Relates to the retirement contributions of career public employees
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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Mar 20, 2024 |
referred to governmental employees |
S T A T E O F N E W Y O R K
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9527
I N A S S E M B L Y
March 20, 2024
___________
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 and the education
law, in relation to the retirement contributions of career public
employees
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision a of section 517 of the retirement and social
security law, as amended by chapter 18 of the laws of 2012, the second
undesignated paragraph as amended by section 1 of part SS of chapter 56
of the laws of 2022, is amended to read as follows:
a. Members shall contribute three percent of annual wages to the
retirement system in which they have membership, provided that such
contributions shall not be required for more than thirty years, for
general members, or twenty-five years, for police/fire members, [except
that beginning April first, two thousand thirteen for members who first
become members of the New York state and local employees' retirement
system on or after April first, two thousand twelve, the rate at which
each such member shall contribute in any current plan year (April first
to March thirty-first) shall be determined by reference to the wages of
such member in the second plan year (April first to March thirty-first)
preceding such current plan year as follows:
1. members with wages of forty-five thousand dollars per annum or less
shall contribute three per centum of annual wages;
2. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
3. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
4. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14515-04-4
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5. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first) in which such member has
established membership in the New York state and local employees'
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of the New York state and local employees' retirement system on or after
April first, two thousand twelve shall contribute for any plan year
(April first to March thirty-first) between April first, two thousand
twenty-two and April first, two thousand twenty-four, such rate shall be
determined by reference to employees annual base wages of such member in
the second plan year (April first to March thirty-first) preceding such
current plan year] EXCEPT THAT BEGINNING ON AND AFTER APRIL FIRST, TWO
THOUSAND TWENTY-FOUR, FOR MEMBERS WHO JOINED THE NEW YORK STATE AND
LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST, TWO THOUSAND
TWELVE, THE CONTRIBUTIONS IN ANY CURRENT PLAN YEAR (APRIL FIRST TO MARCH
THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE BASE WAGES OF SUCH
MEMBER AS OF APRIL FIRST IN THE PREVIOUS PLAN YEAR AS FOLLOWS:
1. MEMBERS WITH BASE WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM
OR LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH BASE WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER
ANNUM, BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE
FOUR PER CENTUM OF ANNUAL WAGES; AND
3. MEMBERS WITH BASE WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE NEW YORK STATE AND LOCAL EMPLOYEES'
RETIREMENT SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL
WAGES IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
OF ANNUAL WAGES PROVIDED BY THE EMPLOYER. Base wages shall include regu-
lar pay, shift differential pay, location pay, and any increased hiring
rate pay, but shall not include any overtime payments.
The head of each retirement system shall promulgate such regulations
as may be necessary and appropriate with respect to the deduction of
such contribution from members' wages and for the maintenance of any
special fund or funds with respect to amounts so contributed.
§ 2. Paragraphs 1 and 2 of subdivision a of section 613 of the retire-
ment and social security law, as amended by chapter 510 of the laws of
2015, the second undesignated paragraphs of paragraphs 1 and 2 as
amended by section 2 of part SS of chapter 56 of the laws of 2022, are
amended to read as follows:
1. Except as provided by paragraph two of this subdivision, members
shall contribute three percent of annual wages to the retirement system
in which they have membership, [except that beginning April first, two
thousand thirteen for members who first become members of a public
retirement system of the state on or after April first, two thousand
twelve, the rate at which each such member shall contribute in any
current plan year (April first to March thirty-first, except for members
of the New York city employees' retirement system, New York city teach-
ers' retirement system and New York city board of education retirement
system, plan year shall mean January first through December thirty-first
commencing with the January first next succeeding the effective date of
the chapter of the laws of two thousand fifteen that amended this para-
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graph) shall be determined by reference to the wages of such member in
the second plan year (April first to March thirty-first, except for
members of the New York city employees' retirement system, New York city
teachers' retirement system and New York city board of education retire-
ment system, plan year shall mean January first through December thir-
ty-first commencing with the January first next succeeding the effective
date of the chapter of the laws of two thousand fifteen that amended
this paragraph) preceding such current plan year as follows:
(i) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(ii) members with wages greater than forty-five thousand per annum,
but not more than fifty-five thousand per annum shall contribute three
