Bill Text: NY A07444 | 2023-2024 | General Assembly | Amended


Bill Title: Relates to the transfer of reserves between public employee retirement systems of the state.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2023-06-09 - substituted by s7512 [A07444 Detail]

Download: New_York-2023-A07444-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         7444--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      May 19, 2023
                                       ___________

        Introduced  by  M.  of  A.  McMAHON -- (at request of the New York State
          Teachers' Retirement System) -- read once and referred to the  Commit-
          tee  on Governmental Employees -- reported and referred to the Commit-
          tee on Ways and Means -- committee discharged, bill  amended,  ordered
          reprinted as amended and recommitted to said committee

        AN  ACT  to  amend the education law, the retirement and social security
          law, the administrative code of the city of New York and  chapter  666
          of  the  laws of 1990, amending the administrative code of the city of
          New York and the education law relating to the availability  of  addi-
          tional  pension  benefits  for an extended second public employment to
          certain retirees, in relation to  the  transfer  of  reserves  between
          public employee retirement systems of the state

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

     1    Section 1. Subdivision 5 of section  522  of  the  education  law,  as
     2  amended  by  chapter  41  of  the  laws  of  2009, is amended to read as
     3  follows:
     4    5. Notwithstanding any other provision of law to the contrary,  except
     5  for  the purposes of providing the benefits, if any, of subdivision four
     6  of this section, with respect to  transfers  pursuant  to  this  section
     7  which occur on or after the effective date of the chapter of the laws of
     8  two  thousand twenty-three that amended this subdivision, no transfer of
     9  a pension reserve pursuant to subdivision one or  two  of  this  section
    10  shall be required when the member is transferring from a public [employ-
    11  ee]  retirement system of [this] the state [to any other public employee
    12  retirement system of this state] with less than ten  years  of  credited
    13  service with the transferring retirement system at the time the transfer
    14  is  initiated.  With respect to transfers pursuant to subdivision one or
    15  two of this section which occur on or after the effective  date  of  the
    16  chapter  of  the  laws  of  two  thousand twenty-three that amended this
    17  subdivision, the transfer of a pension reserve shall  be  required  when

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11602-03-3

        A. 7444--A                          2

     1  the  member is transferring ten or more years of credited service from a
     2  public retirement system of the state to  any  other  public  retirement
     3  system  of the state, excluding any transfers within and between the New
     4  York  city  employees'  retirement  system,  the New York city teachers'
     5  retirement system and the New York city board  of  education  retirement
     6  system.    For the purpose of giving the transferring member such status
     7  and crediting such service in the retirement system to which the  member
     8  is transferring as such member was allowed in the retirement system from
     9  which  the member has transferred, the transfer shall be deemed complete
    10  upon receipt by the transferee retirement system of (a) a statement from
    11  the transferor retirement system of the transferring  member's  date  of
    12  membership  in  the  transferor  retirement system, tier status, service
    13  credited to the transferred membership, and such  other  information  as
    14  the transferee retirement system may require to effectuate the transfer,
    15  [and]  (b)  such  member's accumulated contributions from the transferor
    16  retirement system, if same had not been previously withdrawn, or  notice
    17  from  the  transferor  retirement system that such member had no accumu-
    18  lated contributions, or notice from  the  transferor  retirement  system
    19  that  such member's accumulated contributions had been withdrawn and the
    20  amount thereof and, as applicable, receipt  from  such  member  of  such
    21  member's  accumulated  contributions  and  interest, and (c) the pension
    22  reserve in the case of a member who transfers in ten or  more  years  of
    23  credited  service,  except  when transferring within and between the New
    24  York city employees' retirement system,  the  New  York  city  teachers'
    25  retirement  system  and  the New York city board of education retirement
    26  system.
    27    § 2. Subdivisions k and l of section 43 of the retirement  and  social
    28  security  law, as amended by chapter 41 of the laws of 2009, are amended
    29  to read as follows:
    30    k. Notwithstanding any other provision of this section, any member  of
    31  the  New  York  state  and local employees' retirement system or the New
    32  York city teachers' retirement system  who  retired  from  service  from
    33  either  the  New  York city employees' retirement system or the New York
    34  city board of education retirement system as  a  member  of  the  career
    35  pension plan maintained by such system and who, but for the fact that he
    36  or she retired, would be eligible for transfer and who has not, in fact,
    37  received a pension payment from such system shall be permitted to trans-
    38  fer  his  or her retirement system membership pursuant to the provisions
    39  of this section. In such event, the application for retirement shall  be
    40  deemed  to  have been rescinded and the retirement system from which the
    41  service shall be transferred shall transfer the appropriate reserves  as
    42  provided by this section, provided, however, that with respect to trans-
    43  fers  pursuant  to this subdivision which occur on or after the [twenty-
    44  sixth day of October, two thousand four] effective date of  the  chapter
    45  of  the laws of two thousand twenty-three that amended this subdivision,
    46  except for the purposes of providing the benefits, if any,  of  subdivi-
    47  sion  four  of  section five hundred twenty-two of the education law, no
    48  determination of a reserve pursuant to subdivision c of this section  or
    49  transfer thereof pursuant to the first sentence of subdivision d of this
    50  section  shall  be required in the case of any transfer pursuant to this
    51  subdivision with less than ten years of credited service with the trans-
    52  ferring retirement system at the time the transfer  is  initiated.  With
    53  respect  to  transfers  pursuant to this section which occur on or after
    54  the effective date of the chapter of the laws of  two  thousand  twenty-
    55  three  that  amended this subdivision, the transfer of a pension reserve
    56  shall be required when the member is transferring ten or more  years  of

