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S06988 Summary:

S06988 Actions:

S06988 Committee Votes:

S06988 Floor Votes:

S06988 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6988--B
 
                               2021-2022 Regular Sessions
 
                    IN SENATE
 
                                      May 20, 2021
                                       ___________
 
        Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee -- 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 committee
 
        AN ACT to amend the retirement and social security law and the  adminis-
          trative code of the city of New York, in relation to the establishment
          of  twenty-five  year  retirement programs for members of the New York
          city employees' retirement system employed as fire protection  inspec-
          tors and associate fire protection inspectors
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision a of section 444 of the retirement  and  social
     2  security  law, as amended by section 141 of subpart B of part C of chap-
     3  ter 62 of the laws of 2011, is amended to read as follows:
     4    a. Except as provided in subdivision c of section four hundred  forty-
     5  five-a  of  this  article,  subdivision c of section four hundred forty-
     6  five-b of this article, subdivision c of  section  four  hundred  forty-
     7  five-c   of   this  article,  subdivision  c  of  section  four  hundred
     8  forty-five-d of this article as added by chapter four  hundred  seventy-
     9  two  of  the  laws  of  nineteen  hundred  ninety-five, subdivision c of
    10  section four hundred forty-five-e of  this  article,  subdivision  c  of
    11  section  four  hundred forty-five-f of this article [and], subdivision c
    12  of section four hundred forty-five-h of this article and  subdivision  c
    13  of  section  four  hundred  forty-five-j  of  this  article, the maximum
    14  retirement benefit computed without optional modification provided to  a
    15  member  of  a retirement system who is subject to the provisions of this
    16  article, other than a police officer,  a  firefighter,  an  investigator
    17  member  of  the  New York city employees' retirement system, a member of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08561-06-2
        S. 6988--B                          2
 
     1  the uniformed personnel in institutions under the  jurisdiction  of  the
     2  New  York  city  department  of correction who receives a performance of
     3  duty disability retirement allowance, a member of the uniformed  person-
     4  nel  in  institutions  under  the  jurisdiction  of  the  department  of
     5  corrections and community supervision or a security  hospital  treatment
     6  assistant, as those terms are defined in subdivision i of section eight-
     7  y-nine  of  this  chapter, who receives a performance of duty disability
     8  retirement allowance, a member of a  teachers'  retirement  system,  New
     9  York city employees' retirement system, New York city board of education
    10  retirement system or a member of the New York state and local employees'
    11  retirement system or a member of the New York city employees' retirement
    12  system or New York city board of education retirement system employed as
    13  a  special  officer,  parking  control  specialist, school safety agent,
    14  campus peace officer, taxi and limousine inspector or a police  communi-
    15  cations  member  and  who  receives  a  performance  of  duty disability
    16  pension, from funds  other  than  those  based  on  a  member's  own  or
    17  increased-take-home-pay  contributions,  shall, before any reduction for
    18  early retirement, be sixty per centum  of  the  first  fifteen  thousand
    19  three  hundred  dollars of final average salary, and fifty per centum of
    20  final average  salary  in  excess  of  fifteen  thousand  three  hundred
    21  dollars, and forty per centum of final average salary in excess of twen-
    22  ty-seven  thousand  three  hundred  dollars, provided, however, that the
    23  benefits provided by subdivision c of section four hundred  forty-five-d
    24  of this article as added by chapter four hundred seventy-two of the laws
    25  of  nineteen  hundred  ninety-five  based  upon  the  additional  member
    26  contributions required by subdivision d of  such  section  four  hundred
    27  forty-five-d shall be subject to the maximum retirement benefit computa-
    28  tions set forth in this section. The maximum retirement benefit computed
    29  without  optional  modification payable to a police officer, an investi-
    30  gator member of the New York city  employees'  retirement  system  or  a
    31  firefighter  shall equal that payable upon completion of thirty years of
    32  service, except that the maximum  service  retirement  benefit  computed
    33  without  optional  modification shall equal that payable upon completion
    34  of thirty-two years of service.
    35    § 2. Subdivision a of section 445 of the retirement and social securi-
    36  ty law, as amended by chapter 245 of the laws of  2021,  is  amended  to
    37  read as follows:
    38    a.  No  member of a retirement system who is subject to the provisions
    39  of this article shall retire without regard to age, exclusive of retire-
    40  ment for disability, unless he or she is a police officer,  an  investi-
    41  gator  member  of  the New York city employees' retirement system, fire-
    42  fighter, correction officer, a qualifying member as defined  in  section
    43  eighty-nine-t,  as  added by chapter six hundred fifty-seven of the laws
    44  of nineteen hundred ninety-eight, of this chapter, sanitation worker,  a
    45  special  officer  (including persons employed by the city of New York in
    46  the title urban park ranger or  associate  urban  park  ranger),  school
    47  safety  agent,  campus  peace officer or a taxi and limousine commission
    48  inspector member of the New York city employees'  retirement  system  or
    49  the  New  York  city  board of education retirement system, a dispatcher
    50  member of the New York  city  employees'  retirement  system,  a  police
    51  communications member of the New York city employees' retirement system,
    52  an EMT member of the New York city employees' retirement system, a depu-
    53  ty  sheriff  member of the New York city employees' retirement system, a
    54  fire protection inspector member of the New York city employees' retire-
    55  ment system, a correction officer of the Westchester  county  correction
    56  department  as  defined  in  section  eighty-nine-e  of  this chapter or
        S. 6988--B                          3
 
     1  employed in Suffolk county as a peace officer,  as  defined  in  section
     2  eighty-nine-s, as added by chapter five hundred eighty-eight of the laws
     3  of  nineteen  hundred ninety-seven, of this chapter, employed in Suffolk
     4  county  as  a correction officer, as defined in section eighty-nine-f of
     5  this chapter, or employed in Nassau  county  as  a  correction  officer,
     6  uniformed correction division personnel, sheriff, undersheriff or deputy
     7  sheriff,  as  defined  in  section  eighty-nine-g  of  this  chapter, or
     8  employed in Nassau county as an ambulance medical technician,  an  ambu-
     9  lance  medical  technician/supervisor or a member who performs ambulance
    10  medical technician related services, or a  police  medic,  police  medic
    11  supervisor  or  a  member who performs police medic related services, as
    12  defined in section eighty-nine-s, as amended  by  chapter  five  hundred
    13  seventy-eight  of  the  laws  of  nineteen hundred ninety-eight, of this
    14  chapter, or employed in Nassau county as a peace officer, as defined  in
    15  section  eighty-nine-s,  as added by chapter five hundred ninety-five of
    16  the laws of nineteen hundred ninety-seven, of this chapter, or  employed
    17  in  Albany county as a sheriff, undersheriff, deputy sheriff, correction
    18  officer or identification officer, as defined in  section  eighty-nine-h
    19  of  this  chapter  or  is  employed in St. Lawrence county as a sheriff,
    20  undersheriff, deputy  sheriff  or  correction  officer,  as  defined  in
    21  section  eighty-nine-i  of this chapter or is employed in Orleans county
    22  as a sheriff, undersheriff, deputy sheriff  or  correction  officer,  as
    23  defined  in  section  eighty-nine-l  of  this  chapter or is employed in
    24  Jefferson  county  as  a  sheriff,  undersheriff,  deputy   sheriff   or
    25  correction  officer, as defined in section eighty-nine-j of this chapter
    26  or is employed in Onondaga county  as  a  deputy  sheriff-jail  division
    27  competitively  appointed  or  as  a  correction  officer,  as defined in
    28  section eighty-nine-k of this chapter or is employed in a  county  which
    29  makes  an  election under subdivision j of section eighty-nine-p of this
    30  chapter as a sheriff, undersheriff, deputy sheriff or correction officer
    31  as defined in such section eighty-nine-p or is employed in Broome County
    32  as a sheriff, undersheriff, deputy sheriff  or  correction  officer,  as
    33  defined  in  section eighty-nine-m of this chapter or is a Monroe county
    34  deputy sheriff-court security, or deputy sheriff-jailor  as  defined  in
    35  section  eighty-nine-n, as added by chapter five hundred ninety-seven of
    36  the laws of nineteen hundred ninety-one, of this chapter or is  employed
    37  in   Greene  county  as  a  sheriff,  undersheriff,  deputy  sheriff  or
    38  correction officer, as defined in section eighty-nine-o of this  chapter
    39  or  is  a  traffic officer with the town of Elmira as defined in section
    40  eighty-nine-q of this chapter or is employed by Suffolk county as a park
    41  police officer, as defined in section eighty-nine-r of this  chapter  or
    42  is  a peace officer employed by a county probation department as defined
    43  in section eighty-nine-t, as added by chapter six hundred three  of  the
    44  laws of nineteen hundred ninety-eight, of this chapter or is employed in
    45  Rockland  county as a deputy sheriff-civil as defined in section eighty-
    46  nine-v of this chapter as added by chapter four hundred forty-one of the
    47  laws of two thousand one, or is employed in Rockland county as a superi-
    48  or correction officer as defined in section eighty-nine-v of this  chap-
    49  ter  as added by chapter five hundred fifty-six of the laws of two thou-
    50  sand one or is a paramedic employed by the police department in the town
    51  of Tonawanda and retires under the provisions of  section  eighty-nine-v
    52  of  this  chapter,  as  added by chapter four hundred seventy-two of the
    53  laws of two thousand one, or is a county fire marshal, supervising  fire
    54  marshal,  fire  marshal,  assistant  fire  marshal, assistant chief fire
    55  marshal or chief fire marshal  employed  by  the  county  of  Nassau  as
    56  defined  in section eighty-nine-w of this chapter and is in a plan which
        S. 6988--B                          4

