Relates to allowing certain members of the New York city fire department pension fund to receive a membership date in such fund attributable to service in the titles of police cadet program and police cadet program II in the New York city police department cadet program.
STATE OF NEW YORK
________________________________________________________________________
7681--A
2023-2024 Regular Sessions
IN ASSEMBLY
June 5, 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 general municipal law, in relation to allowing
certain members of the New York city fire department pension fund to
receive a membership date in the New York city fire department pension
fund attributable to service in the titles of police cadet program or
police cadet program II in the New York city police department cadet
program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 209-fff of the general municipal law, as added by
2 chapter 431 of the laws of 2019, is amended to read as follows:
3 § 209-fff. Provisions relating to a membership date in the New York
4 city police pension fund or the fire department pension fund attribut-
5 able to service in the titles of police cadet program and police cadet
6 program II in the New York city police department cadet program. 1.
7 Notwithstanding any provision of law to the contrary, upon election, any
8 member of the New York city police pension fund or the New York city
9 fire department pension fund who is subject to article fourteen of the
10 retirement and social security law, and who served in the New York city
11 police department cadet program in the title of police cadet program or
12 police cadet program II prior to April first, two thousand twelve, but
13 did not join the New York city employees' retirement system while serv-
14 ing in either such title, may purchase credit for the period of service
15 in such titles in the New York city police department cadet program by
16 paying into the New York city police pension fund or the New York city
17 fire department pension fund all member contributions plus interest, at
18 a rate of five percent per annum, which would have been payable to the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10936-07-4
A. 7681--A 2
1 New York city employees' retirement system under any provision of law
2 had such member joined the New York city employees' retirement system on
3 the earliest date that [he or she] such member was appointed to the
4 title of police cadet program or police cadet program II in the New York
5 city police department cadet program, provided such payment, for members
6 of the New York city police pension fund, is made within five years
7 [after] of the effective date of [this section] chapter four hundred
8 thirty-one of the laws of two thousand nineteen. For members of the New
9 York city fire department pension fund, such payment must be made within
10 five years of the effective date of the chapter of the laws of two thou-
11 sand twenty-four which amended this section.
12 2. Any member of the New York city police pension fund or the New York
13 city fire department pension fund who acquires service credit pursuant
14 to this section shall be entitled to all rights, benefits and privileges
15 to which [he or she] such member would have been entitled had [his or
16 her] such member's membership in the New York city police pension fund
17 or the New York city fire department pension fund begun upon the earli-
18 est date that [he or she] such member was appointed to the title of
19 police cadet program or police cadet program II in the New York city
20 police department cadet program, but in no event shall the service cred-
21 it acquired pursuant to this section be deemed to be: (a) service in the
22 police force or any other type of service counted or creditable as
23 service in the police force under section 13-218 of the administrative
24 code of the city of New York[,]; (b) service in the fire department of
25 the city of New York or any other type of service counted or creditable
26 as service in such fire department under section 13-318 of the adminis-
27 trative code of the city of New York; or (c) service under section five
28 hundred thirteen of the retirement and social security law or any other
29 provision of law for purposes of eligibility for benefits and to deter-
30 mine the amount of benefits under the New York city police pension fund
31 or the New York city fire department pension fund.
32 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would allow Tier 3 members of FIRE
to purchase prior service as a cadet in the NYPD and use the appointment
date as a cadet to determine the initial date of FIRE membership for
plan or tier eligibility purposes provided such purchase of service is
made within five years of the effective date of this legislation.
ILLUSTRATION - INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($)
Tier or Plan Change*
Year To Tier 2 From Within Tier 3
2025 51,700 1,500
2026 51,700 1,500
2027 51,700 1,500
2028 51,700 1,500
2029 51,700 1,500
2030 51,700 1,500
2031 51,700 1,500
2032 51,700 1,500
2033 51,700 1,500
2034 51,700 1,500
2035 51,700 1,500
2036 51,700 1,500
2037 51,700 1,500
A. 7681--A 3
2038 51,700 1,500
2039 0 0
2040 0 0
2041 0 0
2042 0 0
2043 0 0
2044 0 0
2045 0 0
2046 0 0
2047 0 0
2048 0 0
2049 0 0
* From Tier 3 (original, modified, or enhanced) to Tier 2 or from Tier
3 (modified or enhanced) to Tier 3 original.
The potential increases in employer contributions will be allocated to
New York City.
EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
as of June 30, 2023 ($ in Thousands)
Present Value (PV) To Tier 2 Within Tier 3
PV of Benefits: 390.6 14.4
PV of Employee Contributions: (46.8) 1.7
PV of Employer Contributions: 437.4 12.7
Unfunded Accrued Liabilities: 437.4 12.7
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
Recognized as Ongoing Gain/Loss To Tier 2 Within Tier 3
Number of Payments: 14 14
Amortization Payment: 51.7 K 1.5 K
CENSUS DATA: The number of members who will benefit in the future from
this fiscal note is unknown. The estimates presented herein are based on
preliminary census data collected as of June 30, 2023. The census data
for the potentially impacted population used to develop the average
costs is summarized below.
To Tier 2 Within Tier 3
Active Members
- Number Count: 3,144 3,913
- Average Age: 35.9 34.3
- Average Service: 6.8 5.8
- Average Salary: 125,500 117,100
IMPACT ON MEMBER BENEFITS AND CONTRIBUTIONS: Currently, the purchase
of prior NYPD cadet service performed while not a member of the New York
City Employees' Retirement System (NYCERS) does not provide a retroac-
tive date of membership in FIRE, nor would it provide additional service
retirement benefits for Tier 3 members.
Under the proposed legislation, purchased NYPD cadet service would
entitle members with cadet service before July 1, 2009 to be deemed a
Tier 2 member, and would be included in the calculation of benefits as
non-qualifying service credit.
A. 7681--A 4
Also, purchased NYPD cadet service would entitle members with cadet
service between July 1, 2009 and April 1, 2012 to be deemed an original
Tier 3 member.
For cadets who did not join NYCERS, the member would have to pay
member contributions that would have been payable to NYCERS had they
joined on their initial cadet appointment date, plus 5.0% annual inter-
est.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement systems. Additionally, 1.2 years of cadet
service was assumed based on the amount of cadet service previously
purchased by members of the New York City Police Pension Fund.
The number of members who will benefit in the future from this Fiscal
Note is unknown. The cost of this proposed legislation could vary great-
ly depending on the number of future members who benefit and on their
length of service, age, and salary history.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the actuarial assumptions, methods, and models used, demo-
graphics of the impacted population and other factors such as invest-
ment, contribution, and other risks. If actual experience deviates from
actuarial assumptions, the actual costs could differ from those
presented herein. Quantifying these risks is beyond the scope of this
Fiscal Note.
This Fiscal Note is intended to measure pension-related impacts and
does not include other potential costs (e.g., administrative and Other
Postemployment Benefits).
STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
sky are members of the Society of Actuaries and the American Academy of
Actuaries. We are members of NYCERS but do not believe it impairs our
objectivity and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
To the best of our knowledge, the results contained herein have been
prepared in accordance with generally accepted actuarial principles and
procedures and with the Actuarial Standards of Practice issued by the
Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-49 dated May 3, 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.
