S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6486
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 14, 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 and sanitation workers

   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/SANITATION  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/SANITATION
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09760-02-5
              

 S. 6486                             2
 
 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 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/SANITATION  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  Sanitation  Force  and
 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      5.9
                     2027      6.2
                     2028      6.7
                     2029      7.1
                     2030      7.5
                     2031      8.0
                     2032      8.3
                     2033      8.7
                     2034      9.1
                     2035      9.4
                     2036      9.7
                     2037      10.0
                     2038      10.3
                     2039      10.5
                     2040      10.7
                     2041      8.4
                     2042      8.7
                     2043      9.1
                     2044      9.4
                     2045      9.7
                     2046      10.0
                     2047      10.3
                     2048      10.7
                     2049      11.1
                     2050      11.4
  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 0.33%.
 
   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
 S. 6486                             3
 
 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, 2024 ($ in Millions)
 
              Present Value (PV)                 NYCERS
              (1) PV of Employer Contributions:  48.5
              (2) PV of Employee Contributions:  (3.0)
              Total PV of Benefits (1) + (2):    45.5
 
   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
 
                                                 NYCERS
              Increase (Decrease) in UAL:        23.3 M
              Number of Payments:                15
              Amortization Payment:              2.6 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:                    8,239
              - Average Age:                     39.8
              - Average Service:                 7.2
              - Average Salary:                  106,200
 
   IMPACT ON MEMBER BENEFITS: Currently, NYCERS  Tier  3  Sanitation  and
 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  Sanitation  and
 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
 S. 6486                             4
 
 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 2025-29 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.