     1  permits immediate retirement upon completion of a  specified  period  of
     2  service  without  regard  to age. Except as provided in subdivision c of
     3  section four hundred forty-five-a of  this  article,  subdivision  c  of
     4  section  four  hundred  forty-five-b  of  this article, subdivision c of
     5  section four hundred forty-five-c of  this  article,  subdivision  c  of
     6  section  four  hundred  forty-five-d  of  this article, subdivision c of
     7  section four hundred forty-five-e of  this  article,  subdivision  c  of
     8  section  four  hundred forty-five-f of this article [and], subdivision c
     9  of section four hundred forty-five-h of this article, and subdivision  c
    10  of section four hundred forty-five-j of this article, a member in such a
    11  plan and such an occupation, other than a police officer or investigator
    12  member of the New York city employees' retirement system or a firefight-
    13  er,  shall not be permitted to retire prior to the completion of twenty-
    14  five years of credited service; provided, however, if such a  member  in
    15  such an occupation is in a plan which permits retirement upon completion
    16  of  twenty years of service regardless of age, he or she may retire upon
    17  completion of  twenty  years  of  credited  service  and  prior  to  the
    18  completion  of twenty-five years of service, but in such event the bene-
    19  fit provided from funds other than those based on such  a  member's  own
    20  contributions  shall  not  exceed two per centum of final average salary
    21  per each year of credited service.
    22    § 3. The retirement and social security law is amended by adding a new
    23  section 445-j to read as follows:
    24    § 445-j. Optional twenty-five year improved benefit retirement program
    25  for fire protection inspector members.  a.  Definitions.  The  following
    26  words and phrases as used in this section shall have the following mean-
    27  ings unless a different meaning is plainly required by the context.
    28    1. "Retirement system" shall mean the New York city employees' retire-
    29  ment system.
    30    2.  "Fire  protection inspector member" shall mean (i) a member of the
    31  retirement system who is subject to the provisions of this article,  who
    32  is employed by the city of New York or by the New York city fire depart-
    33  ment in a title whose duties are those of a fire protection inspector or
    34  associate fire protection inspector; and (ii) a member of the retirement
    35  system  who,  on  the  effective date of this section or thereafter, was
    36  employed by the city of New York or by the New York city fire department
    37  in a title whose duties are those of  a  fire  protection  inspector  or
    38  associate  fire protection inspector and who, subsequent thereto, became
    39  employed by the city of New York or by the New York city fire department
    40  in a title whose duties  require  the  supervision  of  employees  whose
    41  duties  are  those  of  a  fire  protection  inspector or associate fire
    42  protection inspector.
    43    3. "Twenty-five year improved benefit retirement program"  shall  mean
    44  all the terms and conditions of this section.
    45    4.  "Starting date of the twenty-five year improved benefit retirement
    46  program" shall mean the effective date of this section, as such date  is
    47  certified pursuant to section forty-one of the legislative law.
    48    5.  "Participant  in  the twenty-five year improved benefit retirement
    49  program" shall mean any fire protection inspector member who, under  the
    50  applicable  provisions  of subdivision b of this section, is entitled to
    51  the rights, benefits and privileges and is subject to the obligations of
    52  the twenty-five year improved benefit retirement program, as  applicable
    53  to him or her.
    54    6.  "Administrative  code"  shall  mean the administrative code of the
    55  city of New York.
        S. 6988--B                          5
 
     1    7. "Accumulated  deductions"  shall  mean  accumulated  deductions  as
     2  defined  in  subdivision  eleven of section 13-101 of the administrative
     3  code.
     4    8. "Optional retirement provisions" shall mean the right to retire and
     5  receive a retirement allowance under this section upon the completion of
     6  twenty-five years of credited service.
     7    9.  "Credited  service"  for  purposes  of this section shall mean all
     8  service as a fire protection inspector member.
     9    b. Election of twenty-five year improved benefit  retirement  program.
    10  1. Subject to the provisions of paragraphs five and six of this subdivi-
    11  sion, any person who is a fire protection inspector member on the start-
    12  ing date of the twenty-five year improved benefit retirement program may
    13  elect  to  become a participant in the twenty-five year improved benefit
    14  retirement program by filing, within one hundred eighty days after  such
    15  starting  date,  a duly executed application for such participation with
    16  the retirement system, provided he or she  is  such  a  fire  protection
    17  inspector member on the date such application is filed.
    18    2.  Subject  to  the  provision of paragraphs five and six of the this
    19  subdivision, any person who becomes a fire protection  inspector  member
    20  after the starting date of the twenty-five year improved benefit retire-
    21  ment  program  may elect to become a participant in the twenty-five year
    22  improved benefit retirement program by filing, within one hundred eighty
    23  days after becoming such a fire  protection  inspector  member,  a  duly
    24  executed  application for such participation with the retirement system,
    25  provided he or she is such a fire protection  inspector  member  on  the
    26  date such application is filed.
    27    3.  Any  election to be a participant in the twenty-five year improved
    28  benefit retirement program shall be irrevocable.
    29    4. Where any participant in  the  twenty-five  year  improved  benefit
    30  retirement  program  shall cease to hold a position as a fire protection
    31  inspector member, he or she shall cease to be such  a  participant  and,
    32  during  any  period  in  which  such  a person does not hold such a fire
    33  protection inspector position, he or she shall not be a  participant  in
    34  the  twenty-five  year improved benefit retirement program and shall not
    35  be eligible for the benefits of subdivision c of this section.
    36    5. Where any participant in  the  twenty-five  year  improved  benefit
    37  retirement  program  terminates  service  as a fire protection inspector
    38  member and returns to such service as a fire protection inspector member
    39  at a later date, he or she shall again become such a participant on that
    40  date.
    41    6. Notwithstanding any other provision of law  to  the  contrary,  any
    42  person  who  is eligible to become a participant in the twenty-five year
    43  improved benefit retirement program pursuant to paragraph one or two  of
    44  this subdivision for the full one hundred eighty day period provided for
    45  in  such  applicable  paragraph  and  who  fails  to  timely file a duly
    46  executed application for such participation with the retirement  system,
    47  shall  not  thereafter  be  eligible  to  become  a  participant in such
    48  program.
    49    c. Service retirement benefits. Notwithstanding any other provision of
    50  law to the  contrary,  where  a  participant  in  the  twenty-five  year
    51  improved  benefit  retirement  program, who is otherwise qualified for a
    52  retirement allowance pursuant to the optional retirement  provision  set
    53  forth  in  subdivision a of this section, has made and/or paid, while he
    54  or she is a fire protection  inspector  member,  all  additional  member
    55  contributions  and  interest  (if any) required by subdivision d of this
    56  section, then:
        S. 6988--B                          6
 
