NY State Senate Bill 2023-S8764

Senate Bill S8764

2023-2024 Legislative Session

Relates to eligibility for ordinary disability benefits and re-employment of disability retirees of the New York city police pension fund Tier III plans

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Current Bill Status - In Senate Committee Civil Service And Pensions 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 21, 2024	print number 8764a
Mar 21, 2024	amend and recommit to civil service and pensions
Mar 08, 2024	referred to civil service and pensions

Bill Amendments

Original

A (Active)

2023-S8764 - Details

See Assembly Version of this Bill:: A9515
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§506 & 507, R & SS L

2023-S8764 - Summary

Modifies eligibility for ordinary disability benefits and re-employment of disability retirees of the New York city police pension fund Tier III plans.

2023-S8764 - Sponsor Memo

                                 
BILL NUMBER: S8764

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
eligibility for ordinary disability benefits and re-employment of disa-
bility retirees of the New York city police pension fund Tier III plans

 
PURPOSE:

Provides for certain benefits and corrects inequities to the Tier 3
Ordinary Disability benefits of the New York City Police Pension fund.

 
SUMMARY OF PROVISIONS:

Section 1: Subdivisions (a) of section 506 of the retirement and social
security law, as added chapter 890 of the laws of 1976, and amended by
chapter 601 of the laws of 1997, chapter 559 of the Laws of 2005, chap-
ter 513 of the laws of 2010, and chapter 298 of the Laws of 2016, is
hereby amended to remove the requirement of having to serve at least 5
years of service to be eligible for an ordinary disability retirement.

Furthermore, it removes the requirement that members of the New York
City Police Pension Fund must apply and receive a primary social securi-
ty disability benefit to be eligible for the ordinary disability benefit
described in subdivision b of this section. Application for and the
determination of such ordinary disability benefit shall be governed by
section 13-251 of the Administrative Code of the City of New York.

Subdivisions (b) of section 506 of the retirement and social security
law, as added chapter 890 of the laws of 1976, and amended by chapter
601 of the laws of 1997, chapter 559 of the Laws of 2005, chapter 513 of
the laws of 2010, and chapter 298 of the Laws of 2016, is hereby amended
to provide for a member of the New York City Police Pension Fund who
qualified without being eligible for primary social security disability
benefits, the ordinary disability benefit shall be reduced by one-half
of such retiree's primary social security retirement benefit, commencing
at age sixty-two, in the same manner as provided for service retirement
benefits under section five hundred eleven of this article.

Section 2: Subdivision (d)

This subdivision shall not apply to members of the New York City Police
Pension Fund who shall be governed by section 13-254 of the Administra-
tive Code of the City of New York.

Section 3: This act shall be deemed to have been in effect since July 1,
2009.

 
JUSTIFICATION:

In July 2009, the members of the New York City Police Pension Fund were
placed into a different New York State and social security retirement
plan when the traditional Tier 2 plan extender was vetoed.  The plan
they were placed in is commonly known as Tier 3. All new sworn members
of the NYPD hired after June 30, 2009 were placed into the Tier 3 plan,
and there were several benefit changes. Among them were certain
restrictions on receiving an ordinary disability retirement benefit,
including requiring a member to apply for and actually receive a Social
Security Disability Benefit, which is an extremely high threshold as it
requires an individual to be permanently disabled from any employment,
not solely the inability to perform the duties of a police officer. This
mandate could lead to a denial of benefits for members who are perma-
nently disabled from police work and bravely served and protected the
residents of the City of New York. When Tier 2 was vetoed in 2009 this
benefit was reduced as stated above, which was not the legislative
intent.  Restoring this benefit would correct this inequity.

 
FISCAL IMPLICATIONS:

See the Fiscal Note

 
LEGISLATIVE HISTORY:

None

 
EFFECTIVE DATE:
This act shall be deemed to have been in effect since July 1, 2009.

