Bill Text: NY S06988 | 2021-2022 | General Assembly | Amended
Bill Title: Establishes twenty-five year retirement programs for members of the New York city employees' retirement system employed as fire protection inspectors and associate fire protection inspectors.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Vetoed) 2022-12-16 - VETOED MEMO.129 [S06988 Detail]
Download: New_York-2021-S06988-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6988--B 2021-2022 Regular Sessions IN SENATE May 20, 2021 ___________ Introduced by Sen. GOUNARDES -- 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 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 fire protection inspec- tors and associate fire protection inspectors The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision a of section 444 of the retirement and social 2 security law, as amended by section 141 of subpart B of part C of chap- 3 ter 62 of the laws of 2011, is amended to read as follows: 4 a. Except as provided in subdivision c of section four hundred forty- 5 five-a of this article, subdivision c of section four hundred forty- 6 five-b of this article, subdivision c of section four hundred forty- 7 five-c of this article, subdivision c of section four hundred 8 forty-five-d of this article as added by chapter four hundred seventy- 9 two of the laws of nineteen hundred ninety-five, subdivision c of 10 section four hundred forty-five-e of this article, subdivision c of 11 section four hundred forty-five-f of this article [and], subdivision c 12 of section four hundred forty-five-h of this article and subdivision c 13 of section four hundred forty-five-j of this article, the maximum 14 retirement benefit computed without optional modification provided to a 15 member of a retirement system who is subject to the provisions of this 16 article, other than a police officer, a firefighter, an investigator 17 member of the New York city employees' retirement system, a member of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08561-06-2S. 6988--B 2 1 the uniformed personnel in institutions under the jurisdiction of the 2 New York city department of correction who receives a performance of 3 duty disability retirement allowance, a member of the uniformed person- 4 nel in institutions under the jurisdiction of the department of 5 corrections and community supervision or a security hospital treatment 6 assistant, as those terms are defined in subdivision i of section eight- 7 y-nine of this chapter, who receives a performance of duty disability 8 retirement allowance, a member of a teachers' retirement system, New 9 York city employees' retirement system, New York city board of education 10 retirement system or a member of the New York state and local employees' 11 retirement system or a member of the New York city employees' retirement 12 system or New York city board of education retirement system employed as 13 a special officer, parking control specialist, school safety agent, 14 campus peace officer, taxi and limousine inspector or a police communi- 15 cations member and who receives a performance of duty disability 16 pension, from funds other than those based on a member's own or 17 increased-take-home-pay contributions, shall, before any reduction for 18 early retirement, be sixty per centum of the first fifteen thousand 19 three hundred dollars of final average salary, and fifty per centum of 20 final average salary in excess of fifteen thousand three hundred 21 dollars, and forty per centum of final average salary in excess of twen- 22 ty-seven thousand three hundred dollars, provided, however, that the 23 benefits provided by subdivision c of section four hundred forty-five-d 24 of this article as added by chapter four hundred seventy-two of the laws 25 of nineteen hundred ninety-five based upon the additional member 26 contributions required by subdivision d of such section four hundred 27 forty-five-d shall be subject to the maximum retirement benefit computa- 28 tions set forth in this section. The maximum retirement benefit computed 29 without optional modification payable to a police officer, an investi- 30 gator member of the New York city employees' retirement system or a 31 firefighter shall equal that payable upon completion of thirty years of 32 service, except that the maximum service retirement benefit computed 33 without optional modification shall equal that payable upon completion 34 of thirty-two years of service. 35 § 2. Subdivision a of section 445 of the retirement and social securi- 36 ty law, as amended by chapter 245 of the laws of 2021, is amended to 37 read as follows: 38 a. No member of a retirement system who is subject to the provisions 39 of this article shall retire without regard to age, exclusive of retire- 40 ment for disability, unless he or she is a police officer, an investi- 41 gator member of the New York city employees' retirement system, fire- 42 fighter, correction officer, a qualifying member as defined in section 43 eighty-nine-t, as added by chapter six hundred fifty-seven of the laws 44 of nineteen hundred ninety-eight, of this chapter, sanitation worker, a 45 special officer (including persons employed by the city of New York in 46 the title urban park ranger or associate urban park ranger), school 47 safety agent, campus peace officer or a taxi and limousine commission 48 inspector member of the New York city employees' retirement system or 49 the New York city board of education retirement system, a dispatcher 50 member of the New York city employees' retirement system, a police 51 communications member of the New York city employees' retirement system, 52 an EMT member of the New York city employees' retirement system, a depu- 53 ty sheriff member of the New York city employees' retirement system, a 54 fire protection inspector member of the New York city employees' retire- 55 ment system, a correction officer of the Westchester county correction 56 department as defined in section eighty-nine-e of this chapter orS. 6988--B 3 1 employed in Suffolk county as a peace officer, as defined in section 2 eighty-nine-s, as added by chapter five hundred eighty-eight of the laws 3 of nineteen hundred ninety-seven, of this chapter, employed in Suffolk 4 county as a correction officer, as defined in section eighty-nine-f of 5 this chapter, or employed in Nassau county as a correction officer, 6 uniformed correction division personnel, sheriff, undersheriff or deputy 7 sheriff, as defined in section eighty-nine-g of this chapter, or 8 employed in Nassau county as an ambulance medical technician, an ambu- 9 lance medical technician/supervisor or a member who performs ambulance 10 medical technician related services, or a police medic, police medic 11 supervisor or a member who performs police medic related services, as 12 defined in section eighty-nine-s, as amended by chapter five hundred 13 seventy-eight of the laws of nineteen hundred ninety-eight, of this 14 chapter, or employed in Nassau county as a peace officer, as defined in 15 section eighty-nine-s, as added by chapter five hundred ninety-five of 16 the laws of nineteen hundred ninety-seven, of this chapter, or employed 17 in Albany county as a sheriff, undersheriff, deputy sheriff, correction 18 officer or identification officer, as defined in section eighty-nine-h 19 of this chapter or is employed in St. Lawrence county as a sheriff, 20 undersheriff, deputy sheriff or correction officer, as defined in 21 section eighty-nine-i of this chapter or is employed in Orleans county 22 as a sheriff, undersheriff, deputy sheriff or correction officer, as 23 defined in section eighty-nine-l of this chapter or is employed in 24 Jefferson county as a sheriff, undersheriff, deputy sheriff or 25 correction officer, as defined in section eighty-nine-j of this chapter 26 or is employed in Onondaga county as a deputy sheriff-jail division 27 competitively appointed or as a correction officer, as defined in 28 section eighty-nine-k of this chapter or is employed in a county which 29 makes an election under subdivision j of section eighty-nine-p of this 30 chapter as a sheriff, undersheriff, deputy sheriff or correction officer 31 as defined in such section eighty-nine-p or is employed in Broome County 32 as a sheriff, undersheriff, deputy sheriff or correction officer, as 33 defined in section eighty-nine-m of this chapter or is a Monroe county 34 deputy sheriff-court security, or deputy sheriff-jailor as defined in 35 section eighty-nine-n, as added by chapter five hundred ninety-seven of 36 the laws of nineteen hundred ninety-one, of this chapter or is employed 37 in Greene county as a sheriff, undersheriff, deputy sheriff or 38 correction officer, as defined in section eighty-nine-o of this chapter 39 or is a traffic officer with the town of Elmira as defined in section 40 eighty-nine-q of this chapter or is employed by Suffolk county as a park 41 police officer, as defined in section eighty-nine-r of this chapter or 42 is a peace officer employed by a county probation department as defined 43 in section eighty-nine-t, as added by chapter six hundred three of the 44 laws of nineteen hundred ninety-eight, of this chapter or is employed in 45 Rockland county as a deputy sheriff-civil as defined in section eighty- 46 nine-v of this chapter as added by chapter four hundred forty-one of the 47 laws of two thousand one, or is employed in Rockland county as a superi- 48 or correction officer as defined in section eighty-nine-v of this chap- 49 ter as added by chapter five hundred fifty-six of the laws of two thou- 50 sand one or is a paramedic employed by the police department in the town 51 of Tonawanda and retires under the provisions of section eighty-nine-v 52 of this chapter, as added by chapter four hundred seventy-two of the 53 laws of two thousand one, or is a county fire marshal, supervising fire 54 marshal, fire marshal, assistant fire marshal, assistant chief fire 55 marshal or chief fire marshal employed by the county of Nassau as 56 defined in section eighty-nine-w of this chapter and is in a plan whichS. 