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.
STATE OF NEW YORK
________________________________________________________________________
7872
IN SENATE
May 19, 2016
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Cities
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.
16 3. "Starting date of the twenty-five year retirement program" shall
17 mean the date of enactment of this section.
18 4. "Participant in the twenty-five year retirement program" shall mean
19 any fire protection inspector member who, under the applicable
20 provisions of subdivision b of this section, is entitled to the rights,
21 benefits and privileges and is subject to the obligations of the twen-
22 ty-five year retirement program as applicable to him or her.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11281-03-6
S. 7872 2
1 5. "Discontinued member" shall mean a participant in the twenty-five
2 year retirement program who, while he or she was a fire protection
3 inspector member, discontinued service as such a member and has a right
4 to a deferred vested benefit under the provisions of subdivision d of
5 this section.
6 6. "Allowable service as a fire protection inspector member" shall
7 mean (i) all service while employed by the city of New York or by the
8 New York city fire department in a title whose duties are those of a
9 fire protection inspector or associate fire protection inspector, and
10 (ii) with respect to an individual who was employed upon the effective
11 date of this section or thereafter in a title whose duties are those of
12 a fire protection inspector or associate fire protection inspector, all
13 such service subsequent thereto in a title whose duties require the
14 supervision of employees whose duties are those of a fire protection
15 inspector or associate fire protection inspector in the New York city
16 fire department.
17 b. Participation in the twenty-five year retirement program. 1.
18 Subject to the provisions of paragraphs five and six of this subdivi-
19 sion, any person who is a fire protection inspector member on the start-
20 ing date of the twenty-five year retirement program may elect to become
21 a participant in the twenty-five year retirement program by filing,
22 within one hundred eighty days after the starting date of the twenty-
23 five year retirement program, a duly executed application for such
24 participation with the retirement system of which such person is a
25 member, provided he or she is such a fire protection inspector member on
26 the date such application is filed.
27 2. Subject to the provisions of paragraphs five and six of this subdi-
28 vision, any person who becomes a fire protection inspector member after
29 the starting date of the twenty-five year retirement program may elect
30 to become a participant in the twenty-five year retirement program by
31 filing, within one hundred eighty days after becoming such a fire
32 protection inspector member, a duly executed application for such
33 participation with the retirement system of which such person is a
34 member, provided he or she is such a fire protection inspector member on
35 the date such application is filed.
36 3. Any election to be a participant in the twenty-five year retirement
37 program shall be irrevocable.
38 4. Where any participant in the twenty-five year retirement program
39 shall cease to be employed as a fire protection inspector member, he or
40 she shall cease to be such a participant and, during any period in which
41 such person is not so employed, he or she shall not be a participant in
42 the twenty-five year retirement program and shall not be eligible for
43 the benefits of subdivision c of this section.
44 5. Where any participant in the twenty-five year retirement program
45 terminates service as a fire protection inspector member and returns to
46 such service as a fire protection inspector at a later date, he or she
47 shall again become such a participant on that date.
48 6. Notwithstanding any other provision of law to the contrary, any
49 person who is eligible to become a participant in the twenty-five year
50 retirement program pursuant to paragraph one or two of this subdivision
51 for the full one hundred eighty day period provided for in such applica-
52 ble paragraph and who fails to timely file a duly executed application
53 for such participation with the retirement system, shall not thereafter
54 be eligible to become a participant in such program.
55 c. Service retirement benefits. 1. A participant in the twenty-five
56 year retirement program:
S. 7872 3
1 (i) who has completed twenty-five or more years of allowable service
2 as a fire protection inspector member; and
3 (ii) who files with the retirement system an application for service
4 retirement setting forth at what time, not less than thirty days subse-
5 quent to the execution and filing thereof, he or she desires to be
6 retired; and
7 (iii) who shall be a participant in the twenty-five year retirement
8 program at the time so specified for his or her retirement; shall be
9 retired pursuant to the provisions of this section affording early
10 service retirement.
11 2. Notwithstanding any other provision of law to the contrary, the
12 early service retirement benefit for a participant in the twenty-five
13 year retirement program who retires pursuant to paragraph one of this
14 subdivision shall be a retirement allowance consisting of:
15 (i) an amount, on account of the required minimum period of service,
16 equal to the sums of (a) an annuity which shall be the actuarial equiv-
17 alent of the accumulated deductions from his or her pay during such
18 period, (b) a pension for increased-take-home-pay which shall be the
19 actuarial equivalent of the reserve for increased-take-home-pay to which
20 he or she may be entitled for such period, and (c) a pension which, when
21 added to such annuity and such pension for increased-take-home-pay,
22 produces a retirement allowance equal to fifty-five percent of the sala-
23 ry earned or earnable in the year prior to his or her retirement; plus
24 (ii) an amount for each additional year of allowable service as a fire
25 protection inspector member, or fraction thereof, beyond such required
26 minimum period of service equal to one and seven-tenths percent of the
27 salary earned or earnable in the year prior to his or her retirement for
28 such allowable service during the period from the completion of twenty-
29 five years of allowable service as a fire protection inspector member to
30 the date of retirement.
31 d. Vesting. 1. A participant in the twenty-five year retirement
32 program who: (i) discontinues service as a fire protection inspector
33 member, other than by death or retirement; and (ii) prior to such
34 discontinuance, completed five but less than twenty-five years of allow-
35 able city service; and (iii) does not withdraw in whole or in part his
36 or her accumulated member contributions pursuant to section 13-141 of
37 this chapter, shall be entitled to receive a deferred vested benefit as
38 provided in this subdivision.
39 2. (i) Upon such discontinuance under the conditions and in compliance
40 with the provisions of paragraph one of this subdivision, such deferred
41 vested benefit shall vest automatically.
42 (ii) Such vested benefit shall become payable on the earliest date on
43 which such discontinued member could have retired for service if such
44 discontinuance had not occurred.
45 3. Such deferred vested benefit shall be a retirement allowance
46 consisting of an amount equal to two and two-tenths percent of such
47 discontinued member's salary earned or earnable in the year prior to his
48 or her discontinuance, multiplied by the number of years of allowable
49 service as a fire protection member.
50 e. Member contributions. All fire protection inspector members of the
51 twenty-five year retirement program shall be required to make member
52 contributions and additional member contributions in accordance with and
53 subject to the same rights, privileges, obligations and procedures as
54 govern the member contributions and additional member contributions
55 required by subdivision d of section four hundred forty-five-j of the
56 retirement and social security law.
S. 7872 4
1 For the purpose of applying under this subdivision, such subdivision d
2 of section four hundred forty-five-j of the retirement and social secu-
3 rity law to a fire protection inspector member of the twenty-five year
4 retirement program who is subject to the provisions of this section, and
5 is not subject to the provisions of article eleven of the retirement and
6 social security law, the term "credited service," as used in such subdi-
7 vision, shall be deemed to mean allowable service as a fire protection
8 inspector member.
