Bill Text: NY A08269 | 2017-2018 | 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) 2018-03-28 - print number 8269a [A08269 Detail]

Download: New_York-2017-A08269-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         8269--A
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                      June 5, 2017
                                       ___________
        Introduced  by  M.  of  A. CUSICK, ORTIZ, HARRIS, PHEFFER AMATO, CROUCH,
          BYRNE, D'URSO, CASTORINA, GIGLIO -- Multi-Sponsored by  --  M.  of  A.
          COOK,  McDONOUGH,  SIMON,  TITONE  --  read  once  and referred to the
          Committee on Governmental Employees -- recommitted to the Committee on
          Governmental Employees in accordance with Assembly Rule 3, sec.  2  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted 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.
    11    § 2. Subdivision a of section 444 of the retirement and social securi-
    12  ty  law,  as amended by section 141 of subpart B of part C of chapter 62
    13  of the laws of 2011, is amended to read as follows:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11156-03-8

        A. 8269--A                          2
     1    a. Except as provided in subdivision c of section four hundred  forty-
     2  five-a  of  this  article,  subdivision c of section four hundred forty-
     3  five-b of this article, subdivision c of  section  four  hundred  forty-
     4  five-c   of   this  article,  subdivision  c  of  section  four  hundred
     5  forty-five-d  of  this article as added by chapter four hundred seventy-
     6  two of the laws  of  nineteen  hundred  ninety-five,  subdivision  c  of
     7  section  four  hundred  forty-five-e  of  this article, subdivision c of
     8  section four hundred forty-five-f of this article and subdivision  c  of
     9  section  four hundred forty-five-h of this article, and subdivision c of
    10  section four hundred forty-five-j of this article, the  maximum  retire-
    11  ment benefit computed without optional modification provided to a member
    12  of a retirement system who is subject to the provisions of this article,
    13  other  than  a  police officer, a firefighter, an investigator member of
    14  the New  York  city  employees'  retirement  system,  a  member  of  the
    15  uniformed  personnel  in  institutions under the jurisdiction of the New
    16  York city department of correction who receives a  performance  of  duty
    17  disability  retirement allowance, a member of the uniformed personnel in
    18  institutions under the jurisdiction of the department of corrections and
    19  community supervision or a security  hospital  treatment  assistant,  as
    20  those  terms are defined in subdivision i of section eighty-nine of this
    21  chapter, who receives a performance of duty disability retirement allow-
    22  ance, a member of a teachers' retirement system, New York  city  employ-
    23  ees'  retirement  system,  New  York  city board of education retirement
    24  system or a member of the New York state and local employees' retirement
    25  system or a member of the New York city employees' retirement system  or
    26  New York city board of education retirement system employed as a special
    27  officer,  parking  control specialist, school safety agent, campus peace
    28  officer, taxi and limousine  inspector  [or],  a  police  communications
    29  member,  or  a  member  of  the  water  supply police and who receives a
    30  performance of duty disability pension,  from  funds  other  than  those
    31  based on a member's own or increased-take-home-pay contributions, shall,
    32  before  any  reduction  for early retirement, be sixty per centum of the
    33  first fifteen thousand three hundred dollars of  final  average  salary,
    34  and  fifty per centum of final average salary in excess of fifteen thou-
    35  sand three hundred dollars, and forty per centum of final average salary
    36  in excess of twenty-seven  thousand  three  hundred  dollars,  provided,
    37  however,  that  the  benefits  provided by subdivision c of section four
    38  hundred forty-five-d of this article as added by  chapter  four  hundred
    39  seventy-two  of  the laws of nineteen hundred ninety-five based upon the
    40  additional member  contributions  required  by  subdivision  d  of  such
    41  section  four  hundred  forty-five-d  shall  be  subject  to the maximum
    42  retirement benefit computations set forth in this section.  The  maximum
    43  retirement  benefit  computed without optional modification payable to a
    44  police officer, an investigator member of the New York  city  employees'
    45  retirement  system  or  a  firefighter  shall  equal  that  payable upon
    46  completion of thirty years of service, except that the  maximum  service
    47  retirement  benefit  computed  without optional modification shall equal
    48  that payable upon completion of thirty-two years of service.
    49    § 3. Subdivision a of section 445 of the retirement and social securi-
    50  ty law, as amended by chapter 295 of the laws of  2007,  is  amended  to
    51  read as follows:
    52    a.  No  member of a retirement system who is subject to the provisions
    53  of this article shall retire without regard to age, exclusive of retire-
    54  ment for disability, unless he is a policeman, an investigator member of
    55  the New York city  employees'  retirement  system,  fireman,  correction
    56  officer,  a  qualifying  member  as defined in section eighty-nine-t, as

        A. 8269--A                          3
     1  added by chapter six hundred fifty-seven of the laws of nineteen hundred
     2  ninety-eight,  of  this  chapter,  sanitation  man,  a  special  officer
     3  (including  persons  employed by the city of New York in the title urban
     4  park ranger or associate urban park ranger), school safety agent, campus
     5  peace officer or a taxi and limousine commission inspector member of the
     6  New York city employees' retirement system or the New York city board of
     7  education  retirement  system,  a dispatcher member of the New York city
     8  employees' retirement system, a police communications member of the  New
     9  York  city  employees'  retirement  system, a member of the water supply
    10  police in a position referred to in paragraph (o) of  subdivision  thir-
    11  ty-four  of section 1.20 of the criminal procedure law, an EMT member of
    12  the New York city employees' retirement system, a deputy sheriff  member
    13  of  the New York city employees' retirement system, a correction officer
    14  of the Westchester county correction department as  defined  in  section
    15  eighty-nine-e  of  this chapter or employed in Suffolk county as a peace
    16  officer, as defined in section eighty-nine-s, as added by  chapter  five
    17  hundred  eighty-eight  of  the laws of nineteen hundred ninety-seven, of
    18  this chapter, employed in Suffolk county as  a  correction  officer,  as
    19  defined  in section eighty-nine-f of this chapter, or employed in Nassau
    20  county as a correction officer, uniformed correction division personnel,
    21  sheriff, undersheriff or deputy sheriff, as defined in  section  eighty-
    22  nine-g  of  this  chapter,  or employed in Nassau county as an ambulance
    23  medical technician, an  ambulance  medical  technician/supervisor  or  a
    24  member  who  performs  ambulance medical technician related services, as
    25  defined in section eighty-nine-s, as amended  by  chapter  five  hundred
    26  seventy-eight  of  the  laws  of  nineteen hundred ninety-eight, of this
    27  chapter, or employed in Nassau county as a peace officer, as defined  in
    28  section  eighty-nine-s,  as added by chapter five hundred ninety-five of
    29  the laws of nineteen hundred ninety-seven, of this chapter, or  employed
    30  in  Albany county as a sheriff, undersheriff, deputy sheriff, correction
    31  officer or identification officer, as defined in  section  eighty-nine-h
    32  of  this  chapter  or  is  employed in St. Lawrence county as a sheriff,
    33  undersheriff, deputy  sheriff  or  correction  officer,  as  defined  in
    34  section  eighty-nine-i  of this chapter or is employed in Orleans county
    35  as a sheriff, undersheriff, deputy sheriff  or  correction  officer,  as
    36  defined  in  section  eighty-nine-l  of  this  chapter or is employed in
    37  Jefferson  county  as  a  sheriff,  undersheriff,  deputy   sheriff   or
    38  correction  officer, as defined in section eighty-nine-j of this chapter
    39  or is employed in Onondaga county  as  a  deputy  sheriff-jail  division
    40  competitively  appointed  or  as  a  correction  officer,  as defined in
    41  section eighty-nine-k of this chapter or is employed in a  county  which
    42  makes  an  election under subdivision j of section eighty-nine-p of this
    43  chapter as a sheriff, undersheriff, deputy sheriff or correction officer
    44  as defined in such section eighty-nine-p or is employed in Broome County
    45  as a sheriff, undersheriff, deputy sheriff  or  correction  officer,  as
    46  defined  in  section eighty-nine-m of this chapter or is a Monroe county
    47  deputy sheriff-court security, or deputy sheriff-jailor  as  defined  in
    48  section  eighty-nine-n, as added by chapter five hundred ninety-seven of
    49  the laws of nineteen hundred ninety-one, of this chapter or is  employed
    50  in   Greene  county  as  a  sheriff,  undersheriff,  deputy  sheriff  or
    51  correction officer, as defined in section eighty-nine-o of this  chapter
    52  or  is  a  traffic officer with the town of Elmira as defined in section
    53  eighty-nine-q of this chapter or is employed by Suffolk county as a park
    54  police officer, as defined in section eighty-nine-r of this  chapter  or
    55  is  a peace officer employed by a county probation department as defined
    56  in section eighty-nine-t, as added by chapter six hundred three  of  the

