S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8441
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 16, 2025
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   eligibility  of uniformed personnel of the New York city department of
   correction for ordinary disability benefits

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 507-a of the retirement and social security law is
 amended by adding a new subdivision f to read as follows:
   F. NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW,  THERE  SHALL  BE  NO
 RESTRICTIONS  ON  THE  EARNINGS  FROM  EMPLOYMENT  NOT IN PUBLIC SERVICE
 PERMITTED TO A MEMBER OF THE UNIFORMED PERSONNEL OF THE  NEW  YORK  CITY
 DEPARTMENT OF CORRECTION WHO:
   1. HAS RETIRED PURSUANT TO THE PROVISIONS OF THIS SECTION; AND
   2.  WAS SUBJECT TO THE PROVISIONS OF (I) SUBDIVISION D OF SECTION FIVE
 HUNDRED FOUR OF THIS ARTICLE, (II) SUBDIVISION C OF SECTION FIVE HUNDRED
 FOUR-A OF THIS ARTICLE, OR (III) SUBDIVISION C OF SECTION  FIVE  HUNDRED
 FOUR-B  OF THIS ARTICLE PRIOR TO SUCH MEMBER'S RETIREMENT, SUBSEQUENT TO
 THE DATE AS OF WHICH SUCH MEMBER WOULD HAVE BEEN  ELIGIBLE  FOR  SERVICE
 RETIREMENT.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This proposed legislation would remove post-retirement earn-
 ings restrictions from private sector  employment  for  certain  retired
 uniformed  personnel  of  the New York City Department of Correction who
 are receiving disability benefits from  the  New  York  City  Employees'
 Retirement  System  (NYCERS)  after  reaching what would have been their
 service retirement eligibility date.
   CENSUS DATA: The number of retirees who will return to private  sector
 service in the future is unknown and the amount of the pension allowance
 currently suspended is dependent on salary earned and pension allowance.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05924-02-5
              

 A. 8441                             2
 
   The  preliminary  census  data  collected  as of June 30, 2024 for the
 potentially  impacted  population-  individuals  who   are   member   of
 Correction  Officer  20-Year Plan, Correction Officer 25-Year Retirement
 Plan, or Correction Captain 20-Year Plan, and have reached their service
 retirement date- is summarized below.
 
                                           NYCERS
                   Receiving Members
                   -Number Count:             538
                   -Average Age:             64.9
                   -Average Benefit:       23,100
 
   BACKGROUND  /  IMPACT  ON  MEMBER BENEFITS: Currently, if a correction
 disability retiree's Personal Service Income (PSI) exceeds  the  limita-
 tion  for  the  calendar year, then such retiree's disability pension is
 suspended for 12 months.
   NYCERS restricts the total calendar year Personal Service Income (PSI)
 resulting from all public and private employment for  certain  retirees,
 including  certain  Tier  3  correction  officers who receive disability
 retirement benefits under  RSSL  Section  507-a  (Correction  Disability
 Retiree).  The  NYCERS PSI limitation for 2023 was $35,200 and increases
 each year with the Consumer Price Index. As of the date this Fiscal Note
 was released, the 2024 limit had not been published.
   Under the proposed legislation,  Correction  Disability  Retirees  who
 were  Tier  3 correction members in the Early Service Retirement Benefit
 Plan  for  General  Members,  the  Correction  Officer   20-Year   Plan,
 Correction  Officer  25-Year  Retirement Plan, or the Correction Captain
 20-Year Plan, would no longer be  subject  to  the  PSI  limitation  for
 private  employment  following a 507-a disability retirement and receive
 the entire pension amount for that year. The annual per incident cost of
 this fiscal note will vary depending on that pension amount. For  Fiscal
 Year 2025, that average amount is approximately $23,100.
   ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
 calculated based on the Revised 2021 Actuarial Assumptions  and  Methods
 of the impacted retirement systems.
   It is assumed that correction disability retirees would continue to be
 limited  by other post-retirement earnings restrictions such as New York
 City Charter (NYCC) Section 1117 and RSSL Section 212.
   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
 A. 8441                             3
 
 procedures  and  with  the Actuarial Standards of Practice issued by the
 Actuarial Standards Board.
   FISCAL  NOTE  IDENTIFICATION: This Fiscal Note 2025-46 dated April 21,
 2025 was prepared by the Chief Actuary for the New York City  Retirement
 Systems  and  Pension Funds and is intended for use only during the 2025
 Legislative Session.