Senate Bill S4702B

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

                                  4702

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              April 8, 2015
                               ___________

Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions

AN ACT to amend the retirement and social security law, in  relation  to
  members of the twenty-year/age fifty retirement program for Triborough
  bridge and tunnel members

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

  Section 1. Paragraph 1 of  subdivision  e  of  section  604-c  of  the
retirement  and  social  security  law, as amended by chapter 661 of the
laws of 2002, is amended to read as follows:
  1. In addition to the member contributions  required  by  section  six
hundred  thirteen  of  this  article,  each  participant  in the twenty-
year/age fifty retirement program in the rank of bridge and tunnel offi-
cer shall contribute to the retirement system of which he or  she  is  a
member (subject to the applicable provisions of subdivision d of section
six  hundred thirteen of this article) an additional five and fifty one-
hundredths percent of his or her compensation and  each  participant  in
the  twenty-year/age fifty retirement program in the rank of sergeant or
lieutenant shall contribute to the retirement system an  additional  six
percent  of  his  or  her  compensation  earned [from] FOR all allowable
service as a Triborough bridge and tunnel member rendered on  and  after
the  date which is one hundred eighty days prior to the starting date of
the twenty-year/age fifty retirement program AND  ALL  CREDITED  SERVICE
AFTER  SUCH PERSON CEASES TO BE A PARTICIPANT BUT BEFORE HE OR SHE AGAIN
BECOMES A PARTICIPANT PURSUANT TO PARAGRAPH SIX OF SUBDIVISION B OF THIS
SECTION.  A participant in the twenty-year/age fifty retirement  program
shall  contribute additional member contributions until the later of (i)
the date as of which he or she has twenty years of credited service as a
bridge and tunnel officer, or (ii) the third  anniversary  of  the  date
that  he  or  she last became a participant in the twenty-year/age fifty
retirement program.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09868-01-5
              

S. 4702                             2

  S 2. This act shall take effect immediately.
  FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
  PROVISIONS  OF  PROPOSED  LEGISLATION: This proposed legislation would
amend Retirement and Social Security Law ("RSSL") Section 604-c.e(1)  to
require  that  Additional  Member  Contributions ("AMC") for a period of
non-participation be made by a  member  of  the  Triborough  Bridge  and
Tunnel  Authority  ("TBTA")  20-Year/Age 50 Retirement Plan ("TBTA 20/50
Plan") who ceases to be a participant and later again becomes a  partic-
ipant of the TBTA 20/50 Plan.
  The  effective  date  of the proposed legislation would be the date of
enactment and would apply only to new employees within the TBTA.
  BACKGROUND: Members in the New York City Employees' Retirement  System
("NYCERS")  TBTA 20/50 Plan must be employed in a TBTA Eligible Position
to be eligible to participate. A TBTA Eligible Position  is  a  position
held  by  a  Tier  4  member who is employed as a TBTA Bridge and Tunnel
Officer, Sergeant or  Lieutenant  in  a  non-managerial  position.    To
participate in the TBTA 20/50 Plan, in addition to Basic Member Contrib-
utions, AMC must be made at the rate of 5.5% of gross wages for Officers
and 6.0% of gross wages for Sergeants and Lieutenants until the later of
(1) 20 years of Credited Service in a TBTA Eligible Position, or (2) the
third anniversary of participation in the TBTA 20/50 Plan.
  If a TBTA 20/50 Plan member gets promoted to a managerial position, he
or  she is no longer eligible to participate in that Plan. Subsequently,
if the member is reassigned to a  non-managerial  position,  making  the
member  once  again  eligible to participate in the TBTA 20/50 Plan, the
member is then able to retire with full TBTA 20/50 Plan benefits despite
not having contributed AMC during the period the  member  spent  in  the
managerial position.
  This  proposed  legislation,  if  enacted,  would require a member who
spends a portion of his or her career in a non-participating  managerial
position  and then returns to a TBTA Eligible Position to contribute AMC
for the period of time that the member was in that managerial position.
  For purposes of  developing  the  analysis  herein,  the  Actuary  has
assumed  that  the  required  AMC  rate for this period of time would be
deemed to be equal to the AMC rate last  paid  by  the  member  while  a
participant in the TBTA 20/50 Plan.
  FINANCIAL  IMPACT  - ACTUARIAL PRESENT VALUE OF BENEFITS: Enactment of
this legislation would result in a future  reduction  in  the  Actuarial
Present  Value of Benefits ("APVB") and employer contributions to NYCERS
and would be based on the number of  members  affected,  the  number  of
years  that  they  were  in  non-participating positions and their gross
wages during those periods. Based on the assumptions herein, the savings
in the APVB in the future, if this  legislation  is  enacted,  would  be
approximately $60,000 per member at the date of retirement.
  FINANCIAL  IMPACT  - EMPLOYER COSTS: Enactment of this proposed legis-
lation could decrease employer costs, where such amounts would depend on
the number of members affected, upon the number of years that they  were
in  non-participating positions and their gross wages during those years
and would equal the value of the additional AMC paid.
  The increase in the assets of NYCERS as a result of the additional AMC
paid in any year would be treated as an actuarial gain and be  amortized
over  15  years. Based on the assumptions herein, the cost savings would
be approximately $7,000 per year per affected member.
  FINANCIAL IMPACT  -  EMPLOYER  CONTRIBUTIONS:  Decreases  in  employer
contributions would ultimately be comparable to the decreases in employ-
er costs.