        A. 7444--A                          3

     1  credited  service  from  a  public retirement system of the state to any
     2  other public retirement system of the  state,  excluding  any  transfers
     3  within  and  between the New York city employees' retirement system, the
     4  New York city teachers' retirement system and the New York city board of
     5  education  retirement  system.    Notwithstanding  the provision of this
     6  subdivision or any other provision of law, an individual  who  transfers
     7  pursuant to this subdivision shall not be required to render any minimum
     8  period  of service following transfer in order to be eligible to receive
     9  the full benefit provided hereunder. Notwithstanding  the  foregoing,  a
    10  retiree  covered  by  either  the career pension plan or the fifty-five-
    11  year-increased-service-fraction plan who has received a pension  payment
    12  or  payments  from  such  system shall be eligible for the provisions of
    13  this subdivision upon payment, to the retirement system from  which  the
    14  pension  payment  or  payments  were  made,  of  an amount equal to such
    15  pension payment  or  payments.  After  such  payments  and  the  pension
    16  reserve,  in  the case of a member who transfers in ten or more years of
    17  credited service, except when transferring within and  between  the  New
    18  York  city  employees'  retirement  system,  the New York city teachers'
    19  retirement system and the New York city board  of  education  retirement
    20  system,  are received, such person shall be permitted to transfer his or
    21  her retirement system membership pursuant  to  the  provisions  of  this
    22  section.
    23    l.  Notwithstanding  any  other provision of law to the contrary, with
    24  respect to transfers pursuant to this section which occur  on  or  after
    25  the  [twenty-sixth  day of October, two thousand four] effective date of
    26  the chapter of the laws of two thousand twenty-three that  amended  this
    27  subdivision,  except for the purposes of providing the benefits, if any,
    28  of subdivision four of section five hundred twenty-two of the  education
    29  law,  no  determination  of  a reserve pursuant to subdivision c of this
    30  section or transfer thereof pursuant to the first sentence  of  subdivi-
    31  sion  d  of  this  section shall be required in the case of any transfer
    32  pursuant to this section with less than ten years  of  credited  service
    33  with  the  transferring  retirement  system  at the time the transfer is
    34  initiated. With respect to transfers  pursuant  to  this  section  which
    35  occur  on  or after the effective date of the chapter of the laws of two
    36  thousand twenty-three that amended this subdivision, the transfer  of  a
    37  pension reserve shall be required when the member is transferring ten or
    38  more  years  of  credited service from a public retirement system of the
    39  state to any other public retirement system of the state, excluding  any
    40  transfers  within  and  between  the New York city employees' retirement
    41  system, the New York city teachers' retirement system and the  New  York
    42  city  board  of  education retirement system.  For the purpose of giving
    43  the transferring member such status and crediting such  service  in  the
    44  second retirement system as such member was allowed in the first retire-
    45  ment  system  in  those cases to which this subdivision shall apply, the
    46  transfer shall be deemed complete upon receipt by the second  retirement
    47  system of:
    48    1.  a  statement  from the first retirement system of the transferring
    49  member's date of membership in the first retirement system, tier status,
    50  service credited to such membership being transferred,  and  such  other
    51  information  as  the  second retirement system may require to effectuate
    52  the transfer; [and]
    53    2. such member's accumulated contributions from the  first  retirement
    54  system,  if  same  had not been previously withdrawn, or notice from the
    55  first retirement system that such member  had  no  accumulated  contrib-
    56  utions,  or  notice  from the first retirement system that such member's

