S T A T E O F N E W Y O R K
________________________________________________________________________
10011
I N A S S E M B L Y
May 4, 2016
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees
AN ACT to amend the administrative code of the city of New York, in
relation to membership in the New York city teachers' retirement
system
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 7 of section 13-501 of the
administrative code of the city of New York, as amended by chapter 650
of the laws of 1990, is amended to read as follows:
(a) "Teacher" shall mean the superintendent of schools, the associate
superintendents, the assistant superintendents, the director and the
assistant director of the divisions of reference and research, the
director and the assistant directors of the bureau of compulsory educa-
tion, school census and child welfare, attendance teachers and specially
certificated attendance officers who are first employed by the New York
city board of education on or after September first, nineteen hundred
sixty-eight, attendance teachers and specially certificated attendance
officers who were members of the New York city board of education
retirement system and who, on or before December thirty-first, nineteen
hundred sixty-nine, gave notice to said board of education retirement
system of their intention to transfer to the New York city teachers'
retirement system, the director of attendance, assistant director of
attendance, chief attendance officer, division supervising attendance
officers and district supervising attendance officers of the bureau of
compulsory education, school census and child welfare, supervisors of
school social workers who are first employed by the New York city board
of education on or after September first, nineteen hundred sixty-nine or
who were members of the New York city board of education retirement
system and who on or before December thirty-first, nineteen hundred
seventy, gave notice to the said board of education retirement system of
their intention to transfer to the New York city teachers' retirement
system, the members of the board of examiners, the directors and the
assistant directors of special branches, the supervisor and assistant
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15163-02-6
A. 10011 2
supervisors of lectures, all principals, vice-principals, assistants-to-
principals, heads of departments, and all regular and special teachers
of the public day schools of the city, and all employees of the board of
education appointed to regular positions in the service of the public
schools at annual salaries and whose appointments were made or shall be
made from eligible lists prepared as the result of examinations held by
the board of examiners or from hiring lists established by the chancel-
lor of the board of education, as the case may be, and all employees
employed by the board of education in the titles of teacher aide, educa-
tional assistant, educational associate, auxiliary trainer, bilingual
professional assistant, family worker, family assistant, family associ-
ate[,] OR parent program assistant[, who file an application for member-
ship in the retirement association on a form supplied by the retirement
board].
S 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, section 50:
This proposed legislation would amend paragraph (a) of subdivision 7
of Section 13-501 of the Administrative Code of the City of New York to
mandate paraprofessionals into the New York City Teachers' Retirement
System (TRS). Under current law, paraprofessionals have the option of
joining TRS.
The effective date of the proposed legislation would be the date of
enactment.
FINANCIAL IMPACT - ADDITIONAL ANNUAL EMPLOYER CONTRIBUTIONS: If
enacted into law, the ultimate employer cost for this proposed legis-
lation would be based on the number, ages, years of service and salary
of those paraprofessionals that would otherwise not have elected to
become members of TRS.
In order to estimate this group, we were provided with census data of
approximately 5,600 paraprofessionals who are not members of TRS. Based
on this data and the population of paraprofessionals who have already
joined TRS, we have estimated that approximately 2,700 paraprofessionals
would become members of TRS if this proposed legislation is enacted. The
remaining 2,900 paraprofessionals were assumed to have become members of
TRS at some point in their career even absent the proposed legislation.
Based on these assumptions and other actuarial assumptions and methods
in effect for the June 30, 2015 (Lag) actuarial valuation used to deter-
mine the Preliminary Fiscal Year 2017 employer contributions for TRS, we
have estimated the annual cost of this legislation to be $7.3 million.
However, the total increase in employer contributions for Fiscal Year
2017 would be approximately $15 million for the entire group of 5,600
paraprofessionals who would be mandated into the plan in the proposed
legislation is enacted. This amount includes the cost for the 2,900
paraprofessionals whose membership is being accelerated into TRS and
would have become members of TRS even absent the enactment of the
proposed legislation. The additional annual employer contributions asso-
ciated with the 2,700 paraprofessionals who are assumed to become TRS
members only if the proposed legislation is enacted has been estimated
to be $7.3 million of the $15 million. This employer contribution amount
is representative of the annual employer contribution amount for each
future year if member participation does not significantly change.
Note that the total increase in employer contributions for Fiscal Year
2017 would be approximately $15 million. However, this amount includes
the cost for those paraprofessionals whose membership is being acceler-
ated into TRS and would have become members of TRS absent the enactment
of the proposed legislation.
A. 10011 3
If enacted on or before June 30, 2016, these additional paraprofes-
sionals would likely be included in the census data as of June 30, 2016
and if so the increase in employer contributions to TRS would first be
reflected in Fiscal Year 2018.
OTHER COSTS: Not measured in this Fiscal Note are the following poten-
tial costs:
* The additional administrative costs to TRS to implement the proposed
legislation.
* The impact of this proposed legislation on Other Postemployment
Benefit (OPEB) costs.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for the New York City Retirement Systems. I am an Associate of the
Society of Actuaries, a Fellow of the Conference of Consulting Actuaries
and a Member of the American Academy of Actuaries. I meet the Qualifica-
tion Standards of the American Academy of Actuaries to render the actu-
arial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2016-21 dated April 19,
2016, was prepared by the Chief Actuary for the New York City Teachers'
Retirement System. This estimate is intended for use only during the
2016 Legislative Session.