S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6140
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2017
                                ___________
 
 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
   allowable  service credit for participants in the twenty-five year and
   age fifty-five retirement program for New York city transit  authority
   members
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 6 of  subdivision  a  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:
   6. (I) "Allowable service in the transit authority" shall mean credit-
 ed service which was rendered as a member of the New York  city  transit
 authority[.]; AND
   (II)  "ALLOWABLE  SERVICE"  SHALL  MEAN  CREDITED  SERVICE  WHICH  WAS
 RENDERED AS A MEMBER OF THE NEW YORK  CITY  TRANSIT  AUTHORITY  AND  ALL
 SERVICE RENDERED PRIOR TO SERVICE IN THE NEW YORK CITY TRANSIT AUTHORITY
 WHICH  QUALIFIES  AS  "CITY-SERVICE"  AS THAT TERM IS DEFINED IN SECTION
 13-101 OF THE ADMINISTRATIVE CODE.
   § 2. Paragraph 7 of subdivision a 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:
   7. "Minimum period" shall mean the minimum period of twenty-five years
 of  allowable  service  [in  the  transit authority] that is required in
 order for a participant  in  the  twenty-five-year  and  age  fifty-five
 retirement  program to be eligible for early service retirement pursuant
 to paragraph one of subdivision c of this section.
   § 3. Subparagraph (i) of paragraph 1 of subdivision c 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10372-01-7
              

 S. 6140                             2
 
   (i)  who  has completed twenty-five or more years of allowable service
 [in the transit authority]; and
   §  4.  Subparagraph  (ii)  of  paragraph 1 of subdivision d of section
 604-b of the retirement and social security law, as amended  by  chapter
 18 of the laws of 2012, is amended to read as follows:
   (ii)  in  the case of a participant who is not a New York city revised
 plan member, prior to such discontinuance, completed five but less  than
 twenty-five years of allowable service [in the transit authority] or, in
 the  case  of  a participant who is a New York city revised plan member,
 has completed ten but less than twenty-five years of  allowable  service
 [in the transit authority] prior to such discontinuance; and
   §  5.  Subparagraph  (ii)  of  paragraph 2 of subdivision d of section
 604-b of the retirement and social security law, as added by chapter 352
 of the laws of 1997, is amended to read as follows:
   (ii) prior to  such  discontinuance  completed  twenty-five  years  of
 allowable service [in the transit authority]; and
   §  6.  Clause (A) of subparagraph (ii) 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:
   (A)  Should  a  participant in the twenty-five-year and age fifty-five
 retirement program who  has  rendered  less  than  twenty-five-years  of
 allowable service [in the transit authority] cease to hold a position as
 a  New York city transit authority member for any reason whatsoever, his
 or her accumulated additional member contributions made pursuant to this
 subdivision (together with any interest thereon paid to  the  retirement
 system)  [maybe]  MAY  BE withdrawn by him or her pursuant to procedures
 promulgated in regulations of the board of trustees  of  the  retirement
 system,  together  with interest thereon at the rate of five percent per
 annum, compounded annually.
   § 7. This act shall take effect immediately.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6140--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2017
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- 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
   allowable service credit for participants in the twenty-five year  and
   age  fifty-five retirement program for New York city transit authority
   members
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  6  of  subdivision  a  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:
   6. (I) "Allowable service in the transit authority" shall mean credit-
 ed  service  which was rendered as a member of the New York city transit
 authority[.]; AND
   (II)  "ALLOWABLE  SERVICE"  SHALL  MEAN  CREDITED  SERVICE  WHICH  WAS
 RENDERED  AS  A  MEMBER  OF  THE NEW YORK CITY TRANSIT AUTHORITY AND ALL
 SERVICE RENDERED PRIOR TO SERVICE IN THE NEW YORK CITY TRANSIT AUTHORITY
 WHICH QUALIFIES AS "CITY-SERVICE" AS THAT TERM  IS  DEFINED  IN  SECTION
 13-101 OF THE ADMINISTRATIVE CODE.
   §  2.  Paragraph 7 of subdivision a 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:
   7. "Minimum period" shall mean the minimum period of twenty-five years
 of allowable service [in the transit  authority]  that  is  required  in
 order  for  a  participant  in  the  twenty-five-year and age fifty-five
 retirement program to be eligible for early service retirement  pursuant
 to paragraph one of subdivision c of this section.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10372-03-7

              

