Senate Bill S5924C

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5924
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 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
   service retirement benefits for members of  the  New  York  city  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 505 of the retirement and social security  law,  as
 amended  by  chapter  18  of  the  laws  of  2012, is amended to read as
 follows:
   § 505. Service retirement benefits; police/fire members, New York city
 uniformed correction/sanitation revised plan  members  and  investigator
 revised  plan  members.  a.  The  normal  service retirement benefit for
 police/fire members OF THE NEW YORK CITY POLICE PENSION FUND,  New  York
 city  uniformed  correction/sanitation revised plan members and investi-
 gator revised plan members at normal retirement age shall be  a  pension
 equal  to  fifty  percent of final average salary, less fifty percent of
 the primary social security retirement benefit commencing at age  sixty-
 two,  as  provided  in  section five hundred eleven of this article. THE
 NORMAL SERVICE RETIREMENT BENEFIT FOR MEMBERS OF THE NEW YORK CITY  FIRE
 DEPARTMENT  PENSION  FUND  AT  NORMAL  RETIREMENT AGE SHALL BE A PENSION
 EQUAL TO FIFTY PERCENT OF FINAL AVERAGE SALARY AND SHALL NOT BE  REDUCED
 BY  THE  PRIMARY  SOCIAL SECURITY BENEFIT COMMENCING AT AGE SIXTY-TWO AS
 PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   b. The early service retirement benefit for police/fire members OF THE
 NEW  YORK  CITY  POLICE  PENSION   FUND,   New   York   city   uniformed
 correction/sanitation revised plan members and investigator revised plan
 members  shall be a pension equal to two and one-tenths percent of final
 average salary times years of credited  service  at  the  completion  of
 twenty  years  of service or upon attainment of age sixty-two, increased
 by one-third of one percent of final average salary for  each  month  of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11505-02-9

 S. 5924                             2
 
 service in excess of twenty years, but not in excess of fifty percent of
 final  average salary, less fifty percent of the primary social security
 retirement benefit commencing at age sixty-two as  provided  in  section
 five  hundred  eleven  of this article, provided, however, that New York
 city  police/fire  revised  plan  members,  New  York   city   uniformed
 correction/sanitation revised plan members and investigator revised plan
 members shall not be eligible to retire for service prior to the attain-
 ment  of twenty years of credited service.  THE EARLY SERVICE RETIREMENT
 BENEFIT FOR MEMBERS OF THE NEW YORK CITY FIRE  DEPARTMENT  PENSION  FUND
 SHALL  BE A PENSION EQUAL TO TWO AND ONE-TENTHS PERCENT OF FINAL AVERAGE
 SALARY TIMES YEARS OF CREDITED SERVICE AT THE COMPLETION OF TWENTY YEARS
 OF CREDITED SERVICE OR UPON ATTAINMENT OF AGE  SIXTY-TWO,  INCREASED  BY
 ONE-THIRD  OF  ONE  PERCENT  OF  FINAL  AVERAGE SALARY FOR EACH MONTH OF
 SERVICE IN EXCESS OF TWENTY YEARS, BUT NOT IN EXCESS OF FIFTY PERCENT OF
 FINAL AVERAGE SALARY, PROVIDED, HOWEVER, THAT NEW YORK CITY FIRE REVISED
 PLAN MEMBERS SHALL NOT BE ELIGIBLE TO RETIRE FOR SERVICE  PRIOR  TO  THE
 ATTAINMENT  OF  TWENTY  YEARS  OF  CREDITED  SERVICE. SUCH EARLY SERVICE
 RETIREMENT BENEFIT SHALL NOT BE REDUCED BY THE PRIMARY  SOCIAL  SECURITY
 RETIREMENT  BENEFIT  COMMENCING  AT AGE SIXTY-TWO AS PROVIDED IN SECTION
 FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   c. A police/fire member OF THE NEW YORK CITY POLICE  PENSION  FUND,  a
 New  York city uniformed correction/sanitation revised plan member or an
 investigator revised plan member who retires with  twenty-two  years  of
 credited  service  or  less may become eligible for annual escalation of
 the service retirement benefit if he elects to have the payment  of  his
 benefit  commence  on  the date he would have completed twenty-two years
 and one month or more of service. In such event, the service  retirement
 benefit shall equal two percent of final average salary for each year of
 credited  service,  less  fifty  percent  of the primary social security
 retirement benefit commencing at age sixty-two as  provided  in  section
 five hundred eleven of this article.  A MEMBER OF THE NEW YORK CITY FIRE
 DEPARTMENT  PENSION  FUND  WHO RETIRES WITH TWENTY-TWO YEARS OF CREDITED
 SERVICE OR LESS MAY BECOME ELIGIBLE FOR ANNUAL ESCALATION OF THE SERVICE
 RETIREMENT BENEFIT IF HE OR SHE ELECTS TO HAVE THE PAYMENT OF HIS OR HER
 BENEFIT COMMENCE ON THE DATE HE OR SHE WOULD HAVE  COMPLETED  TWENTY-TWO
 YEARS  AND  ONE  MONTH  OR  MORE  OF SERVICE. IN SUCH EVENT, THE SERVICE
 RETIREMENT BENEFIT SHALL EQUAL TWO PERCENT OF FINAL AVERAGE  SALARY  FOR
 EACH  YEAR OF CREDITED SERVICE, AND SUCH BENEFIT SHALL NOT BE REDUCED BY
 THE PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT AGE  SIXTY-
 TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   §  2. Section 511 of the retirement and social security law is amended
 by adding a new subdivision h to read as follows:
   H. THIS SECTION SHALL NOT APPLY TO A MEMBER OF THE NEW YORK CITY  FIRE
 DEPARTMENT PENSION FUND.
   § 3. Subdivision c of section 516 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   c.  The deferred vested benefit of police/fire members WHO ARE MEMBERS
 OF THE NEW YORK CITY POLICE PENSION  FUND,  New  York  city  police/fire
 revised plan members WHO ARE MEMBERS OF THE REVISED PLAN OF THE NEW YORK
 CITY  POLICE PENSION FUND, New York city uniformed correction/sanitation
 revised plan members or investigator revised plan  members  shall  be  a
 pension  commencing  at early retirement age equal to two and one-tenths
 percent of final average salary times years of  credited  service,  less
 fifty percent of the primary social security retirement benefit commenc-
 ing at age sixty-two, as provided in section five hundred eleven of this

