JD2718

Seriously, can you read this?

Please tell us what it says.

This is from the New York State budget, just passed, or in the process of passing. Here’s the source.

  9    Section 1. This act enacts into law  components  of  legislation  that
    10  would enable the city of New York and the board of education of the city
    11  of  New  York to offer a temporary retirement incentive to their employ-
    12  ees, as well as to provide an age 55/25 years  temporary  incentive  for
    13  certain  public  employees.  Each component is wholly contained within a
    14  Subpart identified as Subparts A and B.  The  effective  date  for  each
    15  particular  provision  contained within such Subpart is set forth in the
    16  last section of such Subpart. Any provision  in  any  section  contained
    17  within  a  Subpart,  including  the effective date of the Subpart, which
    18  makes reference to a section "of this act", when used in connection with
    19  that particular component, shall be deemed to  mean  and  refer  to  the
    20  corresponding  section of the Subpart in which it is found, unless noted
    21  otherwise.  Section three of this act contains a severability clause for
    22  all provisions contained in each Subpart of this Part. Section  four  of
    23  this act sets forth the general effective date of this Part.
    24    § 2. Legislative findings. The legislature finds and declares that the
    25  retirement  benefits  provided  for  in this act are designed to achieve
    26  cost-savings for public employers and to avoid layoffs of public employ-
    27  ees in this time of fiscal need.  Therefore,  the  retirement  incentive
    28  benefit  provided  for  in Subpart A of this act and the age 55/25 years
    29  retirement benefit provided for in Subpart B of this  act  are  intended
    30  only to be temporary in nature for employees who are eligible to receive
    31  and  qualify for the applicable benefit during the applicable time peri-
    32  ods specified within each Subpart. Further, nothing in this act shall be
    33  construed to create an expectation of a future or continuing  retirement
    34  benefit for any public employee who is not eligible to receive and qual-
    35  ify  for  the retirement benefits in this act during the applicable time
    36  periods.
 
    37                                  SUBPART A
 
    38    Section 1. Definitions. As used in this act, unless the context clear-
    39  ly requires otherwise:
    40    a. "Retirement system" means the New York  city  teachers'  retirement
    41  system,  the  New  York city board of education retirement system or the
    42  New York city employees' retirement system, exclusive of the  retirement
    43  plans established pursuant to sections 13-156 and 13-157 of the adminis-
    44  trative code of the city of New York.
    45    b.  "Teachers'  retirement  system"  means the New York city teachers'
    46  retirement system.
    47    c. (a) "Participating employer" means the city  of  New  York  or  the
    48  board of education of the city of New York.
    49    (b) "Educational employer" means a participating employer which is the
    50  board of education of the city of New York.
    51    d.  "Eligible employee" means a person who is a member of a retirement
    52  system who is an employee of the city of New York or the board of educa-
        S. 2509--C                         184                        A. 3009--C
 
     1  tion of the city of New York,  but  such  term  shall  not  include  the
     2  following persons:
     3    (a) elected officials, judges or justices appointed to or serving in a
     4  court of record;
     5    (b)  chief administrative officers of employers which participate in a
     6  teachers' retirement system; and
     7    (c) appointed members of boards or commissions any  of  whose  members
     8  are appointed by the governor or by another public officer or body;
     9    e.  "Eligible  title"  means any title where a certain number of posi-
    10  tions in that title, as identified by agency, department, work  location
    11  or  appointing authority, as the case may be, would otherwise be identi-
    12  fied for layoff but for this act because of  economy,  consolidation  or
    13  abolition of functions, curtailment of activities or otherwise. However,
    14  an  eligible  title can also include a title as identified by an agency,
    15  department, work location or appointing  authority  in  which  positions
    16  would  not  be eliminated but into which employees in titles affected by
    17  layoff can be transferred or reassigned pursuant to  the  civil  service
    18  law,  rule  or regulation. The determination of eligible titles shall be
    19  made by the chief executive officer of the city of  New  York  or  other
    20  comparable official of a participating employer.
    21    f.  "Active  service"  means  service while being paid on the payroll,
    22  provided that (a) a leave of absence with pay  shall  be  deemed  active
    23  service; (b) other approved leave without pay not to exceed twelve weeks
    24  prior  to  the  commencement  of the designated open period; and (c) the
    25  period of time subsequent to a June school term and on or before  August
    26  31  of the year for which an open period is designated for a teacher (or
    27  other employee employed on a school-year  basis)  who  is  otherwise  in
    28  active  service on the effective date of this act shall be deemed active
    29  service.
    30    g. "Open period" means the period beginning with the commencement date
    31  as defined in subdivision h of this section and shall not be  more  than
    32  ninety  days  nor  less  than thirty days in length, as specified by the
    33  participating employer; provided however that any such period shall  not
    34  extend  beyond  October  31,  2021  for participating employers, and not
    35  beyond August 31, 2021 for educational employers.  For the  purposes  of
    36  retirement  pursuant  to this act, a service retirement application must
    37  be filed with the appropriate retirement system not less  than  fourteen
    38  days  prior  to  the  effective  date of retirement to become effective,
    39  unless a shorter period of time is permitted under law.
    40    h. "Commencement date" means the first day  the  retirement  incentive
    41  authorized  by this act shall be made available, which shall mean a date
    42  or dates on or after the effective date of this act to be determined  by
    43  a  participating employer. The chief executive officer or other compara-
    44  ble official of a participating employer shall notify the heads  of  the
    45  appropriate retirement systems of the dates of each open period prior to
    46  the commencement dates of such periods.
    47    § 2. The determination of whether a title shall be considered eligible
    48  shall  consider  whether the reduction of a specific number of positions
    49  within a title would unacceptably:
    50    a. Directly result in a reduction of the level of service required  or
    51  mandated  to protect and care for clients of a participating employer or
    52  to assure public health and safety;
    53    b. Endanger the health or  safety  of  employees  of  a  participating
    54  employer; or
    55    c.  Clearly result in a loss of significant revenue to a participating
    56  employer or result in substantially increased  overtime  or  contractual
        S. 2509--C                         185                        A. 3009--C
 