     1    1. that participant, while he or she remains a participant, shall  not
     2  be  subject  to  the provisions of subdivision a of section four hundred
     3  forty-five of this article; and
     4    2.  if  that  participant,  while  such  a  participant,  retires from
     5  service, he or she shall not be subject to  the  provisions  of  section
     6  four hundred forty-four of this article; and
     7    3.  his  or her retirement allowance shall be an amount, on account of
     8  the required minimum period of service, equal to the sum of (i) an annu-
     9  ity  which  shall  be  the  actuarial  equivalent  of  the   accumulated
    10  deductions  from  his  or her pay during such period, (ii) a pension for
    11  increased-take-home-pay which shall be the actuarial equivalent  of  the
    12  reserve  for increased-take-home-pay to which he or she may be entitled,
    13  for such period, and (iii) a pension which, when added to  such  annuity
    14  and  such  pension  for  increased-take-home-pay,  produces a retirement
    15  allowance equal to fifty percent of his or  her  final  average  salary,
    16  plus  an  amount for each additional year of allowable service as a fire
    17  protection inspector member, or fraction thereof, beyond  such  required
    18  minimum period of service equal to two percent of his or her final aver-
    19  age  salary  for  such  allowable service as a fire protection inspector
    20  member during the period from completion of twenty-five years of  allow-
    21  able  service  as  a  fire  protection  inspector  member to the date of
    22  retirement but not to exceed more than five years of additional  service
    23  as a fire protection inspector member.
    24    d.  Additional  member  contributions.  1.  In  addition to the member
    25  contributions required pursuant to  section  13-125  or  13-162  of  the
    26  administrative  code,  each participant in the twenty-five year improved
    27  benefit retirement program shall contribute, subject to  the  applicable
    28  provisions of section 13-125.2 of the administrative code, an additional
    29  six  and  twenty-five  one-hundredths percent of his or her compensation
    30  earned from all allowable service as a fire protection inspector member,
    31  as a participant in the twenty-five  year  improved  benefit  retirement
    32  program, rendered on and after the starting date of the improved benefit
    33  retirement  program,  and  all  allowable  service  as a fire protection
    34  inspector member after such person  ceases  to  be  a  participant,  but
    35  before  he or she again becomes a participant pursuant to paragraph five
    36  of subdivision b of this section. A participant in the twenty-five  year
    37  improved  benefit  retirement program shall contribute additional member
    38  contributions until the later of the date as  of  which  he  or  she  is
    39  eligible  to  retire  with  thirty  years of allowable service as a fire
    40  protection inspector member under such retirement program, or the  first
    41  anniversary  of the starting date of the twenty-five year improved bene-
    42  fit retirement program. The additional contributions  required  by  this
    43  section  shall be in lieu of additional member contributions required by
    44  subdivision d of section four hundred forty-five-d of this  chapter,  as
    45  added by chapter ninety-six of the laws of nineteen hundred ninety-five,
    46  and  no  member paying additional contributions pursuant to this section
    47  shall be required to  pay  additional  contributions  pursuant  to  such
    48  subdivision d of section four hundred forty-five-d of this article.
    49    2.  Commencing  with  the  first full payroll period after each person
    50  becomes a participant in the twenty-five year improved  benefit  retire-
    51  ment  program,  additional member contributions at the rate specified in
    52  paragraph one of this subdivision shall  be  deducted,  subject  to  the
    53  applicable  provisions  of  section 13-125.2 of the administrative code,
    54  from the compensation of such participant on each and every  payroll  of
    55  such  participant  for each and every payroll period for which he or she
    56  is such a participant.
        S. 6988--B                          7
 
     1    3. (i) Subject to the provisions of subparagraph (ii)  of  this  para-
     2  graph,  where  any additional member contributions required by paragraph
     3  one of this subdivision are not paid by deductions from a  participant's
     4  compensation pursuant to paragraph two of this subdivision:
     5    (A)  that  participant shall be charged with a contribution deficiency
     6  consisting of such  unpaid  amounts,  together  with  interest  thereon,
     7  compounded annually; and
     8    (B)  such  interest  on  each amount of undeducted contributions shall
     9  accrue from the end of the payroll period for which  such  amount  would
    10  have been deducted from compensation if he or she had been a participant
    11  at  the  beginning  of  that payroll period and such deductions had been
    12  required for such payroll period  until  such  amount  is  paid  to  the
    13  retirement system; and
    14    (C)  (1)  interest  on each such amount included in such participant's
    15  contribution deficiency pursuant to this subparagraph  shall  be  calcu-
    16  lated  as if such additional member contributions never had been paid by
    17  such participant, and such interest shall accrue from  the  end  of  the
    18  payroll period to which an amount of such additional member contribution
    19  is  attributable,  compounded annually, until such amount is paid to the
    20  retirement system;
    21    (2) the rate of interest to be applied to each such amount during  the
    22  period  for  which interest accrues on that amount shall be equal to the
    23  rate or rates of interest required by law to be used  during  that  same
    24  period  to  credit  interest on the accumulated deductions of retirement
    25  system members;
    26    (ii) Except as provided in subparagraph (iii) of  this  paragraph,  no
    27  interest  shall  be due on any unpaid additional contributions which are
    28  not attributable to the period prior to the first  full  payroll  period
    29  referred to in paragraph two of this subdivision;
    30    (iii)  Should  any  person  who,  pursuant  to paragraph seven of this
    31  subdivision has withdrawn any additional member contributions  (and  any
    32  interest  paid  thereon)  again  become a participant in the twenty-five
    33  year improved benefit retirement program pursuant to paragraph  five  of
    34  subdivision  b  of this section, an appropriate amount shall be included
    35  in such participant's contribution deficiency (including interest there-
    36  on as calculated pursuant to this paragraph) for  any  credited  service
    37  with respect to which such person received a refund of additional member
    38  contributions  (including any amount of an unpaid loan balance deemed to
    39  have been returned to such person pursuant to paragraph  seven  of  this
    40  subdivision),  as if such additional member contributions never had been
    41  paid.
    42    4. The board of trustees of the retirement system may, consistent with
    43  the provisions of  this  subdivision,  promulgate  regulations  for  the
    44  payment of the additional member contributions required by this subdivi-
    45  sion, and any interest thereon, by a participant in the twenty-five year
    46  improved  benefit  retirement  program  (including the deduction of such
    47  contributions, and any interest thereon, from his or her compensation).
    48    5. Where a participant who is otherwise eligible for  service  retire-
    49  ment  pursuant  to  subdivision  c of this section did not, prior to the
    50  effective date of retirement, pay the entire amount  of  a  contribution
    51  deficiency  chargeable to him or her pursuant to paragraph three of this
    52  subdivision, or repay the entire amount of a loan of his  or  her  addi-
    53  tional member contributions pursuant to paragraph eight of this subdivi-
    54  sion (including accrued interest on such loan), that participant, never-
    55  theless,  shall  be eligible to retire pursuant to subdivision c of this
    56  section, provided, however, that where such participant is not  entitled
        S. 6988--B                          8
 
     1  to  a  refund  of  additional member contributions pursuant to paragraph
     2  seven of this subdivision, such participant's service retirement benefit
     3  calculated pursuant to the applicable provisions  of  subdivision  c  of
     4  this  section  shall be reduced by a life annuity (calculated in accord-
     5  ance with the method set forth in subdivision i of section  six  hundred
     6  thirteen-b  of  this chapter) which is actuarially equivalent to (i) the
     7  amount of any unpaid contribution deficiency chargeable to  such  member
     8  pursuant to paragraph three of this subdivision; plus (ii) the amount of
     9  any  unpaid  balance  of a loan of his or her additional member contrib-
    10  utions pursuant  to  paragraph  eight  of  this  subdivision  (including
    11  accrued interest on such loan).
    12    6.  Subject  to  the provisions of paragraph five of this subdivision,
    13  where a participant has not paid in  full  any  contribution  deficiency
    14  chargeable  to  him  or her pursuant to paragraph three of this subdivi-
    15  sion, and a benefit, other than  a  refund  of  a  member's  accumulated
    16  deductions  or  a  refund of additional member contributions pursuant to
    17  paragraph seven of this subdivision, becomes payable by  the  retirement
    18  system  to  the  participant  or to his or her designated beneficiary or
    19  estate, the actuarial equivalent of any  such  unpaid  amount  shall  be
    20  deducted from the benefit otherwise payable.
    21    7.  (i)  All additional member contributions required by this subdivi-
    22  sion (and any interest thereon) which are  received  by  the  retirement
    23  system  shall  be paid into its contingent reserve fund and shall be the
    24  property of the retirement system. Such additional member  contributions
    25  (and  any  interest  thereon)  shall not for any purpose be deemed to be
    26  member contributions or  accumulated  deductions  of  a  member  of  the
    27  retirement  system  under section 13-125 or 13-162 of the administrative
    28  code while he or she is a participant in the twenty-five  year  improved
    29  benefit retirement program or otherwise.
    30    (ii)  Should  a  participant  in the twenty-five year improved benefit
    31  retirement program, who has rendered less than fifteen years of credited
    32  service cease to hold a position as a fire protection  inspector  member
    33  for  any  reason  whatsoever,  his  or her accumulated additional member
    34  contributions made pursuant  to  this  subdivision  (together  with  any
    35  interest thereon paid to the retirement system) which remain credited to
    36  such  participant's  account  may be withdrawn by him or her pursuant to
    37  procedures promulgated in regulations of the board of  trustees  of  the
    38  retirement  system, together with interest thereon at the rate of inter-
    39  est required by law to be used to credit  interest  on  the  accumulated
    40  deductions of retirement system members compounded annually.
    41    (iii)  Notwithstanding any other provision of law to the contrary, (A)
    42  no person shall be permitted to withdraw from the retirement system  any
    43  additional member contributions paid pursuant to this subdivision or any
    44  interest  paid  thereon,  except  pursuant to and in accordance with the
    45  preceding subparagraphs of this paragraph; and
    46    (B) no person, while he or she is a  participant  in  the  twenty-five
    47  year improved benefit retirement program, shall be permitted to withdraw
    48  any  such  additional  member contributions or any interest paid thereon
    49  pursuant to any of the preceding  subparagraphs  of  this  paragraph  or
    50  otherwise.
    51    8.  A  participant in the twenty-five year improved benefit retirement
    52  program shall be permitted to borrow from his or her  additional  member
    53  contributions,  including  any interest paid thereon, which are credited
    54  to the additional contributions account established for such participant
    55  in the contingent reserve fund of the retirement system.  The  borrowing
    56  from  such  additional  member  contributions pursuant to this paragraph
        S. 6988--B                          9
 
