S. 7206--A 2
OFFICER MEMBER, DISCONTINUED SERVICE AS SUCH A MEMBER AND HAS A RIGHT TO
A DEFERRED VESTED BENEFIT UNDER SUBDIVISION D OF THIS SECTION.
6. "ADMINISTRATIVE CODE" SHALL MEAN THE ADMINISTRATIVE CODE OF THE
CITY OF NEW YORK.
B. PARTICIPATION IN TWENTY-FIVE YEAR RETIREMENT PROGRAM. 1. SUBJECT TO
THE PROVISIONS OF PARAGRAPHS SIX AND SEVEN OF THIS SUBDIVISION, ANY
PERSON WHO IS A PROBATION OFFICER MEMBER ON THE STARTING DATE OF THE
TWENTY-FIVE YEAR RETIREMENT PROGRAM AND WHO, AS SUCH A PROBATION OFFICER
MEMBER OR OTHERWISE, LAST BECAME SUBJECT TO THE PROVISIONS OF THIS ARTI-
CLE 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 SUCH PERSON
IS SUCH A PROBATION OFFICER 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 PROBATION OFFICER MEMBER AFTER THE
STARTING DATE OF THE TWENTY-FIVE YEAR RETIREMENT PROGRAM AND WHO, AS
SUCH A PROBATION OFFICER 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 BECOMING SUCH A PROBATION
OFFICER MEMBER, A DULY EXECUTED APPLICATION FOR SUCH PARTICIPATION WITH
THE RETIREMENT SYSTEM FOR WHICH SUCH PERSON IS A MEMBER, PROVIDED SUCH
PERSON IS SUCH A PROBATION OFFICER MEMBER ON THE DATE SUCH APPLICATION
IS FILED.
3. ANY ELECTION TO BE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
PROGRAM SHALL BE IRREVOCABLE.
4. EACH PROBATION OFFICER MEMBER WHO BECOMES SUBJECT TO ANY OF 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 SUCH PROBATION OFFICER BECOMES
SUCH A PROBATION OFFICER MEMBER.
5. WHERE ANY PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM
SHALL CEASE TO BE EMPLOYED BY THE CITY OF NEW YORK AS A PROBATION OFFI-
CER MEMBER, SUCH PERSON SHALL CEASE TO BE SUCH A PARTICIPANT AND, DURING
ANY PERIOD IN WHICH SUCH PERSON IS NOT SO EMPLOYED, SUCH PERSON 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 PROBATION OFFICER MEMBER AND RETURNS TO SUCH
SERVICE AS A PROBATION OFFICER MEMBER AT A LATER DATE, SUCH PERSON SHALL
AGAIN BECOME SUCH A PARTICIPANT ON THAT DATE.
7. NOTWITHSTANDING ANY OTHER PROVISION OF 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
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 CREDITED SERVICE;
AND
S. 7206--A 3
(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 SUCH PERSON IS A
MEMBER AN APPLICATION FOR SERVICE RETIREMENT SETTING FORTH AT WHAT TIME,
NOT LESS THAN THIRTY DAYS SUBSEQUENT TO THE EXECUTION AND FILING THERE-
OF, SUCH PERSON DESIRES TO BE RETIRED; AND
(IV) WHO SHALL BE A PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT
PROGRAM AT THE TIME SO SPECIFIED FOR SUCH PERSON RETIREMENT; SHALL BE
RETIRED PURSUANT TO THE PROVISIONS OF THIS SECTION AFFORDING EARLY
SERVICE RETIREMENT.
2. (I) NOTWITHSTANDING 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 PARAGRAPH ONE
OF THIS SUBDIVISION SHALL BE A RETIREMENT ALLOWANCE CONSISTING OF:
(A) AN AMOUNT, ON ACCOUNT OF THE REQUIRED MINIMUM PERIOD OF SERVICE,
EQUAL TO FIFTY-FIVE PERCENT OF SUCH PERSON'S FINAL AVERAGE SALARY; PLUS
(B) AN AMOUNT ON ACCOUNT OF CREDITED SERVICE, OR FRACTION THEREOF,
BEYOND SUCH REQUIRED MINIMUM PERIOD OF SERVICE EQUAL TO ONE AND SEVEN-
TENTHS PERCENT OF SUCH PERSON'S FINAL SALARY;
(II) THE MAXIMUM RETIREMENT ALLOWANCE COMPUTED WITHOUT OPTIONAL
MODIFICATION PAYABLE PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH
SHALL EQUAL THAT PAYABLE UPON COMPLETION OF THIRTY YEARS OF SERVICE.
