S T A T E O F N E W Y O R K
________________________________________________________________________
8557--A
I N S E N A T E
May 10, 2018
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Cities -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the administrative code of the city of New York, in
relation to the rate of interest used in the actuarial valuation of
liabilities for the purpose of calculating contributions to the New
York city employees' retirement system, the New York city teachers'
retirement system, the police pension fund, subchapter two, the fire
department pension fund, subchapter two and the board of education
retirement system of such city by public employers and other obligors
required to make employer contributions to such retirement systems,
the crediting of special interest and additional interest to members
of such retirement systems, and the allowance of supplementary inter-
est on the funds of such retirement systems
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 2 of subdivision b of section 13-638.2 of the
administrative code of the city of New York, as amended by chapter 71 of
the laws of 2017, is amended to read as follows:
(2) With respect to each retirement system, such rate of interest
shall be as hereinafter set forth in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 7% July 1, 2011 to
June 30, [2018] 2019
NYCTRS 7% July 1, 2011 to
June 30, [2018] 2019
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15846-03-8
S. 8557--A 2
PPF 7% July 1, 2011 to
June 30, [2018] 2019
FPF 7% July 1, 2011 to
June 30, [2018] 2019
BERS 7% July 1, 2011 to
June 30, [2018] 2019
§ 2. Paragraph 2 of subdivision f of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 71 of the
laws of 2017, is amended to read as follows:
(2) Such special interest shall be allowed at the rates and for the
periods set forth below in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 1 1/4% July 1, 2011 to
June 30, [2018] 2019
NYCTRS 1 1/4% July 1, 2011 to
June 30, [2018] 2019
PPF 1 1/4% July 1, 2011 to
June 30, [2018] 2019
FPF 1 1/4% July 1, 2011 to
June 30, [2018] 2019
BERS 1 1/4% July 1, 2011 to
June 30, [2018] 2019
§ 3. Paragraph 2 of subdivision g of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 71 of the
laws of 2017, is amended to read as follows:
(2) Such additional interest shall be included at the rates and for
the periods set forth below in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 1 1/4% July 1, 2011 to
June 30, [2018] 2019
NYCTRS 1 1/4% July 1, 2011 to
June 30, [2018] 2019
PPF 1 1/4% July 1, 2011 to
June 30, [2018] 2019
FPF 1 1/4% July 1, 2011 to
June 30, [2018] 2019
BERS 1 1/4% July 1, 2011 to
June 30, [2018] 2019
S. 8557--A 3
§ 4. Paragraph 2 of subdivision i of section 13-638.2 of the adminis-
trative code of the city of New York, as amended by chapter 71 of the
laws of 2017, is amended to read as follows:
(2) Such supplementary interest shall be allowed at the rates and for
the periods set forth below in this paragraph:
First day and
last day of
Rate of interest fiscal year or
per centum per series of fiscal
Retirement annum, compounded years for which
System annually rate is effective
________________________________________________________________________
NYCERS 0% July 1, 2011 to
June 30, [2018] 2019
NYCTRS 0% July 1, 2011 to
June 30, [2018] 2019
PPF 0% July 1, 2011 to
June 30, [2018] 2019
FPF 0% July 1, 2011 to
June 30, [2018] 2019
BERS 0% July 1, 2011 to
June 30, [2018] 2019
§ 5. This act shall take effect July 1, 2018, except that if it shall
have become a law subsequent to such date, this act shall take effect
immediately and be deemed to have been in full force and effect on and
after July 1, 2018.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY OF BILL: The enactment of this proposed legislation (the
Interest Rate Extender Legislation) would amend Administrative Code of
the City of New York (ACCNY) Section 13-638.2, as amended by Chapter 71
of the Laws of 2017, to continue for Fiscal Year 2019 the following
rates of interest that expire on July 1, 2018 for the five actuarially-
funded New York City Retirement Systems and Pension Funds (NYCRS):
* The 8.25% per annum rate used to credit interest on Tier 1 and Tier
2 member account balances (the sum of the 7.00% regular interest rate
and the 1.25% special interest rate) and Increased-Take-Home-Pay (ITHP)
Reserves (the sum of the 7.00% regular interest rate and the 1.25% addi-
tional interest rate), and
* The 7.00% per annum Actuarial Interest Rate (AIR) assumption used to
compute employer contributions.
Effective Date for this proposed legislation: July 1, 2018.
FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The continuation for Fiscal
Year 2019 of the same 8.25% per annum rate that was used for Fiscal Year
2018 to credit interest on Tier 1 and Tier 2 member contributions and
ITHP Reserves would not change the amount or timing of expected employer
contributions.
The continuation for Fiscal Year 2019 of the AIR assumption of 7.00%
per annum that was used to determine preliminary employer contributions
to the NYCRS for Fiscal Year 2018 would not change the expected amount
or timing of employer contributions.
OTHER COSTS: Enactment of this proposed legislation would not be
expected to produce any additional costs.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Retirement Systems and
S. 8557--A 4
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 2018-01 dated January 22,
2018, was prepared by the Chief Actuary for the New York City Retirement
Systems and Pension Funds. This estimate is intended for use only during
the 2018 Legislative Session.
