Bill Text: NY S06573 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Establishes a twenty-five year retirement program for members of the NYC employees' retirement system employed as water supply police; provides for employer pick-up of certain additional member contributions required to be made by certain participants in the 25-year retirement programs.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2018-06-20 - COMMITTED TO RULES [S06573 Detail]
Download: New_York-2017-S06573-Introduced.html
Bill Title: Establishes a twenty-five year retirement program for members of the NYC employees' retirement system employed as water supply police; provides for employer pick-up of certain additional member contributions required to be made by certain participants in the 25-year retirement programs.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2018-06-20 - COMMITTED TO RULES [S06573 Detail]
Download: New_York-2017-S06573-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6573 2017-2018 Regular Sessions IN SENATE June 5, 2017 ___________ Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the retirement and social security law and the adminis- trative code of the city of New York, in relation to the establishment of twenty-five year retirement programs for members of the New York city employees' retirement system employed as water supply police; and in relation to providing for employer pick up, pursuant to provisions of the internal revenue code, of certain additional member contrib- utions required to be made by certain participants in the twenty-five year retirement programs; and providing for the expiration of certain provisions The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision b of section 440 of the retirement and social 2 security law, as amended by chapter 682 of the laws of 2003, is amended 3 to read as follows: 4 b. The provisions of this article shall not be construed to extend 5 coverage to an employee not otherwise eligible for membership in a 6 retirement system or to provide an increase in benefits to a member of a 7 retirement system other than as provided by section four hundred forty- 8 five-d, or section four hundred forty-five-f, [or] section four hundred 9 forty-five-h, section four hundred forty-five-j, or section four hundred 10 forty-eight of this article. 11 § 2. Subdivision a of section 444 of the retirement and social securi- 12 ty law, as amended by section 141 of subpart B of part C of chapter 62 13 of the laws of 2011, is amended to read as follows: 14 a. Except as provided in subdivision c of section four hundred forty- 15 five-a of this article, subdivision c of section four hundred forty- 16 five-b of this article, subdivision c of section four hundred forty- 17 five-c of this article, subdivision c of section four hundred 18 forty-five-d of this article as added by chapter four hundred seventy- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11156-02-7S. 6573 2 1 two of the laws of nineteen hundred ninety-five, subdivision c of 2 section four hundred forty-five-e of this article, subdivision c of 3 section four hundred forty-five-f of this article and subdivision c of 4 section four hundred forty-five-h of this article, and subdivision c of 5 section four hundred forty-five-j of this article, the maximum retire- 6 ment benefit computed without optional modification provided to a member 7 of a retirement system who is subject to the provisions of this article, 8 other than a police officer, a firefighter, an investigator member of 9 the New York city employees' retirement system, a member of the 10 uniformed personnel in institutions under the jurisdiction of the New 11 York city department of correction who receives a performance of duty 12 disability retirement allowance, a member of the uniformed personnel in 13 institutions under the jurisdiction of the department of corrections and 14 community supervision or a security hospital treatment assistant, as 15 those terms are defined in subdivision i of section eighty-nine of this 16 chapter, who receives a performance of duty disability retirement allow- 17 ance, a member of a teachers' retirement system, New York city employ- 18 ees' retirement system, New York city board of education retirement 19 system or a member of the New York state and local employees' retirement 20 system or a member of the New York city employees' retirement system or 21 New York city board of education retirement system employed as a special 22 officer, parking control specialist, school safety agent, campus peace 23 officer, taxi and limousine inspector [or], a police communications 24 member, or a member of the water supply police and who receives a 25 performance of duty disability pension, from funds other than those 26 based on a member's own or increased-take-home-pay contributions, shall, 27 before any reduction for early retirement, be sixty per centum of the 28 first fifteen thousand three hundred dollars of final average salary, 29 and fifty per centum of final average salary in excess of fifteen thou- 30 sand three hundred dollars, and forty per centum of final average salary 31 in excess of twenty-seven thousand three hundred dollars, provided, 32 however, that the benefits provided by subdivision c of section four 33 hundred forty-five-d of this article as added by chapter four hundred 34 seventy-two of the laws of nineteen hundred ninety-five based upon the 35 additional member contributions required by subdivision d of such 36 section four hundred forty-five-d shall be subject to the maximum 37 retirement benefit computations set forth in this section. The maximum 38 retirement benefit computed without optional modification payable to a 39 police officer, an investigator member of the New York city employees' 40 retirement system or a firefighter shall equal that payable upon 41 completion of thirty years of service, except that the maximum service 42 retirement benefit computed without optional modification shall equal 43 that payable upon completion of thirty-two years of service. 44 § 3. Subdivision a of section 445 of the retirement and social securi- 45 ty law, as amended by chapter 295 of the laws of 2007, is amended to 46 read as follows: 47 a. No member of a retirement system who is subject to the provisions 48 of this article shall retire without regard to age, exclusive of retire- 49 ment for disability, unless he is a policeman, an investigator member of 50 the New York city employees' retirement system, fireman, correction 51 officer, a qualifying member as defined in section eighty-nine-t, as 52 added by chapter six hundred fifty-seven of the laws of nineteen hundred 53 ninety-eight, of this chapter, sanitation man, a special officer 54 (including persons employed by the city of New York in the title urban 55 park ranger or associate urban park ranger), school safety agent, campus 56 peace officer or a taxi and limousine commission inspector member of theS. 6573 3 1 New York city employees' retirement system or the New York city board of 2 education retirement system, a dispatcher member of the New York city 3 employees' retirement system, a police communications member of the New 4 York city employees' retirement system, a member of the water supply 5 police in a position referred to in paragraph (o) of subdivision thir- 6 ty-four of section 1.20 of the criminal procedure law, an EMT member of 7 the New York city employees' retirement system, a deputy sheriff member 8 of the New York city employees' retirement system, a correction officer 9 of the Westchester county correction department as defined in section 10 eighty-nine-e of this chapter or employed in Suffolk county as a peace 11 officer, as defined in section eighty-nine-s, as added by chapter five 12 hundred eighty-eight of the laws of nineteen hundred ninety-seven, of 13 this chapter, employed in Suffolk county as a correction officer, as 14 defined in section eighty-nine-f of this chapter, or employed in Nassau 15 county as a correction officer, uniformed correction division personnel, 16 sheriff, undersheriff or deputy sheriff, as defined in section eighty- 17 nine-g of this chapter, or employed in Nassau county as an ambulance 18 medical technician, an ambulance medical technician/supervisor or a 19 member who performs ambulance medical technician related services, as 20 defined in section eighty-nine-s, as amended by chapter five hundred 21 seventy-eight of the laws of nineteen hundred ninety-eight, of this 22 chapter, or employed in Nassau county as a peace officer, as defined in 23 section eighty-nine-s, as added by chapter five hundred ninety-five of 24 the laws of nineteen hundred ninety-seven, of this chapter, or employed 25 in Albany county as a sheriff, undersheriff, deputy sheriff, correction 26 officer or identification officer, as