        A. 8269--A                          4
     1  laws of nineteen hundred ninety-eight, of this chapter or is employed in
     2  Rockland  county as a deputy sheriff-civil as defined in section eighty-
     3  nine-v of this chapter as added by chapter four hundred forty-one of the
     4  laws of two thousand one, or is employed in Rockland county as a superi-
     5  or  correction officer as defined in section eighty-nine-v of this chap-
     6  ter as added by chapter five hundred fifty-six of the laws of two  thou-
     7  sand one or is a paramedic employed by the police department in the town
     8  of  Tonawanda  and retires under the provisions of section eighty-nine-v
     9  of this chapter, as added by chapter four  hundred  seventy-two  of  the
    10  laws  of two thousand one, or is a county fire marshal, supervising fire
    11  marshal, fire marshal, assistant  fire  marshal,  assistant  chief  fire
    12  marshal  or  chief  fire  marshal  employed  by  the county of Nassau as
    13  defined in section eighty-nine-w of this chapter and is in a plan  which
    14  permits  immediate  retirement  upon completion of a specified period of
    15  service without regard to age. Except as provided in  subdivision  c  of
    16  section  four  hundred  forty-five-a  of  this article, subdivision c of
    17  section four hundred forty-five-b of  this  article,  subdivision  c  of
    18  section  four  hundred  forty-five-c  of  this article, subdivision c of
    19  section four hundred forty-five-d of  this  article,  subdivision  c  of
    20  section  four  hundred  forty-five-e  of  this article, subdivision c of
    21  section four hundred forty-five-f of this article [and],  subdivision  c
    22  of  section four hundred forty-five-h of this article, and subdivision c
    23  of section four hundred forty-five-j of this article, a member in such a
    24  plan and such an occupation, other  than  a  policeman  or  investigator
    25  member  of  the New York city employees' retirement system or a fireman,
    26  shall not be permitted to retire prior to the completion of  twenty-five
    27  years  of  credited service; provided, however, if such a member in such
    28  an occupation is in a plan which permits retirement upon  completion  of
    29  twenty years of service regardless of age, he may retire upon completion
    30  of twenty years of credited service and prior to the completion of twen-
    31  ty-five  years  of  service, but in such event the benefit provided from
    32  funds other than those based on such a member's own contributions  shall
    33  not exceed two per centum of final average salary per each year of cred-
    34  ited service.
    35    § 4. The retirement and social security law is amended by adding a new
    36  section 445-j to read as follows:
    37    § 445-j. Optional twenty-five year improved benefit retirement program
    38  for water supply police members. a. Definitions. The following words and
    39  phrases as used in this section shall have the following meanings unless
    40  a different meaning is plainly required by the context.
    41    1. "Retirement system" shall mean the New York city employees' retire-
    42  ment system.
    43    2.  "Water supply police member" shall mean a member of the retirement
    44  system who is subject to the provisions of this article, who is employed
    45  by the city of New York in a position referred to by  paragraph  (o)  of
    46  subdivision thirty-four of section 1.20 of the criminal procedure law.
    47    3.  "Twenty-five  year improved benefit retirement program" shall mean
    48  all the terms and conditions of this section.
    49    4. "Starting date of the twenty-five year improved benefit  retirement
    50  program"  shall mean the effective date of this section, as such date is
    51  certified pursuant to section forty-one of the legislative law.
    52    5. "Participant in the twenty-five year  improved  benefit  retirement
    53  program" shall mean any water supply police member who, under the appli-
    54  cable  provisions  of  subdivision b of this section, is entitled to the
    55  rights, benefits and privileges and is subject to the obligations of the

        A. 8269--A                          5
     1  twenty-five year improved benefit retirement program, as  applicable  to
     2  him or her.
     3    6.  "Administrative  code"  shall  mean the administrative code of the
     4  city of New York.
     5    7. "Accumulated  deductions"  shall  mean  accumulated  deductions  as
     6  defined  in  subdivision  eleven of section 13-101 of the administrative
     7  code.
     8    8. "Optional retirement provisions" shall mean the right to retire and
     9  receive a retirement allowance under this section upon the completion of
    10  twenty-five years of credited service.
    11    b. Election of twenty-five year improved benefit  retirement  program.
    12  1. Subject to the provisions of paragraphs five and six of this subdivi-
    13  sion,  any  person  who  is a water supply police member on the starting
    14  date of the twenty-five year improved  benefit  retirement  program  may
    15  elect  to  become a participant in the twenty-five year improved benefit
    16  retirement program by filing, within one hundred eighty days after  such
    17  starting  date,  a duly executed application for such participation with
    18  the retirement system, provided he or she is such a water supply  police
    19  member on the date such application is filed.
    20    2. Subject to the provisions of paragraphs five and six of this subdi-
    21  vision,  any  person  who becomes a water supply police member after the
    22  starting date  of  the  twenty-five  year  improved  benefit  retirement
    23  program  may  elect  to  become  a  participant  in the twenty-five year
    24  improved benefit retirement program by filing, within one hundred eighty
    25  days after becoming such a water supply police member, a  duly  executed
    26  application  for such participation with the retirement system, provided
    27  he or she is such a water supply police member on the date such applica-
    28  tion is filed.
    29    3. Any election to be a participant in the twenty-five  year  improved
    30  benefit retirement program shall be irrevocable.
    31    4.  Where  any  participant  in  the twenty-five year improved benefit
    32  retirement program shall cease to hold a  position  as  a  water  supply
    33  police  member,  he  or  she  shall  cease to be such a participant and,
    34  during any period in which such a person does  not  hold  such  a  water
    35  supply  police  position,  he  or  she shall not be a participant in the
    36  twenty-five year improved benefit retirement program and  shall  not  be
    37  eligible for the benefits of subdivision c of this section.
    38    5.  Where  any  participant  in  the twenty-five year improved benefit
    39  retirement program terminates service as a water  supply  police  member
    40  and  returns  to such service as a water supply police member at a later
    41  date, he or she shall again become such a participant on that date.
    42    6. Notwithstanding any other provision of law  to  the  contrary,  any
    43  person  who  is eligible to become a participant in the twenty-five year
    44  improved benefit retirement program pursuant to paragraph one or two  of
    45  this subdivision for the full one hundred eighty day period provided for
    46  in  such  applicable  paragraph  and  who  fails  to  timely file a duly
    47  executed application for such participation with the retirement  system,
    48  shall  not  thereafter  be  eligible  to  become  a  participant in such
    49  program.
    50    c. Service retirement benefits. Notwithstanding any other provision of
    51  law to the  contrary,  where  a  participant  in  the  twenty-five  year
    52  improved  benefit  retirement  program, who is otherwise qualified for a
    53  retirement allowance pursuant to the optional retirement provisions  set
    54  forth  in  subdivision a of this section, has made and/or paid, while he
    55  or she is a water supply police member, all additional  member  contrib-

