Senate Bill S8140A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8140--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2025
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and recommitted to said committee
 
 AN  ACT to amend the retirement and social security law, relating to the
   transfer of reserves between public employee retirement systems of the
   state
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The opening paragraphs of subdivisions a and h of section
 343 of the retirement and social security law, the opening paragraph  of
 subdivision  a  as  amended  by  chapter 533 of the laws of 2015 and the
 opening paragraph of subdivision h as amended by chapter 717 of the laws
 of 2023, are amended to read as follows:
   Notwithstanding any other provision of law  providing  for  transfers,
 any member of any retirement system maintained by the state or a munici-
 pality  thereof, operating on a sound financial basis and subject to the
 supervision of the department of financial services of  this  state  may
 transfer  [his  or her] THEIR membership pursuant to this section to the
 New York state and local employees' retirement system, the New York city
 board of education employees' retirement  system,  the  New  York  state
 teachers'  retirement  system,  the  New York state and local police and
 fire retirement system or to the New  York  city  employees'  retirement
 system.  Any  member  of  the  New  York state and local police and fire
 retirement system may transfer [his or  her]  THEIR  membership  to  any
 retirement  system,  other than the hospital retirement system, which is
 operating on a sound basis and is subject  to  the  supervision  of  the
 department  of  financial  services  of  this  state. Any police officer
 employed by the metropolitan transportation authority who is a member of
 the MTA police twenty year retirement program of the metropolitan trans-
 portation authority defined benefit pension plan  (hereinafter  referred
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09913-03-5
              

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 to  in this section as the "MTA police retirement program") may transfer
 [his or her] THEIR membership in the New York state and local police and
 fire retirement system and/or the New York city police pension  fund  to
 the  MTA  police  retirement program OR MAY TRANSFER THEIR MEMBERSHIP IN
 THE MTA POLICE RETIREMENT PROGRAM TO ANY OF THE SYSTEMS OR FUNDS  REFER-
 ENCED  IN  THIS  SENTENCE.  Any  police  officer who was employed by the
 metropolitan transportation authority, the Long Island Railroad  Company
 or  the Metro-North Commuter Railroad Company and who is a member of the
 MTA police retirement program may transfer [his or her] THEIR membership
 in the MTA police retirement program to the New  York  state  and  local
 police and fire retirement system. Any transfer pursuant to this section
 may be effectuated only if the member has accepted a position in another
 branch of the state or municipal service which would make it:
   Notwithstanding  any  other  provision  of  law  to the contrary, with
 respect to transfers pursuant to this section which occur  on  or  after
 the  effective date of [the] chapter SEVEN HUNDRED SEVENTEEN of the laws
 of two thousand twenty-three [that amended this subdivision], no  deter-
 mination  of  a  reserve  pursuant  to  subdivision c of this section or
 transfer thereof pursuant to the first sentence of subdivision d of this
 section shall be required in the case of any transfer pursuant  to  this
 section  (other than a transfer from the New York state and local police
 and fire retirement system to  either  (1)  the  New  York  city  police
 department  subchapter  two  pension  fund,  (2)  the New York city fire
 department subchapter two pension fund or (3) the MTA police  retirement
 program  or  a transfer from either (i) the New York city police depart-
 ment subchapter two pension fund or (ii) the New York city fire  depart-
 ment  subchapter  two  pension fund to either (A) the New York state and
 local police and fire retirement system or (B) the MTA police retirement
 program or a transfer from the MTA police retirement program to the  New
 York  state  and  local police and fire retirement system OR (C) THE NEW
 YORK CITY POLICE DEPARTMENT SUBCHAPTER TWO PENSION FUND) in the case  of
 a  member  with  less than ten years of credited service with the trans-
 ferring retirement system at the time the transfer is initiated.    With
 respect  to  transfers  pursuant  to such subdivisions which occur on or
 after the effective date of [the] chapter SEVEN HUNDRED SEVENTEEN of the
 laws of two thousand twenty-three [that amended this  subdivision],  the
 transfer  of  a  pension  reserve  shall  be required when the member is
 transferring ten or more years of credited service from a public retire-
 ment system of the state to any other public retirement  system  of  the
 state,  excluding  any  transfers  within  and between the New York city
 employees' retirement system, the New  York  city  teachers'  retirement
 system  and  the New York city board of education retirement system. For
 the purpose of giving the transferring member such status and  crediting
 such  service in the second retirement system as such member was allowed
 in the first retirement system in those cases to which this  subdivision
 shall  apply,  the transfer shall be deemed complete upon receipt by the
 second retirement system of:
   § 2. This act shall take effect immediately and  shall  apply  to  any
 membership  transfer  initiated  on  or  after January 1, 2023 for which
 notice is received by the affected retirement systems or funds on a date
 later than within one year on or after the effective date of this act or
 within one year on or after the date of the membership transfer.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed bill would allow members  of  the  Metropolitan
 Transportation  Authority 20-year Police Retirement Program (MTA PRP) to
 S. 8140--A                          3
 
