S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10474
 
                           I N  A S S E M B L Y
 
                               May 27, 2022
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Abbate) --
   (at request of the New York State Teachers' Retirement System) -- read
   once and referred to the Committee on Ways and Means
 
 AN ACT to amend the education law, the retirement  and  social  security
   law,  the administrative code of the city of New York, and chapter 666
   of the laws of 1990, amending the administrative code of the  city  of
   New  York  and the education law relating to the availability of addi-
   tional pension benefits, in  relation  to  the  transfer  of  reserves
   between public retirement systems of the state for certain members
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 5 of section  522  of  the  education  law,  as
 amended  by  chapter  41  of  the  laws  of  2009, is amended to read as
 follows:
   5. Notwithstanding any other provision of law to the contrary,  except
 for  the purposes of providing the benefits, if any, of subdivision four
 of this section, with respect to  transfers  pursuant  to  this  section
 which occur on or after the effective date of THE CHAPTER OF THE LAWS OF
 TWO  THOUSAND TWENTY-TWO THAT AMENDED this subdivision, no transfer of a
 pension reserve pursuant to subdivision one or two of this section shall
 be required when the member is transferring  from  a  public  [employee]
 retirement  system  of  [this]  THE  state [to any other public employee
 retirement system of this state] WITH LESS THAN TEN  YEARS  OF  CREDITED
 SERVICE WITH THE TRANSFERRING RETIREMENT SYSTEM AT THE TIME THE TRANSFER
 IS  INITIATED.  WITH RESPECT TO TRANSFERS PURSUANT TO SUBDIVISION ONE OR
 TWO OF THIS SECTION WHICH OCCUR ON OR AFTER THE EFFECTIVE  DATE  OF  THE
 CHAPTER  OF THE LAWS OF TWO THOUSAND TWENTY-TWO THAT AMENDED THIS SUBDI-
 VISION, THE TRANSFER OF A PENSION RESERVE SHALL  BE  REQUIRED  WHEN  THE
 MEMBER  IS  TRANSFERRING  TEN  OR  MORE YEARS OF CREDITED SERVICE FROM A
 PUBLIC RETIREMENT SYSTEM OF THIS STATE TO ANY  OTHER  PUBLIC  RETIREMENT
 SYSTEM OF THIS STATE, EXCLUDING ANY TRANSFERS WITHIN AND BETWEEN THE NEW
 YORK  CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY TEACHERS' RETIRE-
 MENT SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM.  For
 the purpose of giving the transferring member such status and  crediting
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11221-03-2
 A. 10474                            2
 
 such  service  in  the  retirement  system to which the member is trans-
 ferring as such member was allowed in the retirement system  from  which
 the  member  has transferred, the transfer shall be deemed complete upon
 receipt  by the transferee retirement system of (a) a statement from the
 transferor retirement  system  of  the  transferring  member's  date  of
 membership  in  the  transferor  retirement system, tier status, service
 credited to the transferred membership, and such  other  information  as
 the transferee retirement system may require to effectuate the transfer,
 [and]  (b)  such  member's accumulated contributions from the transferor
 retirement system, if same had not been previously withdrawn, or  notice
 from  the  transferor  retirement system that such member had no accumu-
 lated contributions, or notice from  the  transferor  retirement  system
 that  such member's accumulated contributions had been withdrawn and the
 amount thereof and, as applicable, receipt  from  such  member  of  such
 member's  accumulated  contributions  and  interest, AND (C) THE PENSION
 RESERVE IN THE CASE OF A MEMBER WHO TRANSFERS IN TEN OR  MORE  YEARS  OF
 CREDITED  SERVICE,  EXCEPT  WHEN TRANSFERRING WITHIN AND BETWEEN THE NEW
 YORK CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY TEACHERS'  RETIRE-
 MENT SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM.