2023-S8764 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8764
 
                             I N  S E N A T E
 
                               March 8, 2024
                                ___________
 
 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  ordinary  disability  benefits  and re-employment of
   disability retirees of the New York city police pension fund Tier  III
   plans

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions a and b of section 506 of the  retirement  and
 social security law, subdivision a as amended by chapter 513 of the laws
 of  2010  and subdivision b as added by chapter 890 of the laws of 1976,
 are amended to read as follows:
   a. A member in active service who is not eligible for a normal retire-
 ment benefit shall, upon completing five years or more  of  service,  be
 eligible  for the ordinary disability benefit described in subdivision b
 of this section if such member has been determined to  be  eligible  for
 primary  social security disability benefits; provided, however, that no
 member of the New York state teachers' retirement system, the  New  York
 city  employees' retirement system, the New York city board of education
 retirement system, the New York city teachers'  retirement  system,  THE
 NEW  YORK  CITY  POLICE  PENSION  FUND  or  the New York state and local
 employees' retirement system who  is  otherwise  eligible  for  ordinary
 disability benefits pursuant to this section shall be deemed to be inel-
 igible  for  such  benefits because such member is eligible for a normal
 service retirement benefit. MEMBERS OF THE NEW YORK CITY POLICE  PENSION
 FUND NEED NOT COMPLETE FIVE YEARS OR MORE OF SERVICE NOR BE ELIGIBLE FOR
 PRIMARY  SOCIAL SECURITY DISABILITY BENEFITS IN ORDER TO BE ELIGIBLE FOR
 THE ORDINARY DISABILITY BENEFIT  DESCRIBED  IN  SUBDIVISION  B  OF  THIS
 SECTION. APPLICATION FOR AND THE DETERMINATION OF SUCH ORDINARY DISABIL-
 ITY  BENEFIT  SHALL  BE GOVERNED BY SECTION 13-251 OF THE ADMINISTRATIVE
 CODE OF THE CITY OF NEW YORK.
   b. The ordinary disability benefit hereunder shall be a pension  equal
 to  the greater of (i) thirty-three and one-third percent of final aver-
 age salary, or (ii) two percent of final average salary times  years  of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14498-02-4
 S. 8764                             2
 
 credited  service  not  in  excess  of  the maximum years of service for
 computing service retirement, such benefit in each case to be reduced by
 fifty percent of the  primary  social  security  disability  benefit  as
 provided  in  section five hundred eleven and one hundred percent of any
 workmen's compensation benefits payable, PROVIDED, HOWEVER, THAT, FOR  A
 MEMBER  OF  THE  NEW YORK CITY POLICE PENSION FUND WHO QUALIFIED WITHOUT
 BEING ELIGIBLE FOR PRIMARY  SOCIAL  SECURITY  DISABILITY  BENEFITS,  THE
 ORDINARY  DISABILITY  BENEFIT  SHALL  BE  REDUCED  BY  ONE-HALF  OF SUCH
 RETIREE'S PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT, COMMENCING AT  AGE
 SIXTY-TWO,  IN  THE SAME MANNER AS PROVIDED FOR SERVICE RETIREMENT BENE-
 FITS UNDER SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   § 2. Subdivision d of section 507 of the retirement and social securi-
 ty law, as added by chapter 890 of the laws of 1976, is amended to  read
 as follows:
   d.  If a member shall cease to be eligible for primary social security
 benefits before attaining age sixty-five, or, if receipt of social secu-
 rity benefits is not a  condition  for  disability  benefits  hereunder,
 shall  engage  in  such  employment or business activity as would render
 such member ineligible for social security disability benefits  (had  he
 or  she  otherwise  been  eligible),  benefits  hereunder  shall  cease.
 Provided, however, if such member is otherwise eligible, the state civil
 service department or appropriate municipal commission shall  place  the
 name  of such person, as a preferred eligible, on the appropriate eligi-
 ble lists prepared by it for positions for which such person  is  stated
 to  be  qualified  in  a salary grade not exceeding that from which such
 person retired. In such event, disability benefits  shall  be  continued
 for  such  member until such member first shall be offered a position in
 public service at such salary grade. THIS SUBDIVISION SHALL NOT APPLY TO
 MEMBERS OF THE NEW YORK CITY POLICE PENSION FUND WHO SHALL  BE  GOVERNED
 BY SECTION 13-254 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
   §  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after July 1, 2009.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This  proposed  legislation  modifies  Ordinary   Disability
 Retirement  (ODR)  eligibility,  and provides an additional ODR benefit,
 for Tier 3 members of the New York City Police Pension Fund (POLICE)  by
 removing  the  requirements  of  having  at least five years of credited
 service and being eligible for primary Social Security disability  bene-
 fits (SSDI).

