S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7032
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 25, 2021
                                ___________
 
 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 and the adminis-
   trative code of the city of New York, in relation to the establishment
   of twenty-five year retirement programs for members of  the  New  York
   city employees' retirement system employed as water supply police; and
   in  relation to providing for employer pick up, pursuant to provisions
   of the internal revenue code, of certain  additional  member  contrib-
   utions  required to be made by certain participants in the twenty-five
   year retirement programs; and providing  for  the  repeal  of  certain
   provisions upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision b of section 440 of the retirement  and  social
 security  law, as amended by chapter 682 of the laws of 2003, is amended
 to read as follows:
   b. The provisions of this article shall not  be  construed  to  extend
 coverage  to  an  employee  not  otherwise  eligible for membership in a
 retirement system or to provide an increase in benefits to a member of a
 retirement system other than as provided by section four hundred  forty-
 five-d,  or section four hundred forty-five-f, [or] section four hundred
 forty-five-h, SECTION FOUR HUNDRED FORTY-FIVE-J, or section four hundred
 forty-eight of this article.
   § 2. Subdivision a of section 444 of the retirement and social securi-
 ty law, as amended by section 141 of subpart B of part C of  chapter  62
 of the laws of 2011, is amended to read as follows:
   a.  Except as provided in subdivision c of section four hundred forty-
 five-a of this article, subdivision c of  section  four  hundred  forty-
 five-b  of  this  article,  subdivision c of section four hundred forty-
 five-c  of  this  article,  subdivision  c  of  section   four   hundred
 forty-five-d  of  this article as added by chapter four hundred seventy-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03630-02-1

 S. 7032                             2
 
 two of the laws  of  nineteen  hundred  ninety-five,  subdivision  c  of
 section  four  hundred  forty-five-e  of  this article, subdivision c of
 section four hundred forty-five-f of this article and subdivision  c  of
 section  four hundred forty-five-h of this article, AND SUBDIVISION C OF
 SECTION FOUR HUNDRED FORTY-FIVE-J OF THIS ARTICLE, the  maximum  retire-
 ment benefit computed without optional modification provided to a member
 of a retirement system who is subject to the provisions of this article,
 other  than  a  police officer, a firefighter, an investigator member of
 the New  York  city  employees'  retirement  system,  a  member  of  the
 uniformed  personnel  in  institutions under the jurisdiction of the New
 York city department of correction who receives a  performance  of  duty
 disability  retirement allowance, a member of the uniformed personnel in
 institutions under the jurisdiction of the department of corrections and
 community supervision or a security  hospital  treatment  assistant,  as
 those  terms are defined in subdivision i of section eighty-nine of this
 chapter, who receives a performance of duty disability retirement allow-
 ance, a member of a teachers' retirement system, New York  city  employ-
 ees'  retirement  system,  New  York  city board of education retirement
 system or a member of the New York state and local employees' retirement
 system or a member of the New York city employees' retirement system  or
 New York city board of education retirement system employed as a special
 officer,  parking  control specialist, school safety agent, campus peace
 officer, taxi and limousine  inspector  [or],  a  police  communications
 member,  OR  A  MEMBER  OF  THE  WATER  SUPPLY POLICE and who receives a
 performance of duty disability pension,  from  funds  other  than  those
 based on a member's own or increased-take-home-pay contributions, shall,
 before  any  reduction  for early retirement, be sixty per centum of the
 first fifteen thousand three hundred dollars of  final  average  salary,
 and  fifty per centum of final average salary in excess of fifteen thou-
 sand three hundred dollars, and forty per centum of final average salary
 in excess of twenty-seven  thousand  three  hundred  dollars,  provided,
 however,  that  the  benefits  provided by subdivision c of section four
 hundred forty-five-d of this article as added by  chapter  four  hundred
 seventy-two  of  the laws of nineteen hundred ninety-five based upon the
 additional member  contributions  required  by  subdivision  d  of  such
 section  four  hundred  forty-five-d  shall  be  subject  to the maximum
 retirement benefit computations set forth in this section.  The  maximum
 retirement  benefit  computed without optional modification payable to a
 police officer, an investigator member of the New York  city  employees'
 retirement  system  or  a  firefighter  shall  equal  that  payable upon
 completion of thirty years of service, except that the  maximum  service
 retirement  benefit  computed  without optional modification shall equal
 that payable upon completion of thirty-two years of service.
   § 3. Subdivision a of section 445 of the retirement and social securi-
 ty law, as amended by chapter 476 of the laws of  2018,  is  amended  to
 read as follows:
   a.  No  member of a retirement system who is subject to the provisions
 of this article shall retire without regard to age, exclusive of retire-
 ment for disability, unless he or she is a police officer,  an  investi-
 gator  member  of  the New York city employees' retirement system, fire-
 fighter, correction officer, a qualifying member as defined  in  section
 eighty-nine-t  OF  THIS  CHAPTER, as added by chapter six hundred fifty-
 seven of the laws of nineteen hundred ninety-eight, [of  this  chapter,]
 sanitation  worker, a special officer (including persons employed by the
 city of New York in the title urban park ranger or associate urban  park
 ranger),  school safety agent, campus peace officer or a taxi and limou-

 S. 7032                             3
 
 sine commission inspector member of the New York city employees' retire-
 ment system or the New York city board of education retirement system, a
 dispatcher member of the New York city employees' retirement  system,  a
 police  communications member of the New York city employees' retirement
 system, A MEMBER OF THE WATER SUPPLY POLICE IN A POSITION REFERRED TO IN
 PARAGRAPH (O) OF SUBDIVISION THIRTY-FOUR OF SECTION 1.20 OF THE CRIMINAL
 PROCEDURE LAW, an EMT member of the New York city employees'  retirement
 system,  a deputy sheriff member of the New York city employees' retire-
 ment system, a correction officer of the Westchester  county  correction
 department  as  defined  in  section  eighty-nine-e  of  this chapter or
 employed in Suffolk county as a peace officer,  as  defined  in  section
 eighty-nine-s  OF THIS CHAPTER, as added by chapter five hundred eighty-
 eight of the laws of nineteen hundred ninety-seven, [of  this  chapter,]
 employed  in  Suffolk  county  as  a  correction  officer, as defined in
 section eighty-nine-f of this chapter, or employed in Nassau county as a
 correction officer, uniformed correction  division  personnel,  sheriff,
 undersheriff  or  deputy sheriff, as defined in section eighty-nine-g of
 this chapter, or employed in Nassau county as an ambulance medical tech-
 nician, an ambulance  medical  technician/supervisor  or  a  member  who
 performs  ambulance  medical  technician related services, as defined in
 section eighty-nine-s OF  THIS  CHAPTER,  as  amended  by  chapter  five
 hundred  seventy-eight of the laws of nineteen hundred ninety-eight, [of
 this chapter,] or employed in Nassau  county  as  a  peace  officer,  as
 defined  in  section  eighty-nine-s OF THIS CHAPTER, as added by chapter
 five hundred ninety-five of the laws of nineteen  hundred  ninety-seven,
 [of this chapter,] or employed in Albany county as a sheriff, undersher-
 iff,  deputy  sheriff,  correction officer or identification officer, as
 defined in section eighty-nine-h of this chapter or is employed  in  St.
 Lawrence county as a sheriff, undersheriff, deputy sheriff or correction
 officer,  as  defined  in  section  eighty-nine-i  of this chapter or is
 employed in Orleans county as a sheriff, undersheriff, deputy sheriff or
 correction officer, as defined in section eighty-nine-l of this  chapter
 or  is  employed  in Jefferson county as a sheriff, undersheriff, deputy
 sheriff or correction officer, as defined in  section  eighty-nine-j  of
 this  chapter or is employed in Onondaga county as a deputy sheriff-jail
 division competitively appointed or as a correction officer, as  defined
 in  section  eighty-nine-k  of  this  chapter or is employed in a county
 which makes an election under subdivision j of section eighty-nine-p  of
 this  chapter  as  a sheriff, undersheriff, deputy sheriff or correction
 officer as defined in such  section  eighty-nine-p  or  is  employed  in
 Broome  County  as a sheriff, undersheriff, deputy sheriff or correction
 officer, as defined in section eighty-nine-m of this  chapter  or  is  a
 Monroe county deputy sheriff-court security, or deputy sheriff-jailor as
 defined  in  section  eighty-nine-n OF THIS CHAPTER, as added by chapter
 five hundred ninety-seven of the laws of  nineteen  hundred  ninety-one,
 [of  this  chapter] or is employed in Greene county as a sheriff, under-
 sheriff, deputy sheriff or correction officer,  as  defined  in  section
 eighty-nine-o  of  this chapter or is a traffic officer with the town of
 Elmira as defined  in  section  eighty-nine-q  of  this  chapter  or  is
 employed  by  Suffolk  county  as  a  park police officer, as defined in
 section eighty-nine-r of this chapter or is a peace officer employed  by
 a  county  probation  department  as defined in section eighty-nine-t OF
 THIS CHAPTER, as added by chapter six hundred three of the laws of nine-
 teen hundred ninety-eight, [of this chapter] or is employed in  Rockland
 county  as a deputy sheriff-civil as defined in section eighty-nine-v of
 this chapter as added by chapter four hundred forty-one of the  laws  of

 S. 7032                             4
 
 two  thousand  one,  or  is  employed  in  Rockland county as a superior
 correction officer as defined in section eighty-nine-v of  this  chapter
 as  added  by chapter five hundred fifty-six of the laws of two thousand
 one  or  is a paramedic employed by the police department in the town of
 Tonawanda and retires under the provisions of section  eighty-nine-v  of
 this  chapter,  as added by chapter four hundred seventy-two of the laws
 of two thousand one, or is  a  county  fire  marshal,  supervising  fire
 marshal,  fire  marshal,  assistant  fire  marshal, assistant chief fire
 marshal or chief fire marshal  employed  by  the  county  of  Nassau  as
 defined  in section eighty-nine-w of this chapter and is in a plan which
 permits immediate retirement upon completion of a  specified  period  of
 service  without  regard  to age. Except as provided in subdivision c of
 section four hundred forty-five-a of  this  article,  subdivision  c  of
 section  four  hundred  forty-five-b  of  this article, subdivision c of
 section four hundred forty-five-c of  this  article,  subdivision  c  of
 section  four  hundred  forty-five-d  of  this article, subdivision c of
 section four hundred forty-five-e of  this  article,  subdivision  c  of
 section  four  hundred forty-five-f of this article [and], subdivision c
 of section four hundred forty-five-h of this article, AND SUBDIVISION  C
 OF SECTION FOUR HUNDRED FORTY-FIVE-J OF THIS ARTICLE, a member in such a
 plan and such an occupation, other than a police officer or investigator
 member of the New York city employees' retirement system or a firefight-
 er,  shall not be permitted to retire prior to the completion of twenty-
 five years of credited service; provided, however, if such a  member  in
 such an occupation is in a plan which permits retirement upon completion
 of  twenty years of service regardless of age, he or she may retire upon
 completion of  twenty  years  of  credited  service  and  prior  to  the
 completion  of twenty-five years of service, but in such event the bene-
 fit provided from funds other than those based on such  a  member's  own
 contributions  shall  not  exceed two per centum of final average salary
 per each year of credited service.
   § 4. The retirement and social security law is amended by adding a new
 section 445-j to read as follows:
   § 445-J. OPTIONAL TWENTY-FIVE YEAR IMPROVED BENEFIT RETIREMENT PROGRAM
 FOR WATER SUPPLY POLICE MEMBERS. A. DEFINITIONS. THE FOLLOWING WORDS AND
 PHRASES AS USED IN THIS SECTION SHALL HAVE THE FOLLOWING MEANINGS UNLESS
 A DIFFERENT MEANING IS PLAINLY REQUIRED BY THE CONTEXT.
   1. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK CITY EMPLOYEES' RETIRE-
 MENT SYSTEM.
   2. "WATER SUPPLY POLICE MEMBER" SHALL MEAN A MEMBER OF THE  RETIREMENT
 SYSTEM WHO IS SUBJECT TO THE PROVISIONS OF THIS ARTICLE, WHO IS EMPLOYED
 BY  THE  CITY  OF NEW YORK IN A POSITION REFERRED TO BY PARAGRAPH (O) OF
 SUBDIVISION THIRTY-FOUR OF SECTION 1.20 OF THE CRIMINAL PROCEDURE LAW.
   3. "TWENTY-FIVE YEAR IMPROVED BENEFIT RETIREMENT PROGRAM"  SHALL  MEAN
 ALL THE TERMS AND CONDITIONS OF THIS SECTION.
   4.  "STARTING DATE OF THE TWENTY-FIVE YEAR IMPROVED BENEFIT RETIREMENT
 PROGRAM" SHALL MEAN THE EFFECTIVE DATE OF THIS SECTION, AS SUCH DATE  IS
 CERTIFIED PURSUANT TO SECTION FORTY-ONE OF THE LEGISLATIVE LAW.
   5.  "PARTICIPANT  IN  THE TWENTY-FIVE YEAR IMPROVED BENEFIT RETIREMENT
 PROGRAM" SHALL MEAN ANY WATER SUPPLY POLICE MEMBER WHO, UNDER THE APPLI-
 CABLE PROVISIONS OF SUBDIVISION B OF THIS SECTION, IS  ENTITLED  TO  THE
 RIGHTS, BENEFITS AND PRIVILEGES AND IS SUBJECT TO THE OBLIGATIONS OF THE
 TWENTY-FIVE  YEAR  IMPROVED BENEFIT RETIREMENT PROGRAM, AS APPLICABLE TO
 HIM OR HER.
   6. "ADMINISTRATIVE CODE" SHALL MEAN THE  ADMINISTRATIVE  CODE  OF  THE
 CITY OF NEW YORK.

