S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3649
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 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
   allowing retired public employees  who  participated  in  World  Trade
   Center  rescue,  recovery  or  cleanup  operations  to seek subsequent
   employment with the state or a municipal corporation  without  diminu-
   tion of retirement benefits
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 211 of the retirement and social  security  law  is
 amended by adding a new subdivision 9 to read as follows:
   9.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
 ANY PERSON WHO, PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION, FILED A
 NOTICE OF PARTICIPATION IN WORLD TRADE CENTER RESCUE, RECOVERY OR CLEAN-
 UP OPERATIONS, AS DEFINED IN  SECTION  TWO  OF  THIS  CHAPTER,  WHO  HAS
 RETIRED  FROM  PUBLIC  EMPLOYMENT,  IS  ENTITLED TO RECEIVE A RETIREMENT
 ALLOWANCE FROM A PUBLIC RETIREMENT SYSTEM AND SEEKS  SUBSEQUENT  EMPLOY-
 MENT  WITH  THE  STATE OR A MUNICIPAL CORPORATION SHALL AUTOMATICALLY BE
 DEEMED TO HAVE BEEN GRANTED A WAIVER OF THE RETIREMENT EARNINGS  LIMITA-
 TION  ESTABLISHED  BY THIS SECTION AND MAY BE EMPLOYED BY THE STATE OR A
 MUNICIPAL CORPORATION WITHOUT LOSS, SUSPENSION OR DIMINUTION OF  HIS  OR
 HER  RETIREMENT  ALLOWANCE;  PROVIDED,  HOWEVER,  THE PROVISIONS OF THIS
 SUBDIVISION SHALL NOT APPLY TO A PERSON WHO RETIRED AS AN ACCIDENTAL  OR
 ORDINARY DISABILITY RETIREMENT.
   §  2. Section 212 of the retirement and social security law is amended
 by adding a new subdivision 4 to read as follows:
   4. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF  THIS
 SECTION,  THE  EARNING LIMITATIONS ESTABLISHED BY THIS SECTION SHALL NOT
 APPLY TO ANY PERSON WHO, PRIOR TO THE EFFECTIVE DATE  OF  THIS  SUBDIVI-
 SION,  FILED  A  NOTICE  OF  PARTICIPATION IN WORLD TRADE CENTER RESCUE,
 RECOVERY OR CLEANUP OPERATIONS, AS DEFINED IN SECTION TWO OF THIS  CHAP-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07545-04-9

 S. 3649                             2
 
 TER, HAS RETIRED FROM PUBLIC EMPLOYMENT, RECEIVES A RETIREMENT ALLOWANCE
 FROM  SUCH PUBLIC RETIREMENT SYSTEM AND SEEKS SUBSEQUENT EMPLOYMENT WITH
 THE STATE OR A MUNICIPAL CORPORATION; PROVIDED, HOWEVER, THE  PROVISIONS
 OF  THIS SUBDIVISION SHALL NOT APPLY TO A PERSON WHO RETIRED AS AN ACCI-
 DENTAL OR ORDINARY DISABILITY RETIREMENT.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would add Subdivision 9 of Section 211 and Subdivision 4  of
 Section 212 of the Retirement and Social Security Law to waive the earn-
 ings  limitation  for retired members who filed notice of having partic-
 ipated in the World Trade Center rescue, recover or  cleanup  operations
 prior  to the effective date of these subdivisions. Such members achiev-
 ing subsequent employment with the  state  or  a  municipal  corporation
 would  be  able to retire without diminution of their benefits. However,
 provisions of these subdivisions would not apply to members retired  for
 accidental or ordinary disability. This act shall take effect immediate-
 ly.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System is estimated to be negligible if  this  bill
 is enacted.
   Member  data  is  from  the  System's  most recent actuarial valuation
 files, consisting of data provided by the employers  to  the  Retirement
 System.   Data distributions and statistics can be found in the System's
 Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
 reported  in the System's financial statements, and can also be found in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report.
   The source of this estimate is Fiscal Note 2019-14 dated  February  4,
 2019  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2019 Legislative Session.
 I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
 Retirement  System.  I  am a member of the American Academy of Actuaries
 and I meet the Qualification Standards of the American Academy of  Actu-
 aries to render the actuarial opinion contained herein.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3649--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 2019
                                ___________
 
