S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6573--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 5, 2017
                                ___________
 
 Introduced  by  Sens. GOLDEN, BONACIC -- read twice and ordered printed,
   and when printed to be committed to the Committee on Rules  --  recom-
   mitted  to  the  Committee on Civil Service and Pensions in accordance
   with Senate Rule 6, sec. 8  --  committee  discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee

 AN  ACT to amend the retirement and social security law and the adminis-
   trative code of the city of New York, in relation to the establishment
   of twenty-five year retirement programs for members of  the  New  York
   city employees' retirement system employed as water supply police; and
   in  relation to providing for employer pick up, pursuant to provisions
   of the internal revenue code, of certain  additional  member  contrib-
   utions  required to be made by certain participants in the twenty-five
   year retirement programs; and providing  for  the  repeal  of  certain
   provisions upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision b of section 440 of the retirement  and  social
 security  law, as amended by chapter 682 of the laws of 2003, is amended
 to read as follows:
   b. The provisions of this article shall not  be  construed  to  extend
 coverage  to  an  employee  not  otherwise  eligible for membership in a
 retirement system or to provide an increase in benefits to a member of a
 retirement system other than as provided by section four hundred  forty-
 five-d,  or section four hundred forty-five-f, [or] section four hundred
 forty-five-h, SECTION FOUR HUNDRED FORTY-FIVE-J, or section four hundred
 forty-eight of this article.
   § 2. Subdivision a of section 444 of the retirement and social securi-
 ty law, as amended by section 141 of subpart B of part C of  chapter  62
 of the laws of 2011, is amended to read as follows:
   a.  Except as provided in subdivision c of section four hundred forty-
 five-a of this article, subdivision c of  section  four  hundred  forty-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11156-04-8

 S. 6573--A                          2
 
 five-b  of  this  article,  subdivision c of section four hundred forty-
 five-c  of  this  article,  subdivision  c  of  section   four   hundred
 forty-five-d  of  this article as added by chapter four hundred seventy-
 two  of  the  laws  of  nineteen  hundred  ninety-five, subdivision c of
 section four hundred forty-five-e of  this  article,  subdivision  c  of
 section  four  hundred forty-five-f of this article and subdivision c of
 section four hundred forty-five-h of this article, AND SUBDIVISION C  OF
 SECTION  FOUR  HUNDRED FORTY-FIVE-J OF THIS ARTICLE, the maximum retire-
 ment benefit computed without optional modification provided to a member
 of a retirement system who is subject to the provisions of this article,
 other than a police officer, a firefighter, an  investigator  member  of
 the  New  York  city  employees'  retirement  system,  a  member  of the
 uniformed personnel in institutions under the jurisdiction  of  the  New
 York  city  department  of correction who receives a performance of duty
 disability retirement allowance, a member of the uniformed personnel  in
 institutions under the jurisdiction of the department of corrections and
 community  supervision  or  a  security hospital treatment assistant, as
 those terms are defined in subdivision i of section eighty-nine of  this
 chapter, who receives a performance of duty disability retirement allow-
 ance,  a  member of a teachers' retirement system, New York city employ-
 ees' retirement system, New York  city  board  of  education  retirement
 system or a member of the New York state and local employees' retirement
 system  or a member of the New York city employees' retirement system or
 New York city board of education retirement system employed as a special
 officer, parking control specialist, school safety agent,  campus  peace
 officer,  taxi  and  limousine  inspector  [or], a police communications
 member, OR A MEMBER OF THE  WATER  SUPPLY  POLICE  and  who  receives  a
 performance  of  duty  disability  pension,  from funds other than those
 based on a member's own or increased-take-home-pay contributions, shall,
 before any reduction for early retirement, be sixty per  centum  of  the
 first  fifteen  thousand  three hundred dollars of final average salary,
 and fifty per centum of final average salary in excess of fifteen  thou-
 sand three hundred dollars, and forty per centum of final average salary
 in  excess  of  twenty-seven  thousand  three hundred dollars, provided,
 however, that the benefits provided by subdivision  c  of  section  four
 hundred  forty-five-d  of  this article as added by chapter four hundred
 seventy-two of the laws of nineteen hundred ninety-five based  upon  the
 additional  member  contributions  required  by  subdivision  d  of such
 section four hundred  forty-five-d  shall  be  subject  to  the  maximum
 retirement  benefit  computations set forth in this section. The maximum
 retirement benefit computed without optional modification payable  to  a
 police  officer,  an investigator member of the New York city employees'
 retirement system  or  a  firefighter  shall  equal  that  payable  upon
 completion  of  thirty years of service, except that the maximum service
 retirement benefit computed without optional  modification  shall  equal
 that payable upon completion of thirty-two years of service.
   § 3. Subdivision a of section 445 of the retirement and social securi-
 ty  law,  as  amended  by chapter 295 of the laws of 2007, is amended to
 read as follows:
   a. No member of a retirement system who is subject to  the  provisions
 of this article shall retire without regard to age, exclusive of retire-
 ment for disability, unless he is a policeman, an investigator member of
 the  New  York  city  employees'  retirement system, fireman, correction
 officer, a qualifying member as defined  in  section  eighty-nine-t,  as
 added by chapter six hundred fifty-seven of the laws of nineteen hundred
 ninety-eight,  of  this  chapter,  sanitation  man,  a  special  officer

 S. 6573--A                          3
 
 (including persons employed by the city of New York in the  title  urban
 park ranger or associate urban park ranger), school safety agent, campus
 peace officer or a taxi and limousine commission inspector member of the
 New York city employees' retirement system or the New York city board of
 education  retirement  system,  a dispatcher member of the New York city
 employees' retirement system, a police communications member of the  New
 York  city  employees'  retirement  system, A MEMBER OF THE WATER SUPPLY
 POLICE IN A POSITION REFERRED TO IN PARAGRAPH (O) OF  SUBDIVISION  THIR-
 TY-FOUR  OF SECTION 1.20 OF THE CRIMINAL PROCEDURE LAW, an EMT member of
 the New York city employees' retirement system, a deputy sheriff  member
 of  the New York city employees' retirement system, a correction officer
 of the Westchester county correction department as  defined  in  section
 eighty-nine-e  of  this chapter or employed in Suffolk county as a peace
 officer, as defined in section eighty-nine-s, as added by  chapter  five
 hundred  eighty-eight  of  the laws of nineteen hundred ninety-seven, of
 this chapter, employed in Suffolk county as  a  correction  officer,  as
 defined  in section eighty-nine-f of this chapter, or employed in Nassau
 county as a correction officer, uniformed correction division personnel,
 sheriff, undersheriff or deputy sheriff, as defined in  section  eighty-
 nine-g  of  this  chapter,  or employed in Nassau county as an ambulance
 medical technician, an  ambulance  medical  technician/supervisor  or  a
 member  who  performs  ambulance medical technician related services, as
 defined in section eighty-nine-s, as amended  by  chapter  five  hundred
 seventy-eight  of  the  laws  of  nineteen hundred ninety-eight, of this
 chapter, or employed in Nassau county as a peace officer, as defined  in
 section  eighty-nine-s,  as added by chapter five hundred ninety-five of
 the laws of nineteen hundred ninety-seven, of this chapter, or  employed
 in  Albany county as a sheriff, undersheriff, deputy sheriff, correction
 officer or identification officer, as defined in  section  eighty-nine-h
 of  this  chapter  or  is  employed in St. Lawrence county as a sheriff,
 undersheriff, deputy  sheriff  or  correction  officer,  as  defined  in
 section  eighty-nine-i  of this chapter or is employed in Orleans county
 as a sheriff, undersheriff, deputy sheriff  or  correction  officer,  as
 defined  in  section  eighty-nine-l  of  this  chapter or is employed in
 Jefferson  county  as  a  sheriff,  undersheriff,  deputy   sheriff   or
 correction  officer, as defined in section eighty-nine-j of this chapter
 or is employed in Onondaga county  as  a  deputy  sheriff-jail  division
 competitively  appointed  or  as  a  correction  officer,  as defined in
 section eighty-nine-k of this chapter or is employed in a  county  which
 makes  an  election under subdivision j of section eighty-nine-p of this
 chapter as a sheriff, undersheriff, deputy sheriff or correction officer
 as defined in such section eighty-nine-p or is employed in Broome County
 as a sheriff, undersheriff, deputy sheriff  or  correction  officer,  as
 defined  in  section eighty-nine-m of this chapter or is a Monroe county
 deputy sheriff-court security, or deputy sheriff-jailor  as  defined  in
 section  eighty-nine-n, as added by chapter five hundred ninety-seven of
 the laws of nineteen hundred ninety-one, of this chapter or is  employed
 in   Greene  county  as  a  sheriff,  undersheriff,  deputy  sheriff  or
 correction officer, as defined in section eighty-nine-o of this  chapter
 or  is  a  traffic officer with the town of Elmira as defined in section
 eighty-nine-q of this chapter or is employed by Suffolk county as a park
 police officer, as defined in section eighty-nine-r of this  chapter  or
 is  a peace officer employed by a county probation department as defined
 in section eighty-nine-t, as added by chapter six hundred three  of  the
 laws of nineteen hundred ninety-eight, of this chapter or is employed in
 Rockland  county as a deputy sheriff-civil as defined in section eighty-

 S. 6573--A                          4

 nine-v of this chapter as added by chapter four hundred forty-one of the
 laws of two thousand one, or is employed in Rockland county as a superi-
 or correction officer as defined in section eighty-nine-v of this  chap-
 ter  as added by chapter five hundred fifty-six of the laws of two thou-
 sand one or is a paramedic employed by the police department in the town
 of Tonawanda and retires under the provisions of  section  eighty-nine-v
 of  this  chapter,  as  added by chapter four hundred seventy-two of the
 laws of two thousand one, or is a county fire marshal, supervising  fire
 marshal,  fire  marshal,  assistant  fire  marshal, assistant chief fire
 marshal or chief fire marshal  employed  by  the  county  of  Nassau  as
 defined  in section eighty-nine-w of this chapter and is in a plan which
 permits immediate retirement upon completion of a  specified  period  of
 service  without  regard  to age. Except as provided in subdivision c of
 section four hundred forty-five-a of  this  article,  subdivision  c  of
 section  four  hundred  forty-five-b  of  this article, subdivision c of
 section four hundred forty-five-c of  this  article,  subdivision  c  of
 section  four  hundred  forty-five-d  of  this article, subdivision c of
 section four hundred forty-five-e of  this  article,  subdivision  c  of
 section  four  hundred forty-five-f of this article [and], subdivision c
 of section four hundred forty-five-h of this article, AND SUBDIVISION  C
 OF SECTION FOUR HUNDRED FORTY-FIVE-J OF THIS ARTICLE, a member in such a
 plan  and  such  an  occupation,  other than a policeman or investigator
 member of the New York city employees' retirement system or  a  fireman,
 shall  not be permitted to retire prior to the completion of twenty-five
 years of credited service; provided, however, if such a member  in  such
 an  occupation  is in a plan which permits retirement upon completion of
 twenty years of service regardless of age, he may retire upon completion
 of twenty years of credited service and prior to the completion of twen-
 ty-five years of service, but in such event the  benefit  provided  from
 funds  other than those based on such a member's own contributions shall
 not exceed two per centum of final average salary per each year of cred-
 ited service.
   § 4. The retirement and social security law is amended by adding a new
 section 445-j to read as follows:
   § 445-J. OPTIONAL TWENTY-FIVE YEAR IMPROVED BENEFIT RETIREMENT PROGRAM
 FOR WATER SUPPLY POLICE MEMBERS. A. DEFINITIONS. THE FOLLOWING WORDS AND
 PHRASES AS USED IN THIS SECTION SHALL HAVE THE FOLLOWING MEANINGS UNLESS
 A DIFFERENT MEANING IS PLAINLY REQUIRED BY THE CONTEXT.
   1. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK CITY EMPLOYEES' RETIRE-
 MENT SYSTEM.
   2. "WATER SUPPLY POLICE MEMBER" SHALL MEAN A MEMBER OF THE  RETIREMENT
 SYSTEM WHO IS SUBJECT TO THE PROVISIONS OF THIS ARTICLE, WHO IS EMPLOYED
 BY  THE  CITY  OF NEW YORK IN A POSITION REFERRED TO BY PARAGRAPH (O) OF
 SUBDIVISION THIRTY-FOUR OF SECTION 1.20 OF THE CRIMINAL PROCEDURE LAW.
   3. "TWENTY-FIVE YEAR IMPROVED BENEFIT RETIREMENT PROGRAM"  SHALL  MEAN
 ALL THE TERMS AND CONDITIONS OF THIS SECTION.
   4.  "STARTING DATE OF THE TWENTY-FIVE YEAR IMPROVED BENEFIT RETIREMENT
 PROGRAM" SHALL MEAN THE EFFECTIVE DATE OF THIS SECTION, AS SUCH DATE  IS
 CERTIFIED PURSUANT TO SECTION FORTY-ONE OF THE LEGISLATIVE LAW.
   5.  "PARTICIPANT  IN  THE TWENTY-FIVE YEAR IMPROVED BENEFIT RETIREMENT
 PROGRAM" SHALL MEAN ANY WATER SUPPLY POLICE MEMBER WHO, UNDER THE APPLI-
 CABLE PROVISIONS OF SUBDIVISION B OF THIS SECTION, IS  ENTITLED  TO  THE
 RIGHTS, BENEFITS AND PRIVILEGES AND IS SUBJECT TO THE OBLIGATIONS OF THE
 TWENTY-FIVE  YEAR  IMPROVED BENEFIT RETIREMENT PROGRAM, AS APPLICABLE TO
 HIM OR HER.