   § 2. Subdivision k of section 43 of the retirement and social security
 law, as amended by chapter 41 of the laws of 2009, is amended to read as
 follows:
   k.  Notwithstanding any other provision of this section, any member of
 the New York state and local employees' retirement  system  or  the  New
 York  city  teachers'  retirement  system  who retired from service from
 either the New York city employees' retirement system or  the  New  York
 city  board  of  education  retirement  system as a member of the career
 pension plan maintained by such system and who, but for the fact that he
 or she retired, would be eligible for transfer and who has not, in fact,
 received a pension payment from such system shall be permitted to trans-
 fer his or her retirement system membership pursuant to  the  provisions
 of  this section. In such event, the application for retirement shall be
 deemed to have been rescinded and the retirement system from  which  the
 service  shall be transferred shall transfer the appropriate reserves as
 provided by this section, provided, however, that with respect to trans-
 fers pursuant to this subdivision which occur on or after  [the  twenty-
 sixth day of October, two thousand four] THE EFFECTIVE DATE OF THE CHAP-
 TER   OF   THE  LAWS  OF  TWO  THOUSAND  TWENTY-TWO  THAT  AMENDED  THIS
 SUBDIVISION, except for the purposes of providing the benefits, if  any,
 of  subdivision four of section five hundred twenty-two of the education
 law, no determination of a reserve pursuant to  subdivision  c  of  this
 section  or  transfer thereof pursuant to the first sentence of subdivi-
 sion d of this section shall be required in the  case  of  any  transfer
 pursuant  to  this  subdivision  WITH  LESS  THAN  TEN YEARS OF CREDITED
 SERVICE WITH THE TRANSFERRING RETIREMENT SYSTEM AT THE TIME THE TRANSFER
 IS INITIATED.  WITH RESPECT TO TRANSFERS PURSUANT TO THIS SECTION  WHICH
 OCCUR  ON  OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO
 THOUSAND TWENTY-TWO THAT AMENDED THIS SUBDIVISION,  THE  TRANSFER  OF  A
 PENSION RESERVE SHALL BE REQUIRED WHEN THE MEMBER IS TRANSFERRING TEN OR
 MORE  YEARS  OF  CREDITED SERVICE FROM A PUBLIC RETIREMENT SYSTEM OF THE
 STATE TO ANY OTHER PUBLIC RETIREMENT SYSTEM OF THE STATE, EXCLUDING  ANY
 TRANSFERS  WITHIN  AND  BETWEEN  THE NEW YORK CITY EMPLOYEES' RETIREMENT
 SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT  SYSTEM  AND  NEW  YORK  CITY
 BOARD  OF EDUCATION RETIREMENT SYSTEM.  Notwithstanding the provision of
 this subdivision or any other provision of law, an individual who trans-
 fers pursuant to this subdivision shall not be required  to  render  any
 A. 10474                            3
 
 minimum  period of service following transfer in order to be eligible to
 receive the full benefit provided hereunder. Notwithstanding the forego-
 ing, a retiree covered by either the career pension plan or  the  fifty-
 five-year-increased-service-fraction  plan  who  has  received a pension
 payment  or  payments  from  such  system  shall  be  eligible  for  the
 provisions  of  this  subdivision upon payment, to the retirement system
 from which the pension payment or payments were made, of an amount equal
 to such pension payment or payments. After such payments AND THE PENSION
 RESERVE, IN THE CASE OF A MEMBER WHO TRANSFERS IN TEN OR MORE  YEARS  OF
 CREDITED  SERVICE,  EXCEPT  WHEN TRANSFERRING WITHIN AND BETWEEN THE NEW
 YORK CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY TEACHERS'  RETIRE-
 MENT  SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM, are
 received, such person shall be permitted to transfer his or her  retire-
 ment system membership pursuant to the provisions of this section.
