New York State Assembly

 
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A10676 Summary:

A10676 Actions:

A10676 Committee Votes:

Committee:GOVERNMENTAL EMPLOYEES   Chair:Abbate      
DATE:05/15/2018AYE/NAY:14/0  Action: Favorable refer to committee Ways and Means        
Abbate
Aye
Malliotakis
Aye
Aubry
Aye
Johns
Aye
Colton
Aye
Palumbo
Aye
Cusick
Aye
Crouch
Aye
Zebrowski
Aye
DenDekker
Aye
Santabarbara
Aye
Brindisi
Aye
D'Urso
Aye
Pheffer Amato
Aye

Committee:WAYS AND MEANS   Chair:Weinstein      
DATE:05/30/2018AYE/NAY:28/1  Action: Favorable         
Weinstein
Aye
Oaks
Aye
Lentol
Excused
Crouch
Aye
Schimminger
Aye
Barclay
Aye
Gantt
Excused
Fitzpatrick
Nay
Glick
Excused
Hawley
Aye
Nolan
Excused
Malliotakis
Aye
Pretlow
Aye
Walter
Aye
Perry
Aye
Montesano
Aye
Colton
Aye
Curran
Aye
Cook
Excused
Ra
Aye
Cahill
Aye
Aubry
Aye
Hooper
Aye
Thiele
Aye
Cusick
Aye
Ortiz
Aye
Benedetto
Aye
Weprin
Aye
Rodriguez
Aye
Ramos
Aye
Braunstein
Aye
McDonald
Aye
Rozic
Aye
Peoples-Stokes
Aye
Simotas
Excused

A10676 Floor Votes:

A10676 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10676
 
                   IN ASSEMBLY
 
                                      May 10, 2018
                                       ___________
 
        Introduced by M. of A. ABBATE -- 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 the rate of interest used in the  actuarial  valuation  of
          liabilities  for  the  purpose of calculating contributions to the New
          York city employees' retirement system, the New  York  city  teachers'
          retirement  system,  the police pension fund, subchapter two, the fire
          department pension fund, subchapter two and  the  board  of  education
          retirement  system of such city by public employers and other obligors
          required to make employer contributions to  such  retirement  systems,
          the  crediting  of special interest and additional interest to members
          of such retirement systems, and the allowance of supplementary  inter-
          est on the funds of such retirement systems
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 2 of subdivision b of  section  13-638.2  of  the
     2  administrative code of the city of New York, as amended by chapter 71 of
     3  the laws of 2017, is amended to read as follows:
     4    (2)  With  respect  to  each  retirement system, such rate of interest
     5  shall be as hereinafter set forth in this paragraph:
 
     6                                                  First day and
     7                                                  last day of
     8                     Rate of interest             fiscal year or
     9                     per centum per               series of fiscal
    10  Retirement         annum, compounded            years for which
    11  System             annually                     rate is effective
    12  ________________________________________________________________________
    13  NYCERS             7%                           July 1, 2011 to
    14                                                  June 30, [2018] 2019
    15  NYCTRS             7%                           July 1, 2011 to
    16                                                  June 30, [2018] 2019
    17  PPF                7%                           July 1, 2011 to
    18                                                  June 30, [2018] 2019
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15846-02-8
        A. 10676                            2
 
     1  FPF                7%                           July 1, 2011 to
     2                                                  June 30, [2018] 2019
     3  BERS               7%                           July 1, 2011 to
     4                                                  June 30, [2018] 2019
 
     5    §  2. Paragraph 2 of subdivision f of section 13-638.2 of the adminis-
     6  trative code of the city of New York, as amended by chapter  71  of  the
     7  laws of 2017, is amended to read as follows:
     8    (2)  Such  special  interest shall be allowed at the rates and for the
     9  periods set forth below in this paragraph:
 
    10                                                  First day and
    11                                                  last day of
    12                     Rate of interest             fiscal year or
    13                     per centum per               series of fiscal
    14  Retirement         annum, compounded            years for which
    15  System             annually                     rate is effective
    16  ________________________________________________________________________
    17  NYCERS              1 1/4%                      July 1, 2011 to
    18                                                  June 30, [2018] 2019
    19  NYCTRS              1 1/4%                      July 1, 2011 to
    20                                                  June 30, [2018] 2019
    21  PPF                 1 1/4%                      July 1, 2011 to
    22                                                  June 30, [2018] 2019
    23  FPF                 1 1/4%                      July 1, 2011 to
    24                                                  June 30, [2018] 2019
    25  BERS                1 1/4%                      July 1, 2011 to
    26                                                  June 30, [2018] 2019
 
    27    § 3. Paragraph 2 of subdivision g of section 13-638.2 of the  adminis-
    28  trative  code  of  the city of New York, as amended by chapter 71 of the
    29  laws of 2017, is amended to read as follows:
    30    (2) Such additional interest shall be included at the  rates  and  for
    31  the periods set forth below in this paragraph:

