Senate Bill S5902D

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5902
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 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, the education
   law and the administrative code of the city of New York,  in  relation
   to providing cost-of-living adjustments

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision a of section 78-a of the retirement and  social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A  cost-of-living  adjustment shall be payable on the basis provided for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE and have been retired for five years;  (ii)  [all  pensioners
 who  have  attained  age fifty-five and have been retired for ten years;
 (iii)] all disability pensioners regardless of age who have been retired
 for five years; and [(iv)] (III) all recipients of an  accidental  death
 benefit  regardless of age who have been receiving such benefit for five
 years.
   § 2. Subdivision a of section 378-a of the retirement and social secu-
 rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
 read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A  cost-of-living  adjustment shall be payable on the basis provided for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE and have been retired for five years; AND (ii) [all  pension-
 ers  who  have  attained  age  fifty-five  and have been retired for ten
 years; and (iii)] all disability pensioners regardless of age  who  have
 been retired for five years.
   §  3. Subdivision a of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07921-01-9

 S. 5902                             2
 
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A cost-of-living adjustment shall be payable on the basis  provided  for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE  and  have  been retired for five years; (ii) [all pensioners
 who  have  attained  age fifty-five and have been retired for ten years;
 (iii)] all disability pensioners regardless of age who have been retired
 for five years; and [(iv)] (III) all recipients of an  accidental  death
 benefit  regardless of age who have been receiving such benefit for five
 years.
   § 4. Subdivision a of section 13-696 of the administrative code of the
 city of New York, as amended by chapter 288 of  the  laws  of  2001,  is
 amended to read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A  cost-of-living  adjustment shall be payable to retired members of the
 New York city employees' retirement system, the New York city  teachers'
 retirement  system,  the New York city police pension fund, the New York
 city fire department pension fund, the New York city board of  education
 retirement  system  or  the relief and pension fund of the department of
 street cleaning provided for in subchapter one of this  chapter  on  the
 basis  provided for in this section to: (i) all retired members who have
 attained age [sixty-two] FIFTY-FIVE  and  have  been  retired  for  five
 years;  (ii)  [all  retired members who have attained age fifty-five and
 have been retired for ten years; (iii)]  all  members  who  retired  for
 disability  regardless  of age who have been retired for five years; and
 [(iv)] (III) all recipients of an accidental death benefit regardless of
 age who have been receiving such benefit for five years.
   § 5. This act shall take effect immediately.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5902--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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 committee
 
 AN ACT to amend the retirement and social security  law,  the  education
   law  and  the administrative code of the city of New York, in relation
   to providing cost-of-living adjustments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision a of section 78-a of the retirement and social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A cost-of-living adjustment shall be payable on the basis  provided  for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE  and  have  been retired for five years; (ii) [all pensioners
 who have attained age fifty-five and have been retired  for  ten  years;
 (iii)] all disability pensioners regardless of age who have been retired
 for  five  years; and [(iv)] (III) all recipients of an accidental death
 benefit regardless of age who have been receiving such benefit for  five
 years.
   § 2. Subdivision a of section 378-a of the retirement and social secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A cost-of-living adjustment shall be payable on the basis  provided  for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE  and have been retired for five years; AND (ii) [all pension-
 ers who have attained age fifty-five  and  have  been  retired  for  ten
 years;  and  (iii)] all disability pensioners regardless of age who have
 been retired for five years.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07921-02-9