   § 3. Subdivision 1 of section 43 of the retirement and social security
 law, as amended by chapter 41 of the laws of 2009, is amended to read as
 follows:
   l.  Notwithstanding  any  other provision of law to the contrary, with
 respect to transfers pursuant to this section which occur  on  or  after
 [the  twenty-sixth day of October, two thousand four] THE EFFECTIVE DATE
 OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO THAT AMENDED  THIS
 SUBDIVISION,  except for the purposes of providing the benefits, if any,
 of subdivision four of section five hundred twenty-two of the  education
 law,  no  determination  of  a reserve pursuant to subdivision c of this
 section or transfer thereof pursuant to the first sentence  of  subdivi-
 sion  d  of  this  section shall be required in the case of any transfer
 pursuant to this section WITH LESS THAN TEN YEARS  OF  CREDITED  SERVICE
 WITH  THE  TRANSFERRING  RETIREMENT  SYSTEM  AT THE TIME THE TRANSFER IS
 INITIATED. WITH RESPECT TO TRANSFERS  PURSUANT  TO  THIS  SECTION  WHICH
 OCCUR  ON  OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO
 THOUSAND TWENTY-TWO THAT AMENDED THIS SUBDIVISION,  THE  TRANSFER  OF  A
 PENSION RESERVE SHALL BE REQUIRED WHEN THE MEMBER IS TRANSFERRING TEN OR
 MORE  YEARS  OF  CREDITED SERVICE FROM A PUBLIC RETIREMENT SYSTEM OF THE
 STATE TO ANY OTHER PUBLIC RETIREMENT SYSTEM OF THE STATE, EXCLUDING  ANY
 TRANSFERS  WITHIN  AND  BETWEEN  THE NEW YORK CITY EMPLOYEES' RETIREMENT
 SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT  SYSTEM  AND  NEW  YORK  CITY
 BOARD  OF  EDUCATION  RETIREMENT SYSTEM.   For the purpose of giving the
 transferring member such status and crediting such service in the second
 retirement system as such member was allowed  in  the  first  retirement
 system  in those cases to which this subdivision shall apply, the trans-
 fer shall be deemed complete  upon  receipt  by  the  second  retirement
 system of:
   1.  a  statement  from the first retirement system of the transferring
 member's date of membership in the first retirement system, tier status,
 service credited to such membership being transferred,  and  such  other
 information  as  the  second retirement system may require to effectuate
 the transfer; [and]
   2. such member's accumulated contributions from the  first  retirement
 system,  if  same  had not been previously withdrawn, or notice from the
 first retirement system that such member  had  no  accumulated  contrib-
 utions,  or  notice  from the first retirement system that such member's
 accumulated contributions had been withdrawn and the amount thereof and,
 as applicable, receipt from such member  of  such  member's  accumulated
 contributions and interest; AND
   3. THE PENSION RESERVE IN THE CASE OF A MEMBER WHO TRANSFERS IN TEN OR
 MORE  YEARS  OF  CREDITED  SERVICE,  EXCEPT WHEN TRANSFERRING WITHIN AND
 A. 10474                            4
 
 BETWEEN THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM,  NEW  YORK  CITY
 TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIRE-
 MENT SYSTEM.
