S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3327
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2017
                                ___________
 
 Introduced by M. of A. McDONALD, BICHOTTE, BRABENEC, COOK, CROUCH, GOTT-
   FRIED, GRAF, GUNTHER, JAFFEE, MURRAY, RIVERA, SKOUFIS, STIRPE, PICHAR-
   DO,  ENGLEBRIGHT,  DiPIETRO,  HOOPER,  LUPARDO, SANTABARBARA, WOERNER,
   MAYER -- Multi-Sponsored by  --  M.  of  A.  BLAKE,  BUCHWALD,  GALEF,
   GARBARINO,  GLICK,  KEARNS,  MAGEE,  McLAUGHLIN, STEC -- read once and
   referred to the Committee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   increasing the retiree earnings cap
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 2 of section 212 of the retirement  and  social
 security  law,  as amended by chapter 74 of the laws of 2006, is amended
 to read as follows:
   2. The earning limitations for retired persons in positions of  public
 service  under  this  section  shall be in accordance with the following
 table:
 
         For the year                               Earnings limitation
         1996                                       $12,500
         1997                                       $13,500
         1998                                       $14,500
         1999                                       $15,500
         2000                                       $17,000
         2001                                       $18,500
         2002                                       $20,000
         2003                                       $25,000
         2004                                       $27,500
         2005 and 2006                              $27,500
         2007 [and thereafter] THROUGH 2017         $30,000
         2018 AND THEREAFTER                        $35,000
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04812-02-7

 A. 3327                             2
 
   FISCAL NOTE--Pursuant to Legislative Law, Section 50:
   This bill would amend Section 212 of the Retirement and Social Securi-
 ty  Law to set the amount a retired person may earn in public employment
 without reduction in retirement allowance during the year 2018 and ther-
 eafter, to $35,000.
   If this bill is enacted, insofar as it would affect the New York State
 and Local Employees' Retirement System and the New York State and  Local
 Police and Fire Retirement System, the resulting 16.7% increase over the
 current  $30,000  limit,  in  place  since  2007, which is less than the
 increase in the consumer price index over  the  same  period  would  not
 affect  retirement  patterns. Therefore, the annual cost is estimated to
 be negligible.
   Summary of relevant resources:
   The membership data used in  measuring  the  impact  of  the  proposed
 change  was  the same as that used in the March 31, 2016 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2016
 Report  of  the  Actuary  and  the  2016  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2015
 and  2016 Annual Report to the Comptroller on Actuarial Assumptions, and
 the Codes Rules and Regulations of the State  of  New  York:  Audit  and
 Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2016
 New  York  State  and  Local  Retirement System Financial Statements and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This estimate, dated January 19,  2017,  and  intended  for  use  only
 during  the  2017  Legislative  Session,  is  Fiscal  Note  No. 2017-39,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3327--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2017
                                ___________
 
 Introduced by M. of A. McDONALD, BICHOTTE, BRABENEC, COOK, CROUCH, GOTT-
   FRIED, GRAF, GUNTHER, JAFFEE, MURRAY, RIVERA, SKOUFIS, STIRPE, PICHAR-
   DO,  ENGLEBRIGHT,  DiPIETRO,  HOOPER,  LUPARDO, SANTABARBARA, WOERNER,
   MAYER, THIELE, CUSICK,  BRINDISI,  BYRNE,  CURRAN,  MORINELLO,  BLAKE,
   JENNE,  ROZIC, VANEL, FAHY, SEPULVEDA, BENEDETTO, RICHARDSON, MONTESA-
   NO, FRIEND, GJONAJ, JOYNER, NORRIS, HARRIS, GLICK, WILLIAMS, ABINANTI,
   GIGLIO,  BRAUNSTEIN,  GALEF,  JONES,  LUPINACCI,  SIMANOWITZ,  D'URSO,
   PELLEGRINO,  DICKENS,  LENTOL,  CYMBROWITZ,  ORTIZ, BARRON, SOLAGES --
   Multi-Sponsored by -- M. of A.  BLANKENBUSH, BUCHWALD, CAHILL, FITZPA-
   TRICK, GARBARINO, HAWLEY, HYNDMAN, JEAN-PIERRE, KEARNS,  MAGEE,  McDO-
   NOUGH,  McLAUGHLIN, STEC -- read once and referred to the Committee on
   Governmental Employees -- committee discharged, bill amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to amend the retirement and social security law, in relation to
   increasing the retiree earnings cap
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 2 of section 212 of the retirement and social
 security law, as amended by chapter 74 of the laws of 2006,  is  amended
 to read as follows:
   2.  The earning limitations for retired persons in positions of public
 service under this section shall be in  accordance  with  the  following
 table:
 
