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S06988 Summary:

BILL NOS06988A
 
SAME ASSAME AS A01778-C
 
SPONSORJACKSON
 
COSPNSRCHAN, COMRIE, MATTERA, PALUMBO, PARKER, SCARCELLA-SPANTON, SKOUFIS
 
MLTSPNSR
 
Add §13-633, NYC Ad Cd
 
Grants members of the city of New York's police force eligibility for retirement and pension based on previous service as traffic enforcement agents.
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S06988 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6988--A
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                     March 27, 2025
                                       ___________
 
        Introduced  by Sens. JACKSON, COMRIE, PALUMBO, PARKER, SCARCELLA-SPANTON
          -- read twice and ordered printed, and when printed to be committed to
          the Committee on Cities 1 -- reported favorably  from  said  committee
          and  committed  to  the  Committee  on  Civil  Service and Pensions --
          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 granting members of the city's  police  force  eligibility
          for  retirement  and  pension  based  on  previous  service as traffic
          enforcement agents
 
          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 13-633 to read as follows:
     3    § 13-633 Transfer of members of the New York  city  police  department
     4  from  traffic  enforcement  to the police force. a. The time served as a
     5  member of the city's traffic enforcement who has become a member of  the
     6  uniformed  force of the police department of the city, whether by trans-
     7  fer or as a result of a competitive examination and appointment, and who
     8  is still a member of the uniformed force of the police department of the
     9  city, shall be included and counted as  police  service  as  defined  in
    10  section 13-214 of this title in determining retirement and pension bene-
    11  fits as provided in this code and the retirement and social security law
    12  if  such  person  becomes  a member of a state or city retirement system
    13  available to members of the police department  of  the  city,  provided,
    14  however,  that no person becoming a member of the uniformed force of the
    15  police department of the city in the manner herein  provided,  shall  be
    16  entitled  to  participate  in the benefits of a state or city retirement
    17  system available to members of the police department of the city, unless
    18  such person shall pay into such fund the  total  sum  that  such  person
    19  would have been required to pay in order to participate therein had such
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02377-08-5

        S. 6988--A                          2
 
     1  person  been  a  member  of  such  force  from the time they entered the
     2  service of traffic enforcement. These provisions shall not be subject to
     3  any restriction relative to transfers contained in the civil service law
     4  or  in  the rules and regulations of the civil service commission of the
     5  state, or any subdivision thereof.
     6    b. Notwithstanding any other provisions of law, a member  of  the  New
     7  York  city  police  department shall be entitled to buy back and receive
     8  service credit for  the  period  of  time  such  member  was  previously
     9  employed as a New York city traffic enforcement agent pursuant to subdi-
    10  vision a of this section.
    11    c. The provisions of this section shall apply to members who have been
    12  appointed  to  the  title traffic enforcement agent prior to July first,
    13  two thousand nine.
    14    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY: This proposed legislation would deem  certain  prior  service
        rendered  as  a  traffic enforcement agent with the New York City Police
        Department, for those hired in such title before July 1, 2009, that  was
        purchased  or  transferred  into  the  New York City Police Pension Fund
        (POLICE), as uniformed service for purposes of determining the eligibil-
        ity and amount of POLICE retirement benefits.
 
                 EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                  by Fiscal Year for the first 25 years ($ in Millions)
 
                            Year                NYC
                            2026                8.6
                            2027                7.5
                            2028                7.3
                            2029                7.0
                            2030                6.8
                            2031                (3.2)
                            2032                (3.4)
                            2033                (3.4)
                            2034                (2.9)
                            2035                (2.4)
                            2036                (2.4)
                            2037                (2.4)
                            2038                (2.2)
                            2039                (1.8)
                            2040                (1.6)
                            2041                (1.4)
                            2042                (1.1)
                            2043                (0.9)
                            2044                (0.8)
                            2045                (0.6)
                            2046                (0.5)
                            2047                (0.4)
                            2048                (0.3)
                            2049                (0.2)
                            2050                (0.1)
 
          Employer Contribution impact beyond Fiscal Year 2050 is not shown.
          The entire increase (decrease) in employer contributions will be allo-
        cated to New York City.

        S. 6988--A                          3
 
          PRESENT VALUE OF BENEFITS:  The  Present  Value  of  Benefits  is  the
        discounted  expected  value  of  benefits paid to current members if all
        assumptions are met, including future service accrual and pay increases.
        Future new hires are not included in this present value.
 
                 INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
                           as of June 30, 2024 ($ in Millions)
                            Present Value (PV)                 NYC
                            (1) PV of Employer Contributions:  15.0
                            (2) PV of Employee Contributions:  (0.4)
                            Total PV of Benefits (1) + (2):    14.6
 
          UNFUNDED  ACCRUED  LIABILITY  (UAL): Actuarial Accrued Liabilities are
        the portion of the Present Value of Benefits allocated to past  service.
        Changes  in UAL were amortized over the expected remaining working life-
        time of those impacted using level dollar payments.
 
                       AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                          NYC
                            Increase (Decrease) in UAL:   38.2 M
                            Number of Payments:           5
                            Amortization Payment:         9.6 M
 
          CENSUS DATA: The estimates presented herein are based  on  preliminary
        census data collected as of June 30, 2024 and was supplemented with data
        previously  provided  by  the  New  York  City Police Department and the
        Police Benevolent Association. The census data for  the  impacted  popu-
        lation is summarized below.
 
                                                               POLICE
                       Active Members
                       - Number Count:                         211
                       - Average Age:                          44.9
                       - Average Service:                      19.4
                       - Average Traffic Enforcement Service:  4.6
                       - Average Salary:                       150,200
 
          IMPACT ON MEMBER BENEFITS: Currently, Tier 2 members of POLICE receive
        a  benefit  based  on  75% of 1/60th times the member's average earnings
        over their last five years of service for  each  year  of  non-uniformed
        civilian  service, such as prior traffic enforcement agent service. Tier
        3 members generally receive  no  additional  benefit  for  non-uniformed
        civilian service.
          Under  the  proposed legislation, periods of qualifying prior non-uni-
        formed service rendered as a traffic enforcement agent (for those  hired
        in  such  title before July 1, 2009), that are purchased or transferred,
        would be classified as Allowable Service in the police force and  there-
        fore  be  included  in  the minimum service required for eligibility and
        payment of an unreduced service retirement benefit for all tiers.
          For purposes of this  Fiscal  Note,  it  has  been  assumed  that  the
        proposed legislation would not allow for tier reinstatement for impacted
        members.   To the extent that tier reinstatement would be allowed, costs
        would be higher.
          ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
        calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
        of the impacted retirement systems.

        S. 6988--A                          4
 
          To determine the impact of the elective nature of the proposed  legis-
        lation,  a  subgroup  of  eligible members was developed based on who is
        assumed to benefit actuarially by comparing the net present value impact
        of future employer costs of each member's benefit before and  after  the
        transfer or purchase of traffic enforcement agent service.
          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). This Fiscal Note does not reflect any chapter
        laws that may have been enacted during the current legislative session.
          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 2025-47 dated April 25,
        2025 was prepared by the Chief Actuary for the New York City  Retirement
        Systems  and  Pension Funds and is intended for use only during the 2025
        Legislative Session.
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