Bill S4186A-2013

Provides for the refund of certain member contributions

Provides to certain New York city transit authority members of the New York city employees' retirement system a refund of additional member contributions that were paid while participants of one of the chapter 96 of 1995 retirement programs.

Details

Actions

  • Jun 20, 2013: SUBSTITUTED BY A6578A
  • Jun 20, 2013: ORDERED TO THIRD READING CAL.1526
  • Jun 20, 2013: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • May 21, 2013: PRINT NUMBER 4186A
  • May 21, 2013: AMEND AND RECOMMIT TO CIVIL SERVICE AND PENSIONS
  • Mar 13, 2013: REFERRED TO CIVIL SERVICE AND PENSIONS

Meetings

Votes

Memo

BILL NUMBER:S4186A

TITLE OF BILL: An act to amend the retirement and social security law, in relation to refunding contributions made to the twenty-five year early retirement program and the age fifty-seven retirement program by New York city transit authority members

PURPOSE:

This bill provides for the refund of certain member contributions made under the transit 55/25 program.

SUMMARY OF PROVISIONS:

Section 1- Amends subdivision d of section 604-c of the retirement and social security law by adding a new paragraph 15.

Section 2- Amends section 604-d subdivision f of the retirement and social security law by adding a new paragraph 15.

In both amendments, Paragraph 15 entitles eligible former participants to a refund of a portion of his/her additional member contributions, including accrued interest at a rate of 5% per annum, upon completion of an application to be established by the New York City Employees' Retirement System's Board of Trustees. Defines this eligible participant as someone who is or was employed in a title represented for purposes of collective bargaining by an employee organization representing a majority of supervisory employees in the NYCTA's stations department, recognized or certified pursuant to Article 14 of the civil service law, and who, on October 1, 2006 was employed by the NYCTA in such title and who was a participant in the 25 year early retirement program or the age 57 retirement program prior to the starting date of elimination of additional member contributions for said programs.

JUSTIFICATION:

To correct the inequity to members who originally opted into the Chapter 96 of the Laws of 1995 (Chapter 96/95) 55/25 pension program who Paid an additional member contribution (AMC) from the time they opted into until January 3, 2001. Then as a result of Chapter 10 of the Laws of 2000, members who didn't opt into the 55/25 pension program were put into the 55/25 pension program without having to make any additional member contributions.

Members who made the additional member contributions are not being given any additional benefit for their contributions. It is only fair and equitable to refund the additional contributions back to these members. Members of the 1994 25/55 pension program have already been refunded their additional member contributions.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