          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                     Year      POLICE
                     2025         4.7
                     2026         5.5
                     2027         6.4
                     2028         7.5
                     2029         8.5
                     2030         9.6
                     2031        10.6
                     2032        11.4
                     2033        12.3
                     2034        13.1
                     2035        13.8
                     2036        14.6
                     2037        15.3
 S. 8764                             3
 
                     2038        16.0
                     2039        16.7
                     2040        17.4
                     2041        20.0
                     2042        20.7
                     2043        21.5
                     2044        22.3
                     2045        23.1
                     2046        23.9
                     2047        24.7
                     2048        25.6
                     2049        26.5
    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.
 
           INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)
              Present Value (PV)                 POLICE
              PV of Benefits:                     80.6
              PV of Employee Contributions:        0.0
              PV of Employer Contributions:       80.6
              Unfunded Accrued Liabilities:      (17.5)
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                  POLICE
              Number of Payments:                     16
              Fiscal Year of Last Payment:          2040
              Amortization Payment:              (1.9) 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.
 
                                                 POLICE
              Active Members
              - Number Count:                     20,176
              - Average Age:                        32.8
              - Average Service:                     6.1
              - Average Salary:                  107,600
 
   IMPACT ON MEMBER BENEFITS: Currently, active Tier 3 POLICE members are
 eligible  for  an ODR benefit if they are approved for SSDI benefits and
 have at least five years of credited service.
   Under the proposed legislation, active  or  separated  Tier  3  POLICE
 members  who  are  determined to be disabled by the POLICE Medical Board
 would be eligible for an ODR benefit, irrespective of  SSDI  eligibility
 and  credited  service.  The  safeguards provisions associated with SSDI
 would be replaced with Tier 1 and Tier 2 safeguards.
   The proposed ODR benefit would be equal  to  the  greater  of  1/3  of
 applicable Final Average Salary (FAS) or 2% of applicable FAS multiplied
 S. 8764                             4
 
 by  credited service. This benefit would be subject to an offset, begin-
 ning at age 62, equal to 50% of the primary social security  benefit  as
 defined  in  Retirement  and  Social Security Law Section (RSSL) 511, if
 any,  and would be subject to annual escalation pursuant to RSSL Section
 510.
   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.
   *  For  purposes of this Fiscal Note, it has been assumed that 100% of
 members exiting for ODR under current ODR rates would be ineligible  for
 SSDI.
   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 does not quantify the potential cost for members who
 may qualify for ordinary disability benefits before enactment.
   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 2024-21 dated March 7,
 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.

2023-S8764A (ACTIVE) - Details

See Assembly Version of this Bill:: A9515
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§506 & 507, R & SS L

2023-S8764A (ACTIVE) - Summary

Modifies eligibility for ordinary disability benefits and re-employment of disability retirees of the New York city police pension fund Tier III plans.

2023-S8764A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8764A

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
eligibility for ordinary disability benefits and re-employment of disa-
bility retirees of the New York city police pension fund Tier III plans

 
PURPOSE:

Provides for certain benefits and corrects inequities to the Tier 3
Ordinary Disability benefits of the New York City Police Pension fund.

 
SUMMARY OF PROVISIONS:

Section 1: This section removes the requirement that Tier 3 police offi-
cers be in receipt of primary social security disability insurance to
qualify for ordinary disability retirement. Rather, it restores the
standard for the police pension fund plans, that the Police Pension
Fund's Medical Board evaluate the officer to determine whether they are
physically or mentally incapacitated for the performance of duty and

ought to be retired.

