Bill Text: NY A07306 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes a twenty-five year retirement program for members of the NYC employees' retirement system employed as water supply police; provides for employer pick-up of certain additional member contributions required to be made by certain participants in the 25-year retirement programs.

Spectrum: Bipartisan Bill

Status: (Introduced) 2019-04-22 - referred to governmental employees [A07306 Detail]

Download: New_York-2019-A07306-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          7306
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     April 22, 2019
                                       ___________
        Introduced  by  M.  of  A.  CUSICK, ORTIZ, PHEFFER AMATO, CROUCH, BYRNE,
          D'URSO, GIGLIO -- Multi-Sponsored by --  M.  of  A.  COOK,  McDONOUGH,
          SIMON  --  read  once  and  referred  to the Committee on Governmental
          Employees
        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 water supply police; and
          in relation to providing for employer pick up, pursuant to  provisions
          of  the  internal  revenue code, of certain additional member contrib-
          utions required to be made by certain participants in the  twenty-five
          year  retirement  programs;  and  providing  for the repeal of certain
          provisions upon expiration thereof
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subdivision b of section 440 of the retirement and social
     2  security law, as amended by chapter 682 of the laws of 2003, is  amended
     3  to read as follows:
     4    b.  The  provisions  of  this article shall not be construed to extend
     5  coverage to an employee not  otherwise  eligible  for  membership  in  a
     6  retirement system or to provide an increase in benefits to a member of a
     7  retirement  system other than as provided by section four hundred forty-
     8  five-d, or section four hundred forty-five-f, [or] section four  hundred
     9  forty-five-h, section four hundred forty-five-j, or section four hundred
    10  forty-eight of this article.
    11    § 2. Subdivision a of section 444 of the retirement and social securi-
    12  ty  law,  as amended by section 141 of subpart B of part C of chapter 62
    13  of the laws of 2011, is amended to read as follows:
    14    a. Except as provided in subdivision c of section four hundred  forty-
    15  five-a  of  this  article,  subdivision c of section four hundred forty-
    16  five-b of this article, subdivision c of  section  four  hundred  forty-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00385-03-9

        A. 7306                             2
     1  five-c   of   this  article,  subdivision  c  of  section  four  hundred
     2  forty-five-d of this article as added by chapter four  hundred  seventy-
     3  two  of  the  laws  of  nineteen  hundred  ninety-five, subdivision c of
     4  section  four  hundred  forty-five-e  of  this article, subdivision c of
     5  section four hundred forty-five-f of this article and subdivision  c  of
     6  section  four hundred forty-five-h of this article, and subdivision c of
     7  section four hundred forty-five-j of this article, the  maximum  retire-
     8  ment benefit computed without optional modification provided to a member
     9  of a retirement system who is subject to the provisions of this article,
    10  other  than  a  police officer, a firefighter, an investigator member of
    11  the New  York  city  employees'  retirement  system,  a  member  of  the
    12  uniformed  personnel  in  institutions under the jurisdiction of the New
    13  York city department of correction who receives a  performance  of  duty
    14  disability  retirement allowance, a member of the uniformed personnel in
    15  institutions under the jurisdiction of the department of corrections and
    16  community supervision or a security  hospital  treatment  assistant,  as
    17  those  terms are defined in subdivision i of section eighty-nine of this
    18  chapter, who receives a performance of duty disability retirement allow-
    19  ance, a member of a teachers' retirement system, New York  city  employ-
    20  ees'  retirement  system,  New  York  city board of education retirement
    21  system or a member of the New York state and local employees' retirement
    22  system or a member of the New York city employees' retirement system  or
    23  New York city board of education retirement system employed as a special
    24  officer,  parking  control specialist, school safety agent, campus peace
    25  officer, taxi and limousine  inspector  [or],  a  police  communications
    26  member,  or  a  member  of  the  water  supply police and who receives a
    27  performance of duty disability pension,  from  funds  other  than  those
    28  based on a member's own or increased-take-home-pay contributions, shall,
    29  before  any  reduction  for early retirement, be sixty per centum of the
    30  first fifteen thousand three hundred dollars of  final  average  salary,
    31  and  fifty per centum of final average salary in excess of fifteen thou-
    32  sand three hundred dollars, and forty per centum of final average salary
    33  in excess of twenty-seven  thousand  three  hundred  dollars,  provided,
    34  however,  that  the  benefits  provided by subdivision c of section four
    35  hundred forty-five-d of this article as added by  chapter  four  hundred
    36  seventy-two  of  the laws of nineteen hundred ninety-five based upon the
    37  additional member  contributions  required  by  subdivision  d  of  such
    38  section  four  hundred  forty-five-d  shall  be  subject  to the maximum
    39  retirement benefit computations set forth in this section.  The  maximum
    40  retirement  benefit  computed without optional modification payable to a
    41  police officer, an investigator member of the New York  city  employees'
    42  retirement  system  or  a  firefighter  shall  equal  that  payable upon
    43  completion of thirty years of service, except that the  maximum  service
    44  retirement  benefit  computed  without optional modification shall equal
    45  that payable upon completion of thirty-two years of service.
    46    § 3. Subdivision a of section 445 of the retirement and social securi-
    47  ty law, as amended by chapter 476 of the laws of  2018,  is  amended  to
    48  read as follows:
    49    a.  No  member of a retirement system who is subject to the provisions
    50  of this article shall retire without regard to age, exclusive of retire-
    51  ment for disability, unless he or she is a police officer,  an  investi-
    52  gator  member  of  the New York city employees' retirement system, fire-
    53  fighter, correction officer, a qualifying member as defined  in  section
    54  eighty-nine-t  of  this  chapter, as added by chapter six hundred fifty-
    55  seven of the laws of nineteen hundred ninety-eight, [of  this  chapter,]
    56  sanitation  worker, a special officer (including persons employed by the