6988--B 4 1 permits immediate retirement upon completion of a specified period of 2 service without regard to age. Except as provided in subdivision c of 3 section four hundred forty-five-a of this article, subdivision c of 4 section four hundred forty-five-b of this article, subdivision c of 5 section four hundred forty-five-c of this article, subdivision c of 6 section four hundred forty-five-d of this article, subdivision c of 7 section four hundred forty-five-e of this article, subdivision c of 8 section four hundred forty-five-f of this article [and], subdivision c 9 of section four hundred forty-five-h of this article, and subdivision c 10 of section four hundred forty-five-j of this article, a member in such a 11 plan and such an occupation, other than a police officer or investigator 12 member of the New York city employees' retirement system or a firefight- 13 er, shall not be permitted to retire prior to the completion of twenty- 14 five years of credited service; provided, however, if such a member in 15 such an occupation is in a plan which permits retirement upon completion 16 of twenty years of service regardless of age, he or she may retire upon 17 completion of twenty years of credited service and prior to the 18 completion of twenty-five years of service, but in such event the bene- 19 fit provided from funds other than those based on such a member's own 20 contributions shall not exceed two per centum of final average salary 21 per each year of credited service. 22 § 3. The retirement and social security law is amended by adding a new 23 section 445-j to read as follows: 24 § 445-j. Optional twenty-five year improved benefit retirement program 25 for fire protection inspector members. a. Definitions. The following 26 words and phrases as used in this section shall have the following mean- 27 ings unless a different meaning is plainly required by the context. 28 1. "Retirement system" shall mean the New York city employees' retire- 29 ment system. 30 2. "Fire protection inspector member" shall mean (i) a member of the 31 retirement system who is subject to the provisions of this article, who 32 is employed by the city of New York or by the New York city fire depart- 33 ment in a title whose duties are those of a fire protection inspector or 34 associate fire protection inspector; and (ii) a member of the retirement 35 system who, on the effective date of this section or thereafter, was 36 employed by the city of New York or by the New York city fire department 37 in a title whose duties are those of a fire protection inspector or 38 associate fire protection inspector and who, subsequent thereto, became 39 employed by the city of New York or by the New York city fire department 40 in a title whose duties require the supervision of employees whose 41 duties are those of a fire protection inspector or associate fire 42 protection inspector. 43 3. "Twenty-five year improved benefit retirement program" shall mean 44 all the terms and conditions of this section. 45 4. "Starting date of the twenty-five year improved benefit retirement 46 program" shall mean the effective date of this section, as such date is 47 certified pursuant to section forty-one of the legislative law. 48 5. "Participant in the twenty-five year improved benefit retirement 49 program" shall mean any fire protection inspector member who, under the 50 applicable provisions of subdivision b of this section, is entitled to 51 the rights, benefits and privileges and is subject to the obligations of 52 the twenty-five year improved benefit retirement program, as applicable 53 to him or her. 54 6. "Administrative code" shall mean the administrative code of the 55 city of New York.S. 6988--B 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 9. "Credited service" for purposes of this section shall mean all 8 service as a fire protection inspector member. 9 b. Election of twenty-five year improved benefit retirement program. 10 1. Subject to the provisions of paragraphs five and six of this subdivi- 11 sion, any person who is a fire protection inspector member on the start- 12 ing date of the twenty-five year improved benefit retirement program may 13 elect to become a participant in the twenty-five year improved benefit 14 retirement program by filing, within one hundred eighty days after such 15 starting date, a duly executed application for such participation with 16 the retirement system, provided he or she is such a fire protection 17 inspector member on the date such application is filed. 18 2. Subject to the provision of paragraphs five and six of the this 19 subdivision, any person who becomes a fire protection inspector member 20 after the starting date of the twenty-five year improved benefit retire- 21 ment program may elect to become a participant in the twenty-five year 22 improved benefit retirement program by filing, within one hundred eighty 23 days after becoming such a fire protection inspector member, a duly 24 executed application for such participation with the retirement system, 25 provided he or she is such a fire protection inspector member on the 26 date such application is filed. 27 3. Any election to be a participant in the twenty-five year improved 28 benefit retirement program shall be irrevocable. 29 4. Where any participant in the twenty-five year improved benefit 30 retirement program shall cease to hold a position as a fire protection 31 inspector member, he or she shall cease to be such a participant and, 32 during any period in which such a person does not hold such a fire 33 protection inspector position, he or she shall not be a participant in 34 the twenty-five year improved benefit retirement program and shall not 35 be eligible for the benefits of subdivision c of this section. 36 5. Where any participant in the twenty-five year improved benefit 37 retirement program terminates service as a fire protection inspector 38 member and returns to such service as a fire protection inspector member 39 at a later date, he or she shall again become such a participant on that 40 date. 41 6. Notwithstanding any other provision of law to the contrary, any 42 person who is eligible to become a participant in the twenty-five year 43 improved benefit retirement program pursuant to paragraph one or two of 44 this subdivision for the full one hundred eighty day period provided for 45 in such applicable paragraph and who fails to timely file a duly 46 executed application for such participation with the retirement system, 47 shall not thereafter be eligible to become a participant in such 48 program. 49 c. Service retirement benefits. Notwithstanding any other provision of 50 law to the contrary, where a participant in the twenty-five year 51 improved benefit retirement program, who is otherwise qualified for a 52 retirement allowance pursuant to the optional retirement provision set 53 forth in subdivision a of this section, has made and/or paid, while he 54 or she is a fire protection inspector member, all additional member 55 contributions and interest (if any) required by subdivision d of this 56 section, then:S. 6988--B 6 1 1. that participant, while he or she remains a participant, shall not 2 be subject to the provisions of subdivision a of section four hundred 3 forty-five of this article; and 4 2. if that participant, while such a participant, retires from 5 service, he or she shall not be subject to the provisions of section 6 four hundred forty-four of this article; and 7 3. his or her retirement allowance shall be an amount, on account of 8 the required minimum period of service, equal to the sum of (i) an annu- 9 ity which shall be the actuarial equivalent of the accumulated 10 deductions from his or her pay during such period, (ii) a pension for 11 increased-take-home-pay which shall be the actuarial equivalent of the 12 reserve for increased-take-home-pay to which he or she may be entitled, 13 for such period, and (iii) a pension which, when added to such annuity 14 and such pension for increased-take-home-pay, produces a retirement 15 allowance equal to fifty percent of his or her final average salary, 16 plus an amount for each additional year of allowable service as a fire 17 protection inspector member, or fraction thereof, beyond such required 18 minimum period of service equal to two percent of his or her final aver- 19 age salary for such allowable service as a fire protection inspector 20 member during the period from completion of twenty-five years of allow- 21 able service as a fire protection inspector member to the date of 22 retirement but not to exceed more than five years of additional service 23 as a fire protection inspector member. 