New York State Assembly

 
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A07156 Summary:

A07156 Actions:

A07156 Committee Votes:

Committee:GOVERNMENTAL EMPLOYEES   Chair:Pheffer Amato      
DATE:05/16/2023AYE/NAY:12/0  Action: Favorable refer to committee Ways and Means        
Pheffer Amato
Aye
DeStefano
Aye
Aubry
Aye
Reilly
Aye
Colton
Aye
Giglio
Aye
Jean-Pierre
Aye
Tannousis
Aye
Santabarbara
Aye
Eichenstein
Aye
Fall
Excused
Jones
Aye
Burke
Excused
Sillitti
Aye

Committee:WAYS AND MEANS   Chair:Weinstein      
DATE:05/24/2023AYE/NAY:30/2  Action: Favorable refer to committee Rules        
Weinstein
Aye
Ra
Nay
Glick
Aye
Fitzpatrick
Nay
Pretlow
Aye
Hawley
Excused
Colton
Aye
Blankenbush
Aye
Cook
Aye
Norris
Aye
Aubry
Aye
Brabenec
Aye
Benedetto
Aye
Palmesano
Aye
Weprin
Aye
Walsh
Aye
Ramos
Aye
DeStefano
Aye
Braunstein
Aye
Manktelow
Aye
McDonald
Excused
Smullen
Aye
Rozic
Aye
Dinowitz
Aye
Joyner
Aye
Magnarelli
Aye
Zebrowski
Aye
Bronson
Aye
Dilan
Aye
Seawright
Aye
Hyndman
Aye
Walker
Aye
Bichotte Hermel
Excused
Simon
Aye
Cruz
Aye

Committee:RULES   Chair:Pretlow      
DATE:05/30/2023AYE/NAY:28/1  Action: Favorable         
Heastie
Excused
Barclay
Aye
Weinstein
Aye
Hawley
Aye
Pretlow
Aye
Giglio
Aye
Cook
Aye
Blankenbush
Aye
Glick
Aye
Norris
Aye
Aubry
Aye
Ra
Nay
Dinowitz
Aye
Brabenec
Aye
Colton
Aye
Palmesano
Aye
Magnarelli
Aye
Reilly
Aye
Paulin
Aye
Peoples-Stokes
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Zebrowski
Aye
Thiele
Aye
Braunstein
Aye
Dickens
Aye
Davila
Aye
Hyndman
Aye
Rozic
Excused
Bronson
Aye

A07156 Floor Votes:

A07156 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7156
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 11, 2023
                                       ___________
 
        Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
          Committee on Governmental Employees
 
        AN ACT to amend the education law, in  relation  to  providing  for  the
          automatic  enrollment of employees of the city of New York eligible to
          join the New York city board of education retirement system

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Paragraph  (b)  of  subdivision 18 of section 2575 of the
     2  education law, as added by chapter 536 of the laws of 1986,  is  amended
     3  to read as follows:
     4    (b) (1) Notwithstanding the provisions of paragraph (a) of subdivision
     5  one of this section or any provision of the rules and regulations or any
     6  other  provision  of  law  to  the  contrary, membership in the board of
     7  education retirement system shall include any  provisional  employee  in
     8  education service who elects to become a member in the manner prescribed
     9  by  the  applicable  provisions  of  subparagraph two [or], subparagraph
    10  three or subparagraph four of this paragraph.
    11    (2) Any such provisional employee who is not a member of the New  York
    12  city employees' retirement system at the time he or she elects to become
    13  a  member  of  the board of education retirement system may make such an
    14  election of membership by filing with the board of education  retirement
    15  system a duly executed and acknowledged application for membership.
    16    (3) Any such provisional employee who is a member of the New York city
    17  employees'  retirement  system  at the time he or she elects to become a
    18  member of the board of education retirement  system  may  make  such  an
    19  election of membership by filing simultaneously with the board of educa-
    20  tion  retirement system a duly executed and acknowledged application for
    21  membership and a duly executed and acknowledged request that his or  her
    22  membership and service credit in the New York city employees' retirement
    23  system be transferred to the board of education retirement system.
    24    (4)(i)  Beginning July first, two thousand twenty-four, upon the entry
    25  into employment of any employee eligible  to  elect  membership  in  the
    26  retirement  system  pursuant to subparagraphs one, two and three of this
    27  paragraph or any other applicable provision of law,  and  provided  such
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07729-02-3
        A. 7156                             2
 
