Extends the benefits of the variable supplements fund for transit police members of the New York city employees' retirement system for persons who retired on or after October 1, 1968.
STATE OF NEW YORK
________________________________________________________________________
7824--A
2023-2024 Regular Sessions
IN ASSEMBLY
June 15, 2023
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees -- recommitted to the Committee on
Governmental Employees in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the administrative code of the city of New York, in
relation to extending the benefits of the variable supplements fund
for transit police members of the New York city employees' retirement
system
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (c) of subdivision 1 of section 13-191 of the
2 administrative code of the city of New York, as amended by chapter 577
3 of the laws of 1992, is amended to read as follows:
4 (c) "Beneficiary". Any person who receives a retirement allowance by
5 reason of having retired, on or after [July first, nineteen hundred
6 eighty-seven] October first, nineteen hundred sixty-eight for service
7 (with credit for twenty or more years of service toward the minimum
8 period) as a transit police officer; provided, that no person who held a
9 rank or position as a transit police superior officer, as defined in
10 subdivision eighty-four of section 13-101 of this [title] chapter who,
11 on or after May first, nineteen hundred ninety-two, subsequently became
12 a transit police officer shall be considered a beneficiary unless such
13 person (1) subsequently performed at least three years of service as a
14 transit police officer or (2) returned to service, from the position of
15 sergeant, as a transit police officer during the eighteen month proba-
16 tionary period, or such other probationary period as may be applicable
17 or (3) returned to service as a transit police officer during the three
18 year period specified in paragraph (e) of subdivision one of section
19 seventy-five of the civil service law, or (4) returned to service as a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08380-03-4
A. 7824--A 2
1 transit police officer as the result of a hearing conducted pursuant to
2 applicable law.
3 § 2. Paragraph (b) of subdivision 1 of section 13-192 of the adminis-
4 trative code of the city of New York, as amended by chapter 720 of the
5 laws of 1994, is amended to read as follows:
6 (b) "Beneficiary". Any person who receives a retirement allowance by
7 reason of having retired, on or after [July first, nineteen hundred
8 eighty-seven,] October first, nineteen hundred sixty-eight, for service
9 (with credit for twenty or more years of service toward the minimum
10 period) as a transit police member and as a transit police superior
11 officer; provided, however, that where a person who held or holds a rank
12 or position as a transit police superior officer, subsequently and on or
13 after May first, nineteen hundred ninety-two became or becomes a transit
14 police officer, and while a transit police officer, retired or retires
15 for service under such circumstances that he or she would have qualified
16 as a beneficiary under the provisions of paragraph (c) of subdivision
17 one of section 13-191 of this [title] chapter (other than the proviso
18 thereof), but did not or does not qualify as a beneficiary under such
19 paragraph (c) because he or she was or is disqualified by the terms of
20 such proviso, such retiree shall nevertheless be deemed to be a benefi-
21 ciary under the provisions of this section.
22 § 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would extend the eligibility for
the payment of Transit Police Officers' and Transit Police Superior
Officers' Variable Supplements Funds (VSF) benefits to former NYCERS
members who retired for service from the New York City Transit Police
between October 1, 1968 and June 30, 1987 with 20 or more years of
service.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS
2025 20.9
2026 0
2027 0
2028 0
2029 0
2030 0
2031 0
2032 0
2033 0
2034 0
2035 0
2036 0
2037 0
2038 0
2039 0
2040 0
2041 0
2042 0
2043 0
2044 0
2045 0
2046 0
2047 0
A. 7824--A 3
2048 0
2049 0
The entire increase in employer contributions will be allocated to New
York City. There are no active Transit Police members of NYCERS and
therefore a transfer from NYCERS, via a City payment, to the impacted
VSFs would be necessary to fund the additional VSF benefit obligations.
EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
as of June 30, 2023 ($ in Millions)
Present Value (PV) NYCERS
PV of Benefits: 18.9
PV of Employee Contributions: 0
PV of Employer Contributions: 18.9
Unfunded Accrued Liabilities: 18.9
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
NYCERS
Number of Payments: 1
Fiscal Year of Last Payment: 2025
Amortization Payment: 20.9 M
Since those that would benefit are retired, and therefore have no
remaining working lifetime, the entire increase in Unfunded Accrued
Liabilities would be recognized immediately.
CENSUS DATA: The estimates presented herein are based on preliminary
census data collected as of June 30, 2023. The census data for the
impacted population is summarized below.
NYCERS
Receiving Members
- Number Count: 304
- Average Age: 82.0
IMPACT ON RETIREE BENEFITS: Currently, Transit Police Officers' and
Transit Police Superior Officers' VSFs provide supplemental non-pension
benefits to former NYCERS members who retired for service on or after
July 1, 1987 from New York City Transit Police with 20 or more years of
service.
The amount of VSF benefits paid is currently $12,000 per Calendar
Year. These VSF benefits are payable on an annual basis around December
15th to eligible former NYCERS members for their lifetimes. Upon the
death of the NYCERS retiree, VSF payments cease.
Under the proposed legislation, former NYCERS members who retired for
service from New York City Transit Police between October 1, 1968 and
June 30, 1987 with 20 or more years of service would become immediately
eligible for VSF benefits on the December 15th following the Effective
Date and for each year thereafter. For the purposes of this Fiscal Note,
it has been assumed that benefits payable under this proposed legis-
lation are prospective only.
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-
A. 7824--A 4
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 2024-17 dated February
23, 2024 was prepared by the Chief Actuary for the New York City Retire-
ment Systems and Pension Funds. This estimate is intended for use only
during the 2024 Legislative Session.