     1  costs.  However,  any  title may be determined eligible if the vacancies
     2  created can be  controlled  by  the  use  of  transfer  or  reassignment
     3  provisions  of  the  civil  service  law,  rules or regulations or other
     4  deployment of employees.
     5    § 3. a. Eligibility for inclusion in the retirement incentive provided
     6  by  section six of this act shall be determined by seniority for employ-
     7  ees of a participating  employer;  seniority  shall  mean  the  date  of
     8  original permanent appointment in the civil service of the city adjusted
     9  to  include veteran's credits for those entitled to receive such credits
    10  pursuant to sections 80, 80-a  and  85,  if  applicable,  of  the  civil
    11  service law, as established in the official records of the New York city
    12  department of citywide administrative services, regardless of the juris-
    13  dictional classification of the position or the status of the incumbent.
    14    b. All eligible employees serving in eligible titles desiring to avail
    15  themselves  of  the retirement incentive provided by section six of this
    16  act shall provide written notice to his or her employer on or before the
    17  twenty-first day preceding the end of  the  open  period.    Failure  to
    18  provide such written notice shall render the employee ineligible for the
    19  retirement incentive provided by this act.
    20    § 4. a. On or before June 30, 2021, a participating employer may elect
    21  to provide its employees the retirement incentive authorized by this act
    22  by (a) the enactment of a local law, or (b) in the case of a participat-
    23  ing  employer  which  is  not  so  empowered to act by local law, by the
    24  resolution of its governing body; provided  however,  no  local  law  or
    25  resolution  enacted  pursuant to this section shall in any manner super-
    26  sede any local  charter,  provided  further  that,  for  an  educational
    27  employer  such  election must be made by May 31, 2021.  The local law or
    28  resolution shall specify the commencement date of the  program  and  the
    29  length  of the open period or periods.  A copy of such law or resolution
    30  shall be filed with the appropriate retirement system or  systems,  and,
    31  if applicable, on forms provided by such system. The local law or resol-
    32  ution shall be accompanied by the affidavit of the chief executive offi-
    33  cer or other comparable official certifying to the information contained
    34  in subdivision c of this section.
    35    b. The commencement date of an open period for eligible employees of a
    36  retirement  system of the city of New York who elect retirement benefits
    37  pursuant to this section may be up to one hundred eighty days after  the
    38  end  of  the  open  period for other eligible employees, if requested by
    39  such system.
    40    c. Notwithstanding any other provision of law, the  benefits  provided
    41  by  this  act  shall  not  be  made  available to any person who (a) has
    42  received any retirement incentive authorized by any provision  of  state
    43  law,  or  (b)  who  receives,  has  received or is eligible to receive a
    44  payment in a lump sum or in another form  from  a  retirement  incentive
    45  pursuant  to  the  provisions of a collective bargaining agreement or by
    46  other arrangement with his or her employer, unless such person  files  a
    47  written  statement  with  his  or her employer, a copy of which shall be
    48  forwarded to the appropriate retirement system, that he or she agrees to
    49  waive any right to such payment. If a participating employer has offered
    50  a retirement incentive  pursuant  to  the  provisions  of  a  collective
    51  bargaining  agreement  or  by  other  arrangement,  such  employer shall
    52  prepare, and file with each retirement system,  a  list  containing  the
    53  names  and  social  security  numbers  of  all persons described in this
    54  subdivision. The employer is authorized, however, to exempt  persons  in
    55  its  employ  from  the  provisions of paragraph (b) of this subdivision.
        S. 2509--C                         186                        A. 3009--C
 