     1  employee  is  not  a member in the retirement system or any other public
     2  retirement system of the city or state of New York as of such entry date
     3  in covered employment, such employee shall be enrolled in the retirement
     4  system  effective  ninety-one days after the commencement of employment.
     5  Notwithstanding the preceding, if such employee files with  the  retire-
     6  ment  system  an application to opt out of membership within ninety days
     7  after commencement of employment, the retirement  system  shall  refrain
     8  from enrolling such employee unless and until such employee subsequently
     9  files  an  application  for membership with the retirement system, or is
    10  otherwise subsequently mandated to enroll by the rules  and  regulations
    11  of  the  retirement  system  or any applicable law. The employer and the
    12  applicable union for the retirement system shall jointly provide written
    13  notice to the employee informing the employee that he  or  she  has  the
    14  option to opt-out of the automatic enrollment program. Such notice shall
    15  be provided to the employee on three occasions: on or before the thirti-
    16  eth  day,  the  sixtieth  day  and  the ninetieth day prior to automatic
    17  enrollment in the retirement system.  The automatic enrollment of eligi-
    18  ble employees  as  provided  for  in  this  subparagraph  shall  not  be
    19  construed  to modify the right of eligible employees to join the retire-
    20  ment system as of the first date of  covered  employment  by  filing  an
    21  application  for  membership  with  the  retirement system. The employer
    22  shall inform the employee in writing of the right to join the system  as
    23  well  as  the fact that the employee shall be enrolled in the retirement
    24  system on the ninety-first day after commencement of employment,  unless
    25  such employee files with the retirement system an application to opt out
    26  of  membership  prior  to such date. Any eligible employee who elects to
    27  opt out of membership in the retirement system  within  the  ninety  day
    28  period shall retain the right to join such system by subsequently filing
    29  an  application  for  membership  so  long  as  such employee remains in
    30  covered employment.
    31    (ii) Every current employee who is  eligible  for  membership  in  the
    32  retirement  system  on  July first, two thousand twenty-four, and who is
    33  not a member in the retirement system or  any  other  public  retirement
    34  system  of  the  city  or  state  of  New York, shall be enrolled in the
    35  retirement system effective October  first,  two  thousand  twenty-four,
    36  unless  such employee files with the retirement system an application to
    37  opt out of membership before October first,  two  thousand  twenty-four.
    38  Such  automatic  enrollment  in  the  retirement  system  shall  not  be
    39  construed to waive any of  the  eligibility  requirements  for  previous
    40  service credit.
    41    (iii)  The  automatic enrollment of eligible employees as provided for
    42  in this subparagraph shall not be construed to  modify  the  rights  and
    43  obligations of any employee whose participation in the retirement system
    44  is mandated by the rules and regulations of the retirement system or any
    45  applicable law, and such mandated members may not opt out of membership.
    46    (iv)  If  an  employee who is automatically enrolled in the retirement
    47  system pursuant to the provisions of this paragraph is  a  member  of  a
    48  union,  the  retirement system shall provide written notice to the union
    49  of the employee's  enrollment  within  thirty  days  of  the  employee's
    50  enrollment in the retirement system.
    51    (v)  The  provisions  of  this  subparagraph  shall apply to full-time
    52  employees and part-time employees. The provisions of  this  subparagraph
    53  shall not apply to provisional employees.
    54    §  2. Paragraph (f) of subdivision 18 of section 2575 of the education
    55  law, as added by chapter 749 of the laws of 1992, is amended to read  as
    56  follows:
        A. 7156                             3
 
