Bill Text: NY A04548 | 2021-2022 | General Assembly | Introduced


Bill Title: Authorizes certain public employers to offer temporary retirement incentives (Part A); provides an age 55/25 years temporary retirement incentive for certain public employees (Part B).

Spectrum: Strong Partisan Bill (Democrat 12-1)

Status: (Introduced - Dead) 2022-01-05 - referred to governmental employees [A04548 Detail]

Download: New_York-2021-A04548-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          4548

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    February 4, 2021
                                       ___________

        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on Governmental Employees

        AN  ACT  to authorize employers to provide a temporary retirement incen-
          tive for certain public employees in the city of New  York  (Part  A);
          and  to  provide an age 55/25 years temporary retirement incentive for
          certain public employees in the city of New York (Part B)

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  This  act  enacts into law components of legislation that
     2  would enable the city of New York to offer a temporary retirement incen-
     3  tive to their employees, as well as to provide an age 55/25 years tempo-
     4  rary incentive for certain public employees. Each  component  is  wholly
     5  contained  within a Part identified as Parts A and B. The effective date
     6  for each particular provision contained within such Part is set forth in
     7  the last section of such Part. Any provision in  any  section  contained
     8  within  a  Part,  including  the effective date of the Part, which makes
     9  reference to a section "of this act", when used in connection with  that
    10  particular  component,  shall  be deemed to mean and refer to the corre-
    11  sponding section of the Part in which it is found, unless  noted  other-
    12  wise.
    13    § 2. Legislative findings. The legislature finds and declares that the
    14  retirement  benefits  provided  for  in this act are designed to achieve
    15  cost-savings for public employers and to avoid layoffs of public employ-
    16  ees in this time of fiscal need.  Therefore,  the  retirement  incentive
    17  benefit  provided  for  in  Part  A  of this act and the age 55/25 years
    18  retirement benefit provided for in Part B of this act are intended  only
    19  to  be temporary in nature for employees who are eligible to receive and
    20  qualify for the applicable benefit during the  applicable  time  periods
    21  specified  within  each  Part.  Further,  nothing  in  this act shall be
    22  construed to create an expectation of a future or continuing  retirement
    23  benefit for any public employee who is not eligible to receive and qual-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03567-02-1

        A. 4548                             2

     1  ify  for  the retirement benefits in this act during the applicable time
     2  periods.

     3                                   PART A

     4    Section 1. Definitions. As used in this act, unless the context clear-
     5  ly requires otherwise:
     6    a.  "Retirement  system"  means the New York city teachers' retirement
     7  system, the New York city board of education retirement  system  or  the
     8  New  York city employees' retirement system, exclusive of the retirement
     9  plans established pursuant to sections 13-156 and 13-157 of the adminis-
    10  trative code of the city of New York.
    11    b. "Teachers' retirement system" means the  New  York  city  teachers'
    12  retirement system.
    13    c.  "Eligible employee" means a person who is a member of a retirement
    14  system who is an employee of the city of New York, but such  term  shall
    15  not include the following persons:
    16    (a) elected officials, judges or justices appointed to or serving in a
    17  court of record;
    18    (b)  chief administrative officers of employers which participate in a
    19  teachers' retirement system;
    20    (c) appointed members of boards or commissions any  of  whose  members
    21  are appointed by the governor or by another public officer or body;
    22    d.  "Eligible  title"  means any title where a certain number of posi-
    23  tions in that title, as identified by agency, department, work  location
    24  or  appointing  authority  of  the city of New York, as the case may be,
    25  would otherwise be identified for layoff but for  this  act  because  of
    26  economy,  consolidation or abolition of functions, curtailment of activ-
    27  ities or otherwise. However, an eligible title can also include a  title
    28  as  identified  by  an  agency,  department, work location or appointing
    29  authority of the city of New York in which positions would not be elimi-
    30  nated but into which employees in  titles  affected  by  layoff  can  be
    31  transferred  or  reassigned  pursuant  to the civil service law, rule or
    32  regulation. The determination of eligible titles shall be  made  by  the
    33  chief executive officer of the city of New York.
    34    e.  "Active  service"  means  service while being paid on the payroll,
    35  provided that (a) a leave of absence with pay  shall  be  deemed  active
    36  service; (b) other approved leave without pay not to exceed twelve weeks
    37  prior  to  the  commencement  of the designated open period; and (c) the
    38  period of time subsequent to a June school term and on or before  August
    39  31  of the year for which an open period is designated for a teacher (or
    40  other employee employed on a school-year  basis)  who  is  otherwise  in
    41  active  service on the effective date of this act shall be deemed active
    42  service.
    43    f. "Open period" means the period beginning with the commencement date
    44  as defined in subdivision g of this section and shall not be  more  than
    45  ninety  days  nor  less  than thirty days in length, as specified by the
    46  city of New York. For the purposes of retirement pursuant to this act, a
    47  service retirement  application  must  be  filed  with  the  appropriate
    48  retirement  system  not  less  than fourteen days prior to the effective
    49  date of retirement to become effective, unless a shorter period of  time
    50  is permitted under law.
    51    g.  "Commencement  date"  means the first day the retirement incentive
    52  authorized by this act shall be made available, which shall mean a  date
    53  or  dates on or after the effective date of this act to be determined by
    54  the chief executive officer of the city of New York. The chief executive