     1  Such exemption shall be made part of the election made pursuant to  this
     2  section.
     3    § 5. Notwithstanding any other provision of law, any eligible employee
     4  serving in an eligible title who:
     5    a.  has  been  continuously  in  the active service of a participating
     6  employer prior to the commencement date of the applicable open period;
     7    b. files an application  for  service  retirement  that  is  effective
     8  during the open period; and
     9    c.  is otherwise eligible for a service retirement as of the effective
    10  date of the application for retirement shall be entitled to the  retire-
    11  ment  incentive  provided  in  section six of this act. If not otherwise
    12  eligible for a service retirement, the following person shall be  deemed
    13  to satisfy the eligibility condition of this section: a person who is at
    14  least  age fifty with ten or more years service as of the effective date
    15  of retirement (other than a member of a retirement plan  which  provides
    16  for  half-pay  pension  upon  completion  of  twenty-five  years or less
    17  service without regard to age); or a member of a retirement  plan  which
    18  provides  for  half-pay  pension upon completion of twenty-five years of
    19  service without regard to age who has not accrued, excluding  additional
    20  credit  granted  pursuant  to  this  act, the minimum number of years of
    21  service required to retire with an allowance equal to fifty  percent  of
    22  final average salary under such plan, but has, with the inclusion of the
    23  additional  credit provided under this act, accrued such number of years
    24  of credit.
    25    § 6. Notwithstanding any other provision of law, an eligible  employee
    26  serving  in an eligible title who is a member of a retirement system and
    27  who is entitled to a retirement incentive pursuant to  section  five  of
    28  this  act  shall receive a retirement incentive of one-twelfth of a year
    29  of additional retirement credit for each year of pension service credit-
    30  ed as of the date of retirement, up to  a  maximum  of  three  years  of
    31  retirement  service credit at the time of retirement, provided, however,
    32  that service credit provided under the provisions of  sections  902  and
    33  911 of the retirement and social security law shall not be included when
    34  calculating  the  additional  retirement credit awarded pursuant to this
    35  act. For the New York city teachers' retirement  system,  the  New  York
    36  city  employees' retirement system and the New York city board of educa-
    37  tion retirement  system  such  incentive  shall  be  available  for  all
    38  purposes,  including  fulfilling  the qualifying service requirements of
    39  plan A and C, if applicable.
    40    An eligible employee who is covered by the provisions of article 15 of
    41  the retirement and social security law shall retire under the provisions
    42  of article 15 of the retirement and social security law. The  amount  of
    43  such  benefit  for  an eligible employee who is covered by article 15 of
    44  the retirement and social security law and retires under the  provisions
    45  of  this  section  (other  than  a  member  with thirty or more years of
    46  service in the New York city employees' retirement system, the New  York
    47  city  teachers'  retirement system, or the New York city board of educa-
    48  tion retirement system) shall be reduced by six percent for each of  the
    49  first  two  years  by  which  retirement  precedes age sixty-two, plus a
    50  further reduction of three percent for each  year  by  which  retirement
    51  precedes age sixty.  Such reduction shall be prorated for partial years.
    52  The  amount of such benefit for an eligible employee with thirty or more
    53  years of service who is a member of the New York city employees' retire-
    54  ment system, the New York city teachers' retirement system, or  the  New
    55  York  city board of education retirement system, or an eligible employee
    56  who is a participant in the optional twenty-five year  early  retirement
        S. 2509--C                         187                        A. 3009--C
 
     1  program  for  certain New York city members governed by section 604-c of
     2  the retirement and social security law, as added by chapter  96  of  the
     3  laws  of  1995  or  a twenty-five year participant in the age fifty-five
     4  retirement  program  governed  by  section  604-i  of the retirement and
     5  social security law, with twenty-five or more years of service  and  who
     6  is covered by article 15 of the retirement and social security law shall
     7  be reduced by five percent for each year by which retirement pursuant to
     8  this  section precedes age fifty-five. The amount of such benefit for an
     9  eligible New York city employee with five or more years of  service  and
    10  who  is a participant in the age fifty-seven retirement program governed
    11  by section 604-d of the retirement and  social  security  law  shall  be
    12  reduced  by  one-thirtieth  for  the first two years by which retirement
    13  precedes age fifty-seven plus a further reduction of  one-twentieth  for
    14  each  year  by which retirement precedes age fifty-five.  Such reduction
    15  shall be prorated for partial years. There shall be no reduction for  an
    16  eligible  New  York  city  employee in a physically taxing position with
    17  twenty-five or more years of service and who is a participant (i) in the
    18  optional twenty-five year early retirement program for  certain  members
    19  governed  by section 604-c of the retirement and social security law, as
    20  added by chapter 96 of the laws of 1995, or (ii) in the age  fifty-seven
    21  retirement  program  governed  by  section  604-d  of the retirement and
    22  social security law.
    23    An eligible employee serving in an eligible title who  is  covered  by
    24  article  11 of the retirement and social security law shall retire under
    25  the provisions of such article. There shall be no reduction  in  retire-
    26  ment  benefit  provided  that  such employee retires with thirty or more
    27  years of service at age fifty-five or older.  The amount of such benefit
    28  for an eligible employee covered by article 11  of  the  retirement  and
    29  social security law other than a member of a teachers' retirement system
    30  with  thirty or more years of service, a participant in the optional age
    31  fifty-five improved benefit retirement program for certain New York city
    32  employees governed by section 445-d of the retirement and social securi-
    33  ty law, as added by chapter 96 of the laws of 1995, with twenty-five  or
    34  more  years  of service, or a participant in the optional age fifty-five
    35  retirement program for New York city teachers and certain other  members
    36  governed  by  section  445-i  of the retirement and social security law,
    37  with twenty-five or more years of  service,  shall  be  reduced  by  six
    38  percent  for each of the first two years by which retirement pursuant to
    39  this section precedes age sixty-two, plus a further reduction  of  three
    40  percent  for  each  year  by  which  retirement pursuant to this section
    41  precedes age sixty, provided, however, the foregoing reduction shall not
    42  apply in any case where an eligible employee can retire  pursuant  to  a
    43  plan  which  permits  retirement  for service with immediate payability,
    44  exclusive of this act, prior to the age of fifty-five.   Such  reduction
    45  shall  be  prorated for partial years. The amount of such benefit for an
    46  eligible employee who is a member of a teachers' retirement system  with
    47  thirty  or  more  years  of  service,  a participant in the optional age
    48  fifty-five improved benefit retirement program for certain New York city
    49  employees governed by section 445-d of the retirement and social securi-
    50  ty law, as added by chapter 96 of the laws of 1995, with twenty-five  or
    51  more  years  of service, or a participant in the optional age fifty-five
    52  retirement program for New York city teachers and certain other  members
    53  governed  by  section  445-i  of the retirement and social security law,
    54  with twenty-five or more years of service and who is covered by  article
    55  11  of  the  retirement and social security law shall be reduced by five
    56  percent for each year by  which  retirement  pursuant  to  this  section
        S. 2509--C                         188                        A. 3009--C
 