   § 4. Subdivision h of section 343 of the retirement and social securi-
 ty  law,  as  amended  by chapter 533 of the laws of 2015, is amended to
 read as follows:
   h. Notwithstanding any other provision of law to  the  contrary,  with
 respect  to  transfers  pursuant to this section which occur on or after
 the effective date of THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO
 THAT AMENDED this subdivision, no determination of a reserve pursuant to
 subdivision c of this section or transfer thereof pursuant to the  first
 sentence  of subdivision d of this section shall be required in the case
 of any transfer pursuant to this section (other than a transfer from the
 New York state and local police and fire retirement system to either (1)
 the New York city police department subchapter two pension fund, (2) the
 New York city fire department subchapter two pension fund or (3) the MTA
 police retirement program or a transfer from either  (i)  the  New  York
 city  police department subchapter two pension fund or (ii) the New York
 city fire department subchapter two pension fund to either (A)  the  New
 York  state  and  local police and fire retirement system or (B) the MTA
 police retirement program or a transfer from the MTA  police  retirement
 program  to  the  New  York  state  and local police and fire retirement
 system) IN THE CASE OF A MEMBER WITH LESS THAN  TEN  YEARS  OF  CREDITED
 SERVICE WITH THE TRANSFERRING RETIREMENT SYSTEM AT THE TIME THE TRANSFER
 IS  INITIATED.  WITH  RESPECT TO TRANSFERS PURSUANT TO SUCH SUBDIVISIONS
 WHICH OCCUR ON OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF
 TWO THOUSAND TWENTY-TWO THAT AMENDED THIS SUBDIVISION, THE TRANSFER OF A
 PENSION RESERVE SHALL BE REQUIRED WHEN THE MEMBER IS TRANSFERRING TEN OR
 MORE YEARS OF CREDITED SERVICE FROM A PUBLIC RETIREMENT  SYSTEM  OF  THE
 STATE  TO ANY OTHER PUBLIC RETIREMENT SYSTEM OF THE STATE, EXCLUDING ANY
 TRANSFERS WITHIN AND BETWEEN THE NEW  YORK  CITY  EMPLOYEES'  RETIREMENT
 SYSTEM,  NEW  YORK  CITY  TEACHERS'  RETIREMENT SYSTEM AND NEW YORK CITY
 BOARD OF EDUCATION RETIREMENT SYSTEM. For  the  purpose  of  giving  the
 transferring member such status and crediting such service in the second
 retirement  system  as  such  member was allowed in the first retirement
 system in those cases to which this subdivision shall apply, the  trans-
 fer  shall  be  deemed  complete  upon  receipt by the second retirement
 system of:
   1. a statement from the first retirement system  of  the  transferring
 member's date of membership in the first retirement system, tier status,
 service  credited  to  such membership being transferred, and such other
 information as the second retirement system may  require  to  effectuate
 the transfer; [and]
   2.  such  member's accumulated contributions from the first retirement
 system, if same had not been previously withdrawn, or  notice  from  the
 first  retirement  system  that  such member had no accumulated contrib-
 utions, or notice from the first retirement system  that  such  member's
 accumulated contributions had been withdrawn and the amount thereof and,
 as  applicable,  receipt  from  such member of such member's accumulated
 contributions and interest; AND
   3. THE PENSION RESERVE IN THE CASE OF A MEMBER WHO TRANSFERS IN TEN OR
 MORE YEARS OF CREDITED SERVICE,  EXCEPT  WHEN  TRANSFERRING  WITHIN  AND
 BETWEEN  THE  NEW  YORK CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY
 TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIRE-
 MENT SYSTEM.
 A. 10474                            5
 
   § 5. Paragraph 4 of subdivision a of section 13-143 of the administra-
 tive code of the city of New York, as added by chapter 647 of  the  laws
 of 2004, is amended to read as follows:
   (4)  Notwithstanding  the provisions of paragraph two of this subdivi-
 sion, with respect to transfers pursuant to this section which occur  on
 or  after  the effective date of THE CHAPTER OF THE LAWS OF TWO THOUSAND
 TWENTY-TWO THAT AMENDED this paragraph, the actuary of the New York city
 employees' retirement system shall not  be  required  to  determine  the
 reserve  on  the  benefits  allowable  to the transferring member as the
 result of employer contributions, including  the  reserve-for-increased-
 take-home-pay,  and the transfer of such reserve, including the reserve-
