STATE OF NEW YORK
________________________________________________________________________
3651--B
Cal. No. 539
2017-2018 Regular Sessions
IN SENATE
January 25, 2017
___________
Introduced by Sens. FELDER, AKSHAR -- read twice and ordered printed,
and when printed to be committed to the Committee on Cities --
reported favorably from said committee, ordered to first and second
report, ordered to a third reading, amended and ordered reprinted,
retaining its place in the order of third reading -- recommitted to
the Committee on Cities in accordance with Senate Rule 6, sec. 8 --
reported favorably from said committee, ordered to first and second
report, ordered to a third reading, amended and ordered reprinted,
retaining its place in the order of third reading
AN ACT to amend the administrative code of the city of New York, in
relation to the pensionable earnings of first grade police officers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 14-111 of the administrative code of the city of
2 New York is amended by adding two new subdivisions c and d to read as
3 follows:
4 c. When a first grade police officer shall have served in the rank of
5 police officer for a period of twenty-five years, he or she shall have
6 the same rights in respect to the police pension fund as a police offi-
7 cer designated to act as detective of the third grade who shall have
8 served as such for a period of time aggregating two years at the highest
9 salary rate for a detective of the third grade.
10 d. When a first grade police officer shall have served in the rank of
11 police officer for a period of thirty years, he or she shall have the
12 same rights in respect to the police pension fund as a sergeant who
13 shall have served as such for a period of time aggregating two years at
14 the highest salary rate for a sergeant.
15 § 2. This act shall take effect immediately.
FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
We have estimated the impact of the FAS Bill, a copy of which is
attached, on the projected employer contributions of the New York City
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08490-05-8
S. 3651--B 2
Police Pension Fund. A brief summary of the new provisions is outlined
below:
* When a first grade police officer achieves 25 years of service, s/he
shall be entitled to the same base pay for the purpose of pensionable
earnings as a detective of the third grade who served in such position
for a period of 2 years at the highest pay rate for that position.
* When a first grade police officer achieves 30 years of service, s/he
shall be entitled to the same base pay for the purpose of pensionable
earnings as a sergeant who served in such position for a period of 2
years at the highest pay rate for that position.
The table below summarizes the additional contributions that result
from this bill by year.
(in millions)
________________________________________
Year Annual Cost
________________________________________
2018 15.9
2019 16.7
2020 17.2
2021 17.6
2022 18.0
Assumptions and Methods
While it is possible that over time, these plan provisions could
influence retirement behavior, we are unable to accurately predict the
specific behavior, and therefore have measured the cost of these
provisions assuming no change to the retirement rates.
Specific to this bill, we made the following assumptions about the
pensionable pay increases at the 25 and 30 year of service levels, based
on information from the applicable police contracts and pay applicable
to 2017:
* Increase at 25 Years of Service is $92,183/$85,292.
* Increase at 30 Years of Service is $106,175/$85,292.
These increases are applied to the prior 2 years of pay (for Tier 3
and Tier 6) once the service level is achieved.
All other assumptions used to illustrate the expected contribution
impact are consistent with our current understanding of the actuarial
assumptions employed by the New York City Office of the Actuary.
This assessment was made for the purpose of estimating the cost impact
of this proposed legislation. Use of the results for other purposes may
not be applicable and produce significantly different results. Future
actuarial measurements may differ significantly from the current meas-
urements presented in this letter for a variety of reasons including:
changes in applicable laws, changes in plan provisions, changes in
assumptions, or plan experience differing from expectations.
The undersigned is familiar with the immediate and long-term aspects
of pension calculations and meets the Qualification Standards of the
American Academy of Actuaries necessary to render the actuarial opinions
contained herein.
