Assembly Bill A10745

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10745

                          I N  A S S E M B L Y

                             April 19, 2010
                               ___________

Introduced by M. of A. ABBATE -- read once and referred to the Committee
  on Governmental Employees

AN  ACT  to amend the retirement and social security law, in relation to
  maximum computed service retirement benefit for Triborough bridge  and
  tunnel members

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 4 of  subdivision  c  of  section  445-d  of  the
retirement  and social security law, as added by chapter 472 of the laws
of 1995, is amended to read as follows:
  4. the maximum retirement benefit computed without optional  modifica-
tion  payable to that participant upon his or her retirement for service
as such a participant shall equal that payable upon completion of thirty
years of service, EXCEPT THAT THE  MAXIMUM  SERVICE  RETIREMENT  BENEFIT
COMPUTED  WITHOUT  OPTIONAL  MODIFICATION  SHALL EQUAL THAT PAYABLE UPON
COMPLETION OF THIRTY-TWO YEARS OF SERVICE.
  S 2. Subparagraph (ii) of paragraph 2  of  subdivision  c  of  section
604-c  of  the retirement and social security law, as amended by chapter
693 of the laws of 2003, is amended to read as follows:
  (ii) The maximum pension computed without optional modification  paya-
ble  pursuant  to  subparagraph  (i)  of this paragraph shall equal that
payable upon completion of thirty years  of  service,  EXCEPT  THAT  THE
MAXIMUM  SERVICE  RETIREMENT BENEFIT COMPUTED WITHOUT OPTIONAL MODIFICA-
TION SHALL EQUAL THAT PAYABLE UPON COMPLETION  OF  THIRTY-TWO  YEARS  OF
SERVICE.
  S 3. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  PROVISIONS  OF  PROPOSED  LEGISLATION: This proposed legislation would
amend Retirement and Social Security Law  ("RSSL")  Sections  445-d  and
604-c  to  increase  the  number  of years of service to be credited for
retirement benefit purposes of certain members  of  the  New  York  City
Employees'  Retirement  System  ("NYCERS")  employed  by  the Triborough
Bridge and Tunnel Authority ("TBTA") who participate in the  Twenty-Year

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05615-03-0
              

A. 10745                            2

and   Age  Fifty  Retirement  Program  for  TBTA  Members  ("TBTA  50/20
Program").
  The  Effective  Date  of the proposed legislation would be the date of
enactment.
  IMPACT ON BENEFITS: Currently, service retirement benefits of Tier  II
and  Tier  IV TBTA participants in the TBTA 50/20 Program are based upon
credited service to a maximum of 30 years.
  This proposed legislation would increase the maximum to 32 years.
  FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES OF BENEFITS: With  respect
to  NYCERS  and based on the actuarial assumptions and methods described
herein, the enactment of this proposed legislation  would  increase  the
Actuarial  Present  Value  of  Benefits  ("APVB")  by approximately $1.3
million as of June 30, 2008.
  FINANCIAL IMPACT - ANNUAL EMPLOYER COSTS AND  EMPLOYER  CONTRIBUTIONS:
With  respect  to NYCERS, based on the actuarial assumptions and methods
in effect as of June 30, 2008, the enactment  of  this  proposed  legis-
lation  would  increase  annual employer costs by approximately $170,000
per year.
  If enacted during the 2010 Legislative Session before June  30,  2010,
increased employer contributions to NYCERS would begin Fiscal Year 2010.
  If enacted during the 2010 Legislative Session after June 30, 2010 and
before  June  30,  2011,  increased  employer  contributions would begin
Fiscal Year 2011.
  Increases in employer contributions would be comparable to  the  esti-
mated increase in employer costs.
  OTHER  COSTS: The enactment of this proposed legislation would also be
expected to result in modest increases  in  administrative  expenses  of
NYCERS, the employer and certain New York City agencies.
  The  proposed legislation could potentially alter/postpone anticipated
retirement dates for those TBTA 50/20 program participants  with  30  or
more  years  of  credited  service. The financial effect of this has not
been measured in this Fiscal Note.
  CENSUS DATA: The calculation of estimated changes  in  APVB,  employer
costs  and  employer  contributions  presented  herein is based upon the
census data for active TBTA 50/20 Program participants, including 2 Tier
II TBTA members with salaries of approximately $0.1  million  and  1,411
Tier  IV  TBTA  members  with  salaries  of approximately $100.9 million
included in the June 30, 2008 (Lag) actuarial valuation of NYCERS.
  ACTUARIAL ASSUMPTIONS AND METHODS: Additional APVB, employer costs and
employer contributions have been computed as of June 30, 2008 based upon
the actuarial assumptions and methods in effect for the  June  30,  2008
(Lag)  actuarial  valuation  of NYCERS for use in determining the Fiscal
Year 2010 employer contributions.
  The actuarial assumptions used in the valuation in regards  to  proba-
bilities of retirement were not modified.
  The  development  of  the  APVB  assumes  that all impacted TBTA 50/20
Program participants would still be active participants in that Program.
  Additional annual employer costs and employer contributions have  been
estimated  assuming the additional APVB would be financed through future
normal contributions.
  STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the  Chief
Actuary  for  the New York City Retirement Systems. 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.

A. 10745                            3

  FISCAL NOTE IDENTIFICATION: This estimate is  intended  for  use  only
during  the  2010  Legislative Session. It is Fiscal Note 2010-06, dated
February 10, 2010, prepared by the Chief Actuary for the New  York  City
Employees' Retirement System.