 S. 5902--A                          2
 
   § 3. Subdivision a of section 532-a of the education law, as added  by
 chapter 125 of the laws of 2000, is amended to read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A  cost-of-living  adjustment shall be payable on the basis provided for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE and have been retired for five years;  (ii)  [all  pensioners
 who  have  attained  age fifty-five and have been retired for ten years;
 (iii)] all disability pensioners regardless of age who have been retired
 for five years; and [(iv)] (III) all recipients of an  accidental  death
 benefit  regardless of age who have been receiving such benefit for five
 years.
   § 4. Subdivision a of section 13-696 of the administrative code of the
 city of New York, as amended by chapter 288 of  the  laws  of  2001,  is
 amended to read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A  cost-of-living  adjustment shall be payable to retired members of the
 New York city employees' retirement system, the New York city  teachers'
 retirement  system,  the New York city police pension fund, the New York
 city fire department pension fund, the New York city board of  education
 retirement  system  or  the relief and pension fund of the department of
 street cleaning provided for in subchapter one of this  chapter  on  the
 basis  provided for in this section to: (i) all retired members who have
 attained age [sixty-two] FIFTY-FIVE  and  have  been  retired  for  five
 years;  (ii)  [all  retired members who have attained age fifty-five and
 have been retired for ten years; (iii)]  all  members  who  retired  for
 disability  regardless  of age who have been retired for five years; and
 [(iv)] (III) all recipients of an accidental death benefit regardless of
 age who have been receiving such benefit for five years.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide an increase in the  defined  benefit  cost-of-
 living  adjustment (COLA) for New York public retirement systems. Start-
 ing with a payment in September 2019, COLA will be payable to pensioners
 who have attained age fifty-five and been retired at least five years.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System,  pursuant to Section 25 of the Retirement and Social
 Security Law, the increased costs would be borne entirely by  the  State
 of  New  York  and would require an itemized appropriation sufficient to
 pay the cost of the provision. If this bill were enacted,  the  increase
 in the present value of benefits would be approximately $406 million.
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (PFRS), the increased costs would  be  shared  by
 the  State  of  New York and the participating employers in the PFRS. If
 this bill were enacted, the increase in the present  value  of  benefits
 would  be approximately $78 million. The estimated first year cost would
 be approximately $1.9 million to the State of New York and approximately
 $7.5 million to the participating employers in the PFRS.
   Summary of relevant resources:
   The membership data used in  measuring  the  impact  of  the  proposed
 change  was  the same as that used in the March 31, 2018 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2018
 Report  of  the  Actuary  and  the  2018  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in the  2015,
 2016,  2017  and  2018  Annual  Report  to  the Comptroller on Actuarial

 S. 5902--A                          3
 
 Assumptions, and the Codes, Rules and Regulations of the  State  of  New
 York: Audit and Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2018
 New  York  State  and  Local  Retirement System Financial Statements and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This fiscal note does not constitute a legal opinion on the  viability
 of  the  proposed change nor is it intended to serve as a substitute for
 the professional judgment of an attorney.
   This estimate, dated May 16, 2019, and intended for  use  only  during
 the  2019  Legislative Session, is Fiscal Note No. 2019-120, prepared by
 the Actuary for the New York State and Local Retirement System.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5902--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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  committee  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the retirement and social security  law,  the  education
   law  and  the administrative code of the city of New York, in relation
   to providing cost-of-living adjustments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision a of section 78-a of the retirement and social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A cost-of-living adjustment shall be payable on the basis  provided  for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE  and  have  been retired for five years; (ii) [all pensioners
 who have attained age fifty-five and have been retired  for  ten  years;
 (iii)] all disability pensioners regardless of age who have been retired
 for  five  years; and [(iv)] (III) all recipients of an accidental death
 benefit regardless of age who have been receiving such benefit for  five
 years.
   § 2. Subdivision a of section 378-a of the retirement and social secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A cost-of-living adjustment shall be payable on the basis  provided  for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE  and have been retired for five years; AND (ii) [all pension-
 ers who have attained age fifty-five  and  have  been  retired  for  ten

