S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11089
 
                           I N  A S S E M B L Y
 
                              October 9, 2020
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Abbate) --
   read once and referred to the Committee on Governmental Employees
 
 AN ACT to authorize employers to provide a temporary  retirement  incen-
   tive  for  certain  public employees in the city of New York (Part A);
   and to provide an age 55/25 years temporary retirement  incentive  for
   certain public employees in the city of New York (Part B)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law  components  of  legislation  that
 would enable the city of New York to offer a temporary retirement incen-
 tive to their employees, as well as to provide an age 55/25 years tempo-
 rary  incentive  for  certain public employees. Each component is wholly
 contained within a Part identified as Parts A and B. The effective  date
 for each particular provision contained within such Part is set forth in
 the  last  section  of such Part. Any provision in any section contained
 within a Part, including the effective date of  the  Part,  which  makes
 reference  to a section "of this act", when used in connection with that
 particular component, shall be deemed to mean and refer  to  the  corre-
 sponding  section  of the Part in which it is found, unless noted other-
 wise.
   § 2. Legislative findings. The legislature finds and declares that the
 retirement benefits provided for in this act  are  designed  to  achieve
 cost-savings for public employers and to avoid layoffs of public employ-
 ees  in  this  time  of fiscal need. Therefore, the retirement incentive
 benefit provided for in Part A of this  act  and  the  age  55/25  years
 retirement  benefit provided for in Part B of this act are intended only
 to be temporary in nature for employees who are eligible to receive  and
 qualify  for  the  applicable benefit during the applicable time periods
 specified within each Part.  Further,  nothing  in  this  act  shall  be
 construed  to create an expectation of a future or continuing retirement
 benefit for any public employee who is not eligible to receive and qual-
 ify for the retirement benefits in this act during the  applicable  time
 periods.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD17044-07-0

 A. 11089                            2
 
                                  PART A
 
   Section 1. Definitions. As used in this act, unless the context clear-
 ly requires otherwise:
   a.  "Retirement  system"  means the New York city teachers' retirement
 system, the New York city board of education retirement  system  or  the
 New  York city employees' retirement system, exclusive of the retirement
 plans established pursuant to sections 13-156 and 13-157 of the adminis-
 trative code of the city of New York.
   b. "Teachers' retirement system" means the  New  York  city  teachers'
 retirement system.
   c.  "Eligible employee" means a person who is a member of a retirement
 system who is an employee of the city of New York, but such  term  shall
 not include the following persons:
   (a) elected officials, judges or justices appointed to or serving in a
 court of record;
   (b)  chief administrative officers of employers which participate in a
 teachers' retirement system;
   (c) appointed members of boards or commissions any  of  whose  members
 are appointed by the governor or by another public officer or body;
   d.  "Eligible  title"  means any title where a certain number of posi-
 tions in that title, as identified by agency, department, work  location
 or  appointing  authority  of  the city of New York, as the case may be,
 would otherwise be identified for layoff but for  this  act  because  of
 economy,  consolidation or abolition of functions, curtailment of activ-
 ities or otherwise. However, an eligible title can also include a  title
 as  identified  by  an  agency,  department, work location or appointing
 authority of the city of New York in which positions would not be elimi-
 nated but into which employees in  titles  affected  by  layoff  can  be
 transferred  or  reassigned  pursuant  to the civil service law, rule or
 regulation. The determination of eligible titles shall be  made  by  the
 chief executive officer of the city of New York.
   e.  "Active  service"  means  service while being paid on the payroll,
 provided that (a) a leave of absence with pay  shall  be  deemed  active
 service; (b) other approved leave without pay not to exceed twelve weeks
 prior  to  the  commencement  of the designated open period; and (c) the
 period of time subsequent to a June school term and on or before  August
 31  of the year for which an open period is designated for a teacher (or
 other employee employed on a school-year  basis)  who  is  otherwise  in
 active  service on the effective date of this act shall be deemed active
 service.
   f. "Open period" means the period beginning with the commencement date
 as defined in subdivision g of this section and shall not be  more  than
 ninety  days  nor  less  than thirty days in length, as specified by the
 city of New York. For the purposes of retirement pursuant to this act, a
 service retirement  application  must  be  filed  with  the  appropriate
 retirement  system  not  less  than fourteen days prior to the effective
 date of retirement to become effective, unless a shorter period of  time
 is permitted under law.
   g.  "Commencement  date"  means the first day the retirement incentive
 authorized by this act shall be made available, which shall mean a  date
 or  dates on or after the effective date of this act to be determined by
 the chief executive officer of the city of New York. The chief executive
 officer shall notify the heads of the appropriate retirement systems  of
 the  dates  of  each open period prior to the commencement dates of such
 periods.