         For the year                               Earnings limitation
         1996                                       $12,500
         1997                                       $13,500
         1998                                       $14,500
         1999                                       $15,500
         2000                                       $17,000
         2001                                       $18,500
         2002                                       $20,000
         2003                                       $25,000
         2004                                       $27,500
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04812-05-7

 A. 3327--A                          2
 
         2005 and 2006                              $27,500
         2007 [and thereafter] THROUGH 2017         $30,000
         2018 AND THEREAFTER                        $35,000
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend Section 212 of the Retirement and Social Securi-
 ty  Law to set the amount a retired person may earn in public employment
 without reduction in retirement allowance during the year 2018 and ther-
 eafter, to $35,000.
   If this bill is enacted, insofar as it would affect the New York State
 and Local Employees' Retirement System and the New York State and  Local
 Police and Fire Retirement System, the resulting 16.7% increase over the
 current  $30,000  limit,  in  place  since  2007, which is less than the
 increase in the consumer price index over  the  same  period  would  not
 affect  retirement  patterns. Therefore, the annual cost is estimated to
 be negligible.
   Summary of relevant resources:
   The membership data used in  measuring  the  impact  of  the  proposed
 change  was  the same as that used in the March 31, 2016 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2016
 Report  of  the  Actuary  and  the  2016  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2015
 and  2016 Annual Report to the Comptroller on Actuarial Assumptions, and
 the Codes Rules and Regulations of the State  of  New  York:  Audit  and
 Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2016
 New  York  State  and  Local  Retirement System Financial Statements and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This estimate, dated January 19,  2017,  and  intended  for  use  only
 during  the  2017  Legislative  Session,  is  Fiscal  Note  No. 2017-39,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.
   FISCAL NOTE--Pursuant to Legislative Law, Section 50:
   This  bill  would amend subdivision 2 of section 212 of the Retirement
 and Social Security Law to increase the earnings limitation for  retired
 members  in  positions  of public employment to $35,000 for the calendar
 year 2018 and thereafter. The earnings limitation for the calendar  year
 2017 is $30,000.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System is estimated to be negligible if  this  bill
 is enacted.
   Employee  data  is  from  the System's most recent actuarial valuation
 files, consisting of data provided by the employers  to  the  Retirement
 System.  Data  distributions and statistics can be found in the System's
 Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
 reported  in the System's financial statements, and can also be found in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report.
   The source of this estimate is Fiscal Note 2017-34 dated June 14, 2017
 prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
 System and is intended for use only during the 2017 Legislative Session.
 I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
 Retirement System. I am a member of the American  Academy  of  Actuaries

 A. 3327--A                          3
 
 and  I meet the Qualification Standards of the American Academy of Actu-
 aries to render the actuarial opinion contained herein.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   PROVISIONS  OF PROPOSED LEGISLATION: With respect to the New York City
 Retirement Systems and Pension Funds (NYCRS), this proposed  legislation
 would  amend  Retirement  and  Social Security Law (RSSL) Section 212 to
 increase the earnings limit of certain NYCRS retirees who have  returned
 to employment in Public Service.
   The  Effective  Date  of the proposed legislation would be the date of
 enactment.
   CURRENT POST-RETIREMENT PUBLIC SERVICE EARNINGS RESTRICTIONS:
   Retirees who return to to Public Service and elect to be covered under
 the provisions of RSSL Section 212 are permitted to earn in  a  calendar
 year  an  amount  not  exceeding  a  specific dollar limit without loss,
 suspension or diminution of their retirement allowances. Once a  retiree
 attains  age 65 in a calendar year, there are no earnings limitations in
 that calendar year or thereafter. Currently, the  dollar  limitation  in
 effect for Calendar Year 2007 and thereafter is $30,000.
   IMPACT OF BENEFITS: Under the proposed legislation, the dollar limita-
 tion  would be increased to $35,000 for Calendar Year 2018 and thereaft-
 er.
   FINANCIAL IMPACT ON EMPLOYER COST: The ultimate cost of a pension plan
 is the benefits it pays.
   To the extent the current RSSL Section 212 earning limitation  applies
 in  Calendar  Years  2018  and  later, certain retirees would have their
 retirement allowances suspended for the remainder of the  calendar  year
 in  which  their earnings in Public Service exceed that earnings limita-
 tion.
   Enactment of the proposed legislation  would  raise  the  amount  that
 could  be earned in post-retirement Public Service. This would result in
 a slight increase in benefits paid to retirees where the Public  Service
 earnings exceed the current RSSL Section 212 earnings limitation.
   If a definite amount of change to be expected retirement allowances to
 be  paid were known, it would be reflected in the fiscal year the legis-
 lation were enacted.
   However, a change in the  applicable  retirement  allowances  paid  to
 NYCRS  retired  members under this proposed legislation are not known in
 advance.  These  changes  would  be  treated  as  actuarial   experience
 gains/losses recognized in the assets of the respective NYCRS at the end
 of that fiscal year (i.e., a change in retirement allowances paid during
 the  first six months Calendar Year 2018 would be reflected in the NYCRS
 assets as of June 30, 2018).
   Under the Lag actuarial valuation methodology, adjustments in the June
 30, 2018 asset values would first impact employer contributions  to  the
 respective NYCRS for Fiscal Year 2020.
   For those NYCRS retirees who become reemployed in Public Service, have
 elected to become subject to RSSL Section 212, and who have exceeded the
 limit,  the  Actuary  estimates  that the annual potential impact of the
 proposed legislation would be to increase pension payments in 2018  from
 the NYCRS by approximately $280,000.
   FINANCIAL IMPACT ON EMPLOYER CONTRIBUTIONS: If enacted during the 2017
 Legislative  Session,  the impact on employer contributions to the NYCRS
 would begin Fiscal Year 2020.
   Overall, the Actuary believes the changes in employer contributions to
 the NYCRS as a result of enactment of the proposed legislation would  be
 approximately $5,000 per year.

