Bill Text: NY A07902 | 2021-2022 | General Assembly | Amended


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 - Dead) 2022-05-05 - print number 7902a [A07902 Detail]

Download: New_York-2021-A07902-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         7902--A

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                      May 28, 2021
                                       ___________

        Introduced  by  M.  of  A. CUSICK, PHEFFER AMATO, COLTON, LAVINE, DURSO,
          GRIFFIN, BYRNE, TAYLOR, ROZIC,  REILLY,  SAYEGH,  J. M. GIGLIO,  CRUZ,
          DAVILA,  DeSTEFANO, MORINELLO, RA, SCHMITT -- Multi-Sponsored by -- M.
          of A. COOK, McDONOUGH, SIMON -- read once and referred to the  Commit-
          tee  on  Governmental Operations -- reference changed to the Committee
          on Governmental Employees -- recommitted to the Committee  on  Govern-
          mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit-
          tee  discharged, bill amended, ordered reprinted as amended and recom-
          mitted to said committee

        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.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03630-03-2

        A. 7902--A                          2

     1    § 2. Subdivision a of section 444 of the retirement and social securi-
     2  ty  law,  as amended by section 141 of subpart B of part C of chapter 62
     3  of the laws of 2011, is amended to read as follows:
     4    a.  Except as provided in subdivision c of section four hundred forty-
     5  five-a of this article, subdivision c of  section  four  hundred  forty-
     6  five-b  of  this  article,  subdivision c of section four hundred forty-
     7  five-c  of  this  article,  subdivision  c  of  section   four   hundred
     8  forty-five-d  of  this article as added by chapter four hundred seventy-
     9  two of the laws  of  nineteen  hundred  ninety-five,  subdivision  c  of
    10  section  four  hundred  forty-five-e  of  this article, subdivision c of
    11  section four hundred forty-five-f of this article and subdivision  c  of
    12  section  four hundred forty-five-h of this article, and subdivision c of
    13  section four hundred forty-five-j of this article, the  maximum  retire-
    14  ment benefit computed without optional modification provided to a member
    15  of a retirement system who is subject to the provisions of this article,
    16  other  than  a  police officer, a firefighter, an investigator member of
    17  the New  York  city  employees'  retirement  system,  a  member  of  the
    18  uniformed  personnel  in  institutions under the jurisdiction of the New
    19  York city department of correction who receives a  performance  of  duty
    20  disability  retirement allowance, a member of the uniformed personnel in
    21  institutions under the jurisdiction of the department of corrections and
    22  community supervision or a security  hospital  treatment  assistant,  as
    23  those  terms are defined in subdivision i of section eighty-nine of this
    24  chapter, who receives a performance of duty disability retirement allow-
    25  ance, a member of a teachers' retirement system, New York  city  employ-
    26  ees'  retirement  system,  New  York  city board of education retirement
    27  system or a member of the New York state and local employees' retirement
    28  system or a member of the New York city employees' retirement system  or
    29  New York city board of education retirement system employed as a special
    30  officer,  parking  control specialist, school safety agent, campus peace
    31  officer, taxi and limousine  inspector  [or],  a  police  communications
    32  member,  or  a  member  of  the  water  supply police and who receives a
    33  performance of duty disability pension,  from  funds  other  than  those
    34  based on a member's own or increased-take-home-pay contributions, shall,
    35  before  any  reduction  for early retirement, be sixty per centum of the
    36  first fifteen thousand three hundred dollars of  final  average  salary,
    37  and  fifty per centum of final average salary in excess of fifteen thou-
    38  sand three hundred dollars, and forty per centum of final average salary
    39  in excess of twenty-seven  thousand  three  hundred  dollars,  provided,
    40  however,  that  the  benefits  provided by subdivision c of section four
    41  hundred forty-five-d of this article as added by  chapter  four  hundred
    42  seventy-two  of  the laws of nineteen hundred ninety-five based upon the
    43  additional member  contributions  required  by  subdivision  d  of  such
    44  section  four  hundred  forty-five-d  shall  be  subject  to the maximum
    45  retirement benefit computations set forth in this section.  The  maximum
    46  retirement  benefit  computed without optional modification payable to a
    47  police officer, an investigator member of the New York  city  employees'
    48  retirement  system  or  a  firefighter  shall  equal  that  payable upon
    49  completion of thirty years of service, except that the  maximum  service
    50  retirement  benefit  computed  without optional modification shall equal
    51  that payable upon completion of thirty-two years of service.
    52    § 3. Subdivision a of section 445 of the retirement and social securi-
    53  ty law, as amended by chapter 245 of the laws of  2021,  is  amended  to
    54  read as follows:
    55    a.  No  member of a retirement system who is subject to the provisions
    56  of this article shall retire without regard to age, exclusive of retire-