        A. 8269--A                          6
     1  utions  and interest (if any) required by subdivision d of this section,
     2  then:
     3    1.  that participant, while he or she remains a participant, shall not
     4  be subject to the provisions of subdivision a of  section  four  hundred
     5  forty-five of this article; and
     6    2.  if  that  participant,  while  such  a  participant,  retires from
     7  service, he or she shall not be subject to  the  provisions  of  section
     8  four hundred forty-four of this article; and
     9    3.  his  or her retirement allowance shall be an amount, on account of
    10  the required minimum period of service, equal to the sum of (i) an annu-
    11  ity  which  shall  be  the  actuarial  equivalent  of  the   accumulated
    12  deductions  from  his  or her pay during such period, (ii) a pension for
    13  increased-take-home-pay which shall be the actuarial equivalent  of  the
    14  reserve  for  increased-take-home-pay to which he or she may be entitled
    15  for such period, and (iii) a pension which, when added to  such  annuity
    16  and  such  pension  for  increased-take-home-pay,  produces a retirement
    17  allowance equal to fifty percent of his or  her  final  average  salary,
    18  plus  an  amount for each additional year of allowable service, or frac-
    19  tion thereof, beyond such required minimum period of  service  equal  to
    20  two percent of his or her final average salary; and
    21    4.  the maximum retirement benefit computed without optional modifica-
    22  tion payable to that participant upon his or her retirement for  service
    23  as such a participant shall equal that payable upon completion of thirty
    24  years of service.
    25    d.  Additional  member  contributions.  1.  In  addition to the member
    26  contributions required pursuant to section 13-125 or section  13-162  of
    27  the  administrative  code,  each  participant  in  the  twenty-five year
    28  improved benefit retirement program shall  contribute,  subject  to  the
    29  applicable provisions of section 13-125.2 of the administrative code, an
    30  additional  six  percent  of his or her compensation earned from (i) all
    31  credited service, as a participant  in  the  twenty-five  year  improved
    32  benefit  retirement  program, rendered on and after the starting date of
    33  the improved benefit retirement program, and (ii) all  credited  service
    34  after such person ceases to be a participant, but before he or she again
    35  becomes  a  participant  pursuant  to paragraph five of subdivision b of
    36  this section. A participant in the  twenty-five  year  improved  benefit
    37  retirement  program  shall  contribute  additional  member contributions
    38  until the later of (i) the date as of which he or  she  is  eligible  to
    39  retire  with twenty-five years of credited service under such retirement
    40  program, or (ii) the first anniversary of the starting date of the twen-
    41  ty-five  year  improved  benefit  retirement  program.  The   additional
    42  contributions  required by this paragraph shall be in lieu of additional
    43  member contributions required by subdivision d of section  four  hundred
    44  forty-five-d of this article, as added by chapter ninety-six of the laws
    45  of  nineteen  hundred  ninety-five,  and  no  member  paying  additional
    46  contributions pursuant to this section shall be required  to  pay  addi-
    47  tional  contributions  pursuant  to  such  subdivision d of section four
    48  hundred forty-five-d of this article.
    49    2. Commencing with the first full payroll  period  after  each  person
    50  becomes  a  participant in the twenty-five year improved benefit retire-
    51  ment program, additional member contributions at the rate  specified  in
    52  paragraph  one  of  this  subdivision  shall be deducted, subject to the
    53  applicable provisions of section 13-125.2 of  the  administrative  code,
    54  from  the  compensation of such participant on each and every payroll of
    55  such participant for each and every payroll period for which he  or  she
    56  is such a participant.

        A. 8269--A                          7
     1    3.  (i)  Subject  to the provisions of subparagraph (ii) of this para-
     2  graph, where any additional member contributions required  by  paragraph
     3  one  of this subdivision are not paid by deductions from a participant's
     4  compensation pursuant to paragraph two of this subdivision:
     5    (A)  that  participant shall be charged with a contribution deficiency
     6  consisting of such  unpaid  amounts,  together  with  interest  thereon,
     7  compounded annually; and
     8    (B)  such  interest  on  each amount of undeducted contributions shall
     9  accrue from the end of the payroll period for which  such  amount  would
    10  have been deducted from compensation if he or she had been a participant
    11  at  the  beginning  of  that payroll period and such deductions had been
    12  required for such payroll period  until  such  amount  is  paid  to  the
    13  retirement system; and
    14    (C)  (1)interest  on  each  such amount included in such participant's
    15  contribution deficiency pursuant to this subparagraph  shall  be  calcu-
    16  lated  as if such additional member contributions never had been paid by
    17  such participant, and such interest shall accrue from  the  end  of  the
    18  payroll  period  to  which  an amount of such additional member contrib-
    19  utions is attributable, compounded annually, until such amount  is  paid
    20  to the retirement system.
    21    (2)  the rate of interest to be applied to each such amount during the
    22  period for which interest accrues on that amount shall be equal  to  the
    23  rate  or  rates  of interest required by law to be used during that same
    24  period to credit interest on the accumulated  deductions  of  retirement
    25  system members.
    26    (ii)  Except  as  provided in subparagraph (iii) of this paragraph, no
    27  interest shall be due on any unpaid additional contributions  which  are
    28  not  attributable  to  the period prior to the first full payroll period
    29  referred to in paragraph two of this subdivision.
    30    (iii) Should any person who,  pursuant  to  paragraph  seven  of  this
    31  subdivision,  has withdrawn any additional member contributions (and any
    32  interest paid thereon) again become a  participant  in  the  twenty-five
    33  year  improved  benefit retirement program pursuant to paragraph five of
    34  subdivision b of this section, an appropriate amount shall  be  included
    35  in such participant's contribution deficiency (including interest there-
    36  on as calculated pursuant to subclause two of clause (C) of subparagraph
    37  (i)  of  this  paragraph) for any credited service with respect to which
    38  such  person  received  a  refund  of  additional  member  contributions
    39  (including  any  amount  of  an  unpaid loan balance deemed to have been
    40  returned to such person pursuant to paragraph  seven  of  this  subdivi-
    41  sion), as if such additional member contributions never had been paid.
    42    4. The board of trustees of the retirement system may, consistent with
    43  the  provisions  of  this  subdivision,  promulgate  regulations for the
    44  payment of the additional member contributions required by this subdivi-
    45  sion, and any interest thereon, by a participant in the twenty-five year
    46  improved benefit retirement program (including  the  deduction  of  such
    47  contributions, and any interest thereon, from his or her compensation).
    48    5.  Where  a participant who is otherwise eligible for service retire-
    49  ment pursuant to subdivision c of this section did  not,  prior  to  the
    50  effective  date  of  retirement, pay the entire amount of a contribution
    51  deficiency chargeable to him or her pursuant to paragraph three of  this
    52  subdivision,  or  repay  the entire amount of a loan of his or her addi-
    53  tional member contributions pursuant to paragraph eight of this subdivi-
    54  sion (including accrued interest on such loan), that participant, never-
    55  theless, shall be eligible to retire pursuant to subdivision c  of  this
    56  section,  provided, however, that where such participant is not entitled

        A. 8269--A                          8
     1  to a refund of additional member  contributions  pursuant  to  paragraph
     2  seven of this subdivision, such participant's service retirement benefit
     3  calculated  pursuant  to  the  applicable provisions of subdivision c of
     4  this  section  shall be reduced by a life annuity (calculated in accord-
     5  ance with the method set forth in subdivision i of section  six  hundred
     6  thirteen-b of this chapter) which is actuarially equivalent to:
     7    (i)  the  amount  of  any unpaid contribution deficiency chargeable to
     8  such member pursuant to paragraph three of this subdivision; plus
     9    (ii) the amount of any unpaid balance of a loan of his  or  her  addi-
    10  tional member contributions pursuant to paragraph eight of this subdivi-
    11  sion (including accrued interest on such loan).
    12    6.  Subject  to  the provisions of paragraph five of this subdivision,
    13  where a participant has not paid in  full  any  contribution  deficiency
    14  chargeable  to  him  or her pursuant to paragraph three of this subdivi-
    15  sion, and a benefit, other than  a  refund  of  a  member's  accumulated
    16  deductions  or  a  refund of additional member contributions pursuant to
    17  paragraph seven of this subdivision, becomes payable by  the  retirement
    18  system  to  the  participant  or to his or her designated beneficiary or
    19  estate, the actuarial equivalent of any  such  unpaid  amount  shall  be
    20  deducted from the benefit otherwise payable.
    21    7.  (i)  All additional member contributions required by this subdivi-
    22  sion (and any interest thereon) which are  received  by  the  retirement
    23  system  shall  be paid into its contingent reserve fund and shall be the
    24  property of the retirement system. Such additional member  contributions
    25  (and  any  interest  thereon)  shall not for any purpose be deemed to be
    26  member contributions or  accumulated  deductions  of  a  member  of  the
    27  retirement system under section 13-125 or section 13-162 of the adminis-
    28  trative  code  while  he or she is a participant in the twenty-five year
    29  improved benefit retirement program or otherwise.
    30    (ii) Should a participant in the  twenty-five  year  improved  benefit
    31  retirement  program,  who  has rendered less than five years of credited
    32  service cease to hold a position as a water supply police member for any
    33  reason whatsoever, his or her  accumulated  additional  member  contrib-
    34  utions  made  pursuant  to  this subdivision (together with any interest
    35  thereon paid to the retirement system) which  remain  credited  to  such
    36  participant's  account may be withdrawn by him or her pursuant to proce-
    37  dures promulgated in regulations of the board of trustees of the retire-
    38  ment system, together with interest thereon  at  the  rate  of  interest
    39  required  by  law  to  be  used  to  credit  interest on the accumulated
    40  deductions of retirement system members compounded annually.
    41    (iii) Notwithstanding any other provision of law to the contrary,  (A)
    42  no  person shall be permitted to withdraw from the retirement system any
    43  additional member contributions paid pursuant to this subdivision or any
    44  interest paid thereon, except pursuant to and  in  accordance  with  the
    45  preceding  subparagraphs  of this paragraph; and (B) no person, while he
    46  or she is a participant in the twenty-five year improved benefit retire-
    47  ment program, shall be permitted to withdraw any such additional  member
    48  contributions  or  any  interest  paid  thereon  pursuant  to any of the
    49  preceding subparagraphs of this paragraph or otherwise.
    50    8. A participant in the twenty-five year improved  benefit  retirement
    51  program  shall  be permitted to borrow from his or her additional member
    52  contributions, including any interest paid thereon, which  are  credited
    53  to the additional contributions account established for such participant
    54  in  the contingent reserve fund of the retirement system.  The borrowing
    55  from such additional member contributions  pursuant  to  this  paragraph
    56  shall be governed by the same rights, privileges, obligations and proce-

