Bill Text: NY S06102 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to the twenty-five year retirement program for members of the New York city employees' retirement system who are employed as fire protection inspectors and associate fire protection inspectors; establishes the 25-year retirement programs for applicable members.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-06-13 - PRINT NUMBER 6102B [S06102 Detail]
Download: New_York-2017-S06102-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6102--B 2017-2018 Regular Sessions IN SENATE May 11, 2017 ___________ Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- 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 committee AN ACT to amend the administrative code of the city of New York, in relation to the establishment of a twenty-five year retirement program for members of the New York city employees' retirement system employed as fire protection inspectors and associate fire protection inspec- tors; and to amend the retirement and social security law, in relation to the establishment of twenty-five year retirement programs for such members who are subject to articles 11 and 15 of such law The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The administrative code of the city of New York is amended 2 by adding a new section 13-157.5 to read as follows: 3 § 13-157.5 Twenty-five year retirement program for fire protection 4 inspector members. a. Definitions. The following words and phrases as 5 used in this section shall have the following meanings unless a differ- 6 ent meaning is plainly required by the context. 7 1. "Fire protection inspector member" shall mean a member of the 8 retirement system who is employed by the city of New York or by the New 9 York city fire department in a title whose duties are those of a fire 10 protection inspector or associate fire protection inspector, or in a 11 title whose duties require the supervision of employees whose duties are 12 those of a fire protection inspector or associate fire protection 13 inspector. 14 2. "Twenty-five year retirement program" shall mean all the terms and 15 conditions of this section. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05670-05-8S. 6102--B 2 1 3. "Starting date of the twenty-five year retirement program" shall 2 mean the date of enactment of this section. 3 4. "Participant in the twenty-five year retirement program" shall mean 4 any fire protection inspector member who, under the applicable 5 provisions of subdivision b of this section, is entitled to the rights, 6 benefits and privileges and is subject to the obligations of the twen- 7 ty-five year retirement program as applicable to him or her. 8 5. "Discontinued member" shall mean a participant in the twenty-five 9 year retirement program who, while he or she was a fire protection 10 inspector member, discontinued service as such a member and has a right 11 to a deferred vested benefit under the provisions of subdivision d of 12 this section. 13 6. "Allowable service as a fire protection inspector member" shall 14 mean (i) all service while employed by the city of New York or by the 15 New York city fire department in a title whose duties are those of a 16 fire protection inspector or associate fire protection inspector, and 17 (ii) with respect to an individual who was employed upon the effective 18 date of this section or thereafter in a title whose duties are those of 19 a fire protection inspector or associate fire protection inspector, all 20 such service subsequent thereto in a title whose duties require the 21 supervision of employees whose duties are those of a fire protection 22 inspector or associate fire protection inspector in the New York city 23 fire department. 24 b. Participation in the twenty-five year retirement program. 1. 25 Subject to the provisions of paragraphs five and six of this subdivi- 26 sion, any person who is a fire protection inspector member on the start- 27 ing date of the twenty-five year retirement program may elect to become 28 a participant in the twenty-five year retirement program by filing, 29 within one hundred eighty days after the starting date of the twenty- 30 five year retirement program, a duly executed application for such 31 participation with the retirement system of which such person is a 32 member, provided he or she is such a fire protection inspector member on 33 the date such application is filed. 34 2. Subject to the provisions of paragraphs five and six of this subdi- 35 vision, any person who becomes a fire protection inspector member after 36 the starting date of the twenty-five year retirement program may elect 37 to become a participant in the twenty-five year retirement program by 38 filing, within one hundred eighty days after becoming such a fire 39 protection inspector member, a duly executed application for such 40 participation with the retirement system of which such person is a 41 member, provided he or she is such a fire protection inspector member on 42 the date such application is filed. 43 3. Any election to be a participant in the twenty-five year retirement 44 program shall be irrevocable. 45 4. Where any participant in the twenty-five year retirement program 46 shall cease to be employed as a fire protection inspector member, he or 47 she shall cease to be such a participant and, during any period in which 48 such person is not so employed, he or she shall not be a participant in 49 the twenty-five year retirement program and shall not be eligible for 50 the benefits of subdivision c of this section. 51 5. Where any participant in the twenty-five year retirement program 52 terminates service as a fire protection inspector member and returns to 53 such service as a fire protection inspector at a later date, he or she 54 shall again become such a participant on that date. 55 6. Notwithstanding any other provision of law to the contrary, any 56 person who is eligible to become a participant in the twenty-five yearS. 6102--B 3 1 retirement program pursuant to paragraph one or two of this subdivision 2 for the full one hundred eighty day period provided for in such applica- 3 ble paragraph and who fails to timely file a duly executed application 4 for such participation with the retirement system, shall not thereafter 5 be eligible to become a participant in such program. 6 c. Service retirement benefits. 1. A participant in the twenty-five 7 year retirement program: 8 (i) who has completed twenty-five or more years of allowable service 9 as a fire protection inspector member; and 10 (ii) who files with the retirement system an application for service 11 retirement setting forth at what time, not less than thirty days subse- 12 quent to the execution and filing thereof, he or she desires to be 13 retired; and 14 (iii) who shall be a participant in the twenty-five year retirement 15 program at the time so specified for his or her retirement; shall be 16 retired pursuant to the provisions of this section affording early 17 service retirement. 18 2. Notwithstanding any other provision of law to the contrary, the 19 early service retirement benefit for a participant in the twenty-five 20 year retirement program who retires pursuant to paragraph one of this 21 subdivision shall be a retirement allowance consisting of: 22 (i) an amount, on account of the required minimum period of service, 23 equal to the sums of (a) an annuity which shall be the actuarial equiv- 24 alent of the accumulated deductions from his or her pay during such 25 period, (b) a pension for increased-take-home-pay which shall be the 26 actuarial equivalent of the reserve for increased-take-home-pay to which 27 he or she may be entitled for such period, and (c) a pension which, when 28 added to such annuity and such pension for increased-take-home-pay, 29 produces a retirement allowance equal to fifty-five percent of the sala- 30 ry earned or earnable in the year prior to his or her retirement; plus 31 (ii) an amount for each additional year of allowable service as a fire 32 protection inspector member, or fraction thereof, beyond such required 33 minimum period of service equal to one and seven-tenths percent of the 34 salary earned or earnable in the year prior to his or her retirement for 35 such allowable service during the period from the completion of twenty- 36 five years of allowable service as a fire protection inspector member to 37 the date of retirement. 38 d. Vesting. 1. A participant in the twenty-five year retirement 39 program who: (i) discontinues service as a fire protection inspector 40 member, other than by death or retirement; and (ii) prior to such 41 discontinuance, completed five but less than twenty-five years of allow- 42 able city service; and (iii) does not withdraw in whole or in part his 43 or her accumulated member contributions pursuant to section 13-141 of 44 this chapter, shall be entitled to receive a deferred vested benefit as 45 provided in this subdivision. 46 2. (i) Upon such discontinuance under the conditions and in compliance 47 with the provisions of paragraph one of this subdivision, such deferred 48 vested benefit shall vest automatically. 49 (ii) Such vested benefit shall become payable on the earliest date on 50 which such discontinued member could have retired for service if such 51 discontinuance had not occurred. 