S T A T E   O F   N E W   Y O R K
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    S. 4335                                                  A. 6088

                       2015-2016 Regular Sessions

                      S E N A T E - A S S E M B L Y

                             March 16, 2015
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Civil Service
  and Pensions

IN  ASSEMBLY -- Introduced by M. of A. PALUMBO -- read once and referred
  to the Committee on Governmental Employees

AN ACT in relation to granting tier II retirement benefits  in  the  New
  York city retirement system to Elisabeth Beavan

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.   Notwithstanding any other  provision  of  law,  Elisabeth
Beavan,  formerly  Elisabeth  Uellendahl,  who  joined the New York City
Employees' Retirement System as a Tier II, Plan C member on July 6, 1982
and who when added to her prior credited service of 6.54 years that  was
transferred from the New York State Employees' Retirement System, earned
a total of 12.05 years of credited service, but for reasons not ascriba-
ble  to  her own negligence failed to file the appropriate form to with-
draw from Plan C and switch to Plan D to become eligible  for  a  vested
retirement  benefit.   She will have one year from the date of enactment
to file the appropriate form to effect the switch from Plan C to Plan D.
  S 2. This act shall take effect immediately.
  FISCAL NOTE.-- The proposed legislation refers to Ms.   Beavan  having
transferred  service  from  the  New  York  State  Employees' Retirement
System. The official name of the Retirement System from which she trans-
ferred is the New York State and Local Employees' Retirement System.
  PROVISIONS OF PROPOSED LEGISLATION:  The  proposed  legislation  would
authorize  the  New York City Employees' Retirement System ("NYCERS") to
accept an application from Elisabeth Beavan to switch from the  Modified
Career Pension Plan ("Plan C") to the Modified 55-Year Increased Service
Fractional Plan ("Plan D").

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09416-02-5

              

S. 4335                             2                            A. 6088

  BACKGROUND:  Ms. Beavan became a member of NYCERS on July 6, 1982. She
became a Tier 2 member as a result  of  a  transfer  of  6.54  years  of
service earned while a member of the New York State and Local Employees'
Retirement System and elected to participate in NYCERS Plan C.
  Administrative  Code  of  the City of New York ("ACNY") Section 13-173
provides that an individual must be a member of Plan D at  the  time  of
discontinuance  from  city-service  in order to be eligible for a vested
benefit under Plan D. Since Ms. Beavan never filed the appropriate  form
to  withdraw from Plan C and switch to Plan D, she is not eligible for a
vested benefit and she is only eligible to receive a return of her accu-
mulated member contributions.
  The proposed legislation, if enacted, would authorize NYCERS to accept
an application from Ms. Beavan within one year from the date  of  enact-
ment  to  switch  from Plan C to Plan D as if it had been filed prior to
her date of resignation.
  The Effective Date of the proposed legislation would be  the  Date  of
Enactment.
  FINANCIAL  IMPACT  - ACTUARIAL PRESENT VALUES: The estimated financial
impact has been calculated based on the difference between  the  sum  of
(1)  the  prospective  benefits  plus  (2)  the retroactive benefits Ms.
Beavan would receive if this proposed legislation were enacted  and  (3)
the benefits Ms. Beavan would otherwise be entitled to receive.
  The  difference  in  estimated costs is intended to provide a sense of
the ultimate financial impact.
  If the legislation were to be enacted, Ms. Beavan would be entitled to
a pension of $11,930 per year beginning  September  18,  2012  (age  62)
under  the  maximum  payout option. If the legislation were not enacted,
Ms.  Beavan would only be entitled to a refund of her accumulated member
contributions.
  Based on the actuarial assumptions and methods described  herein,  the
enactment  of  this  proposed  legislation  would increase the Actuarial
Present Value ("APV") of Benefits ("APVB") and  the  Unfunded  Actuarial
Accrued  Liability  ("UAAL")  of  NYCERS by approximately $166,000 as of
June 30, 2015, calculated as (1) plus (2) less (3);
  (1) APV of future pension payments beginning July 2015 of approximate-
ly $140,000
  (2) Accumulated value of retroactive pension payments  from  September
2012 through June 2015 of approximately $33,000
  (3)  Refund  of  accumulated  member  contributions  of  approximately
$7,000.
  FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS AND  ANNUAL  EMPLOYER
COSTS:  In  accordance  with Section 13.638.2(k-2) of the Administrative
Code of the City of New York ("ACNY"), new UAAL attributable to  benefit
changes  are  to be amortized as determined by the Actuary but generally
over the remaining working lifetime of those  impacted  by  the  benefit
changes.
  For  this  proposed  legislation, Ms. Beavan is inactive and therefore
the entire increase in UAAL as of June 30, 2015 of $166,000 based on the
Actuary's current actuarial assumptions and methods should be recognized
in the first year for contribution purposes.
  The increase in employer costs would be comparable to the increase  in
employer contributions.
  CONTRIBUTION  TIMING:  If  enacted during the 2015 Legislative Session
and if her application for switching to Plan D were filed on  or  before
June  30,  2015,  her  status  as a Plan D Retiree would likely first be
reflected in the June 30, 2015 census data. In accordance with the  One-

S. 4335                             3                            A. 6088

Year Lag methodology used to determine employer contributions, increased
employer  contributions  would be consistent with the increased employer
costs and would be determined for Fiscal Year 2017.
  If enacted during the 2015 Legislative Session, and if her application
for  switching to Plan D were filed after June 30, 2015 but on or before
June 30, 2016, her status as a Plan D  Retiree  would  likely  first  be
reflected  in  the  June  30,  2016  census  data and increased employer
contributions would be determined for Fiscal Year 2018.
  ACTUARIAL ASSUMPTIONS  AND  METHODS:  The  additional  APVB  and  UAAL
presented herein have been calculated based on the actuarial assumptions
and  methods  in effect for the June 30, 2013 (Lag) actuarial valuations
used to determine Fiscal Year 2015 employer contributions of NYCERS.
  ECONOMIC VALUES OF BENEFITS: The actuarial assumptions used to  deter-
mine  the financial impact of the proposed legislation discussed in this
Fiscal Note are those appropriate for budgetary models  and  determining
annual employer contributions to NYCERS.
  However,  the  economic  assumptions  that  are  used  for determining
employer contributions do not develop risk-adjusted, economic values  of
benefits.   Such risk-adjusted, economic values of benefits would likely
differ significantly from those developed by the budgetary models.
  STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Acting
Chief Actuary for the New York City Retirement Systems. I am a Fellow of
the Society of Actuaries and Member of the American Academy  of  Actuar-
ies. I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
during the 2015 Legislative Session. It is Fiscal  Note  2015-11,  dated
March 6, 2015 prepared by the Acting Chief Actuary for the New York City
Employees' Retirement System.