        A. 7444--A                          4

     1  accumulated contributions had been withdrawn and the amount thereof and,
     2  as applicable, receipt from such member  of  such  member's  accumulated
     3  contributions and interest; and
     4    3. the pension reserve in the case of a member who transfers in ten or
     5  more  years  of  credited  service,  except when transferring within and
     6  between the New York city employees' retirement  system,  the  New  York
     7  city  teachers'  retirement system and the New York city board of educa-
     8  tion retirement system.
     9    § 3. Subdivision h of section 343 of the retirement and social securi-
    10  ty law, as amended by chapter 533 of the laws of  2015,  is  amended  to
    11  read as follows:
    12    h.  Notwithstanding  any  other provision of law to the contrary, with
    13  respect to transfers pursuant to this section which occur  on  or  after
    14  the  effective  date  of the chapter of the laws of two thousand twenty-
    15  three that amended this  subdivision,  no  determination  of  a  reserve
    16  pursuant  to  subdivision c of this section or transfer thereof pursuant
    17  to the first sentence of subdivision d of this section shall be required
    18  in the case of any transfer pursuant  to  this  section  (other  than  a
    19  transfer  from  the  New York state and local police and fire retirement
    20  system to either (1) the New York city police department subchapter  two
    21  pension  fund,  (2)  the  New  York  city fire department subchapter two
    22  pension fund or (3) the MTA police retirement program or a transfer from
    23  either (i) the New York city police department  subchapter  two  pension
    24  fund  or  (ii)  the New York city fire department subchapter two pension
    25  fund to either (A) the New York state and local police and fire  retire-
    26  ment  system or (B) the MTA police retirement program or a transfer from
    27  the MTA police retirement program to the New York state and local police
    28  and fire retirement system) in the case of a member with less  than  ten
    29  years of credited service with the transferring retirement system at the
    30  time  the  transfer is initiated.  With respect to transfers pursuant to
    31  such subdivisions which occur on or after  the  effective  date  of  the
    32  chapter  of  the  laws  of  two  thousand twenty-three that amended this
    33  subdivision, the transfer of a pension reserve shall  be  required  when
    34  the  member is transferring ten or more years of credited service from a
    35  public retirement system of the state to  any  other  public  retirement
    36  system  of the state, excluding any transfers within and between the New
    37  York city employees' retirement system,  the  New  York  city  teachers'
    38  retirement  system  and  the New York city board of education retirement
    39  system. For the purpose of giving the transferring  member  such  status
    40  and  crediting  such  service  in  the  second retirement system as such
    41  member was allowed in the first retirement  system  in  those  cases  to
    42  which  this  subdivision  shall  apply,  the  transfer  shall  be deemed
    43  complete upon receipt by the second retirement system of:
    44    1. a statement from the first retirement system  of  the  transferring
    45  member's date of membership in the first retirement system, tier status,
    46  service  credited  to  such membership being transferred, and such other
    47  information as the second retirement system may  require  to  effectuate
    48  the transfer; [and]
    49    2.  such  member's accumulated contributions from the first retirement
    50  system, if same had not been previously withdrawn, or  notice  from  the
    51  first  retirement  system  that  such member had no accumulated contrib-
    52  utions, or notice from the first retirement system  that  such  member's
    53  accumulated contributions had been withdrawn and the amount thereof and,
    54  as  applicable,  receipt  from  such member of such member's accumulated
    55  contributions and interest; and

