S. 9277--A 2
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 PROBATION OFFICER MEMBER ON THE STARTING DATE OF THE
TWENTY-FIVE YEAR RETIREMENT PROGRAM AND WHO, AS SUCH A PROBATION OFFICER
MEMBER OR OTHERWISE, LAST BECAME SUBJECT TO THE PROVISIONS OF THIS ARTI-
CLE 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
IS SUCH A PROBATION OFFICER 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 PROBATION OFFICER MEMBER AFTER THE
STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM AND WHO, AS
SUCH A PROBATION OFFICER 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 PROBATION
OFFICER 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 PROBATION OFFICER MEMBER ON THE DATE SUCH APPLICATION IS
FILED.
3. ANY ELECTION TO BE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
PROGRAM SHALL BE IRREVOCABLE.
4. EACH PROBATION OFFICER MEMBER WHO BECOMES SUBJECT TO ANY OF 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
PROBATION OFFICER 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 PROBATION OFFI-
CER 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 PROBATION OFFICER MEMBER AND RETURNS TO SUCH
SERVICE AS A PROBATION OFFICER 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 WHAT TIME,
S. 9277--A 3
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
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-FIVE 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 ONE AND SEVEN-
TENTHS 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) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, WHO PRIOR TO SUCH DISCONTINUANCE, COMPLETED FIVE BUT LESS
THAN TWENTY-FIVE YEARS OF CREDITED SERVICE OR, IN THE CASE OF A PARTIC-
IPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
ED 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) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, 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 OR, IN THE CASE OF A PARTICIPANT
WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH VESTED BENEFIT SHALL
BECOME PAYABLE AT AGE SIXTY-THREE.
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 AND TWO-TENTHS 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
S. 9277--A 4
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 AND THREE-QUARTERS
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 PARTIC-
IPANT, BUT BEFORE HE OR SHE AGAIN BECOMES A PARTICIPANT PURSUANT TO
PARAGRAPH SIX OF SUBDIVISION B OF THIS SECTION. THE ADDITIONAL CONTRIB-
UTIONS REQUIRED BY THIS SUBDIVISION SHALL BE IN LIEU OF ADDITIONAL
MEMBER CONTRIBUTIONS REQUIRED BY (I) SUBDIVISION D OF SECTION SIX
HUNDRED FOUR-C OF THIS ARTICLE, AS ADDED BY CHAPTER NINETY-SIX OF THE
LAWS OF NINETEEN HUNDRED NINETY-FIVE, OR (II) SUBDIVISION F OF SECTION
SIX HUNDRED FOUR-D OF THIS ARTICLE, AND NO MEMBER MAKING CONTRIBUTIONS
PURSUANT TO THIS SECTION SHALL BE REQUIRED TO MAKE CONTRIBUTIONS PURSU-
ANT TO EITHER SUCH SUBDIVISION D OF SECTION SIX HUNDRED FOUR-C OF THIS
ARTICLE, OR SUCH SUBDIVISION F OF SECTION SIX HUNDRED FOUR-D 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 PROBATION OFFICER 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-
S. 9277--A 5
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 THIS SUBDIVISION), AS IF SUCH ADDI-
TIONAL 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
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, THAT PARTICIPANT, NEVERTHELESS, SHALL BE ELIGIBLE
TO RETIRE PURSUANT TO SUBDIVISION C OF THIS SECTION, PROVIDED, HOWEVER,
THAT SUCH PARTICIPANT'S SERVICE RETIREMENT BENEFIT CALCULATED PURSUANT
TO PARAGRAPH TWO OF SUCH SUBDIVISION C SHALL BE REDUCED BY A LIFE ANNUI-
TY (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 THE AMOUNT OF ANY UNPAID CONTRIBUTION DEFICIENCY CHARGEA-
BLE TO SUCH MEMBER PURSUANT TO PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI-
SION.
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, HE OR SHE NEVERTHELESS, SHALL
BE ELIGIBLE FOR A VESTED RIGHT TO A DEFERRED BENEFIT PURSUANT TO SUBDI-
VISION 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 SUBDIVISION I OF SECTION SIX HUNDRED THIRTEEN-B OF
THIS ARTICLE) WHICH IS ACTUARIALLY EQUIVALENT TO THE AMOUNT OF ANY
UNPAID CONTRIBUTION DEFICIENCY CHARGEABLE TO SUCH MEMBER PURSUANT TO
PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION.
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
S. 9277--A 6
CONTRIBUTIONS PURSUANT TO SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE
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 FIFTEEN YEARS OF CREDITED SERVICE CEASE TO
HOLD A POSITION AS A PROBATION OFFICER 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. NO MEMBER OF A PUBLIC RETIREMENT SYSTEM SHALL BE PERMITTED TO
BORROW ANY PORTION OF THE ADDITIONAL MEMBER CONTRIBUTIONS (INCLUDING ANY
INTEREST PAID THEREON BY THE PARTICIPANT) WHICH ARE SUBJECT TO THIS
SUBDIVISION.
§ 2. Subdivision a of section 603 of the retirement and social securi-
ty 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 D 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
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
S. 9277--A 7
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.
§ 3. Subdivision a of section 603 of the retirement and social securi-
ty law, as amended by chapter 19 of the laws of 2008, 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 D OF SECTION SIX HUNDRED FOUR-J OF THIS ARTICLE
provided, however, a member who is a peace officer employed by the
unified court system or a member of a teachers' retirement system or the
New York state and local employees' retirement system may retire 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.
