NY State Senate Bill 2019-S5850C

Senate Bill S5850C

2019-2020 Legislative Session

Removes post-retirement earnings restrictions for New York city department of corrections uniformed personnel

download bill text pdf

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

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
May 01, 2020	print number 5850c
May 01, 2020	amend and recommit to civil service and pensions
Jan 08, 2020	referred to civil service and pensions
Jun 12, 2019	print number 5850b
Jun 12, 2019	amend and recommit to civil service and pensions
May 23, 2019	print number 5850a
May 23, 2019	amend (t) and recommit to civil service and pensions
May 15, 2019	referred to civil service and pensions

Bill Amendments

Original

C (Active)

2019-S5850 - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §507-a, R & SS L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4632
2017-2018: S6100
2021-2022: S6982
2023-2024: S7115
2025-2026: S7661

2019-S5850 - Summary

Removes post-retirement earnings restrictions for New York city department of correction uniformed personnel with respect to a retiree subsequent to his or her earliest eligibility date for service retirement.

2019-S5850 - Sponsor Memo

                                
 
BILL NUMBER: S5850

SPONSOR: GOUNARDES
 
TITLE OF BILL:  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; and
repealing subdivision e of section 507-a of the retirement and social
security law relating thereto

 
PURPOSE OR GENERAL IDEA OF BILL:

To lift the statutory maximum on earnings received from private sector
employers for former uniformed personnel of the New York City Department
of Corrections who retired from service with an ordinary disability
retirement, receive ordinary disability benefits, and have reached the
earliest age at which he or she would have been eligible for service
retirement.

 
SUMMARY OF PROVISIONS:

Section one of this bill amends section 507-a of the Retirement and

Social Security Law to add a new subdivision f, which provides that any
person who retires with an ordinary disability retirement will not be
subject to any earning limitation s for private sector employment when
the employment occurs after the earliest date that the person could have
retired with a service retirement.

Section two of this bill provides that this act shall take effect imme-
diately.

 
JUSTIFICATION:

Current law places limitations on the income of New York City
Corrections retirees receiving ordinary disability income.  The NYCERS
Personal Service Income limitation on former Correction Officers for
2014 was $29,000 resulting from all public and private employment. If
the proposed legislation is enacted, earnings of a Correction Ordinary
Disability Retiree from private employment would no longer be limited.
There would still be a limitation of $1,800 (including the disability
pension) on compensation from public employment by New York State and
Municipal governmental sources.

Unfortunately, the ordinary disability benefit does not provide enough
compensation for disabled retirees.

This measure recognizes the service and sacrifice made by these brave
public servants and will bring much needed reform to an outdate d income
restriction.

 
PRIOR LEGISLATIVE HISTORY:

2017: S.6100 - Referred to Civil Service and Pensions
2016: S.7420 - Referred to Civil Service and Pensions
2015: S.4632 - 3rd Reading Calendar

 
FISCAL IMPLICATIONS:

See the bill

 
EFFECTIVE DATE:
Immediately

2019-S5850 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5850
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 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
   eligibility of uniformed personnel of the New York city department  of
   correction for ordinary disability benefits; and repealing subdivision
   e  of section 507-a of the retirement and social security law relating
   thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision e of section 507-a of the retirement and social
 security  law  is  REPEALED  and a new subdivision e is added to read as
 follows:
   E. 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.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04265-01-9

2019-S5850A - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §507-a, R & SS L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4632
2017-2018: S6100
2021-2022: S6982
2023-2024: S7115
2025-2026: S7661

2019-S5850A - Summary

2019-S5850A - Sponsor Memo

                                
 
BILL NUMBER: S5850A

SPONSOR: GOUNARDES
 
TITLE OF BILL:  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

 
PURPOSE OR GENERAL IDEA OF BILL:

To lift the statutory maximum on earnings received from private sector
employers for former uniformed personnel of the New York City Department
of Corrections who retired from service with an ordinary disability
retirement, receive ordinary disability benefits, and have reached the
earliest age at which he or she would have been eligible for service
retirement.

 
SUMMARY OF PROVISIONS:

Section one of this bill amends section 507-a of the Retirement and
Social Security Law to add a new subdivision f, which provides that any
person who retires with an ordinary disability retirement will not be

subject to any earning limitations for private sector employment when
the employment occurs after the earliest date that the person could have
retired with a service retirement.

Section two of this bill provides that this act shall take effect imme-
diately.

 
JUSTIFICATION:

Current law places limitations on the income of New York City
Corrections retirees receiving ordinary disability income. The NYCERS
Personal Service Income limitation on former Correction Officers for
2014 was $29,000 resulting from all public and private employment. If
the proposed legislation is enacted, earnings of a Correction Ordinary
Disability Retiree from private employment would no longer be limited.
There would still be a limitation of $1,800 (including the disability
pension) on compensation from public employment by New York State and
Municipal governmental sources.

