A. 9822 2
6. "ADMINISTRATIVE CODE" SHALL MEAN THE ADMINISTRATIVE CODE OF THE
CITY OF NEW YORK.
7. "ALLOWABLE SERVICE AS A FIRE PROTECTION INSPECTOR MEMBER" SHALL
MEAN ALL SERVICE AS A FIRE PROTECTION INSPECTOR MEMBER.
B. PARTICIPATION IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM. 1.
SUBJECT TO THE PROVISIONS OF PARAGRAPHS SIX AND SEVEN OF THIS SUBDIVI-
SION, ANY PERSON WHO IS A FIRE PROTECTION INSPECTOR MEMBER ON THE START-
ING DATE OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM AND WHO, AS SUCH A
FIRE PROTECTION INSPECTOR MEMBER OR OTHERWISE, LAST BECAME SUBJECT TO
THE PROVISIONS OF THIS ARTICLE PRIOR TO SUCH STARTING DATE, MAY ELECT TO
BECOME A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM BY
FILING, WITHIN ONE HUNDRED EIGHTY DAYS AFTER THE STARTING DATE OF THE
TWENTY-FIVE YEAR RETIREMENT PROGRAM, A DULY EXECUTED APPLICATION FOR
SUCH PARTICIPATION WITH THE RETIREMENT SYSTEM OF WHICH SUCH PERSON IS A
MEMBER, PROVIDED THEY ARE SUCH A FIRE PROTECTION INSPECTOR MEMBER ON THE
DATE SUCH APPLICATION IS FILED.
2. SUBJECT TO THE PROVISIONS OF PARAGRAPHS SIX AND SEVEN OF THIS
SUBDIVISION, ANY PERSON WHO BECOMES A FIRE PROTECTION INSPECTOR MEMBER
AFTER THE STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM AND
WHO, AS SUCH A FIRE PROTECTION INSPECTOR MEMBER OR OTHERWISE, LAST
BECAME SUBJECT TO THE PROVISIONS OF THIS ARTICLE PRIOR TO SUCH STARTING
DATE, MAY ELECT TO BECOME A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIRE-
MENT PROGRAM BY FILING, WITHIN ONE HUNDRED EIGHTY DAYS AFTER BECOMING
SUCH A FIRE PROTECTION INSPECTOR MEMBER, A DULY EXECUTED APPLICATION FOR
SUCH PARTICIPATION WITH THE RETIREMENT SYSTEM FOR WHICH SUCH PERSON IS A
MEMBER, PROVIDED THEY ARE SUCH A FIRE PROTECTION INSPECTOR MEMBER ON THE
DATE SUCH APPLICATION IS FILED.
3. EACH FIRE PROTECTION INSPECTOR MEMBER, OTHER THAN A FIRE PROTECTION
INSPECTOR MEMBER SUBJECT TO PARAGRAPH ONE OR TWO OF THIS SUBDIVISION,
WHO BECOMES SUBJECT TO THE PROVISIONS OF THIS ARTICLE ON OR AFTER THE
STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM SHALL BECOME A
PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM ON THE DATE THEY
BECOME SUCH A FIRE PROTECTION INSPECTOR MEMBER. PROVIDED, HOWEVER, A
PERSON SUBJECT TO THIS PARAGRAPH, AND WHO HAS EXCEEDED AGE TWENTY-FIVE
UPON EMPLOYMENT AS A FIRE PROTECTION INSPECTOR MEMBER, SHALL BE EXEMPT
FROM PARTICIPATION IN THE IMPROVED TWENTY-FIVE YEAR RETIREMENT PROGRAM
IF SUCH PERSON ELECTS NOT TO PARTICIPATE BY FILING A DULY EXECUTED FORM
WITH THE RETIREMENT SYSTEM WITHIN ONE HUNDRED EIGHTY DAYS OF BECOMING A
FIRE PROTECTION INSPECTOR MEMBER.
4. ANY ELECTION TO BE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
PROGRAM SHALL BE IRREVOCABLE.
5. WHERE ANY PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
SHALL CEASE TO BE EMPLOYED AS A FIRE PROTECTION INSPECTOR MEMBER, THEY
SHALL CEASE TO BE SUCH A PARTICIPANT AND, DURING ANY PERIOD IN WHICH
SUCH PERSON IS NOT SO EMPLOYED, THEY SHALL NOT BE A PARTICIPANT IN THE
TWENTY-FIVE YEAR RETIREMENT PROGRAM AND SHALL NOT BE ELIGIBLE FOR THE
BENEFITS OF SUBDIVISION C OF THIS SECTION.
6. WHERE ANY PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
TERMINATES SERVICE AS A FIRE PROTECTION INSPECTOR MEMBER AND RETURNS TO
SUCH SERVICE AS A FIRE PROTECTION INSPECTOR MEMBER AT A LATER DATE, THEY
SHALL AGAIN BECOME SUCH A PARTICIPANT ON THAT DATE.
7. NOTWITHSTANDING ANY OTHER PROVISION OF THE LAW TO THE CONTRARY, ANY
PERSON WHO IS ELIGIBLE TO ELECT TO BECOME A PARTICIPANT IN THE TWENTY-
FIVE YEAR RETIREMENT PROGRAM PURSUANT TO PARAGRAPH ONE OR TWO OF THIS
SUBDIVISION FOR THE FULL ONE HUNDRED EIGHTY DAY PERIOD PROVIDED FOR IN
SUCH APPLICABLE PARAGRAPH AND WHO FAILS TO TIMELY FILE A DULY EXECUTED
A. 9822 3
APPLICATION FOR SUCH PARTICIPATION WITH THE RETIREMENT SYSTEM, SHALL NOT
THEREAFTER BE ELIGIBLE TO BECOME A PARTICIPANT IN SUCH PROGRAM.
