Affords certain uniformed members of the fire department pension fund with an increased pension benefit of one-fortieth of their average annual earnings for each year of additional service beyond his or her required minimum service.
STATE OF NEW YORK
________________________________________________________________________
10500
IN ASSEMBLY
May 29, 2024
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A.
Pheffer Amato) -- read once and referred to the Committee on Govern-
mental Employees
AN ACT to amend the administrative code of the city of New York, in
relation to affording certain uniformed members of the fire department
pension fund with an increased pension benefit for each year of addi-
tional service beyond their required minimum service
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (a) of paragraph 2 of subdivision a of section
2 13-359 of the administrative code of the city of New York is amended to
3 read as follows:
4 (a) a pension of [one-sixtieth] one-fortieth of [his or her] such
5 member's average annual earnings from [his or her] their date of eligi-
6 bility for retirement to the actual date of retirement; and
7 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would increase the additional annu-
al pension for Tier 2 New York City Fire Pension Fund (FIRE) members who
retire with more than 20 years of service from 1/60th to 1/40th of total
annual earnings after reaching 20 years of credited service.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year FIRE
2025 94.2
2026 93.6
2027 93.2
2028 92.7
2029 92.0
2030 91.4
2031 90.7
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14129-02-4
A. 10500 2
2032 90.0
2033 10.8
2034 10.0
2035 9.2
2036 8.3
2037 7.4
2038 6.6
2039 5.7
2040 4.9
2041 4.1
2042 3.3
2043 2.6
2044 2.0
2045 1.5
2046 1.1
2047 0.7
2048 0.5
2049 0.3
Employer Contribution impact beyond Fiscal Year 2049 is not shown.
The increase in employer contributions will be allocated to New York
City.
INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
as of June 30, 2023 ($ in Millions)
Present Value (PV) FIRE
PV of Benefits: 565.3
PV of Employee Contributions: 0.0
PV of Employer Contributions: 565.3
Unfunded Accrued Liabilities: 452.6
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
FIRE
Number of Payments: 8
Fiscal Year of Last Payment: 2032
Amortization Payment: 78.4 M
Unfunded Accrued Liability increases 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.
FIRE
Active Members
- Number Count: 5,690
- Average Age: 47.3
- Average Service: 21.3
- Average Salary: 163,500
A. 10500 3
IMPACT ON MEMBER BENEFITS: This proposed legislation would increase
the annual pension for certain members who retire for service or acci-
dental disability from 1/60th to 1/40th of average annual earnings from
the date of eligibility for retirement to the actual date of retirement
for each additional year of credited service, or fraction thereof,
exceeding 20 years.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement systems.
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 2024-59 dated May 14,
2024 was prepared by the Chief Actuary for the New York City Retirement
Systems and Pension Funds. This estimate is intended for use only during
the 2024 Legislative Session.
