Bill Text: NY A08182 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Provides that service retirement benefits for members of the NYC police pension fund shall not be reduced by the primary social security retirement benefit commencing at age sixty-two.
Spectrum: Strong Partisan Bill (Democrat 13-1)
Status: (Introduced - Dead) 2020-07-01 - print number 8182a [A08182 Detail]
Download: New_York-2019-A08182-Introduced.html
Bill Title: Provides that service retirement benefits for members of the NYC police pension fund shall not be reduced by the primary social security retirement benefit commencing at age sixty-two.
Spectrum: Strong Partisan Bill (Democrat 13-1)
Status: (Introduced - Dead) 2020-07-01 - print number 8182a [A08182 Detail]
Download: New_York-2019-A08182-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8182 2019-2020 Regular Sessions IN ASSEMBLY June 6, 2019 ___________ Introduced by M. of A. ABBATE -- read once and referred to the Committee on Governmental Employees AN ACT to amend the retirement and social security law, in relation to service retirement benefits for members of the New York city fire department pension fund and the New York city police pension fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 505 of the retirement and social security law, as 2 amended by chapter 18 of the laws of 2012, is amended to read as 3 follows: 4 § 505. Service retirement benefits; police/fire members, New York city 5 uniformed correction/sanitation revised plan members and investigator 6 revised plan members. a. The normal service retirement benefit for 7 police/fire members, New York city uniformed correction/sanitation 8 revised plan members and investigator revised plan members at normal 9 retirement age shall be a pension equal to fifty percent of final aver- 10 age salary, less fifty percent of the primary social security retirement 11 benefit commencing at age sixty-two, as provided in section five hundred 12 eleven of this article, except that for police/fire members of the New 13 York city fire department pension fund or the New York city police 14 pension fund, the normal service retirement benefit shall not be reduced 15 by the primary social security retirement benefit commencing at age 16 sixty-two as provided in section five hundred eleven of this article. 17 b. The early service retirement benefit for police/fire members, New 18 York city uniformed correction/sanitation revised plan members and 19 investigator revised plan members shall be a pension equal to two and 20 one-tenths percent of final average salary times years of credited 21 service at the completion of twenty years of service or upon attainment 22 of age sixty-two, increased by one-third of one percent of final average 23 salary for each month of service in excess of twenty years, but not in 24 excess of fifty percent of final average salary, less fifty percent of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11505-04-9A. 8182 2 1 the primary social security retirement benefit commencing at age sixty- 2 two as provided in section five hundred eleven of this article, 3 provided, however, that New York city police/fire revised plan members, 4 New York city uniformed correction/sanitation revised plan members and 5 investigator revised plan members shall not be eligible to retire for 6 service prior to the attainment of twenty years of credited service, and 7 provided further that for police/fire members of the New York city fire 8 department pension fund or the New York city police pension fund, the 9 early service retirement benefit shall not be reduced by the primary 10 social security retirement benefit commencing at age sixty-two as 11 provided in section five hundred eleven of this article. 12 c. A police/fire member, a New York city uniformed 13 correction/sanitation revised plan member or an investigator revised 14 plan member who retires with twenty-two years of credited service or 15 less may become eligible for annual escalation of the service retirement 16 benefit if he elects to have the payment of his benefit commence on the 17 date he would have completed twenty-two years and one month or more of 18 service. In such event, the service retirement benefit shall equal two 19 percent of final average salary for each year of credited service, less 20 fifty percent of the primary social security retirement benefit commenc- 21 ing at age sixty-two as provided in section five hundred eleven of this 22 article, except that for police/fire members of the New York city fire 23 department pension fund or the New York city police pension fund, the 24 service retirement benefit shall not be reduced by the primary social 25 security retirement benefit commencing at age sixty-two as provided in 26 section five hundred eleven of this article. 27 § 2. Section 511 of the retirement and social security law is amended 28 by adding a new subdivision h to read as follows: 29 h. This section shall not apply to police/fire members of the New York 30 city fire department pension fund or the New York city police pension 31 fund who receive a service retirement benefit pursuant to section five 32 hundred five of this article or a deferred vested benefit pursuant to 33 section five hundred sixteen of this article. 34 § 3. Subdivision c of section 516 of the retirement and social securi- 35 ty law, as amended by chapter 18 of the laws of 2012, is amended to read 36 as follows: 37 c. The deferred vested benefit of police/fire members, New York city 38 police/fire revised plan members, New York city uniformed 39 correction/sanitation revised plan members or investigator revised plan 40 members shall be a pension commencing at early retirement age equal to 41 two and one-tenths percent of final average salary times years of cred- 42 ited service, less fifty percent of the primary social security retire- 43 ment benefit commencing at age sixty-two, as provided in section five 44 hundred eleven of this article, except that for police/fire members of 45 the New York city fire department pension fund or the New York city 46 police pension fund, the service retirement benefit shall not be reduced 47 by the primary social security retirement benefit commencing at age 48 sixty-two as provided in section five hundred eleven of this article. A 49 police/fire member, a New York city police/fire revised plan member, a 50 New York city uniformed correction/sanitation revised plan member or 51 investigator revised plan member may elect to receive his vested benefit 52 commencing at early retirement age or age fifty-five. If the vested 53 benefit commences before early retirement age, the benefit shall be 54 reduced by one-fifteenth for each year, if any, that the member's early 55 retirement age is in excess of age sixty, and by one-thirtieth for each 56 additional year by which the vested benefit commences prior to earlyA. 8182 3 1 retirement age. If such vested benefit is deferred until after such 2 member's normal retirement age, the benefit shall be computed and 3 subject to annual escalation in the same manner as provided for an early 4 retirement benefit pursuant to subdivision c of section five hundred 5 five of this article. 6 § 4. This act shall take effect on the sixtieth day after it shall 7 have become a law. FISCAL NOTE.--Pursuant to Legislative law, Section 50: We have estimated the impact of the cost of removing the social secu- rity offset for all Tier 3 members (including Tier 3 Original, Tier 3 Revised, and Tier 3 Enhanced members) on the projected employer contrib- utions of the New York City Police Pension Fund. The table below summarizes the additional contributions that result from this change by year. (in millions) Year Annual Cost 2020 17.9 2021 20.7 2022 23.6 2023 26.9 2024 30.0 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 22, 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 calculations and meets the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions contained herein.