     1  precedes  age  fifty-five.  Such reduction shall be prorated for partial
     2  years. There shall be no reduction for an eligible New York city employ-
     3  ee in a physically taxing position and  who  is  a  participant  in  the
     4  optional  age fifty-five improved benefit retirement program for certain
     5  New York city employees governed by section 445-d of the retirement  and
     6  social  security  law,  as added by chapter 96 of the laws of 1995, with
     7  twenty-five or more years of service.
     8    An eligible employee serving in an eligible title who is  not  covered
     9  by  article  11  or  15  of the retirement and social security law shall
    10  retire under the provisions of the plan by which he or she  is  covered.
    11  The  amount  of  such  benefit shall be reduced by five percent for each
    12  year by which retirement pursuant to this section  precedes  age  fifty-
    13  five,  provided, however, the foregoing reduction shall not apply in any
    14  case where an eligible employee can retire  pursuant  to  a  plan  which
    15  permits  retirement  for service with immediate payability, exclusive of
    16  this act, prior to the age of  fifty-five.    Such  reduction  shall  be
    17  prorated for partial years.
    18    An  eligible employee serving in an eligible title who participates in
    19  a retirement plan which provides for a  retirement  allowance  equal  to
    20  fifty percent of final average salary upon the completion of twenty-five
    21  years  of service without regard to age and who is otherwise eligible to
    22  retire shall retire under the provisions of  such  plan.  Such  employee
    23  shall, at the time of retirement, be credited with one-twelfth of a year
    24  of additional retirement service credit for each year of service credit-
    25  ed  under  such  plan  as  of the date of retirement, up to a maximum of
    26  three years of retirement service  credit.  If  such  employee  has  not
    27  accrued,  excluding  additional credit granted pursuant to this act, the
    28  minimum number of years of service required to retire with an  allowance
    29  equal to fifty percent of final average salary under such plan, but has,
    30  with  the  inclusion  of  the additional credit provided under this act,
    31  accrued such number of years of credit, the benefit payable shall be the
    32  percentage of final average salary that would ordinarily  be  applicable
    33  to such individual upon retirement with such amount of credit (including
    34  incentive  credit), reduced by five per centum per year for each year by
    35  which the number of years of service otherwise required to  retire  with
    36  an  allowance  equal to fifty percent of final average salary under such
    37  plan exceeds the amount of service credited to such employee under  such
    38  plan  at  retirement  (excluding  the  additional  retirement  incentive
    39  service credit provided pursuant to this act). Such reduction  shall  be
    40  prorated for partial years.
    41    §  7.  a.  Notwithstanding any other provision of law, any termination
    42  pay or leave arising from accrued sick leave or accrued annual leave for
    43  an eligible employee who has elected the retirement  incentive  provided
    44  by  this  act and who is a member of the New York city teachers' retire-
    45  ment system employed by the board of education of the city of  New  York
    46  shall  be  paid  in  three equal installments during a twenty-four month
    47  period commencing on such eligible employee's effective date of  retire-
    48  ment.
    49    b.  An  employee of the city of New York who retires under the retire-
    50  ment incentive provided by this act, who is eligible for terminal  leave
    51  pursuant to an applicable collective bargaining agreement or a personnel
    52  policy  or  rule  or  retirement  leave  pursuant to section 3107 of the
    53  education law or who has an accrued annual leave balance on  the  effec-
    54  tive  date  of  retirement shall be paid in three equal installments two
    55  months, fourteen months and twenty-four months following  such  eligible
    56  employee's effective date of retirement.
        S. 2509--C                         189                        A. 3009--C
 
     1    §  8.  a. A participating employer, if it elects the retirement incen-
     2  tive provided by this act shall be required to demonstrate  the  savings
     3  of their election by either eliminating positions vacated as a result of
     4  an  eligible  employee  in  an  eligible  title  receiving the incentive
     5  provided  by  section  six  of  this act or demonstrating a compensation
     6  savings such that the total amount of base salary paid for the  two-year
     7  period  subsequent to the effective date of retirement for such eligible
     8  employees in eligible titles to new hires, if any, who  otherwise  would
     9  not  have  been  hired by such employer after the effective date of this
    10  act but for the retirement incentive provided herein shall  be  no  more
    11  than  one-half  of  the total amount of base salary that would have been
    12  paid to such eligible employees from their date of retirement  for  such
    13  two-year  period. A participating employer may also demonstrate savings,
    14  however, by identifying a vacant position into  which  another  employee
    15  can  be  appointed,  transferred,  or  reassigned  pursuant to the civil
    16  service law, rules or regulations, in which case the former position  of
    17  the  employee  so  appointed, transferred, or reassigned shall be elimi-
    18  nated.   A participating employer shall make  available  its  plans  for
    19  achieving the savings described herein.
    20    b.  The  New  York city department of citywide administrative services
    21  shall prepare a report designating the title, grade level,  salary,  and
    22  classification,  according to appointing authority, (i) of each position
    23  which is eliminated pursuant to subdivision a of this section,  (ii)  of
    24  each position into which another employee was appointed, transferred, or
    25  reassigned  and  the former position of such employee, and (iii) of each
    26  position which is eliminated as a result of an appointment, transfer  or
    27  reassignment  referred  to  in  paragraph (ii) of this subdivision. Such
    28  report shall be available no later than ninety days after the last  date
    29  of the open period related to such positions.
    30    §  9. Nothing in this act shall be used to provide benefits that shall
    31  exceed the limits contained in section 415 of the internal revenue code.
    32  Provided, however, any service retirement benefit which has been reduced
    33  because of section 415 of the internal revenue code shall  be  increased
    34  when  (and  consistent  with)  the  dollar  limits in section 415 of the
    35  internal revenue code are adjusted by the internal revenue  service  for
    36  cost  of living increases. Such increases shall not increase the benefit
    37  in excess of the service retirement benefit otherwise payable.
    38    § 10. Any eligible employee who retires pursuant to the provisions  of
    39  this act and enters or reenters public service as defined in subdivision
    40  e  of section 210 of the retirement and social security law and joins or
    41  rejoins any public retirement system of the state  shall  if  the  addi-
    42  tional  benefit  was  provided pursuant to: (a) section six of this act,
    43  forfeit the additional benefit authorized by this act at the time of his
    44  or her subsequent retirement; or (b) repay to the participating employer
    45  such additional contribution together with the appropriate  interest  as
    46  determined by the appropriate retirement system.
    47    §  11.  Notwithstanding  any  other  provision  of law, if the service
    48  retirement benefit of a member of a retirement system is  subject  to  a
    49  maximum  retirement  benefit,  the additional benefit authorized by this
    50  act will be computed by multiplying the final average salary  times  the
    51  number  of  years  of  service credit granted by section six of this act
    52  times the benefit fraction of the plan under which such member retires.
    53    § 12. The provisions of section 430 of the retirement and social secu-
    54  rity law shall not apply to any benefit or benefit improvement  provided
    55  by this act.
        S. 2509--C                         190                        A. 3009--C
 
