NY State Assembly Bill 2019-A6596A

Assembly Bill A6596A

Signed By Governor

2019-2020 Legislative Session

Relates to the rate of interest used in the actuarial valuation of certain liabilities

download bill text pdf

Archive: Last Bill Status Via S4488 - Signed by Governor

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
Jul 03, 2019	signed chap.76
Jun 28, 2019	delivered to governor
Jun 03, 2019	returned to senate passed assembly ordered to third reading cal.427 substituted for a6596a
Jun 03, 2019	substituted by s4488a
May 23, 2019	advanced to third reading cal.427
May 21, 2019	reported
May 07, 2019	reported referred to ways and means
Mar 25, 2019	print number 6596a
Mar 25, 2019	amend and recommit to governmental employees
Mar 12, 2019	referred to governmental employees

Votes

- May 29, 2019 - Floor Vote
  S4488
  
  60
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 29, 2019
      
      aye (60)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Antonacci
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Jacobs
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      excused (2)
      
      Funke
      
      LaValle
  May 14, 2019 - Civil Service And Pensions Committee Vote
  S4488
  
  6
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Civil Service And Pensions Committee Vote: May 14, 2019
      
      aye (6)
      
      Addabbo Jr.
      
      Gounardes
      
      Jackson
      
      Kaminsky
      
      Lanza
      
      Savino
      
      excused (1)
      
      Funke

Bill Amendments

Original

A (Active)

2019-A6596 - Details

See Senate Version of this Bill:: S4488
Law Section:: New York City Administrative Code
Laws Affected:: Amd §13-638.2, NYC Ad Cd

2019-A6596 - Summary

Relates to the rate of interest used in the actuarial valuation of liabilities for the purpose of calculating contributions to the New York city employees' retirement system, the New York city teachers' retirement system, the police pension fund, the fire department pension fund and the board of education retirement system of such city by public employers and other obligors required to make employer contributions to such retirement systems, the crediting of special interest and additional interest to members of such retirement systems, and the allowance of supplementary interest on the funds of such retirement systems.

2019-A6596 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6596
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 12, 2019
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT  to  amend  the  administrative code of the city of New York, in
   relation to the rate of interest used in the  actuarial  valuation  of
   liabilities  for  the  purpose of calculating contributions to the New
   York city employees' retirement system, the New  York  city  teachers'
   retirement  system,  the police pension fund, subchapter two, the fire
   department pension fund, subchapter two and  the  board  of  education
   retirement  system of such city by public employers and other obligors
   required to make employer contributions to  such  retirement  systems,
   the  crediting  of  special interest and additional interest and addi-
   tional interest to members of such retirement systems, and the  allow-
   ance of supplementary interest on the funds of such retirement systems
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 2 of subdivision b of  section  13-638.2  of  the
 administrative  code  of the city of New York, as amended by chapter 100
 of the laws of 2018, is amended to read as follows:
   (2) With respect to each retirement  system,  such  rate  of  interest
 shall be as hereinafter set forth in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS             7%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 NYCTRS             7%                           July 1, 2011 to

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

                                                            LBD10353-03-9

 A. 6596                             2
 
                                                 June 30, [2019] 2021
 PPF                7%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 FPF                7%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 BERS               7%                           July 1, 2011 to
                                                 June 30, [2019] 2021

   §  2. Paragraph 2 of subdivision f of section 13-638.2 of the adminis-
 trative code of the city of New York, as amended by chapter 100  of  the
 laws of 2018, is amended to read as follows:
   (2)  Such  special  interest shall be allowed at the rates and for the
 periods set forth below in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 NYCTRS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 PPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 FPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 BERS                1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 
   § 3. Paragraph 2 of subdivision g of section 13-638.2 of the  adminis-
 trative  code  of the city of New York, as amended by chapter 100 of the
 laws of 2018, is amended to read as follows:
   (2) Such additional interest shall be included at the  rates  and  for
 the periods set forth below in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 NYCTRS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 PPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 FPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 BERS                1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021

 A. 6596                             3
 
   §  4. Paragraph 2 of subdivision i of section 13-638.2 of the adminis-
 trative code of the city of New York, as amended by chapter 100  of  the
 laws of 2018, is amended to read as follows:
   (2)  Such supplementary interest shall be allowed at the rates and for
 the periods set forth below in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS             0%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 NYCTRS             0%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 PPF                0%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 FPF                0%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 BERS               0%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 
   § 5. This act shall take effect July 1, 2019, except that if it  shall
 have  become  a  law subsequent to such date, this act shall take effect
 immediately and be deemed to have been in full force and effect  on  and
 after July 1, 2019.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL:  The  enactment  of  this proposed legislation (the
 Interest Rate Extender Legislation) would amend Administrative  Code  of
 the City of New York (ACCNY) Section 13-638.2, as amended by Chapter 100
 of  the  Laws  of  2018,  to continue for Fiscal Years 2020 and 2021 the
 following rates of interest that expire on July 1,  2019  for  the  five
 actuarially-funded  New  York  City Retirement Systems and Pension Funds
 (NYCRS):
   * The 8.25% per annum rate used to credit interest on Tier 1 and  Tier
 2  member  account  balances (the sum of the 7.00% regular interest rate
 and the 1.25% special interest rate) and Increased-Take-Home-Pay  (ITHP)
 Reserves (the sum of the 7.00% regular interest rate and the 1.25% addi-
 tional interest rate), and
   * The 7.00% per annum Actuarial Interest Rate (AIR) assumption used to
 compute employer contributions.
   Effective Date: July 1, 2019.
   FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: The continuation for
 Fiscal  Years  2020  and  2021 of the same 8.25% per annum rate that was
 used for Fiscal Year 2019 to credit interest on Tier 1 and Tier 2 member
 contributions and ITHP Reserves would not change the amount of timing of
 expected employer contributions.
   The continuation of the AIR assumption of 7.00%  per  annum  that  was
 used  to  determine  preliminary employer contributions to the NYCRS for
 Fiscal Year 2019 would not change  the  expected  amount  or  timing  of
 employer contributions.
   OTHER  COSTS:  Enactment  of  this  proposed  legislation would not be
 expected to produce any additional costs.