        A. 8269--A                          9
     1  dures  set forth in section six hundred thirteen-b of this chapter which
     2  govern the borrowing by members subject to article fifteen of this chap-
     3  ter of member contributions made pursuant to section six  hundred  thir-
     4  teen  of  this  chapter.  The board of trustees of the retirement system
     5  may,  consistent  with  the  provisions  of  this  subdivision  and  the
     6  provisions  of  section  six  hundred thirteen-b of this chapter as made
     7  applicable to this subdivision,  promulgate  regulations  governing  the
     8  borrowing of such additional member contributions.
     9    9.  Wherever  a  person  has an unpaid balance of a loan of his or her
    10  additional member contributions pursuant  to  paragraph  eight  of  this
    11  subdivision at the time he or she becomes entitled to a refund of his or
    12  her  additional  member  contributions  pursuant to subparagraph (ii) of
    13  paragraph seven of this subdivision, the  amount  of  such  unpaid  loan
    14  balance  (including  accrued  interest)  shall  be  deemed  to have been
    15  returned to such member, and the refund of such additional contributions
    16  shall be the net amount of such contributions,  together  with  interest
    17  thereon in accordance with the provisions of such subparagraph.
    18    10.  Notwithstanding  any  other provision of law to the contrary, the
    19  provisions of section one hundred thirty-eight-b of this  chapter  shall
    20  not  be  applicable  to  the  additional  member contributions which are
    21  required by this subdivision.
    22    11. Notwithstanding any other provision of law to  the  contrary,  the
    23  additional  member  contributions which are required by this subdivision
    24  shall not be reduced under any program for increased-take-home-pay.
    25    § 5. The retirement and social security law is amended by adding a new
    26  section 604-j to read as follows:
    27    § 604-j. Twenty-five year retirement program for water  supply  police
    28  members.  a.    Definitions.  The following words and phrases as used in
    29  this section shall have the following meanings unless a different  mean-
    30  ing is plainly required by the context.
    31    1.  "Water supply police member" shall mean a member of the retirement
    32  system who is employed by the city of New York in a position referred to
    33  by paragraph (o) of subdivision thirty-four of section 1.20 of the crim-
    34  inal procedure law.
    35    2. "Twenty-five year retirement program" shall mean all the terms  and
    36  conditions of this section.
    37    3.  "Starting  date  of the twenty-five year retirement program" shall
    38  mean the effective date of this  section,  as  such  date  is  certified
    39  pursuant to section forty-one of the legislative law.
    40    4. "Participant in the twenty-five year retirement program" shall mean
    41  any  water  supply police member who, under the applicable provisions of
    42  subdivision b of this section, is entitled to the rights,  benefits  and
    43  privileges  and  is  subject  to the obligations of the twenty-five year
    44  retirement program, as applicable to him or her.
    45    5. "Discontinued member" shall mean a participant in  the  twenty-five
    46  year  retirement  program who, while he or she was a water supply police
    47  member, discontinued service as such a member  and  has  a  right  to  a
    48  deferred vested benefit under subdivision d of this section.
    49    6.  "Administrative  code"  shall  mean the administrative code of the
    50  city of New York.
    51    b. Participation in twenty-five year retirement program. 1.    Subject
    52  to  the  provisions of paragraphs six and seven of this subdivision, any
    53  person who is a water supply police member on the starting date  of  the
    54  twenty-five  year  retirement  program  and  who, as such a water supply
    55  police member or otherwise last became subject to the provisions of this
    56  article prior to such starting date, may elect to become  a  participant

        A. 8269--A                         10
     1  in the twenty-five year retirement program by filing, within one hundred
     2  eighty  days  after the starting date of the twenty-five year retirement
     3  program, a duly executed application for  such  participation  with  the
     4  retirement  system  of which such person is a member, provided he or she
     5  is such a water supply police member on the  date  such  application  is
     6  filed.
     7    2.  Subject  to  the  provisions  of  paragraphs six and seven of this
     8  subdivision, any person who becomes a water supply police  member  after
     9  the starting date of the twenty-five year retirement program and who, as
    10  such  a  water supply police member or otherwise, last became subject to
    11  the provisions of this article prior to such starting date, may elect to
    12  become a participant in  the  twenty-five  year  retirement  program  by
    13  filing,  within  one  hundred  eighty  days  after becoming such a water
    14  supply police member, a duly executed application for such participation
    15  with the retirement system for which such person is a  member,  provided
    16  he or she is such a water supply police member on the date such applica-
    17  tion is filed.
    18    3. Any election to be a participant in the twenty-five year retirement
    19  program shall be irrevocable.
    20    4.  Each  water  supply  police  member  who  becomes  subject  to the
    21  provisions of this article on or after the starting date of the  twenty-
    22  five  year  retirement program shall become a participant in the twenty-
    23  five year retirement program on the date he or she becomes such a  water
    24  supply  police member. Provided, however, a person subject to this para-
    25  graph who has exceeded age thirty upon employment as such a member shall
    26  be exempt from participation in the twenty-five year retirement  program
    27  if  such person elects not to participate by filing a duly executed form
    28  with the retirement system within one hundred eighty  days  of  becoming
    29  such a member.
    30    5.  Where  any  participant in the twenty-five year retirement program
    31  shall cease to be employed by the city of New York  as  a  water  supply
    32  police  member,  he  or  she  shall  cease to be such a participant and,
    33  during any period in which such person is not so  employed,  he  or  she
    34  shall  not  be  a participant in the twenty-five year retirement program
    35  and shall not be eligible for the benefits  of  subdivision  c  of  this
    36  section.
    37    6.  Where  any  participant in the twenty-five year retirement program
    38  terminates service as a water supply police member and returns  to  such
    39  service as a water supply police member at a later date, he or she shall
    40  again become such a participant on that date.
    41    7.  Notwithstanding  any  other  provision of law to the contrary, any
    42  person who is eligible to elect to become a participant in  the  twenty-
    43  five  year  retirement  program pursuant to paragraph one or two of this
    44  subdivision for the full one hundred eighty day period provided  for  in
    45  such  applicable  paragraph and who fails to timely file a duly executed
    46  application for such participation with the retirement system, shall not
    47  thereafter be eligible to become a participant in such program.
    48    c. Service retirement benefits. 1. A participant  in  the  twenty-five
    49  year retirement program:
    50    (i)  who  has completed twenty-five or more years of credited service;
    51  and
    52    (ii) who has paid, before the effective date of retirement, all  addi-
    53  tional  member  contributions and interest (if any) required by subdivi-
    54  sion e of this section; and
    55    (iii) who files with the retirement system of which he  or  she  is  a
    56  member an application for service retirement setting forth at that time,