defined in section eighty-nine-h 27 of this chapter or is employed in St. Lawrence county as a sheriff, 28 undersheriff, deputy sheriff or correction officer, as defined in 29 section eighty-nine-i of this chapter or is employed in Orleans county 30 as a sheriff, undersheriff, deputy sheriff or correction officer, as 31 defined in section eighty-nine-l of this chapter or is employed in 32 Jefferson county as a sheriff, undersheriff, deputy sheriff or 33 correction officer, as defined in section eighty-nine-j of this chapter 34 or is employed in Onondaga county as a deputy sheriff-jail division 35 competitively appointed or as a correction officer, as defined in 36 section eighty-nine-k of this chapter or is employed in a county which 37 makes an election under subdivision j of section eighty-nine-p of this 38 chapter as a sheriff, undersheriff, deputy sheriff or correction officer 39 as defined in such section eighty-nine-p or is employed in Broome County 40 as a sheriff, undersheriff, deputy sheriff or correction officer, as 41 defined in section eighty-nine-m of this chapter or is a Monroe county 42 deputy sheriff-court security, or deputy sheriff-jailor as defined in 43 section eighty-nine-n, as added by chapter five hundred ninety-seven of 44 the laws of nineteen hundred ninety-one, of this chapter or is employed 45 in Greene county as a sheriff, undersheriff, deputy sheriff or 46 correction officer, as defined in section eighty-nine-o of this chapter 47 or is a traffic officer with the town of Elmira as defined in section 48 eighty-nine-q of this chapter or is employed by Suffolk county as a park 49 police officer, as defined in section eighty-nine-r of this chapter or 50 is a peace officer employed by a county probation department as defined 51 in section eighty-nine-t, as added by chapter six hundred three of the 52 laws of nineteen hundred ninety-eight, of this chapter or is employed in 53 Rockland county as a deputy sheriff-civil as defined in section eighty- 54 nine-v of this chapter as added by chapter four hundred forty-one of the 55 laws of two thousand one, or is employed in Rockland county as a superi- 56 or correction officer as defined in section eighty-nine-v of this chap-S. 6573 4 1 ter as added by chapter five hundred fifty-six of the laws of two thou- 2 sand one or is a paramedic employed by the police department in the town 3 of Tonawanda and retires under the provisions of section eighty-nine-v 4 of this chapter, as added by chapter four hundred seventy-two of the 5 laws of two thousand one, or is a county fire marshal, supervising fire 6 marshal, fire marshal, assistant fire marshal, assistant chief fire 7 marshal or chief fire marshal employed by the county of Nassau as 8 defined in section eighty-nine-w of this chapter and is in a plan which 9 permits immediate retirement upon completion of a specified period of 10 service without regard to age. Except as provided in subdivision c of 11 section four hundred forty-five-a of this article, subdivision c of 12 section four hundred forty-five-b of this article, subdivision c of 13 section four hundred forty-five-c of this article, subdivision c of 14 section four hundred forty-five-d of this article, subdivision c of 15 section four hundred forty-five-e of this article, subdivision c of 16 section four hundred forty-five-f of this article [and], subdivision c 17 of section four hundred forty-five-h of this article, and subdivision c 18 of section four hundred forty-five-j of this article, a member in such a 19 plan and such an occupation, other than a policeman or investigator 20 member of the New York city employees' retirement system or a fireman, 21 shall not be permitted to retire prior to the completion of twenty-five 22 years of credited service; provided, however, if such a member in such 23 an occupation is in a plan which permits retirement upon completion of 24 twenty years of service regardless of age, he may retire upon completion 25 of twenty years of credited service and prior to the completion of twen- 26 ty-five years of service, but in such event the benefit provided from 27 funds other than those based on such a member's own contributions shall 28 not exceed two per centum of final average salary per each year of cred- 29 ited service. 30 § 4. The retirement and social security law is amended by adding a new 31 section 445-j to read as follows: 32 § 445-j. Optional twenty-five year improved benefit retirement program 33 for water supply police members. a. Definitions. The following words and 34 phrases as used in this section shall have the following meanings unless 35 a different meaning is plainly required by the context. 36 1. "Retirement system" shall mean the New York city employees' retire- 37 ment system. 38 2. "Water supply police member" shall mean a member of the retirement 39 system who is subject to the provisions of this article, who is employed 40 by the city of New York in a position referred to by paragraph (o) of 41 subdivision thirty-four of section 1.20 of the criminal procedure law. 42 3. "Twenty-five year improved benefit retirement program" shall mean 43 all the terms and conditions of this section. 44 4. "Starting date of the twenty-five year improved benefit retirement 45 program" shall mean the effective date of this section, as such date is 46 certified pursuant to section forty-one of the legislative law. 47 5. "Participant in the twenty-five year improved benefit retirement 48 program" shall mean any water supply police member who, under the appli- 49 cable provisions of subdivision b of this section, is entitled to the 50 rights, benefits and privileges and is subject to the obligations of the 51 twenty-five year improved benefit retirement program, as applicable to 52 him or her. 53 6. "Administrative code" shall mean the administrative code of the 54 city of New York.S. 6573 5 1 7. "Accumulated deductions" shall mean accumulated deductions as 2 defined in subdivision eleven of section 13-101 of the administrative 3 code. 4 8. "Optional retirement provisions" shall mean the right to retire and 5 receive a retirement allowance under this section upon the completion of 6 twenty-five years of credited service. 7 b. Election of twenty-five year improved benefit retirement program. 8 1. Subject to the provisions of paragraphs five and six of this subdivi- 9 sion, any person who is a water supply police member on the starting 10 date of the twenty-five year improved benefit retirement program may 11 elect to become a participant in the twenty-five year improved benefit 12 retirement program by filing, within one hundred eighty days after such 13 starting date, a duly executed application for such participation with 14 the retirement system, provided he or she is such a water supply police 15 member on the date such application is filed. 16 2. Subject to the provisions of paragraphs five and six of this subdi- 17 vision, any person who becomes a water supply police member after the 18 starting date of the twenty-five year improved benefit retirement 19 program may elect to become a participant in the twenty-five year 20 improved benefit retirement program by filing, within one hundred eighty 21 days after becoming such a water supply police member, a duly executed 22 application for such participation with the retirement system, provided 23 he or she is such a water supply police member on the date such applica- 24 tion is filed. 25 3. Any election to be a participant in the twenty-five year improved 26 benefit retirement program shall be irrevocable. 27 4. Where any participant in the twenty-five year improved benefit 28 retirement program shall cease to hold a position as a water supply 29 police member, he or she shall cease to be such a participant and, 30 during any period in which such a person does not hold such a water 31 supply police position, he or she shall not be a participant in the 32 twenty-five year improved benefit retirement program and shall not be 33 eligible for the benefits of subdivision c of this section. 34 5. Where any participant in the twenty-five year improved benefit 35 retirement program terminates service as a water supply police member 36 and returns to such service as a water supply police member at a later 37 date, he or she shall again become such a participant on that date. 38 6. Notwithstanding any other provision of law to the contrary, any 39 person who is eligible to become a participant in the twenty-five year 40 improved benefit retirement program pursuant to paragraph one or two of 41 this subdivision for the full one hundred eighty day period provided for 42 in such applicable paragraph and who fails to timely file a duly 43 executed application for such participation with the retirement system, 44 shall not thereafter be eligible to become a participant in such 45 program. 