        A. 7902--A                          3

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

        A. 7902--A                          4

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

        A. 7902--A                          5

     1    4. "Starting date of the twenty-five year improved benefit  retirement
     2  program"  shall mean the effective date of this section, as such date is
     3  certified pursuant to section forty-one of the legislative law.
     4    5.  "Participant  in  the twenty-five year improved benefit retirement
     5  program" shall mean any water supply police member who, under the appli-
     6  cable provisions of subdivision b of this section, is  entitled  to  the
     7  rights, benefits and privileges and is subject to the obligations of the
     8  twenty-five  year  improved benefit retirement program, as applicable to
     9  him or her.
    10    6. "Administrative code" shall mean the  administrative  code  of  the
    11  city of New York.
    12    7.  "Accumulated  deductions"  shall  mean  accumulated  deductions as
    13  defined in subdivision eleven of section 13-101  of  the  administrative
    14  code of the city of New York.
    15    8. "Optional retirement provisions" shall mean the right to retire and
    16  receive a retirement allowance under this section upon the completion of
    17  twenty-five years of credited service.
    18    b.  Election  of twenty-five year improved benefit retirement program.
    19  1. Subject to the provisions of paragraphs five and six of this subdivi-
    20  sion, any person who is a water supply police  member  on  the  starting
    21  date  of  the  twenty-five  year improved benefit retirement program may
    22  elect to become a participant in the twenty-five year  improved  benefit
    23  retirement  program by filing, within one hundred eighty days after such
    24  starting date, a duly executed application for such  participation  with
    25  the  retirement system, provided he or she is such a water supply police
    26  member on the date such application is filed.
    27    2. Subject to the provisions of paragraphs five and six of this subdi-
    28  vision, any person who becomes a water supply police  member  after  the
    29  starting  date  of  the  twenty-five  year  improved  benefit retirement
    30  program may elect to  become  a  participant  in  the  twenty-five  year
    31  improved benefit retirement program by filing, within one hundred eighty
    32  days  after  becoming such a water supply police member, a duly executed
    33  application for such participation with the retirement system,  provided
    34  he or she is such a water supply police member on the date such applica-
    35  tion is filed.
    36    3.  Any  election to be a participant in the twenty-five year improved
    37  benefit retirement program shall be irrevocable.
    38    4. Where any participant in  the  twenty-five  year  improved  benefit
    39  retirement  program  shall  cease  to  hold a position as a water supply
    40  police member, he or she shall cease  to  be  such  a  participant  and,
    41  during  any  period  in  which  such a person does not hold such a water
    42  supply police position, he or she shall not  be  a  participant  in  the
    43  twenty-five  year  improved  benefit retirement program and shall not be
    44  eligible for the benefits of subdivision c of this section.
    45    5. Where any participant in  the  twenty-five  year  improved  benefit
    46  retirement  program  terminates  service as a water supply police member
    47  and returns to such service as a water supply police member at  a  later
    48  date, he or she shall again become such a participant on that date.
    49    6.  Notwithstanding  any  other  provision of law to the contrary, any
    50  person who is eligible to become a participant in the  twenty-five  year
    51  improved  benefit retirement program pursuant to paragraph one or two of
    52  this subdivision for the full one hundred eighty day period provided for
    53  in such applicable paragraph  and  who  fails  to  timely  file  a  duly
    54  executed  application for such participation with the retirement system,
    55  shall not thereafter  be  eligible  to  become  a  participant  in  such
    56  program.

