NY State Senate Bill 2023-S7498A

Senate Bill S7498A

2023-2024 Legislative Session

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Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 12, 2024	reported and committed to finance
Feb 23, 2024	print number 7498a
Feb 23, 2024	amend and recommit to civil service and pensions
Jan 03, 2024	referred to civil service and pensions
Jun 01, 2023	referred to civil service and pensions

Votes

- Mar 12, 2024 - Civil Service And Pensions Committee Vote
  S7498A
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Civil Service And Pensions Committee Vote: Mar 12, 2024
      
      aye (7)
      
      Addabbo Jr.
      
      Chu
      
      Gounardes
      
      Jackson
      
      Mattera
      
      Scarcella-Spanton
      
      Weik

Bill Amendments

Original

A (Active)

2023-S7498 - Details

See Assembly Version of this Bill:: A7572
Current Committee:: Senate Finance
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§603 & 604-g, R & SS L

2023-S7498 - Summary

Relates to eligibility for participants in the automotive 25 year/age 50 pension plan with more than 30 years of credited service who remain in active service after age 62 to receive a service retirement benefit equivalent to the standard service retirement benefit received by Tier IV members with the same age and service.

2023-S7498 - Sponsor Memo

                                 
BILL NUMBER: S7498

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
eligibility for participants in the automotive 25 year/age 50 pension
plan with more than 30 years of credited service who remain in active
service after age 62 to receive a service retirement benefit equivalent
to the standard service retirement benefit received by Tier IV members
with the same age and service

 
PURPOSE:

This bill will permit members of the Automotive 25 year/age 50 retire-
ment program with more than 30 years of credit to retire with the same
benefits that they would have been entitled to if they had not elected
to become members of that program and had simply remained in Tier 4.

 
SUMMARY OF PROVISIONS:

Sections 1 and 2 amend subdivision a of Section 603 of the Retirement

and Social Security Law.

Section 3 amends paragraph 3 of subdivision b of Section 604-G of the
Retirement and Social Security Law to provide that a participant who has
more than 30 years of credited service and has remained active after
reaching 62 years of age may elect to retire with the same benefits that
they would have been entitled to if they had not elected to become
members of that program and had simply remained in Tier 4.

Section 4 is the effective date.

 
JUSTIFICATION:

The 25-year/age 50 retirement program for Automotive members was enacted
by Chapter 414 of the Laws of 2002 (see Retirement and Social Security
Law Section 604-g). It is a special early retirement program for New
York City employees in certain automotive mechanic and related titles,
enabling those employees to retire after they have attained at least 25
years of credited service and are at least 50 years of age. The automo-
tive 25/50 program requires that covered employees make additional
member contributions in excess of those required of Tier 4 members.

The Automotive 25/50 program provides that the retirement benefit of
covered members shall be 50% of final average salary for 25 years of
credited service and an additional 2% of final average service for each
additional year of credited service up to a maximum of 30 years.

Notwithstanding the early retirement option provided by the Automotive
25/50 program, a number of covered employees have chosen to continue
working in covered employment well beyond their 50th birthday and have
accrued more than 30 years of service. Ironically, these employees are
disadvantaged by the Automotive 25/50 service program when their age and
years of credited service reaches a certain level.  The retirement
allowance for participants in the standard Tier 4 program who have at
least 25 years of credited service is 2% of final average salary for
each year of service up to a maximum of 30 years, and an additional 1.5%
of final average salary for years of credited service beyond 30 years
(see Retirement and Social Security Law Sections 603 and 604). Thus, a
Tier 4 member with more than 30 years of credited service is entitled to
a retirement benefit calculated at a higher rate than the rate applica-
ble to an Automotive 25/50 program member. And yet, the Tier 4 member
has not had to pay the additional member contributions required of the
Automotive 25/50 member.

This act will enable members of the Automotive 25/50 program to revert
to the standard Tier 4 formulation in the event they attain more than 30
years of credited service and have reached the retirement age provided
for in Tier 4. In these circumstances, the member can accrue the addi-
tions to retirement allowance for service beyond 30 years that are
available to members in the standard Tier 4 program. There is no
rational basis for disadvantageing these employees who have decided not
to avail themselves of the early retirement option afforded by the 25/50
Automotive program and have continued to render service to New York
City. This law remedies a structural inequity that the drafters of the
25/50 Automotive program did not foresee and certainly did not intend.