46 c. Service retirement benefits. Notwithstanding any other provision of 47 law to the contrary, where a participant in the twenty-five year 48 improved benefit retirement program, who is otherwise qualified for a 49 retirement allowance pursuant to the optional retirement provisions set 50 forth in subdivision a of this section, has made and/or paid, while he 51 or she is a water supply police member, all additional member contrib- 52 utions and interest (if any) required by subdivision d of this section, 53 then: 54 1. that participant, while he or she remains a participant, shall not 55 be subject to the provisions of subdivision a of section four hundred 56 forty-five of this article; andS. 6573 6 1 2. if that participant, while such a participant, retires from 2 service, he or she shall not be subject to the provisions of section 3 four hundred forty-four of this article; and 4 3. his or her retirement allowance shall be an amount, on account of 5 the required minimum period of service, equal to the sum of (i) an annu- 6 ity which shall be the actuarial equivalent of the accumulated 7 deductions from his or her pay during such period, (ii) a pension for 8 increased-take-home-pay which shall be the actuarial equivalent of the 9 reserve for increased-take-home-pay to which he or she may be entitled 10 for such period, and (iii) a pension which, when added to such annuity 11 and such pension for increased-take-home-pay, produces a retirement 12 allowance equal to fifty percent of his or her final average salary, 13 plus an amount for each additional year of allowable service, or frac- 14 tion thereof, beyond such required minimum period of service equal to 15 two percent of his or her final average salary; and 16 4. the maximum retirement benefit computed without optional modifica- 17 tion payable to that participant upon his or her retirement for service 18 as such a participant shall equal that payable upon completion of thirty 19 years of service. 20 d. Additional member contributions. 1. In addition to the member 21 contributions required pursuant to section 13-125 or section 13-162 of 22 the administrative code, each participant in the twenty-five year 23 improved benefit retirement program shall contribute, subject to the 24 applicable provisions of section 13-125.2 of the administrative code, an 25 additional six percent of his or her compensation earned from (i) all 26 credited service, as a participant in the twenty-five year improved 27 benefit retirement program, rendered on and after the starting date of 28 the improved benefit retirement program, and (ii) all credited service 29 after such person ceases to be a participant, but before he or she again 30 becomes a participant pursuant to paragraph five of subdivision b of 31 this section. A participant in the twenty-five year improved benefit 32 retirement program shall contribute additional member contributions 33 until the later of (i) the date as of which he or she is eligible to 34 retire with twenty-five years of credited service under such retirement 35 program, or (ii) the first anniversary of the starting date of the twen- 36 ty-five year improved benefit retirement program. The additional 37 contributions required by this paragraph shall be in lieu of additional 38 member contributions required by subdivision d of section four hundred 39 forty-five-d of this article, as added by chapter ninety-six of the laws 40 of nineteen hundred ninety-five, and no member paying additional 41 contributions pursuant to this section shall be required to pay addi- 42 tional contributions pursuant to such subdivision d of section four 43 hundred forty-five-d of this article. 44 2. Commencing with the first full payroll period after each person 45 becomes a participant in the twenty-five year improved benefit retire- 46 ment program, additional member contributions at the rate specified in 47 paragraph one of this subdivision shall be deducted, subject to the 48 applicable provisions of section 13-125.2 of the administrative code, 49 from the compensation of such participant on each and every payroll of 50 such participant for each and every payroll period for which he or she 51 is such a participant. 52 3. (i) Subject to the provisions of subparagraph (ii) of this para- 53 graph, where any additional member contributions required by paragraph 54 one of this subdivision are not paid by deductions from a participant's 55 compensation pursuant to paragraph two of this subdivision:S. 6573 7 1 (A) that participant shall be charged with a contribution deficiency 2 consisting of such unpaid amounts, together with interest thereon, 3 compounded annually; and 4 (B) such interest on each amount of undeducted contributions shall 5 accrue from the end of the payroll period for which such amount would 6 have been deducted from compensation if he or she had been a participant 7 at the beginning of that payroll period and such deductions had been 8 required for such payroll period until such amount is paid to the 9 retirement system; and 10 (C) (1)interest on each such amount included in such participant's 11 contribution deficiency pursuant to this subparagraph shall be calcu- 12 lated as if such additional member contributions never had been paid by 13 such participant, and such interest shall accrue from the end of the 14 payroll period to which an amount of such additional member contrib- 15 utions is attributable, compounded annually, until such amount is paid 16 to the retirement system. 17 (2) the rate of interest to be applied to each such amount during the 18 period for which interest accrues on that amount shall be equal to the 19 rate or rates of interest required by law to be used during that same 20 period to credit interest on the accumulated deductions of retirement 21 system members. 22 (ii) Except as provided in subparagraph (iii) of this paragraph, no 23 interest shall be due on any unpaid additional contributions which are 24 not attributable to the period prior to the first full payroll period 25 referred to in paragraph two of this subdivision. 26 (iii) Should any person who, pursuant to paragraph seven of this 27 subdivision, has withdrawn any additional member contributions (and any 28 interest paid thereon) again become a participant in the twenty-five 29 year improved benefit retirement program pursuant to paragraph five of 30 subdivision b of this section, an appropriate amount shall be included 31 in such participant's contribution deficiency (including interest there- 32 on as calculated pursuant to subclause two of clause (C) of subparagraph 33 (i) of this paragraph) for any credited service with respect to which 34 such person received a refund of additional member contributions 35 (including any amount of an unpaid loan balance deemed to have been 36 returned to such person pursuant to paragraph seven of this subdivi- 37 sion), as if such additional member contributions never had been paid. 38 4. The board of trustees of the retirement system may, consistent with 39 the provisions of this subdivision, promulgate regulations for the 40 payment of the additional member contributions required by this subdivi- 41 sion, and any interest thereon, by a participant in the twenty-five year 42 improved benefit retirement program (including the deduction of such 43 contributions, and any interest thereon, from his or her compensation). 44 5. Where a participant who is otherwise eligible for service retire- 45 ment pursuant to subdivision c of this section did not, prior to the 46 effective date of retirement, pay the entire amount of a contribution 47 deficiency chargeable to him or her pursuant to paragraph three of this 48 subdivision, or repay the entire amount of a loan of his or her addi- 49 tional member contributions pursuant to paragraph eight of this subdivi- 50 sion (including accrued interest on such loan), that participant, never- 51 theless, shall be eligible to retire pursuant to subdivision c of this 52 section, provided, however, that where such participant is not entitled 53 to a refund of additional member contributions pursuant to paragraph 54 seven of this subdivision, such participant's service retirement benefit 55 calculated pursuant to the applicable provisions of subdivision c of 56 this section shall be reduced by a life annuity (calculated in accord-S. 6573 8 1 ance with the method set forth in subdivision i of section six hundred 2 thirteen-b of this chapter) which is actuarially equivalent to: 3 (i) the amount of any unpaid contribution deficiency chargeable to 4 such member pursuant to paragraph three of this subdivision; plus 5 (ii) the amount of any unpaid balance of a loan of his or her addi- 6 tional member contributions pursuant to paragraph eight of this subdivi- 7 sion (including accrued interest on such loan). 