Assembly Bill A11516

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11516
 
                           I N  A S S E M B L Y
 
                               May 28, 2026
                                ___________
 
 Introduced   by   COMMITTEE  ON  RULES  --  (at  request  of  M.  of  A.
   Pheffer Amato) -- read once and referred to the Committee  on  Govern-
   mental Employees
 
 AN  ACT  to amend the retirement and social security law, in relation to
   the definition of additional member  contributions  and  basic  member
   contributions  for  certain New York city employees' retirement system
   members who are subject to the twenty-five year retirement program for
   fire protection inspector members under Article 15 of  the  retirement
   and social security law, to allow such additional member contributions
   to  be  used  to offset a deficit of basic member contributions, or to
   allow an excess of basic member contributions to offset a  deficit  of
   additional member contributions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (i)  of  paragraph  10  of  subdivision  e  of
 section  604-j  of  the  retirement and social security law, as added by
 section 1 of part EE of chapter 55 of the laws of 2024,  is  amended  to
 read as follows:
   (i)  Such  additional  member contributions (and any interest thereon)
 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  contributions  of  a
 member  under  section six hundred thirteen of this article or otherwise
 while they are a participant in the twenty-five year retirement  program
 or  otherwise,  EXCEPT THAT A SURPLUS OF SUCH ADDITIONAL MEMBER CONTRIB-
 UTIONS THAT ARE PAID INTO THE  RETIREMENT  SYSTEM'S  CONTINGENT  RESERVE
 FUND MAY BE USED FOR THE SOLE PURPOSE OF OFFSETTING A DEFICIT.
   § 2. Subdivision h of section 613 of the retirement and social securi-
 ty  law,  as  amended  by chapter 448 of the laws of 2018, is amended to
 read as follows:
   h. Notwithstanding any other provision  of  law  to  the  contrary,  a
 participant  may  use  any excess basic member contributions to offset a
 deficit of additional  member  contributions  as  required  pursuant  to
 sections  six hundred four-a, six hundred four-b, six hundred four-c, as
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10363-03-6
 A. 11516                            2
 
 added by chapter 96 of the laws of 1995, six hundred four-c, as added by
 chapter 472 of the laws of 1995, six hundred four-d, six hundred four-e,
 as added by chapter 576 of the laws of  2000,  six  hundred  four-e,  as
 added  by  chapter 577 of the laws of 2000, six hundred four-f, as added
 by chapter 559 of the laws of 2001, six  hundred  four-f,  as  added  by
 chapter  582  of the laws of 2001, six hundred four-g, [and] six hundred
 four-h, AND SIX HUNDRED FOUR-J of this article. The use of basic  member
 contributions  to  offset  a  deficit of additional member contributions
 does not affect the contributions' tax designation pursuant  to  section
 414(h) of the Internal Revenue Code.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This  proposed  legislation  would  amend  the  contribution
 provisions applicable to the NYCERS Tier 4 or  Tier  6  Fire  Protection
 Inspector  25-Year  Plans  to allow using any excess basic or additional
 member contributions to offset any deficits in such  other  contribution
 accounts.
   EXPECTED  INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS: The enactment
 of this proposed legislation is not expected to result in any change  in
 the amount or timing of employer contributions.
   IMPACT  ON  MEMBER BENEFITS: The proposed legislation would not affect
 the benefits payable to participants in the  Fire  Protection  Inspector
 25-Year  Plans.  Rather,  the proposed legislation would help reduce the
 administrative burdens associated with requiring the  return  of  excess
 basic  or  additional  member  contributions  and  requiring  a separate
 payment for any contribution deficits in such accounts  (or  the  calcu-
 lation of an actuarial reduction based on such deficits).
   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). This Fiscal Note does not reflect any chapter
 laws that may have been enacted during the current legislative session.
   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 2026-87 dated May 14,
 2026 was prepared by the Chief Actuary for the New York City  Retirement
 Systems  and  Pension Funds and is intended for use only during the 2026
 Legislative Session.