 
LEGISLATIVE HISTORY:

New bill.

 
STATE AND LOCAL FISCAL IMPLICATIONS:

See fiscal note.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the amendments to
subdivision a of section 603 of the retirement and social security law
made by section one of this act shall be subject to the expiration and
reversion of such subdivision pursuant to subdivision (b) of section 13
of chapter 683 of the laws of 2003, as amended, when upon such date the
provisions of section two of this act shall take effect.

2023-S7498 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7498
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               June 1, 2023
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the retirement and social security law, in  relation  to
   eligibility  for participants in the automotive 25 year/age 50 pension
   plan with more than 30 years of credited service who remain in  active
   service  after  age  62 to receive a service retirement benefit equiv-
   alent to the standard service retirement benefit received by  Tier  IV
   members with the same age and service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision a of section 603 of the retirement  and  social
 security  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, 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 retirement benefit upon attain-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09945-02-3

 S. 7498                             2
 
 ment 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 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 arti-
 cle 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.
   § 2. Subdivision a of section 603 of the retirement and social securi-
 ty law, as amended by section 3-a of 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  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 retirement benefit upon attainment of at
 least  fifty-five years of age and completion of thirty or more years of
 service.
   § 3. Paragraph 3 of subdivision b of section 604-g of  the  retirement
 and social security law, as added by chapter 414 of the laws of 2002, is
 amended to read as follows:
   3.  Any election to be a participant in the twenty-five year/age fifty
 retirement program shall be irrevocable; PROVIDED THAT A PARTICIPANT WHO
 HAS MORE THAN THIRTY YEARS OF CREDITED SERVICE AND  WHO HAS REMAINED  IN
 ACTIVE  SERVICE  AFTER  REACHING  SIXTY-TWO  YEARS  OF  AGE MAY ELECT TO
 RECEIVE A SERVICE  RETIREMENT  BENEFIT  CALCULATED  IN  ACCORDANCE  WITH
 SUBDIVISION  B  OF SECTION SIX HUNDRED FOUR OF THIS ARTICLE IN LIEU OF A
 SERVICE RETIREMENT BENEFIT CALCULATED IN ACCORDANCE WITH  SUBDIVISION  C
 OF THIS SECTION.
   §  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 one of this act shall be subject to the expira-
 tion and reversion of such subdivision pursuant to  subdivision  (b)  of
 section  13  of  chapter  683 of the laws of 2003, as amended, when upon
 such date the provisions of section two of this act shall take effect.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation would  amend  Sections  603
 and  604-g  of  the  Retirement and Social Security Law (RSSL) to permit
 Tier 4 and Tier 6 members in the New  York  City  Employees'  Retirement
 System  (NYCERS)  and  the  New  York City Board of Education Retirement
 System (BERS) Automotive 25-Year/Age 50 Plans (Auto 25-Year  Plan)  with
 S. 7498                             3

 30  or  more  years  of  service to receive a service retirement benefit
 calculated under their respective basic plans, if greater.
   Effective Date: Upon enactment.
   IMPACT  ON  BENEFITS:  Currently, Auto 25-Year Plan members who retire
 with 30 or more years of service receive a  service  retirement  benefit
 that is equal to 60% of Final Average Salary (FAS).
   Under  the  proposed  legislation,  the service retirement benefit for
 Auto 25-Year Plan members with 30 or more  years  of  service  would  be
 calculated as the greater of the above, and:
   *  For  Tier  4  members, 60% of FAS plus 1.5% of FAS for each year of
 service beyond 30 years.
   * For Tier 6 members, 55% of FAS plus 2%  of  FAS  for  each  year  of
 service beyond 30 years.
   FINANCIAL  IMPACT  -  PRESENT VALUES: Based on the census data and the
 actuarial assumptions and methods described  herein,  the  enactment  of
 this  proposed  legislation  would  result in an increase in the present
 value of future employer contributions of  approximately  $26.4  million
 for NYCERS and approximately $0.1 million for BERS, for a total increase
 of approximately $26.5 million.
   Under  the Entry Age Normal cost method used to determine the employer
 contributions to NYCERS and BERS, there would  be  an  increase  in  the
 Unfunded  Accrued  Liability (UAL) of approximately $16.7 million and an
 increase in the present value of future employer Normal Cost of approxi-
 mately $9.8 million.
   FINANCIAL IMPACT - ANNUAL EMPLOYER  CONTRIBUTIONS:  The  enactment  of
 this  proposed legislation would result in an initial increase in annual
 employer  contributions  of  approximately  $2,855,000  for  NYCERS  and
 approximately  $9,000 for BERS which is the result of an increase in the
 Normal Cost in addition to the UAL payment.
   The initial increase in employer  contributions  is  estimated  to  be
 $2,372,000  for  New  York  City  and $492,000 for the non-New York City
 obligors.
   New UAL attributable to benefit changes are generally  amortized  over
 the remaining working lifetime of those impacted by the benefit changes.
 The  remaining working lifetime for this group is approximately 14 years
 for NYCERS and 11 years for BERS and the increase in UAL  was  therefore
 amortized  over  a  14-year  period  (13 payments under the One-Year Lag
 Methodology) for NYCERS and over an 11-year  period  (10  payments)  for
 BERS using level dollar payments.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the June 30, 2022 actuarial valuation of NYCERS and BERS to
 determine the Preliminary Fiscal Year 2024 employer contributions.
   The table below contains a summary of the census data for active  Auto
 25-Year Plan members in NYCERS and BERS as of June 30, 2022.
 