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) IN THE CASE OF A PARTICIPANT WHO IS NOT A NEW YORK CITY REVISED
PLAN MEMBER, WHO PRIOR TO SUCH DISCONTINUANCE, COMPLETED FIVE BUT LESS
THAN TWENTY-FIVE YEARS OF CREDITED SERVICE OR, IN THE CASE OF A PARTIC-
IPANT WHO IS A NEW YORK CITY REVISED PLAN MEMBER, WHO PRIOR TO SUCH
DISCONTINUANCE, COMPLETED TEN BUT LESS THAN TWENTY-FIVE YEARS OF CREDIT-
ED SERVICE; 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 SUCH PARTICIPANT'S
ACCUMULATED MEMBER CONTRIBUTIONS PURSUANT TO SECTION SIX HUNDRED THIR-
TEEN OF THIS ARTICLE UNLESS SUCH PARTICIPANT THEREAFTER RETURNS TO
PUBLIC SERVICE AND REPAYS THE AMOUNTS SO WITHDRAWN, TOGETHER WITH INTER-
EST, 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
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.
3. SUBJECT TO THE PROVISIONS OF PARAGRAPH SEVEN OF SUBDIVISION E OF
THIS SECTION, SUCH DEFERRED VESTED BENEFIT SHALL BE A RETIREMENT ALLOW-
ANCE CONSISTING OF AN AMOUNT EQUAL TO TWO AND TWO-TENTHS PERCENT OF SUCH
S. 7206--A 4
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 SUCH PARTICIPANT IS A
MEMBER (SUBJECT TO THE APPLICABLE PROVISIONS OF SUBDIVISION D OF SECTION
SIX HUNDRED THIRTEEN OF THIS ARTICLE) AN ADDITIONAL SIX AND THREE-QUAR-
TERS PERCENT OF SUCH PARTICIPANT'S COMPENSATION EARNED FROM (I) ALL
CREDITED 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 CREDITED SERVICE AFTER SUCH PERSON
CEASES TO BE A PARTICIPANT, BUT BEFORE SUCH PERSON AGAIN BECOMES A
PARTICIPANT PURSUANT TO PARAGRAPH SIX OF SUBDIVISION B OF THIS SECTION.
THE ADDITIONAL CONTRIBUTIONS REQUIRED BY THIS SUBDIVISION SHALL BE IN
LIEU OF ADDITIONAL MEMBER CONTRIBUTIONS REQUIRED BY (I) 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, OR (II) SUBDIVISION F
OF SECTION SIX HUNDRED FOUR-D OF THIS ARTICLE, AND NO MEMBER MAKING
CONTRIBUTIONS PURSUANT TO THIS SECTION SHALL BE REQUIRED TO MAKE
CONTRIBUTIONS PURSUANT TO EITHER SUCH SUBDIVISION D OF SECTION SIX
HUNDRED FOUR-C OF THIS ARTICLE, OR SUCH SUBDIVISION F OF SECTION SIX
HUNDRED FOUR-D OF THIS ARTICLE.
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 SUCH PARTICIPANT COMPLETES THIR-
TY YEARS OF CREDITED SERVICE AS A PROBATION OFFICER 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 SUCH PERSON IS
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 SUCH PARTICIPANT'S COMPENSATION PURSUANT TO PARAGRAPH
THREE OF THIS SUBDIVISION, IF ANY, TOGETHER WITH INTEREST THEREON,
COMPOUNDED ANNUALLY, AND COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF
SUBPARAGRAPHS (II) AND (III) OF THIS PARAGRAPH.
(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 SUCH PERSON 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.
