Bill Text: NY S08557 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to the rate of interest used in the actuarial valuation of liabilities for the purpose of calculating contributions to the New York city employees' retirement system, the New York city teachers' retirement system, the police pension fund, the fire department pension fund and the board of education retirement system of such city by public employers and other obligors required to make employer contributions to such retirement systems, the crediting of special interest and additional interest to members of such retirement systems, and the allowance of supplementary interest on the funds of such retirement systems.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-06-13 - SUBSTITUTED BY A10676 [S08557 Detail]
Download: New_York-2017-S08557-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8557--A IN SENATE May 10, 2018 ___________ Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Cities -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the administrative code of the city of New York, in relation to the rate of interest used in the actuarial valuation of liabilities for the purpose of calculating contributions to the New York city employees' retirement system, the New York city teachers' retirement system, the police pension fund, subchapter two, the fire department pension fund, subchapter two and the board of education retirement system of such city by public employers and other obligors required to make employer contributions to such retirement systems, the crediting of special interest and additional interest to members of such retirement systems, and the allowance of supplementary inter- est on the funds of such retirement systems The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 2 of subdivision b of section 13-638.2 of the 2 administrative code of the city of New York, as amended by chapter 71 of 3 the laws of 2017, is amended to read as follows: 4 (2) With respect to each retirement system, such rate of interest 5 shall be as hereinafter set forth in this paragraph: 6 First day and 7 last day of 8 Rate of interest fiscal year or 9 per centum per series of fiscal 10 Retirement annum, compounded years for which 11 System annually rate is effective 12 ________________________________________________________________________ 13 NYCERS 7% July 1, 2011 to 14 June 30, [2018] 2019 15 NYCTRS 7% July 1, 2011 to 16 June 30, [2018] 2019 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15846-03-8S. 8557--A 2 1 PPF 7% July 1, 2011 to 2 June 30, [2018] 2019 3 FPF 7% July 1, 2011 to 4 June 30, [2018] 2019 5 BERS 7% July 1, 2011 to 6 June 30, [2018] 2019 7 § 2. Paragraph 2 of subdivision f of section 13-638.2 of the adminis- 8 trative code of the city of New York, as amended by chapter 71 of the 9 laws of 2017, is amended to read as follows: 10 (2) Such special interest shall be allowed at the rates and for the 11 periods set forth below in this paragraph: 12 First day and 13 last day of 14 Rate of interest fiscal year or 15 per centum per series of fiscal 16 Retirement annum, compounded years for which 17 System annually rate is effective 18 ________________________________________________________________________ 19 NYCERS 1 1/4% July 1, 2011 to 20 June 30, [2018] 2019 21 NYCTRS 1 1/4% July 1, 2011 to 22 June 30, [2018] 2019 23 PPF 1 1/4% July 1, 2011 to 24 June 30, [2018] 2019 25 FPF 1 1/4% July 1, 2011 to 26 June 30, [2018] 2019 27 BERS 1 1/4% July 1, 2011 to 28 June 30, [2018] 2019 29 § 3. Paragraph 2 of subdivision g of section 13-638.2 of the adminis- 30 trative code of the city of New York, as amended by chapter 71 of the 31 laws of 2017, is amended to read as follows: 32 (2) Such additional interest shall be included at the rates and for 33 the periods set forth below in this paragraph: 34 First day and 35 last day of 36 Rate of interest fiscal year or 37 per centum per series of fiscal 38 Retirement annum, compounded years for which 39 System annually rate is effective 40 ________________________________________________________________________ 41 NYCERS 1 1/4% July 1, 2011 to 42 June 30, [2018] 2019 43 NYCTRS 1 1/4% July 1, 2011 to 44 June 30, [2018] 2019 45 PPF 1 1/4% July 1, 2011 to 46 June 30, [2018] 2019 47 FPF 1 1/4% July 1, 2011 to 48 June 30, [2018] 2019 49 BERS 1 1/4% July 1, 2011 to 50 June 30, [2018] 2019S. 8557--A 3 1 § 4. Paragraph 2 of subdivision i of section 13-638.2 of the adminis- 2 trative code of the city of New York, as amended by chapter 71 of the 3 laws of 2017, is amended to read as follows: 4 (2) Such supplementary interest shall be allowed at the rates and for 5 the periods set forth below in this paragraph: 6 First day and 7 last day of 8 Rate of interest fiscal year or 9 per centum per series of fiscal 10 Retirement annum, compounded years for which 11 System annually rate is effective 12 ________________________________________________________________________ 13 NYCERS 0% July 1, 2011 to 14 June 30, [2018] 2019 15 NYCTRS 0% July 1, 2011 to 16 June 30, [2018] 2019 17 PPF 0% July 1, 2011 to 18 June 30, [2018] 2019 19 FPF 0% July 1, 2011 to 20 June 30, [2018] 2019 21 BERS 0% July 1, 2011 to 22 June 30, [2018] 2019 23 § 5. This act shall take effect July 1, 2018, except that if it shall 24 have become a law subsequent to such date, this act shall take effect 25 immediately and be deemed to have been in full force and effect on and 26 after July 1, 2018. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY OF BILL: The enactment of this proposed legislation (the Interest Rate Extender Legislation) would amend Administrative Code of the City of New York (ACCNY) Section 13-638.2, as amended by Chapter 71 of the Laws of 2017, to continue for Fiscal Year 2019 the following rates of interest that expire on July 1, 2018 for the five actuarially- funded New York City Retirement Systems and Pension Funds (NYCRS): * The 8.25% per annum rate used to credit interest on Tier 1 and Tier 2 member account balances (the sum of the 7.00% regular interest rate and the 1.25% special interest rate) and Increased-Take-Home-Pay (ITHP) Reserves (the sum of the 7.00% regular interest rate and the 1.25% addi- tional interest rate), and * The 7.00% per annum Actuarial Interest Rate (AIR) assumption used to compute employer contributions. Effective Date for this proposed legislation: July 1, 2018. FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The continuation for Fiscal Year 2019 of the same 8.25% per annum rate that was used for Fiscal Year 2018 to credit interest on Tier 1 and Tier 2 member contributions and ITHP Reserves would not change the amount or timing of expected employer contributions. The continuation for Fiscal Year 2019 of the AIR assumption of 7.00% per annum that was used to determine preliminary employer contributions to the NYCRS for Fiscal Year 2018 would not change the expected amount or timing of employer contributions. OTHER COSTS: Enactment of this proposed legislation would not be expected to produce any additional costs. STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu- ary for, and independent of, the New York City Retirement Systems andS. 8557--A 4 Pension Funds. I am a Fellow of the Society of Actuaries, an Enrolled Actuary under the Employee Retirement Income and Security Act of 1974 (ERISA), a Member of the American Academy of Actuaries, and a Fellow of the Conference of Consulting Actuaries. I meet the Qualification Stand- ards of the American Academy of Actuaries to render the actuarial opin- ion contained herein. To the best of my knowledge, the results contained herein have been prepared in accordance with generally accepted actuari- al principles and procedures, and with the Actuarial Standards of Prac- tice issued by the Actuarial Standards Board. FISCAL NOTE IDENTIFICATION: This Fiscal Note 2018-01 dated January 22, 2018, 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 2018 Legislative Session.