     1  shall be governed by the same rights, privileges, obligations and proce-
     2  dures set forth in section six hundred thirteen-b of this chapter  which
     3  govern the borrowing by members subject to article fifteen of this chap-
     4  ter  of  member contributions made pursuant to section six hundred thir-
     5  teen of this chapter. The board of trustees  of  the  retirement  system
     6  may,  consistent  with  the  provisions  of  this  subdivision  and  the
     7  provisions of section six hundred thirteen-b of  this  chapter  as  made
     8  applicable  to  this  subdivision,  promulgate regulations governing the
     9  borrowing of such additional member contributions.
    10    9. Wherever a person has an unpaid balance of a loan  of  his  or  her
    11  additional  member  contributions  pursuant  to  paragraph eight of this
    12  subdivision at the time he or she becomes entitled to a refund of his or
    13  her additional member contributions pursuant  to  subparagraph  (ii)  of
    14  paragraph  seven  of  this  subdivision,  the amount of such unpaid loan
    15  balance (including accrued  interest)  shall  be  deemed  to  have  been
    16  returned to such member, and the refund of such additional contributions
    17  shall  be  the  net amount of such contributions, together with interest
    18  thereon in accordance with the provisions of such subparagraph.
    19    10. Notwithstanding any other provision of law to  the  contrary,  the
    20  provisions  of  section one hundred thirty-eight-b of this chapter shall
    21  not be applicable to  the  additional  member  contributions  which  are
    22  required by this subdivision.
    23    11.  Notwithstanding  any  other provision of law to the contrary, the
    24  additional member contributions which are required by  this  subdivision
    25  shall not be reduced under any program for increased-take-home-pay.
    26    e.  The  provisions  of this section shall not be construed to provide
    27  benefits to any participant in the  twenty-five  year  improved  benefit
    28  retirement  program which are greater than those which would be received
    29  by a similarly situated member who is entitled  to  benefits  under  the
    30  provisions  of  section  13-157.2 of the administrative code, but who is
    31  not governed by the provisions of this article.
    32    § 4. The retirement and social security law is amended by adding a new
    33  section 604-j to read as follows:
    34    § 604-j. Twenty-five  year  retirement  program  for  fire  protection
    35  inspector  members. a.   Definitions. The following words and phrases as
    36  used in this section shall have the following meanings unless a  differ-
    37  ent meaning is plainly required by the context.
    38    1.  "Fire  protection  inspector  member"  shall  mean a member who is
    39  employed by the city of New York or by the New York city fire department
    40  in a title whose duties are those of  a  fire  protection  inspector  or
    41  associate  fire protection inspector; or in a title whose duties require
    42  the supervision of employees whose duties are those of a fire protection
    43  inspector or associate fire protection inspector.
    44    2. "Twenty-five year retirement program" shall mean all the terms  and
    45  conditions of this section.
    46    3.  "Starting  date  of the twenty-five year retirement program" shall
    47  mean the effective date of this section.
    48    4. "Participant in the twenty-five year retirement program" shall mean
    49  any  fire  protection  inspector  member  who,  under   the   applicable
    50  provisions  of subdivision b of this section, is entitled to the rights,
    51  benefits and privileges and is subject to the obligations of  the  twen-
    52  ty-five year retirement program, as applicable to him or her.
    53    5.  "Discontinued  member" shall mean a participant in the twenty-five
    54  year retirement program who, while he  or  she  was  a  fire  protection
    55  inspector  member, discontinued service as such a member and has a right
    56  to a deferred vested benefit under subdivision d of this section.
        S. 6988--B                         10
 
     1    6. "Administrative code" shall mean the  administrative  code  of  the
     2  city of New York.
     3    7.  "Allowable  service  as  a fire protection inspector member" shall
     4  mean all service as a fire protection inspector member.
     5    b. Participation  in  the  twenty-five  year  retirement  program.  1.
     6  Subject  to  the provisions of paragraphs six and seven of this subdivi-
     7  sion, any person who is a fire protection inspector member on the start-
     8  ing date of the twenty-five year retirement program and who, as  such  a
     9  fire  protection  inspector  member or otherwise, last became subject to
    10  the provisions of this article prior to such starting date, may elect to
    11  become a participant in  the  twenty-five  year  retirement  program  by
    12  filing,  within  one  hundred eighty days after the starting date of the
    13  twenty-five year retirement program, a  duly  executed  application  for
    14  such  participation with the retirement system of which such person is a
    15  member, provided he or she is such a fire protection inspector member on
    16  the date such application is filed.
    17    2. Subject to the provisions of  paragraphs  six  and  seven  of  this
    18  subdivision,  any  person who becomes a fire protection inspector member
    19  after the starting date of the twenty-five year retirement  program  and
    20  who,  as  such  a  fire  protection  inspector member or otherwise, last
    21  became subject to the provisions of this article prior to such  starting
    22  date,  may elect to become a participant in the twenty-five year retire-
    23  ment program by filing, within one hundred eighty  days  after  becoming
    24  such a fire protection inspector member, a duly executed application for
    25  such participation with the retirement system for which such person is a
    26  member, provided he or she is such a fire protection inspector member on
    27  the date such application is filed.
    28    3. Each fire protection inspector member, other than a fire protection
    29  inspector  member  subject  to paragraph one or two of this subdivision,
    30  who becomes subject to the provisions of this article on  or  after  the
    31  starting  date of the twenty-five year retirement program shall become a
    32  participant in the twenty-five year retirement program on the date he or
    33  she becomes such a fire protection inspector member. Provided,  however,
    34  a person subject to this paragraph, and who has exceeded age twenty-five
    35  upon  employment  as a fire protection inspector member, shall be exempt
    36  from participation in the improved twenty-five year  retirement  program
    37  if  such person elects not to participate by filing a duly executed form
    38  with the retirement system within one hundred eighty days of becoming  a
    39  fire protection inspector member.
    40    4. Any election to be a participant in the twenty-five year retirement
    41  program shall be irrevocable.
    42    5.  Where  any  participant in the twenty-five year retirement program
    43  shall cease to be employed as a fire protection inspector member, he  or
    44  she shall cease to be such a participant and, during any period in which
    45  such  person is not so employed, he or she shall not be a participant in
    46  the twenty-five year retirement program and shall not  be  eligible  for
    47  the benefits of subdivision c of this section.
    48    6.  Where  any  participant in the twenty-five year retirement program
    49  terminates service as a fire protection inspector member and returns  to
    50  such  service  as a fire protection inspector member at a later date, he
    51  or she shall again become such a participant on that date.
    52    7. Notwithstanding any other provision of the law to the contrary, any
    53  person who is eligible to elect to become a participant in  the  twenty-
    54  five  year  retirement  program pursuant to paragraph one or two of this
    55  subdivision for the full one hundred eighty day period provided  for  in
    56  such  applicable  paragraph and who fails to timely file a duly executed
        S. 6988--B                         11
 