 for-increased-take-home-pay, from the New York city  employees'  retire-
 ment  system  to said police pension fund [shall not be required] WHEN A
 MEMBER IS TRANSFERRING WITH LESS THAN TEN YEARS OF CREDITED SERVICE WITH
 THE TRANSFERRING RETIREMENT SYSTEM AT THE TIME THE  TRANSFER  IS  INITI-
 ATED. WITH RESPECT TO TRANSFERS PURSUANT TO THIS SUBDIVISION WHICH OCCUR
 ON  OR  AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOU-
 SAND TWENTY-TWO THAT AMENDED THIS PARAGRAPH, THE TRANSFER OF  A  PENSION
 RESERVE  SHALL  BE  REQUIRED WHEN THE MEMBER IS TRANSFERRING TEN OR MORE
 YEARS OF CREDITED SERVICE FROM A PUBLIC RETIREMENT SYSTEM OF  THE  STATE
 TO ANY OTHER PUBLIC RETIREMENT SYSTEM OF THE STATE, EXCLUDING ANY TRANS-
 FERS  WITHIN AND BETWEEN THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM,
 NEW YORK CITY TEACHERS' RETIREMENT SYSTEM AND NEW  YORK  CITY  BOARD  OF
 EDUCATION  RETIREMENT  SYSTEM.   The New York city employees' retirement
 system, within one year from the date of the request for the transfer of
 credit, shall comply with all requirements for completing  the  transfer
 imposed  on  it by the provisions of this section, INCLUDING THE PENSION
 RESERVE IN THE CASE OF A MEMBER WHO TRANSFERS TEN OR MORE YEARS OF CRED-
 ITED SERVICE, EXCEPT WHEN TRANSFERRING WITHIN AND BETWEEN THE  NEW  YORK
 CITY  EMPLOYEES'  RETIREMENT  SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT
 SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM.   Nothing
 set  forth  in  this paragraph shall be deemed to modify the requirement
 set forth in paragraph two of this subdivision that the  New  York  city
 employees'  retirement  system  transfer to said police pension fund the
 accumulated deductions of such member.
   § 6. Paragraph 4 of subdivision a of section 13-144 of the administra-
 tive code of the city of New York, as added by chapter 647 of  the  laws
 of 2004, is amended to read as follows:
   (4)  Notwithstanding  the provisions of paragraph two of this subdivi-
 sion, with respect to transfers pursuant to this section which occur  on
 or  after  the effective date of THE CHAPTER OF THE LAWS OF TWO THOUSAND
 TWENTY-TWO THAT AMENDED this paragraph, the actuary of the New York city
 employees' retirement system shall not  be  required  to  determine  the
 reserve  on  the  benefits  allowable  to the transferring member as the
 result of employer contributions, including [the  reserve-for-increased-
 take-home-pay,  and]  the  transfer of such reserve[, including] AND the
 reserve-for-increased-take-home-pay[,] from the New York city employees'
 retirement system to said fire department pension  fund  [shall  not  be
 required],  WITH LESS THAN TEN YEARS OF CREDITED SERVICE FROM THE TRANS-
 FERRING RETIREMENT SYSTEM AT THE TIME THE TRANSFER IS INITIATED.    WITH
 RESPECT  TO  TRANSFERS  PURSUANT TO THIS SECTION WHICH OCCUR ON OR AFTER
 THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO
 THAT AMENDED THIS PARAGRAPH, THE TRANSFER OF A PENSION RESERVE  PURSUANT
 TO  PARAGRAPH  TWO OF THIS SUBDIVISION SHALL BE REQUIRED WHEN THE MEMBER
 IS TRANSFERRING TEN OR MORE YEARS OF  CREDITED  SERVICE  FROM  A  PUBLIC
 RETIREMENT  SYSTEM OF THE STATE TO ANY OTHER PUBLIC RETIREMENT SYSTEM OF
 A. 10474                            6
 
 THE STATE, EXCLUDING ANY TRANSFERS WITHIN AND BETWEEN THE NEW YORK  CITY
 EMPLOYEES'  RETIREMENT SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT SYSTEM
 AND NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM.   The  New  York
 city  employees' retirement system, within one year from the date of the
 request for the transfer of credit, shall comply with  all  requirements
 for  completing  the  transfer  imposed  on it by the provisions of this
 section, INCLUDING THE PENSION REVERSE IN  THE  CASE  OF  A  MEMBER  WHO
 TRANSFERS TEN OR MORE YEARS OF MEMBER SERVICE CREDIT, EXCEPT WHEN TRANS-
 FERRING  WITHIN  AND  BETWEEN  THE  NEW  YORK CITY EMPLOYEES' RETIREMENT
 SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT  SYSTEM  AND  NEW  YORK  CITY
 BOARD  OF  EDUCATION RETIREMENT SYSTEM.  Nothing set forth in this para-
 graph shall be deemed to modify the requirement set forth  in  paragraph
 two  of  this  subdivision  that the New York city employees' retirement
 system transfer to said fire department  pension  fund  the  accumulated
 deductions of such member.
