S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9994

                          I N  A S S E M B L Y

                              June 6, 2014
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of 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 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").
  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13576-03-4
              

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  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  $153,000  as  of
June 30, 2014, calculated as (1) plus (2) less (3);
  (1) APV of future pension payments beginning July 2014 of approximate-
ly $139,000
  (2)  Accumulated  value of retroactive pension payments from September
2012 through June 2014 of approximately $21,000
  (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 based on the Actuary's actuarial assumptions
and  methods in effect on June 30, 2014 of $153,000 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 2014 Legislative Session
and if her application for switching to Plan D were filed on  or  before
June  30,  2014,  her  status  as a Plan D Retiree would likely first be
reflected in the June 30, 2014 census data. In accordance with the  One-
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 2016.
  If enacted during the 2014 Legislative Session, and if her application
for switching to Plan D were filed after June 30, 2014 but 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  and  increased  employer
contributions would be determined for Fiscal Year 2017.
  ACTUARIAL  ASSUMPTIONS  AND  METHODS:  The  additional  APVB  and UAAL
presented herein have been calculated based on the actuarial assumptions

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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 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 2014 Legislative Session. It is Fiscal  Note  2014-22,  dated
May 14, 2014 prepared by the Chief Actuary for the New York City Employ-
ees' Retirement System.