LBD12119-06-2
S. 6735 2 A. 9558
pension costs are of substantial state concern and must be remedied
immediately.
It is incumbent on the state to implement common sense long-term
structural reform of the current pension system for future employees.
These reforms will not only protect the benefits of the public employ-
ees, but will provide financial stability to the state government, local
governments and school districts and taxpayers across this state.
S 1-a. Paragraph 1 of subdivision j of section 41 of the retirement
and social security law, as amended by chapter 397 of the laws of 2009,
is amended to read as follows:
1. In addition to any other service credit to which he or she is enti-
tled, a member who meets the requirements set forth in paragraphs two
and three of this subdivision shall be granted one day of additional
service credit for each day of accumulated unused sick leave which he or
she has at time of retirement for service, but such credit shall not (a)
exceed one hundred sixty-five days, (b) be considered in meeting any
service or age requirements prescribed in this chapter, and (c) be
considered in computing final average salary. However, for an executive
branch member designated managerial or confidential pursuant to article
fourteen of the civil service law or in the collective negotiating units
established by article fourteen of the civil service law designated the
professional, scientific and technical services unit, the rent regu-
lation services negotiating unit, the security services negotiating
unit, the security supervisors negotiating unit, the state university
professional services negotiating unit, the administrative services
negotiating unit, the institutional services negotiating unit, the oper-
ational services negotiating unit and the division of military and naval
affairs negotiating unit such service credit limitation provided in
subparagraph (a) of this paragraph shall not exceed two hundred days.
For a nonjudicial officer or employee of the unified court system not in
a collective negotiating unit or in a collective negotiating unit speci-
fied in section one of chapter two hundred three of the laws of two
thousand four, for employees of the New York state dormitory authority,
for employees of the New York state thruway authority, the New York
state canal corporation and the state university construction fund and
for employees of the New York liquidation bureau such service credit
limitation provided in subparagraph (a) of this paragraph shall not
exceed two hundred days. FOR MEMBERS WHO FIRST BECOME MEMBERS OF A
PUBLIC RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL FIRST, TWO THOU-
SAND TWELVE, SUCH CREDIT SHALL NOT EXCEED ONE HUNDRED DAYS.
S 2. Subdivisions a and b of section 376 of the retirement and social
security law, subdivision a as amended by chapter 389 of the laws of
1998 and subdivision b as amended by chapter 371 of the laws of 1969,
are amended to read as follows:
a. A member who discontinues service other than by death or retire-
ment:
1. who has credit for at least five years of total service, or
2. who has credit for at least five years of total service, including
a minimum of five years of member service during which the member
contributed to the system and/or participated in an increased-take-home-
pay or non-contributory plan, and who does not withdraw his or her accu-
mulated contributions, shall be entitled to make application pursuant to
section three hundred seventy of this article for a vested retirement
allowance to be effective on or after the first day of the month follow-
ing his or her attainment of sixty years of age, OR SIXTY-THREE YEARS OF
AGE FOR A MEMBER WHO FIRST BECOMES A MEMBER OF THE NEW YORK STATE AND
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LOCAL POLICE AND FIRE RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO
THOUSAND TWELVE. The retirement allowance provided by this section
shall vest automatically upon such discontinuance of service by such
member.
3. In the case of such a member who discontinues service other than by
death or retirement after March thirty-first, nineteen hundred sixty-
six, who had been contributing toward and/or participating in an
increased-take-home-pay or non-contributory plan for retirement on a
basis other than retirement at age sixty for five years preceding his or
her discontinuance of service, he or she shall be entitled to make
application for a vested retirement allowance to be effective on or
after the first day of the month following his or her attainment of
fifty-five years of age, OR SIXTY-THREE YEARS OF AGE FOR A MEMBER WHO
FIRST BECOMES A MEMBER OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE
RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
b. The vested retirement allowance shall be computed and paid in
accordance with the provisions of the plan of which the member had been
a participant provided, however, that if the service fraction used to
compute the retirement allowance or the pension provides a benefit
greater than that which would have been provided had the service frac-
tion one-sixtieth been used to compute the benefit, the service fraction
one-sixtieth shall be used to compute the vested retirement allowance
unless such plan shall specify another fraction to be used to compute
the vested retirement allowance. The vested retirement allowance shall
not be paid before the member attains age fifty-five, OR SIXTY-THREE
YEARS OF AGE FOR A MEMBER WHO FIRST BECOMES A MEMBER OF THE NEW YORK
STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM ON OR AFTER APRIL
FIRST, TWO THOUSAND TWELVE.
S 3. Subdivision e of section 440 of the retirement and social securi-
ty law, as added by chapter 285 of the laws of 1997, is amended to read
as follows:
e. Notwithstanding any other provision of law to the contrary, the
provisions and limitations of this article shall apply, as may be appro-
priate, to all investigator members of the New York city employees'
retirement system who last joined such retirement system on or after
July first, nineteen hundred seventy-six, AND PRIOR TO THE EFFECTIVE
DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWELVE WHICH AMENDED
THIS SUBDIVISION.
S 4. Subdivisions 5, 7, 12, 17 and 24 of section 501 of the retirement
and social security law, subdivisions 5, 12 and 17 as added by chapter
890 of the laws of 1976, subdivision 7 as amended by chapter 408 of the
laws of 2000 and subdivision 24 as amended by section 1 of part B of
chapter 504 of the laws of 2009, are amended to read as follows:
5. "Early retirement age" shall mean age fifty-five, for general
members, and the age on which a member completes or would have completed
twenty years of service, for police/fire members, NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBERS AND INVESTIGATOR
REVISED PLAN MEMBERS.
7. "Eligible beneficiary" for the purposes of section five hundred
nine of this article shall mean the following persons or classes of
persons in the order set forth: (a) a surviving spouse who has not
renounced survivorship rights in a separation agreement, until remar-
riage, (b) surviving children until age twenty-five, (c) dependent
parents, determined under regulations promulgated by the comptroller,
(d) any other person who qualified as a dependent on the final federal
income tax return of the member or the return filed in the year imme-
S. 6735 4 A. 9558
diately preceding the year of death, until such person reaches twenty-
one years of age and (e) with respect to members of the New York city
employees' retirement system (OTHER THAN A NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBER OR AN INVESTIGATOR REVISED
PLAN MEMBER) and the board of education retirement system of the city of
New York, a person whom the member shall have nominated in the form of a
written designation, duly acknowledged and filed with the head of the
retirement system for the purpose of section five hundred eight of this
article. In the event that a class of eligible beneficiaries consists of
more than one person, benefits shall be divided equally among the
persons in such class. For the purposes of section five hundred eight OF
THIS ARTICLE the term "eligible beneficiary" shall mean such person as
the member shall have nominated to receive the benefits provided in this
article. To be effective, such a nomination must be in the form of a
written designation, duly acknowledged and filed with the head of the
retirement system for this specific purpose. In the event such desig-
nated beneficiary does not survive him, or if he shall not have so
designated a beneficiary, such benefits shall be payable to the deceased
member's estate or as provided in section one thousand three hundred ten
of the surrogate's court procedure act.
12. "General member" shall mean a member subject to the provisions of
this article who is not a police/fire member, A NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBER OR AN INVESTIGATOR REVISED
PLAN MEMBER.
17. "Normal retirement age" shall be age sixty-two, for general
members, and the age at which a member completes or would have completed
twenty-two years of service, for police/fire members, NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBERS AND INVESTIGATOR
REVISED PLAN MEMBERS.
24. "Wages" shall mean regular compensation earned by and paid to a
member by a public employer, except that for members who first join the
state and local employees' retirement system on or after January first,
two thousand ten, overtime compensation paid in any year in excess of
the overtime ceiling, as defined by this subdivision, shall not be
included in the definition of wages. "Overtime compensation" shall mean,
for purposes of this section, compensation paid under any law or policy
under which employees are paid at a rate greater than their standard
rate for additional hours worked beyond those required, including
compensation paid under section one hundred thirty-four of the civil
service law and section ninety of the general municipal law. The "over-
time ceiling" shall mean fifteen thousand dollars per annum on January
first, two thousand ten, and shall be increased by three percent each
year thereafter, PROVIDED, HOWEVER, THAT FOR MEMBERS WHO FIRST BECOME
MEMBERS OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON
OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, "OVERTIME CEILING" SHALL MEAN
FIFTEEN THOUSAND DOLLARS PER ANNUM ON APRIL FIRST, TWO THOUSAND TWELVE,
AND SHALL BE INCREASED EACH YEAR THEREAFTER BY A PERCENTAGE TO BE DETER-
MINED ANNUALLY BY REFERENCE TO THE CONSUMER PRICE INDEX (ALL URBAN
CONSUMERS, CPI-U, U.S. CITY AVERAGE, ALL ITEMS, 1982-84=100), PUBLISHED
BY THE UNITED STATES BUREAU OF LABOR STATISTICS, FOR EACH APPLICABLE
CALENDAR YEAR. SAID PERCENTAGE SHALL EQUAL THE ANNUAL INFLATION AS
DETERMINED FROM THE INCREASE IN THE CONSUMER PRICE INDEX IN THE ONE YEAR
PERIOD ENDING ON THE DECEMBER THIRTY-FIRST PRIOR TO THE COST-OF-LIVING
ADJUSTMENT EFFECTIVE ON THE ENSUING APRIL FIRST. For the purpose of
calculation a member's primary federal social security retirement or
disability benefit, wages shall, in any calendar year, be limited to the
S. 6735 5 A. 9558
portion of the member's wages which would be subject to tax under
section three thousand one hundred twenty-one of the internal revenue
code of nineteen hundred fifty-four, or any predecessor or successor
provision relating thereto, if such member was employed by a private
employer. FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE
AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER THE EFFECTIVE DATE OF
THE CHAPTER OF THE LAWS OF TWO THOUSAND TWELVE WHICH AMENDED THIS SUBDI-
VISION, THE FOLLOWING ITEMS SHALL NOT BE INCLUDED IN THE DEFINITION OF
WAGES: (A) WAGES IN EXCESS OF THE ANNUAL SALARY PAID TO THE GOVERNOR
PURSUANT TO SECTION THREE OF ARTICLE FOUR OF THE STATE CONSTITUTION, (B)
LUMP SUM PAYMENTS FOR DEFERRED COMPENSATION, SICK LEAVE, ACCUMULATED
VACATION OR OTHER CREDITS FOR TIME NOT WORKED, (C) ANY FORM OF TERMI-
NATION PAY, (D) ANY ADDITIONAL COMPENSATION PAID IN ANTICIPATION OF
RETIREMENT, AND (E) IN THE CASE OF EMPLOYEES WHO RECEIVE WAGES FROM
THREE OR MORE EMPLOYERS IN A TWELVE MONTH PERIOD, THE WAGES PAID BY THE
THIRD AND EACH SUCCESSIVE EMPLOYER.
S 5. Section 501 of the retirement and social security law is amended
by adding three new subdivisions 25, 26 and 27 to read as follows:
25. "NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN
MEMBER" SHALL MEAN A MEMBER WHO BECOMES SUBJECT TO THE PROVISIONS OF
THIS ARTICLE ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, AND WHO IS A
MEMBER OF EITHER THE UNIFORMED FORCE OF THE NEW YORK CITY DEPARTMENT OF
CORRECTION OR THE UNIFORMED FORCE OF THE NEW YORK CITY DEPARTMENT OF
SANITATION.
26. "NEW YORK CITY POLICE/FIRE REVISED PLAN MEMBER" SHALL MEAN A
POLICE/FIRE MEMBER WHO BECOMES SUBJECT TO THE PROVISIONS OF THIS ARTICLE
ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, AND WHO IS A MEMBER OF
EITHER THE NEW YORK CITY POLICE PENSION FUND OR THE NEW YORK CITY FIRE
DEPARTMENT PENSION FUND.
27. "INVESTIGATOR REVISED PLAN MEMBER" SHALL MEAN AN INVESTIGATOR
MEMBER OF THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM WHO IS A POLICE
OFFICER AS DEFINED IN PARAGRAPH (G) OF SUBDIVISION THIRTY-FOUR OF
SECTION 1.20 OF THE CRIMINAL PROCEDURE LAW, AND WHO BECOMES SUBJECT TO
THE PROVISIONS OF THIS ARTICLE ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE.
S 6. Intentionally omitted.
S 7. Subdivisions a, c and d of section 503 of the retirement and
social security law, subdivision a as amended by chapter 662 of the laws
of 1988, subdivision c as amended by section 143 of subpart B of part C
of chapter 62 of the laws of 2011 and subdivision d as added by chapter
890 of the laws of 1976, are amended to read as follows:
a. The normal service retirement benefit specified in section five
hundred four OF THIS ARTICLE shall be payable to general members, other
than elective members, who have met the minimum service requirements
upon retirement and attainment of age sixty-two, provided, however, a
general member who is a peace officer employed by the unified court
system or a member of a teachers' retirement system may retire without
reduction of his or her retirement benefit upon attainment of at least
fifty-five years of age and completion of thirty or more years of
service. FOR MEMBERS WHO BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL
EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE, THE NORMAL SERVICE RETIREMENT BENEFITS SPECIFIED IN SECTION FIVE
HUNDRED FOUR OF THIS ARTICLE SHALL BE PAYABLE TO GENERAL MEMBERS, OTHER
THAN ELECTIVE MEMBERS, WHO HAVE MET THE MINIMUM SERVICE REQUIREMENTS
UPON RETIREMENT AND ATTAINMENT OF AGE SIXTY-THREE.
S. 6735 6 A. 9558
c. A general member shall be eligible for early service retirement at
age fifty-five with five years of credited service. A general member in
the uniformed correction force of the New York city department of
correction, who is not eligible for early service retirement pursuant to
subdivision c of section five hundred four-a of this article or subdivi-
sion c of section five hundred four-b of this article or subdivision c
of section five hundred four-d of this article, or a general member in
the uniformed personnel in institutions under the jurisdiction of the
department of corrections and community supervision, as defined in
subdivision i of section eighty-nine of this chapter or serving in
institutions who is also in a title defined in such subdivision and who
has made an election pursuant to the provisions of article seventeen of
this chapter, shall also be eligible for early service retirement after
twenty-five years of credited service, PROVIDED, HOWEVER, THAT THE
PROVISIONS OF THIS SUBDIVISION AND SUBDIVISION A OF THIS SECTION SHALL
NOT APPLY TO A NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED
PLAN MEMBER OR AN INVESTIGATOR REVISED PLAN MEMBER.
d. The normal service retirement benefit specified in section five
hundred five OF THIS ARTICLE shall be paid to police/fire members, NEW
YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBERS AND
INVESTIGATOR REVISED PLAN MEMBERS without regard to age upon retirement
after twenty-two years of service. Early service retirement shall be
permitted upon retirement after twenty years of credited service or
attainment of age sixty-two, PROVIDED, HOWEVER, THAT NEW YORK CITY
POLICE/FIRE REVISED PLAN MEMBERS, NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBERS AND INVESTIGATOR REVISED PLAN
MEMBERS SHALL NOT BE ELIGIBLE TO RETIRE FOR SERVICE PRIOR TO THE ATTAIN-
MENT OF TWENTY YEARS OF CREDITED SERVICE.
S 8. Subdivisions a, c and d of section 504 of the retirement and
social security law, subdivision a as added by chapter 890 of the laws
of 1976, subdivision c as amended by section 3 of part B of chapter 504
of the laws of 2009 and subdivision d as amended by section 144 of
subpart B of part C of chapter 62 of the laws of 2011, are amended to
read as follows:
a. The service retirement benefit for general members at normal
retirement age with twenty or more years of credited service shall be a
pension equal to one-fiftieth of final average salary times years of
credited service, not in excess of thirty years, less fifty percent of
the primary social security retirement benefit as provided in section
five hundred eleven OF THIS ARTICLE. THE SERVICE RETIREMENT BENEFIT FOR
GENERAL MEMBERS AT NORMAL RETIREMENT AGE WITH TWENTY OR MORE YEARS OF
SERVICE WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL EMPLOY-
EES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE AT
NORMAL RETIREMENT AGE SHALL BE A PENSION EQUAL TO THE SUM OF THIRTY-FIVE
PER CENTUM AND ONE-FIFTIETH OF FINAL AVERAGE SALARY FOR EACH YEAR OF
SERVICE IN EXCESS OF TWENTY, BUT NOT IN EXCESS OF THIRTY, TIMES FINAL
AVERAGE SALARY TIMES YEARS OF CREDITED SERVICE.
c. The early service retirement benefit for general members, except
for general members whose early retirement benefit is specified in
subdivision d of this section, shall be the service retirement benefit
specified in subdivision a or b of this section, as the case may be,
without social security offset, reduced by one-fifteenth for each of the
first two years by which early retirement precedes age sixty-two, plus a
further reduction of: (1) one-thirtieth; or (2) one-twentieth for
members who first join the New York state and local employees' retire-
ment system on or after January first, two thousand ten, for each year
S. 6735 7 A. 9558
by which early retirement precedes age sixty, PROVIDED HOWEVER, THAT FOR
MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL EMPLOY-
EES' RETIREMENT SYSTEM ON OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF
THE LAWS OF TWO THOUSAND TWELVE WHICH AMENDED THIS SUBDIVISION, THE
EARLY SERVICE RETIREMENT BENEFIT FOR GENERAL MEMBERS, EXCEPT FOR GENERAL
MEMBERS WHOSE EARLY RETIREMENT BENEFIT IS SPECIFIED IN SUBDIVISION D OF
THIS SECTION, SHALL BE THE SERVICE RETIREMENT BENEFIT SPECIFIED IN
SUBDIVISION A OR B OF THIS SECTION, AS THE CASE MAY BE, WITHOUT SOCIAL
SECURITY OFFSET, REDUCED BY SIX AND ONE-HALF PER CENTUM FOR EACH YEAR BY
WHICH EARLY RETIREMENT PRECEDES AGE SIXTY-THREE. At age sixty-two, the
benefit shall be reduced by fifty percent of the primary social security
retirement benefit, as provided in section five hundred eleven of this
article.
d. The early service retirement benefit for general members in the
uniformed correction force of the New York city department of
correction, who are not entitled to an early service retirement benefit
pursuant to subdivision c of section five hundred four-a of this article
or subdivision c of section five hundred four-b of this article or
subdivision c of section five hundred four-d of this article, or for
general members in the uniformed personnel in institutions under the
jurisdiction of the department of corrections and community supervision,
as defined in subdivision i of section eighty-nine of this chapter,
shall be a pension equal to one-fiftieth of final average salary times
years of credited service at the completion of twenty-five years of
service, but not in excess of fifty percent of final average salary,
PROVIDED, HOWEVER, THAT THE PROVISIONS OF THIS SECTION SHALL NOT APPLY
TO A NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER.