8 6. Subject to the provisions of paragraph five of this subdivision, 9 where a participant has not paid in full any contribution deficiency 10 chargeable to him or her pursuant to paragraph three of this subdivi- 11 sion, and a benefit, other than a refund of a member's accumulated 12 deductions or a refund of additional member contributions pursuant to 13 paragraph seven of this subdivision, becomes payable by the retirement 14 system to the participant or to his or her designated beneficiary or 15 estate, the actuarial equivalent of any such unpaid amount shall be 16 deducted from the benefit otherwise payable. 17 7. (i) All additional member contributions required by this subdivi- 18 sion (and any interest thereon) which are received by the retirement 19 system shall be paid into its contingent reserve fund and shall be the 20 property of the retirement system. Such additional member contributions 21 (and any interest thereon) shall not for any purpose be deemed to be 22 member contributions or accumulated deductions of a member of the 23 retirement system under section 13-125 or section 13-162 of the adminis- 24 trative code while he or she is a participant in the twenty-five year 25 improved benefit retirement program or otherwise. 26 (ii) Should a participant in the twenty-five year improved benefit 27 retirement program, who has rendered less than five years of credited 28 service cease to hold a position as a water supply police member for any 29 reason whatsoever, his or her accumulated additional member contrib- 30 utions made pursuant to this subdivision (together with any interest 31 thereon paid to the retirement system) which remain credited to such 32 participant's account may be withdrawn by him or her pursuant to proce- 33 dures promulgated in regulations of the board of trustees of the retire- 34 ment system, together with interest thereon at the rate of interest 35 required by law to be used to credit interest on the accumulated 36 deductions of retirement system members compounded annually. 37 (iii) Notwithstanding any other provision of law to the contrary, (A) 38 no person shall be permitted to withdraw from the retirement system any 39 additional member contributions paid pursuant to this subdivision or any 40 interest paid thereon, except pursuant to and in accordance with the 41 preceding subparagraphs of this paragraph; and (B) no person, while he 42 or she is a participant in the twenty-five year improved benefit retire- 43 ment program, shall be permitted to withdraw any such additional member 44 contributions or any interest paid thereon pursuant to any of the 45 preceding subparagraphs of this paragraph or otherwise. 46 8. A participant in the twenty-five year improved benefit retirement 47 program shall be permitted to borrow from his or her additional member 48 contributions, including any interest paid thereon, which are credited 49 to the additional contributions account established for such participant 50 in the contingent reserve fund of the retirement system. The borrowing 51 from such additional member contributions pursuant to this paragraph 52 shall be governed by the same rights, privileges, obligations and proce- 53 dures set forth in section six hundred thirteen-b of this chapter which 54 govern the borrowing by members subject to article fifteen of this chap- 55 ter of member contributions made pursuant to section six hundred thir- 56 teen of this chapter. The board of trustees of the retirement systemS. 6573 9 1 may, consistent with the provisions of this subdivision and the 2 provisions of section six hundred thirteen-b of this chapter as made 3 applicable to this subdivision, promulgate regulations governing the 4 borrowing of such additional member contributions. 5 9. Wherever a person has an unpaid balance of a loan of his or her 6 additional member contributions pursuant to paragraph eight of this 7 subdivision at the time he or she becomes entitled to a refund of his or 8 her additional member contributions pursuant to subparagraph (ii) of 9 paragraph seven of this subdivision, the amount of such unpaid loan 10 balance (including accrued interest) shall be deemed to have been 11 returned to such member, and the refund of such additional contributions 12 shall be the net amount of such contributions, together with interest 13 thereon in accordance with the provisions of such subparagraph. 14 10. Notwithstanding any other provision of law to the contrary, the 15 provisions of section one hundred thirty-eight-b of this chapter shall 16 not be applicable to the additional member contributions which are 17 required by this subdivision. 18 11. Notwithstanding any other provision of law to the contrary, the 19 additional member contributions which are required by this subdivision 20 shall not be reduced under any program for increased-take-home-pay. 21 § 5. The retirement and social security law is amended by adding a new 22 section 604-j to read as follows: 23 § 604-j. Twenty-five year retirement program for water supply police 24 members. a. Definitions. The following words and phrases as used in 25 this section shall have the following meanings unless a different mean- 26 ing is plainly required by the context. 27 1. "Water supply police member" shall mean a member of the retirement 28 system who is employed by the city of New York in a position referred to 29 by paragraph (o) of subdivision thirty-four of section 1.20 of the crim- 30 inal procedure law. 31 2. "Twenty-five year retirement program" shall mean all the terms and 32 conditions of this section. 33 3. "Starting date of the twenty-five year retirement program" shall 34 mean the effective date of this section, as such date is certified 35 pursuant to section forty-one of the legislative law. 36 4. "Participant in the twenty-five year retirement program" shall mean 37 any water supply police member who, under the applicable provisions of 38 subdivision b of this section, is entitled to the rights, benefits and 39 privileges and is subject to the obligations of the twenty-five year 40 retirement program, as applicable to him or her. 41 5. "Discontinued member" shall mean a participant in the twenty-five 42 year retirement program who, while he or she was a water supply police 43 member, discontinued service as such a member and has a right to a 44 deferred vested benefit under subdivision d of this section. 45 6. "Administrative code" shall mean the administrative code of the 46 city of New York. 47 b. Participation in twenty-five year retirement program. 1. Subject 48 to the provisions of paragraphs six and seven of this subdivision, any 49 person who is a water supply police member on the starting date of the 50 twenty-five year retirement program and who, as such a water supply 51 police member or otherwise last became subject to the provisions of this 52 article prior to such starting date, may elect to become a participant 53 in the twenty-five year retirement program by filing, within one hundred 54 eighty days after the starting date of the twenty-five year retirement 55 program, a duly executed application for such participation with the 56 retirement system of which such person is a member, provided he or sheS. 6573 10 1 is such a water supply police member on the date such application is 2 filed. 3 2. Subject to the provisions of paragraphs six and seven of this 4 subdivision, any person who becomes a water supply police member after 5 the starting date of the twenty-five year retirement program and who, as 6 such a water supply police member or otherwise, last became subject to 7 the provisions of this article prior to such starting date, may elect to 8 become a participant in the twenty-five year retirement program by 9 filing, within one hundred eighty days after becoming such a water 10 supply police member, a duly executed application for such participation 11 with the retirement system for which such person is a member, provided 12 he or she is such a water supply police member on the date such applica- 13 tion is filed. 14 3. Any election to be a participant in the twenty-five year retirement 15 program shall be irrevocable. 16 4. Each water supply police member who becomes subject to the 17 provisions of this article on or after the starting date of the twenty- 18 five year retirement program shall become a participant in the twenty- 19 five year retirement program on the date he or she becomes such a water 20 supply police member. Provided, however, a person subject to this para- 21 graph who has exceeded age thirty upon employment as such a member shall 22 be exempt from participation in the twenty-five year retirement program 23 if such person elects not to participate by filing a duly executed form 24 with the retirement system within one hundred eighty days of becoming 25 such a member. 