        A. 7306                             3
     1  city of New York in the title urban park ranger or associate urban  park
     2  ranger),  school safety agent, campus peace officer or a taxi and limou-
     3  sine commission inspector member of the New York city employees' retire-
     4  ment system or the New York city board of education retirement system, a
     5  dispatcher  member  of the New York city employees' retirement system, a
     6  police communications member of the New York city employees'  retirement
     7  system, a member of the water supply police in a position referred to in
     8  paragraph (o) of subdivision thirty-four of section 1.20 of the criminal
     9  procedure  law, an EMT member of the New York city employees' retirement
    10  system, a deputy sheriff member of the New York city employees'  retire-
    11  ment  system,  a correction officer of the Westchester county correction
    12  department as defined  in  section  eighty-nine-e  of  this  chapter  or
    13  employed  in  Suffolk  county  as a peace officer, as defined in section
    14  eighty-nine-s of this chapter, as added by chapter five hundred  eighty-
    15  eight  of  the laws of nineteen hundred ninety-seven, [of this chapter,]
    16  employed in Suffolk county  as  a  correction  officer,  as  defined  in
    17  section eighty-nine-f of this chapter, or employed in Nassau county as a
    18  correction  officer,  uniformed  correction division personnel, sheriff,
    19  undersheriff or deputy sheriff, as defined in section  eighty-nine-g  of
    20  this chapter, or employed in Nassau county as an ambulance medical tech-
    21  nician,  an  ambulance  medical  technician/supervisor  or  a member who
    22  performs ambulance medical technician related services,  as  defined  in
    23  section  eighty-nine-s  of  this  chapter,  as  amended  by chapter five
    24  hundred seventy-eight of the laws of nineteen hundred ninety-eight,  [of
    25  this  chapter,]  or  employed  in  Nassau  county as a peace officer, as
    26  defined in section eighty-nine-s of this chapter, as  added  by  chapter
    27  five  hundred  ninety-five of the laws of nineteen hundred ninety-seven,
    28  [of this chapter,] or employed in Albany county as a sheriff, undersher-
    29  iff, deputy sheriff, correction officer or  identification  officer,  as
    30  defined  in  section eighty-nine-h of this chapter or is employed in St.
    31  Lawrence county as a sheriff, undersheriff, deputy sheriff or correction
    32  officer, as defined in section  eighty-nine-i  of  this  chapter  or  is
    33  employed in Orleans county as a sheriff, undersheriff, deputy sheriff or
    34  correction  officer, as defined in section eighty-nine-l of this chapter
    35  or is employed in Jefferson county as a  sheriff,  undersheriff,  deputy
    36  sheriff  or  correction  officer, as defined in section eighty-nine-j of
    37  this chapter or is employed in Onondaga county as a deputy  sheriff-jail
    38  division  competitively appointed or as a correction officer, as defined
    39  in section eighty-nine-k of this chapter or  is  employed  in  a  county
    40  which  makes an election under subdivision j of section eighty-nine-p of
    41  this chapter as a sheriff, undersheriff, deputy  sheriff  or  correction
    42  officer  as  defined  in  such  section  eighty-nine-p or is employed in
    43  Broome County as a sheriff, undersheriff, deputy sheriff  or  correction
    44  officer,  as  defined  in  section eighty-nine-m of this chapter or is a
    45  Monroe county deputy sheriff-court security, or deputy sheriff-jailor as
    46  defined in section eighty-nine-n of this chapter, as  added  by  chapter
    47  five  hundred  ninety-seven  of the laws of nineteen hundred ninety-one,
    48  [of this chapter] or is employed in Greene county as a  sheriff,  under-
    49  sheriff,  deputy  sheriff  or  correction officer, as defined in section
    50  eighty-nine-o of this chapter or is a traffic officer with the  town  of
    51  Elmira  as  defined  in  section  eighty-nine-q  of  this  chapter or is
    52  employed by Suffolk county as a  park  police  officer,  as  defined  in
    53  section  eighty-nine-r of this chapter or is a peace officer employed by
    54  a county probation department as defined  in  section  eighty-nine-t  of
    55  this chapter, as added by chapter six hundred three of the laws of nine-
    56  teen  hundred ninety-eight, [of this chapter] or is employed in Rockland

        A. 7306                             4
     1  county as a deputy sheriff-civil as defined in section eighty-nine-v  of
     2  this  chapter  as added by chapter four hundred forty-one of the laws of
     3  two thousand one, or is  employed  in  Rockland  county  as  a  superior
     4  correction  officer  as defined in section eighty-nine-v of this chapter
     5  as added by chapter five hundred fifty-six of the laws of  two  thousand
     6  one  or  is a paramedic employed by the police department in the town of
     7  Tonawanda and retires under the provisions of section  eighty-nine-v  of
     8  this  chapter,  as added by chapter four hundred seventy-two of the laws
     9  of two thousand one, or is  a  county  fire  marshal,  supervising  fire
    10  marshal,  fire  marshal,  assistant  fire  marshal, assistant chief fire
    11  marshal or chief fire marshal  employed  by  the  county  of  Nassau  as
    12  defined  in section eighty-nine-w of this chapter and is in a plan which
    13  permits immediate retirement upon completion of a  specified  period  of
    14  service  without  regard  to age. Except as provided in subdivision c of
    15  section four hundred forty-five-a of  this  article,  subdivision  c  of
    16  section  four  hundred  forty-five-b  of  this article, subdivision c of
    17  section four hundred forty-five-c of  this  article,  subdivision  c  of
    18  section  four  hundred  forty-five-d  of  this article, subdivision c of
    19  section four hundred forty-five-e of  this  article,  subdivision  c  of
    20  section  four  hundred forty-five-f of this article [and], subdivision c
    21  of section four hundred forty-five-h of this article, and subdivision  c
    22  of section four hundred forty-five-j of this article, a member in such a
    23  plan and such an occupation, other than a police officer or investigator
    24  member of the New York city employees' retirement system or a firefight-
    25  er,  shall not be permitted to retire prior to the completion of twenty-
    26  five years of credited service; provided, however, if such a  member  in
    27  such an occupation is in a plan which permits retirement upon completion
    28  of  twenty years of service regardless of age, he or she may retire upon
    29  completion of  twenty  years  of  credited  service  and  prior  to  the
    30  completion  of twenty-five years of service, but in such event the bene-
    31  fit provided from funds other than those based on such  a  member's  own
    32  contributions  shall  not  exceed two per centum of final average salary
    33  per each year of credited service.
    34    § 4. The retirement and social security law is amended by adding a new
    35  section 445-j to read as follows:
    36    § 445-j. Optional twenty-five year improved benefit retirement program
    37  for water supply police members. a. Definitions. The following words and
    38  phrases as used in this section shall have the following meanings unless
    39  a different meaning is plainly required by the context.
    40    1. "Retirement system" shall mean the New York city employees' retire-
    41  ment system.
    42    2. "Water supply police member" shall mean a member of the  retirement
    43  system who is subject to the provisions of this article, who is employed
    44  by  the  city  of New York in a position referred to by paragraph (o) of
    45  subdivision thirty-four of section 1.20 of the criminal procedure law.
    46    3. "Twenty-five year improved benefit retirement program"  shall  mean
    47  all the terms and conditions of this section.
    48    4.  "Starting date of the twenty-five year improved benefit retirement
    49  program" shall mean the effective date of this section, as such date  is
    50  certified pursuant to section forty-one of the legislative law.
    51    5.  "Participant  in  the twenty-five year improved benefit retirement
    52  program" shall mean any water supply police member who, under the appli-
    53  cable provisions of subdivision b of this section, is  entitled  to  the
    54  rights, benefits and privileges and is subject to the obligations of the
    55  twenty-five  year  improved benefit retirement program, as applicable to
    56  him or her.

        A. 7306                             5
     1    6. "Administrative code" shall mean the  administrative  code  of  the
     2  city of New York.
     3    7.  "Accumulated  deductions"  shall  mean  accumulated  deductions as
     4  defined in subdivision eleven of section 13-101  of  the  administrative
     5  code.
     6    8. "Optional retirement provisions" shall mean the right to retire and
     7  receive a retirement allowance under this section upon the completion of
     8  twenty-five years of credited service.
     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 water supply police  member  on  the  starting
    12  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 water supply police
    17  member on the date such application is filed.
    18    2. Subject to the provisions of paragraphs five and six of this subdi-
    19  vision, any person who becomes a water supply police  member  after  the
    20  starting  date  of  the  twenty-five  year  improved  benefit retirement
    21  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 water supply police member, a duly executed
    24  application for such participation with the retirement system,  provided
    25  he or she is such a water supply police member on the date such applica-
    26  tion 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 water supply
    31  police 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 water
    33  supply police position, he or she shall not  be  a  participant  in  the
    34  twenty-five  year  improved  benefit retirement program and shall not be
    35  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 water supply police member
    38  and returns to such service as a water supply police member at  a  later
    39  date, he or she shall again become such a participant on that date.
    40    6.  Notwithstanding  any  other  provision of law to the contrary, any
    41  person who is eligible to become a participant in the  twenty-five  year
    42  improved  benefit retirement program pursuant to paragraph one or two of
    43  this subdivision for the full one hundred eighty day period provided for
    44  in such applicable paragraph  and  who  fails  to  timely  file  a  duly
    45  executed  application for such participation with the retirement system,
    46  shall not thereafter  be  eligible  to  become  a  participant  in  such
    47  program.
    48    c. Service retirement benefits. Notwithstanding any other provision of
    49  law  to  the  contrary,  where  a  participant  in  the twenty-five year
    50  improved benefit retirement program, who is otherwise  qualified  for  a
    51  retirement  allowance pursuant to the optional retirement provisions set
    52  forth in subdivision a of this section, has made and/or paid,  while  he
    53  or  she  is a water supply police member, all additional member contrib-
    54  utions and interest (if any) required by subdivision d of this  section,
    55  then:

        A. 7306                             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, or frac-
    17  tion thereof, beyond such required minimum period of  service  equal  to
    18  two percent of his or her final average salary; and
    19    4.  the maximum retirement benefit computed without optional modifica-
    20  tion payable to that participant upon his or her retirement for  service
    21  as such a participant shall equal that payable upon completion of thirty
    22  years of service.
    23    d.  Additional  member  contributions.  1.  In  addition to the member
    24  contributions required pursuant to section 13-125 or section  13-162  of
    25  the  administrative  code,  each  participant  in  the  twenty-five year
    26  improved benefit retirement program shall  contribute,  subject  to  the
    27  applicable provisions of section 13-125.2 of the administrative code, an
    28  additional  six  percent  of his or her compensation earned from (i) all
    29  credited service, as a participant  in  the  twenty-five  year  improved
    30  benefit  retirement  program, rendered on and after the starting date of
    31  the improved benefit retirement program, and (ii) all  credited  service
    32  after such person ceases to be a participant, but before he or she again
    33  becomes  a  participant  pursuant  to paragraph five of subdivision b of
    34  this section. A participant in the  twenty-five  year  improved  benefit
    35  retirement  program  shall  contribute  additional  member contributions
    36  until the later of (i) the date as of which he or  she  is  eligible  to
    37  retire  with twenty-five years of credited service under such retirement
    38  program, or (ii) the first anniversary of the starting date of the twen-
    39  ty-five  year  improved  benefit  retirement  program.  The   additional
    40  contributions  required by this paragraph shall be in lieu of additional
    41  member contributions required by subdivision d of section  four  hundred
    42  forty-five-d of this article, as added by chapter ninety-six of the laws
    43  of  nineteen  hundred  ninety-five,  and  no  member  paying  additional
    44  contributions pursuant to this section shall be required  to  pay  addi-
    45  tional  contributions  pursuant  to  such  subdivision d of section four
    46  hundred forty-five-d of this article.
    47    2. Commencing with the first full payroll  period  after  each  person
    48  becomes  a  participant in the twenty-five year improved benefit retire-
    49  ment program, additional member contributions at the rate  specified  in
    50  paragraph  one  of  this  subdivision  shall be deducted, subject to the
    51  applicable provisions of section 13-125.2 of  the  administrative  code,
    52  from  the  compensation of such participant on each and every payroll of
    53  such participant for each and every payroll period for which he  or  she
    54  is such a participant.
    55    3.  (i)  Subject  to the provisions of subparagraph (ii) of this para-
    56  graph, where any additional member contributions required  by  paragraph

        A. 7306                             7
     1  one  of this subdivision are not paid by deductions from a participant's
     2  compensation pursuant to paragraph two of this subdivision:
     3    (A)  that  participant shall be charged with a contribution deficiency
     4  consisting of such  unpaid  amounts,  together  with  interest  thereon,
     5  compounded annually; and
     6    (B)  such  interest  on  each amount of undeducted contributions shall
     7  accrue from the end of the payroll period for which  such  amount  would
     8  have been deducted from compensation if he or she had been a participant
     9  at  the  beginning  of  that payroll period and such deductions had been
    10  required for such payroll period  until  such  amount  is  paid  to  the
    11  retirement system; and
    12    (C)  (1)interest  on  each  such amount included in such participant's
    13  contribution deficiency pursuant to this subparagraph  shall  be  calcu-
    14  lated  as if such additional member contributions never had been paid by
    15  such participant, and such interest shall accrue from  the  end  of  the
    16  payroll  period  to  which  an amount of such additional member contrib-
    17  utions is attributable, compounded annually, until such amount  is  paid
    18  to the retirement system.
    19    (2)  the rate of interest to be applied to each such amount during the
    20  period for which interest accrues on that amount shall be equal  to  the
    21  rate  or  rates  of interest required by law to be used during that same
    22  period to credit interest on the accumulated  deductions  of  retirement
    23  system members.
    24    (ii)  Except  as  provided in subparagraph (iii) of this paragraph, no
    25  interest shall be due on any unpaid additional contributions  which  are
    26  not  attributable  to  the period prior to the first full payroll period
    27  referred to in paragraph two of this subdivision.
    28    (iii) Should any person who,  pursuant  to  paragraph  seven  of  this
    29  subdivision,  has withdrawn any additional member contributions (and any
    30  interest paid thereon) again become a  participant  in  the  twenty-five
    31  year  improved  benefit retirement program pursuant to paragraph five of
    32  subdivision b of this section, an appropriate amount shall  be  included
    33  in such participant's contribution deficiency (including interest there-
    34  on as calculated pursuant to subclause two of clause (C) of subparagraph
    35  (i)  of  this  paragraph) for any credited service with respect to which
    36  such  person  received  a  refund  of  additional  member  contributions
    37  (including  any  amount  of  an  unpaid loan balance deemed to have been
    38  returned to such person pursuant to paragraph  seven  of  this  subdivi-
    39  sion), as if such additional member contributions never had been paid.
    40    4. The board of trustees of the retirement system may, consistent with
    41  the  provisions  of  this  subdivision,  promulgate  regulations for the
    42  payment of the additional member contributions required by this subdivi-
    43  sion, and any interest thereon, by a participant in the twenty-five year
    44  improved benefit retirement program (including  the  deduction  of  such
    45  contributions, and any interest thereon, from his or her compensation).
    46    5.  Where  a participant who is otherwise eligible for service retire-
    47  ment pursuant to subdivision c of this section did  not,  prior  to  the
    48  effective  date  of  retirement, pay the entire amount of a contribution
    49  deficiency chargeable to him or her pursuant to paragraph three of  this
    50  subdivision,  or  repay  the entire amount of a loan of his or her addi-
    51  tional member contributions pursuant to paragraph eight of this subdivi-
    52  sion (including accrued interest on such loan), that participant, never-
    53  theless, shall be eligible to retire pursuant to subdivision c  of  this
    54  section,  provided, however, that where such participant is not entitled
    55  to a refund of additional member  contributions  pursuant  to  paragraph
    56  seven of this subdivision, such participant's service retirement benefit

