S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8899
 
                             I N  S E N A T E
 
                              April 27, 2022
                                ___________
 
 Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT granting retroactive membership in the New York  city  employees'
   retirement system to Gregory Dunlavey and Angelo Pisani
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Notwithstanding any other  law  to  the  contrary,  Gregory
 Dunlavey,  who  was employed as a rackets investigator with the New York
 city district attorney with a start date of July 19,  2010,  and  Angelo
 Pisani,  who  was  employed  as a rackets investigator with the New York
 city district attorney with a start date of February 7,  2007,  both  of
 whom  failed to indicate on their initial retirement member applications
 participation in either the district attorney investigators 25 year plan
 as provided by section 13-157.1 of the administrative code of  the  city
 of  New  York  or  the  district  attorney investigators 20 year plan as
 provided by section 13-157.4 of the administrative code of the  city  of
 New  York, may file an application to opt in to either plan effective as
 of the member's respective start date. The  application  must  be  filed
 with the New York city employees' retirement system within one year from
 the effective date of this act.
   §  2.  Any  additional  contributions  will be borne by the respective
 members and made prior to retirement.
   § 3. All employer past service costs associated with implementing  the
 provisions of this act shall be borne by the city of New York and may be
 amortized over a ten-year period.
   § 4. This act shall take effect immediately.
   FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
   SUMMARY  OF BILL: The proposed legislation would permit Gregory Dunla-
 vey and Angelo Pisani, two active Tier 2 District Attorney Investigators
 and members of the New York City Employees' Retirement System  (NYCERS),
 to  elect,  by  filing an application with NYCERS within one year of the
 effective date, membership in the  Tier  2  NYCERS  20-Year  or  25-Year
 District Attorney Investigator (IDA) Plan.
   Effective Date: Upon enactment.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08578-04-2
 S. 8899                             2
 
   BACKGROUND:  Mr.  Dunlavey  and Mr. Pisani initially joined the NYCERS
 Modified Career Pension Plan (CPP) for Tier 2 members in 2010 and  2007,
 respectively.  Although  eligible to elect either the NYCERS IDA 20-Year
 or 25-Year Plan within 180 days  of  becoming  an  investigator  member,
 neither made such election.
   Mr.  Dunlavey and Mr. Pisani have earned approximately 11 years and 25
 years of NYCERS service, respectively (the latter reflects 11  years  of
 purchased  service).  For  purposes  of  this  Fiscal  Note, it has been
 assumed that they will both elect the IDA  20-Year  Plan  and  make  the
 employee  contributions,  including  foregone  interest, that would have
 been required had they been members of the IDA  20-Year  plan  from  the
 time they initially joined NYCERS.
   FINANCIAL  IMPACT  - PRESENT VALUES: The estimated financial impact of
 this proposed legislation has been calculated based  on  the  difference
 between  (1)  the  present value of benefits Mr. Dunlavey and Mr. Pisani
 would receive if the IDA 20-Year Plan were elected and (2)  the  present
 value of the Tier 2 benefits in the NYCERS Modified CPP Plan.
   Based  on  the actuarial assumptions and methods described herein, and
 assuming that both Mr. Dunlavey and Mr. Pisani elected the  IDA  20-Year
 Plan,  the  enactment  of  this  proposed legislation would increase the
 Present Value of Future Benefits (PVFB) by approximately  $103,000,  and
 decrease  the  Present  Value of future member contributions by approxi-
 mately $12,000, resulting in an increase in the present value of  future
 employer contributions of approximately $115,000.
   Under  the Entry Age Normal cost method used to determine the employer
 contributions to NYCERS, there would be  an  increase  in  the  Unfunded
 Accrued Liability (UAL) of approximately $107,000 and an increase in the
 Present Value of future employer Normal Cost of $8,000.
   FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
 Administrative  Code  of  the  City  of   New   York   (ACCNY)   Section
 13-638.2(k-2),  new  UAL attributable to benefit changes are to be amor-
 tized as determined by the Actuary  but  generally  over  the  remaining
 working  lifetime  of  those impacted by the benefit changes. As of June
 30, 2021, the average remaining working lifetime for  Mr.  Dunlavey  and
 Mr.  Pisani is approximately nine years under the IDA 20-Year Plan.
   For  purposes  of  this Fiscal Note, the increase in UAL was amortized
 over a nine-year period (eight payments under the One-Year Lag Methodol-
 ogy (OYLM)) using level dollar payments.  This payment plus the increase
 in the Normal Cost results in an increase in  annual  employer  contrib-
 utions  of approximately $32,000 each year for approximately seven years
 with annual savings of approximately $17,000  for  the  subsequent  nine
 years due to the assumed shorter working lifetime.
   CONTRIBUTION  TIMING:  For  the  purposes  of  this Fiscal Note, it is
 assumed that the  changes  in  the  Present  Value  of  future  employer
 contributions  and  annual employer contributions would be reflected for
 the first time in the Preliminary June 30, 2022 actuarial  valuation  of
 NYCERS.  In accordance with the OYLM used to determine employer contrib-
 utions, the increase in employer contributions would first be  reflected
 in Fiscal Year 2024.
   CENSUS  DATA:  As of June 30, 2021, Mr. Dunlavey was approximately age
 37, had approximately 11 years of service, and a salary of $101,815.
   As of June 30, 2021, Mr. Pisani was approximately age 53, had approxi-
 mately 25 years of service, and a salary of $92,799.
   ACTUARIAL ASSUMPTIONS AND METHODS: The changes  in  Present  Value  of
 future   employer   contributions   and  annual  employer  contributions
 presented herein have been calculated based on the actuarial assumptions
 S. 8899                             3
 
 and methods in effect for the June 30, 2021  (Lag)  actuarial  valuation
 used  to  determine  the  Preliminary Fiscal Year 2023 employer contrib-
 utions of NYCERS.
   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  NYCERS  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  methods 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 NYCERS 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.
   FISCAL  NOTE  IDENTIFICATION: This Fiscal Note 2022-20 dated April 12,
 2022 was prepared by the Interim Chief Actuary for  the  New  York  City
 Employees'  Retirement  System.  This  estimate is intended for use only
 during the 2022 Legislative Session.