 A. 11089                            3
 
   § 2. The determination of whether a title shall be considered eligible
 shall consider whether the reduction of a specific number  of  positions
 within a title would unacceptably:
   a.  Directly result in a reduction of the level of service required or
 mandated to protect and care for clients of the city of New York  or  to
 assure public health and safety;
   b. Endanger the health or safety of employees of the city of New York;
 or
   c.  Clearly result in a loss of significant revenue to the city of New
 York or result in substantially increased overtime or contractual costs.
 However, any title may be determined eligible if the  vacancies  created
 can  be  controlled by the use of transfer or reassignment provisions of
 the civil service law, rules or regulations or other deployment of  city
 employees.
   § 3. a. Eligibility for inclusion in the retirement incentive provided
 by  section six of this act shall be determined by seniority for employ-
 ees of the city of New York; seniority shall mean the date  of  original
 permanent  appointment  in  the  civil  service  of the city adjusted to
 include veteran's credits for those entitled  to  receive  such  credits
 pursuant  to  sections  80,  80-a  and  85,  if applicable, of the civil
 service law, as established in the official records of the New York city
 department of citywide administrative services, regardless of the juris-
 dictional classification of the position or the status of the incumbent.
   b. All eligible employees serving in eligible titles desiring to avail
 themselves of the retirement incentive provided by section six  of  this
 act shall provide written notice to his or her employer on or before the
 twenty-first  day  preceding  the  end  of the open period.   Failure to
 provide such written notice shall render the employee ineligible for the
 retirement incentive provided by this act.
   § 4. a. On or after the effective date of this act, the  city  of  New
 York may elect to provide its employees the retirement incentive author-
 ized  by  this act by the enactment of a local law, provided however, no
 local law enacted pursuant to this section shall in any manner supersede
 any local charter. The local law shall specify the commencement date  of
 the  program  and  the  length of the open period or periods.  A copy of
 such law shall be  filed  with  the  appropriate  retirement  system  or
 systems, and, if applicable, on forms provided by such system. The local
 law  or  resolution  shall  be accompanied by the affidavit of the chief
 executive officer certifying to the information contained in subdivision
 c of this section.
   b. The commencement date of an open period for eligible employees of a
 retirement system of the city of New York who elects retirement benefits
 pursuant to this section may be up to one hundred eighty days after  the
 end  of  the  open  period for other eligible employees, if requested by
 such system.
   c. Notwithstanding any other provision of law, the  benefits  provided
 by  this  act  shall  not  be  made  available to any person who (a) has
 received any retirement incentive authorized by any provision  of  state
 law,  or  (b)  who  receives,  has  received or is eligible to receive a
 payment in a lump sum or in another form  from  a  retirement  incentive
 pursuant  to  the  provisions of a collective bargaining agreement or by
 other arrangement with his or her employer, unless such person  files  a
 written  statement  with  his  or her employer, a copy of which shall be
 forwarded to the appropriate retirement system, that he or she agrees to
 waive any right to such payment. If the city of New York has  offered  a
 retirement incentive pursuant to the provisions of a collective bargain-