        A. 8269--A                         11
     1  not  less than thirty days subsequent to the execution and filing there-
     2  of, he or she desires to be retired; and
     3    (iv)  who  shall  be  a participant in the twenty-five year retirement
     4  program at the time so specified for his or  her  retirement;  shall  be
     5  retired  pursuant  to  the  provisions  of  this section affording early
     6  service retirement.
     7    2. (i) Notwithstanding any other provision of law to the contrary, and
     8  subject to the provisions of paragraph six  of  subdivision  e  of  this
     9  section,  the  early  service retirement benefit for participants in the
    10  twenty-five year retirement program who retire pursuant to paragraph one
    11  of this subdivision shall be a retirement allowance consisting of:
    12    (A) an amount, on account of the required minimum period  of  service,
    13  equal to fifty percent of his or her final average salary; plus
    14    (B)  an  amount  on  account of credited service, or fraction thereof,
    15  beyond such required minimum period of service equal to two  percent  of
    16  his or her final salary;
    17    (ii)  The  maximum  retirement  allowance  computed  without  optional
    18  modification payable pursuant to  subparagraph  (i)  of  this  paragraph
    19  shall equal that payable upon completion of thirty years of service.
    20    d.  Vesting.  1.  A  participant  in  the  twenty-five year retirement
    21  program:
    22    (i) who discontinues service as such  a  participant,  other  than  by
    23  death or retirement; and
    24    (ii)  who  prior  to such discontinuance, completed five but less than
    25  twenty-five years of credited service; and
    26    (iii) who, subject to the provisions of paragraph seven of subdivision
    27  e of this section, has paid, prior to  such  discontinuance,  all  addi-
    28  tional  member  contributions and interest (if any) required by subdivi-
    29  sion e of this section; and
    30    (iv) who does not withdraw in whole or in part his or her  accumulated
    31  member  contributions  pursuant  to section six hundred thirteen of this
    32  article unless such participant thereafter returns to public service and
    33  repays the amounts so withdrawn, together  with  interest,  pursuant  to
    34  such  section  six  hundred  thirteen;  shall  be  entitled to receive a
    35  deferred vested benefit as provided in this subdivision.
    36    2. (i) Upon such discontinuance under the conditions and in compliance
    37  with the provisions of paragraph one of this subdivision, such  deferred
    38  vested benefit shall vest automatically.
    39    (ii)  Such vested benefit shall become payable on the earliest date on
    40  which such discontinued member could have retired for  service  if  such
    41  discontinuance had not occurred.
    42    3.  Subject  to  the provisions of paragraph seven of subdivision e of
    43  this section, such deferred vested benefit shall be a retirement  allow-
    44  ance  consisting  of an amount equal to two percent of such discontinued
    45  member's final average salary, multiplied by  the  number  of  years  of
    46  credited service.
    47    e.  Additional  member  contributions.  1.  In  addition to the member
    48  contributions required by section six hundred thirteen of this  article,
    49  each  participant  in  the  twenty-five  year  retirement  program shall
    50  contribute to the retirement system of which  he  or  she  is  a  member
    51  (subject  to  the  applicable provisions of subdivision d of section six
    52  hundred thirteen of this article) an additional six percent  of  his  or
    53  her  compensation earned from (i) all credited service, as a participant
    54  in the twenty-five year retirement program, rendered  on  or  after  the
    55  starting  date  of the twenty-five year retirement program, and (ii) all
    56  credited service after such person  ceases  to  be  a  participant,  but

        A. 8269--A                         12
     1  before  he  or she again becomes a participant pursuant to paragraph six
     2  of subdivision b of this section. The additional contributions  required
     3  by  this subdivision shall be in lieu of additional member contributions
     4  required by subdivision d of section six hundred four-c of this article,
     5  as  added  by chapter ninety-six of the laws of nineteen hundred ninety-
     6  five, and no member making contributions pursuant to this section  shall
     7  be  required  to  make  contributions  pursuant to such subdivision d of
     8  section six hundred four-c of this article.
     9    2. A participant in the  twenty-five  year  retirement  program  shall
    10  contribute  additional  member  contributions until the later of (i) the
    11  first anniversary of the starting date of the twenty-five  year  retire-
    12  ment program, or (ii) the date on which he or she completes thirty years
    13  of credited service as a water supply police member.
    14    3.  Commencing  with  the  first full payroll period after each person
    15  becomes a participant in the twenty-five year retirement program,  addi-
    16  tional  member  contributions  at the rate specified in paragraph one of
    17  this subdivision shall be deducted (subject to the applicable provisions
    18  of subdivision d of section six hundred thirteen of this  article)  from
    19  the  compensation  of such participant on each and every payroll of such
    20  participant for each and every payroll period for which  he  or  she  is
    21  such a participant.
    22    4.  (i)  Each  participant  in the twenty-five year retirement program
    23  shall be charged with a contribution deficiency consisting of the  total
    24  amounts  of  additional  member contributions such person is required to
    25  make pursuant to paragraphs one and two of this  subdivision  which  are
    26  not deducted from his or her compensation pursuant to paragraph three of
    27  this  subdivision,  if  any,  together with interest thereon, compounded
    28  annually, and computed in accordance with  the  provisions  of  subpara-
    29  graphs (ii) and (iii) of this paragraph.
    30    (ii)  (A)  The interest required to be paid on each such amount speci-
    31  fied in subparagraph (i) of this paragraph shall accrue from the end  of
    32  the  payroll  period for which such amount would have been deducted from
    33  compensation if he or she had been a participant  at  the  beginning  of
    34  that  payroll  period  and  such  deduction  had  been required for such
    35  payroll period, until such amount is paid to the retirement system.
    36    (B) The rate of interest to be applied to each such amount during  the
    37  period  for  which interest accrues on that amount shall be equal to the
    38  rate or rates of interest required by law to be used  during  that  same
    39  period  to  credit  interest on the accumulated deductions of retirement
    40  system members.
    41    (iii) Except as otherwise provided in paragraph five of this  subdivi-
    42  sion,  no interest shall be due on any unpaid additional member contrib-
    43  utions which are not attributable to a period prior to  the  first  full
    44  payroll period referred to in paragraph three of this subdivision.
    45    5.  (i)  Should any person who, pursuant to subparagraph (ii) of para-
    46  graph ten of this subdivision, has received a refund of his or her addi-
    47  tional member contributions including any interest paid on such contrib-
    48  utions, again become a participant in the  twenty-five  year  retirement
    49  program  pursuant  to paragraph six of subdivision b of this section, an
    50  appropriate amount shall be included in such participant's  contribution
    51  deficiency (including interest thereon as calculated pursuant to subpar-
    52  agraph  (ii)  of this paragraph) for any credited service for which such
    53  person  received  a  refund  of  such  additional  member  contributions
    54  (including  any  amount  of  an  unpaid loan balance deemed to have been
    55  returned to such person pursuant to paragraph twelve  of  this  subdivi-
    56  sion), as if such additional member contributions never had been paid.

