Bill Text: NY A07874 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to membership in the New York city teachers' retirement system.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2019-12-20 - VETOED MEMO.279 [A07874 Detail]
Download: New_York-2019-A07874-Introduced.html
Bill Title: Relates to membership in the New York city teachers' retirement system.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2019-12-20 - VETOED MEMO.279 [A07874 Detail]
Download: New_York-2019-A07874-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7874 2019-2020 Regular Sessions IN ASSEMBLY May 28, 2019 ___________ Introduced by M. of A. ABBATE -- read once and referred to the Committee on Governmental Employees AN ACT to amend the administrative code of the city of New York, in relation to membership in the New York city teachers' retirement system The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (a) of subdivision 7 of section 13-501 of the 2 administrative code of the city of New York, as amended by chapter 650 3 of the laws of 1990, is amended to read as follows: 4 (a) "Teacher" shall mean the superintendent of schools, the associate 5 superintendents, the assistant superintendents, the director and the 6 assistant director of the divisions of reference and research, the 7 director and the assistant directors of the bureau of compulsory educa- 8 tion, school census and child welfare, attendance teachers and specially 9 certificated attendance officers who are first employed by the New York 10 city board of education on or after September first, nineteen hundred 11 sixty-eight, attendance teachers and specially certificated attendance 12 officers who were members of the New York city board of education 13 retirement system and who, on or before December thirty-first, nineteen 14 hundred sixty-nine, gave notice to said board of education retirement 15 system of their intention to transfer to the New York city teachers' 16 retirement system, the director of attendance, assistant director of 17 attendance, chief attendance officer, division supervising attendance 18 officers and district supervising attendance officers of the bureau of 19 compulsory education, school census and child welfare, supervisors of 20 school social workers who are first employed by the New York city board 21 of education on or after September first, nineteen hundred sixty-nine or 22 who were members of the New York city board of education retirement 23 system and who on or before December thirty-first, nineteen hundred 24 seventy, gave notice to the said board of education retirement system of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06635-02-9A. 7874 2 1 their intention to transfer to the New York city teachers' retirement 2 system, the members of the board of examiners, the directors and the 3 assistant directors of special branches, the supervisor and assistant 4 supervisors of lectures, all principals, vice-principals, assistants-to- 5 principals, heads of departments, and all regular and special teachers 6 of the public day schools of the city, and all employees of the board of 7 education appointed to regular positions in the service of the public 8 schools at annual salaries and whose appointments were made or shall be 9 made from eligible lists prepared as the result of examinations held by 10 the board of examiners or from hiring lists established by the chancel- 11 lor of the board of education, as the case may be, and all employees 12 employed by the board of education in the titles of teacher aide, educa- 13 tional assistant, educational associate, auxiliary trainer, bilingual 14 professional assistant, family worker, family assistant, family associ- 15 ate[,] or parent program assistant[, who file an application for member-16ship in the retirement association on a form supplied by the retirement17board]. 18 § 2. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY OF BILL: This proposed legislation would amend paragraph (a) of subdivision 7 of Section 13-501 of the Administrative Code of the City of New York to eliminate the requirement that certain titles file an application to become members of the New York City Teachers' Retire- ment System (TRS). Under current law, individuals in the title of teacher aide, educa- tional assistant, educational associate, auxiliary trainer, bilingual professional assistant, family worker, family assistant, family associ- ate, and parent program assistant (collectively, paraprofessionals) have the option of joining TRS by filing an application for membership. The proposed legislation would make TRS membership for paraprofession- als mandatory. Effective Date: Upon enactment. FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: If enacted into law, the ultimate employer cost for this proposed legislation would be based on the number, ages, years of service, and salary of those paraprofes- sionals that would otherwise not have elected to become members of TRS. Based on these assumptions and other actuarial assumptions, data, and methods described herein, the enactment of this proposed legislation would increase annual employer contributions as follows: Paraprofessional Estimated First Year Count Annual Employer Contribution ($ Millions) Estimate of Paraprofessionals who would be mandated into TRS and otherwise would not have joined 3,100 $9.0 Estimate of Paraprofessionals whose membership is being accelerated into TRS 2,500 6.7 Total 5,600 $15.7 These employer contribution amounts are representative of the annual employer contribution amounts for each future year if paraprofessional member participation numbers and demographic characteristics do not significantly change.A. 7874 3 OTHER COSTS: Not measured in this Fiscal Note are the following: * The initial, additional administrative costs of TRS and other New York City agencies to implement the proposed legislation. * The impact of this proposed legislation on Other Postemployment Benefit (OPEB) costs. * The cost of potential Tax-Deferred Annuity (TDA) plan participation and benefits. CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is assumed that the changes in the annual employer contributions would be reflected for the first time in the June 30, 2019 actuarial valuation of TRS. 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 2021. CENSUS DATA: In order to estimate the costs associated with this group, census data of approximately 5,600 paraprofessionals who are not currently members of TRS was provided by the United Federation of Teach- ers and was reviewed. Based on this data and the population of parapro- fessionals who have already joined TRS, it was estimated that approxi- mately 3,100 paraprofessionals, who would not have otherwise joined TRS, would be mandated into TRS membership if this proposed legislation is enacted. The remaining 2,500 paraprofessionals were assumed to have become members of TRS at some point in their careers even absent the proposed legislation. These paraprofessionals had an average age of approximately 36.8 years, and an average salary of approximately $32,300 as of June 30, 2018. ACTUARIAL ASSUMPTIONS AND METHODS: The additional employer contrib- utions presented herein have been calculated based on the same actuarial assumptions and methods in effect for the June 30, 2018 (Lag) actuarial valuation used to determine the Preliminary Fiscal Year 2020 employer contributions of TRS with an additional graded participation rate that decreases as an individual's years of service increases. RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend highly on the actuarial assumptions and methods used and are subject to change based on the realization of potential investment, demographic, contribution, and other risks. If actual experience deviates from actu- arial 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. 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 2019-17 dated May 14, 2019 was prepared by the Chief Actuary for the New York City Teachers' Retirement System. This estimate is intended for use only during the 2019 Legislative Session.