 A. 11089                            4

 ing agreement or by other arrangement, such city shall prepare, and file
 with  each  retirement  system,  a  list containing the names and social
 security numbers of all persons described in this subdivision. The  city
 is  authorized,  however,  to  exempt  persons  in  its  employ from the
 provisions of paragraph (b) of this subdivision. Such exemption shall be
 made part of the election made pursuant to this section.
   § 5. Notwithstanding any other provision of law, any eligible employee
 serving in an eligible title who:
   a. has been continuously in the active service of the city of New York
 prior to the commencement date of the applicable open period;
   b. files an application  for  service  retirement  that  is  effective
 during the open period; and
   c.  is otherwise eligible for a service retirement as of the effective
 date of the application for retirement shall be entitled to the  retire-
 ment  incentive  provided  in  section six of this act. If not otherwise
 eligible for a service retirement, the following person shall be  deemed
 to satisfy the eligibility condition of this section: a person who is at
 least  age fifty with ten or more years service as of the effective date
 of retirement (other than a member of a retirement plan  which  provides
 for  half-pay  pension  upon  completion  of  twenty-five  years or less
 service without regard to age); or a member of a retirement  plan  which
 provides  for  half-pay  pension upon completion of twenty-five years of
 service without regard to age who has not accrued, excluding  additional
 credit  granted  pursuant  to  this  act, the minimum number of years of
 service required to retire with an allowance equal to fifty  percent  of
 final average salary under such plan, but has, with the inclusion of the
 additional  credit provided under this act, accrued such number of years
 of credit.
   § 6. Notwithstanding any other provision of law, an eligible  employee
 serving  in  an eligible title who is a member of a retirement system of
 the city of New York and employed by the city of New  York  and  who  is
 entitled  to a retirement incentive pursuant to section five of this act
 shall receive a retirement incentive of one-twelfth of a year  of  addi-
 tional retirement credit for each year of pension service credited as of
 the  date  of  retirement,  up to a maximum of three years of retirement
 service credit at  the  time  of  retirement,  provided,  however,  that
 service  credit provided under the provisions of sections 902 and 911 of
 the retirement and social security law shall not be included when calcu-
 lating the additional retirement credit awarded pursuant  to  this  act.
 For  the  New  York  city teachers' retirement system, the New York city
 employees' retirement system and the New York city  board  of  education
 retirement  system  such  incentive shall be available for all purposes,
 including fulfilling the qualifying service requirements of plan  A  and
 C, if applicable.
   An eligible employee who is covered by the provisions of article 15 of
 the retirement and social security law shall retire under the provisions
 of  article  15 of the retirement and social security law. The amount of
 such benefit for an eligible employee who is covered by  article  15  of
 the  retirement and social security law and retires under the provisions
 of this section (other than a  member  with  thirty  or  more  years  of
 service  in the New York city employees' retirement system, the New York
 city teachers' retirement system, or the New York city board  of  educa-
 tion  retirement system) shall be reduced by six percent for each of the
 first two years by which  retirement  precedes  age  sixty-two,  plus  a
 further  reduction  of  three  percent for each year by which retirement
 precedes age sixty, provided, however, the  foregoing  reductions  shall

 A. 11089                            5
 
 not  apply:  (i) in any case where an eligible employee can retire after
 twenty-five years of service with immediate payability prior to the  age
 of  sixty-two  pursuant  to  section  604-b of the retirement and social
 security law or (ii) to any time period subsequent to the point at which
 an  eligible employee can retire for service without reduction of his or
 her service retirement allowance pursuant to article 16 of  the  retire-
 ment  and  social  security  law.  Such  reduction shall be prorated for
 partial years. The amount of such benefit for an eligible employee  with
 thirty  or  more  years  of service who is a member of the New York city
 employees' retirement system, the New  York  city  teachers'  retirement
 system, or the New York city board of education retirement system, or an
 eligible  employee who is a participant in the optional twenty-five year
 early retirement program for certain New York city members  governed  by
 section  604-c  of  the  retirement and social security law, as added by
 chapter 96 of the laws of 1995 or a twenty-five year participant in  the
 age  fifty-five  retirement  program  governed  by  section 604-i of the
 retirement and social security law, with twenty-five or  more  years  of
 service  and  who  is covered by article 15 of the retirement and social
 security law shall be reduced by five percent for  each  year  by  which
 retirement  pursuant to this section precedes age fifty-five. The amount
 of such benefit for an eligible New York city employee with five or more
 years of service and who is a participant in the age fifty-seven retire-
 ment program governed by section 604-d  of  the  retirement  and  social
 security  law  shall be reduced by one-thirtieth for the first two years
 by which retirement precedes age fifty-seven plus a further reduction of
 one-twentieth for each year by which retirement precedes age fifty-five.
 Such reduction shall be prorated for partial years. There  shall  be  no
 reduction  for an eligible New York city employee in a physically taxing
 position with twenty-five or more years of service and who is a  partic-
 ipant  (i) in the optional twenty-five year early retirement program for
 certain members governed by section 604-c of the retirement  and  social
 security law, as added by chapter 96 of the laws of 1995, or (ii) in the
 age  fifty-seven  retirement  program  governed  by section 604-d of the
 retirement and social security law.
   An eligible employee serving in an eligible title who  is  covered  by
 article  11 of the retirement and social security law shall retire under
 the provisions of such article. There shall be no reduction  in  retire-
 ment  benefit  provided  that  such employee retires with thirty or more
 years of service at age fifty-five or older.
   An eligible employee serving in an eligible title who is  not  covered
 by  article  11  or  15  of the retirement and social security law shall
 retire under the provisions of the plan by which he or she  is  covered.
 The  amount  of  such  benefit shall be reduced by five percent for each
 year by which retirement pursuant to this section  precedes  age  fifty-
 five,  provided,  however, the foregoing reductions shall not apply: (i)
 in any case where an eligible employee can retire  pursuant  to  a  plan
 which  permits  retirement for service with immediate payability, exclu-
 sive of this act, prior to the age of fifty-five or  (ii)  to  any  time
 period  subsequent to the point at which an eligible employee can retire
 for service without reduction of his or her service retirement allowance
 pursuant to article 16 of the retirement and social security  law.  Such
 reduction shall be prorated for partial years.
   An  eligible employee serving in an eligible title who participates in
 a retirement plan which provides for a  retirement  allowance  equal  to
 fifty percent of final average salary upon the completion of twenty-five
 years  of service without regard to age and who is otherwise eligible to

