Provides that for New York city uniformed sanitation revised plan members of the New York city employees' retirement system, the service retirement benefit shall not be reduced by the primary social security retirement benefit commencing at age sixty-two.
STATE OF NEW YORK
________________________________________________________________________
5374--A
2023-2024 Regular Sessions
IN ASSEMBLY
March 9, 2023
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees -- recommitted to the Committee on
Governmental Employees in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the retirement and social security law, in relation to
service retirement benefits for uniformed sanitation members of the
New York city employees' retirement system
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 505 of the retirement and social security law, as
2 amended by chapter 18 of the laws of 2012, is amended to read as
3 follows:
4 § 505. Service retirement benefits; police/fire members, New York city
5 uniformed correction/sanitation revised plan members and investigator
6 revised plan members. a. The normal service retirement benefit for
7 police/fire members, New York city uniformed correction/sanitation
8 revised plan members and investigator revised plan members at normal
9 retirement age shall be a pension equal to fifty percent of final aver-
10 age salary, less fifty percent of the primary social security retirement
11 benefit commencing at age sixty-two, as provided in section five hundred
12 eleven of this article, except that for New York city uniformed sanita-
13 tion revised plan members of the New York city employees' retirement
14 system, the normal service retirement benefit shall not be reduced by
15 the primary social security retirement benefit commencing at age sixty-
16 two as provided in section five hundred eleven of this article.
17 b. The early service retirement benefit for police/fire members, New
18 York city uniformed sanitation revised plan members and investigator
19 revised plan members shall be a pension equal to two and one-tenths
20 percent of final average salary times years of credited service at the
21 completion of twenty years of service or upon attainment of age sixty-
22 two, increased by one-third of one percent of final average salary for
23 each month of service in excess of twenty years, but not in excess of
24 fifty percent of final average salary, less fifty percent of the primary
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06943-03-4
A. 5374--A 2
1 social security retirement benefit commencing at age sixty-two as
2 provided in section five hundred eleven of this article, provided,
3 however, that New York city police/fire revised plan members, New York
4 city uniformed sanitation revised plan members and investigator revised
5 plan members shall not be eligible to retire for service prior to the
6 attainment of twenty years of credited service, and provided further
7 that for New York city uniformed sanitation revised plan members of the
8 New York city employees' retirement system, the early service retirement
9 benefit shall not be reduced by the primary social security retirement
10 benefit commencing at age sixty-two as provided in section five hundred
11 eleven of this article.
12 c. A police/fire member, a New York city uniformed sanitation revised
13 plan member or an investigator revised plan member who retires with
14 twenty-two years of credited service or less may become eligible for
15 annual escalation of the service retirement benefit if he elects to have
16 the payment of his benefit commence on the date he would have completed
17 twenty-two years and one month or more of service. In such event, the
18 service retirement benefit shall equal two percent of final average
19 salary for each year of credited service, less fifty percent of the
20 primary social security retirement benefit commencing at age sixty-two
21 as provided in section five hundred eleven of this article, except that
22 for New York city uniformed sanitation revised plan members of the New
23 York city employees' retirement system, the service retirement benefit
24 shall not be reduced by the primary social security retirement benefit
25 commencing at age sixty-two as provided in section five hundred eleven
26 of this article.
27 § 2. Section 511 of the retirement and social security law is amended
28 by adding a new subdivision h to read as follows:
29 h. This section shall not apply to New York city uniformed sanitation
30 revised plan members of the New York city employees' retirement system
31 who receive a service retirement benefit pursuant to section five
32 hundred five of this article or a deferred vested benefit pursuant to
33 section five hundred sixteen of this article.