 S. 6573--A                          5
 
   6. "ADMINISTRATIVE CODE" SHALL MEAN THE  ADMINISTRATIVE  CODE  OF  THE
 CITY OF NEW YORK.
   7.  "ACCUMULATED  DEDUCTIONS"  SHALL  MEAN  ACCUMULATED  DEDUCTIONS AS
 DEFINED IN SUBDIVISION ELEVEN OF SECTION 13-101  OF  THE  ADMINISTRATIVE
 CODE.
   8. "OPTIONAL RETIREMENT PROVISIONS" SHALL MEAN THE RIGHT TO RETIRE AND
 RECEIVE A RETIREMENT ALLOWANCE UNDER THIS SECTION UPON THE COMPLETION OF
 TWENTY-FIVE YEARS OF CREDITED SERVICE.
   B.  ELECTION  OF TWENTY-FIVE YEAR IMPROVED BENEFIT RETIREMENT PROGRAM.
 1. SUBJECT TO THE PROVISIONS OF PARAGRAPHS FIVE AND SIX OF THIS SUBDIVI-
 SION, ANY PERSON WHO IS A WATER SUPPLY POLICE  MEMBER  ON  THE  STARTING
 DATE  OF  THE  TWENTY-FIVE  YEAR IMPROVED BENEFIT RETIREMENT PROGRAM MAY
 ELECT TO BECOME A PARTICIPANT IN THE TWENTY-FIVE YEAR  IMPROVED  BENEFIT
 RETIREMENT  PROGRAM BY FILING, WITHIN ONE HUNDRED EIGHTY DAYS AFTER SUCH
 STARTING DATE, A DULY EXECUTED APPLICATION FOR SUCH  PARTICIPATION  WITH
 THE  RETIREMENT SYSTEM, PROVIDED HE OR SHE IS SUCH A WATER SUPPLY POLICE
 MEMBER ON THE DATE SUCH APPLICATION IS FILED.
   2. SUBJECT TO THE PROVISIONS OF PARAGRAPHS FIVE AND SIX OF THIS SUBDI-
 VISION, ANY PERSON WHO BECOMES A WATER SUPPLY POLICE  MEMBER  AFTER  THE
 STARTING  DATE  OF  THE  TWENTY-FIVE  YEAR  IMPROVED  BENEFIT RETIREMENT
 PROGRAM MAY ELECT TO  BECOME  A  PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR
 IMPROVED BENEFIT RETIREMENT PROGRAM BY FILING, WITHIN ONE HUNDRED EIGHTY
 DAYS  AFTER  BECOMING SUCH A WATER SUPPLY POLICE MEMBER, A DULY EXECUTED
 APPLICATION FOR SUCH PARTICIPATION WITH THE RETIREMENT SYSTEM,  PROVIDED
 HE OR SHE IS SUCH A WATER SUPPLY POLICE MEMBER ON THE DATE SUCH APPLICA-
 TION IS FILED.
   3.  ANY  ELECTION TO BE A PARTICIPANT IN THE TWENTY-FIVE YEAR IMPROVED
 BENEFIT RETIREMENT PROGRAM SHALL BE IRREVOCABLE.
   4. WHERE ANY PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  IMPROVED  BENEFIT
 RETIREMENT  PROGRAM  SHALL  CEASE  TO  HOLD A POSITION AS A WATER SUPPLY
 POLICE MEMBER, HE OR SHE SHALL CEASE  TO  BE  SUCH  A  PARTICIPANT  AND,
 DURING  ANY  PERIOD  IN  WHICH  SUCH A PERSON DOES NOT HOLD SUCH A WATER
 SUPPLY POLICE POSITION, HE OR SHE SHALL NOT  BE  A  PARTICIPANT  IN  THE
 TWENTY-FIVE  YEAR  IMPROVED  BENEFIT RETIREMENT PROGRAM AND SHALL NOT BE
 ELIGIBLE FOR THE BENEFITS OF SUBDIVISION C OF THIS SECTION.
   5. WHERE ANY PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  IMPROVED  BENEFIT
 RETIREMENT  PROGRAM  TERMINATES  SERVICE AS A WATER SUPPLY POLICE MEMBER
 AND RETURNS TO SUCH SERVICE AS A WATER SUPPLY POLICE MEMBER AT  A  LATER
 DATE, HE OR SHE SHALL AGAIN BECOME SUCH A PARTICIPANT ON THAT DATE.
   6.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, ANY
 PERSON WHO IS ELIGIBLE TO BECOME A PARTICIPANT IN THE  TWENTY-FIVE  YEAR
 IMPROVED  BENEFIT RETIREMENT PROGRAM PURSUANT TO PARAGRAPH ONE OR TWO OF
 THIS SUBDIVISION FOR THE FULL ONE HUNDRED EIGHTY DAY PERIOD PROVIDED FOR
 IN SUCH APPLICABLE PARAGRAPH  AND  WHO  FAILS  TO  TIMELY  FILE  A  DULY
 EXECUTED  APPLICATION FOR SUCH PARTICIPATION WITH THE RETIREMENT SYSTEM,
 SHALL NOT THEREAFTER  BE  ELIGIBLE  TO  BECOME  A  PARTICIPANT  IN  SUCH
 PROGRAM.
   C. SERVICE RETIREMENT BENEFITS. NOTWITHSTANDING ANY OTHER PROVISION OF
 LAW  TO  THE  CONTRARY,  WHERE  A  PARTICIPANT  IN  THE TWENTY-FIVE YEAR
 IMPROVED BENEFIT RETIREMENT PROGRAM, WHO IS OTHERWISE  QUALIFIED  FOR  A
 RETIREMENT  ALLOWANCE PURSUANT TO THE OPTIONAL RETIREMENT PROVISIONS SET
 FORTH IN SUBDIVISION A OF THIS SECTION, HAS MADE AND/OR PAID,  WHILE  HE
 OR  SHE  IS A WATER SUPPLY POLICE MEMBER, ALL ADDITIONAL MEMBER CONTRIB-
 UTIONS AND INTEREST (IF ANY) REQUIRED BY SUBDIVISION D OF THIS  SECTION,
 THEN:

 S. 6573--A                          6

   1.  THAT PARTICIPANT, WHILE HE OR SHE REMAINS A PARTICIPANT, SHALL NOT
 BE SUBJECT TO THE PROVISIONS OF SUBDIVISION A OF  SECTION  FOUR  HUNDRED
 FORTY-FIVE OF THIS ARTICLE; AND
   2.  IF  THAT  PARTICIPANT,  WHILE  SUCH  A  PARTICIPANT,  RETIRES FROM
 SERVICE, HE OR SHE SHALL NOT BE SUBJECT TO  THE  PROVISIONS  OF  SECTION
 FOUR HUNDRED FORTY-FOUR OF THIS ARTICLE; AND
   3.  HIS  OR HER RETIREMENT ALLOWANCE SHALL BE AN AMOUNT, ON ACCOUNT OF
 THE REQUIRED MINIMUM PERIOD OF SERVICE, EQUAL TO THE SUM OF (I) AN ANNU-
 ITY  WHICH  SHALL  BE  THE  ACTUARIAL  EQUIVALENT  OF  THE   ACCUMULATED
 DEDUCTIONS  FROM  HIS  OR HER PAY DURING SUCH PERIOD, (II) A PENSION FOR
 INCREASED-TAKE-HOME-PAY WHICH SHALL BE THE ACTUARIAL EQUIVALENT  OF  THE
 RESERVE  FOR  INCREASED-TAKE-HOME-PAY TO WHICH HE OR SHE MAY BE ENTITLED
 FOR SUCH PERIOD, AND (III) A PENSION WHICH, WHEN ADDED TO  SUCH  ANNUITY
 AND  SUCH  PENSION  FOR  INCREASED-TAKE-HOME-PAY,  PRODUCES A RETIREMENT
 ALLOWANCE EQUAL TO FIFTY PERCENT OF HIS OR  HER  FINAL  AVERAGE  SALARY,
 PLUS  AN  AMOUNT FOR EACH ADDITIONAL YEAR OF ALLOWABLE SERVICE, OR FRAC-
 TION THEREOF, BEYOND SUCH REQUIRED MINIMUM PERIOD OF  SERVICE  EQUAL  TO
 TWO PERCENT OF HIS OR HER FINAL AVERAGE SALARY; AND
   4.  THE MAXIMUM RETIREMENT BENEFIT COMPUTED WITHOUT OPTIONAL MODIFICA-
 TION PAYABLE TO THAT PARTICIPANT UPON HIS OR HER RETIREMENT FOR  SERVICE
 AS SUCH A PARTICIPANT SHALL EQUAL THAT PAYABLE UPON COMPLETION OF THIRTY
 YEARS OF SERVICE.
   D.  ADDITIONAL  MEMBER  CONTRIBUTIONS.  1.  IN  ADDITION TO THE MEMBER
 CONTRIBUTIONS REQUIRED PURSUANT TO SECTION 13-125 OR SECTION  13-162  OF
 THE  ADMINISTRATIVE  CODE,  EACH  PARTICIPANT  IN  THE  TWENTY-FIVE YEAR
 IMPROVED BENEFIT RETIREMENT PROGRAM SHALL  CONTRIBUTE,  SUBJECT  TO  THE
 APPLICABLE PROVISIONS OF SECTION 13-125.2 OF THE ADMINISTRATIVE CODE, AN
 ADDITIONAL  SIX  PERCENT  OF HIS OR HER COMPENSATION EARNED FROM (I) ALL
 CREDITED SERVICE, AS A PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR  IMPROVED
 BENEFIT  RETIREMENT  PROGRAM, RENDERED ON AND AFTER THE STARTING DATE OF
 THE IMPROVED BENEFIT RETIREMENT PROGRAM, AND (II) ALL  CREDITED  SERVICE
 AFTER SUCH PERSON CEASES TO BE A PARTICIPANT, BUT BEFORE HE OR SHE AGAIN
 BECOMES  A  PARTICIPANT  PURSUANT  TO PARAGRAPH FIVE OF SUBDIVISION B OF
 THIS SECTION. A PARTICIPANT IN THE  TWENTY-FIVE  YEAR  IMPROVED  BENEFIT
 RETIREMENT  PROGRAM  SHALL  CONTRIBUTE  ADDITIONAL  MEMBER CONTRIBUTIONS
 UNTIL THE LATER OF (I) THE DATE AS OF WHICH HE OR  SHE  IS  ELIGIBLE  TO
 RETIRE  WITH TWENTY-FIVE YEARS OF CREDITED SERVICE UNDER SUCH RETIREMENT
 PROGRAM, OR (II) THE FIRST ANNIVERSARY OF THE STARTING DATE OF THE TWEN-
 TY-FIVE  YEAR  IMPROVED  BENEFIT  RETIREMENT  PROGRAM.  THE   ADDITIONAL
 CONTRIBUTIONS  REQUIRED BY THIS PARAGRAPH SHALL BE IN LIEU OF ADDITIONAL
 MEMBER CONTRIBUTIONS REQUIRED BY SUBDIVISION D OF SECTION  FOUR  HUNDRED
 FORTY-FIVE-D OF THIS ARTICLE, AS ADDED BY CHAPTER NINETY-SIX OF THE LAWS
 OF  NINETEEN  HUNDRED  NINETY-FIVE,  AND  NO  MEMBER  PAYING  ADDITIONAL
 CONTRIBUTIONS PURSUANT TO THIS SECTION SHALL BE REQUIRED  TO  PAY  ADDI-
 TIONAL  CONTRIBUTIONS  PURSUANT  TO  SUCH  SUBDIVISION D OF SECTION FOUR
 HUNDRED FORTY-FIVE-D OF THIS ARTICLE.
   2. COMMENCING WITH THE FIRST FULL PAYROLL  PERIOD  AFTER  EACH  PERSON
 BECOMES  A  PARTICIPANT IN THE TWENTY-FIVE YEAR IMPROVED BENEFIT RETIRE-
 MENT PROGRAM, ADDITIONAL MEMBER CONTRIBUTIONS AT THE RATE  SPECIFIED  IN
 PARAGRAPH  ONE  OF  THIS  SUBDIVISION  SHALL BE DEDUCTED, SUBJECT TO THE
 APPLICABLE PROVISIONS OF SECTION 13-125.2 OF  THE  ADMINISTRATIVE  CODE,
 FROM  THE  COMPENSATION OF SUCH PARTICIPANT ON EACH AND EVERY PAYROLL OF
 SUCH PARTICIPANT FOR EACH AND EVERY PAYROLL PERIOD FOR WHICH HE  OR  SHE
 IS SUCH A PARTICIPANT.
   3.  (I)  SUBJECT  TO THE PROVISIONS OF SUBPARAGRAPH (II) OF THIS PARA-
 GRAPH, WHERE ANY ADDITIONAL MEMBER CONTRIBUTIONS REQUIRED  BY  PARAGRAPH

