Bill Text: NY A07249 | 2019-2020 | General Assembly | Amended
Bill Title: Relates to member contribution per centum increases.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-04-08 - print number 7249a [A07249 Detail]
Download: New_York-2019-A07249-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7249--A 2019-2020 Regular Sessions IN ASSEMBLY April 18, 2019 ___________ Introduced by M. of A. ABBATE -- read once and referred to the Committee on Governmental Employees -- recommitted to the Committee on Govern- mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee AN ACT to amend the retirement and social security law and the education law, in relation to member contribution per centum increases The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs 1, 2, 3, 4 and 5 of subdivision a of section 517 2 of the retirement and social security law, as added by chapter 18 of the 3 laws of 2012, are amended to read as follows: 4 1. members with wages of forty-five thousand dollars per annum or less 5 shall contribute three per centum of annual wages. On April one, two 6 thousand twenty-one, and every year thereafter, the wages in this 7 subparagraph shall be increased by three per centum; 8 2. members with wages greater than forty-five thousand per annum, but 9 not more than fifty-five thousand per annum shall contribute three and 10 one-half per centum of annual wages. On April one, two thousand twenty- 11 one, and every year thereafter, the wages in this subparagraph shall be 12 increased by three per centum; 13 3. members with wages greater than fifty-five thousand per annum, but 14 not more than seventy-five thousand per annum shall contribute four and 15 one-half per centum of annual wages. On April one, two thousand twenty- 16 one, and every year thereafter, the wages in this subparagraph shall be 17 increased by three per centum; 18 4. members with wages greater than seventy-five thousand per annum but 19 not more than one hundred thousand per annum shall contribute five and 20 three-quarters per centum of annual wages. On April one, two thousand 21 twenty-one, and every year thereafter, the wages in this subparagraph 22 shall be increased by three per centum; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11081-05-0A. 7249--A 2 1 5. members with wages greater than one hundred thousand per annum 2 shall contribute six per centum of annual wages. On April one, two thou- 3 sand twenty-one, and every year thereafter, the wages in this subpara- 4 graph shall be increased by three per centum. 5 § 2. Subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph 1 of 6 subdivision a, subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph 7 2 of subdivision a, paragraphs 1, 2, 3, 4 and 5 of subdivision f and 8 paragraphs 1, 2, 3, 4 and 5 of subdivision g of section 613 of the 9 retirement and social security law, subparagraphs (i), (ii), (iii), (iv) 10 and (v) of paragraph 1 and subparagraphs (i), (ii), (iii), (iv) and (v) 11 of paragraph 2 of subdivision a as amended by chapter 510 of the laws of 12 2015 and paragraphs 1, 2, 3, 4 and 5 of subdivision f and paragraphs 1, 13 2, 3, 4 and 5 of subdivision g as added by chapter 18 of the laws of 14 2012, are amended to read as follows: 15 (i) members with wages of forty-five thousand dollars per annum or 16 less shall contribute three per centum of annual wages. On April one, 17 two thousand twenty-one, and every year thereafter, the wages in this 18 subparagraph shall be increased by three per centum; 19 (ii) members with wages greater than forty-five thousand per annum, 20 but not more than fifty-five thousand per annum shall contribute three 21 and one-half per centum of annual wages. On April one, two thousand 22 twenty-one, and every year thereafter, the wages in this subparagraph 23 shall be increased by three per centum; 24 (iii) members with wages greater than fifty-five thousand per annum, 25 but not more than seventy-five thousand per annum shall contribute four 26 and one-half per centum of annual wages. On April one, two thousand 27 twenty-one, and every year thereafter, the wages in this subparagraph 28 shall be increased by three per centum; 29 (iv) members with wages greater than seventy-five thousand per annum 30 but not more than one hundred thousand per annum shall contribute five 31 and three-quarters per centum of annual wages. On April one, two thou- 32 sand twenty-one, and every year thereafter, the wages in this subpara- 33 graph shall be increased by three per centum; and 34 (v) members with wages greater than one hundred thousand per annum 35 shall contribute six per centum of annual wages. On April one, two thou- 36 sand twenty-one, and every year thereafter, the wages in this subpara- 37 graph shall be increased by three per centum. 