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S06460 Summary:

S06460 Actions:

S06460 Committee Votes:

S06460 Floor Votes:

S06460 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6460
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                      May 23, 2017
                                       ___________
 
        Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
 
        AN ACT to amend the retirement and social security law, in  relation  to
          the  definition  of  additional  member contributions and basic member
          contributions for certain New York city employees'  retirement  system
          members  who are subject to certain retirement plans under articles 14
          and 15 of the retirement and social security law, to allow such  addi-
          tional  member  contributions to be used, to offset a deficit of basic
          member contributions, or to allow an excess of basic  member  contrib-
          utions  to  offset  a  deficit of additional member contributions upon
          retirement
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Subparagraph (i) of paragraph 8 of subdivision e of section
     2  504-a  of  the retirement and social security law, as amended by chapter
     3  631 of the laws of 1993, is amended to read as follows:
     4    (i) Such additional member contributions (and  any  interest  thereon)
     5  shall  be paid into the contingent reserve fund of the retirement system
     6  of which the participant is a member and shall not for  any  purpose  be
     7  deemed  to  be  member  contributions  or accumulated contributions of a
     8  member under section five hundred seventeen of this article or otherwise
     9  while he or she is a participant in the twenty-year  retirement  program
    10  or  otherwise,  except that, upon the participant's separation from city
    11  service as a result of retirement, a surplus of such  additional  member
    12  contributions  that  are  paid  into  the retirement system's contingent
    13  reserve fund may be used for the sole purpose of offsetting a deficit of
    14  basic member contributions.
    15    § 2. Subparagraph (i) of paragraph 12  of  subdivision  e  of  section
    16  504-b of the retirement and social security law, as added by chapter 631
    17  of the laws of 1993, is amended to read as follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11762-01-7
        S. 6460                             2
 
     1    (i)  All  additional member contributions required by this subdivision
     2  (and any interest thereon) which are received by the  retirement  system
     3  of  which  the participant is a member shall be paid into its contingent
     4  reserve fund and shall not for  any  purpose  be  deemed  to  be  member
     5  contributions  or  accumulated  contributions  of a member under section
     6  five hundred seventeen of this article or otherwise while he or she is a
     7  participant in the twenty-year retirement program for captains and above
     8  or otherwise, except that, upon the participant's separation  from  city
     9  service  as  a result of retirement, a surplus of such additional member
    10  contributions that are paid  into  the  retirement  system's  contingent
    11  reserve fund may be used for the sole purpose of offsetting a deficit of
    12  basic member contributions.
    13    § 3. Subparagraph (i) of paragraph 9 of subdivision e of section 504-d
    14  of  the  retirement  and social security law, as added by chapter 622 of
    15  the laws of 2004, is amended to read as follows:
    16    (i) All additional member contributions required by  this  subdivision
    17  (and  any  interest thereon) which are received by the retirement system
    18  of which the participant is a member shall be paid into  its  contingent
    19  reserve  fund  and  shall  not  for  any  purpose be deemed to be member
    20  contributions or accumulated contributions of  a  member  under  section
    21  five hundred seventeen of this article or otherwise while he or she is a
    22  participant  in  the twenty-year retirement program or otherwise, except
    23  that, upon the participant's separation from city service as a result of
    24  retirement, a surplus of such additional member contributions  that  are
    25  paid  into  the  retirement system's contingent reserve fund may be used
    26  for the sole purpose of offsetting a deficit of  basic  member  contrib-
    27  utions.
    28    § 4. Subdivision d of section 517 of the retirement and social securi-
    29  ty  law, as added by chapter 890 of the laws of 1976, is amended to read
    30  as follows:
    31    d. Notwithstanding any other provision of this article, a member shall
    32  be entitled to withdraw any excess contributions within  six  months  of
    33  becoming  subject  to  this article. Thereafter, such contributions, and
    34  interest thereon, may only be withdrawn upon  separation  from  service.
    35  Upon  retirement,  such  excess contributions, and any interest thereon,
    36  may be withdrawn in a single lump sum, or at the election of the  member
    37  may be paid as an annuity under an option authorized pursuant to section
    38  five hundred fourteen of this article, or at the election of the partic-
    39  ipant may be used to offset a deficit of additional member contributions
    40  as  required  pursuant  to  sections  five  hundred four-a, five hundred
    41  four-b, and five hundred four-d of this article. The use of basic member
    42  contributions to offset a deficit  of  additional  member  contributions
    43  does  not  affect the contributions' tax designation pursuant to section
    44  414(h) of the Internal Revenue Code.
    45    § 5. Subparagraph (i) of paragraph 8 of subdivision e of section 604-a
    46  of the retirement and social security law, as added by  chapter  547  of
    47  the laws of 1992, is amended to read as follows:
    48    (i)  Such  additional  member contributions (and any interest thereon)
    49  shall be paid into the contingent reserve fund of the retirement  system
    50  of  which  the  participant is a member and shall not for any purpose be
    51  deemed to be member contributions  or  accumulated  contributions  of  a
    52  member  under  section six hundred thirteen of this article or otherwise
    53  while he or she is a participant in the twenty-year  retirement  program
    54  or  otherwise,  except that, upon the participant's separation from city
    55  service as a result of retirement, a surplus of such  additional  member
    56  contributions  that  are  paid  into  the retirement system's contingent
        S. 6460                             3
 