        A. 7306                             8
     1  calculated  pursuant  to  the  applicable provisions of subdivision c of
     2  this section shall be reduced by a life annuity (calculated  in  accord-
     3  ance  with  the method set forth in subdivision i of section six hundred
     4  thirteen-b of this chapter) which is actuarially equivalent to:
     5    (i)  the  amount  of  any unpaid contribution deficiency chargeable to
     6  such member pursuant to paragraph three of this subdivision; plus
     7    (ii) the amount of any unpaid balance of a loan of his  or  her  addi-
     8  tional member contributions pursuant to paragraph eight of this subdivi-
     9  sion (including accrued interest on such loan).
    10    6.  Subject  to  the provisions of paragraph five of this subdivision,
    11  where a participant has not paid in  full  any  contribution  deficiency
    12  chargeable  to  him  or her pursuant to paragraph three of this subdivi-
    13  sion, and a benefit, other than  a  refund  of  a  member's  accumulated
    14  deductions  or  a  refund of additional member contributions pursuant to
    15  paragraph seven of this subdivision, becomes payable by  the  retirement
    16  system  to  the  participant  or to his or her designated beneficiary or
    17  estate, the actuarial equivalent of any  such  unpaid  amount  shall  be
    18  deducted from the benefit otherwise payable.
    19    7.  (i)  All additional member contributions required by this subdivi-
    20  sion (and any interest thereon) which are  received  by  the  retirement
    21  system  shall  be paid into its contingent reserve fund and shall be the
    22  property of the retirement system. Such additional member  contributions
    23  (and  any  interest  thereon)  shall not for any purpose be deemed to be
    24  member contributions or  accumulated  deductions  of  a  member  of  the
    25  retirement system under section 13-125 or section 13-162 of the adminis-
    26  trative  code  while  he or she is a participant in the twenty-five year
    27  improved benefit retirement program or otherwise.
    28    (ii) Should a participant in the  twenty-five  year  improved  benefit
    29  retirement  program,  who  has rendered less than five years of credited
    30  service cease to hold a position as a water supply police member for any
    31  reason whatsoever, his or her  accumulated  additional  member  contrib-
    32  utions  made  pursuant  to  this subdivision (together with any interest
    33  thereon paid to the retirement system) which  remain  credited  to  such
    34  participant's  account may be withdrawn by him or her pursuant to proce-
    35  dures promulgated in regulations of the board of trustees of the retire-
    36  ment system, together with interest thereon  at  the  rate  of  interest
    37  required  by  law  to  be  used  to  credit  interest on the accumulated
    38  deductions of retirement system members compounded annually.
    39    (iii) Notwithstanding any other provision of law to the contrary,  (A)
    40  no  person shall be permitted to withdraw from the retirement system any
    41  additional member contributions paid pursuant to this subdivision or any
    42  interest paid thereon, except pursuant to and  in  accordance  with  the
    43  preceding  subparagraphs  of this paragraph; and (B) no person, while he
    44  or she is a participant in the twenty-five year improved benefit retire-
    45  ment program, shall be permitted to withdraw any such additional  member
    46  contributions  or  any  interest  paid  thereon  pursuant  to any of the
    47  preceding subparagraphs of this paragraph or otherwise.
    48    8. A participant in the twenty-five year improved  benefit  retirement
    49  program  shall  be permitted to borrow from his or her additional member
    50  contributions, including any interest paid thereon, which  are  credited
    51  to the additional contributions account established for such participant
    52  in  the contingent reserve fund of the retirement system.  The borrowing
    53  from such additional member contributions  pursuant  to  this  paragraph
    54  shall be governed by the same rights, privileges, obligations and proce-
    55  dures  set forth in section six hundred thirteen-b of this chapter which
    56  govern the borrowing by members subject to article fifteen of this chap-

        A. 7306                             9
     1  ter of member contributions made pursuant to section six  hundred  thir-
     2  teen  of  this  chapter.  The board of trustees of the retirement system
     3  may,  consistent  with  the  provisions  of  this  subdivision  and  the
     4  provisions  of  section  six  hundred thirteen-b of this chapter as made
     5  applicable to this subdivision,  promulgate  regulations  governing  the
     6  borrowing of such additional member contributions.
     7    9.  Wherever  a  person  has an unpaid balance of a loan of his or her
     8  additional member contributions pursuant  to  paragraph  eight  of  this
     9  subdivision at the time he or she becomes entitled to a refund of his or
    10  her  additional  member  contributions  pursuant to subparagraph (ii) of
    11  paragraph seven of this subdivision, the  amount  of  such  unpaid  loan
    12  balance  (including  accrued  interest)  shall  be  deemed  to have been
    13  returned to such member, and the refund of such additional contributions
    14  shall be the net amount of such contributions,  together  with  interest
    15  thereon in accordance with the provisions of such subparagraph.
    16    10.  Notwithstanding  any  other provision of law to the contrary, the
    17  provisions of section one hundred thirty-eight-b of this  chapter  shall
    18  not  be  applicable  to  the  additional  member contributions which are
    19  required by this subdivision.
    20    11. Notwithstanding any other provision of law to  the  contrary,  the
    21  additional  member  contributions which are required by this subdivision
    22  shall not be reduced under any program for increased-take-home-pay.
    23    § 5. The retirement and social security law is amended by adding a new
    24  section 604-j to read as follows:
    25    § 604-j. Twenty-five year retirement program for water  supply  police
    26  members.  a.    Definitions.  The following words and phrases as used in
    27  this section shall have the following meanings unless a different  mean-
    28  ing is plainly required by the context.
    29    1.  "Water supply police member" shall mean a member of the retirement
    30  system who is employed by the city of New York in a position referred to
    31  by paragraph (o) of subdivision thirty-four of section 1.20 of the crim-
    32  inal procedure law.
    33    2. "Twenty-five year retirement program" shall mean all the terms  and
    34  conditions of this section.
    35    3.  "Starting  date  of the twenty-five year retirement program" shall
    36  mean the effective date of this  section,  as  such  date  is  certified
    37  pursuant to section forty-one of the legislative law.
    38    4. "Participant in the twenty-five year retirement program" shall mean
    39  any  water  supply police member who, under the applicable provisions of
    40  subdivision b of this section, is entitled to the rights,  benefits  and
    41  privileges  and  is  subject  to the obligations of the twenty-five year
    42  retirement program, as applicable to him or her.
    43    5. "Discontinued member" shall mean a participant in  the  twenty-five
    44  year  retirement  program who, while he or she was a water supply police
    45  member, discontinued service as such a member  and  has  a  right  to  a
    46  deferred vested benefit under subdivision d of this section.
    47    6.  "Administrative  code"  shall  mean the administrative code of the
    48  city of New York.
    49    b. Participation in twenty-five year retirement program. 1.    Subject
    50  to  the  provisions of paragraphs six and seven of this subdivision, any
    51  person who is a water supply police member on the starting date  of  the
    52  twenty-five  year  retirement  program  and  who, as such a water supply
    53  police member or otherwise last became subject to the provisions of this
    54  article prior to such starting date, may elect to become  a  participant
    55  in the twenty-five year retirement program by filing, within one hundred
    56  eighty  days  after the starting date of the twenty-five year retirement

        A. 7306                            10
     1  program, a duly executed application for  such  participation  with  the
     2  retirement  system  of which such person is a member, provided he or she
     3  is such a water supply police member on the  date  such  application  is
     4  filed.
     5    2.  Subject  to  the  provisions  of  paragraphs six and seven of this
     6  subdivision, any person who becomes a water supply police  member  after
     7  the starting date of the twenty-five year retirement program and who, as
     8  such  a  water supply police member or otherwise, last became subject to
     9  the provisions of this article prior to such starting date, may elect to
    10  become a participant in  the  twenty-five  year  retirement  program  by
    11  filing,  within  one  hundred  eighty  days  after becoming such a water
    12  supply police member, a duly executed application for such participation
    13  with the retirement system for which such person is a  member,  provided
    14  he or she is such a water supply police member on the date such applica-
    15  tion is filed.
    16    3. Any election to be a participant in the twenty-five year retirement
    17  program shall be irrevocable.
    18    4.  Each  water  supply  police  member  who  becomes  subject  to the
    19  provisions of this article on or after the starting date of the  twenty-
    20  five  year  retirement program shall become a participant in the twenty-
    21  five year retirement program on the date he or she becomes such a  water
    22  supply  police member. Provided, however, a person subject to this para-
    23  graph who has exceeded age thirty upon employment as such a member shall
    24  be exempt from participation in the twenty-five year retirement  program
    25  if  such person elects not to participate by filing a duly executed form
    26  with the retirement system within one hundred eighty  days  of  becoming
    27  such a member.
    28    5.  Where  any  participant in the twenty-five year retirement program
    29  shall cease to be employed by the city of New York  as  a  water  supply
    30  police  member,  he  or  she  shall  cease to be such a participant and,
    31  during any period in which such person is not so  employed,  he  or  she
    32  shall  not  be  a participant in the twenty-five year retirement program
    33  and shall not be eligible for the benefits  of  subdivision  c  of  this
    34  section.
    35    6.  Where  any  participant in the twenty-five year retirement program
    36  terminates service as a water supply police member and returns  to  such
    37  service as a water supply police member at a later date, he or she shall
    38  again become such a participant on that date.
    39    7.  Notwithstanding  any  other  provision of law to the contrary, any
    40  person who is eligible to elect to become a participant in  the  twenty-
    41  five  year  retirement  program pursuant to paragraph one or two of this
    42  subdivision for the full one hundred eighty day period provided  for  in
    43  such  applicable  paragraph and who fails to timely file a duly executed
    44  application for such participation with the retirement system, shall not
    45  thereafter be eligible to become a participant in such program.
    46    c. Service retirement benefits. 1. A participant  in  the  twenty-five
    47  year retirement program:
    48    (i)  who  has completed twenty-five or more years of credited service;
    49  and
    50    (ii) who has paid, before the effective date of retirement, all  addi-
    51  tional  member  contributions and interest (if any) required by subdivi-
    52  sion e of this section; and
    53    (iii) who files with the retirement system of which he  or  she  is  a
    54  member an application for service retirement setting forth at that time,
    55  not  less than thirty days subsequent to the execution and filing there-
    56  of, he or she desires to be retired; and

