Bill Text: NY A07306 | 2019-2020 | General Assembly | Amended
Bill Title: Establishes a twenty-five year retirement program for members of the NYC employees' retirement system employed as water supply police; provides for employer pick-up of certain additional member contributions required to be made by certain participants in the 25-year retirement programs.
Spectrum: Slight Partisan Bill (Democrat 17-9)
Status: (Introduced - Dead) 2020-04-15 - print number 7306a [A07306 Detail]
Download: New_York-2019-A07306-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7306--A 2019-2020 Regular Sessions IN ASSEMBLY April 22, 2019 ___________ Introduced by M. of A. CUSICK, ORTIZ, PHEFFER AMATO, CROUCH, BYRNE, D'URSO, GIGLIO, GRIFFIN, TAYLOR, PICHARDO, CRUZ, DAVILA, REILLY, DeSTEFANO, MORINELLO, RA -- Multi-Sponsored by -- M. of A. COOK, McDO- NOUGH, SIMON -- read once and referred to the Committee on Govern- mental Employees -- recommitted to the Committee on Governmental Employees in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the retirement and social security law and the adminis- trative code of the city of New York, in relation to the establishment of twenty-five year retirement programs for members of the New York city employees' retirement system employed as water supply police; and in relation to providing for employer pick up, pursuant to provisions of the internal revenue code, of certain additional member contrib- utions required to be made by certain participants in the twenty-five year retirement programs; and providing for the repeal of certain provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision b of section 440 of the retirement and social 2 security law, as amended by chapter 682 of the laws of 2003, is amended 3 to read as follows: 4 b. The provisions of this article shall not be construed to extend 5 coverage to an employee not otherwise eligible for membership in a 6 retirement system or to provide an increase in benefits to a member of a 7 retirement system other than as provided by section four hundred forty- 8 five-d, or section four hundred forty-five-f, [or] section four hundred 9 forty-five-h, section four hundred forty-five-j, or section four hundred 10 forty-eight of this article. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00385-05-0A. 7306--A 2 1 § 2. Subdivision a of section 444 of the retirement and social securi- 2 ty law, as amended by section 141 of subpart B of part C of chapter 62 3 of the laws of 2011, is amended to read as follows: 4 a. Except as provided in subdivision c of section four hundred forty- 5 five-a of this article, subdivision c of section four hundred forty- 6 five-b of this article, subdivision c of section four hundred forty- 7 five-c of this article, subdivision c of section four hundred 8 forty-five-d of this article as added by chapter four hundred seventy- 9 two of the laws of nineteen hundred ninety-five, subdivision c of 10 section four hundred forty-five-e of this article, subdivision c of 11 section four hundred forty-five-f of this article and subdivision c of 12 section four hundred forty-five-h of this article, and subdivision c of 13 section four hundred forty-five-j of this article, the maximum retire- 14 ment benefit computed without optional modification provided to a member 15 of a retirement system who is subject to the provisions of this article, 16 other than a police officer, a firefighter, an investigator member of 17 the New York city employees' retirement system, a member of the 18 uniformed personnel in institutions under the jurisdiction of the New 19 York city department of correction who receives a performance of duty 20 disability retirement allowance, a member of the uniformed personnel in 21 institutions under the jurisdiction of the department of corrections and 22 community supervision or a security hospital treatment assistant, as 23 those terms are defined in subdivision i of section eighty-nine of this 24 chapter, who receives a performance of duty disability retirement allow- 25 ance, a member of a teachers' retirement system, New York city employ- 26 ees' retirement system, New York city board of education retirement 27 system or a member of the New York state and local employees' retirement 28 system or a member of the New York city employees' retirement system or 29 New York city board of education retirement system employed as a special 30 officer, parking control specialist, school safety agent, campus peace 31 officer, taxi and limousine inspector [or], a police communications 32 member, or a member of the water supply police and who receives a 33 performance of duty disability pension, from funds other than those 34 based on a member's own or increased-take-home-pay contributions, shall, 35 before any reduction for early retirement, be sixty per centum of the 36 first fifteen thousand three hundred dollars of final average salary, 37 and fifty per centum of final average salary in excess of fifteen thou- 38 sand three hundred dollars, and forty per centum of final average salary 39 in excess of twenty-seven thousand three hundred dollars, provided, 40 however, that the benefits provided by subdivision c of section four 41 hundred forty-five-d of this article as added by chapter four hundred 42 seventy-two of the laws of nineteen hundred ninety-five based upon the 43 additional member contributions required by subdivision d of such 44 section four hundred forty-five-d shall be subject to the maximum 45 retirement benefit computations set forth in this section. The maximum 46 retirement benefit computed without optional modification payable to a 47 police officer, an investigator member of the New York city employees' 48 retirement system or a firefighter shall equal that payable upon 49 completion of thirty years of service, except that the maximum service 50 retirement benefit computed without optional modification shall equal 51 that payable upon completion of thirty-two years of service. 52 § 3. Subdivision a of section 445 of the retirement and social securi- 53 ty law, as amended by chapter 476 of the laws of 2018, is amended to 54 read as follows: 55 a. No member of a retirement system who is subject to the provisions 56 of this article shall retire without regard to age, exclusive of retire-A. 7306--A 3 1 ment for disability, unless he or she is a police officer, an investi- 2 gator member of the New York city employees' retirement system, fire- 3 fighter, correction officer, a qualifying member as defined in section 4 eighty-nine-t of this chapter, as added by chapter six hundred fifty- 5 seven of the laws of nineteen hundred ninety-eight, [of this chapter,] 6 sanitation worker, a special officer (including persons employed by the 7 city of New York in the title urban park ranger or associate urban park 8 ranger), school safety agent, campus peace officer or a taxi and limou- 9 sine commission inspector member of the New York city employees' retire- 10 ment system or the New York city board of education retirement system, a 11 dispatcher member of the New York city employees' retirement system, a 12 police communications member of the New York city employees' retirement 13 system, a member of the water supply police in a position referred to in 14 paragraph (o) of subdivision thirty-four of section 1.20 of the criminal 15 procedure law, an EMT member of the New York city employees' retirement 16 system, a deputy sheriff member of the New York city employees' retire- 17 ment system, a correction officer of the Westchester county correction 18 department as defined in section eighty-nine-e of this chapter or 19 employed in Suffolk county as a peace officer, as defined in section 20 eighty-nine-s of this chapter, as added by chapter five hundred eighty- 21 eight of the laws of nineteen hundred ninety-seven, [of this chapter,] 22 employed in Suffolk county as a correction officer, as defined in 23 section eighty-nine-f of this chapter, or employed in Nassau county as a 24 correction officer, uniformed correction division personnel, sheriff, 25 undersheriff or deputy sheriff, as defined in section eighty-nine-g of 26 this chapter, or employed in Nassau county as an ambulance medical tech- 27 nician, an ambulance medical technician/supervisor or a member who 28 performs ambulance medical technician related services, as defined in 29 section eighty-nine-s of this chapter, as amended by chapter five 30 hundred seventy-eight of the laws of nineteen hundred ninety-eight, [of31this chapter,] or employed in Nassau county as a peace officer, as 32 defined in section eighty-nine-s of this chapter, as added by chapter 33 five hundred ninety-five of the laws of nineteen hundred ninety-seven, 34 [of this chapter,] or employed in Albany county as a sheriff, undersher- 35 iff, deputy sheriff, correction officer or identification officer, as 36 defined in section eighty-nine-h of this chapter or is employed in St. 37 Lawrence county as a sheriff, undersheriff, deputy sheriff