 S. 6573--A                          7
 
 ONE  OF THIS SUBDIVISION ARE NOT PAID BY DEDUCTIONS FROM A PARTICIPANT'S
 COMPENSATION PURSUANT TO PARAGRAPH TWO OF THIS SUBDIVISION:
   (A)  THAT  PARTICIPANT SHALL BE CHARGED WITH A CONTRIBUTION DEFICIENCY
 CONSISTING OF SUCH  UNPAID  AMOUNTS,  TOGETHER  WITH  INTEREST  THEREON,
 COMPOUNDED ANNUALLY; AND
   (B)  SUCH  INTEREST  ON  EACH AMOUNT OF UNDEDUCTED CONTRIBUTIONS SHALL
 ACCRUE FROM THE END OF THE PAYROLL PERIOD FOR WHICH  SUCH  AMOUNT  WOULD
 HAVE BEEN DEDUCTED FROM COMPENSATION IF HE OR SHE HAD BEEN A PARTICIPANT
 AT  THE  BEGINNING  OF  THAT PAYROLL PERIOD AND SUCH DEDUCTIONS HAD BEEN
 REQUIRED FOR SUCH PAYROLL PERIOD  UNTIL  SUCH  AMOUNT  IS  PAID  TO  THE
 RETIREMENT SYSTEM; AND
   (C)  (1)INTEREST  ON  EACH  SUCH AMOUNT INCLUDED IN SUCH PARTICIPANT'S
 CONTRIBUTION DEFICIENCY PURSUANT TO THIS SUBPARAGRAPH  SHALL  BE  CALCU-
 LATED  AS IF SUCH ADDITIONAL MEMBER CONTRIBUTIONS NEVER HAD BEEN PAID BY
 SUCH PARTICIPANT, AND SUCH INTEREST SHALL ACCRUE FROM  THE  END  OF  THE
 PAYROLL  PERIOD  TO  WHICH  AN AMOUNT OF SUCH ADDITIONAL MEMBER CONTRIB-
 UTIONS IS ATTRIBUTABLE, COMPOUNDED ANNUALLY, UNTIL SUCH AMOUNT  IS  PAID
 TO THE RETIREMENT SYSTEM.
   (2)  THE RATE OF INTEREST TO BE APPLIED TO EACH SUCH AMOUNT DURING THE
 PERIOD FOR WHICH INTEREST ACCRUES ON THAT AMOUNT SHALL BE EQUAL  TO  THE
 RATE  OR  RATES  OF INTEREST REQUIRED BY LAW TO BE USED DURING THAT SAME
 PERIOD TO CREDIT INTEREST ON THE ACCUMULATED  DEDUCTIONS  OF  RETIREMENT
 SYSTEM MEMBERS.
   (II)  EXCEPT  AS  PROVIDED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, NO
 INTEREST SHALL BE DUE ON ANY UNPAID ADDITIONAL CONTRIBUTIONS  WHICH  ARE
 NOT  ATTRIBUTABLE  TO  THE PERIOD PRIOR TO THE FIRST FULL PAYROLL PERIOD
 REFERRED TO IN PARAGRAPH TWO OF THIS SUBDIVISION.
   (III) SHOULD ANY PERSON WHO,  PURSUANT  TO  PARAGRAPH  SEVEN  OF  THIS
 SUBDIVISION,  HAS WITHDRAWN ANY ADDITIONAL MEMBER CONTRIBUTIONS (AND ANY
 INTEREST PAID THEREON) AGAIN BECOME A  PARTICIPANT  IN  THE  TWENTY-FIVE
 YEAR  IMPROVED  BENEFIT RETIREMENT PROGRAM PURSUANT TO PARAGRAPH FIVE OF
 SUBDIVISION B OF THIS SECTION, AN APPROPRIATE AMOUNT SHALL  BE  INCLUDED
 IN SUCH PARTICIPANT'S CONTRIBUTION DEFICIENCY (INCLUDING INTEREST THERE-
 ON AS CALCULATED PURSUANT TO SUBCLAUSE TWO OF CLAUSE (C) OF SUBPARAGRAPH
 (I)  OF  THIS  PARAGRAPH) FOR ANY CREDITED SERVICE WITH RESPECT TO WHICH
 SUCH  PERSON  RECEIVED  A  REFUND  OF  ADDITIONAL  MEMBER  CONTRIBUTIONS
 (INCLUDING  ANY  AMOUNT  OF  AN  UNPAID LOAN BALANCE DEEMED TO HAVE BEEN
 RETURNED TO SUCH PERSON PURSUANT TO PARAGRAPH  SEVEN  OF  THIS  SUBDIVI-
 SION), AS IF SUCH ADDITIONAL MEMBER CONTRIBUTIONS NEVER HAD BEEN PAID.
   4. THE BOARD OF TRUSTEES OF THE RETIREMENT SYSTEM MAY, CONSISTENT WITH
 THE  PROVISIONS  OF  THIS  SUBDIVISION,  PROMULGATE  REGULATIONS FOR THE
 PAYMENT OF THE ADDITIONAL MEMBER CONTRIBUTIONS REQUIRED BY THIS SUBDIVI-
 SION, AND ANY INTEREST THEREON, BY A PARTICIPANT IN THE TWENTY-FIVE YEAR
 IMPROVED BENEFIT RETIREMENT PROGRAM (INCLUDING  THE  DEDUCTION  OF  SUCH
 CONTRIBUTIONS, AND ANY INTEREST THEREON, FROM HIS OR HER COMPENSATION).
   5.  WHERE  A PARTICIPANT WHO IS OTHERWISE ELIGIBLE FOR SERVICE RETIRE-
 MENT PURSUANT TO SUBDIVISION C OF THIS SECTION DID  NOT,  PRIOR  TO  THE
 EFFECTIVE  DATE  OF  RETIREMENT, PAY THE ENTIRE AMOUNT OF A CONTRIBUTION
 DEFICIENCY CHARGEABLE TO HIM OR HER PURSUANT TO PARAGRAPH THREE OF  THIS
 SUBDIVISION,  OR  REPAY  THE ENTIRE AMOUNT OF A LOAN OF HIS OR HER ADDI-
 TIONAL MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH EIGHT OF THIS SUBDIVI-
 SION (INCLUDING ACCRUED INTEREST ON SUCH LOAN), THAT PARTICIPANT, NEVER-
 THELESS, SHALL BE ELIGIBLE TO RETIRE PURSUANT TO SUBDIVISION C  OF  THIS
 SECTION,  PROVIDED, HOWEVER, THAT WHERE SUCH PARTICIPANT IS NOT ENTITLED
 TO A REFUND OF ADDITIONAL MEMBER  CONTRIBUTIONS  PURSUANT  TO  PARAGRAPH
 SEVEN OF THIS SUBDIVISION, SUCH PARTICIPANT'S SERVICE RETIREMENT BENEFIT