24 d. Additional member contributions. 1. In addition to the member 25 contributions required pursuant to section 13-125 or 13-162 of the 26 administrative code, each participant in the twenty-five year improved 27 benefit retirement program shall contribute, subject to the applicable 28 provisions of section 13-125.2 of the administrative code, an additional 29 six and twenty-five one-hundredths percent of his or her compensation 30 earned from all allowable service as a fire protection inspector member, 31 as a participant in the twenty-five year improved benefit retirement 32 program, rendered on and after the starting date of the improved benefit 33 retirement program, and all allowable service as a fire protection 34 inspector member after such person ceases to be a participant, but 35 before he or she again becomes a participant pursuant to paragraph five 36 of subdivision b of this section. A participant in the twenty-five year 37 improved benefit retirement program shall contribute additional member 38 contributions until the later of the date as of which he or she is 39 eligible to retire with thirty years of allowable service as a fire 40 protection inspector member under such retirement program, or the first 41 anniversary of the starting date of the twenty-five year improved bene- 42 fit retirement program. The additional contributions required by this 43 section shall be in lieu of additional member contributions required by 44 subdivision d of section four hundred forty-five-d of this chapter, as 45 added by chapter ninety-six of the laws of nineteen hundred ninety-five, 46 and no member paying additional contributions pursuant to this section 47 shall be required to pay additional contributions pursuant to such 48 subdivision d of section four hundred forty-five-d of this article. 49 2. Commencing with the first full payroll period after each person 50 becomes a participant in the twenty-five year improved benefit retire- 51 ment program, additional member contributions at the rate specified in 52 paragraph one of this subdivision shall be deducted, subject to the 53 applicable provisions of section 13-125.2 of the administrative code, 54 from the compensation of such participant on each and every payroll of 55 such participant for each and every payroll period for which he or she 56 is such a participant.S. 6988--B 7 1 3. (i) Subject to the provisions of subparagraph (ii) of this para- 2 graph, where any additional member contributions required by paragraph 3 one of this subdivision are not paid by deductions from a participant's 4 compensation pursuant to paragraph two of this subdivision: 5 (A) that participant shall be charged with a contribution deficiency 6 consisting of such unpaid amounts, together with interest thereon, 7 compounded annually; and 8 (B) such interest on each amount of undeducted contributions shall 9 accrue from the end of the payroll period for which such amount would 10 have been deducted from compensation if he or she had been a participant 11 at the beginning of that payroll period and such deductions had been 12 required for such payroll period until such amount is paid to the 13 retirement system; and 14 (C) (1) interest on each such amount included in such participant's 15 contribution deficiency pursuant to this subparagraph shall be calcu- 16 lated as if such additional member contributions never had been paid by 17 such participant, and such interest shall accrue from the end of the 18 payroll period to which an amount of such additional member contribution 19 is attributable, compounded annually, until such amount is paid to the 20 retirement system; 21 (2) the rate of interest to be applied to each such amount during the 22 period for which interest accrues on that amount shall be equal to the 23 rate or rates of interest required by law to be used during that same 24 period to credit interest on the accumulated deductions of retirement 25 system members; 26 (ii) Except as provided in subparagraph (iii) of this paragraph, no 27 interest shall be due on any unpaid additional contributions which are 28 not attributable to the period prior to the first full payroll period 29 referred to in paragraph two of this subdivision; 30 (iii) Should any person who, pursuant to paragraph seven of this 31 subdivision has withdrawn any additional member contributions (and any 32 interest paid thereon) again become a participant in the twenty-five 33 year improved benefit retirement program pursuant to paragraph five of 34 subdivision b of this section, an appropriate amount shall be included 35 in such participant's contribution deficiency (including interest there- 36 on as calculated pursuant to this paragraph) for any credited service 37 with respect to which such person received a refund of additional member 38 contributions (including any amount of an unpaid loan balance deemed to 39 have been returned to such person pursuant to paragraph seven of this 40 subdivision), as if such additional member contributions never had been 41 paid. 42 4. The board of trustees of the retirement system may, consistent with 43 the provisions of this subdivision, promulgate regulations for the 44 payment of the additional member contributions required by this subdivi- 45 sion, and any interest thereon, by a participant in the twenty-five year 46 improved benefit retirement program (including the deduction of such 47 contributions, and any interest thereon, from his or her compensation). 48 5. Where a participant who is otherwise eligible for service retire- 49 ment pursuant to subdivision c of this section did not, prior to the 50 effective date of retirement, pay the entire amount of a contribution 51 deficiency chargeable to him or her pursuant to paragraph three of this 52 subdivision, or repay the entire amount of a loan of his or her addi- 53 tional member contributions pursuant to paragraph eight of this subdivi- 54 sion (including accrued interest on such loan), that participant, never- 55 theless, shall be eligible to retire pursuant to subdivision c of this 56 section, provided, however, that where such participant is not entitledS. 6988--B 8 1 to a refund of additional member contributions pursuant to paragraph 2 seven of this subdivision, such participant's service retirement benefit 3 calculated pursuant to the applicable provisions of subdivision c of 4 this section shall be reduced by a life annuity (calculated in accord- 5 ance with the method set forth in subdivision i of section six hundred 6 thirteen-b of this chapter) which is actuarially equivalent to (i) the 7 amount of any unpaid contribution deficiency chargeable to such member 8 pursuant to paragraph three of this subdivision; plus (ii) the amount of 9 any unpaid balance of a loan of his or her additional member contrib- 10 utions pursuant to paragraph eight of this subdivision (including 11 accrued interest on such loan). 12 6. Subject to the provisions of paragraph five of this subdivision, 13 where a participant has not paid in full any contribution deficiency 14 chargeable to him or her pursuant to paragraph three of this subdivi- 15 sion, and a benefit, other than a refund of a member's accumulated 16 deductions or a refund of additional member contributions pursuant to 17 paragraph seven of this subdivision, becomes payable by the retirement 18 system to the participant or to his or her designated beneficiary or 19 estate, the actuarial equivalent of any such unpaid amount shall be 20 deducted from the benefit otherwise payable. 21 7. (i) All additional member contributions required by this subdivi- 22 sion (and any interest thereon) which are received by the retirement 23 system shall be paid into its contingent reserve fund and shall be the 24 property of the retirement system. Such additional member contributions 25 (and any interest thereon) shall not for any purpose be deemed to be 26 member contributions or accumulated deductions of a member of the 27 retirement system under section 13-125 or 13-162 of the administrative 28 code while he or she is a participant in the twenty-five year improved 29 benefit retirement program or otherwise. 