C. SERVICE RETIREMENT BENEFITS. 1. A PARTICIPANT IN THE TWENTY-FIVE
YEAR RETIREMENT PROGRAM:
(I) WHO HAS COMPLETED TWENTY-FIVE OR MORE YEARS OF ALLOWABLE SERVICE
AS A FIRE PROTECTION INSPECTOR MEMBER; AND
(II) WHO HAS PAID, BEFORE THE EFFECTIVE DATE OF RETIREMENT, ALL ADDI-
TIONAL MEMBER CONTRIBUTIONS AND INTEREST (IF ANY) REQUIRED BY SUBDIVI-
SION E OF THIS SECTION; AND
(III) WHO FILES WITH THE RETIREMENT SYSTEM OF WHICH THEY ARE A MEMBER
AN APPLICATION FOR SERVICE RETIREMENT SETTING FORTH AT WHAT TIME, NOT
LESS THAN THIRTY DAYS SUBSEQUENT TO THE EXECUTION AND FILING THEREOF,
THEIR DESIRE TO BE RETIRED; AND
(IV) WHO SHALL BE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
PROGRAM AT THE TIME SO SPECIFIED FOR THEIR RETIREMENT; SHALL BE RETIRED
PURSUANT TO THE PROVISIONS OF THIS SECTION AFFORDING EARLY SERVICE
RETIREMENT.
2. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION A-1 OF SECTION SIX
HUNDRED THREE OF THIS ARTICLE, OR ANY OTHER PROVISION OF LAW TO THE
CONTRARY, AND SUBJECT TO THE PROVISIONS OF PARAGRAPH SIX OF SUBDIVISION
E OF THIS SECTION, THE EARLY SERVICE RETIREMENT BENEFIT FOR PARTICIPANTS
IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM WHO RETIRE PURSUANT TO PARA-
GRAPH ONE OF THIS SUBDIVISION SHALL BE A RETIREMENT ALLOWANCE CONSISTING
OF:
(I) AN AMOUNT, ON ACCOUNT OF THE REQUIRED MINIMUM PERIOD OF SERVICE,
EQUAL TO FIFTY PERCENT OF THEIR FINAL AVERAGE SALARY; PLUS
(II) AN AMOUNT ON ACCOUNT OF ALLOWABLE SERVICE AS A FIRE PROTECTION
INSPECTOR MEMBER, OR FRACTION THEREOF, BEYOND SUCH REQUIRED MINIMUM
PERIOD OF SERVICE EQUAL TO TWO PERCENT OF THEIR FINAL SALARY FOR SUCH
ALLOWABLE SERVICE AS A FIRE PROTECTION INSPECTOR MEMBER DURING THE PERI-
OD FROM COMPLETION OF TWENTY-FIVE YEARS OF ALLOWABLE SERVICE AS A FIRE
PROTECTION INSPECTOR MEMBER TO THE DATE OF RETIREMENT BUT NOT TO EXCEED
MORE THAN FIVE YEARS OF ADDITIONAL SERVICE AS A FIRE PROTECTION INSPEC-
TOR MEMBER.
D. VESTING. 1. A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
PROGRAM:
(I) WHO DISCONTINUES SERVICE AS SUCH A PARTICIPANT, OTHER THAN BY
DEATH OR RETIREMENT; AND
(II) WHO PRIOR TO SUCH DISCONTINUANCE, COMPLETED FIVE BUT LESS THAN
TWENTY-FIVE YEARS OF ALLOWABLE SERVICE AS A FIRE PROTECTION INSPECTOR
MEMBER; AND
(III) WHO, SUBJECT TO THE PROVISIONS OF PARAGRAPH SEVEN OF SUBDIVISION
E OF THIS SECTION, HAS PAID, PRIOR TO SUCH DISCONTINUANCE, ALL ADDI-
TIONAL MEMBER CONTRIBUTIONS AND INTEREST (IF ANY) REQUIRED BY SUBDIVI-
SION E OF THIS SECTION; AND
(IV) WHO DOES NOT WITHDRAW IN WHOLE OR IN PART THEIR ACCUMULATED
MEMBER CONTRIBUTIONS PURSUANT TO SECTION SIX HUNDRED THIRTEEN OF THIS
ARTICLE UNLESS SUCH PARTICIPANT THEREAFTER RETURNS TO PUBLIC SERVICE AND
REPAYS THE AMOUNTS SO WITHDRAWN, TOGETHER WITH INTEREST, PURSUANT TO
SUCH SECTION SIX HUNDRED THIRTEEN; SHALL BE ENTITLED TO RECEIVE A
DEFERRED VESTED BENEFIT AS PROVIDED IN THIS SUBDIVISION.
2. (I) UPON SUCH DISCONTINUANCE UNDER THE CONDITIONS AND IN COMPLIANCE
WITH THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION, SUCH DEFERRED
VESTED BENEFIT SHALL VEST AUTOMATICALLY.