and one-half per centum of annual wages;
(iii) members with wages greater than fifty-five thousand per annum,
but not more than seventy-five thousand per annum shall contribute four
and one-half per centum of annual wages;
(iv) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(v) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first, except for members of New York
city employees' retirement system, New York city teachers' retirement
system and New York city board of education retirement system, plan year
shall mean January first through December thirty-first commencing with
the January first next succeeding the effective date of chapter five
hundred ten of the laws of two thousand fifteen) in which such member
has established membership in a public retirement system of the state,
such member shall contribute a percentage of annual wages in accordance
with the preceding schedule based upon a projection of annual wages
provided by the employer. Notwithstanding the foregoing, when determin-
ing the rate at which each such member who became a member of the New
York state and local employees' retirement system, New York city employ-
ees' retirement system, New York city teachers' retirement system and
New York city board of education retirement system, on or after April
first, two thousand twelve shall contribute for any plan year (April
first to March thirty-first, except for members of the New York city
employees' retirement system, New York city teachers' retirement system
and New York city board of education retirement system, plan year shall
mean January first through December thirty-first commencing with January
first next succeeding the effective date of chapter five hundred ten of
the laws of two thousand fifteen) between April first, two thousand
twenty-two and April first, two thousand twenty-four, such rate shall be
determined by reference to employees annual base wages of such member in
the second plan year (April first to March thirty-first) preceding such
current plan year] EXCEPT THAT BEGINNING ON AND AFTER APRIL FIRST, TWO
THOUSAND TWENTY-FOUR, FOR MEMBERS OF A PUBLIC RETIREMENT SYSTEM OF THE
STATE WHO JOINED ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE
CONTRIBUTIONS IN ANY CURRENT PLAN YEAR (APRIL FIRST TO MARCH THIRTY-
FIRST, EXCEPT FOR MEMBERS OF NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM,
NEW YORK CITY TEACHERS' RETIREMENT SYSTEM AND NEW YORK CITY BOARD OF
EDUCATION RETIREMENT SYSTEM, PLAN YEAR SHALL MEAN JANUARY FIRST THROUGH
DECEMBER THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE BASE
WAGES OF SUCH MEMBER AS OF APRIL FIRST (EXCEPT FOR MEMBERS OF NEW YORK
CITY EMPLOYEES' RETIREMENT SYSTEM, NEW YORK CITY TEACHERS' RETIREMENT
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SYSTEM AND NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM, THE
CONTRIBUTIONS OF MEMBERS IN ANY PLAN YEAR SHALL BE DETERMINED BY REFER-
ENCE TO THE BASE WAGES OF SUCH MEMBER AS OF DECEMBER THIRTY-FIRST) IN
THE PREVIOUS PLAN YEAR AS FOLLOWS:
1. MEMBERS WITH BASE WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM
OR LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH BASE WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER
ANNUM, BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE
FOUR PER CENTUM OF ANNUAL WAGES; AND
3. MEMBERS WITH BASE WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
ESTABLISHED MEMBERSHIP IN A PUBLIC RETIREMENT SYSTEM OF THE STATE, SUCH
MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN ACCORDANCE WITH
THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL WAGES PROVIDED
BY THE EMPLOYER. Base wages shall include regular pay, shift differen-
tial pay, location pay, and any increased hiring rate pay, but shall not
include any overtime payments or compensation earned for extracurricular
programs or any other pensionable earnings paid in addition to the annu-
al base wages.
The head of each retirement system shall promulgate such regulations
as may be necessary and appropriate with respect to the deduction of
such contribution from members' wages and for the maintenance of any
special fund or funds with respect to amounts so contributed.
2. A member of the New York city employees' retirement system who is
eligible to be a participant in the twenty-five-year and age fifty-five
retirement program, as defined by paragraph five of subdivision a of
section six hundred four-b of this article shall contribute two percent
of annual wages to such system effective on the starting date of the
elimination of additional member contributions, as defined in an
election made pursuant to paragraph ten of subdivision e of section six
hundred four-b of this article, [except that beginning April first, two
thousand thirteen for members who first become members of the New York
city employees' retirement system on or after April first, two thousand
twelve, the rate at which each such member shall contribute in any
current plan year (April first to March thirty-first, provided, however,
that plan year shall mean January first through December thirty-first
commencing with the January first next succeeding the effective date of
the chapter of the laws of two thousand fifteen that amended this para-
graph) shall be determined by reference to the wages of such member in
the second plan year (April first to March thirty-first, provided,
however, that plan year shall mean January first through December thir-
ty-first commencing with the January first next succeeding the effective
date of the chapter of the laws of two thousand fifteen that amended
this paragraph) preceding such current plan year as follows:
(i) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(ii) members with wages greater than forty-five thousand per annum,
but not more than fifty-five thousand per annum shall contribute three
and one-half per centum of annual wages;