     1    §  13.  The  pension benefit costs of section six of this act shall be
     2  paid by participating employers as provided by applicable law  for  each
     3  retirement  system  covered by this act over a period not to exceed five
     4  years commencing in the fiscal year following the fiscal year  in  which
     5  this act shall have become a law.
     6    §  14. Where an employee is eligible to receive the benefit authorized
     7  under section six and the retirement benefit provided for under  section
     8  five  of  subpart B of this act, such employee may elect a section under
     9  which he or she will participate.    In  no  event  shall  the  benefits
    10  provided  for  in section six of this act be received by any employee in
    11  conjunction with the benefits of section five of subpart B of this act.
    12    § 15. This act shall take effect immediately.
 
    13                                  SUBPART B
 
    14    Section 1. Definitions. As used in this act, unless the context clear-
    15  ly requires otherwise:
    16    a. "Retirement system" means the New York  city  teachers'  retirement
    17  system,  the  New  York city board of education retirement system or the
    18  New York city employees' retirement system, exclusive of the  retirement
    19  plans established pursuant to sections 13-156 and 13-157 of the adminis-
    20  trative code of the city of New York.
    21    b.  "Teachers'  retirement  system"  means the New York city teachers'
    22  retirement system.
    23    c. (a) "Participating employer" means the city  of  New  York  or  the
    24  board of education of the city of New York.
    25    (b) "Educational employer" means a participating employer which is the
    26  board of education of the city of New York.
    27    d.  "Eligible employee" means a person who is a member of a retirement
    28  system of the city of New York and who is an employee of the city of New
    29  York or the board of education of the city of New York who has  attained
    30  age  fifty-five and has at least twenty-five years of creditable service
    31  in a retirement system, but such term shall not  include  the  following
    32  persons:
    33    (a)  elected  officials, judges or justices appointed to or serving in
    34  court of record;
    35    (b) chief administrative officers of employers which participate in  a
    36  teachers' retirement system; and
    37    (c)  appointed  members  of boards or commissions any of whose members
    38  are appointed by the governor or by another public officer or body.
    39    e. "Active service" means service while being  paid  on  the  payroll,
    40  provided  that  (a)  a  leave of absence with pay shall be deemed active
    41  service; (b) other approved leave without pay not to exceed twelve weeks
    42  prior to the commencement of the designated open  period;  and  (c)  the
    43  period  of time subsequent to a June school term and on or before August
    44  31 of the year for which an open period is designated for a teacher  (or
    45  other  employee  employed  on  a  school-year basis) who is otherwise in
    46  active service on the effective date of this act shall be deemed  active
    47  service.
    48    f. "Open period" means the period beginning with the commencement date
    49  as  defined in subdivision g of this section and shall be ninety days in
    50  length; provided however that there shall be only one such  open  period
    51  and any such period shall not extend beyond October 31, 2021 for partic-
    52  ipating  employers.  For  educational  employers who make election after
    53  April 1, 2021, the  open  period  shall  begin  immediately  after  such
    54  election, and shall not extend beyond August 31, 2021.  For the purposes
        S. 2509--C                         191                        A. 3009--C
 