 transfer MTA service and assets to the New York City Police Pension Fund
 (NYC PPF).
   INCREASE  OR  (DECREASE)  IN EMPLOYER CONTRIBUTIONS: The transfer of a
 member's service and plan assets from the MTA PRP to the  NYC  PPF  will
 increase both the assets and liabilities of the NYC PPF.
   To  the  extent  that the assets transferred are more or less than the
 increase in Present Value of Future Employer Contributions (PVFERC)  due
 to the transferred service, there will be a gain or loss.
   The  potential  gains  or  losses  to  the NYC PPF would impact future
 employer  contributions,  and  the  increase  or  decrease  in  employer
 contributions would be allocated to New York City.
   BACKGROUND:  Currently, MTA PRP members are not able to transfer their
 MTA service to the NYC PPF. This proposed bill would allow  MTA  service
 to  be  transferred  to the NYC PPF subject to a one-year timing limita-
 tion. The proposed bill also provides for a transfer of assets from  the
 MTA PRP to the NYC PPF.
   The net increase in PVFERC is equal to the change in the Present Value
 of  Benefits  (PVB)  minus  the  change  in  the Present Value of Future
 Employee Contributions (PVFEEC), minus the transferred assets.  The  net
 increase  in  the  PVFERC  could  be positive (loss), negative (gain) or
 zero.
   The assets transferred are equal to the  Actuarial  Accrued  Liability
 (AAL)  for  the  member  in  the MTA PRP, which is equal to the member's
 basic member contribution balance (BMCs) in the MTA  PRP  plus  the  net
 pension  reserve,  if any. After the BMCs in the MTA PRP are transferred
 to the NYC PPF, the NYC PPF member is no longer also a member in the MTA
 PRP.
   POTENTIAL GAINS / LOSSES: With respect to an  individual  member,  the
 additional  cost of this proposed legislation could vary greatly depend-
 ing on the member's length of service,  age,  and  salary  history.  The
 change  in  a  member's  PVFERC  for the transferred service is based on
 data, assumptions, methods, and plan provisions appropriate for the  NYC
 PPF.
   The  transferred  assets  are based on the AAL in the MTA PRP which is
 determined based on data,  assumptions,  methods,  and  plan  provisions
 appropriate for the MTA PRP (not the NYC PPF).
   The  gain  or  loss to the NYC PPF depends on differences in liability
 measurements between the MTA PRP and the NYC PPF, and on future  invest-
 ment  experience  associated  with  the  transferred assets. Examples of
 factors contributing  to  potential  gains  and/or  losses  include  the
 following:
   * Differences in data.
   * Differences in valuation assumptions.
   * Differences in plan provisions.
   * Future investment returns for the transferred assets.
   ASSUMPTIONS AND METHODS: The analysis presented herein is based on the
 Revised  2021  Actuarial Assumptions and Methods of the impacted retire-
 ment system.
   RISK AND UNCERTAINTY: The  analysis  presented  in  this  Fiscal  Note
 depends  highly  on the actuarial assumptions, methods, and models used,
 demographics of the impacted  population,  and  other  factors  such  as
 investment, 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.
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   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  2025-74  dated  May  29,
 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.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  allow  any  police  officer who was employed by the
 Metropolitan Transportation Authority (MTA) and covered by a twenty-year
 police plan within the MTA defined benefit pension plan to transfer such
 membership to the New York State and Local Police  and  Fire  Retirement
 System  (NYSLPFRS). Upon such transfer, the reserves from the MTA police
 retirement program will be transferred to NYSLPFRS. Such police  officer
 must be an active member of NYSLPFRS.
   The  option  to transfer service credit from the MTA police retirement
 program to NYSLPFRS was already granted by Chapter 533 of  the  Laws  of
 2015.
   Insofar  as  this  bill  affects  NYSLPFRS, if enacted during the 2025
 Legislative Session, we anticipate that there will be  no  cost  to  the
 State of New York and the local participating employers in NYSLPFRS.
   Summary of relevant resources:
   Membership  data as of March 31, 2024 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2024 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2024  Report  of the Actuary and the 2024 Annual Comprehensive Financial
 Report.  The actuarial assumptions and methods used are described in the
 2024 Annual Report to the Comptroller on Actuarial Assumptions, and  the
 Codes,  Rules  and  Regulations  of  the  State  of  New York: Audit and
 Control. The Market Assets and GASB Disclosures are found in  the  March
 31, 2024 New York State and Local Retirement System Financial Statements
 and Supplementary Information.
   This  fiscal note does not constitute a legal opinion on the viability
 of the proposed change nor is it intended to serve as a  substitute  for
 the professional judgment of an attorney.
   This  estimate,  dated  June 3, 2025, and intended for use only during
 the 2025 Legislative Session, is Fiscal  Note  No.  2025-185.  As  Chief
 Actuary  of  the  New  York  State and Local Retirement System, I, Aaron
 Schottin Young, hereby certify that this analysis complies with applica-
 ble Actuarial Standards of Practice as well as the Code of  Professional
 Conduct  and Qualification Standards for Actuaries Issuing Statements of
 Actuarial Opinion of the American Academy of Actuaries, of which I am  a
 member.