 Introduced by Sens. GOUNARDES, KAMINSKY -- read twice and ordered print-
   ed, and when printed to be committed to the Committee on Civil Service
   and  Pensions  -- reported favorably from said committee and committed
   to the Committee on Finance --  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
   allowing retired public employees  who  participated  in  World  Trade
   Center  rescue,  recovery  or  cleanup  operations  to seek subsequent
   employment with the state or a municipal corporation  without  diminu-
   tion of retirement benefits
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 211 of the retirement and social  security  law  is
 amended by adding a new subdivision 9 to read as follows:
   9.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
 ANY PERSON WHO, PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVISION, FILED A
 NOTICE OF PARTICIPATION IN WORLD TRADE CENTER RESCUE, RECOVERY OR CLEAN-
 UP OPERATIONS, AS DEFINED IN  SECTION  TWO  OF  THIS  CHAPTER,  WHO  HAS
 RETIRED  FROM  PUBLIC  EMPLOYMENT,  IS  ENTITLED TO RECEIVE A RETIREMENT
 ALLOWANCE FROM A PUBLIC RETIREMENT SYSTEM AND SEEKS  SUBSEQUENT  EMPLOY-
 MENT  WITH  THE  STATE OR A MUNICIPAL CORPORATION SHALL AUTOMATICALLY BE
 DEEMED TO HAVE BEEN GRANTED A WAIVER OF THE RETIREMENT EARNINGS  LIMITA-
 TION  ESTABLISHED  BY THIS SECTION AND MAY BE EMPLOYED BY THE STATE OR A
 MUNICIPAL CORPORATION WITHOUT LOSS, SUSPENSION OR DIMINUTION OF  HIS  OR
 HER  RETIREMENT  ALLOWANCE;  PROVIDED,  HOWEVER,  THE PROVISIONS OF THIS
 SUBDIVISION SHALL NOT APPLY TO A PERSON WHO RETIRED AS AN ACCIDENTAL  OR
 ORDINARY DISABILITY RETIREMENT.
   §  2. Section 212 of the retirement and social security law is amended
 by adding a new subdivision 4 to read as follows:
   4. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF  THIS
 SECTION,  THE  EARNING LIMITATIONS ESTABLISHED BY THIS SECTION SHALL NOT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07545-10-9

 S. 3649--A                          2
 
 APPLY TO ANY PERSON WHO, PRIOR TO THE EFFECTIVE DATE  OF  THIS  SUBDIVI-
 SION,  FILED  A  NOTICE  OF  PARTICIPATION IN WORLD TRADE CENTER RESCUE,
 RECOVERY OR CLEANUP OPERATIONS, AS DEFINED IN SECTION TWO OF THIS  CHAP-
 TER, HAS RETIRED FROM PUBLIC EMPLOYMENT, RECEIVES A RETIREMENT ALLOWANCE
 FROM  SUCH PUBLIC RETIREMENT SYSTEM AND SEEKS SUBSEQUENT EMPLOYMENT WITH
 THE STATE OR A MUNICIPAL CORPORATION; PROVIDED, HOWEVER, THE  PROVISIONS
 OF  THIS SUBDIVISION SHALL NOT APPLY TO A PERSON WHO RETIRED AS AN ACCI-
 DENTAL OR ORDINARY DISABILITY RETIREMENT.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would add Subdivision 9 of Section 211 and Subdivision 4  of
 Section 212 of the Retirement and Social Security Law to waive the earn-
 ings  limitation  for retired members who filed notice of having partic-
 ipated in the World Trade Center rescue, recover or  cleanup  operations
 prior  to the effective date of these subdivisions. Such members achiev-
 ing subsequent employment with the  state  or  a  municipal  corporation
 would  be  able to retire without diminution of their benefits. However,
 provisions of these subdivisions would not apply to members retired  for
 accidental or ordinary disability. This act shall take effect immediate-
 ly.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System is estimated to be negligible if  this  bill
 is enacted.
   Member  data  is  from  the  System's  most recent actuarial valuation
 files, consisting of data provided by the employers  to  the  Retirement
 System.   Data distributions and statistics can be found in the System's
 Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
 reported  in the System's financial statements, and can also be found in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report.
   The source of this estimate is Fiscal Note 2019-14 dated  February  4,
 2019  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2019 Legislative Session.
 I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
 Retirement  System.  I  am a member of the American Academy of Actuaries
 and I meet the Qualification Standards of the American Academy of  Actu-
 aries to render the actuarial opinion contained herein.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF BILL: This proposed legislation would amend Retirement and
 Social Security Law (RSSL) Sections 211 and 212 to permit service  reti-
 rees of any public retirement system in New York State who filed a World
 Trade  Center (WTC) Notice of Participation (NOP) prior to the effective
 date of the bill to become reemployed with a public employer  without  a
 post-retirement reduction or suspension of pension benefits by way of an
 automatic post-retirement earnings waiver.
   EFFECTIVE DATE: UPON ENACTMENT.
   IMPACT  ON  PENSION  PAYMENTS:  Currently,  retirees of public pension
 funds and retirement systems who return to  public  service  within  New
 York, and do not rejoin the applicable public fund or system, are gener-
 ally  subject to various post-retirement earnings restrictions. New York
 City Retirement Systems (NYCRS) retirees are  subject  to,  among  other
 things,  post-retirement  earnings  restrictions as provided in New York
 City Charter Section 1117 and RSSL Sections 211 and 212.
   Those who elect to be covered under the provisions of RSSL Section 212
 are permitted to earn post-retirement earnings from a public employer in
 an amount not exceeding a specific dollar limit in  each  calendar  year