 System              Active    Average   Average   Average
                     Count     Age       Service   Salary
 
 NYCERS              1,718     45.7      9.6       $116,700
 BERS                25        51.8      8.0       $98,800
 
   ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
 been  calculated based on the actuarial assumptions and methods used for
 the Preliminary Fiscal Year 2024 employer contributions  of  NYCERS  and
 BERS.
 S. 7498                             4
 
   For  the  purposes of this Fiscal Note, it is assumed that the changes
 would be reflected for the first time in the  June  30,  2022  actuarial
 valuations  of  NYCERS and BERS used to determine employer contributions
 for Fiscal Year 2024.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the realization of the actuarial assumptions used,  demograph-
 ics  of  the  impacted  population and other factors such as investment,
 contribution, and other risks. If actual experience deviates from  actu-
 arial  assumptions,  the  actual costs could differ from those presented
 herein.
   Costs are also dependent on the actuarial methods used, and  therefore
 different actuarial methods could produce different results. Quantifying
 these risks is beyond the scope of this Fiscal Note.
   Not measured in this Fiscal Note are the following:
   *  The  initial  additional  administrative  costs  to  implement  the
 proposed legislation.
   STATEMENT OF ACTUARIAL OPINION: I, Marek  Tyszkiewicz,  am  the  Chief
 Actuary  for,  and  independent of, the New York City Retirement Systems
 and Pension Funds. I am an Associate of the Society of Actuaries  and  a
 Member of the American Academy of Actuaries. I am a member of NYCERS but
 do  not  believe  it impairs my objectivity and I meet the Qualification
 Standards of the American Academy of Actuaries to render  the  actuarial
 opinion  contained  herein.  To  the  best  of my knowledge, the results
 contained  herein  have  been  prepared  in  accordance  with  generally
 accepted  actuarial  principles  and  procedures  and with the Actuarial
 Standards of Practice issued by the Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note  2023-53  dated  May  19,
 2023  was prepared by the Chief Actuary for the New York City Employees'
 Retirement System and the Board of Education Retirement  System  of  the
 City of New York. This estimate is intended for use only during the 2023
 Legislative Session.

co-Sponsors

2023-S7498A (ACTIVE) - Details

See Assembly Version of this Bill:: A7572
Current Committee:: Senate Finance
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§603 & 604-g, R & SS L

2023-S7498A (ACTIVE) - Summary

2023-S7498A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7498A

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
eligibility for participants in the automotive 25 year/age 50 pension
plan with more than 30 years of credited service who remain in active
service after age 62 to receive a service retirement benefit equivalent
to the standard service retirement benefit received by Tier IV members
with the same age and service

 
PURPOSE:

This bill will permit members of the Automotive 25 year/age 50 retire-
ment program with more than 30 years of credit to retire with the same
benefits that they would have been entitled to if they had not elected
to become members of that program and had simply remained in Tier 4.

 
SUMMARY OF PROVISIONS:

Sections 1 and 2 amend subdivision a of Section 603 of the Retirement

and Social Security Law.

