New York State Assembly

 
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A07693 Summary:

A07693 Actions:

A07693 Committee Votes:

Committee:WAYS AND MEANS   Chair:Weinstein      
DATE:06/04/2024AYE/NAY:35/0  Action: Favorable refer to committee Rules        
Weinstein
Aye
Ra
Aye
Glick
Aye
Fitzpatrick
Aye
Pretlow
Aye
Hawley
Aye
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
Aye
Smullen
Aye
Rozic
Aye
Dinowitz
Aye
Magnarelli
Aye
Zebrowski
Aye
Bronson
Aye
Dilan
Aye
Seawright
Aye
Hyndman
Aye
Walker
Aye
Bichotte Hermel
Aye
Simon
Aye
Cruz
Aye
Fahy
Aye

Committee:RULES   Chair:Pretlow      
DATE:06/04/2024AYE/NAY:28/0  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
Aye
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
Excused
Davila
Excused
Hyndman
Aye
Rozic
Aye
Bronson
Aye

A07693 Floor Votes:

A07693 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7693--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 6, 2023
                                       ___________
 
        Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
          Committee on Governmental Employees -- recommitted to the Committee on
          Governmental Employees in accordance with Assembly Rule 3, sec.  2  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        AN ACT to amend the retirement and social security law, in  relation  to
          permitting  certain  twenty-five  year  retirement  program dispatcher
          members to file elections not to participate
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 604-e of the retirement and social security law, as
     2  added  by  chapter  576  of the laws of 2000, is amended by adding a new
     3  subdivision f to read as follows:
     4    f. 1.  Notwithstanding  any  provision  of  law  to  the  contrary,  a
     5  dispatcher member who exceeded age thirty upon employment as a dispatch-
     6  er  member and failed to file their election not to participate with the
     7  retirement system within one hundred eighty days of becoming a dispatch-
     8  er member, as required by paragraph  three  of  subdivision  b  of  this
     9  section, may file such an election with the retirement system within one
    10  hundred eighty days of the effective date of this subdivision.
    11    2.  The retirement system shall post, and announce on its homepage the
    12  posting of, the  form  and  corresponding  instructions  for  dispatcher
    13  members  to elect not to participate on its website no later than thirty
    14  days after the effective date of this subdivision.
    15    3. If the retirement system fails to post and announce  the  form  and
    16  corresponding instructions no later than thirty days after the effective
    17  date  of this subdivision, as prescribed by paragraph two of this subdi-
    18  vision, the period for a dispatcher member to elect not  to  participate
    19  prescribed  by  paragraph  one  of this subdivision shall be extended by
    20  sixty  days  for  each  month  or  part  thereof  that  such  form   and
    21  instructions are not posted to the retirement system's website.
    22    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11083-05-4
        A. 7693--A                          2
 
        SUMMARY:  This proposed legislation would allow New York City Employees'
        Retirement System (NYCERS) Tier 4 and Tier 6 members who are members  of
        a  Dispatcher  25-Year  Retirement  Plan and were older than age 30 when
        they joined the plan, another 180-day period to opt out of the plan.
 
                 EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                        by Fiscal Year for the first 25 years ($)
                            Year      NYCERS
                            2025        516,000
                            2026        521,000
                            2027        524,000
                            2028        528,000
                            2029        530,000
                            2030        531,000
                            2031        532,000
                            2032        530,000
                            2033        527,000
                            2034        523,000
                            2035        518,000
                            2036        512,000
                            2037        505,000
                            2038        172,000
                            2039        164,000
                            2040        154,000
                            2041        145,000
                            2042        135,000
                            2043        126,000
                            2044        116,000
                            2045        106,000
                            2046        96,000
                            2047        88,000
                            2048        78,000
                            2049        69,000
           Employer Contribution impact beyond Fiscal Year 2049 is not shown.
 
          The entire increase in employer contributions will be allocated to New
        York City.
 
                  EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                           as of June 30, 2023 ($ in Millions)
                     Present Value (PV)                 NYCERS
                     PV of Benefits:                    2.8
                     PV of Employee Contributions:      (1.9)
                     PV of Employer Contributions:      4.7
                     Unfunded Accrued Liabilities:      2.6
 
        PV of Benefits includes the assumed refund of AMC balances.
 
                       AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                        NYCERS
                     Number of Payments:                13
                     Fiscal Year of Last Payment:       2037
                     Amortization Payment:              325,000
        A. 7693--A                          3
 
          Unfunded  Accrued Liability (UAL) increases for actives were amortized
        over the expected remaining working lifetime of those  impacted  by  the
        benefit changes using level dollar payments.
          CENSUS  DATA:  The estimates presented herein are based on preliminary
        census data collected as of June 30,  2023.  The  census  data  for  the
        impacted population is summarized below.
 
                                                        NYCERS
                     Active Members
                     - Number Count:                    54
                     - Average Age:                     46.3
                     - Average Service:                 13.1
                     - Average Salary:                  79,400
 
          BACKGROUND:  Currently, Tier 4 or Tier 6 NYCERS members who exceed age
        30 upon being mandated into a Dispatcher 25-Year Plan, have  the  option
        to  irrevocably opt out of the plan within 180 days. Members who opt out
        of the plan are generally placed into one of the Tier 4 or Tier 6 under-
        lying plans.
          Under the proposed legislation, such members who failed to opt out  of
        the  Dispatcher 25-Year Plan in the original 180 days would have another
        180-day period in which to opt out of the Plan.
          For the purposes of this Fiscal Note, it is assumed that  members  who
        opt  out  of  the Dispatcher 25-Year Plan under the proposed legislation
        would be entitled to an immediate refund  of  excess  Additional  Member
        Contributions (AMC), with interest.
          ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
        calculated based on the actuarial assumptions and methods to be used for
        the Preliminary Fiscal Year 2025 employer contributions of the  impacted
        retirement systems.
          To  determine the impact of the elective nature of the proposed legis-
        lation, a subgroup of members was developed based on who is  assumed  to
        benefit actuarially by comparing the net present value of future employ-
        er  costs  of  each  member’s benefit under their current plan and under
        their applicable underlying plan.
          RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
        highly  on  the  actuarial  assumptions, methods, and models used, demo-
        graphics of the impacted population, and other factors such  as  invest-
        ment,  contribution, and other risks. If actual experience deviates from
        actuarial  assumptions,  the  actual  costs  could  differ  from   those
        presented  herein.  Quantifying  these risks is beyond the scope of this
        Fiscal Note.
          This Fiscal Note is intended to measure  pension-related  impacts  and
        does  not  include other potential costs (e.g., administrative and Other
        Postemployment Benefits).
          STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
        sky are members of the Society of Actuaries and the American Academy  of
        Actuaries.  We  are  members of NYCERS but do not believe it impairs our
        objectivity and we meet the  Qualification  Standards  of  the  American
        Academy  of  Actuaries to render the actuarial opinion contained herein.
        To the best of our knowledge, the results  contained  herein  have  been
        prepared  in accordance with generally accepted actuarial principles and
        procedures and with the Actuarial Standards of Practice  issued  by  the
        Actuarial Standards Board.
          FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-09 dated January 25,
        2024  was prepared by the Chief Actuary for the New York City Retirement
        A. 7693--A                          4
 
        Systems and Pension Funds. This estimate is intended for use only during
        the 2024 Legislative Session.