9 § 2. Subdivision a of section 444 of the retirement and social securi-
10 ty law, as amended by section 141 of subpart B of part C of chapter 62
11 of the laws of 2011, is amended to read as follows:
12 a. Except as provided in subdivision c of section four hundred forty-
13 five-a of this article, subdivision c of section four hundred forty-
14 five-b of this article, subdivision c of section four hundred forty-
15 five-c of this article, subdivision c of section four hundred
16 forty-five-d of this article as added by chapter four hundred seventy-
17 two of the laws of nineteen hundred ninety-five, subdivision c of
18 section four hundred forty-five-e of this article, subdivision c of
19 section four hundred forty-five-f of this article [and], subdivision c
20 of section four hundred forty-five-h of this article and subdivision c
21 of section four hundred forty-five-j, the maximum retirement benefit
22 computed without optional modification provided to a member of a retire-
23 ment system who is subject to the provisions of this article, other than
24 a police officer, a firefighter, an investigator member of the New York
25 city employees' retirement system, a member of the uniformed personnel
26 in institutions under the jurisdiction of the New York city department
27 of correction who receives a performance of duty disability retirement
28 allowance, a member of the uniformed personnel in institutions under the
29 jurisdiction of the department of corrections and community supervision
30 or a security hospital treatment assistant, as those terms are defined
31 in subdivision i of section eighty-nine of this chapter, who receives a
32 performance of duty disability retirement allowance, a member of a
33 teachers' retirement system, New York city employees' retirement system,
34 New York city board of education retirement system or a member of the
35 New York state and local employees' retirement system or a member of the
36 New York city employees' retirement system or New York city board of
37 education retirement system employed as a special officer, parking
38 control specialist, school safety agent, campus peace officer, taxi and
39 limousine inspector or a police communications member and who receives a
40 performance of duty disability pension, from funds other than those
41 based on a member's own or increased-take-home-pay contributions, shall,
42 before any reduction for early retirement, be sixty per centum of the
43 first fifteen thousand three hundred dollars of final average salary,
44 and fifty per centum of final average salary in excess of fifteen thou-
45 sand three hundred dollars, and forty per centum of final average salary
46 in excess of twenty-seven thousand three hundred dollars, provided,
47 however, that the benefits provided by subdivision c of section four
48 hundred forty-five-d of this article as added by chapter four hundred
49 seventy-two of the laws of nineteen hundred ninety-five based upon the
50 additional member contributions required by subdivision d of such
51 section four hundred forty-five-d shall be subject to the maximum
52 retirement benefit computations set forth in this section. The maximum
53 retirement benefit computed without optional modification payable to a
54 police officer, an investigator member of the New York city employees'
55 retirement system or a firefighter shall equal that payable upon
56 completion of thirty years of service, except that the maximum service
S. 7872 5
1 retirement benefit computed without optional modification shall equal
2 that payable upon completion of thirty-two years of service.
3 § 3. Subdivision a of section 445 of the retirement and social securi-
4 ty law, as amended by chapter 295 of the laws of 2007, is amended to
5 read as follows:
6 a. No member of a retirement system who is subject to the provisions
7 of this article shall retire without regard to age, exclusive of retire-
8 ment for disability, unless he or she is a policeman, an investigator
9 member of the New York city employees' retirement system, fireman,
10 correction officer, a qualifying member as defined in section eighty-
11 nine-t, as added by chapter six hundred fifty-seven of the laws of nine-
12 teen hundred ninety-eight, of this chapter, sanitation man, a special
13 officer (including persons employed by the city of New York in the title
14 urban park ranger or associate urban park ranger), school safety agent,
15 campus peace officer or a taxi and limousine commission inspector member
16 of the New York city employees' retirement system or the New York city
17 board of education retirement system, a dispatcher member of the New
18 York city employees' retirement system, a police communications member
19 of the New York city employees' retirement system, an EMT member of the
20 New York city employees' retirement system, a deputy sheriff member of
21 the New York city employees' retirement system, a fire protection
22 inspector member of the New York city employees' retirement system, a
23 correction officer of the Westchester county correction department as
24 defined in section eighty-nine-e of this chapter or employed in Suffolk
25 county as a peace officer, as defined in section eighty-nine-s, as added
26 by chapter five hundred eighty-eight of the laws of nineteen hundred
27 ninety-seven, of this chapter, employed in Suffolk county as a
28 correction officer, as defined in section eighty-nine-f of this chapter,
29 or employed in Nassau county as a correction officer, uniformed
30 correction division personnel, sheriff, undersheriff or deputy sheriff,
31 as defined in section eighty-nine-g of this chapter, or employed in
32 Nassau county as an ambulance medical technician, an ambulance medical
33 technician/supervisor or a member who performs ambulance medical techni-
34 cian related services, as defined in section eighty-nine-s, as amended
35 by chapter five hundred seventy-eight of the laws of nineteen hundred
36 ninety-eight, of this chapter, or employed in Nassau county as a peace
37 officer, as defined in section eighty-nine-s, as added by chapter five
38 hundred ninety-five of the laws of nineteen hundred ninety-seven, of
39 this chapter, or employed in Albany county as a sheriff, undersheriff,
40 deputy sheriff, correction officer or identification officer, as defined
41 in section eighty-nine-h of this chapter or is employed in St. Lawrence
42 county as a sheriff, undersheriff, deputy sheriff or correction officer,
43 as defined in section eighty-nine-i of this chapter or is employed in
44 Orleans county as a sheriff, undersheriff, deputy sheriff or correction
45 officer, as defined in section eighty-nine-l of this chapter or is
46 employed in Jefferson county as a sheriff, undersheriff, deputy sheriff
47 or correction officer, as defined in section eighty-nine-j of this chap-
48 ter or is employed in Onondaga county as a deputy sheriff-jail division
49 competitively appointed or as a correction officer, as defined in
50 section eighty-nine-k of this chapter or is employed in a county which
51 makes an election under subdivision j of section eighty-nine-p of this
52 chapter as a sheriff, undersheriff, deputy sheriff or correction officer
53 as defined in such section eighty-nine-p or is employed in Broome County
54 as a sheriff, undersheriff, deputy sheriff or correction officer, as
55 defined in section eighty-nine-m of this chapter or is a Monroe county
56 deputy sheriff-court security, or deputy sheriff-jailor as defined in
S. 7872 6
1 section eighty-nine-n, as added by chapter five hundred ninety-seven of
2 the laws of nineteen hundred ninety-one, of this chapter or is employed
3 in Greene county as a sheriff, undersheriff, deputy sheriff or
4 correction officer, as defined in section eighty-nine-o of this chapter
5 or is a traffic officer with the town of Elmira as defined in section
6 eighty-nine-q of this chapter or is employed by Suffolk county as a park
7 police officer, as defined in section eighty-nine-r of this chapter or
8 is a peace officer employed by a county probation department as defined
9 in section eighty-nine-t, as added by chapter six hundred three of the
10 laws of nineteen hundred ninety-eight, of this chapter or is employed in
11 Rockland county as a deputy sheriff-civil as defined in section eighty-
12 nine-v of this chapter as added by chapter four hundred forty-one of the
13 laws of two thousand one, or is employed in Rockland county as a superi-
14 or correction officer as defined in section eighty-nine-v of this chap-
15 ter as added by chapter five hundred fifty-six of the laws of two thou-
16 sand one or is a paramedic employed by the police department in the town
17 of Tonawanda and retires under the provisions of section eighty-nine-v
18 of this chapter, as added by chapter four hundred seventy-two of the
19 laws of two thousand one, or is a county fire marshal, supervising fire
20 marshal, fire marshal, assistant fire marshal, assistant chief fire
21 marshal or chief fire marshal employed by the county of Nassau as
22 defined in section eighty-nine-w of this chapter and is in a plan which
23 permits immediate retirement upon completion of a specified period of
24 service without regard to age. Except as provided in subdivision c of
25 section four hundred forty-five-a of this article, subdivision c of
26 section four hundred forty-five-b of this article, subdivision c of
27 section four hundred forty-five-c of this article, subdivision c of
28 section four hundred forty-five-d of this article, subdivision c of
29 section four hundred forty-five-e of this article, subdivision c of
30 section four hundred forty-five-f of this article [and], subdivision c
31 of section four hundred forty-five-h of this article, and subdivision c
32 of section four hundred forty-five-j of this article, a member in such a
33 plan and such an occupation, other than a policeman or investigator
34 member of the New York city employees' retirement system or a fireman,
35 shall not be permitted to retire prior to the completion of twenty-five
36 years of credited service; provided, however, if such a member in such
37 an occupation is in a plan which permits retirement upon completion of
38 twenty years of service regardless of age, he or she may retire upon
39 completion of twenty years of credited service and prior to the
40 completion of twenty-five years of service, but in such event the bene-
41 fit provided from funds other than those based on such a member's own
42 contributions shall not exceed two per centum of final average salary
43 per each year of credited service.