 S. 6573--A                          8
 
 CALCULATED  PURSUANT  TO  THE  APPLICABLE PROVISIONS OF SUBDIVISION C OF
 THIS SECTION SHALL BE REDUCED BY A LIFE ANNUITY (CALCULATED  IN  ACCORD-
 ANCE  WITH  THE METHOD SET FORTH IN SUBDIVISION I OF SECTION SIX HUNDRED
 THIRTEEN-B OF THIS CHAPTER) WHICH IS ACTUARIALLY EQUIVALENT TO:
   (I)  THE  AMOUNT  OF  ANY UNPAID CONTRIBUTION DEFICIENCY CHARGEABLE TO
 SUCH MEMBER PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION; PLUS
   (II) THE AMOUNT OF ANY UNPAID BALANCE OF A LOAN OF HIS  OR  HER  ADDI-
 TIONAL MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH EIGHT OF THIS SUBDIVI-
 SION (INCLUDING ACCRUED INTEREST ON SUCH LOAN).
   6.  SUBJECT  TO  THE PROVISIONS OF PARAGRAPH FIVE OF THIS SUBDIVISION,
 WHERE A PARTICIPANT HAS NOT PAID IN  FULL  ANY  CONTRIBUTION  DEFICIENCY
 CHARGEABLE  TO  HIM  OR HER PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVI-
 SION, AND A BENEFIT, OTHER THAN  A  REFUND  OF  A  MEMBER'S  ACCUMULATED
 DEDUCTIONS  OR  A  REFUND OF ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO
 PARAGRAPH SEVEN OF THIS SUBDIVISION, BECOMES PAYABLE BY  THE  RETIREMENT
 SYSTEM  TO  THE  PARTICIPANT  OR TO HIS OR HER DESIGNATED BENEFICIARY OR
 ESTATE, THE ACTUARIAL EQUIVALENT OF ANY  SUCH  UNPAID  AMOUNT  SHALL  BE
 DEDUCTED FROM THE BENEFIT OTHERWISE PAYABLE.
   7.  (I)  ALL ADDITIONAL MEMBER CONTRIBUTIONS REQUIRED BY THIS SUBDIVI-
 SION (AND ANY INTEREST THEREON) WHICH ARE  RECEIVED  BY  THE  RETIREMENT
 SYSTEM  SHALL  BE PAID INTO ITS CONTINGENT RESERVE FUND AND SHALL BE THE
 PROPERTY OF THE RETIREMENT SYSTEM. SUCH ADDITIONAL MEMBER  CONTRIBUTIONS
 (AND  ANY  INTEREST  THEREON)  SHALL NOT FOR ANY PURPOSE BE DEEMED TO BE
 MEMBER CONTRIBUTIONS OR  ACCUMULATED  DEDUCTIONS  OF  A  MEMBER  OF  THE
 RETIREMENT SYSTEM UNDER SECTION 13-125 OR SECTION 13-162 OF THE ADMINIS-
 TRATIVE  CODE  WHILE  HE OR SHE IS A PARTICIPANT IN THE TWENTY-FIVE YEAR
 IMPROVED BENEFIT RETIREMENT PROGRAM OR OTHERWISE.
   (II) SHOULD A PARTICIPANT IN THE  TWENTY-FIVE  YEAR  IMPROVED  BENEFIT
 RETIREMENT  PROGRAM,  WHO  HAS RENDERED LESS THAN FIVE YEARS OF CREDITED
 SERVICE CEASE TO HOLD A POSITION AS A WATER SUPPLY POLICE MEMBER FOR ANY
 REASON WHATSOEVER, HIS OR HER  ACCUMULATED  ADDITIONAL  MEMBER  CONTRIB-
 UTIONS  MADE  PURSUANT  TO  THIS SUBDIVISION (TOGETHER WITH ANY INTEREST
 THEREON PAID TO THE RETIREMENT SYSTEM) WHICH  REMAIN  CREDITED  TO  SUCH
 PARTICIPANT'S  ACCOUNT MAY BE WITHDRAWN BY HIM OR HER PURSUANT TO PROCE-
 DURES PROMULGATED IN REGULATIONS OF THE BOARD OF TRUSTEES OF THE RETIRE-
 MENT SYSTEM, TOGETHER WITH INTEREST THEREON  AT  THE  RATE  OF  INTEREST
 REQUIRED  BY  LAW  TO  BE  USED  TO  CREDIT  INTEREST ON THE ACCUMULATED
 DEDUCTIONS OF RETIREMENT SYSTEM MEMBERS COMPOUNDED ANNUALLY.
   (III) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  (A)
 NO  PERSON SHALL BE PERMITTED TO WITHDRAW FROM THE RETIREMENT SYSTEM ANY
 ADDITIONAL MEMBER CONTRIBUTIONS PAID PURSUANT TO THIS SUBDIVISION OR ANY
 INTEREST PAID THEREON, EXCEPT PURSUANT TO AND  IN  ACCORDANCE  WITH  THE
 PRECEDING  SUBPARAGRAPHS  OF THIS PARAGRAPH; AND (B) NO PERSON, WHILE HE
 OR SHE IS A PARTICIPANT IN THE TWENTY-FIVE YEAR IMPROVED BENEFIT RETIRE-
 MENT PROGRAM, SHALL BE PERMITTED TO WITHDRAW ANY SUCH ADDITIONAL  MEMBER
 CONTRIBUTIONS  OR  ANY  INTEREST  PAID  THEREON  PURSUANT  TO ANY OF THE
 PRECEDING SUBPARAGRAPHS OF THIS PARAGRAPH OR OTHERWISE.
   8. A PARTICIPANT IN THE TWENTY-FIVE YEAR IMPROVED  BENEFIT  RETIREMENT
 PROGRAM  SHALL  BE PERMITTED TO BORROW FROM HIS OR HER ADDITIONAL MEMBER
 CONTRIBUTIONS, INCLUDING ANY INTEREST PAID THEREON, WHICH  ARE  CREDITED
 TO THE ADDITIONAL CONTRIBUTIONS ACCOUNT ESTABLISHED FOR SUCH PARTICIPANT
 IN  THE CONTINGENT RESERVE FUND OF THE RETIREMENT SYSTEM.  THE BORROWING
 FROM SUCH ADDITIONAL MEMBER CONTRIBUTIONS  PURSUANT  TO  THIS  PARAGRAPH
 SHALL BE GOVERNED BY THE SAME RIGHTS, PRIVILEGES, OBLIGATIONS AND PROCE-
 DURES  SET FORTH IN SECTION SIX HUNDRED THIRTEEN-B OF THIS CHAPTER WHICH
 GOVERN THE BORROWING BY MEMBERS SUBJECT TO ARTICLE FIFTEEN OF THIS CHAP-

 S. 6573--A                          9
 
 TER OF MEMBER CONTRIBUTIONS MADE PURSUANT TO SECTION SIX  HUNDRED  THIR-
 TEEN  OF  THIS  CHAPTER.  THE BOARD OF TRUSTEES OF THE RETIREMENT SYSTEM
 MAY,  CONSISTENT  WITH  THE  PROVISIONS  OF  THIS  SUBDIVISION  AND  THE
 PROVISIONS  OF  SECTION  SIX  HUNDRED THIRTEEN-B OF THIS CHAPTER AS MADE
 APPLICABLE TO THIS SUBDIVISION,  PROMULGATE  REGULATIONS  GOVERNING  THE
 BORROWING OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS.
   9.  WHEREVER  A  PERSON  HAS AN UNPAID BALANCE OF A LOAN OF HIS OR HER
 ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT  TO  PARAGRAPH  EIGHT  OF  THIS
 SUBDIVISION AT THE TIME HE OR SHE BECOMES ENTITLED TO A REFUND OF HIS OR
 HER  ADDITIONAL  MEMBER  CONTRIBUTIONS  PURSUANT TO SUBPARAGRAPH (II) OF
 PARAGRAPH SEVEN OF THIS SUBDIVISION, THE  AMOUNT  OF  SUCH  UNPAID  LOAN
 BALANCE  (INCLUDING  ACCRUED  INTEREST)  SHALL  BE  DEEMED  TO HAVE BEEN
 RETURNED TO SUCH MEMBER, AND THE REFUND OF SUCH ADDITIONAL CONTRIBUTIONS
 SHALL BE THE NET AMOUNT OF SUCH CONTRIBUTIONS,  TOGETHER  WITH  INTEREST
 THEREON IN ACCORDANCE WITH THE PROVISIONS OF SUCH SUBPARAGRAPH.
   10.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, THE
 PROVISIONS OF SECTION ONE HUNDRED THIRTY-EIGHT-B OF THIS  CHAPTER  SHALL
 NOT  BE  APPLICABLE  TO  THE  ADDITIONAL  MEMBER CONTRIBUTIONS WHICH ARE
 REQUIRED BY THIS SUBDIVISION.
   11. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  THE
 ADDITIONAL  MEMBER  CONTRIBUTIONS WHICH ARE REQUIRED BY THIS SUBDIVISION
 SHALL NOT BE REDUCED UNDER ANY PROGRAM FOR INCREASED-TAKE-HOME-PAY.
   § 5. The retirement and social security law is amended by adding a new
 section 604-j to read as follows:
   § 604-J. TWENTY-FIVE YEAR RETIREMENT PROGRAM FOR WATER  SUPPLY  POLICE
 MEMBERS.  A.    DEFINITIONS.  THE FOLLOWING WORDS AND PHRASES AS USED IN
 THIS SECTION SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT  MEAN-
 ING IS PLAINLY REQUIRED BY THE CONTEXT.
   1.  "WATER SUPPLY POLICE MEMBER" SHALL MEAN A MEMBER OF THE RETIREMENT
 SYSTEM WHO IS EMPLOYED BY THE CITY OF NEW YORK IN A POSITION REFERRED TO
 BY PARAGRAPH (O) OF SUBDIVISION THIRTY-FOUR OF SECTION 1.20 OF THE CRIM-
 INAL PROCEDURE LAW.
   2. "TWENTY-FIVE YEAR RETIREMENT PROGRAM" SHALL MEAN ALL THE TERMS  AND
 CONDITIONS OF THIS SECTION.
   3.  "STARTING  DATE  OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM" SHALL
 MEAN THE EFFECTIVE DATE OF THIS  SECTION,  AS  SUCH  DATE  IS  CERTIFIED
 PURSUANT TO SECTION FORTY-ONE OF THE LEGISLATIVE LAW.
   4. "PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM" SHALL MEAN
 ANY  WATER  SUPPLY POLICE MEMBER WHO, UNDER THE APPLICABLE PROVISIONS OF
 SUBDIVISION B OF THIS SECTION, IS ENTITLED TO THE RIGHTS,  BENEFITS  AND
 PRIVILEGES  AND  IS  SUBJECT  TO THE OBLIGATIONS OF THE TWENTY-FIVE YEAR
 RETIREMENT PROGRAM, AS APPLICABLE TO HIM OR HER.
   5. "DISCONTINUED MEMBER" SHALL MEAN A PARTICIPANT IN  THE  TWENTY-FIVE
 YEAR  RETIREMENT  PROGRAM WHO, WHILE HE OR SHE WAS A WATER SUPPLY POLICE
 MEMBER, DISCONTINUED SERVICE AS SUCH A MEMBER  AND  HAS  A  RIGHT  TO  A
 DEFERRED VESTED BENEFIT UNDER SUBDIVISION D OF THIS SECTION.
   6.  "ADMINISTRATIVE  CODE"  SHALL  MEAN THE ADMINISTRATIVE CODE OF THE
 CITY OF NEW YORK.
   B. PARTICIPATION IN TWENTY-FIVE YEAR RETIREMENT PROGRAM. 1.    SUBJECT
 TO  THE  PROVISIONS OF PARAGRAPHS SIX AND SEVEN OF THIS SUBDIVISION, ANY
 PERSON WHO IS A WATER SUPPLY POLICE MEMBER ON THE STARTING DATE  OF  THE
 TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM  AND  WHO, AS SUCH A WATER SUPPLY
 POLICE MEMBER OR OTHERWISE LAST BECAME SUBJECT TO THE PROVISIONS OF THIS
 ARTICLE PRIOR TO SUCH STARTING DATE, MAY ELECT TO BECOME  A  PARTICIPANT
 IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM BY FILING, WITHIN ONE HUNDRED
 EIGHTY  DAYS  AFTER THE STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT

 S. 6573--A                         10
 
 PROGRAM, A DULY EXECUTED APPLICATION FOR  SUCH  PARTICIPATION  WITH  THE
 RETIREMENT  SYSTEM  OF WHICH SUCH PERSON IS A MEMBER, PROVIDED HE OR SHE
 IS SUCH A WATER SUPPLY POLICE MEMBER ON THE  DATE  SUCH  APPLICATION  IS
 FILED.
   2.  SUBJECT  TO  THE  PROVISIONS  OF  PARAGRAPHS SIX AND SEVEN OF THIS
 SUBDIVISION, ANY PERSON WHO BECOMES A WATER SUPPLY POLICE  MEMBER  AFTER
 THE STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM AND WHO, AS
 SUCH  A  WATER SUPPLY POLICE MEMBER OR OTHERWISE, LAST BECAME SUBJECT TO
 THE PROVISIONS OF THIS ARTICLE PRIOR TO SUCH STARTING DATE, MAY ELECT TO
 BECOME A PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM  BY
 FILING,  WITHIN  ONE  HUNDRED  EIGHTY  DAYS  AFTER BECOMING SUCH A WATER
 SUPPLY POLICE MEMBER, A DULY EXECUTED APPLICATION FOR SUCH PARTICIPATION
 WITH THE RETIREMENT SYSTEM FOR WHICH SUCH PERSON IS A  MEMBER,  PROVIDED
 HE OR SHE IS SUCH A WATER SUPPLY POLICE MEMBER ON THE DATE SUCH APPLICA-
 TION IS FILED.
   3. ANY ELECTION TO BE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
 PROGRAM SHALL BE IRREVOCABLE.
   4.  EACH  WATER  SUPPLY  POLICE  MEMBER  WHO  BECOMES  SUBJECT  TO THE
 PROVISIONS OF THIS ARTICLE ON OR AFTER THE STARTING DATE OF THE  TWENTY-
 FIVE  YEAR  RETIREMENT PROGRAM SHALL BECOME A PARTICIPANT IN THE TWENTY-
 FIVE YEAR RETIREMENT PROGRAM ON THE DATE HE OR SHE BECOMES SUCH A  WATER
 SUPPLY  POLICE MEMBER. PROVIDED, HOWEVER, A PERSON SUBJECT TO THIS PARA-
 GRAPH WHO HAS EXCEEDED AGE THIRTY UPON EMPLOYMENT AS SUCH A MEMBER SHALL
 BE EXEMPT FROM PARTICIPATION IN THE TWENTY-FIVE YEAR RETIREMENT  PROGRAM
 IF  SUCH PERSON ELECTS NOT TO PARTICIPATE BY FILING A DULY EXECUTED FORM
 WITH THE RETIREMENT SYSTEM WITHIN ONE HUNDRED EIGHTY  DAYS  OF  BECOMING
 SUCH A MEMBER.
   5.  WHERE  ANY  PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
 SHALL CEASE TO BE EMPLOYED BY THE CITY OF NEW YORK  AS  A  WATER  SUPPLY
 POLICE  MEMBER,  HE  OR  SHE  SHALL  CEASE TO BE SUCH A PARTICIPANT AND,
 DURING ANY PERIOD IN WHICH SUCH PERSON IS NOT SO  EMPLOYED,  HE  OR  SHE
 SHALL  NOT  BE  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
 AND SHALL NOT BE ELIGIBLE FOR THE BENEFITS  OF  SUBDIVISION  C  OF  THIS
 SECTION.
   6.  WHERE  ANY  PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
 TERMINATES SERVICE AS A WATER SUPPLY POLICE MEMBER AND RETURNS  TO  SUCH
 SERVICE AS A WATER SUPPLY POLICE MEMBER AT A LATER DATE, HE OR SHE SHALL
 AGAIN BECOME SUCH A PARTICIPANT ON THAT DATE.
   7.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, ANY
 PERSON WHO IS ELIGIBLE TO ELECT TO BECOME A PARTICIPANT IN  THE  TWENTY-
 FIVE  YEAR  RETIREMENT  PROGRAM PURSUANT TO PARAGRAPH ONE OR TWO OF THIS
 SUBDIVISION FOR THE FULL ONE HUNDRED EIGHTY DAY PERIOD PROVIDED  FOR  IN
 SUCH  APPLICABLE  PARAGRAPH AND WHO FAILS TO TIMELY FILE A DULY EXECUTED
 APPLICATION FOR SUCH PARTICIPATION WITH THE RETIREMENT SYSTEM, SHALL NOT
 THEREAFTER BE ELIGIBLE TO BECOME A PARTICIPANT IN SUCH PROGRAM.
   C. SERVICE RETIREMENT BENEFITS. 1. A PARTICIPANT  IN  THE  TWENTY-FIVE
 YEAR RETIREMENT PROGRAM:
   (I)  WHO  HAS COMPLETED TWENTY-FIVE OR MORE YEARS OF CREDITED SERVICE;
 AND
   (II) WHO HAS PAID, BEFORE THE EFFECTIVE DATE OF RETIREMENT, ALL  ADDI-
 TIONAL  MEMBER  CONTRIBUTIONS AND INTEREST (IF ANY) REQUIRED BY SUBDIVI-
 SION E OF THIS SECTION; AND
   (III) WHO FILES WITH THE RETIREMENT SYSTEM OF WHICH HE  OR  SHE  IS  A
 MEMBER AN APPLICATION FOR SERVICE RETIREMENT SETTING FORTH AT THAT TIME,
 NOT  LESS THAN THIRTY DAYS SUBSEQUENT TO THE EXECUTION AND FILING THERE-
 OF, HE OR SHE DESIRES TO BE RETIRED; AND

