Bill Text: NY S05793 | 2023-2024 | General Assembly | Amended
Bill Title: Provides that for New York city uniformed sanitation revised plan members of the New York city employees' retirement system, the service retirement benefit shall not be reduced by the primary social security retirement benefit commencing at age sixty-two.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-02-06 - REPORTED AND COMMITTED TO FINANCE [S05793 Detail]
Download: New_York-2023-S05793-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5793--A 2023-2024 Regular Sessions IN SENATE March 16, 2023 ___________ Introduced by Sens. JACKSON, CHU -- 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 service retirement benefits for uniformed sanitation members of the New York city employees' retirement system The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 505 of the retirement and social security law, as 2 amended by chapter 18 of the laws of 2012, is amended to read as 3 follows: 4 § 505. Service retirement benefits; police/fire members, New York city 5 uniformed correction/sanitation revised plan members and investigator 6 revised plan members. a. The normal service retirement benefit for 7 police/fire members, New York city uniformed correction/sanitation 8 revised plan members and investigator revised plan members at normal 9 retirement age shall be a pension equal to fifty percent of final aver- 10 age salary, less fifty percent of the primary social security retirement 11 benefit commencing at age sixty-two, as provided in section five hundred 12 eleven of this article, except that for New York city uniformed sanita- 13 tion revised plan members of the New York city employees' retirement 14 system, the normal service retirement benefit shall not be reduced by 15 the primary social security retirement benefit commencing at age sixty- 16 two as provided in section five hundred eleven of this article. 17 b. The early service retirement benefit for police/fire members, New 18 York city uniformed sanitation revised plan members and investigator 19 revised plan members shall be a pension equal to two and one-tenths 20 percent of final average salary times years of credited service at the 21 completion of twenty years of service or upon attainment of age sixty- 22 two, increased by one-third of one percent of final average salary for 23 each month of service in excess of twenty years, but not in excess of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06943-04-4S. 5793--A 2 1 fifty percent of final average salary, less fifty percent of the primary 2 social security retirement benefit commencing at age sixty-two as 3 provided in section five hundred eleven of this article, provided, 4 however, that New York city police/fire revised plan members, New York 5 city uniformed sanitation revised plan members and investigator revised 6 plan members shall not be eligible to retire for service prior to the 7 attainment of twenty years of credited service, and provided further 8 that for New York city uniformed sanitation revised plan members of the 9 New York city employees' retirement system, the early service retirement 10 benefit shall not be reduced by the primary social security retirement 11 benefit commencing at age sixty-two as provided in section five hundred 12 eleven of this article. 13 c. A police/fire member, a New York city uniformed sanitation revised 14 plan member or an investigator revised plan member who retires with 15 twenty-two years of credited service or less may become eligible for 16 annual escalation of the service retirement benefit if he elects to have 17 the payment of his benefit commence on the date he would have completed 18 twenty-two years and one month or more of service. In such event, the 19 service retirement benefit shall equal two percent of final average 20 salary for each year of credited service, less fifty percent of the 21 primary social security retirement benefit commencing at age sixty-two 22 as provided in section five hundred eleven of this article, except that 23 for New York city uniformed sanitation revised plan members of the New 24 York city employees' retirement system, the service retirement benefit 25 shall not be reduced by the primary social security retirement benefit 26 commencing at age sixty-two as provided in section five hundred eleven 27 of this article. 28 § 2. Section 511 of the retirement and social security law is amended 29 by adding a new subdivision h to read as follows: 30 h. This section shall not apply to New York city uniformed sanitation 31 revised plan members of the New York city employees' retirement system 32 who receive a service retirement benefit pursuant to section five 33 hundred five of this article or a deferred vested benefit pursuant to 34 section five hundred sixteen of this article. 