NY State Senate Bill S5585B

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (6)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 26, 2020	print number 5585b
Mar 26, 2020	amend and recommit to civil service and pensions
Jan 08, 2020	referred to civil service and pensions
May 31, 2019	print number 5585a
May 31, 2019	amend and recommit to civil service and pensions
May 08, 2019	referred to civil service and pensions

Bill Amendments

Original

B (Active)

Original

B (Active)

S5585 - Details

See Assembly Version of this Bill:: A8181
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §443, R & SS L
Versions Introduced in 2021-2022 Legislative Session:: S6405, A7640

S5585 - Summary

Provides that the salary base for members of the city of New York fire department pension fund whose employment with the fire department of the city of New York commenced on or after July 1, 2000 shall be determined in the same manner as members whose employment commenced prior to such date.

S5585 - Sponsor Memo

 
BILL NUMBER: S5585

SPONSOR: GOUNARDES
 
TITLE OF BILL:  An act to amend the retirement and social security
law, in relation to determination of salary base for members of the city
of New York fire department pension fund

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide parity amongst all of the Tier 2 members of the New York City
Fire Department Pension Fund in the calculation of their salary bases

 
SUMMARY OF PROVISIONS:

Section 1 amends section 443 of the retirement and social security law
by adding a new subdivision h to provide that the salary base for
members of the New York City fire department pension fund hired on or
after July 1st, 2000 covered under this article of law shall be calcu-
lated in the same manner as those members hired prior to July 1st, 2000.

JUSTIFICATION:

The New York City Fire Department Pension Fund system breaks its members
into different tiers that are subject to different benefits and service
requirements based on the date of the member's hire. For all Tier 1 and
Tier 2 members, pensions are equal to 50% of their final average salary
(FAS) when they go to retire after a certain amount of years of service.

Within Tier 2, which encompasses hires from July 1st, 1973 until June
30th, 2009, there is a single and significant disparity in member bene-
fits: those who commenced service before July 1st, 2000 (the "original"
Tier 2 members) have their final average salary based on their most
recent 12 months or a 3-year average from their highest-earning years,
whichever is higher, while those who commenced service after July 1st,
2000 (the "new" Tier 2 members) base their FAS on the most recent 12
months of service, with no opportunity to look at averages over a longer
period of time.

This is a small but important distinction, as the amount of overtime a
firefighter will work varies greatly year to year, and basing final
salary on only the 12 months prior to retirement often denies these
members the ability to have their pension reflect the strenuous and
lengthy hours of their peak years.

This disparity does a disservice to the strongest and most dedicated of
this class of civil servants who put in long and demanding hours to save
lives, only to see these hours severely discounted for the purposes of
calculating a pension. This bill will correct this historical wrong by
clarifying that all members of Tier 2 of the New York City Fire Depart-
ment Pension Fund should be subject to the same FAS calculation.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately.

S5585 - Bill Text download pdf


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

                                  5585

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                               May 8, 2019
                               ___________

Introduced by Sen. GOUNARDES -- 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
  determination of salary base for members of the city of New York  fire
  department pension fund

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

  Section 1. Section 443 of the retirement and social  security  law  is
amended by adding a new subdivision h to read as follows:
  H.  NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW, CHARTER, ADMIN-
ISTRATIVE CODE, AGREEMENT, RESOLUTION  OR  RULE  OR  REGULATION  TO  THE
CONTRARY,  THE  SALARY  BASE  FOR  MEMBERS  OF THE CITY OF NEW YORK FIRE
DEPARTMENT PENSION FUND WHOSE EMPLOYMENT WITH THE FIRE DEPARTMENT OF THE
CITY OF NEW YORK COMMENCED ON OR AFTER THE FIRST OF JULY,  TWO  THOUSAND
TO  WHOM  THIS ARTICLE OTHERWISE APPLIES SHALL BE DETERMINED IN THE SAME
MANNER AS THE SALARY BASE FOR MEMBERS OF  THE  CITY  OF  NEW  YORK  FIRE
DEPARTMENT PENSION FUND WHOSE EMPLOYMENT WITH THE FIRE DEPARTMENT OF THE
CITY OF NEW YORK COMMENCED BEFORE THE FIRST OF JULY, TWO THOUSAND.
  § 2. This act shall take effect immediately and shall apply to members
of  the  city of New York fire department pension fund who retire on and
after such effective date.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11504-02-9