        A. 4548                             3

     1  officer shall notify the heads of the appropriate retirement systems  of
     2  the  dates  of  each open period prior to the commencement dates of such
     3  periods.
     4    § 2. The determination of whether a title shall be considered eligible
     5  shall  consider  whether the reduction of a specific number of positions
     6  within a title would unacceptably:
     7    a. Directly result in a reduction of the level of service required  or
     8  mandated  to  protect and care for clients of the city of New York or to
     9  assure public health and safety;
    10    b. Endanger the health or safety of employees of the city of New York;
    11  or
    12    c. Clearly result in a loss of significant revenue to the city of  New
    13  York or result in substantially increased overtime or contractual costs.
    14  However,  any  title may be determined eligible if the vacancies created
    15  can be controlled by the use of transfer or reassignment  provisions  of
    16  the  civil service law, rules or regulations or other deployment of city
    17  employees.
    18    § 3. a. Eligibility for inclusion in the retirement incentive provided
    19  by section six of this act shall be determined by seniority for  employ-
    20  ees  of  the city of New York; seniority shall mean the date of original
    21  permanent appointment in the civil  service  of  the  city  adjusted  to
    22  include  veteran's  credits  for  those entitled to receive such credits
    23  pursuant to sections 80, 80-a  and  85,  if  applicable,  of  the  civil
    24  service law, as established in the official records of the New York city
    25  department of citywide administrative services, regardless of the juris-
    26  dictional classification of the position or the status of the incumbent.
    27    b. All eligible employees serving in eligible titles desiring to avail
    28  themselves  of  the retirement incentive provided by section six of this
    29  act shall provide written notice to his or her employer on or before the
    30  twenty-first day preceding the end of  the  open  period.    Failure  to
    31  provide such written notice shall render the employee ineligible for the
    32  retirement incentive provided by this act.
    33    §  4.  a.  On or after the effective date of this act, the city of New
    34  York may elect to provide its employees the retirement incentive author-
    35  ized by this act by the enactment of a local law, provided  however,  no
    36  local law enacted pursuant to this section shall in any manner supersede
    37  any  local charter. The local law shall specify the commencement date of
    38  the program and the length of the open period or periods.    A  copy  of
    39  such  law  shall  be  filed  with  the  appropriate retirement system or
    40  systems, and, if applicable, on forms provided by such system. The local
    41  law or resolution shall be accompanied by the  affidavit  of  the  chief
    42  executive officer certifying to the information contained in subdivision
    43  c of this section.
    44    b. The commencement date of an open period for eligible employees of a
    45  retirement system of the city of New York who elects retirement benefits
    46  pursuant  to this section may be up to one hundred eighty days after the
    47  end of the open period for other eligible  employees,  if  requested  by
    48  such system.
    49    c.  Notwithstanding  any other provision of law, the benefits provided
    50  by this act shall not be made  available  to  any  person  who  (a)  has
    51  received  any  retirement incentive authorized by any provision of state
    52  law, or (b) who receives, has received  or  is  eligible  to  receive  a
    53  payment  in  a  lump  sum or in another form from a retirement incentive
    54  pursuant to the provisions of a collective bargaining  agreement  or  by
    55  other  arrangement  with his or her employer, unless such person files a
    56  written statement with his or her employer, a copy  of  which  shall  be

