NY State Assembly Bill 2023-A7791

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
Feb 09, 2024	print number 7791a
Feb 09, 2024	amend and recommit to governmental employees
Jan 03, 2024	referred to governmental employees
Jun 15, 2023	referred to governmental employees

Bill Amendments

Original

A (Active)

co-Sponsors

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2023-A7791 - Details

See Senate Version of this Bill:: S7714
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§501, 503 & 505, R & SS L

2023-A7791 - Summary

Restores 20 year service retirement for New York city police officers.

2023-A7791 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7791
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 15, 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
   the restoration of 20 year service retirement for New York city police
   officers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 17 of section 501 of the retirement and  social
 security  law,  as amended by chapter 18 of the laws of 2012, is amended
 to read as follows:
   17. "Normal retirement  age"  shall  be  age  sixty-two,  for  general
 members, and the age at which a member completes or would have completed
 twenty-two  years  of  service,  for  police/fire members, New York city
 uniformed correction/sanitation revised plan  members  and  investigator
 revised  plan  members,  EXCEPT  THAT FOR POLICE/FIRE MEMBERS OF THE NEW
 YORK CITY POLICE PENSION FUND, NORMAL RETIREMENT AGE SHALL BE THE AGE AT
 WHICH A MEMBER  COMPLETES  OR  WOULD  HAVE  COMPLETED  TWENTY  YEARS  OF
 SERVICE.
   § 2. Subdivision d of section 503 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   d.  The  normal  service  retirement benefit specified in section five
 hundred five of this article shall be paid to police/fire  members,  New
 York  city  uniformed  correction/sanitation  revised  plan  members and
 investigator revised plan members without regard to age upon  retirement
 after  twenty-two  years  of  service,  EXCEPT  THAT  THE NORMAL SERVICE
 RETIREMENT BENEFIT SPECIFIED IN SECTION FIVE HUNDRED FIVE OF THIS  ARTI-
 CLE  SHALL  BE  PAID  TO POLICE/FIRE MEMBERS OF THE NEW YORK CITY POLICE
 PENSION FUND, AFTER TWENTY YEARS OF SERVICE.   Early service  retirement
 shall  be  permitted  upon  retirement  after  twenty  years of credited
 service or attainment of age sixty-two, provided, however, that New York

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11368-02-3

 A. 7791                             2
 
 city  police/fire  revised  plan  members,  New  York   city   uniformed
 correction/sanitation revised plan members and investigator revised plan
 members shall not be eligible to retire for service prior to the attain-
 ment of twenty years of credited service.
   §  3. Section 505 of the retirement and social security law is amended
 by adding a new subdivision d to read as follows:
   D.  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY  IN  ANY  OTHER  LAW,
 POLICE/FIRE  MEMBERS  OF  THE NEW YORK CITY POLICE PENSION FUND SHALL BE
 ELIGIBLE FOR A NORMAL SERVICE RETIREMENT BENEFIT IN  LIEU  OF  AN  EARLY
 SERVICE  RETIREMENT  BENEFIT  UPON  COMPLETING  TWENTY  YEARS OF SERVICE
 PURSUANT TO SUBDIVISION D OF SECTION FIVE HUNDRED THREE OF THIS ARTICLE.
   § 4. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation would amend  Sections  501,
 503,  and 505 of the Retirement and Social Security Law (RSSL) to reduce
 the Normal Retirement Age for Tier 3  original,  revised,  and  enhanced
 plan members of the New York City Police Pension Fund (POLICE) to be the
 age  at which a member completes or would have completed twenty years of
 service.
   Effective Date: Upon enactment.
   IMPACT ON BENEFITS: Currently, Tier 3 POLICE members who  retire  with
 at  least  20 years of service are eligible to receive an annual benefit
 that is equal to 42% of Final Average Salary (FAS), plus  0.33%  of  FAS
 for  each  month  of  service (up to 24 months) in excess of 20 years of
 service, resulting in a benefit of 50% of FAS after 22 years of service.
   Under the proposed legislation, Tier 3 POLICE members who retire  with
 at  least  20  years  of  service would be eligible to receive an annual
 benefit that is equal to 50% of FAS.
   The annual benefit in either case would be subject to a Social Securi-
 ty Offset commencing at age 62, which is not affected  by  the  proposed
 legislation.  There  is  also  no  change  to the benefit provisions for
 deferred vested members who terminate employment  prior  to  earning  20
 years of service.
   FINANCIAL  IMPACT:  Based on the census data and the actuarial assump-
 tions 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 $82.9 million  for  the  current
 population.
   The   financial  impact  will  increase  as  the  impacted  population
 increases over time. The estimate of the  increase  in  annual  employer
 contributions  for Fiscal Years 2024 through 2028 are shown in the table
 below.
                Fiscal                Increase in
                Year                Employer Contributions
                                      ($ Millions)
                2024                    $ 10.7
                2025                    $ 11.5
                2026                    $ 12.4
                2027                    $ 13.3
                2028                    $ 14.4
   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 18 years
 and the increase in UAL was therefore amortized over an  18-year  period
 (17  payments  under  the  One-Year  Lag Methodology) using level dollar
 payments.
 A. 7791                             3
 