S 9. Subdivision b of section 504-a of the retirement and social secu-
rity law is amended by adding a new paragraph 4-a to read as follows:
4-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER OF THE UNIFORMED FORCE
OF THE NEW YORK CITY DEPARTMENT OF CORRECTION WHO IS A NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER SHALL BE A PARTIC-
IPANT IN THE TWENTY-YEAR RETIREMENT PROGRAM.
S 10. Subdivision b of section 504-b of the retirement and social
security law is amended by adding a new paragraph 4-a to read as
follows:
4-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER OF THE UNIFORMED FORCE
OF THE NEW YORK CITY DEPARTMENT OF CORRECTION WHO IS A NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER SHALL BE A PARTIC-
IPANT IN THE TWENTY-YEAR RETIREMENT PROGRAM FOR CAPTAINS AND ABOVE.
S 11. Subdivision b of section 504-d of the retirement and social
security law is amended by adding a new paragraph 1-a to read as
follows:
1-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER OF THE UNIFORMED FORCE
OF THE NEW YORK CITY DEPARTMENT OF CORRECTION WHO IS A NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER SHALL BE A PARTIC-
IPANT IN THE TWENTY-YEAR RETIREMENT PROGRAM.
S 12. Section 505 of the retirement and social security law, as added
by chapter 890 of the laws of 1976, is amended to read as follows:
S 505. Service retirement benefits; police/fire members, NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBERS AND INVESTIGATOR
REVISED PLAN MEMBERS. a. The normal service retirement benefit for
police/fire members, NEW YORK CITY UNIFORMED CORRECTION/SANITATION
S. 6735 8 A. 9558
REVISED PLAN MEMBERS AND INVESTIGATOR REVISED PLAN MEMBERS at normal
retirement age shall be a pension equal to fifty percent of final aver-
age salary, less fifty percent of the primary social security retirement
benefit commencing at age sixty-two, as provided in section five hundred
eleven OF THIS ARTICLE.
b. The early service retirement benefit for police/fire members, NEW
YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBERS AND
INVESTIGATOR REVISED PLAN MEMBERS shall be a pension equal to two and
one-tenths percent of final average salary times years of credited
service at the completion of twenty years of service or upon attainment
of age sixty-two, increased by one-third of one percent of final average
salary for each month of service in excess of twenty years, but not in
excess of fifty percent of final average salary, less fifty percent of
the primary social security retirement benefit commencing at age sixty-
two as provided in section five hundred eleven OF THIS ARTICLE,
PROVIDED, HOWEVER, THAT NEW YORK CITY POLICE/FIRE REVISED PLAN MEMBERS,
NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBERS AND
INVESTIGATOR REVISED PLAN MEMBERS SHALL NOT BE ELIGIBLE TO RETIRE FOR
SERVICE PRIOR TO THE ATTAINMENT OF TWENTY YEARS OF CREDITED SERVICE.
c. A police/fire member, A NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBER OR AN INVESTIGATOR REVISED
PLAN MEMBER who retires with twenty-two years of credited service or
less may become eligible for annual escalation of the service retirement
benefit if he elects to have the payment of his benefit commence on the
date he would have completed twenty-two years and one month or more of
service. In such event, the service retirement benefit shall equal two
percent of final average salary for each year of credited service, less
fifty percent of the primary social security retirement benefit commenc-
ing at age sixty-two as provided in section five hundred eleven OF THIS
ARTICLE.
S 13. Subdivisions b and c of section 507 of the retirement and social
security law, subdivision b as amended by chapter 489 of the laws of
2008 and subdivision c as amended by chapter 513 of the laws of 2010,
are amended to read as follows:
b. A police/fire member in active service, A NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBER IN ACTIVE SERVICE OR AN INVES-
TIGATOR REVISED PLAN MEMBER IN ACTIVE SERVICE, or a vested member inca-
pacitated as the result of a qualifying World Trade Center condition as
defined in section two of this chapter, who is not eligible for a normal
service retirement benefit shall be eligible for the accidental disabil-
ity benefit either as provided in subdivision a OF THIS SECTION or if
such member is physically or mentally incapacitated for performance of
duty as the natural and proximate result of an accident sustained in
such active service and not caused by such member's own willful negli-
gence.
c. In the case of a member of a retirement system other than the New
York state and local employees' retirement system, the New York state
teachers' retirement system, the New York city employees' retirement
system, the New York city board of education retirement system or the
New York city teachers' retirement system, OR IN THE CASE OF A MEMBER OF
THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM WHO IS A NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER OR AN INVESTIGATOR
REVISED PLAN MEMBER, the accidental disability benefit hereunder shall
be a pension equal to two percent of final average salary times years of
credited service which such member would have attained if employment had
continued until such member's full escalation date, not in excess of the
S. 6735 9 A. 9558
maximum years of service creditable for the normal service retirement
benefit, less (i) fifty percent of the primary social security disabili-
ty benefit, if any, as provided in section five hundred eleven of this
article, and (ii) one hundred percent of any workers' compensation bene-
fits payable.
In the case of a member of the New York state and local employees'
retirement system, the New York state teachers' retirement system, the
New York city employees' retirement system (OTHER THAN A NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER OR AN INVESTIGATOR
REVISED PLAN MEMBER), the New York city board of education retirement
system or the New York city teachers' retirement system, the accidental
disability benefit hereunder shall be a pension equal to sixty percent
of final average salary, less (i) fifty percent of the primary social
security disability benefit, if any, as provided in section five hundred
eleven of this article, and (ii) one hundred percent of any workers'
compensation benefits payable. In the event a disability retiree from
any retirement system is not eligible for the primary social security
disability benefit and continues to be eligible for disability benefits
hereunder, such disability benefit shall be reduced by one-half of such
retiree's primary social security retirement benefit, commencing at age
sixty-two, in the same manner as provided for service retirement bene-
fits under section five hundred eleven of this article.
S 14. The opening paragraph of subdivision a of section 507-a of the
retirement and social security law, as amended by section 145 of subpart
B of part C of chapter 62 of the laws of 2011, is amended to read as
follows:
[Application] SUBJECT TO THE PROVISIONS OF SUBDIVISION E OF THIS
SECTION, APPLICATION for a disability retirement allowance for a member
in the uniformed personnel in institutions under the jurisdiction of the
department of corrections and community supervision of New York state as
defined in subdivision i of section eighty-nine of this chapter or for a
member serving in institutions who is also in a title defined in such
subdivision and who has made an election pursuant to the provisions of
article seventeen of this chapter or the New York city department of
correction may be made by:
S 15. Section 507-a of the retirement and social security law is
amended by adding a new subdivision e to read as follows:
E. NOTWITHSTANDING THE PRECEDING SUBDIVISIONS OF THIS SECTION TO THE
CONTRARY, THIS SECTION SHALL NOT APPLY TO A MEMBER OF THE UNIFORMED
FORCE OF THE NEW YORK CITY DEPARTMENT OF CORRECTION WHO IS A NEW YORK
CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER.
S 16. Subdivision a of section 507-c of the retirement and social
security law, as added by chapter 622 of the laws of 1997, is amended to
read as follows:
a. Any member in the uniformed personnel in institutions under the
jurisdiction of the New York city department of correction, who becomes
physically or mentally incapacitated for the performance of duties as
the natural and proximate result of an injury, sustained in the perform-
ance or discharge of his or her duties by, or as a natural and proximate
result of, an act of any inmate or any person confined in an institution
under the jurisdiction of the department of correction or the department
of health, or by any person who has been committed to such institution
by any court shall be paid a performance of duty disability retirement
allowance equal to three-quarters of final average salary, subject to
the provisions of section 13-176 of the administrative code of the city
of New York, PROVIDED, HOWEVER, THAT THE PROVISIONS OF THIS SECTION
S. 6735 10 A. 9558
SHALL NOT APPLY TO A MEMBER OF THE UNIFORMED FORCE OF THE NEW YORK CITY
DEPARTMENT OF CORRECTION WHO IS A NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBER.
S 17. Subdivision b of section 508 of the retirement and social secu-
rity law, as amended by chapter 601 of the laws of 1997, is amended to
read as follows:
b. A member of a retirement system subject to the provisions of this
article who is a policeman, fireman, correction officer, INVESTIGATOR
REVISED PLAN MEMBER or sanitation man and is in a plan which permits
immediate retirement upon completion of a specified period of service
without regard to age or who is subject to the provisions of section
five hundred four or five hundred five of this article, shall upon
completion of ninety days of service be covered for financial protection
in the event of death in service pursuant to this subdivision. Such
death benefit shall be equal to three times the member's salary raised
to the next highest multiple of one thousand dollars, but in no event
shall it exceed three times the maximum salary specified in section one
hundred thirty of the civil service law or, in the case of a member of a
retirement system other than the New York city employees' retirement
system, OR IN THE CASE OF A MEMBER OF THE NEW YORK CITY EMPLOYEES'
RETIREMENT SYSTEM WHO IS A NEW YORK CITY UNIFORMED CORRECTION/SANITATION
REVISED PLAN MEMBER OR AN INVESTIGATOR REVISED PLAN MEMBER, the specific
limitations specified for age of entrance into service contained in
subparagraphs (b), (c), (d), (e) and (f) of paragraph two of subdivision
a of this section.
S 18. Paragraph 2 of subdivision b of section 510 of the retirement
and social security law, as added by chapter 890 of the laws of 1976, is
amended to read as follows:
2. The first day of the month following the date on which a member
completes or would have completed twenty-five years of credited service,
with respect to service retirement benefits for police/fire members and
their beneficiaries, NEW YORK CITY UNIFORMED CORRECTION/SANITATION
REVISED PLAN MEMBERS AND THEIR BENEFICIARIES OR INVESTIGATOR REVISED
PLAN MEMBERS AND THEIR BENEFICIARIES.
S 19. Subdivision f of section 511 of the retirement and social secu-
rity law, as amended by section 147 of subpart B of part C of chapter 62
of the laws of 2011, is amended to read as follows:
f. This section shall not apply to general members in the uniformed
correction force of the New York city department of correction or to
uniformed personnel in institutions under the jurisdiction of the
department of corrections and community supervision and security hospi-
tal treatment assistants, as those terms are defined in subdivision i of
section eighty-nine of this chapter, PROVIDED, HOWEVER, THAT THE
PROVISIONS OF THIS SECTION SHALL APPLY TO A NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBER.
S 20. Section 512 of the retirement and social security law, as
amended by chapter 379 of the laws of 1986, subdivisions b and c as
amended by chapter 286 of the laws of 2010 and subdivision d as added by
chapter 749 of the laws of 1992, is amended to read as follows:
S 512. Final average salary. a. A member's final average salary shall
be the average wages earned by such a member during any three consec-
utive years which provide the highest average wage; provided, however,
if the wages earned during any year included in the period used to
determine final average salary exceeds that of the average of the previ-
ous two years by more than ten percent, the amount in excess of ten
percent shall be excluded from the computation of final average salary.
S. 6735 11 A. 9558
[Where] NOTWITHSTANDING THE PRECEDING PROVISIONS OF THIS SUBDIVISION TO
THE CONTRARY, FOR A MEMBER WHO FIRST BECOMES A MEMBER OF THE NEW YORK
STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST,
TWO THOUSAND TWELVE, OR FOR A NEW YORK CITY POLICE/FIRE REVISED PLAN
MEMBER, A NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN
MEMBER OR AN INVESTIGATOR REVISED PLAN MEMBER, A MEMBER'S FINAL AVERAGE
SALARY SHALL BE THE AVERAGE WAGES EARNED BY SUCH A MEMBER DURING ANY
FIVE CONSECUTIVE YEARS WHICH PROVIDE THE HIGHEST AVERAGE WAGE; PROVIDED,
HOWEVER, IF THE WAGES EARNED DURING ANY YEAR INCLUDED IN THE PERIOD USED
TO DETERMINE FINAL AVERAGE SALARY EXCEEDS THAT OF THE AVERAGE OF THE
PREVIOUS FOUR YEARS BY MORE THAN TEN PERCENT, THE AMOUNT IN EXCESS OF
TEN PERCENT SHALL BE EXCLUDED FROM THE COMPUTATION OF FINAL AVERAGE
SALARY. IN DETERMINING FINAL AVERAGE SALARY PURSUANT TO ANY PROVISION OF
THIS SUBDIVISION, WHERE THE PERIOD USED TO DETERMINE FINAL AVERAGE SALA-
RY IS THE PERIOD WHICH IMMEDIATELY PRECEDES THE DATE OF RETIREMENT, ANY
MONTH OR MONTHS (NOT IN EXCESS OF TWELVE) WHICH WOULD OTHERWISE BE
INCLUDED IN COMPUTING FINAL AVERAGE SALARY BUT DURING WHICH THE MEMBER
WAS ON AUTHORIZED LEAVE OF ABSENCE AT PARTIAL PAY OR WITHOUT PAY SHALL
BE EXCLUDED FROM THE COMPUTATION OF FINAL AVERAGE SALARY AND THE MONTH
OR AN EQUAL NUMBER OF MONTHS IMMEDIATELY PRECEDING SUCH PERIOD SHALL BE
SUBSTITUTED IN LIEU THEREOF.
b. Notwithstanding the provisions of subdivision a of this section,
with respect to members of the New York state employees' retirement
system WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL EMPLOY-
EES' RETIREMENT SYSTEM BEFORE APRIL FIRST, TWO THOUSAND TWELVE, the New
York state and local police and fire retirement system and the New York
city teachers' retirement system, a member's final average salary shall
be equal to one-third of the highest total wages earned during any
continuous period of employment for which the member was credited with
three years of service credit; provided, however, if the wages earned
during any year of credited service included the period used to deter-
mine final average salary exceeds the average of the wages of the previ-
ous two years of credited service by more than ten percent, the amount
in excess of ten percent shall be excluded from the computation of final
average salary. FOR MEMBERS WHO FIRST BECOME A MEMBER OF THE NEW YORK
STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST,
TWO THOUSAND TWELVE, WITH RESPECT TO MEMBERS OF THE NEW YORK STATE AND
LOCAL EMPLOYEES' RETIREMENT SYSTEM, A MEMBER'S FINAL AVERAGE SALARY
SHALL BE EQUAL TO ONE-FIFTH OF THE HIGHEST TOTAL WAGES EARNED DURING ANY
CONTINUOUS PERIOD OF EMPLOYMENT FOR WHICH THE MEMBER WAS CREDITED WITH
FIVE YEARS OF SERVICE CREDIT; PROVIDED, HOWEVER, IF THE WAGES EARNED
DURING ANY YEAR OF CREDITED SERVICE INCLUDED THE PERIOD USED TO DETER-
MINE FINAL AVERAGE SALARY EXCEEDS THE AVERAGE OF THE WAGES OF THE PREVI-
OUS FOUR YEARS OF CREDITED SERVICE BY MORE THAN TEN PERCENT, THE AMOUNT
IN EXCESS OF TEN PERCENT SHALL BE EXCLUDED FROM THE COMPUTATION OF FINAL
AVERAGE SALARY.
c. Notwithstanding the provisions of subdivisions a and b of this
section, the final average salary of an employee who has been a member
of the New York city employees' retirement system (OTHER THAN A NEW YORK
CITY CORRECTION/SANITATION REVISED PLAN MEMBER OR AN INVESTIGATOR
REVISED PLAN MEMBER) or the New York city teachers' retirement system
for less than one year shall be the projected one year salary, with the
calculation based upon a twelve month projection of the sums earned in
the portion of the year worked. If a member has been employed for more
than one year but less than two years, then the member's final average
salary shall be the average of the first year and projected second year
S. 6735 12 A. 9558
earnings based upon the calculation above, and if more than two years,
but less than three years, then one-third the total of the first two
years of employment plus the projected third year's earnings, calculated
as indicated above.
d. Subject to the provisions of subdivision c of this section, and
notwithstanding the provisions of subdivision a of this section, with
respect to members of the New York city employees' retirement system
(OTHER THAN A NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN
MEMBER OR AN INVESTIGATOR REVISED PLAN MEMBER) and the New York city
board of education retirement system who are subject to the provisions
of this article, a member's final average salary shall be determined
pursuant to the provisions of paragraph thirteen of subdivision e of
section 13-638.4 of the administrative code of the city of New York.
S 21. Subdivision h of section 513 of the retirement and social secu-
rity law, as added by chapter 477 of the laws of 2005, is amended to
read as follows:
h. Notwithstanding any other provision of this section, any general
member in the uniformed correction force of the New York city department
of [corrections] CORRECTION who is absent without pay for a child care
leave of absence pursuant to regulations of the New York city department
of [corrections] CORRECTION shall be eligible for credit for such period
of child care leave provided such member files a claim for such service
credit with the retirement system by December thirty-first, two thousand
five or within ninety days of the termination of the child care leave,
whichever is later, and contributes to the retirement system an amount
which such member would have contributed during the period of such child
care leave, together with interest thereon. Service credit provided
pursuant to this subdivision shall not exceed one year of credit for
each period of authorized child care leave. In the event there is a
conflict between the provisions of this subdivision and the provisions
of any other law or code to the contrary, the provisions of this subdi-
vision shall govern, PROVIDED, HOWEVER, THAT THE PROVISIONS OF THIS
SUBDIVISION SHALL NOT APPLY TO A MEMBER OF THE UNIFORMED FORCE OF THE
NEW YORK CITY DEPARTMENT OF CORRECTION WHO IS A NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBER.