        A. 4548                             4

     1  forwarded to the appropriate retirement system, that he or she agrees to
     2  waive  any  right to such payment. If the city of New York has offered a
     3  retirement incentive pursuant to the provisions of a collective bargain-
     4  ing agreement or by other arrangement, such city shall prepare, and file
     5  with  each  retirement  system,  a  list containing the names and social
     6  security numbers of all persons described in this subdivision. The  city
     7  is  authorized,  however,  to  exempt  persons  in  its  employ from the
     8  provisions of paragraph (b) of this subdivision. Such exemption shall be
     9  made part of the election made pursuant to this section.
    10    § 5. Notwithstanding any other provision of law, any eligible employee
    11  serving in an eligible title who:
    12    a. has been continuously in the active service of the city of New York
    13  prior to the commencement date of the applicable open period;
    14    b. files an application  for  service  retirement  that  is  effective
    15  during the open period; and
    16    c.  is otherwise eligible for a service retirement as of the effective
    17  date of the application for retirement shall be entitled to the  retire-
    18  ment  incentive  provided  in  section six of this act. If not otherwise
    19  eligible for a service retirement, the following person shall be  deemed
    20  to satisfy the eligibility condition of this section: a person who is at
    21  least  age fifty with ten or more years service as of the effective date
    22  of retirement (other than a member of a retirement plan  which  provides
    23  for  half-pay  pension  upon  completion  of  twenty-five  years or less
    24  service without regard to age); or a member of a retirement  plan  which
    25  provides  for  half-pay  pension upon completion of twenty-five years of
    26  service without regard to age who has not accrued, excluding  additional
    27  credit  granted  pursuant  to  this  act, the minimum number of years of
    28  service required to retire with an allowance equal to fifty  percent  of
    29  final average salary under such plan, but has, with the inclusion of the
    30  additional  credit provided under this act, accrued such number of years
    31  of credit.
    32    § 6. Notwithstanding any other provision of law, an eligible  employee
    33  serving  in  an eligible title who is a member of a retirement system of
    34  the city of New York and employed by the city of New  York  and  who  is
    35  entitled  to a retirement incentive pursuant to section five of this act
    36  shall receive a retirement incentive of one-twelfth of a year  of  addi-
    37  tional retirement credit for each year of pension service credited as of
    38  the  date  of  retirement,  up to a maximum of three years of retirement
    39  service credit at  the  time  of  retirement,  provided,  however,  that
    40  service  credit provided under the provisions of sections 902 and 911 of
    41  the retirement and social security law shall not be included when calcu-
    42  lating the additional retirement credit awarded pursuant  to  this  act.
    43  For  the  New  York  city teachers' retirement system, the New York city
    44  employees' retirement system and the New York city  board  of  education
    45  retirement  system  such  incentive shall be available for all purposes,
    46  including fulfilling the qualifying service requirements of plan  A  and
    47  C, if applicable.
    48    An eligible employee who is covered by the provisions of article 15 of
    49  the retirement and social security law shall retire under the provisions
    50  of  article  15 of the retirement and social security law. The amount of
    51  such benefit for an eligible employee who is covered by  article  15  of
    52  the  retirement and social security law and retires under the provisions
    53  of this section (other than a  member  with  thirty  or  more  years  of
    54  service  in the New York city employees' retirement system, the New York
    55  city teachers' retirement system, or the New York city board  of  educa-
    56  tion  retirement system) shall be reduced by six percent for each of the

        A. 4548                             5

     1  first two years by which  retirement  precedes  age  sixty-two,  plus  a
     2  further  reduction  of  three  percent for each year by which retirement
     3  precedes age sixty, provided, however, the  foregoing  reductions  shall
     4  not  apply:  (i) in any case where an eligible employee can retire after
     5  twenty-five years of service with immediate payability prior to the  age
     6  of  sixty-two  pursuant  to  section  604-b of the retirement and social
     7  security law or (ii) to any time period subsequent to the point at which
     8  an eligible employee can retire for service without reduction of his  or
     9  her  service  retirement allowance pursuant to article 16 of the retire-
    10  ment and social security law.  Such  reduction  shall  be  prorated  for
    11  partial  years. The amount of such benefit for an eligible employee with
    12  thirty or more years of service who is a member of  the  New  York  city
    13  employees'  retirement  system,  the  New York city teachers' retirement
    14  system, or the New York city board of education retirement system, or an
    15  eligible employee who is a participant in the optional twenty-five  year
    16  early  retirement  program for certain New York city members governed by
    17  section 604-c of the retirement and social security  law,  as  added  by
    18  chapter  96 of the laws of 1995 or a twenty-five year participant in the
    19  age fifty-five retirement program  governed  by  section  604-i  of  the
    20  retirement  and  social  security law, with twenty-five or more years of
    21  service and who is covered by article 15 of the  retirement  and  social
    22  security  law  shall  be  reduced by five percent for each year by which
    23  retirement pursuant to this section precedes age fifty-five. The  amount
    24  of such benefit for an eligible New York city employee with five or more
    25  years of service and who is a participant in the age fifty-seven retire-
    26  ment  program  governed  by  section  604-d of the retirement and social
    27  security law shall be reduced by one-thirtieth for the first  two  years
    28  by which retirement precedes age fifty-seven plus a further reduction of
    29  one-twentieth for each year by which retirement precedes age fifty-five.
    30  Such  reduction  shall  be prorated for partial years. There shall be no
    31  reduction for an eligible New York city employee in a physically  taxing
    32  position  with twenty-five or more years of service and who is a partic-
    33  ipant (i) in the optional twenty-five year early retirement program  for
    34  certain  members  governed by section 604-c of the retirement and social
    35  security law, as added by chapter 96 of the laws of 1995, or (ii) in the
    36  age fifty-seven retirement program governed  by  section  604-d  of  the
    37  retirement and social security law.
    38    An  eligible  employee  serving in an eligible title who is covered by
    39  article 11 of the retirement and social security law shall retire  under
    40  the  provisions  of such article. There shall be no reduction in retire-
    41  ment benefit provided that such employee retires  with  thirty  or  more
    42  years of service at age fifty-five or older.
    43    An  eligible  employee serving in an eligible title who is not covered
    44  by article 11 or 15 of the retirement  and  social  security  law  shall
    45  retire  under  the provisions of the plan by which he or she is covered.
    46  The amount of such benefit shall be reduced by  five  percent  for  each
    47  year  by  which  retirement pursuant to this section precedes age fifty-
    48  five, provided, however, the foregoing reductions shall not  apply:  (i)
    49  in  any  case  where  an eligible employee can retire pursuant to a plan
    50  which permits retirement for service with immediate  payability,  exclu-
    51  sive  of  this  act,  prior to the age of fifty-five or (ii) to any time
    52  period subsequent to the point at which an eligible employee can  retire
    53  for service without reduction of his or her service retirement allowance
    54  pursuant  to  article 16 of the retirement and social security law. Such
    55  reduction shall be prorated for partial years.