Co-Sponsors

S5585A - Details

See Assembly Version of this Bill:: A8181
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §443, R & SS L
Versions Introduced in 2021-2022 Legislative Session:: S6405, A7640

S5585A - Summary

S5585A - Sponsor Memo

 
BILL NUMBER: S5585A              REVISED 06/03/19

SPONSOR: GOUNARDES
 
TITLE OF BILL:  An act to amend the retirement and social security
law, in relation to determination of salary base for members of the city
of New York fire department pension fund

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide parity amongst all of the Tier 2 members of the New York City
Fire Department Pension Fund in the calculation of their salary bases

 
SUMMARY OF PROVISIONS:

Section 1 amends section 443 of the retirement and social security law
by adding a new subdivision h to provide that the salary base for
members of the New York City fire department pension fund hired on or
after July 1st, 2000 covered under this article of law shall be calcu-
lated in the same manner as those members hired prior to July 1st, 2000.

Section 2 provides that this act shall take effect immediately.

 
JUSTIFICATION:

The New York City Fire Department Pension Fund system breaks its members
into different tiers that are subject to different benefits and service
requirements based on the date of the member's hire. For all Tier 1 and
Tier 2 members, pensions are equal to 50% of their final average salary
(FAS) when they go to retire after a certain amount of years of service.

Within Tier 2, which encompasses hires from July 1st, 1973 until June
30th, 2009, there is a single and significant disparity in member bene-
fits: those who commenced service before July 1st, 2000 (the "original"
Tier 2 members) have their final average salary based on their most
recent 12 months or a 3-year average from their highest-earning years,
whichever is higher, while those who commenced service after July 1st,
2000 (the "new" Tier 2 members) base their FAS on the most recent 12
months of service, with no opportunity to look at averages over a longer
period of time.

This is a small but important distinction, as the amount of overtime a
firefighter will work varies greatly year to year, and basing final
salary on only the 12 months prior to retirement often denies these
members the ability to have their pension reflect the strenuous and
lengthy hours of their peak years.

This disparity does a disservice to the strongest and most dedicated of
this class of civil servants who put in long and demanding hours to save
lives, only to see these hours severely discounted for the purposes of
calculating a pension. This bill will correct this historical wrong by
clarifying that all members of Tier 2 of the New York City Fire Depart-
ment Pension Fund should be subject to the same FAS calculation.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

See bill.

 
EFFECTIVE DATE:  This act shall take effect immediately.

S5585A - Bill Text download pdf


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

                                 5585--A

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                               May 8, 2019
                               ___________

Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the retirement and social security law, in  relation  to
  determination  of salary base for members of the city of New York fire
  department pension fund

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

  Section  1.  Section  443 of the retirement and social security law is
amended by adding a new subdivision h to read as follows:
  H. NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW, CHARTER,  ADMIN-
ISTRATIVE  CODE,  AGREEMENT,  RESOLUTION  OR  RULE  OR REGULATION TO THE
CONTRARY, THE SALARY BASE FOR MEMBERS OF  THE  CITY  OF  NEW  YORK  FIRE
DEPARTMENT PENSION FUND WHOSE EMPLOYMENT WITH THE FIRE DEPARTMENT OF THE
CITY  OF  NEW YORK COMMENCED ON OR AFTER THE FIRST OF JULY, TWO THOUSAND
TO WHOM THIS ARTICLE OTHERWISE APPLIES SHALL BE DETERMINED IN  THE  SAME
MANNER  AS  THE  SALARY  BASE  FOR  MEMBERS OF THE CITY OF NEW YORK FIRE
DEPARTMENT PENSION FUND WHOSE EMPLOYMENT WITH THE FIRE DEPARTMENT OF THE
CITY OF NEW YORK COMMENCED BEFORE THE FIRST OF JULY, TWO THOUSAND.
  § 2. This act shall take effect immediately and shall apply to members
of the city of New York fire department pension fund who retire  on  and
after such effective date.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  SUMMARY  OF BILL: This proposed legislation would amend Section 443 of
the Retirement and Social Security Law (RSSL) to change the salary  base
for Tier 2 members of the New York City Fire Pension Fund (FIRE) who are
hired  on  or  after July 1, 2000 to a salary base used for such members
who joined prior to July 1, 2000.
  Effective Date: Upon enactment.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11504-03-9

