STATE OF NEW YORK ________________________________________________________________________ 6322--A 2023-2024 Regular Sessions IN SENATE April 13, 2023 ___________ Introduced by Sens. JACKSON, CHU -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions -- 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 commit- tee AN ACT to amend the retirement and social security law, in relation to retirement benefits for general members in the uniformed correction force of the New York city department of correction The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision d of section 504 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 d. The early service retirement benefit for general members in the 5 uniformed correction force of the New York city department of 6 correction, who are not entitled to an early service retirement benefit 7 pursuant to subdivision c of section five hundred four-a of this article 8 or subdivision c of section five hundred four-b of this article or 9 subdivision c of section five hundred four-d of this article, or for 10 general members in the uniformed personnel in institutions under the 11 jurisdiction of the department of corrections and community supervision, 12 as defined in subdivision i of section eighty-nine of this chapter, 13 shall be a pension equal to one-fiftieth of final average salary times 14 years of credited service at the completion of twenty-five years of 15 service, [but not in excess of fifty percent of final average salary] 16 plus one-sixtieth of final average salary times years of credited 17 service in excess of twenty-five, provided, however, that the provisions 18 of this section shall not apply to a New York city uniformed 19 correction/sanitation revised plan member. 20 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08667-04-4
S. 6322--A 2 FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would increase the service retire- ment benefit for credited service exceeding 25 years for uniformed employees of the New York City Department of Correction who joined NYCERS prior to December 19, 1990 (Tier 3 CO-25 Plan Members). EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Thousands) Year NYCERS 2025 4,484 2026 14 2027 11 2028 7 2029 3 2030 2 2031 1 2032 1 2033 0 2034 0 2035 0 2036 0 2037 0 2038 0 2039 0 2040 0 2041 0 2042 0 2043 0 2044 0 2045 0 2046 0 2047 0 2048 0 2049 0 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 Thousands) Present Value (PV) NYCERS PV of Benefits: 4,081 PV of Employee Contributions: 0 PV of Employer Contributions: 4,081 Unfunded Accrued Liabilities: 4,034 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY NYCERS Number of Payments: 1 Fiscal Year of Last Payment: 2025 Amortization Payment: 4,465 K
S. 6322--A 3 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. NYCERS Active Members - Number Count: 19 - Average Age: 60.6 - Average Service: 35.0 - Average Salary: 164,900 IMPACT ON MEMBER BENEFITS: Currently, upon reaching 25 or more years of credited service, CO-25 Plan Members are entitled to a service retirement pension benefit equal to 50% of Final Average Salary (FAS). Under the proposed legislation, CO-25 Plan Members who retire for service under RSSL Section 504(d) after the effective date of the proposed legislation with 25 or more years of credited service would be equal to 50% of FAS for the first 25 years of credited service, plus 1/60th of FAS for each additional year of credited service, or fraction thereof, exceeding 25 years (if any). 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 2024-36 dated March 25, 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.