 A. 11089                            6
 
 retire shall retire under the provisions of  such  plan.  Such  employee
 shall, at the time of retirement, be credited with one-twelfth of a year
 of additional retirement service credit for each year of service credit-
 ed  under  such  plan  as  of the date of retirement, up to a maximum of
 three years of retirement service  credit.  If  such  employee  has  not
 accrued,  excluding  additional credit granted pursuant to this act, the
 minimum number of years of service required to retire with an  allowance
 equal to fifty percent of final average salary under such plan, but has,
 with  the  inclusion  of  the additional credit provided under this act,
 accrued such number of years of credit, the benefit payable shall be the
 percentage of final average salary that would ordinarily  be  applicable
 to such individual upon retirement with such amount of credit (including
 incentive  credit), reduced by five per centum per year for each year by
 which the number of years of service otherwise required to  retire  with
 an  allowance  equal to fifty percent of final average salary under such
 plan exceeds the amount of service credited to such employee under  such
 plan  at  retirement  (excluding  the  additional  retirement  incentive
 service credit provided pursuant to this act). Such reduction  shall  be
 prorated for partial years.
   §  7.  a.  Notwithstanding any other provision of law, any termination
 pay or leave arising from accrued sick leave or accrued annual leave for
 an eligible employee who has elected the retirement  incentive  provided
 by  this  act and who is a member of the New York city teachers' retire-
 ment system employed by the board of education of the city of  New  York
 shall  be  paid  in  three equal installments during a twenty-four month
 period commencing on such eligible employee's effective date of  retire-
 ment.
   b.  An  employee of the city of New York who retires under the retire-
 ment incentive provided by this act, who is eligible for terminal  leave
 pursuant to an applicable collective bargaining agreement or a personnel
 policy  or  rule  or  retirement  leave  pursuant to section 3107 of the
 education law or who has an accrued annual leave balance on  the  effec-
 tive  date  of  retirement shall be paid in three equal installments two
 months, fourteen months and twenty-four months following  such  eligible
 employee's effective date of retirement.
   §  8.  a.  The city of New York, if it elects the retirement incentive
 provided by this act shall be required to  demonstrate  the  savings  of
 their election by either eliminating positions vacated as a result of an
 eligible  employee in an eligible title receiving the incentive provided
 by section six of this act or demonstrating a compensation savings  such
 that the total amount of base salary paid for the two-year period subse-
 quent to the effective date of retirement for such eligible employees in
 eligible  titles to new hires, if any, who otherwise would not have been
 hired by such employer after the effective date of this act but for  the
 retirement  incentive  provided herein shall be no more than one-half of
 the total amount of base salary that would have been paid to such eligi-
 ble employees from their date of retirement for  such  two-year  period.
 The  city may also demonstrate savings, however, by identifying a vacant
 position into which another employee can be appointed,  transferred,  or
 reassigned  pursuant  to the civil service law, rules or regulations, in
 which case the former position of  the  employee  so  appointed,  trans-
 ferred,  or  reassigned shall be eliminated.  The city shall make avail-
 able its plans for achieving the savings described herein.
   b. The New York city department of  citywide  administrative  services
 shall  prepare  a report designating the title, grade level, salary, and
 classification, according to appointing authority, (i) of each  position