S. 5585--A                          2

  IMPACT ON BENEFITS: Currently, Tier 2 FIRE plan benefits are primarily
derived from a salary base. For Tier 2 FIRE members hired prior to  July
1,  2000  (original  Tier  2  members),  the salary base is equal to the
greater of
  (1) the pensionable earnings in the final 12 months of service, or
  (2)  the  average pensionable earnings earned in any consecutive three
years of service.
  Pensionable earnings in the final 12 months of service may not  exceed
120% of the previous 12 months' pensionable earnings. If the salary base
is  based  on  the  highest  three  consecutive  years, no single year's
pensionable earnings may exceed 120% of the average of the two  previous
years' pensionable earnings.
  For  Tier  2  Fire  members hired on or after July 1, 2000 (new Tier 2
members), the salary base is equal to the pensionable earnings earned in
the final 12 months of service only.
  Under the proposed legislation, if enacted, the salary base  shall  be
determined  the  same  for Tier 2 Fire members hired on or after July 1,
2000 as it is for Tier 2 members hired prior to July 1, 2000.
  FINANCIAL IMPACT - PRESENT VALUES: Based on the actuarial  assumptions
and methods described herein, the enactment of this proposed legislation
would increase the Present Value of Future Benefits (PVFB) and the Pres-
ent  Value  of  future  employer  contributions  by  approximately  $3.4
million.
  Under the Entry Age Normal cost method used to determine the  employer
contributions  to  FIRE,  there  would  be  an  increase in the Unfunded
Accrued Liability (UAL) of approximately $0.6 million and an increase in
the Present Value of future employer Normal Cost of $2.8 million.
  FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In  accordance  with
Administrative   Code   of   the   City  of  New  York  (ACCNY)  Section
13-638.2(k-2), new UAL attributable to benefit changes are to  be  amor-
tized  as  determined  by  the  Actuary but generally over the remaining
working lifetime of those impacted by the benefit changes.  As  of  June
30,  2018, the remaining working lifetime of the Tier 2 members hired on
or after July 1, 2000 is approximately 13 years.
  For the purposes of this Fiscal Note, the increase in  UAL  was  amor-
tized  over a 13-year period (12 payments under the One-Year Lag Method-
ology (OYLM))  using  level  dollar  payments.  This  payment  plus  the
increase  in  the  Normal Cost results in an increase in annual employer
contributions of approximately $380,000 each year.
  OTHER COSTS: Not measured in this Fiscal Note are the following:
  * The initial, additional administrative costs of FIRE and  other  New
York City agencies to implement the proposed legislation.
  *  Pension  costs  for  Tier 2 members of New York City Police Pension
Fund hired on or after July 1, 2000 who currently have the same  benefit
formula  as  the  Fire Tier 2 members hired on or after July 1, 2000 and
who may obtain the same benefit improvement through parity  via  collec-
tive bargaining.
  *  The  impact  of  this  proposed legislation on Other Postemployment
Benefit (OPEB) costs.
  CONTRIBUTION TIMING: For the purposes  of  this  Fiscal  Note,  it  is
assumed  that  the  changes  in  the  Present  Value  of future employer
contributions and annual employer contributions would be  reflected  for
the  first  time  in  the  June 30, 2018 actuarial valuation of FIRE. In
accordance with the OYLM used to determine employer  contributions,  the
increase  in  employer  contributions would first be reflected in Fiscal
Year 2020.