S. 7206--A 5
(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 SUCH PERSON'S
ADDITIONAL MEMBER CONTRIBUTIONS 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 APPROPRIATE AMOUNT SHALL BE INCLUDED IN SUCH PARTICIPANT'S
CONTRIBUTION DEFICIENCY (INCLUDING INTEREST THEREON AS CALCULATED PURSU-
ANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH) FOR ANY CREDITED SERVICE FOR
WHICH SUCH PERSON RECEIVED A REFUND OF SUCH ADDITIONAL MEMBER CONTRIB-
UTIONS (INCLUDING ANY AMOUNT OF AN UNPAID LOAN BALANCE DEEMED TO HAVE
BEEN RETURNED TO SUCH PERSON PURSUANT TO THIS SUBDIVISION), 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 SUCH PARTICIPANT PURSUANT TO PARAGRAPHS FOUR
AND FIVE OF THIS SUBDIVISION, THAT PARTICIPANT, NEVERTHELESS, SHALL BE
ELIGIBLE TO RETIRE PURSUANT TO SUBDIVISION C OF THIS SECTION, PROVIDED,
HOWEVER, THAT SUCH PARTICIPANT'S SERVICE RETIREMENT BENEFIT CALCULATED
PURSUANT TO PARAGRAPH TWO OF SUCH SUBDIVISION C 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 THE AMOUNT OF ANY UNPAID CONTRIBUTION DEFI-
CIENCY CHARGEABLE TO SUCH MEMBER PURSUANT TO PARAGRAPHS FOUR AND FIVE OF
THIS SUBDIVISION.
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 SUCH PARTICIPANT PURSUANT TO
PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION, SUCH PARTICIPANT NEVERTHE-
LESS, SHALL BE ELIGIBLE FOR A VESTED RIGHT TO A DEFERRED BENEFIT PURSU-
ANT TO SUBDIVISION D OF THIS SECTION, PROVIDED, HOWEVER, THAT THE
DEFERRED VESTED BENEFIT CALCULATED PURSUANT TO PARAGRAPH THREE OF SUCH
SUBDIVISION D SHALL BE REDUCED BY A LIFE ANNUITY (CALCULATED IN ACCORD-
ANCE WITH THE METHOD SET FORTH IN SUBDIVISION I OF SECTION SIX HUNDRED
THIRTEEN-B OF THIS ARTICLE) WHICH IS ACTUARIALLY EQUIVALENT TO THE
AMOUNT OF ANY UNPAID CONTRIBUTION DEFICIENCY CHARGEABLE TO SUCH MEMBER
PURSUANT TO PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION.
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-
S. 7206--A 6
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 SUCH PARTICIPANT PURSUANT TO PARAGRAPHS FOUR
AND FIVE OF THIS SUBDIVISION, AND A BENEFIT, OTHER THAN A REFUND OF
MEMBER CONTRIBUTIONS 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 SUCH PARTICIPANT'S DESIG-
NATED 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 SUCH MEMBER IS A PARTICIPANT IN THE TWENTY-FIVE YEAR
RETIREMENT 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 PROBATION OFFICER MEMBER FOR ANY REASON WHATSOEVER,
SUCH PARTICIPANT'S ACCUMULATED ADDITIONAL MEMBER CONTRIBUTIONS MADE
PURSUANT TO THIS SUBDIVISION (TOGETHER WITH ANY INTEREST THEREON PAID TO
THE RETIREMENT SYSTEM) MAY BE WITHDRAWN PURSUANT TO PROCEDURES PROMUL-
GATED 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 A
PARTICIPANT IN THE TWENTY-FIVE YEAR RETIREMENT PROGRAM, SHALL BE PERMIT-
TED 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. NO MEMBER OF A PUBLIC RETIREMENT SYSTEM SHALL BE PERMITTED TO
BORROW ANY PORTION OF THE ADDITIONAL MEMBER CONTRIBUTIONS (INCLUDING ANY
INTEREST PAID THEREON BY THE PARTICIPANT) WHICH ARE SUBJECT TO THIS
SUBDIVISION.
§ 2. Subdivision a of section 603 of the retirement and social securi-
ty law, as amended by section 3 of part EE chapter 55 of the laws of
2024, 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, subdivision c of section six hundred four-i of this arti-
cle, [or] subdivision c of section six hundred four-j of this article,
S. 7206--A 7
OR SUBDIVISION D OF SECTION SIX HUNDRED FOUR-K 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 [their] SUCH MEMBER'S 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 [their] SUCH MEMBER'S 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 preceding provisions of this subdivision shall
not apply to a New York city revised plan member.
§ 3. Subdivision a of section 603 of the retirement and social securi-
ty law, as amended by chapter 19 of the laws of 2008, 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 D OF SECTION SIX HUNDRED FOUR-K OF THIS ARTICLE
provided, however, a member who is a peace officer employed by the
unified court system or a member of a teachers' retirement system or the
New York state and local employees' retirement system may retire without
reduction of [his or her] SUCH MEMBER'S retirement benefit upon attain-
ment of at least fifty-five years of age and completion of thirty or
more years of service.