See Fiscal Note 2012, prepared by Chief Actuary for the New York City Employees' Retirement System on March 6, 2013.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4186--A 2013-2014 Regular Sessions IN SENATE March 13, 2013 ___________
Introduced by Sen. DILAN -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the retirement and social security law, in relation to refunding contributions made to the twenty-five year early retirement program and the age fifty-seven retirement program by New York city transit authority members THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision d of section 604-c of the retirement and social security law, as added by chapter 96 of the laws of 1995, is amended by adding a new paragraph 15 to read as follows: 15. AN ELIGIBLE FORMER PARTICIPANT, AS DEFINED IN THIS PARAGRAPH, SHALL BE ENTITLED TO A REFUND OF THE EMPLOYEE PORTION OF HIS OR HER ADDITIONAL MEMBER CONTRIBUTIONS MADE PURSUANT TO THIS SUBDIVISION WHICH SHALL INCLUDE ANY AND ALL INTEREST THEREON AT THE RATE OF FIVE PERCENT PER ANNUM, COMPOUNDED ANNUALLY AND SUCH REFUND SHALL BE PAYABLE, UPON SUCH PARTICIPANT'S APPLICATION PURSUANT TO PROCEDURES PROMULGATED IN REGULATIONS OF THE BOARD OF TRUSTEES OF THE RETIREMENT SYSTEM. AN ELIGI- BLE FORMER PARTICIPANT SHALL BE A PARTICIPANT WHO IS OR WAS EMPLOYED IN THE TITLE SUPERVISOR (STATIONS) IN ASSIGNMENT LEVEL II IN THE NEW YORK CITY TRANSIT AUTHORITY'S STATIONS DEPARTMENT, AND WHO, ON OCTOBER FIRST, TWO THOUSAND SIX, WAS EMPLOYED BY THE NEW YORK CITY TRANSIT AUTHORITY IN SUCH TITLE AND WHO WAS A PARTICIPANT IN THE TWENTY-FIVE YEAR EARLY RETIREMENT PROGRAM PRIOR TO THE STARTING DATE OF THE ELIMINATION OF ADDITIONAL MEMBER CONTRIBUTIONS, AS SUCH DATE IS DEFINED IN AN ELECTION MADE PURSUANT TO PARAGRAPH TEN OF SUBDIVISION E OF SECTION SIX HUNDRED FOUR-B OF THIS ARTICLE. S 2. Subdivision f of section 604-d of the retirement and social secu- rity law is amended by adding a new paragraph 15 to read as follows:
15. AN ELIGIBLE FORMER PARTICIPANT, AS DEFINED IN THIS PARAGRAPH, SHALL BE ENTITLED TO A REFUND OF THE EMPLOYEE PORTION OF HIS OR HER ADDITIONAL MEMBER CONTRIBUTIONS MADE PURSUANT TO THIS SUBDIVISION WHICH SHALL INCLUDE ANY AND ALL INTEREST THEREON AT THE RATE OF FIVE PERCENT PER ANNUM, COMPOUNDED ANNUALLY AND SUCH REFUND SHALL BE PAYABLE, UPON SUCH PARTICIPANT'S APPLICATION PURSUANT TO PROCEDURES PROMULGATED IN REGULATIONS OF THE BOARD OF TRUSTEES OF THE RETIREMENT SYSTEM. AN ELIGI- BLE FORMER PARTICIPANT SHALL BE A PARTICIPANT WHO IS OR WAS EMPLOYED IN THE TITLE SUPERVISOR (STATIONS) IN ASSIGNMENT LEVEL II IN THE NEW YORK CITY TRANSIT AUTHORITY'S STATIONS DEPARTMENT, AND WHO, ON OCTOBER FIRST, TWO THOUSAND SIX, WAS EMPLOYED BY THE NEW YORK CITY TRANSIT AUTHORITY IN SUCH TITLE AND WHO WAS A PARTICIPANT IN THE AGE FIFTY-SEVEN RETIREMENT PROGRAM PRIOR TO THE STARTING DATE OF THE ELIMINATION OF ADDITIONAL MEMBER CONTRIBUTIONS, AS SUCH DATE IS DEFINED IN AN ELECTION MADE PURSU- ANT TO PARAGRAPH TEN OF SUBDIVISION E OF SECTION SIX HUNDRED FOUR-B OF THIS ARTICLE. S 3. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: PROVISIONS OF PROPOSED LEGISLATION: This proposed legislation would amend New York State Retirement and Social Security Law ("RSSL") Sections 604-c and 604-d to provide to certain New York City Transit Authority ("NYCTA") members of the New York City Employees' Retirement System ("NYCERS") a refund of Additional Member Contributions ("AMC") that were paid while participants of one of the Chapter 96 of the Laws of 1995 ("Chapter 96/95") Retirement Programs. The Effective Date of the proposed legislation would be the date of enactment. This Fiscal Note assumes that the proposed legislation is intended to refund interest on AMC in accordance with NYCERS procedures for credit- ing interest on member contributions. IMPACT ON PLAN PROVISIONS - ADDITIONAL MEMBER CONTRIBUTIONS: Under Chapter 96/95, AMC were required under each of the Early Retirement Programs: * The Twenty-Five-Year Early Retirement Program ("55/25 Program") and * The Age Fifty-Seven Retirement Program ("57/5 Program"). Those NYCERS members who participated in either of such Programs paid AMC of: * 4.35% of salary for service on and after January 1, 1995 until Janu- ary 1, 1998, * 2.85% of salary for service on and after January 1, 1998 until December 2, 2001, and * 1.85% of salary for service on and after December 2, 2001. In addition, if such member's job title was considered Physically-Tax- ing ("PT"), an additional Physically-Taxing AMC ("PTAMC") of 1.98% of salary was required for all service on and after January 1, 1995. As a result of Chapter 10 of the Laws of 2000, many of the NYCTA Tier IV members of NYCERS who participated in the Chapter 96/95 Retirement Programs were transferred into the Transit Twenty-Five-Year and Age Fifty-Five Retirement Program ("Transit 55/25 Program") effective Decem- ber 15, 2000. For these members, the AMC and PTAMC that had been paya- ble under the Chapter 96/95 Retirement Programs were no longer required after January 3, 2001 (i.e., the effective implementation date, the first payroll period following the transfer date). This proposed legislation would refund, on and after the Effective Date, to certain Transit 55/25 Program participants with initial Program participation dates on or before December 15, 2000 who were employed by

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