(iii) members with wages greater than fifty-five thousand per annum,
but not more than seventy-five thousand per annum shall contribute four
and one-half per centum of annual wages;
(iv) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
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(v) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first, provided, however, that plan
year shall mean January first through December thirty-first commencing
with the January first next succeeding the effective date of chapter
five hundred ten of the laws of two thousand fifteen) in which such
member has established membership in the New York city employees'
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of, New York city employees' retirement system, on or after April first,
two thousand twelve shall contribute for any plan year (April first to
March thirty-first, provided, however, that plan year shall mean January
first through December thirty-first commencing with the January first
next succeeding the effective date of chapter five hundred ten of the
laws of two thousand fifteen) between April first, two thousand twenty-
two and April first, two thousand twenty-four, such rate shall be deter-
mined by reference to employees annual base wages of such member in the
second plan year (April first to March thirty-first) preceding such
current plan year] EXCEPT THAT BEGINNING ON AND AFTER APRIL FIRST, TWO
THOUSAND TWENTY-FOUR, FOR MEMBERS OF NEW YORK CITY EMPLOYEES' RETIREMENT
SYSTEM WHO JOINED ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE
CONTRIBUTIONS IN ANY CURRENT PLAN YEAR (APRIL FIRST TO MARCH THIRTY-
FIRST) SHALL BE DETERMINED BY REFERENCE TO THE BASE WAGES OF SUCH MEMBER
AS OF APRIL FIRST IN THE PREVIOUS PLAN YEAR AS FOLLOWS:
1. MEMBERS WITH BASE WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM
OR LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH BASE WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER
ANNUM, BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE
FOUR PER CENTUM OF ANNUAL WAGES; AND
3. MEMBERS WITH BASE WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE NEW YORK CITY EMPLOYEES' RETIREMENT
SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN
ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
WAGES PROVIDED BY THE EMPLOYER. Base wages shall include regular pay,
shift differential pay, location pay, and any increased hiring rate pay,
but shall not include any overtime payments.
§ 3. Subdivisions f and g of section 613 of the retirement and social
security law, as amended by chapter 18 of the laws of 2012, and the
second undesignated paragraphs of subdivisions f and g as amended by
section 2 of part SS of chapter 56 of the laws of 2022, are amended to
read as follows:
f. Anything in subdivision a of this section to the contrary notwith-
standing a member employed as a uniformed court officer or peace officer
in the unified court system who first joins the New York state and local
employees' retirement system on or after January first, two thousand ten
shall contribute four percent of annual wages to the New York state and
local employees' retirement system, [except that beginning April first,
two thousand thirteen for members who first become members of the New
York state and local employees' retirement system on or after April
first, two thousand twelve, the rate at which each such member shall
contribute in any current plan year (April first to March thirty-first)
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shall be determined by reference to the wages of such member in the
second plan year (April first to March thirty-first) preceding such
current plan year as follows:
1. members with wages of forty-five thousand dollars per annum or less
shall contribute three per centum of annual wages;
2. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
3. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
4. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
5. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first) in which such member has
established membership in the New York state and local employees'
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of the New York state and local employees' retirement system on or after
April first, two thousand twelve shall contribute for any plan year
(April first to March thirty-first) between April first, two thousand
twenty-two and April first, two thousand twenty-four, such rate shall be
determined by reference to employees annual base wages of such member in
the second plan year (April first to March thirty-first) preceding such
current plan year] EXCEPT THAT BEGINNING ON AND AFTER APRIL FIRST, TWO
THOUSAND TWENTY-FOUR, FOR MEMBERS EMPLOYED AS A UNIFORMED COURT OFFICER
OR PEACE OFFICER IN THE UNIFIED COURT SYSTEM WHO FIRST JOIN THE NEW YORK
STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER APRIL FIRST,
TWO THOUSAND TWELVE, THE CONTRIBUTIONS IN ANY CURRENT PLAN YEAR (APRIL
FIRST TO MARCH THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE
BASE WAGES OF SUCH MEMBER AS OF APRIL FIRST IN THE PREVIOUS PLAN YEAR AS
FOLLOWS:
1. MEMBERS WITH WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
3. MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
ESTABLISHED MEMBERSHIP IN A PUBLIC RETIREMENT SYSTEM, SUCH MEMBER SHALL
CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN ACCORDANCE WITH THE PRECEDING
SCHEDULE BASED UPON A PROJECTION OF ANNUAL WAGES PROVIDED BY THE EMPLOY-
ER. Base wages shall include regular pay, shift differential pay,
location pay, and any increased hiring rate pay, but shall not include
any overtime payments.
The head of the New York state and local employees' retirement system
shall promulgate such regulations as may be necessary and appropriate
with respect to the deduction of such contribution from members' wages
and for the maintenance of any special fund or funds with respect to
amounts so contributed.