(II) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, SUCH VESTED BENEFIT SHALL BECOME PAYABLE ON THE EARLIEST
A. 9822 4
DATE ON WHICH SUCH DISCONTINUED MEMBER COULD HAVE RETIRED FOR SERVICE IF
SUCH DISCONTINUANCE HAD NOT OCCURRED OR, IN THE CASE OF A PARTICIPANT
WHO IS A NEW YORK CITY REVISED PLAN MEMBER, SUCH VESTED BENEFIT SHALL
BECOME PAYABLE AT AGE SIXTY-THREE. SUBJECT TO THE PROVISIONS OF PARA-
GRAPH SEVEN OF SUBDIVISION E OF THIS SECTION, SUCH DEFERRED VESTED BENE-
FIT SHALL BE A RETIREMENT ALLOWANCE CONSISTING OF AN AMOUNT EQUAL TO TWO
PERCENT OF SUCH DISCONTINUED MEMBER'S FINAL AVERAGE SALARY, MULTIPLIED
BY THE NUMBER OF YEARS OF CREDITED SERVICE.
E. ADDITIONAL MEMBER CONTRIBUTIONS. 1. IN ADDITION TO THE MEMBER
CONTRIBUTIONS REQUIRED BY SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE,
EACH PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM SHALL
CONTRIBUTE TO THE RETIREMENT SYSTEM OF WHICH THEY ARE A MEMBER (SUBJECT
TO THE APPLICABLE PROVISIONS OF SUBDIVISION D OF SECTION SIX HUNDRED
THIRTEEN OF THIS ARTICLE AND SUBJECT TO THE LIMITATION PROVIDED FOR IN
PARAGRAPH TWO OF THIS SUBDIVISION) AN ADDITIONAL SIX AND TWENTY-FIVE
ONE-HUNDREDTHS PERCENT OF THEIR COMPENSATION EARNED FROM (I) ALL ALLOW-
ABLE SERVICE, AS A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
PROGRAM, RENDERED ON OR AFTER THE STARTING DATE OF THE TWENTY-FIVE YEAR
RETIREMENT PROGRAM, AND (II) ALL ALLOWABLE SERVICE AFTER SUCH PERSON
CEASES TO BE A PARTICIPANT, BUT BEFORE THEY AGAIN BECOME A PARTICIPANT
PURSUANT TO PARAGRAPH SIX OF SUBDIVISION B OF THIS SECTION. THE ADDI-
TIONAL CONTRIBUTIONS REQUIRED BY THIS SECTION SHALL BE IN LIEU OF ADDI-
TIONAL MEMBER CONTRIBUTIONS REQUIRED BY SUBDIVISION D OF SECTION SIX
HUNDRED FOUR-C OF THIS ARTICLE, AS ADDED BY CHAPTER NINETY-SIX OF THE
LAWS OF NINETEEN HUNDRED NINETY-FIVE, AND NO MEMBER MAKING ADDITIONAL
CONTRIBUTIONS PURSUANT TO THIS SECTION SHALL BE REQUIRED TO MAKE
CONTRIBUTIONS PURSUANT TO SUCH SUBDIVISION D OF SECTION SIX HUNDRED
FOUR-C OF THIS ARTICLE. NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS
PARAGRAPH, THE ADDITIONAL MEMBER CONTRIBUTION REQUIRED TO BE PAID BY
EACH PARTICIPANT PURSUANT TO THIS PARAGRAPH SHALL NOT EXCEED THE
PERCENTAGE OF THEIR COMPENSATION THAT, WHEN ADDED TO THE CONTRIBUTION
MADE PURSUANT TO SUBDIVISION D OF SECTION SIX HUNDRED THIRTEEN OF THIS
ARTICLE, EQUALS NINE AND TWENTY-FIVE ONE-HUNDREDTHS PERCENT OF THAT
COMPENSATION.
2. A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM SHALL
CONTRIBUTE ADDITIONAL MEMBER CONTRIBUTIONS UNTIL THE LATER OF (I) THE
FIRST ANNIVERSARY OF THE STARTING DATE OF THE TWENTY-FIVE YEAR RETIRE-
MENT PROGRAM, OR (II) THE DATE ON WHICH THEY COMPLETE THIRTY YEARS OF
ALLOWABLE SERVICE AS A FIRE PROTECTION INSPECTOR MEMBER.
3. COMMENCING WITH THE FIRST FULL PAYROLL PERIOD AFTER EACH PERSON
BECOMES A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM, ADDI-
TIONAL MEMBER CONTRIBUTIONS AT THE RATE SPECIFIED IN PARAGRAPH ONE OF
THIS SUBDIVISION SHALL BE DEDUCTED (SUBJECT TO THE APPLICABLE PROVISIONS
OF SUBDIVISION D OF SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE) FROM
THE COMPENSATION OF SUCH PARTICIPANT ON EACH AND EVERY PAYROLL OF SUCH
PARTICIPANT FOR EACH AND EVERY PAYROLL PERIOD FOR WHICH THEY ARE SUCH A
PARTICIPANT.
4. (I) EACH PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
SHALL BE CHARGED WITH A CONTRIBUTION DEFICIENCY CONSISTING OF THE TOTAL
AMOUNTS OF ADDITIONAL MEMBER CONTRIBUTIONS SUCH PERSON IS REQUIRED TO
MAKE PURSUANT TO PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION WHICH ARE
NOT DEDUCTED FROM THEIR COMPENSATION PURSUANT TO PARAGRAPH THREE OF THIS
SUBDIVISION, IF ANY, TOGETHER WITH INTEREST THEREON, COMPOUNDED ANNUAL-
LY, AND COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF SUBPARAGRAPHS (II)
AND (III) OF THIS PARAGRAPH.