§ 4. This act shall take effect immediately, provided that the amend-
ments to subdivision a of section 603 of the retirement and social secu-
rity law made by section two of this act shall not affect the expiration
and reversion of such subdivision pursuant to subdivision (b) of section
13 of chapter 682 of the laws of 2003, as amended, when upon such date
the provisions of section three of this act shall take effect.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would establish 25-Year Retirement
Programs for NYCERS Tier 4 and Tier 6 Probation Officers (PO 25-Year
Plans). Participation is optional for current members, mandatory for
Probation Officers hired after the enactment date, and require Addi-
tional Member Contributions equal to 6.75% of compensation.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
S. 7206--A 8
Year Current New NYCERS
Members Entrants Total
2025 2.5 0.0 2.5
2026 2.3 (0.1) 2.2
2027 2.1 (0.2) 1.9
2028 1.9 (0.3) 1.6
2029 1.8 (0.4) 1.3
2030 1.7 (0.6) 1.1
2031 (0.1) (0.7) (0.8)
2032 (0.1) (0.9) (1.0)
2033 (0.2) (1.0) (1.2)
2034 (0.2) (1.2) (1.4)
2035 (0.2) (1.3) (1.6)
2036 (0.3) (1.5) (1.7)
2037 (0.3) (1.6) (1.9)
2038 (0.3) (1.8) (2.0)
2039 (0.3) (1.9) (2.2)
2040 (0.3) (2.1) (2.4)
2041 (0.3) (2.2) (2.5)
2042 (0.3) (2.4) (2.7)
2043 (0.3) (2.5) (2.8)
2044 (0.3) (2.7) (3.0)
2045 (0.3) (2.9) (3.1)
2046 (0.2) (3.1) (3.3)
2047 (0.2) (3.2) (3.5)
2048 (0.2) (3.4) (3.6)
2049 (0.2) (3.6) (3.8)
Employer Contribution impact beyond Fiscal Year 2049 is not shown.
Projected contributions include future new hires that are projected to
be impacted. Additional Member Contributions for new hires reduce total
Employer Contributions after the increase in Unfunded Accrued Liabil-
ities is amortized.
The entire increase (decrease) in employer contributions will be allo-
cated to New York City.
INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
as of June 30, 2023 ($ in Millions)
Present Value (PV) NYCERS
PV of Benefits: 11.6
PV of Employee Contributions: 3.6
PV of Employer Contributions: 8.0
Unfunded Accrued Liabilities: 7.7
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
NYCERS
Number of Payments: 6
Fiscal Year of Last Payment: 2030
Amortization Payment: 1.7M
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
S. 7206--A 9
probation officers assumed to elect one of the PO 25-Year Plans is
summarized below.
NYCERS
Active Members
- Number Count: 233
- Average Age: 52.6
- Average Service: 25.4
- Average Salary: 88,200
IMPACT ON MEMBER BENEFITS AND CONTRIBUTIONS: The proposed legislation
would provide the following benefits to Probation Officers who partic-
ipate in the PO 25-Year Plans:
o Service retirement benefit equal to 55% of Final Average Salary
(FAS) for the first 25 years of Allowable Service, plus 1.7% of FAS for
each additional year of Allowable Service exceeding 25 years up to a
maximum of 30 years.
o Vested benefit equal to 2.2% of FAS for each year of Credited
Service.
The FAS is based on a three-year average for Tier 4 members and a
five-year average for Tier 6 members.
Members of the PO 25-Year Plans would be required to pay Additional
Member Contributions (AMC) equal to 6.75% 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 Credited Service.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement system. In addition:
o The rates of retirement for the PO 25-Year Plans were assigned based
on members' eligibility to elect or opt out of the plan. The PO 25-Year
Plan will be optional for current probation officers. Future members
would be mandated into the PO 25-Year Plan.
o New entrants were assumed to replace exiting members so that total
payroll for probation officers increases by 3% each year. New entrant
demographics were developed based on data for recent new hires and actu-
arial judgement. Future members would be mandated into the PO 25-Year
Plan.
To determine the impact of the elective nature of the proposed legis-
lation, a subgroup of NYCERS Probation Officers 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 PO 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
S. 7206--A 10
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 2024-46 dated April 19,
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.