 A. 11089                            7
 
 which  is  eliminated pursuant to subdivision a of this section, (ii) of
 each position into which another employee was appointed, transferred, or
 reassigned and the former position of such employee, and (iii)  of  each
 position  which is eliminated as a result of an appointment, transfer or
 reassignment referred to in paragraph (ii)  of  this  subdivision.  Such
 report  shall be available no later than ninety days after the last date
 of the open period related to such positions.
   § 9. Nothing in this act shall be used to provide benefits that  shall
 exceed the limits contained in section 415 of the internal revenue code.
 Provided, however, any service retirement benefit which has been reduced
 because  of  section 415 of the internal revenue code shall be increased
 when (and consistent with) the dollar  limits  in  section  415  of  the
 internal  revenue  code are adjusted by the internal revenue service for
 cost of living increases. Such increases shall not increase the  benefit
 in excess of the service retirement benefit otherwise payable.
   §  10. Any eligible employee who retires pursuant to the provisions of
 this act and enters or reenters public service as defined in subdivision
 e of section 210 of the retirement and social security law and joins  or
 rejoins  any  public  retirement system of the city of New York shall if
 the additional benefit was provided pursuant to: (a) section six of this
 act, forfeit the additional benefit authorized by this act at  the  time
 of his or her subsequent retirement; or (b) repay to the city such addi-
 tional contribution together with the appropriate interest as determined
 by the appropriate retirement system.
   §  11.  Notwithstanding  any  other  provision  of law, if the service
 retirement benefit of a member of a retirement system is  subject  to  a
 maximum  retirement  benefit,  the additional benefit authorized by this
 act will be computed by multiplying the final average salary  times  the
 number  of  years  of  service credit granted by section six of this act
 times the benefit fraction of the plan under which such member retires.
   § 12. The provisions of section 430 of the retirement and social secu-
 rity law shall not apply to any benefit or benefit improvement  provided
 by this act.
   §  13.  The  pension benefit costs of section six of this act shall be
 paid by the city of New York as provided  by  applicable  law  for  each
 retirement  system  covered by this act over a period not to exceed five
 years commencing in the fiscal year following the fiscal year  in  which
 this act shall have become a law.
   §  14. Where an employee is eligible to receive the benefit authorized
 under section six and the retirement benefit provided for under  section
 five  of  part  B  of  this act, such employee may elect a section under
 which he or she will participate.    In  no  event  shall  the  benefits
 provided  for  in section six of this act be received by any employee in
 conjunction with the benefits of section five of part B of this act.
   § 15. This act shall take effect immediately.
                                   PART B
 
   Section 1. Definitions. As used in this act, unless the context clear-
 ly requires otherwise:
   a. "Retirement system" means the New York  city  teachers'  retirement
 system,  the  New  York city board of education retirement system or the
 New York city employees' retirement system, exclusive of the  retirement
 plans established pursuant to sections 13-156 and 13-157 of the adminis-
 trative code of the city of New York.
   b.  "Teachers'  retirement  system"  means the New York city teachers'
 retirement system.

 A. 11089                            8
 
   c. "Eligible employee" means a person who is a member of a  retirement
 system  of  the city of New York who has attained age fifty-five and has
 at least twenty-five years of creditable service in a retirement system,
 but such term shall not include the following persons:
   (a)  elected  officials, judges or justices appointed to or serving in
 court of record;
   (b) chief administrative officers of employers which participate in  a
 teachers' retirement system;
   (c)  appointed  members  of boards or commissions any of whose members
 are appointed by the governor or by another public officer or body;
   d. "Active service" means service while being  paid  on  the  payroll,
 provided  that  (a)  a  leave of absence with pay shall be deemed active
 service; (b) other approved leave without pay not to exceed twelve weeks
 prior to and the commencement of the designated open period; and (c) the
 period of time subsequent to a June school term and on or before  August
 31  of the year for which an open period is designated for a teacher (or
 other employee employed on a school-year  basis)  who  is  otherwise  in
 active  service on the effective date of this act shall be deemed active
 service.
   e. "Open period" means the period beginning with the commencement date
 as defined in subdivision f of this section and shall be ninety days  in
 length,  as  specified  by  the  city  of  New York. For the purposes of
 retirement pursuant to this act, a service retirement  application  must
 be  filed  with the appropriate retirement system not less than fourteen
 days prior to the effective date  of  retirement  to  become  effective,
 unless a shorter period of time is permitted under law.
   f.  "Commencement  date"  means  the  first day the retirement benefit
 mandated by this act shall be made available, which shall mean a date or
 dates on or after the effective date of this act to be determined by the
 chief executive officer of the city of New  York.  The  chief  executive
 officer  shall  notify  the head of the appropriate retirement system of
 the date of the open periods prior to the  commencement  dates  of  such
 periods.
   §  2.  The  city  of New York, if it elects to participate pursuant to
 section three of this act shall establish a commencement  date  for  the
 retirement  benefit  established  under  section five of this act by the
 chief executive officer issuing an  executive  order  establishing  such
 commencement  date,  provided,  however, no executive order shall in any
 manner supersede any local charter. A copy of any such  executive  order
 establishing  a  commencement  date  shall be filed with the appropriate
 retirement system or systems, and, if applicable, on forms  provided  by
 such  system.  The executive order shall be accompanied by the affidavit
 of the chief executive officer certifying the commencement date.
   § 3. a. On or after the effective date of this act, the  city  of  New
 York may elect to provide its employees the retirement incentive author-
 ized  by  this  act by the enactment of a local law provided however, no
 local law enacted pursuant to this section shall in any manner supersede
 any local charter.  A copy of such law or resolution shall be filed with
 the appropriate retirement system or systems,  and,  if  applicable,  on
 forms provided by such system. The local law shall be accompanied by the
 affidavit of the chief executive officer certifying the validity of such
 law.
   b. The commencement date of an open period for eligible employees of a
 retirement system of the city of New York who elects retirement benefits
 pursuant  to this section may be up to one hundred eighty days after the