 S. 7032                             5
 
   7.  "ACCUMULATED  DEDUCTIONS"  SHALL  MEAN  ACCUMULATED  DEDUCTIONS AS
 DEFINED IN SUBDIVISION ELEVEN OF SECTION 13-101  OF  THE  ADMINISTRATIVE
 CODE.
   8. "OPTIONAL RETIREMENT PROVISIONS" SHALL MEAN THE RIGHT TO RETIRE AND
 RECEIVE A RETIREMENT ALLOWANCE UNDER THIS SECTION UPON THE COMPLETION OF
 TWENTY-FIVE YEARS OF CREDITED SERVICE.
   B.  ELECTION  OF TWENTY-FIVE YEAR IMPROVED BENEFIT RETIREMENT PROGRAM.
 1. SUBJECT TO THE PROVISIONS OF PARAGRAPHS FIVE AND SIX OF THIS SUBDIVI-
 SION, ANY PERSON WHO IS A WATER SUPPLY POLICE  MEMBER  ON  THE  STARTING
 DATE  OF  THE  TWENTY-FIVE  YEAR IMPROVED BENEFIT RETIREMENT PROGRAM MAY
 ELECT TO BECOME A PARTICIPANT IN THE TWENTY-FIVE YEAR  IMPROVED  BENEFIT
 RETIREMENT  PROGRAM BY FILING, WITHIN ONE HUNDRED EIGHTY DAYS AFTER SUCH
 STARTING DATE, A DULY EXECUTED APPLICATION FOR SUCH  PARTICIPATION  WITH
 THE  RETIREMENT SYSTEM, PROVIDED HE OR SHE IS SUCH A WATER SUPPLY POLICE
 MEMBER ON THE DATE SUCH APPLICATION IS FILED.
   2. SUBJECT TO THE PROVISIONS OF PARAGRAPHS FIVE AND SIX OF THIS SUBDI-
 VISION, ANY PERSON WHO BECOMES A WATER SUPPLY POLICE  MEMBER  AFTER  THE
 STARTING  DATE  OF  THE  TWENTY-FIVE  YEAR  IMPROVED  BENEFIT RETIREMENT
 PROGRAM MAY ELECT TO  BECOME  A  PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR
 IMPROVED BENEFIT RETIREMENT PROGRAM BY FILING, WITHIN ONE HUNDRED EIGHTY
 DAYS  AFTER  BECOMING SUCH A WATER SUPPLY POLICE MEMBER, A DULY EXECUTED
 APPLICATION FOR SUCH PARTICIPATION WITH THE RETIREMENT SYSTEM,  PROVIDED
 HE OR SHE IS SUCH A WATER SUPPLY POLICE MEMBER ON THE DATE SUCH APPLICA-
 TION IS FILED.
   3.  ANY  ELECTION TO BE A PARTICIPANT IN THE TWENTY-FIVE YEAR IMPROVED
 BENEFIT RETIREMENT PROGRAM SHALL BE IRREVOCABLE.
   4. WHERE ANY PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  IMPROVED  BENEFIT
 RETIREMENT  PROGRAM  SHALL  CEASE  TO  HOLD A POSITION AS A WATER SUPPLY
 POLICE MEMBER, HE OR SHE SHALL CEASE  TO  BE  SUCH  A  PARTICIPANT  AND,
 DURING  ANY  PERIOD  IN  WHICH  SUCH A PERSON DOES NOT HOLD SUCH A WATER
 SUPPLY POLICE POSITION, HE OR SHE SHALL NOT  BE  A  PARTICIPANT  IN  THE
 TWENTY-FIVE  YEAR  IMPROVED  BENEFIT RETIREMENT PROGRAM AND SHALL NOT BE
 ELIGIBLE FOR THE BENEFITS OF SUBDIVISION C OF THIS SECTION.
   5. WHERE ANY PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  IMPROVED  BENEFIT
 RETIREMENT  PROGRAM  TERMINATES  SERVICE AS A WATER SUPPLY POLICE MEMBER
 AND RETURNS TO SUCH SERVICE AS A WATER SUPPLY POLICE MEMBER AT  A  LATER
 DATE, HE OR SHE SHALL AGAIN BECOME SUCH A PARTICIPANT ON THAT DATE.
   6.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, ANY
 PERSON WHO IS ELIGIBLE TO BECOME A PARTICIPANT IN THE  TWENTY-FIVE  YEAR
 IMPROVED  BENEFIT RETIREMENT PROGRAM PURSUANT TO PARAGRAPH ONE OR TWO OF
 THIS SUBDIVISION FOR THE FULL ONE HUNDRED EIGHTY DAY PERIOD PROVIDED FOR
 IN SUCH APPLICABLE PARAGRAPH  AND  WHO  FAILS  TO  TIMELY  FILE  A  DULY
 EXECUTED  APPLICATION FOR SUCH PARTICIPATION WITH THE RETIREMENT SYSTEM,
 SHALL NOT THEREAFTER  BE  ELIGIBLE  TO  BECOME  A  PARTICIPANT  IN  SUCH
 PROGRAM.
   C. SERVICE RETIREMENT BENEFITS. NOTWITHSTANDING ANY OTHER PROVISION OF
 LAW  TO  THE  CONTRARY,  WHERE  A  PARTICIPANT  IN  THE TWENTY-FIVE YEAR
 IMPROVED BENEFIT RETIREMENT PROGRAM, WHO IS OTHERWISE  QUALIFIED  FOR  A
 RETIREMENT  ALLOWANCE PURSUANT TO THE OPTIONAL RETIREMENT PROVISIONS SET
 FORTH IN SUBDIVISION A OF THIS SECTION, HAS MADE AND/OR PAID,  WHILE  HE
 OR  SHE  IS A WATER SUPPLY POLICE MEMBER, ALL ADDITIONAL MEMBER CONTRIB-
 UTIONS AND INTEREST (IF ANY) REQUIRED BY SUBDIVISION D OF THIS  SECTION,
 THEN:
   1.  THAT PARTICIPANT, WHILE HE OR SHE REMAINS A PARTICIPANT, SHALL NOT
 BE SUBJECT TO THE PROVISIONS OF SUBDIVISION A OF  SECTION  FOUR  HUNDRED
 FORTY-FIVE OF THIS ARTICLE; AND

 S. 7032                             6
 
   2.  IF  THAT  PARTICIPANT,  WHILE  SUCH  A  PARTICIPANT,  RETIRES FROM
 SERVICE, HE OR SHE SHALL NOT BE SUBJECT TO  THE  PROVISIONS  OF  SECTION
 FOUR HUNDRED FORTY-FOUR OF THIS ARTICLE; AND
   3.  HIS  OR HER RETIREMENT ALLOWANCE SHALL BE AN AMOUNT, ON ACCOUNT OF
 THE REQUIRED MINIMUM PERIOD OF SERVICE, EQUAL TO THE SUM OF (I) AN ANNU-
 ITY  WHICH  SHALL  BE  THE  ACTUARIAL  EQUIVALENT  OF  THE   ACCUMULATED
 DEDUCTIONS  FROM  HIS  OR HER PAY DURING SUCH PERIOD, (II) A PENSION FOR
 INCREASED-TAKE-HOME-PAY WHICH SHALL BE THE ACTUARIAL EQUIVALENT  OF  THE
 RESERVE  FOR  INCREASED-TAKE-HOME-PAY TO WHICH HE OR SHE MAY BE ENTITLED
 FOR SUCH PERIOD, AND (III) A PENSION WHICH, WHEN ADDED TO  SUCH  ANNUITY
 AND  SUCH  PENSION  FOR  INCREASED-TAKE-HOME-PAY,  PRODUCES A RETIREMENT
 ALLOWANCE EQUAL TO FIFTY PERCENT OF HIS OR  HER  FINAL  AVERAGE  SALARY,
 PLUS  AN  AMOUNT FOR EACH ADDITIONAL YEAR OF ALLOWABLE SERVICE, OR FRAC-
 TION THEREOF, BEYOND SUCH REQUIRED MINIMUM PERIOD OF  SERVICE  EQUAL  TO
 TWO PERCENT OF HIS OR HER FINAL AVERAGE SALARY; AND
   4.  THE MAXIMUM RETIREMENT BENEFIT COMPUTED WITHOUT OPTIONAL MODIFICA-
 TION PAYABLE TO THAT PARTICIPANT UPON HIS OR HER RETIREMENT FOR  SERVICE
 AS SUCH A PARTICIPANT SHALL EQUAL THAT PAYABLE UPON COMPLETION OF THIRTY
 YEARS OF SERVICE.
   D.  ADDITIONAL  MEMBER  CONTRIBUTIONS.  1.  IN  ADDITION TO THE MEMBER
 CONTRIBUTIONS REQUIRED PURSUANT TO SECTION 13-125 OR SECTION  13-162  OF
 THE  ADMINISTRATIVE  CODE,  EACH  PARTICIPANT  IN  THE  TWENTY-FIVE YEAR
 IMPROVED BENEFIT RETIREMENT PROGRAM SHALL  CONTRIBUTE,  SUBJECT  TO  THE
 APPLICABLE PROVISIONS OF SECTION 13-125.2 OF THE ADMINISTRATIVE CODE, AN
 ADDITIONAL  SIX  PERCENT  OF HIS OR HER COMPENSATION EARNED FROM (I) ALL
 CREDITED SERVICE, AS A PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR  IMPROVED
 BENEFIT  RETIREMENT  PROGRAM, RENDERED ON AND AFTER THE STARTING DATE OF
 THE IMPROVED BENEFIT RETIREMENT PROGRAM, AND (II) ALL  CREDITED  SERVICE
 AFTER SUCH PERSON CEASES TO BE A PARTICIPANT, BUT BEFORE HE OR SHE AGAIN
 BECOMES  A  PARTICIPANT  PURSUANT  TO PARAGRAPH FIVE OF SUBDIVISION B OF
 THIS SECTION. A PARTICIPANT IN THE  TWENTY-FIVE  YEAR  IMPROVED  BENEFIT
 RETIREMENT  PROGRAM  SHALL  CONTRIBUTE  ADDITIONAL  MEMBER CONTRIBUTIONS
 UNTIL THE LATER OF (I) THE DATE AS OF WHICH HE OR  SHE  IS  ELIGIBLE  TO
 RETIRE  WITH TWENTY-FIVE YEARS OF CREDITED SERVICE UNDER SUCH RETIREMENT
 PROGRAM, OR (II) THE FIRST ANNIVERSARY OF THE STARTING DATE OF THE TWEN-
 TY-FIVE  YEAR  IMPROVED  BENEFIT  RETIREMENT  PROGRAM.  THE   ADDITIONAL
 CONTRIBUTIONS  REQUIRED BY THIS PARAGRAPH SHALL BE IN LIEU OF ADDITIONAL
 MEMBER CONTRIBUTIONS REQUIRED BY SUBDIVISION D OF SECTION  FOUR  HUNDRED
 FORTY-FIVE-D OF THIS ARTICLE, AS ADDED BY CHAPTER NINETY-SIX OF THE LAWS
 OF  NINETEEN  HUNDRED  NINETY-FIVE,  AND  NO  MEMBER  PAYING  ADDITIONAL
 CONTRIBUTIONS PURSUANT TO THIS SECTION SHALL BE REQUIRED  TO  PAY  ADDI-
 TIONAL  CONTRIBUTIONS  PURSUANT  TO  SUCH  SUBDIVISION D OF SECTION FOUR
 HUNDRED FORTY-FIVE-D OF THIS ARTICLE.
   2. COMMENCING WITH THE FIRST FULL PAYROLL  PERIOD  AFTER  EACH  PERSON
 BECOMES  A  PARTICIPANT IN THE TWENTY-FIVE YEAR IMPROVED BENEFIT RETIRE-
 MENT PROGRAM, ADDITIONAL MEMBER CONTRIBUTIONS AT THE RATE  SPECIFIED  IN
 PARAGRAPH  ONE  OF  THIS  SUBDIVISION  SHALL BE DEDUCTED, SUBJECT TO THE
 APPLICABLE PROVISIONS OF SECTION 13-125.2 OF  THE  ADMINISTRATIVE  CODE,
 FROM  THE  COMPENSATION OF SUCH PARTICIPANT ON EACH AND EVERY PAYROLL OF
 SUCH PARTICIPANT FOR EACH AND EVERY PAYROLL PERIOD FOR WHICH HE  OR  SHE
 IS SUCH A PARTICIPANT.
   3.  (I)  SUBJECT  TO THE PROVISIONS OF SUBPARAGRAPH (II) OF THIS PARA-
 GRAPH, WHERE ANY ADDITIONAL MEMBER CONTRIBUTIONS REQUIRED  BY  PARAGRAPH
 ONE  OF THIS SUBDIVISION ARE NOT PAID BY DEDUCTIONS FROM A PARTICIPANT'S
 COMPENSATION PURSUANT TO PARAGRAPH TWO OF THIS SUBDIVISION:

 S. 7032                             7

   (A) THAT PARTICIPANT SHALL BE CHARGED WITH A  CONTRIBUTION  DEFICIENCY
 CONSISTING  OF  SUCH  UNPAID  AMOUNTS,  TOGETHER  WITH INTEREST THEREON,
 COMPOUNDED ANNUALLY; AND
   (B)  SUCH  INTEREST  ON  EACH AMOUNT OF UNDEDUCTED CONTRIBUTIONS SHALL
 ACCRUE FROM THE END OF THE PAYROLL PERIOD FOR WHICH  SUCH  AMOUNT  WOULD
 HAVE BEEN DEDUCTED FROM COMPENSATION IF HE OR SHE HAD BEEN A PARTICIPANT
 AT  THE  BEGINNING  OF  THAT PAYROLL PERIOD AND SUCH DEDUCTIONS HAD BEEN
 REQUIRED FOR SUCH PAYROLL PERIOD  UNTIL  SUCH  AMOUNT  IS  PAID  TO  THE
 RETIREMENT SYSTEM; AND
   (C)  (1)INTEREST  ON  EACH  SUCH AMOUNT INCLUDED IN SUCH PARTICIPANT'S
 CONTRIBUTION DEFICIENCY PURSUANT TO THIS SUBPARAGRAPH  SHALL  BE  CALCU-
 LATED  AS IF SUCH ADDITIONAL MEMBER CONTRIBUTIONS NEVER HAD BEEN PAID BY
 SUCH PARTICIPANT, AND SUCH INTEREST SHALL ACCRUE FROM  THE  END  OF  THE
 PAYROLL  PERIOD  TO  WHICH  AN AMOUNT OF SUCH ADDITIONAL MEMBER CONTRIB-
 UTIONS IS ATTRIBUTABLE, COMPOUNDED ANNUALLY, UNTIL SUCH AMOUNT  IS  PAID
 TO THE RETIREMENT SYSTEM.
   (2)  THE RATE OF INTEREST TO BE APPLIED TO EACH SUCH AMOUNT DURING THE
 PERIOD FOR WHICH INTEREST ACCRUES ON THAT AMOUNT SHALL BE EQUAL  TO  THE
 RATE  OR  RATES  OF INTEREST REQUIRED BY LAW TO BE USED DURING THAT SAME
 PERIOD TO CREDIT INTEREST ON THE ACCUMULATED  DEDUCTIONS  OF  RETIREMENT
 SYSTEM MEMBERS.
   (II)  EXCEPT  AS  PROVIDED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, NO
 INTEREST SHALL BE DUE ON ANY UNPAID ADDITIONAL CONTRIBUTIONS  WHICH  ARE
 NOT  ATTRIBUTABLE  TO  THE PERIOD PRIOR TO THE FIRST FULL PAYROLL PERIOD
 REFERRED TO IN PARAGRAPH TWO OF THIS SUBDIVISION.
   (III) SHOULD ANY PERSON WHO,  PURSUANT  TO  PARAGRAPH  SEVEN  OF  THIS
 SUBDIVISION,  HAS WITHDRAWN ANY ADDITIONAL MEMBER CONTRIBUTIONS (AND ANY
 INTEREST PAID THEREON) AGAIN BECOME A  PARTICIPANT  IN  THE  TWENTY-FIVE
 YEAR  IMPROVED  BENEFIT RETIREMENT PROGRAM PURSUANT TO PARAGRAPH FIVE OF
 SUBDIVISION B OF THIS SECTION, AN APPROPRIATE AMOUNT SHALL  BE  INCLUDED
 IN SUCH PARTICIPANT'S CONTRIBUTION DEFICIENCY (INCLUDING INTEREST THERE-
 ON AS CALCULATED PURSUANT TO SUBCLAUSE TWO OF CLAUSE (C) OF SUBPARAGRAPH
 (I)  OF  THIS  PARAGRAPH) FOR ANY CREDITED SERVICE WITH RESPECT TO WHICH
 SUCH  PERSON  RECEIVED  A  REFUND  OF  ADDITIONAL  MEMBER  CONTRIBUTIONS
 (INCLUDING  ANY  AMOUNT  OF  AN  UNPAID LOAN BALANCE DEEMED TO HAVE BEEN
 RETURNED TO SUCH PERSON PURSUANT TO PARAGRAPH  SEVEN  OF  THIS  SUBDIVI-
 SION), AS IF SUCH ADDITIONAL MEMBER CONTRIBUTIONS NEVER HAD BEEN PAID.
   4. THE BOARD OF TRUSTEES OF THE RETIREMENT SYSTEM MAY, CONSISTENT WITH
 THE  PROVISIONS  OF  THIS  SUBDIVISION,  PROMULGATE  REGULATIONS FOR THE
 PAYMENT OF THE ADDITIONAL MEMBER CONTRIBUTIONS REQUIRED BY THIS SUBDIVI-
 SION, AND ANY INTEREST THEREON, BY A PARTICIPANT IN THE TWENTY-FIVE YEAR
 IMPROVED BENEFIT RETIREMENT PROGRAM (INCLUDING  THE  DEDUCTION  OF  SUCH
 CONTRIBUTIONS, AND ANY INTEREST THEREON, FROM HIS OR HER COMPENSATION).
   5.  WHERE  A PARTICIPANT WHO IS OTHERWISE ELIGIBLE FOR SERVICE RETIRE-
 MENT PURSUANT TO SUBDIVISION C OF THIS SECTION DID  NOT,  PRIOR  TO  THE
 EFFECTIVE  DATE  OF  RETIREMENT, PAY THE ENTIRE AMOUNT OF A CONTRIBUTION
 DEFICIENCY CHARGEABLE TO HIM OR HER PURSUANT TO PARAGRAPH THREE OF  THIS
 SUBDIVISION,  OR  REPAY  THE ENTIRE AMOUNT OF A LOAN OF HIS OR HER ADDI-
 TIONAL MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH EIGHT OF THIS SUBDIVI-
 SION (INCLUDING ACCRUED INTEREST ON SUCH LOAN), THAT PARTICIPANT, NEVER-
 THELESS, SHALL BE ELIGIBLE TO RETIRE PURSUANT TO SUBDIVISION C  OF  THIS
 SECTION,  PROVIDED, HOWEVER, THAT WHERE SUCH PARTICIPANT IS NOT ENTITLED
 TO A REFUND OF ADDITIONAL MEMBER  CONTRIBUTIONS  PURSUANT  TO  PARAGRAPH
 SEVEN OF THIS SUBDIVISION, SUCH PARTICIPANT'S SERVICE RETIREMENT BENEFIT
 CALCULATED  PURSUANT  TO  THE  APPLICABLE PROVISIONS OF SUBDIVISION C OF
 THIS SECTION SHALL BE REDUCED BY A LIFE ANNUITY (CALCULATED  IN  ACCORD-