 S. 6573--A                         11
 
   (IV) WHO SHALL BE A PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  RETIREMENT
 PROGRAM  AT  THE  TIME  SO SPECIFIED FOR HIS OR HER RETIREMENT; SHALL BE
 RETIRED PURSUANT TO THE  PROVISIONS  OF  THIS  SECTION  AFFORDING  EARLY
 SERVICE RETIREMENT.
   2. (I) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, AND
 SUBJECT  TO  THE  PROVISIONS  OF  PARAGRAPH SIX OF SUBDIVISION E OF THIS
 SECTION, THE EARLY SERVICE RETIREMENT BENEFIT FOR  PARTICIPANTS  IN  THE
 TWENTY-FIVE YEAR RETIREMENT PROGRAM WHO RETIRE PURSUANT TO PARAGRAPH ONE
 OF THIS SUBDIVISION SHALL BE A RETIREMENT ALLOWANCE CONSISTING OF:
   (A)  AN  AMOUNT, ON ACCOUNT OF THE REQUIRED MINIMUM PERIOD OF SERVICE,
 EQUAL TO FIFTY PERCENT OF HIS OR HER FINAL AVERAGE SALARY; PLUS
   (B) AN AMOUNT ON ACCOUNT OF CREDITED  SERVICE,  OR  FRACTION  THEREOF,
 BEYOND  SUCH  REQUIRED MINIMUM PERIOD OF SERVICE EQUAL TO TWO PERCENT OF
 HIS OR HER FINAL SALARY;
   (II)  THE  MAXIMUM  RETIREMENT  ALLOWANCE  COMPUTED  WITHOUT  OPTIONAL
 MODIFICATION  PAYABLE  PURSUANT  TO  SUBPARAGRAPH  (I) OF THIS PARAGRAPH
 SHALL EQUAL THAT PAYABLE UPON COMPLETION OF THIRTY YEARS OF SERVICE.
   D. VESTING. 1.  A  PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR  RETIREMENT
 PROGRAM:
   (I)  WHO  DISCONTINUES  SERVICE  AS  SUCH A PARTICIPANT, OTHER THAN BY
 DEATH OR RETIREMENT; AND
   (II) WHO PRIOR TO SUCH DISCONTINUANCE, COMPLETED FIVE  BUT  LESS  THAN
 TWENTY-FIVE YEARS OF CREDITED SERVICE; AND
   (III) WHO, SUBJECT TO THE PROVISIONS OF PARAGRAPH SEVEN OF SUBDIVISION
 E  OF  THIS  SECTION,  HAS PAID, PRIOR TO SUCH DISCONTINUANCE, ALL ADDI-
 TIONAL MEMBER CONTRIBUTIONS AND INTEREST (IF ANY) REQUIRED  BY  SUBDIVI-
 SION E OF THIS SECTION; AND
   (IV)  WHO DOES NOT WITHDRAW IN WHOLE OR IN PART HIS OR HER ACCUMULATED
 MEMBER CONTRIBUTIONS PURSUANT TO SECTION SIX HUNDRED  THIRTEEN  OF  THIS
 ARTICLE UNLESS SUCH PARTICIPANT THEREAFTER RETURNS TO PUBLIC SERVICE AND
 REPAYS  THE  AMOUNTS  SO  WITHDRAWN, TOGETHER WITH INTEREST, PURSUANT TO
 SUCH SECTION SIX HUNDRED  THIRTEEN;  SHALL  BE  ENTITLED  TO  RECEIVE  A
 DEFERRED VESTED BENEFIT AS PROVIDED IN THIS SUBDIVISION.
   2. (I) UPON SUCH DISCONTINUANCE UNDER THE CONDITIONS AND IN COMPLIANCE
 WITH  THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION, SUCH DEFERRED
 VESTED BENEFIT SHALL VEST AUTOMATICALLY.
   (II) SUCH VESTED BENEFIT SHALL BECOME PAYABLE ON THE EARLIEST DATE  ON
 WHICH  SUCH  DISCONTINUED  MEMBER COULD HAVE RETIRED FOR SERVICE IF SUCH
 DISCONTINUANCE HAD NOT OCCURRED.
   3. SUBJECT TO THE PROVISIONS OF PARAGRAPH SEVEN OF  SUBDIVISION  E  OF
 THIS  SECTION, SUCH DEFERRED VESTED BENEFIT SHALL BE A RETIREMENT ALLOW-
 ANCE CONSISTING OF AN AMOUNT EQUAL TO TWO PERCENT OF  SUCH  DISCONTINUED
 MEMBER'S  FINAL  AVERAGE  SALARY,  MULTIPLIED  BY THE NUMBER OF YEARS OF
 CREDITED SERVICE.
   E. ADDITIONAL MEMBER CONTRIBUTIONS.  1.  IN  ADDITION  TO  THE  MEMBER
 CONTRIBUTIONS  REQUIRED BY SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE,
 EACH PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM  SHALL
 CONTRIBUTE  TO  THE  RETIREMENT  SYSTEM  OF  WHICH HE OR SHE IS A MEMBER
 (SUBJECT TO THE APPLICABLE PROVISIONS OF SUBDIVISION D  OF  SECTION  SIX
 HUNDRED  THIRTEEN  OF  THIS ARTICLE) AN ADDITIONAL SIX PERCENT OF HIS OR
 HER COMPENSATION EARNED FROM (I) ALL CREDITED SERVICE, AS A  PARTICIPANT
 IN  THE  TWENTY-FIVE  YEAR  RETIREMENT PROGRAM, RENDERED ON OR AFTER THE
 STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM, AND  (II)  ALL
 CREDITED  SERVICE  AFTER  SUCH  PERSON  CEASES  TO BE A PARTICIPANT, BUT
 BEFORE HE OR SHE AGAIN BECOMES A PARTICIPANT PURSUANT TO  PARAGRAPH  SIX
 OF  SUBDIVISION B OF THIS SECTION. THE ADDITIONAL CONTRIBUTIONS REQUIRED

 S. 6573--A                         12
 
 BY THIS SUBDIVISION SHALL BE IN LIEU OF ADDITIONAL MEMBER  CONTRIBUTIONS
 REQUIRED BY SUBDIVISION D OF SECTION SIX HUNDRED FOUR-C OF THIS ARTICLE,
 AS  ADDED  BY CHAPTER NINETY-SIX OF THE LAWS OF NINETEEN HUNDRED NINETY-
 FIVE,  AND NO MEMBER MAKING CONTRIBUTIONS PURSUANT TO THIS SECTION SHALL
 BE REQUIRED TO MAKE CONTRIBUTIONS PURSUANT  TO  SUCH  SUBDIVISION  D  OF
 SECTION SIX HUNDRED FOUR-C OF THIS ARTICLE.
   2.  A  PARTICIPANT  IN  THE  TWENTY-FIVE YEAR RETIREMENT PROGRAM SHALL
 CONTRIBUTE ADDITIONAL MEMBER CONTRIBUTIONS UNTIL THE LATER  OF  (I)  THE
 FIRST  ANNIVERSARY  OF THE STARTING DATE OF THE TWENTY-FIVE YEAR RETIRE-
 MENT PROGRAM, OR (II) THE DATE ON WHICH HE OR SHE COMPLETES THIRTY YEARS
 OF CREDITED SERVICE AS A WATER SUPPLY POLICE MEMBER.
   3. COMMENCING WITH THE FIRST FULL PAYROLL  PERIOD  AFTER  EACH  PERSON
 BECOMES  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM, ADDI-
 TIONAL MEMBER CONTRIBUTIONS AT THE RATE SPECIFIED IN  PARAGRAPH  ONE  OF
 THIS SUBDIVISION SHALL BE DEDUCTED (SUBJECT TO THE APPLICABLE PROVISIONS
 OF  SUBDIVISION  D OF SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE) FROM
 THE COMPENSATION OF SUCH PARTICIPANT ON EACH AND EVERY PAYROLL  OF  SUCH
 PARTICIPANT  FOR  EACH  AND  EVERY PAYROLL PERIOD FOR WHICH HE OR SHE IS
 SUCH A PARTICIPANT.
   4. (I) EACH PARTICIPANT IN THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM
 SHALL  BE CHARGED WITH A CONTRIBUTION DEFICIENCY CONSISTING OF THE TOTAL
 AMOUNTS OF ADDITIONAL MEMBER CONTRIBUTIONS SUCH PERSON  IS  REQUIRED  TO
 MAKE  PURSUANT  TO  PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION WHICH ARE
 NOT DEDUCTED FROM HIS OR HER COMPENSATION PURSUANT TO PARAGRAPH THREE OF
 THIS SUBDIVISION, IF ANY, TOGETHER  WITH  INTEREST  THEREON,  COMPOUNDED
 ANNUALLY,  AND  COMPUTED  IN  ACCORDANCE WITH THE PROVISIONS OF SUBPARA-
 GRAPHS (II) AND (III) OF THIS PARAGRAPH.
   (II) (A) THE INTEREST REQUIRED TO BE PAID ON EACH SUCH  AMOUNT  SPECI-
 FIED  IN SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL ACCRUE FROM THE END OF
 THE PAYROLL PERIOD FOR WHICH SUCH AMOUNT WOULD HAVE BEEN  DEDUCTED  FROM
 COMPENSATION  IF  HE  OR  SHE HAD BEEN A PARTICIPANT AT THE BEGINNING OF
 THAT PAYROLL PERIOD AND  SUCH  DEDUCTION  HAD  BEEN  REQUIRED  FOR  SUCH
 PAYROLL PERIOD, UNTIL SUCH AMOUNT IS PAID TO THE RETIREMENT SYSTEM.
   (B)  THE RATE OF INTEREST TO BE APPLIED TO EACH SUCH AMOUNT DURING THE
 PERIOD FOR WHICH INTEREST ACCRUES ON THAT AMOUNT SHALL BE EQUAL  TO  THE
 RATE  OR  RATES  OF INTEREST REQUIRED BY LAW TO BE USED DURING THAT SAME
 PERIOD TO CREDIT INTEREST ON THE ACCUMULATED  DEDUCTIONS  OF  RETIREMENT
 SYSTEM MEMBERS.
   (III)  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH FIVE OF THIS SUBDIVI-
 SION, NO INTEREST SHALL BE DUE ON ANY UNPAID ADDITIONAL MEMBER  CONTRIB-
 UTIONS  WHICH  ARE  NOT ATTRIBUTABLE TO A PERIOD PRIOR TO THE FIRST FULL
 PAYROLL PERIOD REFERRED TO IN PARAGRAPH THREE OF THIS SUBDIVISION.
   5. (I) SHOULD ANY PERSON WHO, PURSUANT TO SUBPARAGRAPH (II)  OF  PARA-
 GRAPH TEN OF THIS SUBDIVISION, HAS RECEIVED A REFUND OF HIS OR HER ADDI-
 TIONAL MEMBER CONTRIBUTIONS INCLUDING ANY INTEREST PAID ON SUCH CONTRIB-
 UTIONS,  AGAIN  BECOME  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
 PROGRAM PURSUANT TO PARAGRAPH SIX OF SUBDIVISION B OF THIS  SECTION,  AN
 APPROPRIATE  AMOUNT SHALL BE INCLUDED IN SUCH PARTICIPANT'S CONTRIBUTION
 DEFICIENCY (INCLUDING INTEREST THEREON AS CALCULATED PURSUANT TO SUBPAR-
 AGRAPH (II) OF THIS PARAGRAPH) FOR ANY CREDITED SERVICE FOR  WHICH  SUCH
 PERSON  RECEIVED  A  REFUND  OF  SUCH  ADDITIONAL  MEMBER  CONTRIBUTIONS
 (INCLUDING ANY AMOUNT OF AN UNPAID LOAN  BALANCE  DEEMED  TO  HAVE  BEEN
 RETURNED  TO  SUCH  PERSON PURSUANT TO PARAGRAPH TWELVE OF THIS SUBDIVI-
 SION), AS IF SUCH ADDITIONAL MEMBER CONTRIBUTIONS NEVER HAD BEEN PAID.
   (II) (A) INTEREST ON A PARTICIPANT'S ADDITIONAL  MEMBER  CONTRIBUTIONS
 INCLUDED  IN  SUCH  PARTICIPANT'S  CONTRIBUTION  DEFICIENCY  PURSUANT TO