        A. 7444--A                          5

     1    3. the pension reserve in the case of a member who transfers in ten or
     2  more years of credited service,  except  when  transferring  within  and
     3  between  the  New  York  city employees' retirement system, the New York
     4  city teachers' retirement system and the New York city board  of  educa-
     5  tion retirement system.
     6    § 4. Paragraph 4 of subdivision a of section 13-143 of the administra-
     7  tive  code  of the city of New York, as added by chapter 647 of the laws
     8  of 2004, is amended to read as follows:
     9    (4) Notwithstanding the provisions of paragraph two of  this  subdivi-
    10  sion,  with respect to transfers pursuant to this section which occur on
    11  or after the effective date of the chapter of the laws of  two  thousand
    12  twenty-three  that  amended  this paragraph, the actuary of the New York
    13  city employees' retirement system shall not be required to determine the
    14  reserve on the benefits allowable to  the  transferring  member  as  the
    15  result  of  employer contributions, including the reserve-for-increased-
    16  take-home-pay, and the transfer of such reserve, including the  reserve-
    17  for-increased-take-home-pay,  from  the New York city employees' retire-
    18  ment system to said police pension fund [shall not be required]  when  a
    19  member is transferring with less than ten years of credited service with
    20  the  transferring  retirement  system at the time the transfer is initi-
    21  ated. With respect to transfers pursuant to this subdivision which occur
    22  on or after the effective date of the chapter of the laws of  two  thou-
    23  sand twenty-three that amended this paragraph, the transfer of a pension
    24  reserve  shall  be  required when the member is transferring ten or more
    25  years of credited service from a public retirement system of  the  state
    26  to any other public retirement system of the state, excluding any trans-
    27  fers  within and between the New York city employees' retirement system,
    28  the New York city teachers' retirement system  and  the  New  York  city
    29  board  of  education  retirement  system.  The  New York city employees'
    30  retirement system, within one year from the date of the request for  the
    31  transfer  of  credit,  shall comply with all requirements for completing
    32  the transfer imposed on it by the provisions of this section,  including
    33  the  pension  reserve  in the case of a member who transfers ten or more
    34  years of credited service, except when transferring within  and  between
    35  the New York city employees' retirement system, the New York city teach-
    36  ers'  retirement system and the New York city board of education retire-
    37  ment system.  Nothing set forth in this paragraph  shall  be  deemed  to
    38  modify  the  requirement  set forth in paragraph two of this subdivision
    39  that the New York city employees' retirement  system  transfer  to  said
    40  police pension fund the accumulated deductions of such member.
    41    § 5. Paragraph 4 of subdivision a of section 13-144 of the administra-
    42  tive  code  of the city of New York, as added by chapter 647 of the laws
    43  of 2004, is amended to read as follows:
    44    (4) Notwithstanding the provisions of paragraph two of  this  subdivi-
    45  sion,  with respect to transfers pursuant to this section which occur on
    46  or after the effective date of the chapter of the laws of  two  thousand
    47  twenty-three  that  amended  this paragraph, the actuary of the New York
    48  city employees' retirement system shall not be required to determine the
    49  reserve on the benefits allowable to  the  transferring  member  as  the
    50  result  of employer contributions, including [the reserve-for-increased-
    51  take-home-pay, and] the transfer of such reserve[,  including]  and  the
    52  reserve-for-increased-take-home-pay[,] from the New York city employees'
    53  retirement  system  to  said  fire department pension fund [shall not be
    54  required], with less than ten years of credited service from the  trans-
    55  ferring  retirement  system  at the time the transfer is initiated. With
    56  respect to transfers pursuant to this section which occur  on  or  after

