and] the age at which a member completes or would have 6 completed twenty-two years of service, for police/fire members, New York 7 city uniformed correction/sanitation revised plan members and investi- 8 gator revised plan members, and the age at which a member completes 9 twenty years of service for police/fire members who are members of the 10 New York city fire department pension fund. 11 § 2. Subdivision d of section 503 of the retirement and social securi- 12 ty law, as amended by chapter 18 of the laws of 2012, is amended to read 13 as follows: 14 d. The normal service retirement benefit specified in section five 15 hundred five of this article shall be paid to police/fire members, New 16 York city uniformed correction/sanitation revised plan members and 17 investigator revised plan members without regard to age upon retirement 18 after twenty-two years of service; provided, however, that such normal 19 service retirement benefit for police/fire members who are members of 20 the New York city fire department pension fund shall be paid to such 21 members of the New York city fire department pension fund without regard 22 to age upon retirement after twenty years of service. Early service 23 retirement shall be permitted upon retirement after twenty years of 24 credited service or attainment of age sixty-two, provided, however, that 25 New York city police/fire revised plan members, New York city uniformed 26 correction/sanitation revised plan members and investigator revised plan EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14430-02-4S. 8818 2 1 members shall not be eligible to retire for service prior to the attain- 2 ment of twenty years of credited service. 3 § 3. Notwithstanding the provisions of section 13-379 of the adminis- 4 trative code of the city of New York, the provisions of this act amend- 5 ing sections 501 and 503 of the retirement and social security law shall 6 apply to chapter three of title thirteen of the administrative code of 7 the city of New York. 8 § 4. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would reduce the Normal Retirement Age for Tier 3 members of the New York City Fire Pension Fund (FIRE) to be the age at which a member completes twenty years of service. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Millions) Year FIRE 2025 2.5 2026 2.7 2027 2.9 2028 3.2 2029 3.4 2030 3.6 2031 3.9 2032 4.1 2033 4.4 2034 4.7 2035 5.1 2036 5.4 2037 5.9 2038 6.2 2039 6.6 2040 6.9 2041 7.3 2042 7.6 2043 7.0 2044 7.3 2045 7.5 2046 7.7 2047 8.0 2048 8.2 2049 8.5 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: 12.2 PV of Employee Contributions: (2.9) PV of Employer Contributions: 15.1 Unfunded Accrued Liabilities: 8.4S. 8818 3 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY FIRE Number of Payments: 18 Fiscal Year of Last Payment: 2042 Amortization Payment: 0.9 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: 112,400 IMPACT ON MEMBER BENEFITS: Currently, Tier 3 FIRE members who retire with 20 years of service are eligible to receive an annual benefit that is equal to 42% of Final Average Salary (FAS), increasing to a maximum benefit of 50% of FAS after 22 years of service. Under the proposed legislation, Tier 3 FIRE members who retire with 20 years of service would be eligible to receive the maximum benefit equal to 50% of FAS. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the Revised 2021 Actuarial Assumptions and Methods of the impacted retirement systems except for: * Retirement rates were adjusted to reflect the earlier payability of the service retirement benefit associated with the proposed legislation. * 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). 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.S. 8818 4 FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-27 dated March 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.