Section 3 amends paragraph 3 of subdivision b of Section 604-G of the
Retirement and Social Security Law to provide that a participant who has
more than 30 years of credited service and has remained active after
reaching 62 years of age may elect to retire with the same benefits that
they would have been entitled to if they had not elected to become
members of that program and had simply remained in Tier 4.

Section 4 is the effective date.

 
JUSTIFICATION:

The 25-year/age 50 retirement program for Automotive members was enacted
by Chapter 414 of the Laws of 2002 (see Retirement and Social Security
Law Section 604-g). It is a special early retirement program for New
York City employees in certain automotive mechanic and related titles,
enabling those employees to retire after they have attained at least 25
years of credited service and are at least 50 years of age. The automo-
tive 25/50 program requires that covered employees make additional
member contributions in excess of those required of Tier 4 members.

The Automotive 25/50 program provides that the retirement benefit of
covered members shall be 50% of final average salary for 25 years of
credited service and an additional 2% of final average service for each
additional year of credited service up to a maximum of 30 years.

Notwithstanding the early retirement option provided by the Automotive
25/50 program, a number of covered employees have chosen to continue
working in covered employment well beyond their 50th birthday and have
accrued more than 30 years of service. Ironically, these employees are
disadvantaged by the Automotive 25/50 service program when their age and
years of credited service reaches a certain level.  The retirement
allowance for participants in the standard Tier 4 program who have at
least 25 years of credited service is 2% of final average salary for
each year of service up to a maximum of 30 years, and an additional 1.5%
of final average salary for years of credited service beyond 30 years
(see Retirement and Social Security Law Sections 603 and 604). Thus, a
Tier 4 member with more than 30 years of credited service is entitled to
a retirement benefit calculated at a higher rate than the rate applica-
ble to an Automotive 25/50 program member. And yet, the Tier 4 member
has not had to pay the additional member contributions required of the
Automotive 25/50 member.

This act will enable members of the Automotive 25/50 program to revert
to the standard Tier 4 formulation in the event they attain more than 30
years of credited service and have reached the retirement age provided
for in Tier 4. In these circumstances, the member can accrue the addi-
tions to retirement allowance for service beyond 30 years that are
available to members in the standard Tier 4 program. There is no
rational basis for disadvantaging these employees who have decided not
to avail themselves of the early retirement option afforded by the 25/50
Automotive program and have continued to render service to New York
City. This law remedies a structural inequity that the drafters of the
25/50 Automotive program did not foresee and certainly did not intend.

 
LEGISLATIVE HISTORY:

New bill.

 
STATE AND LOCAL FISCAL IMPLICATIONS:

See fiscal note.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the amendments to
subdivision a of section 603 of the retirement and social security law
made by section one of this act shall be subject to the expiration and
reversion of such subdivision pursuant to subdivision (b) of section 13
of chapter 683 of the laws of 2003, as amended, when upon such date the
provisions of section two of this act shall take effect.

2023-S7498A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7498--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               June 1, 2023
                                ___________
 
 Introduced  by  Sen. JACKSON -- 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  commit-
   tee
 
 AN  ACT  to amend the retirement and social security law, in relation to
   eligibility for participants in the automotive 25 year/age 50  pension
   plan  with more than 30 years of credited service who remain in active
   service after age 62 to receive a service  retirement  benefit  equiv-
   alent  to  the standard service retirement benefit received by Tier IV
   members with the same age and service
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision a of section 603 of the retirement and social
 security 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, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09945-03-4