     1  application for such participation with the retirement system, shall not
     2  thereafter be eligible to become a participant in such program.
     3    c.  Service  retirement  benefits. 1. A participant in the twenty-five
     4  year retirement program:
     5    (i) who has completed twenty-five or more years of  allowable  service
     6  as a fire protection inspector member; and
     7    (ii)  who has paid, before the effective date of retirement, all addi-
     8  tional member contributions and interest (if any) required  by  subdivi-
     9  sion e of this section; and
    10    (iii)  who  files  with  the retirement system of which he or she is a
    11  member an application for service retirement setting forth at what time,
    12  not less than thirty days subsequent to the execution and filing  there-
    13  of, he or she desires to be retired; and
    14    (iv)  who  shall  be  a participant in the twenty-five year retirement
    15  program at the time so specified for his or  her  retirement;  shall  be
    16  retired  pursuant  to  the  provisions  of  this section affording early
    17  service retirement.
    18    2. Notwithstanding the provisions of subdivision a-1  of  section  six
    19  hundred  three  of  this  article,  or any other provision of law to the
    20  contrary, and subject to the provisions of paragraph six of  subdivision
    21  e of this section, the early service retirement benefit for participants
    22  in  the twenty-five year retirement program who retire pursuant to para-
    23  graph one of this subdivision shall be a retirement allowance consisting
    24  of:
    25    (i) an amount, on account of the required minimum period  of  service,
    26  equal to fifty percent of his or her final average salary; plus
    27    (ii)  an  amount  on account of allowable service as a fire protection
    28  inspector member, or fraction  thereof,  beyond  such  required  minimum
    29  period  of  service  equal to two percent of his or her final salary for
    30  such allowable service as a fire protection inspector member during  the
    31  period  from  completion  of twenty-five years of allowable service as a
    32  fire protection inspector member to the date of retirement  but  not  to
    33  exceed  more  than five years of additional service as a fire protection
    34  inspector member.
    35    d. Vesting. 1.  A  participant  in  the  twenty-five  year  retirement
    36  program:
    37    (i)  who  discontinues  service  as  such a participant, other than by
    38  death or retirement; and
    39    (ii) in the case of a participant who is not a New York  city  revised
    40  plan  member,  who prior to such discontinuance, completed five but less
    41  than twenty-five years of allowable service as a fire protection inspec-
    42  tor member or, in the case of a participant  who  is  a  New  York  city
    43  revised plan member, who prior to such discontinuance, completed ten but
    44  less  than  twenty-five  years of allowable service as a fire protection
    45  inspector member; and
    46    (iii) who, subject to the provisions of paragraph seven of subdivision
    47  e of this section, has paid, prior to  such  discontinuance,  all  addi-
    48  tional  member  contributions and interest (if any) required by subdivi-
    49  sion e of this section; and
    50    (iv) who does not withdraw in whole or in part his or her  accumulated
    51  member  contributions  pursuant  to section six hundred thirteen of this
    52  article unless such participant thereafter returns to public service and
    53  repays the amounts so withdrawn, together  with  interest,  pursuant  to
    54  such  section  six  hundred  thirteen;  shall  be  entitled to receive a
    55  deferred vested benefit as provided in this subdivision.
        S. 6988--B                         12
 
     1    2. (i) Upon such discontinuance under the conditions and in compliance
     2  with the provisions of paragraph one of this subdivision, such  deferred
     3  vested benefit shall vest automatically.
     4    (ii)  In  the case of a participant who is not a New York city revised
     5  plan member, such vested benefit shall become payable  on  the  earliest
     6  date on which such discontinued member could have retired for service if
     7  such  discontinuance  had  not occurred or, in the case of a participant
     8  who is a New York city revised plan member, such  vested  benefit  shall
     9  become  payable  at  age sixty-three. Subject to the provisions of para-
    10  graph seven of subdivision e of this section, such deferred vested bene-
    11  fit shall be a retirement allowance consisting of an amount equal to two
    12  percent of such discontinued member's final average  salary,  multiplied
    13  by the number of years of credited service.
    14    e.  Additional  member  contributions.  1.  In  addition to the member
    15  contributions required by section six hundred thirteen of this  article,
    16  each  participant  in  the  twenty-five  year  retirement  program shall
    17  contribute to the retirement system of which  he  or  she  is  a  member
    18  (subject  to  the  applicable provisions of subdivision d of section six
    19  hundred thirteen of this article and subject to the limitation  provided
    20  for  in paragraph two of this subdivision) an additional six and twenty-
    21  five one-hundredths percent of his or her compensation earned  from  (i)
    22  all  allowable service, as a participant in the twenty-five year retire-
    23  ment program, rendered on or after the starting date of the  twenty-five
    24  year  retirement  program,  and  (ii)  all  allowable service after such
    25  person ceases to be a participant, but before he or she again becomes  a
    26  participant  pursuant to paragraph six of subdivision b of this section.
    27  The additional contributions required by this section shall be  in  lieu
    28  of  additional member contributions required by subdivision d of section
    29  six hundred four-c of this article, as added by  chapter  ninety-six  of
    30  the  laws  of  nineteen  hundred ninety-five, and no member making addi-
    31  tional contributions pursuant to this section shall be required to  make
    32  contributions  pursuant  to  such  subdivision  d of section six hundred
    33  four-c of this article. Notwithstanding the foregoing provisions of this
    34  paragraph, the additional member contribution required  to  be  paid  by
    35  each  participant  pursuant  to  this  paragraph  shall  not  exceed the
    36  percentage of his or her compensation that, when added to  the  contrib-
    37  ution  made pursuant to subdivision d of section six hundred thirteen of
    38  this article, equals nine and twenty-five one-hundredths percent of that
    39  compensation.
    40    2. A participant in the  twenty-five  year  retirement  program  shall
    41  contribute  additional  member  contributions until the later of (i) the
    42  first anniversary of the starting date of the twenty-five  year  retire-
    43  ment program, or (ii) the date on which he or she completes thirty years
    44  of allowable service as a fire protection inspector member.
    45    3.  Commencing  with  the  first full payroll period after each person
    46  becomes a participant in the twenty-five year retirement program,  addi-
    47  tional  member  contributions  at the rate specified in paragraph one of
    48  this subdivision shall be deducted (subject to the applicable provisions
    49  of subdivision d of section six hundred thirteen of this  article)  from
    50  the  compensation  of such participant on each and every payroll of such
    51  participant for each and every payroll period for which  he  or  she  is
    52  such a participant.
    53    4.  (i)  Each  participant  in the twenty-five year retirement program
    54  shall be charged with a contribution deficiency consisting of the  total
    55  amounts  of  additional  member contributions such person is required to
    56  make pursuant to paragraphs one and two of this  subdivision  which  are
        S. 6988--B                         13
 
     1  not deducted from his or her compensation pursuant to paragraph three of
     2  this  subdivision,  if  any,  together with interest thereon, compounded
     3  annually, and computed in accordance with  the  provisions  of  subpara-
     4  graphs (ii) and (iii) of this paragraph.
     5    (ii)  (A)  The interest required to be paid on each such amount speci-
     6  fied in subparagraph (i) of this paragraph shall accrue from the end  of
     7  the  payroll  period for which such amount would have been deducted from
     8  compensation if he or she had been a participant  at  the  beginning  of
     9  that  payroll  period  and  such  deduction  had  been required for such
    10  payroll period, until such amount is paid to the retirement system.
    11    (B) The rate of interest to be applied to each such amount during  the
    12  period  for  which interest accrues on that amount shall be equal to the
    13  rate or rates of interest required by law to be used  during  that  same
    14  period  to  credit  interest on the accumulated deductions of retirement
    15  system members.
    16    (iii) Except as otherwise provided in paragraph five of this  subdivi-
    17  sion,  no interest shall be due on any unpaid additional member contrib-
    18  utions which are not attributable to a period prior to  the  first  full
    19  payroll period referred to in paragraph three of this subdivision.
    20    5.  (i)  Should any person who, pursuant to subparagraph (ii) of para-
    21  graph ten of this subdivision, has received a refund of his or her addi-
    22  tional member contribution including any interest paid on such  contrib-
    23  utions,  again  become  a participant in the twenty-five year retirement
    24  program pursuant to paragraph six of subdivision b of this  section,  an
    25  appropriate  amount shall be included in such participant's contribution
    26  deficiency (including interest thereon as calculated pursuant to subpar-
    27  agraph (ii) of this paragraph) for any credited service for  which  such
    28  person  received  a  refund  of  such  additional  member  contributions
    29  (including any amount of an unpaid loan  balance  deemed  to  have  been
    30  returned  to  such  person pursuant to paragraph twelve of this subdivi-
    31  sion), as if such additional member contributions never had been paid.
    32    (ii)(A) Interest on a participant's  additional  member  contributions
    33  included  in  such  participant's  contribution  deficiency  pursuant to
    34  subparagraph (i) of this paragraph shall be calculated as if such  addi-
    35  tional member contributions had never been paid by such participant, and
    36  such  interest  shall accrue from the end of the payroll period to which
    37  an amount of such additional member contributions is attributable, until
    38  such amount is paid to the retirement system.
    39    (B) The rate of interest to be applied to each such amount during  the
    40  period  for  which interest accrues on that amount shall be five percent
    41  per annum, compounded annually.
    42    6. Where a participant who is otherwise eligible for  service  retire-
    43  ment  pursuant  to  subdivision  c of this section did not, prior to the
    44  effective date of retirement, pay the entire amount  of  a  contribution
    45  deficiency chargeable to him or her pursuant to paragraphs four and five
    46  of  this subdivision, or repay the entire amount of a loan of his or her
    47  additional member contributions pursuant to  paragraph  eleven  of  this
    48  subdivision (including accrued interest on such loan), that participant,
    49  nevertheless,  shall  be eligible to retire pursuant to subdivision c of
    50  this section, provided, however, that such participant's service retire-
    51  ment benefit calculated pursuant to paragraph two of such subdivision  c
    52  of  this  section  shall  be  reduced  by  a life annuity (calculated in
    53  accordance with the method set forth in subdivision  i  of  section  six
    54  hundred thirteen-b of this article) which is actuarially equivalent to:
        S. 6988--B                         14
 