52 3. Such deferred vested benefit shall be a retirement allowance 53 consisting of an amount equal to two and two-tenths percent of such 54 discontinued member's salary earned or earnable in the year prior to his 55 or her discontinuance, multiplied by the number of years of allowable 56 service as a fire protection member.S. 6102--B 4 1 e. Member contributions. All fire protection inspector members of the 2 twenty-five year retirement program shall be required to make member 3 contributions and additional member contributions in accordance with and 4 subject to the same rights, privileges, obligations and procedures as 5 govern the member contributions and additional member contributions 6 required by subdivision d of section four hundred forty-five-j of the 7 retirement and social security law. 8 For the purpose of applying under this subdivision, such subdivision d 9 of section four hundred forty-five-j of the retirement and social secu- 10 rity law to a fire protection inspector member of the twenty-five year 11 retirement program who is subject to the provisions of this section, and 12 is not subject to the provisions of article eleven of the retirement and 13 social security law, the term "credited service," as used in such subdi- 14 vision, shall be deemed to mean allowable service as a fire protection 15 inspector member. 16 § 2. Subdivision a of section 444 of the retirement and social securi- 17 ty law, as amended by section 141 of subpart B of part C of chapter 62 18 of the laws of 2011, is amended to read as follows: 19 a. Except as provided in subdivision c of section four hundred forty- 20 five-a of this article, subdivision c of section four hundred forty- 21 five-b of this article, subdivision c of section four hundred forty- 22 five-c of this article, subdivision c of section four hundred 23 forty-five-d of this article as added by chapter four hundred seventy- 24 two of the laws of nineteen hundred ninety-five, subdivision c of 25 section four hundred forty-five-e of this article, subdivision c of 26 section four hundred forty-five-f of this article [and], subdivision c 27 of section four hundred forty-five-h of this article and subdivision c 28 of section four hundred forty-five-j, the maximum retirement benefit 29 computed without optional modification provided to a member of a retire- 30 ment system who is subject to the provisions of this article, other than 31 a police officer, a firefighter, an investigator member of the New York 32 city employees' retirement system, a member of the uniformed personnel 33 in institutions under the jurisdiction of the New York city department 34 of correction who receives a performance of duty disability retirement 35 allowance, a member of the uniformed personnel in institutions under the 36 jurisdiction of the department of corrections and community supervision 37 or a security hospital treatment assistant, as those terms are defined 38 in subdivision i of section eighty-nine of this chapter, who receives a 39 performance of duty disability retirement allowance, a member of a 40 teachers' retirement system, New York city employees' retirement system, 41 New York city board of education retirement system or a member of the 42 New York state and local employees' retirement system or a member of the 43 New York city employees' retirement system or New York city board of 44 education retirement system employed as a special officer, parking 45 control specialist, school safety agent, campus peace officer, taxi and 46 limousine inspector or a police communications member and who receives a 47 performance of duty disability pension, from funds other than those 48 based on a member's own or increased-take-home-pay contributions, shall, 49 before any reduction for early retirement, be sixty per centum of the 50 first fifteen thousand three hundred dollars of final average salary, 51 and fifty per centum of final average salary in excess of fifteen thou- 52 sand three hundred dollars, and forty per centum of final average salary 53 in excess of twenty-seven thousand three hundred dollars, provided, 54 however, that the benefits provided by subdivision c of section four 55 hundred forty-five-d of this article as added by chapter four hundred 56 seventy-two of the laws of nineteen hundred ninety-five based upon theS. 6102--B 5 1 additional member contributions required by subdivision d of such 2 section four hundred forty-five-d shall be subject to the maximum 3 retirement benefit computations set forth in this section. The maximum 4 retirement benefit computed without optional modification payable to a 5 police officer, an investigator member of the New York city employees' 6 retirement system or a firefighter shall equal that payable upon 7 completion of thirty years of service, except that the maximum service 8 retirement benefit computed without optional modification shall equal 9 that payable upon completion of thirty-two years of service. 10 § 3. Subdivision a of section 445 of the retirement and social securi- 11 ty law, as amended by chapter 295 of the laws of 2007, is amended to 12 read as follows: 13 a. No member of a retirement system who is subject to the provisions 14 of this article shall retire without regard to age, exclusive of retire- 15 ment for disability, unless he or she is a policeman, an investigator 16 member of the New York city employees' retirement system, fireman, 17 correction officer, a qualifying member as defined in section eighty- 18 nine-t, as added by chapter six hundred fifty-seven of the laws of nine- 19 teen hundred ninety-eight, of this chapter, sanitation man, a special 20 officer (including persons employed by the city of New York in the title 21 urban park ranger or associate urban park ranger), school safety agent, 22 campus peace officer or a taxi and limousine commission inspector member 23 of the New York city employees' retirement system or the New York city 24 board of education retirement system, a dispatcher member of the New 25 York city employees' retirement system, a police communications member 26 of the New York city employees' retirement system, an EMT member of the 27 New York city employees' retirement system, a deputy sheriff member of 28 the New York city employees' retirement system, a fire protection 29 inspector member of the New York city employees' retirement system, a 30 correction officer of the Westchester county correction department as 31 defined in section eighty-nine-e of this chapter or employed in Suffolk 32 county as a peace officer, as defined in section eighty-nine-s, as added 33 by chapter five hundred eighty-eight of the laws of nineteen hundred 34 ninety-seven, of this chapter, employed in Suffolk county as a 35 correction officer, as defined in section eighty-nine-f of this chapter, 36 or employed in Nassau county as a correction officer, uniformed 37 correction division personnel, sheriff, undersheriff or deputy sheriff, 38 as defined in section eighty-nine-g of this chapter, or employed in 39 Nassau county as an ambulance medical technician, an ambulance medical 40 technician/supervisor or a member who performs ambulance medical techni- 41 cian related services, as defined in section eighty-nine-s, as amended 42 by chapter five hundred seventy-eight of the laws of nineteen hundred 43 ninety-eight, of this chapter, or employed in Nassau county as a peace 44 officer, as defined in section eighty-nine-s, as added by chapter five 45 hundred ninety-five of the laws of nineteen hundred ninety-seven, of 46 this chapter, or employed in Albany county as a sheriff, undersheriff, 47 deputy sheriff, correction officer or identification officer, as defined 48 in section eighty-nine-h of this chapter or is employed in St. Lawrence 49 county as a sheriff, undersheriff, deputy sheriff or correction officer, 50 as defined in section eighty-nine-i of this chapter or is employed in 51 Orleans county as a sheriff, undersheriff, deputy sheriff or correction 52 officer, as defined in section eighty-nine-l of this chapter or is 53 employed in Jefferson county as a sheriff, undersheriff, deputy sheriff 54 or correction officer, as defined in section eighty-nine-j of this chap- 55 ter or is employed in Onondaga county as a deputy sheriff-jail division 56 competitively appointed or as a correction officer, as defined inS. 6102--B 6 1 section eighty-nine-k of this chapter or is employed in a county which 2 makes an election under subdivision j of section eighty-nine-p of this 3 chapter as a sheriff, undersheriff, deputy sheriff or correction officer 4 as defined in such section eighty-nine-p or is employed in Broome County 5 as a sheriff, undersheriff, deputy sheriff or correction officer, as 6 defined in section eighty-nine-m of this chapter or is a Monroe county 7 deputy sheriff-court security, or deputy sheriff-jailor as defined in 8 section eighty-nine-n, as added by chapter five hundred ninety-seven of 9 the laws of nineteen hundred ninety-one, of this chapter or is employed 10 in Greene county as a sheriff, undersheriff, deputy sheriff or 11 correction officer, as defined in section eighty-nine-o of this chapter 12 or is a traffic officer with the town of Elmira as defined in section 13 eighty-nine-q of this chapter or is employed by Suffolk county as a park 14 police officer, as defined in section eighty-nine-r of this chapter or 15 is a peace officer employed by a county probation department as defined 16 in section eighty-nine-t, as added by chapter six hundred three