S. 5585--A                          3

  CENSUS DATA: The estimates presented herein are based  on  the  census
data  used in the Preliminary June 30, 2018 (Lag) actuarial valuation of
FIRE to determine the Preliminary Fiscal  Year  2020  employer  contrib-
utions.
  There  are  5,417 active Tier 2 Fire members hired on or after July 1,
2000 as of June 30, 2018 and they have an average age  of  approximately
40.3  years, average service of approximately 14.4 years, and an average
salary of approximately $127,100.
  ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of
future  employer  contributions  and   annual   employer   contributions
presented herein have been calculated based on the actuarial assumptions
and  methods  in effect for the June 30, 2018 (Lag) actuarial valuations
used to determine the Preliminary Fiscal  year  2020  employer  contrib-
utions of FIRE.
  RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the actuarial assumptions and methods used and are subject  to
change  based  on  the realization of potential investment, demographic,
contribution, and other risks. If actual experience deviates from  actu-
arial  assumptions,  the  actual costs could differ from those presented
herein. Costs are also dependent on  the  actuarial  methods  used,  and
therefore  different  actuarial methods could produce different results.
Quantifying these risks is beyond the scope of this Fiscal Note.
  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, a
Member of the American Academy of Actuaries, and a Fellow of the Confer-
ence  of Consulting Actuaries. I meet the Qualification Standards of the
American Academy of Actuaries to render the actuarial opinion  contained
herein.  To  the best of my knowledge, the results contained herein have
been prepared in accordance with generally accepted actuarial principles
and procedures and with the Actuarial Standards of  Practice  issued  by
the Actuarial Standards Board.
  FISCAL  NOTE  IDENTIFICATION:  This  Fiscal Note 2019-24 dated May 24,
2019 was prepared by the Chief  Actuary  for  the  New  York  City  Fire
Pension  Fund.  This  estimate  is intended for use only during the 2019
Legislative Session.

Co-Sponsors

view additional co-sponsors

S5585B (ACTIVE) - Details

See Assembly Version of this Bill:: A8181
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §443, R & SS L
Versions Introduced in 2021-2022 Legislative Session:: S6405, A7640

S5585B (ACTIVE) - Summary

S5585B (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S5585B

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
determination of salary base for members of the city of New York fire
department pension fund

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide parity amongst all of the Tier 2 members of the New York City
Fire Department Pension Fund in the calculation of their salary bases

 
SUMMARY OF PROVISIONS:

Section 1 amends section 443 of the retirement and social security law
by adding a new subdivision h to provide that the salary base for
members of the New York City fire department pension fund hired on or
after July 1st, 2000 covered under this article of law shall be calcu-
lated in the same manner as those members hired prior to July 1st, 2000.

Section 2 provides that this act shall take effect immediately.

 
JUSTIFICATION:

The New York City Fire Department Pension Fund system breaks its members
into different tiers that are subject to different benefits and service
requirements based on the date of the member's hire. For all Tier 1 and
Tier 2 members, pensions are equal to 50% of their final average salary
(FAS) when they go to retire after a certain amount of years of service.

Within Tier 2, which encompasses hires from July 1st, 1973 until June
30th, 2009, there is a single and significant disparity in member bene-
fits: those who commenced service before July 1st, 2000 (the "original"
Tier 2 members) have their final average salary based on their most
recent 12 months or a 3-year average from their highest-earning years,
whichever is higher, while those who commenced service after July 1st,
2000 (the "new" Tier 2 members) base their FAS on the most recent 12
months of service, with no opportunity to look at averages over a longer
period of time.

This is a small but important distinction, as the amount of overtime a
firefighter will work varies greatly year to year, and basing final
salary on only the 12 months prior to retirement often denies these
members the ability to have their pension reflect the strenuous and
lengthy hours of their peak years.

