c  of
    25  section  four  hundred  forty-five-e  of  this article, subdivision c of
    26  section four hundred forty-five-f of this article [and],  subdivision  c
    27  of  section  four hundred forty-five-h of this article and subdivision c
    28  of section four hundred forty-five-j,  the  maximum  retirement  benefit
    29  computed without optional modification provided to a member of a retire-
    30  ment system who is subject to the provisions of this article, other than
    31  a  police officer, a firefighter, an investigator member of the New York
    32  city employees' retirement system, a member of the  uniformed  personnel
    33  in  institutions  under the jurisdiction of the New York city department
    34  of correction who receives a performance of duty  disability  retirement
    35  allowance, a member of the uniformed personnel in institutions under the
    36  jurisdiction  of the department of corrections and community supervision
    37  or a security hospital treatment assistant, as those terms  are  defined
    38  in  subdivision i of section eighty-nine of this chapter, who receives a
    39  performance of duty disability  retirement  allowance,  a  member  of  a
    40  teachers' retirement system, New York city employees' retirement system,
    41  New  York  city  board of education retirement system or a member of the
    42  New York state and local employees' retirement system or a member of the
    43  New York city employees' retirement system or New  York  city  board  of
    44  education  retirement  system  employed  as  a  special officer, parking
    45  control specialist, school safety agent, campus peace officer, taxi  and
    46  limousine inspector or a police communications member and who receives a
    47  performance  of  duty  disability  pension,  from funds other than those
    48  based on a member's own or increased-take-home-pay contributions, shall,
    49  before any reduction for early retirement, be sixty per  centum  of  the
    50  first  fifteen  thousand  three hundred dollars of final average salary,
    51  and fifty per centum of final average salary in excess of fifteen  thou-
    52  sand three hundred dollars, and forty per centum of final average salary
    53  in  excess  of  twenty-seven  thousand  three hundred dollars, provided,
    54  however, that the benefits provided by subdivision  c  of  section  four
    55  hundred  forty-five-d  of  this article as added by chapter four hundred
    56  seventy-two of the laws of nineteen hundred ninety-five based  upon  the

        A. 7793--A                          5
 
     1  additional  member  contributions  required  by  subdivision  d  of such
     2  section four hundred  forty-five-d  shall  be  subject  to  the  maximum
     3  retirement  benefit  computations set forth in this section. The maximum
     4  retirement  benefit  computed without optional modification payable to a
     5  police officer, an investigator member of the New York  city  employees'
     6  retirement  system  or  a  firefighter  shall  equal  that  payable upon
     7  completion of thirty years of service, except that the  maximum  service
     8  retirement  benefit  computed  without optional modification shall equal
     9  that payable upon completion of thirty-two years of service.
    10    § 3. Subdivision a of section 445 of the retirement and social securi-
    11  ty law, as amended by chapter 295 of the laws of  2007,  is  amended  to
    12  read as follows:
    13    a.  No  member of a retirement system who is subject to the provisions
    14  of this article shall retire without regard to age, exclusive of retire-
    15  ment for disability, unless he or she is a  policeman,  an  investigator
    16  member  of  the  New  York  city  employees' retirement system, fireman,
    17  correction officer, a qualifying member as defined  in  section  eighty-
    18  nine-t, as added by chapter six hundred fifty-seven of the laws of nine-
    19  teen  hundred  ninety-eight,  of this chapter, sanitation man, a special
    20  officer (including persons employed by the city of New York in the title
    21  urban park ranger or associate urban park ranger), school safety  agent,
    22  campus peace officer or a taxi and limousine commission inspector member
    23  of  the  New York city employees' retirement system or the New York city
    24  board of education retirement system, a dispatcher  member  of  the  New
    25  York  city  employees' retirement system, a police communications member
    26  of the New York city employees' retirement system, an EMT member of  the
    27  New  York  city employees' retirement system, a deputy sheriff member of
    28  the New York  city  employees'  retirement  system,  a  fire  protection
    29  inspector  member  of  the New York city employees' retirement system, a
    30  correction officer of the Westchester county  correction  department  as
    31  defined  in section eighty-nine-e of this chapter or employed in Suffolk
    32  county as a peace officer, as defined in section eighty-nine-s, as added
    33  by chapter five hundred eighty-eight of the  laws  of  nineteen  hundred
    34  ninety-seven,   of  this  chapter,  employed  in  Suffolk  county  as  a
    35  correction officer, as defined in section eighty-nine-f of this chapter,
    36  or  employed  in  Nassau  county  as  a  correction  officer,  uniformed
    37  correction  division personnel, sheriff, undersheriff or deputy sheriff,
    38  as defined in section eighty-nine-g of  this  chapter,  or  employed  in
    39  Nassau  county  as an ambulance medical technician, an ambulance medical
    40  technician/supervisor or a member who performs ambulance medical techni-
    41  cian related services, as defined in section eighty-nine-s,  as  amended
    42  by  chapter  five  hundred seventy-eight of the laws of nineteen hundred
    43  ninety-eight, of this chapter, or employed in Nassau county as  a  peace
    44  officer,  as  defined in section eighty-nine-s, as added by chapter five
    45  hundred ninety-five of the laws of  nineteen  hundred  ninety-seven,  of
    46  this  chapter,  or employed in Albany county as a sheriff, undersheriff,
    47  deputy sheriff, correction officer or identification officer, as defined
    48  in section eighty-nine-h of this chapter or is employed in St.  Lawrence
    49  county as a sheriff, undersheriff, deputy sheriff or correction officer,
    50  as  defined  in  section eighty-nine-i of this chapter or is employed in
    51  Orleans county as a sheriff, undersheriff, deputy sheriff or  correction
    52  officer,  as  defined  in  section  eighty-nine-l  of this chapter or is
    53  employed in Jefferson county as a sheriff, undersheriff, deputy  sheriff
    54  or correction officer, as defined in section eighty-nine-j of this chap-
    55  ter  or is employed in Onondaga county as a deputy sheriff-jail division
    56  competitively appointed or  as  a  correction  officer,  as  defined  in

