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

                                 7516--A
    Cal. No. 1188

                            I N  S E N A T E

                               May 6, 2016
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities -- reported favora-
  bly from said committee, ordered to first and second  report,  ordered
  to a third reading, amended and ordered reprinted, retaining its place
  in the order of third reading

AN  ACT  to  amend  the  administrative code of the city of New York, in
  relation to promotions of lieutenants

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

  Section  1.  Section  14-114 of the administrative code of the city of
New York is amended by adding a new subdivision d to read as follows:
  D. WHEN A LIEUTENANT SHALL HAVE SERVED IN THE RANK OF LIEUTENANT FOR A
PERIOD OF FIFTEEN YEARS, HE OR SHE SHALL HAVE THE SAME RIGHTS IN RESPECT
TO THE POLICE PENSION FUND AS A LIEUTENANT DETAILED TO ACT AS LIEUTENANT
COMMANDER DETECTIVE SQUAD OR LIEUTENANT SPECIAL ASSIGNMENT.
  S 2. This act shall take effect immediately.
  FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
  FISCAL NOTE: PROVISIONS OF PROPOSED LEGISLATION: This proposed  legis-
lation  would  amend  Administrative Code of the City of New York (ACNY)
Section 14-114 to allow for a Lieutenant of the  New  York  City  Police
Department, who has been a lieutenant for at least 15 years, to have the
same rights in respect to the New York City Police Pension Fund (POLICE)
as  a Lieutenant detailed to act as lieutenant commander detective squad
or lieutenant special assignment.
  FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: A member who would  bene-
fit  under  this  proposed  legislation,  if  enacted,  would receive an
increase in their annual pension of approximately $6,000 per year. Based
on this increase and an estimate of  the  number  of  members  that  are
expected  to  be  impacted  by this change, it is estimated that if this
proposed legislation is enacted, the annual increase in POLICE  pensions
paid will be approximately $65,000 per year.
  This  would  result  in  an increase in the Actuarial Present Value of
Benefits (APVB) of approximately $900,000 in the first year based on the
actuarial assumptions and methods in effect for the Preliminary June 30,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD13949-05-6

S. 7516--A                          2

2015 (Lag) actuarial valuation used to determine the Preliminary  Fiscal
Year  2017  employer contributions of POLICE. These results are expected
to increase at the same rate as increases in salary in future years.
  FINANCIAL  IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: Due to data limita-
tions the number of Lieutenants that will retire with 15 or  more  years
in  rank  cannot  be  known  in  advance  with  credibility.  Therefore,
increases in the APVB due to this legislation would be treated as  actu-
arial  losses  as  the  affected  members retire. These actuarial losses
would be amortized over a 15-year period (14 payments under the One-Year
Lag Methodology) using level dollar payments. Based  on  the  assumption
that  the  first  group  of  retirees impacted by this legislation would
occur during Fiscal Year 2017 and the  estimated  increase  in  APVB  of
$900,000,  the  estimated  increase  in  employer contributions would be
approximately $110,000 beginning in Fiscal Year 2019. Future years costs
in addition to the aforementioned cost would depend  on  the  number  of
retirees that benefit under the legislation.
  CENSUS  DATA:  These  estimates are based on data provided by the NYPD
Lieutenants Benevolent Association which was not audited but was checked
for reasonableness.
  STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
ary for, and independent of, the New York City Pension Funds and Retire-
ment Systems. I am an Associate of the Society of Actuaries, a Fellow of
the  Conference  of  Consulting  Actuaries  and a Member of the American
Academy of Actuaries. I meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
  FISCAL NOTE IDENTIFICATION:  This Fiscal Note 2016-34, dated June  10,
2016  was  prepared  by  the  Chief Actuary for the New York City Police
Pension Fund. This estimate is intended for use  only  during  the  2016
Legislative Session.