A. 9822 5
(II) (A) THE INTEREST REQUIRED TO BE PAID ON EACH SUCH AMOUNT SPECI-
FIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL ACCRUE FROM THE END OF
THE PAYROLL PERIOD FOR WHICH SUCH AMOUNT WOULD HAVE BEEN DEDUCTED FROM
COMPENSATION IF THEY HAD BEEN A PARTICIPANT AT THE BEGINNING OF THAT
PAYROLL PERIOD AND SUCH DEDUCTION HAD BEEN REQUIRED FOR SUCH PAYROLL
PERIOD, UNTIL SUCH AMOUNT IS PAID TO THE RETIREMENT SYSTEM.
(B) THE RATE OF INTEREST TO BE APPLIED TO EACH SUCH AMOUNT DURING THE
PERIOD FOR WHICH INTEREST ACCRUES ON THAT AMOUNT SHALL BE EQUAL TO THE
RATE OR RATES OF INTEREST REQUIRED BY LAW TO BE USED DURING THAT SAME
PERIOD TO CREDIT INTEREST ON THE ACCUMULATED DEDUCTIONS OF RETIREMENT
SYSTEM MEMBERS.
(III) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH FIVE OF THIS SUBDIVI-
SION, NO INTEREST SHALL BE DUE ON ANY UNPAID ADDITIONAL MEMBER CONTRIB-
UTIONS WHICH ARE NOT ATTRIBUTABLE TO A PERIOD PRIOR TO THE FIRST FULL
PAYROLL PERIOD REFERRED TO IN PARAGRAPH THREE OF THIS SUBDIVISION.
5. (I) SHOULD ANY PERSON WHO, PURSUANT TO SUBPARAGRAPH (II) OF PARA-
GRAPH TEN OF THIS SUBDIVISION, HAS RECEIVED A REFUND OF THEIR ADDITIONAL
MEMBER CONTRIBUTION INCLUDING ANY INTEREST PAID ON SUCH CONTRIBUTIONS,
AGAIN BECOME A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
PURSUANT TO PARAGRAPH SIX OF SUBDIVISION B OF THIS SECTION, AN APPROPRI-
ATE AMOUNT SHALL BE INCLUDED IN SUCH PARTICIPANT'S CONTRIBUTION DEFI-
CIENCY (INCLUDING INTEREST THEREON AS CALCULATED PURSUANT TO SUBPARA-
GRAPH (II) OF THIS PARAGRAPH) FOR ANY CREDITED SERVICE FOR WHICH SUCH
PERSON RECEIVED A REFUND OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS
(INCLUDING ANY AMOUNT OF AN UNPAID LOAN BALANCE DEEMED TO HAVE BEEN
RETURNED TO SUCH PERSON PURSUANT TO PARAGRAPH TWELVE OF THIS SUBDIVI-
SION), AS IF SUCH ADDITIONAL MEMBER CONTRIBUTIONS NEVER HAD BEEN PAID.
(II)(A) INTEREST ON A PARTICIPANT'S ADDITIONAL MEMBER CONTRIBUTIONS
INCLUDED IN SUCH PARTICIPANT'S CONTRIBUTION DEFICIENCY PURSUANT TO
SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL BE CALCULATED AS IF SUCH ADDI-
TIONAL MEMBER CONTRIBUTIONS HAD NEVER BEEN PAID BY SUCH PARTICIPANT, AND
SUCH INTEREST SHALL ACCRUE FROM THE END OF THE PAYROLL PERIOD TO WHICH
AN AMOUNT OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS IS ATTRIBUTABLE, UNTIL
SUCH AMOUNT IS PAID TO THE RETIREMENT SYSTEM.
(B) THE RATE OF INTEREST TO BE APPLIED TO EACH SUCH AMOUNT DURING THE
PERIOD FOR WHICH INTEREST ACCRUES ON THAT AMOUNT SHALL BE FIVE PERCENT
PER ANNUM, COMPOUNDED ANNUALLY.
6. WHERE A PARTICIPANT WHO IS OTHERWISE ELIGIBLE FOR SERVICE RETIRE-
MENT PURSUANT TO SUBDIVISION C OF THIS SECTION DID NOT, PRIOR TO THE
EFFECTIVE DATE OF RETIREMENT, PAY THE ENTIRE AMOUNT OF A CONTRIBUTION
DEFICIENCY CHARGEABLE TO THEM PURSUANT TO PARAGRAPHS FOUR AND FIVE OF
THIS SUBDIVISION, OR REPAY THE ENTIRE AMOUNT OF A LOAN OF THEIR ADDI-
TIONAL MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH ELEVEN OF THIS SUBDI-
VISION (INCLUDING ACCRUED INTEREST ON SUCH LOAN), THAT PARTICIPANT,
NEVERTHELESS, SHALL BE ELIGIBLE TO RETIRE PURSUANT TO SUBDIVISION C OF
THIS SECTION, PROVIDED, HOWEVER, THAT SUCH PARTICIPANT'S SERVICE RETIRE-
MENT BENEFIT CALCULATED PURSUANT TO PARAGRAPH TWO OF SUCH SUBDIVISION C
OF THIS SECTION SHALL BE REDUCED BY A LIFE ANNUITY (CALCULATED IN
ACCORDANCE WITH THE METHOD SET FORTH IN SUBDIVISION I OF SECTION SIX
HUNDRED THIRTEEN-B OF THIS ARTICLE) WHICH IS ACTUARIALLY EQUIVALENT TO:
(I) THE AMOUNT OF ANY UNPAID CONTRIBUTION DEFICIENCY CHARGEABLE TO
SUCH MEMBER PURSUANT TO PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION;
PLUS
(II) THE AMOUNT OF ANY UNPAID BALANCE OF A LOAN OF THEIR ADDITIONAL
MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH ELEVEN OF THIS SUBDIVISION
(INCLUDING ACCRUED INTEREST ON SUCH LOAN).