 S. 5924                             3
 
 article.  THE  DEFERRED  VESTED  BENEFIT OF MEMBERS OF THE NEW YORK CITY
 FIRE DEPARTMENT PENSION FUND, INCLUDING MEMBERS OF THE REVISED  PLAN  OF
 SUCH PENSION FUND, SHALL BE A PENSION COMMENCING AT EARLY RETIREMENT AGE
 EQUAL  TO TWO AND ONE-TENTHS PERCENT OF FINAL AVERAGE SALARY TIMES YEARS
 OF CREDITED SERVICE. SUCH PENSION SHALL NOT BE REDUCED  BY  THE  PRIMARY
 SOCIAL  SECURITY  RETIREMENT  BENEFIT  COMMENCING  AT  AGE  SIXTY-TWO AS
 PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.  A  police/fire
 member, a New York city police/fire revised plan member, a New York city
 uniformed  correction/sanitation  revised  plan  member  or investigator
 revised plan member may elect to receive his vested  benefit  commencing
 at  early  retirement  age  or  age  fifty-five.  If  the vested benefit
 commences before early retirement age, the benefit shall be  reduced  by
 one-fifteenth  for each year, if any, that the member's early retirement
 age is in excess of age sixty, and by one-thirtieth for each  additional
 year  by  which  the  vested benefit commences prior to early retirement
 age. If such vested benefit is deferred until after such member's normal
 retirement age, the benefit shall be  computed  and  subject  to  annual
 escalation  in the same manner as provided for an early retirement bene-
 fit pursuant to subdivision c of section five hundred five of this arti-
 cle.
   § 4. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5924--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 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
   service  retirement  benefits  for  members  of the New York city fire
   department pension fund and the New York city police pension fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 505 of the retirement and social security law, as
 amended by chapter 18 of the  laws  of  2012,  is  amended  to  read  as
 follows:
   § 505. Service retirement benefits; police/fire members, New York city
 uniformed  correction/sanitation  revised  plan members and investigator
 revised plan members. a.  The  normal  service  retirement  benefit  for
 police/fire  members,  New  York  city  uniformed  correction/sanitation
 revised plan members and investigator revised  plan  members  at  normal
 retirement  age shall be a pension equal to fifty percent of final aver-
 age salary, less fifty percent of the primary social security retirement
 benefit commencing at age sixty-two, as provided in section five hundred
 eleven of this article, EXCEPT THAT FOR POLICE/FIRE MEMBERS OF  THE  NEW
 YORK  CITY  FIRE  DEPARTMENT  PENSION  FUND  OR THE NEW YORK CITY POLICE
 PENSION FUND, THE NORMAL SERVICE RETIREMENT BENEFIT SHALL NOT BE REDUCED
 BY THE PRIMARY SOCIAL SECURITY  RETIREMENT  BENEFIT  COMMENCING  AT  AGE
 SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   b.  The  early service retirement benefit for police/fire members, New
 York city  uniformed  correction/sanitation  revised  plan  members  and
 investigator  revised  plan  members shall be a pension equal to two and
 one-tenths percent of final  average  salary  times  years  of  credited
 service  at the completion of twenty years of service or upon attainment
 of age sixty-two, increased by one-third of one percent of final average
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11505-03-9