        A. 4548                             6

     1    An eligible employee serving in an eligible title who participates  in
     2  a  retirement  plan  which  provides for a retirement allowance equal to
     3  fifty percent of final average salary upon the completion of twenty-five
     4  years of service without regard to age and who is otherwise eligible  to
     5  retire  shall  retire  under  the provisions of such plan. Such employee
     6  shall, at the time of retirement, be credited with one-twelfth of a year
     7  of additional retirement service credit for each year of service credit-
     8  ed under such plan as of the date of retirement,  up  to  a  maximum  of
     9  three  years  of  retirement  service  credit.  If such employee has not
    10  accrued, excluding additional credit granted pursuant to this  act,  the
    11  minimum  number of years of service required to retire with an allowance
    12  equal to fifty percent of final average salary under such plan, but has,
    13  with the inclusion of the additional credit  provided  under  this  act,
    14  accrued such number of years of credit, the benefit payable shall be the
    15  percentage  of  final average salary that would ordinarily be applicable
    16  to such individual upon retirement with such amount of credit (including
    17  incentive credit), reduced by five per centum per year for each year  by
    18  which  the  number of years of service otherwise required to retire with
    19  an allowance equal to fifty percent of final average salary  under  such
    20  plan  exceeds the amount of service credited to such employee under such
    21  plan  at  retirement  (excluding  the  additional  retirement  incentive
    22  service  credit  provided pursuant to this act). Such reduction shall be
    23  prorated for partial years.
    24    § 7. a. Notwithstanding any other provision of  law,  any  termination
    25  pay or leave arising from accrued sick leave or accrued annual leave for
    26  an  eligible  employee who has elected the retirement incentive provided
    27  by this act and who is a member of the New York city  teachers'  retire-
    28  ment  system  employed by the board of education of the city of New York
    29  shall be paid in three equal installments  during  a  twenty-four  month
    30  period  commencing on such eligible employee's effective date of retire-
    31  ment.
    32    b. An employee of the city of New York who retires under  the  retire-
    33  ment  incentive provided by this act, who is eligible for terminal leave
    34  pursuant to an applicable collective bargaining agreement or a personnel
    35  policy or rule or retirement leave  pursuant  to  section  3107  of  the
    36  education  law  or who has an accrued annual leave balance on the effec-
    37  tive date of retirement shall be paid in three  equal  installments  two
    38  months,  fourteen  months and twenty-four months following such eligible
    39  employee's effective date of retirement.
    40    § 8. a. The city of New York, if it elects  the  retirement  incentive
    41  provided  by  this  act  shall be required to demonstrate the savings of
    42  their election by either eliminating positions vacated as a result of an
    43  eligible employee in an eligible title receiving the incentive  provided
    44  by  section six of this act or demonstrating a compensation savings such
    45  that the total amount of base salary paid for the two-year period subse-
    46  quent to the effective date of retirement for such eligible employees in
    47  eligible titles to new hires, if any, who otherwise would not have  been
    48  hired  by such employer after the effective date of this act but for the
    49  retirement incentive provided herein shall be no more than  one-half  of
    50  the total amount of base salary that would have been paid to such eligi-
    51  ble  employees  from  their date of retirement for such two-year period.
    52  The city may also demonstrate savings, however, by identifying a  vacant
    53  position  into  which another employee can be appointed, transferred, or
    54  reassigned pursuant to the civil service law, rules or  regulations,  in
    55  which  case  the  former  position  of the employee so appointed, trans-