A. 9822 6
7. WHERE A PARTICIPANT WHO IS OTHERWISE ELIGIBLE FOR A VESTED RIGHT TO
A DEFERRED BENEFIT PURSUANT TO SUBDIVISION D OF THIS SECTION DID NOT,
PRIOR TO THE DATE OF DISCONTINUANCE OF SERVICE, PAY THE ENTIRE AMOUNT OF
A CONTRIBUTION DEFICIENCY CHARGEABLE TO THEM PURSUANT TO PARAGRAPHS FOUR
AND FIVE OF THIS SUBDIVISION, OR REPAY THE ENTIRE AMOUNT OF A LOAN OF
THEIR ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH ELEVEN OF
THIS SUBDIVISION (INCLUDING ACCRUED INTEREST ON SUCH LOAN), THAT PARTIC-
IPANT, NEVERTHELESS, SHALL HAVE A VESTED RIGHT TO A DEFERRED BENEFIT
PURSUANT TO SUBDIVISION D OF THIS SECTION PROVIDED, HOWEVER, THAT THE
DEFERRED VESTED BENEFIT CALCULATED PURSUANT TO PARAGRAPH TWO OF SUBDIVI-
SION D OF THIS SECTION SHALL BE REDUCED BY A LIFE ANNUITY (CALCULATED IN
ACCORDANCE WITH THE METHOD SET FORTH IN SUBDIVISION I OF SECTION SIX
HUNDRED THIRTEEN-B OF THIS ARTICLE) WHICH IS ACTUARIALLY EQUIVALENT TO:
(I) THE AMOUNT OF ANY UNPAID CONTRIBUTION CHARGEABLE TO SUCH MEMBER
PURSUANT TO PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION; PLUS
(II) THE AMOUNT OF ANY UNPAID BALANCE OF A LOAN OF THEIR ADDITIONAL
MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH ELEVEN OF THIS SUBDIVISION
(INCLUDING ACCRUED INTEREST ON SUCH A LOAN).
8. THE HEAD OF A RETIREMENT SYSTEM WHICH INCLUDES PARTICIPANTS IN THE
TWENTY-FIVE YEAR RETIREMENT PROGRAM IN ITS MEMBERSHIP MAY, CONSISTENT
WITH THE PROVISIONS OF THIS SUBDIVISION, PROMULGATE REGULATIONS FOR THE
PAYMENT OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS, AND ANY INTEREST THERE-
ON, BY SUCH PARTICIPANTS (INCLUDING THE DEDUCTION OF SUCH CONTRIBUTIONS,
AND ANY INTEREST THEREON, FROM THE PARTICIPANT'S COMPENSATION).
9. SUBJECT TO THE PROVISIONS OF PARAGRAPHS SIX AND SEVEN OF THIS
SUBDIVISION, WHERE A PARTICIPANT HAS NOT PAID IN FULL ANY CONTRIBUTION
DEFICIENCY CHARGEABLE TO THEM PURSUANT TO PARAGRAPHS FOUR AND FIVE OF
THIS SUBDIVISION, AND A BENEFIT, OTHER THAN A REFUND OF MEMBER CONTRIB-
UTIONS PURSUANT TO SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE OR A
REFUND OF ADDITIONAL MEMBER CONTRIBUTIONS PURSUANT TO SUBPARAGRAPH (II)
OF PARAGRAPH TEN OF THIS SUBDIVISION, BECOMES PAYABLE UNDER THIS ARTICLE
TO THE PARTICIPANT OR TO THEIR DESIGNATED BENEFICIARY OR ESTATE, THE
ACTUARIAL EQUIVALENT OF ANY SUCH UNPAID AMOUNT SHALL BE DEDUCTED FROM
THE BENEFIT OTHERWISE PAYABLE.
10. (I) SUCH ADDITIONAL MEMBER CONTRIBUTIONS (AND ANY INTEREST THERE-
ON) SHALL BE PAID INTO THE CONTINGENT RESERVE FUND OF THE RETIREMENT
SYSTEM OF WHICH THE PARTICIPANT IS A MEMBER AND SHALL NOT FOR ANY
PURPOSE BE DEEMED TO BE MEMBER CONTRIBUTIONS OR ACCUMULATED CONTRIB-
UTIONS OF A MEMBER UNDER SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE OR
OTHERWISE WHILE THEY ARE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIRE-
MENT PROGRAM OR OTHERWISE.