44 § 4. The retirement and social security law is amended by adding a new
45 section 445-j to read as follows:
46 § 445-j. Optional twenty-five year improved benefit retirement program
47 for fire protection inspector members. a. Definitions. The following
48 words and phrases as used in this section shall have the following mean-
49 ings unless a different meaning is plainly required by the context.
50 1. "Retirement system" shall mean the New York city employees' retire-
51 ment system.
52 2. "Fire protection inspector member" shall mean (i) a member of the
53 retirement system who is subject to the provisions of this article, who
54 is employed by the city of New York or by the New York city fire depart-
55 ment in a title whose duties are those of a fire protection inspector or
56 associate fire protection inspector; and (ii) a member of the retirement
S. 7872 7
1 system who, on the date this act shall take effect or thereafter, was
2 employed by the city of New York or by the New York city fire department
3 in a title whose duties are those of a fire protection inspector or
4 associate fire protection inspector and who, subsequent thereto, became
5 employed by the city of New York or by the New York city fire department
6 in a title whose duties require the supervision of employees whose
7 duties are those of a fire protection inspector or associate fire
8 protection inspector.
9 3. "Twenty-five year improved benefit retirement program" shall mean
10 all the terms and conditions of this section.
11 4. "Starting date of the twenty-five year improved benefit retirement
12 program" shall mean the date of enactment of the act which added this
13 section, as such date is certified pursuant to section forty-one of the
14 legislative law.
15 5. "Participant in the twenty-five year improved benefit retirement
16 program" shall mean any fire protection inspector member who, under the
17 applicable provisions of subdivision b of this section, is entitled to
18 the rights, benefits and privileges and is subject to the obligations of
19 the twenty-five year improved benefit retirement program, as applicable
20 to him or her.
21 6. "Administrative code" shall mean the administrative code of the
22 city of New York.
23 7. "Accumulated deductions" shall mean accumulated deductions as
24 defined in subdivision eleven of section 13-101 of the administrative
25 code.
26 8. "Optional retirement provisions" shall mean the right to retire and
27 receive a retirement allowance under this section upon the completion of
28 twenty-five years of allowable service.
29 9. "Allowable service" for purposes of this section shall mean (1) all
30 service while employed by the city of New York or by the New York city
31 fire department in a title whose duties are those of a fire protection
32 inspector or associate fire protection inspector, and (2) with respect
33 to an individual who was employed upon the effective date of this
34 section or thereafter in a title whose duties are those of a fire
35 protection inspector or associate fire protection inspector, all such
36 service subsequent thereto in a title whose duties require the super-
37 vision of employees whose duties are those of a fire protection inspec-
38 tor or associate fire protection inspector.
39 b. Election of twenty-five year improved benefit retirement program.
40 1. Subject to the provisions of paragraph five and six of this subdivi-
41 sion, any person who is a fire protection inspector member on the start-
42 ing date of the twenty-five year improved benefit retirement program may
43 elect to become a participant in the twenty-five year improved benefit
44 retirement program by filing, within one hundred eighty days after such
45 starting date, a duly executed application for such participation with
46 the retirement system, provided that he or she is such a fire protection
47 inspector member on the date such application is filed.
48 2. Subject to the provision of paragraphs five and six of this subdi-
49 vision, any person who becomes a fire protection inspector member after
50 the starting date of the twenty-five year improved benefit retirement
51 program may elect to become a participant in the twenty-five year
52 improved benefit retirement program by filing, within one hundred eighty
53 days after becoming such a fire protection inspector member, a duly
54 executed application for such participation with the retirement system,
55 provided that he or she is such a fire protection inspector member on
56 the date such application is filed.
S. 7872 8
1 3. Any election to be a participant in the twenty-five year improved
2 benefit retirement program shall be irrevocable.
3 4. Where any participant in the twenty-five year improved benefit
4 retirement program shall cease to hold a position as a fire protection
5 inspector member, he or she shall cease to be such a participant and,
6 during any period in which such a person does not hold such a fire
7 protection inspector position, he or she shall not be a participant in
8 the twenty-five year improved benefit retirement program and shall not
9 be eligible for the benefits of subdivision c of this section.
10 5. Where any participant in the twenty-five year improved benefit
11 retirement program terminates service as a fire protection inspector
12 member and returns to such service as a fire protection inspector member
13 at a later date, he or she shall again become such a participant on that
14 date.
15 6. Notwithstanding any other provision of law to the contrary, any
16 person who is eligible to become a participant in the twenty-five year
17 improved benefit retirement program pursuant to paragraph one or two of
18 this subdivision for the full one hundred eighty day period provided for
19 in such applicable paragraph and who fails to timely file a duly
20 executed application for such participation with the retirement system,
21 shall not thereafter be eligible to become a participant in such
22 program.
23 c. Service retirement benefits. Notwithstanding any other provision of
24 law to the contrary, where a participant in the twenty-five year
25 improved benefit retirement program, who is otherwise qualified for a
26 retirement allowance pursuant to the optional retirement provision set
27 forth in subdivision a of this section, has made and/or paid, while he
28 or she is a fire protection inspector member, all additional member
29 contributions and interest (if any) required by subdivision d of this
30 section, then:
31 1. that participant, while he or she remains participant, shall not be
32 subject to the provisions of subdivision a of section four hundred
33 forty-five of this chapter; and
34 2. if that participant, while such a participant, retires for service,
35 he or she shall not be subject to the provisions of section four hundred
36 forty-four of this chapter; and
37 3. his or her retirement allowance shall be an amount, on account of
38 the required minimum period of service, equal to the sum of (i) an annu-
39 ity which shall be the actuarial equivalent of the accumulated
40 deductions from his or her pay during such period, (ii) a pension for
41 increased-take-home-pay which shall be the actuarial equivalent of the
42 reserve for increased-take-home-pay to which he or she may be entitled,
43 for such period, and (iii) a pension which, when added to such annuity
44 and such pension for increased-take-home-pay, produces a retirement
45 allowance equal to fifty percent of his or her final average salary,
46 plus an amount for each additional year of allowable service as a fire
47 protection inspector member, or fraction thereof, beyond such required
48 minimum period of service equal to two percent of his or her final aver-
49 age salary for such allowable service as a fire protection inspector
50 member during the period from completion of twenty-five years of allow-
51 able service as a fire protection inspector member to the date of
52 retirement but not to exceed more than five years of additional service
53 as a fire protection inspector member.