of the 17 laws of nineteen hundred ninety-eight, of this chapter or is employed in 18 Rockland county as a deputy sheriff-civil as defined in section eighty- 19 nine-v of this chapter as added by chapter four hundred forty-one of the 20 laws of two thousand one, or is employed in Rockland county as a superi- 21 or correction officer as defined in section eighty-nine-v of this chap- 22 ter as added by chapter five hundred fifty-six of the laws of two thou- 23 sand one or is a paramedic employed by the police department in the town 24 of Tonawanda and retires under the provisions of section eighty-nine-v 25 of this chapter, as added by chapter four hundred seventy-two of the 26 laws of two thousand one, or is a county fire marshal, supervising fire 27 marshal, fire marshal, assistant fire marshal, assistant chief fire 28 marshal or chief fire marshal employed by the county of Nassau as 29 defined in section eighty-nine-w of this chapter and is in a plan which 30 permits immediate retirement upon completion of a specified period of 31 service without regard to age. Except as provided in subdivision c of 32 section four hundred forty-five-a of this article, subdivision c of 33 section four hundred forty-five-b of this article, subdivision c of 34 section four hundred forty-five-c of this article, subdivision c of 35 section four hundred forty-five-d of this article, subdivision c of 36 section four hundred forty-five-e of this article, subdivision c of 37 section four hundred forty-five-f of this article [and], subdivision c 38 of section four hundred forty-five-h of this article, and subdivision c 39 of section four hundred forty-five-j of this article, a member in such a 40 plan and such an occupation, other than a policeman or investigator 41 member of the New York city employees' retirement system or a fireman, 42 shall not be permitted to retire prior to the completion of twenty-five 43 years of credited service; provided, however, if such a member in such 44 an occupation is in a plan which permits retirement upon completion of 45 twenty years of service regardless of age, he or she may retire upon 46 completion of twenty years of credited service and prior to the 47 completion of twenty-five years of service, but in such event the bene- 48 fit provided from funds other than those based on such a member's own 49 contributions shall not exceed two per centum of final average salary 50 per each year of credited service. 51 § 4. The retirement and social security law is amended by adding a new 52 section 445-j to read as follows: 53 § 445-j. Optional twenty-five year improved benefit retirement program 54 for fire protection inspector members. a. Definitions. The following 55 words and phrases as used in this section shall have the following mean- 56 ings unless a different meaning is plainly required by the context.S. 6102--B 7 1 1. "Retirement system" shall mean the New York city employees' retire- 2 ment system. 3 2. "Fire protection inspector member" shall mean (i) a member of the 4 retirement system who is subject to the provisions of this article, who 5 is employed by the city of New York or by the New York city fire depart- 6 ment in a title whose duties are those of a fire protection inspector or 7 associate fire protection inspector; and (ii) a member of the retirement 8 system who, on the date this act shall take effect or thereafter, was 9 employed by the city of New York or by the New York city fire department 10 in a title whose duties are those of a fire protection inspector or 11 associate fire protection inspector and who, subsequent thereto, became 12 employed by the city of New York or by the New York city fire department 13 in a title whose duties require the supervision of employees whose 14 duties are those of a fire protection inspector or associate fire 15 protection inspector. 16 3. "Twenty-five year improved benefit retirement program" shall mean 17 all the terms and conditions of this section. 18 4. "Starting date of the twenty-five year improved benefit retirement 19 program" shall mean the date of enactment of the act which added this 20 section, as such date is certified pursuant to section forty-one of the 21 legislative law. 22 5. "Participant in the twenty-five year improved benefit retirement 23 program" shall mean any fire protection inspector member who, under the 24 applicable provisions of subdivision b of this section, is entitled to 25 the rights, benefits and privileges and is subject to the obligations of 26 the twenty-five year improved benefit retirement program, as applicable 27 to him or her. 28 6. "Administrative code" shall mean the administrative code of the 29 city of New York. 30 7. "Accumulated deductions" shall mean accumulated deductions as 31 defined in subdivision eleven of section 13-101 of the administrative 32 code. 33 8. "Optional retirement provisions" shall mean the right to retire and 34 receive a retirement allowance under this section upon the completion of 35 twenty-five years of allowable service. 36 9. "Allowable service" for purposes of this section shall mean (1) all 37 service while employed by the city of New York or by the New York city 38 fire department in a title whose duties are those of a fire protection 39 inspector or associate fire protection inspector, and (2) with respect 40 to an individual who was employed upon the effective date of this 41 section or thereafter in a title whose duties are those of a fire 42 protection inspector or associate fire protection inspector, all such 43 service subsequent thereto in a title whose duties require the super- 44 vision of employees whose duties are those of a fire protection inspec- 45 tor or associate fire protection inspector. 46 b. Election of twenty-five year improved benefit retirement program. 47 1. Subject to the provisions of paragraph five and six of this subdivi- 48 sion, any person who is a fire protection inspector member on the start- 49 ing date of the twenty-five year improved benefit retirement program may 50 elect to become a participant in the twenty-five year improved benefit 51 retirement program by filing, within one hundred eighty days after such 52 starting date, a duly executed application for such participation with 53 the retirement system, provided that he or she is such a fire protection 54 inspector member on the date such application is filed. 55 2. Subject to the provision of paragraphs five and six of this subdi- 56 vision, any person who becomes a fire protection inspector member afterS. 6102--B 8 1 the starting date of the twenty-five year improved benefit retirement 2 program may elect to become a participant in the twenty-five year 3 improved benefit retirement program by filing, within one hundred eighty 4 days after becoming such a fire protection inspector member, a duly 5 executed application for such participation with the retirement system, 6 provided that he or she is such a fire protection inspector member on 7 the date such application is filed. 8 3. Any election to be a participant in the twenty-five year improved 9 benefit retirement program shall be irrevocable. 10 4. Where any participant in the twenty-five year improved benefit 11 retirement program shall cease to hold a position as a fire protection 12 inspector member, he or she shall cease to be such a participant and, 13 during any period in which such a person does not hold such a fire 14 protection inspector position, he or she shall not be a participant in 15 the twenty-five year improved benefit retirement program and shall not 16 be eligible for the benefits of subdivision c of this section. 17 5. Where any participant in the twenty-five year improved benefit 18 retirement program terminates service as a fire protection inspector 19 member and returns to such service as a fire protection inspector member 20 at a later date, he or she shall again become such a participant on that 21 date. 22 6. Notwithstanding any other provision of law to the contrary, any 23 person who is eligible to become a participant in the twenty-five year 24 improved benefit retirement program pursuant to paragraph one or two of 25 this subdivision for the full one hundred eighty day period provided for 26 in such applicable paragraph and who fails to timely file a duly 27 executed application for such participation with the retirement system, 28 shall not thereafter be eligible to become a participant in such 29 program. 30 c. Service retirement benefits. Notwithstanding any other provision of 31 law to the contrary, where a participant in the twenty-five year 32 improved benefit retirement program, who is otherwise qualified for a 33 retirement allowance pursuant to the optional retirement provision set 34 forth in subdivision a of this section, has made and/or paid, while he 35 or she is a fire protection inspector member, all additional member 36 contributions and interest (if any) required by subdivision d of this 37 section, then: 38 1. that participant, while he or she remains participant, shall not be 39 subject to the provisions of subdivision a of section four hundred 40 forty-five of this chapter; and 41 2. if that participant, while such a participant, retires for service, 42 he or she shall not be subject to the provisions of section four hundred 43 forty-four of this chapter; and 44 3. his or her retirement allowance shall be an amount, on account of 45 the required minimum period of service, equal to the sum of (i) an annu- 46 ity which shall be the actuarial equivalent of the accumulated 47 deductions from his or her pay during such period, (ii) a pension for 48 increased-take-home-pay which shall be the actuarial equivalent of the 49 reserve for increased-take-home-pay to which he or she may be entitled, 50 for such period, and (iii) a pension which, when added to such annuity 51 and such pension for increased-take-home-pay, produces a retirement 52 allowance equal to fifty percent of his or her final average salary, 53 plus an amount for each additional year of allowable service as a fire 54 protection inspector member, or fraction thereof, beyond such required 55 minimum period of service equal to two percent of his or her final aver- 56 age salary for such allowable service as a fire protection inspectorS. 