 S. 7032                             8
 
 ANCE  WITH  THE METHOD SET FORTH IN SUBDIVISION I OF SECTION SIX HUNDRED
 THIRTEEN-B OF THIS CHAPTER) WHICH IS ACTUARIALLY EQUIVALENT TO:
   (I)  THE  AMOUNT  OF  ANY UNPAID CONTRIBUTION DEFICIENCY CHARGEABLE TO
 SUCH MEMBER PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION; PLUS
   (II) THE AMOUNT OF ANY UNPAID BALANCE OF A LOAN OF HIS  OR  HER  ADDI-
 TIONAL MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH EIGHT OF THIS SUBDIVI-
 SION (INCLUDING ACCRUED INTEREST ON SUCH LOAN).
   6.  SUBJECT  TO  THE PROVISIONS OF PARAGRAPH FIVE OF THIS SUBDIVISION,
 WHERE A PARTICIPANT HAS NOT PAID IN  FULL  ANY  CONTRIBUTION  DEFICIENCY
 CHARGEABLE  TO  HIM  OR HER PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVI-
 SION, AND A BENEFIT, OTHER THAN  A  REFUND  OF  A  MEMBER'S  ACCUMULATED
 DEDUCTIONS  OR  A  REFUND OF ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO
 PARAGRAPH SEVEN OF THIS SUBDIVISION, BECOMES PAYABLE BY  THE  RETIREMENT
 SYSTEM  TO  THE  PARTICIPANT  OR TO HIS OR HER DESIGNATED BENEFICIARY OR
 ESTATE, THE ACTUARIAL EQUIVALENT OF ANY  SUCH  UNPAID  AMOUNT  SHALL  BE
 DEDUCTED FROM THE BENEFIT OTHERWISE PAYABLE.
   7.  (I)  ALL ADDITIONAL MEMBER CONTRIBUTIONS REQUIRED BY THIS SUBDIVI-
 SION (AND ANY INTEREST THEREON) WHICH ARE  RECEIVED  BY  THE  RETIREMENT
 SYSTEM  SHALL  BE PAID INTO ITS CONTINGENT RESERVE FUND AND SHALL BE THE
 PROPERTY OF THE RETIREMENT SYSTEM. SUCH ADDITIONAL MEMBER  CONTRIBUTIONS
 (AND  ANY  INTEREST  THEREON)  SHALL NOT FOR ANY PURPOSE BE DEEMED TO BE
 MEMBER CONTRIBUTIONS OR  ACCUMULATED  DEDUCTIONS  OF  A  MEMBER  OF  THE
 RETIREMENT SYSTEM UNDER SECTION 13-125 OR SECTION 13-162 OF THE ADMINIS-
 TRATIVE  CODE  WHILE  HE OR SHE IS A PARTICIPANT IN THE TWENTY-FIVE YEAR
 IMPROVED BENEFIT RETIREMENT PROGRAM OR OTHERWISE.
   (II) SHOULD A PARTICIPANT IN THE  TWENTY-FIVE  YEAR  IMPROVED  BENEFIT
 RETIREMENT  PROGRAM,  WHO  HAS RENDERED LESS THAN FIVE YEARS OF CREDITED
 SERVICE CEASE TO HOLD A POSITION AS A WATER SUPPLY POLICE MEMBER FOR ANY
 REASON WHATSOEVER, HIS OR HER  ACCUMULATED  ADDITIONAL  MEMBER  CONTRIB-
 UTIONS  MADE  PURSUANT  TO  THIS SUBDIVISION (TOGETHER WITH ANY INTEREST
 THEREON PAID TO THE RETIREMENT SYSTEM) WHICH  REMAIN  CREDITED  TO  SUCH
 PARTICIPANT'S  ACCOUNT MAY BE WITHDRAWN BY HIM OR HER PURSUANT TO PROCE-
 DURES PROMULGATED IN REGULATIONS OF THE BOARD OF TRUSTEES OF THE RETIRE-
 MENT SYSTEM, TOGETHER WITH INTEREST THEREON  AT  THE  RATE  OF  INTEREST
 REQUIRED  BY  LAW  TO  BE  USED  TO  CREDIT  INTEREST ON THE ACCUMULATED
 DEDUCTIONS OF RETIREMENT SYSTEM MEMBERS COMPOUNDED ANNUALLY.
   (III) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  (A)
 NO  PERSON SHALL BE PERMITTED TO WITHDRAW FROM THE RETIREMENT SYSTEM ANY
 ADDITIONAL MEMBER CONTRIBUTIONS PAID PURSUANT TO THIS SUBDIVISION OR ANY
 INTEREST PAID THEREON, EXCEPT PURSUANT TO AND  IN  ACCORDANCE  WITH  THE
 PRECEDING  SUBPARAGRAPHS  OF THIS PARAGRAPH; AND (B) NO PERSON, WHILE HE
 OR SHE IS A PARTICIPANT IN THE TWENTY-FIVE YEAR IMPROVED BENEFIT RETIRE-
 MENT PROGRAM, SHALL BE PERMITTED TO WITHDRAW ANY SUCH ADDITIONAL  MEMBER
 CONTRIBUTIONS  OR  ANY  INTEREST  PAID  THEREON  PURSUANT  TO ANY OF THE
 PRECEDING SUBPARAGRAPHS OF THIS PARAGRAPH OR OTHERWISE.
   8. A PARTICIPANT IN THE TWENTY-FIVE YEAR IMPROVED  BENEFIT  RETIREMENT
 PROGRAM  SHALL  BE PERMITTED TO BORROW FROM HIS OR HER ADDITIONAL MEMBER
 CONTRIBUTIONS, INCLUDING ANY INTEREST PAID THEREON, WHICH  ARE  CREDITED
 TO THE ADDITIONAL CONTRIBUTIONS ACCOUNT ESTABLISHED FOR SUCH PARTICIPANT
 IN  THE CONTINGENT RESERVE FUND OF THE RETIREMENT SYSTEM.  THE BORROWING
 FROM SUCH ADDITIONAL MEMBER CONTRIBUTIONS  PURSUANT  TO  THIS  PARAGRAPH
 SHALL BE GOVERNED BY THE SAME RIGHTS, PRIVILEGES, OBLIGATIONS AND PROCE-
 DURES  SET FORTH IN SECTION SIX HUNDRED THIRTEEN-B OF THIS CHAPTER WHICH
 GOVERN THE BORROWING BY MEMBERS SUBJECT TO ARTICLE FIFTEEN OF THIS CHAP-
 TER OF MEMBER CONTRIBUTIONS MADE PURSUANT TO SECTION SIX  HUNDRED  THIR-
 TEEN  OF  THIS  CHAPTER.  THE BOARD OF TRUSTEES OF THE RETIREMENT SYSTEM

 S. 7032                             9
 
 MAY,  CONSISTENT  WITH  THE  PROVISIONS  OF  THIS  SUBDIVISION  AND  THE
 PROVISIONS  OF  SECTION  SIX  HUNDRED THIRTEEN-B OF THIS CHAPTER AS MADE
 APPLICABLE TO THIS SUBDIVISION,  PROMULGATE  REGULATIONS  GOVERNING  THE
 BORROWING OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS.
   9.  WHEREVER  A  PERSON  HAS AN UNPAID BALANCE OF A LOAN OF HIS OR HER
 ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT  TO  PARAGRAPH  EIGHT  OF  THIS
 SUBDIVISION AT THE TIME HE OR SHE BECOMES ENTITLED TO A REFUND OF HIS OR
 HER  ADDITIONAL  MEMBER  CONTRIBUTIONS  PURSUANT TO SUBPARAGRAPH (II) OF
 PARAGRAPH SEVEN OF THIS SUBDIVISION, THE  AMOUNT  OF  SUCH  UNPAID  LOAN
 BALANCE  (INCLUDING  ACCRUED  INTEREST)  SHALL  BE  DEEMED  TO HAVE BEEN
 RETURNED TO SUCH MEMBER, AND THE REFUND OF SUCH ADDITIONAL CONTRIBUTIONS
 SHALL BE THE NET AMOUNT OF SUCH CONTRIBUTIONS,  TOGETHER  WITH  INTEREST
 THEREON IN ACCORDANCE WITH THE PROVISIONS OF SUCH SUBPARAGRAPH.
   10.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, THE
 PROVISIONS OF SECTION ONE HUNDRED THIRTY-EIGHT-B OF THIS  CHAPTER  SHALL
 NOT  BE  APPLICABLE  TO  THE  ADDITIONAL  MEMBER CONTRIBUTIONS WHICH ARE
 REQUIRED BY THIS SUBDIVISION.
   11. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  THE
 ADDITIONAL  MEMBER  CONTRIBUTIONS WHICH ARE REQUIRED BY THIS SUBDIVISION
 SHALL NOT BE REDUCED UNDER ANY PROGRAM FOR INCREASED-TAKE-HOME-PAY.
   § 5. The retirement and social security law is amended by adding a new
 section 604-j to read as follows:
   § 604-J. TWENTY-FIVE YEAR RETIREMENT PROGRAM FOR WATER  SUPPLY  POLICE
 MEMBERS.  A.    DEFINITIONS.  THE FOLLOWING WORDS AND PHRASES AS USED IN
 THIS SECTION SHALL HAVE THE FOLLOWING MEANINGS UNLESS A DIFFERENT  MEAN-
 ING IS PLAINLY REQUIRED BY THE CONTEXT.
   1.  "WATER SUPPLY POLICE MEMBER" SHALL MEAN A MEMBER OF THE RETIREMENT
 SYSTEM WHO IS EMPLOYED BY THE CITY OF NEW YORK IN A POSITION REFERRED TO
 BY PARAGRAPH (O) OF SUBDIVISION THIRTY-FOUR OF SECTION 1.20 OF THE CRIM-
 INAL PROCEDURE LAW.
   2. "TWENTY-FIVE YEAR RETIREMENT PROGRAM" SHALL MEAN ALL THE TERMS  AND
 CONDITIONS OF THIS SECTION.
   3.  "STARTING  DATE  OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM" SHALL
 MEAN THE EFFECTIVE DATE OF THIS  SECTION,  AS  SUCH  DATE  IS  CERTIFIED
 PURSUANT TO SECTION FORTY-ONE OF THE LEGISLATIVE LAW.
   4. "PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM" SHALL MEAN
 ANY  WATER  SUPPLY POLICE MEMBER WHO, UNDER THE APPLICABLE PROVISIONS OF
 SUBDIVISION B OF THIS SECTION, IS ENTITLED TO THE RIGHTS,  BENEFITS  AND
 PRIVILEGES  AND  IS  SUBJECT  TO THE OBLIGATIONS OF THE TWENTY-FIVE YEAR
 RETIREMENT PROGRAM, AS APPLICABLE TO HIM OR HER.
   5. "DISCONTINUED MEMBER" SHALL MEAN A PARTICIPANT IN  THE  TWENTY-FIVE
 YEAR  RETIREMENT  PROGRAM WHO, WHILE HE OR SHE WAS A WATER SUPPLY POLICE
 MEMBER, DISCONTINUED SERVICE AS SUCH A MEMBER  AND  HAS  A  RIGHT  TO  A
 DEFERRED VESTED BENEFIT UNDER SUBDIVISION D OF THIS SECTION.
   6.  "ADMINISTRATIVE  CODE"  SHALL  MEAN THE ADMINISTRATIVE CODE OF THE
 CITY OF NEW YORK.
   B. PARTICIPATION IN TWENTY-FIVE YEAR RETIREMENT PROGRAM. 1.    SUBJECT
 TO  THE  PROVISIONS OF PARAGRAPHS SIX AND SEVEN OF THIS SUBDIVISION, ANY
 PERSON WHO IS A WATER SUPPLY POLICE MEMBER ON THE STARTING DATE  OF  THE
 TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM  AND  WHO, AS SUCH A WATER SUPPLY
 POLICE MEMBER OR OTHERWISE LAST BECAME SUBJECT TO THE PROVISIONS OF THIS
 ARTICLE PRIOR TO SUCH STARTING DATE, MAY ELECT TO BECOME  A  PARTICIPANT
 IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM BY FILING, WITHIN ONE HUNDRED
 EIGHTY  DAYS  AFTER THE STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT
 PROGRAM, A DULY EXECUTED APPLICATION FOR  SUCH  PARTICIPATION  WITH  THE
 RETIREMENT  SYSTEM  OF WHICH SUCH PERSON IS A MEMBER, PROVIDED HE OR SHE