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

                                                            LBD07921-03-9

 S. 5902--B                          2

 years;  and  (iii)] all disability pensioners regardless of age who have
 been retired for five years.
   §  3. Subdivision a of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A cost-of-living adjustment shall be payable on the basis  provided  for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE  and  have  been retired for five years; (ii) [all pensioners
 who have attained age fifty-five and have been retired  for  ten  years;
 (iii)] all disability pensioners regardless of age who have been retired
 for  five  years; and [(iv)] (III) all recipients of an accidental death
 benefit regardless of age who have been receiving such benefit for  five
 years.
   § 4. Subdivision a of section 13-696 of the administrative code of the
 city  of  New  York,  as  amended by chapter 288 of the laws of 2001, is
 amended to read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A cost-of-living adjustment shall be payable to retired members  of  the
 New  York city employees' retirement system, the New York city teachers'
 retirement system, the New York city police pension fund, the  New  York
 city  fire department pension fund, the New York city board of education
 retirement system or the relief and pension fund of  the  department  of
 street  cleaning  provided  for in subchapter one of this chapter on the
 basis provided for in this section to: (i) all retired members who  have
 attained  age  [sixty-two]  FIFTY-FIVE  and  have  been retired for five
 years; (ii) [all retired members who have attained  age  fifty-five  and
 have  been  retired  for  ten  years; (iii)] all members who retired for
 disability regardless of age who have been retired for five  years;  and
 [(iv)] (III) all recipients of an accidental death benefit regardless of
 age who have been receiving such benefit for five years.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  provide an increase in the defined benefit cost-of-
 living adjustment (COLA) for New York public retirement systems.  Start-
 ing with a payment in September 2019, COLA will be payable to pensioners
 who have attained age fifty-five and been retired at least five years.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System, pursuant to Section 25 of the Retirement  and  Social
 Security  Law,  the increased costs would be borne entirely by the State
 of New York and would require an itemized  appropriation  sufficient  to
 pay  the  cost of the provision. If this bill were enacted, the increase
 in the present value of benefits would be approximately $406 million.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  System  (PFRS), the increased costs would be shared by
 the State of New York and the participating employers in  the  PFRS.  If
 this  bill  were  enacted, the increase in the present value of benefits
 would be approximately $78 million. The estimated first year cost  would
 be approximately $1.9 million to the State of New York and approximately
 $7.5 million to the participating employers in the PFRS.
   Summary of relevant resources:
   The  membership  data  used  in  measuring  the impact of the proposed
 change was the same as that used in the March 31, 2018  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2018
 Report of the  Actuary  and  the  2018  Comprehensive  Annual  Financial
 Report.

 S. 5902--B                          3
 
   The  actuarial assumptions and methods used are described in the 2015,
 2016, 2017 and 2018  Annual  Report  to  the  Comptroller  on  Actuarial
 Assumptions,  and  the  Codes, Rules and Regulations of the State of New
 York: Audit and Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2018
 New  York  State  and  Local  Retirement System Financial Statements and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This fiscal note does not constitute a legal opinion on the  viability
 of  the  proposed change nor is it intended to serve as a substitute for
 the professional judgment of an attorney.
   This estimate, dated May 16, 2019, and intended for  use  only  during
 the  2019  Legislative Session, is Fiscal Note No. 2019-120, prepared by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend subdivision a of Section 532-a of the  Education
 Law  to  lower  the  eligibility  age  for the cost-of-living adjustment
 (COLA) to all pensioners retired for service to age 55 with  five  years
 of  retirement.  The current COLA eligibility requirement is the earlier
 of: 1) age 62 and five years  retired,  or  2)  age  55  and  ten  years
 retired.  This change would first be effective in September of 2019.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System for this benefit is estimated  to  be  $11.3
 million or 0.07% of payroll 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 2019-30 dated June 14, 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
 ________________________________________________________________________
 
                                  5902--C
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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  committee  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee --  committee  discharged,  bill  amended,  ordered  reprinted  as
   amended and recommitted to said committee
 