S 22. Intentionally omitted.
S 23. Subdivisions c and d of section 516 of the retirement and social
security law, subdivision c as added by chapter 890 of the laws of 1976
and subdivision d as amended by section 148 of subpart B of part C of
chapter 62 of the laws of 2011, are amended and a new subdivision e is
added to read as follows:
c. The deferred vested benefit of police/fire members, NEW YORK CITY
POLICE/FIRE REVISED PLAN MEMBERS, NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBERS OR INVESTIGATOR REVISED PLAN
MEMBERS shall be a pension commencing at early retirement age equal to
two and one-tenths percent of final average salary times years of cred-
ited service, less fifty percent of the primary social security retire-
ment benefit commencing at age sixty-two, as provided in section five
hundred eleven OF THIS ARTICLE. A police/fire member, A NEW YORK CITY
POLICE/FIRE REVISED PLAN MEMBER, A NEW YORK CITY UNIFORMED
CORRECTION/SANITATION REVISED PLAN MEMBER OR INVESTIGATOR REVISED PLAN
MEMBER may elect to receive his vested benefit commencing at early
retirement age or age fifty-five. If the vested benefit commences before
early retirement age, the benefit shall be reduced by one-fifteenth for
each year, if any, that the member's early retirement age is in excess
of age sixty, and by one-thirtieth for each additional year by which the
S. 6735 13 A. 9558
vested benefit commences prior to early retirement age. If such vested
benefit is deferred until after such member's normal retirement age, the
benefit shall be computed and subject to annual escalation in the same
manner as provided for an early retirement benefit pursuant to subdivi-
sion c of section five hundred five of this article.
d. The deferred vested benefit of general members in the uniformed
correction force of the New York city department of correction, who are
not entitled to a deferred vested benefit under subdivision d of section
five hundred four-a of this article or under subdivision d of section
five hundred four-b of this article or under subdivision d of section
five hundred four-d of this article, or of general members in the
uniformed personnel in institutions under the jurisdiction of the
department of corrections and community supervision, as defined in
subdivision i of section eighty-nine of this chapter, with twenty or
more years of credited service shall be a pension commencing at normal
retirement age equal to one-fiftieth of final average salary times years
of credited service, not in excess of thirty years, OR FOR MEMBERS WHO
FIRST BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIRE-
MENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, A PENSION
EQUAL TO THE SUM OF THIRTY-FIVE PER CENTUM AND ONE-FIFTIETH OF FINAL
AVERAGE SALARY FOR EACH YEAR OF SERVICE IN EXCESS OF TWENTY, BUT NOT IN
EXCESS OF THIRTY, TIMES FINAL AVERAGE SALARY TIMES YEARS OF CREDITED
SERVICE. The deferred vested benefit of general members in the
uniformed correction force of the New York city department of
correction, who are not entitled to a deferred vested benefit under
subdivision d of section five hundred four-a of this article or under
subdivision d of section five hundred four-b of this article or under
subdivision d of section five hundred four-d of this article, or of
general members in the uniformed personnel in institutions under juris-
diction of the department of corrections and community supervision, as
defined in subdivision i of section eighty-nine of this chapter, with
less than twenty years of credited service shall be a pension commencing
at normal retirement age equal to one-sixtieth of final average salary
times years of credited service. Such deferred vested benefit may be
paid in the form of an early service retirement benefit, or may be post-
poned until after normal retirement age, in which event the benefit will
be subject to reduction or escalation as provided in subdivision c of
section five hundred four of this article.
E. IN NO EVENT SHALL THE VESTED RETIREMENT ALLOWANCE PAYABLE WITHOUT
OPTIONAL MODIFICATION BE LESS THAN THE ACTUARIAL EQUIVALENT OF THE TOTAL
WHICH RESULTS FROM THE MEMBER'S CONTRIBUTIONS ACCUMULATED WITH INTEREST
AT FIVE PERCENT PER ANNUM COMPOUNDED ANNUALLY TO THE DATE OF RETIREMENT.
S 24. Subdivision a of section 517 of the retirement and social secu-
rity law, as added by chapter 890 of the laws of 1976, is amended to
read as follows:
a. Members shall contribute three percent of annual wages to the
retirement system in which they have membership, provided that such
contributions shall not be required for more than thirty years, for
general members, or twenty-five years, for police/fire members, EXCEPT
THAT BEGINNING APRIL FIRST, TWO THOUSAND THIRTEEN FOR MEMBERS WHO FIRST
BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE RATE AT WHICH
EACH SUCH MEMBER SHALL CONTRIBUTE IN ANY CURRENT PLAN YEAR (APRIL FIRST
TO MARCH THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE WAGES OF
SUCH MEMBER IN THE SECOND PLAN YEAR (APRIL FIRST TO MARCH THIRTY-FIRST)
PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
S. 6735 14 A. 9558
1. MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS
SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
3. MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
4. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM BUT
NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE AND
THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
5. MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, DURING EACH OF THE FIRST THREE PLAN
YEARS (APRIL FIRST TO MARCH THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE NEW YORK STATE AND LOCAL EMPLOYEES'
RETIREMENT SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL
WAGES IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
OF ANNUAL WAGES PROVIDED BY THE EMPLOYER.
The head of each retirement system shall promulgate such regulations
as may be necessary and appropriate with respect to the deduction of
such contribution from members' wages and for the maintenance of any
special fund or funds with respect to amounts so contributed.
S 25. Subdivision b of section 517-c of the retirement and social
security law, as amended by chapter 171 of the laws of 2011, is amended
to read as follows:
b. A member of the New York state and local employees' retirement
system, the New York state and local police and fire retirement system,
the New York city employees' retirement system or the New York city
board of education retirement system in active service who has credit
for at least one year of member service may borrow, no more than once
during each twelve month period, an amount not exceeding seventy-five
percent of the total contributions made pursuant to section five hundred
seventeen OF THIS ARTICLE (including interest credited at the rate set
forth in subdivision c of such section five hundred seventeen compounded
annually) and not less than one thousand dollars, PROVIDED, HOWEVER,
THAT THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO A NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER OR AN INVESTIGATOR
REVISED PLAN MEMBER.
S 26. Intentionally omitted.
S 27. Paragraphs 4 and 5 of subdivision a of section 600 of the
retirement and social security law, as amended by chapter 370 of the
laws of 1996, are amended and a new paragraph 6 is added to read as
follows:
4. Members qualified for participation in the uniformed transit police
force plan or housing police force plan in the New York city employees'
retirement [systems] SYSTEM; [and]
5. Investigator [member] MEMBERS of the New York city employees'
retirement system[.]; AND
6. MEMBERS OF THE UNIFORMED FORCE OF THE NEW YORK CITY DEPARTMENT OF
SANITATION WHO JOIN OR REJOIN A PUBLIC RETIREMENT SYSTEM OF THE STATE ON
OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
S 28. Subdivision l of section 601 of the retirement and social secu-
rity law, as amended by section 5 of part B of chapter 504 of the laws
of 2009, is amended to read as follows:
S. 6735 15 A. 9558
l. "Wages" shall mean regular compensation earned by and paid to a
member by a public employer, except that for members who first join the
New York state and local employees' retirement system or the New York
state teachers' retirement system on or after January first, two thou-
sand ten, overtime compensation paid in any year in excess of the over-
time ceiling, as defined by this subdivision, shall not be included in
the definition of wages. "Overtime compensation" shall mean, for
purposes of this section, compensation paid under any law or policy
under which employees are paid at a rate greater than their standard
rate for additional hours worked beyond those required, including
compensation paid under section one hundred thirty-four of the civil
service law and section ninety of the general municipal law. The "over-
time ceiling" shall mean fifteen thousand dollars per annum on January
first, two thousand ten, and shall be increased by three per cent each
year thereafter, PROVIDED, HOWEVER, THAT FOR MEMBERS WHO FIRST BECOME
MEMBERS OF A PUBLIC RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL
FIRST, TWO THOUSAND TWELVE, "OVERTIME CEILING" SHALL MEAN FIFTEEN THOU-
SAND DOLLARS PER ANNUM ON APRIL FIRST, TWO THOUSAND TWELVE, AND SHALL BE
INCREASED EACH YEAR THEREAFTER BY A PERCENTAGE TO BE DETERMINED ANNUALLY
BY REFERENCE TO THE CONSUMER PRICE INDEX (ALL URBAN CONSUMERS, CPI-U,
U.S. CITY AVERAGE, ALL ITEMS, 1982-84=100), PUBLISHED BY THE UNITED
STATES BUREAU OF LABOR STATISTICS, FOR EACH APPLICABLE CALENDAR YEAR.
SAID PERCENTAGE SHALL EQUAL THE ANNUAL INFLATION AS DETERMINED FROM THE
INCREASE IN THE CONSUMER PRICE INDEX IN THE ONE YEAR PERIOD ENDING ON
THE DECEMBER THIRTY-FIRST PRIOR TO THE COST-OF-LIVING ADJUSTMENT EFFEC-
TIVE ON THE ENSUING APRIL FIRST. FOR MEMBERS WHO FIRST JOIN A PUBLIC
RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE, THE FOLLOWING ITEMS SHALL NOT BE INCLUDED IN THE DEFINITION OF
WAGES: 1. WAGES IN EXCESS OF THE ANNUAL SALARY PAID TO THE GOVERNOR
PURSUANT TO SECTION THREE OF ARTICLE FOUR OF THE STATE CONSTITUTION, 2.
LUMP SUM PAYMENTS FOR DEFERRED COMPENSATION, SICK LEAVE, ACCUMULATED
VACATION OR OTHER CREDITS FOR TIME NOT WORKED, 3. ANY FORM OF TERMI-
NATION PAY, 4. ANY ADDITIONAL COMPENSATION PAID IN ANTICIPATION OF
RETIREMENT, AND 5. IN THE CASE OF EMPLOYEES WHO RECEIVE WAGES FROM THREE
OR MORE EMPLOYERS IN A TWELVE MONTH PERIOD, THE WAGES PAID BY THE THIRD
AND EACH SUCCESSIVE EMPLOYER.
S 29. Section 601 of the retirement and social security law is amended
by adding a new subdivision m to read as follows:
M. "NEW YORK CITY REVISED PLAN MEMBER" SHALL MEAN A MEMBER OF THE NEW
YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE NEW YORK CITY TEACHERS'
RETIREMENT SYSTEM OR THE BOARD OF EDUCATION RETIREMENT SYSTEM OF THE
CITY OF NEW YORK WHO BECOMES SUBJECT TO THE PROVISIONS OF THIS ARTICLE
ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
S 29-a. Subdivision b-1 of section 602 of the retirement and social
security law, as added by section 2 of part C of chapter 504 of the laws
of 2009, is amended to read as follows:
b-1. (1) Notwithstanding the provisions of subdivision a or b of this
section or any other provision of law to the contrary, (i) a member of
the New York city teachers' retirement system who holds a position
represented by the recognized teacher organization for collective
bargaining purposes, and who became subject to the provisions of this
article after the effective date of this subdivision, or (ii) a member
of the New York city board of education retirement system who holds a
position represented by the recognized teacher organization for collec-
tive bargaining purposes, and who became subject to the provisions of
this article after the effective date of this subdivision, shall not be
S. 6735 16 A. 9558
eligible for service retirement benefits hereunder until such member has
rendered a minimum of ten years of credited service.
(2) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION A OR B OF THIS
SECTION OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, A MEMBER WHO
FIRST JOINS A PUBLIC RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL
FIRST, TWO THOUSAND TWELVE SHALL NOT BE ELIGIBLE FOR SERVICE RETIREMENT
BENEFITS HEREUNDER UNTIL SUCH MEMBER HAS RENDERED A MINIMUM OF TEN YEARS
OF CREDITED SERVICE.
S 30. Intentionally omitted.
S 31. Subdivision a of section 603 of the retirement and social secu-
rity law, as amended by section 7 of part B of chapter 504 of the laws
of 2009, is amended and a new subdivision a-1 is added to read as
follows:
a. The service retirement benefit specified in section six hundred
four of this article shall be payable to members who have met the mini-
mum service requirements upon retirement and attainment of age sixty-
two, other than members who are eligible for early service retirement
pursuant to subdivision c of section six hundred four-b of this article,
subdivision c of section six hundred four-c of this article, subdivision
d of section six hundred four-d of this article, subdivision c of
section six hundred four-e of this article, subdivision c of section six
hundred four-f of this article, subdivision c of section six hundred
four-g of this article, subdivision c of section six hundred four-h of
this article or subdivision c of section six hundred four-i of this
article, provided, however, a member of a teachers' retirement system or
the New York state and local employees' retirement system who first
joins such system before January first, two thousand ten or a member who
is a uniformed court officer or peace officer employed by the unified
court system WHO FIRST BECOMES A MEMBER OF THE NEW YORK STATE AND LOCAL
EMPLOYEES' RETIREMENT SYSTEM BEFORE APRIL FIRST, TWO THOUSAND TWELVE may
retire without reduction of his or her retirement benefit upon attain-
ment of at least fifty-five years of age and completion of thirty or
more years of service, provided, however, that a uniformed court officer
or peace officer employed by the unified court system who first becomes
a member of the New York state and local employees' retirement system on
or after January first, two thousand ten and retires without reduction
of his or her retirement benefit upon attainment of at least fifty-five
years of age and completion of thirty or more years of service pursuant
to this section shall be required to make the member contributions
required by subdivision f of section six hundred thirteen of this arti-
cle for all years of credited and creditable service, PROVIDED FURTHER
THAT THE THE PRECEDING PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO
A NEW YORK CITY REVISED PLAN MEMBER.
A-1. FOR MEMBERS WHO FIRST BECOME A MEMBER OF A PUBLIC RETIREMENT
SYSTEM OF THE STATE ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE
SERVICE RETIREMENT BENEFIT SPECIFIED IN SECTION SIX HUNDRED FOUR OF THIS
ARTICLE SHALL BE PAYABLE TO MEMBERS WHO HAVE MET THE MINIMUM SERVICE
REQUIREMENTS UPON RETIREMENT AND HAVE ATTAINED AGE SIXTY-THREE.
S 32. Subdivision i of section 603 of the retirement and social secu-
rity law, as amended by section 8 of part B of chapter 504 of the laws
of 2009, is amended by adding a new paragraph 3 to read as follows:
3. A MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE STATE WHO HAS MET THE
MINIMUM SERVICE REQUIREMENT, BUT WHO IS NOT A NEW YORK CITY TRANSIT
AUTHORITY MEMBER, AS DEFINED IN PARAGRAPH ONE OF SUBDIVISION A OF
SECTION SIX HUNDRED FOUR-B OF THIS ARTICLE, MAY RETIRE PRIOR TO NORMAL
RETIREMENT AGE, BUT NO EARLIER THAN ATTAINMENT OF AGE FIFTY-FIVE, IN
S. 6735 17 A. 9558
WHICH EVENT, THE AMOUNT OF HIS OR HER RETIREMENT BENEFIT COMPUTED WITH-
OUT OPTIONAL MODIFICATION SHALL BE REDUCED BY SIX AND ONE-HALF PER
CENTUM FOR EACH YEAR BY WHICH EARLY RETIREMENT PRECEDES AGE SIXTY-THREE.
S 33. Subdivision t of section 603 of the retirement and social secu-
rity law, as added by section 8-a of part B of chapter 504 of the laws
of 2009, is amended to read as follows:
t. Members who join the New York state teachers' retirement system on
or after January first, two thousand ten, shall be eligible to retire
without reduction of his or her retirement benefit upon attainment of at
least fifty-seven years of age and completion of thirty or more years of
service. Members who retire pursuant to the provisions of this subdivi-
sion shall be required to make the member contributions required by
subdivision g of section six hundred thirteen of this article for all
years of credited and creditable service. THE PROVISIONS OF THIS SUBDI-
VISION SHALL NOT APPLY TO MEMBERS WHO FIRST BECOME A MEMBER OF THE NEW
YORK STATE TEACHERS' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO
THOUSAND TWELVE.
S 33-a. Subdivision a of section 604 of the retirement and social
security law, as amended by section 8-b of part B of chapter 504 of the
laws of 2009, is amended to read as follows:
a. The service retirement benefit at normal retirement age for a
member with less than twenty years of credited service, or less than
twenty-five years credited service for a member who joins the New York
state teachers' retirement system on or after January first, two thou-
sand ten, shall be a retirement allowance equal to one-sixtieth of final
average salary times years of credited service. NORMAL RETIREMENT AGE
FOR MEMBERS WHO FIRST BECOME MEMBERS OF A PUBLIC RETIREMENT SYSTEM OF
THE STATE ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE SHALL BE AGE
SIXTY-THREE.
S 34. Section 604 of the retirement and social security law is amended
by adding a new subdivision b-1 to read as follows:
B-1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
SERVICE RETIREMENT BENEFIT FOR MEMBERS WITH TWENTY OR MORE YEARS OF
CREDIT SERVICE WHO FIRST BECOME A MEMBER OF A PUBLIC RETIREMENT SYSTEM
OF THE STATE ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE AT AGE SIXTY-
THREE SHALL BE A PENSION EQUAL TO THE SUM OF THIRTY-FIVE PER CENTUM AND
ONE-FIFTIETH OF FINAL AVERAGE SALARY FOR EACH YEAR OF SERVICE IN EXCESS
OF TWENTY TIMES FINAL AVERAGE SALARY TIMES YEARS OF CREDITED SERVICE.
IN NO EVENT SHALL ANY RETIREMENT BENEFIT PAYABLE WITHOUT OPTIONAL
MODIFICATION BE LESS THAN THE ACTUARIALLY EQUIVALENT ANNUITIZED VALUE OF
THE MEMBER'S CONTRIBUTIONS ACCUMULATED WITH INTEREST AT FIVE PERCENT PER
ANNUM COMPOUNDED ANNUALLY TO THE DATE OF RETIREMENT.