     1    (i)  the  amount  of  any unpaid contribution deficiency chargeable to
     2  such member pursuant to paragraphs four and five  of  this  subdivision;
     3  plus
     4    (ii)  the  amount  of any unpaid balance of a loan of his or her addi-
     5  tional member contributions pursuant to paragraph eleven of this  subdi-
     6  vision (including accrued interest on such loan).
     7    7. Where a participant who is otherwise eligible for a vested right to
     8  a  deferred  benefit  pursuant to subdivision d of this section did not,
     9  prior to the date of discontinuance of service, pay the entire amount of
    10  a contribution deficiency chargeable to him or  her  pursuant  to  para-
    11  graphs  four and five of this subdivision, or repay the entire amount of
    12  a loan of his or her additional member contributions pursuant  to  para-
    13  graph  eleven  of  this  subdivision (including accrued interest on such
    14  loan), that participant, nevertheless, shall have a vested  right  to  a
    15  deferred  benefit  pursuant  to  subdivision d of this section provided,
    16  however, that the deferred vested benefit calculated pursuant  to  para-
    17  graph  two  of  subdivision d of this section shall be reduced by a life
    18  annuity (calculated in accordance with the method set forth in  subdivi-
    19  sion i of section six hundred thirteen-b of this article) which is actu-
    20  arially equivalent to:
    21    (i)  the  amount  of any unpaid contribution chargeable to such member
    22  pursuant to paragraphs four and five of this subdivision; plus
    23    (ii) the amount of any unpaid balance of a loan of his  or  her  addi-
    24  tional  member contributions pursuant to paragraph eleven of this subdi-
    25  vision (including accrued interest on such a loan).
    26    8. The head of a retirement system which includes participants in  the
    27  twenty-five  year  retirement  program in its membership may, consistent
    28  with the provisions of this subdivision, promulgate regulations for  the
    29  payment of such additional member contributions, and any interest there-
    30  on, by such participants (including the deduction of such contributions,
    31  and any interest thereon, from the participant's compensation).
    32    9.  Subject  to  the  provisions  of  paragraphs six and seven of this
    33  subdivision, where a participant has not paid in full  any  contribution
    34  deficiency chargeable to him or her pursuant to paragraphs four and five
    35  of  this  subdivision,  and  a  benefit,  other  than a refund of member
    36  contributions pursuant to section six hundred thirteen of  this  article
    37  or  a refund of additional member contributions pursuant to subparagraph
    38  (ii) of paragraph ten of this subdivision, becomes  payable  under  this
    39  article  to  the  participant or to his or her designated beneficiary or
    40  estate, the actuarial equivalent of any  such  unpaid  amount  shall  be
    41  deducted from the benefit otherwise payable.
    42    10.  (i) Such additional member contributions (and any interest there-
    43  on) shall be paid into the contingent reserve  fund  of  the  retirement
    44  system  of  which  the  participant  is  a  member and shall not for any
    45  purpose be deemed to be member  contributions  or  accumulated  contrib-
    46  utions of a member under section six hundred thirteen of this article or
    47  otherwise  while  he  or  she  is  a participant in the twenty-five year
    48  retirement program or otherwise.
    49    (ii) Should a participant in the twenty-five year  retirement  program
    50  who  has  rendered  less than fifteen years of credited service cease to
    51  hold a position as a fire protection inspector  member  for  any  reason
    52  whatsoever,  his or her accumulated additional member contributions made
    53  pursuant to this subdivision (together with any interest thereon paid to
    54  the retirement system) may be withdrawn by him or her pursuant to proce-
    55  dures promulgated in regulations of the board of trustees of the retire-
        S. 6988--B                         15
 
     1  ment system, together with interest thereon at the rate of five  percent
     2  per annum, compounded annually.
     3    (iii)  Notwithstanding any other provision of law to the contrary, (A)
     4  no person shall be permitted to withdraw from the retirement system  any
     5  additional member contributions paid pursuant to this subdivision or any
     6  interest  paid  thereon,  except  pursuant to and in accordance with the
     7  preceding subparagraphs of this paragraph; and (B) no person,  while  he
     8  or  she  is  a  participant  in the twenty-five year retirement program,
     9  shall be permitted to withdraw any such additional member  contributions
    10  or  any  interest paid thereon pursuant to any of the preceding subpara-
    11  graphs of this paragraph or otherwise.
    12    11. A participant in the twenty-five year retirement program shall  be
    13  permitted  to  borrow  from  his  or her additional member contributions
    14  (including any interest paid thereon) which are credited  to  the  addi-
    15  tional  contributions  account  established  for such participant in the
    16  contingent reserve fund of the retirement  system.  The  borrowing  from
    17  such additional member contributions pursuant to this paragraph shall be
    18  governed by the rights, privileges, obligations and procedures set forth
    19  in  section  six  hundred  thirteen-b  of  this article which govern the
    20  borrowing of member contributions made pursuant to section  six  hundred
    21  thirteen of this article. The board of trustees of the retirement system
    22  may,  consistent  with  the  provisions  of  this  subdivision  and  the
    23  provisions of section six hundred thirteen-b of  this  article  as  made
    24  applicable  to  this  subdivision,  promulgate regulations governing the
    25  borrowing of such additional member contributions.
    26    12. Whenever a person has an unpaid balance of a loan or  his  or  her
    27  additional  member  contributions  pursuant  to paragraph eleven of this
    28  subdivision at the time he or she becomes entitled to a refund of his or
    29  her additional member contributions pursuant  to  subparagraph  (ii)  of
    30  paragraph  ten  of  this  subdivision,  the  amount  of such unpaid loan
    31  balance (including accrued  interest)  shall  be  deemed  to  have  been
    32  returned to such member, and the refund of such additional contributions
    33  shall  be  the  net  amount of such contribution, together with interest
    34  thereon in accordance with the provisions of such subparagraph (ii).
    35    § 5. Subdivision d of section 613 of the retirement and social securi-
    36  ty law is amended by adding a new paragraph 12 to read as follows:
    37    12. (i) The city of New York shall, in the case of a  fire  protection
    38  inspector  member  (as  defined  in  paragraph  one  of subdivision a of
    39  section six hundred four-j of this article) who is a participant in  the
    40  twenty-five  year  retirement  program  (as defined in paragraph four of
    41  subdivision a of such section six hundred four-j), pick up  and  pay  to
    42  the  retirement  system  of which such participant is a member all addi-
    43  tional member contributions which otherwise  would  be  required  to  be
    44  deducted  from such member's compensation pursuant to paragraphs one and
    45  two of subdivision e of such section six hundred four-j of this  article
    46  (not  including  any  additional member contributions due for any period
    47  prior to the first full payroll period referred  to  in  such  paragraph
    48  three  of such subdivision e), and shall effect such pick up in each and
    49  every payroll of such participant for each and every payroll period with
    50  respect to which such  paragraph  three  would  otherwise  require  such
    51  deductions.
    52    (ii)  An amount equal to the amount of additional contributions picked
    53  up pursuant to this paragraph shall be deducted by  such  employer  from
    54  the  compensation  of  such member (as such compensation would be in the
    55  absence of a pick up program applicable to him  or  her  hereunder)  and
    56  shall not be paid to such member.
        S. 6988--B                         16