 AN  ACT  to  amend the retirement and social security law, the education
   law and the administrative code of the city of New York,  in  relation
   to providing cost-of-living adjustments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision a of section 78-a of the retirement and  social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A  cost-of-living  adjustment shall be payable on the basis provided for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE and have been retired for five years;  (ii)  [all  pensioners
 who  have  attained  age fifty-five and have been retired for ten years;
 (iii)] all disability pensioners regardless of age who have been retired
 for five years; and [(iv)] (III) all recipients of an  accidental  death
 benefit  regardless of age who have been receiving such benefit for five
 years.
   § 2. Subdivision a of section 378-a of the retirement and social secu-
 rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
 read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A  cost-of-living  adjustment shall be payable on the basis provided for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE and have been retired for five years; AND (ii) [all  pension-

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

                                                            LBD07921-04-9

 S. 5902--C                          2

 ers  who  have  attained  age  fifty-five  and have been retired for ten
 years; and (iii)] all disability pensioners regardless of age  who  have
 been retired for five years.
   §  3. Subdivision a of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A cost-of-living adjustment shall be payable on the basis  provided  for
 in this section to: (i) all pensioners who have attained age [sixty-two]
 FIFTY-FIVE  and  have  been retired for five years; (ii) [all pensioners
 who have attained age fifty-five and have been retired  for  ten  years;
 (iii)] all disability pensioners regardless of age who have been retired
 for  five  years; and [(iv)] (III) all recipients of an accidental death
 benefit regardless of age who have been receiving such benefit for  five
 years.
   § 4. Subdivision a of section 13-696 of the administrative code of the
 city  of  New  York,  as  amended by chapter 288 of the laws of 2001, is
 amended to read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINETEEN,
 A cost-of-living adjustment shall be payable to retired members  of  the
 New  York city employees' retirement system, the New York city teachers'
 retirement system, the New York city police pension fund, the  New  York
 city  fire department pension fund, the New York city board of education
 retirement system or the relief and pension fund of  the  department  of
 street  cleaning  provided  for in subchapter one of this chapter on the
 basis provided for in this section to: (i) all retired members who  have
 attained  age  [sixty-two]  FIFTY-FIVE  and  have  been retired for five
 years; (ii) [all retired members who have attained  age  fifty-five  and
 have  been  retired  for  ten  years; (iii)] all members who retired for
 disability regardless of age who have been retired for five  years;  and
 [(iv)] (III) all recipients of an accidental death benefit regardless of
 age who have been receiving such benefit for five years.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  provide an increase in the defined benefit cost-of-
 living adjustment (COLA) for New York public retirement systems.  Start-
 ing with a payment in September 2019, COLA will be payable to pensioners
 who have attained age fifty-five and been retired at least five years.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System, pursuant to Section 25 of the Retirement  and  Social
 Security  Law,  the increased costs would be borne entirely by the State
 of New York and would require an itemized  appropriation  sufficient  to
 pay  the  cost of the provision. If this bill were enacted, the increase
 in the present value of benefits would be approximately $406 million.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  System  (PFRS), the increased costs would be shared by
 the State of New York and the participating employers in  the  PFRS.  If
 this  bill  were  enacted, the increase in the present value of benefits
 would be approximately $78 million. The estimated first year cost  would
 be approximately $1.9 million to the State of New York and approximately
 $7.5 million to the participating employers in the PFRS.
   Summary of relevant resources:
   The  membership  data  used  in  measuring  the impact of the proposed
 change was the same as that used in the March 31, 2018  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2018
 Report of the  Actuary  and  the  2018  Comprehensive  Annual  Financial
 Report.