     1  of  retirement  pursuant  to  this act, a service retirement application
     2  must be filed with the appropriate retirement system not less than four-
     3  teen days prior to the effective date of retirement to become effective,
     4  unless a shorter period of time is permitted under law.
     5    g.  "Commencement  date"  means  the  first day the retirement benefit
     6  mandated by this act shall be made available, which shall mean a date or
     7  dates on or after the effective  date  of  this  act  for  participating
     8  employers.   The chief executive officer or other comparable official of
     9  a participating employer  shall  notify  the  head  of  the  appropriate
    10  retirement system of the date of the open periods prior to the commence-
    11  ment dates of such periods.
    12    § 2. A participating employer, if it elects to participate pursuant to
    13  section  three  of  this act shall establish a commencement date for the
    14  retirement benefit established under section five of  this  act  in  the
    15  following  manner: (a) for participating employers that are not the city
    16  of New York, its governing body shall adopt a resolution establishing  a
    17  commencement  date; and (b) for the city of New York the chief executive
    18  officer shall issue an executive order  establishing  such  commencement
    19  date,  provided,  however, no executive order shall in any manner super-
    20  sede any local charter. A copy of any such executive order or resolution
    21  establishing a commencement date shall be  filed  with  the  appropriate
    22  retirement  system  or systems, and, if applicable, on forms provided by
    23  such system. The executive order or resolution shall be  accompanied  by
    24  the  affidavit  of the chief executive officer or other comparable offi-
    25  cial of a participating employer certifying the commencement date.
    26    § 3. a. On or before June 30, 2021, a participating employer may elect
    27  to provide its employees the retirement incentive authorized by this act
    28  by the enactment of a local law or adoption  of  a  resolution  provided
    29  however,  no local law or resolution enacted or adopted pursuant to this
    30  section shall in  any  manner  supersede  any  local  charter,  provided
    31  further  that, for an educational employer such election must be made by
    32  May 31, 2021.  A copy of such law or resolution shall be filed with  the
    33  appropriate  retirement  system or systems, and, if applicable, on forms
    34  provided by such system. The local law shall be accompanied by the affi-
    35  davit of the chief executive officer or other comparable official  of  a
    36  participating employer certifying the validity of such law.
    37    b. The commencement date of an open period for eligible employees of a
    38  retirement  system of the city of New York who elect retirement benefits
    39  pursuant to this section may be up to one hundred eighty days after  the
    40  end  of  the  open  period for other eligible employees, if requested by
    41  such system.
    42    § 4. Notwithstanding any other provision of law, any eligible employee
    43  who (a) has been continuously in the active service of  a  participating
    44  employer  prior  to the commencement date of the applicable open period,
    45  (b) files an application for service retirement that is effective during
    46  the open period, and (c) is otherwise eligible for a service  retirement
    47  as  of  the  effective  date  of the application for retirement shall be
    48  entitled to the retirement benefit provided in section five of this act.
    49    § 5. a. Notwithstanding  any  other  provision  of  law,  an  eligible
    50  employee  who  is:  (a)  a  member of a retirement system and (b) who is
    51  entitled to a retirement benefit pursuant to section four  of  this  act
    52  may  retire  during  the open period without the reduction of his or her
    53  retirement benefit that would otherwise be imposed by article 11  or  15
    54  of  the retirement and social security law if he or she has attained the
    55  age of fifty-five and has completed at least twenty-five or  more  years
    56  of  creditable  service.  An  eligible  employee  who  is covered by the
        S. 2509--C                         192                        A. 3009--C
 
     1  provisions of articles 11 and 15 of the retirement and  social  security
     2  law  shall  retire  under  the  provisions  of articles 11 and 15 of the
     3  retirement and social security law.
     4    b.  A  participating employer may deny participation in the retirement
     5  benefit provided by subdivision a of this section if such employer makes
     6  a determination that the employee holds a position that is deemed  crit-
     7  ical to the maintenance of public health and safety.
     8    c. Where an employee is eligible for the retirement benefit under this
     9  section  and the retirement incentive authorized pursuant to section six
    10  of subpart A of this act, such employee  shall  elect  a  section  under
    11  which he or she will participate. The benefits provided by subdivision a
    12  of  this  section shall not be conditioned upon a participating employer
    13  making the benefits of section six of subpart A of this act available to
    14  employees in their employ. Further, the benefits provided by subdivision
    15  a of this section shall not be available in conjunction with  the  bene-
    16  fits of section six of subpart A of this act.
    17    d.  The  action  of a participating employer in denying the retirement
    18  benefit provided for in subdivision a of this section to any  individual
    19  shall  be  subject to review in the manner provided for in article 78 of
    20  the civil practice law and rules. Such action  for  review  pursuant  to
    21  article  78  of the civil practice law and rules shall only be commenced
    22  by the individual that was denied the  retirement  benefit  provided  by
    23  subdivision a of this section.
    24    e.  After  making  any  such determination under subdivision b of this
    25  section the participating employer shall notify the appropriate  retire-
    26  ment system or teachers' retirement system of its determination.
    27    §  6.  The  pension benefit costs of section five of this act shall be
    28  paid by participating employers as provided by applicable law  for  each
    29  retirement  system  covered by this act over a period not to exceed five
    30  years commencing in the fiscal year following the fiscal year  in  which
    31  this act shall have become a law.
    32    § 7. This act shall take effect immediately.
    33    § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
    34  sion,  section  or  part  of  this act shall be adjudged by any court of
    35  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    36  impair,  or  invalidate  the remainder thereof, but shall be confined in
    37  its operation to the clause, sentence, paragraph,  subdivision,  section
    38  or part thereof directly involved in the controversy in which such judg-
    39  ment shall have been rendered. It is hereby declared to be the intent of
    40  the  legislature  that  this  act  would  have been enacted even if such
    41  invalid provisions had not been included herein.
    42    § 4. This act shall take effect immediately; provided,  however,  that
    43  the  applicable  effective date of Subparts A and B of this act shall be
    44  as specifically set forth in the last section of such Subparts.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY OF BILL: This proposed legislation, as it relates to  the  New
        York  City  Retirement  Systems and Pension Funds (NYCRS), would provide
        for a temporary Early Retirement  Incentive  Program  (ERI  Program)  to
        allow  certain members of the New York City Employees' Retirement System
        (NYCERS), the New York City Teachers' Retirement System (TRS),  and  the
        New  York  City  Board  of  Education  Retirement System (BERS), who are
        employees of the City of New York (City) or the New York City Department
        of Education (DOE) and meet  enumerated  criteria,  to  elect  immediate
        retirement with enhanced benefits.
          The  ERI  Program  consists  of  two  parts and is contingent upon the
        employer's election to participate in the Program. Part A would  provide
        S. 2509--C                         193                        A. 3009--C
 
