S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8762
 
                             I N  S E N A T E
 
                               July 14, 2020
                                ___________
 
 Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT granting retroactive membership in the New York  city  employees'
   retirement system to Gregory Dunlavey and Angelo Pisani
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Notwithstanding any other  law  to  the  contrary,  Gregory
 Dunlavey,  who  was employed as a rackets investigator with the New York
 city district attorney with a start date of July 19,  2010,  and  Angelo
 Pisani,  who  was  employed  as a rackets investigator with the New York
 city district attorney with a start date of February 7,  2007,  both  of
 whom  failed to indicate on their initial retirement member applications
 participation in either the district attorney investigators 25 year plan
 as provided by section 13-157.1 of the administrative code of  the  city
 of  New  York  or  the  district  attorney investigators 20 year plan as
 provided by section 13-157.4 of the administrative code of the  city  of
 New  York, may file an application to opt in to either plan effective as
 of the member's respective start date. The  application  must  be  filed
 with the New York city employees' retirement system within one year from
 the effective date of this act.
   §  2.  Any  additional  contributions  will be borne by the respective
 members and made prior to retirement.
   § 3. All employer past service costs associated with implementing  the
 provisions of this act shall be borne by the city of New York and may be
 amortized over a ten-year period.
   § 4. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF BILL: The proposed legislation would permit Gregory Dunla-
 vey and Angelo Pisani, two active Tier 2 District Attorney Investigators
 and members of the New York City Employees' Retirement System  (NYCERS),
 to  elect, by filing an application with NYCERS within one year in which
 the proposed legislation is passed, to be granted membership in the Tier
 2 20-Year or 25-Year  District  Attorney  Investigator  (IDA)  Plan  for
 NYCERS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD13105-02-0

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   Effective Date: Upon enactment.
   BACKGROUND:  Mr.  Dunlavey  and Mr. Pisani initially joined the NYCERS
 Modified Career Pension Plan (CPP) for Tier 2 members in 2010 and  2007,
 respectively.  Although  eligible to elect either the NYCERS IDA 20-Year
 or 25-Year Plan within 180 days  of  becoming  an  investigator  member,
 neither made such election.
   Mr.  Dunlavey  and Mr. Pisani have earned approximately nine years and
 18 years of NYCERS service, respectively (the latter reflects six  years
 of purchased service). For purposes of this Fiscal Note, we have assumed
 that  they  will  both elect the IDA 20-Year Plan and they will make the
 employee contributions, including foregone  interest,  that  would  have
 been  required  had  they  been members of the IDA 20-Year plan from the
 time they initially joined NYCERS.
   FINANCIAL IMPACT - PRESENT VALUES: The estimated financial  impact  of
 this  proposal  has  been calculated based on the difference between (1)
 the present value of benefits Mr. Dunlavey and Mr. Pisani would  receive
 if  the  IDA  20-Year Plan were elected and (2) the present value of the
 Tier 2 benefits in the NYCERS Modified CPP Plan.
   Based on the actuarial assumptions and methods described  herein,  and
 assuming  that  both Mr. Dunlavey and Mr. Pisani elected the IDA 20-Year
 Plan, the enactment of this  proposed  legislation  would  increase  the
 Present  Value  of Future Benefits (PVFB) by approximately $112,000, and
 decrease the Present Value of future member  contributions  by  approxi-
 mately  $23,000, resulting in an increase in the present value of future
 employer contributions of approximately $135,000.
   Under the Entry Age Normal cost method used to determine the  employer
 contributions  to  NYCERS,  there  would  be an increase in the Unfunded
 Accrued Liability (UAL) of approximately $141,000 and a decrease in  the
 Present Value of future employer Normal Cost of $6,000.
   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, 2019, the average remaining working lifetime for  Mr.  Dunlavey  and
 Mr.  Pisani is approximately nine years under the IDA 20-Year Plan.
   For  purposes  of  this Fiscal Note, the increase in UAL was amortized
 over a nine-year period (eight payments under the One-Year Lag Methodol-
 ogy (OYLM)) using level dollar payments. This payment plus the  increase
 in  the  Normal  Cost results in an increase in annual employer contrib-
 utions of approximately $37,000 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 the NYCERS.
 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: As of June 30, 2019, Mr. Dunlavey was  approximately  age
 35, had approximately 9.0 years of service, and a salary of $96,970.
   As of June 30, 2019, Mr. Pisani was approximately age 51, had approxi-
 mately 18.0 years of service, and a salary of $88,412.
   ACTUARIAL  ASSUMPTIONS  AND  METHODS:  The changes in 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 valuation

 S. 8762                             3
 
 used to determine the Preliminary Fiscal  Year  2020  employer  contrib-
 utions 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 initial, additional administrative costs of NYCERS and other New
 York City agencies to implement 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 2020-11 dated March 4,
 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.