S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9274
 
                             I N  S E N A T E
 
                                May 8, 2024
                                ___________
 
 Introduced  by Sen. SCARCELLA-SPANTON -- read twice and ordered printed,
   and when printed to be committed to the Committee on Civil Service and
   Pensions
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  extending  the benefits of the variable supplements fund
   for transit police members of the New York city employees'  retirement
   system

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (c) of subdivision 1 of  section  13-191  of  the
 administrative  code  of the city of New York, as amended by chapter 577
 of the laws of 1992, is amended to read as follows:
   (c) "Beneficiary". Any person who receives a retirement  allowance  by
 reason  of  having  retired,  on  or after [July first, nineteen hundred
 eighty-seven] OCTOBER FIRST, NINETEEN HUNDRED  SIXTY-EIGHT  for  service
 (with  credit  for  twenty  or  more years of service toward the minimum
 period) as a transit police officer; provided, that no person who held a
 rank or position as a transit police superior  officer,  as  defined  in
 subdivision  eighty-four  of section 13-101 of this [title] CHAPTER who,
 on or after May first, nineteen hundred ninety-two, subsequently  became
 a  transit  police officer shall be considered a beneficiary unless such
 person (1) subsequently performed at least three years of service  as  a
 transit  police officer or (2) returned to service, from the position of
 sergeant, as a transit police officer during the eighteen  month  proba-
 tionary  period,  or such other probationary period as may be applicable
 or (3) returned to service as a transit police officer during the  three
 year  period  specified  in  paragraph (e) of subdivision one of section
 seventy-five of the civil service law, or (4) returned to service  as  a
 transit  police officer as the result of a hearing conducted pursuant to
 applicable law.
   § 2.  Paragraph (b) of subdivision 1 of section 13-192 of the adminis-
 trative code of the city of New York, as amended by chapter 720  of  the
 laws of 1994, is amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08380-04-4
              

 S. 9274                             2
 
   (b)  "Beneficiary".  Any person who receives a retirement allowance by
 reason of having retired, on or  after  [July  first,  nineteen  hundred
 eighty-seven,]  OCTOBER FIRST, NINETEEN HUNDRED SIXTY-EIGHT, for service
 (with credit for twenty or more years  of  service  toward  the  minimum
 period)  as  a  transit  police  member and as a transit police superior
 officer; provided, however, that where a person who held or holds a rank
 or position as a transit police superior officer, subsequently and on or
 after May first, nineteen hundred ninety-two became or becomes a transit
 police officer, and while a transit police officer, retired  or  retires
 for service under such circumstances that he or she would have qualified
 as  a  beneficiary  under the provisions of paragraph (c) of subdivision
 one of section 13-191 of this [title] CHAPTER (other  than  the  proviso
 thereof),  but  did  not or does not qualify as a beneficiary under such
 paragraph (c) because he or she was or is disqualified by the  terms  of
 such  proviso, such retiree shall nevertheless be deemed to be a benefi-
 ciary under the provisions of this section.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would extend  the  eligibility  for
 the  payment  of  Transit  Police  Officers' and Transit Police Superior
 Officers' Variable Supplements Funds (VSF)  benefits  to  former  NYCERS
 members  who  retired  for service from the New York City Transit Police
 between October 1, 1968 and June 30, 1987  with  20  or  more  years  of
 service.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
      Year                          NYCERS
      2025                          20.9
      2026                          0
      2027                          0
      2028                          0
      2029                          0
      2030                          0
      2031                          0
      2032                          0
      2033                          0
      2034                          0
      2035                          0
      2036                          0
      2037                          0
      2038                          0
      2039                          0
      2040                          0
      2041                          0
      2042                          0
      2043                          0
      2044                          0
      2045                          0
      2046                          0
      2047                          0
      2048                          0
      2049                          0
 
   The entire increase in employer contributions will be allocated to New
 York  City.  There  are  no  active Transit Police members of NYCERS and
 S. 9274                             3
 
 therefore a transfer from NYCERS, via a City payment,  to  the  impacted
 VSFs would be necessary to fund the additional VSF benefit obligations.
 
           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)
      Present Value (PV)            NYCERS
      PV of Benefits:               18.9
      PV of Employee Contributions: 0
      PV of Employer Contributions: 18.9
      Unfunded Accrued Liabilities: 18.9
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                    NYCERS
      Number of Payments:           1
      Fiscal Year of Last Payment:  2025
      Amortization Payment:         20.9 M

   Since  those  that  would  benefit  are retired, and therefore have no
 remaining working lifetime, the  entire  increase  in  Unfunded  Accrued
 Liabilities would be recognized immediately.
   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
      Receiving Members
      - Number Count:               304
      - Average Age:                82.0
 
   IMPACT  ON  RETIREE  BENEFITS: Currently, Transit Police Officers' and
 Transit Police Superior Officers' VSFs provide supplemental  non-pension
 benefits  to  former  NYCERS members who retired for service on or after
 July 1, 1987 from New York City Transit Police with 20 or more years  of
 service.
   The  amount  of  VSF  benefits  paid is currently $12,000 per Calendar
 Year.  These VSF benefits are payable on an annual basis around December
 15th to eligible former NYCERS members for  their  lifetimes.  Upon  the
 death of the NYCERS retiree, VSF payments cease.
   Under  the proposed legislation, former NYCERS members who retired for
 service from New York City Transit Police between October  1,  1968  and
 June  30, 1987 with 20 or more years of service would become immediately
 eligible for VSF benefits on the December 15th following  the  Effective
 Date and for each year thereafter. For the purposes of this Fiscal Note,
 it  has  been  assumed  that benefits payable under this proposed legis-
 lation are prospective only.
   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.
 S. 9274                             4
 
   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  2024-17  dated  February
 23, 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.