Bill Text: NY S09274 | 2023-2024 | General Assembly | Introduced
Bill Title: Extends the benefits of the variable supplements fund for transit police members of the New York city employees' retirement system for persons who retired on or after October 1, 1968.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-05-08 - REFERRED TO CIVIL SERVICE AND PENSIONS [S09274 Detail]
Download: New_York-2023-S09274-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9274 IN SENATE May 8, 2024 ___________ Introduced by Sen. SCARCELLA-SPANTON -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the administrative code of the city of New York, in relation to extending the benefits of the variable supplements fund for transit police members of the New York city employees' retirement system The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (c) of subdivision 1 of section 13-191 of the 2 administrative code of the city of New York, as amended by chapter 577 3 of the laws of 1992, is amended to read as follows: 4 (c) "Beneficiary". Any person who receives a retirement allowance by 5 reason of having retired, on or after [July first, nineteen hundred6eighty-seven] October first, nineteen hundred sixty-eight for service 7 (with credit for twenty or more years of service toward the minimum 8 period) as a transit police officer; provided, that no person who held a 9 rank or position as a transit police superior officer, as defined in 10 subdivision eighty-four of section 13-101 of this [title] chapter who, 11 on or after May first, nineteen hundred ninety-two, subsequently became 12 a transit police officer shall be considered a beneficiary unless such 13 person (1) subsequently performed at least three years of service as a 14 transit police officer or (2) returned to service, from the position of 15 sergeant, as a transit police officer during the eighteen month proba- 16 tionary period, or such other probationary period as may be applicable 17 or (3) returned to service as a transit police officer during the three 18 year period specified in paragraph (e) of subdivision one of section 19 seventy-five of the civil service law, or (4) returned to service as a 20 transit police officer as the result of a hearing conducted pursuant to 21 applicable law. 22 § 2. Paragraph (b) of subdivision 1 of section 13-192 of the adminis- 23 trative code of the city of New York, as amended by chapter 720 of the 24 laws of 1994, is amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08380-04-4S. 9274 2 1 (b) "Beneficiary". Any person who receives a retirement allowance by 2 reason of having retired, on or after [July first, nineteen hundred3eighty-seven,] October first, nineteen hundred sixty-eight, for service 4 (with credit for twenty or more years of service toward the minimum 5 period) as a transit police member and as a transit police superior 6 officer; provided, however, that where a person who held or holds a rank 7 or position as a transit police superior officer, subsequently and on or 8 after May first, nineteen hundred ninety-two became or becomes a transit 9 police officer, and while a transit police officer, retired or retires 10 for service under such circumstances that he or she would have qualified 11 as a beneficiary under the provisions of paragraph (c) of subdivision 12 one of section 13-191 of this [title] chapter (other than the proviso 13 thereof), but did not or does not qualify as a beneficiary under such 14 paragraph (c) because he or she was or is disqualified by the terms of 15 such proviso, such retiree shall nevertheless be deemed to be a benefi- 16 ciary under the provisions of this section. 17 § 3. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would extend the eligibility for the payment of Transit Police Officers' and Transit Police Superior Officers' Variable Supplements Funds (VSF) benefits to former NYCERS members who retired for service from the New York City Transit Police between October 1, 1968 and June 30, 1987 with 20 or more years of service. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Millions) Year NYCERS 2025 20.9 2026 0 2027 0 2028 0 2029 0 2030 0 2031 0 2032 0 2033 0 2034 0 2035 0 2036 0 2037 0 2038 0 2039 0 2040 0 2041 0 2042 0 2043 0 2044 0 2045 0 2046 0 2047 0 2048 0 2049 0 The entire increase in employer contributions will be allocated to New York City. There are no active Transit Police members of NYCERS andS. 9274 3 therefore a transfer from NYCERS, via a City payment, to the impacted VSFs would be necessary to fund the additional VSF benefit obligations. EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES as of June 30, 2023 ($ in Millions) Present Value (PV) NYCERS PV of Benefits: 18.9 PV of Employee Contributions: 0 PV of Employer Contributions: 18.9 Unfunded Accrued Liabilities: 18.9 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY NYCERS Number of Payments: 1 Fiscal Year of Last Payment: 2025 Amortization Payment: 20.9 M Since those that would benefit are retired, and therefore have no remaining working lifetime, the entire increase in Unfunded Accrued Liabilities would be recognized immediately. CENSUS DATA: The estimates presented herein are based on preliminary census data collected as of June 30, 2023. The census data for the impacted population is summarized below. NYCERS Receiving Members - Number Count: 304 - Average Age: 82.0 IMPACT ON RETIREE BENEFITS: Currently, Transit Police Officers' and Transit Police Superior Officers' VSFs provide supplemental non-pension benefits to former NYCERS members who retired for service on or after July 1, 1987 from New York City Transit Police with 20 or more years of service. The amount of VSF benefits paid is currently $12,000 per Calendar Year. These VSF benefits are payable on an annual basis around December 15th to eligible former NYCERS members for their lifetimes. Upon the death of the NYCERS retiree, VSF payments cease. Under the proposed legislation, former NYCERS members who retired for service from New York City Transit Police between October 1, 1968 and June 30, 1987 with 20 or more years of service would become immediately eligible for VSF benefits on the December 15th following the Effective Date and for each year thereafter. For the purposes of this Fiscal Note, it has been assumed that benefits payable under this proposed legis- lation are prospective only. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the Revised 2021 Actuarial Assumptions and Methods of the impacted retirement systems. RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend highly on the actuarial assumptions, methods, and models used, demo- graphics of the impacted population, and other factors such as invest- ment, contribution, and other risks. If actual experience deviates from actuarial assumptions, the actual costs could differ from those presented herein. Quantifying these risks is beyond the scope of this Fiscal Note.S. 9274 4 This Fiscal Note is intended to measure pension-related impacts and does not include other potential costs (e.g., administrative and Other Postemployment Benefits). STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov- sky are members of the Society of Actuaries and the American Academy of Actuaries. We are members of NYCERS but do not believe it impairs our objectivity and we meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. To the best of our 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 2024-17 dated February 23, 2024 was prepared by the Chief Actuary for the New York City Retire- ment Systems and Pension Funds. This estimate is intended for use only during the 2024 Legislative Session.