        A. 7793--A                          6
 
     1  section  eighty-nine-k  of this chapter or is employed in a county which
     2  makes an election under subdivision j of section eighty-nine-p  of  this
     3  chapter as a sheriff, undersheriff, deputy sheriff or correction officer
     4  as defined in such section eighty-nine-p or is employed in Broome County
     5  as  a  sheriff,  undersheriff,  deputy sheriff or correction officer, as
     6  defined in section eighty-nine-m of this chapter or is a  Monroe  county
     7  deputy  sheriff-court  security,  or deputy sheriff-jailor as defined in
     8  section eighty-nine-n, as added by chapter five hundred ninety-seven  of
     9  the  laws of nineteen hundred ninety-one, of this chapter or is employed
    10  in  Greene  county  as  a  sheriff,  undersheriff,  deputy  sheriff   or
    11  correction  officer, as defined in section eighty-nine-o of this chapter
    12  or is a traffic officer with the town of Elmira as  defined  in  section
    13  eighty-nine-q of this chapter or is employed by Suffolk county as a park
    14  police  officer,  as defined in section eighty-nine-r of this chapter or
    15  is a peace officer employed by a county probation department as  defined
    16  in  section  eighty-nine-t, as added by chapter six hundred three of the
    17  laws of nineteen hundred ninety-eight, of this chapter or is employed in
    18  Rockland county as a deputy sheriff-civil as defined in section  eighty-
    19  nine-v of this chapter as added by chapter four hundred forty-one of the
    20  laws of two thousand one, or is employed in Rockland county as a superi-
    21  or  correction officer as defined in section eighty-nine-v of this chap-
    22  ter as added by chapter five hundred fifty-six of the laws of two  thou-
    23  sand one or is a paramedic employed by the police department in the town
    24  of  Tonawanda  and retires under the provisions of section eighty-nine-v
    25  of this chapter, as added by chapter four  hundred  seventy-two  of  the
    26  laws  of two thousand one, or is a county fire marshal, supervising fire
    27  marshal, fire marshal, assistant  fire  marshal,  assistant  chief  fire
    28  marshal  or  chief  fire  marshal  employed  by  the county of Nassau as
    29  defined in section eighty-nine-w of this chapter and is in a plan  which
    30  permits  immediate  retirement  upon completion of a specified period of
    31  service without regard to age. Except as provided in  subdivision  c  of
    32  section  four  hundred  forty-five-a  of  this article, subdivision c of
    33  section four hundred forty-five-b of  this  article,  subdivision  c  of
    34  section  four  hundred  forty-five-c  of  this article, subdivision c of
    35  section four hundred forty-five-d of  this  article,  subdivision  c  of
    36  section  four  hundred  forty-five-e  of  this article, subdivision c of
    37  section four hundred forty-five-f of this article [and],  subdivision  c
    38  of  section four hundred forty-five-h of this article, and subdivision c
    39  of section four hundred forty-five-j of this article, a member in such a
    40  plan and such an occupation, other  than  a  policeman  or  investigator
    41  member  of  the New York city employees' retirement system or a fireman,
    42  shall not be permitted to retire prior to the completion of  twenty-five
    43  years  of  credited service; provided, however, if such a member in such
    44  an occupation is in a plan which permits retirement upon  completion  of
    45  twenty  years  of  service  regardless of age, he or she may retire upon
    46  completion of  twenty  years  of  credited  service  and  prior  to  the
    47  completion  of twenty-five years of service, but in such event the bene-
    48  fit provided from funds other than those based on such  a  member's  own
    49  contributions  shall  not  exceed two per centum of final average salary
    50  per each year of credited service.
    51    § 4. The retirement and social security law is amended by adding a new
    52  section 445-j to read as follows:
    53    § 445-j. Optional twenty-five year improved benefit retirement program
    54  for fire protection inspector members.  a.  Definitions.  The  following
    55  words and phrases as used in this section shall have the following mean-
    56  ings unless a different meaning is plainly required by the context.

        A. 7793--A                          7
 
     1    1. "Retirement system" shall mean the New York city employees' retire-
     2  ment system.
     3    2.  "Fire  protection inspector member" shall mean (i) a member of the
     4  retirement system who is subject to the provisions of this article,  who
     5  is employed by the city of New York or by the New York city fire depart-
     6  ment in a title whose duties are those of a fire protection inspector or
     7  associate fire protection inspector; and (ii) a member of the retirement
     8  system  who,  on  the date this act shall take effect or thereafter, was
     9  employed by the city of New York or by the New York city fire department
    10  in a title whose duties are those of  a  fire  protection  inspector  or
    11  associate  fire protection inspector and who, subsequent thereto, became
    12  employed by the city of New York or by the New York city fire department
    13  in a title whose duties  require  the  supervision  of  employees  whose
    14  duties  are  those  of  a  fire  protection  inspector or associate fire
    15  protection inspector.
    16    3. "Twenty-five year improved benefit retirement program"  shall  mean
    17  all the terms and conditions of this section.
    18    4.  "Starting date of the twenty-five year improved benefit retirement
    19  program" shall mean the date of enactment of the act  which  added  this
    20  section,  as such date is certified pursuant to section forty-one of the
    21  legislative law.
    22    5. "Participant in the twenty-five year  improved  benefit  retirement
    23  program"  shall mean any fire protection inspector member who, under the
    24  applicable provisions of subdivision b of this section, is  entitled  to
    25  the rights, benefits and privileges and is subject to the obligations of
    26  the  twenty-five year improved benefit retirement program, as applicable
    27  to him or her.
    28    6. "Administrative code" shall mean the  administrative  code  of  the
    29  city of New York.
    30    7.  "Accumulated  deductions"  shall  mean  accumulated  deductions as
    31  defined in subdivision eleven of section 13-101  of  the  administrative
    32  code.
    33    8. "Optional retirement provisions" shall mean the right to retire and
    34  receive a retirement allowance under this section upon the completion of
    35  twenty-five years of allowable service.
    36    9. "Allowable service" for purposes of this section shall mean (1) all
    37  service  while  employed by the city of New York or by the New York city
    38  fire department in a title whose duties are those of a  fire  protection
    39  inspector  or  associate fire protection inspector, and (2) with respect
    40  to an individual who was  employed  upon  the  effective  date  of  this
    41  section  or  thereafter  in  a  title  whose  duties are those of a fire
    42  protection inspector or associate fire protection  inspector,  all  such
    43  service  subsequent  thereto  in a title whose duties require the super-
    44  vision of employees whose duties are those of a fire protection  inspec-
    45  tor or associate fire protection inspector.
    46    b.  Election  of twenty-five year improved benefit retirement program.
    47  1.  Subject to the provisions of paragraph five and six of this subdivi-
    48  sion, any person who is a fire protection inspector member on the start-
    49  ing date of the twenty-five year improved benefit retirement program may
    50  elect to become a participant in the twenty-five year  improved  benefit
    51  retirement  program by filing, within one hundred eighty days after such
    52  starting date, a duly executed application for such  participation  with
    53  the retirement system, provided that he or she is such a fire protection
    54  inspector member on the date such application is filed.
    55    2.  Subject to the provision of paragraphs five and six of this subdi-
    56  vision, any person who becomes a fire protection inspector member  after

        A. 7793--A                          8
 
     1  the  starting  date  of the twenty-five year improved benefit retirement
     2  program may elect to  become  a  participant  in  the  twenty-five  year
     3  improved benefit retirement program by filing, within one hundred eighty
     4  days  after  becoming  such  a  fire protection inspector member, a duly
     5  executed application for such participation with the retirement  system,
     6  provided  that  he  or she is such a fire protection inspector member on
     7  the date such application is filed.
     8    3. Any election to be a participant in the twenty-five  year  improved
     9  benefit retirement program shall be irrevocable.
    10    4.  Where  any  participant  in  the twenty-five year improved benefit
    11  retirement program shall cease to hold a position as a  fire  protection
    12  inspector  member,  he  or she shall cease to be such a participant and,
    13  during any period in which such a person  does  not  hold  such  a  fire
    14  protection  inspector  position, he or she shall not be a participant in
    15  the twenty-five year improved benefit retirement program and  shall  not
    16  be eligible for the benefits of subdivision c of this section.
    17    5.  Where  any  participant  in  the twenty-five year improved benefit
    18  retirement program terminates service as  a  fire  protection  inspector
    19  member and returns to such service as a fire protection inspector member
    20  at a later date, he or she shall again become such a participant on that
    21  date.
    22    6.  Notwithstanding  any  other  provision of law to the contrary, any
    23  person who is eligible to become a participant in the  twenty-five  year
    24  improved  benefit retirement program pursuant to paragraph one or two of
    25  this subdivision for the full one hundred eighty day period provided for
    26  in such applicable paragraph  and  who  fails  to  timely  file  a  duly
    27  executed  application for such participation with the retirement system,
    28  shall not thereafter  be  eligible  to  become  a  participant  in  such
    29  program.
    30    c. Service retirement benefits. Notwithstanding any other provision of
    31  law  to  the  contrary,  where  a  participant  in  the twenty-five year
    32  improved benefit retirement program, who is otherwise  qualified  for  a
    33  retirement  allowance  pursuant to the optional retirement provision set
    34  forth in subdivision a of this section, has made and/or paid,  while  he
    35  or  she  is  a  fire  protection inspector member, all additional member
    36  contributions and interest (if any) required by subdivision  d  of  this
    37  section, then:
    38    1. that participant, while he or she remains participant, shall not be
    39  subject  to  the  provisions  of  subdivision  a of section four hundred
    40  forty-five of this chapter; and
    41    2. if that participant, while such a participant, retires for service,
    42  he or she shall not be subject to the provisions of section four hundred
    43  forty-four of this chapter; and
    44    3. his or her retirement allowance shall be an amount, on  account  of
    45  the required minimum period of service, equal to the sum of (i) an annu-
    46  ity   which  shall  be  the  actuarial  equivalent  of  the  accumulated
    47  deductions from his or her pay during such period, (ii)  a  pension  for
    48  increased-take-home-pay  which  shall be the actuarial equivalent of the
    49  reserve for increased-take-home-pay to which he or she may be  entitled,
    50  for  such  period, and (iii) a pension which, when added to such annuity
    51  and such pension  for  increased-take-home-pay,  produces  a  retirement
    52  allowance  equal  to  fifty  percent of his or her final average salary,
    53  plus an amount for each additional year of allowable service as  a  fire
    54  protection  inspector  member, or fraction thereof, beyond such required
    55  minimum period of service equal to two percent of his or her final aver-
    56  age salary for such allowable service as  a  fire  protection  inspector

