Bill Text: NY S05545 | 2013-2014 | General Assembly | Amended
Bill Title: Removes post-retirement earnings restrictions for New York city department of correction uniformed personnel with respect to a retiree subsequent to his or her earliest eligibility date for service retirement.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-04-24 - PRINT NUMBER 5545A [S05545 Detail]
Download: New_York-2013-S05545-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5545--A
2013-2014 Regular Sessions
I N S E N A T E
May 16, 2013
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
-- recommitted to the Committee on Civil Service and Pensions in
accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the retirement and social security law, in relation to
eligibility of uniformed personnel of the New York city department of
correction for ordinary disability benefits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 507-a of the retirement and social security law is
2 amended by adding a new subdivision f to read as follows:
3 F. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THERE SHALL BE NO
4 RESTRICTIONS ON THE EARNINGS FROM EMPLOYMENT NOT IN PUBLIC SERVICE
5 PERMITTED TO A MEMBER OF THE UNIFORMED PERSONNEL OF THE NEW YORK CITY
6 DEPARTMENT OF CORRECTION WHO:
7 1. HAS RETIRED PURSUANT TO THE PROVISIONS OF THIS SECTION; AND
8 2. WAS SUBJECT TO THE PROVISIONS OF (I) SUBDIVISION D OF SECTION FIVE
9 HUNDRED FOUR OF THIS ARTICLE, (II) SUBDIVISION C OF SECTION FIVE HUNDRED
10 FOUR-A OF THIS ARTICLE, OR (III) SUBDIVISION C OF SECTION FIVE HUNDRED
11 FOUR-B OF THIS ARTICLE PRIOR TO HIS OR HER RETIREMENT, SUBSEQUENT TO THE
12 DATE AS OF WHICH HE OR SHE WOULD HAVE BEEN ELIGIBLE FOR SERVICE RETIRE-
13 MENT.
14 S 2. This act shall take effect immediately.
FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
PROVISIONS OF PROPOSED LEGISLATION: This proposed legislation would
amend Retirement and Social Security Law ("RSSL") Section 507-a to add a
new Subdivision f to remove restrictions on the earnings from employment
in the private sector for periods subsequent to the former member's
earliest eligibility date for Service Retirement for uniformed personnel
of the New York City Department of Correction ("Correction Personnel")
who were members of the New York City Employees' Retirement System
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10901-02-4
S. 5545--A 2
("NYCRS") and who have retired and are receiving Ordinary Disability
benefits ("Correction ODR Retirees").
The effective date of the proposed legislation would be the date of
enactment.
IMPACT ON BENEFITS: NYCERS restricts the total Personal Service Income
("PSI") of a Correction ODR Retiree, in a calendar year, resulting from
all public and private employment.
If a Correction ODR Retiree's PSI from all public and private employ-
ment exceeds the NYCERS PSI limitation, then such retiree's disability
pension is suspended for 12 months. The NYCERS PSI limitation for 2013
was $28,800 and increases each year with the Consumer Price Index.
If the proposed legislation is enacted, earnings of a Correction ODR
Retiree earned subsequent to the date as of which the retiree would have
been eligible for Service Retirement would no longer be limited in this
manner by the NYCERS.
It is the understanding of the Actuary that in lieu of such NYCERS
limitations, the limitations on PSI or ODR Correction Retirees would
fall back to the restrictions imposed by New York City Charter ("NYCC")
Section 1117.
NYCC Section 1117 limits the sum of the retirement allowance and the
PSI for any ODR Retiree of the New York City Retirement Systems to
$1,800 per year from most public employment within New York State
(including New York City). However, NYCC Section 1117 places no limits
on the amounts of PSI that may be earned from employment from other
sources.
FINANCIAL IMPACT - EMPLOYER COSTS: The ultimate cost of a pension plan
is the benefits it pays.
To the extent NYCERS earnings limitations would have applied in Calen-
dar Years 2014 and later, certain Correction ODR Retirees would have had
their pension temporarily suspended in years subsequent to the date as
of which the retiree would have been eligible for Service Retirement
where PSI exceeded those NYCERS earnings limitations.
Enactment of legislation would eliminate the decrease in benefits to
those Correction ODR Retirees where PSI exceeds the NYCERS earnings
limitations.
As the Actuary believes that few, if any, Correction ODR Retirees
currently earn excess PSI that results in a suspension of their Ordinary
Disability benefits, the increase in benefits would be de minimis.
FINANCIAL IMPACT: EMPLOYER CONTRIBUTIONS: The change in employer
contributions would depend upon the amount and timing of pension
payments that would no longer be suspended as a result of this legis-
lation, but would ultimately be comparable to the change in employer
costs and would be de minimis.
OTHER COSTS: Not measured in this Fiscal Note are any possible
increased administrative costs attributable to enactment of the proposed
legislation.
STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems. 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.
FISCAL NOTE IDENTIFICATION: This estimate is intended for use only
during the 2014 Legislative Session. It is Fiscal Note 2014-17, dated
April 21, 2014 prepared by the Chief Actuary for the New York City
Employees' Retirement System.
