Relates to allowing certain members of the New York city police pension fund to receive service credit for their service in the New York city police department cadet program.
STATE OF NEW YORK
________________________________________________________________________
5121--A
2017-2018 Regular Sessions
IN SENATE
March 8, 2017
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
-- recommitted to the Committee on Civil Service and Pensions in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the administrative code of the city of New York, in
relation to allowing certain members of the New York city police
pension fund to receive service credit for their service 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. Subdivision h of section 13-218 of the administrative code
2 of the city of New York, as added by chapter 594 of the laws of 2000, is
3 relettered subdivision i and a new subdivision j is added to read as
4 follows:
5 j. (1) Notwithstanding any provision of law to the contrary, upon
6 election, any member of the police pension fund, subchapter two of this
7 chapter who is subject to article fourteen of the retirement and social
8 security law, and served in the New York city police department cadet
9 program shall receive credit in such police pension fund, subchapter two
10 of this chapter, for the period of service in the New York city police
11 department cadet program. Any member who was not a member of the retire-
12 ment system shall receive such credit by paying into the police pension
13 fund additional member contributions plus interest, at a rate of five
14 percent, which would have been paid or credited had such member been a
15 member of the police pension fund, subchapter two of this chapter, from
16 his or her date of appointment as a New York city police department
17 cadet, provided such payment is made within five years after the effec-
18 tive date of this subdivision, or within five years after commencement
19 of membership in the New York city police pension fund, whichever is
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09399-03-8
S. 5121--A 2
1 later. Any such member who was a member of the New York city employees'
2 retirement system while serving in the New York city police department
3 cadet program shall receive such credit in the police pension fund by
4 requesting a transfer of credit within five years after this subdivision
5 shall take effect, or within five years after commencement of membership
6 in the New York city police pension fund, whichever is later. Upon such
7 request, the reserve on the benefits allowable to such member as the
8 result of employer contributions, including the reserve-for-increased-
9 take-home-pay, if any, and the accumulated deductions of such member,
10 shall thereupon be transferred from the New York city employees' retire-
11 ment system to the police pension fund within one year from the date of
12 such request.
13 (2) The period of such service transferred or purchased pursuant to
14 paragraph one of this subdivision shall be deemed to be service in the
15 police force for purposes of eligibility for benefits and to determine
16 the amounts of benefits under the police pension fund.
17 (3) Any member of the police pension fund, subchapter two of this
18 chapter, who acquires service credit by reason of the provisions of this
19 subdivision shall be entitled to all rights benefits and privileges to
20 which he or she would have been entitled had his or her current member-
21 ship begun upon appointment as a New York city police department cadet,
22 as well as any other right, benefit or entitlement of a similarly situ-
23 ated member of such pension fund with equal total service credit
24 consisting only of service in the uniformed force of the police depart-
25 ment.
26 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
We have estimated the impact of the Cadet Bill, a copy of which is
attached, on the projected employer contributions. The table below
summarizes the resulting contributions by year.
(in millions)
Year Annual Cost
2018 5.1
2019 5.4
2020 5.6
2021 5.9
2022 6.1
These estimates are based on headcounts, as summarized below:
Year Open Competitive Promotional
2009 5 180
2010 3 164
2011 1 68
2012 1 52
2013 0 35
2014 2 14
2015 5 73
2016 (partial year) 2 22
For the sake of projection, we assumed that from 2016 to 2020 (the
time period that impacts costs from 2018 to 2022), we would continue to
see cadets enter the plan with past service. We assumed for each year
that 2 cadets would enter as Open Competitive hires and 50 cadets would
enter through Promotional hire channels. Note, the new Cadets are all
S. 5121--A 3
subject to the Tier 6 plan provisions, with no opportunity for Tier
reassignment.
We also assumed that Promotional hires would enter with 1.25 years of
past service on average and Open Competitive hires would have 0.83 years
of service, which is 2/3 of the amount of the Promotional hires. In
addition, we had to make assumptions about the Tier Reinstatement Rates,
as summarized in the table below:
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Tier Reinstatement
Year Rates Resulting Tier
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2009 100% All Tier Reinstate to Tier 2
2010 100% All Tier Reinstate to Tier 2
2011 50% 50% Tier Reinstate to Tier 2
(7/1/2009 change date)
2012 100% All Tier Reinstate to Tier 3
2013 100% All Tier Reinstate to Tier 3
2014 25% 25% Tier Reinstate to Tier 3
(4/1/2012 change date)
2015 0% Tier 6
2016 0% Tier 6
All other assumptions are consistent with our current understanding of
the actuarial assumptions employed by the New York City Office of the
Actuary to illustrate expected contribution impact.
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.