        A. 7793--A                          9
 
     1  member  during the period from completion of twenty-five years of allow-
     2  able service as a fire  protection  inspector  member  to  the  date  of
     3  retirement  but not to exceed more than five years of additional service
     4  as a fire protection inspector member.
     5    d.  Additional  member  contributions.  1.  In  addition to the member
     6  contributions required pursuant to  section  13-125  or  13-162  of  the
     7  administrative  code  of  the  city of New York, each participant in the
     8  twenty-five year improved benefit retirement program  shall  contribute,
     9  subject to the applicable provisions of section 13-125.2 of the adminis-
    10  trative  code  of the city of New York, an additional six percent of his
    11  or her compensation earned from allowable service as a  fire  protection
    12  inspector  member,  as  a  participant  in the twenty-five year improved
    13  benefit retirement program, rendered on and after the starting  date  of
    14  the  improved benefit retirement program, and all allowable service as a
    15  fire protection inspector member  after  such  person  ceases  to  be  a
    16  participant,  but  before he or she again becomes a participant pursuant
    17  to paragraph five of subdivision b of this section.   A  participant  in
    18  the  twenty-five year improved benefit retirement program shall contrib-
    19  ute additional member contributions until the later of the  date  as  of
    20  which  he  or  she  is eligible to retire with thirty years of allowable
    21  service as a fire protection  inspector  member  under  such  retirement
    22  program,  or  the  first anniversary of the starting date of the twenty-
    23  five year improved benefit retirement program. The  additional  contrib-
    24  utions  required  by  this section shall be in lieu of additional member
    25  contributions required by subdivision d of section four  hundred  forty-
    26  five-d  of  this  chapter, as added by chapter ninety-six of the laws of
    27  nineteen hundred ninety-five, and no member paying  additional  contrib-
    28  utions  pursuant  to  this  section  shall be required to pay additional
    29  contributions pursuant to such subdivision d  of  section  four  hundred
    30  forty-five-d of this chapter.
    31    2.  Commencing  with  the  first full payroll period after each person
    32  becomes a participant in the twenty-five year improved  benefit  retire-
    33  ment  program,  additional member contributions at the rate specified in
    34  paragraph one of this subdivision shall  be  deducted,  subject  to  the
    35  applicable  provisions of section 13-125.2 of the administrative code of
    36  the city of New York, from the compensation of such participant on  each
    37  and  every payroll of such participant for each and every payroll period
    38  for which he or she is such a participant.
    39    3. (i) Subject to the provisions of subparagraph (ii)  of  this  para-
    40  graph,  where  any additional member contributions required by paragraph
    41  one of this subdivision are not paid by deductions from a  participant's
    42  compensation pursuant to paragraph two of this subdivision:
    43    (A)  that  participant shall be charged with a contribution deficiency
    44  consisting of such  unpaid  amounts,  together  with  interest  thereon,
    45  compounded annually; and
    46    (B)  such  interest  on  each amount of undeducted contributions shall
    47  accrue from the end of the payroll period for which  such  amount  would
    48  have been deducted from compensation if he or she had been a participant
    49  at  the  beginning  of  that payroll period and such deductions had been
    50  required for such payroll period  until  such  amount  is  paid  to  the
    51  retirement system; and
    52    (C)  (1)  interest  on each such amount included in such participant's
    53  contribution deficiency pursuant to this subparagraph  shall  be  calcu-
    54  lated  as if such additional member contributions never had been paid by
    55  such participant, and such interest shall accrue from  the  end  of  the
    56  payroll period to which an amount of such additional member contribution

        A. 7793--A                         10
 
     1  is  attributable,  compounded annually, until such amount is paid to the
     2  retirement system;
     3    (2)  the rate of interest to be applied to each such amount during the
     4  period for which interest accrues on that amount shall be equal  to  the
     5  rate  or  rates  of interest required by law to be used during that same
     6  period to credit interest on the accumulated  deductions  of  retirement
     7  system members;
     8    (ii)  Except  as  provided in subparagraph (iii) of this paragraph, no
     9  interest shall be due on any unpaid additional contributions  which  are
    10  not  attributable  to  the period prior to the first full payroll period
    11  referred to in paragraph two of this subdivision;
    12    (iii) Should any person who,  pursuant  to  paragraph  seven  of  this
    13  subdivision  has  withdrawn any additional member contributions (and any
    14  interest paid thereon) again become a  participant  in  the  twenty-five
    15  year  improved  benefit retirement program pursuant to paragraph five of
    16  subdivision b of this section, an appropriate amount shall  be  included
    17  in such participant's contribution deficiency (including interest there-
    18  on  as  calculated  pursuant to this paragraph) for any credited service
    19  with respect to which such person received a refund of additional member
    20  contributions (including any amount of an unpaid loan balance deemed  to
    21  have  been  returned  to such person pursuant to paragraph seven of this
    22  subdivision), as if such additional member contributions never had  been
    23  paid.
    24    4. The board of trustees of the retirement system may, consistent with
    25  the  provisions  of  this  subdivision,  promulgate  regulations for the
    26  payment of the additional member contributions required by this subdivi-
    27  sion, and any interest thereon, by a participant in the twenty-five year
    28  improved benefit retirement program (including  the  deduction  of  such
    29  contributions, and any interest thereon, from his or her compensation).
    30    5.  Where  a participant who is otherwise eligible for service retire-
    31  ment pursuant to subdivision c of this section did  not,  prior  to  the
    32  effective  date  of  retirement, pay the entire amount of a contribution
    33  deficiency chargeable to him or her pursuant to paragraph three of  this
    34  subdivision,  or  repay  the entire amount of a loan of his or her addi-
    35  tional member contributions pursuant to paragraph eight of this subdivi-
    36  sion (including accrued interest on such loan), that participant, never-
    37  theless, shall be eligible to retire pursuant to subdivision c  of  this
    38  section,  provided, however, that where such participant is not entitled
    39  to a refund of additional member  contributions  pursuant  to  paragraph
    40  seven of this subdivision, such participant's service retirement benefit
    41  calculated  pursuant  to  the  applicable provisions of subdivision c of
    42  this section shall be reduced by a life annuity (calculated  in  accord-
    43  ance  with  the method set forth in subdivision i of section six hundred
    44  thirteen-b of this chapter) which is actuarially equivalent to: (i)  the
    45  amount  of  any unpaid contribution deficiency chargeable to such member
    46  pursuant to paragraph three of this subdivision; plus (ii) the amount of
    47  any unpaid balance of a loan of his or her  additional  member  contrib-
    48  utions  pursuant  to  paragraph  eight  of  this  subdivision (including
    49  accrued interest on such loan).
    50    6. Subject to the provisions of paragraph five  of  this  subdivision,
    51  where  a  participant  has  not paid in full any contribution deficiency
    52  chargeable to him or her pursuant to paragraph three  of  this  subdivi-
    53  sion,  and  a  benefit,  other  than  a refund of a member's accumulated
    54  deductions or a refund of additional member  contributions  pursuant  to
    55  paragraph  seven  of this subdivision, becomes payable by the retirement
    56  system to the participant or to his or  her  designated  beneficiary  or