35 § 3. Subdivision c of section 516 of the retirement and social securi- 36 ty law, as amended by chapter 18 of the laws of 2012, is amended to read 37 as follows: 38 c. The deferred vested benefit of police/fire members, New York city 39 police/fire revised plan members, New York city uniformed 40 correction/sanitation revised plan members or investigator revised plan 41 members shall be a pension commencing at early retirement age equal to 42 two and one-tenths percent of final average salary times years of cred- 43 ited service, less fifty percent of the primary social security retire- 44 ment benefit commencing at age sixty-two, as provided in section five 45 hundred eleven of this article, except that for New York city uniformed 46 sanitation revised plan members of the New York city employees' retire- 47 ment system, the service retirement benefit shall not be reduced by the 48 primary social security retirement benefit commencing at age sixty-two 49 as provided in section five hundred eleven of this article. A 50 police/fire member, a New York city police/fire revised plan member, a 51 New York city uniformed correction/sanitation revised plan member or 52 investigator revised plan member may elect to receive his vested benefit 53 commencing at early retirement age or age fifty-five. If the vested 54 benefit commences before early retirement age, the benefit shall be 55 reduced by one-fifteenth for each year, if any, that the member's early 56 retirement age is in excess of age sixty, and by one-thirtieth for eachS. 5793--A 3 1 additional year by which the vested benefit commences prior to early 2 retirement age. If such vested benefit is deferred until after such 3 member's normal retirement age, the benefit shall be computed and 4 subject to annual escalation in the same manner as provided for an early 5 retirement benefit pursuant to subdivision c of section five hundred 6 five of this article. 7 § 4. This act shall take effect on the sixtieth day after it shall 8 have become a law. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would amend Sections of the Retire- ment and Social Security Law (RSSL) to eliminate the offset equal to 50% of the primary social security benefit in the service, early service, and vested retirement benefits for certain Tier 3 Sanitation members of NYCERS. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Millions) Year NYCERS 2025 17.4 2026 18.5 2027 19.9 2028 21.5 2029 23.1 2030 24.6 2031 26.1 2032 27.4 2033 29.0 2034 30.6 2035 32.0 2036 33.4 2037 34.9 2038 36.3 2039 37.7 2040 39.2 2041 40.7 2042 35.4 2043 36.9 2044 38.4 2045 40.0 2046 41.6 2047 43.2 2048 44.8 2049 46.4 Employer Contribution impact beyond Fiscal Year 2049 is not shown. Projected contributions include future new hires that may be impacted. The entire increase in employer contributions will be allocated to New York City. EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES as of June 30, 2023 ($ in Millions) Present Value (PV) NYCERS PV of Benefits: 214.5 PV of Employee Contributions: 0.0 PV of Employer Contributions: 214.5 Unfunded Accrued Liabilities: 64.0 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY NYCERS Number of Payments: 17S. 5793--A 4 Fiscal Year of Last Payment: 2041 Amortization Payment: 6.8M Unfunded Accrued Liability increases were amortized over the expected remaining working lifetime of those impacted by the benefit changes using level dollar payments. CENSUS DATA: The estimates presented herein are based on preliminary census data collected as of June 30, 2023. The census data for the impacted population is summarized below. NYCERS Active Members - Number Count: 4,627 - Average Age: 39.2 - Average Service: 6 - Average Salary: 89,800 Term. Vested Members - Number Count: 67 - Average Age: 41.5 IMPACT ON MEMBER BENEFITS: Currently, Tier 3 normal service retire- ment, early service retirement, and vested retirement benefits for Sani- tation members in 22-Year Plans are subject to an offset equal to 50% of the primary social security benefit as defined in RSSL Section 511 beginning at age 62. Under the proposed legislation, the offset for such benefits would be eliminated resulting in an increase in benefits. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the Revised 2021 Actuarial Assumptions and Methods of the impacted retirement systems. In addition: * New entrants were assumed to replace exiting members so that total payroll increases by 3% each year for impacted groups. New entrant demo- graphics were developed based on data for recent new hires and actuarial judgement. RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend highly on the actuarial assumptions, methods, and models used, demo- graphics of the impacted population and other factors such as invest- ment, contribution, and other risks. If actual experience deviates from actuarial assumptions, the actual costs could differ from those presented herein. Quantifying these risks is beyond the scope of this Fiscal Note. This Fiscal Note is intended to measure pension-related impacts and does not include other potential costs (e.g., administrative and Other Postemployment Benefits). This Fiscal Note does not include cost analyses relating to provisions contained in RSSL Section 500(c). STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov- sky are members of the Society of Actuaries and the American Academy of Actuaries. We are members of NYCERS but do not believe it impairs our objectivity and we meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. To the best of our 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 2024-06 dated January 22, 2024 was prepared by the Chief Actuary for the New York City Retirement Systems and Pension Funds. This estimate is intended for use only during the 2024 Legislative Session.