 S. 5924--A                          2
 
 salary for each month of service in excess of twenty years, but  not  in
 excess  of  fifty percent of final average salary, less fifty percent of
 the primary social security retirement benefit commencing at age  sixty-
 two  as  provided  in  section  five  hundred  eleven  of  this article,
 provided, however, that New York city police/fire revised plan  members,
 New  York  city uniformed correction/sanitation revised plan members and
 investigator revised plan members shall not be eligible  to  retire  for
 service prior to the attainment of twenty years of credited service, AND
 PROVIDED  FURTHER THAT FOR POLICE/FIRE MEMBERS OF THE NEW YORK CITY FIRE
 DEPARTMENT PENSION FUND OR THE NEW YORK CITY POLICE  PENSION  FUND,  THE
 EARLY  SERVICE  RETIREMENT  BENEFIT  SHALL NOT BE REDUCED BY THE PRIMARY
 SOCIAL SECURITY  RETIREMENT  BENEFIT  COMMENCING  AT  AGE  SIXTY-TWO  AS
 PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   c.    A    police/fire    member,    a   New   York   city   uniformed
 correction/sanitation revised plan member  or  an  investigator  revised
 plan  member  who  retires  with twenty-two years of credited service or
 less may become eligible for annual escalation of the service retirement
 benefit if he elects to have the payment of his benefit commence on  the
 date  he  would have completed twenty-two years and one month or more of
 service. In such event, the service retirement benefit shall  equal  two
 percent  of final average salary for each year of credited service, less
 fifty percent of the primary social security retirement benefit commenc-
 ing at age sixty-two as provided in section five hundred eleven of  this
 article,  EXCEPT  THAT FOR POLICE/FIRE MEMBERS OF THE NEW YORK CITY FIRE
 DEPARTMENT PENSION FUND OR THE NEW YORK CITY POLICE  PENSION  FUND,  THE
 SERVICE  RETIREMENT  BENEFIT  SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL
 SECURITY RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-TWO AS  PROVIDED  IN
 SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   §  2. Section 511 of the retirement and social security law is amended
 by adding a new subdivision h to read as follows:
   H. THIS SECTION SHALL NOT APPLY TO POLICE/FIRE MEMBERS OF THE NEW YORK
 CITY FIRE DEPARTMENT PENSION FUND OR THE NEW YORK  CITY  POLICE  PENSION
 FUND  WHO  RECEIVE A SERVICE RETIREMENT BENEFIT PURSUANT TO SECTION FIVE
 HUNDRED FIVE OF THIS ARTICLE OR A DEFERRED VESTED  BENEFIT  PURSUANT  TO
 SECTION FIVE HUNDRED SIXTEEN OF THIS ARTICLE.
   § 3. Subdivision c of section 516 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   c.  The  deferred vested benefit of police/fire members, New York city
 police/fire   revised   plan   members,   New   York   city    uniformed
 correction/sanitation  revised plan members or investigator revised plan
 members shall be a pension commencing at early retirement age  equal  to
 two  and one-tenths percent of final average salary times years of cred-
 ited service, less fifty percent of the primary social security  retire-
 ment  benefit  commencing  at age sixty-two, as provided in section five
 hundred eleven of this article, EXCEPT THAT FOR POLICE/FIRE  MEMBERS  OF
 THE  NEW  YORK  CITY  FIRE  DEPARTMENT PENSION FUND OR THE NEW YORK CITY
 POLICE PENSION FUND, THE SERVICE RETIREMENT BENEFIT SHALL NOT BE REDUCED
 BY THE PRIMARY SOCIAL SECURITY  RETIREMENT  BENEFIT  COMMENCING  AT  AGE
 SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.  A
 police/fire  member,  a New York city police/fire revised plan member, a
 New York city uniformed correction/sanitation  revised  plan  member  or
 investigator revised plan member may elect to receive his vested benefit
 commencing  at  early  retirement  age  or age fifty-five. If the vested
 benefit commences before early retirement  age,  the  benefit  shall  be
 reduced  by one-fifteenth for each year, if any, that the member's early