        A. 7793--A                         11
 
     1  estate,  the  actuarial  equivalent  of  any such unpaid amount shall be
     2  deducted from the benefit otherwise payable.
     3    7.  (i)  All additional member contributions required by this subdivi-
     4  sion (and any interest thereon) which are  received  by  the  retirement
     5  system  shall  be paid into its contingent reserve fund and shall be the
     6  property of the retirement system. Such additional member  contributions
     7  (and  any  interest  thereon)  shall not for any purpose be deemed to be
     8  member contributions or  accumulated  deductions  of  a  member  of  the
     9  retirement  system  under section 13-125 or 13-162 of the administrative
    10  code of the city of New York while he or she is  a  participant  in  the
    11  twenty-five year improved benefit retirement program or otherwise.
    12    (ii)  Should  a  participant  in the twenty-five year improved benefit
    13  retirement program, who has rendered less than fifteen years of credited
    14  service cease to hold a position as a fire protection  inspector  member
    15  for  any  reason  whatsoever,  his  or her accumulated additional member
    16  contributions made pursuant  to  this  subdivision  (together  with  any
    17  interest thereon paid to the retirement system) which remain credited to
    18  such  participant's  account  may be withdrawn by him or her pursuant to
    19  procedures promulgated in regulations of the board of  trustees  of  the
    20  retirement  system, together with interest thereon at the rate of inter-
    21  est required by law to be used to credit  interest  on  the  accumulated
    22  deductions of retirement system members compounded annually.
    23    (iii) Notwithstanding any other provision of law to the contrary,
    24    (A)  no  person  shall  be  permitted  to withdraw from the retirement
    25  system any additional member contributions paid pursuant to this  subdi-
    26  vision  or  any interest paid thereon, except pursuant to and in accord-
    27  ance with the preceding subparagraphs of this paragraph; and
    28    (B) no person, while he or she is a  participant  in  the  twenty-five
    29  year improved benefit retirement program, shall be permitted to withdraw
    30  any  such  additional  member contributions or any interest paid thereon
    31  pursuant to any of the preceding  subparagraphs  of  this  paragraph  or
    32  otherwise.
    33    8.  A  participant in the twenty-five year improved benefit retirement
    34  program shall be permitted to borrow from his or her  additional  member
    35  contributions,  including  any interest paid thereon, which are credited
    36  to the additional contributions account established for such participant
    37  in the contingent reserve fund of the retirement system.  The  borrowing
    38  from  such  additional  member  contributions pursuant to this paragraph
    39  shall be governed by the same rights, privileges, obligations and proce-
    40  dures set forth in section six hundred thirteen-b of this chapter  which
    41  govern the borrowing by members subject to article fifteen of this chap-
    42  ter  of  member contributions made pursuant to section six hundred thir-
    43  teen of this chapter. The board of trustees  of  the  retirement  system
    44  may,  consistent  with  the  provisions  of  this  subdivision  and  the
    45  provisions of section six hundred thirteen-b of  this  chapter  as  made
    46  applicable  to  this  subdivision,  promulgate regulations governing the
    47  borrowing of such addition member contributions.
    48    9. Wherever a person has an unpaid balance of a loan  of  his  or  her
    49  additional  member  contributions  pursuant  to  paragraph eight of this
    50  subdivision at the time he or she becomes entitled to a refund of his or
    51  her additional member contributions pursuant  to  subparagraph  (ii)  of
    52  paragraph  seven  of  this  subdivision,  the amount of such unpaid loan
    53  balance (including accrued  interest)  shall  be  deemed  to  have  been
    54  returned to such member, and the refund of such additional contributions
    55  shall  be  the  net amount of such contributions, together with interest
    56  thereon in accordance with the provisions of such subparagraph.

        A. 7793--A                         12
 
     1    10. Notwithstanding any other provision of law to  the  contrary,  the
     2  provisions  of  section one hundred thirty-eight-b of this chapter shall
     3  not be applicable to  the  additional  member  contributions  which  are
     4  required by this subdivision.
     5    11.  Notwithstanding  any  other provision of law to the contrary, the
     6  additional member contributions which are required by  this  subdivision
     7  shall not be reduced under any program for increased-take-home-pay.
     8    e.  The  provisions  of this section shall not be construed to provide
     9  benefits to any participant in the  twenty-five  year  improved  benefit
    10  retirement  program which are greater than those which would be received
    11  by a similarly situated member who is entitled  to  benefits  under  the
    12  provisions  of  section  13-157.2 of the administrative code, but who is
    13  not governed by the provisions of this article.
    14    § 5. The retirement and social security law is amended by adding a new
    15  section 604-j to read as follows:
    16    § 604-j. Twenty-five  year  retirement  program  for  fire  protection
    17  inspector  members.  a.  Definitions. The following words and phrases as
    18  used in this section shall have the following meanings unless a  differ-
    19  ent meaning is plainly required by the context.
    20    1.  "Fire  protection  inspector  member"  shall  mean a member who is
    21  employed by the city of New York or by the New York city fire department
    22  in a title whose duties are those of  a  fire  protection  inspector  or
    23  associate  fire protection inspector; or in a title whose duties require
    24  the supervision of employees whose duties are those of a fire protection
    25  inspector or associate fire protection inspector.
    26    2. "Twenty-five year retirement program" shall mean all the terms  and
    27  conditions of this section.
    28    3.  "Starting  date  of the twenty-five year retirement program" shall
    29  mean the date of enactment of this section.
    30    4. "Participant in the twenty-five year retirement program" shall mean
    31  any  fire  protection  inspector  member  who,  under   the   applicable
    32  provisions  of subdivision b of this section, is entitled to the rights,
    33  benefits and privileges and is subject to the obligations of  the  twen-
    34  ty-five year retirement program, as applicable to him or her.
    35    5.  "Discontinued  member" shall mean a participant in the twenty-five
    36  year retirement program who, while he  or  she  was  a  fire  protection
    37  inspector  member, discontinued service as such a member and has a right
    38  to a deferred vested benefit under subdivision d of this section.
    39    6. "Administrative code" shall mean the  administrative  code  of  the
    40  city of New York.
    41    7.  "Allowable  service  as  a fire protection inspector member" shall
    42  mean all service as a fire protection inspector member.
    43    b. Participation in twenty-five year retirement program. 1. Subject to
    44  the provisions of paragraphs six and  seven  of  this  subdivision,  any
    45  person who is a fire protection inspector member on the starting date of
    46  the  twenty-five  year  retirement  program  and  who,  as  such  a fire
    47  protection inspector member or otherwise, last  became  subject  to  the
    48  provisions  of  this  article  prior to such starting date, may elect to
    49  become a participant in  the  twenty-five  year  retirement  program  by
    50  filing,  within  one  hundred eighty days after the starting date of the
    51  twenty-five year retirement program, a  duly  executed  application  for
    52  such  participation with the retirement system of which such person is a
    53  member, provided he or she is such a fire protection inspector member on
    54  the date such application is filed.
    55    2. Subject to the provisions of  paragraphs  six  and  seven  of  this
    56  subdivision,  any  person who becomes a fire protection inspector member