        A. 8269--A                         13
     1    (ii)  (A)  Interest on a participant's additional member contributions
     2  included in  such  participant's  contribution  deficiency  pursuant  to
     3  subparagraph  (i) of this paragraph shall be calculated as if such addi-
     4  tional member contributions had never been paid by such participant, and
     5  such  interest  shall accrue from the end of the payroll period to which
     6  an amount of such additional member contributions is attributable, until
     7  such amount is paid to the retirement system.
     8    (B) The rate of interest to be applied to each such amount during  the
     9  period  for  which interest accrues on that amount shall be five percent
    10  per annum, compounded annually.
    11    6. Where a participant who is otherwise eligible for  service  retire-
    12  ment  pursuant  to  subdivision  c of this section did not, prior to the
    13  effective date of retirement, pay the entire amount  of  a  contribution
    14  deficiency chargeable to him or her pursuant to paragraphs four and five
    15  of  this subdivision, or repay the entire amount of a loan of his or her
    16  additional member contributions pursuant to  paragraph  eleven  of  this
    17  subdivision (including accrued interest on such loan), that participant,
    18  nevertheless,  shall  be eligible to retire pursuant to subdivision c of
    19  this section, provided, however, that such participant's service retire-
    20  ment benefit calculated pursuant to paragraph two of such subdivision  c
    21  shall  be  reduced  by a life annuity (calculated in accordance with the
    22  method set forth in subdivision i of section six hundred  thirteen-b  of
    23  this article) which is actuarially equivalent to:
    24    (i)  the  amount  of  any unpaid contribution deficiency chargeable to
    25  such member pursuant to paragraphs four and five  of  this  subdivision;
    26  plus
    27    (ii)  the  amount  of any unpaid balance of a loan of his or her addi-
    28  tional member contributions pursuant to paragraph eleven of this  subdi-
    29  vision (including accrued interest on such loan).
    30    7. Where a participant who is otherwise eligible for a vested right to
    31  a  deferred  benefit  pursuant to subdivision d of this section did not,
    32  prior to the date of discontinuance of service, pay the entire amount of
    33  a contribution deficiency chargeable to him or  her  pursuant  to  para-
    34  graphs  four and five of this subdivision, or repay the entire amount of
    35  a loan of his or her additional member contributions pursuant  to  para-
    36  graph  eleven  of  this  subdivision (including accrued interest on such
    37  loan), that participant, nevertheless, shall be eligible  for  a  vested
    38  right  to  a deferred benefit pursuant to subdivision d of this section,
    39  provided, however, that the deferred vested benefit calculated  pursuant
    40  to  paragraph  three  of  such  subdivision d shall be reduced by a life
    41  annuity (calculated in accordance with the method set forth in  subdivi-
    42  sion i of section six hundred thirteen-b of this article) which is actu-
    43  arially equivalent to:
    44    (i)  the  amount  of  any unpaid contribution deficiency chargeable to
    45  such member pursuant to paragraphs four and five  of  this  subdivision;
    46  plus
    47    (ii)  the  amount  of any unpaid balance of a loan of his or her addi-
    48  tional member contributions pursuant to paragraph eleven of this  subdi-
    49  vision (including accrued interest on such loan).
    50    8.  The head of a retirement system which includes participants in the
    51  twenty-five year retirement program in its  membership  may,  consistent
    52  with  the provisions of this subdivision, promulgate regulations for the
    53  payment of such additional member contributions, and any interest there-
    54  on, by such participants (including the deduction of such contributions,
    55  and any interest thereon, from the participant's compensation).

        A. 8269--A                         14
     1    9. Subject to the provisions of  paragraphs  six  and  seven  of  this
     2  subdivision,  where  a participant has not paid in full any contribution
     3  deficiency chargeable to him or her pursuant to paragraphs four and five
     4  of this subdivision, and a  benefit,  other  than  a  refund  of  member
     5  contributions  pursuant  to section six hundred thirteen of this article
     6  or a refund of additional member contributions pursuant to  subparagraph
     7  (ii)  of  paragraph  ten of this subdivision, becomes payable under this
     8  article to the participant or to his or her  designated  beneficiary  or
     9  estate,  the  actuarial  equivalent  of  any such unpaid amount shall be
    10  deducted from the benefit otherwise payable.
    11    10. (i) Such additional member contributions (and any interest  there-
    12  on)  shall  be  paid  into the contingent reserve fund of the retirement
    13  system of which the participant is  a  member  and  shall  not  for  any
    14  purpose  be  deemed  to  be member contributions or accumulated contrib-
    15  utions of a member under section six hundred thirteen of this article or
    16  otherwise while he or she is  a  participant  in  the  twenty-five  year
    17  retirement program or otherwise.
    18    (ii)  Should  a participant in the twenty-five year retirement program
    19  who has rendered less than five years of credited service cease to  hold
    20  a  position  as  a water supply police member for any reason whatsoever,
    21  his or her accumulated additional member contributions made pursuant  to
    22  this subdivision (together with any interest thereon paid to the retire-
    23  ment  system)  may  be  withdrawn  by  him or her pursuant to procedures
    24  promulgated in regulations of the board of trustees  of  the  retirement
    25  system,  together  with interest thereon at the rate of five percent per
    26  annum, compounded annually.
    27    (iii) Notwithstanding any other provision of law to the contrary,  (A)
    28  no  person shall be permitted to withdraw from the retirement system any
    29  additional member contributions paid pursuant to this subdivision or any
    30  interest paid thereon, except pursuant to and  in  accordance  with  the
    31  preceding  subparagraphs  of this paragraph; and (B) no person, while he
    32  or she is a participant in  the  twenty-five  year  retirement  program,
    33  shall  be permitted to withdraw any such additional member contributions
    34  or any interest paid thereon pursuant to any of the  preceding  subpara-
    35  graphs of this paragraph or otherwise.
    36    11.  A participant in the twenty-five year retirement program shall be
    37  permitted to borrow from his  or  her  additional  member  contributions
    38  (including  any  interest  paid thereon) which are credited to the addi-
    39  tional contributions account established for  such  participant  in  the
    40  contingent  reserve  fund  of the retirement system.  The borrowing from
    41  such additional member contributions pursuant to this paragraph shall be
    42  governed by the rights, privileges, obligations and procedures set forth
    43  in section six hundred thirteen-b  of  this  article  which  govern  the
    44  borrowing  of  member contributions made pursuant to section six hundred
    45  thirteen of this article. The board of trustees of the retirement system
    46  may,  consistent  with  the  provisions  of  this  subdivision  and  the
    47  provisions  of  section  six  hundred thirteen-b of this article as made
    48  applicable to this subdivision,  promulgate  regulations  governing  the
    49  borrowing of such additional member contributions.
    50    12.  Whenever  a  person has an unpaid balance of a loan of his or her
    51  additional member contributions pursuant to  paragraph  eleven  of  this
    52  subdivision at the time he or she becomes entitled to a refund of his or
    53  her  additional  member  contributions  pursuant to subparagraph (ii) of
    54  paragraph ten of this  subdivision,  the  amount  of  such  unpaid  loan
    55  balance  (including  accrued  interest)  shall  be  deemed  to have been
    56  returned to such member, and the refund of such additional contributions

        A. 8269--A                         15
     1  shall be the net amount of such contributions,  together  with  interest
     2  thereon in accordance with the provisions of such subparagraph (ii).
     3    § 6. Subdivision d of section 613 of the retirement and social securi-
     4  ty law is amended by adding a new paragraph 12 to read as follows:
     5    12.  (i)  The  city  of  New York shall, in the case of a water supply
     6  police member (as defined in paragraph one of subdivision a  of  section
     7  six  hundred four-j of this article) who is a participant in the twenty-
     8  five year retirement program (as defined in paragraph four  of  subdivi-
     9  sion  a  of  such  section  six  hundred four-j), pick up and pay to the
    10  retirement system of which such participant is a member, all  additional
    11  member  contributions  which  otherwise would be required to be deducted
    12  from such member's compensation pursuant to paragraphs one  and  two  of
    13  subdivision  e  of  such  section  six hundred four-j (not including any
    14  additional member contributions due for any period prior  to  the  first
    15  full  payroll  period referred to in paragraph three of such subdivision
    16  e), and shall effect such pick up on each  and  every  payroll  of  such
    17  participant for each and every payroll period with respect to which such
    18  paragraph three would otherwise require such deductions.
    19    (ii)  An amount equal to the amount of additional contributions picked
    20  up pursuant to this paragraph shall be deducted by  such  employer  from
    21  the  compensation  of  such member (as such compensation would be in the
    22  absence of a pick up program applicable to him  or  her  hereunder)  and
    23  shall not be paid to such member.
    24    (iii)  The  additional member contributions picked up pursuant to this
    25  paragraph for any such member shall be paid by such employer in lieu  of
    26  an equal amount of additional member contributions otherwise required to
    27  be  paid by such member under the applicable provisions of subdivision e
    28  of section six hundred four-j of this article, and shall be deemed to be
    29  and treated as employer contributions pursuant to section 414(h) of  the
    30  Internal Revenue Code.
    31    (iv)  For  the  purpose  of  determining the retirement system rights,
    32  benefits and privileges of any member whose additional  member  contrib-
    33  utions  are  picked  up pursuant to this paragraph, such picked up addi-
    34  tional member contributions shall be deemed to be and treated as part of
    35  such member's  additional  member  contributions  under  the  applicable
    36  provisions  of subdivision e of section six hundred four-j of this arti-
    37  cle.
    38    (v) With the exception of federal income tax treatment, the additional
    39  member contributions picked up pursuant  to  subparagraph  (i)  of  this
    40  paragraph shall for all other purposes, including computation of retire-
    41  ment  benefits  and  contributions by employers and employees, be deemed
    42  employee  salary.  Nothing  contained  in  this  subdivision  shall   be
    43  construed  as superseding the provisions of section four hundred thirty-
    44  one of this chapter, or any similar provision of law  which  limits  the
    45  salary base of computing retirement benefits payable by a public retire-
    46  ment system.
    47    §  7.  Section  13-125.2 of the administrative code of the city of New
    48  York is amended by adding a new subdivision a-9 to read as follows:
    49    a-9. Notwithstanding any other provision of law to the contrary, on or
    50  after the starting date for pick up, the employer responsible  for  pick
    51  up  shall,  in  the  case of a water supply police member (as defined in
    52  paragraph two of subdivision a of section four hundred  forty-five-j  of
    53  the  retirement  and  social  security  law) who is a participant in the
    54  twenty-five year improved benefit  retirement  program  (as  defined  in
    55  paragraph  three  of  such  subdivision a of section four hundred forty-
    56  five-j), pick up and pay to the retirement system all additional  member

