STATE OF NEW YORK
________________________________________________________________________
8497
IN SENATE
May 9, 2018
___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the retirement and social security law, in relation to
amending the contribution provisions applicable to certain New York
City Employees' Retirement System (NYCERS) Special Plans subject to
Retirement and Social Security Law (RSSL) Articles 14 and 15 to allow
using any excess basic or additional member contributions to offset
any deficits in such other contribution account prior to date of
retirement
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Subparagraph (i) of paragraph 8 of subdivision e of section
2 504-a of the retirement and social security law, as amended by chapter
3 467 of the laws of 2017, is amended to read as follows:
4 (i) Such additional member contributions (and any interest thereon)
5 shall be paid into the contingent reserve fund of the retirement system
6 of which the participant is a member and shall not for any purpose be
7 deemed to be member contributions or accumulated contributions of a
8 member under section five hundred seventeen of this article or otherwise
9 while he or she is a participant in the twenty-year retirement program
10 or otherwise, except that, [upon the participant's separation from city
11 service as a result of retirement,] a surplus of such additional member
12 contributions that are paid into the retirement system's contingent
13 reserve fund may be used for the sole purpose of offsetting a deficit of
14 basic member contributions.
15 § 2. Subparagraph (i) of paragraph 12 of subdivision e of section
16 504-b of the retirement and social security law, as amended by chapter
17 467 of the laws of 2017, is amended to read as follows:
18 (i) All additional member contributions required by this subdivision
19 (and any interest thereon) which are received by the retirement system
20 of which the participant is a member shall be paid into its contingent
21 reserve fund and shall not for any purpose be deemed to be member
22 contributions or accumulated contributions of a member under section
23 five hundred seventeen of this article or otherwise while he or she is a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15792-01-8
S. 8497 2
1 participant in the twenty-year retirement program for captains and above
2 or otherwise, except that, [upon the participant's separation from city
3 service as a result of retirement,] a surplus of such additional member
4 contributions that are paid into the retirement system's contingent
5 reserve fund may be used for the sole purpose of offsetting a deficit of
6 basic member contributions.
7 § 3. Subparagraph (i) of paragraph 9 of subdivision e of section 504-d
8 of the retirement and social security law, as amended by chapter 467 of
9 the laws of 2017, is amended to read as follows:
10 (i) All additional member contributions required by this subdivision
11 (and any interest thereon) which are received by the retirement system
12 of which the participant is a member shall be paid into its contingent
13 reserve fund and shall not for any purpose be deemed to be member
14 contributions or accumulated contributions of a member under section
15 five hundred seventeen of this article or otherwise while he or she is a
16 participant in the twenty-year retirement program or otherwise, except
17 that, [upon the participant's separation from city service as a result
18 of retirement,] a surplus of such additional member contributions that
19 are paid into the retirement system's contingent reserve fund may be
20 used for the sole purpose of offsetting a deficit of basic member
21 contributions.
22 § 4. Subdivision d of section 517 of the retirement and social securi-
23 ty law, as amended by chapter 467 of the laws of 2017, is amended to
24 read as follows:
25 d. Notwithstanding any other provision of this article, a member shall
26 be entitled to withdraw any excess contributions within six months of
27 becoming subject to this article. Thereafter, such contributions, and
28 interest thereon, may only be withdrawn upon separation from service.
29 Upon retirement, such excess contributions, and any interest thereon,
30 may be withdrawn in a single lump sum, or at the election of the member
31 may be paid as an annuity under an option authorized pursuant to section
32 five hundred fourteen of this article[, or at the election of the
33 participant]. The retirement system may [be used] at any time use any
34 such excess contributions to offset a deficit of additional member
35 contributions as required pursuant to sections five hundred four-a, five
36 hundred four-b, and five hundred four-d of this article. The use of
37 basic member contributions to offset a deficit of additional member
38 contributions does not affect the contributions' tax designation pursu-
39 ant to section 414(h) of the Internal Revenue Code.