        A. 7444--A                          6

     1  the  effective  date  of the chapter of the laws of two thousand twenty-
     2  three that amended this paragraph, the transfer  of  a  pension  reserve
     3  pursuant to paragraph two of this subdivision shall be required when the
     4  member  is  transferring  ten  or  more years of credited service from a
     5  public retirement system of the state to  any  other  public  retirement
     6  system  of the state, excluding any transfers within and between the New
     7  York city employees' retirement system,  the  New  York  city  teachers'
     8  retirement  system  and  the New York city board of education retirement
     9  system.  The New York city employees' retirement system, within one year
    10  from the date of the request for the transfer of  credit,  shall  comply
    11  with  all  requirements for completing the transfer imposed on it by the
    12  provisions of this section, including the pension reserve in the case of
    13  a member who transfers ten or  more  years  of  member  service  credit,
    14  except when transferring within and between the New York city employees'
    15  retirement system, the New York city teachers' retirement system and the
    16  New York city board of education retirement system. Nothing set forth in
    17  this  paragraph  shall  be deemed to modify the requirement set forth in
    18  paragraph two of this subdivision that  the  New  York  city  employees'
    19  retirement  system  transfer  to  said  fire department pension fund the
    20  accumulated deductions of such member.
    21    § 6. Subdivision d of section 3 of chapter 666 of the  laws  of  1990,
    22  amending  the administrative code of the city of New York and the educa-
    23  tion law relating to the availability of additional pension benefits for
    24  an extended second public employment to certain retirees,  as  added  by
    25  chapter 647 of the laws of 2004, is amended to read as follows:
    26    d.  Notwithstanding the provisions of subdivision b of this section or
    27  any other provision of law to the contrary, with  respect  to  transfers
    28  pursuant  to  this section which occur on or after the effective date of
    29  the chapter of the laws of two thousand twenty-three that  amended  this
    30  subdivision, no determination or transfer of the reserve on the benefits
    31  allowable  to the transferring member as the result of employer contrib-
    32  utions,  including  the  reserve-for-increased-take-home-pay,  shall  be
    33  required  for a member with less than ten years of credited service from
    34  the transferring system at the time  the  transfer  is  initiated.  With
    35  respect  to  transfers  pursuant to this section which occur on or after
    36  the effective date of the chapter of the laws of  two  thousand  twenty-
    37  three  that  amended this subdivision, the transfer of a pension reserve
    38  shall be required when the member is transferring ten or more  years  of
    39  credited  service  from  a  public retirement system of the state to any
    40  other public retirement system of the  state,  excluding  any  transfers
    41  within  and  between the New York city employees' retirement system, the
    42  New York city teachers' retirement system and the New York city board of
    43  education retirement system.
    44    § 7. This act shall take effect immediately and  shall  apply  to  any
    45  covered  membership  transfer initiated on or after such effective date;
    46  provided, however, that no provision of this act shall  affect  (a)  the
    47  transfer  of reserves required with respect to transfers between any two
    48  of the New York state and local police and fire retirement  system,  the
    49  New  York city police department subchapter two pension fund and the New
    50  York city fire department subchapter two pension fund and  with  respect
    51  to  transfers  from the New York state and local police and fire retire-
    52  ment system to the metropolitan transportation authority police  pension
    53  fund;  and (b) the transfer of reserves with respect to transfers within
    54  and between the New York city employees' retirement system, the New York
    55  city teachers' retirement system and the New York city board  of  educa-
    56  tion retirement system.

        A. 7444--A                          7

          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would  amend  Section 522 of the Education Law and various
        sections of the Retirement and Social Security Law and  the  Administra-
        tive  Code  of  the  City of New York to require the transfer of pension
        reserves between retirement systems in cases in which a  member  of  the
        New  York  State  Teachers' Retirement System (NYSTRS) or any Retirement
        System of the State or City of New York transfers a membership with  ten
        or more years of credited service at the time the transfer is initiated.
        This act shall take effect immediately and shall apply to any membership
        transfer initiated on or after the effective date of this act. No trans-
        fer  of  reserves  will be required for transfers within and between the
        NYC Retirement Systems. The current transfer of reserves that occurs due
        to transfers between the police and fire systems shall not be disturbed.
          It is estimated that there will be no additional annual  cost  to  the
        employers  of  members  of  the NYSTRS if this bill is enacted. In fact,
        this bill will greatly increase equity between the retirement systems of
        the state by ensuring that a member who  transfers  with  a  significant
        liability  will bring with him or her the pension reserve accumulated by
        the prior retirement system to offset the liability assumed by  the  new
        retirement system.
          Member  data  is  from  the  System's  most recent actuarial valuation
        files, consisting of data provided by the employers  to  the  Retirement
        System.   Data distributions and statistics can be found in the System's
        Annual Report. System assets are as reported in the  System's  financial
        statements and can also be found in the System's Annual Report. Actuari-
        al  assumptions and methods are provided in the System's Actuarial Valu-
        ation Report.
          The source of this estimate is Fiscal Note 2023-1  dated  October  14,
        2022  prepared by the Office of the Actuary of the New York State Teach-
        ers' Retirement System and is intended for  use  only  during  the  2023
        Legislative  Session.  I, Richard A. Young, am the Chief Actuary for the
        New York State Teachers' Retirement System. I am a member of the  Ameri-
        can  Academy  of Actuaries and I meet the Qualification Standards of the
        American Academy of Actuaries to render the actuarial opinion  contained
        herein.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would amend sections 43 and 343 of the Retirement and Social
        Security  Law and various sections of the Education Law and the Adminis-
        trative Code of the City of New York to reinstate  the  calculation  and
        transfer  of  a  pension  reserve  for a member transferring between the
        public retirement systems in New York State,  provided  such  member  is
        transferring ten (10) or more years of service credit.
          Insofar  as  this bill affects the New York State and Local Employees'
        Retirement System (NYSLERS) and the New York State and Local Police  and
        Fire Retirement System (NYSLPFRS), if this legislation is enacted during
        the 2023 legislative session, there would be some ongoing administrative
        costs to implement the provisions of this legislation.
          The  actuarial  gains and losses arising from the transfer of reserves
        is expected to net to zero over the long term, making the proposal  cost
        neutral.
          Summary of relevant resources:
          Membership  data as of March 31, 2022 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2022 actuari-
        al valuation. Distributions and other statistics can  be  found  in  the
        2022  Report  of the Actuary and the 2022 Annual Comprehensive Financial
        Report.