        A. 7793--A                         13
 
     1  after the starting date of the twenty-five year retirement  program  and
     2  who,  as  such  a  fire  protection  inspector member or otherwise, last
     3  became subject to the provisions of this article prior to such  starting
     4  date,  may elect to become a participant in the twenty-five year retire-
     5  ment program by filing, within one hundred eighty  days  after  becoming
     6  such a fire protection inspector member, a duly executed application for
     7  such participation with the retirement system for which such person is a
     8  member,  provided  that  he  or  she is such a fire protection inspector
     9  member on the date such application is filed.
    10    3. Each fire protection inspector member, other than a fire protection
    11  inspector member subject to paragraph one or two  of  this  subdivision,
    12  who  becomes  subject  to the provisions of this article on or after the
    13  starting date of the twenty-five year retirement program shall become  a
    14  participant in the twenty-five year retirement program on the date he or
    15  she  becomes such a fire protection inspector member. Provided, however,
    16  a person subject to this paragraph, and who has exceeded age twenty-five
    17  upon employment as a fire protection inspector member, shall  be  exempt
    18  from  participation  in the improved twenty-five year retirement program
    19  if such person elects not to participate by filing a duly executed  form
    20  with  the retirement system within one hundred eighty days of becoming a
    21  fire protection inspector member.
    22    4. Any election to be a participant in the twenty-five year retirement
    23  program shall be irrevocable.
    24    5. Where any participant in the twenty-five  year  retirement  program
    25  shall  cease to be employed as a fire protection member, he or she shall
    26  cease to be such a participant and, during  any  period  in  which  such
    27  person  is  not so employed, he or she shall not be a participant in the
    28  twenty-five year retirement program and shall not be  eligible  for  the
    29  benefits of subdivision c of this section.
    30    6.  Where  any  participant in the twenty-five year retirement program
    31  terminates service as a fire protection inspector member and returns  to
    32  such  service  as a fire protection inspector member at a later date, he
    33  or she shall again become such a participant on that date.
    34    7. Notwithstanding any other provision of the law to the contrary, any
    35  person who is eligible to elect to become a participant in  the  twenty-
    36  five  year  retirement  program pursuant to paragraph one or two of this
    37  subdivision for the full one hundred eighty day period provided  for  in
    38  such  applicable  paragraph and who fails to timely file a duly executed
    39  application for such participation with the retirement system, shall not
    40  thereafter be eligible to become a participant in such program.
    41    c. Service retirement benefits.  1. A participant in  the  twenty-five
    42  year retirement program:
    43    (i)  who  has completed twenty-five or more years of allowable service
    44  as a fire protection member, and
    45    (ii) who has paid, before the effective date of retirement, all  addi-
    46  tional  member  contributions and interest (if any) required by subdivi-
    47  sion e of this section; and
    48    (iii) who files with the retirement system of which he  or  she  is  a
    49  member an application for service retirement setting forth at what time,
    50  not  less than thirty days subsequent to the execution and filing there-
    51  of, he or she desires to be retired; and
    52    (iv) who shall be a participant in  the  twenty-five  year  retirement
    53  program  at  the  time  so specified for his or her retirement, shall be
    54  retired pursuant to the  provisions  of  this  section  affording  early
    55  service retirement.

        A. 7793--A                         14
 
     1    2.  Notwithstanding  an  other  provision  of law to the contrary, and
     2  subject to the provisions of paragraph six  of  subdivision  e  of  this
     3  section,  the  early  service retirement benefit for participants in the
     4  twenty-five year retirement program who retire pursuant to paragraph one
     5  of this subdivision shall be a retirement allowance consisting of:
     6    (i)  an  amount, on account of the required minimum period of service,
     7  equal to fifty percent of his or her final average salary; plus
     8    (ii) an amount on account of allowable service as  a  fire  protection
     9  member,  or  fraction  thereof,  beyond  such required minimum period of
    10  service equal to two percent of his or her final salary for such  allow-
    11  able  service  as  a  fire  protection  member  during  the  period from
    12  completion  of  twenty-five  years  of  allowable  service  as  a   fire
    13  protection  member to the date of retirement but not to exceed more than
    14  five years of additional service as a fire protection member.
    15    d. Vesting. 1.  A  participant  in  the  twenty-five  year  retirement
    16  program:
    17    (i)  who  discontinues  service  as  such a participant, other than by
    18  death or retirement; and
    19    (ii) in the case of a participant who is not a New York  city  revised
    20  plan  member,  who prior to such discontinuance, completed five but less
    21  than than twenty-five years of allowable service as  a  fire  protection
    22  member  or,  in the case of a participant who is a New York city revised
    23  plan member, who prior to such discontinuance, completed  ten  but  less
    24  than twenty-five years of allowable service as a fire protection member;
    25  and
    26    (iii) who, subject to the provisions of paragraph seven of subdivision
    27  e  of  this  section,  has paid, prior to such discontinuance, all addi-
    28  tional member contributions and interest (if any) required  by  subdivi-
    29  sion e of this section; and
    30    (iv)  who does not withdraw in whole or in part his or her accumulated
    31  member contributions pursuant to section six hundred  thirteen  of  this
    32  article unless such participant thereafter returns to public service and
    33  repays  the  amounts  so  withdrawn, together with interest, pursuant to
    34  such section six hundred  thirteen;  shall  be  entitled  to  receive  a
    35  deferred vested benefit as provided in this subdivision.
    36    2. (i) Upon such discontinuance under the conditions and in compliance
    37  with  the provisions of paragraph one of this subdivision, such deferred
    38  vested benefit shall vest automatically.
    39    (ii) In the case of a participant who is not a New York  city  revised
    40  plan  member,  such  vested benefit shall become payable on the earliest
    41  date on which such discontinued member could have retired for service if
    42  such discontinuance had not occurred or, in the case  of  a  participant
    43  who  is  a  New York city revised plan member, such vested benefit shall
    44  become payable at age sixty-three. Subject to the  provisions  of  para-
    45  graph seven of subdivision e of this section, such deferred vested bene-
    46  fit shall be a retirement allowance consisting of an amount equal to two
    47  percent  of  such discontinued member's final average salary, multiplied
    48  by the number of years of allowable service.
    49    e. Additional member contributions.  1.  In  addition  to  the  member
    50  contributions  required by section six hundred thirteen of this article,
    51  each participant  in  the  twenty-five  year  retirement  program  shall
    52  contribute  to  the  retirement  system  of  which he or she is a member
    53  (subject to the applicable provisions of subdivision d  of  section  six
    54  hundred  thirteen  of  this article) an additional six percent of his or
    55  her compensation earned from (i) all allowable service, as a participant
    56  in the twenty-five year retirement program, rendered  on  or  after  the