Unfortunately, the ordinary disability benefit does not provide enough
compensation for disabled retirees.

This measure recognizes the service and sacrifice made by these brave
public servants and will bring much needed reform to an outdated income
restriction.

 
PRIOR LEGISLATIVE HISTORY:

2017: S.6100 - Referred to Civil Service and Pensions
2016: S.7420 - Referred to Civil Service and Pensions
2015: S.4632 - 3rd Reading Calendar

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:
Immediately

2019-S5850A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5850--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 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
   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.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04265-03-9

2019-S5850B - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §507-a, R & SS L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4632
2017-2018: S6100
2021-2022: S6982
2023-2024: S7115
2025-2026: S7661

2019-S5850B - Summary

2019-S5850B - Sponsor Memo

                                
 
BILL NUMBER: S5850B

SPONSOR: GOUNARDES
 
TITLE OF BILL:  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

 
PURPOSE OR GENERAL IDEA OF BILL:

To lift the statutory maximum on earnings received from private sector
employers for former uniformed personnel of the New York City Department
of Corrections who retired from service with an ordinary disability
retirement, receive ordinary disability benefits, and have reached the
earliest age at which he or she would have been eligible for service
retirement.

 
SUMMARY OF PROVISIONS:

Section one of this bill amends section 507-a of the Retirement and
Social Security Law to add a new subdivision f, which provides that any
person who retires with an ordinary disability retirement will not be

subject to any earning limitations for private sector employment when
the employment occurs after the earliest date that the person could have
retired with a service retirement.

Section two of this bill provides that this act shall take effect imme-
diately.

 
JUSTIFICATION:

Current law places limitations on the income of New York City
Corrections retirees receiving ordinary disability income. The NYCERS
Personal Service Income limitation on former Correction Officers for
2014 was $29,000 resulting from all public and private employment. If
the proposed legislation is enacted, earnings of a Correction Ordinary
Disability Retiree from private employment would no longer be limited.
There would still be a limitation of $1,800 (including the disability
pension) on compensation from public employment by New York State and
Municipal governmental sources.

Unfortunately, the ordinary disability benefit does not provide enough
compensation for disabled retirees.

This measure recognizes the service and sacrifice made by these brave
public servants and will bring much needed reform to an outdated income
restriction.

 
PRIOR LEGISLATIVE HISTORY:

2017: S.6100 - Referred to Civil Service and Pensions
2016: S.7420 - Referred to Civil Service and Pensions
2015: S.4632 - 3rd Reading Calendar

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:
Immediately

2019-S5850B - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5850--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 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  --  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: This 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.

                                                            LBD04265-04-9

 S. 5850--B                          2
 
 Department of Correction who are receiving certain  disability  benefits
 from the New York City Employees' Retirement System (NYCERS).
   Effective Date: Upon enactment.
   BACKGROUND:  Currently,  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 2018 was $31,100 and increases  each  year  with  the
 Consumer Price Index.
   IMPACT  ON  BENEFITS:  Under  the  proposed  legislation,  if enacted,
 Correction Disability Retirees, 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  -  ANNUAL  EMPLOYER  CONTRIBUTIONS:  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  2019  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 the following:
   * The possible increased administrative costs attributable  to  enact-
 ment of the proposed legislation.
   *  The  impact  of  this  proposed legislation on Other Postemployment
 Benefit (OPEB) costs.
   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, 2018 (Lag)  actuarial
 valuations  used  to determine the Preliminary Fiscal Year 2020 employer

 S. 5850--B                          3
 
 contributions of NYCERS. Please note these assumptions and  methods  are
 subject  to  change  as this valuation is not considered final until the
 end of the Fiscal Year 2020.
   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 2019-34 dated June 11,
 2019 was prepared by the Chief Actuary for the New York City  Employees'
 Retirement  System.  This  estimate  is intended for use only during the
 2019 Legislative Session.

2019-S5850C (ACTIVE) - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §507-a, R & SS L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4632
2017-2018: S6100
2021-2022: S6982
2023-2024: S7115
2025-2026: S7661

2019-S5850C (ACTIVE) - Summary

2019-S5850C (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5850C

SPONSOR: GOUNARDES
 
TITLE OF BILL:

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

 
PURPOSE OR GENERAL IDEA OF BILL:

To lift the statutory maximum on earnings received from private sector
employers for former uniformed personnel of the New York City Department
of Corrections who retired from service with an ordinary disability
retirement, receive ordinary disability benefits, and have reached the
earliest age at which he or she would have been eligible for service
retirement.