        A. 7306                            11
     1    (iv) who shall be a participant in  the  twenty-five  year  retirement
     2  program  at  the  time  so specified for his or her retirement; shall be
     3  retired pursuant to the  provisions  of  this  section  affording  early
     4  service retirement.
     5    2. (i) Notwithstanding any other provision of law to the contrary, and
     6  subject  to  the  provisions  of  paragraph six of subdivision e of this
     7  section, the early service retirement benefit for  participants  in  the
     8  twenty-five year retirement program who retire pursuant to paragraph one
     9  of this subdivision shall be a retirement allowance consisting of:
    10    (A)  an  amount, on account of the required minimum period of service,
    11  equal to fifty percent of his or her final average salary; plus
    12    (B) an amount on account of credited  service,  or  fraction  thereof,
    13  beyond  such  required minimum period of service equal to two percent of
    14  his or her final salary;
    15    (ii)  The  maximum  retirement  allowance  computed  without  optional
    16  modification  payable  pursuant  to  subparagraph  (i) of this paragraph
    17  shall equal that payable upon completion of thirty years of service.
    18    d. Vesting. 1.  A  participant  in  the  twenty-five  year  retirement
    19  program:
    20    (i)  who  discontinues  service  as  such a participant, other than by
    21  death or retirement; and
    22    (ii) who prior to such discontinuance, completed five  but  less  than
    23  twenty-five years of credited service; and
    24    (iii) who, subject to the provisions of paragraph seven of subdivision
    25  e  of  this  section,  has paid, prior to such discontinuance, all addi-
    26  tional member contributions and interest (if any) required  by  subdivi-
    27  sion e of this section; and
    28    (iv)  who does not withdraw in whole or in part his or her accumulated
    29  member contributions pursuant to section six hundred  thirteen  of  this
    30  article unless such participant thereafter returns to public service and
    31  repays  the  amounts  so  withdrawn, together with interest, pursuant to
    32  such section six hundred  thirteen;  shall  be  entitled  to  receive  a
    33  deferred vested benefit as provided in this subdivision.
    34    2. (i) Upon such discontinuance under the conditions and in compliance
    35  with  the provisions of paragraph one of this subdivision, such deferred
    36  vested benefit shall vest automatically.
    37    (ii) Such vested benefit shall become payable on the earliest date  on
    38  which  such  discontinued  member could have retired for service if such
    39  discontinuance had not occurred.
    40    3. Subject to the provisions of paragraph seven of  subdivision  e  of
    41  this  section, such deferred vested benefit shall be a retirement allow-
    42  ance consisting of an amount equal to two percent of  such  discontinued
    43  member's  final  average  salary,  multiplied  by the number of years of
    44  credited service.
    45    e. Additional member contributions.  1.  In  addition  to  the  member
    46  contributions  required by section six hundred thirteen of this article,
    47  each participant  in  the  twenty-five  year  retirement  program  shall
    48  contribute  to  the  retirement  system  of  which he or she is a member
    49  (subject to the applicable provisions of subdivision d  of  section  six
    50  hundred  thirteen  of  this article) an additional six percent of his or
    51  her compensation earned from (i) all credited service, as a  participant
    52  in  the  twenty-five  year  retirement program, rendered on or after the
    53  starting date of the twenty-five year retirement program, and  (ii)  all
    54  credited  service  after  such  person  ceases  to be a participant, but
    55  before he or she again becomes a participant pursuant to  paragraph  six
    56  of  subdivision b of this section. The additional contributions required

        A. 7306                            12
     1  by this subdivision shall be in lieu of additional member  contributions
     2  required by subdivision d of section six hundred four-c of this article,
     3  as  added  by chapter ninety-six of the laws of nineteen hundred ninety-
     4  five,  and no member making contributions pursuant to this section shall
     5  be required to make contributions pursuant  to  such  subdivision  d  of
     6  section six hundred four-c of this article.
     7    2.  A  participant  in  the  twenty-five year retirement program shall
     8  contribute additional member contributions until the later  of  (i)  the
     9  first  anniversary  of the starting date of the twenty-five year retire-
    10  ment program, or (ii) the date on which he or she completes thirty years
    11  of credited service as a water supply police member.
    12    3. Commencing with the first full payroll  period  after  each  person
    13  becomes  a participant in the twenty-five year retirement program, addi-
    14  tional member contributions at the rate specified in  paragraph  one  of
    15  this subdivision shall be deducted (subject to the applicable provisions
    16  of  subdivision  d of section six hundred thirteen of this article) from
    17  the compensation of such participant on each and every payroll  of  such
    18  participant  for  each  and  every payroll period for which he or she is
    19  such a participant.
    20    4. (i) Each participant in the  twenty-five  year  retirement  program
    21  shall  be charged with a contribution deficiency consisting of the total
    22  amounts of additional member contributions such person  is  required  to
    23  make  pursuant  to  paragraphs one and two of this subdivision which are
    24  not deducted from his or her compensation pursuant to paragraph three of
    25  this subdivision, if any, together  with  interest  thereon,  compounded
    26  annually,  and  computed  in  accordance with the provisions of subpara-
    27  graphs (ii) and (iii) of this paragraph.
    28    (ii) (A) The interest required to be paid on each such  amount  speci-
    29  fied  in subparagraph (i) of this paragraph shall accrue from the end of
    30  the payroll period for which such amount would have been  deducted  from
    31  compensation  if  he  or  she had been a participant at the beginning of
    32  that payroll period and  such  deduction  had  been  required  for  such
    33  payroll period, until such amount is paid to the retirement system.
    34    (B)  The rate of interest to be applied to each such amount during the
    35  period for which interest accrues on that amount shall be equal  to  the
    36  rate  or  rates  of interest required by law to be used during that same
    37  period to credit interest on the accumulated  deductions  of  retirement
    38  system members.
    39    (iii)  Except as otherwise provided in paragraph five of this subdivi-
    40  sion, no interest shall be due on any unpaid additional member  contrib-
    41  utions  which  are  not attributable to a period prior to the first full
    42  payroll period referred to in paragraph three of this subdivision.
    43    5. (i) Should any person who, pursuant to subparagraph (ii)  of  para-
    44  graph ten of this subdivision, has received a refund of his or her addi-
    45  tional member contributions including any interest paid on such contrib-
    46  utions,  again  become  a participant in the twenty-five year retirement
    47  program pursuant to paragraph six of subdivision b of this  section,  an
    48  appropriate  amount shall be included in such participant's contribution
    49  deficiency (including interest thereon as calculated pursuant to subpar-
    50  agraph (ii) of this paragraph) for any credited service for  which  such
    51  person  received  a  refund  of  such  additional  member  contributions
    52  (including any amount of an unpaid loan  balance  deemed  to  have  been
    53  returned  to  such  person pursuant to paragraph twelve of this subdivi-
    54  sion), as if such additional member contributions never had been paid.
    55    (ii) (A) Interest on a participant's additional  member  contributions
    56  included  in  such  participant's  contribution  deficiency  pursuant to