     1    (iii)  The  additional member contributions picked up pursuant to this
     2  paragraph for any such member shall be paid by such employer in lieu  of
     3  an equal amount of additional member contributions otherwise required to
     4  be  paid by such member under the applicable provisions of subdivision e
     5  of section six hundred four-j of this article, and shall be deemed to be
     6  and  treated as employer contributions pursuant to section 414(h) of the
     7  Internal Revenue Code.
     8    (iv) For the purpose of  determining  the  retirement  system  rights,
     9  benefits  and  privileges of any member whose additional member contrib-
    10  utions are picked up pursuant to this paragraph, such  picked  up  addi-
    11  tional member contributions shall be deemed to be and treated as part of
    12  such  member's  additional  member  contributions  under  the applicable
    13  provisions of subdivision e of section six hundred four-j of this  arti-
    14  cle.
    15    (v) With the exception of federal income tax treatment, the additional
    16  member  contributions  picked  up  pursuant  to subparagraph (i) of this
    17  paragraph shall for all other purposes, including computation of retire-
    18  ment benefits and contributions by employers and  employees,  be  deemed
    19  employee   salary.  Nothing  contained  in  this  subdivision  shall  be
    20  construed as superseding the provisions of section four hundred  thirty-
    21  one  of  this  chapter, or any similar provision of law which limits the
    22  salary base for  computing  retirement  benefits  payable  by  a  public
    23  retirement system.
    24    §  6.  Section  13-125.2 of the administrative code of the city of New
    25  York is amended by adding a new subdivision a-9 to read as follows:
    26    a-9. Notwithstanding any other provision of law to the contrary, on or
    27  after the starting date for pick up, the employer responsible  for  pick
    28  up  shall, in the case of a fire protection inspector member (as defined
    29  in paragraph two of subdivision a of section four  hundred  forty-five-j
    30  of  the  retirement and social security law) who is a participant in the
    31  twenty-five year improved benefit  retirement  program  (as  defined  in
    32  paragraph  three  of such subdivision a), pick up and pay to the retire-
    33  ment system all additional member contributions which otherwise would be
    34  required to be deducted from  such  member's  compensation  pursuant  to
    35  subdivision  d  of  such  section  four  hundred forty-five-j, and shall
    36  effect such pick up on each and every payroll of  such  participant  for
    37  each  and  every payroll period with respect to which such subdivision d
    38  would otherwise require such deductions.
    39    § 7. Subparagraph (ii) of paragraph 1  of  subdivision  c  of  section
    40  13-125.2  of the administrative code of the city of New York, as amended
    41  by chapter 682 of the laws of 2003, is amended to read as follows:
    42    (ii) the determination of the amount of such member's Tier I  or  Tier
    43  II  nonuniformed-force  member contributions eligible for pick up by the
    44  employer or additional member contributions required  to  be  picked  up
    45  pursuant  to  subdivision a-one, subdivision a-two, subdivision a-three,
    46  subdivision a-four, subdivision a-five, subdivision  a-six,  subdivision
    47  a-seven or subdivision a-eight of this section, or subdivision a-nine of
    48  this section; and
    49    §  8.  Subdivision d of section 13-125.2 of the administrative code of
    50  the city of New York is amended by adding a new paragraph 2-h to read as
    51  follows:
    52    (2-h) For the purpose of determining  the  retirement  system  rights,
    53  benefits  and privileges of any member who is a participant in the twen-
    54  ty-five year retirement program (as defined in paragraph three of subdi-
    55  vision a of section four hundred  forty-five-j  of  the  retirement  and
    56  social  security  law),  the  additional  member  contributions  of such
        S. 6988--B                         17
 
     1  participant picked up pursuant to subdivision  a-nine  of  this  section
     2  shall  be deemed to be and treated as a part of such member's additional
     3  contributions under subdivision d of such section  four  hundred  forty-
     4  five-j.
     5    §  9. Paragraph 3 of subdivision d of section 13-125.2 of the adminis-
     6  trative code of the city of New York, as amended by chapter 682  of  the
     7  laws of 2003, is amended to read as follows:
     8    (3)  Interest  on  contributions  picked  up for any Tier I or Tier II
     9  non-uniformed-force member pursuant to this section  (other  than  addi-
    10  tional  member  contributions  picked  up pursuant to subdivision a-one,
    11  subdivision a-two, subdivision a-three, subdivision a-four,  subdivision
    12  a-five,   subdivision   a-six,  subdivision  a-seven  [or],  subdivision
    13  a-eight, or subdivision a-nine of this section) shall accrue in favor of
    14  the member and be payable to the retirement system at the same rate, for
    15  the same time periods, in the same manner and  under  the  same  circum-
    16  stances  as  interest would be required to accrue in favor of the member
    17  and be payable to the retirement system on such  contributions  if  they
    18  were  made by such member in the absence of a pick up program applicable
    19  to such member under the provisions of this section.
    20    § 10. Subdivision a of section 603 of the retirement and social  secu-
    21  rity  law,  as  amended by chapter 18 of the laws of 2012, is amended to
    22  read as follows:
    23    a. The service retirement benefit specified  in  section  six  hundred
    24  four  of this article shall be payable to members who have met the mini-
    25  mum service requirements upon retirement and attainment  of  age  sixty-
    26  two,  other  than  members who are eligible for early service retirement
    27  pursuant to subdivision c of section six hundred four-b of this article,
    28  subdivision c of section six hundred four-c of this article, subdivision
    29  d of section six hundred  four-d  of  this  article,  subdivision  c  of
    30  section six hundred four-e of this article, subdivision c of section six
    31  hundred  four-f  of  this  article, subdivision c of section six hundred
    32  four-g of this article, subdivision c of section six hundred  four-h  of
    33  this  article  [or]  subdivision c of section six hundred four-i of this
    34  article, or subdivision c of section six hundred four-j of this article,
    35  provided, however, a member of a teachers' retirement system or the  New
    36  York  state  and local employees' retirement system who first joins such
    37  system before January first, two thousand ten  or  a  member  who  is  a
    38  uniformed  court  officer or peace officer employed by the unified court
    39  system who first becomes a member  of  the  New  York  state  and  local
    40  employees' retirement system before April first, two thousand twelve may
    41  retire  without  reduction of his or her retirement benefit upon attain-
    42  ment of at least fifty-five years of age and  completion  of  thirty  or
    43  more years of service, provided, however, that a uniformed court officer
    44  or  peace officer employed by the unified court system who first becomes
    45  a member of the New York state and local employees' retirement system on
    46  or after January first, two thousand ten and retires  without  reduction
    47  of  his or her retirement benefit upon attainment of at least fifty-five
    48  years of age and completion of thirty or more years of service  pursuant
    49  to  this  section  shall  be  required  to make the member contributions
    50  required by subdivision f of section six hundred thirteen of this  arti-
    51  cle  for  all years of credited and creditable service, provided further
    52  that the [the] preceding provisions of this subdivision shall not  apply
    53  to a New York city revised plan member.
    54    §  11. Nothing contained in sections five and ten of this act shall be
    55  construed to create any contractual right with  respect  to  members  to
    56  whom  such sections apply.  The provisions of such sections are intended
        S. 6988--B                         18
 
     1  to afford members the advantages of certain benefits  contained  in  the
     2  internal  revenue  code,  and  the  effectiveness  and existence of such
     3  sections and benefits they confer are completely contingent thereon.
     4    § 12. This act shall take effect immediately, provided, however that:
     5    (a)  The  provisions of sections five and ten of this act shall remain
     6  in full force and effect only so  long  as,  pursuant  to  federal  law,
     7  contributions  picked up under such sections are not includable as gross
     8  income of a member for federal income tax purposes until distributed  or
     9  made available to the member; provided that the New York city employees'
    10  retirement  system shall notify the legislative bill drafting commission
    11  upon the occurrence of such a change in federal law ruling affecting the
    12  provisions of this act in order that  the  commission  may  maintain  an
    13  accurate and timely effective data base of the official text of the laws
    14  of  the  state of New York in furtherance of effectuating the provisions
    15  of section 44 of the legislative law and  section  70-b  of  the  public
    16  officers law;
    17    (b)  The  amendments to section 13-125.2 of the administrative code of
    18  the city of New York made by sections six, seven,  eight,  and  nine  of
    19  this  act  shall  not affect the expiration of such section and shall be
    20  deemed to expire therewith; and
    21    (c) The amendments to subdivision a of section 603 of  the  retirement
    22  and social security law made by section ten of this act shall not affect
    23  the  expiration of such subdivision and shall be deemed to expire there-
    24  with.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY OF BILL: This proposed legislation would amend  Administrative
        Code of the City of New York (ACCNY) Section 13-125.2 and Retirement and
        Social  Security  Law  (RSSL)  Sections  444, 445, 603, and 613, and add
        ACCNY Section 13-157.5 and RSSL Sections 445-j and 604-j to establish  a
        25-Year  Retirement  Program for Fire Protection Inspectors (FPI 25-Year
        Plan) for each tier.
          Effective Date: Upon enactment.
          BACKGROUND: Members whose duties are one of the following are eligible
        to participate in the FPI 25-Year Plans:
          * Fire Protection Inspector,
          * Associate Fire Protection Inspector,
          * Supervisor of employees whose duties are those of a fire  protection
        inspector, and
          *  Supervisor of employees whose duties are those of an associate fire
        protection inspector.
          For the purposes of this Fiscal Note, these members  are  collectively
        referred to as "Fire Protection Inspectors."
          Participation in an applicable FPI 25-Year Plan is optional for anyone
        who  is eligible to participate in such Plan on the date of enactment by
        filing an election form within 180 days of enactment. Anyone who  is  an
        existing  member  of  the  New  York  City  Employees' Retirement System
        (NYCERS) on the date of enactment and subsequently becomes employed as a
        Fire Protection Inspector also has 180 days to elect to join the  appli-
        cable FPI 25-Year Plan.
          Any  Fire  Protection  Inspector who becomes a NYCERS member after the
        date of enactment is mandated into the Tier 6 FPI 25-Year Plan. However,
        if the member exceeds age 25 upon being mandated into  the  FPI  25-Year
        Plan,  the  member  has  the  option, within 180 days of becoming a Fire
        Protection Inspector, to elect not to participate.
          IMPACT ON BENEFITS: Currently, Fire  Protection  Inspectors  generally
        participate  in one of the NYCERS general plans (i.e., basic Tier 4 62/5
        S. 6988--B                         19