 S. 7032                            10
 
 IS SUCH A WATER SUPPLY POLICE MEMBER ON THE  DATE  SUCH  APPLICATION  IS
 FILED.
   2.  SUBJECT  TO  THE  PROVISIONS  OF  PARAGRAPHS SIX AND SEVEN OF THIS
 SUBDIVISION, ANY PERSON WHO BECOMES A WATER SUPPLY POLICE  MEMBER  AFTER
 THE STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM AND WHO, AS
 SUCH  A  WATER SUPPLY POLICE MEMBER OR OTHERWISE, LAST BECAME SUBJECT TO
 THE PROVISIONS OF THIS ARTICLE PRIOR TO SUCH STARTING DATE, MAY ELECT TO
 BECOME A PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM  BY
 FILING,  WITHIN  ONE  HUNDRED  EIGHTY  DAYS  AFTER BECOMING SUCH A WATER
 SUPPLY POLICE MEMBER, A DULY EXECUTED APPLICATION FOR SUCH PARTICIPATION
 WITH THE RETIREMENT SYSTEM FOR WHICH SUCH PERSON IS A  MEMBER,  PROVIDED
 HE OR SHE IS SUCH A WATER SUPPLY POLICE MEMBER ON THE DATE SUCH APPLICA-
 TION IS FILED.
   3. ANY ELECTION TO BE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
 PROGRAM SHALL BE IRREVOCABLE.
   4.  EACH  WATER  SUPPLY  POLICE  MEMBER  WHO  BECOMES  SUBJECT  TO THE
 PROVISIONS OF THIS ARTICLE ON OR AFTER THE STARTING DATE OF THE  TWENTY-
 FIVE  YEAR  RETIREMENT PROGRAM SHALL BECOME A PARTICIPANT IN THE TWENTY-
 FIVE YEAR RETIREMENT PROGRAM ON THE DATE HE OR SHE BECOMES SUCH A  WATER
 SUPPLY  POLICE MEMBER. PROVIDED, HOWEVER, A PERSON SUBJECT TO THIS PARA-
 GRAPH WHO HAS EXCEEDED AGE THIRTY UPON EMPLOYMENT AS SUCH A MEMBER SHALL
 BE EXEMPT FROM PARTICIPATION IN THE TWENTY-FIVE YEAR RETIREMENT  PROGRAM
 IF  SUCH PERSON ELECTS NOT TO PARTICIPATE BY FILING A DULY EXECUTED FORM
 WITH THE RETIREMENT SYSTEM WITHIN ONE HUNDRED EIGHTY  DAYS  OF  BECOMING
 SUCH A MEMBER.
   5.  WHERE  ANY  PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
 SHALL CEASE TO BE EMPLOYED BY THE CITY OF NEW YORK  AS  A  WATER  SUPPLY
 POLICE  MEMBER,  HE  OR  SHE  SHALL  CEASE TO BE SUCH A PARTICIPANT AND,
 DURING ANY PERIOD IN WHICH SUCH PERSON IS NOT SO  EMPLOYED,  HE  OR  SHE
 SHALL  NOT  BE  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
 AND SHALL NOT BE ELIGIBLE FOR THE BENEFITS  OF  SUBDIVISION  C  OF  THIS
 SECTION.
   6.  WHERE  ANY  PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
 TERMINATES SERVICE AS A WATER SUPPLY POLICE MEMBER AND RETURNS  TO  SUCH
 SERVICE AS A WATER SUPPLY POLICE MEMBER AT A LATER DATE, HE OR SHE SHALL
 AGAIN BECOME SUCH A PARTICIPANT ON THAT DATE.
   7.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, ANY
 PERSON WHO IS ELIGIBLE TO ELECT TO BECOME A PARTICIPANT IN  THE  TWENTY-
 FIVE  YEAR  RETIREMENT  PROGRAM PURSUANT TO PARAGRAPH ONE OR TWO OF THIS
 SUBDIVISION FOR THE FULL ONE HUNDRED EIGHTY DAY PERIOD PROVIDED  FOR  IN
 SUCH  APPLICABLE  PARAGRAPH AND WHO FAILS TO TIMELY FILE A DULY EXECUTED
 APPLICATION FOR SUCH PARTICIPATION WITH THE RETIREMENT SYSTEM, SHALL NOT
 THEREAFTER BE ELIGIBLE TO BECOME A PARTICIPANT IN SUCH PROGRAM.
   C. SERVICE RETIREMENT BENEFITS. 1. A PARTICIPANT  IN  THE  TWENTY-FIVE
 YEAR RETIREMENT PROGRAM:
   (I)  WHO  HAS COMPLETED TWENTY-FIVE OR MORE YEARS OF CREDITED SERVICE;
 AND
   (II) WHO HAS PAID, BEFORE THE EFFECTIVE DATE OF RETIREMENT, ALL  ADDI-
 TIONAL  MEMBER  CONTRIBUTIONS AND INTEREST (IF ANY) REQUIRED BY SUBDIVI-
 SION E OF THIS SECTION; AND
   (III) WHO FILES WITH THE RETIREMENT SYSTEM OF WHICH HE  OR  SHE  IS  A
 MEMBER AN APPLICATION FOR SERVICE RETIREMENT SETTING FORTH AT THAT TIME,
 NOT  LESS THAN THIRTY DAYS SUBSEQUENT TO THE EXECUTION AND FILING THERE-
 OF, HE OR SHE DESIRES TO BE RETIRED; AND
   (IV) WHO SHALL BE A PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  RETIREMENT
 PROGRAM  AT  THE  TIME  SO SPECIFIED FOR HIS OR HER RETIREMENT; SHALL BE

 S. 7032                            11
 
 RETIRED PURSUANT TO THE  PROVISIONS  OF  THIS  SECTION  AFFORDING  EARLY
 SERVICE RETIREMENT.
   2. (I) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, AND
 SUBJECT  TO  THE  PROVISIONS  OF  PARAGRAPH SIX OF SUBDIVISION E OF THIS
 SECTION, THE EARLY SERVICE RETIREMENT BENEFIT FOR  PARTICIPANTS  IN  THE
 TWENTY-FIVE YEAR RETIREMENT PROGRAM WHO RETIRE PURSUANT TO PARAGRAPH ONE
 OF THIS SUBDIVISION SHALL BE A RETIREMENT ALLOWANCE CONSISTING OF:
   (A)  AN  AMOUNT, ON ACCOUNT OF THE REQUIRED MINIMUM PERIOD OF SERVICE,
 EQUAL TO FIFTY PERCENT OF HIS OR HER FINAL AVERAGE SALARY; PLUS
   (B) AN AMOUNT ON ACCOUNT OF CREDITED  SERVICE,  OR  FRACTION  THEREOF,
 BEYOND  SUCH  REQUIRED MINIMUM PERIOD OF SERVICE EQUAL TO TWO PERCENT OF
 HIS OR HER FINAL SALARY;
   (II)  THE  MAXIMUM  RETIREMENT  ALLOWANCE  COMPUTED  WITHOUT  OPTIONAL
 MODIFICATION  PAYABLE  PURSUANT  TO  SUBPARAGRAPH  (I) OF THIS PARAGRAPH
 SHALL EQUAL THAT PAYABLE UPON COMPLETION OF THIRTY YEARS OF SERVICE.
   D. VESTING. 1.  A  PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR  RETIREMENT
 PROGRAM:
   (I)  WHO  DISCONTINUES  SERVICE  AS  SUCH A PARTICIPANT, OTHER THAN BY
 DEATH OR RETIREMENT; AND
   (II) WHO PRIOR TO SUCH DISCONTINUANCE, COMPLETED FIVE  BUT  LESS  THAN
 TWENTY-FIVE YEARS OF CREDITED SERVICE; AND
   (III) WHO, SUBJECT TO THE PROVISIONS OF PARAGRAPH SEVEN OF SUBDIVISION
 E  OF  THIS  SECTION,  HAS PAID, PRIOR TO SUCH DISCONTINUANCE, ALL ADDI-
 TIONAL MEMBER CONTRIBUTIONS AND INTEREST (IF ANY) REQUIRED  BY  SUBDIVI-
 SION E OF THIS SECTION; AND
   (IV)  WHO DOES NOT WITHDRAW IN WHOLE OR IN PART HIS OR HER ACCUMULATED
 MEMBER CONTRIBUTIONS PURSUANT TO SECTION SIX HUNDRED  THIRTEEN  OF  THIS
 ARTICLE UNLESS SUCH PARTICIPANT THEREAFTER RETURNS TO PUBLIC SERVICE AND
 REPAYS  THE  AMOUNTS  SO  WITHDRAWN, TOGETHER WITH INTEREST, PURSUANT TO
 SUCH SECTION SIX HUNDRED  THIRTEEN;  SHALL  BE  ENTITLED  TO  RECEIVE  A
 DEFERRED VESTED BENEFIT AS PROVIDED IN THIS SUBDIVISION.
   2. (I) UPON SUCH DISCONTINUANCE UNDER THE CONDITIONS AND IN COMPLIANCE
 WITH  THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION, SUCH DEFERRED
 VESTED BENEFIT SHALL VEST AUTOMATICALLY.
   (II) SUCH VESTED BENEFIT SHALL BECOME PAYABLE ON THE EARLIEST DATE  ON
 WHICH  SUCH  DISCONTINUED  MEMBER COULD HAVE RETIRED FOR SERVICE IF SUCH
 DISCONTINUANCE HAD NOT OCCURRED.
   3. SUBJECT TO THE PROVISIONS OF PARAGRAPH SEVEN OF  SUBDIVISION  E  OF
 THIS  SECTION, SUCH DEFERRED VESTED BENEFIT SHALL BE A RETIREMENT ALLOW-
 ANCE CONSISTING OF AN AMOUNT EQUAL TO TWO PERCENT OF  SUCH  DISCONTINUED
 MEMBER'S  FINAL  AVERAGE  SALARY,  MULTIPLIED  BY THE NUMBER OF YEARS OF
 CREDITED SERVICE.
   E. ADDITIONAL MEMBER CONTRIBUTIONS.  1.  IN  ADDITION  TO  THE  MEMBER
 CONTRIBUTIONS  REQUIRED BY SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE,
 EACH PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM  SHALL
 CONTRIBUTE  TO  THE  RETIREMENT  SYSTEM  OF  WHICH HE OR SHE IS A MEMBER
 (SUBJECT TO THE APPLICABLE PROVISIONS OF SUBDIVISION D  OF  SECTION  SIX
 HUNDRED  THIRTEEN  OF  THIS ARTICLE) AN ADDITIONAL SIX PERCENT OF HIS OR
 HER COMPENSATION EARNED FROM (I) ALL CREDITED SERVICE, AS A  PARTICIPANT
 IN  THE  TWENTY-FIVE  YEAR  RETIREMENT PROGRAM, RENDERED ON OR AFTER THE
 STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM, AND  (II)  ALL
 CREDITED  SERVICE  AFTER  SUCH  PERSON  CEASES  TO BE A PARTICIPANT, BUT
 BEFORE HE OR SHE AGAIN BECOMES A PARTICIPANT PURSUANT TO  PARAGRAPH  SIX
 OF  SUBDIVISION B OF THIS SECTION. THE ADDITIONAL CONTRIBUTIONS REQUIRED
 BY THIS SUBDIVISION SHALL BE IN LIEU OF ADDITIONAL MEMBER  CONTRIBUTIONS
 REQUIRED BY SUBDIVISION D OF SECTION SIX HUNDRED FOUR-C OF THIS ARTICLE,

