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S06877 Summary:

S06877 Actions:

S06877 Committee Votes:

S06877 Floor Votes:

S06877 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6877
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                      May 12, 2023
                                       ___________
 
        Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
 
        AN  ACT  to  amend  the  administrative code of the city of New York, in
          relation to dual retirement system membership in  the  New  York  city
          teachers'  retirement  system, the New York city employees' retirement
          system, and the New York city board of education retirement system
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. The administrative code of the city of New York is amended
     2  by adding a new section 13-638.7 to read as follows:
     3    § 13-638.7  Dual  memberships.  a.  Notwithstanding  any  inconsistent
     4  provision  of this chapter,  including section 13-184, or any other law,
     5  any person who is otherwise a member of  the  New  York  city  teachers'
     6  retirement  system,  the  New York city employees' retirement system, or
     7  the New York city board of  education  retirement  system,  but  who  is
     8  eligible  to join any other retirement system maintained by the city due
     9  to a separate,  concurrent  eligible  employment  with  a  participating
    10  employer  may  become  a member of the subsequent city funded retirement
    11  system provided such benefits in the  first  system  of  membership  are
    12  suspended  during  their  active membership in the subsequent retirement
    13  system, including any  period  of  retroactive  membership  pursuant  to
    14  subdivision b of this section.
    15    b.  Any  such  membership in the subsequent retirement system shall be
    16  elected in writing  and  filed  with  both  retirement  systems.    Such
    17  election  shall  be  effective  on the earlier of the date the member is
    18  mandated into membership or the date the system receives an  application
    19  for membership, as applicable, and shall be subject to the rights, bene-
    20  fits,  privileges, and obligations of such membership, including payment
    21  of all required member contributions.   Such election  shall  be  irrev-
    22  ocable  so  long  as the member is employed in the position eligible for
    23  membership in the subsequent system.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10861-02-3
        S. 6877                             2
 
     1    c. Suspension of membership shall result in suspension of all  rights,
     2  benefits, privileges, and obligations in the suspended system, including
     3  loan  eligibility  and the accrual or ability to purchase service credit
     4  relating to the suspension period.  Loan payments on  outstanding  loans
     5  shall  remain in effect.  Concurrent employment shall not provide eligi-
     6  bility for multiple death benefits  from  multiple  retirement  systems.
     7  Any  applicable  death  benefits  shall  be from the system in which the
     8  member is active.  The previous system shall return  contributions  plus
     9  interest as applicable.
    10    d.  Members  in the New York city teachers' retirement system, the New
    11  York city employees' retirement system, and the New York city  board  of
    12  education retirement system may only accrue service credit in one system
    13  for any period of concurrent employment.
    14    e.  Nothing in this section shall be deemed to modify the requirements
    15  of section forty-three or six hundred forty-five of the  retirement  and
    16  social security law regarding transfer or reinstatement of membership or
    17  the requirements of any applicable transferred contributor laws.
    18    § 2. This act shall take effect immediately.
    19    FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY OF BILL: This proposed legislation would amend the Administra-
        tive  Code of the City of New York (ACCNY) to add a new Section 13-638.7
        allowing certain employees who have concurrent eligible  employment  for
        participation  in  two  New  York  City  funded retirement systems (City
        System) a one-time chance to suspend their current membership  in  their
        first  City  System and elect to participate in the other City System as
        of the earlier of the date of election, or the date on which the  member
        would  have  been  mandated  into the subsequent system absent the prior
        membership.
          Currently, members of the New York City  Employees  Retirement  System
        (NYCERS),  the  New  York City Teachers Retirement System (TRS), and the
        New York City Board of Education Retirement System (BERS) may  not  join
        another  system  if they already have an active membership in one of the
        other systems without terminating the employment for which  the  initial
        membership was created.
          Under the proposed legislation, a City retirement system member who is
        eligible  to  join a second City retirement system based on dual employ-
        ment would be eligible to elect membership in the  other  eligible  City
        retirement system without the cessation of employment, and would forfeit
        applicable rights, benefits, and privileges of the initial prior member-
        ship  resulting in a return of applicable contributions with interest. A
        member may only accrue service credit in one system for  any  period  of
        concurrent employment.
          This  change  in  legislation would not modify the current transfer or
        reinstatement provisions available to members and therefore the  changes
        would be primarily administrative.
          Effective Date: Upon enactment.
          FINANCIAL IMPACT: There is no data available to estimate the number of
        members who might be eligible to participate in more than one retirement
        system, and potentially benefit from this proposed legislation.
          With  respect  to  an  individual member, the financial impact of this
        proposed legislation could vary greatly depending on the member's length
        of service, age, and salary history.
          Based on the relatively small population anticipated to be impacted by
        this proposed legislation and that these changes are more administrative
        in nature,  the  cost  associated  with  this  proposed  legislation  is
        expected to be de minimis.
        S. 6877                             3
 
          RISK  AND  UNCERTAINTY:  The  costs for this proposed legislation will
        depend on the number and demographics of the impacted population.
          Not measured in this Fiscal Note are the following:
          *  The  initial  additional  administrative  costs  to  implement  the
        proposed legislation.
          * The impact of this  proposed  legislation  on  Other  Postemployment
        Benefit costs.
          STATEMENT  OF  ACTUARIAL  OPINION:  I, Marek Tyszkiewicz, am the Chief
        Actuary for, and independent of, the New York  City  Retirement  Systems
        and  Pension  Funds. I am an Associate of the Society of Actuaries and a
        Member of the American Academy of Actuaries. I am a member of NYCERS but
        do not believe it impairs my objectivity and I  meet  the  Qualification
        Standards  of  the American Academy of Actuaries to render the actuarial
        opinion contained herein. To the  best  of  my  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 2023-43 dated May 5, 2023
        was  prepared  by  the  Chief  Actuary  for the New York City Employees'
        Retirement System, the New York City Teachers'  Retirement  System,  and
        the  New  York City Board of Education Retirement System.  This estimate
        is intended for use only during the 2023 Legislative Session.