NY State Assembly Bill 2023-A7824A

Assembly Bill A7824A

2023-2024 Legislative Session

Relates to extending the benefits of the variable supplements fund for transit police members of the New York city employees' retirement system

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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
Feb 29, 2024	print number 7824a
Feb 29, 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)

2023-A7824 - Details

Current Committee:: Assembly Governmental Employees
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§13-191 & 13-192, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2019-2020: A10324
2021-2022: A6697

2023-A7824 - Summary

Extends the benefits of the variable supplements fund for transit police members of the New York city employees' retirement system for persons who retired on or after October 1, 1968.

2023-A7824 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7824
 
                        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 administrative code of the  city  of  New  York,  in
   relation  to  extending  the benefits of the variable supplements fund
   for transit police members of the New York city employees'  retirement
   system

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (c) of subdivision 1 of  section  13-191  of  the
 administrative  code  of the city of New York, as amended by chapter 577
 of the laws of 1992, is amended to read as follows:
   (c) "Beneficiary". Any person who receives a retirement  allowance  by
 reason  of  having  retired,  on  or after [July first, nineteen hundred
 eighty-seven] OCTOBER FIRST, NINETEEN HUNDRED  SIXTY-EIGHT  for  service
 (with  credit  for  twenty  or  more years of service toward the minimum
 period) as a transit police officer; provided, that no person who held a
 rank or position as a transit police superior  officer,  as  defined  in
 subdivision eighty-four of section 13-101 of this title who, on or after
 May  first,  nineteen  hundred ninety-two, subsequently became a transit
 police officer shall be considered a beneficiary unless such person  (1)
 subsequently  performed  at  least  three  years of service as a transit
 police officer  or  (2)  returned  to  service,  from  the  position  of
 sergeant,  as  a transit police officer during the eighteen month proba-
 tionary period, or such other probationary period as may  be  applicable
 or  (3) returned to service as a transit police officer during the three
 year period specified in paragraph (e) of  subdivision  one  of  section
 seventy-five  of  the civil service law, or (4) returned to service as a
 transit police officer as the result of a hearing conducted pursuant  to
 applicable law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08380-02-3
 A. 7824                             2

   § 2.  Paragraph (b) of subdivision 1 of section 13-192 of the adminis-
 trative  code  of the city of New York, as amended by chapter 720 of the
 laws of 1994, is amended to read as follows:
   (b)  "Beneficiary".  Any person who receives a retirement allowance by
 reason of having retired, on or  after  [July  first,  nineteen  hundred
 eighty-seven,]  OCTOBER FIRST, NINETEEN HUNDRED SIXTY-EIGHT, for service
 (with credit for twenty or more years  of  service  toward  the  minimum
 period)  as  a  transit  police  member and as a transit police superior
 officer; provided, however, that where a person who held or holds a rank
 or position as a transit police superior officer, subsequently and on or
 after May first, nineteen hundred ninety-two became or becomes a transit
 police officer, and while a transit police officer, retired  or  retires
 for service under such circumstances that he or she would have qualified
 as  a  beneficiary  under the provisions of paragraph (c) of subdivision
 one of section 13-191 of this title (other than  the  proviso  thereof),
 but  did  not  or does not qualify as a beneficiary under such paragraph
 (c) because he or she was or is disqualified by the terms of such provi-
 so, such retiree shall nevertheless be deemed to be a beneficiary  under
 the provisions of this section.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation would amend Sections 13-191
 and  13-192  of the Administrative Code of the City of New York (ACCNY),
 both enacted by Chapter 844 of the Laws of 1987, to extend the eligibil-
 ity provisions providing for the payment of Transit Police Officers' and
 Transit Police Superior Officers' Variable Supplements Funds (VSF) bene-
 fits to certain retirees.
   Specifically, this proposed legislation would provide for payments  to
 former  New  York City Employees' Retirement System (NYCERS) members who
 are retired for service from the  New  York  City  Transit  Police  (TP)
 between  October  1,  1968 and June 30, 1987 (Prior Retirees) with 20 or
 more years of service. These benefits would be paid from  the  following
 VSFs (referred to hereafter as the Impacted VSFs):
   *  Transit Police Officers' Variable Supplements Fund (TPOVSF), and
   *  Transit   Police   Superior  Officers'  Variable  Supplements  Fund
 (TPSOVSF).
   Effective Date: Upon enactment.
   IMPACT ON BENEFITS - VSF PAYMENTS: Each of the Impacted VSFs currently
 provides supplemental non-pension benefits to former NYCERS members  who
 retired  for  service  on  or after July 1, 1987 from TP with 20 or more
 years of service.
   The amount of VSF benefits paid  is  currently  $12,000  per  Calendar
 Year.  These VSF benefits are payable on an annual basis around December
 15th to eligible former NYCERS members for their lifetimes. There are no
 optional  forms  of  payment.  Upon the death of the NYCERS retiree, VSF
 payments cease.
   If the proposed legislation were to be  enacted,  all  Prior  Retirees
 would  become immediately eligible for VSF benefits on the December 15th
 subsequent to the Effective Date and for each year thereafter.
   For the purposes of this Fiscal Note, it has been assumed  that  bene-
 fits payable under this proposed legislation are prospective only (i.e.,
 there  would  be no retroactive payments for VSF benefits due before the
 Effective Date for such Prior Retirees).
   FINANCIAL IMPACT - PRESENT VALUES: Based on the census  data  and  the
 actuarial  assumptions  and  methods  described herein, the enactment of
 this proposed legislation would result in an  increase  in  the  Present
 A. 7824                             3
 