30 (ii) Should a participant in the twenty-five year improved benefit 31 retirement program, who has rendered less than fifteen years of credited 32 service cease to hold a position as a fire protection inspector member 33 for any reason whatsoever, his or her accumulated additional member 34 contributions made pursuant to this subdivision (together with any 35 interest thereon paid to the retirement system) which remain credited to 36 such participant's account may be withdrawn by him or her pursuant to 37 procedures promulgated in regulations of the board of trustees of the 38 retirement system, together with interest thereon at the rate of inter- 39 est required by law to be used to credit interest on the accumulated 40 deductions of retirement system members compounded annually. 41 (iii) Notwithstanding any other provision of law to the contrary, (A) 42 no person shall be permitted to withdraw from the retirement system any 43 additional member contributions paid pursuant to this subdivision or any 44 interest paid thereon, except pursuant to and in accordance with the 45 preceding subparagraphs of this paragraph; and 46 (B) no person, while he or she is a participant in the twenty-five 47 year improved benefit retirement program, shall be permitted to withdraw 48 any such additional member contributions or any interest paid thereon 49 pursuant to any of the preceding subparagraphs of this paragraph or 50 otherwise. 51 8. A participant in the twenty-five year improved benefit retirement 52 program shall be permitted to borrow from his or her additional member 53 contributions, including any interest paid thereon, which are credited 54 to the additional contributions account established for such participant 55 in the contingent reserve fund of the retirement system. The borrowing 56 from such additional member contributions pursuant to this paragraphS. 6988--B 9 1 shall be governed by the same rights, privileges, obligations and proce- 2 dures set forth in section six hundred thirteen-b of this chapter which 3 govern the borrowing by members subject to article fifteen of this chap- 4 ter of member contributions made pursuant to section six hundred thir- 5 teen of this chapter. The board of trustees of the retirement system 6 may, consistent with the provisions of this subdivision and the 7 provisions of section six hundred thirteen-b of this chapter as made 8 applicable to this subdivision, promulgate regulations governing the 9 borrowing of such additional member contributions. 10 9. Wherever a person has an unpaid balance of a loan of his or her 11 additional member contributions pursuant to paragraph eight of this 12 subdivision at the time he or she becomes entitled to a refund of his or 13 her additional member contributions pursuant to subparagraph (ii) of 14 paragraph seven of this subdivision, the amount of such unpaid loan 15 balance (including accrued interest) shall be deemed to have been 16 returned to such member, and the refund of such additional contributions 17 shall be the net amount of such contributions, together with interest 18 thereon in accordance with the provisions of such subparagraph. 19 10. Notwithstanding any other provision of law to the contrary, the 20 provisions of section one hundred thirty-eight-b of this chapter shall 21 not be applicable to the additional member contributions which are 22 required by this subdivision. 23 11. Notwithstanding any other provision of law to the contrary, the 24 additional member contributions which are required by this subdivision 25 shall not be reduced under any program for increased-take-home-pay. 26 e. The provisions of this section shall not be construed to provide 27 benefits to any participant in the twenty-five year improved benefit 28 retirement program which are greater than those which would be received 29 by a similarly situated member who is entitled to benefits under the 30 provisions of section 13-157.2 of the administrative code, but who is 31 not governed by the provisions of this article. 32 § 4. The retirement and social security law is amended by adding a new 33 section 604-j to read as follows: 34 § 604-j. Twenty-five year retirement program for fire protection 35 inspector members. a. Definitions. The following words and phrases as 36 used in this section shall have the following meanings unless a differ- 37 ent meaning is plainly required by the context. 38 1. "Fire protection inspector member" shall mean a member who is 39 employed by the city of New York or by the New York city fire department 40 in a title whose duties are those of a fire protection inspector or 41 associate fire protection inspector; or in a title whose duties require 42 the supervision of employees whose duties are those of a fire protection 43 inspector or associate fire protection inspector. 44 2. "Twenty-five year retirement program" shall mean all the terms and 45 conditions of this section. 46 3. "Starting date of the twenty-five year retirement program" shall 47 mean the effective date of this section. 48 4. "Participant in the twenty-five year retirement program" shall mean 49 any fire protection inspector member who, under the applicable 50 provisions of subdivision b of this section, is entitled to the rights, 51 benefits and privileges and is subject to the obligations of the twen- 52 ty-five year retirement program, as applicable to him or her. 53 5. "Discontinued member" shall mean a participant in the twenty-five 54 year retirement program who, while he or she was a fire protection 55 inspector member, discontinued service as such a member and has a right 56 to a deferred vested benefit under subdivision d of this section.S. 6988--B 10 1 6. "Administrative code" shall mean the administrative code of the 2 city of New York. 3 7. "Allowable service as a fire protection inspector member" shall 4 mean all service as a fire protection inspector member. 5 b. Participation in the twenty-five year retirement program. 1. 6 Subject to the provisions of paragraphs six and seven of this subdivi- 7 sion, any person who is a fire protection inspector member on the start- 8 ing date of the twenty-five year retirement program and who, as such a 9 fire protection inspector member or otherwise, last became subject to 10 the provisions of this article prior to such starting date, may elect to 11 become a participant in the twenty-five year retirement program by 12 filing, within one hundred eighty days after the starting date of the 13 twenty-five year retirement program, a duly executed application for 14 such participation with the retirement system of which such person is a 15 member, provided he or she is such a fire protection inspector member on 16 the date such application is filed. 17 2. Subject to the provisions of paragraphs six and seven of this 18 subdivision, any person who becomes a fire protection inspector member 19 after the starting date of the twenty-five year retirement program and 20 who, as such a fire protection inspector member or otherwise, last 21 became subject to the provisions of this article prior to such starting 22 date, may elect to become a participant in the twenty-five year retire- 23 ment program by filing, within one hundred eighty days after becoming 24 such a fire protection inspector member, a duly executed application for 25 such participation with the retirement system for which such person is a 26 member, provided he or she is such a fire protection inspector member on 27 the date such application is filed. 28 3. Each fire protection inspector member, other than a fire protection 29 inspector member subject to paragraph one or two of this subdivision, 30 who becomes subject to the provisions of this article on or after the 31 starting date of the twenty-five year retirement program shall become a 32 participant in the twenty-five year retirement program on the date he or 33 she becomes such a fire protection inspector member. Provided, however, 34 a person subject to this paragraph, and who has exceeded age twenty-five 35 upon employment as a fire protection inspector member, shall be exempt 36 from participation in the improved twenty-five year retirement program 37 if such person elects not to participate by filing a duly executed form 38 with the retirement system within one hundred eighty days of becoming a 39 fire protection inspector member. 40 4. Any election to be a participant in the twenty-five year retirement 41 program shall be irrevocable. 42 5. Where any participant in the twenty-five year retirement program 43 shall cease to be employed as a fire protection inspector member, he or 44 she shall cease to be such a participant and, during any period in which 45 such person is not so employed, he or she shall not be a participant in 46 the twenty-five year retirement program and shall not be eligible for 47 the benefits of subdivision c of this section. 