NY State Senate Bill 2017-S6460

Senate Bill S6460

Signed By Governor

2017-2018 Legislative Session

Relates to allowing certain members, upon retirement, to use any basic or additional member contributions to offset any deficits in such other contribution account

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Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 18, 2017	signed chap.467
Dec 06, 2017	delivered to governor
Jun 21, 2017	returned to senate passed assembly ordered to third reading rules cal.619 substituted for a8055
Jun 15, 2017	referred to governmental employees delivered to assembly passed senate
Jun 14, 2017	ordered to third reading cal.1766 committee discharged and committed to rules
May 23, 2017	referred to civil service and pensions

Votes

- Jun 15, 2017 - Floor Vote
  S6460
  
  60
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 15, 2017
      
      aye (60)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (3)
      
      Bailey
      
      Diaz
      
      Marcellino
  Jun 14, 2017 - Rules Committee Vote
  S6460
  
  23
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 14, 2017
      
      aye (23)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Larkin
      
      Little
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Squadron
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (1)
      
      LaValle
      
      absent (1)
      
      Marcellino

2017-S6460 (ACTIVE) - Details

See Assembly Version of this Bill:: A8055
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd R & SS L, generally

2017-S6460 (ACTIVE) - Summary

Relates to allowing certain members, upon retirement, to use any basic or additional member contributions to offset any deficits in such other contribution account; relates to the definition of additional member contributions and basic member contributions for certain New York city employees' retirement system members who are subject to certain retirement plans under articles 14 and 15 of the retirement and social security law; allows such additional member contributions to be used to offset a deficit of basic member contributions or to allow an excess of basic member contributions to offset a deficit of additional member contributions upon retirement.

2017-S6460 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6460

 TITLE OF BILL :

An act to amend the retirement and social security law, in relation to
the definition of additional member contributions and basic member
contributions for certain New York city employees' retirement system
members who are subject to certain retirement plans under articles 14
and 15 of the retirement and social security law, to allow such
additional member contributions to be used, to offset a deficit of
basic member contributions, or to allow an excess of basic member
contributions to offset a deficit of additional member contributions
upon retirement

 SUMMARY OF PROVISIONS :

This bill amends Retirement and Social Security Law ("RSSL") §§
504-a(e)(8)(i); 504- b(e)(12)(i); 504-d(e)(9)(i); 517(d);
604-a(e)(8)(i); 604-b(e)(8)(i); 604-c(d)(7)(i) (as added by Chapter 96
of the Laws of 1995); 604-c(e)(8)(i) (as added by Chapter 472 of the
Laws of 1995); 604-d(f)(6)(i); 604-e(e)(10)(i)(as added by Chapter 576
of the Laws of 2000); 604-e(e) (as added by Chapter 577 of the Laws of
2000); 504-f(e)(10)(i) (as added by Chapter 559 of the Laws of 2001);
604-f(e)(10)(i)) (as added by Chapter 582 of the Laws of 2001);
604-g(e) and 604-h(e)(10)(i); (the "Special Plans") and adds
subdivision (h) to RSSL § 613 to allow New York City Employees'

Retirement System ("NYCERS") members who are subject to the Special
Plans in Articles 14 and 15 of the RSSL and required to pay additional
member contributions, to, upon the separation from New York City
service as a result of retirement, use a surplus of additional member
contributions paid into the retirement system to offset a deficit in
the member's basic member contributions account, and vice versa.

 REASONS FOR SUPPORT :

The proposed legislation expands the definition of additional member
contributions and basic member contributions by allowing a participant
of one of the Special Plans ("Special Plan participant") to, upon
retirement, use a surplus in his or her additional member
contributions account to offset a deficit in his or her basic member
contributions account, and, likewise, to use a surplus in his or her
basic member contributions account to offset a deficit in his or her
additional member contributions account.

