Bill Text: NY S09591 | 2023-2024 | General Assembly | Introduced
Bill Title: Affords certain police/fire members who are members of the fire department pension fund to continue in service past normal retirement age with an additional pension benefit for each year of additional service; provides an additional amount computed at the rate of one-fortieth of his or her final salary for each year of such additional service.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-05-16 - REFERRED TO CIVIL SERVICE AND PENSIONS [S09591 Detail]
Download: New_York-2023-S09591-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9591 IN SENATE May 16, 2024 ___________ Introduced by Sen. JACKSON -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the retirement and social security law, in relation to affording certain police/fire members who are members of the fire department pension fund to continue in service past normal retirement age with an additional pension benefit for each year of additional service The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The retirement and social security law is amended by adding 2 a new section 503-a to read as follows: 3 § 503-a. Extra pension service credits. Notwithstanding any provision 4 of law to the contrary, a police/fire member who is a member of the New 5 York city fire department pension fund may continue in service past the 6 date that he or she attains normal retirement age. In such event and 7 upon his or her retirement for any cause whatsoever, there shall be 8 added to his or her annual pension to which he or she shall upon his or 9 her retirement be entitled an additional amount computed at the rate of 10 one-fortieth of his or her final salary for each year of such additional 11 service. 12 § 2. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would provide Tier 3 members of the New York City Fire Pension Fund (FIRE) an additional 1/40th of "final salary" benefit for each year of credited service beyond 22 years of service. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Millions) Year FIRE 2025 42.6 2026 46.3 2027 50.0 2028 53.9 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10130-04-4S. 9591 2 2029 58.1 2030 62.5 2031 67.1 2032 71.9 2033 76.8 2034 81.9 2035 87.2 2036 92.6 2037 98.0 2038 103.6 2039 109.1 2040 114.7 2041 120.2 2042 125.7 2043 116.8 2044 122.2 2045 127.4 2046 132.5 2047 137.6 2048 142.4 2049 147.2 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. INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES as of June 30, 2023 ($ in Millions) Present Value (PV) FIRE PV of Benefits: 627.2 PV of Employee Contributions: 0.8 PV of Employer Contributions: 626.4 Unfunded Accrued Liabilities: 138.9 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY FIRE Number of Payments: 18 Fiscal Year of Last Payment: 2042 Amortization Payment: 14.3 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. FIRE Active Members - Number Count: 5,030 - Average Age: 33.5 - Average Service: 5.5 - Average Salary: 112,400S. 9591 3 IMPACT ON MEMBER BENEFITS: This proposed legislation would increase the annual pension for members who retire for service, ordinary disabil- ity, or accidental disability by 1/40th of Final Salary for each addi- tional year of credited service, or fraction thereof, exceeding 22 years. For the purposes of this Fiscal Note, Final Salary has been interpreted as the member's pensionable earnings in their final 12 months of service. This benefit would be subject to the applicable Cost-of-Living Adjust- ment or Escalation adjustments. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the Revised 2021 Actuarial Assumptions and Methods of the impacted retirement systems. In addition: * The probability of Tier 3 members working beyond 22 years of service was increased to recognize the impact the proposed legislation would have on retirement behavior. * 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). This Fiscal Note does not include cost analyses relating to provisions contained in Retirement and Social Security Law Section 500(c). 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 2024-43 dated April 9, 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.
