Bill Text: NY S05842 | 2019-2020 | General Assembly | Amended
Bill Title: Relates to member contribution per centum increases.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-03-26 - PRINT NUMBER 5842A [S05842 Detail]
Download: New_York-2019-S05842-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5842--A 2019-2020 Regular Sessions IN SENATE May 15, 2019 ___________ Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions -- recommitted to the Committee on Civil Service and Pensions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the retirement and social security law and the education law, in relation to member contribution per centum increases The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs 1, 2, 3, 4 and 5 of subdivision a of section 517 2 of the retirement and social security law, as added by chapter 18 of the 3 laws of 2012, are amended to read as follows: 4 1. members with wages of forty-five thousand dollars per annum or less 5 shall contribute three per centum of annual wages. On April one, two 6 thousand twenty-one, and every year thereafter, the wages in this 7 subparagraph shall be increased by three per centum; 8 2. members with wages greater than forty-five thousand per annum, but 9 not more than fifty-five thousand per annum shall contribute three and 10 one-half per centum of annual wages. On April one, two thousand twenty- 11 one, and every year thereafter, the wages in this subparagraph shall be 12 increased by three per centum; 13 3. members with wages greater than fifty-five thousand per annum, but 14 not more than seventy-five thousand per annum shall contribute four and 15 one-half per centum of annual wages. On April one, two thousand twenty- 16 one, and every year thereafter, the wages in this subparagraph shall be 17 increased by three per centum; 18 4. members with wages greater than seventy-five thousand per annum but 19 not more than one hundred thousand per annum shall contribute five and 20 three-quarters per centum of annual wages. On April one, two thousand EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11081-04-0S. 5842--A 2 1 twenty-one, and every year thereafter, the wages in this subparagraph 2 shall be increased by three per centum; and 3 5. members with wages greater than one hundred thousand per annum 4 shall contribute six per centum of annual wages. On April one, two thou- 5 sand twenty-one, and every year thereafter, the wages in this subpara- 6 graph shall be increased by three per centum. 7 § 2. Subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph 1 of 8 subdivision a, subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph 9 2 of subdivision a, paragraphs 1, 2, 3, 4 and 5 of subdivision f and 10 paragraphs 1, 2, 3, 4 and 5 of subdivision g of section 613 of the 11 retirement and social security law, subparagraphs (i), (ii), (iii), (iv) 12 and (v) of paragraph 1 and subparagraphs (i), (ii), (iii), (iv) and (v) 13 of paragraph 2 of subdivision a as amended by chapter 510 of the laws of 14 2015 and paragraphs 1, 2, 3, 4 and 5 of subdivision f and paragraphs 1, 15 2, 3, 4 and 5 of subdivision g as added by chapter 18 of the laws of 16 2012, are amended to read as follows: 17 (i) members with wages of forty-five thousand dollars per annum or 18 less shall contribute three per centum of annual wages. On April one, 19 two thousand twenty-one, and every year thereafter, the wages in this 20 subparagraph shall be increased by three per centum; 21 (ii) members with wages greater than forty-five thousand per annum, 22 but not more than fifty-five thousand per annum shall contribute three 23 and one-half per centum of annual wages. On April one, two thousand 24 twenty-one, and every year thereafter, the wages in this subparagraph 25 shall be increased by three per centum; 26 (iii) members with wages greater than fifty-five thousand per annum, 27 but not more than seventy-five thousand per annum shall contribute four 28 and one-half per centum of annual wages. On April one, two thousand 29 twenty-one, and every year thereafter, the wages in this subparagraph 30 shall be increased by three per centum; 31 (iv) members with wages greater than seventy-five thousand per annum 32 but not more than one hundred thousand per annum shall contribute five 33 and three-quarters per centum of annual wages. On April one, two thou- 34 sand twenty-one, and every year thereafter, the wages in this subpara- 35 graph shall be increased by three per centum; and 36 (v) members with wages greater than one hundred thousand per annum 37 shall contribute six per centum of annual wages. On April one, two thou- 38 sand twenty-one, and every year thereafter, the wages in this subpara- 39 graph shall be increased by three per centum. 