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S07843 Summary:

BILL NOS07843
 
SAME ASSAME AS A08674
 
SPONSORKAVANAGH
 
COSPNSRJACKSON
 
MLTSPNSR
 
Amd §§440, 444, 445, 613 & 603; add §§445-j & 604-k, R & SS L; amd §13-125.2, NYC Ad Cd
 
Establishes a twenty-five year retirement program for members of the NYC employees' retirement system employed as water supply police; provides for employer pick-up of certain additional member contributions required to be made by certain participants in the 25-year retirement programs.
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S07843 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7843
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                       May 9, 2025
                                       ___________
 
        Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
 
        AN ACT to amend the retirement and social security law and the  adminis-
          trative code of the city of New York, in relation to the establishment
          of  twenty-five  year  retirement programs for members of the New York
          city employees' retirement system employed as water supply police; and
          in relation to providing for employer pick up, pursuant to  provisions
          of  the  internal  revenue code, of certain additional member contrib-
          utions required to be made by certain participants in the  twenty-five
          year  retirement  programs;  and  providing  for the repeal of certain
          provisions upon expiration thereof
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision b of section 440 of the retirement and social
     2  security law, as amended by chapter 682 of the laws of 2003, is  amended
     3  to read as follows:
     4    b.  The  provisions  of  this article shall not be construed to extend
     5  coverage to an employee not  otherwise  eligible  for  membership  in  a
     6  retirement system or to provide an increase in benefits to a member of a
     7  retirement  system other than as provided by section four hundred forty-
     8  five-d, or section four hundred forty-five-f, [or] section four  hundred
     9  forty-five-h, section four hundred forty-five-j, or section four hundred
    10  forty-eight of this article.
    11    § 2. Subdivision a of section 444 of the retirement and social securi-
    12  ty  law,  as amended by section 141 of subpart B of part C of chapter 62
    13  of the laws of 2011, is amended to read as follows:
    14    a. Except as provided in subdivision c of section four hundred  forty-
    15  five-a  of  this  article,  subdivision c of section four hundred forty-
    16  five-b of this article, subdivision c of  section  four  hundred  forty-
    17  five-c   of   this  article,  subdivision  c  of  section  four  hundred
    18  forty-five-d of this article as added by chapter four  hundred  seventy-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11091-02-5

        S. 7843                             2
 
     1  two  of  the  laws  of  nineteen  hundred  ninety-five, subdivision c of
     2  section four hundred forty-five-e of  this  article,  subdivision  c  of
     3  section  four  hundred forty-five-f of this article and subdivision c of
     4  section  four hundred forty-five-h of this article, and subdivision c of
     5  section four hundred forty-five-j of this article, the  maximum  retire-
     6  ment benefit computed without optional modification provided to a member
     7  of a retirement system who is subject to the provisions of this article,
     8  other  than  a  police officer, a firefighter, an investigator member of
     9  the New  York  city  employees'  retirement  system,  a  member  of  the
    10  uniformed  personnel  in  institutions under the jurisdiction of the New
    11  York city department of correction who receives a  performance  of  duty
    12  disability  retirement allowance, a member of the uniformed personnel in
    13  institutions under the jurisdiction of the department of corrections and
    14  community supervision or a security  hospital  treatment  assistant,  as
    15  those  terms are defined in subdivision i of section eighty-nine of this
    16  chapter, who receives a performance of duty disability retirement allow-
    17  ance, a member of a teachers' retirement system, New York  city  employ-
    18  ees'  retirement  system,  New  York  city board of education retirement
    19  system or a member of the New York state and local employees' retirement
    20  system or a member of the New York city employees' retirement system  or
    21  New York city board of education retirement system employed as a special
    22  officer,  parking  control specialist, school safety agent, campus peace
    23  officer, taxi and limousine  inspector  [or],  a  police  communications
    24  member,  or  a  member  of  the  water  supply police and who receives a
    25  performance of duty disability pension,  from  funds  other  than  those
    26  based on a member's own or increased-take-home-pay contributions, shall,
    27  before  any  reduction  for early retirement, be sixty per centum of the
    28  first fifteen thousand three hundred dollars of  final  average  salary,
    29  and  fifty per centum of final average salary in excess of fifteen thou-
    30  sand three hundred dollars, and forty per centum of final average salary
    31  in excess of twenty-seven  thousand  three  hundred  dollars,  provided,
    32  however,  that  the  benefits  provided by subdivision c of section four
    33  hundred forty-five-d of this article as added by  chapter  four  hundred
    34  seventy-two  of  the laws of nineteen hundred ninety-five based upon the
    35  additional member  contributions  required  by  subdivision  d  of  such
    36  section  four  hundred  forty-five-d  shall  be  subject  to the maximum
    37  retirement benefit computations set forth in this section.  The  maximum
    38  retirement  benefit  computed without optional modification payable to a
    39  police officer, an investigator member of the New York  city  employees'
    40  retirement  system  or  a  firefighter  shall  equal  that  payable upon
    41  completion of thirty years of service, except that the  maximum  service
    42  retirement  benefit  computed  without optional modification shall equal
    43  that payable upon completion of thirty-two years of service.
    44    § 3. Subdivision a of section 445 of the retirement and social securi-
    45  ty law, as amended by chapter 714 of the laws of  2023,  is  amended  to
    46  read as follows:
    47    a.  No  member of a retirement system who is subject to the provisions
    48  of this article shall retire without regard to age, exclusive of retire-
    49  ment for disability, unless [he or she] such member is a police officer,
    50  an investigator member  of  the  New  York  city  employees'  retirement
    51  system,  firefighter, correction officer, a qualifying member as defined
    52  in section eighty-nine-t of  this  chapter,  as  added  by  chapter  six
    53  hundred  fifty-seven  of  the laws of nineteen hundred ninety-eight, [of
    54  this chapter,] sanitation worker, a special officer  (including  persons
    55  employed by the city of New York in the title urban park ranger or asso-
    56  ciate urban park ranger), school safety agent, campus peace officer or a