     1  reserve fund may be used for the sole purpose of offsetting a deficit of
     2  basic member contributions.
     3    § 6. Subparagraph (i) of paragraph 8 of subdivision e of section 604-b
     4  of  the  retirement  and social security law, as added by chapter 529 of
     5  the laws of 1994, is amended to read as follows:
     6    (i) Such additional member contributions (and  any  interest  thereon)
     7  shall  be paid into the contingent reserve fund of the retirement system
     8  of which the participant is a member and shall not for  any  purpose  be
     9  deemed  to  be  member  contributions  or accumulated contributions of a
    10  member under section six hundred thirteen of this article  or  otherwise
    11  while  he or she is a participant in the twenty-five-year and age fifty-
    12  five retirement program or otherwise,  except  that,  upon  the  partic-
    13  ipant's  separation  from  city  service  as  a  result of retirement, a
    14  surplus of such additional member contributions that are paid  into  the
    15  retirement  system's  contingent  reserve  fund may be used for the sole
    16  purpose of offsetting a deficit of basic member contributions.
    17    § 7. Subparagraph (i) of paragraph 7 of subdivision d of section 604-c
    18  of the retirement and social security law, as added by chapter 96 of the
    19  laws of 1995, is amended to read as follows:
    20    (i) All additional member contributions required by  this  subdivision
    21  (and  any  interest  paid  thereon) which are received by the retirement
    22  system of which the participant is a  member  shall  be  paid  into  its
    23  contingent  reserve  fund  and shall not for any purpose be deemed to be
    24  member contributions or accumulated  contributions  of  a  member  under
    25  section  six  hundred  thirteen of this article or otherwise while he or
    26  she is a participant in the twenty-five-year early retirement program or
    27  otherwise, except that, upon  the  participant's  separation  from  city
    28  service  as  a result of retirement, a surplus of such additional member
    29  contributions that are paid  into  the  retirement  system's  contingent
    30  reserve fund may be used for the sole purpose of offsetting a deficit of
    31  basic member contributions.
    32    § 8. Subparagraph (i) of paragraph 8 of subdivision e of section 604-c
    33  of  the  retirement  and social security law, as added by chapter 472 of
    34  the laws of 1995, is amended to read as follows:
    35    (i) Such additional member contributions (and  any  interest  thereon)
    36  shall  be paid into the contingent reserve fund of the retirement system
    37  of which the participant is a member and shall not for  any  purpose  be
    38  deemed  to  be  member  contributions  or accumulated contributions of a
    39  member under section six hundred thirteen of this article  or  otherwise
    40  while he or she is a participant in the twenty-year/age fifty retirement
    41  program  or  otherwise,  except  that, upon the participant's separation
    42  from city service as a result of retirement, a  surplus  of  such  addi-
    43  tional  member  contributions that are paid into the retirement system's
    44  contingent reserve fund may be used for the sole purpose of offsetting a
    45  deficit of basic member contributions.
    46    § 9. Subparagraph (i) of paragraph 6 of subdivision f of section 604-d
    47  of the retirement and social security law, as added by chapter 96 of the
    48  laws of 1995, is amended to read as follows:
    49    (i) All additional member contributions required by  this  subdivision
    50  (and  any  interest  paid  thereon) which are received by the retirement
    51  system of which the participant is a  member  shall  be  paid  into  its
    52  contingent  reserve  fund  and shall not for any purpose be deemed to be
    53  member contributions or accumulated  contributions  of  a  member  under
    54  section  six  hundred  thirteen of this article or otherwise while he or
    55  she is a participant in the age fifty-seven retirement program or other-
    56  wise, except that, upon the participant's separation from  city  service
        S. 6460                             4
 
