S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8055
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2017
                                ___________
 
 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
   the definition of additional member  contributions  and  basic  member
   contributions  for  certain New York city employees' retirement system
   members who are subject to certain retirement plans under articles  14
   and  15 of the retirement and social security law, to allow such addi-
   tional member contributions to be used, to offset a deficit  of  basic
   member  contributions,  or to allow an excess of basic member contrib-
   utions to offset a deficit of  additional  member  contributions  upon
   retirement
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (i) of paragraph 8 of subdivision e of section
 504-a of the retirement and social security law, as amended  by  chapter
 631 of the laws of 1993, is amended to read as follows:
   (i)  Such  additional  member contributions (and any interest thereon)
 shall be paid into the contingent reserve fund of the retirement  system
 of  which  the  participant is a member and shall not for any purpose be
 deemed to be member contributions  or  accumulated  contributions  of  a
 member under section five hundred seventeen of this article or otherwise
 while  he  or she is a participant in the twenty-year retirement program
 or otherwise, EXCEPT THAT, UPON THE PARTICIPANT'S SEPARATION  FROM  CITY
 SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDITIONAL MEMBER
 CONTRIBUTIONS THAT ARE PAID  INTO  THE  RETIREMENT  SYSTEM'S  CONTINGENT
 RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF
 BASIC MEMBER CONTRIBUTIONS.
   §  2.  Subparagraph  (i)  of  paragraph 12 of subdivision e of section
 504-b of the retirement and social security law, as added by chapter 631
 of the laws of 1993, is amended to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11762-01-7
              

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   (i) All additional member contributions required by  this  subdivision
 (and  any  interest thereon) which are received by the retirement system
 of which the participant is a member shall be paid into  its  contingent
 reserve  fund  and  shall  not  for  any  purpose be deemed to be member
 contributions  or  accumulated  contributions  of a member under section
 five hundred seventeen of this article or otherwise while he or she is a
 participant in the twenty-year retirement program for captains and above
 or otherwise, EXCEPT THAT, UPON THE PARTICIPANT'S SEPARATION  FROM  CITY
 SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDITIONAL MEMBER
 CONTRIBUTIONS THAT ARE PAID  INTO  THE  RETIREMENT  SYSTEM'S  CONTINGENT
 RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF
 BASIC MEMBER CONTRIBUTIONS.
   § 3. Subparagraph (i) of paragraph 9 of subdivision e of section 504-d
 of  the  retirement  and social security law, as added by chapter 622 of
 the laws of 2004, is amended to read as follows:
   (i) All additional member contributions required by  this  subdivision
 (and  any  interest thereon) which are received by the retirement system
 of which the participant is a member shall be paid into  its  contingent
 reserve  fund  and  shall  not  for  any  purpose be deemed to be member
 contributions or accumulated contributions of  a  member  under  section
 five hundred seventeen of this article or otherwise while he or she is a
 participant  in  the twenty-year retirement program or otherwise, EXCEPT
 THAT, UPON THE PARTICIPANT'S SEPARATION FROM CITY SERVICE AS A RESULT OF
 RETIREMENT, A SURPLUS OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS  THAT  ARE
 PAID  INTO  THE  RETIREMENT SYSTEM'S CONTINGENT RESERVE FUND MAY BE USED
 FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF  BASIC  MEMBER  CONTRIB-
 UTIONS.
   § 4. Subdivision d of section 517 of the retirement and social securi-
 ty  law, as added by chapter 890 of the laws of 1976, is amended to read
 as follows:
   d. Notwithstanding any other provision of this article, a member shall
 be entitled to withdraw any excess contributions within  six  months  of
 becoming  subject  to  this article. Thereafter, such contributions, and
 interest thereon, may only be withdrawn upon  separation  from  service.
 Upon  retirement,  such  excess contributions, and any interest thereon,
 may be withdrawn in a single lump sum, or at the election of the  member
 may be paid as an annuity under an option authorized pursuant to section
 five hundred fourteen of this article, OR AT THE ELECTION OF THE PARTIC-
 IPANT MAY BE USED TO OFFSET A DEFICIT OF ADDITIONAL MEMBER CONTRIBUTIONS
 AS  REQUIRED  PURSUANT  TO  SECTIONS  FIVE  HUNDRED FOUR-A, FIVE HUNDRED
 FOUR-B, AND FIVE HUNDRED FOUR-D OF THIS ARTICLE. THE USE OF BASIC MEMBER
 CONTRIBUTIONS TO OFFSET A DEFICIT  OF  ADDITIONAL  MEMBER  CONTRIBUTIONS
 DOES  NOT  AFFECT THE CONTRIBUTIONS' TAX DESIGNATION PURSUANT TO SECTION
 414(H) OF THE INTERNAL REVENUE CODE.