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g. Members who first join the New York state teachers' retirement
system on or after January first, two thousand ten shall contribute
three and one-half percent of annual wages to the New York state teach-
ers' retirement system, [except that beginning April first, two thousand
thirteen for members who first become members of the New York state
teachers' retirement system on or after April first, two thousand
twelve, the rate at which each such member shall contribute in any
current plan year (July first to June thirtieth) shall be determined by
reference to the wages of such member in the second plan year (July
first to June thirtieth) preceding such current plan year as follows:
1. members with wages of forty-five thousand dollars per annum or less
shall contribute three per centum of annual wages;
2. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
3. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
4. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
5. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.
Notwithstanding the foregoing, during each of the first three plan
years (July first to June thirtieth) in which such member has estab-
lished membership in the New York state teachers' retirement system,
such member shall contribute a percentage of annual wages in accordance
with the preceding schedule based upon a projection of annual wages
provided by the employer. Notwithstanding the foregoing, when determin-
ing the contribution rate at which a member of the New York state teach-
ers' retirement system with a date of membership on or after April
first, two thousand twelve shall contribute for plan years (July first
to June thirtieth) between July first, two thousand twenty-two and July
first, two thousand twenty-four, such rate shall be determined by refer-
ence to the member's annual base wages in the second plan year (July
first to June thirtieth) preceding such current plan year] EXCEPT THAT
BEGINNING ON AND AFTER APRIL FIRST, TWO THOUSAND TWENTY-FOUR, FOR
MEMBERS WHO FIRST JOINED THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM
ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE CONTRIBUTION IN ANY
CURRENT PLAN YEAR (APRIL FIRST TO MARCH THIRTY-FIRST) SHALL BE DETER-
MINED BY REFERENCE TO THE BASE WAGES OF SUCH MEMBER AS OF APRIL FIRST IN
THE PREVIOUS PLAN YEAR AS FOLLOWS:
1. MEMBERS WITH WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
2. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
3. MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE NEW YORK STATE TEACHERS' RETIREMENT
SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN
ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
WAGES PROVIDED BY THE EMPLOYER. Annual base wages shall not include
compensation earned for extracurricular programs or any other pensiona-
ble earnings paid in addition to the annual base wages.
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The head of the New York state teachers' retirement system shall
promulgate such regulations as may be necessary and appropriate with
respect to the deduction of such contribution from members' wages and
for the maintenance of any special fund or funds with respect to amounts
so contributed.
§ 4. Section 1204 of the retirement and social security law, as
amended by chapter 18 of the laws of 2012, the second undesignated para-
graph as amended by section 3 of part SS of chapter 56 of the laws of
2022, is amended to read as follows:
§ 1204. Member contributions. Members who are subject to the
provisions of this article shall contribute three percent of annual
wages to the retirement system in which they have membership, [except
that beginning April first, two thousand thirteen for members who first
become members of the New York state and local police and fire retire-
ment system on or after April first, two thousand twelve, the rate at
which each such member shall contribute in any current plan year (April
first to March thirty-first) shall be determined by reference to the
wages of such member in the second plan year (April first to March thir-
ty-first) preceding such current plan year as follows:
a. members with wages of forty-five thousand dollars per annum or less
shall contribute three per centum of annual wages;
b. members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
c. members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
d. members with wages greater than seventy-five thousand per annum but
not more than one hundred thousand per annum shall contribute five and
three-quarters per centum of annual wages; and
e. members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.
Notwithstanding the foregoing, during each of the first three plan
years (April first to March thirty-first) in which such member has
established membership in the New York state and local police and fire
retirement system, such member shall contribute a percentage of annual
wages in accordance with the preceding schedule based upon a projection
of annual wages provided by the employer. Notwithstanding the foregoing,
when determining the rate at which each such member who became a member
of the New York state and local police and fire retirement system on or
after April first, two thousand twelve shall contribute for any plan
year (April first to March thirty-first) between April first, two thou-
sand twenty-two and April first, two thousand twenty-four, such rate
shall be determined by reference to employees annual base wages of such
member in the second plan year (April first to March thirty-first)
preceding such current plan year] EXCEPT THAT BEGINNING ON AND AFTER
APRIL FIRST, TWO THOUSAND TWENTY-FOUR, FOR MEMBERS OF THE NEW YORK STATE
AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM WHO FIRST JOINED ON OR AFTER
APRIL FIRST, TWO THOUSAND TWELVE, THE CONTRIBUTION IN ANY CURRENT PLAN
YEAR (APRIL FIRST TO MARCH THIRTY-FIRST) SHALL BE DETERMINED BY REFER-
ENCE TO THE BASE WAGES OF SUCH MEMBER AS OF APRIL FIRST IN THE PREVIOUS
PLAN YEAR AS FOLLOWS:
1. MEMBERS WITH WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
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2. MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
3. MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE NEW YORK STATE AND LOCAL POLICE AND FIRE
RETIREMENT SYSTEM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL
WAGES IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
OF ANNUAL WAGES PROVIDED BY THE EMPLOYER. Base wages shall include regu-
lar pay, shift differential pay, location pay, and any increased hiring
rate pay, but shall not include any overtime payments. Effective April
first, two thousand twelve, all members subject to the provisions of
this article shall not be required to make member contributions on annu-
al wages excluded from the calculation of final average salary pursuant
to section twelve hundred three of this article. Nothing in this
section, however, shall be construed or deemed to allow members to
receive a refund of any member contributions on such wages paid prior to
April first, two thousand twelve.