 A. 6596                             4
 
   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  assumption,  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 2019-01 dated March 8,
 2019 was prepared by the Chief Actuary for the New York City  Retirement
 Systems  and  Pension  Funds.    This  estimate is intended for use only
 during the 2019 Legislative Session.

2019-A6596A (ACTIVE) - Details

See Senate Version of this Bill:: S4488
Law Section:: New York City Administrative Code
Laws Affected:: Amd §13-638.2, NYC Ad Cd

2019-A6596A (ACTIVE) - Summary

2019-A6596A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6596--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 12, 2019
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on  Governmental  Employees  --  committee  discharged,  bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  the  rate of interest used in the actuarial valuation of
   liabilities for the purpose of calculating contributions  to  the  New
   York  city  employees'  retirement system, the New York city teachers'
   retirement system, the police pension fund, subchapter two,  the  fire
   department  pension  fund,  subchapter  two and the board of education
   retirement system of such city by public employers and other  obligors
   required  to  make  employer contributions to such retirement systems,
   the crediting of special interest and additional  interest  and  addi-
   tional  interest to members of such retirement systems, and the allow-
   ance of supplementary interest on the funds of such retirement systems
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  2  of subdivision b of section 13-638.2 of the
 administrative code of the city of New York, as amended by  chapter  100
 of the laws of 2018, is amended to read as follows:
   (2)  With  respect  to  each  retirement system, such rate of interest
 shall be as hereinafter set forth in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS             7%                           July 1, 2011 to
                                                 June 30, [2019] 2021

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

                                                            LBD10353-05-9

 A. 6596--A                          2
 
 NYCTRS             7%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 PPF                7%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 FPF                7%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 BERS               7%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 
   §  2. Paragraph 2 of subdivision f of section 13-638.2 of the adminis-
 trative code of the city of New York, as amended by chapter 100  of  the
 laws of 2018, is amended to read as follows:
   (2)  Such  special  interest shall be allowed at the rates and for the
 periods set forth below in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 NYCTRS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 PPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 FPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 BERS                1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 
   § 3. Paragraph 2 of subdivision g of section 13-638.2 of the  adminis-
 trative  code  of the city of New York, as amended by chapter 100 of the
 laws of 2018, is amended to read as follows:
   (2) Such additional interest shall be included at the  rates  and  for
 the periods set forth below in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 NYCTRS              1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 PPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 FPF                 1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021
 BERS                1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021

 A. 6596--A                          3
 
   §  4. Paragraph 2 of subdivision i of section 13-638.2 of the adminis-
 trative code of the city of New York, as amended by chapter 100  of  the
 laws of 2018, is amended to read as follows:
   (2)  Such supplementary interest shall be allowed at the rates and for
 the periods set forth below in this paragraph:
 
                                                 First day and
                                                 last day of
                    Rate of interest             fiscal year or
                    per centum per               series of fiscal
 Retirement         annum, compounded            years for which
 System             annually                     rate is effective
 ________________________________________________________________________
 NYCERS             0%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 NYCTRS             0%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 PPF                0%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 FPF                0%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 BERS               0%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 
   § 5. This act shall take effect July 1, 2019, except that if it  shall
 have  become  a  law subsequent to such date, this act shall take effect
 immediately and be deemed to have been in full force and effect  on  and
 after July 1, 2019.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL:  The  enactment  of  this proposed legislation (the
 Interest Rate Extender Legislation) would amend Administrative  Code  of
 the City of New York (ACCNY) Section 13-638.2, as amended by Chapter 100
 of  the  Laws  of  2018,  to continue for Fiscal Years 2020 and 2021 the
 following rates of interest that expire on July 1,  2019  for  the  five
 actuarially-funded  New  York  City Retirement Systems and Pension Funds
 (NYCRS):
   * The 8.25% per annum rate used to credit interest on Tier 1 and  Tier
 2  member  account  balances (the sum of the 7.00% regular interest rate
 and the 1.25% special interest rate) and Increased-Take-Home-Pay  (ITHP)
 Reserves (the sum of the 7.00% regular interest rate and the 1.25% addi-
 tional interest rate), and
   * The 7.00% per annum Actuarial Interest Rate (AIR) assumption used to
 compute employer contributions.
   Effective Date: July 1, 2019.
   FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: The continuation for
 Fiscal  Years  2020  and  2021 of the same 8.25% per annum rate that was
 used for Fiscal Year 2019 to credit interest on Tier 1 and Tier 2 member
 contributions and ITHP Reserves would not change the amount or timing of
 expected employer contributions.
   The continuation of the AIR assumption of 7.00%  per  annum  that  was
 used  to  determine  preliminary employer contributions to the NYCRS for
 Fiscal Year 2019 would not change  the  expected  amount  or  timing  of
 employer contributions.
   OTHER  COSTS:  Enactment  of  this  proposed  legislation would not be
 expected to produce any additional costs.

 A. 6596--A                          4
 
   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 2019-01 dated March 8,
 2019 was prepared by the Chief Actuary for the New York City  Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2019 Legislative Session.

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