Removes post-retirement earnings restrictions for New York city department of correction uniformed personnel with respect to a retiree subsequent to his or her earliest eligibility date for service retirement.
STATE OF NEW YORK
________________________________________________________________________
7420
IN SENATE
April 29, 2016
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the retirement and social security law, in relation to
eligibility of uniformed personnel of the New York city department of
correction for ordinary disability benefits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 507-a of the retirement and social security law is
2 amended by adding a new subdivision f to read as follows:
3 f. Notwithstanding any other provision of law, there shall be no
4 restrictions on the earnings from employment not in public service
5 permitted to a member of the uniformed personnel of the New York city
6 department of correction who:
7 1. has retired pursuant to the provisions of this section; and
8 2. was subject to the provisions of (i) subdivision d of section five
9 hundred four of this article, (ii) subdivision c of section five hundred
10 four-a of this article, or (iii) subdivision c of section five hundred
11 four-b of this article prior to his or her retirement, subsequent to the
12 date as of which he or she would have been eligible for service retire-
13 ment.
14 § 2. This act shall take effect immediately.
Fiscal Note.-- Pursuant to Legislative Law, Section 50:
PROVISIONS OF PROPOSED LEGISLATION: This proposed legislation would
amend Retirement and Social Security Law (RSSL) Section 507-a by adding
a new Subdivision f to remove earnings restrictions from private sector
employment for periods subsequent to the earliest applicable Service
Retirement eligibility date for certain uniformed personnel of the New
York City Department of Correction who were members of the New York City
Employees' Retirement System (NYCERS), have retired, and are receiving
Ordinary Disability benefits (Correction ODR Retirees).
The Effective Date of the proposed legislation would be the date of
enactment.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13470-02-6
S. 7420 2
IMPACT ON BENEFITS: NYCERS restricts the total calendar year Personal
Service Income (PSI) of a Correction ODR Retiree resulting from all
public and private employment.
If a Correction ODR Retiree's PSI from all public and private employ-
ment exceeds the NYCERS PSI limitation, then such retiree's disability
pension is suspended for 12 months. The NYCERS PSI limitation for 2015
was $29,200 and increases each year with the Consumer Price Index.
If the proposed legislation is enacted, a Correction ODR Retiree's
earnings subsequent to the date the retiree would have been eligible for
Service Retirement would no longer be limited by NYCERS.
It is the understanding of the Actuary that in lieu of such NYCERS
limitation, the restrictions on PSI for Correction ODR Retirees would be
limited to New York City Charter (NYCC) Section 1117.
NYCC Section 1117 limits the PSI for any NYCERS retiree to $1,800 per
year from most public employment within New York State (including New
York City). PSI from those sources that exceeds $1,800 per year will
result in a suspension of the retiree's pension. However, NYCC Section
1117 places no limits on the amounts of PSI that may be earned from
employment from other sources, and RSSL section 212 generally permits a
retiree to earn up to $30,000 per year from public employment notwith-
standing NYCC Section 1117.
FINANCIAL IMPACT - EMPLOYER COSTS: The ultimate cost of a pension plan
is the benefits it pays.
To the extent the NYCERS earnings limitation would have applied in
Calendar Years 2016 and later, certain Correction ODR Retirees would
have had their pension temporarily suspended in years subsequent to the
date the retiree would have been eligible for Service Retirement where
PSI exceeded the NYCERS earnings limitation.
Enactment of the legislation would eliminate the reduction in benefits
to those Correction ODR Retirees whose PSI exceeds the NYCERS earnings
limitation.
As the Actuary believes that few, if any, Correction ODR Retirees'
benefits are suspended due to PSI that exceeds the NYCERS earnings limi-
tation, the increase in benefits would be de minimis.
FINANCIAL IMPACT: EMPLOYER CONTRIBUTIONS: The change in employer
contributions would depend upon the amount and timing of pension
payments that would no longer be suspended as a result of this legis-
lation.
OTHER COSTS: Not measured in this Fiscal Note are any possible
increased administrative costs attributable to enactment of the proposed
legislation.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for the New York City Retirement Systems. I am an Associate of the
Society of Actuaries, a Fellow of the Conference of Consulting Actuar-
ies, and a Member of the American Academy of Actuaries. I meet the Qual-
ification Standards of the American Academy of Actuaries to render the
actuarial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2016-23 dated April 21,
2016, was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for use only during the
2016 Legislative Session.