26 5. Where any participant in the twenty-five year retirement program 27 shall cease to be employed by the city of New York as a water supply 28 police member, he or she shall cease to be such a participant and, 29 during any period in which such person is not so employed, he or she 30 shall not be a participant in the twenty-five year retirement program 31 and shall not be eligible for the benefits of subdivision c of this 32 section. 33 6. Where any participant in the twenty-five year retirement program 34 terminates service as a water supply police member and returns to such 35 service as a water supply police member at a later date, he or she shall 36 again become such a participant on that date. 37 7. Notwithstanding any other provision of law to the contrary, any 38 person who is eligible to elect to become a participant in the twenty- 39 five year retirement program pursuant to paragraph one or two of this 40 subdivision for the full one hundred eighty day period provided for in 41 such applicable paragraph and who fails to timely file a duly executed 42 application for such participation with the retirement system, shall not 43 thereafter be eligible to become a participant in such program. 44 c. Service retirement benefits. 1. A participant in the twenty-five 45 year retirement program: 46 (i) who has completed twenty-five or more years of credited service; 47 and 48 (ii) who has paid, before the effective date of retirement, all addi- 49 tional member contributions and interest (if any) required by subdivi- 50 sion e of this section; and 51 (iii) who files with the retirement system of which he or she is a 52 member an application for service retirement setting forth at that time, 53 not less than thirty days subsequent to the execution and filing there- 54 of, he or she desires to be retired; and 55 (iv) who shall be a participant in the twenty-five year retirement 56 program at the time so specified for his or her retirement; shall beS. 6573 11 1 retired pursuant to the provisions of this section affording early 2 service retirement. 3 2. (i) Notwithstanding any other provision of law to the contrary, and 4 subject to the provisions of paragraph six of subdivision e of this 5 section, the early service retirement benefit for participants in the 6 twenty-five year retirement program who retire pursuant to paragraph one 7 of this subdivision shall be a retirement allowance consisting of: 8 (A) an amount, on account of the required minimum period of service, 9 equal to fifty percent of his or her final average salary; plus 10 (B) an amount on account of credited service, or fraction thereof, 11 beyond such required minimum period of service equal to two percent of 12 his or her final salary; 13 (ii) The maximum retirement allowance computed without optional 14 modification payable pursuant to subparagraph (i) of this paragraph 15 shall equal that payable upon completion of thirty years of service. 16 d. Vesting. 1. A participant in the twenty-five year retirement 17 program: 18 (i) who discontinues service as such a participant, other than by 19 death or retirement; and 20 (ii) who prior to such discontinuance, completed five but less than 21 twenty-five years of credited service; and 22 (iii) who, subject to the provisions of paragraph seven of subdivision 23 e of this section, has paid, prior to such discontinuance, all addi- 24 tional member contributions and interest (if any) required by subdivi- 25 sion e of this section; and 26 (iv) who does not withdraw in whole or in part his or her accumulated 27 member contributions pursuant to section six hundred thirteen of this 28 article unless such participant thereafter returns to public service and 29 repays the amounts so withdrawn, together with interest, pursuant to 30 such section six hundred thirteen; shall be entitled to receive a 31 deferred vested benefit as provided in this subdivision. 32 2. (i) Upon such discontinuance under the conditions and in compliance 33 with the provisions of paragraph one of this subdivision, such deferred 34 vested benefit shall vest automatically. 35 (ii) Such vested benefit shall become payable on the earliest date on 36 which such discontinued member could have retired for service if such 37 discontinuance had not occurred. 38 3. Subject to the provisions of paragraph seven of subdivision e of 39 this section, such deferred vested benefit shall be a retirement allow- 40 ance consisting of an amount equal to two percent of such discontinued 41 member's final average salary, multiplied by the number of years of 42 credited service. 43 e. Additional member contributions. 1. In addition to the member 44 contributions required by section six hundred thirteen of this article, 45 each participant in the twenty-five year retirement program shall 46 contribute to the retirement system of which he or she is a member 47 (subject to the applicable provisions of subdivision d of section six 48 hundred thirteen of this article) an additional six percent of his or 49 her compensation earned from (i) all credited service, as a participant 50 in the twenty-five year retirement program, rendered on or after the 51 starting date of the twenty-five year retirement program, and (ii) all 52 credited service after such person ceases to be a participant, but 53 before he or she again becomes a participant pursuant to paragraph six 54 of subdivision b of this section. The additional contributions required 55 by this subdivision shall be in lieu of additional member contributions 56 required by subdivision d of section six hundred four-c of this article,S. 6573 12 1 as added by chapter ninety-six of the laws of nineteen hundred ninety- 2 five, and no member making contributions pursuant to this section shall 3 be required to make contributions pursuant to such subdivision d of 4 section six hundred four-c of this article. 5 2. A participant in the twenty-five year retirement program shall 6 contribute additional member contributions until the later of (i) the 7 first anniversary of the starting date of the twenty-five year retire- 8 ment program, or (ii) the date on which he or she completes thirty years 9 of credited service as a water supply police member. 10 3. Commencing with the first full payroll period after each person 11 becomes a participant in the twenty-five year retirement program, addi- 12 tional member contributions at the rate specified in paragraph one of 13 this subdivision shall be deducted (subject to the applicable provisions 14 of subdivision d of section six hundred thirteen of this article) from 15 the compensation of such participant on each and every payroll of such 16 participant for each and every payroll period for which he or she is 17 such a participant. 18 4. (i) Each participant in the twenty-five year retirement program 19 shall be charged with a contribution deficiency consisting of the total 20 amounts of additional member contributions such person is required to 21 make pursuant to paragraphs one and two of this subdivision which are 22 not deducted from his or her compensation pursuant to paragraph three of 23 this subdivision, if any, together with interest thereon, compounded 24 annually, and computed in accordance with the provisions of subpara- 25 graphs (ii) and (iii) of this paragraph. 26 (ii) (A) The interest required to be paid on each such amount speci- 27 fied in subparagraph (i) of this paragraph shall accrue from the end of 28 the payroll period for which such amount would have been deducted from 29 compensation if he or she had been a participant at the beginning of 30 that payroll period and such deduction had been required for such 31 payroll period, until such amount is paid to the retirement system. 32 (B) The rate of interest to be applied to each such amount during the 33 period for which interest accrues on that amount shall be equal to the 34 rate or rates of interest required by law to be used during that same 35 period to credit interest on the accumulated deductions of retirement 36 system members. 37 (iii) Except as otherwise provided in paragraph five of this subdivi- 38 sion, no interest shall be due on any unpaid additional member contrib- 39 utions which are not attributable to a period prior to the first full 40 payroll period referred to in paragraph three of this subdivision. 