(II) SHOULD A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
WHO HAS RENDERED LESS THAN FIFTEEN YEARS OF CREDITED SERVICE CEASE TO
HOLD A POSITION AS A FIRE PROTECTION INSPECTOR MEMBER FOR ANY REASON
WHATSOEVER, THEIR ACCUMULATED ADDITIONAL MEMBER CONTRIBUTIONS MADE
PURSUANT TO THIS SUBDIVISION (TOGETHER WITH ANY INTEREST THEREON PAID TO
THE RETIREMENT SYSTEM) MAY BE WITHDRAWN BY THEM PURSUANT TO PROCEDURES
PROMULGATED IN REGULATIONS OF THE BOARD OF TRUSTEES OF THE RETIREMENT
SYSTEM, TOGETHER WITH INTEREST THEREON AT THE RATE OF FIVE PERCENT PER
ANNUM, COMPOUNDED ANNUALLY.
(III) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, (A)
NO PERSON SHALL BE PERMITTED TO WITHDRAW FROM THE RETIREMENT SYSTEM ANY
ADDITIONAL MEMBER CONTRIBUTIONS PAID PURSUANT TO THIS SUBDIVISION OR ANY
INTEREST PAID THEREON, EXCEPT PURSUANT TO AND IN ACCORDANCE WITH THE
PRECEDING SUBPARAGRAPHS OF THIS PARAGRAPH; AND (B) NO PERSON, WHILE THEY
ARE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM, SHALL BE
A. 9822 7
PERMITTED TO WITHDRAW ANY SUCH ADDITIONAL MEMBER CONTRIBUTIONS OR ANY
INTEREST PAID THEREON PURSUANT TO ANY OF THE PRECEDING SUBPARAGRAPHS OF
THIS PARAGRAPH OR OTHERWISE.
11. A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM SHALL BE
PERMITTED TO BORROW FROM THEIR ADDITIONAL MEMBER CONTRIBUTIONS (INCLUD-
ING ANY INTEREST PAID THEREON) WHICH ARE CREDITED TO THE ADDITIONAL
CONTRIBUTIONS ACCOUNT ESTABLISHED FOR SUCH PARTICIPANT IN THE CONTINGENT
RESERVE FUND OF THE RETIREMENT SYSTEM. THE BORROWING FROM SUCH ADDI-
TIONAL MEMBER CONTRIBUTIONS PURSUANT TO THIS PARAGRAPH SHALL BE GOVERNED
BY THE RIGHTS, PRIVILEGES, OBLIGATIONS, AND PROCEDURES SET FORTH IN
SECTION SIX HUNDRED THIRTEEN-B OF THIS ARTICLE WHICH GOVERN THE BORROW-
ING OF MEMBER CONTRIBUTIONS MADE PURSUANT TO SECTION SIX HUNDRED THIR-
TEEN OF THIS ARTICLE. THE BOARD OF TRUSTEES OF THE RETIREMENT SYSTEM
MAY, CONSISTENT WITH THE PROVISIONS OF THIS SUBDIVISION AND THE
PROVISIONS OF SECTION SIX HUNDRED THIRTEEN-B OF THIS ARTICLE AS MADE
APPLICABLE TO THIS SUBDIVISION, PROMULGATE REGULATIONS GOVERNING THE
BORROWING OF SUCH ADDITIONAL MEMBER CONTRIBUTIONS.
12. WHENEVER A PERSON HAS AN UNPAID BALANCE OF A LOAN OR THEIR ADDI-
TIONAL MEMBER CONTRIBUTIONS PURSUANT TO PARAGRAPH ELEVEN OF THIS SUBDI-
VISION AT THE TIME THEY BECOME ENTITLED TO A REFUND OF THEIR ADDITIONAL
MEMBER CONTRIBUTIONS PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH TEN OF
THIS SUBDIVISION, THE AMOUNT OF SUCH UNPAID LOAN BALANCE (INCLUDING
ACCRUED INTEREST) SHALL BE DEEMED TO HAVE BEEN RETURNED TO SUCH MEMBER,
AND THE REFUND OF SUCH ADDITIONAL CONTRIBUTIONS SHALL BE THE NET AMOUNT
OF SUCH CONTRIBUTION, TOGETHER WITH INTEREST THEREON IN ACCORDANCE WITH
THE PROVISIONS OF SUCH SUBPARAGRAPH (II).
§ 2. Subdivision d of section 613 of the retirement and social securi-
ty law is amended by adding a new paragraph 12 to read as follows:
12. (I) THE CITY OF NEW YORK SHALL, IN THE CASE OF A FIRE PROTECTION
INSPECTOR MEMBER (AS DEFINED IN PARAGRAPH ONE OF SUBDIVISION A OF
SECTION SIX HUNDRED FOUR-J OF THIS ARTICLE) WHO IS A PARTICIPANT IN THE
TWENTY-FIVE YEAR RETIREMENT PROGRAM (AS DEFINED IN PARAGRAPH FOUR OF
SUBDIVISION A OF SUCH SECTION SIX HUNDRED FOUR-J), PICK UP AND PAY TO
THE RETIREMENT SYSTEM OF WHICH SUCH PARTICIPANT IS A MEMBER ALL ADDI-
TIONAL MEMBER CONTRIBUTIONS WHICH OTHERWISE WOULD BE REQUIRED TO BE
DEDUCTED FROM SUCH MEMBER'S COMPENSATION PURSUANT TO PARAGRAPHS ONE AND
TWO OF SUBDIVISION E OF SUCH SECTION SIX HUNDRED FOUR-J OF THIS ARTICLE
(NOT INCLUDING ANY ADDITIONAL MEMBER CONTRIBUTIONS DUE FOR ANY PERIOD
PRIOR TO THE FIRST FULL PAYROLL PERIOD REFERRED TO IN SUCH PARAGRAPH
THREE OF SUCH SUBDIVISION E), AND SHALL EFFECT SUCH PICK UP IN EACH AND
EVERY PAYROLL OF SUCH PARTICIPANT FOR EACH AND EVERY PAYROLL PERIOD WITH
RESPECT TO WHICH SUCH PARAGRAPH THREE WOULD OTHERWISE REQUIRE SUCH
DEDUCTIONS.