40 § 5. Subparagraph (i) of paragraph 8 of subdivision e of section 604-a
41 of the retirement and social security law, as amended by chapter 467 of
42 the laws of 2017, is amended to read as follows:
43 (i) Such additional member contributions (and any interest thereon)
44 shall be paid into the contingent reserve fund of the retirement system
45 of which the participant is a member and shall not for any purpose be
46 deemed to be member contributions or accumulated contributions of a
47 member under section six hundred thirteen of this article or otherwise
48 while he or she is a participant in the twenty-year retirement program
49 or otherwise, except that, [upon the participant's separation from city
50 service as a result of retirement,] a surplus of such additional member
51 contributions that are paid into the retirement system's contingent
52 reserve fund may be used for the sole purpose of offsetting a deficit of
53 basic member contributions.
54 § 6. Subparagraph (i) of paragraph 8 of subdivision e of section 604-b
55 of the retirement and social security law, as amended by chapter 467 of
56 the laws of 2017, is amended to read as follows:
S. 8497 3
1 (i) Such additional member contributions (and any interest thereon)
2 shall be paid into the contingent reserve fund of the retirement system
3 of which the participant is a member and shall not for any purpose be
4 deemed to be member contributions or accumulated contributions of a
5 member under section six hundred thirteen of this article or otherwise
6 while he or she is a participant in the twenty-five-year and age fifty-
7 five retirement program or otherwise, except that, [upon the partic-
8 ipant's separation from city service as a result of retirement,] a
9 surplus of such additional member contributions that are paid into the
10 retirement system's contingent reserve fund may be used for the sole
11 purpose of offsetting a deficit of basic member contributions.
12 § 7. Subparagraph (i) of paragraph 7 of subdivision d of section 604-c
13 of the retirement and social security law, as amended by section 7 of
14 chapter 467 of the laws of 2017, is amended to read as follows:
15 (i) All additional member contributions required by this subdivision
16 (and any interest paid thereon) which are received by the retirement
17 system of which the participant is a member shall be paid into its
18 contingent reserve fund and shall not for any purpose be deemed to be
19 member contributions or accumulated contributions of a member under
20 section six hundred thirteen of this article or otherwise while he or
21 she is a participant in the twenty-five-year early retirement program or
22 otherwise, except that, [upon the participant's separation from city
23 service as a result of retirement,] a surplus of such additional member
24 contributions that are paid into the retirement system's contingent
25 reserve fund may be used for the sole purpose of offsetting a deficit of
26 basic member contributions.
27 § 8. Subparagraph (i) of paragraph 8 of subdivision e of section 604-c
28 of the retirement and social security law, as amended by section 8 of
29 chapter 467 of the laws of 2017, is amended to read as follows:
30 (i) Such additional member contributions (and any interest thereon)
31 shall be paid into the contingent reserve fund of the retirement system
32 of which the participant is a member and shall not for any purpose be
33 deemed to be member contributions or accumulated contributions of a
34 member under section six hundred thirteen of this article or otherwise
35 while he or she is a participant in the twenty-year/age fifty retirement
36 program or otherwise, except that, [upon the participant's separation
37 from city service as a result of retirement,] a surplus of such addi-
38 tional member contributions that are paid into the retirement system's
39 contingent reserve fund may be used for the sole purpose of offsetting a
40 deficit of basic member contributions.
41 § 9. Subparagraph (i) of paragraph 6 of subdivision f of section 604-d
42 of the retirement and social security law, as amended by chapter 467 of
43 the laws of 2017, is amended to read as follows:
44 (i) All additional member contributions required by this subdivision
45 (and any interest paid thereon) which are received by the retirement
46 system of which the participant is a member shall be paid into its
47 contingent reserve fund and shall not for any purpose be deemed to be
48 member contributions or accumulated contributions of a member under
49 section six hundred thirteen of this article or otherwise while he or
50 she is a participant in the age fifty-seven retirement program or other-
51 wise, except that, [upon the participant's separation from city service
52 as a result of retirement,] a surplus of such additional member contrib-
53 utions that are paid into the retirement system's contingent reserve
54 fund may be used for the sole purpose of offsetting a deficit of basic
55 member contributions.