 S. 3649--A                          3
 
 without  loss, suspension, or diminution of their retirement allowances.
 Once this dollar limit is reached, the retiree's retirement allowance is
 suspended for the remainder of that calendar year.  Generally, there are
 no earnings limitations in, or following, the calendar year in which the
 retiree  attains age 65. Currently, the RSSL Section 212 post-retirement
 earnings limitation in effect for calendar year 2007 and each year ther-
 eafter is $30,000.
   When certain exigent criteria are met and approval  is  given  to  the
 employer  by  a  specially  designated entity, a waiver pursuant to RSSL
 Section 211 may be granted, for a two-year period.  Under  RSSL  Section
 211, there is no salary restriction for reemployment with a public enti-
 ty that is not the former employer.
   Under  the proposed legislation, if enacted, the RSSL Sections 211 and
 212 post-retirement public service earnings waivers  would  be  automat-
 ically  granted  and  NYCRS  retirees  who  filed a WTC NOP prior to the
 effective date of the bill would not be subject to  any  post-retirement
 earnings limitation.
   For illustrative purposes only, the table below presents the estimated
 additional  retirement  allowances  paid if RSSL Section 211 waivers are
 granted in lieu of applying RSSL Section  212  post-retirement  earnings
 limitation  for  various  sample  combinations of post-retirement annual
 earnings and annual retirement allowance amounts.
 
   Annual Retirement    Annual Post-Retirement Earnings in Calendar Year
      Allowance             $40,000          $50,000         $60,000
       $30,000               $7,500          $12,000         $15,000
       $40,000              $10,000          $16,000         $20,000
       $50,000              $12,500          $20,000         $25,000
       $60,000              $15,000          $24,000         $30,000
       $70,000              $17,500          $28,000         $35,000
 
   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.  However,
 since  changes  in  the  applicable  retirement allowances paid to NYCRS
 retirees under this proposed legislation are not known in  advance,  the
 increase in pension payments due to this legislation would be treated as
 an  actuarial  loss.  These  actuarial  losses would be amortized over a
 15-year period (14 payments under the One-Year Lag  Methodology  (OLYM))
 using level dollar payments.
   The number of NYCRS retirees who could potentially be impacted by this
 proposed  legislation cannot be readily determined. However, the Actuary
 believes the increase in pension payments, if the  proposed  legislation
 is enacted, would be approximately $1.5 million to $2.0 million per year
 for each 100 NYCRS service retirees. This would result in an increase in
 annual  employer  contributions  of $180,000 to $240,000 compounded each
 year (e.g. $240,000 in the first year,  $480,000  in  the  second  year,
 $720,000  in  the  third  year,  etc.) for 14 years and then will remain
 level thereafter, assuming 100 such retirees  are  employed  each  year.
 Future years' costs would depend on factors such as, but not limited to,
 the number of retirees that benefit under the legislation and the amount
 of their earnings and retirement allowances.
   OTHER COSTS: Not measures in this Fiscal Note are the following:

 S. 3649--A                          4
 
   *  The initial, additional administrative costs of NYCRS and other New
 York City agencies to implement the proposed legislation.
   *  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 annual employer contributions would be
 reflected for the first time in the June 30, 2020  actuarial  valuations
 of  the  NYCRS.  In  accordance with the OYLM used to determine employer
 contributions, the increase in employer  contributions  would  first  be
 reflected in Fiscal Year 2022.
   CENSUS  DATA:  For  purposes  of  analyzing the impact of the proposed
 legislation, illustrative examples with various  salary  and  retirement
 allowance amounts have been provided above.
   ACTUARIAL  ASSUMPTIONS AND METHODS: The changes in the annual employer
 contributions presented herein have been calculated based on the actuar-
 ial assumptions and methods in effect for the June 30, 2018 (Lag)  actu-
 arial  valuations  used  to  determine  the Preliminary Fiscal Year 2020
 employer contributions of the NYCRS.
   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  2019-27  dated  May  30,
 2019  was prepared by the Chief Actuary for the New York City Retirement
 Systems and Pension Funds, Sherry S. Chan. This estimate is intended for
 use only during the 2019 Legislative Session.