The New York State Senate

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

                                  4632

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              April 1, 2015
                               ___________

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 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.
                                                           LBD00931-02-5

S. 4632                             2

  The  Effective  Date  of the proposed legislation would be the date of
enactment.
  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")
Section 1117.
  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
sources.
  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
limitations.
  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
legislation.
  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.