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.