        A. 4548                             7

     1  ferred, or reassigned shall be eliminated.  The city shall  make  avail-
     2  able its plans for achieving the savings described herein.
     3    b.  The  New  York city department of citywide administrative services
     4  shall prepare a report designating the title, grade level,  salary,  and
     5  classification,  according to appointing authority, (i) of each position
     6  which is eliminated pursuant to subdivision a of this section,  (ii)  of
     7  each position into which another employee was appointed, transferred, or
     8  reassigned  and  the former position of such employee, and (iii) of each
     9  position which is eliminated as a result of an appointment, transfer  or
    10  reassignment  referred  to  in  paragraph (ii) of this subdivision. Such
    11  report shall be available no later than ninety days after the last  date
    12  of the open period related to such positions.
    13    §  9. Nothing in this act shall be used to provide benefits that shall
    14  exceed the limits contained in section 415 of the internal revenue code.
    15  Provided, however, any service retirement benefit which has been reduced
    16  because of section 415 of the internal revenue code shall  be  increased
    17  when  (and  consistent  with)  the  dollar  limits in section 415 of the
    18  internal revenue code are adjusted by the internal revenue  service  for
    19  cost  of living increases. Such increases shall not increase the benefit
    20  in excess of the service retirement benefit otherwise payable.
    21    § 10. Any eligible employee who retires pursuant to the provisions  of
    22  this act and enters or reenters public service as defined in subdivision
    23  e  of section 210 of the retirement and social security law and joins or
    24  rejoins any public retirement system of the city of New  York  shall  if
    25  the additional benefit was provided pursuant to: (a) section six of this
    26  act,  forfeit  the additional benefit authorized by this act at the time
    27  of his or her subsequent retirement; or (b) repay to the city such addi-
    28  tional contribution together with the appropriate interest as determined
    29  by the appropriate retirement system.
    30    § 11. Notwithstanding any other  provision  of  law,  if  the  service
    31  retirement  benefit  of  a member of a retirement system is subject to a
    32  maximum retirement benefit, the additional benefit  authorized  by  this
    33  act  will  be computed by multiplying the final average salary times the
    34  number of years of service credit granted by section  six  of  this  act
    35  times the benefit fraction of the plan under which such member retires.
    36    § 12. The provisions of section 430 of the retirement and social secu-
    37  rity  law shall not apply to any benefit or benefit improvement provided
    38  by this act.
    39    § 13. The pension benefit costs of section six of this  act  shall  be
    40  paid  by  the  city  of  New York as provided by applicable law for each
    41  retirement system covered by this act over a period not to  exceed  five
    42  years  commencing  in the fiscal year following the fiscal year in which
    43  this act shall have become a law.
    44    § 14. Where an employee is eligible to receive the benefit  authorized
    45  under  section six and the retirement benefit provided for under section
    46  five of part B of this act, such employee  may  elect  a  section  under
    47  which  he  or  she  will  participate.    In no event shall the benefits
    48  provided for in section six of this act be received by any  employee  in
    49  conjunction with the benefits of section five of part B of this act.
    50    § 15. This act shall take effect immediately.
    51                                    PART B

    52    Section 1. Definitions. As used in this act, unless the context clear-
    53  ly requires otherwise:
    54    a.  "Retirement  system"  means the New York city teachers' retirement
    55  system, the New York city board of education retirement  system  or  the

        A. 4548                             8

     1  New  York city employees' retirement system, exclusive of the retirement
     2  plans established pursuant to sections 13-156 and 13-157 of the adminis-
     3  trative code of the city of New York.
     4    b.  "Teachers'  retirement  system"  means the New York city teachers'
     5  retirement system.
     6    c. "Eligible employee" means a person who is a member of a  retirement
     7  system  of  the city of New York who has attained age fifty-five and has
     8  at least twenty-five years of creditable service in a retirement system,
     9  but such term shall not include the following persons:
    10    (a) elected officials, judges or justices appointed to or  serving  in
    11  court of record;
    12    (b)  chief administrative officers of employers which participate in a
    13  teachers' retirement system;
    14    (c) appointed members of boards or commissions any  of  whose  members
    15  are appointed by the governor or by another public officer or body;
    16    d.  "Active  service"  means  service while being paid on the payroll,
    17  provided that (a) a leave of absence with pay  shall  be  deemed  active
    18  service; (b) other approved leave without pay not to exceed twelve weeks
    19  prior to and the commencement of the designated open period; and (c) the
    20  period  of time subsequent to a June school term and on or before August
    21  31 of the year for which an open period is designated for a teacher  (or
    22  other  employee  employed  on  a  school-year basis) who is otherwise in
    23  active service on the effective date of this act shall be deemed  active
    24  service.
    25    e. "Open period" means the period beginning with the commencement date
    26  as  defined in subdivision f of this section and shall be ninety days in
    27  length, as specified by the city  of  New  York.  For  the  purposes  of
    28  retirement  pursuant  to this act, a service retirement application must
    29  be filed with the appropriate retirement system not less  than  fourteen
    30  days  prior  to  the  effective  date of retirement to become effective,
    31  unless a shorter period of time is permitted under law.
    32    f. "Commencement date" means the  first  day  the  retirement  benefit
    33  mandated by this act shall be made available, which shall mean a date or
    34  dates on or after the effective date of this act to be determined by the
    35  chief  executive  officer  of  the city of New York. The chief executive
    36  officer shall notify the head of the appropriate  retirement  system  of
    37  the  date  of  the  open periods prior to the commencement dates of such
    38  periods.
    39    § 2. The city of New York, if it elects  to  participate  pursuant  to
    40  section  three  of  this act shall establish a commencement date for the
    41  retirement benefit established under section five of  this  act  by  the
    42  chief  executive  officer  issuing  an executive order establishing such
    43  commencement date, provided, however, no executive order  shall  in  any
    44  manner  supersede  any local charter. A copy of any such executive order
    45  establishing a commencement date shall be  filed  with  the  appropriate
    46  retirement  system  or systems, and, if applicable, on forms provided by
    47  such system. The executive order shall be accompanied by  the  affidavit
    48  of the chief executive officer certifying the commencement date.
    49    §  3.  a.  On or after the effective date of this act, the city of New
    50  York may elect to provide its employees the retirement incentive author-
    51  ized by this act by the enactment of a local law  provided  however,  no
    52  local law enacted pursuant to this section shall in any manner supersede
    53  any local charter.  A copy of such law or resolution shall be filed with
    54  the  appropriate  retirement  system  or systems, and, if applicable, on
    55  forms provided by such system. The local law shall be accompanied by the