41 5. (i) Should any person who, pursuant to subparagraph (ii) of para- 42 graph ten of this subdivision, has received a refund of his or her addi- 43 tional member contributions including any interest paid on such contrib- 44 utions, again become a participant in the twenty-five year retirement 45 program pursuant to paragraph six of subdivision b of this section, an 46 appropriate amount shall be included in such participant's contribution 47 deficiency (including interest thereon as calculated pursuant to subpar- 48 agraph (ii) of this paragraph) for any credited service for which such 49 person received a refund of such additional member contributions 50 (including any amount of an unpaid loan balance deemed to have been 51 returned to such person pursuant to paragraph twelve of this subdivi- 52 sion), as if such additional member contributions never had been paid. 53 (ii) (A) Interest on a participant's additional member contributions 54 included in such participant's contribution deficiency pursuant to 55 subparagraph (i) of this paragraph shall be calculated as if such addi- 56 tional member contributions had never been paid by such participant, andS. 6573 13 1 such interest shall accrue from the end of the payroll period to which 2 an amount of such additional member contributions is attributable, until 3 such amount is paid to the retirement system. 4 (B) The rate of interest to be applied to each such amount during the 5 period for which interest accrues on that amount shall be five percent 6 per annum, compounded annually. 7 6. Where a participant who is otherwise eligible for service retire- 8 ment pursuant to subdivision c of this section did not, prior to the 9 effective date of retirement, pay the entire amount of a contribution 10 deficiency chargeable to him or her pursuant to paragraphs four and five 11 of this subdivision, or repay the entire amount of a loan of his or her 12 additional member contributions pursuant to paragraph eleven of this 13 subdivision (including accrued interest on such loan), that participant, 14 nevertheless, shall be eligible to retire pursuant to subdivision c of 15 this section, provided, however, that such participant's service retire- 16 ment benefit calculated pursuant to paragraph two of such subdivision c 17 shall be reduced by a life annuity (calculated in accordance with the 18 method set forth in subdivision i of section six hundred thirteen-b of 19 this article) which is actuarially equivalent to: 20 (i) the amount of any unpaid contribution deficiency chargeable to 21 such member pursuant to paragraphs four and five of this subdivision; 22 plus 23 (ii) the amount of any unpaid balance of a loan of his or her addi- 24 tional member contributions pursuant to paragraph eleven of this subdi- 25 vision (including accrued interest on such loan). 26 7. Where a participant who is otherwise eligible for a vested right to 27 a deferred benefit pursuant to subdivision d of this section did not, 28 prior to the date of discontinuance of service, pay the entire amount of 29 a contribution deficiency chargeable to him or her pursuant to para- 30 graphs four and five of this subdivision, or repay the entire amount of 31 a loan of his or her additional member contributions pursuant to para- 32 graph eleven of this subdivision (including accrued interest on such 33 loan), that participant, nevertheless, shall be eligible for a vested 34 right to a deferred benefit pursuant to subdivision d of this section, 35 provided, however, that the deferred vested benefit calculated pursuant 36 to paragraph three of such subdivision d shall be reduced by a life 37 annuity (calculated in accordance with the method set forth in subdivi- 38 sion i of section six hundred thirteen-b of this article) which is actu- 39 arially equivalent to: 40 (i) the amount of any unpaid contribution deficiency chargeable to 41 such member pursuant to paragraphs four and five of this subdivision; 42 plus 43 (ii) the amount of any unpaid balance of a loan of his or her addi- 44 tional member contributions pursuant to paragraph eleven of this subdi- 45 vision (including accrued interest on such loan). 46 8. The head of a retirement system which includes participants in the 47 twenty-five year retirement program in its membership may, consistent 48 with the provisions of this subdivision, promulgate regulations for the 49 payment of such additional member contributions, and any interest there- 50 on, by such participants (including the deduction of such contributions, 51 and any interest thereon, from the participant's compensation). 52 9. Subject to the provisions of paragraphs six and seven of this 53 subdivision, where a participant has not paid in full any contribution 54 deficiency chargeable to him or her pursuant to paragraphs four and five 55 of this subdivision, and a benefit, other than a refund of member 56 contributions pursuant to section six hundred thirteen of this articleS. 6573 14 1 or a refund of additional member contributions pursuant to subparagraph 2 (ii) of paragraph ten of this subdivision, becomes payable under this 3 article to the participant or to his or her designated beneficiary or 4 estate, the actuarial equivalent of any such unpaid amount shall be 5 deducted from the benefit otherwise payable. 6 10. (i) Such additional member contributions (and any interest there- 7 on) shall be paid into the contingent reserve fund of the retirement 8 system of which the participant is a member and shall not for any 9 purpose be deemed to be member contributions or accumulated contrib- 10 utions of a member under section six hundred thirteen of this article or 11 otherwise while he or she is a participant in the twenty-five year 12 retirement program or otherwise. 13 (ii) Should a participant in the twenty-five year retirement program 14 who has rendered less than five years of credited service cease to hold 15 a position as a water supply police member for any reason whatsoever, 16 his or her accumulated additional member contributions made pursuant to 17 this subdivision (together with any interest thereon paid to the retire- 18 ment system) may be withdrawn by him or her pursuant to procedures 19 promulgated in regulations of the board of trustees of the retirement 20 system, together with interest thereon at the rate of five percent per 21 annum, compounded annually. 22 (iii) Notwithstanding any other provision of law to the contrary, (A) 23 no person shall be permitted to withdraw from the retirement system any 24 additional member contributions paid pursuant to this subdivision or any 25 interest paid thereon, except pursuant to and in accordance with the 26 preceding subparagraphs of this paragraph; and (B) no person, while he 27 or she is a participant in the twenty-five year retirement program, 28 shall be permitted to withdraw any such additional member contributions 29 or any interest paid thereon pursuant to any of the preceding subpara- 30 graphs of this paragraph or otherwise. 31 11. A participant in the twenty-five year retirement program shall be 32 permitted to borrow from his or her additional member contributions 33 (including any interest paid thereon) which are credited to the addi- 34 tional contributions account established for such participant in the 35 contingent reserve fund of the retirement system. The borrowing from 36 such additional member contributions pursuant to this paragraph shall be 37 governed by the rights, privileges, obligations and procedures set forth 38 in section six hundred thirteen-b of this article which govern the 39 borrowing of member contributions made pursuant to section six hundred 40 thirteen of this article. The board of trustees of the retirement system 41 may, consistent with the provisions of this subdivision and the 42 provisions of section six hundred thirteen-b of this article as made 43 applicable to this subdivision, promulgate regulations governing the 44 borrowing of such additional member contributions. 45 12. Whenever a person has an unpaid balance of a loan of his or her 46 additional member contributions pursuant to paragraph eleven of this 47 subdivision at the time he or she becomes entitled to a refund of his or 48 her additional member contributions pursuant to subparagraph (ii) of 49 paragraph ten of this subdivision, the amount of such unpaid loan 50 balance (including accrued interest) shall be deemed to have been 51 returned to such member, and the refund of such additional contributions 52 shall be the net amount of such contributions, together with interest 53 thereon in accordance with the provisions of such subparagraph (ii). 54 § 6. Subdivision d of section 613 of the retirement and social securi- 55 ty law is amended by adding a new paragraph 12 to read as follows:S. 6573 15 1 12. (i) The city of New York shall, in the case of a water supply 2 police member (as defined in paragraph one of subdivision a of section 3 six hundred four-j of this article) who is a participant in the twenty- 4 five year retirement program (as defined in paragraph four of subdivi- 5 sion a of such section six hundred four-j), pick up and pay to the 6 retirement system of which such participant is a member, all additional 7 member contributions which otherwise would be required to be deducted 8 from such member's compensation pursuant to paragraphs one and two of 9 subdivision e of such section six hundred four-j (not including any 10 additional member contributions due for any period prior to the first 11 full payroll period referred to in paragraph three of such subdivision 12 e), and shall effect such pick up on each and every payroll of such 13 participant for each and every payroll period with respect to which such 14 paragraph three would otherwise require such deductions. 