 A. 11089                            9
 
 end of the open period for other eligible  employees,  if  requested  by
 such system.
   § 4. Notwithstanding any other provision of law, any eligible employee
 who  (a)  has been continuously in the active service of the city of New
 York prior to the commencement date of the applicable open  period,  (b)
 files an application for service retirement that is effective during the
 open  period,  and (c) is otherwise eligible for a service retirement as
 of the effective date of the application for retirement shall  be  enti-
 tled to the retirement benefit provided in section five of this act.
   §  5.  a.  Notwithstanding  any  other  provision  of law, an eligible
 employee who is: (a) a member of a retirement system of the city of  New
 York  and  employed by the city of New York and (b) who is entitled to a
 retirement benefit pursuant to section  four  of  this  act  may  retire
 during  the  open  period without the reduction of his or her retirement
 benefit that would otherwise be imposed by  article  11  or  15  of  the
 retirement  and social security law if he or she has attained the age of
 fifty-five and has completed at least twenty-five or more years of cred-
 itable service. An eligible employee who is covered by the provisions of
 articles 11 and 15 of the  retirement  and  social  security  law  shall
 retire  under the provisions of articles 11 and 15 of the retirement and
 social security law.
   b. The chief executive officer of  the  city  of  New  York  may  deny
 participation  in  the  retirement  benefit provided by subdivision a of
 this section if the chief executive officer makes a  determination  that
 the employee holds a position that is deemed critical to the maintenance
 of public health and safety.
   c. Where an employee is eligible for the retirement benefit under this
 section  and the retirement incentive authorized pursuant to section six
 of part A of this act, such employee shall elect a section  under  which
 he  or  she  will participate. The benefits provided by subdivision a of
 this section shall not be conditioned upon the city of New  York  making
 the benefits of section six of part A of this act available to employees
 in their employ. Further, the benefits provided by subdivision a of this
 section  shall  not  be  available  in  conjunction with the benefits of
 section six of part A of this act.
   d. The action of the chief executive officer of the city of  New  York
 in  denying the retirement benefit provided for in subdivision a of this
 section to any individual shall be  subject  to  review  in  the  manner
 provided  for  in  article  78 of the civil practice law and rules. Such
 action for review pursuant to article 78 of the civil practice  law  and
 rules  shall  only  be  commenced  by the individual that was denied the
 retirement benefit provided by subdivision a of this section.
   e. After making any such determination under  subdivision  b  of  this
 section the chief executive officer of the city of New York shall notify
 the  appropriate retirement system or teachers' retirement system of its
 determination.
   § 6. The pension benefit costs of section five of this  act  shall  be
 paid  by  the  city  of  New York as provided by applicable law for each
 retirement system covered by this act over a period not to  exceed  five
 years  commencing  in the fiscal year following the fiscal year in which
 this act shall have become a law.
   § 7. This act shall take effect immediately.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in

