Bill Text: NY S07128 | 2023-2024 | General Assembly | Amended
Bill Title: Relates to allowing certain members of the New York city fire department pension fund to receive a membership date in such fund attributable to service in the titles of police cadet program and police cadet program II in the New York city police department cadet program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-06-07 - returned to senate [S07128 Detail]
Download: New_York-2023-S07128-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7128--B 2023-2024 Regular Sessions IN SENATE May 18, 2023 ___________ 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 general municipal law, in relation to allowing certain members of the New York city fire department pension fund to receive a membership date in the New York city fire department pension fund attributable to service in the titles of police cadet program or police cadet program II in the New York city police department cadet program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 209-fff of the general municipal law, as added by 2 chapter 431 of the laws of 2019, is amended to read as follows: 3 § 209-fff. Provisions relating to a membership date in the New York 4 city police pension fund or the fire department pension fund attribut- 5 able to service in the titles of police cadet program and police cadet 6 program II in the New York city police department cadet program. 1. 7 Notwithstanding any provision of law to the contrary, upon election, any 8 member of the New York city police pension fund or the New York city 9 fire department pension fund who is subject to article fourteen of the 10 retirement and social security law, and who served in the New York city 11 police department cadet program in the title of police cadet program or 12 police cadet program II prior to April first, two thousand twelve, but 13 did not join the New York city employees' retirement system while serv- 14 ing in either such title, may purchase credit for the period of service 15 in such titles in the New York city police department cadet program by 16 paying into the New York city police pension fund or the New York city EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10936-06-4S. 7128--B 2 1 fire department pension fund all member contributions plus interest, at 2 a rate of five percent per annum, which would have been payable to the 3 New York city employees' retirement system under any provision of law 4 had such member joined the New York city employees' retirement system on 5 the earliest date that [he or she] such member was appointed to the 6 title of police cadet program or police cadet program II in the New York 7 city police department cadet program, provided such payment, for members 8 of the New York city police pension fund, is made within five years 9 [after] of the effective date of [this section] chapter four hundred 10 thirty-one of the laws of two thousand nineteen. For members of the New 11 York city fire department pension fund, such payment must be made within 12 five years of the effective date of the chapter of the laws of two thou- 13 sand twenty-four which amended this section. 14 2. Any member of the New York city police pension fund or the New York 15 city fire department pension fund who acquires service credit pursuant 16 to this section shall be entitled to all rights, benefits and privileges 17 to which [he or she] such member would have been entitled had [his or18her] such member's membership in the New York city police pension fund 19 or the New York city fire department pension fund begun upon the earli- 20 est date that [he or she] such member was appointed to the title of 21 police cadet program or police cadet program II in the New York city 22 police department cadet program, but in no event shall the service cred- 23 it acquired pursuant to this section be deemed to be: (a) service in the 24 police force or any other type of service counted or creditable as 25 service in the police force under section 13-218 of the administrative 26 code of the city of New York[,]; (b) service in the fire department of 27 the city of New York or any other type of service counted or creditable 28 as service in such fire department under section 13-318 of the adminis- 29 trative code of the city of New York; or (c) service under section five 30 hundred thirteen of the retirement and social security law or any other 31 provision of law for purposes of eligibility for benefits and to deter- 32 mine the amount of benefits under the New York city police pension fund 33 or the New York city fire department pension fund. 34 § 2. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would allow Tier 3 members of FIRE to purchase prior service as a cadet in the NYPD and use the appointment date as a cadet to determine the initial date of FIRE membership for plan or tier eligibility purposes provided such purchase of service is made within five years of the effective date of this legislation. ILLUSTRATION - INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($) Tier or Plan Change* Year To Tier 2 From Within Tier 3 2025 51,700 1,500 2026 51,700 1,500 2027 51,700 1,500 2028 51,700 1,500 2029 51,700 1,500 2030 51,700 1,500 2031 51,700 1,500 2032 51,700 1,500 2033 51,700 1,500 2034 51,700 1,500 2035 51,700 1,500S. 7128--B 3 2036 51,700 1,500 2037 51,700 1,500 2038 51,700 1,500 2039 0 0 2040 0 0 2041 0 0 2042 0 0 2043 0 0 2044 0 0 2045 0 0 2046 0 0 2047 0 0 2048 0 0 2049 0 0 * From Tier 3 (original, modified, or enhanced) to Tier 2 or from Tier 3 (modified or enhanced) to Tier 3 original. The potential increases in employer contributions will be allocated to New York City. EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES as of June 30, 2023 ($ in Thousands) Present Value (PV) To Tier 2 Within Tier 3 PV of Benefits: 390.6 14.4 PV of Employee Contributions: (46.8) 1.7 PV of Employer Contributions: 437.4 12.7 Unfunded Accrued Liabilities: 437.4 12.7 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY Recognized as Ongoing Gain/Loss To Tier 2 Within Tier 3 Number of Payments: 14 14 Amortization Payment: 51.7 K 1.5 K CENSUS DATA: The number of members who will benefit in the future from this fiscal note is unknown. The estimates presented herein are based on preliminary census data collected as of June 30, 2023. The census data for the potentially impacted population used to develop the average costs is summarized below. To Tier 2 Within Tier 3 Active Members - Number Count: 3,144 3,913 - Average Age: 35.9 34.3 - Average Service: 6.8 5.8 - Average Salary: 125,500 117,100 IMPACT ON MEMBER BENEFITS AND CONTRIBUTIONS: Currently, the purchase of prior NYPD cadet service performed while not a member of the New York City Employees' Retirement System (NYCERS) does not provide a retroac- tive date of membership in FIRE, nor would it provide additional service retirement benefits for Tier 3 members. Under the proposed legislation, purchased NYPD cadet service would entitle members with cadet service before July 1, 2009 to be deemed a Tier 2 member, and would be included in the calculation of benefits as non-qualifying service credit.S. 7128--B 4 Also, purchased NYPD cadet service would entitle members with cadet service between July 1, 2009 and April 1, 2012 to be deemed an original Tier 3 member. For cadets who did not join NYCERS, the member would have to pay member contributions that would have been payable to NYCERS had they joined on their initial cadet appointment date, plus 5.0% annual inter- est. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the Revised 2021 Actuarial Assumptions and Methods of the impacted retirement systems. Additionally, 1.2 years of cadet service was assumed based on the amount of cadet service previously purchased by members of the New York City Police Pension Fund. The number of members who will benefit in the future from this Fiscal Note is unknown. The cost of this proposed legislation could vary great- ly depending on the number of future members who benefit and on their length of service, age, and salary history. RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend highly on the actuarial assumptions, methods, and models used, demo- graphics of the impacted population and other factors such as invest- ment, contribution, and other risks. If actual experience deviates from actuarial assumptions, the actual costs could differ from those presented herein. Quantifying these risks is beyond the scope of this Fiscal Note. This Fiscal Note is intended to measure pension-related impacts and does not include other potential costs (e.g., administrative and Other Postemployment Benefits). STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov- sky are members of the Society of Actuaries and the American Academy of Actuaries. We are members of NYCERS but do not believe it impairs our objectivity and we meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. To the best of our knowledge, the results contained herein have been prepared in accordance with generally accepted actuarial principles and procedures and with the Actuarial Standards of Practice issued by the Actuarial Standards Board. FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-49 dated May 3, 2024 was prepared by the Chief Actuary for the New York City Retirement Systems and Pension Funds. This estimate is intended for use only during the 2024 Legislative Session.