        A. 7902--A                          6

     1    c. Service retirement benefits. Notwithstanding any other provision of
     2  law  to  the  contrary,  where  a  participant  in  the twenty-five year
     3  improved benefit retirement program, who is otherwise  qualified  for  a
     4  retirement  allowance pursuant to the optional retirement provisions set
     5  forth  in  subdivision a of this section, has made and/or paid, while he
     6  or she is a water supply police member, all additional  member  contrib-
     7  utions  and interest (if any) required by subdivision d of this section,
     8  then:
     9    1. that participant, while he or she remains a participant, shall  not
    10  be  subject  to  the provisions of subdivision a of section four hundred
    11  forty-five of this article; and
    12    2. if  that  participant,  while  such  a  participant,  retires  from
    13  service,  he  or  she  shall not be subject to the provisions of section
    14  four hundred forty-four of this article; and
    15    3. his or her retirement allowance shall be an amount, on  account  of
    16  the required minimum period of service, equal to the sum of (i) an annu-
    17  ity   which  shall  be  the  actuarial  equivalent  of  the  accumulated
    18  deductions from his or her pay during such period, (ii)  a  pension  for
    19  increased-take-home-pay  which  shall be the actuarial equivalent of the
    20  reserve for increased-take-home-pay to which he or she may  be  entitled
    21  for  such  period, and (iii) a pension which, when added to such annuity
    22  and such pension  for  increased-take-home-pay,  produces  a  retirement
    23  allowance  equal  to  fifty  percent of his or her final average salary,
    24  plus an amount for each additional year of allowable service,  or  frac-
    25  tion  thereof,  beyond  such required minimum period of service equal to
    26  two percent of his or her final average salary; and
    27    4. the maximum retirement benefit computed without optional  modifica-
    28  tion  payable to that participant upon his or her retirement for service
    29  as such a participant shall equal that payable upon completion of thirty
    30  years of service.
    31    d. Additional member contributions.  1.  In  addition  to  the  member
    32  contributions  required  pursuant to section 13-125 or section 13-162 of
    33  the administrative code of the city of New York, each participant in the
    34  twenty-five year improved benefit retirement program  shall  contribute,
    35  subject to the applicable provisions of section 13-125.2 of the adminis-
    36  trative  code  of the city of New York, an additional six percent of his
    37  or her compensation earned from (i) all credited service, as  a  partic-
    38  ipant  in  the  twenty-five  year  improved  benefit retirement program,
    39  rendered on and after the starting date of the improved benefit  retire-
    40  ment  program, and (ii) all credited service after such person ceases to
    41  be a participant, but before he  or  she  again  becomes  a  participant
    42  pursuant  to  paragraph five of subdivision b of this section. A partic-
    43  ipant in the twenty-five year improved benefit retirement program  shall
    44  contribute  additional  member  contributions until the later of (i) the
    45  date as of which he or she is eligible to retire with twenty-five  years
    46  of  credited  service  under  such retirement program, or (ii) the first
    47  anniversary of the starting date of the twenty-five year improved  bene-
    48  fit  retirement  program.  The additional contributions required by this
    49  paragraph shall be in lieu of additional member  contributions  required
    50  by  subdivision  d of section four hundred forty-five-d of this article,
    51  as added by chapter ninety-six of the laws of nineteen  hundred  ninety-
    52  five,  and  no  member  paying additional contributions pursuant to this
    53  section shall be required to pay additional  contributions  pursuant  to
    54  such subdivision d of section four hundred forty-five-d of this article.
    55    2.  Commencing  with  the  first full payroll period after each person
    56  becomes a participant in the twenty-five year improved  benefit  retire-