S 35. Paragraph 1 of subdivision d of section 604-b of the retirement
and social security law, as amended by chapter 10 of the laws of 2000,
is amended to read as follows:
1. A participant in the twenty-five-year and age fifty-five retirement
program who:
(i) discontinues city-service and service as a member of the New York
city transit authority other than by death or retirement; and
(ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, prior to such discontinuance, completed five but less than
twenty-five years of allowable service in the transit authority OR, IN
THE CASE OF A PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER,
HAS COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF ALLOWABLE SERVICE
IN THE TRANSIT AUTHORITY PRIOR TO SUCH DISCONTINUANCE; and
S. 6735 18 A. 9558
(iii) has paid, prior to such discontinuance, all additional member
contributions and interest, if any, required by subdivision e of this
section; and
(iv) does not withdraw in whole or in part his or her accumulated
member contributions pursuant to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together with interest, pursuant to
such section six hundred thirteen of this article; shall be entitled to
receive a deferred vested benefit as provided in section six hundred
twelve of this article.
S 36. Subparagraph (ii) of paragraph 3 of subdivision d of section
604-b of the retirement and social security law, as added by chapter 352
of the laws of 1997, is amended to read as follows:
(ii) [Such] IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall become payable on the
earliest date on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN THE CASE OF A
PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
S 37. Subdivision b of section 604-c of the retirement and social
security law, as added by chapter 96 of the laws of 1995, is amended by
adding a new paragraph 2-a to read as follows:
2-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER WHO BECOMES SUBJECT TO
THE PROVISIONS OF THIS ARTICLE ON OR AFTER THE EFFECTIVE DATE OF THIS
PARAGRAPH SHALL BE A PARTICIPANT IN THE TWENTY-FIVE-YEAR EARLY RETIRE-
MENT PROGRAM.
S 38. Paragraph 1 of subdivision d of section 604-c of the retirement
and social security law, as amended by chapter 659 of the laws of 1999,
is amended to read as follows:
1. A participant in the twenty-year/age fifty retirement program who:
(i) discontinues service as a Triborough bridge and tunnel member,
other than by death or retirement; and
(ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, prior to such discontinuance, completed five but less than
twenty years of credited service OR, IN THE CASE OF A PARTICIPANT WHO IS
A NEW YORK CITY REVISED PLAN MEMBER, HAS COMPLETED TEN BUT LESS THAN
TWENTY YEARS OF CREDITED SERVICE; and
(iii) has paid, prior to such discontinuance, all additional member
contributions and interest (if any) required by subdivision e of this
section; and
(iv) does not withdraw in whole or in part his or her accumulated
member contributions pursuant to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together with interest, pursuant to
such section six hundred thirteen; shall be entitled to receive a
deferred vested benefit as provided in this subdivision.
S 39. Subparagraph (ii) of paragraph 2 of subdivision d of section
604-c of the retirement and social security law, as added by chapter 472
of the laws of 1995, is amended to read as follows:
(ii) [Such] IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall become payable on the
earliest date on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN THE CASE OF A
PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
S. 6735 19 A. 9558
S 40. Subdivision c of section 604-d of the retirement and social
security law is amended by adding a new paragraph 3-a to read as
follows:
3-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER WHO BECOMES SUBJECT TO
THE PROVISIONS OF THIS ARTICLE ON OR AFTER THE EFFECTIVE DATE OF THIS
PARAGRAPH SHALL BE A PARTICIPANT IN THE AGE FIFTY-SEVEN RETIREMENT
PROGRAM.
S 41. Paragraph 1 of subdivision d of section 604-e of the retirement
and social security law, as added by chapter 576 of the laws of 2000, is
amended to read as follows:
1. A participant in the twenty-five year retirement program:
(i) who discontinues service as such a participant, other than by
death or retirement; and
(ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, who prior to such discontinuance, completed five but less
than twenty-five years of allowable service as a dispatcher member OR,
IN THE CASE OF A PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER,
WHO PRIOR TO SUCH DISCONTINUANCE, COMPLETED TEN BUT LESS THAN
TWENTY-FIVE YEARS OF ALLOWABLE SERVICE AS A DISPATCHER MEMBER; and
(iii) who, subject to the provisions of paragraph seven of subdivision
e of this section, has paid, prior to such discontinuance, all addi-
tional member contributions and interest (if any) required by subdivi-
sion e of this section; and
(iv) who does not withdraw in whole or in part his or her accumulated
member contributions pursuant to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together with interest, pursuant to
such section six hundred thirteen; shall be entitled to receive a
deferred vested benefit as provided in this subdivision.
S 42. Subparagraph (ii) of paragraph 2 of subdivision d of section
604-e of the retirement and social security law, as added by chapter 576
of the laws of 2000, is amended to read as follows:
(ii) [Such] IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall become payable on the
earliest date on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN THE CASE OF A
PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
S 43. Paragraph 1 of subdivision d of section 604-e of the retirement
and social security law, as added by chapter 577 of the laws of 2000, is
amended to read as follows:
1. A participant in the twenty-five year retirement program:
(i) who discontinues service as such a participant, other than by
death or retirement; and
(ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, who prior to such discontinuance, completed five but less
than twenty-five years of allowable service as an EMT member OR, IN THE
CASE OF A PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, WHO
PRIOR TO SUCH DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE
YEARS OF ALLOWABLE SERVICE AS AN EMT MEMBER; and
(iii) who, subject to the provisions of paragraph seven of subdivision
e of this section, has paid, prior to such discontinuance, all addi-
tional member contributions and interest (if any) required by subdivi-
sion e of this section; and
S. 6735 20 A. 9558
(iv) who does not withdraw in whole or in part his or her accumulated
member contributions pursuant to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together with interest, pursuant to
such section six hundred thirteen; shall be entitled to receive a
deferred vested benefit as provided in this subdivision.
S 44. Subparagraph (ii) of paragraph 2 of subdivision d of section
604-e of the retirement and social security law, as added by chapter 577
of the laws of 2000, is amended to read as follows:
(ii) [Such] IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall become payable on the
earliest date on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN THE CASE OF A
PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
S 45. Paragraph 1 of subdivision d of section 604-f of the retirement
and social security law, as added by chapter 559 of the laws of 2001, is
amended to read as follows:
1. A participant in the twenty-five year retirement program:
(i) who discontinues service as such a participant, other than by
death or retirement; and
(ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, who prior to such discontinuance, completed five but less
than twenty-five years of credited service OR, IN THE CASE OF A PARTIC-
IPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
ED SERVICE; and
(iii) who, subject to the provisions of paragraph seven of subdivision
e of this section, has paid, prior to such discontinuance, all addi-
tional member contributions and interest (if any) required by subdivi-
sion e of this section; and
(iv) who does not withdraw in whole or in part his or her accumulated
member contributions pursuant to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together with interest, pursuant to
such section six hundred thirteen; shall be entitled to receive a
deferred vested benefit as provided in this subdivision.
S 46. Subparagraph (ii) of paragraph 2 of subdivision d of section
604-f of the retirement and social security law, as added by chapter 559
of the laws of 2001, is amended to read as follows:
(ii) [Such] IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall become payable on the
earliest date on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN THE CASE OF A
PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
S 47. Paragraph 1 of subdivision d of section 604-f of the retirement
and social security law, as added by chapter 582 of the laws of 2001, is
amended to read as follows:
1. A participant in the twenty-five year retirement program:
(i) who discontinues service as such a participant, other than by
death or retirement; and
(ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, who prior to such discontinuance, completed five but less
than twenty-five years of allowable service as a special officer, park-
ing control specialist, school safety agent, campus peace officer or
S. 6735 21 A. 9558
taxi and limousine inspector member OR, IN THE CASE OF A PARTICIPANT WHO
IS A NEW YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH DISCONTIN-
UANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF ALLOWABLE
SERVICE AS A SPECIAL OFFICER, PARKING CONTROL SPECIALIST, SCHOOL SAFETY
AGENT, CAMPUS PEACE OFFICER OR TAXI AND LIMOUSINE INSPECTOR MEMBER; and
(iii) who, subject to the provisions of paragraph seven of subdivision
e of this section, has paid, prior to such discontinuance, all addi-
tional member contributions and interest, if any, required by subdivi-
sion e of this section; and
(iv) who does not withdraw in whole or in part his or her accumulated
member contributions pursuant to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together with interest, pursuant to
such section six hundred thirteen; shall be entitled to receive a
deferred vested benefit as provided in this subdivision.
S 48. Subparagraph (ii) of paragraph 2 of subdivision d of section
604-f of the retirement and social security law, as added by chapter 582
of the laws of 2001, is amended to read as follows:
(ii) [Such] IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall become payable on the
earliest date on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN THE CASE OF A
PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
S 49. Paragraph 1 of subdivision d of section 604-g of the retirement
and social security law, as added by chapter 414 of the laws of 2002, is
amended to read as follows:
1. A participant in the twenty-five year/age fifty retirement program:
(i) who discontinues service as such a participant, other than by
death or retirement; and
(ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, who prior to such discontinuance, completed five but less
than twenty-five years of credited service OR, IN THE CASE OF A PARTIC-
IPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
ED SERVICE; and
(iii) who, subject to the provisions of paragraph seven of subdivision
e of this section, has paid, prior to such discontinuance, all addi-
tional member contributions and interest (if any) required by subdivi-
sion e of this section; and
(iv) who does not withdraw in whole or in part his or her accumulated
member contributions pursuant to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together with interest, pursuant to
such section six hundred thirteen; shall be entitled to receive a
deferred vested benefit as provided in this subdivision.
S 50. Subparagraph (ii) of paragraph 2 of subdivision d of section
604-g of the retirement and social security law, as added by chapter 414
of the laws of 2002, is amended to read as follows:
(ii) [Such] IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall become payable on the
earliest date on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN THE CASE OF A
PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
S. 6735 22 A. 9558
S 51. Paragraph 1 of subdivision d of section 604-h of the retirement
and social security law, as added by chapter 682 of the laws of 2003, is
amended to read as follows:
1. A participant in the twenty-five year retirement program:
(i) who discontinues service as such a participant, other than by
death or retirement; and
(ii) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, who prior to such discontinuance, completed five but less
than twenty-five years of credited service OR, IN THE CASE OF A PARTIC-
IPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
ED SERVICE; and
(iii) who, subject to the provisions of paragraph seven of subdivision
e of this section, has paid, prior to such discontinuance, all addi-
tional member contributions and interest (if any) required by subdivi-
sion e of this section; and
(iv) who does not withdraw in whole or in part his or her accumulated
member contributions pursuant to section six hundred thirteen of this
article unless such participant thereafter returns to public service and
repays the amounts so withdrawn, together with interest, pursuant to
such section six hundred thirteen; shall be entitled to receive a
deferred vested benefit as provided in this subdivision.
S 52. Subparagraph (ii) of paragraph 2 of subdivision d of section
604-h of the retirement and social security law, as added by chapter 682
of the laws of 2003, is amended to read as follows:
(ii) [Such] IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY
REVISED PLAN MEMBER, SUCH vested benefit shall become payable on the
earliest date on which such discontinued member could have retired for
service if such discontinuance had not occurred OR, IN THE CASE OF A
PARTICIPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH VESTED
BENEFIT SHALL BECOME PAYABLE AT AGE SIXTY-THREE.
S 53. Subdivision b of section 604-i of the retirement and social
security law is amended by adding a new paragraph 5-a to read as
follows:
5-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY, NO MEMBER WHO BECOMES SUBJECT TO
THE PROVISIONS OF THIS ARTICLE ON OR AFTER THE EFFECTIVE DATE OF THIS
PARAGRAPH SHALL BE A PARTICIPANT IN THE AGE FIFTY-FIVE RETIREMENT
PROGRAM.
S 54. Subdivisions a, b, c and d of section 608 of the retirement and
social security law, subdivision a as amended by chapter 379 of the laws
of 1986, subdivisions b and c as amended by chapter 286 of the laws of
2010 and subdivision d as added by chapter 749 of the laws of 1992, are
amended to read as follows:
a. [A] FOR MEMBERS WHO FIRST BECOME MEMBERS OF A PUBLIC RETIREMENT
SYSTEM OF THE STATE BEFORE APRIL FIRST, TWO THOUSAND TWELVE, A member's
final average salary shall be the average wages earned by such a member
during any three consecutive years which provide the highest average
wage; provided, however, if the wages earned during any year included in
the period used to determine final average salary exceeds that of the
average of the previous two years by more than ten percent, the amount
in excess of ten percent shall be excluded from the computation of final
average salary. FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW YORK
STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE
TEACHERS' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE, A MEMBER'S FINAL AVERAGE SALARY SHALL BE THE AVERAGE WAGES
S. 6735 23 A. 9558
EARNED BY SUCH MEMBER DURING ANY FIVE CONSECUTIVE YEARS WHICH PROVIDE
THE HIGHEST AVERAGE WAGE; PROVIDED, HOWEVER, IF THE WAGES EARNED DURING
ANY YEAR INCLUDED IN THE PERIOD USED TO DETERMINE FINAL AVERAGE SALARY
EXCEEDS THAT OF THE AVERAGE OF THE PREVIOUS FOUR YEARS BY MORE THAN TEN
PERCENT, THE AMOUNT IN EXCESS OF TEN PERCENT SHALL BE EXCLUDED FROM THE
COMPUTATION OF FINAL AVERAGE SALARY. Where the period used to determine
final average salary is the period which immediately precedes the date
of retirement, any month or months (not in excess of twelve) which would
otherwise be included in computing final average salary but during which
the member was on authorized leave of absence at partial pay or without
pay shall be excluded from the computation of final average salary and
the month or an equal number of months immediately preceding such period
shall be substituted in lieu thereof.
b. Notwithstanding the provisions of subdivision a of this section,
with respect to members WHO FIRST BECAME MEMBERS of the New York state
AND LOCAL employees' retirement system and the New York city teachers'
retirement system BEFORE APRIL FIRST, TWO THOUSAND TWELVE, a member's
final average salary shall be equal to one-third of the highest total
wages earned by such member during any continuous period of employment
for which the member was credited with three years of service credit;
provided, however, if the wages earned during any year of credited
service included in the period used to determine final average salary
exceeds the average of the wages of the previous two years of credited
service by more than ten percent, the amount in excess of ten percent
shall be excluded from the computation of final average salary. WITH
RESPECT TO MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE AND
LOCAL EMPLOYEES' RETIREMENT SYSTEM AND THE NEW YORK CITY TEACHERS'
RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, A
MEMBER'S FINAL AVERAGE SALARY SHALL BE EQUAL TO ONE-FIFTH OF THE HIGHEST
TOTAL WAGES EARNED BY SUCH MEMBER DURING ANY CONTINUOUS PERIOD OF
EMPLOYMENT FOR WHICH THE MEMBER WAS CREDITED WITH FIVE YEARS OF SERVICE
CREDIT; PROVIDED, HOWEVER, IF THE WAGES EARNED DURING ANY YEAR OF CRED-
ITED SERVICE INCLUDED IN THE PERIOD USED TO DETERMINE FINAL AVERAGE
SALARY EXCEEDS THE AVERAGE OF THE WAGES OF THE PREVIOUS FOUR YEARS OF
CREDITED SERVICE BY MORE THAN TEN PERCENT, THE AMOUNT IN EXCESS OF TEN
PERCENT SHALL BE EXCLUDED FROM THE COMPUTATION OF FINAL AVERAGE SALARY.
c. Notwithstanding the provisions of subdivisions a and b of this
section, the final average salary of an employee who has been a member
of the New York city employees' retirement system or the New York city
teachers' retirement system for less than one year shall be the project-
ed one year salary, with the calculation based upon a twelve month
projection of the sums earned in the portion of the year worked. If a
member has been employed for more than one year but less than two years,
then the member's final average salary shall be the average of the first
year and projected second year earnings based upon the calculation
above, and if more than two years, but less than three years, then one-
third the total of the first two years of employment plus the projected
third year's earnings, calculated as indicated above, PROVIDED THAT THIS
SUBDIVISION SHALL NOT APPLY TO A NEW YORK CITY REVISED PLAN MEMBER OF
THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM OR A NEW YORK CITY
REVISED PLAN MEMBER OF THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM.
d. Subject to the provisions of subdivision c of this section, and
notwithstanding the provisions of subdivision a of this section, with
respect to members of the New York city employees' retirement system and
the New York city board of education retirement system who are subject
to the provisions of this article, a member's final average salary shall
S. 6735 24 A. 9558
be determined pursuant to the provisions of paragraph fourteen of SUBDI-
VISION E OF section 13-638.4 of the administrative code of the city of
New York, PROVIDED, HOWEVER, THAT THE APPLICABLE PROVISIONS AND LIMITA-
TIONS OF THE TERM "WAGES", AS DEFINED IN SUBDIVISION L OF SECTION SIX
HUNDRED ONE OF THIS ARTICLE, SHALL APPLY TO SUCH DETERMINATIONS OF FINAL
AVERAGE SALARY.
S 55. Paragraph 2 of subdivision b of section 609 of the retirement
and social security law, as amended by section 8-c of part B of chapter
504 of the laws of 2009, is amended to read as follows:
2. Previous service credit shall not be granted unless such member
applies therefor and repays the amount refunded by a public retirement
system of the state for service rendered after July first, nineteen
hundred seventy-six together with interest through the date of repayment
at the rate of five percent per annum compounded annually and three
percent of the wages earned for service prior to that date together with
interest from July first, nineteen hundred seventy-six through the date
of payment at the rate of five percent per annum compounded annually and
three percent of the wages earned for service which predates the date of
entry into the retirement system together with interest at the rate of
five percent per annum compounded annually from the date of such service
until the date of payment. Anything in this paragraph to the contrary
notwithstanding, in order to obtain credit for previous service, members
who first join the New York state teachers' retirement system on or
after January first, two thousand ten shall pay three and one-half
percent of wages earned for service which predates the date of entry
into the retirement system together with interest at the rate of five
percent per annum compounded annually from the date of such service
until the date of payment. ANYTHING IN THIS PARAGRAPH TO THE CONTRARY
NOTWITHSTANDING, IN ORDER TO OBTAIN CREDIT FOR PREVIOUS SERVICE, MEMBERS
WHO FIRST JOIN A PUBLIC RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL
FIRST, TWO THOUSAND TWELVE SHALL PAY SIX PERCENT OF WAGES EARNED FOR
SERVICE WHICH PREDATES THE DATE OF ENTRY INTO THE RETIREMENT SYSTEM
TOGETHER WITH INTEREST AT THE RATE OF FIVE PERCENT PER ANNUM COMPOUNDED
ANNUALLY FROM THE DATE OF SUCH SERVICE UNTIL THE DATE OF PAYMENT.