        A. 8269--A                         16
     1  contributions which otherwise would be required to be deducted from such
     2  member's  compensation  pursuant  to  subdivision d of such section four
     3  hundred forty-five-j, and shall effect such pick up on  each  and  every
     4  payroll  of  such  participant  for  each  and every payroll period with
     5  respect to  which  such  subdivision  d  would  otherwise  require  such
     6  deductions.
     7    §  8.  Subparagraph  (ii)  of  paragraph 1 of subdivision c of section
     8  13-125.2 of the administrative code of the city of New York, as  amended
     9  by chapter 682 of the laws of 2003, is amended to read as follows:
    10    (ii)  the  determination of the amount of such member's Tier I or Tier
    11  II nonuniformed-force member contributions eligible for pick up  by  the
    12  employer  or  additional  member  contributions required to be picked up
    13  pursuant to subdivision a-one, subdivision a-two,  subdivision  a-three,
    14  subdivision  a-four,  subdivision a-five, subdivision a-six, subdivision
    15  a-seven [or], subdivision a-eight, or subdivision a-9 of  this  section;
    16  and
    17    §  9.  Subdivision d of section 13-125.2 of the administrative code of
    18  the city of New York is amended by adding a new paragraph 2-h to read as
    19  follows:
    20    (2-h) For the purpose of determining  the  retirement  system  rights,
    21  benefits  and privileges of any member who is a participant in the twen-
    22  ty-five year improved benefit retirement program (as  defined  in  para-
    23  graph three of subdivision a of section four hundred forty-five-j of the
    24  retirement and social security law), the additional member contributions
    25  of  such  participant  picked  up pursuant to subdivision a-nine of this
    26  section shall be deemed to be and treated as a  part  of  such  member's
    27  additional member contributions under subdivision d of such section four
    28  hundred forty-five-j.
    29    § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis-
    30  trative  code  of the city of New York, as amended by chapter 682 of the
    31  laws of 2003, is amended to read as follows:
    32    (3) Interest on contributions picked up for any  Tier  I  or  Tier  II
    33  non-uniformed-force  member  pursuant  to this section (other than addi-
    34  tional member contributions picked up  pursuant  to  subdivision  a-one,
    35  subdivision  a-two, subdivision a-three, subdivision a-four, subdivision
    36  a-five,  subdivision  a-six,  subdivision  a-seven   [or],   subdivision
    37  a-eight, or subdivision a-nine of this section) shall accrue in favor of
    38  the member and be payable to the retirement system at the same rate, for
    39  the  same  time  periods,  in the same manner and under the same circum-
    40  stances as interest would be required to accrue in favor of  the  member
    41  and  be  payable  to the retirement system on such contributions if they
    42  were made by such member in the absence of a pick up program  applicable
    43  to such member under the provisions of this section.
    44    §  11. Subdivision a of section 603 of the retirement and social secu-
    45  rity law, as amended by chapter 18 of the laws of 2012,  is  amended  to
    46  read as follows:
    47    a.  The  service  retirement  benefit specified in section six hundred
    48  four of this article shall be payable to members who have met the  mini-
    49  mum  service  requirements  upon retirement and attainment of age sixty-
    50  two, other than members who are eligible for  early  service  retirement
    51  pursuant to subdivision c of section six hundred four-b of this article,
    52  subdivision c of section six hundred four-c of this article, subdivision
    53  d  of  section  six  hundred  four-d  of  this article, subdivision c of
    54  section six hundred four-e of this article, subdivision c of section six
    55  hundred four-f of this article, subdivision c  of  section  six  hundred
    56  four-g  of  this article, subdivision c of section six hundred four-h of

        A. 8269--A                         17
     1  this article [or], subdivision c of section six hundred four-i  of  this
     2  article, or subdivision c of section six hundred four-j of this article,
     3  provided,  however, a member of a teachers' retirement system or the New
     4  York  state  and local employees' retirement system who first joins such
     5  system before January first, two thousand ten  or  a  member  who  is  a
     6  uniformed  court  officer or peace officer employed by the unified court
     7  system who first becomes a member  of  the  New  York  state  and  local
     8  employees' retirement system before April first, two thousand twelve may
     9  retire  without  reduction of his or her retirement benefit upon attain-
    10  ment of at least fifty-five years of age and  completion  of  thirty  or
    11  more years of service, provided, however, that a uniformed court officer
    12  or  peace officer employed by the unified court system who first becomes
    13  a member of the New York state and local employees' retirement system on
    14  or after January first, two thousand ten and retires  without  reduction
    15  of  his or her retirement benefit upon attainment of at least fifty-five
    16  years of age and completion of thirty or more years of service  pursuant
    17  to  this  section  shall  be  required  to make the member contributions
    18  required by subdivision f of section six hundred thirteen of this  arti-
    19  cle  for  all years of credited and creditable service, provided further
    20  that the [the] preceding provisions of this subdivision shall not  apply
    21  to a New York city revised plan member.
    22    §  12.  Nothing contained in sections six and eleven of this act shall
    23  be construed to create any contractual right with respect to members  to
    24  whom  such sections apply.  The provisions of such sections are intended
    25  to afford members the advantages of certain benefits  contained  in  the
    26  Internal  Revenue  Code,  and  the  effectiveness  and existence of such
    27  sections and benefits they confer are completely contingent thereon.
    28    § 13. This act shall take effect immediately, provided, however that:
    29    (a) The amendments to subdivision a of section 603 of  the  retirement
    30  and  social  security  law  made by section eleven of this act shall not
    31  affect the expiration of such subdivision as provided in subdivision (b)
    32  of section 13 of chapter 682 of the laws of 2003, and shall expire ther-
    33  ewith;
    34    (b) The provisions of section six of this act shall  remain  in  force
    35  and  effect  only  so  long  as,  pursuant to federal law, contributions
    36  picked up under section 613 of the retirement and  social  security  law
    37  are  not  includable  as gross income of a member for federal income tax
    38  purposes until distributed or made available to the member; and
    39    (c) The amendments to provisions of section 13-125.2 of  the  adminis-
    40  trative code of the city of New York made by sections seven, eight, nine
    41  and  ten  of this act shall not affect the expiration of such provisions
    42  as provided for in chapter 681 of the laws of 1992, as amended.
          FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
          SUMMARY  OF  BILL:  This  proposed  legislation  would  amend  certain
        provisions  of  the  Retirement  and  Social Security Law (RSSL) and the
        Administrative Code of the City  of  New  York  (ACCNY),  and  add  RSSL
        Sections  445-j  and 604-j to establish a 25-Year Retirement Program for
        Tier 2, 4, and 6 New York City  Employees'  Retirement  System  (NYCERS)
        members  who  are  employed  in  the  title  of Water Supply Police (WSP
        25-Year Plan).
          Effective Date: Upon enactment.
          MEMBERS ELIGIBLE TO JOIN: Those NYCERS members who are sworn  officers
        of  the  water  supply  police  employed by the City of New York (City),
        appointed to protect the  sources,  works,  and  transmission  of  water
        supplied  to  the  City, and to protect persons on or in the vicinity of