        A. 7444--A                          8

          The actuarial assumptions and methods used are described in the  2020,
        2021,  and  2022  Annual  Report to the Comptroller on Actuarial Assump-
        tions, and the Codes, Rules and Regulations of the State  of  New  York:
        Audit and Control.
          The Market Assets and GASB Disclosures are found in the March 31, 2022
        New  York  State  and  Local  Retirement System Financial Statements and
        Supplementary Information.
          This fiscal note does not constitute a legal opinion on the  viability
        of  the  proposed change nor is it intended to serve as a substitute for
        the professional judgment of an attorney.
          This estimate, dated January 3, 2023, and intended for use only during
        the 2023 Legislative Session, is Fiscal Note No. 2023-005,  prepared  by
        the Actuary for the New York State and Local Retirement System.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY  OF BILL: This proposed legislation (see Appendix) would amend
        Sections 43 and 343 of the Retirement and Social  Security  Law  (RSSL),
        Sections 13-143 and 13-144 of the Administrative Code of the City of New
        York  (ACCNY),  Section 522 of the Education Law, and Chapter 666 of the
        laws of 1990 to reinstate the transfer of reserves between  certain  New
        York City and State retirement systems.
          Effective Date: Upon enactment.
          BACKGROUND:  Chapter  647 of the Laws of 2004, for purposes of stream-
        lining transfers between certain public retirement systems and alleviat-
        ing the administrative burden of  reserve  calculations  and  transfers,
        eliminated the transfer of reserves as a required step in completing the
        transfer of memberships between certain public retirement systems within
        New  York.   This proposed legislation would repeal parts of Chapter 647
        and eliminate the administrative efficiencies created by such law.
          Currently, members of the New York City Employees'  Retirement  System
        (NYCERS), the New York City Teachers' Retirement System (NYCTRS), or the
        New  York  City  Board  of Education Retirement System (BERS) who accept
        another position that entitles them to membership in  another  New  York
        public  retirement  system may choose to transfer their membership. Upon
        successful application for such  transfer,  certain  member  accumulated
        contributions  (with  accrued  interest)  are generally transferred, but
        additional employer paid reserves are not.
          Under the proposed legislation, if enacted, when members with a  mini-
        mum of 10 years of Credited Service transfer their membership to another
        retirement system, the originating system would be required to calculate
        and  pay  such  member's  pension reserve, net of any accumulated salary
        deductions otherwise transferred, to the destination retirement  system.
        Such  transfers  of  reserves  would  not be required for members trans-
        ferring wholly between NYCERS, NYCTRS, and BERS.
          FINANCIAL IMPACT - OVERVIEW: It is not possible to accurately estimate
        the number of New York City Retirement System or  Pension  Fund  (NYCRS)
        members with at least 10 years of service who would potentially transfer
        between  affected  City  and  State  retirement  systems  in the future.
        Therefore, the estimated financial impact has been calculated on  a  per
        event  basis  equal  to the increase in Unfunded Accrued Liability (UAL)
        for an average NYCERS, NYCTRS, and BERS member with at least 10 years of
        service. This increase in UAL consists of the  reserve  required  to  be
        transferred  to  the  State system, net of any member contributions that
        would otherwise be transferred.
          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.

