STATE OF NEW YORK
________________________________________________________________________
7714
2023-2024 Regular Sessions
IN ASSEMBLY
June 6, 2023
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees
AN ACT to amend the administrative code of the city of New York, in
relation to promotions of detectives
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 14-114 of the administrative code of the city of
2 New York is amended by adding a new subdivision d to read as follows:
3 d. (1) When a detective of the third grade shall have served in the
4 rank of detective of the third grade for a period of fifteen years, he
5 or she shall have the same rights in respect to the police pension fund
6 as a detective of the third grade detailed to act as detective of the
7 second grade.
8 (2) When a detective of the second grade shall have served in the rank
9 of detective of the second grade for a period of ten years, he or she
10 shall have the same rights in respect to the police pension fund as a
11 detective of the second grade detailed to act as detective of the first
12 grade.
13 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY OF BILL: This proposed legislation would amend Administrative
Code of the City of New York Section 14-114 to allow for a Detective
Third grade of the New York City Police Department (NYPD), who has been
a Detective Third grade for at least 15 years, to have the same rights
in respect to the New York City Police Pension Fund (POLICE) as a Detec-
tive Third grade detailed to act as a Detective Second grade and to
allow for a Detective Second grade of the New York City Police Depart-
ment, who has been a Detective Second grade for at least 10 years, to
have the same rights in respect to POLICE as a Detective Second grade
detailed to act as a Detective First grade.
Effective Date: Upon enactment.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08615-02-3
A. 7714 2
IMPACT ON BENEFITS: The proposed legislation would permit Detectives
of the Third and Second grade, who have met certain service require-
ments, to have their pension calculations based on a higher-grade sala-
ry.
A Detective Third grade who would benefit under this proposed legis-
lation, if enacted, would receive an increase in their annual pension
benefit of approximately $8,600 per year and a Detective Second grade
who would benefit under this proposed legislation, if enacted, would
receive an increase in their annual pension benefit of approximately
$11,500 per year, due to the assumed higher salary grade and overtime,
and assuming a service retirement benefit with 20 years of service.
Based on this increase and an estimate of the number of POLICE members
that are expected to be impacted by this change, it is estimated that if
this proposed legislation is enacted, the annual increase in POLICE
pension benefits paid will be approximately $1.3 million per year.
With respect to an individual member, the impact on benefits due to
this proposed legislation could vary greatly depending on the member's
age, years of service, retirement cause, and Tier.
FINANCIAL IMPACT - PRESENT VALUES: Based on the actuarial assumptions
and methods described herein, the enactment of this proposed legislation
would increase the Present Value of Future Benefits (PVFB) by approxi-
mately $16.3 million every year.
FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: Enactment of this
proposed legislation would increase employer contributions, where such
amount would depend on the number of members affected as well as other
characteristics including the age, years of service, and salary history
of the member. Future years' costs would depend on the number of reti-
rees who benefit under the legislation amongst other factors.
The estimate of the increase in annual employer contribitions for
Fiscal Years 2025 through 2029, assuming a homogenous population and
consistent retirement pattern, is shown in the table below.
Fiscal Increase in
Year Employer Contributions
($ Millions)
2025 $ 1.9
2026 $ 3.8
2027 $ 5.8
2028 $ 7.7
2029 $ 9.6
Since the number of Detectives Third grade that will retire with 15 or
more years in rank or Detectives Second grade that will retire with 10
or more years in rank cannot be known in advance with credibility, the
increase in PVFB due to this legislation has been treated as an actuari-
al loss and was amortized over a closed 15-year period (14 payments
under the One-Year Lag Methodology) using level dollar payments.
CENSUS DATA: These estimates are based on data provided by the NYPD
Detectives' Endowment Association which was not audited but was checked
for reasonableness. Below is a summary of the data provided:
* Salary (excluding overtime and outstanding wage contract increases)
* Detective Third grade - $114,999
* Detective Second grade - $128,034
* Detective First grade - $145,548
A. 7714 3
* Detectives Third grade who retired with 15+ years in rank - 522
retired over the past 19 years.
* Detectives Second grade who retired with 10+ years in rank - 1,783
retired over the past 20 years.
ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
been calculated based on the actuarial assumptions and methods used for
the Preliminary Fiscal Year 2024 employer contributions of POLICE.
For the purposes of this Fiscal Note, it is assumed that the changes
would be reflected for the first time in the June 30, 2023 actuarial
valuation of POLICE used to determine employer contributions for Fiscal
Year 2025.
The salaries for Detectives provided for this analysis have been
adjusted by 12.55% for assumed salary increases prior to June 30, 2022
consistent with contract settlements and assumptions of pattern bargain-
ing.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the realization of the actuarial assumptions used, demograph-
ics of the impacted population, and other factors such as investment,
contribution, and other risks. If actual experience deviates from actu-
arial assumptions, the actual costs could differ from those presented
herein.
Costs are also dependent on the actuarial methods used, and therefore
different actuarial methods could produce different results. Quantifying
these risks is beyond the scope of this Fiscal Note.
Not measured in this Fiscal Note are the following:
* The initial additional administrative costs to implement the
proposed legislation.
STATEMENT OF ACTUARIAL OPINION: I, Marek Tyszkiewicz, am the Chief
Actuary for, and independent of, the New York City Retirement Systems
and Pension Funds. I am an Associate of the Society of Actuaries and a
Member of the American Academy of Actuaries. I am a member of NYCERS but
do not believe it impairs my objectivity and I meet the Qualification
Standards of the American Academy of Actuaries to render the actuarial
opinion contained herein. To the best of my 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 2023-63 dated May 31,
2023 was prepared by the Chief Actuary for the New York City Police
Pension Fund. This estimate is intended for use only during the 2023
Legislative Session.