S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5467--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 6, 2023
                                ___________
 
 Introduced  by Sens. GOUNARDES, KENNEDY, LANZA -- read twice and ordered
   printed, and when printed to be committed to the  Committee  on  Civil
   Service  and Pensions -- recommitted to the Committee on Civil Service
   and Pensions in accordance with Senate Rule 6,  sec.  8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to amend the retirement and social security law, in relation to
   primary social security retirement benefits  for  police/fire  members
   who are members of the New York city fire department pension fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 505 of the retirement and social security  law,  as
 amended  by  chapter  18  of  the  laws  of  2012, is amended to read as
 follows:
   § 505. Service retirement benefits; police/fire members, New York city
 uniformed correction/sanitation revised plan  members  and  investigator
 revised  plan  members.  a.  The  normal  service retirement benefit for
 police/fire  members,  New  York  city  uniformed  correction/sanitation
 revised  plan  members  and  investigator revised plan members at normal
 retirement age shall be a pension equal to fifty percent of final  aver-
 age salary, less fifty percent of the primary social security retirement
 benefit commencing at age sixty-two, as provided in section five hundred
 eleven  of  this article, PROVIDED, HOWEVER, THAT THE COMPUTATION OF THE
 NORMAL SERVICE RETIREMENT BENEFIT OF MEMBERS OF THE NEW YORK  CITY  FIRE
 DEPARTMENT  PENSION  FUND,  SHALL  NOT  BE REDUCED BY THE PRIMARY SOCIAL
 SECURITY RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-TWO AS  PROVIDED  IN
 SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   b.  The  early service retirement benefit for police/fire members, New
 York city  uniformed  correction/sanitation  revised  plan  members  and
 investigator  revised  plan  members shall be a pension equal to two and
 one-tenths percent of final  average  salary  times  years  of  credited
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07867-07-4
              

 S. 5467--A                          2
 
 service  at the completion of twenty years of service or upon attainment
 of age sixty-two, increased by one-third of one percent of final average
 salary for each month of service in excess of twenty years, but  not  in
 excess  of  fifty percent of final average salary, less fifty percent of
 the primary social security retirement benefit commencing at age  sixty-
 two  as  provided  in  section  five  hundred  eleven  of  this article,
 provided, however, that New York city police/fire revised plan  members,
 New  York  city uniformed correction/sanitation revised plan members and
 investigator revised plan members shall not be eligible  to  retire  for
 service prior to the attainment of twenty years of credited service, AND
 PROVIDED FURTHER THAT THE EARLY SERVICE RETIREMENT BENEFIT OF MEMBERS OF
 THE  NEW  YORK CITY FIRE DEPARTMENT PENSION FUND SHALL NOT BE REDUCED BY
 THE PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT AGE  SIXTY-
 TWO AS PROVIDED BY SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   c.    A    police/fire    member,    a   New   York   city   uniformed
 correction/sanitation revised plan member  or  an  investigator  revised
 plan  member  who  retires  with twenty-two years of credited service or
 less may become eligible for annual escalation of the service retirement
 benefit if [he elects] THEY ELECT to have the  payment  of  [his]  THEIR
 benefit  commence  on the date [he] THEY would have completed twenty-two
 years and one month or more of  service.  In  such  event,  the  service
 retirement  benefit  shall equal two percent of final average salary for
 each year of credited service, less fifty percent of the primary  social
 security  retirement  benefit commencing at age sixty-two as provided in
 section five hundred eleven of this article, PROVIDED, HOWEVER, THAT THE
 SERVICE RETIREMENT BENEFIT OF MEMBERS OF THE NEW YORK CITY FIRE  DEPART-
 MENT  PENSION  FUND  SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL SECURITY
 RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-TWO AS  PROVIDED  BY  SECTION
 FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   §  2. Section 511 of the retirement and social security law is amended
 by adding a new subdivision h to read as follows:
   H. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THIS  SECTION
 SHALL  NOT APPLY TO MEMBERS OF THE NEW YORK CITY FIRE DEPARTMENT PENSION
 FUND WHO RECEIVE A SERVICE RETIREMENT BENEFIT PURSUANT TO  SECTION  FIVE
 HUNDRED  FIVE  OF  THIS ARTICLE OR A DEFERRED VESTED BENEFIT PURSUANT TO
 SECTION FIVE HUNDRED SIXTEEN OF THIS ARTICLE.
   § 3. Subdivision c of section 516 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   c. The deferred vested benefit of police/fire members, New  York  city
 police/fire    revised   plan   members,   New   York   city   uniformed
 correction/sanitation revised plan members or investigator revised  plan
 members  shall  be a pension commencing at early retirement age equal to
 two and one-tenths percent of final average salary times years of  cred-
 ited  service, less fifty percent of the primary social security retire-
 ment benefit commencing at age sixty-two, as provided  in  section  five
 hundred eleven of this article, PROVIDED HOWEVER THAT THE DEFERRED VEST-
 ED  BENEFIT OF MEMBERS OF THE NEW YORK CITY FIRE DEPARTMENT PENSION FUND
 AND REVISED PLAN MEMBERS WHO ARE MEMBERS  OF  THE  NEW  YORK  CITY  FIRE
 DEPARTMENT PENSION FUND SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL SECU-
 RITY  RETIREMENT  BENEFIT  COMMENCING  AT  AGE  SIXTY-TWO AS PROVIDED BY
 SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE. A police/fire member, a New
 York city police/fire revised plan member, a  New  York  city  uniformed
 correction/sanitation  revised  plan member or investigator revised plan
 member may elect to receive [his] THEIR  vested  benefit  commencing  at
 early  retirement age or age fifty-five. If the vested benefit commences
 S. 5467--A                          3
 