        A. 7793--A                         15
 
     1  starting  date  of the twenty-five year retirement program, and (ii) all
     2  allowable service after such person ceases  to  be  a  participant,  but
     3  before  he  or she again becomes a participant pursuant to paragraph six
     4  of  subdivision b of this section. The additional contributions required
     5  by this section shall be in  lieu  of  additional  member  contributions
     6  required  by subdivision d of section six hundred four-c of this chapter
     7  as added by chapter ninety-six of the laws of nineteen  hundred  ninety-
     8  five,  and  no  member  making additional contributions pursuant to this
     9  section shall be required to make contributions pursuant to such  subdi-
    10  vision d of section six hundred four-c of this chapter.
    11    2.  A  participant  in  the  twenty-five year retirement program shall
    12  contribute additional member contributions until the later  of  (i)  the
    13  first  anniversary  of the starting date of the twenty-five year retire-
    14  ment program, or (ii) the date on which he or she completes thirty years
    15  of allowable service as a fire protection inspector member.
    16    3. Commencing with the first full payroll  period  after  each  person
    17  becomes  a participant in the twenty-five year retirement program, addi-
    18  tional member contributions at the rate specified in  paragraph  one  of
    19  this subdivision shall be deducted (subject to the applicable provisions
    20  of  subdivision  d of section six hundred thirteen of this article) from
    21  the compensation of such participant on each and every payroll  of  such
    22  participant  for  each  and  every payroll period for which he or she is
    23  such a participant.
    24    4. (i) Each participant in the  twenty-five  year  retirement  program
    25  shall  be charged with a contribution deficiency consisting of the total
    26  amounts of additional member contributions such person  is  required  to
    27  make  pursuant  to  paragraphs one and two of this subdivision which are
    28  not deducted from his or her compensation pursuant to paragraph three of
    29  this subdivision, if any, together  with  interest  thereon,  compounded
    30  annually,  and  computed  in  accordance with the provisions of subpara-
    31  graphs (ii) and (iii) of this paragraph.
    32    (ii)(A) The interest required to be paid on each such amount specified
    33  in subparagraph (i) of this paragraph shall accrue from the end  of  the
    34  payroll  period  for  which  such  amount  would have been deducted from
    35  compensation if he or she had been a participant  at  the  beginning  of
    36  that  payroll  period  and  such  deduction  had  been required for such
    37  payroll period, until such amount is paid to the retirement system.
    38    (B) The rate of interest to be applied to each such amount during  the
    39  period  for  which interest accrues on that amount shall be equal to the
    40  rate or rates of interest required by law to be used  during  that  same
    41  period  to  credit  interest on the accumulated deductions of retirement
    42  system members.
    43    (iii) Except as otherwise provided in paragraph five of this  subdivi-
    44  sion,  no interest shall be due on any unpaid additional member contrib-
    45  utions which are not attributable to a period prior to  the  first  full
    46  payroll period referred to in paragraph three of this subdivision.
    47    5.  (i)  Should any person who, pursuant to subparagraph (ii) of para-
    48  graph ten of this subdivision, has received a refund of his or her addi-
    49  tional member contribution including any interest paid on such  contrib-
    50  utions,  again  become  a participant in the twenty-five year retirement
    51  program pursuant to paragraph six of subdivision b of this  section,  an
    52  appropriate  amount shall be included in such participant's contribution
    53  deficiency (including interest thereon as calculated pursuant to subpar-
    54  agraph (ii) of this paragraph) for any allowable service for which  such
    55  person  received  a  refund  of  such  additional  member  contributions
    56  (including any amount of an unpaid loan  balance  deemed  to  have  been

        A. 7793--A                         16
 
     1  returned  to  such  person pursuant to paragraph twelve of this subdivi-
     2  sion), as if such additional member contributions never had been paid.
     3    (ii)  (A)  Interest on a participant's additional member contributions
     4  included in  such  participant's  contribution  deficiency  pursuant  to
     5  subparagraph  (i) of this paragraph shall be calculated as if such addi-
     6  tional member contributions had never been paid by such participant, and
     7  such interest shall accrue from the end of the payroll period  to  which
     8  an amount of such additional member contributions is attributable, until
     9  such amount is paid to the retirement system.
    10    (B)  The rate of interest to be applied to each such amount during the
    11  period for which interest accrues on that amount shall be  five  percent
    12  per annum, compounded annually.
    13    6.   Where a participant who is otherwise eligible for service retire-
    14  ment pursuant to subdivision c of this section did  not,  prior  to  the
    15  effective  date  of  retirement, pay the entire amount of a contribution
    16  deficiency chargeable to him or her pursuant to paragraphs four and five
    17  of this subdivision, or repay the entire amount of a loan of his or  her
    18  additional  member  contributions  pursuant  to paragraph eleven of this
    19  subdivision (including accrued interest on such loan), that participant,
    20  nevertheless, shall be eligible to retire pursuant to subdivision  c  of
    21  this section, provided, however, that such participant's service retire-
    22  ment  benefit calculated pursuant to paragraph two of such subdivision c
    23  shall be reduced by a life annuity (calculated in  accordance  with  the
    24  method  set  forth in subdivision i of section six hundred thirteen-b of
    25  this article) which is actuarially equivalent to:
    26    (i) the amount of any unpaid  contribution  deficiency  chargeable  to
    27  such  member  pursuant  to paragraphs four and five of this subdivision;
    28  plus
    29    (ii) the amount of any unpaid balance of a loan of his  or  her  addi-
    30  tional  member contributions pursuant to paragraph eleven of this subdi-
    31  vision (including accrued interest on such loan).
    32    7. Where a participant who is otherwise eligible for a vested right to
    33  a deferred benefit pursuant to subdivision d of this  section  did  not,
    34  prior to the date of discontinuance of service, pay the entire amount of
    35  a  contribution  deficiency  chargeable  to him or her pursuant to para-
    36  graphs four and five of this subdivision, or repay the entire amount  of
    37  a  loan  of his or her additional member contributions pursuant to para-
    38  graph eleven of this subdivision (including  accrued  interest  on  such
    39  loan),  that  participant,  nevertheless, shall have a vested right to a
    40  deferred benefit pursuant to subdivision d  of  this  section  provided,
    41  however,  that  the deferred vested benefit calculated pursuant to para-
    42  graph three of subdivision d shall be reduced by a life annuity  (calcu-
    43  lated  in  accordance  with  the  method  set  forth in subdivision i of
    44  section six hundred thirteen-b of this  article)  which  is  actuarially
    45  equivalent to:
    46    (i)  the  amount  of any unpaid contribution chargeable to such member
    47  pursuant to paragraphs four and five of this subdivision; plus
    48    (ii) the amount of any unpaid balance of a loan of his  or  her  addi-
    49  tional  member contributions pursuant to paragraph eleven of this subdi-
    50  vision (including accrued interest on such a loan).
    51    8. The head of a retirement system which includes participants in  the
    52  twenty-five  year  retirement  program in its membership may, consistent
    53  with the provisions of this subdivision, promulgate regulations for  the
    54  payment of such additional member contributions, and any interest there-
    55  on, by such participants (including the deduction of such contributions,
    56  and any interest thereon, from the participant's compensation).