   § 5. Subparagraph (i) of paragraph 8 of subdivision e of section 604-a
 of the retirement and social security law, as added by  chapter  547  of
 the laws of 1992, is amended to read as follows:
   (i)  Such  additional  member contributions (and any interest thereon)
 shall be paid into the contingent reserve fund of the retirement  system
 of  which  the  participant is a member and shall not for any purpose be
 deemed to be member contributions  or  accumulated  contributions  of  a
 member  under  section six hundred thirteen of this article or otherwise
 while he or she is a participant in the twenty-year  retirement  program
 or  otherwise,  EXCEPT THAT, UPON THE PARTICIPANT'S SEPARATION FROM CITY
 SERVICE AS A RESULT OF RETIREMENT, A SURPLUS OF SUCH  ADDITIONAL  MEMBER
 CONTRIBUTIONS  THAT  ARE  PAID  INTO  THE RETIREMENT SYSTEM'S CONTINGENT

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 RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF
 BASIC MEMBER CONTRIBUTIONS.
   § 6. Subparagraph (i) of paragraph 8 of subdivision e of section 604-b
 of  the  retirement  and social security law, as added by chapter 529 of
 the laws of 1994, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he or she is a participant in the twenty-five-year and age fifty-
 five retirement program or otherwise,  EXCEPT  THAT,  UPON  THE  PARTIC-
 IPANT'S  SEPARATION  FROM  CITY  SERVICE  AS  A  RESULT OF RETIREMENT, A
 SURPLUS OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS THAT ARE PAID  INTO  THE
 RETIREMENT  SYSTEM'S  CONTINGENT  RESERVE  FUND MAY BE USED FOR THE SOLE
 PURPOSE OF OFFSETTING A DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   § 7. Subparagraph (i) of paragraph 7 of subdivision d of section 604-c
 of the retirement and social security law, as added by chapter 96 of the
 laws of 1995, is amended to read as follows:
   (i) All additional member contributions required by  this  subdivision
 (and  any  interest  paid  thereon) which are received by the retirement
 system of which the participant is a  member  shall  be  paid  into  its
 contingent  reserve  fund  and shall not for any purpose be deemed to be
 member contributions or accumulated  contributions  of  a  member  under
 section  six  hundred  thirteen of this article or otherwise while he or
 she is a participant in the twenty-five-year early retirement program or
 otherwise, EXCEPT THAT, UPON  THE  PARTICIPANT'S  SEPARATION  FROM  CITY
 SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDITIONAL MEMBER
 CONTRIBUTIONS THAT ARE PAID  INTO  THE  RETIREMENT  SYSTEM'S  CONTINGENT
 RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF
 BASIC MEMBER CONTRIBUTIONS.
   § 8. Subparagraph (i) of paragraph 8 of subdivision e of section 604-c
 of  the  retirement  and social security law, as added by chapter 472 of
 the laws of 1995, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while he or she is a participant in the twenty-year/age fifty retirement
 program  or  otherwise,  EXCEPT  THAT, UPON THE PARTICIPANT'S SEPARATION
 FROM CITY SERVICE AS A RESULT OF RETIREMENT, A  SURPLUS  OF  SUCH  ADDI-
 TIONAL  MEMBER  CONTRIBUTIONS THAT ARE PAID INTO THE RETIREMENT SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   § 9. Subparagraph (i) of paragraph 6 of subdivision f of section 604-d
 of the retirement and social security law, as added by chapter 96 of the
 laws of 1995, is amended to read as follows:
   (i) All additional member contributions required by  this  subdivision
 (and  any  interest  paid  thereon) which are received by the retirement
 system of which the participant is a  member  shall  be  paid  into  its
 contingent  reserve  fund  and shall not for any purpose be deemed to be
 member contributions or accumulated  contributions  of  a  member  under
 section  six  hundred  thirteen of this article or otherwise while he or
 she is a participant in the age fifty-seven retirement program or other-
 wise, EXCEPT THAT, UPON THE PARTICIPANT'S SEPARATION FROM  CITY  SERVICE

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 AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDITIONAL MEMBER CONTRIB-
 UTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S  CONTINGENT  RESERVE
 FUND  MAY  BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF BASIC
 MEMBER CONTRIBUTIONS.
