S T A T E O F N E W Y O R K
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10372
I N A S S E M B L Y
May 24, 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 the rate of regular interest used in the actuarial valu-
ation of liabilities for the purpose of calculating contributions to
the New York city employees' retirement system, the New York city
teachers' retirement system, the police pension fund, subchapter two,
the fire department pension fund, subchapter two and the board of
education retirement system of such city by public employers and other
obligors required to make employer contributions to such retirement
systems, the crediting of special interest and additional interest to
members of such retirement systems, and the allowance of supplementary
interest on the funds of such retirement systems
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 2 of subdivision b of section 13-638.2 of the
administrative code of the city of New York, as amended by chapter 3 of
the laws of 2013, is amended to read as follows:
(2) With respect to each retirement system, such rate of interest
shall be as hereinafter set forth in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
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NYCERS 7% July 1, 2011 to
June 30, [2016] 2017
NYCTRS 7% July 1, 2011 to
June 30, [2016] 2017
PPF 7% July 1, 2011 to
June 30, [2016] 2017
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15602-02-6
A. 10372 2
FPF 7% July 1, 2011 to
June 30, [2016] 2017
BERS 7% July 1, 2011 to
June 30, [2016] 2017
S 2. Paragraph 2 of subdivision f of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 3 of the
laws of 2013, is amended to read as follows:
(2) Such special interest shall be allowed at the rates and for the
periods set forth below in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 1 1/4% July 1, 2011 to
June 30, [2016] 2017
NYCTRS 1 1/4% July 1, 2011 to
June 30, [2016] 2017
PPF 1 1/4% July 1, 2011 to
June 30, [2016] 2017
FPF 1 1/4% July 1, 2011 to
June 30, [2016] 2017
BERS 1 1/4% July 1, 2011 to
June 30, [2016] 2017
S 3. Paragraph 2 of subdivision g of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 3 of the
laws of 2013, is amended to read as follows:
(2) Such additional interest shall be included at the rates and for
the periods set forth below in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 1 1/4% July 1, 2011 to
June 30, [2016] 2017
NYCTRS 1 1/4% July 1, 2011 to
June 30, [2016] 2017
PPF 1 1/4% July 1, 2011 to
June 30, [2016] 2017
FPF 1 1/4% July 1, 2011 to
June 30, [2016] 2017
BERS 1 1/4% July 1, 2011 to
June 30, [2016] 2017
S 4. Paragraph 2 of subdivision i of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 3 of the
laws of 2013, is amended to read as follows:
A. 10372 3
(2) Such supplementary interest shall be allowed at the rates and for
the periods set forth below in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 0% July 1, 2011 to
June 30, [2016] 2017
NYCTRS 0% July 1, 2011 to
June 30, [2016] 2017
PPF 0% July 1, 2011 to
June 30, [2016] 2017
FPF 0% July 1, 2011 to
June 30, [2016] 2017
BERS 0% July 1, 2011 to
June 30, [2016] 2017
S 5. This act shall take effect July 1, 2016, except that if it shall
have become a law subsequent to such date, this act shall take effect
immediately and be deemed to have been in full force and effect on and
after July 1, 2016.
FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
FISCAL NOTE: PROVISIONS OF PROPOSED LEGISLATION - OVERVIEW: The enact-
ment of this proposed legislation (referred to hereafter as Interest
Rate Extender Legislation) would amend Administrative Code of the City
of New York (ACNY) Section 13-638.2, as amended by Chapter 3 of the Laws
of 2013 (Chapter 3/13), to continue for Fiscal Year 2017 for the five
actuarially-funded New York City Retirement Systems (NYCRS) the follow-
ing rates that expire on June 30, 2016:
* The 8.25% per annum rate used to credit interest on Tier I and Tier
II member account balances and Increased-Take-Home-Pay (ITHP) Reserves,
and
* The 7.00% per annum Actuarial Interest Rate (AIR) assumption used to
compute employer contributions.
The Effective Date for this proposed Interest Rate Extender Legis-
lation would be July 1, 2016.
FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The continuation for Fiscal
Year 2017 of the same 8.25% per annum rate that was used for Fiscal Year
2016 to credit interest on Tier I and Tier II member contributions and
ITHP Reserves would not change the amount or timing of expected employer
contributions.
The continuation for Fiscal Year 2017 of the AIR assumption of 7.00%
per annum that was used to determine employer contributions to the NYCRS
for Fiscal Year 2016 would not change the expected amount or timing of
employer contributions.
OTHER COSTS: Enactment of this proposed legislation would not be
expected to produce any additional 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 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
A. 10372 4
actuarial opinion contained herein. To the best of my knowledge, the
results contained herein have been prepared in accordance with generally
accepted actuarial principles and procedures and with the Actuarial
Standards of Practice issued by the Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This estimate is intended for use only
during the 2016 Legislative Session. It is Fiscal Note 2016-09, dated
March 15, 2016, prepared by the Chief Actuary for the New York City
Retirement Systems.