 before early retirement age, the benefit shall be  reduced  by  one-fif-
 teenth  for each year, if any, that the member's early retirement age is
 in excess of age sixty, and by one-thirtieth for each additional year by
 which  the  vested  benefit  commences prior to early retirement age. If
 such vested benefit is deferred until after such member's normal retire-
 ment age, the benefit shall be computed and subject to annual escalation
 in the same manner as provided for an early retirement benefit  pursuant
 to subdivision c of section five hundred five of this article.
   §  4. Notwithstanding the provisions of section 13-379 of the adminis-
 trative code of the city of New York, the provisions of this  act  shall
 apply  to  chapter three of title thirteen of the administrative code of
 the city of New York.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would amend Sections of the Retire-
 ment and Social Security Law (RSSL) to eliminate the offset equal to 50%
 of the primary social security benefit in the  service,  early  service,
 and  vested  retirement benefits for Tier 3 members of the New York City
 Fire Pension Fund (FIRE).
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
 
                     Year      FIRE
                     2025      8.3
                     2026      9.0
                     2027      9.8
                     2028      10.6
                     2029      11.5
                     2030      12.4
                     2031      13.4
                     2032      14.4
                     2033      15.4
                     2034      16.5
                     2035      17.6
                     2036      18.7
                     2037      19.9
                     2038      21.1
                     2039      22.3
                     2040      23.5
                     2041      24.8
                     2042      26.0
                     2043      24.5
                     2044      25.7
                     2045      26.9
                     2046      28.1
                     2047      29.2
                     2048      30.4
                     2049      31.5
 
    Employer Contribution impact beyond Fiscal Year 2049 is not shown.
  Projected contributions include future new hires that may be impacted.
 
   The entire increase in employer contributions will be allocated to New
 York City.
 S. 5467--A                          4
 
           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)
 
 Present Value (PV)                      FIRE
 PV of Benefits:                         117.4
 PV of Employee Contributions:           0.0
 PV of Employer Contributions:           117.4
 Unfunded Accrued Liabilities:           26.5
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                                         FIRE
 Number of Payments:                     18
 Fiscal Year of Last Payment:            2042
 Amortization Payment:                   2.7 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.
 
                                         FIRE
 Active Members
 - Number Count:                         5,030
 - Average Age:                          33.5
 - Average Service:                      5.5
 - Average Salary:                       112,400
 Term. Vested Members
 - Number Count:                         9
 - Average Age:                          37.6
 
   IMPACT  ON  MEMBER  BENEFITS: Currently, Tier 3 normal service retire-
 ment, early service  retirement,  and  vested  retirement  benefits  are
 subject to an offset equal to 50% of the primary social security benefit
 as defined in RSSL Section 511 beginning at age 62.
   Under  the proposed legislation, the offset for such benefits would be
 eliminated for FIRE members, resulting in an increase in benefits.
   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).
 S. 5467--A                          5
 
   This Fiscal Note does not include cost analyses relating to provisions
 contained in RSSL Section 500(c).
   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 2024-03 dated January 26,
 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.