        A. 7793--A                         17
 
     1    9.  Subject  to  the  provisions  of  paragraphs six and seven of this
     2  subdivision, where a participant has not paid in full  any  contribution
     3  deficiency chargeable to him or her pursuant to paragraphs four and five
     4  of  this  subdivision,  and  a  benefit,  other  than a refund of member
     5  contributions  pursuant  to section six hundred thirteen of this article
     6  or a refund of additional member contributions pursuant to  subparagraph
     7  (ii)  of  paragraph  ten of this subdivision, becomes payable under this
     8  article to the participant or to his or her  designated  beneficiary  or
     9  estate,  the  actuarial  equivalent  of  any such unpaid amount shall be
    10  deducted from the benefit otherwise payable.
    11    10. (i) Such additional member contributions (and any interest  there-
    12  on)  shall  be  paid  into the contingent reserve fund of the retirement
    13  system of which the participant is  a  member  and  shall  not  for  any
    14  purpose  be  deemed  to  be member contributions or accumulated contrib-
    15  utions of a member under section six hundred thirteen of this article or
    16  otherwise while he or she is  a  participant  in  the  twenty-five  year
    17  retirement program or otherwise.
    18    (ii)  Should  a participant in the twenty-five year retirement program
    19  who has rendered less than fifteen years of credited  service  cease  to
    20  hold  a  position  as  a fire protection inspector member for any reason
    21  whatsoever, his or her accumulated additional member contributions  made
    22  pursuant to this subdivision (together with any interest thereon paid to
    23  the retirement system) may be withdrawn by him or her pursuant to proce-
    24  dures promulgated in regulations of the board of trustees of the retire-
    25  ment  system, together with interest thereon at the rate of five percent
    26  per annum, compounded annually.
    27    (iii) Notwithstanding any other provision of law to the contrary,  (A)
    28  no  person shall be permitted to withdraw from the retirement system any
    29  additional member contributions paid pursuant to this subdivision or any
    30  interest paid thereon, except pursuant to and  in  accordance  with  the
    31  preceding  subparagraphs  of this paragraph; and (B) no person, while he
    32  or she is a participant in  the  twenty-five  year  retirement  program,
    33  shall  be permitted to withdraw any such additional member contributions
    34  or any interest paid thereon pursuant to any of the  preceding  subpara-
    35  graphs of this paragraph or otherwise.
    36    11.  A participant in the twenty-five year retirement program shall be
    37  permitted to borrow from his  or  her  additional  member  contributions
    38  (including  any  interest  paid thereon) which are credited to the addi-
    39  tional contributions account established for  such  participant  in  the
    40  contingent  reserve  fund  of  the retirement system. The borrowing from
    41  such additional member contributions pursuant to this paragraph shall be
    42  governed by the rights, privileges, obligations and procedures set forth
    43  in section six hundred thirteen-b  of  this  article  which  govern  the
    44  borrowing  of  member contributions made pursuant to section six hundred
    45  thirteen of this article. The board of trustees of the retirement system
    46  may,  consistent  with  the  provisions  of  this  subdivision  and  the
    47  provisions  of  section  six  hundred thirteen-b of this article as made
    48  applicable to this subdivision,  promulgate  regulations  governing  the
    49  borrowing of such additional member contributions.
    50    12.  Whenever  a  person has an unpaid balance of a loan or his or her
    51  additional member contributions pursuant to  paragraph  eleven  of  this
    52  subdivision at the time he or she becomes entitled to a refund of his or
    53  her  additional  member  contributions  pursuant to subparagraph (ii) of
    54  paragraph ten of this  subdivision,  the  amount  of  such  unpaid  loan
    55  balance  (including  accrued  interest)  shall  be  deemed  to have been
    56  returned to such member, and the refund of such additional contributions

        A. 7793--A                         18
 
     1  shall be the net amount of such  contribution,  together  with  interest
     2  thereon in accordance with the provisions of such subparagraph (ii).
     3    § 6. Subdivision d of section 613 of the retirement and social securi-
     4  ty law is amended by adding a new paragraph 12 to read as follows:
     5    12.  (i)  The city of New York shall, in the case of a fire protection
     6  inspector member (as defined  in  paragraph  one  of  subdivision  a  of
     7  section  six hundred four-j of this article) who is a participant in the
     8  twenty-five year retirement program (as defined  in  paragraph  four  of
     9  subdivision  a  of  such section six hundred four-j), pick up and pay to
    10  the retirement system of which such participant is a  member  all  addi-
    11  tional  member  contributions  which  otherwise  would be required to be
    12  deducted from such member's compensation pursuant to paragraphs one  and
    13  two  of  subdivision e of such section six hundred four-j (not including
    14  any additional member contributions due for  any  period  prior  to  the
    15  first  full payroll period referred to in paragraph three of such subdi-
    16  vision e), and shall effect such pick up in each and  every  payroll  of
    17  such participant for each and every payroll period with respect to which
    18  such paragraph three would otherwise require such deductions.
    19    (ii)  An amount equal to the amount of additional contributions picked
    20  up pursuant to this paragraph shall be deducted by  such  employer  from
    21  the  compensation  of  such member (as such compensation would be in the
    22  absence of a pick up program applicable to him or her) and shall not  be
    23  paid to such member.
    24    (iii)  The  additional member contributions picked up pursuant to this
    25  paragraph for any such member shall be paid by such employer in lieu  of
    26  an equal amount of additional member contributions otherwise required to
    27  be  paid by such member under the applicable provisions of subdivision e
    28  of section six hundred four-j of this article, and shall be deemed to be
    29  and treated as employer contributions pursuant to section 414(h) of  the
    30  Internal Revenue Code.
    31    (iv)  For  the  purpose  of  determining the retirement system rights,
    32  benefits and privileges of any member whose additional  member  contrib-
    33  utions  are  picked  up pursuant to this paragraph, such picked up addi-
    34  tional member contributions shall be deemed to be and treated as part of
    35  such member's  additional  member  contributions  under  the  applicable
    36  provisions  of subdivision e of section six hundred four-j of this arti-
    37  cle.
    38    (v) With the exception of federal income tax treatment, the additional
    39  member contributions picked up pursuant  to  subparagraph  (i)  of  this
    40  paragraph shall for all other purposes, including computation of retire-
    41  ment  benefits  and  contributions by employers and employees, be deemed
    42  employee  salary.  Nothing  contained  in  this  subdivision  shall   be
    43  construed  as superseding the provisions of section four hundred thirty-
    44  one of this chapter, or any similar provision of law  which  limits  the
    45  salary  base  for  computing  retirement  benefits  payable  by a public
    46  retirement system.
    47    § 7. Section 13-125.2 of the administrative code of the  city  of  New
    48  York is amended by adding a new subdivision a-9 to read as follows:
    49    a-9. Notwithstanding any other provision of law to the contrary, on or
    50  after  the  starting date for pick up, the employer responsible for pick
    51  up shall, in the case of a fire protection inspector member (as  defined
    52  in  paragraph  two of subdivision a of section four hundred forty-five-j
    53  of the retirement and social security law) who is a participant  in  the
    54  twenty-five  year  improved  benefit  retirement  program (as defined in
    55  paragraph three of such subdivision a), pick up and  pay  to  retirement
    56  system  all  additional  member  contributions  which otherwise would be