Section 2: This section removes receipt of primary social security disa-
bility insurance as continued eligibility for the benefit.  Safeguards
on ordinary disability retirement would instead be governed by the Tier
1 and 2 standard, as the eligibility for the benefit would now be equi-
table between the Tiers.

Section 3: This act shall be deemed to have been in effect since July 1,
2009, or the inception of the Tier 3 plans.

 
JUSTIFICATION:

In July 2009, upon the veto of the Tier 2 extender bill, new entrants to
the New York City Police Pension Fund became governed by Article 14 of
the New York State Retirement and Social Security Law, the Coordinated-
Escalator Retirement Plan, also known as Tier 3. All uniformed members
of the NYPD hired on or after July 1, 2009 were defacto placed into a
drastically different pension plan than Tiers 1 and 2.

Among these differences is the restriction that a member be in receipt
of primary social security disability insurance ("SSDI") to be eligible
for ordinary disability retirement - a benefit intended by this legisla-
ture to be available to uniformed members of the service who become
disabled as the result of an incident that does not occur in the line of
duty. Receipt of SSDI is an incredibly high bar for the uniformed
members of the NYPD to attain, as it requires an individual to be perma-
nently disabled from any employment, not solely the inability to perform
the duties of a police officer, which was the standard for Tiers 1 and
2. This mandate could lead to a denial of benefits for members who are
permanently disabled from police work and bravely served and protected
the residents of the City of New York.

When the extension of Tier 2 retirement benefits was vetoed in 2009,
eligibility for benefit was rendered unattainable for the aforementioned
reasons, which was not the legislative intent.  Adjusting the eligibil-

ity for ordinary disability retirement would thusly restore the benefit
and correct this inequity.

 
FISCAL IMPLICATIONS:

See the Fiscal Note

 
LEGISLATIVE HISTORY:

New bill

 
EFFECTIVE DATE:
This act shall be deemed to have been in effect since July 1, 2009.

2023-S8764A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8764--A
 
                             I N  S E N A T E
 
                               March 8, 2024
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- 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
   eligibility for ordinary  disability  benefits  and  re-employment  of
   disability  retirees of the New York city police pension fund Tier III
   plans
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  506 of the retirement and social security law is
 amended by adding a new subdivision a-1 to read as follows:
   A-1. THE PROVISIONS OF SUBDIVISION A OF THIS SECTION SHALL  NOT  APPLY
 TO  MEMBERS  OF THE NEW YORK CITY POLICE PENSION FUND.  MEDICAL EXAMINA-
 TION OF A POLICE PENSION MEMBER IN CITY-SERVICE FOR ORDINARY  DISABILITY
 SHALL  BE  MADE UPON THE APPLICATION OF THE POLICE COMMISSIONER, OR UPON
 THE APPLICATION OF SUCH MEMBER OR OF A PERSON ACTING  ON  SUCH  MEMBER'S
 BEHALF, STATING THAT SUCH MEMBER IS PHYSICALLY OR MENTALLY INCAPACITATED
 FOR  THE  PERFORMANCE  OF  DUTY AND OUGHT TO BE RETIRED. IF SUCH MEDICAL
 EXAMINATION SHOWS THAT SUCH MEMBER IS PHYSICALLY OR  MENTALLY  INCAPACI-
 TATED  FOR  THE PERFORMANCE OF DUTY AND OUGHT TO BE RETIRED, THE MEDICAL
 BOARD SHALL SO REPORT AND THE BOARD SHALL RETIRE SUCH MEMBER  FOR  ORDI-
 NARY DISABILITY.
   § 2. Subdivision d of section 507 of the retirement and social securi-
 ty  law, as added by chapter 890 of the laws of 1976, is amended to read
 as follows:
   d. If a member shall cease to be eligible for primary social  security
 benefits before attaining age sixty-five, or, if receipt of social secu-
 rity  benefits  is  not  a  condition for disability benefits hereunder,
 shall engage in such employment or business  activity  as  would  render
 such  member ineligible for social security disability benefits (had [he
 or she] SUCH MEMBER otherwise been eligible), benefits  hereunder  shall
 cease.    Provided,  however,  if such member is otherwise eligible, the
 state civil service department or appropriate municipal commission shall
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14498-05-4
 S. 8764--A                          2
 