 S. 5902--C                          3
 
   The  actuarial assumptions and methods used are described in the 2015,
 2016, 2017 and 2018  Annual  Report  to  the  Comptroller  on  Actuarial
 Assumptions,  and  the  Codes, Rules and Regulations of the State of New
 York: Audit and Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2018
 New  York  State  and  Local  Retirement System Financial Statements and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This fiscal note does not constitute a legal opinion on the  viability
 of  the  proposed change nor is it intended to serve as a substitute for
 the professional judgment of an attorney.
   This estimate, dated May 16, 2019, and intended for  use  only  during
 the  2019  Legislative Session, is Fiscal Note No. 2019-120, prepared by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend subdivision a of Section 532-a of the  Education
 Law  to  lower  the  eligibility  age  for the cost-of-living adjustment
 (COLA) to all pensioners retired for service to age 55 with  five  years
 of  retirement.  The current COLA eligibility requirement is the earlier
 of: 1) age 62 and five years  retired,  or  2)  age  55  and  ten  years
 retired.  This change would first be effective in September of 2019.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System for this benefit is estimated  to  be  $11.3
 million or 0.07% of payroll 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 2019-30 dated June 14, 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 Section  13-696
 of the Administrative Code of the City of New York (ACCNY) to reduce the
 age  of  eligibility for the Cost-of-Living Adjustment (COLA) from 62 to
 55 for service and vested retirees who have been retired for five  years
 from  the  New  York City Employees' Retirement System (NYCERS), the New
 York City Teachers' Retirement System (NYCTRS), the New York City  Board
 of  Education Retirement System (BERS), the New York City Police Pension
 Fund (POLICE), and the New York City Fire Pension Fund  (FIRE),  collec-
 tively  known  as the New York City Retirement Systems and Pension Funds
 (NYCRS).
   Effective Date: Upon enactment.
   BACKGROUND: Currently, COLA is payable to service and vested  retirees
 who have:
   (1) attained age 62 and have been retired for five years or
   (2) attained age 55 and have been retired for ten years.

 S. 5902--C                          4
 
   Under this proposed legislation, if enacted, the COLA would be payable
 to such retirees who have attained age 55 and have been retired for five
 years.
   The  COLA  for disability retirement and death is payable after having
 been retired for five years and is not affected by the  proposed  legis-
 lation.
   FINANCIAL  IMPACT-SUMMARY: The estimated financial impact to NYCRS for
 reducing the age of eligibility for COLA from 62 to 55 for  service  and
 vested  retirees who have been retired for five years as described above
 is an increase in Present Value of  Future  Benefits  (PVFB)  of  $198.8
 million  and  an increase in the annual employer contributions of $116.4
 million. A breakdown of the financial impact by System is shown  in  the
 table below.
                                                     Estimated First Year
                        Additional Present              Annual Employer
                     Value of Future Benefits           Contributions*
      NYCRS               ($ Millions)                   ($ Millions)
 
      NYCERS                 $ 75.9                         $ 48.4
      NYCTRS                   52.2                           29.7
      BERS                      1.1                            0.7
      POLICE                   63.6                           34.8
      FIRE                      6.0                            2.8
      Total                  $198.8                         $116.4
 
     *Employer contributions after the first year are estimated to be
                        $12 - $13 million per year.
 
   In  accordance  with ACCNY Section 13-638.2(k-2), new Unfunded Accrued
 Liability (UAL) attributable to benefit changes are to be  amortized  as
 determined by the Actuary but generally over the remaining working life-
 time of those impacted by the benefit changes.
   For  the  purposes  of  this  Fiscal  Note  it  has  been assumed that
 increases in UAL attributable to current retirees  would  be  recognized
 immediately  and  that  increases  in UAL attributable to active members
 would be amortized over periods ranging from 12 to 15 years depending on
 the NYCRS (11 to 14 payments, respectively, under the One-Year Lag Meth-
 odology (OYLM)).
   OTHER COSTS: Not measured in this Fiscal Note are the following:
   * The  initial,  additional  administrative  costs  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 PVFB and annual employer contributions
 would be reflected for the first time in the  June  30,  2018  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 2020.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the Preliminary June 30, 2018 (Lag) actuarial valuations of
 NYCRS to determine the Preliminary Fiscal Year  2020  employer  contrib-
 utions.
   ACTUARIAL  ASSUMPTIONS AND METHODS: The changes in the PVFB and annual
 employer contributions presented herein have been  calculated  based  on
 the  same  actuarial  assumptions and methods in effect for the June 30,