or correction 38 officer, as defined in section eighty-nine-i of this chapter or is 39 employed in Orleans county as a sheriff, undersheriff, deputy sheriff or 40 correction officer, as defined in section eighty-nine-l of this chapter 41 or is employed in Jefferson county as a sheriff, undersheriff, deputy 42 sheriff or correction officer, as defined in section eighty-nine-j of 43 this chapter or is employed in Onondaga county as a deputy sheriff-jail 44 division competitively appointed or as a correction officer, as defined 45 in section eighty-nine-k of this chapter or is employed in a county 46 which makes an election under subdivision j of section eighty-nine-p of 47 this chapter as a sheriff, undersheriff, deputy sheriff or correction 48 officer as defined in such section eighty-nine-p or is employed in 49 Broome County as a sheriff, undersheriff, deputy sheriff or correction 50 officer, as defined in section eighty-nine-m of this chapter or is a 51 Monroe county deputy sheriff-court security, or deputy sheriff-jailor as 52 defined in section eighty-nine-n of this chapter, as added by chapter 53 five hundred ninety-seven of the laws of nineteen hundred ninety-one, 54 [of this chapter] or is employed in Greene county as a sheriff, under- 55 sheriff, deputy sheriff or correction officer, as defined in section 56 eighty-nine-o of this chapter or is a traffic officer with the town ofA. 7306--A 4 1 Elmira as defined in section eighty-nine-q of this chapter or is 2 employed by Suffolk county as a park police officer, as defined in 3 section eighty-nine-r of this chapter or is a peace officer employed by 4 a county probation department as defined in section eighty-nine-t of 5 this chapter, as added by chapter six hundred three of the laws of nine- 6 teen hundred ninety-eight, [of this chapter] or is employed in Rockland 7 county as a deputy sheriff-civil as defined in section eighty-nine-v of 8 this chapter as added by chapter four hundred forty-one of the laws of 9 two thousand one, or is employed in Rockland county as a superior 10 correction officer as defined in section eighty-nine-v of this chapter 11 as added by chapter five hundred fifty-six of the laws of two thousand 12 one or is a paramedic employed by the police department in the town of 13 Tonawanda and retires under the provisions of section eighty-nine-v of 14 this chapter, as added by chapter four hundred seventy-two of the laws 15 of two thousand one, or is a county fire marshal, supervising fire 16 marshal, fire marshal, assistant fire marshal, assistant chief fire 17 marshal or chief fire marshal employed by the county of Nassau as 18 defined in section eighty-nine-w of this chapter and is in a plan which 19 permits immediate retirement upon completion of a specified period of 20 service without regard to age. Except as provided in subdivision c of 21 section four hundred forty-five-a of this article, subdivision c of 22 section four hundred forty-five-b of this article, subdivision c of 23 section four hundred forty-five-c of this article, subdivision c of 24 section four hundred forty-five-d of this article, subdivision c of 25 section four hundred forty-five-e of this article, subdivision c of 26 section four hundred forty-five-f of this article [and], subdivision c 27 of section four hundred forty-five-h of this article, and subdivision c 28 of section four hundred forty-five-j of this article, a member in such a 29 plan and such an occupation, other than a police officer or investigator 30 member of the New York city employees' retirement system or a firefight- 31 er, shall not be permitted to retire prior to the completion of twenty- 32 five years of credited service; provided, however, if such a member in 33 such an occupation is in a plan which permits retirement upon completion 34 of twenty years of service regardless of age, he or she may retire upon 35 completion of twenty years of credited service and prior to the 36 completion of twenty-five years of service, but in such event the bene- 37 fit provided from funds other than those based on such a member's own 38 contributions shall not exceed two per centum of final average salary 39 per each year of credited service. 40 § 4. The retirement and social security law is amended by adding a new 41 section 445-j to read as follows: 42 § 445-j. Optional twenty-five year improved benefit retirement program 43 for water supply police members. a. Definitions. The following words and 44 phrases as used in this section shall have the following meanings unless 45 a different meaning is plainly required by the context. 46 1. "Retirement system" shall mean the New York city employees' retire- 47 ment system. 48 2. "Water supply police member" shall mean a member of the retirement 49 system who is subject to the provisions of this article, who is employed 50 by the city of New York in a position referred to by paragraph (o) of 51 subdivision thirty-four of section 1.20 of the criminal procedure law. 52 3. "Twenty-five year improved benefit retirement program" shall mean 53 all the terms and conditions of this section. 54 4. "Starting date of the twenty-five year improved benefit retirement 55 program" shall mean the effective date of this section, as such date is 56 certified pursuant to section forty-one of the legislative law.A. 7306--A 5 1 5. "Participant in the twenty-five year improved benefit retirement 2 program" shall mean any water supply police member who, under the appli- 3 cable provisions of subdivision b of this section, is entitled to the 4 rights, benefits and privileges and is subject to the obligations of the 5 twenty-five year improved benefit retirement program, as applicable to 6 him or her. 7 6. "Administrative code" shall mean the administrative code of the 8 city of New York. 9 7. "Accumulated deductions" shall mean accumulated deductions as 10 defined in subdivision eleven of section 13-101 of the administrative 11 code. 12 8. "Optional retirement provisions" shall mean the right to retire and 13 receive a retirement allowance under this section upon the completion of 14 twenty-five years of credited service. 15 b. Election of twenty-five year improved benefit retirement program. 16 1. Subject to the provisions of paragraphs five and six of this subdivi- 17 sion, any person who is a water supply police member on the starting 18 date of the twenty-five year improved benefit retirement program may 19 elect to become a participant in the twenty-five year improved benefit 20 retirement program by filing, within one hundred eighty days after such 21 starting date, a duly executed application for such participation with 22 the retirement system, provided he or she is such a water supply police 23 member on the date such application is filed. 24 2. Subject to the provisions of paragraphs five and six of this subdi- 25 vision, any person who becomes a water supply police member after the 26 starting date of the twenty-five year improved benefit retirement 27 program may elect to become a participant in the twenty-five year 28 improved benefit retirement program by filing, within one hundred eighty 29 days after becoming such a water supply police member, a duly executed 30 application for such participation with the retirement system, provided 31 he or she is such a water supply police member on the date such applica- 32 tion is filed. 33 3. Any election to be a participant in the twenty-five year improved 34 benefit retirement program shall be irrevocable. 35 4. Where any participant in the twenty-five year improved benefit 36 retirement program shall cease to hold a position as a water supply 37 police member, he or she shall cease to be such a participant and, 38 during any period in which such a person does not hold such a water 39 supply police position, he or she shall not be a participant in the 40 twenty-five year improved benefit retirement program and shall not be 41 eligible for the benefits of subdivision c of this section. 42 5. Where any participant in the twenty-five year improved benefit 43 retirement program terminates service as a water supply police member 44 and returns to such service as a water supply police member at a later 45 date, he or she shall again become such a participant on that date. 46 6. Notwithstanding any other provision of law to the contrary, any 47 person who is eligible to become a participant in the twenty-five year 48 improved benefit retirement program pursuant to paragraph one or two of 49 this subdivision for the full one hundred eighty day period provided for 50 in such applicable paragraph and who fails to timely file a duly 51 executed application for such participation with the retirement system, 52 shall not thereafter be eligible to become a participant in such 53 program. 