NY State Senate Bill 2019-S4488A

Senate Bill S4488A

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 - 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
May 29, 2019	referred to ways and means delivered to assembly passed senate
May 20, 2019	advanced to third reading
May 15, 2019	2nd report cal.
May 14, 2019	1st report cal.750
Mar 20, 2019	print number 4488a
Mar 20, 2019	amend and recommit to civil service and pensions
Mar 13, 2019	referred to civil service and pensions

Votes

- May 29, 2019 - Floor Vote
  S4488A
  
  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
  S4488A
  
  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-S4488 - Details

See Assembly Version of this Bill:: A6596
Law Section:: New York City Administrative Code
Laws Affected:: Amd §13-638.2, NYC Ad Cd

2019-S4488 - 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-S4488 - Sponsor Memo

                                
 
BILL NUMBER: S4488

SPONSOR: GOUNARDES
 
TITLE OF BILL:  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 teach-
ers' 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 additional
interest to members of such retirement systems, and the allowance of
supplementary interest on the funds of such retirement systems

 
SUMMARY OF PROVISIONS:

This bill would extend for two fiscal years, until June 30, 2021, the
current 7% per annum statutory rate of interest used by the Chief Actu-
ary ("Actuary") for the New York City Employees' Retirement System,
Teachers' Retirement System, Board of Education Retirement System,
Police Pension Fund and Fire Department Pension Fund ("City retirement

systems") in valuing retirement system liabilities for the purpose of
computing the amount of employer contributions to those systems. The
bill also would extend for that same period of time the current rates of
special interest, additional interest and supplementary interest, which,
in effect govern the amount of interest to be paid into certain constit-
uent funds of the City retirement systems, and the amount of interest to
be credited on accumulated member contributions and increased-take-home-
pay reserves of Tier 1 and 2 members of those retirement systems. The
current valuation rate of interest and the rate of supplementary inter-
est were originally enacted by Chapter 3 of the Laws of 2013. The
current rates of special and additional interest were continued and
recodified by Chapter 878 of the Laws of 1990 and have remained the same
since. The current one-year period ending on June 30, 20 19, for all
these rates of interest was enacted by Chapter 100 of the Laws of 2018.

 
REASONS FOR SUPPORT:

The current rates of interest are effective for the period ending June
30, 2019, and expire as of July 1, 2019.

The City of New York supports the enactment of this bill, which would
provide for a two-year extension of the current valuation rate of inter-
est and the accompanying rates of special, additional and supplementary
interest. The Actuary has stated that the proposed two-year extension of
these rates to June 30, 2021 is consistent with the current preliminary
recommendations regarding these rates from its actuarial auditor,
retained pursuant to New York City Charter § 96. Seeking a two-year
extension is preferable to a longer extension at this time because it
will enable the Actuary to further examine the final experience analysis
of its auditor and expected market conditions. After the expiration of
the current rates, later in calendar year 2019.

It should be noted that the Legislature has enacted similar short-term
extensions of such interest rates for the City retirement systems on
numerous previous occasions. See, Chapter 878 of the Laws of 1990, Chap-
ter 642 of the Laws of 1995, Chapter 133 of the Laws of 2004, Chapter
133 of the Laws of 2005, Chapter 211 of the Laws of 2009, Chapter 265 of
the Laws of 2010, Chapter 180 of the Laws of 2011, Chapter 83 of the
Laws of 2016. Chapter 71 of the Laws of 2017 and Chapter 100 of the Laws
of 2018.

As this bill would continue the existing valuation rate of interest and
the existing rates of special, additional, and supplementary interest,
its enactment would not change the amount or timing of expected employer
contributions.

Accordingly, the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.

 
PRIOR LEGISLATIVE HISTORY:

2018: Chapter 100
2017: Chapter 71
2016: Chapter 83
2011: Chapter 180
2010: Chapter 265
2009: Chapter 211
2005: Chapter 133
2004: Chapter 133
1995: Chapter 642
1990: Chapter 878

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
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 imme-
diately and be deemed to have been in full force and effect on and after
July 1, 2019.

2019-S4488 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4488
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 13, 2019
                                ___________
 
 Introduced  by Sen. GOUNARDES -- (at request of the NYC Actuary) -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Civil Service and Pensions
 
 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.

                                                            LBD10353-02-9

 S. 4488                             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

 S. 4488                             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 System 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.