   §  10.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
 604-e of the retirement and social security law, as added by chapter 576
 of the laws of 2000, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he  or  she  is  a participant in the twenty-five year retirement
 program or otherwise, EXCEPT THAT,  UPON  THE  PARTICIPANT'S  SEPARATION
 FROM  CITY  SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDI-
 TIONAL MEMBER CONTRIBUTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   §  11.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
 604-e of the retirement and social security law, as added by chapter 577
 of the laws of 2000, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he  or  she  is  a participant in the twenty-five year retirement
 program or otherwise, EXCEPT THAT,  UPON  THE  PARTICIPANT'S  SEPARATION
 FROM  CITY  SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDI-
 TIONAL MEMBER CONTRIBUTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   §  12.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
 604-f of the retirement and social security law, as added by chapter 559
 of the laws of 2001, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he  or  she  is  a participant in the twenty-five year retirement
 program or otherwise, EXCEPT THAT,  UPON  THE  PARTICIPANT'S  SEPARATION
 FROM  CITY  SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDI-
 TIONAL MEMBER CONTRIBUTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   §  13.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
 604-f of the retirement and social security law, as added by chapter 582
 of the laws of 2001, is amended to read as follows:
   (i) Such additional member contributions, and  any  interest  thereon,
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he  or  she  is  a participant in the twenty-five year retirement
 program or otherwise, EXCEPT THAT,  UPON  THE  PARTICIPANT'S  SEPARATION

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 FROM  CITY  SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDI-
 TIONAL MEMBER CONTRIBUTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   §  14.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
 604-g of the retirement and social security law, as added by chapter 414
 of the laws of 2002, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he  or  she  is  a  participant in the twenty-five year/age fifty
 retirement program or otherwise, EXCEPT  THAT,  UPON  THE  PARTICIPANT'S
 SEPARATION  FROM  CITY  SERVICE  AS A RESULT OF RETIREMENT, A SURPLUS OF
 SUCH ADDITIONAL MEMBER CONTRIBUTIONS THAT ARE PAID INTO  THE  RETIREMENT
 SYSTEM'S  CONTINGENT  RESERVE  FUND  MAY BE USED FOR THE SOLE PURPOSE OF
 OFFSETTING A DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   § 15. Subparagraph (i) of paragraph 10 of  subdivision  e  of  section
 604-h of the retirement and social security law, as added by chapter 682
 of the laws of 2003, is amended to read as follows:
   (i)  Such  additional  member contributions (and any interest thereon)
 shall be paid into the contingent reserve fund of the retirement  system
 of  which  the  participant is a member and shall not for any purpose be
 deemed to be member contributions  or  accumulated  contributions  of  a
 member  under  section six hundred thirteen of this article or otherwise
 while he or she is a participant  in  the  twenty-five  year  retirement
 program  or  otherwise,  EXCEPT  THAT, UPON THE PARTICIPANT'S SEPARATION
 FROM CITY SERVICE AS A RESULT OF RETIREMENT, A  SURPLUS  OF  SUCH  ADDI-
 TIONAL  MEMBER  CONTRIBUTIONS THAT ARE PAID INTO THE RETIREMENT SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   § 16. Section 613 of the retirement and social security law is amended
 by adding a new subdivision h to read as follows:
   H. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  UPON
 THE  PARTICIPANT'S  SEPARATION  FROM CITY SERVICE AS A RESULT OF RETIRE-
 MENT, A PARTICIPANT MAY USE ANY EXCESS  BASIC  MEMBER  CONTRIBUTIONS  TO
