Bill Text: NY S07423 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to membership in the New York City teachers' retirement system.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-04-29 - REFERRED TO CIVIL SERVICE AND PENSIONS [S07423 Detail]

Download: New_York-2015-S07423-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7423
                    IN SENATE
                                     April 29, 2016
                                       ___________
        Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
        AN ACT to amend the administrative code of the  city  of  New  York,  in
          relation  to  membership  in  the  New  York city teachers' retirement
          system
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Paragraph  (a)  of subdivision 7 of section 13-501 of the
     2  administrative code of the city of New York, as amended by  chapter  650
     3  of the laws of 1990, is amended to read as follows:
     4    (a)  "Teacher" shall mean the superintendent of schools, the associate
     5  superintendents, the assistant superintendents,  the  director  and  the
     6  assistant  director  of  the  divisions  of  reference and research, the
     7  director and the assistant directors of the bureau of compulsory  educa-
     8  tion, school census and child welfare, attendance teachers and specially
     9  certificated  attendance officers who are first employed by the New York
    10  city board of education on or after September  first,  nineteen  hundred
    11  sixty-eight,  attendance  teachers and specially certificated attendance
    12  officers who were members of  the  New  York  city  board  of  education
    13  retirement  system and who, on or before December thirty-first, nineteen
    14  hundred sixty-nine, gave notice to said board  of  education  retirement
    15  system  of  their  intention  to transfer to the New York city teachers'
    16  retirement system, the director of  attendance,  assistant  director  of
    17  attendance,  chief  attendance  officer, division supervising attendance
    18  officers and district supervising attendance officers of the  bureau  of
    19  compulsory  education,  school  census and child welfare, supervisors of
    20  school social workers who are first employed by the New York city  board
    21  of education on or after September first, nineteen hundred sixty-nine or
    22  who  were  members  of  the  New York city board of education retirement
    23  system and who on or  before  December  thirty-first,  nineteen  hundred
    24  seventy, gave notice to the said board of education retirement system of
    25  their  intention  to  transfer to the New York city teachers' retirement
    26  system, the members of the board of examiners,  the  directors  and  the
    27  assistant  directors  of  special branches, the supervisor and assistant
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15163-02-6
        S. 7423                             2
     1  supervisors of lectures, all principals, vice-principals, assistants-to-
     2  principals, heads of departments, and all regular and  special  teachers
     3  of the public day schools of the city, and all employees of the board of
     4  education  appointed  to  regular positions in the service of the public
     5  schools at annual salaries and whose appointments were made or shall  be
     6  made  from eligible lists prepared as the result of examinations held by
     7  the board of examiners or from hiring lists established by the  chancel-
     8  lor  of  the  board  of education, as the case may be, and all employees
     9  employed by the board of education in the titles of teacher aide, educa-
    10  tional assistant, educational associate,  auxiliary  trainer,  bilingual
    11  professional  assistant, family worker, family assistant, family associ-
    12  ate[,] or parent program assistant[, who file an application for member-
    13  ship in the retirement association on a form supplied by the  retirement
    14  board].
    15    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, section 50:
          This  proposed  legislation would amend paragraph (a) of subdivision 7
        of Section 13-501 of the Administrative Code of the City of New York  to
        mandate  paraprofessionals  into  the New York City Teachers' Retirement
        System (TRS). Under current law, paraprofessionals have  the  option  of
        joining TRS.
          The  effective  date  of the proposed legislation would be the date of
        enactment.
          FINANCIAL  IMPACT  -  ADDITIONAL  ANNUAL  EMPLOYER  CONTRIBUTIONS:  If
        enacted  into  law,  the ultimate employer cost for this proposed legis-
        lation would be based on the number, ages, years of service  and  salary
        of  those  paraprofessionals  that  would  otherwise not have elected to
        become members of TRS.
          In order to estimate this group, we were provided with census data  of
        approximately  5,600 paraprofessionals who are not members of TRS. Based
        on this data and the population of paraprofessionals  who  have  already
        joined TRS, we have estimated that approximately 2,700 paraprofessionals
        would become members of TRS if this proposed legislation is enacted. The
        remaining 2,900 paraprofessionals were assumed to have become members of
        TRS at some point in their career even absent the proposed legislation.
          Based on these assumptions and other actuarial assumptions and methods
        in effect for the June 30, 2015 (Lag) actuarial valuation used to deter-
        mine the Preliminary Fiscal Year 2017 employer contributions for TRS, we
        have  estimated  the annual cost of this legislation to be $7.3 million.
        However, the total increase in employer contributions  for  Fiscal  Year
        2017  would  be  approximately $15 million for the entire group of 5,600
        paraprofessionals who would be mandated into the plan  in  the  proposed
        legislation  is  enacted.  This  amount  includes the cost for the 2,900
        paraprofessionals whose membership is being  accelerated  into  TRS  and
        would  have  become  members  of  TRS  even  absent the enactment of the
        proposed legislation. The additional annual employer contributions asso-
        ciated with the 2,700 paraprofessionals who are assumed  to  become  TRS
        members  only  if the proposed legislation is enacted has been estimated
        to be $7.3 million of the $15 million. This employer contribution amount
        is representative of the annual employer contribution  amount  for  each
        future year if member participation does not significantly change.
          Note that the total increase in employer contributions for Fiscal Year
        2017  would  be approximately $15 million. However, this amount includes
        the cost for those paraprofessionals whose membership is being  acceler-
        ated  into TRS and would have become members of TRS absent the enactment
        of the proposed legislation.
        S. 7423                             3
          If enacted on or before June 30, 2016,  these  additional  paraprofes-
        sionals  would likely be included in the census data as of June 30, 2016
        and if so the increase in employer contributions to TRS would  first  be
        reflected in Fiscal Year 2018.
          OTHER COSTS: Not measured in this Fiscal Note are the following poten-
        tial costs:
          * The additional administrative costs to TRS to implement the proposed
        legislation.
          *  The  impact  of  this  proposed legislation on Other Postemployment
        Benefit (OPEB) costs.
          STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
        ary  for  the New York City Retirement Systems. I am an Associate of the
        Society of Actuaries, a Fellow of the Conference of Consulting Actuaries
        and a Member of the American Academy of Actuaries. I meet the Qualifica-
        tion Standards of the American Academy of Actuaries to render the  actu-
        arial opinion contained herein.
          FISCAL  NOTE  IDENTIFICATION: This Fiscal Note 2016-21 dated April 19,
        2016, was prepared by the Chief Actuary for the New York City  Teachers'
        Retirement  System.  This  estimate  is intended for use only during the
        2016 Legislative Session.