Senate Bill S4666A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4666--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 2025
                                ___________
 
 Introduced by Sens. JACKSON, SCARCELLA-SPANTON -- 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
   service  retirement  benefits for certain 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.  Section 505 of the retirement and social security law, as
 amended by chapter 18 of the laws of 2012, subdivision  d  as  added  by
 section  3  of  part SS of chapter 55 of the laws of 2025, is amended to
 read as follows:
   § 505. Service retirement benefits; police/fire members, New York city
 uniformed correction/sanitation revised plan  members  and  investigator
 revised  plan  members.  a.  The  normal  service retirement benefit for
 police/fire  members,  New  York  city  uniformed  correction/sanitation
 revised  plan  members  and  investigator revised plan members at normal
 retirement age shall be a pension equal to fifty percent of final  aver-
 age salary, less fifty percent of the primary social security retirement
 benefit commencing at age sixty-two, as provided in section five hundred
 eleven  of  this article, EXCEPT THAT FOR POLICE/FIRE MEMBERS OF THE NEW
 YORK CITY FIRE DEPARTMENT PENSION FUND  OR  THE  NEW  YORK  CITY  POLICE
 PENSION  FUND, THE NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED
 PLAN MEMBERS OR INVESTIGATOR REVISED PLAN MEMBERS OF THE NEW  YORK  CITY
 EMPLOYEES'  RETIREMENT  SYSTEM,  THE  NORMAL  SERVICE RETIREMENT BENEFIT
 SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL SECURITY  RETIREMENT  BENEFIT
 COMMENCING  AT  AGE SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN
 OF THIS ARTICLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04072-05-6
              

 S. 4666--A                          2
 
   b. The early service retirement benefit for police/fire  members,  New
 York  city  uniformed  correction/sanitation  revised  plan  members and
 investigator revised plan members shall be a pension equal  to  two  and
 one-tenths  percent  of  final  average  salary  times years of credited
 service  at the completion of twenty years of service or upon attainment
 of age sixty-two, increased by one-third of one percent of final average
 salary for each month of service in excess of twenty years, but  not  in
 excess  of  fifty percent of final average salary, less fifty percent of
 the primary social security retirement benefit commencing at age  sixty-
 two  as  provided  in  section  five  hundred  eleven  of  this article,
 provided, however, that New York city police/fire revised plan  members,
 New  York  city uniformed correction/sanitation revised plan members and
 investigator revised plan members shall not be eligible  to  retire  for
 service prior to the attainment of twenty years of credited service, AND
 PROVIDED FURTHER THAT FOR POLICE/FIRE MEMBERS OF THE NEW YORK CITY  FIRE
 DEPARTMENT   PENSION  FUND OR THE NEW YORK CITY POLICE PENSION FUND, THE
 NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED  PLAN  MEMBERS  OR
 INVESTIGATOR  REVISED  PLAN  MEMBERS  OF  THE  NEW  YORK CITY EMPLOYEES'
 RETIREMENT SYSTEM, THE EARLY SERVICE RETIREMENT  BENEFIT  SHALL  NOT  BE
 REDUCED  BY THE PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT
 AGE SIXTY-TWO AS  PROVIDED  IN  SECTION  FIVE  HUNDRED  ELEVEN  OF  THIS
 ARTICLE.
   c.    A    police/fire    member,    a   New   York   city   uniformed
 correction/sanitation revised plan member  or  an  investigator  revised
 plan  member  who  retires  with twenty-two years of credited service or
 less may become eligible for annual escalation of the service retirement
 benefit if [he] SUCH MEMBER elects to have the payment  of  [his]  THEIR
 benefit commence on the date [he] SUCH MEMBER would have completed twen-
 ty-two  years  and  one  month  or  more  of service. In such event, the
 service retirement benefit shall equal  two  percent  of  final  average
 salary  for  each  year  of  credited service, less fifty percent of the
 primary social security retirement benefit commencing at  age  sixty-two
 as  provided in section five hundred eleven of this article, EXCEPT THAT
 FOR POLICE/FIRE MEMBERS OF THE NEW  YORK    CITY    FIRE      DEPARTMENT
 PENSION  FUND    OR THE NEW YORK CITY POLICE PENSION FUND, NEW YORK CITY
 UNIFORMED CORRECTION/SANITATION REVISED  PLAN  MEMBERS  OR  INVESTIGATOR
 REVISED  PLAN MEMBERS OF THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM,
 THE SERVICE RETIREMENT BENEFIT SHALL  NOT  BE  REDUCED  BY  THE  PRIMARY
 SOCIAL  SECURITY  RETIREMENT  BENEFIT  COMMENCING  AT  AGE  SIXTY-TWO AS
 PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
   d.  Notwithstanding  anything  to  the  contrary  in  any  other  law,
 police/fire  members  of  the New York city police pension fund shall be
 eligible for a normal service retirement benefit in  lieu  of  an  early
 service  retirement  benefit  upon  completing  twenty  years of service
 pursuant to subdivision d of section five hundred three of this article.
   § 2. Section 511 of the retirement and social security law is  amended
 by adding a new subdivision h to read as follows:
   H. THIS SECTION SHALL NOT APPLY TO POLICE/FIRE MEMBERS OF THE NEW YORK
 CITY FIRE DEPARTMENT PENSION FUND OR THE NEW YORK  CITY  POLICE  PENSION
 FUND,  TO  NEW  YORK  CITY  UNIFORMED CORRECTION/SANITATION REVISED PLAN
 MEMBERS OR INVESTIGATOR REVISED  PLAN  MEMBERS  OF  THE  NEW  YORK  CITY
 EMPLOYEES'  RETIREMENT  SYSTEM  WHO RECEIVE A SERVICE RETIREMENT BENEFIT
 PURSUANT TO SECTION FIVE HUNDRED FIVE OF  THIS  ARTICLE  OR  A  DEFERRED
 VESTED BENEFIT PURSUANT TO SECTION FIVE HUNDRED SIXTEEN OF THIS ARTICLE.
 S. 4666--A                          3
 