Currently, under the Special Plans additional member contributions and
basic member contributions must only be used to satisfy the
requirements of the type of contributions that it was originally
collected for. The law specifically states that the contributions
cannot be used for any other purpose. Further, where a Special Plan
requires that all additional member contributions be paid prior to
retirement and the Special Plan participant has a deficit, the
participant will either not be eligible for a retirement benefit under
the Plan or the participant must retire with an actuarial reduction.
Consequently, if a Special Plan participant has a deficit at
retirement in a Plan that does not allow for an actuarial reduction,
he or she must first pay the retirement system the balance of a
deficit in additional member contributions before the participant may
retire. Due to the limitation in the law regarding the use of
additional member contributions and basic contributions, the
retirement system cannot use one type of contribution to remedy a
deficit of the other type of contribution. Rather, the retirement
system and Special Plan participant must undergo a series of costly
and timely administrative steps that require the retirement system to
process the surplus and the deficit separately. The retirement system
must process a check to refund money from a surplus in one account,

only to make the participant pay back the deficit in another account
before the member may retire under his or her respective Special Plan.

The proposed legislation cures these administrative ailments. Indeed,
this bill eliminates the need for all of the separate processing steps
by expanding the definition and use of additional member contributions
and basic member contributions for the sole purpose of remedying a
deficit upon retirement. This bill does not change the use of
additional member contributions and basic member contributions for any
other purpose. Instead, it eliminates the need for the retirement
system to request payment from the participant before he or she may
retire, thus expediting the retirement process and reducing the risk
of a Special Plan participant being ineligible for a retirement
benefit or receiving a reduced retirement benefit under his or her
respective Special Plan. By allowing the retirement system to, solely
upon the member's retirement, use a surplus of additional member
contributions to remedy a deficit in the member's basic member
contributions, and vice versa, this legislation aides in the
administrative efficiency of the retirement system and eliminates some
burdens on Special Plan participant.

Accordingly, the NYCERS Board of Trustees urges the favorable
consideration of this proposal by the Legislature.

 EFFECTIVE DATE OF THE BILL :

This act shall take effect immediately.

 BUDGETARY IMPLICATIONS OF THE BILL :

FISCAL NOTE

2017-S6460 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6460
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 23, 2017
                                ___________
 
 Introduced  by  Sen.  SAVINO -- 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
   the  definition  of  additional  member contributions and basic member
   contributions for certain New York city employees'  retirement  system
   members  who are subject to certain retirement plans under articles 14
   and 15 of the retirement and social security law, to allow such  addi-
   tional  member  contributions to be used, to offset a deficit of basic
   member contributions, or to allow an excess of basic  member  contrib-
   utions  to  offset  a  deficit of additional member contributions upon
   retirement
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (i) of paragraph 8 of subdivision e of section
 504-a  of  the retirement and social security law, as amended by chapter
 631 of the laws of 1993, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section five hundred seventeen of this article or otherwise
 while he or she is a participant in the twenty-year  retirement  program
 or  otherwise,  EXCEPT THAT, UPON THE PARTICIPANT'S SEPARATION FROM CITY
 SERVICE AS A RESULT OF RETIREMENT, A SURPLUS OF SUCH  ADDITIONAL  MEMBER
 CONTRIBUTIONS  THAT  ARE  PAID  INTO  THE RETIREMENT SYSTEM'S CONTINGENT
 RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF
 BASIC MEMBER CONTRIBUTIONS.
   § 2. Subparagraph (i) of paragraph 12  of  subdivision  e  of  section
 504-b of the retirement and social security law, as added by chapter 631
 of the laws of 1993, is amended to read as follows:

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

 S. 6460                             2
 
   (i)  All  additional member contributions required by this subdivision
 (and any interest thereon) which are received by the  retirement  system
 of  which  the participant is a member shall be paid into its contingent
 reserve fund and shall not for  any  purpose  be  deemed  to  be  member
 contributions  or  accumulated  contributions  of a member under section
 five hundred seventeen of this article or otherwise while he or she is a
 participant in the twenty-year retirement program for captains and above
 or otherwise, EXCEPT THAT, UPON THE PARTICIPANT'S SEPARATION  FROM  CITY
 SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDITIONAL MEMBER
 CONTRIBUTIONS THAT ARE PAID  INTO  THE  RETIREMENT  SYSTEM'S  CONTINGENT
 RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF
 BASIC MEMBER CONTRIBUTIONS.
   § 3. Subparagraph (i) of paragraph 9 of subdivision e of section 504-d
 of  the  retirement  and social security law, as added by chapter 622 of
 the laws of 2004, is amended to read as follows:
   (i) All additional member contributions required by  this  subdivision
 (and  any  interest thereon) which are received by the retirement system
 of which the participant is a member shall be paid into  its  contingent
 reserve  fund  and  shall  not  for  any  purpose be deemed to be member
 contributions or accumulated contributions of  a  member  under  section
 five hundred seventeen of this article or otherwise while he or she is a
 participant  in  the twenty-year retirement program or otherwise, EXCEPT
 THAT, UPON THE PARTICIPANT'S SEPARATION FROM CITY SERVICE AS A RESULT OF
 RETIREMENT, A SURPLUS OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS  THAT  ARE
 PAID  INTO  THE  RETIREMENT SYSTEM'S CONTINGENT RESERVE FUND MAY BE USED
 FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF  BASIC  MEMBER  CONTRIB-
 UTIONS.
   § 4. Subdivision d of section 517 of the retirement and social securi-
 ty  law, as added by chapter 890 of the laws of 1976, is amended to read
 as follows:
   d. Notwithstanding any other provision of this article, a member shall
 be entitled to withdraw any excess contributions within  six  months  of
 becoming  subject  to  this article. Thereafter, such contributions, and
 interest thereon, may only be withdrawn upon  separation  from  service.
 Upon  retirement,  such  excess contributions, and any interest thereon,
 may be withdrawn in a single lump sum, or at the election of the  member
 may be paid as an annuity under an option authorized pursuant to section
 five hundred fourteen of this article, OR AT THE ELECTION OF THE PARTIC-
 IPANT MAY BE USED TO OFFSET A DEFICIT OF ADDITIONAL MEMBER CONTRIBUTIONS
 AS  REQUIRED  PURSUANT  TO  SECTIONS  FIVE  HUNDRED FOUR-A, FIVE HUNDRED
 FOUR-B, AND FIVE HUNDRED FOUR-D OF THIS ARTICLE. THE USE OF BASIC MEMBER
 CONTRIBUTIONS TO OFFSET A DEFICIT  OF  ADDITIONAL  MEMBER  CONTRIBUTIONS
 DOES  NOT  AFFECT THE CONTRIBUTIONS' TAX DESIGNATION PURSUANT TO SECTION
 414(H) OF THE INTERNAL REVENUE CODE.
   § 5. Subparagraph (i) of paragraph 8 of subdivision e of section 604-a
 of the retirement and social security law, as added by  chapter  547  of
 the laws of 1992, is amended to read as follows:
   (i)  Such  additional  member contributions (and any interest thereon)
 shall be paid into the contingent reserve fund of the retirement  system
 of  which  the  participant is a member and shall not for any purpose be
 deemed to be member contributions  or  accumulated  contributions  of  a
 member  under  section six hundred thirteen of this article or otherwise
 while he or she is a participant in the twenty-year  retirement  program
 or  otherwise,  EXCEPT THAT, UPON THE PARTICIPANT'S SEPARATION FROM CITY
 SERVICE AS A RESULT OF RETIREMENT, A SURPLUS OF SUCH  ADDITIONAL  MEMBER
 CONTRIBUTIONS  THAT  ARE  PAID  INTO  THE RETIREMENT SYSTEM'S CONTINGENT