        S. 7843                             3
 
     1  taxi  and  limousine  commission  inspector  member of the New York city
     2  employees' retirement system or the New York  city  board  of  education
     3  retirement  system,  a dispatcher member of the New York city employees'
     4  retirement  system,  a police communications member of the New York city
     5  employees' retirement system, a member of the water supply police  in  a
     6  position  referred  to  in  paragraph  (o) of subdivision thirty-four of
     7  section 1.20 of the criminal procedure law, an EMT  member  of  the  New
     8  York  city  employees' retirement system, a deputy sheriff member of the
     9  New York city employees' retirement system, a correction officer of  the
    10  Westchester  county  correction department as defined in section eighty-
    11  nine-e of this chapter or employed in Suffolk county as a peace officer,
    12  as defined in section eighty-nine-s of this chapter, as added by chapter
    13  five hundred eighty-eight of the laws of nineteen hundred  ninety-seven,
    14  [of  this  chapter,] employed in Suffolk county as a correction officer,
    15  as defined in section eighty-nine-f of  this  chapter,  or  employed  in
    16  Nassau  county  as  a  correction officer, uniformed correction division
    17  personnel, sheriff,  undersheriff  or  deputy  sheriff,  as  defined  in
    18  section  eighty-nine-g  of this chapter, or employed in Nassau county as
    19  an    ambulance    medical    technician,    an    ambulance     medical
    20  technician/supervisor or a member who performs ambulance medical techni-
    21  cian  related  services, or a police medic, police medic supervisor or a
    22  member who performs police medic related services, as defined in section
    23  eighty-nine-s of this chapter, as amended by chapter five hundred seven-
    24  ty-eight of the laws of nineteen hundred ninety-eight,  [of  this  chap-
    25  ter,]  or  employed  in  Nassau county as a peace officer, as defined in
    26  section eighty-nine-s of this chapter, as added by chapter five  hundred
    27  ninety-five of the laws of nineteen hundred ninety-seven, [of this chap-
    28  ter,]  or  employed  in Albany county as a sheriff, undersheriff, deputy
    29  sheriff, correction officer or identification  officer,  as  defined  in
    30  section  eighty-nine-h  of  this  chapter or is employed in St. Lawrence
    31  county as a sheriff, undersheriff, deputy sheriff or correction officer,
    32  as defined in section eighty-nine-i of this chapter or  is  employed  in
    33  Orleans  county as a sheriff, undersheriff, deputy sheriff or correction
    34  officer, as defined in section  eighty-nine-l  of  this  chapter  or  is
    35  employed  in Jefferson county as a sheriff, undersheriff, deputy sheriff
    36  or correction officer, as defined in section eighty-nine-j of this chap-
    37  ter or is employed in Onondaga county as a deputy sheriff-jail  division
    38  competitively  appointed  or  as  a  correction  officer,  as defined in
    39  section eighty-nine-k of this chapter or is employed in a  county  which
    40  makes  an  election under subdivision j of section eighty-nine-p of this
    41  chapter as a sheriff, undersheriff, deputy sheriff or correction officer
    42  as defined in such section eighty-nine-p or is employed in Broome County
    43  as a sheriff, undersheriff, deputy sheriff  or  correction  officer,  as
    44  defined  in  section eighty-nine-m of this chapter or is a Monroe county
    45  deputy sheriff-court security, or deputy sheriff-jailor  as  defined  in
    46  section  eighty-nine-n of this chapter, as added by chapter five hundred
    47  ninety-seven of the laws of nineteen hundred ninety-one, [of this  chap-
    48  ter]  or is employed in Greene county as a sheriff, undersheriff, deputy
    49  sheriff or correction officer, as defined in  section  eighty-nine-o  of
    50  this  chapter or is a traffic officer with the town of Elmira as defined
    51  in section eighty-nine-q of this chapter or is employed by Suffolk coun-
    52  ty as a park police officer, as defined in section eighty-nine-r of this
    53  chapter or is a peace officer employed by a county probation  department
    54  as defined in section eighty-nine-t of this chapter, as added by chapter
    55  six hundred three of the laws of nineteen hundred ninety-eight, [of this
    56  chapter]  or is employed in Rockland county as a deputy sheriff-civil as

        S. 7843                             4
 
     1  defined in section eighty-nine-v of this chapter  as  added  by  chapter
     2  four  hundred  forty-one of the laws of two thousand one, or is employed
     3  in Rockland county as  a  superior  correction  officer  as  defined  in
     4  section  eighty-nine-v  of this chapter as added by chapter five hundred
     5  fifty-six of the laws of two thousand one or is a paramedic employed  by
     6  the  police  department  in  the town of Tonawanda and retires under the
     7  provisions of section eighty-nine-v of this chapter, as added by chapter
     8  four hundred seventy-two of the laws of two thousand one, or is a county
     9  fire marshal, supervising fire marshal,  fire  marshal,  assistant  fire
    10  marshal,  assistant  chief  fire  marshal,  chief fire marshal, division
    11  supervising fire marshal or fire marshal trainee employed by the  county
    12  of  Nassau  as  defined  in  section eighty-nine-w of this chapter or is
    13  employed in Monroe county  as  a  deputy  sheriff-civil  as  defined  in
    14  section  eighty-nine-x of this chapter, employed as an emergency medical
    15  technician, critical care technician, advanced emergency medical techni-
    16  cian, paramedic or supervisor of such titles in a participating  Suffolk
    17  county  fire district as defined in section eighty-nine-ss of this chap-
    18  ter, and is in a plan which permits immediate retirement upon completion
    19  of a specified period of service without  regard  to  age.    Except  as
    20  provided  in  subdivision c of section four hundred forty-five-a of this
    21  article, subdivision c of section  four  hundred  forty-five-b  of  this
    22  article,  subdivision  c  of  section  four hundred forty-five-c of this
    23  article, subdivision c of section  four  hundred  forty-five-d  of  this
    24  article,  subdivision  c  of  section  four hundred forty-five-e of this
    25  article, subdivision c of section  four  hundred  forty-five-f  of  this
    26  article  [and],  subdivision  c  of section four hundred forty-five-h of
    27  this article, and subdivision c of section four hundred forty-five-j  of
    28  this article, a member in such a plan and such an occupation, other than
    29  a  police officer or investigator member of the New York city employees'
    30  retirement system or a firefighter, shall not  be  permitted  to  retire
    31  prior  to  the  completion  of  twenty-five  years  of credited service;
    32  provided, however, if such a member in such an occupation is in  a  plan
    33  which  permits  retirement  upon  completion  of twenty years of service
    34  regardless of age, [he or she] such member may retire upon completion of
    35  twenty years of credited service and prior to the completion of  twenty-
    36  five years of service, but in such event the benefit provided from funds
    37  other  than  those  based on such a member's own contributions shall not
    38  exceed two per centum of final average salary per each year of  credited
    39  service.
    40    § 4. The retirement and social security law is amended by adding a new
    41  section 445-j to read as follows:
    42    § 445-j. Optional twenty-five year improved benefit retirement program
    43  for water supply police members. a. Definitions. The following words and
    44  phrases as used in this section shall have the following meanings unless
    45  a different meaning is plainly required by the context.
    46    1. "Retirement system" shall mean the New York city employees' retire-
    47  ment system.
    48    2.  "Water supply police member" shall mean a member of the retirement
    49  system who is subject to the provisions of this article, who is employed
    50  by the city of New York in a position referred to by  paragraph  (o)  of
    51  subdivision thirty-four of section 1.20 of the criminal procedure law.
    52    3.  "Twenty-five  year improved benefit retirement program" shall mean
    53  all the terms and conditions of this section.
    54    4. "Starting date of the twenty-five year improved benefit  retirement
    55  program"  shall mean the effective date of this section, as such date is
    56  certified pursuant to section forty-one of the legislative law.

        S. 7843                             5
 
     1    5. "Participant in the twenty-five year  improved  benefit  retirement
     2  program" shall mean any water supply police member who, under the appli-
     3  cable  provisions  of  subdivision b of this section, is entitled to the
     4  rights, benefits and privileges and is subject to the obligations of the
     5  twenty-five  year  improved benefit retirement program, as applicable to
     6  such member.
     7    6. "Administrative code" shall mean the  administrative  code  of  the
     8  city of New York.
     9    7.  "Accumulated  deductions"  shall  mean  accumulated  deductions as
    10  defined in subdivision eleven of section 13-101  of  the  administrative
    11  code of the city of New York.
    12    8. "Optional retirement provisions" shall mean the right to retire and
    13  receive a retirement allowance under this section upon the completion of
    14  twenty-five years of credited service.
    15    b.  Election  of twenty-five year improved benefit retirement program.
    16  1. Subject to the provisions of paragraphs five and six of this subdivi-
    17  sion, any person who is a water supply police  member  on  the  starting
    18  date  of  the  twenty-five  year improved benefit retirement program may
    19  elect to become a participant in the twenty-five year  improved  benefit
    20  retirement  program by filing, within one hundred eighty days after such
    21  starting date, a duly executed application for such  participation  with
    22  the  retirement  system,  provided  such  person  is such a water supply
    23  police member on the date such application is filed.
    24    2. Subject to the provisions of paragraphs five and six of this subdi-
    25  vision, any person who becomes a water supply police  member  after  the
    26  starting  date  of  the  twenty-five  year  improved  benefit retirement
    27  program may elect to  become  a  participant  in  the  twenty-five  year
    28  improved benefit retirement program by filing, within one hundred eighty
    29  days  after  becoming such a water supply police member, a duly executed
    30  application for such participation with the retirement system,  provided
    31  such person is such a water supply police member on the date such appli-
    32  cation is filed.
    33    3.  Any  election to be a participant in the twenty-five year improved
    34  benefit retirement program shall be irrevocable.
    35    4. Where any participant in  the  twenty-five  year  improved  benefit
    36  retirement  program  shall  cease  to  hold a position as a water supply
    37  police member, such person shall cease to be  such  a  participant  and,
    38  during  any  period  in  which  such a person does not hold such a water
    39  supply police position, such person shall not be a  participant  in  the
    40  twenty-five  year  improved  benefit retirement program and shall not be
    41  eligible for the benefits of subdivision c of this section.
    42    5. Where any participant in  the  twenty-five  year  improved  benefit
    43  retirement  program  terminates  service as a water supply police member
    44  and returns to such service as a water supply police member at  a  later
    45  date, such person shall again become such a participant on that date.
    46    6.  Notwithstanding  any  other  provision of law to the contrary, any
    47  person who is eligible to become a participant in the  twenty-five  year
    48  improved  benefit retirement program pursuant to paragraph one or two of
    49  this subdivision for the full one hundred eighty day period provided for
    50  in such applicable paragraph  and  who  fails  to  timely  file  a  duly
    51  executed  application for such participation with the retirement system,
    52  shall not thereafter  be  eligible  to  become  a  participant  in  such
    53  program.
    54    c. Service retirement benefits. Notwithstanding any other provision of
    55  law  to  the  contrary,  where  a  participant  in  the twenty-five year
    56  improved benefit retirement program, who is otherwise  qualified  for  a

