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History
- Substituted by A10372
- Advanced to third reading
- Amended (t) 7594a
- 2nd report cal.
- 1st report cal.1190
- Referred to cities
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the rate of regular interest used in the actuarial valuation of liabilities for the purpose of calculating contributions to retirement systems
Signed by Governor · Sponsor Peter Abbate
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
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 valuation 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 obligors required to make employer contributions to such retirement systems, the crediting of special interest and additional interest to members of such retirement systems, and the allowance of supplementary interest on the funds of such retirement systems
Summary of provisions
This bill would extend for one fiscal year, until June 30, 2017, the current 7% per annum statutory rate of interest used by the Chief Actuary for the New York City Employees' Retirement System, Teachers' Retirement System, Board of Education Retirement System, Police Pension Fund and Fire Department Pension Fund ("City retirement systems") in valuing retirement system liabilities for the purpose of computing the amount of employer contributions to those systems. The bill also would extend for that same period of time the current rates of supplementary interest, special interest and additional interest which, in effect, govern the amount of interest to be paid into certain constituent funds of the City retirement systems, and the amount of interest to be credited on accumulated member contributions and increased-take-home-pay reserves of tier I and 2 members of those retirement systems. The current five-year period ending on June 30, 2016 for the valuation rate of interest, as well as the rates of supplementary interest, special interest and additional interest, was enacted by Chapter 3 of the Laws of 2013, which also established the current valuation rate of interest and the current rate of supplementary interest. The current rat es of special and additional interest were enacted by Chapter 152 of the Laws of 2006 for the five-year period ending on June 30, 2009, and have been extended, most recently until June 30, 2016 by Chapter 3 of the Laws of 2013.
Reasons for support
The current rates of interest are effective for the period ending June 30, 2016, and expire as of July 1, 2016. The City of New York recommends a one-year extension of the current valuation rate of interest and the accompanying rates of supplementary, special and additional interest be enacted. The Chief Actuary has advised that she does not currently intend to recommend any change in these rates for the period ending on June 30, 2017. It should be noted that the Legislature enacted similar one-year extensions of such interest rates for the City retirement systems in 1990, 1995, 2004, 2005, 2009, 2010 and 2011. See Chapter 878 of the Laws of 1990, Chapter 642 of the Laws of 1995, Chapter 133 of the Laws of 2004, Chapter 133 of the Laws of 2005, Chapter 211 of the Laws of 2009, Chapter 265 of the Laws of 2010 and Chapter 180 of the Laws of 2011, respectively. Since this bill would continue the existing valuation rate of interest and the existing rates of special, additional and supplementary interest, its enactment would not change the amount or timing of expected employer contributions.
Fiscal impact
See legislation
Effective date
July 1, 2016, and shall be deemed to be in full force and effect on 7/1/2016 if enacted subsequent to such date
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.