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

                                  7420

                            I N  S E N A T E

                             April 29, 2016
                               ___________

Introduced  by  Sen.  GOLDEN -- 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
  eligibility  of uniformed personnel of the New York city department of
  correction for ordinary disability benefits

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

  Section  1. Section 507-a of the retirement and social security law is
amended by adding a new subdivision f to read as follows:
  F. NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW,  THERE  SHALL  BE  NO
RESTRICTIONS  ON  THE  EARNINGS  FROM  EMPLOYMENT  NOT IN PUBLIC SERVICE
PERMITTED TO A MEMBER OF THE UNIFORMED PERSONNEL OF THE  NEW  YORK  CITY
DEPARTMENT OF CORRECTION WHO:
  1. HAS RETIRED PURSUANT TO THE PROVISIONS OF THIS SECTION; AND
  2.  WAS SUBJECT TO THE PROVISIONS OF (I) SUBDIVISION D OF SECTION FIVE
HUNDRED FOUR OF THIS ARTICLE, (II) SUBDIVISION C OF SECTION FIVE HUNDRED
FOUR-A OF THIS ARTICLE, OR (III) SUBDIVISION C OF SECTION  FIVE  HUNDRED
FOUR-B OF THIS ARTICLE PRIOR TO HIS OR HER RETIREMENT, SUBSEQUENT TO THE
DATE  AS OF WHICH HE OR SHE WOULD HAVE BEEN ELIGIBLE FOR SERVICE RETIRE-
MENT.
  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 507-a by adding
a new Subdivision f to remove earnings restrictions from private  sector
employment  for  periods  subsequent  to the earliest applicable Service
Retirement eligibility date for certain uniformed personnel of  the  New
York City Department of Correction who were members of the New York City
Employees'  Retirement  System (NYCERS), have retired, and are receiving
Ordinary Disability benefits (Correction ODR Retirees).
  The Effective Date of the proposed legislation would be  the  date  of
enactment.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13470-02-6

              

S. 7420                             2

  IMPACT  ON BENEFITS: NYCERS restricts the total calendar year Personal
Service Income (PSI) of a Correction  ODR  Retiree  resulting  from  all
public and private employment.
  If  a Correction ODR Retiree's PSI from all public and private employ-
ment exceeds the NYCERS PSI limitation, then such  retiree's  disability
pension  is  suspended for 12 months. The NYCERS PSI limitation for 2015
was $29,200 and increases each year with the Consumer Price Index.
  If the proposed legislation is enacted,  a  Correction  ODR  Retiree's
earnings subsequent to the date the retiree would have been eligible for
Service Retirement would no longer be limited by NYCERS.
  It  is  the  understanding  of the Actuary that in lieu of such NYCERS
limitation, the restrictions on PSI for Correction ODR Retirees would be
limited to New York City Charter (NYCC) Section 1117.
  NYCC Section 1117 limits the PSI for any NYCERS retiree to $1,800  per
year  from  most  public employment within New York State (including New
York City). PSI from those sources that exceeds  $1,800  per  year  will
result  in  a suspension of the retiree's pension. However, NYCC Section
1117 places no limits on the amounts of PSI  that  may  be  earned  from
employment  from other sources, and RSSL section 212 generally permits a
retiree to earn up to $30,000 per year from public  employment  notwith-
standing NYCC Section 1117.
  FINANCIAL IMPACT - EMPLOYER COSTS: The ultimate cost of a pension plan
is the benefits it pays.
  To  the  extent  the  NYCERS earnings limitation would have applied in
Calendar Years 2016 and later, certain  Correction  ODR  Retirees  would
have  had their pension temporarily suspended in years subsequent to the
date the retiree would have been eligible for Service  Retirement  where
PSI exceeded the NYCERS earnings limitation.
  Enactment of the legislation would eliminate the reduction in benefits
to  those  Correction ODR Retirees whose PSI exceeds the NYCERS earnings
limitation.
  As the Actuary believes that few, if  any,  Correction  ODR  Retirees'
benefits are suspended due to PSI that exceeds the NYCERS earnings limi-
tation, the increase in benefits would be de minimis.
  FINANCIAL  IMPACT:  EMPLOYER  CONTRIBUTIONS:  The  change  in employer
contributions would  depend  upon  the  amount  and  timing  of  pension
payments  that  would  no longer be suspended as a result of this legis-
lation.
  OTHER COSTS: Not  measured  in  this  Fiscal  Note  are  any  possible
increased administrative costs attributable to enactment of the proposed
legislation.
  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 Fiscal Note 2016-23 dated April 21,
2016, was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for  use  only  during  the
2016 Legislative Session.