Bill Text: NY S07714 | 2023-2024 | General Assembly | Amended
Bill Title: Restores 20 year service retirement for New York city police officers.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced) 2024-02-26 - PRINT NUMBER 7714A [S07714 Detail]
Download: New_York-2023-S07714-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7714--A 2023-2024 Regular Sessions IN SENATE October 18, 2023 ___________ Introduced by Sens. CHU, JACKSON, PERSAUD, SCARCELLA-SPANTON, SKOUFIS -- 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 AN ACT to amend the retirement and social security law, in relation to the restoration of 20 year service retirement for New York city police officers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 17 of section 501 of the retirement and social 2 security law, as amended by chapter 18 of the laws of 2012, is amended 3 to read as follows: 4 17. "Normal retirement age" shall be age sixty-two, for general 5 members, and the age at which a member completes or would have completed 6 twenty-two years of service, for police/fire members, New York city 7 uniformed correction/sanitation revised plan members and investigator 8 revised plan members, except that for police/fire members of the New 9 York city police pension fund, normal retirement age shall be the age at 10 which a member completes or would have completed twenty years of 11 service. 12 § 2. Subdivision d of section 503 of the retirement and social securi- 13 ty law, as amended by chapter 18 of the laws of 2012, is amended to read 14 as follows: 15 d. The normal service retirement benefit specified in section five 16 hundred five of this article shall be paid to police/fire members, New 17 York city uniformed correction/sanitation revised plan members and 18 investigator revised plan members without regard to age upon retirement 19 after twenty-two years of service, except that the normal service 20 retirement benefit specified in section five hundred five of this arti- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11368-04-4S. 7714--A 2 1 cle shall be paid to police/fire members of the New York city police 2 pension fund, after twenty years of service. Early service retirement 3 shall be permitted upon retirement after twenty years of credited 4 service or attainment of age sixty-two, provided, however, that New York 5 city police/fire revised plan members, New York city uniformed 6 correction/sanitation revised plan members and investigator revised plan 7 members shall not be eligible to retire for service prior to the attain- 8 ment of twenty years of credited service. 9 § 3. Section 505 of the retirement and social security law is amended 10 by adding a new subdivision d to read as follows: 11 d. Notwithstanding anything to the contrary in any other law, 12 police/fire members of the New York city police pension fund shall be 13 eligible for a normal service retirement benefit in lieu of an early 14 service retirement benefit upon completing twenty years of service 15 pursuant to subdivision d of section five hundred three of this article. 16 § 4. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would reduce the Normal Retirement Age for Tier 3 original, revised, and enhanced plan members of the New York City Police Pension Fund (POLICE) to be the age at which a member completes or would have completed twenty years of service. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Millions) Year POLICE 2025 12.5 2026 13.3 2027 14.4 2028 15.6 2029 16.7 2030 17.9 2031 18.9 2032 19.8 2033 20.7 2034 21.5 2035 22.4 2036 23.2 2037 24.1 2038 24.8 2039 25.6 2040 26.4 2041 22.1 2042 22.9 2043 23.7 2044 24.5 2045 25.2 2046 26.0 2047 26.7 2048 27.4 2049 28.2 Employer Contribution impact beyond Fiscal Year 2049 is not shown. Projected contributions include future new hires that may be impacted. The entire increase in employer contributions will be allocated to New York City.S. 7714--A 3 INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES as of June 30, 2023 ($ in Millions) Present Value (PV) POLICE PV of Benefits: 85.0 PV of Employee Contributions: (9.1) PV of Employer Contributions: 94.0 Unfunded Accrued Liabilities: 45.6 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY POLICE Number of Payments: 16 Fiscal Year of Last Payment: 2040 Amortization Payment: 5.0 M Unfunded Accrued Liability increases 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. POLICE Active Members - Number Count: 20,176 - Average Age: 32.8 - Average Service: 6.1 - Average Salary: 107,600 IMPACT ON MEMBER BENEFITS: Currently, Tier 3 POLICE members who retire with at least 20 years of service are eligible to receive an annual benefit that is equal to 42% of Final Average Salary (FAS), plus 0.33% of FAS for each month of service (up to 24 months) in excess of 20 years of service, resulting in a benefit of 50% of FAS after 22 years of service. Under the proposed legislation, Tier 3 POLICE members who retire with at least 20 years of service would be eligible to receive an annual benefit that is equal to 50% of FAS. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the Revised 2021 Actuarial Assumptions and Methods of the impacted retirement systems except for: * Retirement rates were adjusted to reflect the earlier payability of the service retirement benefit associated with the proposed legislation. * New entrants were assumed to replace exiting members so that total payroll increases by 3% each year for impacted groups. New entrant demo- graphics were developed based on data for recent new hires and actuarial judgement. 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).S. 7714--A 4 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 2024-13 dated February 7, 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.
