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A07745 Summary:

BILL NOA07745
 
SAME ASSAME AS S07520
 
SPONSORTannousis
 
COSPNSR
 
MLTSPNSR
 
 
Grants retroactive Tier IV membership in the New York city teachers' retirement system to Matthew DeTiberiis.
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A07745 Actions:

BILL NOA07745
 
06/06/2023referred to governmental employees
01/03/2024referred to governmental employees
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A07745 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7745
 
SPONSOR: Tannousis
  TITLE OF BILL: An act granting retroactive Tier IV membership in the New York city teachers' retirement system to Matthew DeTiberiis   PURPOSE: This bill would grant retroactive membership in the New York City Teach- ers' Retirement System to Matthew DeTiberiis   SUMMARY OF SPECIFIC PROVISIONS: Section one allows Matthew DeTiberiis to file an application within one year of this act taking effect for Tier IV status with the New York City Teachers' Retirement System. Section two states all past service cost associated with this act shall be borne by the City of New York. Section three is the effective date.   JUSTIFICATION: Matthew DeTiberiis is currently employed by the New York City Department of Education and a member of the New York City Teachers' Retirement System (NYC TRS). Before joining the NYC TRS he was employed by the City of Yonkers parks department for the period beginning in 2009 and ending in 2014. Mr. DeTiberiis, for reasons not ascribable to his own negli- gence, failed to become a member of the New York state and local employ- ees' retirement system during such employment with the City of Yonkers Parks Department in 2009. This bill would grant Mr. DeTiberiis service credit in the NYC TRS for his employment with the city of Yonkers Parks Department for the period beginning in 2009 and ending in 2014. Addi- tionally, the bill grants him Tier IV status in NYC TRS, provided that an application is filed with the head of the NYC TRS within one year from the effective date of this act.   LEGISLATIVE HISTORY: New Bill.   FISCAL IMPLICATIONS: See fiscal note contained in bill.   EFFECTIVE DATE: Immediately.
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A07745 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7745
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 6, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  TANNOUSIS  --  read once and referred to the
          Committee on Governmental Employees
 
        AN ACT granting retroactive Tier IV membership  in  the  New  York  city
          teachers' retirement system to Matthew DeTiberiis
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Notwithstanding any other provision of law,  Matthew  DeTi-
     2  beriis,  who  is  currently  employed by the New York city department of
     3  education and a member of the New York city teachers' retirement system,
     4  and who was employed by the city of Yonkers  parks  department  for  the
     5  period  beginning  in  2009 and ending in 2014, and who, for reasons not
     6  ascribable to his own negligence, failed to become a member of  the  New
     7  York state and local employees' retirement system during such employment
     8  with  the  city  of  Yonkers  parks department in 2009, shall be granted
     9  service credit in the New York city teachers' retirement system for  his
    10  employment  with  the  city  of  Yonkers parks department for the period
    11  beginning in 2009 and ending in 2014 and shall be granted Tier IV status
    12  in such retirement system, provided that an application  is  filed  with
    13  the  head  of  the  New York city teachers' retirement system within one
    14  year from the effective date of this act.
    15    § 2. All past service costs associated with the implementation of this
    16  act shall be borne by the city of New York.
    17    § 3. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY OF BILL: This proposed legislation would permit Matthew  DeTi-
        beriis,  an  active Tier 6 member of the New York City Teachers' Retire-
        ment System (TRS), to purchase service with the Yonkers Parks Department
        and to elect, by filing an application with TRS within one year  of  the
        effective date, retroactive membership in the Tier 4 TRS 55/27 Plan.
          Effective Date: Upon enactment.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08665-03-3