 A. 3327--A                          4
 
   OTHER  COSTS:  Not  measured  in  this  Fiscal  Note  are any possible
 increased administrative costs attributable to enactment of the proposed
 legislation.
   CENSUS  DATA:  For  purposes  of  analyzing the impact of the proposed
 legislation,  data  on  retirees  reemployed  in  Public  Service   were
 furnished by the staffs of the NYCRS. This data was reviewed and consid-
 ered  illustrative  of  those  who could potentially be impacted by this
 proposed legislation. Where data was not final, an assumption  was  made
 to  determine  those  retirees  employed  in Public Service under age 65
 earning in excess of the RSSL Section 212 limit.
 
           NYCRS Retirees Under Age 65 in Public Service in 2016
               Who Elected to Be Subject to RSSL Section 212
 
                                         Number Reemployed with
                                            Earnings in Excess
        Retirement System{1}                   of $30,000
 
             NYCERS                                42
             TRS                                   12
             BERS                                   0
             POLICE                                34
             FIRE                                   3{2}
             Total                                 91
 
 {1} New York City Employees' Retirement System (NYCERS)
     New York City Teachers' Retirement System (TRS)
     New York City Board of Education Retirement System (BERS)
     New York City Police Pension Fund (POLICE)
     New York City Fire Pension Fund (FIRE)
 
 {2} Estimated from information furnished.
   ACTUARIAL ASSUMPTIONS AND METHODS: Any changes  in  employer  contrib-
 utions  have been estimated based on the actuarial assumptions and meth-
 ods used in the Preliminary June 30, 2016 (Lag) actuarial valuations  of
 the  NYCRS  to  determine  employer contributions for Preliminary Fiscal
 Year 2018.
   For purposes of analyzing the impact of the proposed  legislation,  it
 was  assumed  that  the  current  number of reemployed NYCRS retirees in
 Public Service under age 65 earning in excess of the  RSSL  Section  212
 dollar limit would remain constant over time.
   It  was also assumed that the earnings in Public Service of such reem-
 ployed retirees would remain constant over time.
   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 a Fellow 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 2017-38, dated  July  28,
 2017  was prepared by the Chief Actuary for the New York City Employees'
 Retirement System, the New York City Teachers'  Retirement  System,  the
 New  York  City  Board of Education Retirement System, the New York City
 Police Pension Fund, and the New York City Fire Pension Fund. This esti-
 mate is intended for use only during the 2017 Legislative Session.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3327--B
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2017
                                ___________
 