        A. 8269--A                         18
        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 the WSP 25-Year Plan is optional for  anyone  who  is
        eligible  to  participate in the Plan on the date of enactment by filing
        an election form within 180 days of enactment. Anyone who is a member of
        NYCERS (i.e. subject to Article 15) on the date of enactment and  subse-
        quently  becomes  employed  as a Water Supply Police Member also has 180
        days upon becoming such a member to elect to join the WSP 25-Year Plan.
          Any new Water Supply Police Member who becomes a Tier 6 NYCERS  member
        after  the  date of enactment is mandated into the Plan. However, if the
        member exceeds age 30 upon being mandated into the WSP 25-Year Plan, the
        member has the option not to participate in the Plan by filing an appli-
        cation to opt out of the Plan within 180 days of becoming a Water Supply
        Police Member.
          IMPACT ON BENEFITS: Currently, Water Supply Police  Members  generally
        participate  in  one of the NYCERS general plans (i.e. basic Tier 4 62/5
        Plan, Tier 6 63/10 Plan or Improved Tier 4 57/5, 55/25 Plans). There are
        currently no active Tier 2 Water Supply Police Members.  Therefore,  the
        following  summary only applies to Tier 4 and Tier 6 Water Supply Police
        Members.
          The proposed legislation would provide the following benefits to Water
        Supply Police Members under the WSP 25-Year Plan:
          * Service retirement benefit: Upon attaining 25 years  of  any  NYCERS
        Credited  Service,  including service as a Water Supply Police Member, a
        benefit equal to 50% of Final Average Salary  (FAS)  for  the  first  25
        years  of  Credited  Service  plus 2% of FAS for each additional year of
        Credited Service up to a maximum of 30 years of such service.
          * Final Average Salary: Three-Year Average (FAS3) for Tier  4  members
        and Five-Year Average (FAS5) for Tier 6 members.
          * Vested benefit:
          * Eligibility is:
          *  At least five, but less than 25, years of Credited Service for Tier
        4 and Tier 6 members.
          * Payable at:
          * The date the member  would  have  completed  25  years  of  Credited
        Service for Tier 4, and
          * Age 63 for Tier 6.
          * Amount:
          * 2% of FAS for each year of Credited Service.
          *  Other  benefits: Members of the proposed WSP 25-Year Plan are enti-
        tled to the same disability and death benefits as other Tier 4 and  Tier
        6 members under the respective basic plans.
          ADDITIONAL  MEMBER  CONTRIBUTIONS: Members of the WSP 25-Year Plan are
        required to make, in addition to the Basic Member Contributions, to  the
        extent  payable,  Additional Member Contributions equal to 6% of compen-
        sation for all service as a Plan participant on and after  the  starting
        date  of  the  Plan until the later of a maximum of 30 years of Credited
        Service or the one year anniversary of the enactment of the Plan.
          FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES:  With respect  to  NYCERS
        and  based  on  the anticipated group of members joining the WSP 25-Year
        Plan and the actuarial assumptions and methods described herein, if  the
        proposed  legislation were enacted, the Actuarial Present Value (APV) of
        Benefits (APVB) would increase by approximately $2.3 million, consisting
        of an increase in APV of  member  contributions  of  approximately  $1.5

        A. 8269--A                         19
        million,  and  an  increase  in  APV of future employer contributions of
        approximately $0.8 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  $2.2  million  offset by a
        decrease in the APV of future employer Normal Cost of $1.4 million.  The
        decrease  in  the APV of future employer Normal Cost is primarily due to
        the expected future working lifetime of the affected members.
          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 generally over the
        remaining working lifetime of those impacted by the benefit changes.  As
        of June 30, 2017, if this proposed legislation is enacted, the remaining
        working  lifetime of the Water Supply Police Members assumed to join the
        WSP 25-Year Plan is approximately 13 years.
          For this proposed legislation, the increase in UAL of $2.2 million was
        amortized over a 13-year period (12  payments  under  the  One-Year  Lag
        Methodology)  using  level  dollar  payments resulting in an increase in
        annual employer contributions beginning with approximately $259,000  per
        year.
          CONTRIBUTION  TIMING:  If  enacted during the 2018 Legislative Session
        before June 30, 2018,  the  WSP  25-Year  Plan  would  likely  first  be
        reflected  in the June 30, 2018 census data. In accordance with the One-
        Year Lag Methodology (OYLM) used to  determine  employer  contributions,
        the  increase  in  employer  contributions  would  first be reflected in
        Fiscal Year 2020.
          OTHER COSTS: Not measured in this Fiscal Note are the following:
          * The initial, additional administrative costs  of  NYCERS  and  other
        City agencies to implement the proposed legislation.
          *  The  impact  of  this  proposed legislation on Other Postemployment
        Benefit (OPEB) costs.
          CENSUS DATA: The census data used for the calculations presented here-
        in is as of June 30, 2017. This data, under the OYLM, will  be  used  to
        determine  the  Fiscal  Year 2019 employer contributions for members who
        are eligible for and who could potentially benefit  from  this  proposed
        legislation.
          Census data is submitted by NYCERS administrative staff, participating
        employers'  payroll  facilities, Office of Payroll Administration (OPA),
        and Financial Information Services Agency  (FISA).  This  data  is  then
        reviewed  by the Office of the Actuary (OA) for consistency and reasona-
        bility.
          Where applicable, June 30, 2017 salaries have  been  adjusted  by  the
        Actuary  to reflect contract settlements with retroactive effect and the
        assumption of pattern bargaining. Estimates of liabilities  attributable
        to  the  related  additional  benefits  payable have been applied to the
        results contained herein.
          The 53 eligible Water Supply  Police  Members  as  of  June  30,  2017
        assumed to join the WSP 25-Year Plan had an average age of approximately
        38.0, average service of approximately 13.8 years, and an average annual
        salary of approximately $72,031.
          ACTUARIAL  ASSUMPTIONS  AND  METHODS: The additional employer contrib-
        utions presented herein have been calculated based on the same actuarial
        assumptions and methods in effect for the June 30, 2016 (Lag)  actuarial
        valuations  used  to determine the Preliminary Fiscal Year 2018 employer
        contributions of NYCERS except that  the  actuarial  method  includes  a
        change  in  the  application of the Entry Age Normal cost method. Please

        A. 8269--A                         20
        note these assumptions and methods are subject to change as  this  valu-
        ation is not considered final until the end of the Fiscal Year 2018.
          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 would potentially benefit actuarially. The net APV of future employ-
        er costs (i.e the APVB less the APV of future member  contributions)  of
        each  member's benefit was determined under their current plan and under
        the WSP 25-Year Plan. If the net APV of future employer cost  under  the
        WSP 25-Year Plan was greater than or equal to the APV of future employer
        cost  under  the member's current plan, the member was deemed to benefit
        actuarially and is assumed to participate in the WSP 25-Year Plan.
          Based on this analysis, it was determined that those members  who  are
        hired after the age of 30 and have the option of joining the WSP 25-Year
        Plan  in  the future will not benefit actuarially from the Plan.  There-
        fore, it was further assumed that future Plan participation, in addition
        to those existing members who will benefit from the Plan, will be limit-
        ed to those hired at the age of 30 or younger who are mandated into  the
        Plan.  However,  since  it  is expected that Water Supply Police Members
        hired at the age of 30 or younger will generally not benefit  under  the
        plan  (i.e.  they  have  a  decrease  in APV of future employer costs as
        compared to the Tier 6 63/10 Plan that they would otherwise  participate
        in absent this proposed legislation), the costs presented in this Fiscal
        Note are borne only form current NYCERS members who are assumed to bene-
        fit from, and thus opt to join, the WSP 25-Year Plan.
          STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
        ary for, and independent of, the New York City  Retirement  Systems  and
        Pension  Funds.  I  am a Fellow of the Society of Actuaries, an Enrolled
        Actuary under the Employee Retirement Income and Security  Act  of  1974
        (ERISA),  a Member of the American Academy of Actuaries, and a Fellow of
        the Conference of Consulting Actuaries. I meet the Qualification  Stand-
        ards  of the American Academy of Actuaries to render the actuarial opin-
        ion contained herein. To the best of my knowledge, the results contained
        herein have been prepared in accordance with generally accepted actuari-
        al principles and procedures, and with the Actuarial Standards of  Prac-
        tice issued by the Actuarial Standards Board.
          FISCAL  NOTE IDENTIFICATION:  This Fiscal Note 2018-11 dated March 23,
        2018, was prepared by the Chief Actuary for the New York City Employees'
        Retirement System. This estimate is intended for  use  only  during  the
        2018 Legislative Session.
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