S T A T E O F N E W Y O R K
2015-2016 Regular Sessions
I N A S S E M B L Y
April 16, 2015
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees
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-
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 to add a
new Subdivision f to remove restrictions on the earnings from employment
in the private sector for periods subsequent to the former member's
earliest eligibility date for Service Retirement for uniformed personnel
of the New York City Department of Correction ("Correction Personnel")
who were members of the New York City Employees' Retirement System
("NYCERS") and who have retired and are receiving Ordinary Disability
benefits ("Correction ODR Retirees").
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
A. 6980 2
The Effective Date of the proposed legislation would be the date of
IMPACT ON BENEFITS: NYCERS restricts the total Personal Service Income
("PSI") of a Correction ODR Retiree, in a calendar year, 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 2014
was $29,000 and increases each year with the Consumer Price Index.
If the proposed legislation is enacted, earnings of a Correction ODR
Retiree earned subsequent to the date as of which the retiree would have
been eligible for Service Retirement would no longer be limited in this
manner by the NYCERS.
It is the understanding of the Actuary that in lieu of such NYCERS
limitations, the limitation on PSI for ODR Correction Retirees would
fall back to the restrictions imposed by New York City Charter ("NYCC")
NYCC Section 1117 limits the sum of the retirement allowance and the
PSI for any ODR Retiree of the New York City Retirement Systems to
$1,800 per year from most public employment within New York State
(including New York City). However, NYCC Section 1117 places no limits
on the amounts of PSI and that may earned from employment from other
FINANCIAL IMPACT - EMPLOYER COSTS: The ultimate cost of a pension plan
is the benefits it pays.
To the extent NYCERS earnings limitations would have applied in Calen-
dar Year 2015 and later, certain Correction ODR Retirees would have had
their pension temporarily suspended in years subsequent to the date as
of which the retiree would have been eligible for Service Retirement
where PSI exceeded those NYCERS earnings limitations.
Enactment of the legislation would eliminate the decrease in benefits
to those Correction ODR Retirees where PSI exceeds the NYCERS earnings
As the Actuary believes that few, if any, Correction ODR Retirees
currently earn excess PSI that results in a suspension of their Ordinary
Disability benefits, 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, but would ultimately be comparable to the change in employer
costs and is expected to be de minimis.
OTHER COSTS: Not measured in this Fiscal Note are any possible
increased administrative costs attributable to enactment of the proposed
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 2015-09, dated
February 27, 2015 prepared by the Acting Chief Actuary for the New York
City Employees' Retirement System.