        A. 7306                            13
     1  subparagraph (i) of this paragraph shall be calculated as if such  addi-
     2  tional member contributions had never been paid by such participant, and
     3  such  interest  shall accrue from the end of the payroll period to which
     4  an amount of such additional member contributions is attributable, until
     5  such amount is paid to the retirement system.
     6    (B)  The rate of interest to be applied to each such amount during the
     7  period for which interest accrues on that amount shall be  five  percent
     8  per annum, compounded annually.
     9    6.  Where  a participant who is otherwise eligible for service retire-
    10  ment pursuant to subdivision c of this section did  not,  prior  to  the
    11  effective  date  of  retirement, pay the entire amount of a contribution
    12  deficiency chargeable to him or her pursuant to paragraphs four and five
    13  of this subdivision, or repay the entire amount of a loan of his or  her
    14  additional  member  contributions  pursuant  to paragraph eleven of this
    15  subdivision (including accrued interest on such loan), that participant,
    16  nevertheless, shall be eligible to retire pursuant to subdivision  c  of
    17  this section, provided, however, that such participant's service retire-
    18  ment  benefit calculated pursuant to paragraph two of such subdivision c
    19  shall be reduced by a life annuity (calculated in  accordance  with  the
    20  method  set  forth in subdivision i of section six hundred thirteen-b of
    21  this article) which is actuarially equivalent to:
    22    (i) the amount of any unpaid  contribution  deficiency  chargeable  to
    23  such  member  pursuant  to paragraphs four and five of this subdivision;
    24  plus
    25    (ii) the amount of any unpaid balance of a loan of his  or  her  addi-
    26  tional  member contributions pursuant to paragraph eleven of this subdi-
    27  vision (including accrued interest on such loan).
    28    7. Where a participant who is otherwise eligible for a vested right to
    29  a deferred benefit pursuant to subdivision d of this  section  did  not,
    30  prior to the date of discontinuance of service, pay the entire amount of
    31  a  contribution  deficiency  chargeable  to him or her pursuant to para-
    32  graphs four and five of this subdivision, or repay the entire amount  of
    33  a  loan  of his or her additional member contributions pursuant to para-
    34  graph eleven of this subdivision (including  accrued  interest  on  such
    35  loan),  that  participant,  nevertheless, shall be eligible for a vested
    36  right to a deferred benefit pursuant to subdivision d of  this  section,
    37  provided,  however, that the deferred vested benefit calculated pursuant
    38  to paragraph three of such subdivision d shall  be  reduced  by  a  life
    39  annuity  (calculated in accordance with the method set forth in subdivi-
    40  sion i of section six hundred thirteen-b of this article) which is actu-
    41  arially equivalent to:
    42    (i) the amount of any unpaid  contribution  deficiency  chargeable  to
    43  such  member  pursuant  to paragraphs four and five of this subdivision;
    44  plus
    45    (ii) the amount of any unpaid balance of a loan of his  or  her  addi-
    46  tional  member contributions pursuant to paragraph eleven of this subdi-
    47  vision (including accrued interest on such loan).
    48    8. The head of a retirement system which includes participants in  the
    49  twenty-five  year  retirement  program in its membership may, consistent
    50  with the provisions of this subdivision, promulgate regulations for  the
    51  payment of such additional member contributions, and any interest there-
    52  on, by such participants (including the deduction of such contributions,
    53  and any interest thereon, from the participant's compensation).
    54    9.  Subject  to  the  provisions  of  paragraphs six and seven of this
    55  subdivision, where a participant has not paid in full  any  contribution
    56  deficiency chargeable to him or her pursuant to paragraphs four and five

        A. 7306                            14
     1  of  this  subdivision,  and  a  benefit,  other  than a refund of member
     2  contributions pursuant to section six hundred thirteen of  this  article
     3  or  a refund of additional member contributions pursuant to subparagraph
     4  (ii)  of  paragraph  ten of this subdivision, becomes payable under this
     5  article to the participant or to his or her  designated  beneficiary  or
     6  estate,  the  actuarial  equivalent  of  any such unpaid amount shall be
     7  deducted from the benefit otherwise payable.
     8    10. (i) Such additional member contributions (and any interest  there-
     9  on)  shall  be  paid  into the contingent reserve fund of the retirement
    10  system of which the participant is  a  member  and  shall  not  for  any
    11  purpose  be  deemed  to  be member contributions or accumulated contrib-
    12  utions of a member under section six hundred thirteen of this article or
    13  otherwise while he or she is  a  participant  in  the  twenty-five  year
    14  retirement program or otherwise.
    15    (ii)  Should  a participant in the twenty-five year retirement program
    16  who has rendered less than five years of credited service cease to  hold
    17  a  position  as  a water supply police member for any reason whatsoever,
    18  his or her accumulated additional member contributions made pursuant  to
    19  this subdivision (together with any interest thereon paid to the retire-
    20  ment  system)  may  be  withdrawn  by  him or her pursuant to procedures
    21  promulgated in regulations of the board of trustees  of  the  retirement
    22  system,  together  with interest thereon at the rate of five percent per
    23  annum, compounded annually.
    24    (iii) Notwithstanding any other provision of law to the contrary,  (A)
    25  no  person shall be permitted to withdraw from the retirement system any
    26  additional member contributions paid pursuant to this subdivision or any
    27  interest paid thereon, except pursuant to and  in  accordance  with  the
    28  preceding  subparagraphs  of this paragraph; and (B) no person, while he
    29  or she is a participant in  the  twenty-five  year  retirement  program,
    30  shall  be permitted to withdraw any such additional member contributions
    31  or any interest paid thereon pursuant to any of the  preceding  subpara-
    32  graphs of this paragraph or otherwise.
    33    11.  A participant in the twenty-five year retirement program shall be
    34  permitted to borrow from his  or  her  additional  member  contributions
    35  (including  any  interest  paid thereon) which are credited to the addi-
    36  tional contributions account established for  such  participant  in  the
    37  contingent  reserve  fund  of the retirement system.  The borrowing from
    38  such additional member contributions pursuant to this paragraph shall be
    39  governed by the rights, privileges, obligations and procedures set forth
    40  in section six hundred thirteen-b  of  this  article  which  govern  the
    41  borrowing  of  member contributions made pursuant to section six hundred
    42  thirteen of this article. The board of trustees of the retirement system
    43  may,  consistent  with  the  provisions  of  this  subdivision  and  the
    44  provisions  of  section  six  hundred thirteen-b of this article as made
    45  applicable to this subdivision,  promulgate  regulations  governing  the
    46  borrowing of such additional member contributions.
    47    12.  Whenever  a  person has an unpaid balance of a loan of his or her
    48  additional member contributions pursuant to  paragraph  eleven  of  this
    49  subdivision at the time he or she becomes entitled to a refund of his or
    50  her  additional  member  contributions  pursuant to subparagraph (ii) of
    51  paragraph ten of this  subdivision,  the  amount  of  such  unpaid  loan
    52  balance  (including  accrued  interest)  shall  be  deemed  to have been
    53  returned to such member, and the refund of such additional contributions
    54  shall be the net amount of such contributions,  together  with  interest
    55  thereon in accordance with the provisions of such subparagraph (ii).