 S. 5902--C                          5
 
 2018 (Lag) actuarial valuations used to determine the Preliminary Fiscal
 Year 2020 employer contributions of 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 2019-43 dated July 25,
 2019 was prepared by the Chief Actuary for the New York City  Employees'
 Retirement  System,  the  New York City Teachers' Retirement System, the
 New York City Board of Education Retirement System, the  New  York  City
 Police Pension Fund, and the New York City Fire Pension Fund. This esti-
 mate is intended for use only during the 2019 Legislative Session.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5902--E
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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  committee  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee --  committee  discharged,  bill  amended,  ordered  reprinted  as
   amended  and  recommitted  to  said  committee  --  recommitted to the
   Committee on Civil Service and Pensions in accordance with Senate Rule
   6, sec. 8 -- committee discharged, bill amended, ordered reprinted  as
   amended  and  recommitted  to  said committee -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee
 
 AN  ACT  to  amend the retirement and social security law, the education
   law and the administrative code of the city of New York,  in  relation
   to providing cost-of-living adjustments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision a of section 78-a of the retirement and  social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY, A
 cost-of-living  adjustment shall be payable on the basis provided for in
 this section to: (i) all pensioners who have  attained  age  [sixty-two]
 FIFTY-FIVE  and  have  been retired for five years; (ii) [all pensioners
 who have attained age fifty-five and have been retired  for  ten  years;
 (iii)] all disability pensioners regardless of age who have been retired
 for  five  years; and [(iv)] (III) all recipients of an accidental death
 benefit regardless of age who have been receiving such benefit for  five
 years.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07921-08-0

              

 S. 5902--E                          2
 
   § 2. Subdivision a of section 378-a of the retirement and social secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY, A
 cost-of-living  adjustment shall be payable on the basis provided for in
 this section to: (i) all pensioners who have  attained  age  [sixty-two]
 FIFTY-FIVE  and have been retired for five years; AND (ii) [all pension-
 ers who have attained age fifty-five  and  have  been  retired  for  ten
 years;  and  (iii)] all disability pensioners regardless of age who have
 been retired for five years.
   § 3. Subdivision a of section 532-a of the education law, as added  by
 chapter 125 of the laws of 2000, is amended to read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY, A
 cost-of-living  adjustment shall be payable on the basis provided for in
 this section to: (i) all pensioners who have  attained  age  [sixty-two]
 FIFTY-FIVE  and  have  been retired for five years; (ii) [all pensioners
 who have attained age fifty-five and have been retired  for  ten  years;
 (iii)] all disability pensioners regardless of age who have been retired
 for  five  years; and [(iv)] (III) all recipients of an accidental death
 benefit regardless of age who have been receiving such benefit for  five
 years.
   § 4. Subdivision a of section 13-696 of the administrative code of the
 city  of  New  York,  as  amended by chapter 288 of the laws of 2001, is
 amended to read as follows:
   a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY, A
 cost-of-living adjustment shall be payable to retired members of the New
 York city employees' retirement system,  the  New  York  city  teachers'
 retirement  system,  the New York city police pension fund, the New York
 city fire department pension fund, the New York city board of  education
 retirement  system  or  the relief and pension fund of the department of
 street cleaning provided for in subchapter one of this  chapter  on  the
 basis  provided for in this section to: (i) all retired members who have
 attained age [sixty-two] FIFTY-FIVE  and  have  been  retired  for  five
 years;  (ii)  [all  retired members who have attained age fifty-five and
 have been retired for ten years; (iii)]  all  members  who  retired  for
 disability  regardless  of age who have been retired for five years; and
 [(iv)] (III) all recipients of an accidental death benefit regardless of
 age who have been receiving such benefit for five years.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation would amend Section  13-696
 of the Administrative Code of the City of New York (ACCNY) to reduce the
 age  of  eligibility for the Cost-of-Living Adjustment (COLA) from 62 to
 55 for service and vested retirees who have been retired for five  years
 from  the  New  York City Employees' Retirement System (NYCERS), the New
 York City Teachers' Retirement System (NYCTRS), the New York City  Board
 of  Education Retirement System (BERS), the New York City Police Pension
 Fund (POLICE), and the New York City Fire Pension Fund  (FIRE),  collec-
 tively  known  as the New York City Retirement Systems and Pension Funds
 (NYCRS).
   Effective Date: Upon enactment.
   BACKGROUND: Currently, COLA is payable to service and vested  retirees
 who have:
   (1) attained age 62 and have been retired for five years or
   (2) attained age 55 and have been retired for ten years.