        A. 7745                             2
 
          BACKGROUND:  Mr. DeTiberiis is currently employed by the New York City
        Department of Education. He joined TRS in September 2016  as  a  Tier  6
        member.  Previously he was employed by the City of Yonkers Parks Depart-
        ment from September 18, 2009 through February 28, 2014.
          The proposed legislation would allow Mr. DeTiberiis to receive service
        credit  in  TRS for his employment with the Yonkers Parks Department and
        apply for a Tier 4 membership with a refund of past Tier 6 contributions
        that exceed the applicable Tier 4 contribution rate. A change from  Tier
        6  to  Tier 4 would result in an earlier date of retirement eligibility,
        lower overall prospective employee contribution rates, a larger benefit,
        and a three-year (as opposed to a five-year) final average salary.
          FINANCIAL IMPACT - PRESENT VALUES: The estimated financial  impact  of
        this  proposed  legislation  has been calculated based on the difference
        between (1) the present value of benefits Mr. DeTiberiis  would  receive
        if  the  Tier 4 55/27 Plan were elected and (2) the present value of the
        benefits Mr. DeTiberiis would receive under the Tier 6 63/5 Plan.
          Based on the actuarial assumptions and methods described  herein,  and
        assuming  that  Mr.  DeTiberiis timely elects the Tier 4 55/27 Plan, the
        enactment of this proposed legislation would increase the Present  Value
        of  Future  Benefits  (PVFB)  by  approximately $61,700 and decrease the
        Present Value of member contributions by approximately $63,000,  result-
        ing in an increase in the present value of future employer contributions
        of approximately $124,700.
          Under  the Entry Age Normal cost method used to determine the employer
        contributions to TRS, there would be an increase in the Unfunded Accrued
        Liability (UAL) of approximately $42,300 and an increase in the  present
        value of future employer Normal Cost of approximately $82,400.
          FINANCIAL  IMPACT  -  ANNUAL  EMPLOYER CONTRIBUTIONS: The enactment of
        this proposed legislation would result in an initial increase in  annual
        employer  contributions  of approximately $10,100 which is the result of
        an increase in the Normal Cost in addition to the UAL payment.
          New UAL attributable to benefit changes are generally  amortized  over
        the remaining working lifetime of those impacted by the benefit changes.
        The  remaining  working lifetime for Mr.  DeTiberiis is approximately 20
        years and the increase in UAL was therefore  amortized  over  a  20-year
        period  (19  payments  under  the  One-Year Lag Methodology) using level
        dollar payments.
          CENSUS DATA: As of June 30, 2022, Mr. DeTiberiis was approximately age
        35, had approximately six years of service, and a salary of approximate-
        ly $85,300.
          ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
        been calculated based on the actuarial assumptions and methods used  for
        the Preliminary Fiscal Year 2024 employer contributions of TRS.
          For  the  purposes of this Fiscal Note, it is assumed that the changes
        would be reflected for the first time in the  June  30,  2023  actuarial
        valuation  of  TRS  used  to determine employer contributions for Fiscal
        Year 2025.
          RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
        highly  on the realization of the actuarial assumptions used, demograph-
        ics of the  impacted  group,  and  other  factors  such  as  investment,
        contribution,  and other risks. If actual experience deviates from actu-
        arial 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.

        A. 7745                             3
 
          Not measured in this Fiscal Note are the following:
          *  The  initial  additional  administrative  costs  to  implement  the
        proposed legislation.
          * The impact of this  proposed  legislation  on  Other  Postemployment
        Benefit costs.
          STATEMENT  OF  ACTUARIAL  OPINION:  I, Marek Tyszkiewicz, am the Chief
        Actuary for, and independent of, the New York  City  Retirement  Systems
        and  Pension  Funds. I am an Associate of the Society of Actuaries and a
        Member of the American Academy of Actuaries. I am a member of NYCERS but
        do not believe it impairs my objectivity and I  meet  the  Qualification
        Standards  of  the American Academy of Actuaries to render the actuarial
        opinion contained herein. To the  best  of  my  knowledge,  the  results
        contained  herein  have  been  prepared  in  accordance  with  generally
        accepted actuarial principles and  procedures  and  with  the  Actuarial
        Standards of Practice issued by the Actuarial Standards Board.
          FISCAL  NOTE  IDENTIFICATION:  This  Fiscal Note 2023-67 dated June 1,
        2023 was prepared by the Chief Actuary for the New York  City  Teachers'
        Retirement  System.  This  estimate  is intended for use only during the
        2023 Legislative Session.
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