 S. 6460                             3
 
 RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF
 BASIC MEMBER CONTRIBUTIONS.
   § 6. Subparagraph (i) of paragraph 8 of subdivision e of section 604-b
 of  the  retirement  and social security law, as added by chapter 529 of
 the laws of 1994, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he or she is a participant in the twenty-five-year and age fifty-
 five retirement program or otherwise,  EXCEPT  THAT,  UPON  THE  PARTIC-
 IPANT'S  SEPARATION  FROM  CITY  SERVICE  AS  A  RESULT OF RETIREMENT, A
 SURPLUS OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS THAT ARE PAID  INTO  THE
 RETIREMENT  SYSTEM'S  CONTINGENT  RESERVE  FUND MAY BE USED FOR THE SOLE
 PURPOSE OF OFFSETTING A DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   § 7. Subparagraph (i) of paragraph 7 of subdivision d of section 604-c
 of the retirement and social security law, as added by chapter 96 of the
 laws of 1995, is amended to read as follows:
   (i) All additional member contributions required by  this  subdivision
 (and  any  interest  paid  thereon) which are received by the retirement
 system of which the participant is a  member  shall  be  paid  into  its
 contingent  reserve  fund  and shall not for any purpose be deemed to be
 member contributions or accumulated  contributions  of  a  member  under
 section  six  hundred  thirteen of this article or otherwise while he or
 she is a participant in the twenty-five-year early retirement program or
 otherwise, EXCEPT THAT, UPON  THE  PARTICIPANT'S  SEPARATION  FROM  CITY
 SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDITIONAL MEMBER
 CONTRIBUTIONS THAT ARE PAID  INTO  THE  RETIREMENT  SYSTEM'S  CONTINGENT
 RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF
 BASIC MEMBER CONTRIBUTIONS.
   § 8. Subparagraph (i) of paragraph 8 of subdivision e of section 604-c
 of  the  retirement  and social security law, as added by chapter 472 of
 the laws of 1995, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while he or she is a participant in the twenty-year/age fifty retirement
 program  or  otherwise,  EXCEPT  THAT, UPON THE PARTICIPANT'S SEPARATION
 FROM CITY SERVICE AS A RESULT OF RETIREMENT, A  SURPLUS  OF  SUCH  ADDI-
 TIONAL  MEMBER  CONTRIBUTIONS THAT ARE PAID INTO THE RETIREMENT SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   § 9. Subparagraph (i) of paragraph 6 of subdivision f of section 604-d
 of the retirement and social security law, as added by chapter 96 of the
 laws of 1995, is amended to read as follows:
   (i) All additional member contributions required by  this  subdivision
 (and  any  interest  paid  thereon) which are received by the retirement
 system of which the participant is a  member  shall  be  paid  into  its
 contingent  reserve  fund  and shall not for any purpose be deemed to be
 member contributions or accumulated  contributions  of  a  member  under
 section  six  hundred  thirteen of this article or otherwise while he or
 she is a participant in the age fifty-seven retirement program or other-
 wise, EXCEPT THAT, UPON THE PARTICIPANT'S SEPARATION FROM  CITY  SERVICE

 S. 6460                             4
 
 AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDITIONAL MEMBER CONTRIB-
 UTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S  CONTINGENT  RESERVE
 FUND  MAY  BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT OF BASIC
 MEMBER CONTRIBUTIONS.
   §  10.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
 604-e of the retirement and social security law, as added by chapter 576
 of the laws of 2000, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he  or  she  is  a participant in the twenty-five year retirement
 program or otherwise, EXCEPT THAT,  UPON  THE  PARTICIPANT'S  SEPARATION
 FROM  CITY  SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDI-
 TIONAL MEMBER CONTRIBUTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   §  11.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
 604-e of the retirement and social security law, as added by chapter 577
 of the laws of 2000, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he  or  she  is  a participant in the twenty-five year retirement
 program or otherwise, EXCEPT THAT,  UPON  THE  PARTICIPANT'S  SEPARATION
 FROM  CITY  SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDI-
 TIONAL MEMBER CONTRIBUTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   §  12.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
 604-f of the retirement and social security law, as added by chapter 559
 of the laws of 2001, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he  or  she  is  a participant in the twenty-five year retirement
 program or otherwise, EXCEPT THAT,  UPON  THE  PARTICIPANT'S  SEPARATION
 FROM  CITY  SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDI-
 TIONAL MEMBER CONTRIBUTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   §  13.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
 604-f of the retirement and social security law, as added by chapter 582
 of the laws of 2001, is amended to read as follows:
   (i) Such additional member contributions, and  any  interest  thereon,
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he  or  she  is  a participant in the twenty-five year retirement
 program or otherwise, EXCEPT THAT,  UPON  THE  PARTICIPANT'S  SEPARATION