        A. 7902--A                          7

     1  ment  program,  additional member contributions at the rate specified in
     2  paragraph one of this subdivision shall  be  deducted,  subject  to  the
     3  applicable  provisions of section 13-125.2 of the administrative code of
     4  the  city of New York, from the compensation of such participant on each
     5  and every payroll of such participant for each and every payroll  period
     6  for which he or she is such a participant.
     7    3.  (i)  Subject  to the provisions of subparagraph (ii) of this para-
     8  graph, where any additional member contributions required  by  paragraph
     9  one  of this subdivision are not paid by deductions from a participant's
    10  compensation pursuant to paragraph two of this subdivision:
    11    (A) that participant shall be charged with a  contribution  deficiency
    12  consisting  of  such  unpaid  amounts,  together  with interest thereon,
    13  compounded annually; and
    14    (B) such interest on each amount  of  undeducted  contributions  shall
    15  accrue  from  the  end of the payroll period for which such amount would
    16  have been deducted from compensation if he or she had been a participant
    17  at the beginning of that payroll period and  such  deductions  had  been
    18  required  for  such  payroll  period  until  such  amount is paid to the
    19  retirement system; and
    20    (C) (1)interest on each such amount  included  in  such  participant's
    21  contribution  deficiency  pursuant  to this subparagraph shall be calcu-
    22  lated as if such additional member contributions never had been paid  by
    23  such  participant,  and  such  interest shall accrue from the end of the
    24  payroll period to which an amount of  such  additional  member  contrib-
    25  utions  is  attributable, compounded annually, until such amount is paid
    26  to the retirement system.
    27    (2) the rate of interest to be applied to each such amount during  the
    28  period  for  which interest accrues on that amount shall be equal to the
    29  rate or rates of interest required by law to be used  during  that  same
    30  period  to  credit  interest on the accumulated deductions of retirement
    31  system members.
    32    (ii) Except as provided in subparagraph (iii) of  this  paragraph,  no
    33  interest  shall  be due on any unpaid additional contributions which are
    34  not attributable to the period prior to the first  full  payroll  period
    35  referred to in paragraph two of this subdivision.
    36    (iii)  Should  any  person  who,  pursuant  to paragraph seven of this
    37  subdivision, has withdrawn any additional member contributions (and  any
    38  interest  paid  thereon)  again  become a participant in the twenty-five
    39  year improved benefit retirement program pursuant to paragraph  five  of
    40  subdivision  b  of this section, an appropriate amount shall be included
    41  in such participant's contribution deficiency (including interest there-
    42  on as calculated pursuant to subclause two of clause (C) of subparagraph
    43  (i) of this paragraph) for any credited service with  respect  to  which
    44  such  person  received  a  refund  of  additional  member  contributions
    45  (including any amount of an unpaid loan  balance  deemed  to  have  been
    46  returned  to  such  person  pursuant to paragraph seven of this subdivi-
    47  sion), as if such additional member contributions never had been paid.
    48    4. The board of trustees of the retirement system may, consistent with
    49  the provisions of  this  subdivision,  promulgate  regulations  for  the
    50  payment of the additional member contributions required by this subdivi-
    51  sion, and any interest thereon, by a participant in the twenty-five year
    52  improved  benefit  retirement  program  (including the deduction of such
    53  contributions, and any interest thereon, from his or her compensation).
    54    5. Where a participant who is otherwise eligible for  service  retire-
    55  ment  pursuant  to  subdivision  c of this section did not, prior to the
    56  effective date of retirement, pay the entire amount  of  a  contribution