 OFFSET A DEFICIT OF ADDITIONAL MEMBER CONTRIBUTIONS AS REQUIRED PURSUANT
 TO  SECTIONS SIX HUNDRED FOUR-A, SIX HUNDRED FOUR-B, SIX HUNDRED FOUR-C,
 AS ADDED BY CHAPTER 96 OF THE LAWS OF 1995, SIX HUNDRED FOUR-C, AS ADDED
 BY CHAPTER 472 OF THE LAWS OF 1995,  SIX  HUNDRED  FOUR-D,  SIX  HUNDRED
 FOUR-E, AS ADDED BY CHAPTER 576 OF THE LAWS OF 2000, SIX HUNDRED FOUR-E,
 AS  ADDED  BY  CHAPTER  577  OF THE LAWS OF 2000, SIX HUNDRED FOUR-F, AS
 ADDED BY CHAPTER 559 OF THE LAWS OF 2001, SIX HUNDRED FOUR-F,  AS  ADDED
 BY  CHAPTER 582 OF THE LAWS OF 2001, SIX HUNDRED FOUR-G, AND SIX HUNDRED
 FOUR-H OF THIS ARTICLE. THE USE OF BASIC MEMBER CONTRIBUTIONS TO  OFFSET
 A  DEFICIT  OF  ADDITIONAL  MEMBER  CONTRIBUTIONS  DOES  NOT  AFFECT THE
 CONTRIBUTIONS' TAX DESIGNATION PURSUANT TO SECTION 414(H) OF THE  INTER-
 NAL REVENUE CODE.
   § 17. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   PROVISIONS  OF  PROPOSED  LEGISLATION: This proposed legislation would
 amend the contribution provisions applicable to certain  New  York  City
 Employees'  Retirement  System (NYCERS) Special Plans subject to Retire-
 ment and Social Security Law (RSSL) Article 14 and Article 15 to  allow,

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 upon  retirement,  using  any excess basic or additional member contrib-
 utions to offset any deficits in such other contribution account.
   The  Effective  Date  of the proposed legislation would be the date of
 enactment.
   PLANS IMPACTED BY THE PROPOSED LEGISLATION: The  proposed  legislation
 would  cover those members of NYCERS who are participants in the follow-
 ing special plans requiring the payment of  additional  member  contrib-
 utions (Special Plans):
   Article 14 Special Plans:
   Twenty-Year  Retirement  Program  for New York City Correction Members
 below the Rank of Captain
   Twenty-Year Retirement Program for New York City Correction Members of
 the Rank of Captain or above
   Twenty-Year Retirement Program for New York City Correction Members
   Article 15 Special Plans:
   Twenty-Year Retirement Program for New York City Sanitation Members
   Twenty-Five-Year and Age Fifty-Five Retirement Program  for  New  York
 City Transit Authority Members
   Optional  Twenty-Five-Year  Early  Retirement  Program for Certain New
 York City Members
   Twenty-Year/Age Fifty Retirement Program  for  Triborough  Bridge  and
 Tunnel Members
   Age Fifty-Seven Retirement Program for Certain New York City Members
   Twenty-Five Year Retirement Program for Dispatcher Members
   Twenty-Five Year Retirement Program for EMT Members
   Twenty-Five Year Retirement Program for Deputy Sheriff Members
   Twenty-Five  Year  Retirement  Program  for  Special  Officer, Parking
 Control Specialist, School Safety Agent, Campus  Peace  Officer  or  New
 York City Taxi and Limousine Inspector Members
   Twenty-Five Year/Age Fifty Retirement Program for Automotive Members
   Twenty-Five Year Retirement Program for Police Communications Members
   IMPACT  ON  BENEFITS PAYABLE: The proposed legislation would not mate-
 rially affect the benefits payable to participants in the Special Plans.
 Rather, the proposed legislation would help  reduce  the  administrative
 burdens  associated  with  requiring the return of excess basic or addi-
 tional member contributions, and requiring the return of excess basic or
 additional member contributions, and requiring a  separate  payment  for
 any  contribution  deficits  in  such accounts (or the calculation of an
 actuarial reduction based such deficits) upon retirement.
   FINANCIAL IMPACT -  EMPLOYER  CONTRIBUTIONS:  The  enactment  of  this
 proposed legislation would not result in any change in employer contrib-
 utions.
   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 2017-10 dated April 25,
 2017, was prepared by the Chief Actuary for the New York City Employees'
 Retirement System. This estimate is intended for  use  only  during  the
 2017 Legislative Session.