6102--B 9 1 member during the period from completion of twenty-five years of allow- 2 able service as a fire protection inspector member to the date of 3 retirement but not to exceed more than five years of additional service 4 as a fire protection inspector member. 5 d. Additional member contributions. 1. In addition to the member 6 contributions required pursuant to section 13-125 or 13-162 of the 7 administrative code of the city of New York, each participant in the 8 twenty-five year improved benefit retirement program shall contribute, 9 subject to the applicable provisions of section 13-125.2 of the adminis- 10 trative code of the city of New York, an additional six percent of his 11 or her compensation earned from allowable service as a fire protection 12 inspector member, as a participant in the twenty-five year improved 13 benefit retirement program, rendered on and after the starting date of 14 the improved benefit retirement program, and all allowable service as a 15 fire protection inspector member after such person ceases to be a 16 participant, but before he or she again becomes a participant pursuant 17 to paragraph five of subdivision b of this section. A participant in 18 the twenty-five year improved benefit retirement program shall contrib- 19 ute additional member contributions until the later of the date as of 20 which he or she is eligible to retire with thirty years of allowable 21 service as a fire protection inspector member under such retirement 22 program, or the first anniversary of the starting date of the twenty- 23 five year improved benefit retirement program. The additional contrib- 24 utions required by this section shall be in lieu of additional member 25 contributions required by subdivision d of section four hundred forty- 26 five-d of this chapter, as added by chapter ninety-six of the laws of 27 nineteen hundred ninety-five, and no member paying additional contrib- 28 utions pursuant to this section shall be required to pay additional 29 contributions pursuant to such subdivision d of section four hundred 30 forty-five-d of this chapter. 31 2. Commencing with the first full payroll period after each person 32 becomes a participant in the twenty-five year improved benefit retire- 33 ment program, additional member contributions at the rate specified in 34 paragraph one of this subdivision shall be deducted, subject to the 35 applicable provisions of section 13-125.2 of the administrative code of 36 the city of New York, from the compensation of such participant on each 37 and every payroll of such participant for each and every payroll period 38 for which he or she is such a participant. 39 3. (i) Subject to the provisions of subparagraph (ii) of this para- 40 graph, where any additional member contributions required by paragraph 41 one of this subdivision are not paid by deductions from a participant's 42 compensation pursuant to paragraph two of this subdivision: 43 (A) that participant shall be charged with a contribution deficiency 44 consisting of such unpaid amounts, together with interest thereon, 45 compounded annually; and 46 (B) such interest on each amount of undeducted contributions shall 47 accrue from the end of the payroll period for which such amount would 48 have been deducted from compensation if he or she had been a participant 49 at the beginning of that payroll period and such deductions had been 50 required for such payroll period until such amount is paid to the 51 retirement system; and 52 (C) (1) interest on each such amount included in such participant's 53 contribution deficiency pursuant to this subparagraph shall be calcu- 54 lated as if such additional member contributions never had been paid by 55 such participant, and such interest shall accrue from the end of the 56 payroll period to which an amount of such additional member contributionS. 6102--B 10 1 is attributable, compounded annually, until such amount is paid to the 2 retirement system; 3 (2) the rate of interest to be applied to each such amount during the 4 period for which interest accrues on that amount shall be equal to the 5 rate or rates of interest required by law to be used during that same 6 period to credit interest on the accumulated deductions of retirement 7 system members; 8 (ii) Except as provided in subparagraph (iii) of this paragraph, no 9 interest shall be due on any unpaid additional contributions which are 10 not attributable to the period prior to the first full payroll period 11 referred to in paragraph two of this subdivision; 12 (iii) Should any person who, pursuant to paragraph seven of this 13 subdivision has withdrawn any additional member contributions (and any 14 interest paid thereon) again become a participant in the twenty-five 15 year improved benefit retirement program pursuant to paragraph five of 16 subdivision b of this section, an appropriate amount shall be included 17 in such participant's contribution deficiency (including interest there- 18 on as calculated pursuant to this paragraph) for any credited service 19 with respect to which such person received a refund of additional member 20 contributions (including any amount of an unpaid loan balance deemed to 21 have been returned to such person pursuant to paragraph seven of this 22 subdivision), as if such additional member contributions never had been 23 paid. 24 4. The board of trustees of the retirement system may, consistent with 25 the provisions of this subdivision, promulgate regulations for the 26 payment of the additional member contributions required by this subdivi- 27 sion, and any interest thereon, by a participant in the twenty-five year 28 improved benefit retirement program (including the deduction of such 29 contributions, and any interest thereon, from his or her compensation). 30 5. Where a participant who is otherwise eligible for service retire- 31 ment pursuant to subdivision c of this section did not, prior to the 32 effective date of retirement, pay the entire amount of a contribution 33 deficiency chargeable to him or her pursuant to paragraph three of this 34 subdivision, or repay the entire amount of a loan of his or her addi- 35 tional member contributions pursuant to paragraph eight of this subdivi- 36 sion (including accrued interest on such loan), that participant, never- 37 theless, shall be eligible to retire pursuant to subdivision c of this 38 section, provided, however, that where such participant is not entitled 39 to a refund of additional member contributions pursuant to paragraph 40 seven of this subdivision, such participant's service retirement benefit 41 calculated pursuant to the applicable provisions of subdivision c of 42 this section shall be reduced by a life annuity (calculated in accord- 43 ance with the method set forth in subdivision i of section six hundred 44 thirteen-b of this chapter) which is actuarially equivalent to: (i) the 45 amount of any unpaid contribution deficiency chargeable to such member 46 pursuant to paragraph three of this subdivision; plus (ii) the amount of 47 any unpaid balance of a loan of his or her additional member contrib- 48 utions pursuant to paragraph eight of this subdivision (including 49 accrued interest on such loan). 50 6. Subject to the provisions of paragraph five of this subdivision, 51 where a participant has not paid in full any contribution deficiency 52 chargeable to him or her pursuant to paragraph three of this subdivi- 53 sion, and a benefit, other than a refund of a member's accumulated 54 deductions or a refund of additional member contributions pursuant to 55 paragraph seven of this subdivision, becomes payable by the retirement 56 system to the participant or to his or her designated beneficiary orS. 6102--B 11 1 estate, the actuarial equivalent of any such unpaid amount shall be 2 deducted from the benefit otherwise payable. 3 7. (i) All additional member contributions required by this subdivi- 4 sion (and any interest thereon) which are received by the retirement 5 system shall be paid into its contingent reserve fund and shall be the 6 property of the retirement system. Such additional member contributions 7 (and any interest thereon) shall not for any purpose be deemed to be 8 member contributions or accumulated deductions of a member of the 9 retirement system under section 13-125 or 13-162 of the administrative 10 code of the city of New York while he or she is a participant in the 11 twenty-five year improved benefit retirement program or otherwise. 