Bill Text: NY A07875 | 2019-2020 | General Assembly | Introduced


Bill Title: Provides for the pension benefits for first grade police officers of the city of New York who have served for 25 or 30 years.

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Introduced) 2019-05-28 - referred to governmental employees [A07875 Detail]

Download: New_York-2019-A07875-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7875

                               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 the pensionable earnings of first grade police officers

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section  14-111 of the administrative code of the city of
     2  New York is amended by adding two new subdivisions c and d  to  read  as
     3  follows:
     4    c.  When a first grade police officer shall have served in the rank of
     5  police officer for a period of twenty-five years, he or she  shall  have
     6  the  same rights in respect to the police pension fund as a police offi-
     7  cer designated to act as detective of the third  grade  who  shall  have
     8  served as such for a period of time aggregating two years at the highest
     9  salary rate for a detective of the third grade.
    10    d.  When a first grade police officer shall have served in the rank of
    11  police officer for a period of thirty years, he or she  shall  have  the
    12  same  rights  in  respect  to  the police pension fund as a sergeant who
    13  shall have served as such for a period of time aggregating two years  at
    14  the highest salary rate for a sergeant.
    15    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          We  have  estimated  the  impact  of  the FAS Bill, a copy of which is
        attached, on the projected employer contributions of the New  York  City
        Police  Pension  Fund. A brief summary of the new provisions is outlined
        below:
          * When a first grade police officer achieves 25 years of service, s/he
        shall be entitled to the same base pay for the  purpose  of  pensionable
        earnings  as  a detective of the third grade who served in such position
        for a period of 2 years at the highest pay rate for that position.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02616-02-9

        A. 7875                             2

          * When a first grade police officer achieves 30 years of service, s/he
        shall be entitled to the same base pay for the  purpose  of  pensionable
        earnings  as  a  sergeant  who served in such position for a period of 2
        years at the highest pay rate for that position.
          The  table  below  summarizes the additional contributions that result
        from this bill by year.
                       (in millions)
                       ________________________________
                           Year            Annual Cost
                       ________________________________
                           2020                   24.9
                           2021                   25.3
                           2022                   25.9
                           2023                   26.4
                           2024                   26.9
          While it is possible that  over  time,  these  plan  provisions  could
        influence  retirement  behavior, we are unable to accurately predict the
        specific behavior,  and  therefore  have  measured  the  cost  of  these
        provisions assuming no change to the retirement rates.
          Specific to this bill, we collected the data about the pensionable pay
        increases  at  the 25 and 30 year of service levels, based on historical
        information from the applicable contracts in place for  the  past  seven
        actuarial valuation dates.
          Taking  the  average  of the ratios over this 7-year historical period
        resulted in the following increases:
          * Increase at 25 Years of Service is 10.93% pay increase.
          * Increase at 30 Years of Service is 26.42% pay increase.
          These increases are applied to the prior 2 years of pay  (for  Tier  3
        and Tier 6) once the service level is achieved.
          The  assumptions  used in this analysis were those released by the New
        York City Office of the Actuary on January  2,  2019  in  the  "Proposed
        Changes in Actuarial Assumptions and Methods Used in Determining Employ-
        er  Contributions  for  Fiscal Years Beginning on and After July 1, 2018
        for the New York City Police Pension Fund"  document,  and  subsequently
        approved  by  the Police Pension Fund's Board on March 6, 2019. The data
        used to determine the cost was provided by the Police Pension  Fund  and
        was a snapshot of the active plan participants as of July 1, 2018.
          This  fiscal  note, dated May 6, 2019, is intended only for use in the
        2019 legislative session. The source of this fiscal  note  is  Heidi  E.
        Andorfer, FSA, EA, MAAA, Foster & Foster, Actuaries and Consultants, who
        is  familiar  with the immediate and long-term aspects of pension calcu-
        lations and meets the Qualification Standards of the American Academy of
        Actuaries necessary to render the actuarial opinions contained herein.
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