    32                                                  First day and
    33                                                  last day of
    34                     Rate of interest             fiscal year or
    35                     per centum per               series of fiscal
    36  Retirement         annum, compounded            years for which
    37  System             annually                     rate is effective
    38  ________________________________________________________________________
    39  NYCERS              1 1/4%                      July 1, 2011 to
    40                                                  June 30, [2018] 2019
    41  NYCTRS              1 1/4%                      July 1, 2011 to
    42                                                  June 30, [2018] 2019
    43  PPF                 1 1/4%                      July 1, 2011 to
    44                                                  June 30, [2018] 2019
    45  FPF                 1 1/4%                      July 1, 2011 to
    46                                                  June 30, [2018] 2019
    47  BERS                1 1/4%                      July 1, 2011 to
    48                                                  June 30, [2018] 2019
 
    49    §  4. Paragraph 2 of subdivision i of section 13-638.2 of the adminis-
    50  trative code of the city of New York, as amended by chapter  71  of  the
    51  laws of 2017, is amended to read as follows:
        A. 10676                            3
 
     1    (2)  Such supplementary interest shall be allowed at the rates and for
     2  the periods set forth below in this paragraph:
 
     3                                                  First day and
     4                                                  last day of
     5                     Rate of interest             fiscal year or
     6                     per centum per               series of fiscal
     7  Retirement         annum, compounded            years for which
     8  System             annually                     rate is effective
     9  ________________________________________________________________________
    10  NYCERS             0%                           July 1, 2011 to
    11                                                  June 30, [2018] 2019
    12  NYCTRS             0%                           July 1, 2011 to
    13                                                  June 30, [2018] 2019
    14  PPF                0%                           July 1, 2011 to
    15                                                  June 30, [2018] 2019
    16  FPF                0%                           July 1, 2011 to
    17                                                  June 30, [2018] 2019
    18  BERS               0%                           July 1, 2011 to
    19                                                  June 30, [2018] 2019
 
    20    §  5. This act shall take effect July 1, 2018, except that if it shall
    21  have become a law subsequent to such date, this act  shall  take  effect
    22  immediately  and  be deemed to have been in full force and effect on and
    23  after July 1, 2018.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY OF BILL: The  enactment  of  this  proposed  legislation  (the
        Interest  Rate  Extender Legislation) would amend Administrative Code of
        the City of New York (ACCNY) Section 13-638.2, as amended by Chapter  71
        of  the  Laws  of  2017,  to continue for Fiscal Year 2019 the following
        rates of interest that expire on July 1, 2018 for the five  actuarially-
        funded New York City Retirement Systems and Pension Funds (NYCRS):
          *  The 8.25% per annum rate used to credit interest on Tier 1 and Tier
        2 member account balances  (the sum of the 7.00% regular  interest  rate
        and  the 1.25% special interest rate) and Increased-Take-Home-Pay (ITHP)
        Reserves (the sum of the 7.00% regular interest rate and the 1.25% addi-
        tional interest rate), and
          * The 7.00% per annum Actuarial Interest Rate (AIR) assumption used to
        compute employer contributions.
          Effective Date for this proposed legislation: July 1, 2018.
          FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The continuation for Fiscal
        Year 2019 of the same 8.25% per annum rate that was used for Fiscal Year
        2018 to credit interest on Tier 1 and Tier 2  member  contributions  and
        ITHP Reserves would not change the amount or timing of expected employer
        contributions.
          The  continuation  for Fiscal Year 2019 of the AIR assumption of 7.00%
        per annum that was used to determine preliminary employer  contributions
        to  the  NYCRS for Fiscal Year 2018 would not change the expected amount
        or timing of employer contributions.
          OTHER COSTS: Enactment of  this  proposed  legislation  would  not  be
        expected to produce any additional costs.
          STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
        ary for, and independent of, the New York City  Retirement  Systems  and
        Pension  Funds.  I  am a Fellow of the Society of Actuaries, an Enrolled
        Actuary under the Employee Retirement Income and Security  Act  of  1974
        (ERISA),  a Member of the American Academy of Actuaries, and a Fellow of
        A. 10676                            4
 
        the Conference of Consulting Actuaries. I meet the Qualification  Stand-
        ards  of the American Academy of Actuaries to render the actuarial opin-
        ion contained herein. To the best of my knowledge, the results contained
        herein have been prepared in accordance with generally accepted actuari-
        al  principles and procedures, and with the Actuarial Standards of Prac-
        tice issued by the Actuarial Standards Board.
          FISCAL NOTE IDENTIFICATION: This Fiscal Note 2018-01 dated January 22,
        2018, 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 2018 Legislative Session.