        A. 4548                             9

     1  affidavit of the chief executive officer certifying the validity of such
     2  law.
     3    b. The commencement date of an open period for eligible employees of a
     4  retirement system of the city of New York who elects retirement benefits
     5  pursuant  to this section may be up to one hundred eighty days after the
     6  end of the open period for other eligible  employees,  if  requested  by
     7  such system.
     8    § 4. Notwithstanding any other provision of law, any eligible employee
     9  who  (a)  has been continuously in the active service of the city of New
    10  York prior to the commencement date of the applicable open  period,  (b)
    11  files an application for service retirement that is effective during the
    12  open  period,  and (c) is otherwise eligible for a service retirement as
    13  of the effective date of the application for retirement shall  be  enti-
    14  tled to the retirement benefit provided in section five of this act.
    15    §  5.  a.  Notwithstanding  any  other  provision  of law, an eligible
    16  employee who is: (a) a member of a retirement system of the city of  New
    17  York  and  employed by the city of New York and (b) who is entitled to a
    18  retirement benefit pursuant to section  four  of  this  act  may  retire
    19  during  the  open  period without the reduction of his or her retirement
    20  benefit that would otherwise be imposed by  article  11  or  15  of  the
    21  retirement  and social security law if he or she has attained the age of
    22  fifty-five and has completed at least twenty-five or more years of cred-
    23  itable service. An eligible employee who is covered by the provisions of
    24  articles 11 and 15 of the  retirement  and  social  security  law  shall
    25  retire  under the provisions of articles 11 and 15 of the retirement and
    26  social security law.
    27    b. The chief executive officer of  the  city  of  New  York  may  deny
    28  participation  in  the  retirement  benefit provided by subdivision a of
    29  this section if the chief executive officer makes a  determination  that
    30  the employee holds a position that is deemed critical to the maintenance
    31  of public health and safety.
    32    c. Where an employee is eligible for the retirement benefit under this
    33  section  and the retirement incentive authorized pursuant to section six
    34  of part A of this act, such employee shall elect a section  under  which
    35  he  or  she  will participate. The benefits provided by subdivision a of
    36  this section shall not be conditioned upon the city of New  York  making
    37  the benefits of section six of part A of this act available to employees
    38  in their employ. Further, the benefits provided by subdivision a of this
    39  section  shall  not  be  available  in  conjunction with the benefits of
    40  section six of part A of this act.
    41    d. The action of the chief executive officer of the city of  New  York
    42  in  denying the retirement benefit provided for in subdivision a of this
    43  section to any individual shall be  subject  to  review  in  the  manner
    44  provided  for  in  article  78 of the civil practice law and rules. Such
    45  action for review pursuant to article 78 of the civil practice  law  and
    46  rules  shall  only  be  commenced  by the individual that was denied the
    47  retirement benefit provided by subdivision a of this section.
    48    e. After making any such determination under  subdivision  b  of  this
    49  section the chief executive officer of the city of New York shall notify
    50  the  appropriate retirement system or teachers' retirement system of its
    51  determination.
    52    § 6. The pension benefit costs of section five of this  act  shall  be
    53  paid  by  the  city  of  New York as provided by applicable law for each
    54  retirement system covered by this act over a period not to  exceed  five
    55  years  commencing  in the fiscal year following the fiscal year in which
    56  this act shall have become a law.