48 6. Where any participant in the twenty-five year retirement program 49 terminates service as a fire protection inspector member and returns to 50 such service as a fire protection inspector member at a later date, he 51 or she shall again become such a participant on that date. 52 7. Notwithstanding any other provision of the law to the contrary, any 53 person who is eligible to elect to become a participant in the twenty- 54 five year retirement program pursuant to paragraph one or two of this 55 subdivision for the full one hundred eighty day period provided for in 56 such applicable paragraph and who fails to timely file a duly executedS. 6988--B 11 1 application for such participation with the retirement system, shall not 2 thereafter be eligible to become a participant in such program. 3 c. Service retirement benefits. 1. A participant in the twenty-five 4 year retirement program: 5 (i) who has completed twenty-five or more years of allowable service 6 as a fire protection inspector member; and 7 (ii) who has paid, before the effective date of retirement, all addi- 8 tional member contributions and interest (if any) required by subdivi- 9 sion e of this section; and 10 (iii) who files with the retirement system of which he or she is a 11 member an application for service retirement setting forth at what time, 12 not less than thirty days subsequent to the execution and filing there- 13 of, he or she desires to be retired; and 14 (iv) 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 the provisions of subdivision a-1 of section six 19 hundred three of this article, or any other provision of law to the 20 contrary, and subject to the provisions of paragraph six of subdivision 21 e of this section, the early service retirement benefit for participants 22 in the twenty-five year retirement program who retire pursuant to para- 23 graph one of this subdivision shall be a retirement allowance consisting 24 of: 25 (i) an amount, on account of the required minimum period of service, 26 equal to fifty percent of his or her final average salary; plus 27 (ii) an amount on account of allowable service as a fire protection 28 inspector member, or fraction thereof, beyond such required minimum 29 period of service equal to two percent of his or her final salary for 30 such allowable service as a fire protection inspector member during the 31 period from completion of twenty-five years of allowable service as a 32 fire protection inspector member to the date of retirement but not to 33 exceed more than five years of additional service as a fire protection 34 inspector member. 35 d. Vesting. 1. A participant in the twenty-five year retirement 36 program: 37 (i) who discontinues service as such a participant, other than by 38 death or retirement; and 39 (ii) in the case of a participant who is not a New York city revised 40 plan member, who prior to such discontinuance, completed five but less 41 than twenty-five years of allowable service as a fire protection inspec- 42 tor member or, in the case of a participant who is a New York city 43 revised plan member, who prior to such discontinuance, completed ten but 44 less than twenty-five years of allowable service as a fire protection 45 inspector member; and 46 (iii) who, subject to the provisions of paragraph seven of subdivision 47 e of this section, has paid, prior to such discontinuance, all addi- 48 tional member contributions and interest (if any) required by subdivi- 49 sion e of this section; and 50 (iv) who does not withdraw in whole or in part his or her accumulated 51 member contributions pursuant to section six hundred thirteen of this 52 article unless such participant thereafter returns to public service and 53 repays the amounts so withdrawn, together with interest, pursuant to 54 such section six hundred thirteen; shall be entitled to receive a 55 deferred vested benefit as provided in this subdivision.S. 6988--B 12 1 2. (i) Upon such discontinuance under the conditions and in compliance 2 with the provisions of paragraph one of this subdivision, such deferred 3 vested benefit shall vest automatically. 4 (ii) In the case of a participant who is not a New York city revised 5 plan member, such vested benefit shall become payable on the earliest 6 date on which such discontinued member could have retired for service if 7 such discontinuance had not occurred or, in the case of a participant 8 who is a New York city revised plan member, such vested benefit shall 9 become payable at age sixty-three. Subject to the provisions of para- 10 graph seven of subdivision e of this section, such deferred vested bene- 11 fit shall be a retirement allowance consisting of an amount equal to two 12 percent of such discontinued member's final average salary, multiplied 13 by the number of years of credited service. 14 e. Additional member contributions. 1. In addition to the member 15 contributions required by section six hundred thirteen of this article, 16 each participant in the twenty-five year retirement program shall 17 contribute to the retirement system of which he or she is a member 18 (subject to the applicable provisions of subdivision d of section six 19 hundred thirteen of this article and subject to the limitation provided 20 for in paragraph two of this subdivision) an additional six and twenty- 21 five one-hundredths percent of his or her compensation earned from (i) 22 all allowable service, as a participant in the twenty-five year retire- 23 ment program, rendered on or after the starting date of the twenty-five 24 year retirement program, and (ii) all allowable service after such 25 person ceases to be a participant, but before he or she again becomes a 26 participant pursuant to paragraph six of subdivision b of this section. 27 The additional contributions required by this section shall be in lieu 28 of additional member contributions required by subdivision d of section 29 six hundred four-c of this article, as added by chapter ninety-six of 30 the laws of nineteen hundred ninety-five, and no member making addi- 31 tional contributions pursuant to this section shall be required to make 32 contributions pursuant to such subdivision d of section six hundred 33 four-c of this article. Notwithstanding the foregoing provisions of this 34 paragraph, the additional member contribution required to be paid by 35 each participant pursuant to this paragraph shall not exceed the 36 percentage of his or her compensation that, when added to the contrib- 37 ution made pursuant to subdivision d of section six hundred thirteen of 38 this article, equals nine and twenty-five one-hundredths percent of that 39 compensation. 40 2. A participant in the twenty-five year retirement program shall 41 contribute additional member contributions until the later of (i) the 42 first anniversary of the starting date of the twenty-five year retire- 43 ment program, or (ii) the date on which he or she completes thirty years 44 of allowable service as a fire protection inspector member. 45 3. Commencing with the first full payroll period after each person 46 becomes a participant in the twenty-five year retirement program, addi- 47 tional member contributions at the rate specified in paragraph one of 48 this subdivision shall be deducted (subject to the applicable provisions 49 of subdivision d of section six hundred thirteen of this article) from 50 the compensation of such participant on each and every payroll of such 51 participant for each and every payroll period for which he or she is 52 such a participant. 53 4. (i) Each participant in the twenty-five year retirement program 54 shall be charged with a contribution deficiency consisting of the total 55 amounts of additional member contributions such person is required to 56 make pursuant to paragraphs one and two of this subdivision which areS. 6988--B 13 1 not deducted from his or her compensation pursuant to paragraph three of 2 this subdivision, if any, together with interest thereon, compounded 3 annually, and computed in accordance with the provisions of subpara- 4 graphs (ii) and (iii) of this paragraph. 5 (ii) (A) The interest required to be paid on each such amount speci- 6 fied in subparagraph (i) of this paragraph shall accrue from the end of 7 the payroll period for which such amount would have been deducted from 8 compensation if he or she had been a participant at the beginning of 9 that payroll period and such deduction had been required for such 10 payroll period, until such amount is paid to the retirement system. 11 (B) The rate of interest to be applied to each such amount during the 12 period for which interest accrues on that amount shall be equal to the 13 rate or rates of interest required by law to be used during that same 14 period to credit interest on the accumulated deductions of retirement 15 system members. 