 S. 5924--A                          3
 
 retirement age is in excess of age sixty, and by one-thirtieth for  each
 additional  year  by  which  the vested benefit commences prior to early
 retirement age. If such vested benefit  is  deferred  until  after  such
 member's  normal  retirement  age,  the  benefit  shall  be computed and
 subject to annual escalation in the same manner as provided for an early
 retirement benefit pursuant to subdivision c  of  section  five  hundred
 five of this article.
   §  4.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative law, Section 50:
   We have estimated the impact of the cost of removing the social  secu-
 rity  offset  for  all Tier 3 members (including Tier 3 Original, Tier 3
 Revised, and Tier 3 Enhanced members) on the projected employer contrib-
 utions of the New York City Police Pension Fund.
   The table below summarizes the additional  contributions  that  result
 from this change by year.
 
 (in millions)
     Year            Annual Cost
     2020               17.9
     2021               20.7
     2022               23.6
     2023               26.9
     2024               30.0
 
   The  assumptions  used in this analysis were those released by the New
 York City Office of the Actuary on January  2,  2019  in  the  "Proposed
 Changes in Actuarial Assumptions and Methods Used in Determining Employ-
 er  Contributions  for  Fiscal Years Beginning on and After July 1, 2018
 for the New York City Police Pension Fund"  document,  and  subsequently
 approved  by  the Police Pension Fund's Board on March 6, 2019. The data
 used to determine the cost was provided by the Police Pension  Fund  and
 was a snapshot of the active plan participants as of July 1, 2018.
   This  fiscal note, dated May 22, 2019, is intended only for use in the
 2019 legislative session.
   The source of this fiscal note is Heidi E. Andorfer,  FSA,  EA,  MAAA,
 Foster  &  Foster,  Actuaries  and Consultants, who is familiar with the
 immediate and long-term aspects of pension calculations  and  meets  the
 Qualification  Standards  of the American Academy of Actuaries necessary
 to render the actuarial opinions contained herein.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5924--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced  by Sens. GOUNARDES, ADDABBO, HARCKHAM, HOYLMAN, LANZA, SAVI-
   NO, SKOUFIS -- 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 committee
 
 AN  ACT  to amend the retirement and social security law, in relation to
   service retirement benefits for members of  the  New  York  city  fire
   department pension fund and the New York city police pension fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 505 of the retirement and social security  law,  as
 amended  by  chapter  18  of  the  laws  of  2012, is amended to read as
 follows:
   § 505. Service retirement benefits; police/fire members, New York city
 uniformed correction/sanitation revised plan  members  and  investigator
 revised  plan  members.  a.  The  normal  service retirement benefit for
 police/fire  members,  New  York  city  uniformed  correction/sanitation
 revised  plan  members  and  investigator revised plan members at normal
 retirement age shall be a pension equal to fifty percent of final  aver-
 age salary, less fifty percent of the primary social security retirement
 benefit commencing at age sixty-two, as provided in section five hundred
 eleven  of  this article, EXCEPT THAT FOR POLICE/FIRE MEMBERS OF THE NEW
 YORK CITY FIRE DEPARTMENT PENSION FUND  OR  THE  NEW  YORK  CITY  POLICE
 PENSION FUND, THE NORMAL SERVICE RETIREMENT BENEFIT SHALL NOT BE REDUCED
 BY  THE  PRIMARY  SOCIAL  SECURITY  RETIREMENT BENEFIT COMMENCING AT AGE
 SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   b. The early service retirement benefit for police/fire  members,  New
 York  city  uniformed  correction/sanitation  revised  plan  members and
 investigator revised plan members shall be a pension equal  to  two  and
 one-tenths  percent  of  final  average  salary  times years of credited
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11505-05-9