§ 4. This act shall take effect immediately, provided that the amend-
ments to subdivision a of section 603 of the retirement and social secu-
rity law made by section two of this act shall not affect the expiration
and reversion of such subdivision pursuant to subdivision (b) of section
13 of chapter 682 of the laws of 2003, as amended, when upon such date
the provisions of section three of this act shall take effect.
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) to establish
a 25-Year Retirement Program for Tier 4 and Tier 6 New York City Employ-
ees' Retirement System (NYCERS) members who are employed in the title of
Probation Officer (Probation 25-Year Plan).
Effective Date: Upon enactment.
MEMBERS ELIGIBLE TO JOIN: NYCERS members who are employed as Probation
Officers (peace officers with the New York City Department of
Probation).
Participation in the Probation 25-Year Plan is optional for anyone who
is eligible to participate in the Plan on the date of enactment, and for
anyone who is a member of NYCERS on the date of enactment and subse-
quently becomes eligible to participate in the plan by becoming a
Probation Officer, by filing an election form within 180 days of enact-
ment for existing Probation Officers or within 180 days of becoming a
S. 9277--A 8
Probation Officer for existing NYCERS members. Once an election is made
to participate in the Plan, the election is irrevocable.
Any Probation Officer who becomes a Tier 6 NYCERS member after the
date of enactment would be mandated into the Probation 25-Year Plan.
IMPACT ON BENEFITS: Currently, Probation Officers are generally eligi-
ble to participate in one of the NYCERS general plans (i.e., basic Tier
4 62/5 Plan, Tier 6 63/10 Plan, which pursuant to Part TT of Chapter 56
of the Laws of 2022 is now a 63/5 Plan, or Improved Tier 4 57/5, 55/25
Plans).
The proposed legislation would provide the following benefits to
Probation Officers who participate in the Probation 25-Year Plan:
* Service retirement benefit:
o 55% of Final Average Salary (FAS) for the first 25 years of any
NYCERS credited service, plus
o 1.7% of FAS for each additional year of credited service, or frac-
tion thereof, exceeding 25 years up to a maximum of 30 years of such
service.
* Final Average Salary:
o Tier 4 - Three Year Average (FAS3)
o Tier 6 - Five Year Average (FAS5)
* Vested benefit:
o Eligibility:
[] Tier 4 - At least five, but less than 25, years of credited service
[] Tier 6 - At least 10, but less than 25, years of credited service
o Payable at:
[] Tier 4 - The date the member would have completed 25 years of cred-
ited service
[] Tier 6 - Age 63
o Amount:
[] 2.2% of FAS for each year of credited service
* Other benefits: Members of the proposed Probation 25-Year Plan are
entitled 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 the Probation 25-Year
Plans 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 6.75% of compensation for all service as a Plan participant on
and after the starting date of the Plan until the later of the one-year
anniversary of the effective date of the Plans or 30 years of credited
service.
FINANCIAL IMPACT - PRESENT VALUES: Based on the anticipated group of
members joining the Probation 25-Year Plan 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 $17.0 million and increase the Present Value of member contrib-
utions of approximately $4.4 million. The net result is an increase in
the Present Value of future employer contributions of approximately
$12.6 million.
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 $12.4 million plus an increase
in the Present Value of future employer Normal Cost of $0.2 million.
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-
S. 9277--A 9
tized as determined by the Actuary but generally over the remaining
working lifetime of those impacted by the benefit changes. As of June
30, 2021, the remaining working lifetime of the Probation 25-Year Plan
is approximately six years.
For the purposes of this Fiscal Note, the increase in UAL was amor-
tized over a six-year period (five payments under the One-Year Lag Meth-
odology) using level dollar payments. This payment plus the increase in
the Normal Cost results in an increase in annual employer contributions
of approximately $4.2 million 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 Final June 30, 2021 actuarial valuation of NYCERS.
In accordance with the One-Year Lag Methodology (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, 2021 (Lag) actuarial valuation of
NYCERS to determine the Preliminary Fiscal Year 2023 employer contrib-
utions.
The 326 NYCERS Probation Officers as of June 30, 2021 assumed to join
the Probation 25-year Plan had an average age of approximately 53.9
years, average service of approximately 25.7 years, and an average sala-
ry of approximately $82,700.
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 Preliminary June 30, 2021 (Lag) actuarial
valuations used to determine the Preliminary Fiscal Year 2023 employer
contributions of NYCERS.
To determine the impact of the elective nature of the proposed legis-
lation, a subgroup of NYCERS Probation Officers was developed based on
who could potentially benefit actuarially. 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 Probation 25-Year Plan. If the net
Present Value of future employer cost under the Probation 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 actu-
arially.
Based on this analysis, it was determined that those members who are
mandated into the Probation 25-Year Plan in the future will generally
not benefit under the Plan (i.e., they will have a decrease in Present
Value of future employer costs as compared to the Tier 6 63/10 (now
63/5) 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 Probation 25-Year Plan.
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
S. 9277--A 10
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, Michael J. Samet, am the Interim
Chief Actuary for, and independent of, the New York City Retirement
Systems and Pension Funds. I am a Fellow of the Society of Actuaries and
a Member of the American Academy of 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 2022-52 dated May 13,
2022 was prepared by the Interim Chief Actuary for the New York City
Employees' Retirement System. This estimate is intended for use only
during the 2022 Legislative Session.