     1  as  a result of retirement, a surplus of such additional member contrib-
     2  utions that are paid into the  retirement  system's  contingent  reserve
     3  fund  may  be used for the sole purpose of offsetting a deficit of basic
     4  member contributions.
     5    §  10.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
     6  604-e of the retirement and social security law, as added by chapter 576
     7  of the laws of 2000, is amended to read as follows:
     8    (i) Such additional member contributions (and  any  interest  thereon)
     9  shall  be paid into the contingent reserve fund of the retirement system
    10  of which the participant is a member and shall not for  any  purpose  be
    11  deemed  to  be  member  contributions  or accumulated contributions of a
    12  member under section six hundred thirteen of this article  or  otherwise
    13  while  he  or  she  is  a participant in the twenty-five year retirement
    14  program or otherwise, except that,  upon  the  participant's  separation
    15  from  city  service  as  a result of retirement, a surplus of such addi-
    16  tional member contributions that are paid into the  retirement  system's
    17  contingent reserve fund may be used for the sole purpose of offsetting a
    18  deficit of basic member contributions.
    19    §  11.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
    20  604-e of the retirement and social security law, as added by chapter 577
    21  of the laws of 2000, is amended to read as follows:
    22    (i) Such additional member contributions (and  any  interest  thereon)
    23  shall  be paid into the contingent reserve fund of the retirement system
    24  of which the participant is a member and shall not for  any  purpose  be
    25  deemed  to  be  member  contributions  or accumulated contributions of a
    26  member under section six hundred thirteen of this article  or  otherwise
    27  while  he  or  she  is  a participant in the twenty-five year retirement
    28  program or otherwise, except that,  upon  the  participant's  separation
    29  from  city  service  as  a result of retirement, a surplus of such addi-
    30  tional member contributions that are paid into the  retirement  system's
    31  contingent reserve fund may be used for the sole purpose of offsetting a
    32  deficit of basic member contributions.
    33    §  12.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
    34  604-f of the retirement and social security law, as added by chapter 559
    35  of the laws of 2001, is amended to read as follows:
    36    (i) Such additional member contributions (and  any  interest  thereon)
    37  shall  be paid into the contingent reserve fund of the retirement system
    38  of which the participant is a member and shall not for  any  purpose  be
    39  deemed  to  be  member  contributions  or accumulated contributions of a
    40  member under section six hundred thirteen of this article  or  otherwise
    41  while  he  or  she  is  a participant in the twenty-five year retirement
    42  program or otherwise, except that,  upon  the  participant's  separation
    43  from  city  service  as  a result of retirement, a surplus of such addi-
    44  tional member contributions that are paid into the  retirement  system's
    45  contingent reserve fund may be used for the sole purpose of offsetting a
    46  deficit of basic member contributions.
    47    §  13.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
    48  604-f of the retirement and social security law, as added by chapter 582
    49  of the laws of 2001, is amended to read as follows:
    50    (i) Such additional member contributions, and  any  interest  thereon,
    51  shall  be paid into the contingent reserve fund of the retirement system
    52  of which the participant is a member and shall not for  any  purpose  be
    53  deemed  to  be  member  contributions  or accumulated contributions of a
    54  member under section six hundred thirteen of this article  or  otherwise
    55  while  he  or  she  is  a participant in the twenty-five year retirement
    56  program or otherwise, except that,  upon  the  participant's  separation
        S. 6460                             5
 
     1  from  city  service  as  a result of retirement, a surplus of such addi-
     2  tional member contributions that are paid into the  retirement  system's
     3  contingent reserve fund may be used for the sole purpose of offsetting a
     4  deficit of basic member contributions.
     5    §  14.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
     6  604-g of the retirement and social security law, as added by chapter 414
     7  of the laws of 2002, is amended to read as follows:
     8    (i) Such additional member contributions (and  any  interest  thereon)
     9  shall  be paid into the contingent reserve fund of the retirement system
    10  of which the participant is a member and shall not for  any  purpose  be
    11  deemed  to  be  member  contributions  or accumulated contributions of a
    12  member under section six hundred thirteen of this article  or  otherwise
    13  while  he  or  she  is  a  participant in the twenty-five year/age fifty
    14  retirement program or otherwise, except  that,  upon  the  participant's
    15  separation  from  city  service  as a result of retirement, a surplus of
    16  such additional member contributions that are paid into  the  retirement
    17  system's  contingent  reserve  fund  may be used for the sole purpose of
    18  offsetting a deficit of basic member contributions.
    19    § 15. Subparagraph (i) of paragraph 10 of  subdivision  e  of  section
    20  604-h of the retirement and social security law, as added by chapter 682
    21  of the laws of 2003, is amended to read as follows:
    22    (i)  Such  additional  member contributions (and any interest thereon)
    23  shall be paid into the contingent reserve fund of the retirement  system
    24  of  which  the  participant is a member and shall not for any purpose be
    25  deemed to be member contributions  or  accumulated  contributions  of  a
    26  member  under  section six hundred thirteen of this article or otherwise
    27  while he or she is a participant  in  the  twenty-five  year  retirement
    28  program  or  otherwise,  except  that, upon the participant's separation
    29  from city service as a result of retirement, a  surplus  of  such  addi-
    30  tional  member  contributions that are paid into the retirement system's
    31  contingent reserve fund may be used for the sole purpose of offsetting a
    32  deficit of basic member contributions.
    33    § 16. Section 613 of the retirement and social security law is amended
    34  by adding a new subdivision h to read as follows:
    35    h. Notwithstanding any other provision of law to  the  contrary,  upon
    36  the  participant's  separation  from city service as a result of retire-
    37  ment, a participant may use any excess  basic  member  contributions  to
    38  offset a deficit of additional member contributions as required pursuant
    39  to  sections six hundred four-a, six hundred four-b, six hundred four-c,
    40  as added by chapter 96 of the laws of 1995, six hundred four-c, as added
    41  by chapter 472 of the laws of 1995,  six  hundred  four-d,  six  hundred
    42  four-e, as added by chapter 576 of the laws of 2000, six hundred four-e,
    43  as  added  by  chapter  577  of the laws of 2000, six hundred four-f, as
    44  added by chapter 559 of the laws of 2001, six hundred four-f,  as  added
    45  by  chapter 582 of the laws of 2001, six hundred four-g, and six hundred
    46  four-h of this article. The use of basic member contributions to  offset
    47  a  deficit  of  additional  member  contributions  does  not  affect the
    48  contributions' tax designation pursuant to section 414(h) of the  Inter-
    49  nal Revenue Code.
    50    § 17. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          PROVISIONS  OF  PROPOSED  LEGISLATION: This proposed legislation would
        amend the contribution provisions applicable to certain  New  York  City
        Employees'  Retirement  System (NYCERS) Special Plans subject to Retire-
        ment and Social Security Law (RSSL) Article 14 and Article 15 to  allow,
        S. 6460                             6