54 d. Additional member contributions. 1. In addition to the member
55 contributions required pursuant to section 13-125 or 13-162 of the
56 administrative code of the city of New York, each participant in the
S. 7872 9
1 twenty-five year improved benefit retirement program shall contribute,
2 subject to the applicable provisions of section 13-125.2 of the adminis-
3 trative code of the city of New York, an additional six percent of his
4 or her compensation earned from allowable service as a fire protection
5 inspector member, as a participant in the twenty-five year improved
6 benefit retirement program, rendered on and after the starting date of
7 the improved benefit retirement program, and all allowable service as a
8 fire protection inspector member after such person ceases to be a
9 participant, but before he or she again becomes a participant pursuant
10 to paragraph five of subdivision b of this section. A participant in
11 the twenty-five year improved benefit retirement program shall contrib-
12 ute additional member contributions until the later of the date as of
13 which he or she is eligible to retire with thirty years of allowable
14 service as a fire protection inspector member under such retirement
15 program, or the first anniversary of the starting date of the twenty-
16 five year improved benefit retirement program. The additional contrib-
17 utions required by this section shall be in lieu of additional member
18 contributions required by subdivision d of section four hundred forty-
19 five-d of this chapter, as added by chapter ninety-six of the laws of
20 nineteen hundred ninety-five, and no member paying additional contrib-
21 utions pursuant to this section shall be required to pay additional
22 contributions pursuant to such subdivision d of section four hundred
23 forty-five-d of this chapter.
24 2. Commencing with the first full payroll period after each person
25 becomes a participant in the twenty-five year improved benefit retire-
26 ment program, additional member contributions at the rate specified in
27 paragraph one of this subdivision shall be deducted, subject to the
28 applicable provisions of section 13-125.2 of the administrative code of
29 the city of New York, from the compensation of such participant on each
30 and every payroll of such participant for each and every payroll period
31 for which he or she is such a participant.
32 3. (i) Subject to the provisions of subparagraph (ii) of this para-
33 graph, where any additional member contributions required by paragraph
34 one of this subdivision are not paid by deductions from a participant's
35 compensation pursuant to paragraph two of this subdivision:
36 (A) that participant shall be charged with a contribution deficiency
37 consisting of such unpaid amounts, together with interest thereon,
38 compounded annually; and
39 (B) such interest on each amount of undeducted contributions shall
40 accrue from the end of the payroll period for which such amount would
41 have been deducted from compensation if he or she had been a participant
42 at the beginning of that payroll period and such deductions had been
43 required for such payroll period until such amount is paid to the
44 retirement system; and
45 (C) (1) interest on each such amount included in such participant's
46 contribution deficiency pursuant to this subparagraph shall be calcu-
47 lated as if such additional member contributions never had been paid by
48 such participant, and such interest shall accrue from the end of the
49 payroll period to which an amount of such additional member contribution
50 is attributable, compounded annually, until such amount is paid to the
51 retirement system;
52 (2) the rate of interest to be applied to each such amount during the
53 period for which interest accrues on that amount shall be equal to the
54 rate or rates of interest required by law to be used during that same
55 period to credit interest on the accumulated deductions of retirement
56 system members;
S. 7872 10
1 (ii) Except as provided in subparagraph (iii) of this paragraph, no
2 interest shall be due on any unpaid additional contributions which are
3 not attributable to the period prior to the first full payroll period
4 referred to in paragraph two of this subdivision;
5 (iii) Should any person who, pursuant to paragraph seven of this
6 subdivision has withdrawn any additional member contributions (and any
7 interest paid thereon) again become a participant in the twenty-five
8 year improved benefit retirement program pursuant to paragraph five of
9 subdivision b of this section, an appropriate amount shall be included
10 in such participant's contribution deficiency (including interest there-
11 on as calculated pursuant to this paragraph) for any credited service
12 with respect to which such person received a refund of additional member
13 contributions (including any amount of an unpaid loan balance deemed to
14 have been returned to such person pursuant to paragraph seven of this
15 subdivision), as if such additional member contributions never had been
16 paid.
17 4. The board of trustees of the retirement system may, consistent with
18 the provisions of this subdivision, promulgate regulations for the
19 payment of the additional member contributions required by this subdivi-
20 sion, and any interest thereon, by a participant in the twenty-five year
21 improved benefit retirement program (including the deduction of such
22 contributions, and any interest thereon, from his or her compensation).
23 5. Where a participant who is otherwise eligible for service retire-
24 ment pursuant to subdivision c of this section did not, prior to the
25 effective date of retirement, pay the entire amount of a contribution
26 deficiency chargeable to him or her pursuant to paragraph three of this
27 subdivision, or repay the entire amount of a loan of his or her addi-
28 tional member contributions pursuant to paragraph eight of this subdivi-
29 sion (including accrued interest on such loan), that participant, never-
30 theless, shall be eligible to retire pursuant to subdivision c of this
31 section, provided, however, that where such participant is not entitled
32 to a refund of additional member contributions pursuant to paragraph
33 seven of this subdivision, such participant's service retirement benefit
34 calculated pursuant to the applicable provisions of subdivision c of
35 this section shall be reduced by a life annuity (calculated in accord-
36 ance with the method set forth in subdivision i of section six hundred
37 thirteen-b of this chapter) which is actuarially equivalent to: (i) the
38 amount of any unpaid contribution deficiency chargeable to such member
39 pursuant to paragraph three of this subdivision; plus (ii) the amount of
40 any unpaid balance of a loan of his or her additional member contrib-
41 utions pursuant to paragraph eight of this subdivision (including
42 accrued interest on such loan).
43 6. Subject to the provisions of paragraph five of this subdivision,
44 where a participant has not paid in full any contribution deficiency
45 chargeable to him or her pursuant to paragraph three of this subdivi-
46 sion, and a benefit, other than a refund of a member's accumulated
47 deductions or a refund of additional member contributions pursuant to
48 paragraph seven of this subdivision, becomes payable by the retirement
49 system to the participant or to his or her designated beneficiary or
50 estate, the actuarial equivalent of any such unpaid amount shall be
51 deducted from the benefit otherwise payable.
52 7. (i) All additional member contributions required by this subdivi-
53 sion (and any interest thereon) which are received by the retirement
54 system shall be paid into its contingent reserve fund and shall be the
55 property of the retirement system. Such additional member contributions
56 (and any interest thereon) shall not for any purpose be deemed to be
S. 7872 11
1 member contributions or accumulated deductions of a member of the
2 retirement system under section 13-125 or 13-162 of the administrative
3 code of the city of New York while he or she is a participant in the
4 twenty-five year improved benefit retirement program or otherwise.
