STATE OF NEW YORK
________________________________________________________________________
6559--A
2023-2024 Regular Sessions
IN SENATE
April 26, 2023
___________
Introduced by Sen. JACKSON -- 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 retirement and social security law, in relation to
disability retirement of certain New York city correction members
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 1 of subdivision b of section 507-a of the
2 retirement and social security law, as added by chapter 452 of the laws
3 of 1983, is amended to read as follows:
4 1. Have at least ten years of total service credit, except that a
5 member in the uniformed personnel of the New York city department of
6 correction may file an application without regard to length of service,
7 and
8 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would modify disability benefits
for certain correction officers with less than 10 years of credited
service without having to show the disability resulted from a work-re-
lated accident.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS
2025 0.4
2026 0.4
2027 0.4
2028 0.4
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08668-04-4
S. 6559--A 2
2029 0.4
2030 0.4
2031 0.4
2032 0.4
2033 0.4
2034 0.5
2035 0.5
2036 0.5
2037 0.6
2038 0.6
2039 2.1
2040 2.2
2041 2.3
2042 2.3
2043 2.4
2044 2.5
2045 2.6
2046 2.7
2047 2.8
2048 2.8
2049 2.9
Employer Contribution impact beyond Fiscal Year 2049 is not shown.
Projected contributions include future new hires that may be impacted.
The entire increase in employer contributions will be allocated to New
York City.
INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
as of June 30, 2023 ($ in Millions)
Present Value (PV) NYCERS
PV of Benefits: 0.7
PV of Employee Contributions: 0.0
PV of Employer Contributions: 0.7
Unfunded Accrued Liabilities: (12.6)
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
NYCERS
Number of Payments: 14
Fiscal Year of Last Payment: 2038
Amortization Payment: (1.5) M
Unfunded Accrued Liability increases were amortized over the expected
remaining working lifetime of those impacted by the benefit changes
using level dollar payments.
CENSUS DATA: The estimates presented herein are based on preliminary
census data collected as of June 30, 2023. The census data for the
impacted population is summarized below.
NYCERS
Active Members
- Number Count: 2,273
- Average Age: 37.9
- Average Service: 6.2
- Average Salary: 114,400
S. 6559--A 3
IMPACT ON MEMBER BENEFITS: Currently, correction officers who are
determined to be disabled by the NYCERS' Medical Board, and have accumu-
lated at least 10 years of service credit, are eligible for an immediate
ordinary disability retirement (ODR) allowance equal to the greater of
1/3 of Final Average Salary (FAS), or 1/60 of FAS multiplied by credited
service.
If the correction officer is also eligible for Service Retirement, the
ODR benefit cannot be less than the retirement allowance for Service
Retirement.
Under the proposed legislation, the ODR benefit would become available
to disabled correction officers, subject to approval under the applica-
ble statutes and procedures established by NYCERS, irrespective of
service credit accumulation.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement systems. In addition:
* New entrants were assumed to replace exiting members so that total
payroll increases by 3% each year for impacted groups. New entrant demo-
graphics were developed based on data for recent new hires and actuarial
judgement.
* The proposed Section 507-a benefit is assumed to only be available
to eligible correction officers prospectively on and after the effective
date of the legislation.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the actuarial assumptions, methods, and models used, demo-
graphics of the impacted population and other factors such as invest-
ment, contribution, and other risks. If actual experience deviates from
actuarial assumptions, the actual costs could differ from those
presented herein. Quantifying these risks is beyond the scope of this
Fiscal Note.
This Fiscal Note is intended to measure pension-related impacts and
does not include other potential costs (e.g., administrative and Other
Postemployment Benefits).
STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
sky are members of the Society of Actuaries and the American Academy of
Actuaries. We are members of NYCERS but do not believe it impairs our
objectivity and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
To the best of our 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 2024-31 dated March 19,
2024 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 2024 Legislative Session.