 Value  of  Future  Benefits (PVFB) of the Impacted VSFs of approximately
 $21.6 million.
   There  are  no  active  TP members of NYCERS and therefore there is no
 mechanism in place for funding the TP VSFs since the VSFs' funding allo-
 cation method normally would be based on the ratio of active  TP  member
 salaries  to  salaries  of  all  active  members in NYCERS. Therefore, a
 transfer from NYCERS to the Impacted VSFs would be necessary to fund the
 additional VSF benefit obligations.
   FINANCIAL IMPACT -  EMPLOYER  CONTRIBUTIONS:  The  enactment  of  this
 proposed  legislation  would  result  in an increase in Fiscal Year 2024
 contributions of approximately $23.9 million.
   For the purposes of this Fiscal Note, since those that  would  benefit
 are  retired,  and  therefore  have  no  remaining working lifetime, the
 entire increase in PVFB with interest  to  Fiscal  Year  2024  would  be
 recognized immediately.
   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.
   The  334  Prior  Retirees  as  of  June 30, 2022 had an average age of
 approximately 81.2 years.
   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.
   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.
   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 2023-73 dated June 6,
 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-A7824A (ACTIVE) - Details

Current Committee:: Assembly Governmental Employees
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§13-191 & 13-192, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2019-2020: A10324
2021-2022: A6697

2023-A7824A (ACTIVE) - Summary

Extends the benefits of the variable supplements fund for transit police members of the New York city employees' retirement system for persons who retired on or after October 1, 1968.

2023-A7824A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7824--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 -- 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 administrative code of the  city  of  New  York,  in
   relation  to  extending  the benefits of the variable supplements fund
   for transit police members of the New York city employees'  retirement
   system
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (c) of subdivision 1 of  section  13-191  of  the
 administrative  code  of the city of New York, as amended by chapter 577
 of the laws of 1992, is amended to read as follows:
   (c) "Beneficiary". Any person who receives a retirement  allowance  by
 reason  of  having  retired,  on  or after [July first, nineteen hundred
 eighty-seven] OCTOBER FIRST, NINETEEN HUNDRED  SIXTY-EIGHT  for  service
 (with  credit  for  twenty  or  more years of service toward the minimum
 period) as a transit police officer; provided, that no person who held a
 rank or position as a transit police superior  officer,  as  defined  in
 subdivision  eighty-four  of section 13-101 of this [title] CHAPTER who,
 on or after May first, nineteen hundred ninety-two, subsequently  became
 a  transit  police officer shall be considered a beneficiary unless such
 person (1) subsequently performed at least three years of service  as  a
 transit  police officer or (2) returned to service, from the position of
 sergeant, as a transit police officer during the eighteen  month  proba-
 tionary  period,  or such other probationary period as may be applicable
 or (3) returned to service as a transit police officer during the  three
 year  period  specified  in  paragraph (e) of subdivision one of section
 seventy-five of the civil service law, or (4) returned to service  as  a
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08380-03-4
 A. 7824--A                          2