5 (ii) Should a participant in the twenty-five year improved benefit
6 retirement program, who has rendered less than fifteen years of credited
7 service cease to hold a position as a fire protection inspector member
8 for any reason whatsoever, his or her accumulated additional member
9 contributions made pursuant to this subdivision (together with any
10 interest thereon paid to the retirement system) which remain credited to
11 such participant's account may be withdrawn by him or her pursuant to
12 procedures promulgated in regulations of the board of trustees of the
13 retirement system, together with interest thereon at the rate of inter-
14 est required by law to be used to credit interest on the accumulated
15 deductions of retirement system members compounded annually.
16 (iii) Notwithstanding any other provision of law to the contrary,
17 (A) no person shall be permitted to withdraw from the retirement
18 system any additional member contributions paid pursuant to this subdi-
19 vision or any interest paid thereon, except pursuant to and in accord-
20 ance with the preceding subparagraphs of this paragraph; and
21 (B) no person, while he or she is a participant in the twenty-five
22 year improved benefit retirement program, shall be permitted to withdraw
23 any such additional member contributions or any interest paid thereon
24 pursuant to any of the preceding subparagraphs of this paragraph or
25 otherwise.
26 8. A participant in the twenty-five year improved benefit retirement
27 program shall be permitted to borrow from his or her additional member
28 contributions, including any interest paid thereon, which are credited
29 to the additional contributions account established for such participant
30 in the contingent reserve fund of the retirement system. The borrowing
31 from such additional member contributions pursuant to this paragraph
32 shall be governed by the same rights, privileges, obligations and proce-
33 dures set forth in section six hundred thirteen-b of this chapter which
34 govern the borrowing by members subject to article fifteen of this chap-
35 ter of member contributions made pursuant to section six hundred thir-
36 teen of this chapter. The board of trustees of the retirement system
37 may, consistent with the provisions of this subdivision and the
38 provisions of section six hundred thirteen-b of this chapter as made
39 applicable to this subdivision, promulgate regulations governing the
40 borrowing of such addition member contributions.
41 9. Wherever a person has an unpaid balance of a loan of his or her
42 additional member contributions pursuant to paragraph eight of this
43 subdivision at the time he or she becomes entitled to a refund of his or
44 her additional member contributions pursuant to subparagraph (ii) of
45 paragraph seven of this subdivision, the amount of such unpaid loan
46 balance (including accrued interest) shall be deemed to have been
47 returned to such member, and the refund of such additional contributions
48 shall be the net amount of such contributions, together with interest
49 thereon in accordance with the provisions of such subparagraph.
50 10. Notwithstanding any other provision of law to the contrary, the
51 provisions of section one hundred thirty-eight-b of this chapter shall
52 not be applicable to the additional member contributions which are
53 required by this subdivision.
54 11. Notwithstanding any other provision of law to the contrary, the
55 additional member contributions which are required by this subdivision
56 shall not be reduced under any program for increased-take-home-pay.
S. 7872 12
1 e. The provisions of this section shall not be construed to provide
2 benefits to any participant in the twenty-five year improved benefit
3 retirement program which are greater than those which would be received
4 by a similarly situated member who is entitled to benefits under the
5 provisions of section 13-157.2 of the administrative code, but who is
6 not governed by the provisions of this article.
7 § 5. The retirement and social security law is amended by adding a new
8 section 604-j to read as follows:
9 § 604-j. Twenty-five year retirement program for fire protection
10 inspector members. a. Definitions. The following words and phrases as
11 used in this section shall have the following meanings unless a differ-
12 ent meaning is plainly required by the context.
13 1. "Fire protection inspector member" shall mean a member who is
14 employed by the city of New York or by the New York city fire department
15 in a title whose duties are those of a fire protection inspector or
16 associate fire protection inspector; or in a title whose duties require
17 the supervision of employees whose duties are those of a fire protection
18 inspector or associate fire protection inspector.
19 2. "Twenty-five year retirement program" shall mean all the terms and
20 conditions of this section.
21 3. "Starting date of the twenty-five year retirement program" shall
22 mean the date of enactment of this section.
23 4. "Participant in the twenty-five year retirement program" shall mean
24 any fire protection inspector member who, under the applicable
25 provisions of subdivision b of this section, is entitled to the rights,
26 benefits and privileges and is subject to the obligations of the twen-
27 ty-five year retirement program, as applicable to him or her.
28 5. "Discontinued member" shall mean a participant in the twenty-five
29 year retirement program who, while he or she was a fire protection
30 inspector member, discontinued service as such a member and has a right
31 to a deferred vested benefit under subdivision d of this section.
32 6. "Administrative code" shall mean the administrative code of the
33 city of New York.
34 7. "Allowable service as a fire protection inspector member" shall
35 mean all service as a fire protection inspector member.
36 b. Participation in twenty-five year retirement program. 1. Subject to
37 the provisions of paragraphs six and seven of this subdivision, any
38 person who is a fire protection inspector member on the starting date of
39 the twenty-five year retirement program and who, as such a fire
40 protection inspector member or otherwise, last became subject to the
41 provisions of this article prior to such starting date, may elect to
42 become a participant in the twenty-five year retirement program by
43 filing, within one hundred eighty days after the starting date of the
44 twenty-five year retirement program, a duly executed application for
45 such participation with the retirement system of which such person is a
46 member, provided he or she is such a fire protection inspector member on
47 the date such application is filed.
48 2. Subject to the provisions of paragraphs six and seven of this
49 subdivision, any person who becomes a fire protection inspector member
50 after the starting date of the twenty-five year retirement program and
51 who, as such a fire protection inspector member or otherwise, last
52 became subject to the provisions of this article prior to such starting
53 date, may elect to become a participant in the twenty-five year retire-
54 ment program by filing, within one hundred eighty days after becoming
55 such a fire protection inspector member, a duly executed application for
56 such participation with the retirement system for which such person is a
S. 7872 13
1 member, provided that he or she is such a fire protection inspector
2 member on the date such application is filed.
3 3. Each fire protection inspector member, other than a fire protection
4 inspector member subject to paragraph one or two of this subdivision,
5 who becomes subject to the provisions of this article on or after the
6 starting date of the twenty-five year retirement program shall become a
7 participant in the twenty-five year retirement program on the date he or
8 she becomes such a fire protection inspector member. Provided, however,
9 a person subject to this paragraph, and who has exceeded age twenty-five
10 upon employment as a fire protection inspector member, shall be exempt
11 from participation in the improved twenty-five year retirement program
12 if such person elects not to participate by filing a duly executed form
13 with the retirement system within one hundred eighty days of becoming a
14 fire protection inspector member.
15 4. Any election to be a participant in the twenty-five year retirement
16 program shall be irrevocable.
17 5. Where any participant in the twenty-five year retirement program
18 shall cease to be employed as a fire protection member, he or she shall
19 cease to be such a participant and, during any period in which such
20 person is not so employed, he or she shall not be a participant in the
21 twenty-five year retirement program and shall not be eligible for the
22 benefits of subdivision c of this section.
23 6. Where any participant in the twenty-five year retirement program
24 terminates service as a fire protection inspector member and returns to
25 such service as a fire protection inspector member at a later date, he
26 or she shall again become such a participant on that date.
27 7. Notwithstanding any other provision of the law to the contrary, any
28 person who is eligible to elect to become a participant in the twenty-
29 five year retirement program pursuant to paragraph one or two of this
30 subdivision for the full one hundred eighty day period provided for in
31 such applicable paragraph and who fails to timely file a duly executed
32 application for such participation with the retirement system, shall not
33 thereafter be eligible to become a participant in such program.
