Bill Text: NY S07520 | 2023-2024 | General Assembly | Amended
Bill Title: Grants retroactive Tier IV membership in the New York city teachers' retirement system to certain employees employed by the city of Yonkers parks department for the period beginning in 2009 and ending in 2014.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-05-29 - PRINT NUMBER 7520B [S07520 Detail]
Download: New_York-2023-S07520-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7520--B 2023-2024 Regular Sessions IN SENATE June 2, 2023 ___________ Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT granting retroactive Tier IV membership in the New York city teachers' retirement system to certain employees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Notwithstanding any other provision of law, any person, who 2 is currently employed by the New York city department of education and a 3 member of the New York city teachers' retirement system, and who was 4 employed by the city of Yonkers parks department for the period begin- 5 ning in 2009 and ending in 2014, and who, for reasons not ascribable to 6 their own negligence, failed to become a member of the New York state 7 and local employees' retirement system during such employment with the 8 city of Yonkers parks department in 2009, shall be granted service cred- 9 it in the New York city teachers' retirement system for their employment 10 with the city of Yonkers parks department for the period beginning in 11 2009 and ending in 2014 and shall be granted Tier IV status in such 12 retirement system, provided that an application is filed with the head 13 of the New York city teachers' retirement system within one year from 14 the effective date of this act. 15 § 2. All past service costs associated with the implementation of this 16 act shall be borne by the city of New York. 17 § 3. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would permit active members of the New York City Teachers' Retirement System (TRS) who were employed by the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08665-08-4S. 7520--B 2 City of Yonkers Parks Department for a defined period to purchase service and to elect, by filing an application with TRS within one year of the effective date, retroactive membership in Tier 4. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($) Year TRS 2025 0 2026 14,700 2027 15,000 2028 15,300 2029 15,400 2030 15,700 2031 15,900 2032 16,300 2033 16,700 2034 17,000 2035 17,300 2036 17,600 2037 18,200 2038 19,000 2039 19,500 2040 20,100 2041 20,500 2042 20,900 2043 21,300 2044 14,600 2045 12,600 2046 8,400 2047 4,700 2048 1,600 2049 (800) Employer Contribution impact beyond Fiscal Year 2049 is not shown. The entire increase in employer contributions will be allocated to New York City. EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES as of June 30, 2024 ($) Present Value (PV) TRS PV of Benefits: 90,000 PV of Employee Contributions: (81,000) PV of Employer Contributions: 171,000 Unfunded Accrued Liabilities: 68,000 PV of Benefits includes the assumed refund of past contributions. AMORTIZATION OF UNFUNDED ACCRUED LIABILITY TRS Number of Payments: 18 Fiscal Year of Last Payment: 2043 Amortization Payment: 7,000S. 7520--B 3 Unfunded Accrued Liability increases for active members 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 one member who was specifically identified as being impacted by this proposed legislation. However, the actual number of members who may benefit from this proposed legislation is unknown. TRS Active Members - Number Count: 1 - Average Age: 36.0 - Average Service: 7.0 - Average Salary: 92,200 BACKGROUND: The proposed legislation would apply to TRS members currently employed by the New York City Department of Education, who were employed by the City of Yonkers Parks Department for the period beginning in 2009 and ending in 2014 and did not join the New York State and Local Employees' Retirement System during such employment. Under this proposed legislation, such members would receive service credit in TRS for their employment with the Yonkers Parks Department and would be granted retroactive Tier 4 membership. A change from Tier 6 to Tier 4 would result in an earlier date of retirement eligibility, lower overall employee contribution rates, and a larger benefit. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the Revised 2021 Actuarial Assumptions and Methods of the impacted retirement systems. For the purposes of this Fiscal Note, it was assumed that members will get a refund of past Tier 6 contributions that exceeded their applicable Tier 4 contribution rate, net of the amount required for the purchase of their prior service with the City of Yonkers Parks Department. 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). This Fiscal Note does not reflect any chapter laws that may have been enacted during the current legislative session. 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 2024-67 dated May 23, 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.