   §  7.  Subdivision  d of section 3 of chapter 666 of the laws of 1990,
 amending the administrative code of the city of New York and the  educa-
 tion law relating to the availability of additional pension benefits for
 an  extended  second  public employment to certain retirees, as added by
 chapter 647 of the laws of 2004, is amended to read as follows:
   d. Notwithstanding the provisions of subdivision b of this section  or
 any  other  provision  of law to the contrary, with respect to transfers
 pursuant to this section which occur on or after the effective  date  of
 THE  CHAPTER  OF  THE  LAWS OF TWO THOUSAND TWENTY-TWO THAT AMENDED this
 subdivision, no determination or transfer of the reserve on the benefits
 allowable to the transferring member as the result of employer  contrib-
 utions,  including  the  reserve-for-increased-take-home-pay,  shall  be
 required FOR A MEMBER WITH LESS THAN TEN YEARS OF CREDITED SERVICE  FROM
 THE  TRANSFERRING  SYSTEM  AT  THE  TIME THE TRANSFER IS INITIATED. WITH
 RESPECT TO TRANSFERS PURSUANT TO THIS SECTION WHICH OCCUR  ON  OR  AFTER
 THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO
 THAT  AMENDED  THIS SUBDIVISION, THE TRANSFER OF A PENSION RESERVE SHALL
 BE REQUIRED WHEN THE MEMBER IS TRANSFERRING TEN OR MORE YEARS OF CREDIT-
 ED SERVICE FROM A PUBLIC RETIREMENT SYSTEM OF THIS STATE  TO  ANY  OTHER
 PUBLIC  RETIREMENT  SYSTEM  OF THE STATE, EXCLUDING ANY TRANSFERS WITHIN
 AND BETWEEN THE NEW YORK CITY EMPLOYEES'  RETIREMENT  SYSTEM,  NEW  YORK
 CITY  TEACHERS'  RETIREMENT  SYSTEM AND NEW YORK CITY BOARD OF EDUCATION
 RETIREMENT SYSTEM.
   § 8. This act shall take effect immediately and  shall  apply  to  any
 covered  membership transfer initiated on or after the effective date of
 this act; provided, however, that no provision of this act shall  affect
 the  transfer of reserves required with respect to transfers between any
 two of the New York state and local police and fire  department  system,
 the  New York city police department subchapter two pension fund and the
 New York city fire department  subchapter  two  pension  fund  and  with
 respect  to  transfers from the New York state and local police and fire
 retirement system to the metropolitan  transportation  authority  police
 pension fund.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF BILL: This proposed legislation (see Appendix) would amend
 Sections 43 and 343 of the Retirement and Social  Security  Law  (RSSL),
 Sections 13-143 and 13-144 of the Administrative Code of the City of New
 York  (ACCNY),  Section 522 of the Education Law, and Chapter 666 of the
 laws of 1990 to reinstate the transfer of reserves between  certain  New
 York City and State retirement systems.
   Effective Date: Upon enactment.
 A. 10474                            7
 
   BACKGROUND:  Chapter  647 of the Laws of 2004, for purposes of stream-
 lining transfers between certain public retirement systems and alleviat-
 ing the administrative burden of  reserve  calculations  and  transfers,
 eliminated the transfer of reserves as a required step in completing the
 transfer of memberships between certain public retirement systems within
 New York.
   Currently,  members  of the New York City Employees' Retirement System
 (NYCERS), the New York City Teachers' Retirement System (NYCTRS), or the
 New York City Board of Education Retirement  System  (BERS)  who  accept
 another  position  that  entitles them to membership in another New York
 public retirement system may choose to transfer their  membership.  Upon
 successful  application  for  such  transfer, certain member accumulated
 contributions (with accrued interest)  are  generally  transferred,  but
 additional employer paid reserves are not.