        A. 4548                            10

     1    § 7. This act shall take effect immediately.
     2    § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
     3  sion,  section  or  part  of  this act shall be adjudged by any court of
     4  competent jurisdiction to be invalid, such judgment  shall  not  affect,
     5  impair,  or  invalidate  the remainder thereof, but shall be confined in
     6  its operation to the clause, sentence, paragraph,  subdivision,  section
     7  or part thereof directly involved in the controversy in which such judg-
     8  ment shall have been rendered. It is hereby declared to be the intent of
     9  the  legislature  that  this  act  would  have been enacted even if such
    10  invalid provisions had not been included herein.
    11    § 4. This act shall take effect immediately; provided,  however,  that
    12  the  applicable  effective date of Parts A and B of this act shall be as
    13  specifically set forth in the last section of such Parts.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY OF BILL: This proposed legislation, as it relates to  the  New
        York  City  Retirement  Systems and Pension Funds (NYCRS), would provide
        for a temporary Early Retirement  Incentive  Program  (ERI  Program)  to
        allow  certain members of the New York City Employees' Retirement System
        (NYCERS), the New York City Teachers' Retirement System (TRS),  and  the
        New  York  City  Board  of  Education  Retirement System (BERS), who are
        employees of the City of New York (City) and meet  enumerated  criteria,
        to elect immediate retirement with enhanced benefits.
          The  ERI  Program  consists  of  two  parts and is contingent upon the
        City's election to participate in the Program. Part A would  provide  to
        eligible  members, determined by title, seniority, and enumerated policy
        considerations, an additional service credit. Part B  would  remove  the
        application   of  early  retirement  reduction  factors  for  qualifying
        members. The benefits of the respective Parts cannot be combined.
          Eligible NYCRS members would have anywhere from 30 to 90  days  in  an
        open  period  to  elect  and retire under Part A or within a 90-day open
        period following the commencement date to retire under Part B of the ERI
        Program. Multiple open periods, not to exceed 180 days from the  end  of
        an  open  period for other employees, may be requested by NYCRS.  Should
        the City elect to participate in the ERI Program provided by  this  Act,
        it would be required to demonstrate the savings related to the election.
          A member is eligible to participate in Part A of the ERI Program if he
        or she:
          * Is otherwise eligible for service retirement;
          *  Is at least age 50 with 10 or more years of service and is not in a
        plan which permits retirement at half-pay with  25  or  fewer  years  of
        service without regard to age; or
          *  Is  in  a  plan  that permits retirement at half-pay at 25 years of
        service without regard to age  and  would  reach  25  years  of  service
        considering the additional service credit provided in Part A.
          A member is eligible to participate in Part B of the ERI Program if he
        or she is age 55 or older and has at least 25 years of service.
          In addition to the eligibility conditions above, members must also:
          *  Be  in continuous active service preceding the commencement date of
        the open period;
          * For Part A - provide timely written notice of the  intent  to  avail
        himself  or  herself  of the ERI and file for service retirement that is
        effective within the open period;
          * For Part B - file for service retirement that  is  effective  within
        the  open  period  and otherwise be eligible to retire for service as of
        the effective date of retirement.

        A. 4548                            11

          Effective Date: Upon enactment and as  determined  by  the  respective
        open periods contained in Parts A and B.
          IMPACT  ON  BENEFITS:  Part  A  would provide one-twelfth of a year of
        additional retirement service credit for each year of  pension  service,
        up  to a maximum of three years of additional retirement service credit.
        Some benefits provided under Part A could be subject to Early Retirement
        Factors (ERF) as specified in the proposed legislation.
          Part B would allow members to retire with an unreduced benefit if they
        are at least age 55 with 25 or more years of service.
          FINANCIAL IMPACT - OVERVIEW: There is no credible  data  available  to
        estimate  the  number  of  members who will retire under the current ERI
        Program and potentially benefit from this proposed legislation.   There-
        fore,  the estimated financial impact has been calculated on a per event
        basis equal to the average increase  in  the  Present  Value  of  future
        employer  contributions  and  in  the  annual employer contributions for
        members who would benefit from the proposed legislation.
          The Present Value of future employer contributions is the  net  result
        of  the  increase in the Present Value of Future Benefits (PVFB) and the
        decrease in the Present Value of member contributions.
          For the purposes of this Fiscal Note, the increase in Present Value of
        future employer contributions was  amortized  over  a  five-year  period
        (four  payments  under  the One-Year Lag Methodology (OYLM)) using level
        dollar payments, the maximum allowable period under the proposed  legis-
        lation. This amortized value is the estimated increase in annual employ-
        er contributions.
          There  will  also be future savings in Employer Contributions assuming
        that these members are not replaced.  This  additional  savings  is  not
        included here.
          With  respect  to  an  individual  member, the additional cost of this
        proposed legislation could vary greatly depending on the member's length
        of service, age, and salary history.
          FINANCIAL IMPACT - SUMMARY: Based on the census data and the actuarial
        assumptions and methods described herein, the enactment of this proposed
        legislation would result in an increase in the Present Value of Employer
        Contributions and annual employer contributions.  The estimated  pension
        financial impact has been calculated as the average increase per person.
        A  breakdown  of  the  financial  impact  by NYCRS is shown in the table
        below:

                       Additional
                       Present Value of         Estimated
        NYCRS          Future Employer          Annual Employer
                       Contributions            Contributions
                       ($ Per Person)           ($ Per Person)
        Part A Only
        NYCERS         $80,700                  $24,600
        TRS            84,800                    25,900
        BERS           37,900                    11,600
        Average        $77,900                  $23,800

        Part B Only
        NYCERS         $113,600                 $34,700
        TRS            68,000                    20,800
        BERS           98,400                    30,100
        Average        $109,200                 $33,300

        A. 4548                            12

        Both A & B
        NYCERS         $96,500                  $29,500
        TRS            85,000                    26,000
        BERS           43,700                    13,400
        Average        $87,700                  $26,800
          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  Final  June  30,  2020  actuarial  valuations  of
        NYCERS,  TRS,  and  BERS.  In accordance with the OYLM used to determine
        employer contributions, the increase  in  employer  contributions  would
        first be reflected in Fiscal Year 2022.
          CENSUS DATA: For purposes of this Fiscal Note, it was assumed that the
        census data had the same age, gender, and service characteristics as the
        census  data used in the Preliminary June 30, 2019 (Lag) actuarial valu-
        ations of NYCERS, TRS, and BERS to determine the Preliminary Fiscal Year
        2021 employer contributions. Active members' salaries have been adjusted
        to reflect estimated salary increases from June 30,  2019  to  June  30,
        2020.
          The  table  below  contains  the  census data for members who meet the
        eligibility requirements and would be impacted by  the  proposed  legis-
        lation  (Potential  Elections),  and  for  a subset of those members who
        would benefit actuarially (Assumed to Elect).