        S. 7843                             6
 
     1  retirement  allowance pursuant to the optional retirement provisions set
     2  forth in subdivision a of this section, has made and/or paid, while such
     3  person is a water supply police member, all additional  member  contrib-
     4  utions  and interest (if any) required by subdivision d of this section,
     5  then:
     6    1. that participant, while such person remains  a  participant,  shall
     7  not  be  subject  to  the  provisions  of  subdivision a of section four
     8  hundred forty-five of this article; and
     9    2. if  that  participant,  while  such  a  participant,  retires  from
    10  service,  such  person shall not be subject to the provisions of section
    11  four hundred forty-four of this article; and
    12    3. such person's retirement allowance shall be an amount,  on  account
    13  of  the  required  minimum period of service, equal to the sum of (i) an
    14  annuity which shall be  the  actuarial  equivalent  of  the  accumulated
    15  deductions from such person's pay during such period, (ii) a pension for
    16  increased-take-home-pay  which  shall be the actuarial equivalent of the
    17  reserve for increased-take-home-pay to which such person may be entitled
    18  for such period, and (iii) a pension which, when added to  such  annuity
    19  and  such  pension  for  increased-take-home-pay,  produces a retirement
    20  allowance equal to fifty percent of such person's final average  salary,
    21  plus  an  amount for each additional year of allowable service, or frac-
    22  tion thereof, beyond such required minimum period of  service  equal  to
    23  two percent of such person's final average salary; and
    24    4.  the maximum retirement benefit computed without optional modifica-
    25  tion payable to that  participant  upon  such  person's  retirement  for
    26  service  as  such a participant shall equal that payable upon completion
    27  of thirty years of service.
    28    d. Additional member contributions.  1.  In  addition  to  the  member
    29  contributions  required  pursuant to section 13-125 or section 13-162 of
    30  the administrative code of the city of New York, each participant in the
    31  twenty-five year improved benefit retirement program  shall  contribute,
    32  subject to the applicable provisions of section 13-125.2 of the adminis-
    33  trative  code of the city of New York, an additional six percent of such
    34  person's compensation earned from (i) all credited service, as a partic-
    35  ipant in the  twenty-five  year  improved  benefit  retirement  program,
    36  rendered  on and after the starting date of the improved benefit retire-
    37  ment program, and (ii) all credited service after such person ceases  to
    38  be  a  participant,  but  before such person again becomes a participant
    39  pursuant to paragraph five of subdivision b of this section.  A  partic-
    40  ipant  in the twenty-five year improved benefit retirement program shall
    41  contribute additional member contributions until the later  of  (i)  the
    42  date  as  of  which  such  person is eligible to retire with twenty-five
    43  years of credited service under such retirement  program,  or  (ii)  the
    44  first  anniversary of the starting date of the twenty-five year improved
    45  benefit retirement program. The  additional  contributions  required  by
    46  this  paragraph  shall  be  in  lieu  of additional member contributions
    47  required by subdivision d of section four hundred forty-five-d  of  this
    48  article,  as added by chapter ninety-six of the laws of nineteen hundred
    49  ninety-five, and no member paying additional contributions  pursuant  to
    50  this  section shall be required to pay additional contributions pursuant
    51  to such subdivision d of section four hundred forty-five-d of this arti-
    52  cle.
    53    2. Commencing with the first full payroll  period  after  each  person
    54  becomes  a  participant in the twenty-five year improved benefit retire-
    55  ment program, additional member contributions at the rate  specified  in
    56  paragraph  one  of  this  subdivision  shall be deducted, subject to the

        S. 7843                             7
 
     1  applicable provisions of section 13-125.2 of the administrative code  of
     2  the  city of New York, from the compensation of such participant on each
     3  and every payroll of such participant for each and every payroll  period
     4  for which such person is such a participant.
     5    3.  (i)  Subject  to the provisions of subparagraph (ii) of this para-
     6  graph, where any additional member contributions required  by  paragraph
     7  one  of this subdivision are not paid by deductions from a participant's
     8  compensation pursuant to paragraph two of this subdivision:
     9    (A) that participant shall be charged with a  contribution  deficiency
    10  consisting  of  such  unpaid  amounts,  together  with interest thereon,
    11  compounded annually; and
    12    (B) such interest on each amount  of  undeducted  contributions  shall
    13  accrue  from  the  end of the payroll period for which such amount would
    14  have been deducted from compensation if such person had been  a  partic-
    15  ipant  at  the  beginning of that payroll period and such deductions had
    16  been required for such payroll period until such amount is paid  to  the
    17  retirement system; and
    18    (C)  (1)  interest  on each such amount included in such participant's
    19  contribution deficiency pursuant to this subparagraph  shall  be  calcu-
    20  lated  as if such additional member contributions never had been paid by
    21  such participant, and such interest shall accrue from  the  end  of  the
    22  payroll  period  to  which  an amount of such additional member contrib-
    23  utions is attributable, compounded annually, until such amount  is  paid
    24  to the retirement system.
    25    (2)  the rate of interest to be applied to each such amount during the
    26  period for which interest accrues on that amount shall be equal  to  the
    27  rate  or  rates  of interest required by law to be used during that same
    28  period to credit interest on the accumulated  deductions  of  retirement
    29  system members.
    30    (ii)  Except  as  provided in subparagraph (iii) of this paragraph, no
    31  interest shall be due on any unpaid additional contributions  which  are
    32  not  attributable  to  the period prior to the first full payroll period
    33  referred to in paragraph two of this subdivision.
    34    (iii) Should any person who,  pursuant  to  paragraph  seven  of  this
    35  subdivision,  has withdrawn any additional member contributions (and any
    36  interest paid thereon) again become a  participant  in  the  twenty-five
    37  year  improved  benefit retirement program pursuant to paragraph five of
    38  subdivision b of this section, an appropriate amount shall  be  included
    39  in such participant's contribution deficiency (including interest there-
    40  on as calculated pursuant to subclause two of clause (C) of subparagraph
    41  (i)  of  this  paragraph) for any credited service with respect to which
    42  such  person  received  a  refund  of  additional  member  contributions
    43  (including  any  amount  of  an  unpaid loan balance deemed to have been
    44  returned to such person pursuant to paragraph  seven  of  this  subdivi-
    45  sion), as if such additional member contributions never had been paid.
    46    4. The board of trustees of the retirement system may, consistent with
    47  the  provisions  of  this  subdivision,  promulgate  regulations for the
    48  payment of the additional member contributions required by this subdivi-
    49  sion, and any interest thereon, by a participant in the twenty-five year
    50  improved benefit retirement program (including  the  deduction  of  such
    51  contributions,  and  any  interest  thereon,  from such person's compen-
    52  sation).
    53    5. Where a participant who is otherwise eligible for  service  retire-
    54  ment  pursuant  to  subdivision  c of this section did not, prior to the
    55  effective date of retirement, pay the entire amount  of  a  contribution
    56  deficiency chargeable to such person pursuant to paragraph three of this

