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S07128 Summary:

S07128 Actions:

S07128 Committee Votes:

S07128 Floor Votes:

S07128 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7128--B
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                      May 18, 2023
                                       ___________
 
        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 general  municipal  law,  in  relation  to  allowing
          certain  members  of the New York city fire department pension fund to
          receive a membership date in the New York city fire department pension
          fund attributable to service in the titles of police cadet program  or
          police  cadet  program II in the New York city police department cadet
          program
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section 209-fff of the general municipal law, as added by
     2  chapter 431 of the laws of 2019, is amended to read as follows:
     3    § 209-fff. Provisions relating to a membership date in  the  New  York
     4  city  police  pension fund or the fire department pension fund attribut-
     5  able to service in the titles of police cadet program and  police  cadet
     6  program  II  in  the  New  York city police department cadet program. 1.
     7  Notwithstanding any provision of law to the contrary, upon election, any
     8  member of the New York city police pension fund or  the  New  York  city
     9  fire  department  pension fund who is subject to article fourteen of the
    10  retirement and social security law, and who served in the New York  city
    11  police  department cadet program in the title of police cadet program or
    12  police cadet program II prior to April first, two thousand  twelve,  but
    13  did  not join the New York city employees' retirement system while serv-
    14  ing in either such title, may purchase credit for the period of  service
    15  in  such  titles in the New York city police department cadet program by
    16  paying into the New York city police pension fund or the New  York  city
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10936-06-4
        S. 7128--B                          2
 
     1  fire  department pension fund all member contributions plus interest, at
     2  a rate of five percent per annum, which would have been payable  to  the
     3  New  York  city  employees' retirement system under any provision of law
     4  had such member joined the New York city employees' retirement system on
     5  the  earliest  date  that  [he  or she] such member was appointed to the
     6  title of police cadet program or police cadet program II in the New York
     7  city police department cadet program, provided such payment, for members
     8  of the New York city police pension fund,  is  made  within  five  years
     9  [after]  of  the  effective  date of [this section] chapter four hundred
    10  thirty-one of the laws of two thousand nineteen.  For members of the New
    11  York city fire department pension fund, such payment must be made within
    12  five years of the effective date of the chapter of the laws of two thou-
    13  sand twenty-four which amended this section.
    14    2. Any member of the New York city police pension fund or the New York
    15  city fire department pension fund who acquires service  credit  pursuant
    16  to this section shall be entitled to all rights, benefits and privileges
    17  to  which  [he  or she] such member would have been entitled had [his or
    18  her] such member's membership in the New York city police  pension  fund
    19  or  the New York city fire department pension fund begun upon the earli-
    20  est date that [he or she] such member was  appointed  to  the  title  of
    21  police  cadet  program  or  police cadet program II in the New York city
    22  police department cadet program, but in no event shall the service cred-
    23  it acquired pursuant to this section be deemed to be: (a) service in the
    24  police force or any other type  of  service  counted  or  creditable  as
    25  service  in  the police force under section 13-218 of the administrative
    26  code of the city of New York[,]; (b) service in the fire  department  of
    27  the  city of New York or any other type of service counted or creditable
    28  as service in such fire department under section 13-318 of the  adminis-
    29  trative  code of the city of New York; or (c) service under section five
    30  hundred thirteen of the retirement and social security law or any  other
    31  provision  of law for purposes of eligibility for benefits and to deter-
    32  mine the amount of benefits under the New York city police pension  fund
    33  or the New York city fire department pension fund.
    34    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY:  This proposed legislation would allow Tier 3 members of FIRE
        to purchase prior service as a cadet in the NYPD and use the appointment
        date as a cadet to determine the initial date  of  FIRE  membership  for
        plan  or  tier eligibility purposes provided such purchase of service is
        made within five years of the effective date of this legislation.
              ILLUSTRATION - INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                        by Fiscal Year for the first 25 years ($)
 
                                  Tier or Plan Change*
                            Year      To Tier 2 From Within Tier 3
                            2025      51,700    1,500
                            2026      51,700    1,500
                            2027      51,700    1,500
                            2028      51,700    1,500
                            2029      51,700    1,500
                            2030      51,700    1,500
                            2031      51,700    1,500
                            2032      51,700    1,500
                            2033      51,700    1,500
                            2034      51,700    1,500
                            2035      51,700    1,500
        S. 7128--B                          3
 
                            2036      51,700    1,500
                            2037      51,700    1,500
                            2038      51,700    1,500
                            2039      0         0
                            2040      0         0
                            2041      0         0
                            2042      0         0
                            2043      0         0
                            2044      0         0
                            2045      0         0
                            2046      0         0
                            2047      0         0
                            2048      0         0
                            2049      0         0
          * From Tier 3 (original, modified, or enhanced) to Tier 2 or from Tier
        3 (modified or enhanced) to Tier 3 original.
 