 
 transit  police officer as the result of a hearing conducted pursuant to
 applicable law.
   § 2.  Paragraph (b) of subdivision 1 of section 13-192 of the adminis-
 trative  code  of the city of New York, as amended by chapter 720 of the
 laws of 1994, is amended to read as follows:
   (b) "Beneficiary". Any person who receives a retirement  allowance  by
 reason  of  having  retired,  on  or after [July first, nineteen hundred
 eighty-seven,] OCTOBER FIRST, NINETEEN HUNDRED SIXTY-EIGHT, for  service
 (with  credit  for  twenty  or  more years of service toward the minimum
 period) as a transit police member and  as  a  transit  police  superior
 officer; provided, however, that where a person who held or holds a rank
 or position as a transit police superior officer, subsequently and on or
 after May first, nineteen hundred ninety-two became or becomes a transit
 police  officer,  and while a transit police officer, retired or retires
 for service under such circumstances that he or she would have qualified
 as a beneficiary under the provisions of paragraph  (c)  of  subdivision
 one  of  section  13-191 of this [title] CHAPTER (other than the proviso
 thereof), but did not or does not qualify as a  beneficiary  under  such
 paragraph  (c)  because he or she was or is disqualified by the terms of
 such proviso, such retiree shall nevertheless be deemed to be a  benefi-
 ciary under the provisions of this section.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This  proposed  legislation would extend the eligibility for
 the payment of Transit Police  Officers'  and  Transit  Police  Superior
 Officers'  Variable  Supplements  Funds  (VSF) benefits to former NYCERS
 members who retired for service from the New York  City  Transit  Police
 between  October  1,  1968  and  June  30, 1987 with 20 or more years of
 service.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
      Year                          NYCERS
      2025                          20.9
      2026                          0
      2027                          0
      2028                          0
      2029                          0
      2030                          0
      2031                          0
      2032                          0
      2033                          0
      2034                          0
      2035                          0
      2036                          0
      2037                          0
      2038                          0
      2039                          0
      2040                          0
      2041                          0
      2042                          0
      2043                          0
      2044                          0
      2045                          0
      2046                          0
      2047                          0
 A. 7824--A                          3
 
      2048                          0
      2049                          0
 
   The entire increase in employer contributions will be allocated to New
 York  City.  There  are  no  active Transit Police members of NYCERS and
 therefore a transfer from NYCERS, via a City payment,  to  the  impacted
 VSFs would be necessary to fund the additional VSF benefit obligations.
 
           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)
      Present Value (PV)            NYCERS
      PV of Benefits:               18.9
      PV of Employee Contributions: 0
      PV of Employer Contributions: 18.9
      Unfunded Accrued Liabilities: 18.9
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                    NYCERS
      Number of Payments:           1
      Fiscal Year of Last Payment:  2025
      Amortization Payment:         20.9 M
 
   Since  those  that  would  benefit  are retired, and therefore have no
 remaining working lifetime, the  entire  increase  in  Unfunded  Accrued
 Liabilities would be recognized immediately.
   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
      Receiving Members
      - Number Count:               304
      - Average Age:                82.0
 
   IMPACT  ON  RETIREE  BENEFITS: Currently, Transit Police Officers' and
 Transit Police Superior Officers' VSFs provide supplemental  non-pension
 benefits  to  former  NYCERS members who retired for service on or after
 July 1, 1987 from New York City Transit Police with 20 or more years  of
 service.
   The  amount  of  VSF  benefits  paid is currently $12,000 per Calendar
 Year.  These VSF benefits are payable on an annual basis around December
 15th to eligible former NYCERS members for  their  lifetimes.  Upon  the
 death of the NYCERS retiree, VSF payments cease.
   Under  the proposed legislation, former NYCERS members who retired for
 service from New York City Transit Police between October  1,  1968  and
 June  30, 1987 with 20 or more years of service would become immediately
 eligible for VSF benefits on the December 15th following  the  Effective
 Date and for each year thereafter. For the purposes of this Fiscal Note,
 it  has  been  assumed  that benefits payable under this proposed legis-
 lation are prospective only.
   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-
 A. 7824--A                          4
 
 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  2024-17  dated  February
 23, 2024 was prepared by the Chief Actuary for the New York City Retire-
 ment  Systems  and Pension Funds. This estimate is intended for use only
 during the 2024 Legislative Session.

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