        S. 7843                             8
 
     1  subdivision, or repay the entire amount of a loan of such person's addi-
     2  tional member contributions pursuant to paragraph eight of this subdivi-
     3  sion (including accrued interest on such loan), that participant, never-
     4  theless,  shall  be eligible to retire pursuant to subdivision c of this
     5  section, provided, however, that where such participant is not  entitled
     6  to  a  refund  of  additional member contributions pursuant to paragraph
     7  seven of this subdivision, such participant's service retirement benefit
     8  calculated pursuant to the applicable provisions  of  subdivision  c  of
     9  this  section  shall be reduced by a life annuity (calculated in accord-
    10  ance with the method set forth in subdivision i of section  six  hundred
    11  thirteen-b of this chapter) which is actuarially equivalent to:
    12    (i)  the  amount  of  any unpaid contribution deficiency chargeable to
    13  such member pursuant to paragraph three of this subdivision; plus
    14    (ii) the amount of any unpaid balance of a loan of such person's addi-
    15  tional member contributions pursuant to paragraph eight of this subdivi-
    16  sion (including accrued interest on such loan).
    17    6. Subject to the provisions of paragraph five  of  this  subdivision,
    18  where  a  participant  has  not paid in full any contribution deficiency
    19  chargeable to such person pursuant to paragraph three of  this  subdivi-
    20  sion,  and  a  benefit,  other  than  a refund of a member's accumulated
    21  deductions or a refund of additional member  contributions  pursuant  to
    22  paragraph  seven  of this subdivision, becomes payable by the retirement
    23  system to the participant or to such person's designated beneficiary  or
    24  estate,  the  actuarial  equivalent  of  any such unpaid amount shall be
    25  deducted from the benefit otherwise payable.
    26    7. (i) All additional member contributions required by  this  subdivi-
    27  sion  (and  any  interest  thereon) which are received by the retirement
    28  system shall be paid into its contingent reserve fund and shall  be  the
    29  property  of the retirement system. Such additional member contributions
    30  (and any interest thereon) shall not for any purpose  be  deemed  to  be
    31  member  contributions  or  accumulated  deductions  of  a  member of the
    32  retirement system under section 13-125 or section 13-162 of the adminis-
    33  trative code of the city of New York while such person is a  participant
    34  in  the  twenty-five  year improved benefit retirement program or other-
    35  wise.
    36    (ii) Should a participant in the  twenty-five  year  improved  benefit
    37  retirement  program,  who  has rendered less than five years of credited
    38  service cease to hold a position as a water supply police member for any
    39  reason whatsoever, such person's accumulated additional member  contrib-
    40  utions  made  pursuant  to  this subdivision (together with any interest
    41  thereon paid to the retirement system) which  remain  credited  to  such
    42  participant's account may be withdrawn by such person pursuant to proce-
    43  dures promulgated in regulations of the board of trustees of the retire-
    44  ment  system,  together  with  interest  thereon at the rate of interest
    45  required by law to  be  used  to  credit  interest  on  the  accumulated
    46  deductions of retirement system members compounded annually.
    47    (iii)  Notwithstanding any other provision of law to the contrary, (A)
    48  no person shall be permitted to withdraw from the retirement system  any
    49  additional member contributions paid pursuant to this subdivision or any
    50  interest  paid  thereon,  except  pursuant to and in accordance with the
    51  preceding subparagraphs of this paragraph; and (B) no person, while such
    52  person is a participant in the twenty-five year improved benefit retire-
    53  ment program, shall be permitted to withdraw any such additional  member
    54  contributions  or  any  interest  paid  thereon  pursuant  to any of the
    55  preceding subparagraphs of this paragraph or otherwise.

        S. 7843                             9
 
     1    8. A participant in the twenty-five year improved  benefit  retirement
     2  program  shall  be  permitted  to  borrow  from such person's additional
     3  member contributions, including any interest  paid  thereon,  which  are
     4  credited  to  the  additional contributions account established for such
     5  participant  in  the  contingent  reserve fund of the retirement system.
     6  The borrowing from such additional member contributions pursuant to this
     7  paragraph shall be governed by the same rights, privileges,  obligations
     8  and procedures set forth in section six hundred thirteen-b of this chap-
     9  ter  which govern the borrowing by members subject to article fifteen of
    10  this chapter of  member  contributions  made  pursuant  to  section  six
    11  hundred  thirteen  of this chapter. The board of trustees of the retire-
    12  ment system may, consistent with the provisions of this subdivision  and
    13  the provisions of section six hundred thirteen-b of this chapter as made
    14  applicable  to  this  subdivision,  promulgate regulations governing the
    15  borrowing of such additional member contributions.
    16    9. Wherever a person has an unpaid balance of a loan of such  person's
    17  additional  member  contributions  pursuant  to  paragraph eight of this
    18  subdivision at the time such person becomes entitled to a refund of such
    19  person's additional member contributions pursuant to  subparagraph  (ii)
    20  of  paragraph  seven of this subdivision, the amount of such unpaid loan
    21  balance (including accrued  interest)  shall  be  deemed  to  have  been
    22  returned to such member, and the refund of such additional contributions
    23  shall  be  the  net amount of such contributions, together with interest
    24  thereon in accordance with the provisions of such subparagraph.
    25    10. Notwithstanding any other provision of law to  the  contrary,  the
    26  provisions  of  section one hundred thirty-eight-b of this chapter shall
    27  not be applicable to  the  additional  member  contributions  which  are
    28  required by this subdivision.
    29    11.  Notwithstanding  any  other provision of law to the contrary, the
    30  additional member contributions which are required by  this  subdivision
    31  shall not be reduced under any program for increased-take-home-pay.
    32    § 5. The retirement and social security law is amended by adding a new
    33  section 604-k to read as follows:
    34    §  604-k.  Twenty-five year retirement program for water supply police
    35  members. a.  Definitions. The following words and  phrases  as  used  in
    36  this  section shall have the following meanings unless a different mean-
    37  ing is plainly required by the context.
    38    1. "Water supply police member" shall mean a member of the  retirement
    39  system who is employed by the city of New York in a position referred to
    40  by paragraph (o) of subdivision thirty-four of section 1.20 of the crim-
    41  inal procedure law.
    42    2.  "Twenty-five year retirement program" shall mean all the terms and
    43  conditions of this section.
    44    3. "Starting date of the twenty-five year  retirement  program"  shall
    45  mean  the  effective  date  of  this  section, as such date is certified
    46  pursuant to section forty-one of the legislative law.
    47    4. "Participant in the twenty-five year retirement program" shall mean
    48  any water supply police member who, under the applicable  provisions  of
    49  subdivision  b  of this section, is entitled to the rights, benefits and
    50  privileges and is subject to the obligations  of  the  twenty-five  year
    51  retirement program, as applicable to such person.
    52    5.  "Discontinued  member" shall mean a participant in the twenty-five
    53  year retirement program who, while such person was a water supply police
    54  member, discontinued service as such a member  and  has  a  right  to  a
    55  deferred vested benefit under subdivision d of this section.