 S. 6573--A                         13
 
 SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL BE CALCULATED AS IF SUCH  ADDI-
 TIONAL MEMBER CONTRIBUTIONS HAD NEVER BEEN PAID BY SUCH PARTICIPANT, AND
 SUCH  INTEREST  SHALL ACCRUE FROM THE END OF THE PAYROLL PERIOD TO WHICH
 AN AMOUNT OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS IS ATTRIBUTABLE, UNTIL
 SUCH AMOUNT IS PAID TO THE RETIREMENT SYSTEM.
   (B)  THE RATE OF INTEREST TO BE APPLIED TO EACH SUCH AMOUNT DURING THE
 PERIOD FOR WHICH INTEREST ACCRUES ON THAT AMOUNT SHALL BE  FIVE  PERCENT
 PER ANNUM, COMPOUNDED ANNUALLY.
   6.  WHERE  A PARTICIPANT WHO IS OTHERWISE ELIGIBLE FOR SERVICE RETIRE-
 MENT PURSUANT TO SUBDIVISION C OF THIS SECTION DID  NOT,  PRIOR  TO  THE
 EFFECTIVE  DATE  OF  RETIREMENT, PAY THE ENTIRE AMOUNT OF A CONTRIBUTION
 DEFICIENCY CHARGEABLE TO HIM OR HER PURSUANT TO PARAGRAPHS FOUR AND FIVE
 OF THIS SUBDIVISION, OR REPAY THE ENTIRE AMOUNT OF A LOAN OF HIS OR  HER
 ADDITIONAL  MEMBER  CONTRIBUTIONS  PURSUANT  TO PARAGRAPH ELEVEN OF THIS
 SUBDIVISION (INCLUDING ACCRUED INTEREST ON SUCH LOAN), THAT PARTICIPANT,
 NEVERTHELESS, SHALL BE ELIGIBLE TO RETIRE PURSUANT TO SUBDIVISION  C  OF
 THIS SECTION, PROVIDED, HOWEVER, THAT SUCH PARTICIPANT'S SERVICE RETIRE-
 MENT  BENEFIT CALCULATED PURSUANT TO PARAGRAPH TWO OF SUCH SUBDIVISION C
 SHALL BE REDUCED BY A LIFE ANNUITY (CALCULATED IN  ACCORDANCE  WITH  THE
 METHOD  SET  FORTH IN SUBDIVISION I OF SECTION SIX HUNDRED THIRTEEN-B OF
 THIS ARTICLE) WHICH IS ACTUARIALLY EQUIVALENT TO:
   (I) THE AMOUNT OF ANY UNPAID  CONTRIBUTION  DEFICIENCY  CHARGEABLE  TO
 SUCH  MEMBER  PURSUANT  TO PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION;
 PLUS
   (II) THE AMOUNT OF ANY UNPAID BALANCE OF A LOAN OF HIS  OR  HER  ADDI-
 TIONAL  MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH ELEVEN OF THIS SUBDI-
 VISION (INCLUDING ACCRUED INTEREST ON SUCH LOAN).
   7. WHERE A PARTICIPANT WHO IS OTHERWISE ELIGIBLE FOR A VESTED RIGHT TO
 A DEFERRED BENEFIT PURSUANT TO SUBDIVISION D OF THIS  SECTION  DID  NOT,
 PRIOR TO THE DATE OF DISCONTINUANCE OF SERVICE, PAY THE ENTIRE AMOUNT OF
 A  CONTRIBUTION  DEFICIENCY  CHARGEABLE  TO HIM OR HER PURSUANT TO PARA-
 GRAPHS FOUR AND FIVE OF THIS SUBDIVISION, OR REPAY THE ENTIRE AMOUNT  OF
 A  LOAN  OF HIS OR HER ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO PARA-
 GRAPH ELEVEN OF THIS SUBDIVISION (INCLUDING  ACCRUED  INTEREST  ON  SUCH
 LOAN),  THAT  PARTICIPANT,  NEVERTHELESS, SHALL BE ELIGIBLE FOR A VESTED
 RIGHT TO A DEFERRED BENEFIT PURSUANT TO SUBDIVISION D OF  THIS  SECTION,
 PROVIDED,  HOWEVER, THAT THE DEFERRED VESTED BENEFIT CALCULATED PURSUANT
 TO PARAGRAPH THREE OF SUCH SUBDIVISION D SHALL  BE  REDUCED  BY  A  LIFE
 ANNUITY  (CALCULATED IN ACCORDANCE WITH THE METHOD SET FORTH IN SUBDIVI-
 SION I OF SECTION SIX HUNDRED THIRTEEN-B OF THIS ARTICLE) WHICH IS ACTU-
 ARIALLY EQUIVALENT TO:
   (I) THE AMOUNT OF ANY UNPAID  CONTRIBUTION  DEFICIENCY  CHARGEABLE  TO
 SUCH  MEMBER  PURSUANT  TO PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION;
 PLUS
   (II) THE AMOUNT OF ANY UNPAID BALANCE OF A LOAN OF HIS  OR  HER  ADDI-
 TIONAL  MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH ELEVEN OF THIS SUBDI-
 VISION (INCLUDING ACCRUED INTEREST ON SUCH LOAN).
   8. THE HEAD OF A RETIREMENT SYSTEM WHICH INCLUDES PARTICIPANTS IN  THE
 TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM IN ITS MEMBERSHIP MAY, CONSISTENT
 WITH THE PROVISIONS OF THIS SUBDIVISION, PROMULGATE REGULATIONS FOR  THE
 PAYMENT OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS, AND ANY INTEREST THERE-
 ON, BY SUCH PARTICIPANTS (INCLUDING THE DEDUCTION OF SUCH CONTRIBUTIONS,
 AND ANY INTEREST THEREON, FROM THE PARTICIPANT'S COMPENSATION).
   9.  SUBJECT  TO  THE  PROVISIONS  OF  PARAGRAPHS SIX AND SEVEN OF THIS
 SUBDIVISION, WHERE A PARTICIPANT HAS NOT PAID IN FULL  ANY  CONTRIBUTION
 DEFICIENCY CHARGEABLE TO HIM OR HER PURSUANT TO PARAGRAPHS FOUR AND FIVE

 S. 6573--A                         14
 
 OF  THIS  SUBDIVISION,  AND  A  BENEFIT,  OTHER  THAN A REFUND OF MEMBER
 CONTRIBUTIONS PURSUANT TO SECTION SIX HUNDRED THIRTEEN OF  THIS  ARTICLE
 OR  A REFUND OF ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO SUBPARAGRAPH
 (II)  OF  PARAGRAPH  TEN OF THIS SUBDIVISION, BECOMES PAYABLE UNDER THIS
 ARTICLE TO THE PARTICIPANT OR TO HIS OR HER  DESIGNATED  BENEFICIARY  OR
 ESTATE,  THE  ACTUARIAL  EQUIVALENT  OF  ANY SUCH UNPAID AMOUNT SHALL BE
 DEDUCTED FROM THE BENEFIT OTHERWISE PAYABLE.
   10. (I) SUCH ADDITIONAL MEMBER CONTRIBUTIONS (AND ANY INTEREST  THERE-
 ON)  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 CONTRIB-
 UTIONS 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.
   (II)  SHOULD  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
 WHO HAS RENDERED LESS THAN FIVE YEARS OF CREDITED SERVICE CEASE TO  HOLD
 A  POSITION  AS  A WATER SUPPLY POLICE 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 RETIRE-
 MENT  SYSTEM)  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.
   (III) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  (A)
 NO  PERSON SHALL BE PERMITTED TO WITHDRAW FROM THE RETIREMENT SYSTEM ANY
 ADDITIONAL MEMBER CONTRIBUTIONS PAID PURSUANT TO THIS SUBDIVISION OR ANY
 INTEREST PAID THEREON, EXCEPT PURSUANT TO AND  IN  ACCORDANCE  WITH  THE
 PRECEDING  SUBPARAGRAPHS  OF THIS PARAGRAPH; AND (B) NO PERSON, WHILE HE
 OR SHE IS A PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM,
 SHALL  BE PERMITTED TO WITHDRAW ANY SUCH ADDITIONAL MEMBER CONTRIBUTIONS
 OR ANY INTEREST PAID THEREON PURSUANT TO ANY OF THE  PRECEDING  SUBPARA-
 GRAPHS OF THIS PARAGRAPH OR OTHERWISE.
   11.  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM SHALL BE
 PERMITTED TO BORROW FROM HIS  OR  HER  ADDITIONAL  MEMBER  CONTRIBUTIONS
 (INCLUDING  ANY  INTEREST  PAID THEREON) WHICH ARE CREDITED TO THE ADDI-
 TIONAL CONTRIBUTIONS ACCOUNT ESTABLISHED FOR  SUCH  PARTICIPANT  IN  THE
 CONTINGENT  RESERVE  FUND  OF THE RETIREMENT SYSTEM.  THE BORROWING FROM
 SUCH ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO THIS PARAGRAPH SHALL BE
 GOVERNED BY THE RIGHTS, PRIVILEGES, OBLIGATIONS AND PROCEDURES SET FORTH
 IN SECTION SIX HUNDRED THIRTEEN-B  OF  THIS  ARTICLE  WHICH  GOVERN  THE
 BORROWING  OF  MEMBER CONTRIBUTIONS MADE PURSUANT TO SECTION SIX HUNDRED
 THIRTEEN OF THIS ARTICLE. THE BOARD OF TRUSTEES OF THE RETIREMENT SYSTEM
 MAY,  CONSISTENT  WITH  THE  PROVISIONS  OF  THIS  SUBDIVISION  AND  THE
 PROVISIONS  OF  SECTION  SIX  HUNDRED THIRTEEN-B OF THIS ARTICLE AS MADE
 APPLICABLE TO THIS SUBDIVISION,  PROMULGATE  REGULATIONS  GOVERNING  THE
 BORROWING OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS.
   12.  WHENEVER  A  PERSON HAS AN UNPAID BALANCE OF A LOAN OF HIS OR HER
 ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO  PARAGRAPH  ELEVEN  OF  THIS
 SUBDIVISION AT THE TIME HE OR SHE BECOMES ENTITLED TO A REFUND OF HIS OR
 HER  ADDITIONAL  MEMBER  CONTRIBUTIONS  PURSUANT TO SUBPARAGRAPH (II) OF
 PARAGRAPH TEN OF THIS  SUBDIVISION,  THE  AMOUNT  OF  SUCH  UNPAID  LOAN
 BALANCE  (INCLUDING  ACCRUED  INTEREST)  SHALL  BE  DEEMED  TO HAVE BEEN
 RETURNED TO SUCH MEMBER, AND THE REFUND OF SUCH ADDITIONAL CONTRIBUTIONS
 SHALL BE THE NET AMOUNT OF SUCH CONTRIBUTIONS,  TOGETHER  WITH  INTEREST
 THEREON IN ACCORDANCE WITH THE PROVISIONS OF SUCH SUBPARAGRAPH (II).