 S. 7032                            12
 
 AS  ADDED  BY CHAPTER NINETY-SIX OF THE LAWS OF NINETEEN HUNDRED NINETY-
 FIVE, AND NO MEMBER MAKING CONTRIBUTIONS PURSUANT TO THIS SECTION  SHALL
 BE  REQUIRED  TO  MAKE  CONTRIBUTIONS  PURSUANT TO SUCH SUBDIVISION D OF
 SECTION SIX HUNDRED FOUR-C OF THIS ARTICLE.
   2.  A  PARTICIPANT  IN  THE  TWENTY-FIVE YEAR RETIREMENT PROGRAM SHALL
 CONTRIBUTE ADDITIONAL MEMBER CONTRIBUTIONS UNTIL THE LATER  OF  (I)  THE
 FIRST  ANNIVERSARY  OF THE STARTING DATE OF THE TWENTY-FIVE YEAR RETIRE-
 MENT PROGRAM, OR (II) THE DATE ON WHICH HE OR SHE COMPLETES THIRTY YEARS
 OF CREDITED SERVICE AS A WATER SUPPLY POLICE MEMBER.
   3. COMMENCING WITH THE FIRST FULL PAYROLL  PERIOD  AFTER  EACH  PERSON
 BECOMES  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM, ADDI-
 TIONAL MEMBER CONTRIBUTIONS AT THE RATE SPECIFIED IN  PARAGRAPH  ONE  OF
 THIS SUBDIVISION SHALL BE DEDUCTED (SUBJECT TO THE APPLICABLE PROVISIONS
 OF  SUBDIVISION  D OF SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE) FROM
 THE COMPENSATION OF SUCH PARTICIPANT ON EACH AND EVERY PAYROLL  OF  SUCH
 PARTICIPANT  FOR  EACH  AND  EVERY PAYROLL PERIOD FOR WHICH HE OR SHE IS
 SUCH A PARTICIPANT.
   4. (I) EACH PARTICIPANT IN THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM
 SHALL  BE CHARGED WITH A CONTRIBUTION DEFICIENCY CONSISTING OF THE TOTAL
 AMOUNTS OF ADDITIONAL MEMBER CONTRIBUTIONS SUCH PERSON  IS  REQUIRED  TO
 MAKE  PURSUANT  TO  PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION WHICH ARE
 NOT DEDUCTED FROM HIS OR HER COMPENSATION PURSUANT TO PARAGRAPH THREE OF
 THIS SUBDIVISION, IF ANY, TOGETHER  WITH  INTEREST  THEREON,  COMPOUNDED
 ANNUALLY,  AND  COMPUTED  IN  ACCORDANCE WITH THE PROVISIONS OF SUBPARA-
 GRAPHS (II) AND (III) OF THIS PARAGRAPH.
   (II) (A) THE INTEREST REQUIRED TO BE PAID ON EACH SUCH  AMOUNT  SPECI-
 FIED  IN SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL ACCRUE FROM THE END OF
 THE PAYROLL PERIOD FOR WHICH SUCH AMOUNT WOULD HAVE BEEN  DEDUCTED  FROM
 COMPENSATION  IF  HE  OR  SHE HAD BEEN A PARTICIPANT AT THE BEGINNING OF
 THAT PAYROLL PERIOD AND  SUCH  DEDUCTION  HAD  BEEN  REQUIRED  FOR  SUCH
 PAYROLL PERIOD, UNTIL SUCH AMOUNT IS PAID TO THE RETIREMENT SYSTEM.
   (B)  THE RATE OF INTEREST TO BE APPLIED TO EACH SUCH AMOUNT DURING THE
 PERIOD FOR WHICH INTEREST ACCRUES ON THAT AMOUNT SHALL BE EQUAL  TO  THE
 RATE  OR  RATES  OF INTEREST REQUIRED BY LAW TO BE USED DURING THAT SAME
 PERIOD TO CREDIT INTEREST ON THE ACCUMULATED  DEDUCTIONS  OF  RETIREMENT
 SYSTEM MEMBERS.
   (III)  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH FIVE OF THIS SUBDIVI-
 SION, NO INTEREST SHALL BE DUE ON ANY UNPAID ADDITIONAL MEMBER  CONTRIB-
 UTIONS  WHICH  ARE  NOT ATTRIBUTABLE TO A PERIOD PRIOR TO THE FIRST FULL
 PAYROLL PERIOD REFERRED TO IN PARAGRAPH THREE OF THIS SUBDIVISION.
   5. (I) SHOULD ANY PERSON WHO, PURSUANT TO SUBPARAGRAPH (II)  OF  PARA-
 GRAPH TEN OF THIS SUBDIVISION, HAS RECEIVED A REFUND OF HIS OR HER ADDI-
 TIONAL MEMBER CONTRIBUTIONS INCLUDING ANY INTEREST PAID ON SUCH CONTRIB-
 UTIONS,  AGAIN  BECOME  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
 PROGRAM PURSUANT TO PARAGRAPH SIX OF SUBDIVISION B OF THIS  SECTION,  AN
 APPROPRIATE  AMOUNT SHALL BE INCLUDED IN SUCH PARTICIPANT'S CONTRIBUTION
 DEFICIENCY (INCLUDING INTEREST THEREON AS CALCULATED PURSUANT TO SUBPAR-
 AGRAPH (II) OF THIS PARAGRAPH) FOR ANY CREDITED SERVICE FOR  WHICH  SUCH
 PERSON  RECEIVED  A  REFUND  OF  SUCH  ADDITIONAL  MEMBER  CONTRIBUTIONS
 (INCLUDING ANY AMOUNT OF AN UNPAID LOAN  BALANCE  DEEMED  TO  HAVE  BEEN
 RETURNED  TO  SUCH  PERSON PURSUANT TO PARAGRAPH TWELVE OF THIS SUBDIVI-
 SION), AS IF SUCH ADDITIONAL MEMBER CONTRIBUTIONS NEVER HAD BEEN PAID.
   (II) (A) INTEREST ON A PARTICIPANT'S ADDITIONAL  MEMBER  CONTRIBUTIONS
 INCLUDED  IN  SUCH  PARTICIPANT'S  CONTRIBUTION  DEFICIENCY  PURSUANT TO
 SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL BE CALCULATED AS IF SUCH  ADDI-
 TIONAL MEMBER CONTRIBUTIONS HAD NEVER BEEN PAID BY SUCH PARTICIPANT, AND

 S. 7032                            13

 SUCH  INTEREST  SHALL ACCRUE FROM THE END OF THE PAYROLL PERIOD TO WHICH
 AN AMOUNT OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS IS ATTRIBUTABLE, UNTIL
 SUCH AMOUNT IS PAID TO THE RETIREMENT SYSTEM.
   (B)  THE RATE OF INTEREST TO BE APPLIED TO EACH SUCH AMOUNT DURING THE
 PERIOD FOR WHICH INTEREST ACCRUES ON THAT AMOUNT SHALL BE  FIVE  PERCENT
 PER ANNUM, COMPOUNDED ANNUALLY.
   6.  WHERE  A PARTICIPANT WHO IS OTHERWISE ELIGIBLE FOR SERVICE RETIRE-
 MENT PURSUANT TO SUBDIVISION C OF THIS SECTION DID  NOT,  PRIOR  TO  THE
 EFFECTIVE  DATE  OF  RETIREMENT, PAY THE ENTIRE AMOUNT OF A CONTRIBUTION
 DEFICIENCY CHARGEABLE TO HIM OR HER PURSUANT TO PARAGRAPHS FOUR AND FIVE
 OF THIS SUBDIVISION, OR REPAY THE ENTIRE AMOUNT OF A LOAN OF HIS OR  HER
 ADDITIONAL  MEMBER  CONTRIBUTIONS  PURSUANT  TO PARAGRAPH ELEVEN OF THIS
 SUBDIVISION (INCLUDING ACCRUED INTEREST ON SUCH LOAN), THAT PARTICIPANT,
 NEVERTHELESS, SHALL BE ELIGIBLE TO RETIRE PURSUANT TO SUBDIVISION  C  OF
 THIS SECTION, PROVIDED, HOWEVER, THAT SUCH PARTICIPANT'S SERVICE RETIRE-
 MENT  BENEFIT CALCULATED PURSUANT TO PARAGRAPH TWO OF SUCH SUBDIVISION C
 SHALL BE REDUCED BY A LIFE ANNUITY (CALCULATED IN  ACCORDANCE  WITH  THE
 METHOD  SET  FORTH IN SUBDIVISION I OF SECTION SIX HUNDRED THIRTEEN-B OF
 THIS ARTICLE) WHICH IS ACTUARIALLY EQUIVALENT TO:
   (I) THE AMOUNT OF ANY UNPAID  CONTRIBUTION  DEFICIENCY  CHARGEABLE  TO
 SUCH  MEMBER  PURSUANT  TO PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION;
 PLUS
   (II) THE AMOUNT OF ANY UNPAID BALANCE OF A LOAN OF HIS  OR  HER  ADDI-
 TIONAL  MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH ELEVEN OF THIS SUBDI-
 VISION (INCLUDING ACCRUED INTEREST ON SUCH LOAN).
   7. WHERE A PARTICIPANT WHO IS OTHERWISE ELIGIBLE FOR A VESTED RIGHT TO
 A DEFERRED BENEFIT PURSUANT TO SUBDIVISION D OF THIS  SECTION  DID  NOT,
 PRIOR TO THE DATE OF DISCONTINUANCE OF SERVICE, PAY THE ENTIRE AMOUNT OF
 A  CONTRIBUTION  DEFICIENCY  CHARGEABLE  TO HIM OR HER PURSUANT TO PARA-
 GRAPHS FOUR AND FIVE OF THIS SUBDIVISION, OR REPAY THE ENTIRE AMOUNT  OF
 A  LOAN  OF HIS OR HER ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO PARA-
 GRAPH ELEVEN OF THIS SUBDIVISION (INCLUDING  ACCRUED  INTEREST  ON  SUCH
 LOAN),  THAT  PARTICIPANT,  NEVERTHELESS, SHALL BE ELIGIBLE FOR A VESTED
 RIGHT TO A DEFERRED BENEFIT PURSUANT TO SUBDIVISION D OF  THIS  SECTION,
 PROVIDED,  HOWEVER, THAT THE DEFERRED VESTED BENEFIT CALCULATED PURSUANT
 TO PARAGRAPH THREE OF SUCH SUBDIVISION D SHALL  BE  REDUCED  BY  A  LIFE
 ANNUITY  (CALCULATED IN ACCORDANCE WITH THE METHOD SET FORTH IN SUBDIVI-
 SION I OF SECTION SIX HUNDRED THIRTEEN-B OF THIS ARTICLE) WHICH IS ACTU-
 ARIALLY EQUIVALENT TO:
   (I) THE AMOUNT OF ANY UNPAID  CONTRIBUTION  DEFICIENCY  CHARGEABLE  TO
 SUCH  MEMBER  PURSUANT  TO PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION;
 PLUS
   (II) THE AMOUNT OF ANY UNPAID BALANCE OF A LOAN OF HIS  OR  HER  ADDI-
 TIONAL  MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH ELEVEN OF THIS SUBDI-
 VISION (INCLUDING ACCRUED INTEREST ON SUCH LOAN).
   8. THE HEAD OF A RETIREMENT SYSTEM WHICH INCLUDES PARTICIPANTS IN  THE
 TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM IN ITS MEMBERSHIP MAY, CONSISTENT
 WITH THE PROVISIONS OF THIS SUBDIVISION, PROMULGATE REGULATIONS FOR  THE
 PAYMENT OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS, AND ANY INTEREST THERE-
 ON, BY SUCH PARTICIPANTS (INCLUDING THE DEDUCTION OF SUCH CONTRIBUTIONS,
 AND ANY INTEREST THEREON, FROM THE PARTICIPANT'S COMPENSATION).
   9.  SUBJECT  TO  THE  PROVISIONS  OF  PARAGRAPHS SIX AND SEVEN OF THIS
 SUBDIVISION, WHERE A PARTICIPANT HAS NOT PAID IN FULL  ANY  CONTRIBUTION
 DEFICIENCY CHARGEABLE TO HIM OR HER PURSUANT TO PARAGRAPHS FOUR AND FIVE
 OF  THIS  SUBDIVISION,  AND  A  BENEFIT,  OTHER  THAN A REFUND OF MEMBER
 CONTRIBUTIONS PURSUANT TO SECTION SIX HUNDRED THIRTEEN OF  THIS  ARTICLE

