S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8166
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               July 7, 2021
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT  granting retroactive membership in the New York city employees'
   retirement system to Gregory Dunlavey and Angelo Pisani
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Notwithstanding  any  other  law to the contrary, Gregory
 Dunlavey, who was employed as a rackets investigator with the  New  York
 city  district  attorney  with a start date of July 19, 2010, and Angelo
 Pisani, who was employed as a rackets investigator  with  the  New  York
 city  district  attorney  with a start date of February 7, 2007, both of
 whom failed to indicate on their initial retirement member  applications
 participation in either the district attorney investigators 25 year plan
 as  provided  by section 13-157.1 of the administrative code of the city
 of New York or the district  attorney  investigators  20  year  plan  as
 provided  by  section 13-157.4 of the administrative code of the city of
 New York, may file an application to opt in to either plan effective  as
 of  the  member's  respective  start date. The application must be filed
 with the New York city employees' retirement system within one year from
 the effective date of this act.
   § 2. Any additional contributions will  be  borne  by  the  respective
 members and made prior to retirement.
   §  3. All employer past service costs associated with implementing the
 provisions of this act shall be borne by the city of New York and may be
 amortized over a ten-year period.
   § 4. This act shall take effect immediately.
   FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: The proposed legislation would permit Gregory  Dunla-
 vey and Angelo Pisani, two active Tier 2 District Attorney Investigators
 and  members of the New York City Employees' Retirement System (NYCERS),
 to elect, by filing an application with NYCERS within one  year  of  the

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

                                                            LBD08578-02-1

 A. 8166                             2
 
 effective  date,  membership  in  the  Tier  2 NYCERS 20-Year or 25-Year
 District Attorney Investigator (IDA) Plan.
   Effective Date: Upon enactment.
   BACKGROUND:  Mr.  Dunlavey  and Mr. Pisani initially joined the NYCERS
 Modified Career Pension Plan (CPP) for Tier 2 members in 2010 and  2007,
 respectively.  Although  eligible to elect either the NYCERS IDA 20-Year
 or 25-Year Plan within 180 days  of  becoming  an  investigator  member,
 neither made such election.
   Mr.  Dunlavey and Mr. Pisani have earned approximately 10 years and 24
 years of NYCERS service, respectively (the latter reflects 11  years  of
 purchased  service).  For  purposes  of  this  Fiscal  Note, it has been
 assumed that they will both elect the IDA  20-Year  Plan  and  make  the
 employee  contributions,  including  foregone  interest, that would have
 been required had they been members of the IDA  20-Year  plan  from  the
 time they initially joined NYCERS.
   FINANCIAL  IMPACT  - PRESENT VALUES: The estimated financial impact of
 this proposed legislation has been calculated based  on  the  difference
 between  (1)  the  present value of benefits Mr. Dunlavey and Mr. Pisani
 would receive if the IDA 20-Year Plan were elected and (2)  the  present
 value of the Tier 2 benefits in the NYCERS Modified CPP Plan.
   Based  on  the actuarial assumptions and methods described herein, and
 assuming that both Mr. Dunlavey and Mr. Pisani elected the  IDA  20-Year
 Plan,  the  enactment  of  this  proposed legislation would increase the
 Present Value of Future Benefits (PVFB) by approximately  $108,000,  and
 decrease  the  Present  Value of future member contributions by approxi-
 mately $11,000, resulting in an increase in the present value of  future
 employer contributions of approximately $119,000.
   Under  the Entry Age Normal cost method used to determine the employer
 contributions to NYCERS, there would be  an  increase  in  the  Unfunded
 Accrued Liability (UAL) of approximately $118,000 and an increase in the
 Present Value of future employer Normal Cost of $1,000.
   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. As of June
 30, 2020, the average remaining working lifetime for  Mr.  Dunlavey  and
 Mr.  Pisani is approximately nine years under the IDA 20-Year Plan.
   For  purposes  of  this Fiscal Note, the increase in UAL was amortized
 over a nine-year period (eight payments under the One-Year Lag Methodol-
 ogy (OYLM)) using level dollar payments. This payment plus the  increase
 in  the  Normal  Cost results in an increase in annual employer contrib-
 utions of approximately $32,000 each year.
   CONTRIBUTION TIMING: For the purposes  of  this  Fiscal  Note,  it  is
 assumed  that  the  changes  in  the  Present  Value  of future employer
 contributions and annual employer contributions would be  reflected  for
 the  first  time  in the June 30, 2020 actuarial valuation of NYCERS. 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: As of June 30, 2020, Mr. Dunlavey was  approximately  age
 36, had approximately 10 years of service, and a salary of $99,156.
   As of June 30, 2020, Mr. Pisani was approximately age 52, had approxi-
 mately 24 years of service, and a salary of $100,634.
   ACTUARIAL  ASSUMPTIONS  AND  METHODS:  The changes in Present Value of
 future  employer  contributions  and   annual   employer   contributions

 A. 8166                             3
 
 presented herein have been calculated based on the actuarial assumptions
 and  methods  in  effect for the June 30, 2019 (Lag) actuarial valuation
 used to determine the Preliminary Fiscal  Year  2021  employer  contrib-
 utions of NYCERS.
   The  Actuary  is proposing a set of changes for use beginning with the
 June 30, 2019 (Lag) actuarial valuations  of  NYCERS  to  determine  the
 Final  Fiscal  Year  2021 Employer Contributions (2021 A&M). If the 2021
 A&M is enacted, it is estimated that it would produce  PVFB  and  annual
 employer  contribution  results that are approximately 4-6% smaller than
 the results shown above.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on the realization of the actuarial assumptions used, as well as
 certain  demographic  characteristics  of  NYCERS  and  other  exogenous
 factors  such  as  investment,  contribution, and other risks. If actual
 experience deviates from actuarial assumptions, the actual  costs  could
 differ  from  those  presented  herein.  Costs are also dependent on the
 actuarial methods used, and therefore different actuarial methods  could
 produce  different  results. Quantifying these risks is beyond the scope
 of this Fiscal Note.
   Not measured in this Fiscal Note are the following:
   * The initial, additional administrative costs of NYCERS and other New
 York City agencies 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 2021-50  dated  June  10,
 2021  was prepared by the Chief Actuary for the New York City Employees'
 Retirement System. This estimate is intended for  use  only  during  the
 2021 Legislative Session.