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data  used  in the June 30, 2022 actuarial valuation of POLICE to deter-
 mine the Preliminary Fiscal Year 2024 employer contributions.
   There  are  19,375 active Tier 3 members of POLICE as of June 30, 2022
 and they have an  average  age  of  approximately  32.2  years,  average
 service  of  approximately  5.7 years, and an average salary of approxi-
 mately $101,600.
   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 POLICE except
 for  adjustments to the retirement rates to reflect changes in eligibil-
 ity for service retirement associated with the proposed legislation.
   New entrants were projected to replace the members expected  to  leave
 the active population to maintain a steady-state population. New entrant
 demographics were developed based on data for recent new hires and actu-
 arial judgement.
   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 POLICE 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.
   *  Pension  costs  for  future  members  of  POLICE  hired on or after
 7/1/2026.
   * 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 2023-72 dated June 5,
 2023 was prepared by the Chief Actuary for  the  New  York  City  Police
 Pension  Fund.  This  estimate  is intended for use only during the 2023
 Legislative Session.

co-Sponsors

View additional co-sponsors

2023-A7791A (ACTIVE) - Details

See Senate Version of this Bill:: S7714
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§501, 503 & 505, R & SS L

2023-A7791A (ACTIVE) - Summary

Restores 20 year service retirement for New York city police officers.

2023-A7791A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7791--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 15, 2023
                                ___________
 
 Introduced  by M. of A. PHEFFER AMATO, FALL, BERGER, BRAUNSTEIN, LAVINE,
   STERN, COLTON -- read once and referred to the  Committee  on  Govern-
   mental  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
   the restoration of 20 year service retirement for New York city police
   officers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 17 of section 501 of the retirement and social
 security law, as amended by chapter 18 of the laws of 2012,  is  amended
 to read as follows:
   17.  "Normal  retirement  age"  shall  be  age  sixty-two, for general
 members, and the age at which a member completes or would have completed
 twenty-two years of service, for  police/fire  members,  New  York  city
 uniformed  correction/sanitation  revised  plan members and investigator
 revised plan members, EXCEPT THAT FOR POLICE/FIRE  MEMBERS  OF  THE  NEW
 YORK CITY POLICE PENSION FUND, NORMAL RETIREMENT AGE SHALL BE THE AGE AT
 WHICH  A  MEMBER  COMPLETES  OR  WOULD  HAVE  COMPLETED  TWENTY YEARS OF
 SERVICE.
   § 2. Subdivision d of section 503 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   d. The normal service retirement benefit  specified  in  section  five
 hundred  five  of this article shall be paid to police/fire members, New
 York city  uniformed  correction/sanitation  revised  plan  members  and
 investigator  revised plan members without regard to age upon retirement
 after twenty-two years  of  service,  EXCEPT  THAT  THE  NORMAL  SERVICE
 RETIREMENT  BENEFIT SPECIFIED IN SECTION FIVE HUNDRED FIVE OF THIS ARTI-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11368-03-4