 place the name of such person, as a preferred eligible, on the appropri-
 ate eligible lists prepared by it for positions for which such person is
 stated to be qualified in a salary grade not exceeding that  from  which
 such person retired. In such event, disability benefits shall be contin-
 ued  for such member until such member first shall be offered a position
 in public service at such salary grade. THIS SUBDIVISION SHALL NOT APPLY
 TO MEMBERS OF THE NEW  YORK  CITY  POLICE  PENSION  FUND  WHO  SHALL  BE
 GOVERNED BY SECTION 13-254 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW
 YORK.
   §  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after July 1, 2009.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This  proposed  legislation  modifies  Ordinary   Disability
 Retirement  (ODR)  eligibility,  and provides an additional ODR benefit,
 for Tier 3 members of the New York City Police Pension Fund (POLICE)  by
 removing  the  requirements  of  having  at least five years of credited
 service and being eligible for primary Social Security disability  bene-
 fits (SSDI).
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
 
                     Year      POLICE
                     2025      4.7
                     2026      5.5
                     2027      6.4
                     2028      7.5
                     2029      8.5
                     2030      9.6
                     2031      10.6
                     2032      11.4
                     2033      12.3
                     2034      13.1
                     2035      13.8
                     2036      14.6
                     2037      15.3
                     2038      16.0
                     2039      16.7
                     2040      17.4
                     2041      20.0
                     2042      20.7
                     2043      21.5
                     2044      22.3
                     2045      23.1
                     2046      23.9
                     2047      24.7
                     2048      25.6
                     2049      26.5
 
    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. 8764--A                          3
 
           INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)

                Present Value (PV)                 POLICE
                PV of Benefits:                    80.6
                PV of Employee Contributions:      0.0
                PV of Employer Contributions:      80.6
                Unfunded Accrued Liabilities:      (17.5)
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                                                   POLICE
                Number of Payments:                16
                Fiscal Year of Last Payment:       2040
                Amortization Payment:              (1.9) 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.
 
                                         POLICE
                Active Members
                - Number Count:          20,176
                - Average Age:           32.8
                - Average Service:       6.1
                - Average Salary:        107,600
 
   IMPACT ON MEMBER BENEFITS: Currently, active Tier 3 POLICE members are
 eligible  for  an ODR benefit if they are approved for SSDI benefits and
 have at least five years of credited service.
   Under the proposed legislation, active  or  separated  Tier  3  POLICE
 members  who  are  determined to be disabled by the POLICE Medical Board
 would be eligible for an ODR benefit, irrespective of  SSDI  eligibility
 and  credited  service.  The  safeguards provisions associated with SSDI
 would be replaced with Tier 1 and Tier 2 safeguards.
   The proposed ODR benefit would be equal  to  the  greater  of  1/3  of
 applicable Final Average Salary (FAS) or 2% of applicable FAS multiplied
 by  credited service. This benefit would be subject to an offset, begin-
 ning at age 62, equal to 50% of the primary social security  benefit  as
 defined  in  Retirement  and  Social Security Law Section (RSSL) 511, if
 any, and would be subject to annual escalation pursuant to RSSL  Section
 510.
   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.
   * For purposes of this Fiscal Note, it has been assumed that  100%  of
 members  exiting for ODR under current ODR rates would be ineligible for
 SSDI.
 S. 8764--A                          4
 
   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 does not quantify the potential cost for members who
 may qualify for ordinary disability benefits before enactment.
   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 2024-33 dated March 21,
 2024 was prepared by the Chief Actuary for the New York City  Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2024 Legislative Session.

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