        A. 7902--A                          8

     1  deficiency  chargeable to him or her pursuant to paragraph three of this
     2  subdivision, or repay the entire amount of a loan of his  or  her  addi-
     3  tional member contributions pursuant to paragraph eight of this subdivi-
     4  sion (including accrued interest on such loan), that participant, never-
     5  theless,  shall  be eligible to retire pursuant to subdivision c of this
     6  section, provided, however, that where such participant is not  entitled
     7  to  a  refund  of  additional member contributions pursuant to paragraph
     8  seven of this subdivision, such participant's service retirement benefit
     9  calculated pursuant to the applicable provisions  of  subdivision  c  of
    10  this  section  shall be reduced by a life annuity (calculated in accord-
    11  ance with the method set forth in subdivision i of section  six  hundred
    12  thirteen-b of this chapter) which is actuarially equivalent to:
    13    (i)  the  amount  of  any unpaid contribution deficiency chargeable to
    14  such member pursuant to paragraph three of this subdivision; plus
    15    (ii) the amount of any unpaid balance of a loan of his  or  her  addi-
    16  tional member contributions pursuant to paragraph eight of this subdivi-
    17  sion (including accrued interest on such loan).
    18    6.  Subject  to  the provisions of paragraph five of this subdivision,
    19  where a participant has not paid in  full  any  contribution  deficiency
    20  chargeable  to  him  or her pursuant to paragraph three of this subdivi-
    21  sion, and a benefit, other than  a  refund  of  a  member's  accumulated
    22  deductions  or  a  refund of additional member contributions pursuant to
    23  paragraph seven of this subdivision, becomes payable by  the  retirement
    24  system  to  the  participant  or to his or her designated beneficiary or
    25  estate, the actuarial equivalent of any  such  unpaid  amount  shall  be
    26  deducted from the benefit otherwise payable.
    27    7.  (i)  All additional member contributions required by this subdivi-
    28  sion (and any interest thereon) which are  received  by  the  retirement
    29  system  shall  be paid into its contingent reserve fund and shall be the
    30  property of the retirement system. Such additional member  contributions
    31  (and  any  interest  thereon)  shall not for any purpose be deemed to be
    32  member contributions or  accumulated  deductions  of  a  member  of  the
    33  retirement system under section 13-125 or section 13-162 of the adminis-
    34  trative code of the city of New York while he or she is a participant in
    35  the twenty-five year improved benefit retirement program or otherwise.
    36    (ii)  Should  a  participant  in the twenty-five year improved benefit
    37  retirement program, who has rendered less than five  years  of  credited
    38  service cease to hold a position as a water supply police member for any
    39  reason  whatsoever,  his  or  her accumulated additional member contrib-
    40  utions made pursuant to this subdivision  (together  with  any  interest
    41  thereon  paid  to  the  retirement system) which remain credited to such
    42  participant's account may be withdrawn by him or her pursuant to  proce-
    43  dures promulgated in regulations of the board of trustees of the retire-
    44  ment  system,  together  with  interest  thereon at the rate of interest
    45  required by law to  be  used  to  credit  interest  on  the  accumulated
    46  deductions of retirement system members compounded annually.
    47    (iii)  Notwithstanding any other provision of law to the contrary, (A)
    48  no person shall be permitted to withdraw from the retirement system  any
    49  additional member contributions paid pursuant to this subdivision or any
    50  interest  paid  thereon,  except  pursuant to and in accordance with the
    51  preceding subparagraphs of this paragraph; and (B) no person,  while  he
    52  or she is a participant in the twenty-five year improved benefit retire-
    53  ment  program, shall be permitted to withdraw any such additional member
    54  contributions or any interest  paid  thereon  pursuant  to  any  of  the
    55  preceding subparagraphs of this paragraph or otherwise.

        A. 7902--A                          9

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

        A. 7902--A                         10

     1    6.  "Administrative  code"  shall  mean the administrative code of the
     2  city of New York.
     3    b.  Participation  in twenty-five year retirement program. 1.  Subject
     4  to the provisions of paragraphs six and seven of this  subdivision,  any
     5  person  who  is a water supply police member on the starting date of the
     6  twenty-five year retirement program and who,  as  such  a  water  supply
     7  police member or otherwise last became subject to the provisions of this
     8  article  prior  to such starting date, may elect to become a participant
     9  in the twenty-five year retirement program by filing, within one hundred
    10  eighty days after the starting date of the twenty-five  year  retirement
    11  program,  a  duly  executed  application for such participation with the
    12  retirement system of which such person is a member, provided he  or  she
    13  is  such  a  water  supply police member on the date such application is
    14  filed.
    15    2. Subject to the provisions of  paragraphs  six  and  seven  of  this
    16  subdivision,  any  person who becomes a water supply police member after
    17  the starting date of the twenty-five year retirement program and who, as
    18  such a water supply police member or otherwise, last became  subject  to
    19  the provisions of this article prior to such starting date, may elect to
    20  become  a  participant  in  the  twenty-five  year retirement program by
    21  filing, within one hundred eighty  days  after  becoming  such  a  water
    22  supply police member, a duly executed application for such participation
    23  with  the  retirement system for which such person is a member, provided
    24  he or she is such a water supply police member on the date such applica-
    25  tion is filed.
    26    3. Any election to be a participant in the twenty-five year retirement
    27  program shall be irrevocable.
    28    4. Each  water  supply  police  member  who  becomes  subject  to  the
    29  provisions  of this article on or after the starting date of the twenty-
    30  five year retirement program shall become a participant in  the  twenty-
    31  five  year retirement program on the date he or she becomes such a water
    32  supply police member. Provided, however, a person subject to this  para-
    33  graph who has exceeded age thirty upon employment as such a member shall
    34  be  exempt from participation in the twenty-five year retirement program
    35  if such person elects not to participate by filing a duly executed  form
    36  with  the  retirement  system within one hundred eighty days of becoming
    37  such a member.
    38    5. Where any participant in the twenty-five  year  retirement  program
    39  shall  cease  to  be  employed by the city of New York as a water supply
    40  police member, he or she shall cease  to  be  such  a  participant  and,
    41  during  any  period  in  which such person is not so employed, he or she
    42  shall not be a participant in the twenty-five  year  retirement  program
    43  and  shall  not  be  eligible  for the benefits of subdivision c of this
    44  section.
    45    6. Where any participant in the twenty-five  year  retirement  program
    46  terminates  service  as a water supply police member and returns to such
    47  service as a water supply police member at a later date, he or she shall
    48  again become such a participant on that date.
    49    7. Notwithstanding any other provision of law  to  the  contrary,  any
    50  person  who  is eligible to elect to become a participant in the twenty-
    51  five year retirement program pursuant to paragraph one or  two  of  this
    52  subdivision  for  the full one hundred eighty day period provided for in
    53  such applicable paragraph and who fails to timely file a  duly  executed
    54  application for such participation with the retirement system, shall not
    55  thereafter be eligible to become a participant in such program.