Members who are enrolled in a retirement plan that limits the amount
of creditable service a member can accrue shall not be required to make
contributions pursuant to this section after accruing the maximum amount
of service credit allowed by the retirement plan in which they are
enrolled. The state comptroller shall promulgate such regulations as may
be necessary and appropriate with respect to the deduction of such
contribution from members' wages and for the maintenance of any special
fund or funds with respect to amounts so contributed. In no way shall
the member contributions made pursuant to this section be used to
provide for pension increases or annuities of any kind.
§ 5. Subdivision 2 of section 182 of the education law, as amended by
chapter 18 of the laws of 2012, is amended to read as follows:
2. Employee contributions. In the case of any electing employee,
contributions at the rate of three per centum of his state salary shall
be deducted by the state comptroller as the employee contribution,
provided however, that such employee contribution shall be made by the
state in accordance with subdivision one of this section during such
period as (a) either section seventy-a of the retirement and social
security law or section five hundred twenty-eight of this title provides
that the contribution of each member of the New York state employees'
retirement system or the New York state teachers' retirement system in
the employ of the state shall be reduced by at least eight per centum of
his compensation, or (b) employee contributions to either such system
are no longer required by reason of such system becoming noncontributory
for state employees.
Notwithstanding any other law to the contrary, [beginning April first,
two thousand thirteen any electing employee appointed on or after April
first, two thousand twelve, the rate at which each such employee shall
contribute in any current plan year (January first to December thirty-
first) shall be determined by reference to the wages of such member in
the second plan year (January first to December thirty-first) preceding
such current plan year as follows:
(a) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(b) members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
A. 9527 10
(c) members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
(d) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(e) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.
Notwithstanding the foregoing, during each of the first three plan
years (January first to December thirty-first) in which such member has
established membership in the Education Department Optional Retirement
Program, such employee shall contribute a percent of annual wages in
accordance with the preceding schedule based upon a projection of annual
wages provided by the employer] BEGINNING APRIL FIRST, TWO THOUSAND
TWENTY-FOUR, FOR ANY ELECTING EMPLOYEE OF THE EDUCATION DEPARTMENT
OPTIONAL RETIREMENT PROGRAM APPOINTED ON OR AFTER APRIL FIRST, TWO THOU-
SAND TWELVE, THE CONTRIBUTIONS IN THE CURRENT PLAN YEAR (APRIL FIRST TO
MARCH THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE BASE WAGES
OF SUCH MEMBER AS OF APRIL FIRST IN THE PREVIOUS PLAN YEAR AS FOLLOWS:
(A) MEMBERS WITH WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
(B) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
(C) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE EDUCATION DEPARTMENT OPTIONAL RETIREMENT
PROGRAM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES IN
ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF ANNUAL
WAGES PROVIDED BY THE EMPLOYER.
§ 6. Paragraph (d) of subdivision 2 of section 392 of the education
law, as added by chapter 18 of the laws of 2012, is amended to read as
follows:
(d) Notwithstanding any other law to the contrary, [beginning April
first, two thousand thirteen any electing employee appointed on or after
April first, two thousand twelve, the rate at which each such employee
shall contribute in any current plan year (January first to December
thirty-first) shall be determined by reference to the wages of such
member in the second plan year (January first to December thirty-first)
preceding such current plan year as follows:
(i) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(ii) members with wages greater than forty-five thousand per annum,
but not more than fifty-five thousand per annum shall contribute three
and one-half per centum of annual wages;
(iii) members with wages greater than fifty-five thousand per annum,
but not more than seventy-five thousand per annum shall contribute four
and one-half per centum of annual wages;
(iv) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(v) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.