 S. 7498--A                          2
 
 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 retirement benefit upon attain-
 ment 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 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  arti-
 cle  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.
   § 2. Subdivision a of section 603 of the retirement and social securi-
 ty  law, as amended by section 3-a of 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 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 retirement benefit upon attainment of at
 least fifty-five years of age and completion of thirty or more years  of
 service.
   §  3.  Paragraph 3 of subdivision b of section 604-g of the retirement
 and social security law, as added by chapter 414 of the laws of 2002, is
 amended to read as follows:
   3. Any election to be a participant in the twenty-five year/age  fifty
 retirement program shall be irrevocable; PROVIDED THAT A PARTICIPANT WHO
 HAS  MORE THAN THIRTY YEARS OF CREDITED SERVICE AND  WHO HAS REMAINED IN
 ACTIVE SERVICE AFTER REACHING  SIXTY-TWO  YEARS  OF  AGE  MAY  ELECT  TO
 RECEIVE  A  SERVICE  RETIREMENT  BENEFIT  CALCULATED  IN ACCORDANCE WITH
 SUBDIVISION B OF SECTION SIX HUNDRED FOUR OF THIS ARTICLE IN LIEU  OF  A
 SERVICE  RETIREMENT  BENEFIT CALCULATED IN ACCORDANCE WITH SUBDIVISION C
 OF THIS SECTION.
   § 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 one of this act shall be subject to the expira-
 tion  and  reversion  of such subdivision pursuant to subdivision (b) of
 section 13 of chapter 683 of the laws of 2003,  as  amended,  when  upon
 such date the provisions of section two of this act shall take effect.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would permit certain Tier 4 members
 in  NYCERS  and BERS Automotive 25-Year/Age 50 Plans (Auto 25-Year Plan)
 S. 7498--A                          3

 with 30 or more years of service to receive a service retirement benefit
 calculated under the Tier 4 basic plan, if greater.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
          by Fiscal Year for the first 25 years ($ in Thousands)
 
         Year    NYCERS      BERS      TOTAL
 
         2025     1,457        3         1,460
         2026     1,458        3         1,461
         2027     1,460        3         1,463
         2028     1,462        3         1,465
         2029     1,464        3         1,467
         2030     1,465        3         1,468
         2031     1,465        3         1,468
         2032     1,464        3         1,467
         2033     1,462        0         1,462
         2034     1,457        0         1,457
         2035       217        0           217
         2036       212        0           212
         2037       205        0           205
         2038       198        0           198
         2039       189        0           189
         2040       180        0           180
         2041       170        0           170
         2042       161        0           161
         2043       151        0           151
         2044       140        0           140
         2045       129        0           129
         2046       118        0           118
         2047       107        0           107
         2048        96        0            96
         2049        85        0            85
    Employer Contribution impact beyond Fiscal Year 2049 is not shown.
 
   The  initial  increase  in  employer  contributions of $1.5 million is
 estimated to be $1.4 million for New York City and $0.1 million for  the
 other obligors of NYCRS.

           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                   as of June 30, 2023 ($ in Thousands)
 
 Present Value (PV)                 NYCERS              BERS
 PV of Benefits:                    10,735              18
 PV of Employee Contributions:      0                   0
 PV of Employer Contributions:      10,735              18
 Unfunded Accrued Liabilities:      8,390               13
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                                         NYCERS          BERS
      Number of Payments:                10              8
      Fiscal Year of Last Payment:       2034            2032
      Amortization Payment:              1,236 K         2 K
 S. 7498--A                          4
 
   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          BERS
      Active Members
      - Number Count:                    457             2
      - Average Age:                     53.3            50.0
      - Average Service:                 16.8            15.5
      - Average Salary:                  125,900         122,600
 
   IMPACT  ON  MEMBER  BENEFITS:    Currently,  Tier  4 Auto 25-Year Plan
 members who never previously participated in either the  55/25  plan  or
 57/5  plan enacted by Chapter 96 of the Laws of 1995 and who retire with
 30 or more years of service, receive a service retirement  benefit  that
 is equal to 60% of Final Average Salary (FAS).
   Under  the  proposed  legislation,  the service retirement benefit for
 such members with 30 or more years of service would be calculated as the
 greater of the above, and:
   * For those at least age 62, 60% of FAS plus 1.5% of FAS for each year
 of service beyond 30 years.
   * For those age 55 through 61, 60% of FAS plus 1.5% of  FAS  for  each
 year  of  service  beyond  30  years, multiplied by the applicable early
 retirement age reduction factor.
   The service retirement benefits for Tier 6 Auto 25-Year  Plan  members
 and  Tier 4 members with previous Tier 4 55/25 plan or 57/5 plan partic-
 ipation are assumed to remain unchanged.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on  the  actuarial  assumptions, methods, and models used, demo-
 graphics of the impacted population, and other factors such  as  invest-
 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 2024-14 dated February
 22, 2024 was prepared by the Chief Actuary for the New York City Retire-
 ment Systems and Pension Funds. This estimate is intended for  use  only
 during the 2024 Legislative Session.

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