        to  eligible  members,  determined  by  title, seniority, and enumerated
        policy considerations, an additional service credit. Part B would remove
        the application of early retirement  reduction  factors  for  qualifying
        members. The benefits of the respective Parts cannot be combined.
          Eligible  NYCRS  members  would have anywhere from 30 to 90 days in an
        open period to elect and retire under Part A or  within  a  90-day  open
        period following the commencement date to retire under Part B of the ERI
        Program.  Multiple  open periods, not to exceed 180 days from the end of
        an open period for other employees, may be requested by NYCRS.    Should
        the  City or the DOE elect to participate in the ERI Program provided by
        this Act, it would be required to demonstrate the savings related to the
        election.
          A member is eligible to participate in Part A of the ERI Program if he
        or she:
            * Is otherwise eligible for service retirement;
            * Is at least age 50 with 10 or more years of service and is not  in
        a  plan  which  permits retirement at half-pay with 25 or fewer years of
        service without regard to age; or
            * Is in a plan that permits retirement at half-pay at  25  years  of
        service  without  regard  to  age  and  would  reach 25 years of service
        considering the additional service credit provided in Part A.
          A member is eligible to participate in Part B of the ERI Program if he
        or she is age 55 or older and has at least 25 years of service.
          In addition to the eligibility conditions above, members must also:
            * Be in continuous active service preceding the commencement date of
        the open period;
            * For Part A - provide timely written notice of the intent to  avail
        himself  or  herself  of the ERI and file for service retirement that is
        effective within the open period;
            * For Part B - file for service retirement that is effective  within
        the  open  period  and otherwise be eligible to retire for service as of
        the effective date of retirement.
          Effective Date: Upon enactment and as  determined  by  the  respective
        open periods contained in Parts A and B.
          IMPACT  ON  BENEFITS:  Part  A  would provide one-twelfth of a year of
        additional retirement service credit for each year of  pension  service,
        up  to a maximum of three years of additional retirement service credit.
        Some benefits provided under Part A could be subject to Early Retirement
        Factors (ERF) as specified in the proposed legislation.
          Part B would allow members to retire with an unreduced benefit if they
        are at least age 55 with 25 or more years of service.
          FINANCIAL IMPACT - OVERVIEW: There is no credible  data  available  to
        estimate  the  number  of  members who will retire under the current ERI
        Program and potentially benefit from this proposed  legislation.  There-
        fore,  the estimated financial impact has been calculated on a per event
        basis equal to the average increase  in  the  Present  Value  of  future
        employer  contributions  and  in  the  annual employer contributions for
        members who would benefit from the proposed legislation.
          The Present Value of future employer contributions is the  net  result
        of  the  increase in the Present Value of Future Benefits (PVFB) and the
        decrease in the Present Value of member contributions.
          For the purposes of this Fiscal Note, the increase in Present Value of
        future employer contributions was  amortized  over  a  five-year  period
        (four  payments  under  the One-Year Lag Methodology (OYLM)) using level
        dollar payments, the maximum allowable period under the proposed  legis-
        S. 2509--C                         194                        A. 3009--C
 
        lation. This amortized value is the estimated increase in annual employ-
        er contributions.
          There  will  also be future savings in Employer Contributions assuming
        that these members are not replaced.  This  additional  savings  is  not
        included here.
          With  respect  to  an  individual  member, the additional cost of this
        proposed legislation could vary greatly depending on the member's length
        of service, age, and salary history.
          FINANCIAL IMPACT - SUMMARY: Based on the census data and the actuarial
        assumptions and methods described herein, the enactment of this proposed
        legislation would result in an increase in the Present Value of Employer
        Contributions and annual employer contributions.  The estimated  pension
        financial impact has been calculated as the average increase per person.
        A  breakdown  of  the  financial  impact  by NYCRS is shown in the table
        below:
                                Additional
                              Present Value of             Estimated
        NYCRS                 Future Employer           Annual Employer
                               Contributions             Contributions
                              ($ Per Person)            ($ Per Person)
 
        Part A Only
         NYCERS                  $80,700                   $24,600
         TRS                      84,800                    25,900
         BERS                     37,900                    11,600
          Average                $77,900                   $23,800
 
        Part B Only
         NYCERS                 $113,600                   $34,700
         TRS                      68,000                    20,800
         BERS                     98,400                    30,100
          Average               $109,200                   $33,300
 
        Both A & B
         NYCERS                  $96,500                   $29,500
         TRS                      85,000                    26,000
         BERS                     43,700                    13,400
          Average                $87,700                   $26,800
 
          CONTRIBUTION TIMING: For the purposes  of  this  Fiscal  Note,  it  is
        assumed  that  the  changes  in  the  Present  Value  of future employer
        contributions and annual employer contributions would be  reflected  for
        the  first  time  in  the  Final  June  30, 2020 actuarial valuations of
        NYCERS, TRS, and BERS. In accordance with the  OYLM  used  to  determine
        employer  contributions,  the  increase  in employer contributions would
        first be reflected in Fiscal Year 2022.
          CENSUS DATA: For purposes of this Fiscal Note, it was assumed that the
        census data had the same age, gender, and service characteristics as the
        census data used in the Preliminary June 30, 2019 (Lag) actuarial  valu-
        ations of NYCERS, TRS, and BERS to determine the Preliminary Fiscal Year
        2021 employer contributions. Active members' salaries have been adjusted
        to  reflect  estimated  salary  increases from June 30, 2019 to June 30,
        2020.
          The table below contains the census data  for  members  who  meet  the
        eligibility  requirements  and  would be impacted by the proposed legis-
        S. 2509--C                         195                        A. 3009--C
 
        lation (Potential Elections), and for a  subset  of  those  members  who
        would benefit actuarially (Assumed to Elect).