 S. 5924--B                          2
 
 service at the completion of twenty years of service or upon  attainment
 of age sixty-two, increased by one-third of one percent of final average
 salary  for  each month of service in excess of twenty years, but not in
 excess  of  fifty percent of final average salary, less fifty percent of
 the primary social security retirement benefit commencing at age  sixty-
 two  as  provided  in  section  five  hundred  eleven  of  this article,
 provided, however, that New York city police/fire revised plan  members,
 New  York  city uniformed correction/sanitation revised plan members and
 investigator revised plan members shall not be eligible  to  retire  for
 service prior to the attainment of twenty years of credited service, AND
 PROVIDED  FURTHER THAT FOR POLICE/FIRE MEMBERS OF THE NEW YORK CITY FIRE
 DEPARTMENT PENSION FUND OR THE NEW YORK CITY POLICE  PENSION  FUND,  THE
 EARLY  SERVICE  RETIREMENT  BENEFIT  SHALL NOT BE REDUCED BY THE PRIMARY
 SOCIAL SECURITY  RETIREMENT  BENEFIT  COMMENCING  AT  AGE  SIXTY-TWO  AS
 PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   c.    A    police/fire    member,    a   New   York   city   uniformed
 correction/sanitation revised plan member  or  an  investigator  revised
 plan  member  who  retires  with twenty-two years of credited service or
 less may become eligible for annual escalation of the service retirement
 benefit if he elects to have the payment of his benefit commence on  the
 date  he  would have completed twenty-two years and one month or more of
 service. In such event, the service retirement benefit shall  equal  two
 percent  of final average salary for each year of credited service, less
 fifty percent of the primary social security retirement benefit commenc-
 ing at age sixty-two as provided in section five hundred eleven of  this
 article,  EXCEPT  THAT FOR POLICE/FIRE MEMBERS OF THE NEW YORK CITY FIRE
 DEPARTMENT PENSION FUND OR THE NEW YORK CITY POLICE  PENSION  FUND,  THE
 SERVICE  RETIREMENT  BENEFIT  SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL
 SECURITY RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-TWO AS  PROVIDED  IN
 SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   §  2. Section 511 of the retirement and social security law is amended
 by adding a new subdivision h to read as follows:
   H. THIS SECTION SHALL NOT APPLY TO POLICE/FIRE MEMBERS OF THE NEW YORK
 CITY FIRE DEPARTMENT PENSION FUND OR THE NEW YORK  CITY  POLICE  PENSION
 FUND  WHO  RECEIVE A SERVICE RETIREMENT BENEFIT PURSUANT TO SECTION FIVE
 HUNDRED FIVE OF THIS ARTICLE OR A DEFERRED VESTED  BENEFIT  PURSUANT  TO
 SECTION FIVE HUNDRED SIXTEEN OF THIS ARTICLE.
   § 3. Subdivision c of section 516 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   c.  The  deferred vested benefit of police/fire members, New York city
 police/fire   revised   plan   members,   New   York   city    uniformed
 correction/sanitation  revised plan members or investigator revised plan
 members shall be a pension commencing at early retirement age  equal  to
 two  and one-tenths percent of final average salary times years of cred-
 ited service, less fifty percent of the primary social security  retire-
 ment  benefit  commencing  at age sixty-two, as provided in section five
 hundred eleven of this article, EXCEPT THAT FOR POLICE/FIRE  MEMBERS  OF
 THE  NEW  YORK  CITY  FIRE  DEPARTMENT PENSION FUND OR THE NEW YORK CITY
 POLICE PENSION FUND, THE SERVICE RETIREMENT BENEFIT SHALL NOT BE REDUCED
 BY THE PRIMARY SOCIAL SECURITY  RETIREMENT  BENEFIT  COMMENCING  AT  AGE
 SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.  A
 police/fire  member,  a New York city police/fire revised plan member, a
 New York city uniformed correction/sanitation  revised  plan  member  or
 investigator revised plan member may elect to receive his vested benefit
 commencing  at  early  retirement  age  or age fifty-five. If the vested