 S. 6460                             5
 
 FROM  CITY  SERVICE  AS  A RESULT OF RETIREMENT, A SURPLUS OF SUCH ADDI-
 TIONAL MEMBER CONTRIBUTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   §  14.  Subparagraph  (i)  of paragraph 10 of subdivision e of section
 604-g of the retirement and social security law, as added by chapter 414
 of the laws of 2002, is amended to read as follows:
   (i) Such additional member contributions (and  any  interest  thereon)
 shall  be paid into the contingent reserve fund of the retirement system
 of which the participant is a member and shall not for  any  purpose  be
 deemed  to  be  member  contributions  or accumulated contributions of a
 member under section six hundred thirteen of this article  or  otherwise
 while  he  or  she  is  a  participant in the twenty-five year/age fifty
 retirement program or otherwise, EXCEPT  THAT,  UPON  THE  PARTICIPANT'S
 SEPARATION  FROM  CITY  SERVICE  AS A RESULT OF RETIREMENT, A SURPLUS OF
 SUCH ADDITIONAL MEMBER CONTRIBUTIONS THAT ARE PAID INTO  THE  RETIREMENT
 SYSTEM'S  CONTINGENT  RESERVE  FUND  MAY BE USED FOR THE SOLE PURPOSE OF
 OFFSETTING A DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   § 15. Subparagraph (i) of paragraph 10 of  subdivision  e  of  section
 604-h of the retirement and social security law, as added by chapter 682
 of the laws of 2003, is amended to read as follows:
   (i)  Such  additional  member contributions (and any interest thereon)
 shall be paid into the contingent reserve fund of the retirement  system
 of  which  the  participant is a member and shall not for any purpose be
 deemed to be member contributions  or  accumulated  contributions  of  a
 member  under  section six hundred thirteen of this article or otherwise
 while he or she is a participant  in  the  twenty-five  year  retirement
 program  or  otherwise,  EXCEPT  THAT, UPON THE PARTICIPANT'S SEPARATION
 FROM CITY SERVICE AS A RESULT OF RETIREMENT, A  SURPLUS  OF  SUCH  ADDI-
 TIONAL  MEMBER  CONTRIBUTIONS THAT ARE PAID INTO THE RETIREMENT SYSTEM'S
 CONTINGENT RESERVE FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A
 DEFICIT OF BASIC MEMBER CONTRIBUTIONS.
   § 16. Section 613 of the retirement and social security law is amended
 by adding a new subdivision h to read as follows:
   H. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  UPON
 THE  PARTICIPANT'S  SEPARATION  FROM CITY SERVICE AS A RESULT OF RETIRE-
 MENT, A PARTICIPANT MAY USE ANY EXCESS  BASIC  MEMBER  CONTRIBUTIONS  TO
 OFFSET A DEFICIT OF ADDITIONAL MEMBER CONTRIBUTIONS AS REQUIRED PURSUANT
 TO  SECTIONS SIX HUNDRED FOUR-A, SIX HUNDRED FOUR-B, SIX HUNDRED FOUR-C,
 AS ADDED BY CHAPTER 96 OF THE LAWS OF 1995, SIX HUNDRED FOUR-C, AS ADDED
 BY CHAPTER 472 OF THE LAWS OF 1995,  SIX  HUNDRED  FOUR-D,  SIX  HUNDRED
 FOUR-E, AS ADDED BY CHAPTER 576 OF THE LAWS OF 2000, SIX HUNDRED FOUR-E,
 AS  ADDED  BY  CHAPTER  577  OF THE LAWS OF 2000, SIX HUNDRED FOUR-F, AS
 ADDED BY CHAPTER 559 OF THE LAWS OF 2001, SIX HUNDRED FOUR-F,  AS  ADDED
 BY  CHAPTER 582 OF THE LAWS OF 2001, SIX HUNDRED FOUR-G, AND SIX HUNDRED
 FOUR-H OF THIS ARTICLE. THE USE OF BASIC MEMBER CONTRIBUTIONS TO  OFFSET
 A  DEFICIT  OF  ADDITIONAL  MEMBER  CONTRIBUTIONS  DOES  NOT  AFFECT THE
 CONTRIBUTIONS' TAX DESIGNATION PURSUANT TO SECTION 414(H) OF THE  INTER-
 NAL REVENUE CODE.
   § 17. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   PROVISIONS  OF  PROPOSED  LEGISLATION: This proposed legislation would
 amend the contribution provisions applicable to certain  New  York  City
 Employees'  Retirement  System (NYCERS) Special Plans subject to Retire-
 ment and Social Security Law (RSSL) Article 14 and Article 15 to  allow,

 S. 6460                             6

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

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