The New York State Senate

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

                                 6100--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
  -- recommitted 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  commit-
  tee

AN  ACT  to amend the retirement and social security law, in relation to
  eligibility of uniformed personnel of the New York city department  of
  correction for ordinary disability benefits

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

  Section 1. Section 507-a of the retirement and social security law  is
amended by adding a new subdivision f to read as follows:
  F.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  LAW, THERE SHALL BE NO
RESTRICTIONS ON THE EARNINGS  FROM  EMPLOYMENT  NOT  IN  PUBLIC  SERVICE
PERMITTED  TO  A  MEMBER OF THE UNIFORMED PERSONNEL OF THE NEW YORK CITY
DEPARTMENT OF CORRECTION WHO:
  1. HAS RETIRED PURSUANT TO THE PROVISIONS OF THIS SECTION; AND
  2. WAS SUBJECT TO THE PROVISIONS OF (I) SUBDIVISION D OF SECTION  FIVE
HUNDRED FOUR OF THIS ARTICLE, (II) SUBDIVISION C OF SECTION FIVE HUNDRED
FOUR-A  OF  THIS ARTICLE, OR (III) SUBDIVISION C OF SECTION FIVE HUNDRED
FOUR-B OF THIS ARTICLE PRIOR TO HIS OR HER RETIREMENT, SUBSEQUENT TO THE
DATE AS OF WHICH HE OR SHE WOULD HAVE BEEN ELIGIBLE FOR SERVICE  RETIRE-
MENT.
  § 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  SUMMARY  OF  BILL: The proposed legislation would amend Retirement and
Social Security Law (RSSL) Section 507-a by adding a new  subdivision  f
to  remove  post-retirement  earnings  restrictions  from private sector
employment for periods after the applicable service retirement eligibil-
ity date for certain retired uniformed personnel of the  New  York  City

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

                                                           LBD06033-02-8

S. 6100--A                          2

Department  of  Correction who are receiving certain disability benefits
from the New York City Employees' Retirement System (NYCERS).
  Effective Date: Upon enactment.
  IMPACT  ON BENEFITS: NYCERS restricts the total calendar year Personal
Service Income (PSI) resulting from all public  and  private  employment
for  certain  retirees, including certain Tier 3 correction officers who
receive  disability  retirement  benefits  under  RSSL   Section   507-a
(Correction Disability Retiree).
  If  a  Correction Disability Retiree's PSI from all public and private
employment exceeds the NYCERS PSI limitation for the calendar year, then
such retiree's disability pension is suspended for 12 months. The NYCERS
PSI limitation for 2016 was $29,900 and increases  each  year  with  the
Consumer Price Index.
  If  the  proposed  legislation is enacted, Correction Disability Reti-
rees, who were Tier 3 correction members in the Early Service Retirement
Benefit Plan for General Members, the Correction Officer 20-year Plan or
the Correction Captain 20-year Plan, would no longer be subject  to  the
PSI limitation for private employment earnings after the date they would
have  been  eligible to receive a service retirement in their respective
plan.
  For purposes of this fiscal note, it was assumed that Correction Disa-
bility Retirees would continue to be limited  by  other  post-retirement
earnings  restrictions such as New York City Charter (NYCC) Section 1117
and RSSL Section 212.
  NYCC Section 1117 limits the PSI for any NYCERS retiree to $1,800  per
year  from  most  public employment within New York State (including New
York City). PSI from those sources that exceeds  $1,800  per  year  will
result  in  a suspension of the retiree's pension. However, NYCC Section
1117 places no limits on the amounts of PSI  that  may  be  earned  from
private  employment.  RSSL  Section  212  limits a retiree to earn up to
$30,000 per year from post-retirement public employment, notwithstanding
NYCC Section 1117, if certain conditions are met.
  FINANCIAL IMPACT - EMPLOYER COSTS: The change in employer costs  would
depend  upon  the  amount  and  timing of pension payments that would no
longer be suspended due to this legislation.
  To the extent the NYCERS earnings limitation  would  have  applied  in
Calendar  Years  2018  and  later,  Correction Disability Retirees whose
post-retirement earnings exceeded the  PSI  limitation  would  have  had
their  pension  suspended for 12 months in years after the date on which
they would have become eligible for service retirement.
  Enactment of the legislation would eliminate the reduction in benefits
to those Correction Disability Retirees whose  PSI  exceeds  the  NYCERS
earnings  limitation  after  the  date  on  which they would have become
eligible for service retirement.
  Because few, if any,  Correction  Disability  Retirees'  benefits  are
suspended  due  to  PSI that exceeds the NYCERS earnings limitation, the
increase in benefits would likely be de minimis.
  OTHER COSTS: Not  measured  in  this  Fiscal  Note  are  any  possible
increased administrative costs attributable to enactment of the proposed
legislation.
  ACTUARIAL  ASSUMPTIONS  AND  METHODS:  The  additional  employer costs
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. Please note these assumptions and methods are

S. 6100--A                          3

subject to change as this valuation is not considered  final  until  the
end of the Fiscal Year 2018.
  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 2018-13 dated March 29,
2018, was prepared by the Chief Actuary for  New  York  City  Employees'
Retirement  System.  This  estimate  is intended for use only during the
2018 Legislative Session.