        S. 7843                            10
 
     1    6.  "Administrative  code"  shall  mean the administrative code of the
     2  city of New York.
     3    b.  Participation  in twenty-five year retirement program. 1.  Subject
     4  to the provisions of paragraphs six and seven of this  subdivision,  any
     5  person  who  is a water supply police member on the starting date of the
     6  twenty-five year retirement program and who,  as  such  a  water  supply
     7  police member or otherwise last became subject to the provisions of this
     8  article  prior  to such starting date, may elect to become a participant
     9  in the twenty-five year retirement program by filing, within one hundred
    10  eighty days after the starting date of the twenty-five  year  retirement
    11  program,  a  duly  executed  application for such participation with the
    12  retirement system of which such person is a member, provided such person
    13  is such a water supply police member on the  date  such  application  is
    14  filed.
    15    2.  Subject  to  the  provisions  of  paragraphs six and seven of this
    16  subdivision, any person who becomes a water supply police  member  after
    17  the starting date of the twenty-five year retirement program and who, as
    18  such  a  water supply police member or otherwise, last became subject to
    19  the provisions of this article prior to such starting date, may elect to
    20  become a participant in  the  twenty-five  year  retirement  program  by
    21  filing,  within  one  hundred  eighty  days  after becoming such a water
    22  supply police member, a duly executed application for such participation
    23  with the retirement system for which such person is a  member,  provided
    24  such person is such a water supply police member on the date such appli-
    25  cation is filed.
    26    3. Any election to be a participant in the twenty-five year retirement
    27  program shall be irrevocable.
    28    4.  Each  water  supply  police  member  who  becomes  subject  to the
    29  provisions of this article on or after the starting date of the  twenty-
    30  five  year  retirement program shall become a participant in the twenty-
    31  five year retirement program on the date  such  person  becomes  such  a
    32  water  supply police member. Provided, however, a person subject to this
    33  paragraph who has exceeded age thirty upon employment as such  a  member
    34  shall  be  exempt  from participation in the twenty-five year retirement
    35  program if such person elects  not  to  participate  by  filing  a  duly
    36  executed  form with the retirement system within one hundred eighty days
    37  of becoming such a member.
    38    5. Where any participant in the twenty-five  year  retirement  program
    39  shall  cease  to  be  employed by the city of New York as a water supply
    40  police member, such person shall cease to be  such  a  participant  and,
    41  during  any  period in which such person is not so employed, such person
    42  shall not be a participant in the twenty-five  year  retirement  program
    43  and  shall  not  be  eligible  for the benefits of subdivision c of this
    44  section.
    45    6. Where any participant in the twenty-five  year  retirement  program
    46  terminates  service  as a water supply police member and returns to such
    47  service as a water supply police member at a  later  date,  such  person
    48  shall again become such a participant on that date.
    49    7.  Notwithstanding  any  other  provision of law to the contrary, any
    50  person who is eligible to elect to become a participant in  the  twenty-
    51  five  year  retirement  program pursuant to paragraph one or two of this
    52  subdivision for the full one hundred eighty day period provided  for  in
    53  such  applicable  paragraph and who fails to timely file a duly executed
    54  application for such participation with the retirement system, shall not
    55  thereafter be eligible to become a participant in such program.

        S. 7843                            11
 
     1    c. Service retirement benefits. 1. A participant  in  the  twenty-five
     2  year retirement program:
     3    (i)  who  has completed twenty-five or more years of credited service;
     4  and
     5    (ii) who has paid, before the effective date of retirement, all  addi-
     6  tional  member  contributions and interest (if any) required by subdivi-
     7  sion e of this section; and
     8    (iii) who files with the retirement system of which such person  is  a
     9  member an application for service retirement setting forth at that time,
    10  not  less than thirty days subsequent to the execution and filing there-
    11  of, such person desires to be retired; and
    12    (iv) who shall be a participant in  the  twenty-five  year  retirement
    13  program  at the time so specified for such person's retirement; shall be
    14  retired pursuant to the  provisions  of  this  section  affording  early
    15  service retirement.
    16    2. (i) Notwithstanding any other provision of law to the contrary, and
    17  subject  to  the  provisions  of  paragraph six of subdivision e of this
    18  section, the early service retirement benefit for  participants  in  the
    19  twenty-five year retirement program who retire pursuant to paragraph one
    20  of this subdivision shall be a retirement allowance consisting of:
    21    (A)  an  amount, on account of the required minimum period of service,
    22  equal to fifty percent of such person's final average salary; plus
    23    (B) an amount on account of credited  service,  or  fraction  thereof,
    24  beyond  such  required minimum period of service equal to two percent of
    25  such person's final salary;
    26    (ii)  The  maximum  retirement  allowance  computed  without  optional
    27  modification  payable  pursuant  to  subparagraph  (i) of this paragraph
    28  shall equal that payable upon completion of thirty years of service.
    29    d. Vesting. 1.  A  participant  in  the  twenty-five  year  retirement
    30  program:
    31    (i)  who  discontinues  service  as  such a participant, other than by
    32  death or retirement; and
    33    (ii) who prior to such discontinuance, completed five  but  less  than
    34  twenty-five years of credited service; and
    35    (iii) who, subject to the provisions of paragraph seven of subdivision
    36  e  of  this  section,  has paid, prior to such discontinuance, all addi-
    37  tional member contributions and interest (if any) required  by  subdivi-
    38  sion e of this section; and
    39    (iv)  who  does not withdraw in whole or in part such person's accumu-
    40  lated member contributions pursuant to section six hundred  thirteen  of
    41  this  article  unless  such  participant  thereafter  returns  to public
    42  service and repays the amounts so  withdrawn,  together  with  interest,
    43  pursuant  to  such  section  six  hundred thirteen; shall be entitled to
    44  receive a deferred vested benefit as provided in this subdivision.
    45    2. (i) Upon such discontinuance under the conditions and in compliance
    46  with the provisions of paragraph one of this subdivision, such  deferred
    47  vested benefit shall vest automatically.
    48    (ii)  Such vested benefit shall become payable on the earliest date on
    49  which such discontinued member could have retired for  service  if  such
    50  discontinuance had not occurred.
    51    3.  Subject  to  the provisions of paragraph seven of subdivision e of
    52  this section, such deferred vested benefit shall be a retirement  allow-
    53  ance  consisting  of an amount equal to two percent of such discontinued
    54  member's final average salary, multiplied by  the  number  of  years  of
    55  credited service.

        S. 7843                            12
 
     1    e.  Additional  member  contributions.  1.  In  addition to the member
     2  contributions required by section six hundred thirteen of this  article,
     3  each  participant  in  the  twenty-five  year  retirement  program shall
     4  contribute to the retirement system of which such  person  is  a  member
     5  (subject  to  the  applicable provisions of subdivision d of section six
     6  hundred thirteen of this article) an  additional  six  percent  of  such
     7  person's compensation earned from (i) all credited service, as a partic-
     8  ipant  in  the twenty-five year retirement program, rendered on or after
     9  the starting date of the twenty-five year retirement program,  and  (ii)
    10  all  credited  service after such person ceases to be a participant, but
    11  before such person again becomes a participant pursuant to paragraph six
    12  of subdivision b of this section. The additional contributions  required
    13  by  this subdivision shall be in lieu of additional member contributions
    14  required by subdivision d of section six hundred four-c of this article,
    15  as added by chapter ninety-six of the laws of nineteen  hundred  ninety-
    16  five,  and no member making contributions pursuant to this section shall
    17  be required to make contributions pursuant  to  such  subdivision  d  of
    18  section six hundred four-c of this article.
    19    2.  A  participant  in  the  twenty-five year retirement program shall
    20  contribute additional member contributions until the later  of  (i)  the
    21  first  anniversary  of the starting date of the twenty-five year retire-
    22  ment program, or (ii) the date on which  such  person  completes  thirty
    23  years of credited service as a water supply police member.
    24    3.  Commencing  with  the  first full payroll period after each person
    25  becomes a participant in the twenty-five year retirement program,  addi-
    26  tional  member  contributions  at the rate specified in paragraph one of
    27  this subdivision shall be deducted (subject to the applicable provisions
    28  of subdivision d of section six hundred thirteen of this  article)  from
    29  the  compensation  of such participant on each and every payroll of such
    30  participant for each and every payroll period for which such  person  is
    31  such a participant.
    32    4.  (i)  Each  participant  in the twenty-five year retirement program
    33  shall be charged with a contribution deficiency consisting of the  total
    34  amounts  of  additional  member contributions such person is required to
    35  make pursuant to paragraphs one and two of this  subdivision  which  are
    36  not deducted from such person's compensation pursuant to paragraph three
    37  of  this subdivision, if any, together with interest thereon, compounded
    38  annually, and computed in accordance with  the  provisions  of  subpara-
    39  graphs (ii) and (iii) of this paragraph.
    40    (ii)  (A)  The interest required to be paid on each such amount speci-
    41  fied in subparagraph (i) of this paragraph shall accrue from the end  of
    42  the  payroll  period for which such amount would have been deducted from
    43  compensation if such person had been a participant at the  beginning  of
    44  that  payroll  period  and  such  deduction  had  been required for such
    45  payroll period, until such amount is paid to the retirement system.
    46    (B) The rate of interest to be applied to each such amount during  the
    47  period  for  which interest accrues on that amount shall be equal to the
    48  rate or rates of interest required by law to be used  during  that  same
    49  period  to  credit  interest on the accumulated deductions of retirement
    50  system members.
    51    (iii) Except as otherwise provided in paragraph five of this  subdivi-
    52  sion,  no interest shall be due on any unpaid additional member contrib-
    53  utions which are not attributable to a period prior to  the  first  full
    54  payroll period referred to in paragraph three of this subdivision.
    55    5.  (i)  Should any person who, pursuant to subparagraph (ii) of para-
    56  graph ten of this subdivision, has received a refund  of  such  person's