54 c. Service retirement benefits. Notwithstanding any other provision of 55 law to the contrary, where a participant in the twenty-five year 56 improved benefit retirement program, who is otherwise qualified for aA. 7306--A 6 1 retirement allowance pursuant to the optional retirement provisions set 2 forth in subdivision a of this section, has made and/or paid, while he 3 or she is a water supply police member, all additional member contrib- 4 utions and interest (if any) required by subdivision d of this section, 5 then: 6 1. that participant, while he or she remains a participant, shall not 7 be subject to the provisions of subdivision a of section four hundred 8 forty-five of this article; and 9 2. if that participant, while such a participant, retires from 10 service, he or she shall not be subject to the provisions of section 11 four hundred forty-four of this article; and 12 3. his or her retirement allowance shall be an amount, on account of 13 the required minimum period of service, equal to the sum of (i) an annu- 14 ity which shall be the actuarial equivalent of the accumulated 15 deductions from his or her pay during such period, (ii) a pension for 16 increased-take-home-pay which shall be the actuarial equivalent of the 17 reserve for increased-take-home-pay to which he or she may be entitled 18 for such period, and (iii) a pension which, when added to such annuity 19 and such pension for increased-take-home-pay, produces a retirement 20 allowance equal to fifty percent of his or her final average salary, 21 plus an amount for each additional year of allowable service, or frac- 22 tion thereof, beyond such required minimum period of service equal to 23 two percent of his or her final average salary; and 24 4. the maximum retirement benefit computed without optional modifica- 25 tion payable to that participant upon his or her retirement for service 26 as such a participant shall equal that payable upon completion of thirty 27 years of service. 28 d. Additional member contributions. 1. In addition to the member 29 contributions required pursuant to section 13-125 or section 13-162 of 30 the administrative code, each participant in the twenty-five year 31 improved benefit retirement program shall contribute, subject to the 32 applicable provisions of section 13-125.2 of the administrative code, an 33 additional six percent of his or her compensation earned from (i) all 34 credited service, as a participant in the twenty-five year improved 35 benefit retirement program, rendered on and after the starting date of 36 the improved benefit retirement program, and (ii) all credited service 37 after such person ceases to be a participant, but before he or she again 38 becomes a participant pursuant to paragraph five of subdivision b of 39 this section. A participant in the twenty-five year improved benefit 40 retirement program shall contribute additional member contributions 41 until the later of (i) the date as of which he or she is eligible to 42 retire with twenty-five years of credited service under such retirement 43 program, or (ii) the first anniversary of the starting date of the twen- 44 ty-five year improved benefit retirement program. The additional 45 contributions required by this paragraph shall be in lieu of additional 46 member contributions required by subdivision d of section four hundred 47 forty-five-d of this article, as added by chapter ninety-six of the laws 48 of nineteen hundred ninety-five, and no member paying additional 49 contributions pursuant to this section shall be required to pay addi- 50 tional contributions pursuant to such subdivision d of section four 51 hundred forty-five-d of this article. 52 2. Commencing with the first full payroll period after each person 53 becomes a participant in the twenty-five year improved benefit retire- 54 ment program, additional member contributions at the rate specified in 55 paragraph one of this subdivision shall be deducted, subject to the 56 applicable provisions of section 13-125.2 of the administrative code,A. 7306--A 7 1 from the compensation of such participant on each and every payroll of 2 such participant for each and every payroll period for which he or she 3 is such a participant. 4 3. (i) Subject to the provisions of subparagraph (ii) of this para- 5 graph, where any additional member contributions required by paragraph 6 one of this subdivision are not paid by deductions from a participant's 7 compensation pursuant to paragraph two of this subdivision: 8 (A) that participant shall be charged with a contribution deficiency 9 consisting of such unpaid amounts, together with interest thereon, 10 compounded annually; and 11 (B) such interest on each amount of undeducted contributions shall 12 accrue from the end of the payroll period for which such amount would 13 have been deducted from compensation if he or she had been a participant 14 at the beginning of that payroll period and such deductions had been 15 required for such payroll period until such amount is paid to the 16 retirement system; and 17 (C) (1)interest on each such amount included in such participant's 18 contribution deficiency pursuant to this subparagraph shall be calcu- 19 lated as if such additional member contributions never had been paid by 20 such participant, and such interest shall accrue from the end of the 21 payroll period to which an amount of such additional member contrib- 22 utions is attributable, compounded annually, until such amount is paid 23 to the retirement system. 24 (2) the rate of interest to be applied to each such amount during the 25 period for which interest accrues on that amount shall be equal to the 26 rate or rates of interest required by law to be used during that same 27 period to credit interest on the accumulated deductions of retirement 28 system members. 29 (ii) Except as provided in subparagraph (iii) of this paragraph, no 30 interest shall be due on any unpaid additional contributions which are 31 not attributable to the period prior to the first full payroll period 32 referred to in paragraph two of this subdivision. 33 (iii) Should any person who, pursuant to paragraph seven of this 34 subdivision, has withdrawn any additional member contributions (and any 35 interest paid thereon) again become a participant in the twenty-five 36 year improved benefit retirement program pursuant to paragraph five of 37 subdivision b of this section, an appropriate amount shall be included 38 in such participant's contribution deficiency (including interest there- 39 on as calculated pursuant to subclause two of clause (C) of subparagraph 40 (i) of this paragraph) for any credited service with respect to which 41 such person received a refund of additional member contributions 42 (including any amount of an unpaid loan balance deemed to have been 43 returned to such person pursuant to paragraph seven of this subdivi- 44 sion), as if such additional member contributions never had been paid. 45 4. The board of trustees of the retirement system may, consistent with 46 the provisions of this subdivision, promulgate regulations for the 47 payment of the additional member contributions required by this subdivi- 48 sion, and any interest thereon, by a participant in the twenty-five year 49 improved benefit retirement program (including the deduction of such 50 contributions, and any interest thereon, from his or her compensation). 51 5. Where a participant who is otherwise eligible for service retire- 52 ment pursuant to subdivision c of this section did not, prior to the 53 effective date of retirement, pay the entire amount of a contribution 54 deficiency chargeable to him or her pursuant to paragraph three of this 55 subdivision, or repay the entire amount of a loan of his or her addi- 56 tional member contributions pursuant to paragraph eight of this subdivi-A. 7306--A 8 1 sion (including accrued interest on such loan), that participant, never- 2 theless, shall be eligible to retire pursuant to subdivision c of this 3 section, provided, however, that where such participant is not entitled 4 to a refund of additional member contributions pursuant to paragraph 5 seven of this subdivision, such participant's service retirement benefit 6 calculated pursuant to the applicable provisions of subdivision c of 7 this section shall be reduced by a life annuity (calculated in accord- 8 ance with the method set forth in subdivision i of section six hundred 9 thirteen-b of this chapter) which is actuarially equivalent to: 10 (i) the amount of any unpaid contribution deficiency chargeable to 11 such member pursuant to paragraph three of this subdivision; plus 12 (ii) the amount of any unpaid balance of a loan of his or her addi- 13 tional member contributions pursuant to paragraph eight of this subdivi- 14 sion (including accrued interest on such loan). 15 6. Subject to the provisions of paragraph five of this subdivision, 16 where a participant has not paid in full any contribution deficiency 17 chargeable to him or her pursuant to paragraph three of this subdivi- 18 sion, and a benefit, other than a refund of a member's accumulated 19 deductions or a refund of additional member contributions pursuant to 20 paragraph seven of this subdivision, becomes payable by the retirement 21 system to the participant or to his or her designated beneficiary or 22 estate, the actuarial equivalent of any such unpaid amount shall be 23 deducted from the benefit otherwise payable. 