Notwithstanding the foregoing, during each of the first three plan
years (January first to December thirty-first) in which such member has
A. 9527 11
established membership in the State University Optional Retirement
Program, such employee shall contribute a percent of annual wages in
accordance with the preceding schedule based upon a projection of annual
wages provided by the employer] BEGINNING ON AND AFTER APRIL FIRST, TWO
THOUSAND TWENTY-FOUR, FOR ANY ELECTING EMPLOYEE OF THE STATE UNIVERSITY
OPTIONAL RETIREMENT PROGRAM APPOINTED ON OR AFTER APRIL FIRST, TWO THOU-
SAND TWELVE, THE CONTRIBUTIONS IN THE CURRENT PLAN YEAR (APRIL FIRST TO
MARCH THIRTY-FIRST) SHALL BE DETERMINED BY REFERENCE TO THE BASE WAGES
OF SUCH MEMBER AS OF APRIL FIRST IN THE PREVIOUS PLAN YEAR AS FOLLOWS:
(I) MEMBERS WITH WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
(II) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
(III) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
(IV) NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A
MEMBER HAS ESTABLISHED MEMBERSHIP IN THE STATE UNIVERSITY OPTIONAL
RETIREMENT PROGRAM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL
WAGES IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION
OF ANNUAL WAGES PROVIDED BY THE EMPLOYER.
§ 7. Paragraph (d) of subdivision 2 of section 6252 of the education
law, as added by chapter 18 of the laws of 2012, is amended to read as
follows:
(d) Notwithstanding any other law to the contrary, [beginning April
first, two thousand thirteen any electing employee appointed on or after
April first, two thousand twelve, the rate at which each such employee
shall contribute in any current plan year (January first to December
thirty-first) shall be determined by reference to the wages of such
member in the second plan year (January first to December thirty-first)
preceding such current plan year as follows:
(1) members with wages of forty-five thousand dollars per annum or
less shall contribute three per centum of annual wages;
(2) members with wages greater than forty-five thousand per annum, but
not more than fifty-five thousand per annum shall contribute three and
one-half per centum of annual wages;
(3) members with wages greater than fifty-five thousand per annum, but
not more than seventy-five thousand per annum shall contribute four and
one-half per centum of annual wages;
(4) members with wages greater than seventy-five thousand per annum
but not more than one hundred thousand per annum shall contribute five
and three-quarters per centum of annual wages; and
(5) members with wages greater than one hundred thousand per annum
shall contribute six per centum of annual wages.
Notwithstanding the foregoing, during each of the first three plan
years (January first to December thirty-first) in which such member has
established membership in the Board of Higher Education Optional Retire-
ment Program, such employee shall contribute a percent of annual wages
in accordance with the preceding schedule based upon a projection of
annual wages provided by the employer] FOR ANY ELECTING EMPLOYEE OF THE
BOARD OF HIGHER EDUCATION OPTIONAL RETIREMENT PROGRAM APPOINTED ON OR
AFTER APRIL FIRST, TWO THOUSAND TWELVE, THE CONTRIBUTIONS IN THE CURRENT
PLAN YEAR (APRIL FIRST TO MARCH THIRTY-FIRST) SHALL BE DETERMINED BY
REFERENCE TO THE BASE WAGES OF SUCH MEMBER AS OF APRIL FIRST IN THE
PREVIOUS PLAN YEAR AS FOLLOWS:
A. 9527 12
(1) MEMBERS WITH WAGES OF SEVENTY-FIVE THOUSAND DOLLARS PER ANNUM OR
LESS SHALL CONTRIBUTE THREE PER CENTUM OF ANNUAL WAGES;
(2) MEMBERS WITH WAGES GREATER THAN SEVENTY-FIVE THOUSAND PER ANNUM,
BUT NOT MORE THAN ONE HUNDRED THOUSAND PER ANNUM SHALL CONTRIBUTE FOUR
PER CENTUM OF ANNUAL WAGES; AND
(3) MEMBERS WITH WAGES GREATER THAN ONE HUNDRED THOUSAND PER ANNUM
SHALL CONTRIBUTE FIVE PER CENTUM OF ANNUAL WAGES.
NOTWITHSTANDING THE FOREGOING, IN THE FIRST YEAR IN WHICH A MEMBER HAS
ESTABLISHED MEMBERSHIP IN THE BOARD OF HIGHER EDUCATION OPTIONAL RETIRE-
MENT PROGRAM, SUCH MEMBER SHALL CONTRIBUTE A PERCENTAGE OF ANNUAL WAGES
IN ACCORDANCE WITH THE PRECEDING SCHEDULE BASED UPON A PROJECTION OF
ANNUAL WAGES PROVIDED BY THE EMPLOYER.
§ 8. Notwithstanding any other provision of law to the contrary, none
of the provisions of this act shall be subject to section 25 of the
retirement and social security law.
§ 9. This act shall take effect April 1, 2024; provided, however, if
this act shall become a law after such date it shall take effect imme-
diately and shall be deemed to have been in full force and effect on and
after April 1, 2024.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would change the member contribution rates, and the wage
ranges to which member contribution rates are applied, for Tier 6
members effective April 1, 2024.