 
SUMMARY OF PROVISIONS:

Section one of this bill amends section 507-a of the Retirement and

Social Security Law to add a new subdivision f, which provides that any
person who retires with an ordinary disability retirement will not be
subject to any earning limitations for private sector employment when
the employment occurs after the earliest date that the person could have
retired with a service retirement.

Section two of this bill provides that this act shall take effect imme-
diately.

 
JUSTIFICATION:

Current law places limitations on the income of New York City
Corrections retirees receiving ordinary disability income. The NYCERS
Personal Service Income limitation on former Correction Officers for
2014 was $29,000 resulting from all public and private employment. If
the proposed legislation is enacted, earnings of a Correction Ordinary
Disability Retiree from private employment would no longer be limited.
There would still be a limitation of $1,800 (including the disability
pension) on compensation from public employment by New York State and
Municipal governmental sources.  Unfortunately, the ordinary disability
benefit does not provide enough compensation for disabled retirees.

This measure recognizes the service and sacrifice made by these brave
public servants and will bring much needed reform to an outdated income
restriction.

 
PRIOR LEGISLATIVE HISTORY:

2019: S5850A - Referred to Civil Service and Pensions

2017: S.6100 - Referred to Civil Service and Pensions

2016: S.7420 - Referred to Civil Service and Pensions

2015: S.4632 - 3rd Reading Calendar

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:  Immediately

2019-S5850C (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5850--C
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 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  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee -- 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: This proposed legislation would amend Section 507-a
 of the Retirement and Social Security Law (RSSL) by adding a new  subdi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04265-08-0

 S. 5850--C                          2
 
 vision  f  to  remove post-retirement earnings restrictions from private
 sector employment for periods after the  applicable  service  retirement
 eligibility date for certain retired uniformed personnel of the New York
 City Department of Correction who are receiving certain disability bene-
 fits from the New York City Employees' Retirement System (NYCERS).
   Effective Date: Upon enactment.
   BACKGROUND:  Currently,  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 2018 was $31,100 and increases  each  year  with  the
 Consumer  Price Index. As of the date this Fiscal Note was released, the
 2019 limit had not been published.
   IMPACT ON  BENEFITS:  Under  the  proposed  legislation,  if  enacted,
 Correction  Disability  Retirees,  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  the  purposes of this Fiscal Note, it was assumed that Correction
 Disability Retirees would continue to be limited by  other  post-retire-
 ment  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 permits a retiree to earn up to
 $35,000 per year from post-retirement public employment, notwithstanding
 NYCC Section 1117, if certain conditions are met.
   FINANCIAL IMPACT  -  ANNUAL  EMPLOYER  CONTRIBUTIONS:  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  2020  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 suspension  of  bene-
 fits  for  those  Correction  Disability  Retirees whose PSI exceeds the
 NYCERS earnings limitation after the  date  on  which  they  would  have
 become eligible for service retirement.
   Suspended  pensions due to earnings that exceed the NYCERS PSI limita-
 tion, are currently treated as an  actuarial  gain,  and  the  financial
 impact  is recognized at the time of the event. Consequently, changes in
 employer contributions have been estimated assuming that the increase in
 the pension payment of approximately $135,700 will be  financed  over  a
 time  period  used  under  the current amortization period for actuarial
 gains and losses under the Entry Age  Normal  cost  method.  Using  this
 approach,  the  additional PVFB would be amortized over a closed 15-year

 S. 5850--C                          3

 period (14 payments under the One-Year  Lag  Methodology  (OYLM))  using
 level dollar payments.
   Based  on the Actuary's actuarial assumptions and methods in effect as
 of June 30, 2019, the enactment of this proposed  legislation  is  esti-
 mated   to  increase  annual  employer  contributions  by  approximately
 $16,000.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data  used in the Preliminary June 30, 2019 (Lag) actuarial valuation of
 NYCERS to determine the Preliminary Fiscal Year 2021  employer  contrib-
 utions.
   Additional  data  for  the  seven Correction Disability Retirees whose
 post-retirement earnings exceeded the PSI limitation for  calendar  year
 2018  was  provided  by  NYCERS. These members had an average pension of
 approximately $19,400 per year.
   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, 2019 (Lag)  actuarial
 valuations  used  to determine the Preliminary Fiscal Year 2021 employer
 contributions of NYCERS.
   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  NYCERS  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 methods 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 possible increased administrative costs attributable  to  enact-
 ment of the proposed 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 2020-31 dated April 23,
 2020 was prepared by the Chief Actuary for the New York City  Employees'
 Retirement  System.  This  estimate  is intended for use only during the
 2020 Legislative Session.

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