40 (i) members with wages of forty-five thousand dollars per annum or 41 less shall contribute three per centum of annual wages. On April one, 42 two thousand twenty-one, and every year thereafter, the wages in this 43 subparagraph shall be increased by three per centum; 44 (ii) members with wages greater than forty-five thousand per annum, 45 but not more than fifty-five thousand per annum shall contribute three 46 and one-half per centum of annual wages. On April one, two thousand 47 twenty-one, and every year thereafter, the wages in this subparagraph 48 shall be increased by three per centum; 49 (iii) members with wages greater than fifty-five thousand per annum, 50 but not more than seventy-five thousand per annum shall contribute four 51 and one-half per centum of annual wages. On April one, two thousand 52 twenty-one, and every year thereafter, the wages in this subparagraph 53 shall be increased by three per centum; 54 (iv) members with wages greater than seventy-five thousand per annum 55 but not more than one hundred thousand per annum shall contribute five 56 and three-quarters per centum of annual wages. On April one, two thou-S. 5842--A 3 1 sand twenty-one, and every year thereafter, the wages in this subpara- 2 graph shall be increased by three per centum; and 3 (v) members with wages greater than one hundred thousand per annum 4 shall contribute six per centum of annual wages. On April one, two thou- 5 sand twenty-one, and every year thereafter, the wages in this subpara- 6 graph shall be increased by three per centum. 7 1. members with wages of forty-five thousand dollars per annum or less 8 shall contribute three per centum of annual wages. On April one, two 9 thousand twenty-one, and every year thereafter, the wages in this 10 subparagraph shall be increased by three per centum; 11 2. members with wages greater than forty-five thousand per annum, but 12 not more than fifty-five thousand per annum shall contribute three and 13 one-half per centum of annual wages. On April one, two thousand twenty- 14 one, and every year thereafter, the wages in this subparagraph shall be 15 increased by three per centum; 16 3. members with wages greater than fifty-five thousand per annum, but 17 not more than seventy-five thousand per annum shall contribute four and 18 one-half per centum of annual wages. On April one, two thousand twenty- 19 one, and every year thereafter, the wages in this subparagraph shall be 20 increased by three per centum; 21 4. members with wages greater than seventy-five thousand per annum but 22 not more than one hundred thousand per annum shall contribute five and 23 three-quarters per centum of annual wages. On April one, two thousand 24 twenty-one, and every year thereafter, the wages in this subparagraph 25 shall be increased by three per centum; and 26 5. members with wages greater than one hundred thousand per annum 27 shall contribute six per centum of annual wages. On April one, two thou- 28 sand twenty-one, and every year thereafter, the wages in this subpara- 29 graph shall be increased by three per centum. 30 1. members with wages of forty-five thousand dollars per annum or less 31 shall contribute three per centum of annual wages. On July one, two 32 thousand twenty-one, and every year thereafter, the wages in this 33 subparagraph shall be increased by three per centum; 34 2. members with wages greater than forty-five thousand per annum, but 35 not more than fifty-five thousand per annum shall contribute three and 36 one-half per centum of annual wages. On July one, two thousand twenty- 37 one, and every year thereafter, the wages in this subparagraph shall be 38 increased by three per centum; 39 3. members with wages greater than fifty-five thousand per annum, but 40 not more than seventy-five thousand per annum shall contribute four and 41 one-half per centum of annual wages. On July one, two thousand twenty- 42 one, and every year thereafter, the wages in this subparagraph shall be 43 increased by three per centum; 44 4. members with wages greater than seventy-five thousand per annum but 45 not more than one hundred thousand per annum shall contribute five and 46 three-quarters per centum of annual wages. On July one, two thousand 47 twenty-one, and every year thereafter, the wages in this subparagraph 48 shall be increased by three per centum; and 49 5. members with wages greater than one hundred thousand per annum 50 shall contribute six per centum of annual wages. On July one, two thou- 51 sand twenty-one, and every year thereafter, the wages in this subpara- 52 graph shall be increased by three per centum. 