        A. 7902--A                         11

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

        A. 7902--A                         12

     1    e. Additional member contributions.  1.  In  addition  to  the  member
     2  contributions  required by section six hundred thirteen of this article,
     3  each participant  in  the  twenty-five  year  retirement  program  shall
     4  contribute  to  the  retirement  system  of  which he or she is a member
     5  (subject  to  the  applicable provisions of subdivision d of section six
     6  hundred thirteen of this article) an additional six percent  of  his  or
     7  her  compensation earned from (i) all credited service, as a participant
     8  in the twenty-five year retirement program, rendered  on  or  after  the
     9  starting  date  of the twenty-five year retirement program, and (ii) all
    10  credited service after such person  ceases  to  be  a  participant,  but
    11  before  he  or she again becomes a participant pursuant to paragraph six
    12  of subdivision b of this section. The additional contributions  required
    13  by  this subdivision shall be in lieu of additional member contributions
    14  required by subdivision d of section six hundred four-c of this article,
    15  as added by chapter ninety-six of the laws of nineteen  hundred  ninety-
    16  five,  and no member making contributions pursuant to this section shall
    17  be required to make contributions pursuant  to  such  subdivision  d  of
    18  section six hundred four-c of this article.
    19    2.  A  participant  in  the  twenty-five year retirement program shall
    20  contribute additional member contributions until the later  of  (i)  the
    21  first  anniversary  of the starting date of the twenty-five year retire-
    22  ment program, or (ii) the date on which he or she completes thirty years
    23  of credited service as a water supply police member.
    24    3. Commencing with the first full payroll  period  after  each  person
    25  becomes  a participant in the twenty-five year retirement program, addi-
    26  tional member contributions at the rate specified in  paragraph  one  of
    27  this subdivision shall be deducted (subject to the applicable provisions
    28  of  subdivision  d of section six hundred thirteen of this article) from
    29  the compensation of such participant on each and every payroll  of  such
    30  participant  for  each  and  every payroll period for which he or she is
    31  such a participant.
    32    4. (i) Each participant in the  twenty-five  year  retirement  program
    33  shall  be charged with a contribution deficiency consisting of the total
    34  amounts of additional member contributions such person  is  required  to
    35  make  pursuant  to  paragraphs one and two of this subdivision which are
    36  not deducted from his or her compensation pursuant to paragraph three of
    37  this subdivision, if any, together  with  interest  thereon,  compounded
    38  annually,  and  computed  in  accordance with the provisions of subpara-
    39  graphs (ii) and (iii) of this paragraph.
    40    (ii) (A) The interest required to be paid on each such  amount  speci-
    41  fied  in subparagraph (i) of this paragraph shall accrue from the end of
    42  the payroll period for which such amount would have been  deducted  from
    43  compensation  if  he  or  she had been a participant at the beginning of
    44  that payroll period and  such  deduction  had  been  required  for  such
    45  payroll period, until such amount is paid to the retirement system.
    46    (B)  The rate of interest to be applied to each such amount during the
    47  period for which interest accrues on that amount shall be equal  to  the
    48  rate  or  rates  of interest required by law to be used during that same
    49  period to credit interest on the accumulated  deductions  of  retirement
    50  system members.
    51    (iii)  Except as otherwise provided in paragraph five of this subdivi-
    52  sion, no interest shall be due on any unpaid additional member  contrib-
    53  utions  which  are  not attributable to a period prior to the first full
    54  payroll period referred to in paragraph three of this subdivision.
    55    5. (i) Should any person who, pursuant to subparagraph (ii)  of  para-
    56  graph ten of this subdivision, has received a refund of his or her addi-