          The potential increases in employer contributions will be allocated to
        New York City.
 
                  EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                          as of June 30, 2023 ($ in Thousands)
 
                  Present Value (PV)                 To Tier 2 Within Tier 3
                  PV of Benefits:                    390.6     14.4
                  PV of Employee Contributions:      (46.8)    1.7
                  PV of Employer Contributions:      437.4     12.7
                  Unfunded Accrued Liabilities:      437.4     12.7
 
                       AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                  Recognized as Ongoing Gain/Loss    To Tier 2 Within Tier 3
                  Number of Payments:                14        14
                  Amortization Payment:              51.7 K    1.5 K
 
          CENSUS DATA: The number of members who will benefit in the future from
        this fiscal note is unknown. The estimates presented herein are based on
        preliminary  census  data collected as of June 30, 2023. The census data
        for the potentially impacted population  used  to  develop  the  average
        costs is summarized below.
                                                     To Tier 2 Within Tier 3
                  Active Members
                  - Number Count:                    3,144     3,913
                  - Average Age:                     35.9      34.3
                  - Average Service:                 6.8       5.8
                  - Average Salary:                  125,500   117,100
 
          IMPACT  ON  MEMBER BENEFITS AND CONTRIBUTIONS: Currently, the purchase
        of prior NYPD cadet service performed while not a member of the New York
        City Employees' Retirement System (NYCERS) does not provide  a  retroac-
        tive date of membership in FIRE, nor would it provide additional service
        retirement benefits for Tier 3 members.
          Under  the  proposed  legislation,  purchased NYPD cadet service would
        entitle members with cadet service before July 1, 2009 to  be  deemed  a
        Tier  2  member, and would be included in the calculation of benefits as
        non-qualifying service credit.
        S. 7128--B                          4
 
          Also, purchased NYPD cadet service would entitle  members  with  cadet
        service  between July 1, 2009 and April 1, 2012 to be deemed an original
        Tier 3 member.
          For  cadets  who  did  not  join  NYCERS, the member would have to pay
        member contributions that would have been payable  to  NYCERS  had  they
        joined  on their initial cadet appointment date, plus 5.0% annual inter-
        est.
          ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
        calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
        of the impacted retirement systems. Additionally,  1.2  years  of  cadet
        service  was  assumed  based  on  the amount of cadet service previously
        purchased by members of the New York City Police Pension Fund.
          The number of members who will benefit in the future from this  Fiscal
        Note is unknown. The cost of this proposed legislation could vary great-
        ly  depending  on  the number of future members who benefit and on their
        length of service, age, and salary history.
          RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
        highly  on  the  actuarial  assumptions, methods, and models used, demo-
        graphics of the impacted population and other factors  such  as  invest-
        ment,  contribution, and other risks. If actual experience deviates from
        actuarial  assumptions,  the  actual  costs  could  differ  from   those
        presented  herein.  Quantifying  these risks is beyond the scope of this
        Fiscal Note.
          This Fiscal Note is intended to measure  pension-related  impacts  and
        does  not  include other potential costs (e.g., administrative and Other
        Postemployment Benefits).
          STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
        sky are members of the Society of Actuaries and the American Academy  of
        Actuaries.  We  are  members of NYCERS but do not believe it impairs our
        objectivity and we meet the  Qualification  Standards  of  the  American
        Academy  of  Actuaries to render the actuarial opinion contained herein.
        To the best of our knowledge, the results  contained  herein  have  been
        prepared  in accordance with generally accepted actuarial principles and
        procedures and with the Actuarial Standards of Practice  issued  by  the
        Actuarial Standards Board.
          FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-49 dated May 3, 2024
        was  prepared  by  the  Chief  Actuary  for the New York City Retirement
        Systems and Pension Funds. This estimate is intended for use only during
        the 2024 Legislative Session.