24 7. (i) All additional member contributions required by this subdivi- 25 sion (and any interest thereon) which are received by the retirement 26 system shall be paid into its contingent reserve fund and shall be the 27 property of the retirement system. Such additional member contributions 28 (and any interest thereon) shall not for any purpose be deemed to be 29 member contributions or accumulated deductions of a member of the 30 retirement system under section 13-125 or section 13-162 of the adminis- 31 trative code while he or she is a participant in the twenty-five year 32 improved benefit retirement program or otherwise. 33 (ii) Should a participant in the twenty-five year improved benefit 34 retirement program, who has rendered less than five years of credited 35 service cease to hold a position as a water supply police member for any 36 reason whatsoever, his or her accumulated additional member contrib- 37 utions made pursuant to this subdivision (together with any interest 38 thereon paid to the retirement system) which remain credited to such 39 participant's account may be withdrawn by him or her pursuant to proce- 40 dures promulgated in regulations of the board of trustees of the retire- 41 ment system, together with interest thereon at the rate of interest 42 required by law to be used to credit interest on the accumulated 43 deductions of retirement system members compounded annually. 44 (iii) Notwithstanding any other provision of law to the contrary, (A) 45 no person shall be permitted to withdraw from the retirement system any 46 additional member contributions paid pursuant to this subdivision or any 47 interest paid thereon, except pursuant to and in accordance with the 48 preceding subparagraphs of this paragraph; and (B) no person, while he 49 or she is a participant in the twenty-five year improved benefit retire- 50 ment program, shall be permitted to withdraw any such additional member 51 contributions or any interest paid thereon pursuant to any of the 52 preceding subparagraphs of this paragraph or otherwise. 53 8. A participant in the twenty-five year improved benefit retirement 54 program shall be permitted to borrow from his or her additional member 55 contributions, including any interest paid thereon, which are credited 56 to the additional contributions account established for such participantA. 7306--A 9 1 in the contingent reserve fund of the retirement system. The borrowing 2 from such additional member contributions pursuant to this paragraph 3 shall be governed by the same rights, privileges, obligations and proce- 4 dures set forth in section six hundred thirteen-b of this chapter which 5 govern the borrowing by members subject to article fifteen of this chap- 6 ter of member contributions made pursuant to section six hundred thir- 7 teen of this chapter. The board of trustees of the retirement system 8 may, consistent with the provisions of this subdivision and the 9 provisions of section six hundred thirteen-b of this chapter as made 10 applicable to this subdivision, promulgate regulations governing the 11 borrowing of such additional member contributions. 12 9. Wherever a person has an unpaid balance of a loan of his or her 13 additional member contributions pursuant to paragraph eight of this 14 subdivision at the time he or she becomes entitled to a refund of his or 15 her additional member contributions pursuant to subparagraph (ii) of 16 paragraph seven of this subdivision, the amount of such unpaid loan 17 balance (including accrued interest) shall be deemed to have been 18 returned to such member, and the refund of such additional contributions 19 shall be the net amount of such contributions, together with interest 20 thereon in accordance with the provisions of such subparagraph. 21 10. Notwithstanding any other provision of law to the contrary, the 22 provisions of section one hundred thirty-eight-b of this chapter shall 23 not be applicable to the additional member contributions which are 24 required by this subdivision. 25 11. Notwithstanding any other provision of law to the contrary, the 26 additional member contributions which are required by this subdivision 27 shall not be reduced under any program for increased-take-home-pay. 28 § 5. The retirement and social security law is amended by adding a new 29 section 604-j to read as follows: 30 § 604-j. Twenty-five year retirement program for water supply police 31 members. a. Definitions. The following words and phrases as used in 32 this section shall have the following meanings unless a different mean- 33 ing is plainly required by the context. 34 1. "Water supply police member" shall mean a member of the retirement 35 system who is employed by the city of New York in a position referred to 36 by paragraph (o) of subdivision thirty-four of section 1.20 of the crim- 37 inal procedure law. 38 2. "Twenty-five year retirement program" shall mean all the terms and 39 conditions of this section. 40 3. "Starting date of the twenty-five year retirement program" shall 41 mean the effective date of this section, as such date is certified 42 pursuant to section forty-one of the legislative law. 43 4. "Participant in the twenty-five year retirement program" shall mean 44 any water supply police member who, under the applicable provisions of 45 subdivision b of this section, is entitled to the rights, benefits and 46 privileges and is subject to the obligations of the twenty-five year 47 retirement program, as applicable to him or her. 48 5. "Discontinued member" shall mean a participant in the twenty-five 49 year retirement program who, while he or she was a water supply police 50 member, discontinued service as such a member and has a right to a 51 deferred vested benefit under subdivision d of this section. 52 6. "Administrative code" shall mean the administrative code of the 53 city of New York. 54 b. Participation in twenty-five year retirement program. 1. Subject 55 to the provisions of paragraphs six and seven of this subdivision, any 56 person who is a water supply police member on the starting date of theA. 7306--A 10 1 twenty-five year retirement program and who, as such a water supply 2 police member or otherwise last became subject to the provisions of this 3 article prior to such starting date, may elect to become a participant 4 in the twenty-five year retirement program by filing, within one hundred 5 eighty days after the starting date of the twenty-five year retirement 6 program, a duly executed application for such participation with the 7 retirement system of which such person is a member, provided he or she 8 is such a water supply police member on the date such application is 9 filed. 10 2. Subject to the provisions of paragraphs six and seven of this 11 subdivision, any person who becomes a water supply police member after 12 the starting date of the twenty-five year retirement program and who, as 13 such a water supply police member or otherwise, last became subject to 14 the provisions of this article prior to such starting date, may elect to 15 become a participant in the twenty-five year retirement program by 16 filing, within one hundred eighty days after becoming such a water 17 supply police member, a duly executed application for such participation 18 with the retirement system for which such person is a member, provided 19 he or she is such a water supply police member on the date such applica- 20 tion is filed. 21 3. Any election to be a participant in the twenty-five year retirement 22 program shall be irrevocable. 23 4. Each water supply police member who becomes subject to the 24 provisions of this article on or after the starting date of the twenty- 25 five year retirement program shall become a participant in the twenty- 26 five year retirement program on the date he or she becomes such a water 27 supply police member. Provided, however, a person subject to this para- 28 graph who has exceeded age thirty upon employment as such a member shall 29 be exempt from participation in the twenty-five year retirement program 30 if such person elects not to participate by filing a duly executed form 31 with the retirement system within one hundred eighty days of becoming 32 such a member. 33 5. Where any participant in the twenty-five year retirement program 34 shall cease to be employed by the city of New York as a water supply 35 police member, he or she shall cease to be such a participant and, 36 during any period in which such person is not so employed, he or she 37 shall not be a participant in the twenty-five year retirement program 38 and shall not be eligible for the benefits of subdivision c of this 39 section. 