 S. 6573--A                         15
 
   § 6. Subdivision d of section 613 of the retirement and social securi-
 ty law is amended by adding a new paragraph 12 to read as follows:
   12.  (I)  THE  CITY  OF  NEW YORK SHALL, IN THE CASE OF A WATER SUPPLY
 POLICE MEMBER (AS DEFINED IN PARAGRAPH ONE OF SUBDIVISION A  OF  SECTION
 SIX  HUNDRED FOUR-J OF THIS ARTICLE) WHO IS A PARTICIPANT IN THE TWENTY-
 FIVE YEAR RETIREMENT PROGRAM (AS DEFINED IN PARAGRAPH FOUR  OF  SUBDIVI-
 SION  A  OF  SUCH  SECTION  SIX  HUNDRED FOUR-J), PICK UP AND PAY TO THE
 RETIREMENT SYSTEM OF WHICH SUCH PARTICIPANT IS A MEMBER, ALL  ADDITIONAL
 MEMBER  CONTRIBUTIONS  WHICH  OTHERWISE WOULD BE REQUIRED TO BE DEDUCTED
 FROM SUCH MEMBER'S COMPENSATION PURSUANT TO PARAGRAPHS ONE  AND  TWO  OF
 SUBDIVISION  E  OF  SUCH  SECTION  SIX HUNDRED FOUR-J (NOT INCLUDING ANY
 ADDITIONAL MEMBER CONTRIBUTIONS DUE FOR ANY PERIOD PRIOR  TO  THE  FIRST
 FULL  PAYROLL  PERIOD REFERRED TO IN PARAGRAPH THREE OF SUCH SUBDIVISION
 E), AND SHALL EFFECT SUCH PICK UP ON EACH  AND  EVERY  PAYROLL  OF  SUCH
 PARTICIPANT FOR EACH AND EVERY PAYROLL PERIOD WITH RESPECT TO WHICH SUCH
 PARAGRAPH THREE WOULD OTHERWISE REQUIRE SUCH DEDUCTIONS.
   (II)  AN AMOUNT EQUAL TO THE AMOUNT OF ADDITIONAL CONTRIBUTIONS PICKED
 UP PURSUANT TO THIS PARAGRAPH SHALL BE DEDUCTED BY  SUCH  EMPLOYER  FROM
 THE  COMPENSATION  OF  SUCH MEMBER (AS SUCH COMPENSATION WOULD BE IN THE
 ABSENCE OF A PICK UP PROGRAM APPLICABLE TO HIM  OR  HER  HEREUNDER)  AND
 SHALL NOT BE PAID TO SUCH MEMBER.
   (III)  THE  ADDITIONAL MEMBER CONTRIBUTIONS PICKED UP PURSUANT TO THIS
 PARAGRAPH FOR ANY SUCH MEMBER SHALL BE PAID BY SUCH EMPLOYER IN LIEU  OF
 AN EQUAL AMOUNT OF ADDITIONAL MEMBER CONTRIBUTIONS OTHERWISE REQUIRED TO
 BE  PAID BY SUCH MEMBER UNDER THE APPLICABLE PROVISIONS OF SUBDIVISION E
 OF SECTION SIX HUNDRED FOUR-J OF THIS ARTICLE, AND SHALL BE DEEMED TO BE
 AND TREATED AS EMPLOYER CONTRIBUTIONS PURSUANT TO SECTION 414(H) OF  THE
 INTERNAL REVENUE CODE.
   (IV)  FOR  THE  PURPOSE  OF  DETERMINING THE RETIREMENT SYSTEM RIGHTS,
 BENEFITS AND PRIVILEGES OF ANY MEMBER WHOSE ADDITIONAL  MEMBER  CONTRIB-
 UTIONS  ARE  PICKED  UP PURSUANT TO THIS PARAGRAPH, SUCH PICKED UP ADDI-
 TIONAL MEMBER CONTRIBUTIONS SHALL BE DEEMED TO BE AND TREATED AS PART OF
 SUCH MEMBER'S  ADDITIONAL  MEMBER  CONTRIBUTIONS  UNDER  THE  APPLICABLE
 PROVISIONS  OF SUBDIVISION E OF SECTION SIX HUNDRED FOUR-J OF THIS ARTI-
 CLE.
   (V) WITH THE EXCEPTION OF FEDERAL INCOME TAX TREATMENT, THE ADDITIONAL
 MEMBER CONTRIBUTIONS PICKED UP PURSUANT  TO  SUBPARAGRAPH  (I)  OF  THIS
 PARAGRAPH SHALL FOR ALL OTHER PURPOSES, INCLUDING COMPUTATION OF RETIRE-
 MENT  BENEFITS  AND  CONTRIBUTIONS BY EMPLOYERS AND EMPLOYEES, BE DEEMED
 EMPLOYEE  SALARY.  NOTHING  CONTAINED  IN  THIS  SUBDIVISION  SHALL   BE
 CONSTRUED  AS SUPERSEDING THE PROVISIONS OF SECTION FOUR HUNDRED THIRTY-
 ONE OF THIS CHAPTER, OR ANY SIMILAR PROVISION OF LAW  WHICH  LIMITS  THE
 SALARY BASE OF COMPUTING RETIREMENT BENEFITS PAYABLE BY A PUBLIC RETIRE-
 MENT SYSTEM.
   §  7.  Section  13-125.2 of the administrative code of the city of New
 York is amended by adding a new subdivision a-9 to read as follows:
   A-9. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, ON OR
 AFTER THE STARTING DATE FOR PICK UP, THE EMPLOYER RESPONSIBLE  FOR  PICK
 UP  SHALL,  IN  THE  CASE OF A WATER SUPPLY POLICE MEMBER (AS DEFINED IN
 PARAGRAPH TWO OF SUBDIVISION A OF SECTION FOUR HUNDRED  FORTY-FIVE-J  OF
 THE  RETIREMENT  AND  SOCIAL  SECURITY  LAW) WHO IS A PARTICIPANT IN THE
 TWENTY-FIVE YEAR IMPROVED BENEFIT  RETIREMENT  PROGRAM  (AS  DEFINED  IN
 PARAGRAPH  THREE  OF  SUCH  SUBDIVISION A OF SECTION FOUR HUNDRED FORTY-
 FIVE-J), PICK UP AND PAY TO THE RETIREMENT SYSTEM ALL ADDITIONAL  MEMBER
 CONTRIBUTIONS WHICH OTHERWISE WOULD BE REQUIRED TO BE DEDUCTED FROM SUCH
 MEMBER'S  COMPENSATION  PURSUANT  TO  SUBDIVISION D OF SUCH SECTION FOUR

 S. 6573--A                         16
 
 HUNDRED FORTY-FIVE-J, AND SHALL EFFECT SUCH PICK UP ON  EACH  AND  EVERY
 PAYROLL  OF  SUCH  PARTICIPANT  FOR  EACH  AND EVERY PAYROLL PERIOD WITH
 RESPECT TO  WHICH  SUCH  SUBDIVISION  D  WOULD  OTHERWISE  REQUIRE  SUCH
 DEDUCTIONS.
   §  8.  Subparagraph  (ii)  of  paragraph 1 of subdivision c of section
 13-125.2 of the administrative code of the city of New York, as  amended
 by chapter 682 of the laws of 2003, is amended to read as follows:
   (ii)  the  determination of the amount of such member's Tier I or Tier
 II nonuniformed-force member contributions eligible for pick up  by  the
 employer  or  additional  member  contributions required to be picked up
 pursuant to subdivision a-one, subdivision a-two,  subdivision  a-three,
 subdivision  a-four,  subdivision a-five, subdivision a-six, subdivision
 a-seven [or], subdivision a-eight, OR SUBDIVISION A-9 of  this  section;
 and
   §  9.  Subdivision d of section 13-125.2 of the administrative code of
 the city of New York is amended by adding a new paragraph 2-h to read as
 follows:
   (2-H) FOR THE PURPOSE OF DETERMINING  THE  RETIREMENT  SYSTEM  RIGHTS,
 BENEFITS  AND PRIVILEGES OF ANY MEMBER WHO IS A PARTICIPANT IN THE TWEN-
 TY-FIVE YEAR IMPROVED BENEFIT RETIREMENT PROGRAM (AS  DEFINED  IN  PARA-
 GRAPH THREE OF SUBDIVISION A OF SECTION FOUR HUNDRED FORTY-FIVE-J OF THE
 RETIREMENT AND SOCIAL SECURITY LAW), THE ADDITIONAL MEMBER CONTRIBUTIONS
 OF  SUCH  PARTICIPANT  PICKED  UP PURSUANT TO SUBDIVISION A-NINE OF THIS
 SECTION SHALL BE DEEMED TO BE AND TREATED AS A  PART  OF  SUCH  MEMBER'S
 ADDITIONAL MEMBER CONTRIBUTIONS UNDER SUBDIVISION D OF SUCH SECTION FOUR
 HUNDRED FORTY-FIVE-J.
   § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis-
 trative  code  of the city of New York, as amended by chapter 682 of the
 laws of 2003, is amended to read as follows:
   (3) Interest on contributions picked up for any  Tier  I  or  Tier  II
 non-uniformed-force  member  pursuant  to this section (other than addi-
 tional member contributions picked up  pursuant  to  subdivision  a-one,
 subdivision  a-two, subdivision a-three, subdivision a-four, subdivision
 a-five,  subdivision  a-six,  subdivision  a-seven   [or],   subdivision
 a-eight, OR SUBDIVISION A-NINE of this section) shall accrue in favor of
 the member and be payable to the retirement system at the same rate, for
 the  same  time  periods,  in the same manner and under the same circum-
 stances as interest would be required to accrue in favor of  the  member
 and  be  payable  to the retirement system on such contributions if they
 were made by such member in the absence of a pick up program  applicable
 to such member under the provisions of this section.
   §  11. Subdivision a of section 603 of the retirement and social secu-
 rity law, as amended by chapter 18 of the laws of 2012,  is  amended  to
 read as follows:
   a.  The  service  retirement  benefit specified in section six hundred
 four of this article shall be payable to members who have met the  mini-
 mum  service  requirements  upon retirement and attainment of age sixty-
 two, other than members who are eligible for  early  service  retirement
 pursuant to subdivision c of section six hundred four-b of this article,
 subdivision c of section six hundred four-c of this article, subdivision
 d  of  section  six  hundred  four-d  of  this article, subdivision c of
 section six hundred four-e of this article, subdivision c of section six
 hundred four-f of this article, subdivision c  of  section  six  hundred
 four-g  of  this article, subdivision c of section six hundred four-h of
 this article [or], subdivision c of section six hundred four-i  of  this
 article, OR SUBDIVISION C OF SECTION SIX HUNDRED FOUR-J OF THIS ARTICLE,