   Under  the proposed legislation, if enacted, when members with a mini-
 mum of 10 years of Credited Service transfer their membership to another
 retirement system, the originating system would be required to calculate
 and pay such member's pension reserve, net  of  any  accumulated  salary
 deductions  otherwise transferred, to the destination retirement system.
 Such transfers of reserves would not  be  required  for  members  trans-
 ferring wholly between NYCERS, NYCTRS, and BERS.
   This  proposed  legislation  would essentially repeal parts of Chapter
 647 and eliminate the administrative efficiencies created by such law.
   FINANCIAL IMPACT - OVERVIEW: There is no data available to  accurately
 estimate  the  number of New York City Retirement System or Pension Fund
 (NYCRS) members who would potentially transfer between affected City and
 State retirement systems. Therefore, the estimated financial impact  has
 been  calculated  on a per event basis equal to the increase in Unfunded
 Accrued Liability (UAL) for an average NYCERS, NYCTRS, and  BERS  member
 with  at least 10 years of service. This increase in UAL consists of the
 reserve required to be transferred to  the  State  system,  net  of  any
 member contributions that would otherwise be transferred.
   With  respect  to  an  individual  member, the additional cost of this
 proposed legislation could vary greatly depending on the member's length
 of service, age, and salary history.
   These costs would be offset by any reserves  reciprocally  transferred
 from  a  State  system to a City system. Transfers between affected City
 systems would not be expected to materially impact these costs.
   FINANCIAL IMPACT - SUMMARY: The enactment of this proposed legislation
 would not be expected to result in any material changes in the  ultimate
 costs  of  the  NYCRS but is expected to increase administrative burdens
 and potentially delay member transfers.
   Enactment of this proposed legislation would, on  a  transfer  from  a
 City  System  to  a State system, increase employer contributions, where
 such amount would depend on the number of members affected  as  well  as
 other  characteristics  including  the age, years of service, and salary
 history of the member. A breakdown of the financial impact by System  is
 shown in the table below.
           NYCRS     Average Increase in       Average Increase in
                     UAL                 Annual Employer Contributions
                     per Transfer             per Transfer
 
           NYCERS    $298,700                      $35,300
           NYCTRS    $387,500                      $45,800
           BERS      $181,300                      $21,400
 A. 10474                            8

   As  there  is  no  data currently available to accurately estimate the
 number and demographic characteristics of members who  may  transfer  to
 the  State,  the  financial  impact  would  be recognized at the time of
 event. Consequently, changes in employer contributions have  been  esti-
 mated  assuming  that  the increase in the UAL will be financed over the
 same time period used for actuarial losses in  accordance  with  Section
 13-638.2(k-2)  of  the  ACCNY.  Using this approach, the increase in UAL
 would be amortized over a closed 15-year period (14 payments  under  the
 One-Year Lag Methodology) using level dollar payments.
   With  respect to the timing, increases in employer contributions would
 depend upon when eligible members file  their  application  to  transfer
 their  NYCRS  membership to the State but, generally, increased employer
 contributions will first occur the  second  fiscal  year  following  the
 transfer of reserves to the State.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the Preliminary June 30, 2021 (Lag) actuarial valuation  of
 NYCRS  to  determine  the Preliminary Fiscal Year 2023 employer contrib-
 utions.
   The table below contains a summary of the census data for the  members
 in  NYCERS, NYCTRS, and BERS who have at least 10 years of service as of
 June 30, 2021.
 NYCRS     Active    Average             Average   Average
           Count     Age                 Service   Salary
 
 NYCERS    95,530    53.6                19.6      $90,200
 NYCTRS    68,118    50.1                18.7      $108,100
 BERS      10,866    56.8                17.2      $63,900
   ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the UAL  and  annual
 employer  contributions  presented  herein have been calculated based on
 the actuarial assumptions and methods in effect for the Preliminary June
 30, 2021 (Lag) actuarial valuations used to  determine  the  Preliminary
 Fiscal Year 2023 employer contributions of NYCRS.
