Bill Text: NY S03651 | 2017-2018 | General Assembly | Amended


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: Bipartisan Bill

Status: (Introduced - Dead) 2018-06-20 - COMMITTED TO RULES [S03651 Detail]

Download: New_York-2017-S03651-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         3651--B
            Cal. No. 539
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 25, 2017
                                       ___________
        Introduced  by  Sens.  FELDER, AKSHAR -- read twice and ordered printed,
          and when printed to  be  committed  to  the  Committee  on  Cities  --
          reported  favorably  from  said committee, ordered to first and second
          report, ordered to a third reading,  amended  and  ordered  reprinted,
          retaining  its  place  in the order of third reading -- recommitted to
          the Committee on Cities in accordance with Senate Rule 6,  sec.  8  --
          reported  favorably  from  said committee, ordered to first and second
          report, ordered to a third reading,  amended  and  ordered  reprinted,
          retaining its place in the order of third reading
        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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08490-05-8

        S. 3651--B                          2
        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.
          * 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
        ________________________________________
               2018                 15.9
               2019                 16.7
               2020                 17.2
               2021                 17.6
               2022                 18.0
        Assumptions and Methods
          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 made the following assumptions about the
        pensionable pay increases at the 25 and 30 year of service levels, based
        on information from the applicable police contracts and  pay  applicable
        to 2017:
          * Increase at 25 Years of Service is $92,183/$85,292.
          * Increase at 30 Years of Service is $106,175/$85,292.
          These  increases  are  applied to the prior 2 years of pay (for Tier 3
        and Tier 6) once the service level is achieved.
          All other assumptions used to  illustrate  the  expected  contribution
        impact  are  consistent  with our current understanding of the actuarial
        assumptions employed by the New York City Office of the Actuary.
          This assessment was made for the purpose of estimating the cost impact
        of this proposed legislation. Use of the results for other purposes  may
        not  be  applicable  and produce significantly different results. Future
        actuarial measurements may differ significantly from the  current  meas-
        urements  presented  in  this letter for a variety of reasons including:
        changes in applicable laws,  changes  in  plan  provisions,  changes  in
        assumptions, or plan experience differing from expectations.
          The  undersigned  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.
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