S 56. Section 609 of the retirement and social security law is amended
by adding a new subdivision h to read as follows:
H. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A NEW
YORK CITY REVISED PLAN MEMBER SHALL NOT RECEIVE SERVICE CREDIT FOR ANY
UNDOCUMENTED SICK LEAVE THAT MAY BE CREDITED TOWARD TERMINAL LEAVE.
S 57. Subdivisions a and a-1 of section 612 of the retirement and
social security law, subdivision a as separately amended by section 9 of
part B and section 3 of part C of chapter 504 of the laws of 2009 and
subdivision a-1 as added by section 4 of part C of chapter 504 of the
laws of 2009, are amended to read as follows:
a. Except as provided in subdivision a-1 of this section, a member who
has five or more years of credited service, or ten or more years of
credited service for a member who first joined the New York state and
local employees' retirement system or the New York state teachers'
retirement system on or after January first, two thousand ten, upon
termination of employment, other than a member who is entitled to a
deferred vested benefit pursuant to any other provision of this article,
shall be entitled to a deferred vested benefit at normal retirement age
computed in accordance with the provisions of section six hundred four
of this article. Except as provided in subdivision a-1 of this section,
a member of a teachers' retirement system or the New York state and
local employees' retirement system who has five or more years of credit-
S. 6735 25 A. 9558
ed service, or ten or more years of credited service for a member who
first becomes a member of the New York state and local employees'
retirement system or the New York state teachers' retirement system on
or after January first, two thousand ten, upon termination of employment
shall be entitled to a deferred vested benefit prior to normal retire-
ment age, but no earlier than age fifty-five, computed in accordance
with the provisions of subdivision i of section six hundred three of
this article AS AMENDED BY SECTION EIGHT OF PART B OF CHAPTER FIVE
HUNDRED FOUR OF THE LAWS OF TWO THOUSAND NINE. ANYTHING TO THE CONTRARY
NOTWITHSTANDING, A MEMBER OF A PUBLIC RETIREMENT SYSTEM OF THE STATE WHO
FIRST BECAME A MEMBER OF SUCH SYSTEM ON OR AFTER APRIL FIRST, TWO THOU-
SAND TWELVE MUST HAVE AT LEAST TEN YEARS OF CREDITED SERVICE IN ORDER TO
QUALIFY FOR A DEFERRED VESTED BENEFIT UNDER THIS SECTION; SUCH MEMBER
SHALL NOT BE ENTITLED TO SUCH BENEFIT PRIOR TO THE MEMBER'S ATTAINMENT
OF AGE SIXTY-THREE; AND SUCH DEFERRED VESTED BENEFIT SHALL BE COMPUTED
PURSUANT TO SUBDIVISION B-1 OF SECTION SIX HUNDRED FOUR OF THIS ARTICLE.
a-1. Notwithstanding the provisions of subdivision a of this section
or any other provision of law to the contrary, (i) a member of the New
York city teachers' retirement system who holds a position represented
by the recognized teacher organization for collective bargaining
purposes, who became subject to the provisions of this article after the
effective date of this subdivision, and who has ten or more years of
credited service, or (ii) a member of the New York city board of educa-
tion retirement system who holds a position represented by the recog-
nized teacher organization for collective bargaining purposes, who
became subject to the provisions of this article after the effective
date of this subdivision, and who has ten or more years of credited
service, other than such a member of either of such retirement systems
who is entitled to a deferred vested benefit pursuant to any other
provision of this article, shall, upon termination of employment, be
entitled to a deferred vested benefit at normal retirement age computed
in accordance with the provisions of section six hundred four of this
article. Notwithstanding the provisions of subdivision a of this
section or any other provision of law to the contrary, a member of the
New York city teachers' retirement system who holds a position repres-
ented by the recognized teacher organization for collective bargaining
purposes, who became subject to the provisions of this article after the
effective date of this subdivision, and who has ten or more years of
credited service, shall, upon termination of employment, be entitled to
a deferred vested benefit prior to normal retirement age, but no earlier
than age fifty-five, computed in accordance with the provisions of
subdivision i of section six hundred three of this article, PROVIDED,
HOWEVER, THAT ANY SUCH MEMBER OF EITHER OF SUCH RETIREMENT SYSTEMS WHO
IS A NEW YORK CITY REVISED PLAN MEMBER SHALL BE REQUIRED TO HAVE AT
LEAST TEN YEARS OF CREDITED SERVICE IN ORDER TO BE ELIGIBLE FOR A
DEFERRED VESTED BENEFIT, SUCH MEMBER SHALL NOT BE ENTITLED TO PAYABILITY
OF SUCH BENEFIT PRIOR TO ATTAINMENT OF AGE SIXTY-THREE AND SUCH DEFERRED
VESTED BENEFIT SHALL BE COMPUTED PURSUANT TO SUBDIVISION B-1 OF SECTION
SIX HUNDRED FOUR OF THIS ARTICLE.
S 58. Paragraphs 1 and 2 of subdivision a and subdivisions f and g of
section 613 of the retirement and social security law, paragraph 1 of
subdivision a as amended and paragraph 2 of subdivision a as added by
chapter 10 of the laws of 2000, subdivisions f and g as added by section
9-a of part B of chapter 504 of the laws of 2009, are amended to read as
follows:
S. 6735 26 A. 9558
1. Except as provided by paragraph two of this subdivision, members
shall contribute three percent of annual wages to the retirement system
in which they have membership, EXCEPT THAT BEGINNING APRIL FIRST, TWO
THOUSAND THIRTEEN FOR MEMBERS WHO FIRST BECOME MEMBERS OF A PUBLIC
RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE, THE RATE AT WHICH EACH SUCH MEMBER SHALL CONTRIBUTE IN ANY
CURRENT PLAN YEAR (APRIL FIRST TO MARCH THIRTY-FIRST) SHALL BE DETER-
MINED BY REFERENCE TO THE WAGES OF SUCH MEMBER IN THE SECOND PLAN YEAR
(APRIL FIRST TO MARCH THIRTY-FIRST) PRECEDING SUCH CURRENT PLAN YEAR AS
FOLLOWS:
(I) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
(II) MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
(III) MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
(IV) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE
AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
(V) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, DURING EACH OF THE FIRST THREE PLAN
YEARS (APRIL FIRST TO MARCH THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP IN A PUBLIC RETIREMENT SYSTEM OF THE STATE, SUCH
MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN ACCORDANCE WITH
THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL WAGES PROVIDED
BY THE EMPLOYER.
The head of each retirement system shall promulgate such regulations
as may be necessary and appropriate with respect to the deduction of
such contribution from members' wages and for the maintenance of any
special fund or funds with respect to amounts so contributed.
2. A member of the New York city employees' retirement system who is
eligible to be a participant in the twenty-five-year and age fifty-five
retirement program, as defined by paragraph five of subdivision a of
section six hundred four-b of this article shall contribute two percent
of annual wages to such system effective on the starting date of the
elimination of additional member contributions, as defined in an
election made pursuant to paragraph ten of subdivision e of section six
hundred four-b of this article, EXCEPT THAT BEGINNING APRIL FIRST, TWO
THOUSAND THIRTEEN FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW YORK
CITY EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE, THE RATE AT WHICH EACH SUCH MEMBER SHALL CONTRIBUTE IN ANY
CURRENT PLAN YEAR (APRIL FIRST TO MARCH THIRTY-FIRST) SHALL BE DETER-
MINED BY REFERENCE TO THE WAGES OF SUCH MEMBER IN THE SECOND PLAN YEAR
(APRIL FIRST TO MARCH THIRTY-FIRST) PRECEDING SUCH CURRENT PLAN YEAR AS
FOLLOWS:
(I) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
(II) MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
(III) MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
S. 6735 27 A. 9558
(IV) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE
AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
(V) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, DURING EACH OF THE FIRST THREE PLAN
YEARS (APRIL FIRST TO MARCH THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE NEW YORK CITY EMPLOYEES' RETIREMENT
SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN
ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
WAGES PROVIDED BY THE EMPLOYER.
f. Anything in subdivision a of this section to the contrary notwith-
standing a member employed as a uniformed court officer or peace officer
in the unified court system who first joins the New York state and local
employees' retirement system on or after January first, two thousand ten
shall contribute four percent of annual wages to the New York state and
local employees' retirement system , EXCEPT THAT BEGINNING APRIL FIRST,
TWO THOUSAND THIRTEEN FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW
YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL
FIRST, TWO THOUSAND TWELVE, THE RATE AT WHICH EACH SUCH MEMBER SHALL
CONTRIBUTE IN ANY CURRENT PLAN YEAR (APRIL FIRST TO MARCH THIRTY-FIRST)
SHALL BE DETERMINED BY REFERENCE TO THE WAGES OF SUCH MEMBER IN THE
SECOND PLAN YEAR (APRIL FIRST TO MARCH THIRTY-FIRST) PRECEDING SUCH
CURRENT PLAN YEAR AS FOLLOWS:
1. MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS
SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
3. MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
4. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM BUT
NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE AND
THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
5. MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, DURING EACH OF THE FIRST THREE PLAN
YEARS (APRIL FIRST TO MARCH THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE NEW YORK STATE AND LOCAL EMPLOYEES'
RETIREMENT SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL
WAGES IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
OF ANNUAL WAGES PROVIDED BY THE EMPLOYER.
The head of the New York state and local employees' retirement system
shall promulgate such regulations as may be necessary and appropriate
with respect to the deduction of such contribution from members' wages
and for the maintenance of any special fund or funds with respect to
amounts so contributed.
g. Members who first join the New York state teachers' retirement
system on or after January first, two thousand ten shall contribute
three and one-half percent of annual wages to the New York state teach-
ers' retirement system, EXCEPT THAT BEGINNING APRIL FIRST, TWO THOUSAND
THIRTEEN FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE
TEACHERS' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE, THE RATE AT WHICH EACH SUCH MEMBER SHALL CONTRIBUTE IN ANY
CURRENT PLAN YEAR (JULY FIRST TO JUNE THIRTIETH) SHALL BE DETERMINED BY
S. 6735 28 A. 9558
REFERENCE TO THE WAGES OF SUCH MEMBER IN THE SECOND PLAN YEAR (JULY
FIRST TO JUNE THIRTIETH) PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
1. MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS
SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
3. MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
4. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM BUT
NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE AND
THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
5. MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, DURING EACH OF THE FIRST THREE PLAN
YEARS (JULY FIRST TO JUNE THIRTIETH) IN WHICH SUCH MEMBER HAS ESTAB-
LISHED MEMBERSHIP IN THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM,
SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN ACCORDANCE
WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL WAGES
PROVIDED BY THE EMPLOYER.
The head of the New York state teachers' retirement system shall
promulgate such regulations as may be necessary and appropriate with
respect to the deduction of such contribution from members' wages and
for the maintenance of any special fund or funds with respect to amounts
so contributed.
S 59. Intentionally omitted.
S 60. Section 650 of the retirement and social security law, as
amended by chapter 746 of the laws of 1989, is amended to read as
follows:
S 650. Application. This article shall apply to a member of the New
York city employees' retirement system (i) who holds the position of
bridge and tunnel officer, sergeant or lieutenant with the Triborough
bridge and tunnel authority, and has received or receives an appointment
to at least one such position from a competitive civil service list; or
(ii) who holds the position of assistant bridge and tunnel maintainer,
bridge and tunnel maintainer, senior bridge and tunnel maintainer or
laborer with the Triborough bridge and tunnel authority, PROVIDED,
HOWEVER, THAT THIS ARTICLE SHALL NOT APPLY TO A NEW YORK CITY REVISED
PLAN MEMBER (AS DEFINED IN SUBDIVISION M OF SECTION SIX HUNDRED ONE OF
THIS CHAPTER).
S 61. Paragraphs 1 and 1-a of subdivision b of section 911 of the
retirement and social security law, paragraph 1 as amended by section 5
and paragraph 1-a as added by section 6 of part C of chapter 504 of the
laws of 2009, are amended to read as follows:
1. Subject to the provisions of paragraph one-a of this subdivision,
AND EXCEPT AS PROVIDED IN PARAGRAPH ONE-B OF THIS SUBDIVISION, an eligi-
ble member (i) with a date of membership in a retirement system on or
after July twenty-seventh, nineteen hundred seventy-six and (ii) who has
ten or more years of membership or ten or more years of credited service
with a retirement system under the provisions of article fourteen or
fifteen of this chapter shall not be required to contribute to a retire-
ment system pursuant to section five hundred seventeen or six hundred
thirteen of this chapter as of the cessation date.
1-a. Notwithstanding the provisions of paragraph one of this subdivi-
sion or any other provision of law to the contrary, AND EXCEPT AS
S. 6735 29 A. 9558
PROVIDED IN PARAGRAPH ONE-B OF THIS SUBDIVISION, a member of the New
York city teachers' retirement system or the New York city board of
education retirement system:
(i) who is a twenty-seven year participant in the age fifty-five
retirement program (as defined in paragraph twelve of subdivision a of
section six hundred four-i of this chapter), and
(ii) who becomes subject to the provisions of article fifteen of this
chapter after the effective date of this paragraph, shall contribute to
a retirement system pursuant to section six hundred thirteen of this
chapter until he or she has completed twenty-seven years of credited
service.
S 62. Subdivision b of section 911 of the retirement and social secu-
rity law is amended by adding a new paragraph 1-b to read as follows:
1-B. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO A NEW YORK
CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER (AS DEFINED IN
SUBDIVISION TWENTY-FIVE OF SECTION FIVE HUNDRED ONE OF THIS CHAPTER), AN
INVESTIGATOR REVISED PLAN MEMBER (AS DEFINED IN SUBDIVISION TWENTY-SEVEN
OF SECTION FIVE HUNDRED ONE OF THIS CHAPTER) OR A NEW YORK CITY REVISED
PLAN MEMBER (AS DEFINED IN SUBDIVISION M OF SECTION SIX HUNDRED ONE OF
THIS CHAPTER).
S 63. Section 1000 of the retirement and social security law is
amended by adding a new subdivision 10 to read as follows:
10. ANYTHING TO THE CONTRARY IN SUBDIVISION FOUR OF THIS SECTION
NOTWITHSTANDING, TO OBTAIN SUCH CREDIT, A MEMBER WHO FIRST JOINS A
PUBLIC RETIREMENT SYSTEM OF THE STATE ON OR AFTER APRIL FIRST, TWO THOU-
SAND TWELVE SHALL PAY SUCH RETIREMENT SYSTEM, FOR DEPOSIT IN THE FUND
USED TO ACCUMULATE EMPLOYER CONTRIBUTIONS, A SUM EQUAL TO THE PRODUCT OF
THE NUMBER OF YEARS OF MILITARY SERVICE BEING CLAIMED AND SIX PERCENT OF
SUCH MEMBER'S COMPENSATION EARNED DURING THE TWELVE MONTHS OF CREDITED
SERVICE IMMEDIATELY PRECEDING THE DATE THAT THE MEMBER MADE APPLICATION
FOR CREDIT PURSUANT TO THIS SECTION.
S 64. Section 1202 of the retirement and social security law is
amended by adding a new subdivision c to read as follows:
C. IN NO EVENT SHALL THE VESTED RETIREMENT ALLOWANCE PAYABLE WITHOUT
OPTIONAL MODIFICATION BE LESS THAN THE ACTUARIAL EQUIVALENT OF THE TOTAL
WHICH RESULTS FROM THE MEMBER'S CONTRIBUTIONS ACCUMULATED WITH INTEREST
AT FIVE PERCENT PER ANNUM COMPOUNDED ANNUALLY TO THE DATE OF RETIREMENT.
S 65. Section 1204 of the retirement and social security law, as added
by section 1 of part A of chapter 504 of the laws of 2009, is amended to
read as follows:
S 1204. Member contributions. Members who are subject to the
provisions of this article shall contribute three percent of annual
wages to the retirement system in which they have membership, EXCEPT
THAT BEGINNING APRIL FIRST, TWO THOUSAND THIRTEEN FOR MEMBERS WHO FIRST
BECOME MEMBERS OF THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIRE-
MENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE RATE AT
WHICH EACH SUCH MEMBER SHALL CONTRIBUTE IN ANY CURRENT PLAN YEAR (APRIL
FIRST TO MARCH THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE
WAGES OF SUCH MEMBER IN THE SECOND PLAN YEAR (APRIL FIRST TO MARCH THIR-
TY-FIRST) PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
A. MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR LESS
SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
B. MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
S. 6735 30 A. 9558
C. MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
D. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM BUT
NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE AND
THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
E. MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, DURING EACH OF THE FIRST THREE PLAN
YEARS (APRIL FIRST TO MARCH THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE NEW YORK STATE AND LOCAL POLICE AND FIRE
RETIREMENT SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL
WAGES IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
OF ANNUAL WAGES PROVIDED BY THE EMPLOYER. EFFECTIVE APRIL FIRST, TWO
THOUSAND TWELVE, ALL MEMBERS SUBJECT TO THE PROVISIONS OF THIS ARTICLE
SHALL NOT BE REQUIRED TO MAKE MEMBER CONTRIBUTIONS ON ANNUAL WAGES
EXCLUDED FROM THE CALCULATION OF FINAL AVERAGE SALARY PURSUANT TO
SECTION 1203 OF THIS ARTICLE. NOTHING IN THIS SECTION, HOWEVER, SHALL BE
CONSTRUED OR DEEMED TO ALLOW MEMBERS TO RECEIVE A REFUND OF ANY MEMBER
CONTRIBUTIONS ON SUCH WAGES PAID PRIOR TO APRIL FIRST, TWO THOUSAND
TWELVE.