12 (ii) Should a participant in the twenty-five year improved benefit 13 retirement program, who has rendered less than fifteen years of credited 14 service cease to hold a position as a fire protection inspector member 15 for any reason whatsoever, his or her accumulated additional member 16 contributions made pursuant to this subdivision (together with any 17 interest thereon paid to the retirement system) which remain credited to 18 such participant's account may be withdrawn by him or her pursuant to 19 procedures promulgated in regulations of the board of trustees of the 20 retirement system, together with interest thereon at the rate of inter- 21 est required by law to be used to credit interest on the accumulated 22 deductions of retirement system members compounded annually. 23 (iii) Notwithstanding any other provision of law to the contrary, 24 (A) no person shall be permitted to withdraw from the retirement 25 system any additional member contributions paid pursuant to this subdi- 26 vision or any interest paid thereon, except pursuant to and in accord- 27 ance with the preceding subparagraphs of this paragraph; and 28 (B) no person, while he or she is a participant in the twenty-five 29 year improved benefit retirement program, shall be permitted to withdraw 30 any such additional member contributions or any interest paid thereon 31 pursuant to any of the preceding subparagraphs of this paragraph or 32 otherwise. 33 8. A participant in the twenty-five year improved benefit retirement 34 program shall be permitted to borrow from his or her additional member 35 contributions, including any interest paid thereon, which are credited 36 to the additional contributions account established for such participant 37 in the contingent reserve fund of the retirement system. The borrowing 38 from such additional member contributions pursuant to this paragraph 39 shall be governed by the same rights, privileges, obligations and proce- 40 dures set forth in section six hundred thirteen-b of this chapter which 41 govern the borrowing by members subject to article fifteen of this chap- 42 ter of member contributions made pursuant to section six hundred thir- 43 teen of this chapter. The board of trustees of the retirement system 44 may, consistent with the provisions of this subdivision and the 45 provisions of section six hundred thirteen-b of this chapter as made 46 applicable to this subdivision, promulgate regulations governing the 47 borrowing of such addition member contributions. 48 9. Wherever a person has an unpaid balance of a loan of his or her 49 additional member contributions pursuant to paragraph eight of this 50 subdivision at the time he or she becomes entitled to a refund of his or 51 her additional member contributions pursuant to subparagraph (ii) of 52 paragraph seven of this subdivision, the amount of such unpaid loan 53 balance (including accrued interest) shall be deemed to have been 54 returned to such member, and the refund of such additional contributions 55 shall be the net amount of such contributions, together with interest 56 thereon in accordance with the provisions of such subparagraph.S. 6102--B 12 1 10. Notwithstanding any other provision of law to the contrary, the 2 provisions of section one hundred thirty-eight-b of this chapter shall 3 not be applicable to the additional member contributions which are 4 required by this subdivision. 5 11. Notwithstanding any other provision of law to the contrary, the 6 additional member contributions which are required by this subdivision 7 shall not be reduced under any program for increased-take-home-pay. 8 e. The provisions of this section shall not be construed to provide 9 benefits to any participant in the twenty-five year improved benefit 10 retirement program which are greater than those which would be received 11 by a similarly situated member who is entitled to benefits under the 12 provisions of section 13-157.2 of the administrative code, but who is 13 not governed by the provisions of this article. 14 § 5. The retirement and social security law is amended by adding a new 15 section 604-j to read as follows: 16 § 604-j. Twenty-five year retirement program for fire protection 17 inspector members. a. Definitions. The following words and phrases as 18 used in this section shall have the following meanings unless a differ- 19 ent meaning is plainly required by the context. 20 1. "Fire protection inspector member" shall mean a member who is 21 employed by the city of New York or by the New York city fire department 22 in a title whose duties are those of a fire protection inspector or 23 associate fire protection inspector; or in a title whose duties require 24 the supervision of employees whose duties are those of a fire protection 25 inspector or associate fire protection inspector. 26 2. "Twenty-five year retirement program" shall mean all the terms and 27 conditions of this section. 28 3. "Starting date of the twenty-five year retirement program" shall 29 mean the date of enactment of this section. 30 4. "Participant in the twenty-five year retirement program" shall mean 31 any fire protection inspector member who, under the applicable 32 provisions of subdivision b of this section, is entitled to the rights, 33 benefits and privileges and is subject to the obligations of the twen- 34 ty-five year retirement program, as applicable to him or her. 35 5. "Discontinued member" shall mean a participant in the twenty-five 36 year retirement program who, while he or she was a fire protection 37 inspector member, discontinued service as such a member and has a right 38 to a deferred vested benefit under subdivision d of this section. 39 6. "Administrative code" shall mean the administrative code of the 40 city of New York. 41 7. "Allowable service as a fire protection inspector member" shall 42 mean all service as a fire protection inspector member. 43 b. Participation in twenty-five year retirement program. 1. Subject to 44 the provisions of paragraphs six and seven of this subdivision, any 45 person who is a fire protection inspector member on the starting date of 46 the twenty-five year retirement program and who, as such a fire 47 protection inspector member or otherwise, last became subject to the 48 provisions of this article prior to such starting date, may elect to 49 become a participant in the twenty-five year retirement program by 50 filing, within one hundred eighty days after the starting date of the 51 twenty-five year retirement program, a duly executed application for 52 such participation with the retirement system of which such person is a 53 member, provided he or she is such a fire protection inspector member on 54 the date such application is filed. 55 2. Subject to the provisions of paragraphs six and seven of this 56 subdivision, any person who becomes a fire protection inspector memberS. 6102--B 13 1 after the starting date of the twenty-five year retirement program and 2 who, as such a fire protection inspector member or otherwise, last 3 became subject to the provisions of this article prior to such starting 4 date, may elect to become a participant in the twenty-five year retire- 5 ment program by filing, within one hundred eighty days after becoming 6 such a fire protection inspector member, a duly executed application for 7 such participation with the retirement system for which such person is a 8 member, provided that he or she is such a fire protection inspector 9 member on the date such application is filed. 10 3. Each fire protection inspector member, other than a fire protection 11 inspector member subject to paragraph one or two of this subdivision, 12 who becomes subject to the provisions of this article on or after the 13 starting date of the twenty-five year retirement program shall become a 14 participant in the twenty-five year retirement program on the date he or 15 she becomes such a fire protection inspector member. Provided, however, 16 a person subject to this paragraph, and who has exceeded age twenty-five 17 upon employment as a fire protection inspector member, shall be exempt 18 from participation in the improved twenty-five year retirement program 19 if such person elects not to participate by filing a duly executed form 20 with the retirement system within one hundred eighty days of becoming a 21 fire protection inspector member. 22 4. Any election to be a participant in the twenty-five year retirement 23 program shall be irrevocable. 24 5. Where any participant in the twenty-five year retirement program 25 shall cease to be employed as a fire protection member, he or she shall 26 cease to be such a participant and, during any period in which such 27 person is not so employed, he or she shall not be a participant in the 28 twenty-five year retirement program and shall not be eligible for the 29 benefits of subdivision c of this section. 30 6. Where any participant in the twenty-five year retirement program 31 terminates service as a fire protection inspector member and returns to 32 such service as a fire protection inspector member at a later date, he 33 or she shall again become such a participant on that date. 34 7. Notwithstanding any other provision of the law to the contrary, any 35 person who is eligible to elect to become a participant in the twenty- 36 five year retirement program pursuant to paragraph one or two of this 37 subdivision for the full one hundred eighty day period provided for in 38 such applicable paragraph and who fails to timely file a duly executed 39 application for such participation with the retirement system, shall not 40 thereafter be eligible to become a participant in such program. 