        A. 7793--A                         19
 
     1  required to be deducted from  such  member's  compensation  pursuant  to
     2  subdivision  d  of  such  section  four  hundred forty-five-j, and shall
     3  effect such pick up on each and every payroll of  such  participant  for
     4  each  and  every payroll period with respect to which such subdivision d
     5  would otherwise require such deductions.
     6    § 8. Subparagraph (ii) of paragraph 1  of  subdivision  c  of  section
     7  13-125.2  of the administrative code of the city of New York, as amended
     8  by chapter 682 of the laws of 2003, is amended to read as follows:
     9    (ii) the determination of the amount of such member's Tier I  or  Tier
    10  II  nonuniformed-force  member contributions eligible for pick up by the
    11  employer or additional member contributions required  to  be  picked  up
    12  pursuant  to  subdivision a-one, subdivision a-two, subdivision a-three,
    13  subdivision a-four, subdivision a-five, subdivision  a-six,  subdivision
    14  a-seven [or], subdivision a-eight or subdivision a-nine of this section;
    15  and
    16    §  9.  Subdivision d of section 13-125.2 of the administrative code of
    17  the city of New York is amended by adding a new paragraph 2-h to read as
    18  follows:
    19    (2-h) For the purpose of determining  the  retirement  system  rights,
    20  benefits  and privileges of any member who is a participant in the twen-
    21  ty-five year retirement program (as defined in paragraph two of subdivi-
    22  sion a of section 13-157.5  of  this  chapter),  the  additional  member
    23  contributions  of  such  participant  picked  up pursuant to subdivision
    24  a-nine of this section shall be deemed to be and treated as  a  part  of
    25  such  member's  additional  contributions  under  subdivision  e of such
    26  section 13-157.5.
    27    § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis-
    28  trative code of the city of New York, as amended by chapter 682  of  the
    29  laws of 2003, is amended to read as follows:
    30    (3)  Interest  on  contributions  picked  up for any Tier I or Tier II
    31  non-uniformed-force member pursuant to this section  (other  than  addi-
    32  tional  member  contributions  picked  up pursuant to subdivision a-one,
    33  subdivision a-two, subdivision a-three, subdivision a-four,  subdivision
    34  a-five, subdivision a-six, subdivision a-seven [or], subdivision a-eight
    35  or  subdivision  a-nine  of  this  section) shall accrue in favor of the
    36  member and be payable to the retirement system at the same rate, for the
    37  same time periods, in the same manner and under the  same  circumstances
    38  as  interest  would  be required to accrue in favor of the member and be
    39  payable to the retirement system on such contributions if they were made
    40  by such member in the absence of a pick up program  applicable  to  such
    41  member under the provisions of this section.
    42    §  11. Subdivision a of section 603 of the retirement and social secu-
    43  rity law, as amended by chapter 18 of the laws of 2012,  is  amended  to
    44  read as follows:
    45    a.  The  service  retirement  benefit specified in section six hundred
    46  four of this article shall be payable to members who have met the  mini-
    47  mum  service  requirements  upon retirement and attainment of age sixty-
    48  two, other than members who are eligible for  early  service  retirement
    49  pursuant to subdivision c of section six hundred four-b of this article,
    50  subdivision c of section six hundred four-c of this article, subdivision
    51  d  of  section  six  hundred  four-d  of  this article, subdivision c of
    52  section six hundred four-e of this article, subdivision c of section six
    53  hundred four-f of this article, subdivision c  of  section  six  hundred
    54  four-g  of  this article, subdivision c of section six hundred four-h of
    55  this article [or], subdivision c of section six hundred four-i  of  this
    56  article,  or subdivision c of section six hundred four-j of this article

        A. 7793--A                         20
 
     1  provided, however, a member of a teachers' retirement system or the  New
     2  York  state  and local employees' retirement system who first joins such
     3  system before January first, two thousand ten  or  a  member  who  is  a
     4  uniformed  court  officer or peace officer employed by the unified court
     5  system who first becomes a member  of  the  New  York  state  and  local
     6  employees' retirement system before April first, two thousand twelve may
     7  retire  without  reduction of his or her retirement benefit upon attain-
     8  ment of at least fifty-five years of age and  completion  of  thirty  or
     9  more years of service, provided, however, that a uniformed court officer
    10  or  peace officer employed by the unified court system who first becomes
    11  a member of the New York state and local employees' retirement system on
    12  or after January first, two thousand ten and retires  without  reduction
    13  of  his or her retirement benefit upon attainment of at least fifty-five
    14  years of age and completion of thirty or more years of service  pursuant
    15  to  this  section  shall  be  required  to make the member contributions
    16  required by subdivision f of section six hundred thirteen of this  arti-
    17  cle  for  all years of credited and creditable service, provided further
    18  that the the preceding provisions of this subdivision shall not apply to
    19  a New York city revised plan member.
    20    § 12. Nothing contained in sections six and eleven of this  act  shall
    21  be  construed to create any contractual right with respect to members to
    22  whom such sections apply. The provisions of such sections  are  intended
    23  to  afford  members  the advantages of certain benefits contained in the
    24  internal revenue code, and  the  effectiveness  and  existence  of  such
    25  sections and benefits they confer are completely contingent thereon.
    26    § 13. This act shall take effect immediately, provided, however that:
    27    (a)  the  amendments to subdivision a of section 603 of the retirement
    28  and social security law made by section eleven of  this  act  shall  not
    29  affect  the expiration of such subdivision and shall be deemed to expire
    30  therewith;
    31    (b) the provisions of section six of this act shall  remain  in  force
    32  and  effect  only  so  long  as,  pursuant to federal law, contributions
    33  picked up under such section are not includable as  gross  income  of  a
    34  member  for federal income tax purposes until distributed or made avail-
    35  able to the member; and
    36    (c) the amendments to section 13-125.2 of the administrative  code  of
    37  the city of New York made by sections seven, eight, nine and ten of this
    38  act  shall  not affect the expiration of such provisions as provided for
    39  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 amend 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.

        A. 7793--A                         21

          For  purposes  of  this  Fiscal  Note,  these members are collectively
        referred to as "Fire Inspectors."
          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
        the 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 in 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  ON  BENEFITS: Currently, Fire Inspectors 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 are very few
        Tier 1 and Tier 2 Fire Inspectors 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 contribution, Addi-
        tional  Member  Contributions equal to 6% of compensation for all allow-
        able 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, then this would increase the Actuarial
        Present Value (APV) of Benefits (APVB) by  approximately  $1.2  million,
        consisting of APV of member contributions of approximately $0.5 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  $1.7

        A. 7793--A                         22

        million offset by a decrease in the APV of future employer  Normal  Cost
        of $1.0 million.
          FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
        ACNY Section 13.638.2(k-2), the new UAAL estimated to  be  $1.7  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, 2015, the remaining
        working lifetime of the Fire Inspectors assumed to join the FPI  25-Year
        Plan in approximately 5 years.
          Based  on  the  actuarial assumptions and methods used in the June 30,
        2015 valuations of NYCERS, the enactment of  this  proposed  legislation
        would  increase  annual employer contributions by approximately $405,000
        per year.
          Regarding the timing of these increased contributions, if  the  Effec-
        tive  Date  of  the  proposed legislation is on or before June 30, 2016,
        then the increase in employer contributions would first be reflected  in
        Fiscal Year 2018.
          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, 2015 (Lag) actuari-
        al  valuation of NYCERS. Under the One Year Lag Methodology (OYLM), this
        was used to determine the Preliminary Year 2017  employer  contributions
        for  members who are eligible for and who could potentially benefit from
        this proposed legislation.
          The census data used for the estimated of additional employer contrib-
        utions presented herein are based on average salaries  of  new  entrants
        utilized  in the Preliminary June 30, 2015 (Lag) actuarial valuations in
        determining the Preliminary Fiscal Year 2017 employer  contributions  of
        NYCERS.
          The  40  Fire  Inspectors  as of June 30, 2015 assumed to join the FPI
        25-Year Plan had an average age of approximately 57, average service  of
        approximately 20 years and an average salary of approximately $56,200.
          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, 2015 (Lag) actuarial
        valuations used to determine the Preliminary Fiscal Year  2017  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 than 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

        A. 7793--A                         23
 
        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.
          STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
        ary  for  the New York City Retirement Systems. I am an Associate 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 Qualifica-
        tion Standards of the American Academy of Actuaries to render the  actu-
        arial opinion contained herein.
          FISCAL  NOTE  IDENTIFICATION: This Fiscal Note 2016-22 dated April 20,
        2016, was prepared by the Chief Actuary for the New York City Employees'
        Retirement System. This estimate is intended for  use  only  during  the
        2016 Legislative Session.
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