Members who are enrolled in a retirement plan that limits the amount
of creditable service a member can accrue shall not be required to make
contributions pursuant to this section after accruing the maximum amount
of service credit allowed by the retirement plan in which they are
enrolled. The state comptroller shall promulgate such regulations as may
be necessary and appropriate with respect to the deduction of such
contribution from members' wages and for the maintenance of any special
fund or funds with respect to amounts so contributed. In no way shall
the member contributions made pursuant to this section be used to
provide for pension increases or annuities of any kind.
S 66. Intentionally omitted.
S 67. The retirement and social security law is amended by adding a
new section 1209 to read as follows:
S 1209. FINAL AVERAGE SALARY. FOR MEMBERS WHO FIRST BECOME MEMBERS OF
THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM ON OR
AFTER APRIL FIRST, TWO THOUSAND TWELVE, A MEMBER'S FINAL AVERAGE SALARY
SHALL BE EQUAL TO ONE-FIFTH OF THE HIGHEST TOTAL WAGES EARNED BY SUCH
MEMBER DURING ANY CONTINUOUS PERIOD OF EMPLOYMENT FOR WHICH THE MEMBER
WAS CREDITED WITH FIVE YEARS OF SERVICE CREDIT; PROVIDED, HOWEVER, IF
THE WAGES EARNED DURING ANY YEAR OF CREDITED SERVICE INCLUDED IN THE
PERIOD USED TO DETERMINE FINAL AVERAGE SALARY EXCEEDS THE AVERAGE OF THE
WAGES OF THE PREVIOUS FOUR YEARS OF CREDITED SERVICE BY MORE THAN TEN
PERCENT, THE AMOUNT IN EXCESS OF TEN PERCENT SHALL BE EXCLUDED FROM THE
COMPUTATION OF FINAL AVERAGE SALARY. WAGES IN EXCESS OF THE ANNUAL SALA-
RY PAID TO THE GOVERNOR PURSUANT TO SECTION THREE OF ARTICLE FOUR OF THE
STATE CONSTITUTION SHALL BE EXCLUDED FROM THE COMPUTATION OF FINAL AVER-
AGE SALARY FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW YORK STATE
AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO
THOUSAND TWELVE.
S 68. The retirement and social security law is amended by adding a
new section 1210 to read as follows:
S 1210. WAGES. FOR MEMBERS WHO FIRST BECOME MEMBERS OF THE NEW YORK
STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM ON OR AFTER APRIL
FIRST, TWO THOUSAND TWELVE, THE FOLLOWING ITEMS SHALL NOT BE INCLUDED IN
THE DEFINITION OF WAGES: A. WAGES IN EXCESS OF THE ANNUAL SALARY PAID
S. 6735 31 A. 9558
TO THE GOVERNOR PURSUANT TO SECTION THREE OF ARTICLE FOUR OF THE STATE
CONSTITUTION, B. LUMP SUM PAYMENTS FOR DEFERRED COMPENSATION, SICK
LEAVE, ACCUMULATED VACATION OR OTHER CREDITS FOR TIME NOT WORKED, C. ANY
FORM OF TERMINATION PAY, D. ANY ADDITIONAL COMPENSATION PAID IN ANTIC-
IPATION OF RETIREMENT, AND E. IN THE CASE OF EMPLOYEES WHO RECEIVE WAGES
FROM THREE OR MORE EMPLOYERS IN A TWELVE MONTH PERIOD, THE WAGES PAID BY
THE THIRD AND EACH SUCCESSIVE EMPLOYER.
S 69. Intentionally omitted.
S 70. Intentionally omitted.
S 71. Intentionally omitted.
S 72. Subdivision 2 of section 182 of the education law, as added by
chapter 1076 of the laws of 1968, is amended to read as follows:
2. Employee contributions. In the case of any electing employee,
contributions at the rate of three [percentum] PER CENTUM of his state
salary shall be deducted by the state comptroller as the employee
contribution, provided however, that such employee contribution shall be
made by the state in accordance with subdivision one of this section
during such period as (a) either section seventy-a of the retirement and
social security law or section five hundred twenty-eight of [the educa-
tion law] THIS TITLE provides that the contribution of each member of
the New York state employees' retirement system or the New York state
teachers' retirement system in the employ of the state shall be reduced
by at least eight [percentum] PER CENTUM of his compensation, or (b)
employee contributions to either such system are no longer required by
reason of such system becoming noncontributory for state employees.
NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, BEGINNING APRIL FIRST,
TWO THOUSAND THIRTEEN ANY ELECTING EMPLOYEE APPOINTED ON OR AFTER APRIL
FIRST, TWO THOUSAND TWELVE, THE RATE AT WHICH EACH SUCH EMPLOYEE SHALL
CONTRIBUTE IN ANY CURRENT PLAN YEAR (JANUARY FIRST TO DECEMBER
THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE WAGES OF SUCH
MEMBER IN THE SECOND PLAN YEAR (JANUARY FIRST TO DECEMBER THIRTY-FIRST)
PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
(A) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
(B) MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
(C) MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
(D) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE
AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
(E) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, DURING EACH OF THE FIRST THREE PLAN
YEARS (JANUARY FIRST TO DECEMBER THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE EDUCATION DEPARTMENT OPTIONAL RETIREMENT
PROGRAM, SUCH EMPLOYEE SHALL CONTRIBUTE A PERCENT OF ANNUAL WAGES IN
ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
WAGES PROVIDED BY THE EMPLOYER.
S 72-a. Section 390 of the education law is amended by adding two new
subdivisions 3-a and 8-a to read as follows:
3-A. BEGINNING JULY FIRST, TWO THOUSAND THIRTEEN, THE TERM "ELIGIBLE
EMPLOYEES" SHALL ALSO MEAN ANY PERSON EXCLUDED FROM OR NOT ENCOMPASSED
WITHIN A NEGOTIATING UNIT WITHIN THE MEANING OF ARTICLE FOURTEEN OF THE
S. 6735 32 A. 9558
CIVIL SERVICE LAW WHO WOULD OTHERWISE BE ENTITLED TO RECEIVE A BENEFIT
UNDER THE RETIREMENT AND SOCIAL SECURITY LAW OR THE EDUCATION LAW
INITIALLY HIRED ON OR AFTER JULY FIRST, TWO THOUSAND THIRTEEN WITH ESTI-
MATED ANNUAL WAGES OF SEVENTY-FIVE THOUSAND PER ANNUM OR GREATER. SUCH
ESTIMATE OF ANNUAL WAGES TO DETERMINE ELIGIBILITY FOR THE PURPOSES OF
THIS SUBDIVISION SHALL BE PROVIDED BY THE EMPLOYER. FOR THE PURPOSES OF
THIS SUBDIVISION, A NEWLY HIRED STATE EMPLOYEE WHOSE IMMEDIATE PRECEDING
EMPLOYMENT WAS WITH ANOTHER DEPARTMENT, DIVISION, OR AGENCY OF THE STATE
SHALL NOT BE DEEMED TO BE AN ELIGIBLE EMPLOYEE.
8-A. BEGINNING JULY FIRST, TWO THOUSAND THIRTEEN, THE TERM "ELECTING
EMPLOYER" SHALL ALSO MEAN ANY PUBLIC EMPLOYER WITHIN THE STATE OF NEW
YORK THAT EMPLOYS ONE OR MORE EMPLOYEES WHO HAVE ELECTED TO PARTICIPATE
IN THE OPTIONAL RETIREMENT PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
S 72-b. Section 392 of the education law is amended by adding a new
subdivision 1-a to read as follows:
1-A. EMPLOYER CONTRIBUTIONS. IN THE CASE OF ANY ELECTING EMPLOYEE
EXCLUDED FROM OR NOT ENCOMPASSED WITHIN A NEGOTIATING UNIT WITHIN THE
MEANING OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW INITIALLY HIRED ON
OR AFTER JULY FIRST, TWO THOUSAND THIRTEEN, THE STATE AND THE ELECTING
EMPLOYER SHALL, DURING THE CONTINUANCE OF HIS OR HER EMPLOYMENT, MAKE
CONTRIBUTIONS AT THE RATE OF EIGHT PER CENTUM OF HIS OR HER SALARY.
S 73. Paragraph (c) of subdivision 2 of section 392 of the education
law, as added by chapter 617 of the laws of 2007, is amended and a new
paragraph (d) is added to read as follows:
(c) Notwithstanding any other provision of this section or any other
law to the contrary, (1) on and after April first, two thousand eight
for a member who joined the optional retirement program established
pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
has ten or more years of membership in such optional retirement program,
the state shall contribute one-third of the three percent employee
contribution required pursuant to the provisions of this section on
behalf of such employee; and (2) on and after April first, two thousand
nine for a member who joined the optional retirement program established
pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
has ten or more years of membership in such optional retirement program,
the state shall contribute two-thirds of the three percent employee
contribution required pursuant to the provisions of this section on
behalf of such employee; and (3) on and after April first, two thousand
ten for a member who joined the optional retirement program established
pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
has ten or more years of membership in such optional retirement program,
the state shall contribute the three percent employee contribution
required pursuant to the provisions of this section on behalf of such
employee. THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO ANY
ELECTING EMPLOYEE WHO BECOMES A MEMBER OF THE OPTIONAL RETIREMENT
PROGRAM ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
(D) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, BEGINNING APRIL
FIRST, TWO THOUSAND THIRTEEN ANY ELECTING EMPLOYEE APPOINTED ON OR AFTER
APRIL FIRST, TWO THOUSAND TWELVE, THE RATE AT WHICH EACH SUCH EMPLOYEE
SHALL CONTRIBUTE IN ANY CURRENT PLAN YEAR (JANUARY FIRST TO DECEMBER
THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE WAGES OF SUCH
MEMBER IN THE SECOND PLAN YEAR (JANUARY FIRST TO DECEMBER THIRTY-FIRST)
PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
(I) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
S. 6735 33 A. 9558
(II) MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
(III) MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
AND ONE-HALF PER CENTUM OF ANNUAL WAGES;
(IV) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE
AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
(V) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, DURING EACH OF THE FIRST THREE PLAN
YEARS (JANUARY FIRST TO DECEMBER THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE STATE UNIVERSITY OPTIONAL RETIREMENT
PROGRAM, SUCH EMPLOYEE SHALL CONTRIBUTE A PERCENT OF ANNUAL WAGES IN
ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
WAGES PROVIDED BY THE EMPLOYER.
S 74. Paragraph (c) of subdivision 2 of section 6252 of the education
law, as added by chapter 617 of the laws of 2007, is amended and a new
paragraph (d) is added to read as follows:
(c) Notwithstanding any other provision of this section or any other
law to the contrary, (1) on and after April first, two thousand eight
for a member who joined the optional retirement program established
pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
has ten or more years of membership in such optional retirement program,
the city shall contribute one-third of the three percent employee
contribution required pursuant to the provisions of this section on
behalf of such employee; and (2) on and after April first, two thousand
nine for a member who joined the optional retirement program established
pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
has ten or more years of membership in such optional retirement program,
the city shall contribute two-thirds of the three percent employee
contribution required pursuant to the provisions of this section on
behalf of such employee; and (3) on and after April first, two thousand
ten for a member who joined the optional retirement program established
pursuant to this article BEFORE APRIL FIRST, TWO THOUSAND TWELVE and who
has ten or more years of membership in such optional retirement program,
the city shall contribute the three percent employee contribution
required pursuant to the provisions of this section on behalf of such
employee. THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO ANY ELECT-
ING EMPLOYEE WHO BECOMES A MEMBER OF THE OPTIONAL RETIREMENT PROGRAM ON
OR AFTER APRIL FIRST, TWO THOUSAND TWELVE.
(D) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, BEGINNING APRIL
FIRST, TWO THOUSAND THIRTEEN ANY ELECTING EMPLOYEE APPOINTED ON OR AFTER
APRIL FIRST, TWO THOUSAND TWELVE, THE RATE AT WHICH EACH SUCH EMPLOYEE
SHALL CONTRIBUTE IN ANY CURRENT PLAN YEAR (JANUARY FIRST TO DECEMBER
THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE WAGES OF SUCH
MEMBER IN THE SECOND PLAN YEAR (JANUARY FIRST TO DECEMBER THIRTY-FIRST)
PRECEDING SUCH CURRENT PLAN YEAR AS FOLLOWS:
(1) MEMBERS WITH WAGES OF FORTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
(2) MEMBERS WITH WAGES GREATER THAN FORTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN FIFTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE THREE AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
S. 6735 34 A. 9558
(3) MEMBERS WITH WAGES GREATER THAN FIFTY-FIVE THOUSAND PER ANNUM, BUT
NOT MORE THAN SEVENTY-FIVE THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR AND
ONE-HALF PER CENTUM OF ANNUAL WAGES;
(4) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FIVE
AND THREE-QUARTERS PER CENTUM OF ANNUAL WAGES; AND
(5) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE SIX PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, DURING EACH OF THE FIRST THREE PLAN
YEARS (JANUARY FIRST TO DECEMBER THIRTY-FIRST) IN WHICH SUCH MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE BOARD OF HIGHER EDUCATION OPTIONAL RETIRE-
MENT PROGRAM, SUCH EMPLOYEE SHALL CONTRIBUTE A PERCENT OF ANNUAL WAGES
IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF
ANNUAL WAGES PROVIDED BY THE EMPLOYER.
S 75. Paragraphs (b) and (c) of subdivision 86 of section 13-101 of
the administrative code of the city of New York, as added by chapter 114
of the laws of 1989, are amended to read as follows:
(b) In the case of a uniformed force member who is a member of the
uniformed force of the department of sanitation and is not a TIER III
MEMBER (AS DEFINED IN SUBDIVISION SEVENTY-THREE OF THIS SECTION) OR A
Tier IV member (as defined in subdivision seventy-six of this section),
the term "normal rate of contribution as a uniformed force member" shall
mean the proportion of such member's earnable compensation required to
be deducted from his or her compensation by the applicable provisions of
sections 13-125, 13-154, 13-159 and 13-160 of this chapter as his or her
member contributions, exclusive of any increase in such contributions
pursuant to subdivision d, e, or f of section 13-125 of this chapter, or
any decrease in such contributions on account of any program for
increased-take-home-pay or pursuant to subdivision one of section one
hundred thirty-eight-b of the retirement and social security law (relat-
ing to election to decrease member contributions by contributions due on
account of social security coverage).
(c) In the case of any uniformed force member (1) who is both a member
of the uniformed correction force and a Tier III member, OR (2) WHO IS
BOTH A MEMBER OF THE UNIFORMED FORCE OF THE DEPARTMENT OF SANITATION AND
A TIER III MEMBER, the term "normal rate of contribution as a uniformed
force member" shall mean the percentage of the annual wages of such
member required to be deducted from such member's wages by subdivision a
of section five hundred seventeen of the retirement and social security
law, as his or her member contributions.
S 76. Paragraph (b) of subdivision 87 of section 13-101 of the admin-
istrative code of the city of New York, as added by chapter 114 of the
laws of 1989, is amended to read as follows:
(b) a uniformed force member who is not required to contribute during
such payroll period because he or she is a Tier III member who, having
contributed for thirty years, OR WHO, IN THE CASE OF A NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBER (AS DEFINED IN
SUBDIVISION TWENTY-FIVE OF SECTION FIVE HUNDRED ONE OF THE RETIREMENT
AND SOCIAL SECURITY LAW), HAVING CONTRIBUTED FOR TWENTY-FIVE YEARS, has
discontinued member contributions pursuant to subdivision a of section
five hundred seventeen of the retirement and social security law.
S 77. Paragraph (c) of subdivision 89 of section 13-101 of the admin-
istrative code of the city of New York, as added by chapter 114 of the
laws of 1989, is amended to read as follows:
(c) In the case of any contributing uniformed force member who is both
(1) a member of the uniformed correction force (as defined in subdivi-
S. 6735 35 A. 9558
sion thirty-nine of this section) OR THE UNIFORMED FORCE OF THE DEPART-
MENT OF SANITATION (AS DEFINED IN SUBDIVISION SIXTY-TWO OF THIS SECTION)
and (2) a Tier III member (as defined in subdivision seventy-three of
this section), the term "uniformed force member contributions eligible
for pick up by the employer" shall mean the amount which, in the absence
of a pick up program applicable to such member pursuant to section
13-125.1 of this chapter, would be required to be deducted from the
wages of such member for such payroll period pursuant to subdivision a
of section five hundred seventeen of the retirement and social security
law as his or her required member contributions for such payroll period.
S 78. Paragraph 14 of subdivision e of section 13-638.4 of the admin-
istrative code of the city of New York, as added by chapter 749 of the
laws of 1992, is amended to read as follows:
(14) (I) Subject to the provisions of subdivision f of this section
and the provisions of subdivision c of section six hundred eight of the
RSSL, where those provisions are applicable, and notwithstanding the
provisions of subdivision a of section six hundred eight of the RSSL,
for a tier IV member of NYCERS WHO IS NOT A NEW YORK CITY REVISED PLAN
MEMBER (AS DEFINED IN SUBDIVISION M OF SECTION SIX HUNDRED ONE OF THE
RSSL) or FOR A TIER IV MEMBER OF BERS WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, the term "final average salary", as used in article fifteen
of the RSSL, shall be equal to the greater of:
[(i)] (A) one-third of the highest total wages earned by such member
during any continuous period of employment for which the member was
credited with three years of service credit; provided that if the wages
earned during any year of credited service included in the period used
to determine final average salary exceeds the average of the wages of
the previous two years of credited service by more than ten percent, the
amount in excess of ten percent shall be excluded from the computation
of final average salary; or
[(ii)] (B) the total wages earned during any six consecutive years
from service for which the member received service credit divided by the
amount of such service credit earned during that six-year period,
PROVIDED, HOWEVER, THAT "WAGES", AS USED IN THIS PARAGRAPH, SHALL MEAN
THE APPLICABLE PROVISIONS AND LIMITATIONS OF THE TERM "WAGES", AS
DEFINED IN SUBDIVISION 1 OF SECTION SIX HUNDRED ONE OF THE RSSL.