The proposed contribution rates and wage ranges for Tier 6 members
are:
* three (3) percent for wages of $75,000 or less,
* four (4) percent for wages greater than $75,000 but not more than
$100,000, or
* five (5) percent for wages greater than $100,000.
The current contribution rates and wage ranges for Tier 6 members are:
* three (3) percent for wages of $45,000 or less,
* three and one-half (3.5) percent for wages greater than $45,000
but not more than $55,000,
* four and one-half (4.5) percent for wages greater than $55,000 but
not more than $75,000,
* five and three-quarters (5.75) percent for wages greater than
$75,000 but not more than $100,000, or
* six (6) percent for wages greater than $100,000.
It is anticipated that this proposal will not become law until after
the effective date of April 1, 2024, in which case member contribution
rates will need to be revised retroactively. This will result in signif-
icant administrative costs to the New York State and Local Retirement
System and its more than 3,000 participating employers.
Insofar as this bill affects the New York State and Local Employees'
Retirement System (NYSLERS), if this legislation is enacted during the
2024 Legislative Session, there would be an increase in the present
value of future costs of approximately $1.6 billion which would be
shared by the State of New York and all local participating employers in
the NYSLERS. These costs will be funded by increasing Tier 6 billing
rates by an average 0.9% of salary.
The increased billing rates will result in a recurring, increasing
annual contribution beginning in the fiscal year ending March 31, 2026
of approximately $67 million to the State of New York and approximately
$90 million to local participating employers in the NYSLERS. THESE ANNU-
AL COSTS ARE EXPECTED TO INCREASE SIGNIFICANTLY IN FUTURE YEARS and will
A. 9527 13
vary by employer based upon the plan coverage and salary reported in
Tier 6.
Insofar as this bill affects the New York State and Local Police and
Fire Retirement System (NYSLPFRS), if this legislation is enacted during
the 2024 Legislative Session, there would be an increase in the present
value of future costs of approximately $255 million which would be
shared by the State of New York and all local participating employers in
the NYSLPFRS. These costs will be funded by increasing Tier 6 billing
rates by an average 1.0% of salary.
The increased billing rates will result in a recurring, increasing
annual contribution beginning in the fiscal year ending March 31, 2026
of approximately $5 million to the State of New York and approximately
$18 million to local participating employers in the NYSLPFRS. THESE
ANNUAL COSTS ARE EXPECTED TO INCREASE SIGNIFICANTLY IN FUTURE YEARS and
will vary by employer based upon the plan coverage and salary reported
in Tier 6.
These estimated costs are based on 265,533 Tier 6 members with annual
salary of approximately $12 billion in the NYSLERS and 16,538 Tier 6
members with annual salary of approximately $1.5 billion in the
NYSLPFRS, as of March 31, 2023.
Summary of relevant resources:
Membership data as of March 31, 2023 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2023 actuari-
al valuation. Distributions and other statistics can be found in the
2023 Report of the Actuary and the 2023 Annual Comprehensive Financial
Report.
The actuarial assumptions and methods used are described in the 2023
Annual Report to the Comptroller on Actuarial Assumptions, and the
Codes, Rules and Regulations of the State of New York: Audit and
Control.
The Market Assets and GASB Disclosures are found in the March 31, 2023
New York State and Local Retirement System Financial Statements and
Supplementary Information.
I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
This fiscal note does not constitute a legal opinion on the viability
of the proposed change nor is it intended to serve as a substitute for
the professional judgment of an attorney.
This estimate, dated March 4, 2024, and intended for use only during
the 2024 Legislative Session, is Fiscal Note No. 2024-96, prepared by
the Actuary for the New York State and Local Retirement System.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend various sections of the Retirement and Social
Security Law and the Education Law to reduce the required employee
contribution for Tier 6 members. The salary ranges and employee contrib-
ution rates for Tier 6 members would be changed to the following as of
April 1, 2024:
Salary Employee Contribution Rate
$75,000 and less 3.00%
More than $75,000 to $100,000 4.00%
More than $100,000 5.00%
The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $81.5
million or 0.42% of payroll if this bill is enacted.
The System's "new entrant rate", a hypothetical employer contribution
rate that would occur if we started a new Retirement System without any
A. 9527 14
assets, is equal to 5.31% of pay under the current Tier 6 benefit struc-
ture. This can be thought of as the long-term expected employer cost of
Tier 6, based on current actuarial assumptions. For the proposed change
to the Tier 6 benefit structure under this bill, this new entrant rate
is estimated to increase to 6.13% of pay, an increase of 0.82% of pay.