16 (iii) Except as otherwise provided in paragraph five of this subdivi- 17 sion, no interest shall be due on any unpaid additional member contrib- 18 utions which are not attributable to a period prior to the first full 19 payroll period referred to in paragraph three of this subdivision. 20 5. (i) Should any person who, pursuant to subparagraph (ii) of para- 21 graph ten of this subdivision, has received a refund of his or her addi- 22 tional member contribution including any interest paid on such contrib- 23 utions, again become a participant in the twenty-five year retirement 24 program pursuant to paragraph six of subdivision b of this section, an 25 appropriate amount shall be included in such participant's contribution 26 deficiency (including interest thereon as calculated pursuant to subpar- 27 agraph (ii) of this paragraph) for any credited service for which such 28 person received a refund of such additional member contributions 29 (including any amount of an unpaid loan balance deemed to have been 30 returned to such person pursuant to paragraph twelve of this subdivi- 31 sion), as if such additional member contributions never had been paid. 32 (ii)(A) Interest on a participant's additional member contributions 33 included in such participant's contribution deficiency pursuant to 34 subparagraph (i) of this paragraph shall be calculated as if such addi- 35 tional member contributions had never been paid by such participant, and 36 such interest shall accrue from the end of the payroll period to which 37 an amount of such additional member contributions is attributable, until 38 such amount is paid to the retirement system. 39 (B) The rate of interest to be applied to each such amount during the 40 period for which interest accrues on that amount shall be five percent 41 per annum, compounded annually. 42 6. Where a participant who is otherwise eligible for service retire- 43 ment pursuant to subdivision c of this section did not, prior to the 44 effective date of retirement, pay the entire amount of a contribution 45 deficiency chargeable to him or her pursuant to paragraphs four and five 46 of this subdivision, or repay the entire amount of a loan of his or her 47 additional member contributions pursuant to paragraph eleven of this 48 subdivision (including accrued interest on such loan), that participant, 49 nevertheless, shall be eligible to retire pursuant to subdivision c of 50 this section, provided, however, that such participant's service retire- 51 ment benefit calculated pursuant to paragraph two of such subdivision c 52 of this section shall be reduced by a life annuity (calculated in 53 accordance with the method set forth in subdivision i of section six 54 hundred thirteen-b of this article) which is actuarially equivalent to:S. 6988--B 14 1 (i) the amount of any unpaid contribution deficiency chargeable to 2 such member pursuant to paragraphs four and five of this subdivision; 3 plus 4 (ii) the amount of any unpaid balance of a loan of his or her addi- 5 tional member contributions pursuant to paragraph eleven of this subdi- 6 vision (including accrued interest on such loan). 7 7. Where a participant who is otherwise eligible for a vested right to 8 a deferred benefit pursuant to subdivision d of this section did not, 9 prior to the date of discontinuance of service, pay the entire amount of 10 a contribution deficiency chargeable to him or her pursuant to para- 11 graphs four and five of this subdivision, or repay the entire amount of 12 a loan of his or her additional member contributions pursuant to para- 13 graph eleven of this subdivision (including accrued interest on such 14 loan), that participant, nevertheless, shall have a vested right to a 15 deferred benefit pursuant to subdivision d of this section provided, 16 however, that the deferred vested benefit calculated pursuant to para- 17 graph two of subdivision d of this section shall be reduced by a life 18 annuity (calculated in accordance with the method set forth in subdivi- 19 sion i of section six hundred thirteen-b of this article) which is actu- 20 arially equivalent to: 21 (i) the amount of any unpaid contribution chargeable to such member 22 pursuant to paragraphs four and five of this subdivision; 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 a loan). 26 8. The head of a retirement system which includes participants in the 27 twenty-five year retirement program in its membership may, consistent 28 with the provisions of this subdivision, promulgate regulations for the 29 payment of such additional member contributions, and any interest there- 30 on, by such participants (including the deduction of such contributions, 31 and any interest thereon, from the participant's compensation). 32 9. Subject to the provisions of paragraphs six and seven of this 33 subdivision, where a participant has not paid in full any contribution 34 deficiency chargeable to him or her pursuant to paragraphs four and five 35 of this subdivision, and a benefit, other than a refund of member 36 contributions pursuant to section six hundred thirteen of this article 37 or a refund of additional member contributions pursuant to subparagraph 38 (ii) of paragraph ten of this subdivision, becomes payable under this 39 article to the participant or to his or her designated beneficiary or 40 estate, the actuarial equivalent of any such unpaid amount shall be 41 deducted from the benefit otherwise payable. 42 10. (i) Such additional member contributions (and any interest there- 43 on) shall be paid into the contingent reserve fund of the retirement 44 system of which the participant is a member and shall not for any 45 purpose be deemed to be member contributions or accumulated contrib- 46 utions of a member under section six hundred thirteen of this article or 47 otherwise while he or she is a participant in the twenty-five year 48 retirement program or otherwise. 49 (ii) Should a participant in the twenty-five year retirement program 50 who has rendered less than fifteen years of credited service cease to 51 hold a position as a fire protection inspector member for any reason 52 whatsoever, his or her accumulated additional member contributions made 53 pursuant to this subdivision (together with any interest thereon paid to 54 the retirement system) may be withdrawn by him or her pursuant to proce- 55 dures promulgated in regulations of the board of trustees of the retire-S. 6988--B 15 1 ment system, together with interest thereon at the rate of five percent 2 per annum, compounded annually. 3 (iii) Notwithstanding any other provision of law to the contrary, (A) 4 no person shall be permitted to withdraw from the retirement system any 5 additional member contributions paid pursuant to this subdivision or any 6 interest paid thereon, except pursuant to and in accordance with the 7 preceding subparagraphs of this paragraph; and (B) no person, while he 8 or she is a participant in the twenty-five year retirement program, 9 shall be permitted to withdraw any such additional member contributions 10 or any interest paid thereon pursuant to any of the preceding subpara- 11 graphs of this paragraph or otherwise. 12 11. A participant in the twenty-five year retirement program shall be 13 permitted to borrow from his or her additional member contributions 14 (including any interest paid thereon) which are credited to the addi- 15 tional contributions account established for such participant in the 16 contingent reserve fund of the retirement system. The borrowing from 17 such additional member contributions pursuant to this paragraph shall be 18 governed by the rights, privileges, obligations and procedures set forth 19 in section six hundred thirteen-b of this article which govern the 20 borrowing of member contributions made pursuant to section six hundred 21 thirteen of this article. The board of trustees of the retirement system 22 may, consistent with the provisions of this subdivision and the 23 provisions of section six hundred thirteen-b of this article as made 24 applicable to this subdivision, promulgate regulations governing the 25 borrowing of such additional member contributions. 26 12. Whenever a person has an unpaid balance of a loan or his or her 27 additional member contributions pursuant to paragraph eleven of this 28 subdivision at the time he or she becomes entitled to a refund of his or 29 her additional member contributions pursuant to subparagraph (ii) of 30 paragraph ten of this subdivision, the amount of such unpaid loan 31 balance (including accrued interest) shall be deemed to have been 32 returned to such member, and the refund of such additional contributions 33 shall be the net amount of such contribution, together with interest 34 thereon in accordance with the provisions of such subparagraph (ii). 