STATE OF NEW YORK ________________________________________________________________________ 10500 IN ASSEMBLY May 29, 2024 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Pheffer Amato) -- read once and referred to the Committee on Govern- mental Employees AN ACT to amend the administrative code of the city of New York, in relation to affording certain uniformed members of the fire department pension fund with an increased pension benefit for each year of addi- tional service beyond their required minimum service The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (a) of paragraph 2 of subdivision a of section 2 13-359 of the administrative code of the city of New York is amended to 3 read as follows: 4 (a) a pension of [one-sixtieth] one-fortieth of [his or her] such 5 member's average annual earnings from [his or her] their date of eligi- 6 bility for retirement to the actual date of retirement; and 7 § 2. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would increase the additional annu- al pension for Tier 2 New York City Fire Pension Fund (FIRE) members who retire with more than 20 years of service from 1/60th to 1/40th of total annual earnings after reaching 20 years of credited service. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Millions) Year FIRE 2025 94.2 2026 93.6 2027 93.2 2028 92.7 2029 92.0 2030 91.4 2031 90.7 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14129-02-4
A. 10500 2 2032 90.0 2033 10.8 2034 10.0 2035 9.2 2036 8.3 2037 7.4 2038 6.6 2039 5.7 2040 4.9 2041 4.1 2042 3.3 2043 2.6 2044 2.0 2045 1.5 2046 1.1 2047 0.7 2048 0.5 2049 0.3 Employer Contribution impact beyond Fiscal Year 2049 is not shown. The 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: 565.3 PV of Employee Contributions: 0.0 PV of Employer Contributions: 565.3 Unfunded Accrued Liabilities: 452.6 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY FIRE Number of Payments: 8 Fiscal Year of Last Payment: 2032 Amortization Payment: 78.4 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: 5,690 - Average Age: 47.3 - Average Service: 21.3 - Average Salary: 163,500
A. 10500 3 IMPACT ON MEMBER BENEFITS: This proposed legislation would increase the annual pension for certain members who retire for service or acci- dental disability from 1/60th to 1/40th of average annual earnings from the date of eligibility for retirement to the actual date of retirement for each additional year of credited service, or fraction thereof, exceeding 20 years. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the Revised 2021 Actuarial Assumptions and Methods of the impacted retirement systems. 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). 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 2024-59 dated May 14, 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.