NY State Assembly Bill 2023-A7745A

Assembly Bill A7745A

2023-2024 Legislative Session

Grants retroactive membership in the New York city teachers' retirement system to Matthew DeTiberiis

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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
Mar 25, 2024	print number 7745a
Mar 25, 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-A7745 - Details

See Senate Version of this Bill:: S7520
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement

2023-A7745 - Summary

Grants retroactive Tier IV membership in the New York city teachers' retirement system to Matthew DeTiberiis.

2023-A7745 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7745
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 2023
                                ___________
 
 Introduced  by  M.  of  A.  TANNOUSIS  --  read once and referred to the
   Committee on Governmental Employees
 
 AN ACT granting retroactive Tier IV membership  in  the  New  York  city
   teachers' retirement system to Matthew DeTiberiis
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Notwithstanding any other provision of law,  Matthew  DeTi-
 beriis,  who  is  currently  employed by the New York city department of
 education and a member of the New York city teachers' retirement system,
 and who was employed by the city of Yonkers  parks  department  for  the
 period  beginning  in  2009 and ending in 2014, and who, for reasons not
 ascribable to his own negligence, failed to become a member of  the  New
 York state and local employees' retirement system during such employment
 with  the  city  of  Yonkers  parks department in 2009, shall be granted
 service credit in the New York city teachers' retirement system for  his
 employment  with  the  city  of  Yonkers parks department for the period
 beginning in 2009 and ending in 2014 and shall be granted Tier IV status
 in such retirement system, provided that an application  is  filed  with
 the  head  of  the  New York city teachers' retirement system within one
 year from the effective date of this act.
   § 2. All past service costs associated with the implementation of this
 act shall be borne by the city of New York.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation would permit Matthew  DeTi-
 beriis,  an  active Tier 6 member of the New York City Teachers' Retire-
 ment System (TRS), to purchase service with the Yonkers Parks Department
 and to elect, by filing an application with TRS within one year  of  the
 effective date, retroactive membership in the Tier 4 TRS 55/27 Plan.
   Effective Date: Upon enactment.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08665-03-3
 A. 7745                             2

 
   BACKGROUND:  Mr. DeTiberiis is currently employed by the New York City
 Department of Education. He joined TRS in September 2016  as  a  Tier  6
 member.  Previously he was employed by the City of Yonkers Parks Depart-
 ment from September 18, 2009 through February 28, 2014.
   The proposed legislation would allow Mr. DeTiberiis to receive service
 credit  in  TRS for his employment with the Yonkers Parks Department and
 apply for a Tier 4 membership with a refund of past Tier 6 contributions
 that exceed the applicable Tier 4 contribution rate. A change from  Tier
 6  to  Tier 4 would result in an earlier date of retirement eligibility,
 lower overall prospective employee contribution rates, a larger benefit,
 and a three-year (as opposed to a five-year) final average salary.
   FINANCIAL IMPACT - PRESENT VALUES: The estimated financial  impact  of
 this  proposed  legislation  has been calculated based on the difference
 between (1) the present value of benefits Mr. DeTiberiis  would  receive
 if  the  Tier 4 55/27 Plan were elected and (2) the present value of the
 benefits Mr. DeTiberiis would receive under the Tier 6 63/5 Plan.
   Based on the actuarial assumptions and methods described  herein,  and
 assuming  that  Mr.  DeTiberiis timely elects the Tier 4 55/27 Plan, the
 enactment of this proposed legislation would increase the Present  Value
 of  Future  Benefits  (PVFB)  by  approximately $61,700 and decrease the
 Present Value of member contributions by approximately $63,000,  result-
 ing in an increase in the present value of future employer contributions
 of approximately $124,700.
   Under  the Entry Age Normal cost method used to determine the employer
 contributions to TRS, there would be an increase in the Unfunded Accrued
 Liability (UAL) of approximately $42,300 and an increase in the  present
 value of future employer Normal Cost of approximately $82,400.
   FINANCIAL  IMPACT  -  ANNUAL  EMPLOYER CONTRIBUTIONS: The enactment of
 this proposed legislation would result in an initial increase in  annual
 employer  contributions  of approximately $10,100 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 Mr.  DeTiberiis is approximately 20
 years and the increase in UAL was therefore  amortized  over  a  20-year
 period  (19  payments  under  the  One-Year Lag Methodology) using level
 dollar payments.
   CENSUS DATA: As of June 30, 2022, Mr. DeTiberiis was approximately age
 35, had approximately six years of service, and a salary of approximate-
 ly $85,300.
   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 TRS.
   For  the  purposes of this Fiscal Note, it is assumed that the changes
 would be reflected for the first time in the  June  30,  2023  actuarial
 valuation  of  TRS  used  to determine employer contributions for Fiscal
 Year 2025.
   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  group,  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.
 A. 7745                             3
 
   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 2023-67 dated June 1,
 2023 was prepared by the Chief Actuary for the New York  City  Teachers'
 Retirement  System.  This  estimate  is intended for use only during the
 2023 Legislative Session.