40 6. Where any participant in the twenty-five year retirement program 41 terminates service as a water supply police member and returns to such 42 service as a water supply police member at a later date, he or she shall 43 again become such a participant on that date. 44 7. Notwithstanding any other provision of law to the contrary, any 45 person who is eligible to elect to become a participant in the twenty- 46 five year retirement program pursuant to paragraph one or two of this 47 subdivision for the full one hundred eighty day period provided for in 48 such applicable paragraph and who fails to timely file a duly executed 49 application for such participation with the retirement system, shall not 50 thereafter be eligible to become a participant in such program. 51 c. Service retirement benefits. 1. A participant in the twenty-five 52 year retirement program: 53 (i) who has completed twenty-five or more years of credited service; 54 andA. 7306--A 11 1 (ii) who has paid, before the effective date of retirement, all addi- 2 tional member contributions and interest (if any) required by subdivi- 3 sion e of this section; and 4 (iii) who files with the retirement system of which he or she is a 5 member an application for service retirement setting forth at that time, 6 not less than thirty days subsequent to the execution and filing there- 7 of, he or she desires to be retired; and 8 (iv) who shall be a participant in the twenty-five year retirement 9 program at the time so specified for his or her retirement; shall be 10 retired pursuant to the provisions of this section affording early 11 service retirement. 12 2. (i) Notwithstanding any other provision of law to the contrary, and 13 subject to the provisions of paragraph six of subdivision e of this 14 section, the early service retirement benefit for participants in the 15 twenty-five year retirement program who retire pursuant to paragraph one 16 of this subdivision shall be a retirement allowance consisting of: 17 (A) an amount, on account of the required minimum period of service, 18 equal to fifty percent of his or her final average salary; plus 19 (B) an amount on account of credited service, or fraction thereof, 20 beyond such required minimum period of service equal to two percent of 21 his or her final salary; 22 (ii) The maximum retirement allowance computed without optional 23 modification payable pursuant to subparagraph (i) of this paragraph 24 shall equal that payable upon completion of thirty years of service. 25 d. Vesting. 1. A participant in the twenty-five year retirement 26 program: 27 (i) who discontinues service as such a participant, other than by 28 death or retirement; and 29 (ii) who prior to such discontinuance, completed five but less than 30 twenty-five years of credited service; and 31 (iii) who, subject to the provisions of paragraph seven of subdivision 32 e of this section, has paid, prior to such discontinuance, all addi- 33 tional member contributions and interest (if any) required by subdivi- 34 sion e of this section; and 35 (iv) who does not withdraw in whole or in part his or her accumulated 36 member contributions pursuant to section six hundred thirteen of this 37 article unless such participant thereafter returns to public service and 38 repays the amounts so withdrawn, together with interest, pursuant to 39 such section six hundred thirteen; shall be entitled to receive a 40 deferred vested benefit as provided in this subdivision. 41 2. (i) Upon such discontinuance under the conditions and in compliance 42 with the provisions of paragraph one of this subdivision, such deferred 43 vested benefit shall vest automatically. 44 (ii) Such vested benefit shall become payable on the earliest date on 45 which such discontinued member could have retired for service if such 46 discontinuance had not occurred. 47 3. Subject to the provisions of paragraph seven of subdivision e of 48 this section, such deferred vested benefit shall be a retirement allow- 49 ance consisting of an amount equal to two percent of such discontinued 50 member's final average salary, multiplied by the number of years of 51 credited service. 52 e. Additional member contributions. 1. In addition to the member 53 contributions required by section six hundred thirteen of this article, 54 each participant in the twenty-five year retirement program shall 55 contribute to the retirement system of which he or she is a member 56 (subject to the applicable provisions of subdivision d of section sixA. 7306--A 12 1 hundred thirteen of this article) an additional six percent of his or 2 her compensation earned from (i) all credited service, as a participant 3 in the twenty-five year retirement program, rendered on or after the 4 starting date of the twenty-five year retirement program, and (ii) all 5 credited service after such person ceases to be a participant, but 6 before he or she again becomes a participant pursuant to paragraph six 7 of subdivision b of this section. The additional contributions required 8 by this subdivision shall be in lieu of additional member contributions 9 required by subdivision d of section six hundred four-c of this article, 10 as added by chapter ninety-six of the laws of nineteen hundred ninety- 11 five, and no member making contributions pursuant to this section shall 12 be required to make contributions pursuant to such subdivision d of 13 section six hundred four-c of this article. 14 2. A participant in the twenty-five year retirement program shall 15 contribute additional member contributions until the later of (i) the 16 first anniversary of the starting date of the twenty-five year retire- 17 ment program, or (ii) the date on which he or she completes thirty years 18 of credited service as a water supply police member. 19 3. Commencing with the first full payroll period after each person 20 becomes a participant in the twenty-five year retirement program, addi- 21 tional member contributions at the rate specified in paragraph one of 22 this subdivision shall be deducted (subject to the applicable provisions 23 of subdivision d of section six hundred thirteen of this article) from 24 the compensation of such participant on each and every payroll of such 25 participant for each and every payroll period for which he or she is 26 such a participant. 27 4. (i) Each participant in the twenty-five year retirement program 28 shall be charged with a contribution deficiency consisting of the total 29 amounts of additional member contributions such person is required to 30 make pursuant to paragraphs one and two of this subdivision which are 31 not deducted from his or her compensation pursuant to paragraph three of 32 this subdivision, if any, together with interest thereon, compounded 33 annually, and computed in accordance with the provisions of subpara- 34 graphs (ii) and (iii) of this paragraph. 35 (ii) (A) The interest required to be paid on each such amount speci- 36 fied in subparagraph (i) of this paragraph shall accrue from the end of 37 the payroll period for which such amount would have been deducted from 38 compensation if he or she had been a participant at the beginning of 39 that payroll period and such deduction had been required for such 40 payroll period, until such amount is paid to the retirement system. 41 (B) The rate of interest to be applied to each such amount during the 42 period for which interest accrues on that amount shall be equal to the 43 rate or rates of interest required by law to be used during that same 44 period to credit interest on the accumulated deductions of retirement 45 system members. 46 (iii) Except as otherwise provided in paragraph five of this subdivi- 47 sion, no interest shall be due on any unpaid additional member contrib- 48 utions which are not attributable to a period prior to the first full 49 payroll period referred to in paragraph three of this subdivision. 50 5. (i) Should any person who, pursuant to subparagraph (ii) of para- 51 graph ten of this subdivision, has received a refund of his or her addi- 52 tional member contributions including any interest paid on such contrib- 53 utions, again become a participant in the twenty-five year retirement 54 program pursuant to paragraph six of subdivision b of this section, an 55 appropriate amount shall be included in such participant's contribution 56 deficiency (including interest thereon as calculated pursuant to subpar-A. 7306--A 13 1 agraph (ii) of this paragraph) for any credited service for which such 2 person received a refund of such additional member contributions 3 (including any amount of an unpaid loan balance deemed to have been 4 returned to such person pursuant to paragraph twelve of this subdivi- 5 sion), as if such additional member contributions never had been paid. 6 (ii) (A) Interest on a participant's additional member contributions 7 included in such participant's contribution deficiency pursuant to 8 subparagraph (i) of this paragraph shall be calculated as if such addi- 9 tional member contributions had never been paid by such participant, and 10 such interest shall accrue from the end of the payroll period to which 11 an amount of such additional member contributions is attributable, until 12 such amount is paid to the retirement system. 