 S. 6573--A                         17
 
 provided,  however, a member of a teachers' retirement system or the New
 York state and local employees' retirement system who first  joins  such
 system  before  January  first,  two  thousand  ten or a member who is a
 uniformed  court  officer or peace officer employed by the unified court
 system who first becomes a member  of  the  New  York  state  and  local
 employees' retirement system before April first, two thousand twelve may
 retire  without  reduction of his or her retirement benefit upon attain-
 ment of at least fifty-five years of age and  completion  of  thirty  or
 more years of service, provided, however, that a uniformed court officer
 or  peace officer employed by the unified court system who first becomes
 a member of the New York state and local employees' retirement system on
 or after January first, two thousand ten and retires  without  reduction
 of  his or her retirement benefit upon attainment of at least fifty-five
 years of age and completion of thirty or more years of service  pursuant
 to  this  section  shall  be  required  to make the member contributions
 required by subdivision f of section six hundred thirteen of this  arti-
 cle  for  all years of credited and creditable service, provided further
 that the [the] preceding provisions of this subdivision shall not  apply
 to a New York city revised plan member.
   §  12.  Nothing contained in sections six and eleven of this act shall
 be construed to create any contractual right with respect to members  to
 whom  such sections apply.  The provisions of such sections are intended
 to afford members the advantages of certain benefits  contained  in  the
 Internal  Revenue  Code,  and  the  effectiveness  and existence of such
 sections and benefits they confer are completely contingent thereon.
   § 13. This act shall take effect immediately, provided, however that:
   (a) The amendments to subdivision a of section 603 of  the  retirement
 and  social  security  law  made by section eleven of this act shall not
 affect the expiration of such subdivision as provided in subdivision (b)
 of section 13 of chapter 682 of the laws of 2003, and shall expire ther-
 ewith;
   (b) The provisions of section six of this act shall  remain  in  force
 and  effect  only  so  long  as,  pursuant to federal law, contributions
 picked up under section 613 of the retirement and  social  security  law
 are  not  includable  as gross income of a member for federal income tax
 purposes until distributed or made available to the member; and
   (c) The amendments to provisions of section 13-125.2 of  the  adminis-
 trative code of the city of New York made by sections seven, eight, nine
 and  ten  of this act shall not affect the expiration of such provisions
 as provided for in chapter 681 of the laws of 1992, as amended.
   FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL:  This  proposed  legislation  would  amend  certain
 provisions  of  the  Retirement  and  Social Security Law (RSSL) and the
 Administrative Code of the City  of  New  York  (ACCNY),  and  add  RSSL
 Sections  445-j  and 604-j to establish a 25-Year Retirement Program for
 Tier 2, 4, and 6 New York City  Employees'  Retirement  System  (NYCERS)
 members  who  are  employed  in  the  title  of Water Supply Police (WSP
 25-Year Plan).
   Effective Date: Upon enactment.
   MEMBERS ELIGIBLE TO JOIN: Those NYCERS members who are sworn  officers
 of  the  water  supply  police  employed by the City of New York (City),
 appointed to protect the  sources,  works,  and  transmission  of  water
 supplied  to  the  City, and to protect persons on or in the vicinity of
 such water sources, works, and transmission pursuant to subdivision o of
 section 1.20 of the Criminal Procedure Law.

 S. 6573--A                         18
 
   For purposes of this  Fiscal  Note,  these  members  are  collectively
 referred to as "Water Supply Police Members."
   Participation  in  the  WSP 25-Year Plan is optional for anyone who is
 eligible to participate in the Plan on the date of enactment  by  filing
 an election form within 180 days of enactment. Anyone who is a member of
 NYCERS  (i.e. subject to Article 15) on the date of enactment and subse-
 quently becomes employed as a Water Supply Police Member  also  has  180
 days upon becoming such a member to elect to join the WSP 25-Year Plan.
   Any  new Water Supply Police Member who becomes a Tier 6 NYCERS member
 after the date of enactment is mandated into the Plan. However,  if  the
 member exceeds age 30 upon being mandated into the WSP 25-Year Plan, the
 member has the option not to participate in the Plan by filing an appli-
 cation to opt out of the Plan within 180 days of becoming a Water Supply
 Police Member.
   IMPACT  ON  BENEFITS: Currently, Water Supply Police Members generally
 participate in one of the NYCERS general plans (i.e. basic Tier  4  62/5
 Plan, Tier 6 63/10 Plan or Improved Tier 4 57/5, 55/25 Plans). There are
 currently  no  active Tier 2 Water Supply Police Members. Therefore, the
 following summary only applies to Tier 4 and Tier 6 Water Supply  Police
 Members.
   The proposed legislation would provide the following benefits to Water
 Supply Police Members under the WSP 25-Year Plan:
   *  Service  retirement  benefit: Upon attaining 25 years of any NYCERS
 Credited Service, including service as a Water Supply Police  Member,  a
 benefit  equal  to  50%  of  Final Average Salary (FAS) for the first 25
 years of Credited Service plus 2% of FAS for  each  additional  year  of
 Credited Service up to a maximum of 30 years of such service.
   *  Final  Average Salary: Three-Year Average (FAS3) for Tier 4 members
 and Five-Year Average (FAS5) for Tier 6 members.
   * Vested benefit:
   * Eligibility is:
   * At least five, but less than 25, years of Credited Service for  Tier
 4 and Tier 6 members.
   * Payable at:
   *  The  date  the  member  would  have  completed 25 years of Credited
 Service for Tier 4, and
   * Age 63 for Tier 6.
   * Amount:
   * 2% of FAS for each year of Credited Service.
   * Other benefits: Members of the proposed WSP 25-Year Plan  are  enti-
 tled  to the same disability and death benefits as other Tier 4 and Tier
 6 members under the respective basic plans.
   ADDITIONAL MEMBER CONTRIBUTIONS: Members of the WSP 25-Year  Plan  are
 required  to make, in addition to the Basic Member Contributions, to the
 extent payable, Additional Member Contributions equal to 6%  of  compen-
 sation  for  all service as a Plan participant on and after the starting
 date of the Plan until the later of a maximum of 30  years  of  Credited
 Service or the one year anniversary of the enactment of the Plan.
   FINANCIAL  IMPACT  - ACTUARIAL PRESENT VALUES:  With respect to NYCERS
 and based on the anticipated group of members joining  the  WSP  25-Year
 Plan  and the actuarial assumptions and methods described herein, if the
 proposed legislation were enacted, the Actuarial Present Value (APV)  of
 Benefits (APVB) would increase by approximately $2.3 million, consisting
 of  an  increase  in  APV  of member contributions of approximately $1.5
 million, and an increase in APV  of  future  employer  contributions  of
 approximately $0.8 million.

 S. 6573--A                         19
 
   Under  the Entry Age Normal cost method used to determine the employer
 contributions to NYCERS, there would be  an  increase  in  the  Unfunded
 Accrued  Liability  (UAL)  of  approximately  $2.2  million  offset by a
 decrease in the APV of future employer Normal Cost of $1.4 million.  The
 decrease  in  the APV of future employer Normal Cost is primarily due to
 the expected future working lifetime of the affected members.
   FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In  accordance  with
 ACCNY Section 13.638.2(k-2), new UAL attributable to benefit changes are
 to  be  amortized  as  determined  by the Actuary but generally over the
 remaining working lifetime of those impacted by the benefit changes.  As
 of June 30, 2017, if this proposed legislation is enacted, the remaining
 working  lifetime of the Water Supply Police Members assumed to join the
 WSP 25-Year Plan is approximately 13 years.
   For this proposed legislation, the increase in UAL of $2.2 million was
 amortized over a 13-year period (12  payments  under  the  One-Year  Lag
 Methodology)  using  level  dollar  payments resulting in an increase in
 annual employer contributions beginning with approximately $259,000  per
 year.
   CONTRIBUTION  TIMING:  If  enacted during the 2018 Legislative Session
 before June 30, 2018,  the  WSP  25-Year  Plan  would  likely  first  be
 reflected  in the June 30, 2018 census data. In accordance with the One-
 Year Lag Methodology (OYLM) used to  determine  employer  contributions,
 the  increase  in  employer  contributions  would  first be reflected in
 Fiscal Year 2020.
   OTHER COSTS: Not measured in this Fiscal Note are the following:
   * The initial, additional administrative costs  of  NYCERS  and  other
 City agencies to implement the proposed legislation.
   *  The  impact  of  this  proposed legislation on Other Postemployment
 Benefit (OPEB) costs.
   CENSUS DATA: The census data used for the calculations presented here-
 in is as of June 30, 2017. This data, under the OYLM, will  be  used  to
 determine  the  Fiscal  Year 2019 employer contributions for members who
 are eligible for and who could potentially benefit  from  this  proposed
 legislation.
   Census data is submitted by NYCERS administrative staff, participating
 employers'  payroll  facilities, Office of Payroll Administration (OPA),
 and Financial Information Services Agency  (FISA).  This  data  is  then
 reviewed  by the Office of the Actuary (OA) for consistency and reasona-
 bility.
   Where applicable, June 30, 2017 salaries have  been  adjusted  by  the
 Actuary  to reflect contract settlements with retroactive effect and the
 assumption of pattern bargaining. Estimates of liabilities  attributable
 to  the  related  additional  benefits  payable have been applied to the
 results contained herein.
   The 53 eligible Water Supply  Police  Members  as  of  June  30,  2017
 assumed to join the WSP 25-Year Plan had an average age of approximately
 38.0, average service of approximately 13.8 years, and an average annual
 salary of approximately $72,031.
   ACTUARIAL  ASSUMPTIONS  AND  METHODS: The additional employer contrib-
 utions presented herein have been calculated based on the same actuarial
 assumptions and methods in effect for the June 30, 2016 (Lag)  actuarial
 valuations  used  to determine the Preliminary Fiscal Year 2018 employer
 contributions of NYCERS except that  the  actuarial  method  includes  a
 change  in  the  application of the Entry Age Normal cost method. Please
 note these assumptions and methods are subject to change as  this  valu-
 ation is not considered final until the end of the Fiscal Year 2018.

 S. 6573--A                         20
 
   To  determine the impact of the elective nature of the proposed legis-
 lation, a subgroup of Water Supply Police Members was developed based on
 who would potentially benefit actuarially. The net APV of future employ-
 er costs (i.e the APVB less the APV of future member  contributions)  of
 each  member's benefit was determined under their current plan and under
 the WSP 25-Year Plan. If the net APV of future employer cost  under  the
 WSP 25-Year Plan was greater than or equal to the APV of future employer
 cost  under  the member's current plan, the member was deemed to benefit
 actuarially and is assumed to participate in the WSP 25-Year Plan.
   Based on this analysis, it was determined that those members  who  are
 hired after the age of 30 and have the option of joining the WSP 25-Year
 Plan  in  the future will not benefit actuarially from the Plan.  There-
 fore, it was further assumed that future Plan participation, in addition
 to those existing members who will benefit from the Plan, will be limit-
 ed to those hired at the age of 30 or younger who are mandated into  the
 Plan.  However,  since  it  is expected that Water Supply Police Members
 hired at the age of 30 or younger will generally not benefit  under  the
 plan  (i.e.  they  have  a  decrease  in APV of future employer costs as
 compared to the Tier 6 63/10 Plan that they would otherwise  participate
 in absent this proposed legislation), the costs presented in this Fiscal
 Note are borne only form current NYCERS members who are assumed to bene-
 fit from, and thus opt to join, the WSP 25-Year Plan.
   STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
 ary for, and independent of, the New York City  Retirement  Systems  and
 Pension  Funds.  I  am a Fellow of the Society of Actuaries, an Enrolled
 Actuary under the Employee Retirement Income and Security  Act  of  1974
 (ERISA),  a Member of the American Academy of Actuaries, and a Fellow of
 the Conference of Consulting Actuaries. I meet the Qualification  Stand-
 ards  of the American Academy of Actuaries to render the actuarial opin-
 ion contained herein. To the best of my knowledge, the results contained
 herein have been prepared in accordance with generally accepted actuari-
 al principles and procedures, and with the Actuarial Standards of  Prac-
 tice issued by the Actuarial Standards Board.
   FISCAL  NOTE IDENTIFICATION:  This Fiscal Note 2018-11 dated March 23,
 2018, was prepared by the Chief Actuary for the New York City Employees'
 Retirement System. This estimate is intended for  use  only  during  the
 2018 Legislative Session.