(II) SUBJECT TO THE PROVISIONS OF SUBDIVISION F OF THIS SECTION WHERE
THOSE PROVISIONS ARE APPLICABLE, AND NOTWITHSTANDING THE PROVISIONS OF
SUBDIVISIONS A AND C OF SECTION SIX HUNDRED EIGHT OF THE RSSL, FOR A
TIER IV MEMBER OF NYCERS WHO IS A NEW YORK CITY REVISED PLAN MEMBER (AS
DEFINED IN SUBDIVISION M OF SECTION SIX HUNDRED ONE OF THE RSSL) OR A
TIER IV MEMBER OF BERS WHO IS A NEW YORK CITY REVISED PLAN MEMBER, THE
TERM "FINAL AVERAGE SALARY", AS USED IN ARTICLE FIFTEEN OF THE RSSL,
SHALL BE EQUAL TO ONE-FIFTH OF THE HIGHEST TOTAL WAGES EARNED BY SUCH
MEMBER DURING ANY CONTINUOUS PERIOD OF EMPLOYMENT FOR WHICH THE MEMBER
WAS CREDITED WITH FIVE YEARS OF SERVICE CREDIT; PROVIDED THAT IF THE
WAGES EARNED DURING ANY YEAR OF CREDITED SERVICE INCLUDED IN THE PERIOD
USED TO DETERMINE FINAL AVERAGE SALARY EXCEEDS THE AVERAGE OF THE WAGES
OF THE PREVIOUS FOUR YEARS OF CREDITED SERVICE BY MORE THAN TEN PERCENT,
THE AMOUNT IN EXCESS OF TEN PERCENT SHALL BE EXCLUDED FROM THE COMPUTA-
TION OF FINAL AVERAGE SALARY, PROVIDED FURTHER THAT "WAGES", AS USED IN
THIS PARAGRAPH, SHALL MEAN THE APPLICABLE PROVISIONS AND LIMITATIONS OF
THE TERM "WAGES", AS DEFINED IN SUBDIVISION L OF SECTION SIX HUNDRED ONE
OF THE RSSL.
S 78-a. Section 63-c of the executive law is amended by adding a new
subdivision 5 to read as follows:
S. 6735 36 A. 9558
5. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, INCLUDING WITHOUT
LIMITATION; SECTION SIXTY-FOUR OF THIS ARTICLE; THE EDUCATION LAW; THE
RETIREMENT AND SOCIAL SECURITY LAW AND THE ADMINISTRATIVE CODE OF THE
CITY OF NEW YORK, THE PORTION OF ALL MONEY RECEIVED BY THE ATTORNEY
GENERAL IN CONNECTION WITH THE SETTLEMENT OF AN ACTION ARISING OUT OF
THE MANAGEMENT, OPERATION, INVESTMENTS OF OR OTHERWISE IN CONNECTION
WITH A RETIREMENT OR OTHER FUND ESTABLISHED PURSUANT TO THE EDUCATION
LAW, THE RETIREMENT AND SOCIAL SECURITY LAW OR THE ADMINISTRATIVE CODE
OF THE CITY OF NEW YORK ATTRIBUTABLE TO THE HARM SUFFERED BY SUCH FUND
SHALL BE DEPOSITED INTO SUCH FUND.
S 79. Nothing contained in sections seventy-five, seventy-six and
seventy-seven of this act shall be construed to create any contractual
right with respect to members to whom such sections apply. The
provisions of such sections are intended to afford members the advan-
tages of certain benefits contained in the internal revenue code, and
the effectiveness and existence of such sections and benefits they
confer are completely contingent thereon.
S 80. Notwithstanding any provision of law to the contrary, nothing in
this act shall limit the rights accruing to employees pursuant to a
collective bargaining agreement for the unexpired term of such agreement
or the eligibility of any member of an employee organization to join a
special retirement plan open to him or her pursuant to a collectively
negotiated agreement with any state or local government employer, where
such agreement is in effect on the effective date of this act and so
long as such agreement remains in effect thereafter; provided, however,
that any such eligibility shall not apply upon termination of such
agreement for employees otherwise subject to the provisions of article
22 of the retirement and social security law, provided further that this
section shall not be construed as authorizing any member who first joins
a public retirement system of the state (as defined in subdivision 23 of
section 501 of the retirement and social security law) on or after April
1, 2012 to become a participant in any of the special plans established
by section 504-a, 504-b, 504-d, 604-a, 604-c (as added by chapter 96 of
the laws of 1995), 604-d or 604-i of the retirement and social security
law or section 13-157.1 or 13-157.4 of the administrative code of the
city of New York.
S 81. No enhancement, increase or other alteration or change in the
benefit structure provided herein shall be authorized.
S 81-a. The retirement and social security law is amended by adding a
new section 25 to read as follows:
S 25. APPROPRIATIONS IN RETIREMENT BILLS. THE STATE SHALL MAKE A
PAYMENT TO THE RETIREMENT SYSTEM IN AN AMOUNT EQUAL TO THE VALUE OF THE
BENEFITS ASSOCIATED WITH PRIOR SERVICE UPON THE ENACTMENT OF A BILL
WHICH ENACTS OR AMENDS ANY PROVISION OF LAW RELATING TO A RETIREMENT
SYSTEM OR PLAN OF THE STATE OF NEW YORK OR OF ANY OF ITS POLITICAL
SUBDIVISIONS. THE STATE MAY AMORTIZE SUCH PAYMENT OVER A FIVE YEAR PERI-
OD AT A RATE OF INTEREST TO BE DETERMINED BY THE RETIREMENT SYSTEM. SUCH
BILL SHALL CONTAIN AN ITEMIZED APPROPRIATION FROM THE STATE'S GENERAL
FUND BEGINNING FOR THE FISCAL YEAR IN WHICH SUCH AMENDMENT BECOMES
EFFECTIVE AND WHICH SHALL NOT BE USED FOR ANY OTHER PURPOSE, SUFFICIENT
TO DISBURSE A MINIMUM OF THE FIRST OF FIVE SUCH AMORTIZATION PAYMENTS
PLUS THE PRESENT VALUE OF THE BENEFITS PROVIDED TO EMPLOYEES OF THE
STATE OR ITS POLITICAL SUBDIVISIONS BY THE BILL FOR THE CURRENT FISCAL
YEAR. THE STATE SHALL CONTINUE TO PAY FOR THE COST OF THE BENEFITS AS
PROVIDED BY THE BILL TO THE STATE AND ITS POLITICAL SUBDIVISIONS ON AN
ONGOING BASIS. SUCH APPROPRIATION FROM THE STATE'S GENERAL FUND SHALL
S. 6735 37 A. 9558
ONLY BE REQUIRED WHEN A BILL IS ENACTED ON A STATEWIDE BASIS. IN ADDI-
TION, SUCH APPROPRIATION FROM THE STATE'S GENERAL FUND SHALL NOT BE
REQUIRED WHEN THE BENEFITS PROVIDED BY A PARTICULAR BILL MUST BE ELECTED
BY A PARTICIPATING EMPLOYER, LOCAL GOVERNMENT, OR SCHOOL DISTRICT.
S 81-b. The retirement and social security law is amended by adding
three new articles 23, 24, and 25 to read as follows:
ARTICLE 23
BENEFIT ENHANCEMENTS
SECTION 1300. DEFINITIONS.
1301. ELECTION OF BENEFIT ENHANCEMENTS.
1302. BENEFIT ENHANCEMENTS.
1303. ADDITIONAL MEMBER CONTRIBUTIONS.
1304. ELECTION NOT COLLECTIVELY BARGAINED.
S 1300. DEFINITIONS. THE FOLLOWING WORDS AND PHRASES AS USED IN THIS
ARTICLE SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING IS
PLAINLY REQUIRED BY THE CONTEXT:
A. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL EMPLOY-
EES' RETIREMENT SYSTEM AND THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM.
B. "ELIGIBLE EMPLOYEE", SUBJECT TO THE LIMITATIONS OF SECTION THIRTEEN
HUNDRED TWO OF THIS ARTICLE, SHALL MEAN A STATE EMPLOYEE THAT BECOMES A
MEMBER OF A RETIREMENT SYSTEM WHO FIRST BECAME A MEMBER OF SUCH SYSTEM
ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE WHO IS IDENTIFIED AS ELIGI-
BLE TO RECEIVE THE BENEFIT ENHANCEMENTS PROVIDED FOR IN THIS ARTICLE
UPON ELECTION BY THE STATE OF NEW YORK PURSUANT TO SECTION THIRTEEN
HUNDRED ONE OF THIS ARTICLE.
S 1301. ELECTION OF BENEFIT ENHANCEMENTS. A. THE STATE OF NEW YORK MAY
ELECT TO PROVIDE ITS EMPLOYEES THE BENEFIT ENHANCEMENTS PROVIDED FOR IN
SECTION THIRTEEN HUNDRED TWO OF THIS ARTICLE.
B. A SEPARATE ELECTION TO PROVIDE BENEFIT ENHANCEMENTS PURSUANT TO
SUBDIVISION A OF THIS SECTION MUST BE MADE FOR EACH SPECIFIC COLLECTIVE
BARGAINING ORGANIZATION, RECOGNIZED OR CERTIFIED PURSUANT TO ARTICLE
FOURTEEN OF THE CIVIL SERVICE LAW.
C. SUCH ELECTION IS MADE BY THE GOVERNOR TO THE RETIREMENT SYSTEM UPON
RECEIPT OF A REQUEST FROM THE COLLECTIVE BARGAINING ORGANIZATION, RECOG-
NIZED OR CERTIFIED PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW
TO REPRESENT SUCH ELIGIBLE EMPLOYEES. NO SUCH PETITION SHALL BE
REQUIRED FOR EMPLOYEES WHO ARE NOT REPRESENTED FOR THE PURPOSES OF
COLLECTIVE BARGAINING SUBJECT TO THE LIMITATION PROVIDED IN SECTION NINE
HUNDRED TWO OF THIS CHAPTER.
S 1302. BENEFIT ENHANCEMENTS. NOTWITHSTANDING ANY OTHER LAW TO THE
CONTRARY, ELIGIBLE EMPLOYEES SHALL BE PERMITTED TO RETIRE, WITHOUT
PENALTY, UPON REACHING AGE FIFTY-SEVEN AND COMPLETING AT LEAST THIRTY
YEARS OF CREDITED SERVICE. EMPLOYEES RETIRING PURSUANT TO THIS SECTION
SHALL RECEIVE A PENSION ALLOWANCE EQUAL TO THE SUM OF THIRTY-FIVE PER
CENTUM AND ONE-FIFTIETH OF FINAL AVERAGE SALARY FOR EACH YEAR OF SERVICE
IN EXCESS OF TWENTY TIMES FINAL AVERAGE SALARY TIMES YEARS OF CREDITED
SERVICE.
S 1303. ADDITIONAL MEMBER CONTRIBUTIONS. UPON ELECTION BY THE STATE OF
NEW YORK, THE RETIREMENT SYSTEM SHALL REQUIRE ADDITIONAL MEMBER CONTRIB-
UTIONS TO BE PAID BY ALL ELIGIBLE EMPLOYEES. THE ADDITIONAL MEMBER
CONTRIBUTIONS TO BE PAID BY ELIGIBLE EMPLOYEES SHALL BE OF A LEVEL SO
THAT NO ADDITIONAL CONTRIBUTIONS SHALL BE PAID BY THE STATE TO COVER THE
COST OF SUCH ADDITIONAL BENEFITS. ADDITIONAL MEMBER CONTRIBUTIONS MADE
PURSUANT TO THIS SECTION SHALL BE IN ADDITION TO MEMBER CONTRIBUTIONS
MADE PURSUANT TO OTHER PROVISIONS OF THIS CHAPTER.
S. 6735 38 A. 9558
S 1304. ELECTION NOT COLLECTIVELY BARGAINED. THE DETERMINATION TO
MAKE AN ELECTION IN ACCORDANCE WITH THIS ARTICLE SHALL NOT BE DEEMED TO
BE, OR TO RELATE TO OR AFFECT, A TERM AND CONDITION OF EMPLOYMENT WITHIN
THE MEANING OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW OR ANY LOCAL
LAW ENACTED IN FURTHERANCE THEREOF.
ARTICLE 24
BENEFIT ENHANCEMENTS
SECTION 1310. DEFINITIONS.
1311. ELECTION OF BENEFIT ENHANCEMENTS.
1312. BENEFIT ENHANCEMENTS.
1313. ADDITIONAL MEMBER CONTRIBUTIONS.
1314. ELECTION NOT COLLECTIVELY BARGAINED.
S 1310. DEFINITIONS. THE FOLLOWING WORDS AND PHRASES AS USED IN THIS
ARTICLE SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING IS
PLAINLY REQUIRED BY THE CONTEXT:
A. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL EMPLOY-
EES' RETIREMENT SYSTEM AND THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM.
B. "ELIGIBLE EMPLOYEE", SUBJECT TO THE LIMITATIONS OF SECTION THIRTEEN
HUNDRED TWELVE OF THIS ARTICLE, SHALL MEAN A MEMBER OF A RETIREMENT
SYSTEM WHO FIRST BECAME A MEMBER OF SUCH SYSTEM ON OR AFTER APRIL FIRST,
TWO THOUSAND TWELVE WHO IS IDENTIFIED AS ELIGIBLE TO RECEIVE THE BENEFIT
ENHANCEMENTS PROVIDED FOR IN THIS ARTICLE UPON ELECTION BY THE STATE OF
NEW YORK PURSUANT TO SECTION THIRTEEN HUNDRED ELEVEN OF THIS ARTICLE.
S 1311. ELECTION OF BENEFIT ENHANCEMENTS. A. THE STATE OF NEW YORK MAY
ELECT TO PROVIDE EMPLOYEES WHO HOLD A POSITION REPRESENTED BY THE RECOG-
NIZED COLLECTIVE BARGAINING UNITS AFFILIATED WITH THE NEW YORK STATE
UNITED TEACHERS EMPLOYEE ORGANIZATION AS CERTIFIED BY HIS OR HER EMPLOY-
ER THE BENEFIT ENHANCEMENTS PROVIDED FOR IN SECTION THIRTEEN HUNDRED
TWELVE OF THIS ARTICLE.
B. SUCH ELECTION IS MADE BY THE GOVERNOR TO THE RETIREMENT SYSTEM UPON
RECEIPT OF A REQUEST BY THE NEW YORK STATE UNITED TEACHERS EMPLOYEE
ORGANIZATION.
S 1312. BENEFIT ENHANCEMENTS. NOTWITHSTANDING ANY OTHER LAW TO THE
CONTRARY, ELIGIBLE EMPLOYEES SHALL BE PERMITTED TO RETIRE, WITHOUT
PENALTY, UPON REACHING AGE FIFTY-SEVEN AND COMPLETING AT LEAST THIRTY
YEARS OF CREDITED SERVICE. EMPLOYEES RETIRING PURSUANT TO THIS SECTION
SHALL RECEIVE A PENSION ALLOWANCE EQUAL TO THE SUM OF THIRTY-FIVE PER
CENTUM AND ONE-FIFTIETH OF FINAL AVERAGE SALARY FOR EACH YEAR OF SERVICE
IN EXCESS OF TWENTY TIMES FINAL AVERAGE SALARY TIMES YEARS OF CREDITED
SERVICE.
S 1313. ADDITIONAL MEMBER CONTRIBUTIONS. UPON ELECTION BY THE STATE OF
NEW YORK, THE RETIREMENT SYSTEM SHALL REQUIRE ADDITIONAL MEMBER CONTRIB-
UTIONS TO BE PAID BY ALL ELIGIBLE EMPLOYEES. THE ADDITIONAL MEMBER
CONTRIBUTIONS TO BE PAID BY ELIGIBLE EMPLOYEES SHALL BE OF A LEVEL SO
THAT NO ADDITIONAL CONTRIBUTIONS SHALL BE PAID BY THE STATE OR PARTIC-
IPATING EMPLOYERS IN THE RETIREMENT SYSTEM TO COVER THE COST OF SUCH
ADDITIONAL BENEFITS. ADDITIONAL MEMBER CONTRIBUTIONS MADE PURSUANT TO
THIS SECTION SHALL BE IN ADDITION TO MEMBER CONTRIBUTIONS MADE PURSUANT
TO OTHER PROVISIONS OF THIS CHAPTER.
S 1314. ELECTION NOT COLLECTIVELY BARGAINED. THE DETERMINATION TO
MAKE AN ELECTION IN ACCORDANCE WITH THIS ARTICLE SHALL NOT BE DEEMED TO
BE, OR TO RELATE TO OR AFFECT, A TERM AND CONDITION OF EMPLOYMENT WITHIN
THE MEANING OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW OR ANY LOCAL
LAW ENACTED IN FURTHERANCE THEREOF.
S. 6735 39 A. 9558
ARTICLE 25
BENEFIT ENHANCEMENTS
SECTION 1320. DEFINITIONS.
1321. ELECTION OF BENEFIT ENHANCEMENTS.
1322. BENEFIT ENHANCEMENTS.
1323. ADDITIONAL MEMBER CONTRIBUTIONS.
1324. ELECTION NOT COLLECTIVELY BARGAINED.
S 1320. DEFINITIONS. THE FOLLOWING WORDS AND PHRASES AS USED IN THIS
ARTICLE SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT MEANING IS
PLAINLY REQUIRED BY THE CONTEXT:
A. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK CITY EMPLOYEES' RETIRE-
MENT SYSTEM, THE NEW YORK CITY TEACHERS' RETIREMENT SYSTEM, AND THE NEW
YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM.