S. 8497 4
1 § 10. Subparagraph (i) of paragraph 10 of subdivision e of section
2 604-e of the retirement and social security law, as amended by section
3 10 of chapter 467 of the laws of 2017, is amended to read as follows:
4 (i) Such additional member contributions (and any interest thereon)
5 shall be paid into the contingent reserve fund of the retirement system
6 of which the participant is a member and shall not for any purpose be
7 deemed to be member contributions or accumulated contributions of a
8 member under section six hundred thirteen of this article or otherwise
9 while he or she is a participant in the twenty-five year retirement
10 program or otherwise, except that, [upon the participant's separation
11 from city service as a result of retirement,] a surplus of such addi-
12 tional member contributions that are paid into the retirement system's
13 contingent reserve fund may be used for the sole purpose of offsetting a
14 deficit of basic member contributions.
15 § 11. Subparagraph (i) of paragraph 10 of subdivision e of section
16 604-e of the retirement and social security law, as amended by section
17 11 of chapter 467 of the laws of 2017, is amended to read as follows:
18 (i) Such additional member contributions (and any interest thereon)
19 shall be paid into the contingent reserve fund of the retirement system
20 of which the participant is a member and shall not for any purpose be
21 deemed to be member contributions or accumulated contributions of a
22 member under section six hundred thirteen of this article or otherwise
23 while he or she is a participant in the twenty-five year retirement
24 program or otherwise, except that, [upon the participant's separation
25 from city service as a result of retirement,] a surplus of such addi-
26 tional member contributions that are paid into the retirement system's
27 contingent reserve fund may be used for the sole purpose of offsetting a
28 deficit of basic member contributions.
29 § 12. Subparagraph (i) of paragraph 10 of subdivision e of section
30 604-f of the retirement and social security law, as amended by section
31 12 of chapter 467 of the laws of 2017, is amended to read as follows:
32 (i) Such additional member contributions (and any interest thereon)
33 shall be paid into the contingent reserve fund of the retirement system
34 of which the participant is a member and shall not for any purpose be
35 deemed to be member contributions or accumulated contributions of a
36 member under section six hundred thirteen of this article or otherwise
37 while he or she is a participant in the twenty-five year retirement
38 program or otherwise, except that, [upon the participant's separation
39 from city service as a result of retirement,] a surplus of such addi-
40 tional member contributions that are paid into the retirement system's
41 contingent reserve fund may be used for the sole purpose of offsetting a
42 deficit of basic member contributions.
43 § 13. Subparagraph (i) of paragraph 10 of subdivision e of section
44 604-f of the retirement and social security law, as amended by section
45 13 of chapter 467 of the laws of 2017, is amended to read as follows:
46 (i) Such additional member contributions, and any interest thereon,
47 shall be paid into the contingent reserve fund of the retirement system
48 of which the participant is a member and shall not for any purpose be
49 deemed to be member contributions or accumulated contributions of a
50 member under section six hundred thirteen of this article or otherwise
51 while he or she is a participant in the twenty-five year retirement
52 program or otherwise, except that, [upon the participant's separation
53 from city service as a result of retirement,] a surplus of such addi-
54 tional member contributions that are paid into the retirement system's
55 contingent reserve fund may be used for the sole purpose of offsetting a
56 deficit of basic member contributions.
S. 8497 5
1 § 14. Subparagraph (i) of paragraph 10 of subdivision e of section
2 604-g of the retirement and social security law, as amended by chapter
3 467 of the laws of 2017, is amended to read as follows:
4 (i) Such additional member contributions (and any interest thereon)
5 shall be paid into the contingent reserve fund of the retirement system
6 of which the participant is a member and shall not for any purpose be
7 deemed to be member contributions or accumulated contributions of a
8 member under section six hundred thirteen of this article or otherwise
9 while he or she is a participant in the twenty-five year/age fifty
10 retirement program or otherwise, except that, [upon the participant's
11 separation from city service as a result of retirement,] a surplus of
12 such additional member contributions that are paid into the retirement
13 system's contingent reserve fund may be used for the sole purpose of
14 offsetting a deficit of basic member contributions.