53 § 3. Subdivisions a, b, c, d and e of section 1204 of the retirement 54 and social security law, as added by chapter 18 of the laws of 2012, are 55 amended to read as follows:S. 5842--A 4 1 a. members with wages of forty-five thousand dollars per annum or less 2 shall contribute three per centum of annual wages. On April one, two 3 thousand twenty-one, and every year thereafter, the wages in this subdi- 4 vision shall be increased by three per centum; 5 b. members with wages greater than forty-five thousand per annum, but 6 not more than fifty-five thousand per annum shall contribute three and 7 one-half per centum of annual wages. On April one, two thousand twenty- 8 one, and every year thereafter, the wages in this subdivision shall be 9 increased by three per centum; 10 c. members with wages greater than fifty-five thousand per annum, but 11 not more than seventy-five thousand per annum shall contribute four and 12 one-half per centum of annual wages. On April one, two thousand twenty- 13 one, and every year thereafter, the wages in this subdivision shall be 14 increased by three per centum; 15 d. members with wages greater than seventy-five thousand per annum but 16 not more than one hundred thousand per annum shall contribute five and 17 three-quarters per centum of annual wages. On April one, two thousand 18 twenty-one, and every year thereafter, the wages in this subdivision 19 shall be increased by three per centum; and 20 e. members with wages greater than one hundred thousand per annum 21 shall contribute six per centum of annual wages. On April one, two thou- 22 sand twenty-one, and every year thereafter, the wages in this subdivi- 23 sion shall be increased by three per centum. 24 § 4. Paragraphs (a), (b), (c), (d) and (e) of subdivision 2 of section 25 182 of the education law, as added by chapter 18 of the laws of 2012, 26 are amended to read as follows: 27 (a) members with wages of forty-five thousand dollars per annum or 28 less shall contribute three per centum of annual wages. On April one, 29 two thousand twenty-one, and every year thereafter, the wages in this 30 paragraph shall be increased by three per centum; 31 (b) members with wages greater than forty-five thousand per annum, but 32 not more than fifty-five thousand per annum shall contribute three and 33 one-half per centum of annual wages. On April one, two thousand twenty- 34 one, and every year thereafter, the wages in this paragraph shall be 35 increased by three per centum; 36 (c) members with wages greater than fifty-five thousand per annum, but 37 not more than seventy-five thousand per annum shall contribute four and 38 one-half per centum of annual wages. On April one, two thousand twenty- 39 one, and every year thereafter, the wages in this paragraph shall be 40 increased by three per centum; 41 (d) members with wages greater than seventy-five thousand per annum 42 but not more than one hundred thousand per annum shall contribute five 43 and three-quarters per centum of annual wages. On April one, two thou- 44 sand twenty-one, and every year thereafter, the wages in this paragraph 45 shall be increased by three per centum; and 46 (e) members with wages greater than one hundred thousand per annum 47 shall contribute six per centum of annual wages. On April one, two thou- 48 sand twenty-one, and every year thereafter, the wages in this paragraph 49 shall be increased by three per centum. 50 § 5. Subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph (d) of 51 subdivision 2 of section 392 of the education law, as added by chapter 52 18 of the laws of 2012, are amended to read as follows: 53 (i) members with wages of forty-five thousand dollars per annum or 54 less shall contribute three per centum of annual wages. On July one, two 55 thousand twenty-one, and every year thereafter, the wages in this 56 subparagraph shall be increased by three per centum;S. 5842--A 5 1 (ii) members with wages greater than forty-five thousand per annum, 2 but not more than fifty-five thousand per annum shall contribute three 3 and one-half per centum of annual wages. On July one, two thousand twen- 4 ty-one, and every year thereafter, the wages in this subparagraph shall 5 be increased by three per centum; 6 (iii) members with wages greater than fifty-five thousand per annum, 7 but not more than seventy-five thousand per annum shall contribute four 8 and one-half per centum of annual wages. On July one, two thousand twen- 9 ty-one, and every year thereafter, the wages in this subparagraph shall 10 be increased by three per centum; 11 (iv) members with wages greater than seventy-five thousand per annum 12 but not more than one hundred thousand per annum shall contribute five 13 and three-quarters per centum of annual wages. On July one, two thousand 14 twenty-one, and every year thereafter, the wages in this subparagraph 15 shall be increased by three per centum; and 16 (v) members with wages greater than one hundred thousand per annum 17 shall contribute six per centum of annual wages. On July one, two thou- 18 sand twenty-one, and every year thereafter, the wages in this subpara- 19 graph shall be increased by three per centum. 