B. "ELIGIBLE EMPLOYEE", SUBJECT TO THE LIMITATIONS OF SECTION THIRTEEN
HUNDRED TWENTY-TWO OF THIS ARTICLE, SHALL MEAN A MEMBER OF A RETIREMENT
SYSTEM WHO FIRST BECAME A MEMBER OF SUCH SYSTEM ON OR AFTER APRIL FIRST,
TWO THOUSAND TWELVE WHO IS IDENTIFIED AS ELIGIBLE TO RECEIVE THE BENEFIT
ENHANCEMENTS PROVIDED FOR IN THIS ARTICLE UPON ELECTION BY THE CITY OF
NEW YORK PURSUANT TO SECTION THIRTEEN HUNDRED TWENTY-ONE OF THIS ARTI-
CLE.
S 1321. ELECTION OF BENEFIT ENHANCEMENTS. A. THE CITY OF NEW YORK MAY
ELECT TO PROVIDE ITS EMPLOYEES THE BENEFIT ENHANCEMENTS PROVIDED FOR IN
SECTION THIRTEEN HUNDRED TWENTY-TWO OF THIS ARTICLE.
B. A SEPARATE ELECTION TO PROVIDE BENEFIT ENHANCEMENTS PURSUANT TO
SUBDIVISION A OF THIS SECTION MUST BE MADE FOR EACH SPECIFIC COLLECTIVE
BARGAINING ORGANIZATION, RECOGNIZED OR CERTIFIED PURSUANT TO ARTICLE
FOURTEEN OF THE CIVIL SERVICE LAW.
C. SUCH ELECTION MAY BE MADE AT THE SOLE DISCRETION OF THE MAYOR OF
THE CITY OF NEW YORK TO THE RETIREMENT SYSTEMS UPON RECEIPT OF A REQUEST
FROM THE COLLECTIVE BARGAINING ORGANIZATION, RECOGNIZED OR CERTIFIED
PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW TO REPRESENT SUCH
ELIGIBLE EMPLOYEES. NO SUCH PETITION SHALL BE REQUIRED FOR EMPLOYEES WHO
ARE NOT REPRESENTED FOR THE PURPOSES OF COLLECTIVE BARGAINING SUBJECT TO
THE LIMITATION PROVIDED IN SECTION NINE HUNDRED TWO OF THIS CHAPTER.
S 1322. BENEFIT ENHANCEMENTS. NOTWITHSTANDING ANY OTHER LAW TO THE
CONTRARY, ELIGIBLE EMPLOYEES SHALL BE ELIGIBLE TO RECEIVE BENEFITS SPEC-
IFIED BY THE MAYOR OF THE CITY OF NEW YORK, PROVIDED THAT THE PETITION
PROVIDED PURSUANT TO SUBDIVISION C OF SECTION THIRTEEN HUNDRED
TWENTY-ONE OF THIS ARTICLE REQUESTED THE ELECTION OF SUCH BENEFITS.
S 1323. ADDITIONAL MEMBER CONTRIBUTIONS. UPON ELECTION BY THE CITY OF
NEW YORK, THE RETIREMENT SYSTEM SHALL REQUIRE ADDITIONAL MEMBER CONTRIB-
UTIONS TO BE PAID BY ALL ELIGIBLE EMPLOYEES. THE ADDITIONAL MEMBER
CONTRIBUTIONS TO BE PAID BY ELIGIBLE EMPLOYEES SHALL BE OF A LEVEL SO
THAT NO ADDITIONAL CONTRIBUTIONS SHALL BE PAID BY THE CITY OF NEW YORK
TO COVER THE COST OF SUCH ADDITIONAL BENEFITS. ADDITIONAL MEMBER
CONTRIBUTIONS MADE PURSUANT TO THIS SECTION SHALL BE IN ADDITION TO
MEMBER CONTRIBUTIONS PAID PURSUANT TO OTHER PROVISIONS OF THIS CHAPTER.
S 1324. ELECTION NOT COLLECTIVELY BARGAINED. THE DETERMINATION TO
MAKE AN ELECTION IN ACCORDANCE WITH THIS ARTICLE SHALL NOT BE DEEMED TO
BE, OR TO RELATE TO OR AFFECT, A TERM AND CONDITION OF EMPLOYMENT WITHIN
THE MEANING OF ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW OR ANY LOCAL
LAW ENACTED IN FURTHERANCE THEREOF.
S 82. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
S. 6735 40 A. 9558
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 83. This act shall take effect April 1, 2012, provided that the
amendments to subdivision a of section 603 of the retirement and social
security law made by section thirty-one of this act shall be subject to
the expiration and reversion of such subdivision pursuant to section 13
of chapter 682 of the laws of 2003, as amended, provided, further that
the amendments to subdivisions 86, 87 and 89 of section 13-101 of the
administrative code of the city of New York made by sections seventy-
five, seventy-six and seventy-seven of this act shall not affect the
expiration of such subdivisions and shall be deemed to expire therewith.
FISCAL NOTE.--Pursuant to Section 50 of the Legislative Law, the
fiscal note that must be appended in its entirety to this bill is:
This bill would amend various sections of the Education Law, the
Retirement and Social Security Law, and the Administrative Code of the
City of New York to implement a new retirement benefit structure for
members who first join a public retirement system of the state or New
York City on or after April 1, 2012. The following provisions are with
respect to members of the New York State Teachers' Retirement System.
Members would be eligible for an unreduced retirement benefit upon
attainment of age 63. Benefits would be vested after ten years of cred-
ited service. Members would be permitted to receive a reduced retirement
benefit as early as age 55 with a reduction of 6.5% per year for each
year that commencement precedes age 63. The retirement benefit formula
for members whose years of service are less than 20 would be equal to
one-sixtieth of final average salary times years of service. The
retirement benefit formula for those members whose years of service is
20 or more would be equal to 1.75% times years of service up to 20, and
2.0% times years of service in excess of 20. Final average salary would
be determined as the average of the highest five consecutive years of
salary. Salary in excess of ten percent over the average of the four
previous years would not be included in the final average salary.
Members would be required to contribute between three and six percent of
annual salary each year based upon their earnings in the second plan
year preceding the current year in accordance with the schedule below:
WAGES EARNED MEMBER CONTRIBUTION RATE
$45,000 or less 3.00%
Greater than $45,000 but not greater than $55,000 3.50%
Greater than $55,000 but not greater than $75,000 4.50%
Greater than $75,000 but not greater than $100,000 5.75%
Greater than $100,000 6.00%
Wages in excess of the annual salary paid to the Governor pursuant to
the state constitution are not includable. Additionally in the case of
members who work for multiple employers, only salary received from two
employers is includable.
In Article 23-a of the bill, if NYSUT petitions the Governor to add
the provisions of this section, and the Governor so elects, then a 57/30
benefit enhancement is added in which eligible members may retire with
an unreduced benefit upon reaching age 57 provided they have completed
at least 30 years of credited service. Upon election of this section,
NYSTRS shall determine the cost of this provision, and the member
contribution rate shall be increased by this amount, such that there is
no additional cost to employers due to the provisions of this section.
S. 6735 41 A. 9558
The current required employer contribution rate for the New York State
Teachers' Retirement System is 11.11% of pay, applicable to 7/1/11 -
6/30/12 member salaries and to be collected in the fall of 2012. This
rate is estimated to increase to 11.84% for the 7/1/12 - 6/30/13 fiscal
year. This rate is applicable to the salaries of all members, regardless
of tier. In that this proposed benefit structure is only applicable to
members joining on or after April 1, 2012, it will be several years
before it has a noticeable impact on the employer contribution rate. The
cost savings impact of this change will become more significant with
time as the number of post-4/1/12 members grows as a percentage of the
total membership.
Our "new entrant rate", a hypothetical employer contribution rate that
would occur if we started a new Retirement System without any assets, is
equal to 10.9% of pay under the Tier 4 benefit structure and 7.9% of pay
under the Tier 5 benefit structure, in accordance with the actuarial
assumptions adopted by the Retirement Board on October 27, 2011. This
can be thought of as the long-term expected cost of the benefit struc-
ture, based on current actuarial assumptions. For the proposed new bene-
fit structure as described above, this new entrant rate would be equal
to 4.6% of pay.
With respect to the breakdown of the total plan cost into employer and
employee portions, the long-term expected total cost of the benefit
structure for Tier 4 breaks down approximately as 89/11
employer/employee, for Tier 5 the split is 69/31 employer/employee, and
for the Tier 6 benefit structure proposed here the split would be 49/51
employer/employee, based on current actuarial assumptions. Of course the
employee contribution rate is fixed, while the employer contribution
rate is variable as employers are responsible for overall funding and
assume all risks and benefits associated with investment performance and
demographic experience. The actual employer cost in a given year could
be higher or lower than the cost projected above depending on how actual
investment returns and demographic experience differ from what is
projected.
The source of this estimate is Fiscal Note 2012-23 dated March 14,
2012 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2012 Legislative Session.
I, Richard A. Young, am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
FISCAL NOTE.--This bill would require new members who first join
public retirement systems in New York State on or after April 1, 2012 to
become covered under the provisions of a new defined benefit plan. New
non-unionized members who first join public retirement systems in New
York State on or after July 1, 2013 would have the option of joining an
existing defined contribution plan.
Insofar as this bill would affect the New York State and Local Employ-
ees Retirement System (ERS), the significant design changes to the
current defined benefit plan include:
1. Beginning April 1, 2013, employee contributions of X% of pay for
all years of service, (except members enrolled in a plan that limits the
amount of creditable service that may be accrued would not be required
to contribute after accruing the maximum amount of creditable service
under such plan), where the X% applies for a fiscal year and is deter-
mined as follows:
Annual Pensionable salary X%
S. 6735 42 A. 9558
as of 3/31/two fiscal years prior
up to $45,000.00 3.00%
$45,000.01 to $55,000.00 3.50%
$55,000.01 to $75,000.00 4.50%
$75,000.01 to $100,000.00 5.75%
$100,000.01 or more 6.00%
2. The service retirement benefit would be one-sixtieth (1.67%) of FAS
for less than 20 years of creditable service, OR, when creditable
service is 20 years or more, 35% plus one-fiftieth (2.00%) of FAS for
service credit in excess of 20 years,
3. Members in regular plans (where retirement eligibility requires the
attainment of a certain age as well as the accumulation of a certain
amount of service credit) must attain age 63 before they may receive an
unreduced service retirement benefit. Retirement with reductions can
commence at age 55 with the application of an early age reduction factor
at a rate of 6.5% per year.
4. Final average salary (FAS) would be based on a 5 year average, with
no year's salary permitted to exceed 10% of the average of the previous
4 year's salary,
5. Reportable salary (for a fiscal year) may not exceed the salary of
the Governor of the state of New York, which currently is set in law to
be $179,000 (the reportable salary would change when the Governor's
salary does) and pensionable salary applies on salary from no more than
two employers per fiscal year,
6. Lump sum vacation pay, any form of termination pay and additional
compensation paid in anticipation of retirement would no longer be
included in a member's final average salary,
7. Service credit for unused sick leave time is capped at 100 days,
8. An early age retirement starting at age 57 for those with 30 or
more years of creditable service is potentially provided to petitioning
bargaining units subject to approval by the Governor of the state of New
York with the enhanced benefit paid for by an additional employee
contribution yet to be determined.
If this bill is enacted, NYSLRS would calculate new plan rates for all
ERS members who first enter on or after April 1, 2012. The long term
expected annual employer normal contribution rate for new general
members would be approximately 5.7% of payroll. The long term expected
annual employer total contribution rate for new general members
(includes Group Term Life Insurance and the administrative rate) would
be approximately 6.4% of payroll.
For fiscal year 2013, the total contribution rate for new general
members (includes Group Term Life Insurance and the administrative rate)
would be approximately 10.0% of payroll. The FY 2013 contributions
assume that the new tier will be added to the existing ERS plan, and
does not become its own, independent plan.
For ERS members in retirement plans that allow retirement without
regard to age, the long term expected and FY 2013 contributions would
vary by plan with a representative set of the larger plans given in the
table below (with the general plan for tiers 5 and 6 included for refer-
ence):
Plan Long Term Expected FY 2013
Total Contribution Contribution
Tier 5 General 9.4% 14.9%
Tier 6 General 6.4% 10.0%
Tier 5 Non-State COs 10.6% 17.5%
Tier 6 Non-State COs 7.2% 11.5%
S. 6735 43 A. 9558
Tier 5 State COs 12.1% 19.8%
Tier 6 State COs 8.8% 14.2%
Tier 5 Sheriffs (553) 16.2% 26.5%
Tier 6 Sheriffs (553) 12.9% 20.9%
Insofar as this bill would affect the New York State and Local Police
and Fire Retirement System (PFRS), the significant design changes to the
defined benefit plan include:
1. Beginning April 1, 2013, employee contributions of X% of pay for
all years of service, (except members enrolled in a plan that limits the
amount of creditable service that may be accrued would not be required
to contribute after accruing the maximum amount of creditable service
under such plan), where the X% applies for a fiscal year and is deter-
mined as follows:
Annual Pensionable salary X%
as of 3/31/two fiscal years prior
up to $45,000.00 3.00%
$45,000.01 to $55,000.00 3.50%
$55,000.01 to $75,000.00 4.50%
$75,000.01 to $100,000.00 5.75%
$100,000.01 or more 6.00%
2. Final average salary (FAS) would be based on a 5 year average, with
no year's salary permitted to exceed 10% of the average of the previous
4 year's salary,
3. Reportable salary (for a fiscal year) may not exceed the salary of
the Governor of the state of New York, which currently is set in law to
be $179,000 (the reportable salary would change when the Governor's
salary does) and pensionable salary applies on salary from no more than
two employers per fiscal year,
4. Any form of termination pay and additional compensation paid in
anticipation of retirement would no longer be included in a member's
final average salary,
5. Members in regular plans (where retirement eligibility requires the
attainment of a certain age as well as the accumulation of a certain
amount of service credit) must attain age 63 before they may receive a
service retirement benefit,
6. Service credit for unused sick leave time is capped at 100 days, If
this bill is enacted, NYSLRS would calculate new plan rates for all PFRS
members who first enter on or after April 1, 2012. For PFRS members in
retirement plans that allow retirement without regard to age, the long
term expected and FY 2013 contributions would vary by plan with a repre-
sentative set of the larger plans given in the table below. The FY 2013
contributions assume that the new tier will be added to the existing
PFRS plan, and does not become its own, independent plan.
Plan Long Term Expected FY 2013
Total Contribution Contribution
Tier 5 384D 14.8% 20.1%
Tier 6 384D 10.5% 14.1%
Tier 5 384E 15.1% 20.5%
Tier 6 384E 10.8% 14.5%
T5 State Police 16.2% 22.1%
T6 State Police 11.1% 15.0%
There would also be additional administrative expenses to inform
employers and new members of the new plan provisions and to modify auto-
mated systems. Employee contributions would now be a function of base
salary instead of one fixed rate. To implement these employee contrib-
ution rate changes the modification of NYSLRS automated systems would be
S. 6735 44 A. 9558
substantial with an associated implementation expense estimated at $3 to
5 million. The more complicated system would be more challenging to
maintain, apply, and explain, resulting in estimated annual ongoing
expenses in the millions of dollars. The state and each of the approxi-
mately 3,000 participating employers would have to modify their methods
for withholding employee contributions, which could also lead to total
expenses in the millions of dollars. Lastly, the bill contains no appro-
priation to support the additional payroll administrative expense to the
Office of the State Comptroller or the implementation and ongoing
expenses of NYSLRS related to the new tier.
This bill would provide new members who first join public retirement
systems in New York State on or after July 1, 2013 the option to become
covered under an existing defined contribution plan in lieu of the
defined benefit plan.
There would be additional NYSLRS administrative expenses to inform
employers and new members of the option. These expenses are expected to
be small.
Summary of relevant resources:
Data: March 31, 2011 Actuarial Year End File with distributions of
membership and other statistics displayed in the 2011 Report of the
Actuary and 2011 Comprehensive Annual Financial Report.
Assumptions and Methods: 2010 and 2011 Annual Report to the Comp-
troller on Actuarial Assumptions, Codes Rules and Regulations of the
State of New York: Audit and Control.
Market Assets and GASB Disclosures: March 31, 2011 New York State and
Local Retirement System Financial Statements and Supplementary Informa-
tion.
Valuations of Benefit Liabilities and Actuarial Assets: summarized in
the 2011 Actuarial Valuations report.
I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
This estimate, dated March 14, 2012, and intended for use only during
the 2012 Legislative Session, is Fiscal Note No. 2012-117, prepared by
the Actuary for the ERS and PFRS.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would require new members who first join any of the five New
York City pension systems on or after April 1, 2012 to become covered
under the provisions of a new defined benefit plan, Tier 6. The signif-
icant design elements of the plan are:
For non-uniformed employees:
1. Retirement age 63.
2. Benefit formula:
- 1.75% for each year of service up to 20 years
- 2.0% for each year of service from 20 years to 30 years
- 2.0% for each year of service beyond 30 years
3. Employee Contributions:
Employee Salaries Contribution %
Less than $45,000 3%
$45,000-55,000 3.5%
$55,000-75,000 4.5%
$75,000-100,000 5.75%
$100,000+ 6%
4. Vesting after 10 years of service
5. Final Average Salary (FAS) computed on a 5-year average with a 4
year look-back for years in excess of 10% above the preceding years.
6. Cap maximum pensionable earnings at the Governor's salary.
S. 6735 45 A. 9558
7. An early retirement option for employees under 63 years of age
which allows them to retire as young as age 55 with a 6.5% reduction in
the benefit per year for each year below age 63.
For employees who are members of the uniformed forces:
All employees covered by these provisions would receive benefits as
described under the section of the law that sets out the Tier 3
provisions. Additionally, the Final Average Salary (FAS) is computed on
a 5-year average with a 4 year look-back for years in excess of 10%
above the preceding years.
The impact of this legislation on City's Fiscal Year 2015 would be a
savings of approximately $49 million. The total impact on the City's
budget over the next 30 years would be a savings of approximately $21
billion.
This estimate, dated March 14, 2012, and intended for use only during
the 2012 Legislative Session, was prepared by the city of New York
office of management and budget.