 S. 5902--E                          3
 
   Under this proposed legislation, if enacted, the COLA would be payable
 to such retirees who have attained age 55 and have been retired for five
 years.
   The  COLA  for disability retirement and death is payable after having
 been retired for five years and is not affected by the  proposed  legis-
 lation.
   FINANCIAL  IMPACT  -  SUMMARY: The estimated financial impact to NYCRS
 for reducing the age of eligibility for COLA from 62 to 55  for  service
 and  vested  retirees  who have been retired for five years as described
 above is an increase in Present  Value  of  Future  Benefits  (PVFB)  of
 $194.9  million  and an increase in the annual employer contributions of
 $115.3 million. A breakdown of the financial impact by System  is  shown
 in the table below.
                         Additional           Estimated First Year
        NYCRS      Present Value of Future      Annual Employer
                    Benefits ($ Millions)        Contributions*
                                                  ($ Millions)
      NYCERS              $ 72.8                     $ 47.4
      NYCTRS                51.0                       28.0
      BERS                   0.9                        0.6
      POLICE                64.3                       36.6
      FIRE                   5.9                        2.7
        Total             $194.9                     $115.3
 *  Employer contributions after the first year are estimated to be $11 -
 $12 million per year.
   In accordance with ACCNY Section 13-638.2(k-2), new  Unfunded  Accrued
 Liability  (UAL)  attributable to benefit changes are to be amortized as
 determined by the Actuary, but are generally amortized over the  remain-
 ing working lifetime of those impacted by the benefit changes.
   For  the  purposes  of  this  Fiscal  Note  it  has  been assumed that
 increases in UAL attributable to current retirees  would  be  recognized
 immediately  and  that  increases  in UAL attributable to active members
 would be amortized over periods ranging from 12 to 15 years depending on
 NYCRS (11 to 14 payments, respectively, under the One-Year Lag Methodol-
 ogy (OYLM)).
   CONTRIBUTION TIMING: For the purposes  of  this  Fiscal  Note,  it  is
 assumed  that  the changes in the PVFB and annual employer contributions
 would be reflected for the first time in the  June  30,  2019  actuarial
 valuations  of  NYCRS.  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
 NYCRS to determine the Preliminary Fiscal Year  2021  employer  contrib-
 utions.
   ACTUARIAL  ASSUMPTIONS AND METHODS: The changes in the PVFB and annual
 employer contributions presented herein have been  calculated  based  on
 the  same  actuarial  assumptions and methods in effect for the June 30,
 2019 (Lag) actuarial valuations used to determine the Preliminary Fiscal
 Year 2021 employer contributions of NYCRS.
   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 NYCRS 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  meth-

 S. 5902--E                          4
 
 ods  used,  and  therefore  different  actuarial  methods  could produce
 different results.  Quantifying these risks is beyond the scope of  this
 Fiscal Note.
   Not measured in this Fiscal Note are the following:
   *  The  initial,  additional  administrative  costs  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  2020-38  dated  May  15,
 2020  was prepared by the Chief Actuary for the New York City Employees'
 Retirement System, the New York City Teachers'  Retirement  System,  the
 New  York  City  Board of Education Retirement System, the New York City
 Police Pension Fund, and the New York City Fire Pension Fund. This esti-
 mate is intended for use only during the 2020 Legislative Session.