     1    (f) Notwithstanding the provisions of paragraph (a) of subdivision one
     2  of  this  section  or  any provision of the rules and regulations or any
     3  other provision of law to the  contrary,  membership  in  the  board  of
     4  education retirement system shall include any person employed by the New
     5  York  city  police  department in the title of school crossing guard who
     6  becomes a member in the manner prescribed by the provisions of  subdivi-
     7  sion g of section 13-638.4 of the administrative code of the city of New
     8  York  or by the provisions of subparagraph four of paragraph (b) of this
     9  subdivision.
    10    § 3. This act shall take effect July 1, 2024.   Effective  immediately
    11  the  addition,  amendment and/or repeal of any rule or regulation neces-
    12  sary for the implementation of  this  act  on  its  effective  date  are
    13  authorized to be made and completed on or before such date.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY OF BILL: This proposed legislation would amend Section 2575 of
        the  Education  Law  to  require  certain new and existing New York City
        Board of Education Retirement System (BERS) eligible employees, who  are
        non-provisional  and  who are not otherwise already a member in a public
        retirement system within the State, to be enrolled into BERS  membership
        unless the employees timely opt out of such membership.
          Under  current law, these employees have the option of joining BERS by
        filing an application for membership at any time during employment  with
        a BERS participating employer, but enrollment is not mandated.
          The  proposed  legislation would require BERS to enroll new non-provi-
        sional and non-permanent eligible employees (e.g.,  non-competitive  and
        exempt class titles) into BERS membership, within 90 days of employment,
        unless the employee files an application with BERS to opt out of member-
        ship  within the 90-day period. An existing non-provisional and non-per-
        manent eligible employee who is  not  already  a  BERS  member  will  be
        enrolled as a BERS member on October 1, 2024, unless such employee files
        an application with BERS to opt out of membership by September 30, 2024.
          A BERS eligible employee who timely opts out of BERS automatic enroll-
        ment  may  still  join BERS at any time during employment with a partic-
        ipating employer. The proposed  legislation  would  have  no  effect  on
        employees  who are, under existing provisions of law, required to become
        BERS members.
          Effective Date: July 1, 2024.
          FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: If enacted into law,
        the ultimate employer cost for this proposed legislation would be  based
        on  the  number,  ages,  years of service, and salary of those employees
        that would have otherwise not elected to become members of BERS.
          Based on the data and these statistics herein, the Office of the Actu-
        ary (OA) has estimated the following costs for this legislation:
          * The additional annual employer contribution will be $17.4 million if
        no prior years of service are purchased by these individuals.
          * The additional annual employer contribution will be $22.6 million if
        all years of prior service eligible for buyback are purchased  by  these
        individuals.
          Finally, for purposes of determining the portion of the annual employ-
        er  contribution  attributable  to the buyback of prior service, we have
        assumed an amortization period of 15 years (14 payments under  the  One-
        Year Lag Methodology used in the actuarial valuation).
          CENSUS  DATA:  The estimates presented herein are based on information
        provided by BERS for 23,977 individuals who are non-provisional and  not
        currently  members  of BERS, but could voluntarily elect to participate.
        This group consists of 22,255 part-time and 1,722  full-time  employees,
        A. 7156                             4
 
        is  72%  female,  and  has  an average age of 36.2 years, average annual
        salary of approximately $34,800, and average service since date of  hire
        of 3.5 years.
          The  OA was advised that employees in Payroll Codes 056, 744, 745, and
        746 work part-time and earned 0.67 years, 0.28 years,  0.78  years,  and
        0.68  years  of  service per year on average, respectively. Employees in
        Payroll Codes 740 and 742 are assumed to generally be full-time  employ-
        ees.
          The estimate above assumes all eligible employees who are not current-
        ly  BERS members join immediately, of which approximately 50% would have
        eventually joined BERS, and therefore this bill  would  only  accelerate
        membership for certain individuals.
          ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
        been  calculated  based on the actuarial assumptions and methods used to
        determine the Preliminary Fiscal Year  2024  employer  contributions  of
        BERS.
          For  the  purposes  of  this Fiscal Note, it is assumed that since the
        proposed legislation requires  BERS  to  enroll  all  existing  eligible
        employees (who are not already members and who do not opt out) into BERS
        on  October  1,  2024,  the  increase in employer contributions for BERS
        could be first reflected as early as in Fiscal Year 2026.
          RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
        highly  on the realization of the actuarial assumptions used, demograph-
        ics of the impacted population, and other factors  such  as  investment,
        contribution,  and other risks. If actual experience deviates from actu-
        arial assumptions, the actual costs could differ  from  those  presented
        herein.
          Costs  are also dependent on the actuarial methods used, and therefore
        different actuarial methods could produce different results. Quantifying
        these risks is beyond the scope of this Fiscal Note.
          Not measured in this Fiscal Note are the following:
          * The potential savings to other New York City Retirement Systems  and
        Pension Funds (NYCRS) as a result of these employees becoming members in
        BERS instead of another NYCRS.
          *  The  initial  additional  administrative  costs  to  implement  the
        proposed legislation.
          * The impact of this  proposed  legislation  on  Other  Postemployment
        Benefit costs.
          *  The  cost  of potential Tax-Deferred Annuity plan participation and
        benefits.
          STATEMENT OF ACTUARIAL OPINION: I, Marek  Tyszkiewicz,  am  the  Chief
        Actuary  for,  and  independent of, the New York City Retirement Systems
        and Pension Funds. I am an Associate of the Society of Actuaries  and  a
        Member of the American Academy of Actuaries. I am a member of NYCERS but
        do  not  believe  it impairs my objectivity and I meet the Qualification
        Standards of the American Academy of Actuaries to render  the  actuarial
        opinion  contained  herein.  To  the  best  of my knowledge, the results
        contained  herein  have  been  prepared  in  accordance  with  generally
        accepted  actuarial  principles  and  procedures  and with the Actuarial
        Standards of Practice issued by the Actuarial Standards Board.
          FISCAL NOTE IDENTIFICATION: This Fiscal Note 2023-46 dated May 9, 2023
        was prepared by the Chief Actuary for the New York City Board of  Educa-
        tion  Retirement  System.  This estimate is intended for use only during
        the 2023 Legislative Session.