S. 4702                             3

  ACTUARIAL  ASSUMPTIONS AND METHODS: The approximate savings per member
in the APVB has been estimated assuming that:
  * The member had been in a managerial position for 10 years
  *  The  member's  gross  wages  at  the  end of the 10-year period was
$100,000
  * The member had received increases in gross wages of  4.0%  per  year
during the 10-year period
  * The AMC rate was 6.0% of gross wages, and
  * AMC are accumulated at the rate of 5.0% per year.
  STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Acting
Chief Actuary for the New York City Retirement Systems. I am a Fellow of
the Society of Actuaries and a Member of the American Academy of Actuar-
ies. I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
during the 2015 Legislative Session. It is Fiscal  Note  2015-12,  dated
March  6, 2015 prepared by the Acting Chief Actuary of the New York City
Employees' Retirement System.

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

                                 4702--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              April 8, 2015
                               ___________

Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions
  -- recommitted to the Committee  on  Civil  Service  and  Pensions  in
  accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to amend the retirement and social security law, in relation to
  members of the twenty-year/age fifty retirement program for Triborough
  bridge and tunnel members

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

  Section  1.  Paragraph  1  of  subdivision  e  of section 604-c of the
retirement and social security law, as amended by  chapter  661  of  the
laws of 2002, is amended to read as follows:
  1.  In  addition  to  the member contributions required by section six
hundred thirteen of  this  article,  each  participant  in  the  twenty-
year/age fifty retirement program in the rank of bridge and tunnel offi-
cer  shall  contribute  to the retirement system of which he or she is a
member (subject to the applicable provisions of subdivision d of section
six hundred thirteen of this article) an additional five and fifty  one-
hundredths  percent  of  his or her compensation and each participant in
the twenty-year/age fifty retirement program in the rank of sergeant  or
lieutenant  shall  contribute to the retirement system an additional six
percent of his or her  compensation  earned  [from]  FOR  all  allowable
service  as  a Triborough bridge and tunnel member rendered on and after
the date which is one hundred eighty days prior to the starting date  of
the  twenty-year/age  fifty  retirement program AND ALL CREDITED SERVICE
AFTER SUCH PERSON CEASES TO BE A PARTICIPANT BUT BEFORE HE OR SHE  AGAIN
BECOMES A PARTICIPANT PURSUANT TO PARAGRAPH SIX OF SUBDIVISION B OF THIS
SECTION.   A participant in the twenty-year/age fifty retirement program
shall contribute additional member contributions until the later of  (i)