        A. 7306                            15
     1    § 6. Subdivision d of section 613 of the retirement and social securi-
     2  ty law is amended by adding a new paragraph 12 to read as follows:
     3    12.  (i)  The  city  of  New York shall, in the case of a water supply
     4  police member (as defined in paragraph one of subdivision a  of  section
     5  six  hundred four-j of this article) who is a participant in the twenty-
     6  five year retirement program (as defined in paragraph four  of  subdivi-
     7  sion  a  of  such  section  six  hundred four-j), pick up and pay to the
     8  retirement system of which such participant is a member, all  additional
     9  member  contributions  which  otherwise would be required to be deducted
    10  from such member's compensation pursuant to paragraphs one  and  two  of
    11  subdivision  e  of  such  section  six hundred four-j (not including any
    12  additional member contributions due for any period prior  to  the  first
    13  full  payroll  period referred to in paragraph three of such subdivision
    14  e), and shall effect such pick up on each  and  every  payroll  of  such
    15  participant for each and every payroll period with respect to which such
    16  paragraph three would otherwise require such deductions.
    17    (ii)  An amount equal to the amount of additional contributions picked
    18  up pursuant to this paragraph shall be deducted by  such  employer  from
    19  the  compensation  of  such member (as such compensation would be in the
    20  absence of a pick up program applicable to him  or  her  hereunder)  and
    21  shall not be paid to such member.
    22    (iii)  The  additional member contributions picked up pursuant to this
    23  paragraph for any such member shall be paid by such employer in lieu  of
    24  an equal amount of additional member contributions otherwise required to
    25  be  paid by such member under the applicable provisions of subdivision e
    26  of section six hundred four-j of this article, and shall be deemed to be
    27  and treated as employer contributions pursuant to section 414(h) of  the
    28  Internal Revenue Code.
    29    (iv)  For  the  purpose  of  determining the retirement system rights,
    30  benefits and privileges of any member whose additional  member  contrib-
    31  utions  are  picked  up pursuant to this paragraph, such picked up addi-
    32  tional member contributions shall be deemed to be and treated as part of
    33  such member's  additional  member  contributions  under  the  applicable
    34  provisions  of subdivision e of section six hundred four-j of this arti-
    35  cle.
    36    (v) With the exception of federal income tax treatment, the additional
    37  member contributions picked up pursuant to paragraph (i) of this  subdi-
    38  vision shall for all other purposes, including computation of retirement
    39  benefits and contributions by employers and employees, be deemed employ-
    40  ee  salary.  Nothing contained in this subdivision shall be construed as
    41  superseding the provisions of section four hundred  thirty-one  of  this
    42  chapter, or any similar provision of law which limits the salary base of
    43  computing retirement benefits payable by a public retirement system.
    44    §  7.  Section  13-125.2 of the administrative code of the city of New
    45  York is amended by adding a new subdivision a-9 to read as follows:
    46    a-9. Notwithstanding any other provision of law to the contrary, on or
    47  after the starting date for pick up, the employer responsible  for  pick
    48  up  shall,  in  the  case of a water supply police member (as defined in
    49  paragraph two of subdivision a of section four hundred  forty-five-j  of
    50  the  retirement  and  social  security  law) who is a participant in the
    51  twenty-five year improved benefit  retirement  program  (as  defined  in
    52  paragraph  three  of  such  subdivision a of section four hundred forty-
    53  five-j), pick up and pay to the retirement system all additional  member
    54  contributions which otherwise would be required to be deducted from such
    55  member's  compensation  pursuant  to  subdivision d of such section four
    56  hundred forty-five-j, and shall effect such pick up on  each  and  every

        A. 7306                            16
     1  payroll  of  such  participant  for  each  and every payroll period with
     2  respect to  which  such  subdivision  d  would  otherwise  require  such
     3  deductions.
     4    §  8.  Subparagraph  (ii)  of  paragraph 1 of subdivision c of section
     5  13-125.2 of the administrative code of the city of New York, as  amended
     6  by chapter 682 of the laws of 2003, is amended to read as follows:
     7    (ii)  the  determination of the amount of such member's Tier I or Tier
     8  II nonuniformed-force member contributions eligible for pick up  by  the
     9  employer  or  additional  member  contributions required to be picked up
    10  pursuant to subdivision a-one, subdivision a-two,  subdivision  a-three,
    11  subdivision  a-four,  subdivision a-five, subdivision a-six, subdivision
    12  a-seven  [or],  subdivision  a-eight,  or  subdivision  a-nine  of  this
    13  section; and
    14    §  9.  Subdivision d of section 13-125.2 of the administrative code of
    15  the city of New York is amended by adding a new paragraph 2-h to read as
    16  follows:
    17    (2-h) For the purpose of determining  the  retirement  system  rights,
    18  benefits  and privileges of any member who is a participant in the twen-
    19  ty-five year improved benefit retirement program (as  defined  in  para-
    20  graph three of subdivision a of section four hundred forty-five-j of the
    21  retirement and social security law), the additional member contributions
    22  of  such  participant  picked  up pursuant to subdivision a-nine of this
    23  section shall be deemed to be and treated as a  part  of  such  member's
    24  additional member contributions under subdivision d of such section four
    25  hundred forty-five-j.
    26    § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis-
    27  trative  code  of the city of New York, as amended by chapter 682 of the
    28  laws of 2003, is amended to read as follows:
    29    (3) Interest on contributions picked up for any  Tier  I  or  Tier  II
    30  non-uniformed-force  member  pursuant  to this section (other than addi-
    31  tional member contributions picked up  pursuant  to  subdivision  a-one,
    32  subdivision  a-two, subdivision a-three, subdivision a-four, subdivision
    33  a-five,  subdivision  a-six,  subdivision  a-seven   [or],   subdivision
    34  a-eight, or subdivision a-nine of this section) shall accrue in favor of
    35  the member and be payable to the retirement system at the same rate, for
    36  the  same  time  periods,  in the same manner and under the same circum-
    37  stances as interest would be required to accrue in favor of  the  member
    38  and  be  payable  to the retirement system on such contributions if they
    39  were made by such member in the absence of a pick up program  applicable
    40  to such member under the provisions of this section.
    41    §  11. Subdivision a of section 603 of the retirement and social secu-
    42  rity law, as amended by chapter 18 of the laws of 2012,  is  amended  to
    43  read as follows:
    44    a.  The  service  retirement  benefit specified in section six hundred
    45  four of this article shall be payable to members who have met the  mini-
    46  mum  service  requirements  upon retirement and attainment of age sixty-
    47  two, other than members who are eligible for  early  service  retirement
    48  pursuant to subdivision c of section six hundred four-b of this article,
    49  subdivision c of section six hundred four-c of this article, subdivision
    50  d  of  section  six  hundred  four-d  of  this article, subdivision c of
    51  section six hundred four-e of this article, subdivision c of section six
    52  hundred four-f of this article, subdivision c  of  section  six  hundred
    53  four-g  of  this article, subdivision c of section six hundred four-h of
    54  this article [or], subdivision c of section six hundred four-i  of  this
    55  article, or subdivision c of section six hundred four-j of this article,
    56  provided,  however, a member of a teachers' retirement system or the New