15 § 15. Subparagraph (i) of paragraph 10 of subdivision e of section
16 604-h of the retirement and social security law, as amended by chapter
17 467 of the laws of 2017, is amended to read as follows:
18 (i) Such additional member contributions (and any interest thereon)
19 shall be paid into the contingent reserve fund of the retirement system
20 of which the participant is a member and shall not for any purpose be
21 deemed to be member contributions or accumulated contributions of a
22 member under section six hundred thirteen of this article or otherwise
23 while he or she is a participant in the twenty-five year retirement
24 program or otherwise, except that, [upon the participant's separation
25 from city service as a result of retirement,] a surplus of such addi-
26 tional member contributions that are paid into the retirement system's
27 contingent reserve fund may be used for the sole purpose of offsetting a
28 deficit of basic member contributions.
29 § 16. Subdivision h of section 613 of the retirement and social secu-
30 rity law, as added by chapter 467 of the laws of 2017, is amended to
31 read as follows:
32 h. Notwithstanding any other provision of law to the contrary, [upon
33 the participant's separation from city service as a result of retire-
34 ment,] a participant may use any excess basic member contributions to
35 offset a deficit of additional member contributions as required pursuant
36 to sections six hundred four-a, six hundred four-b, six hundred four-c,
37 as added by chapter 96 of the laws of 1995, six hundred four-c, as added
38 by chapter 472 of the laws of 1995, six hundred four-d, six hundred
39 four-e, as added by chapter 576 of the laws of 2000, six hundred four-e,
40 as added by chapter 577 of the laws of 2000, six hundred four-f, as
41 added by chapter 559 of the laws of 2001, six hundred four-f, as added
42 by chapter 582 of the laws of 2001, six hundred four-g, and six hundred
43 four-h of this article. The use of basic member contributions to offset
44 a deficit of additional member contributions does not affect the
45 contributions' tax designation pursuant to section 414(h) of the Inter-
46 nal Revenue Code.
47 § 17. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This proposed legislation would amend the contribution provisions
applicable to certain New York City Employees' Retirement System
(NYCERS) Special Plans subject to Retirement and Social Security Law
(RSSL) Articles 14 and 15 to allow using any excess basic or additional
member contributions to offset any deficits in such other contribution
account prior to date of retirement.
The Effective Date: Upon enactment.
S. 8497 6
PLANS IMPACTED BY THE PROPOSED LEGISLATION: The proposed legislation
would cover those members of NYCERS who are participants in the follow-
ing special plans requiring the payment of additional member contrib-
utions (Special Plans):
Article 14 Special Plans:
*Twenty-Year Retirement Program for New York City Correction Members
below the Rank of Captain
*Twenty-Year Retirement Program for New York City Correction Members
of the Rank of Captain or above
*Twenty-Year Retirement Program for New York City Correction Members
Article 15 Special Plans:
*Twenty-Year Retirement Program for New York City Sanitation Members
*Twenty-Five-Year and Age Fifty-Five Retirement Program for New York
City Transit Authority Members
*Optional Twenty-Five-Year Early Retirement Program for Certain New
York City Members
*Twenty-Year/Age Fifty Retirement Program for Triborough Bridge and
Tunnel Members
*Age Fifty-Seven Retirement Program for Certain New York City Members
*Twenty-Five Year Retirement Program for Dispatcher Members
*Twenty-Five Year Retirement Program for EMT Members
*Twenty-Five Year Retirement Program for Deputy Sheriff Members
*Twenty-Five Year Retirement Program for Special Officer, Parking
Control Specialist, School Safety Agent, Campus Peace Officer or New
York City Taxi and Limousine Inspector Members
*Twenty-Five Year/Age Fifty Retirement Program for Automotive Members
*Twenty-Five Year Retirement Program for Police Communications Members
IMPACT ON BENEFITS PAYABLE: The proposed legislation would not affect
the benefits payable to participants in the Special Plans. Rather, the
proposed legislation would enable immediate reallocation of excess basic
or additional member contributions to cover any deficits in such
contribution accounts instead of performing such transfer of excess
contributions at the date of retirement as permitted by Chapter 467 of
the Laws of 2017.
FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The enactment of this
proposed legislation would not result in any change in employer contrib-
utions.
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
(ERISA), a Member of the American Academy of Actuaries, and a Fellow of
the Conference of Consulting Actuaries. I meet the Qualification Stand-
ards of the American Academy of Actuaries to render the actuarial opin-
ion 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 2018-26 dated May 4,
2018, was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for use only during the
2018 Legislative Session.