41 c. Service retirement benefits. 1. A participant in the twenty-five 42 year retirement program: 43 (i) who has completed twenty-five or more years of allowable service 44 as a fire protection member, and 45 (ii) who has paid, before the effective date of retirement, all addi- 46 tional member contributions and interest (if any) required by subdivi- 47 sion e of this section; and 48 (iii) who files with the retirement system of which he or she is a 49 member an application for service retirement setting forth at what time, 50 not less than thirty days subsequent to the execution and filing there- 51 of, he or she desires to be retired; and 52 (iv) who shall be a participant in the twenty-five year retirement 53 program at the time so specified for his or her retirement, shall be 54 retired pursuant to the provisions of this section affording early 55 service retirement.S. 6102--B 14 1 2. Notwithstanding an other provision of law to the contrary, and 2 subject to the provisions of paragraph six of subdivision e of this 3 section, the early service retirement benefit for participants in the 4 twenty-five year retirement program who retire pursuant to paragraph one 5 of this subdivision shall be a retirement allowance consisting of: 6 (i) an amount, on account of the required minimum period of service, 7 equal to fifty percent of his or her final average salary; plus 8 (ii) an amount on account of allowable service as a fire protection 9 member, or fraction thereof, beyond such required minimum period of 10 service equal to two percent of his or her final salary for such allow- 11 able service as a fire protection member during the period from 12 completion of twenty-five years of allowable service as a fire 13 protection member to the date of retirement but not to exceed more than 14 five years of additional service as a fire protection member. 15 d. Vesting. 1. A participant in the twenty-five year retirement 16 program: 17 (i) who discontinues service as such a participant, other than by 18 death or retirement; and 19 (ii) in the case of a participant who is not a New York city revised 20 plan member, who prior to such discontinuance, completed five but less 21 than than twenty-five years of allowable service as a fire protection 22 member or, in the case of a participant who is a New York city revised 23 plan member, who prior to such discontinuance, completed ten but less 24 than twenty-five years of allowable service as a fire protection member; 25 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) In the case of a participant who is not a New York city revised 40 plan member, such vested benefit shall become payable on the earliest 41 date on which such discontinued member could have retired for service if 42 such discontinuance had not occurred or, in the case of a participant 43 who is a New York city revised plan member, such vested benefit shall 44 become payable at age sixty-three. Subject to the provisions of para- 45 graph seven of subdivision e of this section, such deferred vested bene- 46 fit shall be a retirement allowance consisting of an amount equal to two 47 percent of such discontinued member's final average salary, multiplied 48 by the number of years of allowable service. 49 e. Additional member contributions. 1. In addition to the member 50 contributions required by section six hundred thirteen of this article, 51 each participant in the twenty-five year retirement program shall 52 contribute to the retirement system of which he or she is a member 53 (subject to the applicable provisions of subdivision d of section six 54 hundred thirteen of this article) an additional six percent of his or 55 her compensation earned from (i) all allowable service, as a participant 56 in the twenty-five year retirement program, rendered on or after theS. 6102--B 15 1 starting date of the twenty-five year retirement program, and (ii) all 2 allowable service after such person ceases to be a participant, but 3 before he or she again becomes a participant pursuant to paragraph six 4 of subdivision b of this section. The additional contributions required 5 by this section shall be in lieu of additional member contributions 6 required by subdivision d of section six hundred four-c of this chapter 7 as added by chapter ninety-six of the laws of nineteen hundred ninety- 8 five, and no member making additional contributions pursuant to this 9 section shall be required to make contributions pursuant to such subdi- 10 vision d of section six hundred four-c of this chapter. 11 2. A participant in the twenty-five year retirement program shall 12 contribute additional member contributions until the later of (i) the 13 first anniversary of the starting date of the twenty-five year retire- 14 ment program, or (ii) the date on which he or she completes thirty years 15 of allowable service as a fire protection inspector member. 16 3. Commencing with the first full payroll period after each person 17 becomes a participant in the twenty-five year retirement program, addi- 18 tional member contributions at the rate specified in paragraph one of 19 this subdivision shall be deducted (subject to the applicable provisions 20 of subdivision d of section six hundred thirteen of this article) from 21 the compensation of such participant on each and every payroll of such 22 participant for each and every payroll period for which he or she is 23 such a participant. 24 4. (i) Each participant in the twenty-five year retirement program 25 shall be charged with a contribution deficiency consisting of the total 26 amounts of additional member contributions such person is required to 27 make pursuant to paragraphs one and two of this subdivision which are 28 not deducted from his or her compensation pursuant to paragraph three of 29 this subdivision, if any, together with interest thereon, compounded 30 annually, and computed in accordance with the provisions of subpara- 31 graphs (ii) and (iii) of this paragraph. 32 (ii)(A) The interest required to be paid on each such amount specified 33 in subparagraph (i) of this paragraph shall accrue from the end of the 34 payroll period for which such amount would have been deducted from 35 compensation if he or she had been a participant at the beginning of 36 that payroll period and such deduction had been required for such 37 payroll period, until such amount is paid to the retirement system. 38 (B) The rate of interest to be applied to each such amount during the 39 period for which interest accrues on that amount shall be equal to the 40 rate or rates of interest required by law to be used during that same 41 period to credit interest on the accumulated deductions of retirement 42 system members. 43 (iii) Except as otherwise provided in paragraph five of this subdivi- 44 sion, no interest shall be due on any unpaid additional member contrib- 45 utions which are not attributable to a period prior to the first full 46 payroll period referred to in paragraph three of this subdivision. 47 5. (i) Should any person who, pursuant to subparagraph (ii) of para- 48 graph ten of this subdivision, has received a refund of his or her addi- 49 tional member contribution including any interest paid on such contrib- 50 utions, again become a participant in the twenty-five year retirement 51 program pursuant to paragraph six of subdivision b of this section, an 52 appropriate amount shall be included in such participant's contribution 53 deficiency (including interest thereon as calculated pursuant to subpar- 54 agraph (ii) of this paragraph) for any allowable service for which such 55 person received a refund of such additional member contributions 56 (including any amount of an unpaid loan balance deemed to have beenS. 6102--B 16 1 returned to such person pursuant to paragraph twelve of this subdivi- 2 sion), as if such additional member contributions never had been paid. 3 (ii) (A) Interest on a participant's additional member contributions 4 included in such participant's contribution deficiency pursuant to 5 subparagraph (i) of this paragraph shall be calculated as if such addi- 6 tional member contributions had never been paid by such participant, and 7 such interest shall accrue from the end of the payroll period to which 8 an amount of such additional member contributions is attributable, until 9 such amount is paid to the retirement system. 10 (B) The rate of interest to be applied to each such amount during the 11 period for which interest accrues on that amount shall be five percent 12 per annum, compounded annually. 13 6. Where a participant who is otherwise eligible for service retire- 14 ment pursuant to subdivision c of this section did not, prior to the 15 effective date of retirement, pay the entire amount of a contribution 16 deficiency chargeable to him or her pursuant to paragraphs four and five 17 of this subdivision, or repay the entire amount of a loan of his or her 18 additional member contributions pursuant to paragraph eleven of this 19 subdivision (including accrued interest on such loan), that participant, 20 nevertheless, shall be eligible to retire pursuant to subdivision c of 21 this section, provided, however, that such participant's service retire- 22 ment benefit calculated pursuant to paragraph two of such subdivision c 23 shall be reduced by a life annuity (calculated in accordance with the 24 method set forth in subdivision i of section six hundred thirteen-b of 25 this article) which is actuarially equivalent to: 26 (i) the amount of any unpaid contribution deficiency chargeable to 27 such member pursuant to paragraphs four and five of this subdivision; 28 plus 29 (ii) the amount of any unpaid balance of a loan of his or her addi- 30 tional member contributions pursuant to paragraph eleven of this subdi- 31 vision (including accrued interest on such loan). 