   § 3. Subdivision c of section 516 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   c.  The  deferred vested benefit of police/fire members, New York city
 police/fire   revised   plan   members,   New   York   city    uniformed
 correction/sanitation  revised plan members or investigator revised plan
 members shall be a pension commencing at early retirement age  equal  to
 two  and one-tenths percent of final average salary times years of cred-
 ited service, less fifty percent of the primary social security  retire-
 ment  benefit  commencing  at age sixty-two, as provided in section five
 hundred eleven of this article, EXCEPT THAT FOR POLICE/FIRE  MEMBERS  OF
 THE  NEW YORK CITY FIRE DEPARTMENT PENSION FUND OR  THE  NEW  YORK  CITY
 POLICE  PENSION   FUND, NEW YORK  CITY  UNIFORMED  CORRECTION/SANITATION
 REVISED  PLAN  MEMBERS  OR  INVESTIGATOR REVISED PLAN MEMBERS OF THE NEW
 YORK CITY EMPLOYEES' RETIREMENT  SYSTEM,  THE  DEFERRED  VESTED  BENEFIT
 SHALL  NOT  BE REDUCED BY THE PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT
 COMMENCING AT AGE SIXTY-TWO AS PROVIDED IN SECTION FIVE  HUNDRED  ELEVEN
 OF  THIS  ARTICLE.  A  police/fire  member,  a New York city police/fire
 revised plan member, a New  York  city  uniformed  correction/sanitation
 revised  plan  member  or  investigator revised plan member may elect to
 receive [his] THEIR vested benefit commencing at early retirement age or
 age fifty-five. If the vested benefit commences before early  retirement
 age,  the  benefit  shall  be reduced by one-fifteenth for each year, if
 any, that the member's early retirement age is in excess of  age  sixty,
 and  by one-thirtieth for each additional year by which the vested bene-
 fit commences prior to early retirement age. If such vested  benefit  is
 deferred  until  after  such member's normal retirement age, the benefit
 shall be computed and subject to annual escalation in the same manner as
 provided for an early retirement benefit pursuant to  subdivision  c  of
 section five hundred five of this article.
   §  4.  Notwithstanding any provision of law, rule or regulation to the
 contrary, any effect on a participating employer's contribution rate due
 to the provisions of this act shall not apply to the calculation of such
 participating employer's contribution rate for the purposes of  subdivi-
 sion c of section 500 of the retirement and social security law.
   §  5.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would eliminate the offset equal to
 50% of the  primary  social  security  benefit  in  the  service,  early
 service,  and  vested  retirement benefits for certain Tier 3 members of
 NYCERS, POLICE, and FIRE.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                Year      NYCERS    POLICE    FIRE      TOTAL
                2027        49.4      82.3     11.9      143.6
                2028        40.3      79.0     12.5      131.8
                2029        42.7      84.0     13.2      139.9
                2030        45.2      89.1     14.0      148.3
                2031        47.6      93.8     14.8      156.2
                2032        49.7      97.9     15.7      163.3
                2033        51.9     102.0     16.5      170.4
                2034        54.3     105.9     17.4      177.6
                2035        56.3     109.7     18.3      184.3
                2036        58.2     113.5     19.2      190.9
 S. 4666--A                          4
 
