STATE OF NEW YORK
________________________________________________________________________
8899
IN SENATE
April 27, 2022
___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT granting retroactive membership in the New York city employees'
retirement system to Gregory Dunlavey and Angelo Pisani
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Notwithstanding any other law to the contrary, Gregory
2 Dunlavey, who was employed as a rackets investigator with the New York
3 city district attorney with a start date of July 19, 2010, and Angelo
4 Pisani, who was employed as a rackets investigator with the New York
5 city district attorney with a start date of February 7, 2007, both of
6 whom failed to indicate on their initial retirement member applications
7 participation in either the district attorney investigators 25 year plan
8 as provided by section 13-157.1 of the administrative code of the city
9 of New York or the district attorney investigators 20 year plan as
10 provided by section 13-157.4 of the administrative code of the city of
11 New York, may file an application to opt in to either plan effective as
12 of the member's respective start date. The application must be filed
13 with the New York city employees' retirement system within one year from
14 the effective date of this act.
15 § 2. Any additional contributions will be borne by the respective
16 members and made prior to retirement.
17 § 3. All employer past service costs associated with implementing the
18 provisions of this act shall be borne by the city of New York and may be
19 amortized over a ten-year period.
20 § 4. This act shall take effect immediately.
FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
SUMMARY OF BILL: The proposed legislation would permit Gregory Dunla-
vey and Angelo Pisani, two active Tier 2 District Attorney Investigators
and members of the New York City Employees' Retirement System (NYCERS),
to elect, by filing an application with NYCERS within one year of the
effective date, membership in the Tier 2 NYCERS 20-Year or 25-Year
District Attorney Investigator (IDA) Plan.
Effective Date: Upon enactment.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08578-04-2
S. 8899 2
BACKGROUND: Mr. Dunlavey and Mr. Pisani initially joined the NYCERS
Modified Career Pension Plan (CPP) for Tier 2 members in 2010 and 2007,
respectively. Although eligible to elect either the NYCERS IDA 20-Year
or 25-Year Plan within 180 days of becoming an investigator member,
neither made such election.
Mr. Dunlavey and Mr. Pisani have earned approximately 11 years and 25
years of NYCERS service, respectively (the latter reflects 11 years of
purchased service). For purposes of this Fiscal Note, it has been
assumed that they will both elect the IDA 20-Year Plan and make the
employee contributions, including foregone interest, that would have
been required had they been members of the IDA 20-Year plan from the
time they initially joined NYCERS.
FINANCIAL IMPACT - PRESENT VALUES: The estimated financial impact of
this proposed legislation has been calculated based on the difference
between (1) the present value of benefits Mr. Dunlavey and Mr. Pisani
would receive if the IDA 20-Year Plan were elected and (2) the present
value of the Tier 2 benefits in the NYCERS Modified CPP Plan.
Based on the actuarial assumptions and methods described herein, and
assuming that both Mr. Dunlavey and Mr. Pisani elected the IDA 20-Year
Plan, the enactment of this proposed legislation would increase the
Present Value of Future Benefits (PVFB) by approximately $103,000, and
decrease the Present Value of future member contributions by approxi-
mately $12,000, resulting in an increase in the present value of future
employer contributions of approximately $115,000.
Under the Entry Age Normal cost method used to determine the employer
contributions to NYCERS, there would be an increase in the Unfunded
Accrued Liability (UAL) of approximately $107,000 and an increase in the
Present Value of future employer Normal Cost of $8,000.
FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
Administrative Code of the City of New York (ACCNY) Section
13-638.2(k-2), new UAL attributable to benefit changes are to be amor-
tized as determined by the Actuary but generally over the remaining
working lifetime of those impacted by the benefit changes. As of June
30, 2021, the average remaining working lifetime for Mr. Dunlavey and
Mr. Pisani is approximately nine years under the IDA 20-Year Plan.
For purposes of this Fiscal Note, the increase in UAL was amortized
over a nine-year period (eight payments under the One-Year Lag Methodol-
ogy (OYLM)) using level dollar payments. This payment plus the increase
in the Normal Cost results in an increase in annual employer contrib-
utions of approximately $32,000 each year for approximately seven years
with annual savings of approximately $17,000 for the subsequent nine
years due to the assumed shorter working lifetime.
CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is
assumed that the changes in the Present Value of future employer
contributions and annual employer contributions would be reflected for
the first time in the Preliminary June 30, 2022 actuarial valuation of
NYCERS. In accordance with the OYLM used to determine employer contrib-
utions, the increase in employer contributions would first be reflected
in Fiscal Year 2024.
CENSUS DATA: As of June 30, 2021, Mr. Dunlavey was approximately age
37, had approximately 11 years of service, and a salary of $101,815.
As of June 30, 2021, Mr. Pisani was approximately age 53, had approxi-
mately 25 years of service, and a salary of $92,799.
ACTUARIAL ASSUMPTIONS AND METHODS: The changes in Present Value of
future employer contributions and annual employer contributions
presented herein have been calculated based on the actuarial assumptions
S. 8899 3
and methods in effect for the June 30, 2021 (Lag) actuarial valuation
used to determine the Preliminary Fiscal Year 2023 employer contrib-
utions of NYCERS.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the realization of the actuarial assumptions used, as well as
certain demographic characteristics of NYCERS and other exogenous
factors such as investment, contribution, and other risks. If actual
experience deviates from actuarial assumptions, the actual costs could
differ from those presented herein. Costs are also dependent on the
actuarial methods used, and therefore different actuarial methods could
produce different results. Quantifying these risks is beyond the scope
of this Fiscal Note.
Not measured in this Fiscal Note are the following:
* The initial, additional administrative costs of NYCERS and other New
York City agencies to implement the proposed legislation.
* The impact of this proposed legislation on Other Postemployment
Benefit (OPEB) costs.
STATEMENT OF ACTUARIAL OPINION: I, Michael J. Samet, am the Interim
Chief Actuary for, and independent of, the New York City Retirement
Systems and Pension Funds. I am a Fellow of the Society of Actuaries and
a Member of the American Academy of Actuaries. I meet the Qualification
Standards of the American Academy of Actuaries to render the actuarial
opinion contained herein. To the best of my 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 2022-20 dated April 12,
2022 was prepared by the Interim Chief Actuary for the New York City
Employees' Retirement System. This estimate is intended for use only
during the 2022 Legislative Session.