32 7. Where a participant who is otherwise eligible for a vested right to 33 a deferred benefit pursuant to subdivision d of this section did not, 34 prior to the date of discontinuance of service, pay the entire amount of 35 a contribution deficiency chargeable to him or her pursuant to para- 36 graphs four and five of this subdivision, or repay the entire amount of 37 a loan of his or her additional member contributions pursuant to para- 38 graph eleven of this subdivision (including accrued interest on such 39 loan), that participant, nevertheless, shall have a vested right to a 40 deferred benefit pursuant to subdivision d of this section provided, 41 however, that the deferred vested benefit calculated pursuant to para- 42 graph three of subdivision d shall be reduced by a life annuity (calcu- 43 lated in accordance with the method set forth in subdivision i of 44 section six hundred thirteen-b of this article) which is actuarially 45 equivalent to: 46 (i) the amount of any unpaid contribution chargeable to such member 47 pursuant to paragraphs four and five of this subdivision; plus 48 (ii) the amount of any unpaid balance of a loan of his or her addi- 49 tional member contributions pursuant to paragraph eleven of this subdi- 50 vision (including accrued interest on such a loan). 51 8. The head of a retirement system which includes participants in the 52 twenty-five year retirement program in its membership may, consistent 53 with the provisions of this subdivision, promulgate regulations for the 54 payment of such additional member contributions, and any interest there- 55 on, by such participants (including the deduction of such contributions, 56 and any interest thereon, from the participant's compensation).S. 6102--B 17 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 fifteen years of credited service cease to 20 hold a position as a fire protection inspector member for any reason 21 whatsoever, his or her accumulated additional member contributions made 22 pursuant to this subdivision (together with any interest thereon paid to 23 the retirement system) may be withdrawn by him or her pursuant to proce- 24 dures promulgated in regulations of the board of trustees of the retire- 25 ment system, together with interest thereon at the rate of five percent 26 per 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 or 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 contributionsS. 6102--B 18 1 shall be the net amount of such contribution, 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 fire protection 6 inspector member (as defined in paragraph one of subdivision a of 7 section six hundred four-j of this article) who is a participant in the 8 twenty-five year retirement program (as defined in paragraph four of 9 subdivision a of such section six hundred four-j), pick up and pay to 10 the retirement system of which such participant is a member all addi- 11 tional member contributions which otherwise would be required to be 12 deducted from such member's compensation pursuant to paragraphs one and 13 two of subdivision e of such section six hundred four-j (not including 14 any additional member contributions due for any period prior to the 15 first full payroll period referred to in paragraph three of such subdi- 16 vision e), and shall effect such pick up in each and every payroll of 17 such participant for each and every payroll period with respect to which 18 such 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) and shall not be 23 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 for computing retirement benefits payable by a public 46 retirement 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 fire protection inspector member (as defined 52 in paragraph two of subdivision a of section four hundred forty-five-j 53 of 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), pick up and pay to retirement 56 system all additional member contributions which otherwise would beS. 6102--B 19 1 required to be deducted from such member's compensation pursuant to 2 subdivision d of such section four hundred forty-five-j, and shall 3 effect such pick up on each and every payroll of such participant for 4 each and every payroll period with respect to which such subdivision d 5 would otherwise require such deductions. 6 § 8. Subparagraph (ii) of paragraph 1 of subdivision c of section 7 13-125.2 of the administrative code of the city of New York, as amended 8 by chapter 682 of the laws of 2003, is amended to read as follows: 9 (ii) the determination of the amount of such member's Tier I or Tier 10 II nonuniformed-force member contributions eligible for pick up by the 11 employer or additional member contributions required to be picked up 12 pursuant to subdivision a-one, subdivision a-two, subdivision a-three, 13 subdivision a-four, subdivision a-five, subdivision a-six, subdivision 14 a-seven [or], subdivision a-eight or subdivision a-nine of this section; 15 and 16 § 9. Subdivision d of section 13-125.2 of the administrative code of 17 the city of New York is amended by adding a new paragraph 2-h to read as 18 follows: 19 (2-h) For the purpose of determining the retirement system rights, 20 benefits and privileges of any member who is a participant in the twen- 21 ty-five year retirement program (as defined in paragraph two of subdivi- 22 sion a of section 13-157.5 of this chapter), the additional member 23 contributions of such participant picked up pursuant to subdivision 24 a-nine of this section shall be deemed to be and treated as a part of 25 such member's additional contributions under subdivision e of such 26 section 13-157.5. 27 § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis- 28 trative code of the city of New York, as amended by chapter 682 of the 29 laws of 2003, is amended to read as follows: 30 (3) Interest on contributions picked up for any Tier I or Tier II 31 non-uniformed-force member pursuant to this section (other than addi- 32 tional member contributions picked up pursuant to subdivision a-one, 33 subdivision a-two, subdivision a-three, subdivision a-four, subdivision 34 a-five, subdivision a-six, subdivision a-seven [or], subdivision a-eight 35 or subdivision a-nine of this section) shall accrue in favor of the 36 member and be payable to the retirement system at the same rate, for the 37 same time periods, in the same manner and under the same circumstances 38 as interest would be required to accrue in favor of the member and be 39 payable to the retirement system on such contributions if they were made 40 by such member in the absence of a pick up program applicable to such 41 member under the provisions of this section. 42 § 11. Subdivision a of section 603 of the retirement and social secu- 43 rity law, as amended by chapter 18 of the laws of 2012, is amended to 44 read as follows: 45 a. The service retirement benefit specified in section six hundred 46 four of this article shall be payable to members who have met the mini- 47 mum service requirements upon retirement and attainment of age sixty- 48 two, other than members who are eligible for early service retirement 49 pursuant to subdivision c of section six hundred four-b of this article, 50 subdivision c of section six hundred four-c of this article, subdivision 51 d of section six hundred four-d of this article, subdivision c of 52 section six hundred four-e of this article, subdivision c of section six 53 hundred four-f of this article, subdivision c of section six hundred 54 four-g of this article, subdivision c of section six hundred four-h of 55 this article [or], subdivision c of section six hundred four-i of this 56 article, or subdivision c of section six hundred four-j of this articleS. 6102--B 20 1 provided, however, a member of a teachers' retirement system or the New 2 York state and local employees' retirement system who first joins such 3 system before January first, two thousand ten or a member who is a 4 uniformed court officer or peace officer employed by the unified court 5 system who first becomes a member of the New York state and local 6 employees' retirement system before April first, two thousand twelve may 7 retire without reduction of his or her retirement benefit upon attain- 8 ment of at least fifty-five years of age and completion of thirty or 9 more years of service, provided, however, that a uniformed court officer 10 or peace officer employed by the unified court system who first becomes 11 a member of the New York state and local employees' retirement system on 12 or after January first, two thousand ten and retires without reduction 13 of his or her retirement benefit upon attainment of at least fifty-five 14 years of age and completion of thirty or more years of service pursuant 15 to this section shall be required to make the member contributions 16 required by subdivision f of section six hundred thirteen of this arti- 17 cle for all years of credited and creditable service, provided further 18 that the the preceding provisions of this subdivision shall not apply to 19 a New York city revised plan member. 