S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6411
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 13, 2025
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the retirement and social security law, in  relation  to
   the  restoration  of  20  year service retirement for certain New York
   city corrections officers

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 17 of section 501 of the retirement and social
 security law, as amended by chapter 18 of the laws of 2012,  is  amended
 to read as follows:
   17.  "Normal  retirement  age"  shall  be  age  sixty-two, for general
 members, and the age at which a member completes or would have completed
 twenty-two years of service, for  police/fire  members,  New  York  city
 uniformed  correction/sanitation  revised  plan members and investigator
 revised plan members, EXCEPT THAT FOR NEW YORK CITY UNIFORMED CORRECTION
 REVISED PLAN MEMBERS, NORMAL RETIREMENT AGE SHALL BE THE AGE AT WHICH  A
 MEMBER COMPLETES OR WOULD HAVE COMPLETED TWENTY YEARS OF SERVICE.
   § 2. Subdivision d of section 503 of the retirement and social securi-
 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
 as follows:
   d.  The  normal  service  retirement benefit specified in section five
 hundred five of this article shall be paid to police/fire  members,  New
 York  city  uniformed  correction/sanitation  revised  plan  members and
 investigator revised plan members without regard to age upon  retirement
 after  twenty-two  years  of  service,  EXCEPT  THAT  THE NORMAL SERVICE
 RETIREMENT BENEFIT SPECIFIED IN SECTION FIVE HUNDRED FIVE OF THIS  ARTI-
 CLE  SHALL  BE  PAID  TO NEW YORK CITY UNIFORMED CORRECTION REVISED PLAN
 MEMBERS AFTER TWENTY YEARS OF SERVICE. Early service retirement shall be
 permitted upon retirement after twenty  years  of  credited  service  or
 attainment  of  age  sixty-two,  provided,  however,  that New York city
 police/fire   revised   plan   members,   New   York   city    uniformed
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09759-02-5
              

 S. 6411                             2
 
 correction/sanitation revised plan members and investigator revised plan
 members shall not be eligible to retire for service prior to the attain-
 ment of twenty years of credited service.
   §  3. Section 505 of the retirement and social security law is amended
 by adding a new subdivision d to read as follows:
   D. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN ANY OTHER LAW, NEW YORK
 CITY UNIFORMED CORRECTION REVISED PLAN MEMBERS 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.
   § 4. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would reduce the Normal  Retirement
 Age  for NYCERS Tier 3 members of the Uniformed Correction Force 22-Year
 Plans (i.e., Revised Plan members) to be  the  age  at  which  a  member
 completes or would have completed twenty years of service.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
 
                     Year      NYCERS
                     2026      3.0
                     2027      3.2
                     2028      3.4
                     2029      3.7
                     2030      3.9
                     2031      4.2
                     2032      4.4
                     2033      4.6
                     2034      4.8
                     2035      4.9
                     2036      5.0
                     2037      5.1
                     2038      5.2
                     2039      3.7
                     2040      3.8
                     2041      3.9
                     2042      4.1
                     2043      4.2
                     2044      4.4
                     2045      4.5
                     2046      4.7
                     2047      4.8
                     2048      5.0
                     2049      5.1
                     2050      5.3
   Projected contributions include future new hires that may be impacted.
 For Fiscal Year 2051 and beyond, the expected increase in normal cost as
 a level percent of pay for impacted new entrants is approximately 0.32%.
   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.
 S. 6411                             3
 
          INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
                    as of June 30, 2024 ($ in Millions)

              Present Value (PV)                 NYCERS
              (1) PV of Employer Contributions:  21.4
              (2) PV of Employee Contributions:  (1.3)
              Total PV of Benefits (1) + (2):    20.1
 
   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
                                                 NYCERS
              Increase (Decrease) in UAL:        12.3 M
              Number of Payments:                13
              Amortization Payment:              1.5 M
   CENSUS DATA: The estimates presented herein are based  on  preliminary
 census  data  collected  as  of  June  30, 2024. The census data for the
 impacted population is summarized below.
 
                                                 NYCERS
              Active Members
              - Number Count:                    3,165
              - Average Age:                     39.8
              - Average Service:                 8.4
              - Average Salary:                  124,900
 
   IMPACT ON MEMBER BENEFITS: Currently, NYCERS Tier 3 Correction Revised
 Plan members in 22-Year Plans who retire  with  at  least  20  years  of
 service  are  eligible to receive an annual benefit that is equal to 42%
 of Final Average Salary (FAS), increasing to a maximum benefit of 50% of
 FAS after 22 years of service.
   Under the proposed legislation, NYCERS Tier 3 Correction Revised  Plan
 members  in  22-Year  Plans who retire with at least 20 years of service
 would be eligible to receive an annual benefit that is equal to  50%  of
 FAS.
   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:
   *  Retirement rates were adjusted to reflect the earlier payability of
 the service retirement benefit associated with the proposed legislation.
   * New entrants were assumed to replace exiting members so  that  total
 payroll increases by 3% each year for impacted groups. New entrant demo-
 graphics 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
 S. 6411                             4
 
 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 2025-28  dated  March  7,
 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.