        upon  retirement,  using  any excess basic or additional member contrib-
        utions to offset any deficits in such other contribution account.
          The  Effective  Date  of the proposed legislation would be the date of
        enactment.
          PLANS IMPACTED BY THE PROPOSED LEGISLATION: The  proposed  legislation
        would  cover those members of NYCERS who are participants in the follow-
        ing special plans requiring the payment of  additional  member  contrib-
        utions (Special Plans):
          Article 14 Special Plans:
          Twenty-Year  Retirement  Program  for New York City Correction Members
        below the Rank of Captain
          Twenty-Year Retirement Program for New York City Correction Members of
        the Rank of Captain or above
          Twenty-Year Retirement Program for New York City Correction Members
          Article 15 Special Plans:
          Twenty-Year Retirement Program for New York City Sanitation Members
          Twenty-Five-Year and Age Fifty-Five Retirement Program  for  New  York
        City Transit Authority Members
          Optional  Twenty-Five-Year  Early  Retirement  Program for Certain New
        York City Members
          Twenty-Year/Age Fifty Retirement Program  for  Triborough  Bridge  and
        Tunnel Members
          Age Fifty-Seven Retirement Program for Certain New York City Members
          Twenty-Five Year Retirement Program for Dispatcher Members
          Twenty-Five Year Retirement Program for EMT Members
          Twenty-Five Year Retirement Program for Deputy Sheriff Members
          Twenty-Five  Year  Retirement  Program  for  Special  Officer, Parking
        Control Specialist, School Safety Agent, Campus  Peace  Officer  or  New
        York City Taxi and Limousine Inspector Members
          Twenty-Five Year/Age Fifty Retirement Program for Automotive Members
          Twenty-Five Year Retirement Program for Police Communications Members
          IMPACT  ON  BENEFITS PAYABLE: The proposed legislation would not mate-
        rially affect the benefits payable to participants in the Special Plans.
        Rather, the proposed legislation would help  reduce  the  administrative
        burdens  associated  with  requiring the return of excess basic or addi-
        tional member contributions, and requiring the return of excess basic or
        additional member contributions, and requiring a  separate  payment  for
        any  contribution  deficits  in  such accounts (or the calculation of an
        actuarial reduction based such deficits) upon retirement.
          FINANCIAL IMPACT -  EMPLOYER  CONTRIBUTIONS:  The  enactment  of  this
        proposed legislation would not result in any change in employer contrib-
        utions.
          STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
        ary for, and independent of, the New York City Pension Funds and Retire-
        ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the
        Conference of Consulting Actuaries and a Member of the American  Academy
        of Actuaries. I meet the Qualification Standards of the American Academy
        of Actuaries to render the actuarial opinion contained herein.
          FISCAL  NOTE  IDENTIFICATION: This Fiscal Note 2017-10 dated April 25,
        2017, was prepared by the Chief Actuary for the New York City Employees'
        Retirement System. This estimate is intended for  use  only  during  the
        2017 Legislative Session.