13 (B) The rate of interest to be applied to each such amount during the 14 period for which interest accrues on that amount shall be five percent 15 per annum, compounded annually. 16 6. Where a participant who is otherwise eligible for service retire- 17 ment pursuant to subdivision c of this section did not, prior to the 18 effective date of retirement, pay the entire amount of a contribution 19 deficiency chargeable to him or her pursuant to paragraphs four and five 20 of this subdivision, or repay the entire amount of a loan of his or her 21 additional member contributions pursuant to paragraph eleven of this 22 subdivision (including accrued interest on such loan), that participant, 23 nevertheless, shall be eligible to retire pursuant to subdivision c of 24 this section, provided, however, that such participant's service retire- 25 ment benefit calculated pursuant to paragraph two of such subdivision c 26 shall be reduced by a life annuity (calculated in accordance with the 27 method set forth in subdivision i of section six hundred thirteen-b of 28 this article) which is actuarially equivalent to: 29 (i) the amount of any unpaid contribution deficiency chargeable to 30 such member pursuant to paragraphs four and five of this subdivision; 31 plus 32 (ii) the amount of any unpaid balance of a loan of his or her addi- 33 tional member contributions pursuant to paragraph eleven of this subdi- 34 vision (including accrued interest on such loan). 35 7. Where a participant who is otherwise eligible for a vested right to 36 a deferred benefit pursuant to subdivision d of this section did not, 37 prior to the date of discontinuance of service, pay the entire amount of 38 a contribution deficiency chargeable to him or her pursuant to para- 39 graphs four and five of this subdivision, or repay the entire amount of 40 a loan of his or her additional member contributions pursuant to para- 41 graph eleven of this subdivision (including accrued interest on such 42 loan), that participant, nevertheless, shall be eligible for a vested 43 right to a deferred benefit pursuant to subdivision d of this section, 44 provided, however, that the deferred vested benefit calculated pursuant 45 to paragraph three of such subdivision d shall be reduced by a life 46 annuity (calculated in accordance with the method set forth in subdivi- 47 sion i of section six hundred thirteen-b of this article) which is actu- 48 arially equivalent to: 49 (i) the amount of any unpaid contribution deficiency chargeable to 50 such member pursuant to paragraphs four and five of this subdivision; 51 plus 52 (ii) the amount of any unpaid balance of a loan of his or her addi- 53 tional member contributions pursuant to paragraph eleven of this subdi- 54 vision (including accrued interest on such loan). 55 8. The head of a retirement system which includes participants in the 56 twenty-five year retirement program in its membership may, consistentA. 7306--A 14 1 with the provisions of this subdivision, promulgate regulations for the 2 payment of such additional member contributions, and any interest there- 3 on, by such participants (including the deduction of such contributions, 4 and any interest thereon, from the participant's compensation). 5 9. Subject to the provisions of paragraphs six and seven of this 6 subdivision, where a participant has not paid in full any contribution 7 deficiency chargeable to him or her pursuant to paragraphs four and five 8 of this subdivision, and a benefit, other than a refund of member 9 contributions pursuant to section six hundred thirteen of this article 10 or a refund of additional member contributions pursuant to subparagraph 11 (ii) of paragraph ten of this subdivision, becomes payable under this 12 article to the participant or to his or her designated beneficiary or 13 estate, the actuarial equivalent of any such unpaid amount shall be 14 deducted from the benefit otherwise payable. 15 10. (i) Such additional member contributions (and any interest there- 16 on) shall be paid into the contingent reserve fund of the retirement 17 system of which the participant is a member and shall not for any 18 purpose be deemed to be member contributions or accumulated contrib- 19 utions of a member under section six hundred thirteen of this article or 20 otherwise while he or she is a participant in the twenty-five year 21 retirement program or otherwise. 22 (ii) Should a participant in the twenty-five year retirement program 23 who has rendered less than five years of credited service cease to hold 24 a position as a water supply police member for any reason whatsoever, 25 his or her accumulated additional member contributions made pursuant to 26 this subdivision (together with any interest thereon paid to the retire- 27 ment system) may be withdrawn by him or her pursuant to procedures 28 promulgated in regulations of the board of trustees of the retirement 29 system, together with interest thereon at the rate of five percent per 30 annum, compounded annually. 31 (iii) Notwithstanding any other provision of law to the contrary, (A) 32 no person shall be permitted to withdraw from the retirement system any 33 additional member contributions paid pursuant to this subdivision or any 34 interest paid thereon, except pursuant to and in accordance with the 35 preceding subparagraphs of this paragraph; and (B) no person, while he 36 or she is a participant in the twenty-five year retirement program, 37 shall be permitted to withdraw any such additional member contributions 38 or any interest paid thereon pursuant to any of the preceding subpara- 39 graphs of this paragraph or otherwise. 40 11. A participant in the twenty-five year retirement program shall be 41 permitted to borrow from his or her additional member contributions 42 (including any interest paid thereon) which are credited to the addi- 43 tional contributions account established for such participant in the 44 contingent reserve fund of the retirement system. The borrowing from 45 such additional member contributions pursuant to this paragraph shall be 46 governed by the rights, privileges, obligations and procedures set forth 47 in section six hundred thirteen-b of this article which govern the 48 borrowing of member contributions made pursuant to section six hundred 49 thirteen of this article. The board of trustees of the retirement system 50 may, consistent with the provisions of this subdivision and the 51 provisions of section six hundred thirteen-b of this article as made 52 applicable to this subdivision, promulgate regulations governing the 53 borrowing of such additional member contributions. 54 12. Whenever a person has an unpaid balance of a loan of his or her 55 additional member contributions pursuant to paragraph eleven of this 56 subdivision at the time he or she becomes entitled to a refund of his orA. 7306--A 15 1 her additional member contributions pursuant to subparagraph (ii) of 2 paragraph ten of this subdivision, the amount of such unpaid loan 3 balance (including accrued interest) shall be deemed to have been 4 returned to such member, and the refund of such additional contributions 5 shall be the net amount of such contributions, together with interest 6 thereon in accordance with the provisions of such subparagraph (ii). 7 § 6. Subdivision d of section 613 of the retirement and social securi- 8 ty law is amended by adding a new paragraph 12 to read as follows: 9 12. (i) The city of New York shall, in the case of a water supply 10 police member (as defined in paragraph one of subdivision a of section 11 six hundred four-j of this article) who is a participant in the twenty- 12 five year retirement program (as defined in paragraph four of subdivi- 13 sion a of such section six hundred four-j), pick up and pay to the 14 retirement system of which such participant is a member, all additional 15 member contributions which otherwise would be required to be deducted 16 from such member's compensation pursuant to paragraphs one and two of 17 subdivision e of such section six hundred four-j (not including any 18 additional member contributions due for any period prior to the first 19 full payroll period referred to in paragraph three of such subdivision 20 e), and shall effect such pick up on each and every payroll of such 21 participant for each and every payroll period with respect to which such 22 paragraph three would otherwise require such deductions. 23 (ii) An amount equal to the amount of additional contributions picked 24 up pursuant to this paragraph shall be deducted by such employer from 25 the compensation of such member (as such compensation would be in the 26 absence of a pick up program applicable to him or her hereunder) and 27 shall not be paid to such member. 