        A. 7306                            17
     1  York state and local employees' retirement system who first  joins  such
     2  system  before  January  first,  two  thousand  ten or a member who is a
     3  uniformed court officer or peace officer employed by the  unified  court
     4  system  who  first  becomes  a  member  of  the New York state and local
     5  employees' retirement system before April first, two thousand twelve may
     6  retire without reduction of his or her retirement benefit  upon  attain-
     7  ment  of  at  least  fifty-five years of age and completion of thirty or
     8  more years of service, provided, however, that a uniformed court officer
     9  or peace officer employed by the unified court system who first  becomes
    10  a member of the New York state and local employees' retirement system on
    11  or  after  January first, two thousand ten and retires without reduction
    12  of his or her retirement benefit upon attainment of at least  fifty-five
    13  years  of age and completion of thirty or more years of service pursuant
    14  to this section shall be  required  to  make  the  member  contributions
    15  required  by subdivision f of section six hundred thirteen of this arti-
    16  cle for all years of credited and creditable service,  provided  further
    17  that  the [the] preceding provisions of this subdivision shall not apply
    18  to a New York city revised plan member.
    19    § 12. Nothing contained in sections six and eleven of this  act  shall
    20  be  construed to create any contractual right with respect to members to
    21  whom such sections apply.  The provisions of such sections are  intended
    22  to  afford  members  the advantages of certain benefits contained in the
    23  Internal Revenue Code, and  the  effectiveness  and  existence  of  such
    24  sections and benefits they confer are completely contingent thereon.
    25    § 13. This act shall take effect immediately, provided, however that:
    26    (a)  The  amendments to subdivision a of section 603 of the retirement
    27  and social security law made by section eleven of  this  act  shall  not
    28  affect the expiration of such subdivision as provided in subdivision (b)
    29  of section 13 of chapter 682 of the laws of 2003, and shall expire ther-
    30  ewith;
    31    (b)  The  provisions  of section six of this act shall remain in force
    32  and effect only so long  as,  pursuant  to  federal  law,  contributions
    33  picked  up  under  section 613 of the retirement and social security law
    34  are not includable as gross income of a member for  federal  income  tax
    35  purposes until distributed or made available to the member; and
    36    (c)  The  amendments to provisions of section 13-125.2 of the adminis-
    37  trative code of the city of New York made by sections seven, eight, nine
    38  and ten of this act shall not affect the expiration of  such  provisions
    39  as provided for in chapter 681 of the laws of 1992, as amended.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY  OF  BILL:  This  proposed  legislation  would  amend  certain
        provisions of the Retirement and Social  Security  Law  (RSSL)  and  the
        Administrative  Code  of  the  City  of  New  York (ACCNY), and add RSSL
        Sections 445-j and 604-j to establish a 25-Year Retirement  Program  for
        Tier  2,  4,  and  6 New York City Employees' Retirement System (NYCERS)
        members who are employed in  the  title  of  Water  Supply  Police  (WSP
        25-Year Plan).
          Effective Date: Upon enactment.
          MEMBERS  ELIGIBLE TO JOIN: Those NYCERS members who are sworn officers
        of the water supply police employed by the  City  of  New  York  (City),
        appointed  to  protect  the  sources,  works,  and transmission of water
        supplied to the City, and to protect persons on or in  the  vicinity  of
        such water sources, works, and transmission pursuant to subdivision o of
        section 1.20 of the Criminal Procedure Law.
          For  purposes  of  this  Fiscal  Note,  these members are collectively
        referred to as "Water Supply Police Members."

        A. 7306                            18
          Participation in the WSP 25-Year Plan is optional for  anyone  who  is
        eligible  to  participate in the Plan on the date of enactment by filing
        an election form within 180 days of enactment. Anyone who is a member of
        NYCERS (i.e. subject to Article 15) on the date of enactment and  subse-
        quently  becomes  employed  as a Water Supply Police Member also has 180
        days upon becoming such a member to elect to join the WSP 25-Year Plan.
          Any new Water Supply Police Member who becomes a Tier 6 NYCERS  member
        after  the  date of enactment is mandated into the Plan. However, if the
        member exceeds age 30 upon being mandated into the WSP 25-Year Plan, the
        member has the option not to participate in the Plan by filing an appli-
        cation to opt out of the Plan within 180 days of becoming a Water Supply
        Police Member.
          IMPACT ON BENEFITS: Currently, Water Supply Police  Members  generally
        participate  in  one of the NYCERS general plans (i.e. basic Tier 4 62/5
        Plan, Tier 6 63/10 Plan, or Improved Tier 4 57/5,  55/25  Plans).  There
        are  currently  no active Tier 2 Water Supply Police Members. Therefore,
        the following summary only applies to Tier 4 and  Tier  6  Water  Supply
        Police Members.
          The  proposed  legislation,  if  enacted,  would provide the following
        benefits to Water Supply Police Members under the WSP 25-Year Plan:
          * Service retirement benefit:
          * 50% of Final Average Salary (FAS) for the first 25 years of Credited
        Service, plus
          * 2% of FAS of each additional year of Credited Service up to a  maxi-
        mum of 30 years of such service.
          * Final Average Salary:
          * Tier 4 - Three-Year Average (FAS3)
          * Tier 6 - Five-Year Average (FAS5)
          * Vested benefit:
          * Eligibility is:
          * At  least five, but less than 25, years of Credited Service for Tier
        4 and Tier 6 members.
          * Payable at:
          * The date the member  would  have  completed  25  years  of  Credited
        Service for Tier 4 and Tier 6 members.
          * Amount:
          * 2% of FAS for each year of Credited Service.
          *  Other  benefits: Members of the proposed WSP 25-Year Plan 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 the WSP 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 equal to 6.0%  of
        compensation  for  all  service  as  a Plan participant on and after the
        starting date of the Plan until the later of a maximum of  30  years  of
        Credited  Service  or  the  one year anniversary of the enactment of the
        Plan.
          FINANCIAL IMPACT - PRESENT VALUES: Based on the anticipated  group  of
        members  joining  the WSP 25-Year Plan 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 $4.3 million, and increase the Present Value of  member  contrib-
        utions  of  approximately $2.3 million. The net result is an increase in
        the Present Value of future employer contributions of approximately $2.0
        million.

        A. 7306                            19
          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  $4.0  million  offset  by  a
        decrease  in  the  Present  Value of future employer Normal Cost of $2.0
        million.
          FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
        Administrative  Code  of  the  City  of   New   York   (ACCNY)   Section
        13-638.2(k-2),  new  UAL attributable to benefit changes are to be amor-
        tized as determined by the Actuary  but  generally  over  the  remaining
        working  lifetime  of  those impacted by the benefit changes. As of June
        30, 2017, the remaining working lifetime  of  the  Water  Supply  Police
        Members assumed to join the WSP 25-Year Plan is approximately 12 years.
          For  the  purposes  of this Fiscal Note, the increase in UAL was amor-
        tized over a 12-year period (11 payments under the One-Year Lag  Method-
        ology)  using level dollar payments. This payment offset by the decrease
        in the Normal Cost results in an increase in  annual  employer  contrib-
        utions of approximately $528,000 each year.
          OTHER COSTS: 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.
          * The  impact  of  this  proposed  legislation on Other Postemployment
        Benefit (OPEB) costs.
          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 June 30, 2019 actuarial valuation of NYCERS. In
        accordance with the One-Year Lag Methodology (OYLM)  used  to  determine
        employer  contributions,  the  increase  in employer contributions would
        first be reflected in Fiscal Year 2021.
          CENSUS DATA: The estimates presented herein are based  on  the  census
        data  used in the Preliminary June 30, 2018 (Lag) actuarial valuation of
        NYCERS to determine the Preliminary Fiscal Year 2020  employer  contrib-
        utions.
          The 84 Water Supply Police Members as of June 30, 2018 assumed to join
        the  WSP  25-Year  Plan  had an average age of approximately 39.2 years,
        average service of approximately 14.1 years, and an  average  salary  of
        approximately $73,300.
          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, 2018 (Lag)  actuarial  valuations
        used  to  determine  the  Preliminary Fiscal Year 2020 employer contrib-
        utions of NYCERS.
          To determine the impact of the elective nature of the proposed  legis-
        lation, a subgroup of Water Supply Police Members 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 WSP 25-Year Plan. If  the  net  Present
        Value  of  future  employer  cost under the WSP 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 actuarially.
          Based  on  this analysis, it was determined that those members who are
        mandated into the WSP 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

        A. 7306                            20
        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 WSP 25-Year Plan.
          RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
        highly on the actuarial assumptions and methods used and are subject  to
        change  based  on  the realization of potential investment, demographic,
        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.
          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
        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 2019-08 dated April 15,
        2019 was prepared by the Chief Actuary for the New York City  Employees'
        Retirement  System.  This  estimate  is intended for use only during the
        2019 Legislative Session.
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