20 § 6. Subparagraphs 1, 2, 3, 4 and 5 of paragraph (d) of subdivision 2 21 of section 6252 of the education law, as added by chapter 18 of the laws 22 of 2012, are amended to read as follows: 23 (1) members with wages of forty-five thousand dollars per annum or 24 less shall contribute three per centum of annual wages. On July one, two 25 thousand twenty-one, and every year thereafter, the wages in this 26 subparagraph shall be increased by three per centum; 27 (2) members with wages greater than forty-five thousand per annum, but 28 not more than fifty-five thousand per annum shall contribute three and 29 one-half per centum of annual wages. On July one, two thousand twenty- 30 one, and every year thereafter, the wages in this subparagraph shall be 31 increased by three per centum; 32 (3) members with wages greater than fifty-five thousand per annum, but 33 not more than seventy-five thousand per annum shall contribute four and 34 one-half per centum of annual wages. On July one, two thousand twenty- 35 one, and every year thereafter, the wages in this paragraph shall be 36 increased by three per centum; 37 (4) members with wages greater than seventy-five thousand per annum 38 but not more than one hundred thousand per annum shall contribute five 39 and three-quarters per centum of annual wages. On July one, two thousand 40 twenty-one, and every year thereafter, the wages in this paragraph shall 41 be increased by three per centum; and 42 (5) members with wages greater than one hundred thousand per annum 43 shall contribute six per centum of annual wages. On July one, two thou- 44 sand twenty-one, and every year thereafter, the wages in this paragraph 45 shall be increased by three per centum. 46 § 7. Notwithstanding any other provision of law to the contrary, none 47 of the provisions of this act shall be subject to section 25 of the 48 retirement and social security law. 49 § 8. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill would increase the wage ranges to which the 3%, 3.5%, 4.5%, 5.75% and 6% contribution rates are applied for tier 6 members beginning on April 1, 2021 and every year thereafter by 3%. The current contribution rates and wage ranges are: 3% for wages of $45,000 or less 3.5% for wages greater than $45,000 and less than or equal to $55,000S. 5842--A 6 4.5% for wages greater than $55,000 and less than or equal to $75,000 5.75% for wages greater than $75,000 and less than or equal to $100,000 6.0% for wages greater than $100,000 Insofar as this bill affects the New York State and Local Employees' Retirement System (NYSLERS), if this legislation is enacted during the 2020 legislative session, there will be an increase in the present value of future costs of approximately $384 million which would be shared by the State of New York and all of the participating employers in the NYSLERS. The estimated first year cost would be approximately $18.9 million to the State of New York and approximately $27.3 million to the participating employers in the NYSLERS. Insofar as this bill affects the New York State and Local Police and Fire Retirement System (NYSLPFRS), if this legislation is enacted during the 2020 legislative session, there will be an increase in the present value of future costs of approximately $8.9 million which would be shared by the State of New York and all of the participating employers in the NYSLPFRS. The estimated first year cost would be approximately $193,000 to the State of New York and approximately $790,000 to the participating employers in the NYSLPFRS. Summary of relevant resources: The membership data used in measuring the impact of the proposed change was the same as that used in the March 31, 2019 actuarial valu- ation. Distributions and other statistics can be found in the 2019 Report of the Actuary and the 2019 Comprehensive Annual Financial Report. The actuarial assumptions and methods used are described in the 2015, 2016, 2017, 2018 and 2019 Annual Report to the Comptroller on Actuarial Assumptions, and the Codes, Rules and Regulations of the State of New York: Audit and Control. The Market Assets and GASB Disclosures are found in the March 31, 2019 New York State and Local Retirement System Financial Statements and Supplementary Information. I am a member of the American Academy of Actuaries and meet the Quali- fication Standards to render the actuarial opinion contained herein. This fiscal note does not constitute a legal opinion on the viability of the proposed change nor is it intended to serve as a substitute for the professional judgment of an attorney. This estimate, dated March 24, 2020, and intended for use only during the 2020 Legislative Session, is Fiscal Note No. 2020-88, prepared by the Actuary for the New York State and Local Retirement System.