38 (i) members with wages of forty-five thousand dollars per annum or 39 less shall contribute three per centum of annual wages. On April one, 40 two thousand twenty-one, and every year thereafter, the wages in this 41 subparagraph shall be increased by three per centum; 42 (ii) members with wages greater than forty-five thousand per annum, 43 but not more than fifty-five thousand per annum shall contribute three 44 and one-half per centum of annual wages. On April one, two thousand 45 twenty-one, and every year thereafter, the wages in this subparagraph 46 shall be increased by three per centum; 47 (iii) members with wages greater than fifty-five thousand per annum, 48 but not more than seventy-five thousand per annum shall contribute four 49 and one-half per centum of annual wages. On April one, two thousand 50 twenty-one, and every year thereafter, the wages in this subparagraph 51 shall be increased by three per centum; 52 (iv) members with wages greater than seventy-five thousand per annum 53 but not more than one hundred thousand per annum shall contribute five 54 and three-quarters per centum of annual wages. On April one, two thou- 55 sand twenty-one, and every year thereafter, the wages in this subpara- 56 graph shall be increased by three per centum; andA. 7249--A 3 1 (v) members with wages greater than one hundred thousand per annum 2 shall contribute six per centum of annual wages. On April one, two thou- 3 sand twenty-one, and every year thereafter, the wages in this subpara- 4 graph shall be increased by three per centum. 5 1. members with wages of forty-five thousand dollars per annum or less 6 shall contribute three per centum of annual wages. On April one, two 7 thousand twenty-one, and every year thereafter, the wages in this 8 subparagraph shall be increased by three per centum; 9 2. members with wages greater than forty-five thousand per annum, but 10 not more than fifty-five thousand per annum shall contribute three and 11 one-half per centum of annual wages. On April one, two thousand twenty- 12 one, and every year thereafter, the wages in this subparagraph shall be 13 increased by three per centum; 14 3. members with wages greater than fifty-five thousand per annum, but 15 not more than seventy-five thousand per annum shall contribute four and 16 one-half per centum of annual wages. On April one, two thousand twenty- 17 one, and every year thereafter, the wages in this subparagraph shall be 18 increased by three per centum; 19 4. members with wages greater than seventy-five thousand per annum but 20 not more than one hundred thousand per annum shall contribute five and 21 three-quarters per centum of annual wages. On April one, two thousand 22 twenty-one, and every year thereafter, the wages in this subparagraph 23 shall be increased by three per centum; and 24 5. members with wages greater than one hundred thousand per annum 25 shall contribute six per centum of annual wages. On April one, two thou- 26 sand twenty-one, and every year thereafter, the wages in this subpara- 27 graph shall be increased by three per centum. 28 1. members with wages of forty-five thousand dollars per annum or less 29 shall contribute three per centum of annual wages. On July one, two 30 thousand twenty-one, and every year thereafter, the wages in this 31 subparagraph shall be increased by three per centum; 32 2. members with wages greater than forty-five thousand per annum, but 33 not more than fifty-five thousand per annum shall contribute three and 34 one-half per centum of annual wages. On July one, two thousand twenty- 35 one, and every year thereafter, the wages in this subparagraph shall be 36 increased by three per centum; 37 3. members with wages greater than fifty-five thousand per annum, but 38 not more than seventy-five thousand per annum shall contribute four and 39 one-half per centum of annual wages. On July one, two thousand twenty- 40 one, and every year thereafter, the wages in this subparagraph shall be 41 increased by three per centum; 42 4. members with wages greater than seventy-five thousand per annum but 43 not more than one hundred thousand per annum shall contribute five and 44 three-quarters per centum of annual wages. On July one, two thousand 45 twenty-one, and every year thereafter, the wages in this subparagraph 46 shall be increased by three per centum; and 47 5. members with wages greater than one hundred thousand per annum 48 shall contribute six per centum of annual wages. On July one, two thou- 49 sand twenty-one, and every year thereafter, the wages in this subpara- 50 graph shall be increased by three per centum. 