15 (ii) An amount equal to the amount of additional contributions picked 16 up pursuant to this paragraph shall be deducted by such employer from 17 the compensation of such member (as such compensation would be in the 18 absence of a pick up program applicable to him or her hereunder) and 19 shall not be paid to such member. 20 (iii) The additional member contributions picked up pursuant to this 21 paragraph for any such member shall be paid by such employer in lieu of 22 an equal amount of additional member contributions otherwise required to 23 be paid by such member under the applicable provisions of subdivision e 24 of section six hundred four-j of this article, and shall be deemed to be 25 and treated as employer contributions pursuant to section 414(h) of the 26 Internal Revenue Code. 27 (iv) For the purpose of determining the retirement system rights, 28 benefits and privileges of any member whose additional member contrib- 29 utions are picked up pursuant to this paragraph, such picked up addi- 30 tional member contributions shall be deemed to be and treated as part of 31 such member's additional member contributions under the applicable 32 provisions of subdivision e of section six hundred four-j of this arti- 33 cle. 34 (v) With the exception of federal income tax treatment, the additional 35 member contributions picked up pursuant to subparagraph (i) of this 36 paragraph shall for all other purposes, including computation of retire- 37 ment benefits and contributions by employers and employees, be deemed 38 employee salary. Nothing contained in this subdivision shall be 39 construed as superseding the provisions of section four hundred thirty- 40 one of this chapter, or any similar provision of law which limits the 41 salary base of computing retirement benefits payable by a public retire- 42 ment system. 43 § 7. Section 13-125.2 of the administrative code of the city of New 44 York is amended by adding a new subdivision a-9 to read as follows: 45 a-9. Notwithstanding any other provision of law to the contrary, on or 46 after the starting date for pick up, the employer responsible for pick 47 up shall, in the case of a water supply police member (as defined in 48 paragraph two of subdivision a of section four hundred forty-five-j of 49 the retirement and social security law) who is a participant in the 50 twenty-five year improved benefit retirement program (as defined in 51 paragraph three of such subdivision a of section four hundred forty- 52 five-j), pick up and pay to the retirement system all additional member 53 contributions which otherwise would be required to be deducted from such 54 member's compensation pursuant to subdivision d of such section four 55 hundred forty-five-j, and shall effect such pick up on each and every 56 payroll of such participant for each and every payroll period withS. 6573 16 1 respect to which such subdivision d would otherwise require such 2 deductions. 3 § 8. Subparagraph (ii) of paragraph 1 of subdivision c of section 4 13-125.2 of the administrative code of the city of New York, as amended 5 by chapter 682 of the laws of 2003, is amended to read as follows: 6 (ii) the determination of the amount of such member's Tier I or Tier 7 II nonuniformed-force member contributions eligible for pick up by the 8 employer or additional member contributions required to be picked up 9 pursuant to subdivision a-one, subdivision a-two, subdivision a-three, 10 subdivision a-four, subdivision a-five, subdivision a-six, subdivision 11 a-seven [or], subdivision a-eight, or subdivision a-9 of this section; 12 and 13 § 9. Subdivision d of section 13-125.2 of the administrative code of 14 the city of New York is amended by adding a new paragraph 2-h to read as 15 follows: 16 (2-h) For the purpose of determining the retirement system rights, 17 benefits and privileges of any member who is a participant in the twen- 18 ty-five year improved benefit retirement program (as defined in para- 19 graph three of subdivision a of section four hundred forty-five-j of the 20 retirement and social security law), the additional member contributions 21 of such participant picked up pursuant to subdivision a-nine of this 22 section shall be deemed to be and treated as a part of such member's 23 additional member contributions under subdivision d of such section four 24 hundred forty-five-j. 25 § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis- 26 trative code of the city of New York, as amended by chapter 682 of the 27 laws of 2003, is amended to read as follows: 28 (3) Interest on contributions picked up for any Tier I or Tier II 29 non-uniformed-force member pursuant to this section (other than addi- 30 tional member contributions picked up pursuant to subdivision a-one, 31 subdivision a-two, subdivision a-three, subdivision a-four, subdivision 32 a-five, subdivision a-six, subdivision a-seven [or], subdivision 33 a-eight, or subdivision a-nine of this section) shall accrue in favor of 34 the member and be payable to the retirement system at the same rate, for 35 the same time periods, in the same manner and under the same circum- 36 stances as interest would be required to accrue in favor of the member 37 and be payable to the retirement system on such contributions if they 38 were made by such member in the absence of a pick up program applicable 39 to such member under the provisions of this section. 40 § 11. Subdivision a of section 603 of the retirement and social secu- 41 rity law, as amended by chapter 18 of the laws of 2012, is amended to 42 read as follows: 43 a. The service retirement benefit specified in section six hundred 44 four of this article shall be payable to members who have met the mini- 45 mum service requirements upon retirement and attainment of age sixty- 46 two, other than members who are eligible for early service retirement 47 pursuant to subdivision c of section six hundred four-b of this article, 48 subdivision c of section six hundred four-c of this article, subdivision 49 d of section six hundred four-d of this article, subdivision c of 50 section six hundred four-e of this article, subdivision c of section six 51 hundred four-f of this article, subdivision c of section six hundred 52 four-g of this article, subdivision c of section six hundred four-h of 53 this article [or], subdivision c of section six hundred four-i of this 54 article, or subdivision c of section six hundred four-j of this article, 55 provided, however, a member of a teachers' retirement system or the New 56 York state and local employees' retirement system who first joins suchS. 6573 17 1 system before January first, two thousand ten or a member who is a 2 uniformed court officer or peace officer employed by the unified court 3 system who first becomes a member of the New York state and local 4 employees' retirement system before April first, two thousand twelve may 5 retire without reduction of his or her retirement benefit upon attain- 6 ment of at least fifty-five years of age and completion of thirty or 7 more years of service, provided, however, that a uniformed court officer 8 or peace officer employed by the unified court system who first becomes 9 a member of the New York state and local employees' retirement system on 10 or after January first, two thousand ten and retires without reduction 11 of his or her retirement benefit upon attainment of at least fifty-five 12 years of age and completion of thirty or more years of service pursuant 13 to this section shall be required to make the member contributions 14 required by subdivision f of section six hundred thirteen of this arti- 15 cle for all years of credited and creditable service, provided further 16 that the [the] preceding provisions of this subdivision shall not apply 17 to a New York city revised plan member. 18 § 12. Nothing contained in sections six and eleven of this act shall 19 be construed to create any contractual right with respect to members to 20 whom such sections apply. The provisions of such sections are intended 21 to afford members the advantages of certain benefits contained in the 22 Internal Revenue Code, and the effectiveness and existence of such 23 sections and benefits they confer are completely contingent thereon. 