 Introduced by M. of A. McDONALD, BICHOTTE, BRABENEC, COOK, CROUCH, GOTT-
   FRIED,  GUNTHER,  JAFFEE,  MURRAY,  RIVERA, SKOUFIS, STIRPE, PICHARDO,
   ENGLEBRIGHT, DiPIETRO, HOOPER, LUPARDO, SANTABARBARA, WOERNER,  MAYER,
   THIELE,  CUSICK,  BRINDISI,  BYRNE,  CURRAN,  MORINELLO, BLAKE, JENNE,
   ROZIC,  VANEL,  FAHY,  SEPULVEDA,  BENEDETTO,  RICHARDSON,  MONTESANO,
   FRIEND,  JOYNER, NORRIS, GLICK, WILLIAMS, ABINANTI, BRAUNSTEIN, GALEF,
   JONES, D'URSO, PELLEGRINO, DICKENS, LENTOL, CYMBROWITZ, ORTIZ, BARRON,
   SOLAGES,  LAWRENCE,  McDONOUGH,  MOSLEY,  WALLACE,  LIFTON,   PALUMBO,
   O'DONNELL, D. ROSENTHAL, ARROYO, GIGLIO, BLANKENBUSH, ERRIGO, GARBARI-
   NO,  B. MILLER,  CAHILL,  DAVILA  --  Multi-Sponsored  by  -- M. of A.
   BUCHWALD, CRESPO, DenDEKKER,  FITZPATRICK,  HAWLEY,  HIKIND,  HYNDMAN,
   JEAN-PIERRE,  MAGEE,  PALMESANO, SIMON, STEC -- read once and referred
   to the Committee on Governmental Employees  --  committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee -- recommitted to the Committee on Governmental Employees in
   accordance with Assembly Rule 3, sec. 2 -- committee discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 AN ACT to amend the retirement and social security law, in  relation  to
   increasing the retiree earnings cap
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 2 of section 212 of the retirement  and  social
 security  law,  as amended by chapter 74 of the laws of 2006, is amended
 to read as follows:
   2. The earning limitations for retired persons in positions of  public
 service  under  this  section  shall be in accordance with the following
 table:
 
         For the year                               Earnings limitation
         1996                                       $12,500
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04812-11-8

 A. 3327--B                          2
 
         1997                                       $13,500
         1998                                       $14,500
         1999                                       $15,500
         2000                                       $17,000
         2001                                       $18,500
         2002                                       $20,000
         2003                                       $25,000
         2004                                       $27,500
         2005 and 2006                              $27,500
         2007 [and thereafter] THROUGH 2018         $30,000
         2019 AND THEREAFTER                        $35,000
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would amend subdivision 2 of section 212 of the Retirement
 and Social Security Law to increase the earnings limitation for  retired
 members  in  positions  of public employment to $35,000 for the calendar
 year 2019 and thereafter. The earnings limitation for the calendar  year
 2018 is $30,000.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System is estimated to be negligible if  this  bill
 is enacted.
   Member  data  is  from  the  System's  most recent actuarial valuation
 files, consisting of data provided by the employers  to  the  Retirement
 System.   Data distributions and statistics can be found in the System's
 Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
 reported  in the System's financial statements, and can also be found in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report.
   The source of this estimate is Fiscal Note 2018-9  dated  January  26,
 2018  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2018 Legislative Session.
 I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
 Retirement  System.  I  am a member of the American Academy of Actuaries
 and I meet the Qualification Standards of the American Academy of  Actu-
 aries to render the actuarial opinion contained herein.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend Section 212 of the Retirement and Social Securi-
 ty  Law to set the amount a retired person may earn in public employment
 without reduction in retirement allowance during the year 2019 and ther-
 eafter, to $35,000.
   If this bill is enacted, insofar as it would affect the New York State
 and Local Employees' Retirement System and the New York State and  Local
 Police and Fire Retirement System, the resulting 16.7% increase over the
 current  $30,000  limit,  in  place  since  2007, which is less than the
 increase in the consumer price index over  the  same  period  would  not
 affect  retirement  patterns. Therefore, the annual cost is estimated to
 be negligible.
   Summary of relevant resources:
   The membership data used in  measuring  the  impact  of  the  proposed
 change  was  the same as that used in the March 31, 2017 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2017
 Report  of  the  Actuary  and  the  2017  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in the  2015,
 2016,  and  2017  Annual  Report to the Comptroller on Actuarial Assump-

 A. 3327--B                          3
 
 tions, and the Codes Rules and Regulations of the  State  of  New  York:
 Audit and Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2017
 New  York  State  and  Local  Retirement System Financial Statements and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This estimate, dated January 2, 2018, and intended for use only during
 the 2018 Legislative Session, is Fiscal Note No.  2018-20,  prepared  by
 the Actuary for the New York State and Local Retirement System.