 A. 11089                           10
 
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  applicable  effective date of Parts A and B of this act shall be as
 specifically set forth in the last section of such Parts.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation, as it relates to  the  New
 York  City  Retirement  Systems  (NYCRS),  would provide for a temporary
 Early Retirement  Incentive  Program  (ERI  Program)  to  allow  certain
 members  of the New York City Employees' Retirement System (NYCERS), the
 New York City Teachers' Retirement System (TRS), and the New  York  City
 Board  of  Education  Retirement System (BERS), who are employees of the
 City of New York (City) and meet enumerated criteria, to elect immediate
 retirement with enhanced benefits.
   The ERI Program consists of two  parts  and  is  contingent  upon  the
 City's  election  to participate in the Program. Part A would provide to
 eligible members, determined by title, seniority, and enumerated  policy
 considerations,  an  additional  service credit. Part B would remove the
 application  of  early  retirement  reduction  factors  for   qualifying
 members.  The benefits of the respective Parts cannot be combined.
   Eligible  NYCRS  members  would have anywhere from 30 to 90 days in an
 open period to elect and retire under Part A or  within  a  90-day  open
 period following the commencement date to retire under Part B of the ERI
 Program.  Multiple  open periods, not to exceed 180 days from the end of
 an open period for other employees,  may  be  requested  by  the  NYCRS.
 Should the City elect to participate in the ERI Program provided by this
 Act,  it  would  be  required  to demonstrate the savings related to the
 election.
   A member is eligible to participate in Part A of the ERI Program if he
 or she:
   * Is otherwise eligible for service retirement;
   * Is at least age 50 with 10 or more years of service and is not in  a
 plan  which  permits  retirement  at  half-pay with 25 or fewer years of
 service without regard to age; or
   * Is in a plan that permits retirement at  half-pay  at  25  years  of
 service  without  regard  to  age  and  would  reach 25 years of service
 considering the additional service credit provided in Part A.
   A member is eligible to participate in Part B of the ERI Program if he
 or she is age 55 or older and has at least 25 years of service.
   In addition to the eligibility conditions above, members must also:
   * Be in continuous active service preceding the commencement  date  of
 the open period;
   *  For  Part  A - provide timely written notice of the intent to avail
 himself or herself of the ERI and file for service  retirement  that  is
 effective within the open period;
   *  For  Part  B - file for service retirement that is effective within
 the open period and otherwise be eligible to retire for  service  as  of
 the effective date of retirement.
   Effective  Date:  Upon  enactment  and as determined by the respective
 open periods contained in Parts A and B.
   IMPACT ON BENEFITS: Part A would provide  one-twelfth  of  a  year  of
 additional  retirement  service credit for each year of pension service,
 up to a maximum of three years of additional retirement service  credit.

 A. 11089                           11
 
 Some benefits provided under Part A could be subject to Early Retirement
 Factors (ERF) as specified in the proposed legislation.
   Part B would allow members to retire with an unreduced benefit if they
 are at least age 55 with 25 or more years of service.
   FINANCIAL  IMPACT  -  OVERVIEW: There is no credible data available to
 estimate the number of members who will retire  under  the  current  ERI
 Program  and potentially benefit from this proposed legislation.  There-
 fore, the estimated financial impact has been calculated on a per  event
 basis  equal  to  the  average  increase  in the Present Value of future
 employer contributions and in  the  annual  employer  contributions  for
 members who would benefit from the proposed legislation.
   The  Present  Value of future employer contributions is the net result
 of the increase in the Present Value of Future Benefits (PVFB)  and  the
 decrease in the Present Value of member contributions.
   For the purposes of this Fiscal Note, the increase in Present Value of
 future  employer  contributions  was  amortized  over a five-year period
 (four payments under the One-Year Lag Methodology  (OYLM))  using  level
 dollar  payments, the maximum allowable period under the proposed legis-
 lation.   This amortized value  is  the  estimated  increase  in  annual
 employer contributions.
   There  will  also be future savings in Employer Contributions assuming
 that these members are not replaced.  This  additional  savings  is  not
 included here.
   With  respect  to  an  individual  member, the additional cost of this
 proposed legislation could vary greatly depending on the member's length
 of service, age, and salary history.
   FINANCIAL IMPACT - SUMMARY: Based on the census data and the actuarial
 assumptions and methods described herein, the enactment of this proposed
 legislation would result in an increase in the Present Value of Employer
 Contributions and annual employer contributions. The  estimated  pension
 financial impact has been calculated as the average increase per person.
 A  breakdown  of  the  financial  impact  by NYCRS is shown in the table
 below:
           NYCRS          Additional
                          Present Value of         Estimated
                          Future Employer          Annual Employer
                          Contributions            Contributions
                          ($ Per Person)           ($ Per Person)
 