        A. 7902--A                         13

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

        A. 7902--A                         14

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

        A. 7902--A                         15

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

        A. 7902--A                         16

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

        A. 7902--A                         17

     1  mum  service  requirements  upon retirement and attainment of age sixty-
     2  two, other than members who are eligible for  early  service  retirement
     3  pursuant to subdivision c of section six hundred four-b of this article,
     4  subdivision c of section six hundred four-c of this article, subdivision
     5  d  of  section  six  hundred  four-d  of  this article, subdivision c of
     6  section six hundred four-e of this article, subdivision c of section six
     7  hundred four-f of this article, subdivision c  of  section  six  hundred
     8  four-g  of  this article, subdivision c of section six hundred four-h of
     9  this article [or], subdivision c of section six hundred four-i  of  this
    10  article, or subdivision c of section six hundred four-j of this article,
    11  provided,  however, a member of a teachers' retirement system or the New
    12  York state and local employees' retirement system who first  joins  such
    13  system  before  January  first,  two  thousand  ten or a member who is a
    14  uniformed court officer or peace officer employed by the  unified  court
    15  system  who  first  becomes  a  member  of  the New York state and local
    16  employees' retirement system before April first, two thousand twelve may
    17  retire without reduction of his or her retirement benefit  upon  attain-
    18  ment  of  at  least  fifty-five years of age and completion of thirty or
    19  more years of service, provided, however, that a uniformed court officer
    20  or peace officer employed by the unified court system who first  becomes
    21  a member of the New York state and local employees' retirement system on
    22  or  after  January first, two thousand ten and retires without reduction
    23  of his or her retirement benefit upon attainment of at least  fifty-five
    24  years  of age and completion of thirty or more years of service pursuant
    25  to this section shall be  required  to  make  the  member  contributions
    26  required  by subdivision f of section six hundred thirteen of this arti-
    27  cle for all years of credited and creditable service,  provided  further
    28  that  the [the] preceding provisions of this subdivision shall not apply
    29  to a New York city revised plan member.
    30    § 12. Nothing contained in sections six and eleven of this  act  shall
    31  be  construed to create any contractual right with respect to members to
    32  whom such sections apply.  The provisions of such sections are  intended
    33  to  afford  members  the advantages of certain benefits contained in the
    34  Internal Revenue Code, and  the  effectiveness  and  existence  of  such
    35  sections and benefits they confer are completely contingent thereon.
    36    § 13. This act shall take effect immediately, provided, however that:
    37    (a)  The  amendments to subdivision a of section 603 of the retirement
    38  and social security law made by section eleven of  this  act  shall  not
    39  affect the expiration of such subdivision as provided in subdivision (b)
    40  of section 13 of chapter 682 of the laws of 2003, and shall expire ther-
    41  ewith;
    42    (b)  The  provisions  of section six of this act shall remain in force
    43  and effect only so long  as,  pursuant  to  federal  law,  contributions
    44  picked  up  under  section 613 of the retirement and social security law
    45  are not includable as gross income of a member for  federal  income  tax
    46  purposes until distributed or made available to the member; and
    47    (c)  The  amendments to provisions of section 13-125.2 of the adminis-
    48  trative code of the city of New York made by sections seven, eight, nine
    49  and ten of this act shall not affect the expiration of  such  provisions
    50  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
        Tiers  2,  4,  and 6 New York City Employees' Retirement System (NYCERS)