        S. 7843                            13
 
     1  additional  member  contributions  including  any  interest paid on such
     2  contributions, again  become  a  participant  in  the  twenty-five  year
     3  retirement  program  pursuant  to paragraph six of subdivision b of this
     4  section,  an  appropriate amount shall be included in such participant's
     5  contribution deficiency (including interest thereon as calculated pursu-
     6  ant to subparagraph (ii) of this paragraph) for any credited service for
     7  which such person received a refund of such additional  member  contrib-
     8  utions  (including  any  amount of an unpaid loan balance deemed to have
     9  been returned to such person pursuant to paragraph twelve of this subdi-
    10  vision), as if such additional member contributions never had been paid.
    11    (ii) (A) Interest on a participant's additional  member  contributions
    12  included  in  such  participant's  contribution  deficiency  pursuant to
    13  subparagraph (i) of this paragraph shall be calculated as if such  addi-
    14  tional member contributions had never been paid by such participant, and
    15  such  interest  shall accrue from the end of the payroll period to which
    16  an amount of such additional member contributions is attributable, until
    17  such amount is paid to the retirement system.
    18    (B) The rate of interest to be applied to each such amount during  the
    19  period  for  which interest accrues on that amount shall be five percent
    20  per annum, compounded annually.
    21    6. Where a participant who is otherwise eligible for  service  retire-
    22  ment  pursuant  to  subdivision  c of this section did not, prior to the
    23  effective date of retirement, pay the entire amount  of  a  contribution
    24  deficiency  chargeable  to  such  person pursuant to paragraphs four and
    25  five of this subdivision, or repay the entire amount of a loan  of  such
    26  person's additional member contributions pursuant to paragraph eleven of
    27  this subdivision (including accrued interest on such loan), that partic-
    28  ipant, nevertheless, shall be eligible to retire pursuant to subdivision
    29  c  of  this  section, provided, however, that such participant's service
    30  retirement benefit calculated pursuant to paragraph two of such subdivi-
    31  sion c shall be reduced by a life annuity (calculated in accordance with
    32  the method set forth in subdivision i of section six hundred  thirteen-b
    33  of this article) which is actuarially equivalent to:
    34    (i)  the  amount  of  any unpaid contribution deficiency chargeable to
    35  such member pursuant to paragraphs four and five  of  this  subdivision;
    36  plus
    37    (ii) the amount of any unpaid balance of a loan of such person's addi-
    38  tional  member contributions pursuant to paragraph eleven of this subdi-
    39  vision (including accrued interest on such loan).
    40    7. Where a participant who is otherwise eligible for a vested right to
    41  a deferred benefit pursuant to subdivision d of this  section  did  not,
    42  prior to the date of discontinuance of service, pay the entire amount of
    43  a  contribution  deficiency  chargeable to such person pursuant to para-
    44  graphs four and five of this subdivision, or repay the entire amount  of
    45  a  loan  of  such  person's  additional member contributions pursuant to
    46  paragraph eleven of this subdivision (including accrued interest on such
    47  loan), that participant, nevertheless, shall be eligible  for  a  vested
    48  right  to  a deferred benefit pursuant to subdivision d of this section,
    49  provided, however, that the deferred vested benefit calculated  pursuant
    50  to  paragraph  three  of  such  subdivision d shall be reduced by a life
    51  annuity (calculated in accordance with the method set forth in  subdivi-
    52  sion i of section six hundred thirteen-b of this article) which is actu-
    53  arially equivalent to:
    54    (i)  the  amount  of  any unpaid contribution deficiency chargeable to
    55  such member pursuant to paragraphs four and five  of  this  subdivision;
    56  plus

        S. 7843                            14
 
     1    (ii) the amount of any unpaid balance of a loan of such person's addi-
     2  tional  member contributions pursuant to paragraph eleven of this subdi-
     3  vision (including accrued interest on such loan).
     4    8.  The head of a retirement system which includes participants in the
     5  twenty-five year retirement program in its  membership  may,  consistent
     6  with  the provisions of this subdivision, promulgate regulations for the
     7  payment of such additional member contributions, and any interest there-
     8  on, by such participants (including the deduction of such contributions,
     9  and any interest thereon, from the participant's compensation).
    10    9. Subject to the provisions of  paragraphs  six  and  seven  of  this
    11  subdivision,  where  a participant has not paid in full any contribution
    12  deficiency chargeable to such person pursuant  to  paragraphs  four  and
    13  five  of  this subdivision, and a benefit, other than a refund of member
    14  contributions pursuant to section six hundred thirteen of  this  article
    15  or  a refund of additional member contributions pursuant to subparagraph
    16  (ii) of paragraph ten of this subdivision, becomes  payable  under  this
    17  article to the participant or to such person's designated beneficiary or
    18  estate,  the  actuarial  equivalent  of  any such unpaid amount shall be
    19  deducted from the benefit otherwise payable.
    20    10. (i) Such additional member contributions (and any interest  there-
    21  on)  shall  be  paid  into the contingent reserve fund of the retirement
    22  system of which the participant is  a  member  and  shall  not  for  any
    23  purpose  be  deemed  to  be member contributions or accumulated contrib-
    24  utions of a member under section six hundred thirteen of this article or
    25  otherwise while such person is a participant  in  the  twenty-five  year
    26  retirement program or otherwise.
    27    (ii)  Should  a participant in the twenty-five year retirement program
    28  who has rendered less than five years of credited service cease to  hold
    29  a  position  as  a water supply police member for any reason whatsoever,
    30  such person's accumulated additional member contributions made  pursuant
    31  to  this  subdivision  (together  with  any interest thereon paid to the
    32  retirement system) may be withdrawn by such person  pursuant  to  proce-
    33  dures promulgated in regulations of the board of trustees of the retire-
    34  ment  system, together with interest thereon at the rate of five percent
    35  per annum, compounded annually.
    36    (iii) Notwithstanding any other provision of law to the contrary,  (A)
    37  no  person shall be permitted to withdraw from the retirement system any
    38  additional member contributions paid pursuant to this subdivision or any
    39  interest paid thereon, except pursuant to and  in  accordance  with  the
    40  preceding subparagraphs of this paragraph; and (B) no person, while such
    41  person  is  a  participant  in  the twenty-five year retirement program,
    42  shall be permitted to withdraw any such additional member  contributions
    43  or  any  interest paid thereon pursuant to any of the preceding subpara-
    44  graphs of this paragraph or otherwise.
    45    11. A participant in the twenty-five year retirement program shall  be
    46  permitted  to  borrow from such person's additional member contributions
    47  (including any interest paid thereon) which are credited  to  the  addi-
    48  tional  contributions  account  established  for such participant in the
    49  contingent reserve fund of the retirement system.   The  borrowing  from
    50  such additional member contributions pursuant to this paragraph shall be
    51  governed by the rights, privileges, obligations and procedures set forth
    52  in  section  six  hundred  thirteen-b  of  this article which govern the
    53  borrowing of member contributions made pursuant to section  six  hundred
    54  thirteen of this article. The board of trustees of the retirement system
    55  may,  consistent  with  the  provisions  of  this  subdivision  and  the
    56  provisions of section six hundred thirteen-b of  this  article  as  made