 S. 4488                             4
 
   RISK AND UNCERTAINTY: The cost 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 actuarial 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.
   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-S4488A (ACTIVE) - Details

See Assembly Version of this Bill:: A6596
Law Section:: New York City Administrative Code
Laws Affected:: Amd §13-638.2, NYC Ad Cd

2019-S4488A (ACTIVE) - Summary

2019-S4488A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4488A

SPONSOR: GOUNARDES
 
TITLE OF BILL:  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 teach-
ers' 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 additional
interest to members of such retirement systems, and the allowance of
supplementary interest on the funds of such retirement systems

 
SUMMARY OF PROVISIONS:

This bill would extend for two fiscal years, until June 30, 2021, the
current 7% per annum statutory rate of interest used by the Chief Actu-
ary ("Actuary") for the New York City Employees' Retirement System,
Teachers' Retirement System, Board of Education Retirement System,
Police Pension Fund and Fire Department Pension Fund ("City retirement

systems") in valuing retirement system liabilities for the purpose of
computing the amount of employer contributions to those systems. The
bill also would extend for that same period of time the current rates of
special interest, additional interest and supplementary interest, which,
in effect govern the amount of interest to be paid into certain constit-
uent funds of the City retirement systems, and the amount of interest to
be credited on accumulated member contributions and increased-take-home-
pay reserves of Tier 1 and 2 members of those retirement systems. The
current valuation rate of interest and the rate of supplementary inter-
est were originally enacted by Chapter 3 of the Laws of 2013. The
current rates of special and additional interest were continued and
recodified by Chapter 878 of the Laws of 1990 and have remained the same
since. The current one-year period ending on June 30, 20 19, for all
these rates of interest was enacted by Chapter 100 of the Laws of 2018.

 
REASONS FOR SUPPORT:

The current rates of interest are effective for the period ending June
30, 2019, and expire as of July 1, 2019.

The City of New York supports the enactment of this bill, which would
provide for a two-year extension of the current valuation rate of inter-
est and the accompanying rates of special, additional and supplementary
interest. The Actuary has stated that the proposed two-year extension of
these rates to June 30, 2021 is consistent with the current preliminary
recommendations regarding these rates from its actuarial auditor,
retained pursuant to New York City Charter § 96.  Seeking a two-year
extension is preferable to a longer extension at this time because it
will enable the Actuary to further examine the final experience analysis
of its auditor and expected market conditions. After the expiration of
the current rates, later in calendar year 2019.

It should be noted that the Legislature has enacted similar short-term
extensions of such interest rates for the City retirement systems on
numerous previous occasions. See, Chapter 878 of the Laws of 1990, Chap-
ter 642 of the Laws of 1995, Chapter 133 of the Laws of 2004, Chapter
133 of the Laws of 2005, Chapter 211 of the Laws of 2009, Chapter 265 of
the Laws of 2010, Chapter 180 of the Laws of 2011, Chapter 83 of the
Laws of 2016. Chapter 71 of the Laws of 2017 and Chapter 100 of the Laws
of 2018.

As this bill would continue the existing valuation rate of interest and
the existing rates of special, additional, and supplementary interest,
its enactment would not change the amount or timing of expected employer
contributions.

Accordingly, the Mayor urges the earliest possible favorable consider-
ation of this proposal by the Legislature.

 
PRIOR LEGISLATIVE HISTORY:

2018: Chapter 100
2017: Chapter 71
2016: Chapter 83
2011: Chapter 180
2010: Chapter 265
2009: Chapter 211
2005: Chapter 133
2004: Chapter 133
1995: Chapter 642
1990: Chapter 878

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
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 imme-
diately and be deemed to have been in full force and effect on and after
July 1, 2019.

2019-S4488A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4488--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 13, 2019
                                ___________
 
 Introduced  by Sen. GOUNARDES -- (at request of the NYC Actuary) -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on Civil Service and Pensions -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10353-04-9

 S. 4488--A                          2
 
 ________________________________________________________________________
 NYCERS             7%                           July 1, 2011 to
                                                 June 30, [2019] 2021
 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

 S. 4488--A                          3
 
                                                 June 30, [2019] 2021
 BERS                1 1/4%                      July 1, 2011 to
                                                 June 30, [2019] 2021

   §  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

 S. 4488--A                          4
 
 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.
   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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