        A. 7444--A                          9

          These  costs  would be offset by any reserves reciprocally transferred
        from a State system to a City system. Transfers  between  affected  City
        systems would not be expected to materially impact these costs.
          FINANCIAL IMPACT - SUMMARY: The enactment of this proposed legislation
        would  not be expected to result in any material changes in the ultimate
        costs of the NYCRS but is expected to  increase  administrative  burdens
        and potentially delay member transfers.
          Enactment of this proposed legislation would, on transfers from a City
        system  to  a  State system, increase employer contributions, where such
        amount would depend on the number of members affected as well  as  other
        characteristics  including the age, years of service, and salary history
        of the member. A breakdown of the financial impact by System is shown in
        the table below.

                          Average Increase in         Average Increase in
             NYCRS                UAL            Annual Employer Contributions
                             per Transfer                per Transfer
             NYCERS            $307,000                     $36,300
             NYCTRS            $396,000                     $46,800
             BERS              $178,600                     $21,100

          As there is no data currently available  to  accurately  estimate  the
        number  and  demographic  characteristics of members who may transfer to
        the State, the financial impact would  be  recognized  at  the  time  of
        event.   Consequently, changes in employer contributions have been esti-
        mated assuming that the increase in the UAL will  be  recognized  as  an
        actuarial  loss  and  financed over a closed 15-year period (14 payments
        under the One-Year Lag Methodology) using level dollar payments.
          With respect to the timing, increases in employer contributions  would
        depend  upon  when  eligible  members file their application to transfer
        their NYCRS membership to the State but, generally,  increased  employer
        contributions  will  first  occur  the  second fiscal year following the
        transfer of reserves to the State.
          CENSUS DATA: The estimates presented herein are based  on  the  census
        data  to  be  used  in the June 30, 2022 actuarial valuation of NYCRS to
        determine the Preliminary Fiscal Year 2024 employer contributions.
          The table below contains a summary of the census data for the  members
        in  NYCERS, NYCTRS, and BERS who have at least 10 years of service as of
        June 30, 2022.

                            Active      Average     Average        Average
             NYCRS          Count         Age       Service        Salary
             NYCERS         91,970       53.5        19.4         $ 94,600
             NYCTRS         67,261       49.9        18.7         $111,600
             BERS           10,934       56.4        16.9         $ 64,100

          ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
        been calculated based on the actuarial assumptions and methods used  for
        the Preliminary Fiscal Year 2024 employer contributions of NYCRS.
          RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
        highly on the realization of the actuarial assumptions used,  demograph-
        ics  of  the  impacted  population and other factors such as investment,
        contribution, and other risks. If actual experience deviates from  actu-
        arial  assumptions,  the  actual costs could differ from those presented
        herein.

        A. 7444--A                         10

          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  initial and ongoing, additional administrative costs to imple-
        ment the proposed legislation.
          STATEMENT OF ACTUARIAL OPINION: I, Marek  Tyszkiewicz,  am  the  Chief
        Actuary  for,  and  independent of, the New York City Retirement Systems
        and Pension Funds. I am an Associate of the Society of Actuaries  and  a
        Member of the American Academy of Actuaries. I am a member of NYCERS but
        do  not  believe  it impairs my objectivity and I meet the Qualification
        Standards of the American Academy of Actuaries to render  the  actuarial
        opinion  contained  herein.  To  the  best  of my knowledge, the results
        contained  herein  have  been  prepared  in  accordance  with  generally
        accepted  actuarial  principles  and  procedures  and with the Actuarial
        Standards of Practice issued by the Actuarial Standards Board.
          FISCAL NOTE IDENTIFICATION: This Fiscal Note 2023-09 dated  March  10,
        2023  was prepared by the Chief Actuary for the New York City Retirement
        Systems and Pension Funds. This estimate is intended for use only during
        the 2023 Legislative Session.
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