28 (iii) The additional member contributions picked up pursuant to this 29 paragraph for any such member shall be paid by such employer in lieu of 30 an equal amount of additional member contributions otherwise required to 31 be paid by such member under the applicable provisions of subdivision e 32 of section six hundred four-j of this article, and shall be deemed to be 33 and treated as employer contributions pursuant to section 414(h) of the 34 Internal Revenue Code. 35 (iv) For the purpose of determining the retirement system rights, 36 benefits and privileges of any member whose additional member contrib- 37 utions are picked up pursuant to this paragraph, such picked up addi- 38 tional member contributions shall be deemed to be and treated as part of 39 such member's additional member contributions under the applicable 40 provisions of subdivision e of section six hundred four-j of this arti- 41 cle. 42 (v) With the exception of federal income tax treatment, the additional 43 member contributions picked up pursuant to paragraph (i) of this subdi- 44 vision shall for all other purposes, including computation of retirement 45 benefits and contributions by employers and employees, be deemed employ- 46 ee salary. Nothing contained in this subdivision shall be construed as 47 superseding the provisions of section four hundred thirty-one of this 48 chapter, or any similar provision of law which limits the salary base of 49 computing retirement benefits payable by a public retirement system. 50 § 7. Section 13-125.2 of the administrative code of the city of New 51 York is amended by adding a new subdivision a-9 to read as follows: 52 a-9. Notwithstanding any other provision of law to the contrary, on or 53 after the starting date for pick up, the employer responsible for pick 54 up shall, in the case of a water supply police member (as defined in 55 paragraph two of subdivision a of section four hundred forty-five-j of 56 the retirement and social security law) who is a participant in theA. 7306--A 16 1 twenty-five year improved benefit retirement program (as defined in 2 paragraph three of such subdivision a of section four hundred forty- 3 five-j), pick up and pay to the retirement system all additional member 4 contributions which otherwise would be required to be deducted from such 5 member's compensation pursuant to subdivision d of such section four 6 hundred forty-five-j, and shall effect such pick up on each and every 7 payroll of such participant for each and every payroll period with 8 respect to which such subdivision d would otherwise require such 9 deductions. 10 § 8. Subparagraph (ii) of paragraph 1 of subdivision c of section 11 13-125.2 of the administrative code of the city of New York, as amended 12 by chapter 682 of the laws of 2003, is amended to read as follows: 13 (ii) the determination of the amount of such member's Tier I or Tier 14 II nonuniformed-force member contributions eligible for pick up by the 15 employer or additional member contributions required to be picked up 16 pursuant to subdivision a-one, subdivision a-two, subdivision a-three, 17 subdivision a-four, subdivision a-five, subdivision a-six, subdivision 18 a-seven [or], subdivision a-eight, or subdivision a-nine of this 19 section; and 20 § 9. Subdivision d of section 13-125.2 of the administrative code of 21 the city of New York is amended by adding a new paragraph 2-h to read as 22 follows: 23 (2-h) For the purpose of determining the retirement system rights, 24 benefits and privileges of any member who is a participant in the twen- 25 ty-five year improved benefit retirement program (as defined in para- 26 graph three of subdivision a of section four hundred forty-five-j of the 27 retirement and social security law), the additional member contributions 28 of such participant picked up pursuant to subdivision a-nine of this 29 section shall be deemed to be and treated as a part of such member's 30 additional member contributions under subdivision d of such section four 31 hundred forty-five-j. 32 § 10. Paragraph 3 of subdivision d of section 13-125.2 of the adminis- 33 trative code of the city of New York, as amended by chapter 682 of the 34 laws of 2003, is amended to read as follows: 35 (3) Interest on contributions picked up for any Tier I or Tier II 36 non-uniformed-force member pursuant to this section (other than addi- 37 tional member contributions picked up pursuant to subdivision a-one, 38 subdivision a-two, subdivision a-three, subdivision a-four, subdivision 39 a-five, subdivision a-six, subdivision a-seven [or], subdivision 40 a-eight, or subdivision a-nine of this section) shall accrue in favor of 41 the member and be payable to the retirement system at the same rate, for 42 the same time periods, in the same manner and under the same circum- 43 stances as interest would be required to accrue in favor of the member 44 and be payable to the retirement system on such contributions if they 45 were made by such member in the absence of a pick up program applicable 46 to such member under the provisions of this section. 47 § 11. Subdivision a of section 603 of the retirement and social secu- 48 rity law, as amended by chapter 18 of the laws of 2012, is amended to 49 read as follows: 50 a. The service retirement benefit specified in section six hundred 51 four of this article shall be payable to members who have met the mini- 52 mum service requirements upon retirement and attainment of age sixty- 53 two, other than members who are eligible for early service retirement 54 pursuant to subdivision c of section six hundred four-b of this article, 55 subdivision c of section six hundred four-c of this article, subdivision 56 d of section six hundred four-d of this article, subdivision c ofA. 7306--A 17 1 section six hundred four-e of this article, subdivision c of section six 2 hundred four-f of this article, subdivision c of section six hundred 3 four-g of this article, subdivision c of section six hundred four-h of 4 this article [or], subdivision c of section six hundred four-i of this 5 article, or subdivision c of section six hundred four-j of this article, 6 provided, however, a member of a teachers' retirement system or the New 7 York state and local employees' retirement system who first joins such 8 system before January first, two thousand ten or a member who is a 9 uniformed court officer or peace officer employed by the unified court 10 system who first becomes a member of the New York state and local 11 employees' retirement system before April first, two thousand twelve may 12 retire without reduction of his or her retirement benefit upon attain- 13 ment of at least fifty-five years of age and completion of thirty or 14 more years of service, provided, however, that a uniformed court officer 15 or peace officer employed by the unified court system who first becomes 16 a member of the New York state and local employees' retirement system on 17 or after January first, two thousand ten and retires without reduction 18 of his or her retirement benefit upon attainment of at least fifty-five 19 years of age and completion of thirty or more years of service pursuant 20 to this section shall be required to make the member contributions 21 required by subdivision f of section six hundred thirteen of this arti- 22 cle for all years of credited and creditable service, provided further 23 that the [the] preceding provisions of this subdivision shall not apply 24 to a New York city revised plan member. 25 § 12. Nothing contained in sections six and eleven of this act shall 26 be construed to create any contractual right with respect to members to 27 whom such sections apply. The provisions of such sections are intended 28 to afford members the advantages of certain benefits contained in the 29 Internal Revenue Code, and the effectiveness and existence of such 30 sections and benefits they confer are completely contingent thereon. 31 § 13. This act shall take effect immediately, provided, however that: 32 (a) The amendments to subdivision a of section 603 of the retirement 33 and social security law made by section eleven of this act shall not 34 affect the expiration of such subdivision as provided in subdivision (b) 35 of section 13 of chapter 682 of the laws of 2003, and shall expire ther- 36 ewith; 37 (b) The provisions of section six of this act shall remain in force 38 and effect only so long as, pursuant to federal law, contributions 39 picked up under section 613 of the retirement and social security law 40 are not includable as gross income of a member for federal income tax 41 purposes until distributed or made available to the member; and 42 (c) The amendments to provisions of section 13-125.2 of the adminis- 43 trative code of the city of New York made by sections seven, eight, nine 44 and ten of this act shall not affect the expiration of such provisions 45 as provided for in chapter 681 of the laws of 1992, as amended. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY OF BILL: This proposed legislation would amend certain provisions of the Retirement and Social Security Law (RSSL) and the Administrative Code of the City of New York (ACCNY), and add RSSL Sections 445-j and 604-j to establish a 25-Year Retirement Program for Tiers 2, 4, and 6 New York City Employees' Retirement System (NYCERS) members who are employed in the title of Water Supply Police (WSP 25-Year Plan). Effective Date: Upon enactment. MEMBERS ELIGIBLE TO JOIN: Those NYCERS members who are sworn officers of the water supply police employed by the City of New York (City),A. 7306--A 18 appointed to protect the sources, works, and transmission of water supplied to the City, and to protect persons on or in the vicinity of such water sources, works, and transmission pursuant to subdivision o of section 1.20 of the Criminal Procedure Law. For purposes of this Fiscal Note, these members are collectively referred to as "Water Supply Police Members." Participation in the WSP 25-Year Plan is optional for anyone who is eligible to participate in the Plan on the date of enactment by filing an election form within 180 days of enactment. Anyone who is a member of NYCERS (i.e. subject to Article 15) on the date of enactment and subse- quently becomes employed as a Water Supply Police Member also has 180 days upon becoming such a member to elect to join the WSP 25-Year Plan. Any new Water Supply Police Member who becomes a Tier 6 NYCERS member after the date of enactment is mandated into the Plan. However, if the member exceeds age 30 upon being mandated into the WSP 25-Year Plan, the member has the option to file an application to opt out of the Plan within 180 days of becoming a Water Supply Police Member. IMPACT ON BENEFITS: Currently, Water Supply Police Members generally participate in one of the NYCERS general plans (i.e. basic Tier 4 62/5 Plan, Tier 6 63/10 Plan, or Improved Tier 4 57/5, 55/25 Plans). There are currently no active Tier 2 Water Supply Police Members. Therefore, the following summary only applies to Tier 4 and Tier 6 Water Supply Police Members. The proposed legislation, if enacted, would provide the following benefits to Water Supply Police Members under the WSP 25-Year Plan: * Service retirement benefit: o 50% of Final Average Salary (FAS) for the first 25 years of Credited Service, plus o 2% of FAS for each additional year of Credited Service up to a maxi- mum of 30 years of such service. * Final Average Salary: o Tier 4 - Three-Year Average (FAS3) o Tier 6 - Five-Year Average (FAS5) * Vested benefit: o Eligibility is: - At least five, but less than 25, years of Credited Service for Tier 4 and Tier 6 members. o Payable at: - The date the member would have completed 25 years of Credited Service for Tier 4 and Tier 6 members. o Amount: - 2% of FAS for each year of Credited Service. * Other benefits: Members of the proposed WSP 25-Year Plan are enti- tled to the same disability and death benefits as other Tier 4 and Tier 6 members under the respective basic plans. ADDITIONAL MEMBER CONTRIBUTIONS: Members of the WSP 25-Year Plan are required to make, in addition to the Tier 4 Basic Member Contributions (BMC) of 3% and the Tier 6 BMC ranging from 3% to 6% depending on defined salary scales, Additional Member Contributions equal to 6% of compensation for all service as a Plan participant on and after the starting date of the Plan until the later of a maximum of 30 years of Credited Service or the one year anniversary of the enactment of the Plan. FINANCIAL IMPACT - PRESENT VALUES: Based on the anticipated group of members joining the WSP 25-Year Plan and the actuarial assumptions and methods described herein, the enactment of this proposed legislationA. 7306--A 19 would increase the Present Value of Future Benefits (PVFB) by approxi- mately $4.2 million, and increase the Present Value of member contrib- utions of approximately $2.2 million. The net result is an increase in the Present Value of future employer contributions of approximately $2.0 million. Under the Entry Age Normal cost method used to determine the employer contributions to NYCERS, there would be an increase in the Unfunded Accrued Liability (UAL) of approximately $4.3 million offset by a decrease in the Present Value of future employer Normal Cost of $2.3 million. FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with Section 13-638.2(k-2) of the Administrative Code of the City of New York (ACCNY), new UAL attributable to benefit changes are to be amortized as determined by the Actuary, but are generally amortized over the remain- ing working lifetime of those impacted by the benefit changes. As of June 30, 2019, the remaining working lifetime of the Water Supply Police Members assumed to join the WSP 25-Year Plan is approximately 12 years. For the purposes of this Fiscal Note, the increase in UAL was amor- tized over a 12-year period (11 payments under the One-Year Lag Method- ology) using level dollar payments. This payment, offset by the decrease in the Normal Cost, results in an increase in annual employer contrib- utions of approximately $553,000 each year. CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is assumed that the changes in the Present Value of future employer contributions and annual employer contributions would be reflected for the first time in the June 30, 2020 actuarial valuation of NYCERS. In accordance with the One-Year Lag Methodology (OYLM) used to determine employer contributions, the increase in employer contributions would first be reflected in Fiscal Year 2022. CENSUS DATA: The estimates presented herein are based on the census data used in the Preliminary June 30, 2019 (Lag) actuarial valuation of NYCERS to determine the Preliminary Fiscal Year 2021 employer contrib- utions. The 88 Water Supply Police Members as of June 30, 2019 assumed to join the WSP 25-Year Plan had an average age of approximately 40.6 years, average service of approximately 15.4 years, and an average salary of approximately $73,800. ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of future employer contributions and annual employer contributions presented herein have been calculated based on the actuarial assumptions and methods in effect for the June 30, 2019 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year 2021 employer contrib- utions of NYCERS. To determine the impact of the elective nature of the proposed legis- lation, a subgroup of Water Supply Police Members was developed based on who could potentially benefit actuarially from WSP 25-Year Plan partic- ipation. The net Present Value of future employer costs (i.e. the PVFB less the Present Value of future member contributions) of each member's benefit was determined under their current plan and under the WSP 25-Year Plan. If the net Present Value of future employer cost under the WSP 25-Year Plan was greater than or equal to the Present Value of future employer cost under the member's current plan, the member was deemed to benefit actuarially. Based on this analysis, it was determined that those members who are mandated into the WSP 25-Year Plan in the future will generally not benefit from Plan participation (i.e. they will have a decrease in Pres-A. 7306--A 20 ent Value of future employer costs as compared to the Tier 6 63/10 Plan they would otherwise participate in, absent this proposed legislation), and therefore the costs presented in this Fiscal Note are borne only from current NYCERS members who are assumed to benefit from, and thus opt to join, the WSP 25-Year Plan. RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend highly on the realization of the actuarial assumptions used, as well as certain demographic characteristics of NYCERS and other exogenous factors such as investment, contribution, and other risks. If actual experience deviates from actuarial assumptions, the actual costs could differ from those presented herein. Costs are also dependent on the actuarial methods used, and therefore different actuarial methods could produce different results. Quantifying these risks is beyond the scope of this Fiscal Note. Not measured in this Fiscal Note are the following: * The initial, additional administrative costs of NYCERS and other New York City agencies to implement the proposed legislation. * The impact of this proposed legislation on Other Postemployment Benefit (OPEB) costs. STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu- ary for, and independent of, the New York City Retirement Systems and Pension Funds. I am a Fellow of the Society of Actuaries, an Enrolled Actuary under the Employee Retirement Income and Security Act of 1974, a Member of the American Academy of Actuaries, and a Fellow of the Confer- ence of Consulting Actuaries. I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. To the best of my 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 2020-23 dated April 2, 2020 was prepared by the Chief Actuary for the New York City Employees' Retirement System. This estimate is intended for use only during the 2020 Legislative Session.