Relates to promotions of lieutenants; grants a lieutenant who has served for a period of fifteen years the same rights in respect to the police pension fund as a lieutenant detailed to act as lieutenant commander detective squad, or lieutenant special assignment.
STATE OF NEW YORK
________________________________________________________________________
9659--A
IN ASSEMBLY
March 24, 2016
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the administrative code of the city of New York, in
relation to promotions of lieutenants
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 14-114 of the administrative code of the city of
2 New York is amended by adding a new subdivision d to read as follows:
3 d. When a lieutenant shall have served in the rank of lieutenant for a
4 period of fifteen years, he or she shall have the same rights in respect
5 to the police pension fund as a lieutenant detailed to act as lieutenant
6 commander detective squad or lieutenant special assignment.
7 § 2. This act shall take effect immediately.
FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
FISCAL NOTE: PROVISIONS OF PROPOSED LEGISLATION: This proposed legis-
lation would amend Administrative Code of the City of New York (ACNY)
Section 14-114 to allow for a Lieutenant of the New York City Police
Department, who has been a lieutenant for at least 15 years, to have the
same rights in respect to the New York City Police Pension Fund (POLICE)
as a Lieutenant detailed to act as lieutenant commander detective squad
or lieutenant special assignment.
FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: A member who would bene-
fit under this proposed legislation, if enacted, would receive an
increase in their annual pension of approximately $6,000 per year. Based
on this increase and an estimate of the number of members that are
expected to be impacted by this change, it is estimated that if this
proposed legislation is enacted, the annual increase in POLICE pensions
paid will be approximately $65,000 per year.
This would result in an increase in the Actuarial Present Value of
Benefits (APVB) of approximately $900,000 in the first year based on the
actuarial assumptions and methods in effect for the Preliminary June 30,
2015 (Lag) actuarial valuation used to determine the Preliminary Fiscal
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13949-04-6
A. 9659--A 2
Year 2017 employer contributions of POLICE. These results are expected
to increase at the same rate as increases in salary in future years.
FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: Due to data limita-
tions the number of Lieutenants that will retire with 15 or more years
in rank cannot be known in advance with credibility. Therefore,
increases in the APVB due to this legislation would be treated as actu-
arial losses as the affected members retire. These actuarial losses
would be amortized over a 15-year period (14 payments under the One-Year
Lag Methodology) using level dollar payments. Based on the assumption
that the first group of retirees impacted by this legislation would
occur during Fiscal Year 2017 and the estimated increase in APVB of
$900,000, the estimated increase in employer contributions would be
approximately $110,000 beginning in Fiscal Year 2019. Future years costs
in addition to the aforementioned cost would depend on the number of
retirees that benefit under the legislation.
CENSUS DATA: These estimates are based on data provided by the NYPD
Lieutenants Benevolent Association which was not audited but was checked
for reasonableness.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Pension Funds and Retire-
ment Systems. I am 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 Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2016-34, dated June 10,
2016 was prepared by the Chief Actuary for the New York City Police
Pension Fund. This estimate is intended for use only during the 2016
Legislative Session.