 S. 6140--A                          2
 
   § 3. Subparagraph (i) of paragraph 1 of subdivision c 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)  who  has completed twenty-five or more years of allowable service
 [in the transit authority]; and
   § 4. Subparagraph (ii) of paragraph 1  of  subdivision  d  of  section
 604-b  of  the retirement and social security law, as amended by chapter
 18 of the laws of 2012, is amended to read as follows:
   (ii) in the case of a participant who is not a New York  city  revised
 plan  member, prior to such discontinuance, completed five but less than
 twenty-five years of allowable service [in the transit authority] or, in
 the case of a participant who is a New York city  revised  plan  member,
 has  completed  ten but less than twenty-five years of allowable service
 [in the transit authority] prior to such discontinuance; and
   § 5. Subparagraph (ii) of paragraph 2  of  subdivision  d  of  section
 604-b of the retirement and social security law, as added by chapter 352
 of the laws of 1997, is amended to read as follows:
   (ii)  prior  to  such  discontinuance  completed  twenty-five years of
 allowable service [in the transit authority]; and
   § 6. Clause (A) of subparagraph (ii) 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:
   (A) Should a participant in the twenty-five-year  and  age  fifty-five
 retirement  program  who  has  rendered  less  than twenty-five-years of
 allowable service [in the transit authority] cease to hold a position as
 a New York city transit authority member for any reason whatsoever,  his
 or her accumulated additional member contributions made pursuant to this
 subdivision  (together  with any interest thereon paid to the retirement
 system) [maybe] MAY BE withdrawn by him or her  pursuant  to  procedures
 promulgated  in  regulations  of the board of trustees of the retirement
 system, together with interest thereon at the rate of five  percent  per
 annum, compounded annually.
   § 7. This act shall take effect immediately.
   FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
   PROVISIONS  OF  PROPOSED  LEGISLATION:  The proposed legislation would
 amend Retirement and Social Security Law (RSSL) Section 604-b to  permit
 eligible  New York City Employees' Retirement System (NYCERS) members in
 the Tier 4 or Tier 6 Twenty-Five  Year  and  Age  Fifty-Five  Retirement
 Program for New York City Transit Authority Members (Transit 25/55 Plan)
 to  purchase  certain  furlough time for Allowable Service credit in the
 Plan.
   The Effective Fate of the proposed legislation would be  the  date  of
 enactment.
   To be eligible to purchase furlough time, an individual must:
   be a current NYCERS Transit 25/55/ Plan member,
   have  been  on  a preferred eligible list anytime on and after May 11,
 2010 to July 25, 2012, inclusive, because of the abolition of his or her
 position by the Transit Authority, and
   have been a member or former member of the Transit 25/55 Plan  at  the
 time his or her name was placed on such list.
   In  order  to  receive  Allowable  Service credit in the Transit 25/55
 Plan, an eligible member  must  make  any  applicable  contributions  to
 NYCERS,  with  interest,  for  the period of eligible furlough time. The
 period of purchased furlough time shall be considered Allowable  Service
 in  the  Transit  Authority  for all purposes in the Transit 25/55 Plan,
 including eligibility for and calculation of benefits.

 S. 6140--A                          3
 
   For purposes of this Fiscal Note, it is assumed that eligible  Transit
 25/55 Plan Members who purchase applicable furlough time would be ineli-
 gible  to  receive service credit in any public retirement system within
 the State, including NYCERS, for the same period of time.
   FINANCIAL  IMPACT  -  ACTUARIAL PRESENT VALUES: With respect to NYCERS
 and based on the actuarial assumptions and methods described herein, the
 enactment of this proposed  legislation  would  increase  the  Actuarial
 Present  Value  (APV) of Benefits (APVB) by approximately $1,180,000. In
 addition, there would be an increase  in  the  APV  of  Future  Employer
 Contributions of $1,186,000.
   FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
 the  Administrative  Code  of  the  City  of  New  York  (ACNY)  Section
 13.638.2(k-2),  new UAAL attributable to benefit changes are to be amor-
 tized as determined by the Actuary  but  generally  over  the  remaining
 working lifetime of the Transit Authority members that would be impacted
 by the proposed legislation is approximately 13 years.
   With  respect to NYCERS based on the actuarial assumptions and methods
 used in the Preliminary June 30, 2016 valuations of NYCERS,  the  enact-
 ment  of  this  proposed  legislation  would  increase  annual  employer
 contributions by approximately $160,000 per  year  beginning  in  Fiscal
 Year 2019.
   OTHER  COSTS:  Not measured in this Fiscal Note are the initial, addi-
 tional administrative costs of NYCERS and other New York  City  agencies
 to implement the proposed legislation.
   CENSUS  DATA:  The  starting  census  data  used  for the calculations
 presented herein is the census data used in  the  Preliminary  June  30,
 2016  (Lag) actuarial valuation of NYCERS. This data was supplemented by
 additional service data provided by NYCERS  for  156  Transit  Authority
 employees  who  would  benefit under the proposed legislation. These 156
 members had an average age of approximately  46.7,  average  service  of
 approximately  10.3  years  (11.1  years  after  reflecting  purchase of
 furlough time if the proposed legislation is enacted),  and  an  average
 salary of approximately $68,000.
   ACTUARIAL  ASSUMPTIONS  AND  METHODS: The additional employer contrib-
 utions presented herein have been  calculated  based  on  the  actuarial
 assumptions  and  methods  in  effect  for the Preliminary June 30, 2016
 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year
 2018 employer contributions of NYCERS.
   Employer contributions under current methodology have  been  estimated
 assuming  the  additional  APVB  would be financed through future normal
 contributions including an amortization of the new UAAL attributable  to
 this  proposed  legislation over a 13-year period (12 payments under the
 One-Year Lag Methodology).
   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 2017-15 dated May 9, 2017
 was prepared by the Chief Actuary for  5the  New  York  City  Employees'
 Retirement  System.  This  estimate  is intended for use only during the
 2017 Legislative Session.