This disparity does a disservice to the strongest and most dedicated of
this class of civil servants who put in long and demanding hours to save
lives, only to see these hours severely discounted for the purposes of
calculating a pension. This bill will correct this historical wrong by
clarifying that all members of Tier 2 of the New York City Fire Depart-
ment Pension Fund should be subject to the same FAS calculation.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

See bill.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S5585B (ACTIVE) - Bill Text download pdf


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

                                 5585--B

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                               May 8, 2019
                               ___________

Introduced  by  Sens.  GOUNARDES,  ADDABBO,  BIAGGI,  HARCKHAM, HOYLMAN,
  SANDERS, SAVINO, SKOUFIS, STAVISKY -- read twice and ordered  printed,
  and when printed to be committed to the Committee on Civil Service and
  Pensions  --  committee discharged, bill amended, ordered reprinted as
  amended and recommitted  to  said  committee  --  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 committee

AN ACT to amend the retirement and social security law, in  relation  to
  determination  of salary base for members of the city of New York fire
  department pension fund

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

  Section  1.  Section  443 of the retirement and social security law is
amended by adding a new subdivision h to read as follows:
  H. NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW, CHARTER,  ADMIN-
ISTRATIVE  CODE,  AGREEMENT,  RESOLUTION  OR  RULE  OR REGULATION TO THE
CONTRARY, THE SALARY BASE FOR MEMBERS OF  THE  CITY  OF  NEW  YORK  FIRE
DEPARTMENT PENSION FUND WHOSE EMPLOYMENT WITH THE FIRE DEPARTMENT OF THE
CITY  OF  NEW YORK COMMENCED ON OR AFTER THE FIRST OF JULY, TWO THOUSAND
TO WHOM THIS ARTICLE OTHERWISE APPLIES SHALL BE DETERMINED IN  THE  SAME
MANNER  AS  THE  SALARY  BASE  FOR  MEMBERS OF THE CITY OF NEW YORK FIRE
DEPARTMENT PENSION FUND WHOSE EMPLOYMENT WITH THE FIRE DEPARTMENT OF THE
CITY OF NEW YORK COMMENCED BEFORE THE FIRST OF JULY, TWO THOUSAND.
  § 2. This act shall take effect immediately and shall apply to members
of the city of New York fire department pension fund who retire  on  and
after such effective date.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  SUMMARY  OF BILL: This proposed legislation would amend Section 443 of
the Retirement and Social Security Law (RSSL) to change the salary  base
for Tier 2 members of the New York City Fire Pension Fund (FIRE) who are

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

                                                           LBD11504-05-0

S. 5585--B                          2

hired  on  or  after July 1, 2000 to a salary base used for such members
who joined prior to July 1, 2000.
  Effective Date: Upon enactment.
  IMPACT ON BENEFITS: Currently, Tier 2 FIRE plan benefits are primarily
derived  from a salary base. For Tier 2 FIRE members hired prior to July
1, 2000 (original Tier 2 members), the  salary  base  is  equal  to  the
greater of
  (1) the pensionable earnings in the final 12 months of service, or
  (2)  the  average pensionable earnings earned in any consecutive three
years of service.
  Pensionable earnings in the final 12 months of service may not  exceed
120% of the previous 12 months' pensionable earnings. If the salary base
is  based  on  the  highest  three  consecutive  years, no single year's
pensionable earnings may exceed 120% of the average of the two  previous
years' pensionable earnings.
  For  Tier  2  Fire  members hired on or after July 1, 2000 (new Tier 2
members), the salary base is equal to the pensionable earnings earned in
the final 12 months of service only.
  Under the proposed legislation, if enacted, the salary base  shall  be
determined  the  same  for Tier 2 Fire members hired on or after July 1,
2000 as it is for Tier 2 members hired prior to July 1, 2000.
  FINANCIAL IMPACT - PRESENT VALUES: Based on the actuarial  assumptions
and methods described herein, the enactment of this proposed legislation
would increase the Present Value of Future Benefits (PVFB) and the Pres-
ent  Value  of  future  employer  contributions  by  approximately  $3.0
million.
  Under the Entry Age Normal cost method used to determine the  employer
contributions  to  FIRE,  there  would  be  an  increase in the Unfunded
Accrued Liability (UAL) of approximately $0.1 million and an increase in
the Present Value of future employer Normal Cost of $2.9 million.
  FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In  accordance  with
Section 13-638.2(k-2) of the Administrative Code of the City of New York
(ACCNY),  new UAL attributable to benefit changes are to be amortized as
determined by the Actuary, but are generally amortized over the  remain-
ing  working  lifetime  of  those impacted by the benefit changes. As of
June 30, 2019, the remaining working lifetime  of  the  Tier  2  members
hired on or after July 1, 2000 is approximately 13 years.
  For  the  purposes  of this Fiscal Note, the increase in UAL was amor-
tized over a 13-year period (12 payments under the One-Year Lag  Method-
ology  (OYLM))  using  level  dollar  payments.  This  payment  plus the
increase in the Normal Cost results in an increase  in  annual  employer
contributions of approximately $350,000 each year.
  CONTRIBUTION  TIMING:  For  the  purposes  of  this Fiscal Note, it is
assumed that the  changes  in  the  Present  Value  of  future  employer
contributions  and  annual employer contributions would be reflected for
the first time in the June 30, 2019  actuarial  valuation  of  FIRE.  In
accordance  with  the OYLM used to determine employer contributions, the
increase in employer contributions would first be  reflected  in  Fiscal
Year 2021.
  CENSUS  DATA:  The  estimates presented herein are based on the census
data used in the Preliminary June 30, 2019 (Lag) actuarial valuation  of
FIRE  to  determine  the  Preliminary Fiscal Year 2021 employer contrib-
utions.
  There are 5,278 active Tier 2 Fire members hired on or after  July  1,
2000  as  of June 30, 2019 and they have an average age of approximately