35 § 5. Subdivision d of section 613 of the retirement and social securi- 36 ty law is amended by adding a new paragraph 12 to read as follows: 37 12. (i) The city of New York shall, in the case of a fire protection 38 inspector member (as defined in paragraph one of subdivision a of 39 section six hundred four-j of this article) who is a participant in the 40 twenty-five year retirement program (as defined in paragraph four of 41 subdivision a of such section six hundred four-j), pick up and pay to 42 the retirement system of which such participant is a member all addi- 43 tional member contributions which otherwise would be required to be 44 deducted from such member's compensation pursuant to paragraphs one and 45 two of subdivision e of such section six hundred four-j of this article 46 (not including any additional member contributions due for any period 47 prior to the first full payroll period referred to in such paragraph 48 three of such subdivision e), and shall effect such pick up in each and 49 every payroll of such participant for each and every payroll period with 50 respect to which such paragraph three would otherwise require such 51 deductions. 52 (ii) An amount equal to the amount of additional contributions picked 53 up pursuant to this paragraph shall be deducted by such employer from 54 the compensation of such member (as such compensation would be in the 55 absence of a pick up program applicable to him or her hereunder) and 56 shall not be paid to such member.S. 6988--B 16 1 (iii) The additional member contributions picked up pursuant to this 2 paragraph for any such member shall be paid by such employer in lieu of 3 an equal amount of additional member contributions otherwise required to 4 be paid by such member under the applicable provisions of subdivision e 5 of section six hundred four-j of this article, and shall be deemed to be 6 and treated as employer contributions pursuant to section 414(h) of the 7 Internal Revenue Code. 8 (iv) For the purpose of determining the retirement system rights, 9 benefits and privileges of any member whose additional member contrib- 10 utions are picked up pursuant to this paragraph, such picked up addi- 11 tional member contributions shall be deemed to be and treated as part of 12 such member's additional member contributions under the applicable 13 provisions of subdivision e of section six hundred four-j of this arti- 14 cle. 15 (v) With the exception of federal income tax treatment, the additional 16 member contributions picked up pursuant to subparagraph (i) of this 17 paragraph shall for all other purposes, including computation of retire- 18 ment benefits and contributions by employers and employees, be deemed 19 employee salary. Nothing contained in this subdivision shall be 20 construed as superseding the provisions of section four hundred thirty- 21 one of this chapter, or any similar provision of law which limits the 22 salary base for computing retirement benefits payable by a public 23 retirement system. 24 § 6. Section 13-125.2 of the administrative code of the city of New 25 York is amended by adding a new subdivision a-9 to read as follows: 26 a-9. Notwithstanding any other provision of law to the contrary, on or 27 after the starting date for pick up, the employer responsible for pick 28 up shall, in the case of a fire protection inspector member (as defined 29 in paragraph two of subdivision a of section four hundred forty-five-j 30 of the retirement and social security law) who is a participant in the 31 twenty-five year improved benefit retirement program (as defined in 32 paragraph three of such subdivision a), pick up and pay to the retire- 33 ment system all additional member contributions which otherwise would be 34 required to be deducted from such member's compensation pursuant to 35 subdivision d of such section four hundred forty-five-j, and shall 36 effect such pick up on each and every payroll of such participant for 37 each and every payroll period with respect to which such subdivision d 38 would otherwise require such deductions. 39 § 7. Subparagraph (ii) of paragraph 1 of subdivision c of section 40 13-125.2 of the administrative code of the city of New York, as amended 41 by chapter 682 of the laws of 2003, is amended to read as follows: 42 (ii) the determination of the amount of such member's Tier I or Tier 43 II nonuniformed-force member contributions eligible for pick up by the 44 employer or additional member contributions required to be picked up 45 pursuant to subdivision a-one, subdivision a-two, subdivision a-three, 46 subdivision a-four, subdivision a-five, subdivision a-six, subdivision 47 a-seven or subdivision a-eight of this section, or subdivision a-nine of 48 this section; and 49 § 8. Subdivision d of section 13-125.2 of the administrative code of 50 the city of New York is amended by adding a new paragraph 2-h to read as 51 follows: 52 (2-h) For the purpose of determining the retirement system rights, 53 benefits and privileges of any member who is a participant in the twen- 54 ty-five year retirement program (as defined in paragraph three of subdi- 55 vision a of section four hundred forty-five-j of the retirement and 56 social security law), the additional member contributions of suchS. 6988--B 17 1 participant picked up pursuant to subdivision a-nine of this section 2 shall be deemed to be and treated as a part of such member's additional 3 contributions under subdivision d of such section four hundred forty- 4 five-j. 5 § 9. Paragraph 3 of subdivision d of section 13-125.2 of the adminis- 6 trative code of the city of New York, as amended by chapter 682 of the 7 laws of 2003, is amended to read as follows: 8 (3) Interest on contributions picked up for any Tier I or Tier II 9 non-uniformed-force member pursuant to this section (other than addi- 10 tional member contributions picked up pursuant to subdivision a-one, 11 subdivision a-two, subdivision a-three, subdivision a-four, subdivision 12 a-five, subdivision a-six, subdivision a-seven [or], subdivision 13 a-eight, or subdivision a-nine of this section) shall accrue in favor of 14 the member and be payable to the retirement system at the same rate, for 15 the same time periods, in the same manner and under the same circum- 16 stances as interest would be required to accrue in favor of the member 17 and be payable to the retirement system on such contributions if they 18 were made by such member in the absence of a pick up program applicable 19 to such member under the provisions of this section. 20 § 10. Subdivision a of section 603 of the retirement and social secu- 21 rity law, as amended by chapter 18 of the laws of 2012, is amended to 22 read as follows: 23 a. The service retirement benefit specified in section six hundred 24 four of this article shall be payable to members who have met the mini- 25 mum service requirements upon retirement and attainment of age sixty- 26 two, other than members who are eligible for early service retirement 27 pursuant to subdivision c of section six hundred four-b of this article, 28 subdivision c of section six hundred four-c of this article, subdivision 29 d of section six hundred four-d of this article, subdivision c of 30 section six hundred four-e of this article, subdivision c of section six 31 hundred four-f of this article, subdivision c of section six hundred 32 four-g of this article, subdivision c of section six hundred four-h of 33 this article [or] subdivision c of section six hundred four-i of this 34 article, or subdivision c of section six hundred four-j of this article, 35 provided, however, a member of a teachers' retirement system or the New 36 York state and local employees' retirement system who first joins such 37 system before January first, two thousand ten or a member who is a 38 uniformed court officer or peace officer employed by the unified court 39 system who first becomes a member of the New York state and local 40 employees' retirement system before April first, two thousand twelve may 41 retire without reduction of his or her retirement benefit upon attain- 42 ment of at least fifty-five years of age and completion of thirty or 43 more years of service, provided, however, that a uniformed court officer 44 or peace officer employed by the unified court system who first becomes 45 a member of the New York state and local employees' retirement system on 46 or after January first, two thousand ten and retires without reduction 47 of his or her retirement benefit upon attainment of at least fifty-five 48 years of age and completion of thirty or more years of service pursuant 49 to this section shall be required to make the member contributions 50 required by subdivision f of section six hundred thirteen of this arti- 51 cle for all years of credited and creditable service, provided further 52 that the [the] preceding provisions of this subdivision shall not apply 53 to a New York city revised plan member. 