2023-A7745A (ACTIVE) - Details

See Senate Version of this Bill:: S7520
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement

2023-A7745A (ACTIVE) - Summary

Grants retroactive Tier IV membership in the New York city teachers' retirement system to Matthew DeTiberiis.

2023-A7745A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7745--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 2023
                                ___________
 
 Introduced  by  M.  of  A.  TANNOUSIS  --  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 granting retroactive Tier IV membership  in  the  New  York  city
   teachers' retirement system to Matthew DeTiberiis
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Notwithstanding any other provision of law,  Matthew  DeTi-
 beriis,  who  is  currently  employed by the New York city department of
 education and a member of the New York city teachers' retirement system,
 and who was employed by the city of Yonkers  parks  department  for  the
 period  beginning  in  2009 and ending in 2014, and who, for reasons not
 ascribable to his own negligence, failed to become a member of  the  New
 York state and local employees' retirement system during such employment
 with  the  city  of  Yonkers  parks department in 2009, shall be granted
 service credit in the New York city teachers' retirement system for  his
 employment  with  the  city  of  Yonkers parks department for the period
 beginning in 2009 and ending in 2014 and shall be granted Tier IV status
 in such retirement system, provided that an application  is  filed  with
 the  head  of  the  New York city teachers' retirement system within one
 year from the effective date of this act.
   § 2. All past service costs associated with the implementation of this
 act shall be borne by the city of New York.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would permit Matthew DeTiberiis, an
 active Tier 6 member of the New York City  Teachers'  Retirement  System
 (TRS),  to  purchase  service  with  the Yonkers Parks Department and to

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08665-05-4
 A. 7745--A                          2

 
 elect, by filing an application with TRS within one year of  the  effec-
 tive date, retroactive membership in the Tier 4 TRS 55/27 Plan.
           EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                 by Fiscal Year for the first 25 years ($)
 
                           Year             TRS
                           2025               0
                           2026          14,700
                           2027          15,000
                           2028          15,300
                           2029          15,400
                           2030          15,700
                           2031          15,900
                           2032          16,300
                           2033          16,700
                           2034          17,000
                           2035          17,300
                           2036          17,600
                           2037          18,200
                           2038          19,000
                           2039          19,500
                           2040          20,100
                           2041          20,500
                           2042          20,900
                           2043          21,300
                           2044          14,600
                           2045          12,600
                           2046           8,400
                           2047           4,700
                           2048           1,600
                           2049           (800)
   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, 2024 ($)
 
           Present Value (PV)                 TRS
           PV of Benefits:                    90,000
           PV of Employee Contributions:      (81,000)
           PV of Employer Contributions:      171,000
           Unfunded Accrued Liabilities:      68,000
 
   PV of Benefits includes the assumed refund of past contributions.
 
                 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
           TRS
           Number of Payments:                18
           Fiscal Year of Last Payment:       2043
           Amortization Payment:              7,000
 
   Unfunded  Accrued Liability increases were amortized over the expected
 remaining working lifetime of Mr. DeTiberiis.
 A. 7745--A                          3
 
   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.
 
                                    TRS
           Active Members
 
           - Number Count:          1
           - Average Age:           36.0
           - Average Service:       7.0
           - Average Salary:        92,200
 
   BACKGROUND:  Mr. DeTiberiis is currently employed by the New York City
 Department of Education. He joined TRS in September 2016  as  a  Tier  6
 member.  Previously he was employed by the City of Yonkers Parks Depart-
 ment from September 18, 2009 through February 28, 2014.
   The proposed legislation would allow Mr. DeTiberiis to receive service
 credit  in  TRS for his employment with the Yonkers Parks Department and
 apply for a Tier 4 membership with a refund of past Tier 6 contributions
 that exceed the applicable Tier 4 contribution rate. A change from  Tier
 6  to  Tier 4 would result in an earlier date of retirement eligibility,
 lower overall prospective employee contribution rates, a larger benefit,
 and a three-year (as opposed to a five-year) final average salary.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems.
   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 2024-35 dated March 21,
 2024 was prepared by the Chief Actuary for the New York City  Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2024 Legislative Session.

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