20 § 12. Nothing contained in sections six and eleven of this act shall 21 be construed to create any contractual right with respect to members to 22 whom such sections apply. The provisions of such sections are intended 23 to afford members the advantages of certain benefits contained in the 24 internal revenue code, and the effectiveness and existence of such 25 sections and benefits they confer are completely contingent thereon. 26 § 13. This act shall take effect immediately, provided, however that: 27 (a) the amendments to subdivision a of section 603 of the retirement 28 and social security law made by section eleven of this act shall not 29 affect the expiration of such subdivision and shall be deemed to expire 30 therewith; 31 (b) the provisions of section six of this act shall remain in force 32 and effect only so long as, pursuant to federal law, contributions 33 picked up under such section are not includable as gross income of a 34 member for federal income tax purposes until distributed or made avail- 35 able to the member; and 36 (c) the amendments to section 13-125.2 of the administrative code of 37 the city of New York made by sections seven, eight, nine and ten of this 38 act shall not affect the expiration of such provisions as provided for 39 in section 16 of 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 Administrative Code of the City of New York (ACCNY) Section 13-125.2 and Retirement and Social Security Law (RSSL) Sections 444, 445, 603, and 613, and add ACCNY Section 13-157.5 and RSSL Sections 445-j and 604-j to establish a 25-Year Retirement Program for Fire Protection Inspectors (FPI 25-Year Plan) for each tier. Effective Date: Upon enactment. MEMBERS ELIGIBLE TO JOIN: Members whose duties are one of the follow- ing are eligible to participate in the FPI 25-Year Plan: * Fire Protection Inspector, * Associate Fire Protection Inspector, * Supervisor of employees whose duties are those of a fire protection inspector, and * Supervisor of employees whose duties are those of an associate fire protection inspector.S. 6102--B 21 For purposes of this Fiscal Note, these members are collectively referred to as "Fire Inspectors." Participation in an applicable FPI 25-Year Plan is optional for anyone who is eligible to participate in such Plan on the date of enactment by filing an election form within 180 days of enactment. Anyone who is an existing member of the New York City Employees' Retirement System (NYCERS) on the date of enactment and subsequently becomes employed as a Fire Inspector also has 180 days to elect to join the applicable FPI 25-Year Plan. Any Fire Inspector who becomes a NYCERS member after the date of enactment is mandated into the Tier 6 FPI 25-Year Plan. However, if the member exceeds age 25 upon being mandated into the FPI 25-Year Plan, the member has the option, within 180 days of becoming a Fire Inspector, to elect not to participate. IMPACT ON BENEFITS: Currently, Fire Inspectors 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). Note that since there is only one Tier 2 Fire Inspector remaining, the following summary of the FPI 25-Year Plan is for Tier 4 and Tier 6 members only. The proposed legislation would provide the following benefits to Fire Inspectors under the FPI 25-Year Plan: * Service retirement benefit: Upon attaining 25 years of service, a benefit equal to 50% of Final Average Salary (FAS) for the first 25 years of Allowable Service plus 2% of FAS for each additional year of Allowable Service up to a maximum of 30 years of such service. * Final Average Salary: * Tier 4: Three Year Average (FAS3). * Tier 6: Five Year Average (FAS5). * Vested benefit: * Eligibility is: * Tier 4: At least five, but less than 25, years of allowable service. * Tier 6: At least 10, but less than 25, years of allowable service. * Payable at: * Tier 4: The date the member would have completed 25 years of allowable service. * Tier 6: Age 63. * Amount: * 2% of FAS for each year of allowable service. * Other benefits: Members of the proposed FPI 25-Year Plans 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 an FPI 25-Year Plan are required to make, in addition to the Tier 4 Basic Member Contributions (BMC) of 3% and the Tier 6 BMC ranging from 3% to 6% depending on defined salary scales. Additional Member Contributions equal to 6% of compensation for all allowable service as a Plan participant on and after the starting date of the FPI 25-Year Plans until the later of 30 years of service or the first anniversary of enactment of the Plans. FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: Based on the anticipated group of members joining the FPI 25-Year Plans and the actuarial assump- tions and methods described herein, the enactment of this proposed legislation would increase the Actuarial Present Value (APV) of Benefits (APVB) by approximately $0.9 million, and increase the APV of memberS. 6102--B 22 contributions of approximately $0.3 million, resulting in an increase in the APV of future employer contributions of approximately $0.6 million. Under the Entry Age Normal cost method used to determine the employer contributions to NYCERS, there would be an increase in the Unfunded Accrued Liability (UAL) of approximately $0.9 million offset by a decrease in the APV of future employer Normal Cost of $0.3 million. FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with ACCNY Section 13-638.2(k-2), new UAL attributable to benefit changes are to be amortized as determined by the Actuary but generally over the remaining working lifetime of those impacted by the benefit changes. As of June 30, 2017, the remaining working lifetime of the Fire Inspectors assumed to join the FPI 25-Year Plans is approximately five years. For the purposes of this Fiscal Note, the increase in UAL was amor- tized over a five-year period (four payments under the One-Year Lag Methodology) using level dollar payments. This payment plus the increase in the Normal Cost results in an increase in annual employer contrib- utions of approximately $342,000 each year, beginning in Fiscal Year 2020. OTHER COSTS: Not measured in this Fiscal Note are the following: * The initial, additional administrative costs of NYCERS and other New York City agencies to implement the proposed legislation. * The impact of this proposed legislation on Other Postemployment Benefit (OPEB) costs. CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is assumed that the changes in the APV of future employer contributions and annual employer contributions would be reflected for the first time in the June 30, 2018 actuarial valuation of NYCERS. In accordance with the One-Year Lag Methodology (OYLM) used to determine employer contrib- utions, the increase in employer contributions would first be reflected in Fiscal Year 2020. CENSUS DATA: The estimates presented herein are based on the census data used in the Preliminary June 30, 2017 (Lag) actuarial valuation of NYCERS to determine the Preliminary Fiscal Year 2019 employer contrib- utions. The 30 Fire Inspectors as of June 30, 2017 assumed to join the FPI 25-Year Plans had an average age of approximately 55.9 years, average service of approximately 25.6 years, and an average salary of approxi- mately $79,900. ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the UAL, APV of future employer contributions, and annual employer contributions presented herein have been calculated based on the actuarial assumptions and methods in effect for the June 30, 2017 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year 2019 employer contrib- utions of NYCERS. Please note that these assumptions and methods are subject to change as this valuation is not considered final until the end of Fiscal Year 2019. To determine the impact of the elective nature of the proposed legis- lation, a subgroup of NYCERS Fire Inspectors was developed based on who could potentially benefit actuarially. The net APV of future employer 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 applicable FPI 25-Year Plan. If the net APV of future employer cost under the FPI 25-Year Plans 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.S. 6102--B 23 Based on this analysis, it was determined that those who have the option of joining the FPI Plan upon becoming a NYCERS member in the future will generally not benefit under the Plan (i.e. they will have a decrease in APV of future employer costs as compared to the Tier 6 63/10 Plan they would otherwise participate in, absent this proposed legis- lation). Therefore, it is assumed that these future members who have the option of joining the Plan will choose to not participate in the Plan, and that future Plan participation will be limited to those hired at the age of 25 or younger because they will be mandated into the Plan. Since it is expected that very few, if any, Fire Inspectors will be hired at the age of 25 or younger, the costs presented in this Fiscal Note are borne only from current NYCERS members who are assumed to bene- fit from, and thus opt to join, the applicable FPI-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 2018-34 dated June 11, 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.