Member data is from the System's most recent actuarial valuation files
as of June 30, 2023, consisting of data provided by the employers to the
Retirement System. The most recent data distributions and statistics can
be found in the System's Annual Report for fiscal year ended June 30,
2023. System assets are as reported in the System's financial statements
and can also be found in the System's Annual Report. Actuarial assump-
tions and methods are provided in the System's Actuarial Valuation
Report as of June 30, 2023.
The source of this estimate is Fiscal Note 2024-18 dated February 27,
2024 prepared by the Office of the Actuary of the New York State Teach-
ers' Retirement System and is intended for use only during the 2024
Legislative Session. I, Richard A. Young, am the Chief Actuary for the
New York State Teachers' Retirement System. I am a member of the Ameri-
can Academy of Actuaries and I meet the Qualification Standards of the
American Academy of Actuaries to render the actuarial opinion contained
herein.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation, as it relates to the New York City
Retirement Systems and Pension Funds (NYCRS) would reduce the required
Basic Member Contribution (BMC) rates for Tier 6 members of NYCERS, TRS,
and BERS.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS TRS BERS TOTAL
2025 74.9 55.2 6.4 136.5
2026 81.9 58.8 6.9 147.6
2027 89.3 62.8 7.5 159.6
2028 97.0 67.1 8.1 172.2
2029 105.1 71.8 8.8 185.7
2030 113.3 76.8 9.5 199.6
2031 121.7 82.2 10.2 214.1
2032 130.2 88.0 10.9 229.1
2033 138.8 94.2 11.7 244.7
2034 147.7 100.9 12.5 261.1
2035 156.8 107.9 13.3 278.0
2036 165.9 115.3 14.1 295.3
2037 175.2 123.1 15.0 313.3
2038 184.6 131.4 13.5 329.5
2039 194.2 140.3 14.4 348.9
2040 178.7 149.5 15.3 343.5
2041 188.5 159.1 16.2 363.8
2042 198.4 168.8 17.2 384.4
2043 208.4 178.5 18.2 405.1
2044 218.6 169.3 19.1 407.0
2045 228.8 178.9 20.1 427.8
2046 239.1 188.4 21.1 448.6
2047 249.4 197.8 22.2 469.4
2048 259.8 207.0 23.2 490.0
2049 270.2 216.2 24.2 510.6
A. 9527 15
Employer Contribution impact beyond Fiscal year 2049 is not shown.
Projected contributions include future new hires that may be impacted.
The initial increase in employer contributions of $136.5 million is
estimated to be $94.4 million for New York City and $42.1 million for
the other obligors of NYCRS.
INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
as of June 30, 2023 ($ in Millions)
Present Value (PV) NYCERS TRS BERS
PV of Benefits: (70.1) (63.7) (6.4)
PV of Employee Contributions: (900.6) (847.6) (72.9)
PV of Employer Contributions: 830.5 783.9 66.6
Unfunded Accrued Liabilities: 222.0 189.2 19.1
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
NYCERS TRS BERS
Number of Payments: 15 19 13
Fiscal Year of Last Payment: 2039 2043 2037
Amortization Payment: 25.2 M 18.9 M 2.4 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.
NYCERS TRS BERS
Active Members
- Number Count: 85,203 60,663 12,932
- Average Age: 42.4 38.1 46.9
- Average Service: 4.4 5.0 4.0
- Average Salary: 78,900 80,000 56,200
IMPACT ON MEMBER CONTRIBUTIONS: Currently, Tier 6 members of NYCERS,
TRS, and BERS are generally required to make Basic Member Contributions
(BMC) ranging from 3% to 6% of annual wages, determined by the member's
annual wages for the second prior calendar year.
Under the proposed legislation, effective April 1, 2024:
* The required BMC rates for each salary band above $45,000 would be
reduced as shown in the table below.
Salary Band Current Rate Proposed Rate
$45,000 or less 3.00% 3.00%
$45,001 up to $55,000 3.50% 3.00%
$55,001 up to $75,000 4.50% 3.00%
$75,001 up to $100,000 5.75% 4.00%
Greater than $100,000 6.00% 5.00%
* The determination of the member's rate will use a one-year lookback
instead of a two-year lookback.
* The annual wages used for the determination of the member's salary
band would exclude overtime and compensation earned for extracurricular
activities for all years. Currently, this exclusion is set to expire on
January 1, 2025.
A. 9527 16
* New members would use a projection of wages for their first year
instead of their first three years.
For purposes of this Fiscal Note, it has been assumed that members
will retain rights to current rules for determining the contribution
rate for a given calendar year if they result in a lower contribution
rate than under the proposed legislation.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement systems. In addition:
* 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).
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 2024-19 dated March 6,
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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