 S. 5924--B                          3
 
 benefit commences before early retirement  age,  the  benefit  shall  be
 reduced  by one-fifteenth for each year, if any, that the member's early
 retirement age is in excess of age sixty, and by one-thirtieth for  each
 additional  year  by  which  the vested benefit commences prior to early
 retirement age. If such vested benefit  is  deferred  until  after  such
 member's  normal  retirement  age,  the  benefit  shall  be computed and
 subject to annual escalation in the same manner as provided for an early
 retirement benefit pursuant to subdivision c  of  section  five  hundred
 five of this article.
   §  4.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation would amend  Sections  505,
 511,  and 516 of the Retirement and Social Security Law (RSSL) to elimi-
 nate the offset equal to 50% of the primary social security  benefit  in
 service,  early  service,  and  vested  retirement  benefits  for Tier 3
 original, revised, and enhanced plan members of the New York City Police
 Pension Fund (POLICE) and the New York City Fire Pension Fund (FIRE).
   Effective Date: Sixty days after enactment.
   IMPACT ON BENEFITS: Currently, the Tier 3 normal  service  retirement,
 early  service retirement, and vested retirement benefits are subject to
 an offset equal to 50% of the primary social security benefit as defined
 in RSSL Section 511 beginning at age 62.
   Under the proposed legislation, if enacted, the offset for such Tier 3
 benefits would be eliminated resulting in an increase in benefits.
   FINANCIAL IMPACT - SUMMARY: The financial impact will increase as  the
 impacted  populations (Tier 3 members of POLICE and FIRE) increases over
 time. The estimated financial impact of  removing  the  social  security
 offset  as  described  above  results in an increase in Present Value of
 Future Benefits (PVFB) and an increase in the annual  employer  contrib-
 utions  of  POLICE  and FIRE. The estimate of these increases for Fiscal
 Years 2020 through 2024 based on the  applicable  actuarial  assumptions
 and methods noted herein, are shown in the table below.

            Increase in Present Value of      Increase in Employer
               Future Benefits (PVFB)             Contributions
                    ($ Millions)                  ($ Millions)
   Fiscal
    Year      POLICE   FIRE     TOTAL         POLICE    FIRE    TOTAL
    2020      $368.1   $46.2    $414.3        $22.9     $2.3    $25.2
    2021      $433.7   $56.9    $490.6        $26.3     $2.8    $29.1
    2022      $501.3   $68.3    $569.6        $29.8     $3.5    $33.3
    2023      $578.8   $80.2    $659.0        $33.8     $4.1    $37.9
    2024      $658.6   $93.1    $751.7        $37.6     $4.7    $42.3
 
   In accordance with Administrative Code of the City of New York (ACCNY)
 Section 13-638.2(k-2), new Unfunded Accrued Liability (UAL) attributable
 to  benefit changes are to be amortized 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
 POLICE Tier 3 members is approximately 19 years and FIRE Tier 3  members
 is approximately 21 years.
   For  the  purposes  of  this  Fiscal Note, the increase in the UAL for
 POLICE was amortized over a 19-year period (18 payments under  the  One-
 Year Lag Methodology (OYLM)) using level dollar payments and the UAL for

 S. 5924--B                          4
 
 FIRE  was  amortized  over a 21-year period (20 payments under the OYLM)
 using level dollar payments.
   OTHER COSTS: Not measured in this Fiscal Note are the following:
   *  The  initial,  additional administrative costs of POLICE, FIRE, and
 other New York City agencies to implement the proposed legislation.
   * Pension costs for:
     * Future members of POLICE and FIRE hired after 7/1/2022.
     * Current and future members of New York City Employees'  Retirement
       System  who  currently have the same benefit formula as POLICE and
       FIRE Tier 3 members and who may obtain the same  benefit  improve-
       ment.
   * 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 PVFB and annual employer contributions
 would be reflected for the first time in the  June  30,  2018  actuarial
 valuation of POLICE and FIRE. In accordance with the OYLM used to deter-
 mine  employer  contributions,  the  increase  in employer contributions
 would first be reflected in Fiscal Year 2020.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data used in the Preliminary June 30, 2018 (Lag) actuarial valuations of
 POLICE  and  FIRE to determine the Preliminary Fiscal Year 2020 employer
 contributions.
   There are 14,419 active Tier 3 members of POLICE as of June  30,  2018
 and  they  have  an  average  age  of  approximately 30.2 years, average
 service of approximately 3.8 years, and an average  salary  of  approxi-
 mately $80,900.
   There  are 3,074 active Tier 3 members of FIRE as of June 30, 2018 and
 they have an average age of approximately 30.4 years, average service of
 approximately 2.6 years, and an average salary of approximately $67,600.
   ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the PVFB 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 contributions of POLICE and FIRE.
   New  entrants  were projected to replace the members expected to leave
 the active population to maintain a steady-state population. New entrant
 demographics and future salary increases are consistent with those  used
 in  projections for the New York City Office of Management and Budget in
 April 2019 (Preliminary Projections).
   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

 S. 5924--B                          5
 
 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 2019-35 dated June 12,
 2019 was prepared by the Chief Actuary for  the  New  York  City  Police
 Pension  Fund  and the New York City Fire Pension Fund. This estimate is
 intended for use only during the 2019 Legislative Session.