(II) AN AMOUNT EQUAL TO THE AMOUNT OF ADDITIONAL CONTRIBUTIONS PICKED
UP PURSUANT TO THIS PARAGRAPH SHALL BE DEDUCTED BY SUCH EMPLOYER FROM
THE COMPENSATION OF SUCH MEMBER (AS SUCH COMPENSATION WOULD BE IN THE
ABSENCE OF A PICK UP PROGRAM APPLICABLE TO THEM HEREUNDER) AND SHALL NOT
BE PAID TO SUCH MEMBER.
(III) THE ADDITIONAL MEMBER CONTRIBUTIONS PICKED UP PURSUANT TO THIS
PARAGRAPH FOR ANY SUCH MEMBER SHALL BE PAID BY SUCH EMPLOYER IN LIEU OF
AN EQUAL AMOUNT OF ADDITIONAL MEMBER CONTRIBUTIONS OTHERWISE REQUIRED TO
BE PAID BY SUCH MEMBER UNDER THE APPLICABLE PROVISIONS OF SUBDIVISION E
OF SECTION SIX HUNDRED FOUR-J OF THIS ARTICLE, AND SHALL BE DEEMED TO BE
AND TREATED AS EMPLOYER CONTRIBUTIONS PURSUANT TO SECTION 414(H) OF THE
INTERNAL REVENUE CODE.
A. 9822 8
(IV) FOR THE PURPOSE OF DETERMINING THE RETIREMENT SYSTEM RIGHTS,
BENEFITS, AND PRIVILEGES OF ANY MEMBER WHOSE ADDITIONAL MEMBER CONTRIB-
UTIONS ARE PICKED UP PURSUANT TO THIS PARAGRAPH, SUCH PICKED UP ADDI-
TIONAL MEMBER CONTRIBUTIONS SHALL BE DEEMED TO BE AND TREATED AS PART OF
SUCH MEMBER'S ADDITIONAL MEMBER CONTRIBUTIONS UNDER THE APPLICABLE
PROVISIONS OF SUBDIVISION E OF SECTION SIX HUNDRED FOUR-J OF THIS ARTI-
CLE.
(V) WITH THE EXCEPTION OF FEDERAL INCOME TAX TREATMENT, THE ADDITIONAL
MEMBER CONTRIBUTIONS PICKED UP PURSUANT TO SUBPARAGRAPH (I) OF THIS
PARAGRAPH SHALL FOR ALL OTHER PURPOSES, INCLUDING COMPUTATION OF RETIRE-
MENT BENEFITS AND CONTRIBUTIONS BY EMPLOYERS AND EMPLOYEES, BE DEEMED
EMPLOYEE SALARY. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE
CONSTRUED AS SUPERSEDING THE PROVISIONS OF SECTION FOUR HUNDRED THIRTY-
ONE OF THIS CHAPTER, OR ANY SIMILAR PROVISION OF LAW WHICH LIMITS THE
SALARY BASE FOR COMPUTING RETIREMENT BENEFITS PAYABLE BY A PUBLIC
RETIREMENT SYSTEM.
§ 3. Subdivision a of section 603 of the retirement and social securi-
ty law, as amended by chapter 18 of the laws of 2012, is amended to read
as follows:
a. The service retirement benefit specified in section six hundred
four of this article shall be payable to members who have met the mini-
mum service requirements upon retirement and attainment of age sixty-
two, other than members who are eligible for early service retirement
pursuant to subdivision c of section six hundred four-b of this article,
subdivision c of section six hundred four-c of this article, subdivision
d of section six hundred four-d of this article, subdivision c of
section six hundred four-e of this article, subdivision c of section six
hundred four-f of this article, subdivision c of section six hundred
four-g of this article, subdivision c of section six hundred four-h of
this article [or] subdivision c of section six hundred four-i of this
article, OR SUBDIVISION C OF SECTION SIX HUNDRED FOUR-J OF THIS ARTICLE,
provided, however, a member of a teachers' retirement system or the New
York state and local employees' retirement system who first joins such
system before January first, two thousand ten or a member who is a
uniformed court officer or peace officer employed by the unified court
system who first becomes a member of the New York state and local
employees' retirement system before April first, two thousand twelve may
retire without reduction of [his or her] THEIR retirement benefit upon
attainment of at least fifty-five years of age and completion of thirty
or more years of service, provided, however, that a uniformed court
officer or peace officer employed by the unified court system who first
becomes a member of the New York state and local employees' retirement
system on or after January first, two thousand ten and retires without
reduction of [his or her] THEIR retirement benefit upon attainment of at
least fifty-five years of age and completion of thirty or more years of
service pursuant to this section shall be required to make the member
contributions required by subdivision f of section six hundred thirteen
of this article for all years of credited and creditable service,
provided further that the [the] preceding provisions of this subdivision
shall not apply to a New York city revised plan member.