        A. 7902--A                         18

        members who are employed in  the  title  of  Water  Supply  Police  (WSP
        25-Year Plans).
          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."
          Participation in an applicable 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 on the  date  of  enactment  and  subsequently  becomes
        employed as a Water Supply Police Member also has 180 days upon becoming
        such a member to elect to join the applicable WSP 25-Year Plan.
          Any  Water  Supply Police Member who becomes a NYCERS member after the
        date of enactment is mandated into the Tier 6 WSP 25-Year Plan. However,
        if the member exceeds age 30 upon being mandated into  the  WSP  25-Year
        Plan, the member has the option to file an application 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 is
        currently  only one active Tier 2 Water Supply Police Member, who is not
        expected to  benefit  from  the  proposed  legislation.  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 Plans:
          * Service retirement benefit:
          o 50% of Final Average Salary (FAS) for the first 25 years of Credited
        Service, plus
          o 2% of FAS for each additional year of Credited Service up to a maxi-
        mum of 30 years of such service.
          * Final Average Salary:
          o Tier 4 - Three-Year Average (FAS3)
          o Tier 6 - Five-Year Average (FAS5)
          * Vested benefit:
          o Eligibility is:
          X  At least five, but less than 25, years of Credited Service for Tier
        4 and Tier 6 members.
          o Payable at:
          X The date the member  would  have  completed  25  years  of  Credited
        Service for Tier 4 and Tier 6 members.
          o Amount:
          X 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 a 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%  of
        compensation  for  all  service  as  a Plan participant on and after the

        A. 7902--A                         19

        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 Plans 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  $7.3  million  and increase the Present Value of member contrib-
        utions by approximately $3.7 million. The net result is an  increase  in
        the Present Value of future employer contributions of approximately $3.6
        million.
          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 $3.6 million plus the increase
        in the Present Value of future employer Normal Cost of  less  than  $0.1
        million.
          FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
        ACCNY Section 13-638.2(k-2), new UAL attributable to benefit changes are
        to be amortized as determined by the Actuary but are generally amortized
        over the remaining working lifetime of those  impacted  by  the  benefit
        changes.  As  of  June  30,  2021, the remaining working lifetime of the
        Water Supply Police Members assumed to join the  WSP  25-Year  Plans  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  (OYLM))  using  level  dollar  payments.  This  payment  plus the
        increase in the Normal Cost results in an increase  in  annual  employer
        contributions of approximately $856,000 each year.
          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 Preliminary June 30, 2022 actuarial  valuation  of
        NYCERS.  In accordance with the OYLM used to determine employer contrib-
        utions, the increase in employer contributions would first be  reflected
        in Fiscal Year 2024.
          CENSUS  DATA:  The  estimates presented herein are based on the census
        data used in the Preliminary June 30, 2021 (Lag) actuarial valuation  of
        NYCERS  to  determine the Preliminary Fiscal Year 2023 employer contrib-
        utions.
          The 126 Water Supply Police Members as of June  30,  2021  assumed  to
        join  the  WSP  25-Year  Plans  had an average age of approximately 39.8
        years, average service of approximately 14.7 years, and an average sala-
        ry of approximately $80,900.
          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 Preliminary June 30, 2021 (Lag) actuarial
        valuations used to determine the Preliminary Fiscal Year  2023  employer
        contributions 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 from WSP 25-Year Plan  partic-
        ipation.  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 applicable
        WSP 25-Year Plan. If the net Present Value of future employer cost under

        A. 7902--A                         20

        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  from  Plan  participation  (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  otherwise participate in, absent this proposed legis-
        lation), and therefore 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 realization of the actuarial assumptions used, as well  as
        certain  demographic  characteristics  of  NYCERS  and  other  exogenous
        factors such as investment, contribution, and  other  risks.  If  actual
        experience  deviates  from actuarial assumptions, the actual costs could
        differ from those presented herein. Costs  are  also  dependent  on  the
        actuarial  methods used, and therefore different actuarial methods could
        produce different results. Quantifying these risks is beyond  the  scope
        of this Fiscal Note.
          Not measured in this Fiscal Note are the following:
          * The 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.
          STATEMENT OF ACTUARIAL OPINION: I, Michael J. Samet,  am  the  Interim
        Chief  Actuary  for,  and  independent  of, the New York City Retirement
        Systems and Pension Funds. I am a Fellow of the Society of Actuaries and
        a Member of the American Academy of 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 2022-42 dated May 4, 2022
        was  prepared  by  the  Interim  Chief  Actuary  for  the  New York City
        Employees’ Retirement System. This estimate is  intended  for  use  only
        during the 2022 Legislative Session.
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