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09868-03-6
              

S. 4702--A                          2

the date as of which he or she has twenty years of credited service as a
bridge  and  tunnel  officer,  or (ii) the third anniversary of the date
that he or she last became a participant in  the  twenty-year/age  fifty
retirement program.
  S 2. This act shall take effect immediately.
  FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
  PROVISIONS  OF  PROPOSED  LEGISLATION: This proposed legislation would
amend paragraph 1 of subdivision e of section 604-c  of  the  Retirement
and  Social  Security  Law  (RSSL)  to  require  that  Additional Member
Contributions (AMC) for a period  of  non-participation  be  made  by  a
member  of the Triborough Bridge and Tunnel Authority (TBTA) 20-Year/Age
50 Retirement Plan (TBTA 20/50 Plan) who ceases to be a participant  and
later again becomes a participant of the TBTA 20/50 Plan.
  The  effective  date  of the proposed legislation would be the date of
enactment and would apply only to new employees within the TBTA.
  BACKGROUND: Members in the New York City Employees' Retirement  System
(NYCERS) TBTA 20/50 Plan must be employed in a TBTA Eligible Position to
be  eligible to participate. A TBTA Eligible Position is a position held
by a Tier 4 or Tier 6 member who is employed as a TBTA Bridge and Tunnel
Officer, Sergeant or  Lieutenant  in  a  non-managerial  position.    To
participate in the TBTA 20/50 Plan, in addition to Basic Member Contrib-
utions, AMC must be made at the rate of 5.5% of gross wages for Officers
and 6.0% of gross wages for Sergeants and Lieutenants until the later of
(1) 20 years of Credited Service in a TBTA Eligible Position, or (2) the
third anniversary of participation in the TBTA 20/50 Plan.
  If a TBTA 20/50 Plan member gets promoted to a managerial position, he
or  she is no longer eligible to participate in that Plan. Subsequently,
if the member is reassigned to a  non-managerial  position,  making  the
member  once  again  eligible to participate in the TBTA 20/50 Plan, the
member is then able to retire with full TBTA 20/50 Plan benefits despite
not having contributed AMC during the period the  member  spent  in  the
managerial position.
  This  proposed  legislation,  if  enacted,  would require a member who
spends a portion of his or her career in a non-participating  managerial
position  and then returns to a TBTA Eligible Position to contribute AMC
for the period of time that the member was in that managerial position.
  For purposes of  developing  the  analysis  herein,  the  Actuary  has
assumed  that  the  required  AMC  rate for this period of time would be
deemed to be equal to the AMC rate last  paid  by  the  member  while  a
participant in the TBTA 20/50 Plan.
  FINANCIAL  IMPACT  - ACTUARIAL PRESENT VALUE OF BENEFITS: Enactment of
this legislation would result in a future  reduction  in  the  Actuarial
Present  Value  of  Benefits (APVB) and employer contributions to NYCERS
and would be based on the number of  members  affected,  the  number  of
years  they  were  in  non-participating  positions, and the gross wages
during the non-participating periods. Based on the  assumptions  herein,
the  savings  in  the  APVB,  if  this  legislation is enacted, would be
approximately $60,000 per member at the date of retirement.
  FINANCIAL IMPACT - EMPLOYER COSTS: Enactment of this  proposed  legis-
lation  could  decrease employer contributions, where such amounts would
depend on the number of members affected, the number of years they  were
in  non-participating  positions,  and their gross wages during the non-
participating years.
  The increase in the assets of NYCERS as a result of the additional AMC
paid in any year would be treated as an actuarial gain and be  amortized

S. 4702--A                          3

over  15  years. Based on the assumptions herein, the cost savings would
be approximately $7,000 per year per affected member.
  FINANCIAL  IMPACT  -  EMPLOYER  CONTRIBUTIONS:  Decreases  in employer
contributions would ultimately be comparable to the decreases in employ-
er costs.
  ACTUARIAL ASSUMPTIONS AND METHODS: The approximate savings per  member
in the APVB has been estimated assuming that:
  * The member had been in a managerial position for 10 years
  *  The  member's  gross  wages  at  the  end of the 10-year period was
$100,000
  * The member had received increases in gross wages of  4.0%  per  year
during the 10-year period
  * The AMC rate was 6.0% of gross wages, and
  * AMC are accumulated at the rate of 5.0% per year.
  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 Actuar-
ies, and a Member of the American Academy of Actuaries. I meet the Qual-
ification Standards of the American Academy of Actuaries to  render  the
actuarial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
during the 2016 Legislative Session. It is Fiscal  Note  2016-07,  dated
March 9, 2016 prepared by the Chief Actuary of the New York City Employ-
ees' Retirement System.