34 c. Service retirement benefits. 1. A participant in the twenty-five
35 year retirement program:
36 (i) who has completed twenty-five or more years of allowable service
37 as a fire protection member, and
38 (ii) who has paid, before the effective date of retirement, all addi-
39 tional member contributions and interest (if any) required by subdivi-
40 sion e of this section; and
41 (iii) who files with the retirement system of which he or she is a
42 member an application for service retirement setting forth at what time,
43 not less than thirty days subsequent to the execution and filing there-
44 of, he or she desires to be retired; and
45 (iv) who shall be a participant in the twenty-five year retirement
46 program at the time so specified for his or her retirement, shall be
47 retired pursuant to the provisions of this section affording early
48 service retirement.
49 2. Notwithstanding an other provision of law to the contrary, and
50 subject to the provisions of paragraph six of subdivision e of this
51 section, the early service retirement benefit for participants in the
52 twenty-five year retirement program who retire pursuant to paragraph one
53 of this subdivision shall be a retirement allowance consisting of:
54 (i) an amount, on account of the required minimum period of service,
55 equal to fifty percent of his or her final average salary; plus
S. 7872 14
1 (ii) an amount on account of allowable service as a fire protection
2 member, or fraction thereof, beyond such required minimum period of
3 service equal to two percent of his or her final salary for such allow-
4 able service as a fire protection member during the period from
5 completion of twenty-five years of allowable service as a fire
6 protection member to the date of retirement but not to exceed more than
7 five years of additional service as a fire protection member.
8 d. Vesting. 1. A participant in the twenty-five year retirement
9 program:
10 (i) who discontinues service as such a participant, other than by
11 death or retirement; and
12 (ii) in the case of a participant who is not a New York city revised
13 plan member, who prior to such discontinuance, completed five but less
14 than than twenty-five years of allowable service as a fire protection
15 member or, in the case of a participant who is a New York city revised
16 plan member, who prior to such discontinuance, completed ten but less
17 than twenty-five years of allowable service as a fire protection member;
18 and
19 (iii) who, subject to the provisions of paragraph seven of subdivision
20 e of this section, has paid, prior to such discontinuance, all addi-
21 tional member contributions and interest (if any) required by subdivi-
22 sion e of this section; and
23 (iv) who does not withdraw in whole or in part his or her accumulated
24 member contributions pursuant to section six hundred thirteen of this
25 article unless such participant thereafter returns to public service and
26 repays the amounts so withdrawn, together with interest, pursuant to
27 such section six hundred thirteen; shall be entitled to receive a
28 deferred vested benefit as provided in this subdivision.
29 2. (i) Upon such discontinuance under the conditions and in compliance
30 with the provisions of paragraph one of this subdivision, such deferred
31 vested benefit shall vest automatically.
32 (ii) In the case of a participant who is not a New York city revised
33 plan member, such vested benefit shall become payable on the earliest
34 date on which such discontinued member could have retired for service if
35 such discontinuance had not occurred or, in the case of a participant
36 who is a New York city revised plan member, such vested benefit shall
37 become payable at age sixty-three. Subject to the provisions of para-
38 graph seven of subdivision e of this section, such deferred vested bene-
39 fit shall be a retirement allowance consisting of an amount equal to two
40 percent of such discontinued member's final average salary, multiplied
41 by the number of years of allowable service.
42 e. Additional member contributions. 1. In addition to the member
43 contributions required by section six hundred thirteen of this article,
44 each participant in the twenty-five year retirement program shall
45 contribute to the retirement system of which he or she is a member
46 (subject to the applicable provisions of subdivision d of section six
47 hundred thirteen of this article) an additional six percent of his or
48 her compensation earned from (i) all allowable service, as a participant
49 in the twenty-five year retirement program, rendered on or after the
50 starting date of the twenty-five year retirement program, and (ii) all
51 allowable service after such person ceases to be a participant, but
52 before he or she again becomes a participant pursuant to paragraph six
53 of subdivision b of this section. The additional contributions required
54 by this section shall be in lieu of additional member contributions
55 required by subdivision d of section six hundred four-c of this chapter
56 as added by chapter ninety-six of the laws of nineteen hundred ninety-
S. 7872 15
1 five, and no member making additional contributions pursuant to this
2 section shall be required to make contributions pursuant to such subdi-
3 vision d of section six hundred four-c of this chapter.
4 2. A participant in the twenty-five year retirement program shall
5 contribute additional member contributions until the later of (i) the
6 first anniversary of the starting date of the twenty-five year retire-
7 ment program, or (ii) the date on which he or she completes thirty years
8 of allowable service as a fire protection inspector member.
9 3. Commencing with the first full payroll period after each person
10 becomes a participant in the twenty-five year retirement program, addi-
11 tional member contributions at the rate specified in paragraph one of
12 this subdivision shall be deducted (subject to the applicable provisions
13 of subdivision d of section six hundred thirteen of this article) from
14 the compensation of such participant on each and every payroll of such
15 participant for each and every payroll period for which he or she is
16 such a participant.
17 4. (i) Each participant in the twenty-five year retirement program
18 shall be charged with a contribution deficiency consisting of the total
19 amounts of additional member contributions such person is required to
20 make pursuant to paragraphs one and two of this subdivision which are
21 not deducted from his or her compensation pursuant to paragraph three of
22 this subdivision, if any, together with interest thereon, compounded
23 annually, and computed in accordance with the provisions of subpara-
24 graphs (ii) and (iii) of this paragraph.
25 (ii)(A) The interest required to be paid on each such amount specified
26 in subparagraph (i) of this paragraph shall accrue from the end of the
27 payroll period for which such amount would have been deducted from
28 compensation if he or she had been a participant at the beginning of
29 that payroll period and such deduction had been required for such
30 payroll period, until such amount is paid to the retirement system.
31 (B) The rate of interest to be applied to each such amount during the
32 period for which interest accrues on that amount shall be equal to the
33 rate or rates of interest required by law to be used during that same
34 period to credit interest on the accumulated deductions of retirement
35 system members.
36 (iii) Except as otherwise provided in paragraph five of this subdivi-
37 sion, no interest shall be due on any unpaid additional member contrib-
38 utions which are not attributable to a period prior to the first full
39 payroll period referred to in paragraph three of this subdivision.
40 5. (i) Should any person who, pursuant to subparagraph (ii) of para-
41 graph ten of this subdivision, has received a refund of his or her addi-
42 tional member contribution including any interest paid on such contrib-
43 utions, again become a participant in the twenty-five year retirement
44 program pursuant to paragraph six of subdivision b of this section, an
45 appropriate amount shall be included in such participant's contribution
46 deficiency (including interest thereon as calculated pursuant to subpar-
47 agraph (ii) of this paragraph) for any allowable service for which such
48 person received a refund of such additional member contributions
49 (including any amount of an unpaid loan balance deemed to have been
50 returned to such person pursuant to paragraph twelve of this subdivi-
51 sion), as if such additional member contributions never had been paid.