 S. 7032                            14
 
 OR  A REFUND OF ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO SUBPARAGRAPH
 (II) OF PARAGRAPH TEN OF THIS SUBDIVISION, BECOMES  PAYABLE  UNDER  THIS
 ARTICLE  TO  THE  PARTICIPANT OR TO HIS OR HER DESIGNATED BENEFICIARY OR
 ESTATE,  THE  ACTUARIAL  EQUIVALENT  OF  ANY SUCH UNPAID AMOUNT SHALL BE
 DEDUCTED FROM THE BENEFIT OTHERWISE PAYABLE.
   10. (I) SUCH ADDITIONAL MEMBER CONTRIBUTIONS (AND ANY INTEREST  THERE-
 ON)  SHALL  BE  PAID  INTO THE CONTINGENT RESERVE FUND OF THE RETIREMENT
 SYSTEM OF WHICH THE PARTICIPANT IS  A  MEMBER  AND  SHALL  NOT  FOR  ANY
 PURPOSE  BE  DEEMED  TO  BE MEMBER CONTRIBUTIONS OR ACCUMULATED CONTRIB-
 UTIONS OF A MEMBER UNDER SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE OR
 OTHERWISE WHILE HE OR SHE IS  A  PARTICIPANT  IN  THE  TWENTY-FIVE  YEAR
 RETIREMENT PROGRAM OR OTHERWISE.
   (II)  SHOULD  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
 WHO HAS RENDERED LESS THAN FIVE YEARS OF CREDITED SERVICE CEASE TO  HOLD
 A  POSITION  AS  A WATER SUPPLY POLICE MEMBER FOR ANY REASON WHATSOEVER,
 HIS OR HER ACCUMULATED ADDITIONAL MEMBER CONTRIBUTIONS MADE PURSUANT  TO
 THIS SUBDIVISION (TOGETHER WITH ANY INTEREST THEREON PAID TO THE RETIRE-
 MENT  SYSTEM)  MAY  BE  WITHDRAWN  BY  HIM OR HER PURSUANT TO PROCEDURES
 PROMULGATED IN REGULATIONS OF THE BOARD OF TRUSTEES  OF  THE  RETIREMENT
 SYSTEM,  TOGETHER  WITH INTEREST THEREON AT THE RATE OF FIVE PERCENT PER
 ANNUM, COMPOUNDED ANNUALLY.
   (III) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  (A)
 NO  PERSON SHALL BE PERMITTED TO WITHDRAW FROM THE RETIREMENT SYSTEM ANY
 ADDITIONAL MEMBER CONTRIBUTIONS PAID PURSUANT TO THIS SUBDIVISION OR ANY
 INTEREST PAID THEREON, EXCEPT PURSUANT TO AND  IN  ACCORDANCE  WITH  THE
 PRECEDING  SUBPARAGRAPHS  OF THIS PARAGRAPH; AND (B) NO PERSON, WHILE HE
 OR SHE IS A PARTICIPANT IN  THE  TWENTY-FIVE  YEAR  RETIREMENT  PROGRAM,
 SHALL  BE PERMITTED TO WITHDRAW ANY SUCH ADDITIONAL MEMBER CONTRIBUTIONS
 OR ANY INTEREST PAID THEREON PURSUANT TO ANY OF THE  PRECEDING  SUBPARA-
 GRAPHS OF THIS PARAGRAPH OR OTHERWISE.
   11.  A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM SHALL BE
 PERMITTED TO BORROW FROM HIS  OR  HER  ADDITIONAL  MEMBER  CONTRIBUTIONS
 (INCLUDING  ANY  INTEREST  PAID THEREON) WHICH ARE CREDITED TO THE ADDI-
 TIONAL CONTRIBUTIONS ACCOUNT ESTABLISHED FOR  SUCH  PARTICIPANT  IN  THE
 CONTINGENT  RESERVE  FUND  OF THE RETIREMENT SYSTEM.  THE BORROWING FROM
 SUCH ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO THIS PARAGRAPH SHALL BE
 GOVERNED BY THE RIGHTS, PRIVILEGES, OBLIGATIONS AND PROCEDURES SET FORTH
 IN SECTION SIX HUNDRED THIRTEEN-B  OF  THIS  ARTICLE  WHICH  GOVERN  THE
 BORROWING  OF  MEMBER CONTRIBUTIONS MADE PURSUANT TO SECTION SIX HUNDRED
 THIRTEEN OF THIS ARTICLE. THE BOARD OF TRUSTEES OF THE RETIREMENT SYSTEM
 MAY,  CONSISTENT  WITH  THE  PROVISIONS  OF  THIS  SUBDIVISION  AND  THE
 PROVISIONS  OF  SECTION  SIX  HUNDRED THIRTEEN-B OF THIS ARTICLE AS MADE
 APPLICABLE TO THIS SUBDIVISION,  PROMULGATE  REGULATIONS  GOVERNING  THE
 BORROWING OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS.
   12.  WHENEVER  A  PERSON HAS AN UNPAID BALANCE OF A LOAN OF HIS OR HER
 ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO  PARAGRAPH  ELEVEN  OF  THIS
 SUBDIVISION AT THE TIME HE OR SHE BECOMES ENTITLED TO A REFUND OF HIS OR
 HER  ADDITIONAL  MEMBER  CONTRIBUTIONS  PURSUANT TO SUBPARAGRAPH (II) OF
 PARAGRAPH TEN OF THIS  SUBDIVISION,  THE  AMOUNT  OF  SUCH  UNPAID  LOAN
 BALANCE  (INCLUDING  ACCRUED  INTEREST)  SHALL  BE  DEEMED  TO HAVE BEEN
 RETURNED TO SUCH MEMBER, AND THE REFUND OF SUCH ADDITIONAL CONTRIBUTIONS
 SHALL BE THE NET AMOUNT OF SUCH CONTRIBUTIONS,  TOGETHER  WITH  INTEREST
 THEREON IN ACCORDANCE WITH THE PROVISIONS OF SUCH SUBPARAGRAPH (II).
   § 6. Subdivision d of section 613 of the retirement and social securi-
 ty law is amended by adding a new paragraph 12 to read as follows:

 S. 7032                            15
 
   12.  (I)  THE  CITY  OF  NEW YORK SHALL, IN THE CASE OF A WATER SUPPLY
 POLICE MEMBER (AS DEFINED IN PARAGRAPH ONE OF SUBDIVISION A  OF  SECTION
 SIX  HUNDRED FOUR-J OF THIS ARTICLE) WHO IS A PARTICIPANT IN THE TWENTY-
 FIVE YEAR RETIREMENT PROGRAM (AS DEFINED IN PARAGRAPH FOUR  OF  SUBDIVI-
 SION  A  OF  SUCH  SECTION  SIX  HUNDRED FOUR-J), PICK UP AND PAY TO THE
 RETIREMENT SYSTEM OF WHICH SUCH PARTICIPANT IS A MEMBER, ALL  ADDITIONAL
 MEMBER  CONTRIBUTIONS  WHICH  OTHERWISE WOULD BE REQUIRED TO BE DEDUCTED
 FROM SUCH MEMBER'S COMPENSATION PURSUANT TO PARAGRAPHS ONE  AND  TWO  OF
 SUBDIVISION  E  OF  SUCH  SECTION  SIX HUNDRED FOUR-J (NOT INCLUDING ANY
 ADDITIONAL MEMBER CONTRIBUTIONS DUE FOR ANY PERIOD PRIOR  TO  THE  FIRST
 FULL  PAYROLL  PERIOD REFERRED TO IN PARAGRAPH THREE OF SUCH SUBDIVISION
 E), AND SHALL EFFECT SUCH PICK UP ON EACH  AND  EVERY  PAYROLL  OF  SUCH
 PARTICIPANT FOR EACH AND EVERY PAYROLL PERIOD WITH RESPECT TO WHICH SUCH
 PARAGRAPH THREE WOULD OTHERWISE REQUIRE SUCH DEDUCTIONS.
   (II)  AN AMOUNT EQUAL TO THE AMOUNT OF ADDITIONAL CONTRIBUTIONS PICKED
 UP PURSUANT TO THIS PARAGRAPH SHALL BE DEDUCTED BY  SUCH  EMPLOYER  FROM
 THE  COMPENSATION  OF  SUCH MEMBER (AS SUCH COMPENSATION WOULD BE IN THE
 ABSENCE OF A PICK UP PROGRAM APPLICABLE TO HIM  OR  HER  HEREUNDER)  AND
 SHALL NOT BE PAID TO SUCH MEMBER.
   (III)  THE  ADDITIONAL MEMBER CONTRIBUTIONS PICKED UP PURSUANT TO THIS
 PARAGRAPH FOR ANY SUCH MEMBER SHALL BE PAID BY SUCH EMPLOYER IN LIEU  OF
 AN EQUAL AMOUNT OF ADDITIONAL MEMBER CONTRIBUTIONS OTHERWISE REQUIRED TO
 BE  PAID BY SUCH MEMBER UNDER THE APPLICABLE PROVISIONS OF SUBDIVISION E
 OF SECTION SIX HUNDRED FOUR-J OF THIS ARTICLE, AND SHALL BE DEEMED TO BE
 AND TREATED AS EMPLOYER CONTRIBUTIONS PURSUANT TO SECTION 414(H) OF  THE
 INTERNAL REVENUE CODE.
   (IV)  FOR  THE  PURPOSE  OF  DETERMINING THE RETIREMENT SYSTEM RIGHTS,
 BENEFITS AND PRIVILEGES OF ANY MEMBER WHOSE ADDITIONAL  MEMBER  CONTRIB-
 UTIONS  ARE  PICKED  UP PURSUANT TO THIS PARAGRAPH, SUCH PICKED UP ADDI-
 TIONAL MEMBER CONTRIBUTIONS SHALL BE DEEMED TO BE AND TREATED AS PART OF
 SUCH MEMBER'S  ADDITIONAL  MEMBER  CONTRIBUTIONS  UNDER  THE  APPLICABLE
 PROVISIONS  OF SUBDIVISION E OF SECTION SIX HUNDRED FOUR-J OF THIS ARTI-
 CLE.
   (V) WITH THE EXCEPTION OF FEDERAL INCOME TAX TREATMENT, THE ADDITIONAL
 MEMBER CONTRIBUTIONS PICKED UP PURSUANT TO PARAGRAPH (I) OF THIS  SUBDI-
 VISION SHALL FOR ALL OTHER PURPOSES, INCLUDING COMPUTATION OF RETIREMENT
 BENEFITS AND CONTRIBUTIONS BY EMPLOYERS AND EMPLOYEES, BE DEEMED EMPLOY-
 EE  SALARY.  NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED AS
 SUPERSEDING THE PROVISIONS OF SECTION FOUR HUNDRED  THIRTY-ONE  OF  THIS
 CHAPTER, OR ANY SIMILAR PROVISION OF LAW WHICH LIMITS THE SALARY BASE OF
 COMPUTING RETIREMENT BENEFITS PAYABLE BY A PUBLIC RETIREMENT SYSTEM.
   §  7.  Section  13-125.2 of the administrative code of the city of New
 York is amended by adding a new subdivision a-9 to read as follows:
   A-9. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, ON OR
 AFTER THE STARTING DATE FOR PICK UP, THE EMPLOYER RESPONSIBLE  FOR  PICK
 UP  SHALL,  IN  THE  CASE OF A WATER SUPPLY POLICE MEMBER (AS DEFINED IN
 PARAGRAPH TWO OF SUBDIVISION A OF SECTION FOUR HUNDRED  FORTY-FIVE-J  OF
 THE  RETIREMENT  AND  SOCIAL  SECURITY  LAW) WHO IS A PARTICIPANT IN THE
 TWENTY-FIVE YEAR IMPROVED BENEFIT  RETIREMENT  PROGRAM  (AS  DEFINED  IN
 PARAGRAPH  THREE  OF  SUCH  SUBDIVISION A OF SECTION FOUR HUNDRED FORTY-
 FIVE-J), PICK UP AND PAY TO THE RETIREMENT SYSTEM ALL ADDITIONAL  MEMBER
 CONTRIBUTIONS WHICH OTHERWISE WOULD BE REQUIRED TO BE DEDUCTED FROM SUCH
 MEMBER'S  COMPENSATION  PURSUANT  TO  SUBDIVISION D OF SUCH SECTION FOUR
 HUNDRED FORTY-FIVE-J, AND SHALL EFFECT SUCH PICK UP ON  EACH  AND  EVERY
 PAYROLL  OF  SUCH  PARTICIPANT  FOR  EACH  AND EVERY PAYROLL PERIOD WITH