34 § 3. Subdivision c of section 516 of the retirement and social securi-
35 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
36 as follows:
37 c. The deferred vested benefit of police/fire members, New York city
38 police/fire revised plan members, New York city uniformed
39 correction/sanitation revised plan members or investigator revised plan
40 members shall be a pension commencing at early retirement age equal to
41 two and one-tenths percent of final average salary times years of cred-
42 ited service, less fifty percent of the primary social security retire-
43 ment benefit commencing at age sixty-two, as provided in section five
44 hundred eleven of this article, except that for New York city uniformed
45 sanitation revised plan members of the New York city employees' retire-
46 ment system, the service retirement benefit shall not be reduced by the
47 primary social security retirement benefit commencing at age sixty-two
48 as provided in section five hundred eleven of this article. A
49 police/fire member, a New York city police/fire revised plan member, a
50 New York city uniformed correction/sanitation revised plan member or
51 investigator revised plan member may elect to receive his vested benefit
52 commencing at early retirement age or age fifty-five. If the vested
53 benefit commences before early retirement age, the benefit shall be
54 reduced by one-fifteenth for each year, if any, that the member's early
55 retirement age is in excess of age sixty, and by one-thirtieth for each
56 additional year by which the vested benefit commences prior to early
A. 5374--A 3
1 retirement age. If such vested benefit is deferred until after such
2 member's normal retirement age, the benefit shall be computed and
3 subject to annual escalation in the same manner as provided for an early
4 retirement benefit pursuant to subdivision c of section five hundred
5 five of this article.
6 § 4. This act shall take effect on the sixtieth day after it shall
7 have become a law.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would amend Sections of the Retire-
ment and Social Security Law (RSSL) to eliminate the offset equal to 50%
of the primary social security benefit in the service, early service,
and vested retirement benefits for certain Tier 3 Sanitation members of
NYCERS.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS
2025 17.4
2026 18.5
2027 19.9
2028 21.5
2029 23.1
2030 24.6
2031 26.1
2032 27.4
2033 29.0
2034 30.6
2035 32.0
2036 33.4
2037 34.9
2038 36.3
2039 37.7
2040 39.2
2041 40.7
2042 35.4
2043 36.9
2044 38.4
2045 40.0
2046 41.6
2047 43.2
2048 44.8
2049 46.4
Employer Contribution impact beyond Fiscal Year 2049 is not shown.
Projected contributions include future new hires that may be impacted.
The entire increase in employer contributions will be allocated to New
York City.
EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
as of June 30, 2023 ($ in Millions)
Present Value (PV) NYCERS
PV of Benefits: 214.5
PV of Employee Contributions: 0.0
PV of Employer Contributions: 214.5
Unfunded Accrued Liabilities: 64.0
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
NYCERS
Number of Payments: 17
Fiscal Year of Last Payment: 2041
A. 5374--A 4
Amortization Payment: 6.8M
Unfunded Accrued Liability increases were amortized over the expected
remaining working lifetime of those impacted by the benefit changes
using level dollar payments.
CENSUS DATA: The estimates presented herein are based on preliminary
census data collected as of June 30, 2023. The census data for the
impacted population is summarized below.
NYCERS
Active Members
- Number Count: 4,627
- Average Age: 39.2
- Average Service: 6
- Average Salary: 89,800
Term. Vested Members
- Number Count: 67
- Average Age: 41.5
IMPACT ON MEMBER BENEFITS: Currently, Tier 3 normal service retire-
ment, early service retirement, and vested retirement benefits for Sani-
tation members in 22-Year Plans are subject to an offset equal to 50% of
the primary social security benefit as defined in RSSL Section 511
beginning at age 62.
Under the proposed legislation, the offset for such benefits would be
eliminated resulting in an increase in benefits.
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 demo-
graphics were developed based on data for recent new hires and actuarial
judgement.
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 include cost analyses relating to provisions
contained in RSSL Section 500(c).
STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
sky are members of the Society of Actuaries and the American Academy of
Actuaries. We are members of NYCERS but do not believe it impairs our
objectivity and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
To the best of our knowledge, the results contained herein have been
prepared in accordance with generally accepted actuarial principles and
procedures and with the Actuarial Standards of Practice issued by the
Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-06 dated January 22,
2024 was prepared by the Chief Actuary for the New York City Retirement
Systems and Pension Funds. This estimate is intended for use only during
the 2024 Legislative Session.