        Plan, Tier 6 63/10 Plan, or Improved Tier 4  57/5,  55/25  Plans).  Note
        that since there are no active Tier 2 Fire Protection Inspectors remain-
        ing,  the  following  summary of the FPI 25-Year Plans is for Tier 4 and
        Tier 6 members only.
          The  proposed  legislation,  if  enacted,  would provide the following
        benefits to Fire Protection Inspectors under the FPI 25-Year Plans:
          * Service retirement benefit:
          o 50% of Final Average Salary (FAS) for the first 25 years  of  Allow-
        able Service, plus
          o 2% of FAS for each additional year of Allowable Service, or fraction
        thereof, exceeding 25 years up to a maximum of 30 years of such service.
          * Final Average Salary:
          o Tier 4 - Three Year Average (FAS3).
          o Tier 6 - Five Year Average (FAS5).
          * Vested benefit:
          o Eligibility:
          *  Tier  4  -  At  least  five,  but  less than 25, years of Allowable
        Service.
          * Tier 6 - At least 10, but less than 25, years of Allowable Service.
          o Payable at:
          * Tier 4 - The date the member would have completed 25 years of Allow-
        able Service.
          * Tier 6 - Age 63.
          o Amount:
          * 2% of FAS for each year of Allowable Service.
          * Other benefits: Members of the proposed FPI 25-Year Plans are  enti-
        tled  to the same disability and death benefits as other Tier 4 and Tier
        6 members under the respective basic plans.
          ADDITIONAL MEMBER CONTRIBUTIONS: Members of an FPI  25-Year  Plan  are
        required  to  make, in addition to the Tier 4 Basic Member Contributions
        (BMC) of 3% and the Tier 6 BMC  ranging  from  3%  to  6%  depending  on
        defined  salary  scales,  Additional Member Contributions (AMC) equal to
        6.25% of compensation for all service as a Plan participant on and after
        the starting date of the Plan until the later of the  one-year  anniver-
        sary  of  the  effective  date  of  the  Plans  or 30 years of Allowable
        Service. In no event shall BMC plus AMC exceed 9.25% of compensation.
          FINANCIAL IMPACT - PRESENT VALUES: Based on the anticipated  group  of
        members  joining the FPI 25-Year Plans and the actuarial assumptions and
        methods described herein, the enactment  of  this  proposed  legislation
        would  increase  the Present Value of Future Benefits (PVFB) by approxi-
        mately $2.6 million and increase the Present Value  of  member  contrib-
        utions  by  approximately $1.4 million. The net result is an increase in
        the Present Value of future employer contributions of approximately $1.2
        million.
          Under the Entry Age Normal cost method used to determine the  employer
        contributions  to  NYCERS,  there  would  be an increase in the Unfunded
        Accrued Liability (UAL) of approximately $1.1 million plus  an  increase
        in the Present Value of future employer Normal Cost of $0.1 million.
          FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
        Section 13-638.2(k-2) of the ACCNY,  new  UAL  attributable  to  benefit
        changes  are to be amortized as determined by the Actuary but are gener-
        ally amortized over the remaining working lifetime of those impacted  by
        the benefit changes. As of June 30, 2021, the remaining working lifetime
        of  the Fire Protection Inspectors assumed to join the FPI 25-Year Plans
        is approximately 12 years.
        S. 6988--B                         20
 
          For the purposes of this Fiscal Note, the increase in  UAL  was  amor-
        tized  over  a  12-year  period  (eleven payments under the One-Year Lag
        Methodology (OYLM)) using level dollar payments. This payment  plus  the
        increase  in  the  Normal Cost results in an increase in annual employer
        contributions of approximately $290,000 each year.
          CONTRIBUTION  TIMING:  For  the  purposes  of  this Fiscal Note, it is
        assumed that the  changes  in  the  Present  Value  of  future  employer
        contributions  and  annual employer contributions would be reflected for
        the first time in the Preliminary June 30, 2022 actuarial  valuation  of
        NYCERS.  In accordance with the OYLM used to determine employer contrib-
        utions, the increase in employer contributions would first be  reflected
        in Fiscal Year 2024.
          CENSUS  DATA:  The  estimates presented herein are based on the census
        data used in the Preliminary June 30, 2021 (Lag) actuarial valuation  of
        NYCERS  to  determine the Preliminary Fiscal Year 2023 employer contrib-
        utions.
          The 66 NYCERS Fire Protection Inspectors as of June 30,  2021  assumed
        to  join  the FPI 25-Year Plans had an average age of approximately 42.3
        years, average service of approximately 15.2 years, and an average sala-
        ry of approximately $79,700.
          ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of
        future  employer  contributions  and   annual   employer   contributions
        presented herein have been calculated based on the actuarial assumptions
        and  methods in effect for the Preliminary June 30, 2021 (Lag) actuarial
        valuations used to determine the Preliminary Fiscal Year  2023  employer
        contributions of NYCERS.
          To  determine the impact of the elective nature of the proposed legis-
        lation, a subgroup of NYCERS Fire Protection  Inspectors  was  developed
        based  on  who  could  potentially  benefit actuarially. The net Present
        Value of future employer costs (i.e., the PVFB less the Present Value of
        future member contributions) of each  member's  benefit  was  determined
        under  their  current plan and under the applicable FPI 25-Year Plan. If
        the net Present Value of future employer cost under the FPI 25-Year Plan
        was greater than or equal to the Present Value of future  employer  cost
        under  the member's current plan, the member was deemed to benefit actu-
        arially.
          Based on this analysis, it was determined that those members  who  are
        mandated  into  the  FPI  25-Year  Plan in the future will generally not
        benefit under the Plan (i.e., they will have a decrease in Present Value
        of future employer costs as compared to the Tier 6 63/10 Plan they would
        otherwise participate in, absent this proposed legislation), and  there-
        fore the costs presented in this Fiscal Note are borne only from current
        NYCERS  members  who  are assumed to benefit from, and thus opt to join,
        the FPI-25 Year Plan.
          RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
        highly  on the realization of the actuarial assumptions used, as well as
        certain  demographic  characteristics  of  NYCERS  and  other  exogenous
        factors  such  as  investment,  contribution, and other risks. If actual
        experience deviates from actuarial assumptions, the actual  costs  could
        differ  from  those  presented  herein.  Costs are also dependent on the
        actuarial methods used, and therefore different actuarial methods  could
        produce  different  results. Quantifying these risks is beyond the scope
        of this Fiscal Note.
          Not measured in this Fiscal Note are the following:
          * The initial, additional administrative costs of NYCERS and other New
        York City agencies to implement the proposed legislation.
        S. 6988--B                         21
 
          * The impact of this  proposed  legislation  on  Other  Postemployment
        Benefit (OPEB) costs.
          STATEMENT  OF  ACTUARIAL  OPINION: I, Michael J. Samet, am the Interim
        Chief Actuary for, and independent of,  the  New  York  City  Retirement
        Systems and Pension Funds. I am a Fellow of the Society of 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.  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 2022-37 dated  April  27,
        2022  was  prepared  by  the Interim Chief Actuary for the New York City
        Employees' Retirement System. This estimate is  intended  for  use  only
        during the 2022 Legislative Session.