NY State Assembly Bill 2023-A7693A

Assembly Bill A7693A

2023-2024 Legislative Session

Permits certain twenty-five year retirement program dispatcher members to file elections not to participate

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Current Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 29, 2024	print number 7693a
Jan 29, 2024	amend and recommit to governmental employees
Jan 03, 2024	referred to governmental employees
Jun 06, 2023	referred to governmental employees

Bill Amendments

Original

A (Active)

2023-A7693 - Details

See Senate Version of this Bill:: S7181
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §604-e, R & SS L

2023-A7693 - Summary

Permits certain twenty-five year retirement program dispatcher members to file elections not to participate.

2023-A7693 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7693
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 2023
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   permitting  certain  twenty-five  year  retirement  program dispatcher
   members to file elections not to participate

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 604-e of the retirement and social security law, as
 added  by  chapter  576  of the laws of 2000, is amended by adding a new
 subdivision f to read as follows:
   F. 1.  NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO  THE  CONTRARY,  A
 DISPATCHER MEMBER WHO EXCEEDED AGE THIRTY UPON EMPLOYMENT AS A DISPATCH-
 ER  MEMBER AND FAILED TO FILE THEIR ELECTION NOT TO PARTICIPATE WITH THE
 RETIREMENT SYSTEM WITHIN ONE HUNDRED EIGHTY DAYS OF BECOMING A DISPATCH-
 ER MEMBER, AS REQUIRED BY PARAGRAPH  THREE  OF  SUBDIVISION  B  OF  THIS
 SECTION, MAY FILE SUCH AN ELECTION WITH THE RETIREMENT SYSTEM WITHIN ONE
 HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS SUBDIVISION.
   2.  THE RETIREMENT SYSTEM SHALL POST, AND ANNOUNCE ON ITS HOMEPAGE THE
 POSTING OF, THE  FORM  AND  CORRESPONDING  INSTRUCTIONS  FOR  DISPATCHER
 MEMBERS  TO ELECT NOT TO PARTICIPATE ON ITS WEBSITE NO LATER THAN THIRTY
 DAYS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION.
   3. IF THE RETIREMENT SYSTEM FAILS TO POST AND ANNOUNCE  THE  FORM  AND
 CORRESPONDING INSTRUCTIONS NO LATER THAN THIRTY DAYS AFTER THE EFFECTIVE
 DATE  OF THIS SUBDIVISION, AS PRESCRIBED BY PARAGRAPH TWO OF THIS SUBDI-
 VISION, THE PERIOD FOR A DISPATCHER MEMBER TO ELECT NOT  TO  PARTICIPATE
 PRESCRIBED  BY  PARAGRAPH  ONE  OF THIS SUBDIVISION SHALL BE EXTENDED BY
 SIXTY  DAYS  FOR  EACH  MONTH  OR  PART  THEREOF  THAT  SUCH  FORM   AND
 INSTRUCTIONS ARE NOT POSTED TO THE RETIREMENT SYSTEM'S WEBSITE.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11083-02-3
 A. 7693                             2

 
   SUMMARY  OF  BILL: This proposed legislation would amend Section 604-e
 of the Retirement and Social Security Law to allow New York City Employ-
 ees' Retirement System (NYCERS) Tier  4  and  Tier  6  members  who  are
 members  of a Dispatcher 25-Year Retirement Plan and were older than age
 30  when  they joined the plan, another 180-day period to opt out of the
 plan.
   Effective Date: Upon enactment.
   BACKGROUND: Currently, Tier 4 or Tier 6 NYCERS members who exceed  age
 30  upon  being mandated into a Dispatcher 25-Year Plan, have the option
 to irrevocably opt out of the plan within 180 days. Members who opt  out
 of the plan are generally placed into one of the Tier 4 or Tier 6 under-
 lying plans.
   Under  the proposed legislation, such members who failed to opt out of
 the Plan in the original 180 days would have another 180-day  period  in
 which to opt out of the Plan.
   For  the  purposes of this Fiscal Note, it is assumed that members who
 opt out of the Dispatcher 25-Year Plan under  the  proposed  legislation
 would  be  entitled  to  an immediate refund of excess Additional Member
 Contributions (AMC), with interest.
   FINANCIAL IMPACT - PRESENT VALUES: Based on the anticipated  group  of
 members  opting  out  of  the  Dispatcher 25-Year Plan and the actuarial
 assumptions and methods described herein, the enactment of this proposed
 legislation would result in an increase in the present value  of  future
 employer contributions of approximately $4.3 million.
   This  net  increase is a result of an increase in the Present Value of
 Future Benefits  of  approximately  $2.4  million  (which  includes  the
 assumed  refund  of AMC balances) and a decrease in the present value of
 member contributions of approximately $1.9 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 $2.3 million and an increase in
 the present value of future employer Normal Cost of  approximately  $2.0
 million.
   FINANCIAL  IMPACT  -  ANNUAL  EMPLOYER CONTRIBUTIONS: The enactment of
 this proposed legislation would result in an initial increase in  annual
 employer  contributions of approximately $422,000 which is the result of
 an increase in the Normal Cost in addition to the UAL payment.
   New UAL attributable to benefit changes are generally  amortized  over
 the remaining working lifetime of those impacted by the benefit changes.
 The  remaining working lifetime for this group is approximately 14 years
 and the increase in UAL was therefore amortized over  a  14-year  period
 (13  payments  under  the  One-Year  Lag Methodology) using level dollar
 payments.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data  used  in the June 30, 2022 actuarial valuation of NYCERS to deter-
 mine the Preliminary Fiscal Year 2024 employer contributions.
   There were 53 members as of June 30, 2022 who  have  been  assumed  to
 benefit under the proposed legislation. These members had an average age
 of  approximately  46.0  years,  average  service  of approximately 13.0
 years, and an average salary of approximately $78,900.
   ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
 been calculated based on the actuarial assumptions and methods used  for
 the Preliminary Fiscal Year 2024 employer contributions of NYCERS.
   To  determine the impact of the elective nature of the proposed legis-
 lation, a subgroup of members was developed based on who is  assumed  to
 benefit actuarially by comparing the net present value of future employ-
 A. 7693                             3