        NYCRS               Potential Elections
 
        Part A Only  Count   Avg Age   Avg Svc   Avg Salary
 
        NYCERS       34,147    58.5      22.3      $83,900
        TRS          31,727    57.7      21.2      101,300
        BERS          9,736    60.2      15.8       49,900
        Total        75,610    58.4      21.0      $86,800
 
        Part B Only  Count   Avg Age   Avg Svc   Avg Salary
 
        NYCERS        5,990    58.2      30.2      $88,600
        TRS             569    58.0      26.9      110,100
        BERS            430    58.6      29.5       72,700
        Total         6,989    58.2      29.9      $89,400
 
        Both A & B   Count   Avg Age   Avg Svc   Avg Salary
 
        NYCERS       34,147    58.5      22.3      $83,900
        TRS          31,727    57.7      21.2      101,300
        BERS          9,736    60.2      15.8       49,900
        Total        75,610    58.4      21.0      $86,800
 
        NYCRS                 Assumed to Elect

        Part A Only   Count   Avg Age   Avg Svc   Avg Salary
 
        NYCERS        19,259   60.4      26.3      $87,600
        TRS           11,436   61.3      27.0      109,000
        BERS           3,318   63.6      21.6       51,600
        Total         34,013   61.0      26.1      $91,300
 
        Part B Only   Count   Avg Age   Avg Svc   Avg Salary
 
        NYCERS         5,941   58.2      30.2      $88,400
        TRS              530   57.9      26.9      109,900
        BERS             423   58.6      29.5       71,500
        Total          6,894   58.2      29.9      $89,000
 
        BOTH A & B     Count   Avg Age   Avg Svc   Avg Salary
 
         NYCERS       20,204   60.2      26.4      $88,000
          TRS         11,588   61.2      27.0      109,000
          BERS         3,331   63.6      21.6       51,900
          Total       35,123   60.9      26.2      $91,500
 
          ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of
        future   employer   contributions   and  annual  employer  contributions
        presented herein have been calculated based on the actuarial assumptions
        and methods in effect for the June 30, 2019 (Lag)  actuarial  valuations
        used  to  determine  the  Preliminary Fiscal Year 2021 employer contrib-
        utions of NYCERS, TRS, and BERS.
        S. 2509--C                         196                        A. 3009--C
 
          The Actuary is proposing a set of changes for use in the June 30, 2019
        (Lag) actuarial valuations of NYCRS to determine the Final  Fiscal  Year
        2021 Employer Contributions (2021 A&M). If the 2021 A&M is enacted it is
        estimated  that  it  would  produce  increases  in  the Present Value of
        Employer  Contributions  and  annual  employer  contributions  that  are
        approximately 1% larger than the results shown above.
          To determine the impact of the elective nature of the proposed  legis-
        lation,  a  subgroup  based on who could potentially benefit actuarially
        was used. The Present Value of future employer costs (i.e. the PVFB less
        the Present Value of future member contributions) of each member's bene-
        fit was determined under their current plan and  as  if  retiring  imme-
        diately  under  the ERI Program. If the Present Value of future employer
        cost under the ERI Program was greater than  or  equal  to  the  Present
        Value  of future employer cost under the member's current plan, then the
        member was deemed to benefit actuarially.
          Based on this analysis, the costs presented in this  Fiscal  Note  are
        borne  only  from current NYCERS, TRS, and BERS members who are employed
        by the City and assumed to benefit from, and thus opt to  retire  under,
        the ERI Program.
          RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
        highly on the realization of the actuarial assumptions used, as well  as
        certain  demographic characteristics of NYCERS, TRS, and BERS, and other
        exogenous factors such as investment, contribution, and other risks.  If
        actual  experience deviates from actuarial assumptions, the actual costs
        could differ from those presented herein. Costs are  also  dependent  on
        the  actuarial  methods  used, and therefore different actuarial methods
        could produce different results. Quantifying these risks is  beyond  the
        scope of this Fiscal Note.
          Not measured in this Fiscal Note are the following:
            * The offsetting reduction in salary due to retirements earlier than
        expected.
            * The impact of potential new hires replacing members who retire due
        to the ERI Program.
            *  The  initial,  additional  administrative  costs to implement the
        proposed legislation.
            * The impact of this proposed legislation  on  Other  Postemployment
        Benefit (OPEB) costs.
          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, a
        Member of the American Academy of Actuaries, and a Fellow of the Confer-
        ence of Consulting Actuaries. I meet the Qualification Standards of  the
        American  Academy of Actuaries to render the actuarial opinion 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 2021-19  dated  April  5,
        2021  was prepared by the Chief Actuary for the New York City Employees'
        Retirement System, the New York City Teachers'  Retirement  System,  and
        the  New  York City Board of Education Retirement System.  This estimate
        is intended for use only during the 2021 Legislative Session.