§ 4. Nothing contained in sections two and three of this act shall be
construed to create any contractual right with respect to members to
whom such sections apply. The provisions of such sections are intended
to afford members the advantages of certain benefits contained in the
internal revenue code, and the effectiveness and existence of such
sections and benefits they confer are completely contingent thereon.
A. 9822 9
§ 5. This act shall take effect immediately, provided, however that:
(a) The provisions of sections two and three of this act shall remain
in full force and effect only so long as, pursuant to federal law,
contributions picked up under such sections are not includable as gross
income of a member for federal income tax purposes until distributed or
made available to the member; provided that the New York city employees'
retirement system shall notify the legislative bill drafting commission
upon the occurrence of such a change in federal law ruling affecting the
provisions of this act in order that the commission may maintain an
accurate and timely effective data base of the official text of the laws
of the state of New York in furtherance of effectuating the provisions
of section 44 of the legislative law and section 70-b of the public
officers law;
(b) The amendments to subdivision a of section 603 of the retirement
and social security law made by section three of this act shall not
affect the expiration of such subdivision and shall be deemed to expire
therewith.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would establish 25-Year Retirement
Programs for Fire Protection Inspectors (FPI 25-Year Plans) for Tier 4
and Tier 6 members of NYCERS.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Thousands)
Year NYCERS
2025 321.8
2026 309.8
2027 299.1
2028 290.0
2029 281.4
2030 273.4
2031 264.3
2032 256.8
2033 250.5
2034 241.9
2035 232.1
2036 223.9
2037 24.9
2038 17.1
2039 9.4
2040 3.3
2041 (0.9)
2042 (4.7)
2043 (7.8)
2044 (9.9)
2045 (11.1)
2046 (11.6)
2047 (11.5)
2048 (11.5)
2049 (11.8)
Employer Contribution impact beyond Fiscal Year 2049 is not shown.
Projected contributions include future new hires that may be impacted.
The entire increase (decrease) in employer contributions will be allo-
cated to New York City.
A. 9822 10
INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
as of June 30, 2023 ($ in Millions)
Present Value (PV) NYCERS
PV of Benefits: 3.3
PV of Employee Contributions: 1.9
PV of Employer Contributions: 1.4
Unfunded Accrued Liabilities: 1.5
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
NYCERS
Number of Payments: 12
Fiscal Year of Last Payment: 2036
Amortization Payment: 192 K
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 fire
protection inspectors assumed to elect an FPI 25-Year Plan is summarized
below.
NYCERS
Active Members
- Number Count: 82
- Average Age: 41.6
- Average Service: 13.6
- Average Salary: 88,200
IMPACT ON MEMBER BENEFITS AND CONTRIBUTIONS: The proposed legislation
would provide fire protection inspectors a service retirement benefit
under the FPI 25-Year Plans equal to 50% of Final Average Salary (FAS)
for the first 25 years of Allowable Service, plus 2% of FAS for each
additional year of Allowable Service exceeding 25 years up to a maximum
of 30 years. The FAS is based on a three-year average for Tier 4 members
and a five-year average for Tier 6 members. The vested benefit under the
FPI 25-Year Plans would be 2% of FAS for each year of Allowable Service.
Members of the FPI 25-Year Plans would be required to pay Basic Member
Contributions (BMC), which vary by tier, plus Additional Member Contrib-
utions (AMC) equal to 6.25% of compensation for all service as a Plan
participant on and after the starting date of the Plan until the later
of the one-year anniversary of the effective date of the Plans or 30
years of Allowable Service. In no event shall BMC plus AMC exceed 9.25%
of compensation.
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:
* The rates of retirement for the FPI 25-Year Plans were assigned
based on members' eligibility to elect or opt out of the plan. The FPI
25-year plan will be optional for current fire protection inspectors.
Future members will be mandated into the FPI 25-year plan unless they
are over age 25 when hired as a fire protection inspector.
* New entrants were assumed to replace exiting members so that total
payroll for fire protection inspectors increases by 3% each year. New
A. 9822 11
entrant demographics were developed based on data for recent new hires
and actuarial judgement. Future members, who are not over age 25 when
hired as a fire protection inspector, would be mandated into the FPI
25-year plan.
To determine the impact of the elective nature of the proposed legis-
lation, a subgroup of NYCERS Fire Protection Inspectors was developed
based on who is assumed to benefit actuarially by comparing the net
present value of future employer costs of each member's benefit under
their current plan and under the applicable FPI 25-Year Plan.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the actuarial assumptions, methods, and models used, demo-
graphics of the impacted population, and other factors such as invest-
ment, contribution, and other risks. If actual experience deviates from
actuarial assumptions, the actual costs could differ from those
presented herein. Quantifying these risks is beyond the scope of this
Fiscal Note.
This Fiscal Note is intended to measure pension-related impacts and
does not include other potential costs (e.g., administrative and Other
Postemployment Benefits).
STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
sky are members of the Society of Actuaries and the American Academy of
Actuaries. We are members of NYCERS but do not believe it impairs our
objectivity and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
To the best of our knowledge, the results contained herein have been
prepared in accordance with generally accepted actuarial principles and
procedures and with the Actuarial Standards of Practice issued by the
Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-37 dated March 25,
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.