                2037        60.1     117.3     20.2      197.6
                2038        61.9     121.0     21.1      204.0
                2039        63.8     124.8     22.1      210.7
                2040        65.7     128.5     23.1      217.3
                2041        67.6     132.3     24.0      223.9
                2042        51.6     136.2     25.0      212.8
                2043        53.6     108.7     25.9      188.2
                2044        55.8     112.8     22.3      190.9
                2045        57.9     117.0     23.2      198.1
                2046        60.1     121.4     24.0      205.5
                2047        62.3     125.7     24.9      212.9
                2048        64.5     130.0     25.8      220.3
                2049        66.8     134.5     26.6      227.9
                2050        69.1     139.3     27.5      235.9
                2051        71.6     144.4     28.3      244.3
    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 2.14% for NYCERS, 1.52% for POLICE, and 0.84% for FIRE.
   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)                 NYCERS    POLICE    FIRE
      (1) PV of Employer Contributions:    420.4     915.7    156.6
      (2) PV of Employee Contributions:      0.0       0.0      0.0
      Total PV of Benefits (1) + (2):      420.4     915.7    156.6
   UNFUNDED ACCRUED LIABILITY (UAL): Actuarial  Accrued  Liabilities  are
 the  portion of the Present Value of Benefits allocated to past service.
 Changes in UAL for active  members  were  amortized  over  the  expected
 remaining   working  lifetime  of  those  impacted  using  level  dollar
 payments.  UAL attributable to inactive members was  recognized  in  the
 first year.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                         NYCERS    POLICE    FIRE
      Increase (Decrease) in UAL:        168.5 M   294.3 M   43.5 M
      Number of Payments:                  15        16        17
      Amortization Payment:               18.0 M    31.4 M    4.6 M
      Additional One-time Payment:        11.4 M     8.1 M    0.2 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.
 
                                         NYCERS    POLICE    FIRE
      Active Members
      - Number Count:                      8,691    23,938     6,510
      - Average Age:                        40.2      33.5      34.5
      - Average Service:                     7.7       6.7       6.4
      - Average Salary:                  109,000   117,700   118,200
      Term. Vested Members
 S. 4666--A                          5
 
      - Number Count:                        829     1,066        16
      - Average Age:                        40.9      36.3      38.3
 
   IMPACT  ON  MEMBER  BENEFITS: Currently, Tier 3 normal service retire-
 ment, early service  retirement,  and  vested  retirement  benefits  for
 POLICE and FIRE members, and NYCERS members in 22-Year Plans are subject
 to  an  offset  equal  to  50% of the primary social security benefit as
 defined in Retirement and Social Security Law (RSSL) Section 511  begin-
 ning at age 62.
   Under  the proposed legislation, the offset for such benefits would be
 eliminated resulting in an increase in benefits.
   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
    demographics were developed based on data for recent  new  hires  and
    actuarial judgement.
   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.
   This Fiscal Note does not include cost analyses relating to provisions
 contained in RSSL Section 500(c).
   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 2026-31 dated March 9,
 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.