52 (ii) (A) Interest on a participant's additional member contributions
53 included in such participant's contribution deficiency pursuant to
54 subparagraph (i) of this paragraph shall be calculated as if such addi-
55 tional member contributions had never been paid by such participant, and
56 such interest shall accrue from the end of the payroll period to which
S. 7872 16
1 an amount of such additional member contributions is attributable, until
2 such amount is paid to the retirement system.
3 (B) The rate of interest to be applied to each such amount during the
4 period for which interest accrues on that amount shall be five percent
5 per annum, compounded annually.
6 6. Where a participant who is otherwise eligible for service retire-
7 ment pursuant to subdivision c of this section did not, prior to the
8 effective date of retirement, pay the entire amount of a contribution
9 deficiency chargeable to him or her pursuant to paragraphs four and five
10 of this subdivision, or repay the entire amount of a loan of his or her
11 additional member contributions pursuant to paragraph eleven of this
12 subdivision (including accrued interest on such loan), that participant,
13 nevertheless, shall be eligible to retire pursuant to subdivision c of
14 this section, provided, however, that such participant's service retire-
15 ment benefit calculated pursuant to paragraph two of such subdivision c
16 shall be reduced by a life annuity (calculated in accordance with the
17 method set forth in subdivision i of section six hundred thirteen-b of
18 this article) which is actuarially equivalent to:
19 (i) the amount of any unpaid contribution deficiency chargeable to
20 such member pursuant to paragraphs four and five of this subdivision;
21 plus
22 (ii) the amount of any unpaid balance of a loan of his or her addi-
23 tional member contributions pursuant to paragraph eleven of this subdi-
24 vision (including accrued interest on such loan).
25 7. Where a participant who is otherwise eligible for a vested right to
26 a deferred benefit pursuant to subdivision d of this section did not,
27 prior to the date of discontinuance of service, pay the entire amount of
28 a contribution deficiency chargeable to him or her pursuant to para-
29 graphs four and five of this subdivision, or repay the entire amount of
30 a loan of his or her additional member contributions pursuant to para-
31 graph eleven of this subdivision (including accrued interest on such
32 loan), that participant, nevertheless, shall have a vested right to a
33 deferred benefit pursuant to subdivision d of this section provided,
34 however, that the deferred vested benefit calculated pursuant to para-
35 graph three of subdivision d shall be reduced by a life annuity (calcu-
36 lated in accordance with the method set forth in subdivision i of
37 section six hundred thirteen-b of this article) which is actuarially
38 equivalent to:
39 (i) the amount of any unpaid contribution chargeable to such member
40 pursuant to paragraphs four and five of this subdivision; plus
41 (ii) the amount of any unpaid balance of a loan of his or her addi-
42 tional member contributions pursuant to paragraph eleven of this subdi-
43 vision (including accrued interest on such a loan).
44 8. The head of a retirement system which includes participants in the
45 twenty-five year retirement program in its membership may, consistent
46 with the provisions of this subdivision, promulgate regulations for the
47 payment of such additional member contributions, and any interest there-
48 on, by such participants (including the deduction of such contributions,
49 and any interest thereon, from the participant's compensation).
50 9. Subject to the provisions of paragraphs six and seven of this
51 subdivision, where a participant has not paid in full any contribution
52 deficiency chargeable to him or her pursuant to paragraphs four and five
53 of this subdivision, and a benefit, other than a refund of member
54 contributions pursuant to section six hundred thirteen of this article
55 or a refund of additional member contributions pursuant to subparagraph
56 (ii) of paragraph ten of this subdivision, becomes payable under this
S. 7872 17
1 article to the participant or to his or her designated beneficiary or
2 estate, the actuarial equivalent of any such unpaid amount shall be
3 deducted from the benefit otherwise payable.
4 10. (i) Such additional member contributions (and any interest there-
5 on) shall be paid into the contingent reserve fund of the retirement
6 system of which the participant is a member and shall not for any
7 purpose be deemed to be member contributions or accumulated contrib-
8 utions of a member under section six hundred thirteen of this article or
9 otherwise while he or she is a participant in the twenty-five year
10 retirement program or otherwise.
11 (ii) Should a participant in the twenty-five year retirement program
12 who has rendered less than fifteen years of credited service cease to
13 hold a position as a fire protection inspector member for any reason
14 whatsoever, his or her accumulated additional member contributions made
15 pursuant to this subdivision (together with any interest thereon paid to
16 the retirement system) may be withdrawn by him or her pursuant to proce-
17 dures promulgated in regulations of the board of trustees of the retire-
18 ment system, together with interest thereon at the rate of five percent
19 per annum, compounded annually.
20 (iii) Notwithstanding any other provision of law to the contrary, (A)
21 no person shall be permitted to withdraw from the retirement system any
22 additional member contributions paid pursuant to this subdivision or any
23 interest paid thereon, except pursuant to and in accordance with the
24 preceding subparagraphs of this paragraph; and (B) no person, while he
25 or she is a participant in the twenty-five year retirement program,
26 shall be permitted to withdraw any such additional member contributions
27 or any interest paid thereon pursuant to any of the preceding subpara-
28 graphs of this paragraph or otherwise.
29 11. A participant in the twenty-five year retirement program shall be
30 permitted to borrow from his or her additional member contributions
31 (including any interest paid thereon) which are credited to the addi-
32 tional contributions account established for such participant in the
33 contingent reserve fund of the retirement system. The borrowing from
34 such additional member contributions pursuant to this paragraph shall be
35 governed by the rights, privileges, obligations and procedures set forth
36 in section six hundred thirteen-b of this article which govern the
37 borrowing of member contributions made pursuant to section six hundred
38 thirteen of this article. The board of trustees of the retirement system
39 may, consistent with the provisions of this subdivision and the
40 provisions of section six hundred thirteen-b of this article as made
41 applicable to this subdivision, promulgate regulations governing the
42 borrowing of such additional member contributions.
43 12. Whenever a person has an unpaid balance of a loan or his or her
44 additional member contributions pursuant to paragraph eleven of this
45 subdivision at the time he or she becomes entitled to a refund of his or
46 her additional member contributions pursuant to subparagraph (ii) of
47 paragraph ten of this subdivision, the amount of such unpaid loan
48 balance (including accrued interest) shall be deemed to have been
49 returned to such member, and the refund of such additional contributions
50 shall be the net amount of such contribution, together with interest
51 thereon in accordance with the provisions of such subparagraph (ii).
52 § 6. Subdivision d of section 613 of the retirement and social securi-
53 ty law is amended by adding a new paragraph 12 to read as follows:
54 12. (i) The city of New York shall, in the case of a fire protection
55 inspector member (as defined in paragraph one of subdivision a of
56 section six hundred four-j of this article) who is a participant in the
S. 7872 18
1 twenty-five year retirement program (as defined in paragraph four of
2 subdivision a of such section six hundred four-j), pick up and pay to
3 the retirement system of which such participant is a member all addi-
4 tional member contributions which otherwise would be required to be
5 deducted from such member's compensation pursuant to paragraphs one and
6 two of subdivision e of such section six hundred four-j (not including
7 any additional member contributions due for any period prior to the
8 first full payroll period referred to in paragraph three of such subdi-
9 vision e), and shall effect such pick up in each and every payroll of
10 such participant for each and every payroll period with respect to which
11 such paragraph three would otherwise require such deductions.