51 § 3. Subdivisions a, b, c, d and e of section 1204 of the retirement 52 and social security law, as added by chapter 18 of the laws of 2012, are 53 amended to read as follows: 54 a. members with wages of forty-five thousand dollars per annum or less 55 shall contribute three per centum of annual wages. On April one, twoA. 7249--A 4 1 thousand twenty-one, and every year thereafter, the wages in this subdi- 2 vision shall be increased by three per centum; 3 b. members with wages greater than forty-five thousand per annum, but 4 not more than fifty-five thousand per annum shall contribute three and 5 one-half per centum of annual wages. On April one, two thousand twenty- 6 one, and every year thereafter, the wages in this subdivision shall be 7 increased by three per centum; 8 c. members with wages greater than fifty-five thousand per annum, but 9 not more than seventy-five thousand per annum shall contribute four and 10 one-half per centum of annual wages. On April one, two thousand twenty- 11 one, and every year thereafter, the wages in this subdivision shall be 12 increased by three per centum; 13 d. members with wages greater than seventy-five thousand per annum but 14 not more than one hundred thousand per annum shall contribute five and 15 three-quarters per centum of annual wages. On April one, two thousand 16 twenty-one, and every year thereafter, the wages in this subdivision 17 shall be increased by three per centum; and 18 e. members with wages greater than one hundred thousand per annum 19 shall contribute six per centum of annual wages. On April one, two thou- 20 sand twenty-one, and every year thereafter, the wages in this subdivi- 21 sion shall be increased by three per centum. 22 § 4. Paragraphs (a), (b), (c), (d) and (e) of subdivision 2 of section 23 182 of the education law, as added by chapter 18 of the laws of 2012, 24 are amended to read as follows: 25 (a) members with wages of forty-five thousand dollars per annum or 26 less shall contribute three per centum of annual wages. On April one, 27 two thousand twenty-one, and every year thereafter, the wages in this 28 paragraph shall be increased by three per centum; 29 (b) members with wages greater than forty-five thousand per annum, but 30 not more than fifty-five thousand per annum shall contribute three and 31 one-half per centum of annual wages. On April one, two thousand twenty- 32 one, and every year thereafter, the wages in this paragraph shall be 33 increased by three per centum; 34 (c) members with wages greater than fifty-five thousand per annum, but 35 not more than seventy-five thousand per annum shall contribute four and 36 one-half per centum of annual wages. On April one, two thousand twenty- 37 one, and every year thereafter, the wages in this paragraph shall be 38 increased by three per centum; 39 (d) members with wages greater than seventy-five thousand per annum 40 but not more than one hundred thousand per annum shall contribute five 41 and three-quarters per centum of annual wages. On April one, two thou- 42 sand twenty-one, and every year thereafter, the wages in this paragraph 43 shall be increased by three per centum; and 44 (e) members with wages greater than one hundred thousand per annum 45 shall contribute six per centum of annual wages. On April one, two thou- 46 sand twenty-one, and every year thereafter, the wages in this paragraph 47 shall be increased by three per centum. 48 § 5. Subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph (d) of 49 subdivision 2 of section 392 of the education law, as added by chapter 50 18 of the laws of 2012, are amended to read as follows: 51 (i) members with wages of forty-five thousand dollars per annum or 52 less shall contribute three per centum of annual wages. On July one, two 53 thousand twenty-one, and every year thereafter, the wages in this 54 subparagraph shall be increased by three per centum; 55 (ii) members with wages greater than forty-five thousand per annum, 56 but not more than fifty-five thousand per annum shall contribute threeA. 7249--A 5 1 and one-half per centum of annual wages. On July one, two thousand twen- 2 ty-one, and every year thereafter, the wages in this subparagraph shall 3 be increased by three per centum; 4 (iii) members with wages greater than fifty-five thousand per annum, 5 but not more than seventy-five thousand per annum shall contribute four 6 and one-half per centum of annual wages. On July one, two thousand twen- 7 ty-one, and every year thereafter, the wages in this subparagraph shall 8 be increased by three per centum; 9 (iv) members with wages greater than seventy-five thousand per annum 10 but not more than one hundred thousand per annum shall contribute five 11 and three-quarters per centum of annual wages. On July one, two thousand 12 twenty-one, and every year thereafter, the wages in this subparagraph 13 shall be increased by three per centum; and 14 (v) members with wages greater than one hundred thousand per annum 15 shall contribute six per centum of annual wages. On July one, two thou- 16 sand twenty-one, and every year thereafter, the wages in this subpara- 17 graph shall be increased by three per centum. 