NY State Senate Bill 2009-S50050

Senate Bill S50050

2009-2010 Legislative Session

Relates to rate of regular interest used in the actuarial valuation of liabilities for calculating contributions to the NYC employee's retirement system

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 23, 2009	referred to rules

2009-S50050 (ACTIVE) - Details

See other versions of this Bill:: A8933 ,; S60410 ,; S65009 ,; S5918 ,
Current Committee:: Senate Rules
Law Section:: New York City Administrative Code
Laws Affected:: Amd §13-638.2, NYC Ad Cd

2009-S50050 (ACTIVE) - Summary

Relates to rate of regular interest used in the actuarial valuation of liabilities for calculating contributions to the NYC employees' retirement system.

2009-S50050 (ACTIVE) - Bill Text download pdf

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

                                   50

                          Extraordinary Session

                            I N  S E N A T E

                              June 23, 2009
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Rules

AN ACT to amend the administrative code of the  city  of  New  York,  in
  relation  to  the rate of regular interest used in the actuarial valu-
  ation of liabilities for the purpose of calculating  contributions  to
  the  New  York  city  employees'  retirement system, the New York city
  teachers' retirement system, the police pension fund, subchapter  two,
  the  fire  department  pension  fund,  subchapter two and the board of
  education retirement system of such city by public employers and other
  obligers required to make employer contributions  to  such  retirement
  systems, and the crediting of special interest and additional interest
  to members of such retirement systems, and the allowance of supplemen-
  tary interest on the funds of such retirement systems

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

  Section 1. Paragraph 2 of subdivision b of  section  13-638.2  of  the
administrative  code  of the city of New York, as amended by chapter 152
of the laws of 2006, is amended to read as follows:
  (2) With respect to each retirement  system,  such  rate  of  interest
shall be as hereinafter set forth in this paragraph:

                                                First day and
                                                last day of
                   Rate of interest             fiscal year or
                   per centum per               series of fiscal
Retirement         annum, compounded            years for which
System             annually                     rate is effective
________________________________________________________________________
NYCERS             8%                           July 1, 2004 to
                                                June 30, [2009] 2010

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14397-01-9

S. 50                               2

NYCTRS             8%                           July 1, 2004 to
                                                June 30, [2009] 2010
PPF                8%                           July 1, 2004 to
                                                June 30, [2009] 2010
FPF                8%                           July 1, 2004 to
                                                June 30, [2009] 2010
BERS               8%                           July 1, 2004 to
                                                June 30, [2009] 2010

  S  2. Paragraph 2 of subdivision f of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 152  of  the
laws of 2006, is amended to read as follows:
  (2)  Such  special  interest shall be allowed at the rates and for the
periods set forth below in this paragraph:

                                                First day and
                                                last day of
                   Rate of interest             fiscal year or
                   per centum per               series of fiscal
Retirement         annum, compounded            years for which
System             annually                     rate is effective
________________________________________________________________________
NYCERS              1 1/4%                      July 1, 2004 to
                                                June 30, [2009] 2010
NYCTRS              1 1/4%                      July 1, 2004 to
                                                June 30, [2009] 2010
PPF                 1 1/4%                      July 1, 2004 to
                                                June 30, [2009] 2010
FPF                 1 1/4%                      July 1, 2004 to
                                                June 30, [2009] 2010
BERS                1 1/4%                      July 1, 2004 to
                                                June 30, [2009] 2010

  S 3. Paragraph 2 of subdivision g of section 13-638.2 of the  adminis-
trative  code  of the city of New York, as amended by chapter 152 of the
laws of 2006, is amended to read as follows:
  (2) Such additional interest shall be included at the  rates  and  for
the periods set forth below in this paragraph:

                                                First day and
                                                last day of
                   Rate of interest             fiscal year or
                   per centum per               series of fiscal
Retirement         annum, compounded            years for which
System             annually                     rate is effective
________________________________________________________________________
NYCERS              1 1/4%                      July 1, 2004 to
                                                June 30, [2009] 2010
NYCTRS              1 1/4%                      July 1, 2004 to
                                                June 30, [2009] 2010
PPF                 1 1/4%                      July 1, 2004 to
                                                June 30, [2009] 2010
FPF                 1 1/4%                      July 1, 2004 to
                                                June 30, [2009] 2010
BERS                1 1/4%                      July 1, 2004 to
                                                June 30, [2009] 2010

S. 50                               3

  S  4. Paragraph 2 of subdivision i of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 152  of  the
laws of 2006, is amended to read as follows:
  (2)  Such supplementary interest shall be allowed at the rates and for
the periods set forth below in this paragraph:

                                                First day and
                                                last day of
                   Rate of interest             fiscal year or
                   per centum per               series of fiscal
Retirement         annum, compounded            years for which
System             annually                     rate is effective
________________________________________________________________________
NYCERS             1%                           July 1, 2004 to
                                                June 30, [2009] 2010
NYCTRS             1%                           July 1, 2004 to
                                                June 30, [2009] 2010
PPF                1%                           July 1, 2004 to
                                                June 30, [2009] 2010
FPF                1%                           July 1, 2004 to
                                                June 30, [2009] 2010
BERS               1%                           July 1, 2004 to
                                                June 30, [2009] 2010

  S 5. This act shall take effect July 1, 2009, except that if it  shall
have  become  a  law subsequent to such date, this act shall take effect
immediately and shall be deemed to have been in full force and effect on
and after July 1, 2009.
  FISCAL NOTE.-- PROVISIONS OF PROPOSED LEGISLATION - OVERVIEW:
  The enactment of this proposed legislation (referred to  hereafter  as
"Interest Rate Extender Legislation") would amend Administrative Code of
the  City  of  New York ("ACNY") Section 13-638.2 to continue for Fiscal
Year 2010 for the  five  actuarially-funded  New  York  City  Retirement
Systems ("NYCRS") the following rates that expire on June 30, 2009:
  *  The 8.25% per annum rate used to credit interest on Tier I and Tier
II  member  account  balances   and   Increased-Take-Home-Pay   ("ITHP")
Reserves, and
  *  The  8.0% per annum Actuarial Interest Rate ("AIR") assumption used
to compute employer contributions.
  The Effective Date for this proposed  Interest  Rate  Extender  Legis-
lation would be July 1, 2009.
  FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The continuation for Fiscal
Year 2010 of the same 8.25% per annum rate that was used for Fiscal Year
2009  to  credit interest on Tier I and Tier II member contributions and
ITHP Reserves would not change the amount or timing of expected employer
contributions.
  The continuation for Fiscal Year 2010 of the AIR  assumption  of  8.0%
per annum that was used to determine employer contributions to the NYCRS
for  Fiscal  Year 2009 would not change the expected amount or timing of
employer contributions.
  Note: The Actuary anticipates developing proposed changes in actuarial
assumptions and methods to be effective for Fiscal Year 2010 or 2011 but
not until late Fiscal Year 2010 or sometime during Fiscal Year 2011.
  The financial impact of implementing those proposed changes in actuar-
ial assumptions and methods can be expected to differ from the financial

S. 50                               4

impact determined using the actuarial assumptions and methods  continued
from Fiscal Year 2009.
  OTHER  COSTS:  Enactment  of  this  proposed  legislation would not be
expected to produce any additional costs.
  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.
  FISCAL NOTE IDENTIFICATION: This estimate is  intended  for  use  only
during  the  2009  Legislative Session. It is Fiscal Note 2009-10, dated
June 9, 2009, prepared by the  Chief  Actuary  for  the  New  York  City
Retirement Systems.

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