        NYCRS               Potential Elections
        Part A Only  Count   Avg Age  Avg Svc Avg Salary
        NYCERS       34,147  58.5     22.3    $83,900
        TRS          31,727  57.7     21.2    101,300
        BERS         9,736   60.2     15.8     49,900
        Total        75,610  58.4     21.0    $86,800

        Part B Only  Count   Avg Age  Avg Svc Avg Salary
        NYCERS       5,990   58.2     30.2    $88,600
        TRS          569     58.0     26.9    110,100
        BERS         430     58.6     29.5     72,700
        Total        6,989   58.2     29.9    $89,400

        Both A & B   Count   Avg Age  Avg Svc Avg Salary
        NYCERS       34,147  58.5     22.3    $83,900
        TRS          31,727  57.7     21.2    101,300
        BERS         9,736   60.2     15.8     49,900
        Total        75,610  58.4     21.0    $86,800

        NYCRS               Assumed to Elect
        Part A Only  Count   Avg Age  Avg Svc Avg Salary
        NYCRS        19,259  60.4     26.3    $87,600
        TRS          11,436  61.3     27.0    109,000
        BERS         3,318   63.6     21.6     51,600
        Total        34,013  61.0     26.1    $91,300

        Part B Only  Count   Avg Age  Avg Svc Avg Salary
        NYCERS       5,941   58.2     30.2    $88,400
        TRS          530     57.9     26.9    109,900
        BERS         423     58.6     29.5     71,500
        Total        6,894   58.2     29.9    $89,000

        A. 4548                            13

        Both A & B   Count   Avg Age  Avg Svc Avg Salary
        NYCERS       20,204  60.2     26.4    $88,000
        TRS          11,588  61.2     27.0    109,000
        BERS         3,331   63.6     21.6     51,900
        Total        35,123  60.9     26.2    $91,500

          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 June 30, 2019 (Lag)  actuarial  valuations
        used  to  determine  the  Preliminary Fiscal Year 2021 employer contrib-
        utions of NYCERS, TRS, and BERS.
          The Actuary is proposing a set of changes for use in the June 30, 2019
        (Lag) actuarial valuations of NYCRS to determine the Final  Fiscal  Year
        2021 Employer Contributions (2021 A&M). If the 2021 A&M is enacted it is
        estimated  that  it  would  produce  increases  in  the Present Value of
        Employer  Contributions  and  annual  employer  contributions  that  are
        approximately 1% larger than the results shown above.
          To  determine the impact of the elective nature of the proposed legis-
        lation, a subgroup based on who could  potentially  benefit  actuarially
        was used. The Present Value of future employer costs (i.e. the PVFB less
        the Present Value of future member contributions) of each member's bene-
        fit  was  determined  under  their current plan and as if retiring imme-
        diately under the ERI Program. If the Present Value of  future  employer
        cost  under  the  ERI  Program  was greater than or equal to the Present
        Value of future employer cost under the member's current plan, then  the
        member was deemed to benefit actuarially.
          Based  on  this  analysis, the costs presented in this Fiscal Note are
        borne only from current NYCERS, TRS, and BERS members who  are  employed
        by  the  City and assumed to benefit from, and thus opt to retire under,
        the ERI Program.
          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, TRS, and BERS, 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 offsetting reduction in salary due to retirements  earlier  than
        expected.
          *  The  impact of potential new hires replacing members who retire due
        to the ERI Program.
          * The  initial,  additional  administrative  costs  to  implement  the
        proposed legislation.
          *  The  impact  of  this  proposed legislation on Other Postemployment
        Benefit (OPEB) costs.
          STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
        ary  for,  and  independent of, the New York City Retirement Systems and
        Pension Funds. I am a Fellow of the Society of  Actuaries,  an  Enrolled
        Actuary under the Employee Retirement Income and Security Act of 1974, a
        Member of the American Academy of Actuaries, and a Fellow of the Confer-
        ence  of Consulting Actuaries. I meet the Qualification Standards of the
        American Academy of Actuaries to render the actuarial opinion  contained

        A. 4548                            14

        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 2021-01 dated January 27,
        2021  was prepared by the Chief Actuary for the New York City Employees'
        Retirement System, the New York City Teachers'  Retirement  System,  and
        the New York City Board of Education Retirement System. This estimate is
        intended for use only during the 2021 Legislative Session.
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