       Part A Only
         NYCERS               $78,000                 $23,800
         TRS                   82,200                  25,100
         BERS                  37,300                  11,400
          Average             $75,500                 $23,100
 
       Part B Only
         NYCERS              $109,800                 $33,500
         TRS                   65,600                  20,000
         BERS                  95,100                  29,000
          Average            $105,500                 $32,200
 
       Both A & B
         NYCERS               $93,400                 $28,500
         TRS                   82,400                  25,200
         BERS                  43,200                  13,200
          Average             $85,100                 $26,000

 A. 11089                           12
 
   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  Final  June  30, 2019 actuarial valuations of
 NYCERS,  TRS,  and BERS.   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 valuations of
 NYCERS, TRS, and BERS to determine  the  Preliminary  Fiscal  Year  2021
 employer contributions.
   The  table  below  contains  the  census data for members who meet the
 eligibility requirements and would be impacted by  the  proposed  legis-
 lation  (Potential  Elections),  and  for  a subset of those members who
 would benefit actuarially (Assumed to Elect).
      NYCRS                    Potential Elections
 Part A Only     Count      Avg Age      Avg Svc       Avg Salary
   NYCERS        34,147      58.5         22.3          $83,900
   TRS           31,727      57.7         21.2          101,300
   BERS           9,736      60.2         15.8           49,900
    Total        75,610      58.4         21.0          $86,800
 
 Part B Only    Count       Avg Age      Avg Svc       Avg Salary
   NYCERS        5,990       58.2         30.2          $88,600
   TRS             569       58.0         26.9          110,100
   BERS            430       58.6         29.5           72,700
    Total        6,989       58.2         29.9          $89,400
 
 Both A & B     Count      Avg Age       Avg Svc       Avg Salary
   NYCERS       34,147       58.5         22.3          $83,900
   TRS          31,727       57.7         21.2          101,300
   BERS          9,736       60.2         15.8           49,900
    Total       75,610       58.4         21.0          $86,800
 
                               Assumed to Elect
                Count      Avg Age       Avg Svc       Avg Salary
                19,077       60.4         26.4          $87,600
                11,372       61.2         27.1          109,100
                 3,218       63.6         21.8           51,900
                33,667       61.0         26.2          $91,400
 
                Count      Avg Age       Avg Svc       Avg Salary
                 5,941       58.2         30.2          $88,400
                   530       57.9         26.9          109,900
                   423       58.6         29.5           71,500
                 6,894       58.2         29.9          $89,000
 
                Count      Avg Age       Avg Svc       Avg Salary
                20,035       60.2         26.5          $88,000
                11,525       61.2         27.1          109,200
                 3,231       63.5         21.8           52,200
                34,791       60.8         26.3          $91,700
   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

 A. 11089                           13

 used to determine the Preliminary Fiscal  Year  2021  employer  contrib-
 utions of NYCERS, TRS, and BERS.
   To  determine the impact of the elective nature of the proposed legis-
 lation, a subgroup based on who could  potentially  benefit  actuarially
 was  used.  The  Present  Value of future employer costs (i.e.  the PVFB
 less the Present Value of future member contributions) of each  member's
 benefit was determined under their current plan and as if retiring imme-
 diately  under  the ERI Program. If the Present Value of future employer
 cost under the ERI Program was greater than  or  equal  to  the  Present
 Value  of future employer cost under the member's current plan, then the
 member was deemed to benefit actuarially.
   Based on this analysis, the costs presented in this  Fiscal  Note  are
 borne  only  from current NYCERS, TRS, and BERS members who are employed
 by the City and assumed to benefit from, and thus opt to  retire  under,
 the ERI Program.
   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, TRS, and BERS, 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  offsetting reduction in salary due to retirements earlier than
 expected.
   * The impact of potential new hires replacing members who  retire  due
 to the ERI Program.
   *  The  initial,  additional  administrative  costs  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 2020-61  dated  September
 16, 2020 was prepared by the Chief Actuary for the New York City Employ-
 ees'  Retirement  System, the New York City Teachers' Retirement System,
 and the New York City Board of Education Retirement System.  This  esti-
 mate is intended for use only during the 2020 Legislative Session.