12 (ii) An amount equal to the amount of additional contributions picked
13 up pursuant to this paragraph shall be deducted by such employer from
14 the compensation of such member (as such compensation would be in the
15 absence of a pick up program applicable to him or her) and shall not be
16 paid to such member.
17 (iii) The additional member contributions picked up pursuant to this
18 paragraph for any such member shall be paid by such employer in lieu of
19 an equal amount of additional member contributions otherwise required to
20 be paid by such member under the applicable provisions of subdivision e
21 of section six hundred four-j of this article, and shall be deemed to be
22 and treated as employer contributions pursuant to section 414(h) of the
23 Internal Revenue Code.
24 (iv) For the purpose of determining the retirement system rights,
25 benefits and privileges of any member whose additional member contrib-
26 utions are picked up pursuant to this paragraph, such picked up addi-
27 tional member contributions shall be deemed to be and treated as part of
28 such member's additional member contributions under the applicable
29 provisions of subdivision e of section six hundred four-j of this arti-
30 cle.
31 (v) With the exception of federal income tax treatment, the additional
32 member contributions picked up pursuant to subparagraph (i) of this
33 paragraph shall for all other purposes, including computation of retire-
34 ment benefits and contributions by employers and employees, be deemed
35 employee salary. Nothing contained in this subdivision shall be
36 construed as superseding the provisions of section four hundred thirty-
37 one of this chapter, or any similar provision of law which limits the
38 salary base for computing retirement benefits payable by a public
39 retirement system.
40 § 7. Section 13-125.2 of the administrative code of the city of New
41 York is amended by adding a new subdivision a-9 to read as follows:
42 a-9. Notwithstanding any other provision of law to the contrary, on or
43 after the starting date for pick up, the employer responsible for pick
44 up shall, in the case of a fire protection inspector member (as defined
45 in paragraph two of subdivision a of section four hundred forty-five-j
46 of the retirement and social security law) who is a participant in the
47 twenty-five year improved benefit retirement program (as defined in
48 paragraph three of such subdivision a), pick up and pay to retirement
49 system all additional member contributions which otherwise would be
50 required to be deducted from such member's compensation pursuant to
51 subdivision d of such section four hundred forty-five-j, and shall
52 effect such pick up on each and every payroll of such participant for
53 each and every payroll period with respect to which such subdivision d
54 would otherwise require such deductions.
S. 7872 19
1 § 8. Subparagraph (ii) of paragraph 1 of subdivision c of section
2 13-125.2 of the administrative code of the city of New York, as amended
3 by chapter 682 of the laws of 2003, is amended to read as follows:
4 (ii) the determination of the amount of such member's Tier I or Tier
5 II nonuniformed-force member contributions eligible for pick up by the
6 employer or additional member contributions required to be picked up
7 pursuant to subdivision a-one, subdivision a-two, subdivision a-three,
8 subdivision a-four, subdivision a-five, subdivision a-six, subdivision
9 a-seven [or], subdivision a-eight or subdivision a-nine of this section;
10 and
11 § 9. Subdivision d of section 13-125.2 of the administrative code of
12 the city of New York is amended by adding a new paragraph 2-h to read as
13 follows:
14 (2-h) For the purpose of determining the retirement system rights,
15 benefits and privileges of any member who is a participant in the twen-
16 ty-five year retirement program (as defined in paragraph two of subdivi-
17 sion a of section 13-157.5 of this chapter), the additional member
18 contributions of such participant picked up pursuant to subdivision
19 a-nine of this section shall be deemed to be and treated as a part of
20 such member's additional contributions under subdivision e of such
21 section 13-157.5.
22 § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis-
23 trative code of the city of New York, as amended by chapter 682 of the
24 laws of 2003, is amended to read as follows:
25 (3) Interest on contributions picked up for any Tier I or Tier II
26 non-uniformed-force member pursuant to this section (other than addi-
27 tional member contributions picked up pursuant to subdivision a-one,
28 subdivision a-two, subdivision a-three, subdivision a-four, subdivision
29 a-five, subdivision a-six, subdivision a-seven [or], subdivision a-eight
30 or subdivision a-nine of this section) shall accrue in favor of the
31 member and be payable to the retirement system at the same rate, for the
32 same time periods, in the same manner and under the same circumstances
33 as interest would be required to accrue in favor of the member and be
34 payable to the retirement system on such contributions if they were made
35 by such member in the absence of a pick up program applicable to such
36 member under the provisions of this section.
37 § 11. Subdivision a of section 603 of the retirement and social secu-
38 rity law, as amended by chapter 18 of the laws of 2012, is amended to
39 read as follows:
40 a. The service retirement benefit specified in section six hundred
41 four of this article shall be payable to members who have met the mini-
42 mum service requirements upon retirement and attainment of age sixty-
43 two, other than members who are eligible for early service retirement
44 pursuant to subdivision c of section six hundred four-b of this article,
45 subdivision c of section six hundred four-c of this article, subdivision
46 d of section six hundred four-d of this article, subdivision c of
47 section six hundred four-e of this article, subdivision c of section six
48 hundred four-f of this article, subdivision c of section six hundred
49 four-g of this article, subdivision c of section six hundred four-h of
50 this article [or], subdivision c of section six hundred four-i of this
51 article, or subdivision c of section six hundred four-j of this article
52 provided, however, a member of a teachers' retirement system or the New
53 York state and local employees' retirement system who first joins such
54 system before January first, two thousand ten or a member who is a
55 uniformed court officer or peace officer employed by the unified court
56 system who first becomes a member of the New York state and local
S. 7872 20
1 employees' retirement system before April first, two thousand twelve may
2 retire without reduction of his or her retirement benefit upon attain-
3 ment of at least fifty-five years of age and completion of thirty or
4 more years of service, provided, however, that a uniformed court officer
5 or peace officer employed by the unified court system who first becomes
6 a member of the New York state and local employees' retirement system on
7 or after January first, two thousand ten and retires without reduction
8 of his or her retirement benefit upon attainment of at least fifty-five
9 years of age and completion of thirty or more years of service pursuant
10 to this section shall be required to make the member contributions
11 required by subdivision f of section six hundred thirteen of this arti-
12 cle for all years of credited and creditable service, provided further
13 that the the preceding provisions of this subdivision shall not apply to
14 a New York city revised plan member.
15 § 12. Nothing contained in sections six and eleven of this act shall
16 be construed to create any contractual right with respect to members to
17 whom such sections apply. The provisions of such sections are intended
18 to afford members the advantages of certain benefits contained in the
19 internal revenue code, and the effectiveness and existence of such
20 sections and benefits they confer are completely contingent thereon.
21 § 13. This act shall take effect immediately, provided, however that:
22 (a) the amendments to subdivision a of section 603 of the retirement
23 and social security law made by section eleven of this act shall not
24 affect the expiration of such subdivision and shall be deemed to expire
25 therewith;
26 (b) the provisions of section six of this act shall remain in force
27 and effect only so long as, pursuant to federal law, contributions
28 picked up under such section are not includable as gross income of a
29 member for federal income tax purposes until distributed or made avail-
30 able to the member; and
31 (c) the amendments to section 13-125.2 of the administrative code of
32 the city of New York made by sections seven, eight, nine and ten of this
33 act shall not affect the expiration of such provisions as provided for
34 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.
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
S. 7872 21
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
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
S. 7872 22
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
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.
S. 7872 23
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.