 er  costs  of  each  member's benefit under their current plan and under
 their applicable underlying plan.
   For  the  purposes of this Fiscal Note, it is assumed that the changes
 would be reflected for the first time in the  June  30,  2022  actuarial
 valuation  of NYCERS used to determine employer contributions for Fiscal
 Year 2024.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on the realization of the actuarial assumptions used, demograph-
 ics of the impacted population, and other factors  such  as  investment,
 contribution,  and other risks. If actual experience deviates from actu-
 arial assumptions, the actual costs could differ  from  those  presented
 herein.
   Costs  are also dependent on the actuarial methods used, and therefore
 different actuarial methods could produce different results. Quantifying
 these risks is beyond the scope of this Fiscal Note.
   Not measured in this Fiscal Note are the following:
   *  The  initial  additional  administrative  costs  to  implement  the
 proposed legislation.
   *  The  impact  of  this  proposed legislation on Other Postemployment
 Benefit costs.
   STATEMENT OF ACTUARIAL OPINION: I, Marek  Tyszkiewicz,  am  the  Chief
 Actuary  for,  and  independent of, the New York City Retirement Systems
 and Pension Funds. I am an Associate of the Society of Actuaries  and  a
 Member of the American Academy of Actuaries. I am a member of NYCERS but
 do  not  believe  it impairs my objectivity and 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  2023-66  dated  June  1,
 2023  was prepared by the Chief Actuary for the New York City Employees'
 Retirement System. This estimate is intended for  use  only  during  the
 2023 Legislative Session.

2023-A7693A (ACTIVE) - Details

See Senate Version of this Bill:: S7181
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §604-e, R & SS L

2023-A7693A (ACTIVE) - Summary

Permits certain twenty-five year retirement program dispatcher members to file elections not to participate.

2023-A7693A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7693--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 2023
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental Employees -- recommitted to the Committee on
   Governmental Employees in accordance with Assembly Rule 3, sec.  2  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee

 AN ACT to amend the retirement and social security law, in  relation  to
   permitting  certain  twenty-five  year  retirement  program dispatcher
   members to file elections not to participate
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 604-e of the retirement and social security law, as
 added  by  chapter  576  of the laws of 2000, is amended by adding a new
 subdivision f to read as follows:
   F. 1.  NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO  THE  CONTRARY,  A
 DISPATCHER MEMBER WHO EXCEEDED AGE THIRTY UPON EMPLOYMENT AS A DISPATCH-
 ER  MEMBER AND FAILED TO FILE THEIR ELECTION NOT TO PARTICIPATE WITH THE
 RETIREMENT SYSTEM WITHIN ONE HUNDRED EIGHTY DAYS OF BECOMING A DISPATCH-
 ER MEMBER, AS REQUIRED BY PARAGRAPH  THREE  OF  SUBDIVISION  B  OF  THIS
 SECTION, MAY FILE SUCH AN ELECTION WITH THE RETIREMENT SYSTEM WITHIN ONE
 HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS SUBDIVISION.
   2.  THE RETIREMENT SYSTEM SHALL POST, AND ANNOUNCE ON ITS HOMEPAGE THE
 POSTING OF, THE  FORM  AND  CORRESPONDING  INSTRUCTIONS  FOR  DISPATCHER
 MEMBERS  TO ELECT NOT TO PARTICIPATE ON ITS WEBSITE NO LATER THAN THIRTY
 DAYS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION.
   3. IF THE RETIREMENT SYSTEM FAILS TO POST AND ANNOUNCE  THE  FORM  AND
 CORRESPONDING INSTRUCTIONS NO LATER THAN THIRTY DAYS AFTER THE EFFECTIVE
 DATE  OF THIS SUBDIVISION, AS PRESCRIBED BY PARAGRAPH TWO OF THIS SUBDI-
 VISION, THE PERIOD FOR A DISPATCHER MEMBER TO ELECT NOT  TO  PARTICIPATE
 PRESCRIBED  BY  PARAGRAPH  ONE  OF THIS SUBDIVISION SHALL BE EXTENDED BY
 SIXTY  DAYS  FOR  EACH  MONTH  OR  PART  THEREOF  THAT  SUCH  FORM   AND
 INSTRUCTIONS ARE NOT POSTED TO THE RETIREMENT SYSTEM'S WEBSITE.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD11083-05-4
 A. 7693--A                          2
 