24 § 13. This act shall take effect immediately, provided, however that: 25 (a) The amendments to subdivision a of section 603 of the retirement 26 and social security law made by section eleven of this act shall not 27 affect the expiration of such subdivision as provided in subdivision (b) 28 of section 13 of chapter 682 of the laws of 2003, and shall expire ther- 29 ewith; 30 (b) The provisions of section six of this act shall remain in force 31 and effect only so long as, pursuant to federal law, contributions 32 picked up under section 613 of the retirement and social security law 33 are not includable as gross income of a member for federal income tax 34 purposes until distributed or made available to the member; and 35 (c) The amendments to provisions of section 13-125.2 of the adminis- 36 trative code of the city of New York made by sections seven, eight, nine 37 and ten of this act shall not affect the expiration of such provisions 38 as provided for in chapter 681 of the laws of 1992, as amended. FISCAL NOTE. -- Pursuant to Legislative Law, Section 50: PROVISIONS OF PROPOSED LEGISLATION: This proposed legislation would amend certain provisions of the Retirement and Social Security Law (RSSL) and the Administrative Code of the City of New York (ACCNY), and add RSSL Sections 445-j and 604-j to establish a 25-Year Retirement Program for Tier 2, 4, and 6 New York City Employees' Retirement System (NYCERS) members who are employed in the title of Water Supply Police (WSP 25-Year Plan). The Effective Date of the proposed legislation is the date of enact- ment. MEMBERS ELIGIBLE TO JOIN: Those NYCERS members who are sworn officers of the water-supply police employed by the City of New York (City), appointed to protect the sources, works, and transmission of water supplied to the City, and to protect persons on or in the vicinity of such water sources, works, and transmission pursuant to subdivision o of section 1.20 of the Criminal Procedure Law. For purposes of this Fiscal Note, these members are collectively referred to as "Water Supply Police Members."S. 6573 18 Participation in the WSP 25-Year Plan is optional for anyone who is eligible to participate in the plan on the date of enactment by filing an election form within 180 days of enactment. Anyone who is a member of NYCERS on the date of enactment and subsequently becomes employed as a Water Supply Police Member has 180 days to elect to join the WSP 25-Year Plan. Any Water Supply Police Member who becomes a Tier 6 NYCERS member after the date of enactment is mandated into the plan. However, if the member exceeds age 30 upon being mandated into the WSP 25-Year Plan, the member has the option not to participate. IMPACT ON BENEFITS: Currently, Water Supply Police Members generally participate in one of the NYCERS general plans (i.e., basic Tier 4 62/5 Plan, Tier 6 63/10 Plan or Improved Tier 4 57/5, 55/25 Plans). Note that since there are currently no Tier 2 Water Supply Police Members remain- ing, the following summary would only apply to Tier 4 and Tier 6 members. The proposed legislation would provide the following benefits to Water Supply Police Members under the WSP 25-Year Plan: * Service retirement benefit: Upon attaining 25 years of any NYCERS credited service, including service as a Water Supply Police Member, a benefit equal to 50% of Final Average Salary (FAS) for the first 25 years of credited service plus 2% of FAS for each additional year of credited service up to a maximum of 30 years of such service. *Final Average Salary: Three Year Average (FAS3) for Tier 4 members and Five Year Average (FAS5) for Tier 6 members. * Vested benefit: * Eligibility is: * At least five, but less than 25 years of credited service for Tier 4 and 6 members. * Payable at: * The date the member would have completed 25 years of credited service for Tier 4, and * Age 63 for Tier 6 * Amount * 2% of FAS for each year of credited service. * Other benefits: Members of the proposed WSP 25-Year Plan are enti- tled to the same disability and death benefits as other Tier 4 and Tier 6 members under the respective basic plans. ADDITIONAL MEMBER CONTRIBUTIONS: Members of the WSP 25-Year Plan are required to make, in addition to the 3% Basic Member Contributions, Additional Member Contributions equal to 6% of compensation for all service as a Plan participant on and after the starting date of the Plan for a maximum of 30 years. FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: With respect to NYCERS and based on the anticipated group of members joining the WSP 25-Year Plan and the actuarial assumptions and methods described herein, if the proposed legislation is enacted, the Actuarial Present Value (APV) of Benefits (APVB) would increase by approximately $0.8 million, consisting of APV of members contributions of approximately $0.5 million, and APV of future employer contributions of approximately $0.3 million. Under the Entry Age Actuarial Cost Method used to determine the employer contributions NYCERS, there would be an increase in the Unfunded Actuarial Accrued Liability (UAAL) of approximately $1.0 million offset by a decrease in the APV of future employer Normal Cost of $0.7 million.S. 6573 19 FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with ACCNY Section 13.638.2(k-2), the new UAAL estimated to be $1.0 million attributable to benefit changes is 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, 2016, the remaining working lifetime of the Water Supply Police Members assumed to join the WSP 25-Year Plan is approximately 12 years. Based on the actuarial assumptions and methods used in the June 30, 2016 valuations of NYCERS, the enactment of this proposed legislation would increase annual employer contributions by approximately $53,000 per year. The increase in employer contributions has been estimated assuming that the increase in UAAL would be financed over a 12-year period (11 payments under One-Year Lag Methodology) using level dollar payments. Regarding the timing of these increased contributions, if the Effec- tive Date of the proposed legislation is on or before June 30, 2017, then the increase in employer contributions would first be reflected in Fiscal Year 2019. 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 (OPED) costs. CENSUS DATA: The starting census data used for the calculations presented herein is that of the Preliminary June 30, 2016 (Lag) actuari- al valuation of NYCERS. Under the One Year Lag Methodology (OYLM), this was used to determine the Preliminary Fiscal Year 2018 employer contrib- utions for members who are eligible for and who could potentially bene- fit from this proposed legislation. The 21 Water Supply Police Members as of June 30, 2016 assumed to join the WSP 25-Year Plan had an average age of approximately 38.5, average service of approximately 15.3 years and an average salary of approxi- mately $70,300. ACTUARIAL ASSUMPTIONS AND METHODS: The additional employer contrib- utions presented herein have been calculated based on the actuarial assumptions and methods in effect for the June 30, 2016 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year 2018 employer contributions of NYCERS. To determine the impact of the elective nature of the proposed legis- lation, a subgroup of Water Supply Police Members was developed on the basis of 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 WSP 25-Year Plan. If the net APV of future employer cost under the WSP 25-Year Plan was greater than or equal to the APV of future employer cost under the member's current plan, the member was deemed to benefit actuarially. Based on this analysis, it was determined that those members who are hired after the age of 30 and have the option of joining the WSP 25-Year Plan in the future will not actuarially benefit in the Plan, and there- fore, it was assumed future Plan participation will be limited to those hired at the age of 30 or younger who are mandated into the Plan. However, since it is expected that Water Supply Police Members hired at the age of 30 or younger will generally not benefit under the plan (i.e., they have a decrease in APV of future employer costs as compared to the Tier 6 63/10 Plan they would otherwise participate in absent thisS. 6573 20 proposed legislation), the costs presented in this Fiscal Note are borne only from current NYCERS members who are assumed to benefit from, and thus opt to join, the WSP 25-Year Plan. STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu- ary for, and independent of, the New York City Pension Funds and Retire- ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries and a Member of the American Academy of Actuaries. I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. FISCAL NOTE IDENTIFICATION: This Fiscal Note 2017-25 dated June 1, 2017, was prepared by the Chief Actuary for the New York City Employees' Retirement System. This estimate is intended for use only during the 2017 Legislative Session.
