Bill Text: NY S60410 | 2009-2010 | General Assembly | Introduced
Bill Title: Relates to rate of regular interest used in the actuarial valuation of liabilities for calculating contributions to the NYC employees' retirement system.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2009-06-28 - REFERRED TO RULES [S60410 Detail]
Download: New_York-2009-S60410-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 410 Seventh Extraordinary Session I N S E N A T E June 28, 2009 ___________ Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the administrative code of the city of New York, in relation to the rate of regular interest used in the actuarial valu- ation of liabilities for the purpose of calculating contributions to the New York city employees' retirement system, the New York city teachers' retirement system, the police pension fund, subchapter two, the fire department pension fund, subchapter two and the board of education retirement system of such city by public employers and other obligers required to make employer contributions to such retirement systems, and the crediting of special interest and additional interest to members of such retirement systems, and the allowance of supplemen- tary interest on the funds of such retirement systems THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Paragraph 2 of subdivision b of section 13-638.2 of the 2 administrative code of the city of New York, as amended by chapter 152 3 of the laws of 2006, is amended to read as follows: 4 (2) With respect to each retirement system, such rate of interest 5 shall be as hereinafter set forth in this paragraph: 6 First day and 7 last day of 8 Rate of interest fiscal year or 9 per centum per series of fiscal 10 Retirement annum, compounded years for which 11 System annually rate is effective 12 ________________________________________________________________________ 13 NYCERS 8% July 1, 2004 to 14 June 30, [2009] 2010 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14397-01-9 S. 410 2 1 NYCTRS 8% July 1, 2004 to 2 June 30, [2009] 2010 3 PPF 8% July 1, 2004 to 4 June 30, [2009] 2010 5 FPF 8% July 1, 2004 to 6 June 30, [2009] 2010 7 BERS 8% July 1, 2004 to 8 June 30, [2009] 2010 9 S 2. Paragraph 2 of subdivision f of section 13-638.2 of the adminis- 10 trative code of the city of New York, as amended by chapter 152 of the 11 laws of 2006, is amended to read as follows: 12 (2) Such special interest shall be allowed at the rates and for the 13 periods set forth below in this paragraph: 14 First day and 15 last day of 16 Rate of interest fiscal year or 17 per centum per series of fiscal 18 Retirement annum, compounded years for which 19 System annually rate is effective 20 ________________________________________________________________________ 21 NYCERS 1 1/4% July 1, 2004 to 22 June 30, [2009] 2010 23 NYCTRS 1 1/4% July 1, 2004 to 24 June 30, [2009] 2010 25 PPF 1 1/4% July 1, 2004 to 26 June 30, [2009] 2010 27 FPF 1 1/4% July 1, 2004 to 28 June 30, [2009] 2010 29 BERS 1 1/4% July 1, 2004 to 30 June 30, [2009] 2010 31 S 3. Paragraph 2 of subdivision g of section 13-638.2 of the adminis- 32 trative code of the city of New York, as amended by chapter 152 of the 33 laws of 2006, is amended to read as follows: 34 (2) Such additional interest shall be included at the rates and for 35 the periods set forth below in this paragraph: 36 First day and 37 last day of 38 Rate of interest fiscal year or 39 per centum per series of fiscal 40 Retirement annum, compounded years for which 41 System annually rate is effective 42 ________________________________________________________________________ 43 NYCERS 1 1/4% July 1, 2004 to 44 June 30, [2009] 2010 45 NYCTRS 1 1/4% July 1, 2004 to 46 June 30, [2009] 2010 47 PPF 1 1/4% July 1, 2004 to 48 June 30, [2009] 2010 49 FPF 1 1/4% July 1, 2004 to 50 June 30, [2009] 2010 51 BERS 1 1/4% July 1, 2004 to 52 June 30, [2009] 2010 S. 410 3 1 S 4. Paragraph 2 of subdivision i of section 13-638.2 of the adminis- 2 trative code of the city of New York, as amended by chapter 152 of the 3 laws of 2006, is amended to read as follows: 4 (2) Such supplementary interest shall be allowed at the rates and for 5 the periods set forth below in this paragraph: 6 First day and 7 last day of 8 Rate of interest fiscal year or 9 per centum per series of fiscal 10 Retirement annum, compounded years for which 11 System annually rate is effective 12 ________________________________________________________________________ 13 NYCERS 1% July 1, 2004 to 14 June 30, [2009] 2010 15 NYCTRS 1% July 1, 2004 to 16 June 30, [2009] 2010 17 PPF 1% July 1, 2004 to 18 June 30, [2009] 2010 19 FPF 1% July 1, 2004 to 20 June 30, [2009] 2010 21 BERS 1% July 1, 2004 to 22 June 30, [2009] 2010 23 S 5. This act shall take effect July 1, 2009, except that if it shall 24 have become a law subsequent to such date, this act shall take effect 25 immediately and shall be deemed to have been in full force and effect on 26 and after July 1, 2009. FISCAL NOTE.-- PROVISIONS OF PROPOSED LEGISLATION - OVERVIEW: The enactment of this proposed legislation (referred to hereafter as "Interest Rate Extender Legislation") would amend Administrative Code of the City of New York ("ACNY") Section 13-638.2 to continue for Fiscal Year 2010 for the five actuarially-funded New York City Retirement Systems ("NYCRS") the following rates that expire on June 30, 2009: * The 8.25% per annum rate used to credit interest on Tier I and Tier II member account balances and Increased-Take-Home-Pay ("ITHP") Reserves, and * The 8.0% per annum Actuarial Interest Rate ("AIR") assumption used to compute employer contributions. The Effective Date for this proposed Interest Rate Extender Legis- lation would be July 1, 2009. FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: The continuation for Fiscal Year 2010 of the same 8.25% per annum rate that was used for Fiscal Year 2009 to credit interest on Tier I and Tier II member contributions and ITHP Reserves would not change the amount or timing of expected employer contributions. The continuation for Fiscal Year 2010 of the AIR assumption of 8.0% per annum that was used to determine employer contributions to the NYCRS for Fiscal Year 2009 would not change the expected amount or timing of employer contributions. Note: The Actuary anticipates developing proposed changes in actuarial assumptions and methods to be effective for Fiscal Year 2010 or 2011 but not until late Fiscal Year 2010 or sometime during Fiscal Year 2011. The financial impact of implementing those proposed changes in actuar- ial assumptions and methods can be expected to differ from the financial S. 410 4 impact determined using the actuarial assumptions and methods continued from Fiscal Year 2009. OTHER COSTS: Enactment of this proposed legislation would not be expected to produce any additional costs. STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief Actuary for the New York City Retirement Systems. I am a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries. I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. FISCAL NOTE IDENTIFICATION: This estimate is intended for use only during the 2009 Legislative Session. It is Fiscal Note 2009-10, dated June 9, 2009, prepared by the Chief Actuary for the New York City Retirement Systems.