54 § 11. Nothing contained in sections five and ten of this act shall be 55 construed to create any contractual right with respect to members to 56 whom such sections apply. The provisions of such sections are intendedS. 6988--B 18 1 to afford members the advantages of certain benefits contained in the 2 internal revenue code, and the effectiveness and existence of such 3 sections and benefits they confer are completely contingent thereon. 4 § 12. This act shall take effect immediately, provided, however that: 5 (a) The provisions of sections five and ten of this act shall remain 6 in full force and effect only so long as, pursuant to federal law, 7 contributions picked up under such sections are not includable as gross 8 income of a member for federal income tax purposes until distributed or 9 made available to the member; provided that the New York city employees' 10 retirement system shall notify the legislative bill drafting commission 11 upon the occurrence of such a change in federal law ruling affecting the 12 provisions of this act in order that the commission may maintain an 13 accurate and timely effective data base of the official text of the laws 14 of the state of New York in furtherance of effectuating the provisions 15 of section 44 of the legislative law and section 70-b of the public 16 officers law; 17 (b) The amendments to section 13-125.2 of the administrative code of 18 the city of New York made by sections six, seven, eight, and nine of 19 this act shall not affect the expiration of such section and shall be 20 deemed to expire therewith; and 21 (c) The amendments to subdivision a of section 603 of the retirement 22 and social security law made by section ten of this act shall not affect 23 the expiration of such subdivision and shall be deemed to expire there- 24 with. 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. BACKGROUND: Members whose duties are one of the following are eligible to participate in the FPI 25-Year Plans: * 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. For the purposes of this Fiscal Note, these members are collectively referred to as "Fire Protection 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 Protection Inspector also has 180 days to elect to join the appli- cable FPI 25-Year Plan. Any Fire Protection 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 Protection Inspector, to elect not to participate. IMPACT ON BENEFITS: Currently, Fire Protection Inspectors generally participate in one of the NYCERS general plans (i.e., basic Tier 4 62/5S. 6988--B 19 Plan, Tier 6 63/10 Plan, or Improved Tier 4 57/5, 55/25 Plans). Note that since there are no active Tier 2 Fire Protection Inspectors remain- ing, the following summary of the FPI 25-Year Plans is for Tier 4 and Tier 6 members only. The proposed legislation, if enacted, would provide the following benefits to Fire Protection Inspectors under the FPI 25-Year Plans: * Service retirement benefit: o 50% of Final Average Salary (FAS) for the first 25 years of Allow- able Service, plus o 2% of FAS for each additional year of Allowable Service, or fraction thereof, exceeding 25 years up to a maximum of 30 years of such service. * Final Average Salary: o Tier 4 - Three Year Average (FAS3). o Tier 6 - Five Year Average (FAS5). * Vested benefit: o Eligibility: * 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. o Payable at: * Tier 4 - The date the member would have completed 25 years of Allow- able Service. * Tier 6 - Age 63. o 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 (AMC) equal to 6.25% of compensation for all service as a Plan participant on and after the starting date of the Plan until the later of the one-year anniver- sary of the effective date of the Plans or 30 years of Allowable Service. In no event shall BMC plus AMC exceed 9.25% of compensation. FINANCIAL IMPACT - PRESENT VALUES: Based on the anticipated group of members joining the FPI 25-Year Plans and the actuarial assumptions and methods described herein, the enactment of this proposed legislation would increase the Present Value of Future Benefits (PVFB) by approxi- mately $2.6 million and increase the Present Value of member contrib- utions by approximately $1.4 million. The net result is an increase in the Present Value of future employer contributions of approximately $1.2 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 $1.1 million plus an increase in the Present Value of future employer Normal Cost of $0.1 million. FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with Section 13-638.2(k-2) of the ACCNY, new UAL attributable to benefit changes are to be amortized as determined by the Actuary but are gener- ally amortized over the remaining working lifetime of those impacted by the benefit changes. As of June 30, 2021, the remaining working lifetime of the Fire Protection Inspectors assumed to join the FPI 25-Year Plans is approximately 12 years.S. 6988--B 20 For the purposes of this Fiscal Note, the increase in UAL was amor- tized over a 12-year period (eleven payments under the One-Year Lag Methodology (OYLM)) using level dollar payments. This payment plus the increase in the Normal Cost results in an increase in annual employer contributions of approximately $290,000 each year. CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is assumed that the changes in the Present Value of future employer contributions and annual employer contributions would be reflected for the first time in the Preliminary June 30, 2022 actuarial valuation of NYCERS. In accordance with the OYLM used to determine employer contrib- utions, the increase in employer contributions would first be reflected in Fiscal Year 2024. CENSUS DATA: The estimates presented herein are based on the census data used in the Preliminary June 30, 2021 (Lag) actuarial valuation of NYCERS to determine the Preliminary Fiscal Year 2023 employer contrib- utions. The 66 NYCERS Fire Protection Inspectors as of June 30, 2021 assumed to join the FPI 25-Year Plans had an average age of approximately 42.3 years, average service of approximately 15.2 years, and an average sala- ry of approximately $79,700. ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of future employer contributions and annual employer contributions presented herein have been calculated based on the actuarial assumptions and methods in effect for the Preliminary June 30, 2021 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year 2023 employer contributions of NYCERS. To determine the impact of the elective nature of the proposed legis- lation, a subgroup of NYCERS Fire Protection Inspectors was developed based on who could potentially benefit actuarially. The net Present Value of future employer costs (i.e., the PVFB less the Present Value 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 Present Value of future employer cost under the FPI 25-Year Plan was greater than or equal to the Present Value of future employer cost under the member's current plan, the member was deemed to benefit actu- arially. Based on this analysis, it was determined that those members who are mandated into the FPI 25-Year Plan in the future will generally not benefit under the Plan (i.e., they will have a decrease in Present Value of future employer costs as compared to the Tier 6 63/10 Plan they would otherwise participate in, absent this proposed legislation), and there- fore 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 FPI-25 Year Plan. RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend highly on the realization of the actuarial assumptions used, as well as certain demographic characteristics of NYCERS and other exogenous factors such as investment, contribution, and other risks. If actual experience deviates from actuarial assumptions, the actual costs could differ from those presented herein. Costs are also dependent on the actuarial methods used, and therefore different actuarial methods could produce different results. Quantifying these risks is beyond the scope of this Fiscal Note. 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.S. 6988--B 21 * The impact of this proposed legislation on Other Postemployment Benefit (OPEB) costs. STATEMENT OF ACTUARIAL OPINION: I, Michael J. Samet, am the Interim Chief Actuary for, and independent of, the New York City Retirement Systems and Pension Funds. I am a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries. I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. To the best of my knowledge, the results contained herein have been prepared in accordance with generally accepted actuarial principles and procedures and with the Actuarial Standards of Practice issued by the Actuarial Standards Board. FISCAL NOTE IDENTIFICATION: This Fiscal Note 2022-37 dated April 27, 2022 was prepared by the Interim Chief Actuary for the New York City Employees' Retirement System. This estimate is intended for use only during the 2022 Legislative Session.