 SUMMARY:  This proposed legislation would allow New York City Employees'
 Retirement System (NYCERS) Tier 4 and Tier 6 members who are members  of
 a  Dispatcher  25-Year  Retirement  Plan and were older than age 30 when
 they joined the plan, another 180-day period to opt out of the plan.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                 by Fiscal Year for the first 25 years ($)
                     Year      NYCERS
                     2025        516,000
                     2026        521,000
                     2027        524,000
                     2028        528,000
                     2029        530,000
                     2030        531,000
                     2031        532,000
                     2032        530,000
                     2033        527,000
                     2034        523,000
                     2035        518,000
                     2036        512,000
                     2037        505,000
                     2038        172,000
                     2039        164,000
                     2040        154,000
                     2041        145,000
                     2042        135,000
                     2043        126,000
                     2044        116,000
                     2045        106,000
                     2046        96,000
                     2047        88,000
                     2048        78,000
                     2049        69,000
    Employer Contribution impact beyond Fiscal Year 2049 is not shown.
 
   The entire increase in employer contributions will be allocated to New
 York City.
 
           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)
              Present Value (PV)                 NYCERS
              PV of Benefits:                    2.8
              PV of Employee Contributions:      (1.9)
              PV of Employer Contributions:      4.7
              Unfunded Accrued Liabilities:      2.6
 
 PV of Benefits includes the assumed refund of AMC balances.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                 NYCERS
              Number of Payments:                13
              Fiscal Year of Last Payment:       2037
              Amortization Payment:              325,000
 A. 7693--A                          3
 
   Unfunded  Accrued Liability (UAL) increases for actives were amortized
 over the expected remaining working lifetime of those  impacted  by  the
 benefit changes using level dollar payments.
   CENSUS  DATA:  The estimates presented herein are based on preliminary
 census data collected as of June 30,  2023.  The  census  data  for  the
 impacted population is summarized below.
 
                                                 NYCERS
              Active Members
              - Number Count:                    54
              - Average Age:                     46.3
              - Average Service:                 13.1
              - Average Salary:                  79,400
 
   BACKGROUND:  Currently, Tier 4 or Tier 6 NYCERS members who exceed age
 30 upon being mandated into a Dispatcher 25-Year Plan, have  the  option
 to  irrevocably opt out of the plan within 180 days. Members who opt out
 of the plan are generally placed into one of the Tier 4 or Tier 6 under-
 lying plans.
   Under the proposed legislation, such members who failed to opt out  of
 the  Dispatcher 25-Year Plan in the original 180 days would have another
 180-day period in which to opt out of the Plan.
   For the purposes of this Fiscal Note, it is assumed that  members  who
 opt  out  of  the Dispatcher 25-Year Plan under the proposed legislation
 would be entitled to an immediate refund  of  excess  Additional  Member
 Contributions (AMC), with interest.
   ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
 calculated based on the actuarial assumptions and methods to be used for
 the Preliminary Fiscal Year 2025 employer contributions of the  impacted
 retirement systems.
   To  determine the impact of the elective nature of the proposed legis-
 lation, a subgroup of members was developed based on who is  assumed  to
 benefit actuarially by comparing the net present value of future employ-
 er  costs  of  each  memberÆs benefit under their current plan and under
 their applicable underlying plan.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on  the  actuarial  assumptions, methods, and models used, demo-
 graphics of the impacted population, and other factors such  as  invest-
 ment,  contribution, and other risks. If actual experience deviates from
 actuarial  assumptions,  the  actual  costs  could  differ  from   those
 presented  herein.  Quantifying  these risks is beyond the scope of this
 Fiscal Note.
   This Fiscal Note is intended to measure  pension-related  impacts  and
 does  not  include other potential costs (e.g., administrative and Other
 Postemployment Benefits).
   STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
 sky are members of the Society of Actuaries and the American Academy  of
 Actuaries.  We  are  members of NYCERS but do not believe it impairs our
 objectivity and we meet the  Qualification  Standards  of  the  American
 Academy  of  Actuaries to render the actuarial opinion contained herein.
 To the best of our 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 2024-09 dated January 25,
 2024  was prepared by the Chief Actuary for the New York City Retirement
 A. 7693--A                          4
 
 Systems and Pension Funds. This estimate is intended for use only during
 the 2024 Legislative Session.

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