 S. 7032                            16
 
 RESPECT TO  WHICH  SUCH  SUBDIVISION  D  WOULD  OTHERWISE  REQUIRE  SUCH
 DEDUCTIONS.
   §  8.  Subparagraph  (ii)  of  paragraph 1 of subdivision c of section
 13-125.2 of the administrative code of the city of New York, as  amended
 by chapter 682 of the laws of 2003, is amended to read as follows:
   (ii)  the  determination of the amount of such member's Tier I or Tier
 II nonuniformed-force member contributions eligible for pick up  by  the
 employer  or  additional  member  contributions required to be picked up
 pursuant to subdivision a-one, subdivision a-two,  subdivision  a-three,
 subdivision  a-four,  subdivision a-five, subdivision a-six, subdivision
 a-seven  [or],  subdivision  a-eight,  OR  SUBDIVISION  A-NINE  of  this
 section; and
   §  9.  Subdivision d of section 13-125.2 of the administrative code of
 the city of New York is amended by adding a new paragraph 2-h to read as
 follows:
   (2-H) FOR THE PURPOSE OF DETERMINING  THE  RETIREMENT  SYSTEM  RIGHTS,
 BENEFITS  AND PRIVILEGES OF ANY MEMBER WHO IS A PARTICIPANT IN THE TWEN-
 TY-FIVE YEAR IMPROVED BENEFIT RETIREMENT PROGRAM (AS  DEFINED  IN  PARA-
 GRAPH THREE OF SUBDIVISION A OF SECTION FOUR HUNDRED FORTY-FIVE-J OF THE
 RETIREMENT AND SOCIAL SECURITY LAW), THE ADDITIONAL MEMBER CONTRIBUTIONS
 OF  SUCH  PARTICIPANT  PICKED  UP PURSUANT TO SUBDIVISION A-NINE OF THIS
 SECTION SHALL BE DEEMED TO BE AND TREATED AS A  PART  OF  SUCH  MEMBER'S
 ADDITIONAL MEMBER CONTRIBUTIONS UNDER SUBDIVISION D OF SUCH SECTION FOUR
 HUNDRED FORTY-FIVE-J.
   § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis-
 trative  code  of the city of New York, as amended by chapter 682 of the
 laws of 2003, is amended to read as follows:
   (3) Interest on contributions picked up for any  Tier  I  or  Tier  II
 non-uniformed-force  member  pursuant  to this section (other than addi-
 tional member contributions picked up  pursuant  to  subdivision  a-one,
 subdivision  a-two, subdivision a-three, subdivision a-four, subdivision
 a-five,  subdivision  a-six,  subdivision  a-seven   [or],   subdivision
 a-eight, OR SUBDIVISION A-NINE of this section) shall accrue in favor of
 the member and be payable to the retirement system at the same rate, for
 the  same  time  periods,  in the same manner and under the same circum-
 stances as interest would be required to accrue in favor of  the  member
 and  be  payable  to the retirement system on such contributions if they
 were made by such member in the absence of a pick up program  applicable
 to such member under the provisions of this section.
   §  11. Subdivision a of section 603 of the retirement and social secu-
 rity law, as amended by chapter 18 of the laws of 2012,  is  amended  to
 read as follows:
   a.  The  service  retirement  benefit specified in section six hundred
 four of this article shall be payable to members who have met the  mini-
 mum  service  requirements  upon retirement and attainment of age sixty-
 two, other than members who are eligible for  early  service  retirement
 pursuant to subdivision c of section six hundred four-b of this article,
 subdivision c of section six hundred four-c of this article, subdivision
 d  of  section  six  hundred  four-d  of  this article, subdivision c of
 section six hundred four-e of this article, subdivision c of section six
 hundred four-f of this article, subdivision c  of  section  six  hundred
 four-g  of  this article, subdivision c of section six hundred four-h of
 this article [or], subdivision c of section six hundred four-i  of  this
 article, OR SUBDIVISION C OF SECTION SIX HUNDRED FOUR-J OF THIS ARTICLE,
 provided,  however, a member of a teachers' retirement system or the New
 York state and local employees' retirement system who first  joins  such

 S. 7032                            17

 system  before  January  first,  two  thousand  ten or a member who is a
 uniformed court officer or peace officer employed by the  unified  court
 system  who  first  becomes  a  member  of  the New York state and local
 employees' retirement system before April first, two thousand twelve may
 retire  without  reduction of his or her retirement benefit upon attain-
 ment of at least fifty-five years of age and  completion  of  thirty  or
 more years of service, provided, however, that a uniformed court officer
 or  peace officer employed by the unified court system who first becomes
 a member of the New York state and local employees' retirement system on
 or after January first, two thousand ten and retires  without  reduction
 of  his or her retirement benefit upon attainment of at least fifty-five
 years of age and completion of thirty or more years of service  pursuant
 to  this  section  shall  be  required  to make the member contributions
 required by subdivision f of section six hundred thirteen of this  arti-
 cle  for  all years of credited and creditable service, provided further
 that the [the] preceding provisions of this subdivision shall not  apply
 to a New York city revised plan member.
   §  12.  Nothing contained in sections six and eleven of this act shall
 be construed to create any contractual right with respect to members  to
 whom  such sections apply.  The provisions of such sections are intended
 to afford members the advantages of certain benefits  contained  in  the
 Internal  Revenue  Code,  and  the  effectiveness  and existence of such
 sections and benefits they confer are completely contingent thereon.
   § 13. This act shall take effect immediately, provided, however that:
   (a) The amendments to subdivision a of section 603 of  the  retirement
 and  social  security  law  made by section eleven of this act shall not
 affect the expiration of such subdivision as provided in subdivision (b)
 of section 13 of chapter 682 of the laws of 2003, and shall expire ther-
 ewith;
   (b) The provisions of section six of this act shall  remain  in  force
 and  effect  only  so  long  as,  pursuant to federal law, contributions
 picked up under section 613 of the retirement and  social  security  law
 are  not  includable  as gross income of a member for federal income tax
 purposes until distributed or made available to the member; and
   (c) The amendments to provisions of section 13-125.2 of  the  adminis-
 trative code of the city of New York made by sections seven, eight, nine
 and  ten  of this act shall not affect the expiration of such provisions
 as provided for in chapter 681 of the laws of 1992, as amended.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL:  This  proposed  legislation  would  amend  certain
 provisions  of  the  Retirement  and  Social Security Law (RSSL) and the
 Administrative Code of the City  of  New  York  (ACCNY),  and  add  RSSL
 Sections  445-j  and 604-j to establish a 25-Year Retirement Program for
 Tiers 2, 4, and 6 New York City Employees'  Retirement  System  (NYCERS)
 members  who  are  employed  in  the  title  of Water Supply Police (WSP
 25-Year Plans).
   Effective Date: Upon enactment.
   MEMBERS ELIGIBLE TO JOIN: Those NYCERS members who are sworn  officers
 of  the  water  supply  police  employed by the City of New York (City),
 appointed to protect the  sources,  works,  and  transmission  of  water
 supplied  to  the  City, and to protect persons on or in the vicinity of
 such water sources, works, and transmission pursuant to subdivision o of
 section 1.20 of the Criminal Procedure Law.
   For purposes of this  Fiscal  Note,  these  members  are  collectively
 referred to as "Water Supply Police Members."

 S. 7032                            18
 
   Participation in an applicable WSP 25-Year Plan is optional for anyone
 who  is  eligible to participate in the Plan on the date of enactment by
 filing an election form within 180 days of enactment. Anyone  who  is  a
 member  of  NYCERS  on  the  date  of enactment and subsequently becomes
 employed as a Water Supply Police Member also has 180 days upon becoming
 such a member to elect to join the applicable WSP 25-Year Plan.
   Any  Water  Supply Police Member who becomes a NYCERS member after the
 date of enactment is mandated into the Tier 6 WSP 25-Year Plan. However,
 if the member exceeds age 30 upon being mandated into  the  WSP  25-Year
 Plan, the member has the option to file an application to opt out of the
 Plan within 180 days of becoming a Water Supply Police Member.
   IMPACT  ON  BENEFITS: Currently, Water Supply Police Members generally
 participate in one of the NYCERS general plans (i.e. basic Tier  4  62/5
 Plan, Tier 6 63/10 Plan, or Improved Tier 4 Actuary Fiscal Note  2021-27
 for  LBDC  03630-01-1 Page 1 57/5, 55/25 Plans). There is currently only
 one active Tier 2 Water Supply Police Member, who  is  not  expected  to
 benefit  from the proposed legislation. Therefore, the following summary
 only applies to Tier 4 and Tier 6 Water Supply Police Members.
   The proposed legislation, if  enacted,  would  provide  the  following
 benefits to Water Supply Police Members under the WSP 25-Year Plans:
   * Service retirement benefit:
   * 50% of Final Average Salary (FAS) for the first 25 years of Credited
 Service, plus
   * 2% of FAS for each additional year of Credited Service up to a maxi-
 mum of 30 years of such service.
   * Final Average Salary:
   * Tier 4 - Three-Year Average (FAS3)
   * Tier 6 - Five-Year Average (FAS5)
   * Vested benefit:
   * Eligibility is:
   *  At least five, but less than 25, years of Credited Service for Tier
 4 and Tier 6 members.
   * Payable at:
   *The date the member would have completed 25 years of Credited Service
 for Tier 4 and Tier 6 members.
   * Amount:
   * 2% of FAS for each year of Credited Service.
   * Other benefits: Members of the proposed WSP 25-Year Plan  are  enti-
 tled  to the same disability and death benefits as other Tier 4 and Tier
 6 members under the respective basic plans.
   ADDITIONAL MEMBER CONTRIBUTIONS: Members of a  WSP  25-Year  Plan  are
 required  to  make, in addition to the Tier 4 Basic Member Contributions
 (BMC) of 3% and the Tier 6 BMC  ranging  from  3%  to  6%  depending  on
 defined  salary  scales,  Additional Member Contributions equal to 6% of
 compensation for all service as a Plan  participant  on  and  after  the
 starting  date  of  the Plan until the later of a maximum of 30 years of
 Credited Service or the one-year anniversary of  the  enactment  of  the
 Plan.
   FINANCIAL  IMPACT  - PRESENT VALUES: Based on the anticipated group of
 members joining the WSP 25-Year Plans and the actuarial assumptions  and
 methods  described  herein,  the  enactment of this proposed legislation
 would increase the Present Value of Future Benefits (PVFB)  by  approxi-
 mately  $6.7  million  and increase the Present Value of member contrib-
 utions by approximately $3.5 million. The net result is an  increase  in
 the Present Value of future employer contributions of approximately $3.2
 million.

 S. 7032                            19
 
   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  $3.8  million  offset by a
 decrease in the Present Value of future employer  Normal  Cost  of  $0.6
 million.
   FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
 ACCNY Section 13-638.2(k-2), new UAL attributable to benefit changes are
 to be amortized as determined by the Actuary but are generally amortized
 over the remaining working lifetime of those  impacted  by  the  benefit
 changes.  As  of  June  30,  2020, the remaining working lifetime of the
 Water Supply Police Members assumed to join the  WSP  25-Year  Plans  is
 approximately 12 years.
   For  the  purposes  of this Fiscal Note, the increase in UAL was amor-
 tized over a 12-year period (11 payments under the One-Year Lag  Method-
 ology  (OYLM))  using  level  dollar  payments.  This  payment  plus the
 increase in the Normal Cost results in an increase  in  annual  employer
 contributions of approximately $758,000 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, 2021 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 2023.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the Preliminary June 30, 2020 (Lag) actuarial valuation  of
 NYCERS  to  determine the Preliminary Fiscal Year 2022 employer contrib-
 utions.
   The 127 Water Supply Police Members as of June  30,  2020  assumed  to
 join  the  WSP  25-Year  Plans  had an average age of approximately 39.1
 years, average service of approximately 14.2 years, and an average sala-
 ry of approximately $75,300.
   ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of
 future  employer  contributions  and   annual   employer   contributions
 presented herein have been calculated based on the actuarial assumptions
 and  methods  in effect for the June 30, 2019 (Lag) actuarial valuations
 used to determine the Preliminary Fiscal  Year  2021  employer  contrib-
 utions of NYCERS.
   To  determine the impact of the elective nature of the proposed legis-
 lation, a subgroup of Water Supply Police Members was developed based on
 who could potentially benefit actuarially from WSP 25-Year Plan  partic-
 ipation.  The  net Present Value of future employer costs (i.e. the PVFB
 less the Present Value of future member contributions) of each  member's
 benefit was determined under their current plan and under the applicable
 WSP 25-Year Plan. If the net Present Value of future employer cost under
 the  WSP  25-Year Plan was greater than or equal to the Present Value of
 future employer cost under the member's current  plan,  the  member  was
 deemed to benefit actuarially.
   Based  on  this analysis, it was determined that those members who are
 mandated into the WSP 25-Year Plan in  the  future  will  generally  not
 benefit from Plan participation (i.e. they will have a decrease in Pres-
 ent  Value of future employer costs as compared to the Tier 6 63/10 Plan
 they would otherwise participate in, absent this proposed  legislation),
 and  therefore  the  costs  presented in this Fiscal Note are borne only
 from current NYCERS members who are assumed to benefit  from,  and  thus
 opt to join, the WSP 25-Year Plan.

 S. 7032                            20
 
   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 increases  in  the
 Present Value of Employer Contributions that are approximately 5% larger
 than  the results shown above and annual employer contributions that are
 approximately 3% larger 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  2021-27  dated  May  19,
 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.