S. 5585--B                          3

41.3 years, average service of approximately 15.4 years, and an  average
salary of approximately $132,800.
  ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of
future   employer   contributions   and  annual  employer  contributions
presented herein have been calculated based on the actuarial assumptions
and methods in effect for the June 30, 2019 (Lag)  actuarial  valuations
used  to  determine  the  Preliminary Fiscal Year 2021 employer contrib-
utions of FIRE.
  RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
highly  on the realization of the actuarial assumptions used, as well as
certain demographic characteristics of FIRE and other exogenous  factors
such  as investment, contribution, and other risks. If actual experience
deviates from actuarial assumptions, the actual costs could differ  from
those  presented herein. Costs are also dependent on the actuarial meth-
ods used,  and  therefore  different  actuarial  methods  could  produce
different  results.  Quantifying these risks is beyond the scope of this
Fiscal Note.
  Not measured in this Fiscal Note are the following:
  * The initial, additional administrative costs of FIRE and  other  New
York City agencies to implement the proposed legislation.
  * Pension  costs  for  Tier  2 members of New York City Police Pension
Fund hired on or after July 1, 2000 who currently have the same  benefit
formula  as  the  FIRE Tier 2 members hired on or after July 1, 2000 and
who may obtain the same benefit improvement through parity  via  collec-
tive bargaining or similar legislation.
  * The  impact  of  this  proposed  legislation on Other Postemployment
Benefit (OPEB) 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
Pension Funds. I am a Fellow of the Society of  Actuaries,  an  Enrolled
Actuary under the Employee Retirement Income and Security Act of 1974, a
Member of the American Academy of Actuaries, and a Fellow of the Confer-
ence  of Consulting Actuaries. I meet the Qualification Standards of the
American Academy of Actuaries to render the actuarial opinion  contained
herein.   To the best of my knowledge, the results contained herein have
been prepared in accordance with generally accepted actuarial principles
and procedures and with the Actuarial Standards of  Practice  issued  by
the Actuarial Standards Board.
  FISCAL  NOTE  IDENTIFICATION: This Fiscal Note 2020-17 dated March 20,
2020 was prepared by the Chief  Actuary  for  the  New  York  City  Fire
Pension  Fund.    This estimate is intended for use only during the 2020
Legislative Session.

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The New York State Senate

senate Bill S5585B

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Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

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senate Bill S5585B

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Sponsored By

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

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Actions

Bill Amendments

S5585 - Details

S5585 - Summary

S5585 - Sponsor Memo

S5585 - Bill Text download pdf

Co-Sponsors

S5585A - Details

S5585A - Summary

S5585A - Sponsor Memo

S5585A - Bill Text download pdf

Co-Sponsors

S5585B (ACTIVE) - Details

S5585B (ACTIVE) - Summary

S5585B (ACTIVE) - Sponsor Memo

S5585B (ACTIVE) - Bill Text download pdf

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