18 § 6. Subparagraphs 1, 2, 3, 4 and 5 of paragraph (d) of subdivision 2 19 of section 6252 of the education law, as added by chapter 18 of the laws 20 of 2012, are amended to read as follows: 21 (1) members with wages of forty-five thousand dollars per annum or 22 less shall contribute three per centum of annual wages. On July one, two 23 thousand twenty-one, and every year thereafter, the wages in this 24 subparagraph shall be increased by three per centum; 25 (2) members with wages greater than forty-five thousand per annum, but 26 not more than fifty-five thousand per annum shall contribute three and 27 one-half per centum of annual wages. On July one, two thousand twenty- 28 one, and every year thereafter, the wages in this subparagraph shall be 29 increased by three per centum; 30 (3) members with wages greater than fifty-five thousand per annum, but 31 not more than seventy-five thousand per annum shall contribute four and 32 one-half per centum of annual wages. On July one, two thousand twenty- 33 one, and every year thereafter, the wages in this paragraph shall be 34 increased by three per centum; 35 (4) members with wages greater than seventy-five thousand per annum 36 but not more than one hundred thousand per annum shall contribute five 37 and three-quarters per centum of annual wages. On July one, two thousand 38 twenty-one, and every year thereafter, the wages in this paragraph shall 39 be increased by three per centum; and 40 (5) members with wages greater than one hundred thousand per annum 41 shall contribute six per centum of annual wages. On July one, two thou- 42 sand twenty-one, and every year thereafter, the wages in this paragraph 43 shall be increased by three per centum. 44 § 7. Notwithstanding any other provision of law to the contrary, none 45 of the provisions of this act shall be subject to section 25 of the 46 retirement and social security law. 47 § 8. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill would increase the wage ranges to which the 3%, 3.5%, 4.5%, 5.75% and 6% contribution rates are applied for tier 6 members beginning on April 1, 2021 and every year thereafter by 3%. The current contribution rates and wage ranges are: 3% for wages of $45,000 or less 3.5% for wages greater than $45,000 and less than or equal to $55,000 4.5% for wages greater than $55,000 and less than or equal to $75,000A. 7249--A 6 5.75% for wages greater than $75,000 and less than or equal to $100,000 6.0% for wages greater than $100,000 Insofar as this bill affects the New York State and Local Employees' Retirement System (NYSLERS), if this legislation is enacted during the 2020 legislative session, there will be an increase in the present value of future costs of approximately $384 million which would be shared by the State of New York and all of the participating employers in the NYSLERS. The estimated first year cost would be approximately $18.9 million to the State of New York and approximately $27.3 million to the participating employers in the NYSLERS. Insofar as this bill affects the New York State and Local Police and Fire Retirement System (NYSLPFRS), if this legislation is enacted during the 2020 legislative session, there will be an increase in the present value of future costs of approximately $8.9 million which would be shared by the State of New York and all of the participating employers in the NYSLPFRS. The estimated first year cost would be approximately $193,000 to the State of New York and approximately $790,000 to the participating employers in the NYSLPFRS. Summary of relevant resources: The membership data used in measuring the impact of the proposed change was the same as that used in the March 31, 2019 actuarial valu- ation. Distributions and other statistics can be found in the 2019 Report of the Actuary and the 2019 Comprehensive Annual Financial Report. The actuarial assumptions and methods used are described in the 2015, 2016, 2017, 2018 and 2019 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, 2019 New York State and Local Retirement System Financial Statements and Supplementary Information. I am a member of the American Academy of Actuaries and meet the Quali- fication Standards to render the actuarial opinion contained herein. 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 March 24, 2020, and intended for use only during the 2020 Legislative Session, is Fiscal Note No. 2020-88, prepared by the Actuary for the New York State and Local Retirement System.
