Senate Bill S2028A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2028--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by  Sens. JACKSON, CLEARE, PALUMBO -- 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 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01285-03-6
              

 S. 2028--A                          2
 
 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
 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 POLICE by removing the requirements of  having  at
 least  five  years  of  credited  service and being eligible for primary
 Social Security disability benefits (SSDI).
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                          Year           POLICE
                          2027           7.0
                          2028           8.1
                          2029           9.2
                          2030           10.3
                          2031           11.4
                          2032           12.3
                          2033           13.1
                          2034           13.9
                          2035           14.8
                          2036           15.5
                          2037           16.3
                          2038           17.1
                          2039           17.8
                          2040           18.6
                          2041           19.3
                          2042           20.1
                          2043           23.4
                          2044           24.3
                          2045           25.1
                          2046           26.0
                          2047           26.9
                          2048           27.8
                          2049           28.7
                          2050           29.6
                          2051           30.6
   Projected contributions include future new hires that may be impacted.
 For Fiscal Year 2052 and beyond, the expected increase in normal cost as
 a level percent of pay for impacted new entrants is approximately 0.32%.
 S. 2028--A                          3
 
   The entire increase in employer contributions will be allocated to New
 York City.
   PRESENT  VALUE  OF  BENEFITS:  The  Present  Value  of Benefits is the
 discounted expected value of benefits paid to  current  members  if  all
 assumptions are met, including future service accrual and pay increases.
 Future new hires are not included in this present value.
 
          INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
                    as of June 30, 2025 ($ in Millions)
           Present Value (PV)                      POLICE
           (1) PV of Employer Contributions:       114.5
           (2) PV of Employee Contributions:       0.0
           Total PV of Benefits (1)+(2):           114.5
 
   UNFUNDED  ACCRUED  LIABILITY  (UAL): Actuarial Accrued Liabilities are
 the portion of the Present Value of Benefits allocated to past  service.
 Changes  in UAL were amortized over the expected remaining working life-
 time of those impacted using level dollar payments.
 
                 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                           POLICE
                  Increase (Decrease) in UAL:             (23.4) M
                  Number of Payments:                        16
                  Amortization Payment:                    (2.6) M
 
   CENSUS DATA: The estimates presented herein are based  on  preliminary
 census  data  collected  as  of  June  30, 2025. The census data for the
 impacted population is summarized below.

                                                   POLICE
           Active Members
           -Number Count:                          23,938
           -Average Age:                           33.5
           -Average Service:                       6.7
           -Average Salary:                        117,700
 
   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-
 S. 2028--A                          4

 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  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 2026-46 dated March 20,
 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.