 A. 7791--A                          2
 
 CLE SHALL BE PAID TO POLICE/FIRE MEMBERS OF THE  NEW  YORK  CITY  POLICE
 PENSION  FUND,  AFTER TWENTY YEARS OF SERVICE.  Early service retirement
 shall be permitted  upon  retirement  after  twenty  years  of  credited
 service or attainment of age sixty-two, provided, however, that New York
 city   police/fire   revised  plan  members,  New  York  city  uniformed
 correction/sanitation revised plan members and investigator revised plan
 members shall not be eligible to retire for service prior to the attain-
 ment of twenty years of credited service.
   § 3. Section 505 of the retirement and social security law is  amended
 by adding a new subdivision d to read as follows:
   D.  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY  IN  ANY  OTHER  LAW,
 POLICE/FIRE MEMBERS OF THE NEW YORK CITY POLICE PENSION  FUND  SHALL  BE
 ELIGIBLE  FOR  A  NORMAL  SERVICE RETIREMENT BENEFIT IN LIEU OF AN EARLY
 SERVICE RETIREMENT BENEFIT  UPON  COMPLETING  TWENTY  YEARS  OF  SERVICE
 PURSUANT TO SUBDIVISION D OF SECTION FIVE HUNDRED THREE OF THIS ARTICLE.
   § 4. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This proposed legislation would reduce the Normal Retirement
 Age for Tier 3 original, revised, and enhanced plan members of  the  New
 York  City  Police Pension Fund (POLICE) to be the age at which a member
 completes or would have completed twenty years of service.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                     Year      POLICE
                     2025        12.5
                     2026        13.3
                     2027        14.4
                     2028        15.6
                     2029        16.7
                     2030        17.9
                     2031        18.9
                     2032        19.8
                     2033        20.7
                     2034        21.5
                     2035        22.4
                     2036        23.2
                     2037        24.1
                     2038        24.8
                     2039        25.6
                     2040        26.4
                     2041        22.1
                     2042        22.9
                     2043        23.7
                     2044        24.5
                     2045        25.2
                     2046        26.0
                     2047        26.7
                     2048        27.4
                     2049        28.2
    Employer Contribution impact beyond Fiscal Year 2049 is not shown.
  Projected contributions include future new hires that may be impacted.
 
   The entire increase in employer contributions will be allocated to New
 York City.
 A. 7791--A                          3
 
           INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)
              Present Value (PV)                 POLICE
              PV of Benefits:                    85.0
              PV of Employee Contributions:      (9.1)
              PV of Employer Contributions:      94.0
              Unfunded Accrued Liabilities:      45.6
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                 POLICE
              Number of Payments:                16
              Fiscal Year of Last Payment:       2040
              Amortization Payment:              5.0 M
 
   Unfunded  Accrued Liability increases 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.

                                                 POLICE
              Active Members
              - Number Count:                    20,176
              - Average Age:                     32.8
              - Average Service:                 6.1
              - Average Salary:                  107,600
 
   IMPACT ON MEMBER BENEFITS: Currently, Tier 3 POLICE members who retire
 with  at  least  20  years  of service are eligible to receive an annual
 benefit that is equal to 42% of Final Average Salary (FAS),  plus  0.33%
 of FAS for each month of service (up to 24 months) in excess of 20 years
 of  service,  resulting  in  a  benefit  of 50% of FAS after 22 years of
 service.
   Under the proposed legislation, Tier 3 POLICE members who retire  with
 at  least  20  years  of  service would be eligible to receive an annual
 benefit that is equal to 50% of FAS.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems except for:
   * Retirement rates were adjusted to reflect the earlier payability  of
 the service retirement benefit associated with the proposed legislation.
   *  New  entrants were assumed to replace exiting members so that total
 payroll increases by 3% each year for impacted groups. New entrant demo-
 graphics were developed based on data for recent new hires and actuarial
 judgement.
   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).
 A. 7791--A                          4
 
   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 2024-13 dated February 7,
 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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Assembly Bill A7791

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Sponsored By

PHEFFER AMATO

Current Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

Charles Fall

Sam Berger

Edward Braunstein

Charles Lavine

2023-A7791 - Details

2023-A7791 - Summary

2023-A7791 - Bill Text download pdf

co-Sponsors

Charles Fall

Sam Berger

Edward Braunstein

Charles Lavine

2023-A7791A (ACTIVE) - Details

2023-A7791A (ACTIVE) - Summary

2023-A7791A (ACTIVE) - Bill Text download pdf

Comments