   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 NYCRS 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 meth-
 ods 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 NYCRS 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.
 A. 10474                            9
 
   FISCAL  NOTE  IDENTIFICATION:  This  Fiscal Note 2022-47 dated May 10,
 2022 was prepared by the Interim Chief Actuary for  the  New  York  City
 Retirement  Systems and Pension Funds. This estimate is intended for use
 only during the 2022 Legislative Session.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  amend  Section 522 of the Education Law and various
 sections of the Retirement and Social Security Law and  the  Administra-
 tive  Code  of  the  City of New York to restore the transfer of pension
 reserves in cases in which a member of  the  New  York  State  Teachers'
 Retirement System (NYSTRS) or any Retirement System of the State or City
 of  New  York  transfers a membership with ten or more years of credited
 service at the time the transfer  is  initiated.  This  act  shall  take
 effect  immediately and shall apply to any membership transfer initiated
 on or after the effective date of this act. No transfer of reserves will
 be required for transfers within and between the NYC Retirement Systems.
 The current transfer of reserves that occurs due  to  transfers  between
 the police and fire systems shall not be disturbed.
   It  is  estimated  that there will be no additional annual cost to the
 employers of members of the NYSTRS if this bill  is  enacted.  In  fact,
 this bill will greatly increase equity between the retirement systems of
 the  state  by  ensuring  that a member who transfers with a significant
 liability will bring with him or her the pension reserve accumulated  by
 the  prior  retirement system to offset the liability assumed by the new
 retirement system.
   Member data is from  the  System's  most  recent  actuarial  valuation
 files,  consisting  of  data provided by the employers to the Retirement
 System.  Data distributions and statistics can be found in the  System's
 Annual  Report.  System assets are as reported in the System's financial
 statements and can also be found in the System's Annual Report. Actuari-
 al assumptions and methods are provided in the System's Actuarial  Valu-
 ation Report.
   The  source  of  this estimate is Fiscal Note 2022-2 dated October 18,
 2021 prepared by the Actuary of the New York State Teachers'  Retirement
 System and is intended for use only during the 2022 Legislative Session.
 I, Richard A.  Young, am the Chief Actuary for the New York State Teach-
 ers' Retirement System. I am a member of the American Academy of Actuar-
 ies  and  I  meet the Qualification Standards of the American Academy of
 Actuaries to render the actuarial opinion contained herein.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend sections 43 and 343 of the Retirement and Social
 Security Law and various sections of the Education Law and the  Adminis-
 trative  Code  of  the City of New York to reinstate the calculation and
 transfer of a pension reserve for  a  member  transferring  between  the
 public  retirement  systems  in  New York State, provided such member is
 transferring ten (10) or more years of service credit.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System (NYSLERS) and the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), if this legislation is enacted during
 the 2022 legislative session, there would be some ongoing administrative
 costs to implement the provisions of this legislation.
   The actuarial gains and losses arising from the transfer  of  reserves
 is  expected to net to zero over the long-term, making the proposal cost
 neutral.
   Summary of relevant resources:
   Membership data as of March 31, 2021 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2021 actuari-
 A. 10474                           10
 
 al  valuation.    Distributions and other statistics can be found in the
 2021 Report of the Actuary and the 2021 Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2021
 Annual Report to the  Comptroller  on  Actuarial  Assumptions,  and  the
 Codes,  Rules  and  Regulations  of  the  State  of  New York: Audit and
 Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2021
 New York State and Local  Retirement  System  Financial  Statements  and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This  fiscal note does not constitute a legal opinion on the viability
 of the proposed change nor is it intended to serve as a  substitute  for
 the professional judgment of an attorney.
   This  estimate,  dated  February  9,  2022,  and intended for use only
 during the  2022  Legislative  Session,  is  Fiscal  Note  No.  2022-56,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.