        S. 7843                            15
 
     1  applicable  to  this  subdivision,  promulgate regulations governing the
     2  borrowing of such additional member contributions.
     3    12. Whenever a person has an unpaid balance of a loan of such person's
     4  additional  member  contributions  pursuant  to paragraph eleven of this
     5  subdivision at the time such person becomes entitled to a refund of such
     6  person's additional member contributions pursuant to  subparagraph  (ii)
     7  of  paragraph  ten  of  this subdivision, the amount of such unpaid loan
     8  balance (including accrued  interest)  shall  be  deemed  to  have  been
     9  returned to such member, and the refund of such additional contributions
    10  shall  be  the  net amount of such contributions, together with interest
    11  thereon in accordance with the provisions of such subparagraph (ii).
    12    § 6. Subdivision d of section 613 of the retirement and social securi-
    13  ty law is amended by adding a new paragraph 13 to read as follows:
    14    13. (i) The city of New York shall, in the  case  of  a  water  supply
    15  police  member  (as defined in paragraph one of subdivision a of section
    16  six hundred four-k of this article) who is a participant in the  twenty-
    17  five  year  retirement program (as defined in paragraph four of subdivi-
    18  sion a of such section six hundred four-k),  pick  up  and  pay  to  the
    19  retirement  system of which such participant is a member, all additional
    20  member contributions which otherwise would be required  to  be  deducted
    21  from  such  member's  compensation pursuant to paragraphs one and two of
    22  subdivision e of such section six  hundred  four-k  (not  including  any
    23  additional  member  contributions  due for any period prior to the first
    24  full payroll period referred to in paragraph three of  such  subdivision
    25  e),  and  shall  effect  such  pick up on each and every payroll of such
    26  participant for each and every payroll period with respect to which such
    27  paragraph three would otherwise require such deductions.
    28    (ii) An amount equal to the amount of additional contributions  picked
    29  up  pursuant  to  this paragraph shall be deducted by such employer from
    30  the compensation of such member (as such compensation would  be  in  the
    31  absence  of  a  pick up program applicable to such person hereunder) and
    32  shall not be paid to such member.
    33    (iii) The additional member contributions picked up pursuant  to  this
    34  paragraph  for any such member shall be paid by such employer in lieu of
    35  an equal amount of additional member contributions otherwise required to
    36  be paid by such member under the applicable provisions of subdivision  e
    37  of section six hundred four-k of this article, and shall be deemed to be
    38  and  treated as employer contributions pursuant to section 414(h) of the
    39  Internal Revenue Code.
    40    (iv) For the purpose of  determining  the  retirement  system  rights,
    41  benefits  and  privileges of any member whose additional member contrib-
    42  utions are picked up pursuant to this paragraph, such  picked  up  addi-
    43  tional member contributions shall be deemed to be and treated as part of
    44  such  member's  additional  member  contributions  under  the applicable
    45  provisions of subdivision e of section six hundred four-k of this  arti-
    46  cle.
    47    (v) With the exception of federal income tax treatment, the additional
    48  member  contributions  picked  up  pursuant  to subparagraph (i) of this
    49  paragraph shall for all other purposes, including computation of retire-
    50  ment benefits and contributions by employers and  employees,  be  deemed
    51  employee   salary.  Nothing  contained  in  this  subdivision  shall  be
    52  construed as superseding the provisions of section four hundred  thirty-
    53  one  of  this  chapter, or any similar provision of law which limits the
    54  salary base of computing retirement benefits payable by a public retire-
    55  ment system.

        S. 7843                            16
 
     1    § 7. Section 13-125.2 of the administrative code of the  city  of  New
     2  York is amended by adding a new subdivision a-9 to read as follows:
     3    a-9. Notwithstanding any other provision of law to the contrary, on or
     4  after  the  starting date for pick up, the employer responsible for pick
     5  up shall, in the case of a water supply police  member  (as  defined  in
     6  paragraph  two  of subdivision a of section four hundred forty-five-k of
     7  the retirement and social security law) who  is  a  participant  in  the
     8  twenty-five  year  improved  benefit  retirement  program (as defined in
     9  paragraph three of such subdivision a of  section  four  hundred  forty-
    10  five-k),  pick up and pay to the retirement system all additional member
    11  contributions which otherwise would be required to be deducted from such
    12  member's compensation pursuant to subdivision d  of  such  section  four
    13  hundred  forty-five-k,  and  shall effect such pick up on each and every
    14  payroll of such participant for  each  and  every  payroll  period  with
    15  respect  to  which  such  subdivision  d  would  otherwise  require such
    16  deductions.
    17    § 8. Subparagraph (ii) of paragraph 1  of  subdivision  c  of  section
    18  13-125.2  of the administrative code of the city of New York, as amended
    19  by chapter 682 of the laws of 2003, is amended to read as follows:
    20    (ii) the determination of the amount of such member's Tier I  or  Tier
    21  II  nonuniformed-force  member contributions eligible for pick up by the
    22  employer or additional member contributions required  to  be  picked  up
    23  pursuant  to  subdivision a-one, subdivision a-two, subdivision a-three,
    24  subdivision a-four, subdivision a-five, subdivision  a-six,  subdivision
    25  a-seven  [or],  subdivision  a-eight,  or  subdivision  a-nine  of  this
    26  section; and
    27    § 9. Subdivision d of section 13-125.2 of the administrative  code  of
    28  the city of New York is amended by adding a new paragraph 2-h to read as
    29  follows:
    30    (2-h)  For  the  purpose  of determining the retirement system rights,
    31  benefits and privileges of any member who is a participant in the  twen-
    32  ty-five  year  improved  benefit retirement program (as defined in para-
    33  graph three of subdivision a of section four hundred forty-five-k of the
    34  retirement and social security law), the additional member contributions
    35  of such participant picked up pursuant to  subdivision  a-nine  of  this
    36  section  shall  be  deemed  to be and treated as a part of such member's
    37  additional member contributions under subdivision d of such section four
    38  hundred forty-five-k.
    39    § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis-
    40  trative code of the city of New York, as amended by chapter 682  of  the
    41  laws of 2003, is amended to read as follows:
    42    (3)  Interest  on  contributions  picked  up for any Tier I or Tier II
    43  non-uniformed-force member pursuant to this section  (other  than  addi-
    44  tional  member  contributions  picked  up pursuant to subdivision a-one,
    45  subdivision a-two, subdivision a-three, subdivision a-four,  subdivision
    46  a-five,   subdivision   a-six,  subdivision  a-seven  [or],  subdivision
    47  a-eight, or subdivision a-nine of this section) shall accrue in favor of
    48  the member and be payable to the retirement system at the same rate, for
    49  the same time periods, in the same manner and  under  the  same  circum-
    50  stances  as  interest would be required to accrue in favor of the member
    51  and be payable to the retirement system on such  contributions  if  they
    52  were  made by such member in the absence of a pick up program applicable
    53  to such member under the provisions of this section.
    54    § 11. Subdivision a of section 603 of the retirement and social  secu-
    55  rity  law,  as amended by section 3 of part EE of chapter 55 of the laws
    56  of 2024, is amended to read as follows:

        S. 7843                            17
 
     1    a. The service retirement benefit specified  in  section  six  hundred
     2  four  of this article shall be payable to members who have met the mini-
     3  mum service requirements upon retirement and attainment  of  age  sixty-
     4  two,  other  than  members who are eligible for early service retirement
     5  pursuant to subdivision c of section six hundred four-b of this article,
     6  subdivision c of section six hundred four-c of this article, subdivision
     7  d  of  section  six  hundred  four-d  of  this article, subdivision c of
     8  section six hundred four-e of this article, subdivision c of section six
     9  hundred four-f of this article, subdivision c  of  section  six  hundred
    10  four-g  of  this article, subdivision c of section six hundred four-h of
    11  this article, subdivision c of section six hundred four-i of this  arti-
    12  cle,  [or]  subdivision c of section six hundred four-j of this article,
    13  or subdivision  c  of  section  six  hundred  four-k  of  this  article,
    14  provided,  however, a member of a teachers' retirement system or the New
    15  York state and local employees' retirement system who first  joins  such
    16  system  before  January  first,  two  thousand  ten or a member who is a
    17  uniformed court officer or peace officer employed by the  unified  court
    18  system  who  first  becomes  a  member  of  the New York state and local
    19  employees' retirement system before April first, two thousand twelve may
    20  retire without reduction of their retirement benefit upon attainment  of
    21  at  least fifty-five years of age and completion of thirty or more years
    22  of service, provided, however, that a uniformed court officer  or  peace
    23  officer  employed by the unified court system who first becomes a member
    24  of the New York state and local employees' retirement system on or after
    25  January first, two thousand ten and retires without reduction  of  their
    26  retirement  benefit  upon attainment of at least fifty-five years of age
    27  and completion of thirty or more  years  of  service  pursuant  to  this
    28  section  shall  be required to make the member contributions required by
    29  subdivision f of section six hundred thirteen of this  article  for  all
    30  years  of  credited  and  creditable  service, provided further that the
    31  preceding provisions of this subdivision shall not apply to a  New  York
    32  city revised plan member.
    33    §  12.  Nothing contained in sections six and eleven of this act shall
    34  be construed to create any contractual right with respect to members  to
    35  whom  such sections apply.  The provisions of such sections are intended
    36  to afford members the advantages of certain benefits  contained  in  the
    37  Internal  Revenue  Code,  and  the  effectiveness  and existence of such
    38  sections and benefits they confer are completely contingent thereon.
    39    § 13. This act shall take effect immediately, provided, however that:
    40    (a) The amendments to subdivision a of section 603 of  the  retirement
    41  and  social  security  law  made by section eleven of this act shall not
    42  affect the expiration of such subdivision as provided in subdivision (b)
    43  of section 13 of chapter 682 of the laws of 2003, and shall expire ther-
    44  ewith;
    45    (b) The provisions of section six of this act shall  remain  in  force
    46  and  effect  only  so  long  as,  pursuant to federal law, contributions
    47  picked up under section 613 of the retirement and  social  security  law
    48  are  not  includable  as gross income of a member for federal income tax
    49  purposes until distributed or made available to the member; and
    50    (c) The amendments to provisions of section 13-125.2 of  the  adminis-
    51  trative code of the city of New York made by sections seven, eight, nine
    52  and  ten  of this act shall not affect the expiration of such provisions
    53  as provided for in chapter 681 of the laws of 1992, as amended.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:

        S. 7843                            18
 
          SUMMARY: This proposed legislation would establish 25-Year  Retirement
        Programs  within the New York City Employees' Retirement System (NYCERS)
        for members employed as Water Supply Police Officers (WSP).
 
                 EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                  by Fiscal Year for the first 25 years ($ in Millions)
 
                                      Year           NYCERS
                                      2026             1.1
                                      2027             1.1
                                      2028             1.0
                                      2029             1.0
                                      2030             0.9
                                      2031             0.9
                                      2032             0.8
                                      2033             0.8
                                      2034             0.7
                                      2035            (0.2)
                                      2036            (0.2)
                                      2037            (0.3)
                                      2038            (0.3)
                                      2039            (0.3)
                                      2040            (0.4)
                                      2041            (0.4)
                                      2042            (0.4)
                                      2043            (0.5)
                                      2044            (0.5)
                                      2045            (0.5)
                                      2046            (0.5)
                                      2047            (0.6)
                                      2048            (0.6)
                                      2049            (0.6)
                                      2050            (0.6)
 
             Projected  contributions  include  future  new  hires  that  may be
             impacted.  For Fiscal Year 2051 and beyond, the  expected  decrease
             in  normal cost as a level percent of pay for impacted new entrants
             is approximately 1.83%.  The decrease in future costs results  from
             the  actuarial  expectation that new members mandated into the Plan
             will benefit less than the amount they are required to pay in addi-
             tional member contributions.
 
          The entire increase in employer contributions will be allocated to New
        York City.
          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)                   NYCERS
                     (1) PV of Employer Contributions:    3.9
                     (2) PV of Employee Contributions:    3.2
                     Total PV of Benefits (1) + (2):      7.1

        S. 7843                            19
 
          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
                                                          NYCERS
                           Increase (Decrease) in UAL:    5.3 M
                           Number of Payments:              9
                           Amortization Payment:          0.8 M
 
          CENSUS  DATA:  The estimates presented herein are based on preliminary
        census data collected as of June 30,  2024.  The  census  data  for  the
        impacted population is summarized below.
                                                          NYCERS
                                 Active Members
                                 - Number Count:          114
                                 - Average Age:           41.9
                                 - Average Service:       16.4
                                 - Average Salary:        93,200
 
          IMPACT  ON MEMBER BENEFITS: The proposed legislation would provide WSP
        with 25 or more years of credited  service  with  a  retirement  benefit
        equal  to  50%  of  Final Average Salary (FAS) for the first 25 years of
        credited service, plus 2% of Final Salary for each  additional  year  of
        credited  service,  exceeding  25 years, up to a maximum of 5 additional
        years.
          The vested benefit for members with less than  25  years  of  credited
        service  would  be  equal to 2% of FAS for each year of credited service
        and is payable at what would have been their 25th year of service.
          Plan participants would be required to pay Additional Member  Contrib-
        utions  equal  to  6%  of  compensation for all service on and after the
        starting date of the Plan until the later of one-year after  the  effec-
        tive date of the Plan or 30 years of credited service as a WSP member.
          Current  Tier  4  and  Tier 6 WSP members would have 180 days from the
        effective date to elect the WSP 25-Year Plan for their respective  tier.
        WSP members who become NYCERS members after the date of enactment of the
        WSP  25-Year  Plans  would  be mandated into the Tier 6 WSP 25-Year Plan
        unless over age 30 upon employment as a WSP member.
          Once members in the Tier 4 WSP 25-Year Plan attain 25 years of credit-
        ed service, they would no longer be eligible to retire under their basic
        plan and would lose the ability to accrue benefits  after  attaining  30
        years of credited service.
          ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
        calculated based on the Revised 2021 Actuarial Assumptions  and  Methods
        of the impacted retirement systems. In addition:

             *  New  entrants  were  assumed  to replace exiting members so that
        total payroll increases by 3% each year for impacted groups. New entrant
        demographics were developed based on data for recent new hires and actu-
        arial judgement.
 
          To determine the impact of the elective nature of the proposed  legis-
        lation,  a subgroup of NYCERS WSP members assumed to benefit actuarially
        was developed based on who is assumed to benefit actuarially by  compar-

        S. 7843                            20
 
        ing  the  net  present  value  of future employer costs of each member's
        benefit under their current plan and under the WSP 25-year Plan.
          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 2025-36 dated March 28,
        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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