Bill Text: NY S07181 | 2023-2024 | General Assembly | Amended
Bill Title: Permits certain twenty-five year retirement program dispatcher members to file elections not to participate.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-06-05 - SUBSTITUTED BY A7693A [S07181 Detail]
Download: New_York-2023-S07181-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7181--B 2023-2024 Regular Sessions IN SENATE May 18, 2023 ___________ Introduced by Sen. JACKSON -- 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, in relation to permitting certain twenty-five year retirement program dispatcher members to file elections not to participate The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 604-e of the retirement and social security law, as 2 added by chapter 576 of the laws of 2000, is amended by adding a new 3 subdivision f to read as follows: 4 f. 1. Notwithstanding any provision of law to the contrary, a 5 dispatcher member who exceeded age thirty upon employment as a dispatch- 6 er member and failed to file their election not to participate with the 7 retirement system within one hundred eighty days of becoming a dispatch- 8 er member, as required by paragraph three of subdivision b of this 9 section, may file such an election with the retirement system within one 10 hundred eighty days of the effective date of this subdivision. 11 2. The retirement system shall post, and announce on its homepage the 12 posting of, the form and corresponding instructions for dispatcher 13 members to elect not to participate on its website no later than thirty 14 days after the effective date of this subdivision. 15 3. If the retirement system fails to post and announce the form and 16 corresponding instructions no later than thirty days after the effective 17 date of this subdivision, as prescribed by paragraph two of this subdi- 18 vision, the period for a dispatcher member to elect not to participate 19 prescribed by paragraph one of this subdivision shall be extended by EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11083-04-4S. 7181--B 2 1 sixty days for each month or part thereof that such form and 2 instructions are not posted to the retirement system's website. 3 § 2. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would allow New York City Employees' Retirement System (NYCERS) Tier 4 and Tier 6 members who are members of a Dispatcher 25-Year Retirement Plan and were older than age 30 when they joined the plan, another 180-day period to opt out of the plan. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($) Year NYCERS 2025 516,000 2026 521,000 2027 524,000 2028 528,000 2029 530,000 2030 531,000 2031 532,000 2032 530,000 2033 527,000 2034 523,000 2035 518,000 2036 512,000 2037 505,000 2038 172,000 2039 164,000 2040 154,000 2041 145,000 2042 135,000 2043 126,000 2044 116,000 2045 106,000 2046 96,000 2047 88,000 2048 78,000 2049 69,000 Employer Contribution impact beyond Fiscal Year 2049 is not shown. The entire increase in employer contributions will be allocated to New York City. EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES as of June 30, 2023 ($ in Millions) Present Value (PV) NYCERS PV of Benefits: 2.8 PV of Employee Contributions: (1.9) PV of Employer Contributions: 4.7 Unfunded Accrued Liabilities: 2.6 PV of Benefits includes the assumed refund of AMC balances. AMORTIZATION OF UNFUNDED ACCRUED LIABILITY NYCERS Number of Payments: 13S. 7181--B 3 Fiscal Year of Last Payment: 2037 Amortization Payment: 325,000 Unfunded Accrued Liability (UAL) increases for actives were amortized over the expected remaining working lifetime of those impacted by the benefit changes using level dollar payments. CENSUS DATA: The estimates presented herein are based on preliminary census data collected as of June 30, 2023. The census data for the impacted population is summarized below. NYCERS Active Members - Number Count: 54 - Average Age: 46.3 - Average Service: 13.1 - Average Salary: 79,400 BACKGROUND: Currently, Tier 4 or Tier 6 NYCERS members who exceed age 30 upon being mandated into a Dispatcher 25-Year Plan, have the option to irrevocably opt out of the plan within 180 days. Members who opt out of the plan are generally placed into one of the Tier 4 or Tier 6 under- lying plans. Under the proposed legislation, such members who failed to opt out of the Dispatcher 25-Year Plan in the original 180 days would have another 180-day period in which to opt out of the Plan. For the purposes of this Fiscal Note, it is assumed that members who opt out of the Dispatcher 25-Year Plan under the proposed legislation would be entitled to an immediate refund of excess Additional Member Contributions (AMC), with interest. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the actuarial assumptions and methods to be used for the Preliminary Fiscal Year 2025 employer contributions of the impacted retirement systems. To determine the impact of the elective nature of the proposed legis- lation, a subgroup of members was developed based on who is assumed to benefit actuarially by comparing the net present value of future employ- er costs of each member’s benefit under their current plan and under their applicable underlying plan. 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 andS. 7181--B 4 procedures and with the Actuarial Standards of Practice issued by the Actuarial Standards Board. FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-09 dated January 25, 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.
