What's happening
This bill allows certain NYC Employees' Retirement System members to use excess retirement contributions to offset deficits in other contribution accounts upon retirement.
Why it matters
Reduces administrative hurdles and delays at retirement. by allowing excess contributions in one account (basic or additional) to automatically offset deficits in the other, minimizing paperwork, refund processing, and separate deficit payments.
Prevents unnecessary financial penalties. for retirees who may have minor shortfalls in one contribution category but overpaid in another, protecting their retirement benefits from actuarial reductions or delayed payouts.
Applies to a wide range of NYCERS members. in various special retirement plans (corrections, sanitation, transit, EMTs, etc.), meaning the change could streamline retirement processing for thousands of city employees across multiple agencies.
Does not change employer costs or benefit formulas. , so the measure is primarily about efficiency and fairness for members, without broader budgetary impacts for the city.
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Who cares
Headline styles
Let Retirees Offset Pension Shortfalls
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by S6460
- Ordered to third reading rules cal.619
- Rules report cal.619
- Reported
- Reported referred to rules
- Reference changed to ways and means
- Referred to governmental employees
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.
Let Retirees Offset Contribution Shortfalls
Signed by Governor · Sponsor Diane J. Savino
Full text
6 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8055
2017-2018 Regular Sessions
IN ASSEMBLY
May 25, 2017
Introduced by M. of A. ABBATE -- read once and referred to the Committee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to the definition of additional member contributions and basic member contributions for certain New York city employees' retirement system members who are subject to certain retirement plans under articles 14 and 15 of the retirement and social security law, to allow such additional member contributions to be used, to offset a deficit of basic member contributions, or to allow an excess of basic member contributions to offset a deficit of additional member contributions upon retirement
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (i) of paragraph 8 of subdivision e of section 504-a of the retirement and social security law, as amended by chapter 631 of the laws of 1993, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon) shall be paid into the contingent reserve fund of the retirement system of which the participant is a member and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section five hundred seventeen of this article or otherwise while he or she is a participant in the twenty-year retirement program or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 2. Subparagraph (i) of paragraph 12 of subdivision e of section 504-b of the retirement and social security law, as added by chapter 631 of the laws of 1993, is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11762-01-7
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(i) All additional member contributions required by this subdivision (and any interest thereon) which are received by the retirement system of which the participant is a member shall be paid into its contingent reserve fund and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section five hundred seventeen of this article or otherwise while he or she is a participant in the twenty-year retirement program for captains and above or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 3. Subparagraph (i) of paragraph 9 of subdivision e of section 504-d of the retirement and social security law, as added by chapter 622 of the laws of 2004, is amended to read as follows:
(i) All additional member contributions required by this subdivision (and any interest thereon) which are received by the retirement system of which the participant is a member shall be paid into its contingent reserve fund and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section five hundred seventeen of this article or otherwise while he or she is a participant in the twenty-year retirement program or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 4. Subdivision d of section 517 of the retirement and social security law, as added by chapter 890 of the laws of 1976, is amended to read as follows:
d. Notwithstanding any other provision of this article, a member shall be entitled to withdraw any excess contributions within six months of becoming subject to this article. Thereafter, such contributions, and interest thereon, may only be withdrawn upon separation from service. Upon retirement, such excess contributions, and any interest thereon, may be withdrawn in a single lump sum, or at the election of the member may be paid as an annuity under an option authorized pursuant to section five hundred fourteen of this article, or at the election of the participant may be used to offset a deficit of additional member contributions as required pursuant to sections five hundred four-a, five hundred four-b, and five hundred four-d of this article. The use of basic member contributions to offset a deficit of additional member contributions does not affect the contributions' tax designation pursuant to section 414(h) of the Internal Revenue Code.
§ 5. Subparagraph (i) of paragraph 8 of subdivision e of section 604-a of the retirement and social security law, as added by chapter 547 of the laws of 1992, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon) shall be paid into the contingent reserve fund of the retirement system of which the participant is a member and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the twenty-year retirement program or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent
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reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 6. Subparagraph (i) of paragraph 8 of subdivision e of section 604-b of the retirement and social security law, as added by chapter 529 of the laws of 1994, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon) shall be paid into the contingent reserve fund of the retirement system of which the participant is a member and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the twenty-five-year and age fiftyfive retirement program or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 7. Subparagraph (i) of paragraph 7 of 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 to read as follows:
(i) All additional member contributions required by this subdivision (and any interest paid thereon) which are received by the retirement system of which the participant is a member shall be paid into its contingent reserve fund and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the twenty-five-year early retirement program or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 8. Subparagraph (i) of paragraph 8 of subdivision e of section 604-c of the retirement and social security law, as added by chapter 472 of the laws of 1995, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon) shall be paid into the contingent reserve fund of the retirement system of which the participant is a member and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the twenty-year/age fifty retirement program or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 9. Subparagraph (i) of paragraph 6 of subdivision f of section 604-d of the retirement and social security law, as added by chapter 96 of the laws of 1995, is amended to read as follows:
(i) All additional member contributions required by this subdivision (and any interest paid thereon) which are received by the retirement system of which the participant is a member shall be paid into its contingent reserve fund and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the age fifty-seven retirement program or otherwise, except that, upon the participant's separation from city service
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as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 10. Subparagraph (i) of paragraph 10 of subdivision e of section 604-e of the retirement and social security law, as added by chapter 576 of the laws of 2000, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon) shall be paid into the contingent reserve fund of the retirement system of which the participant is a member and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the twenty-five year retirement program or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 11. Subparagraph (i) of paragraph 10 of subdivision e of section 604-e of the retirement and social security law, as added by chapter 577 of the laws of 2000, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon) shall be paid into the contingent reserve fund of the retirement system of which the participant is a member and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the twenty-five year retirement program or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 12. Subparagraph (i) of paragraph 10 of subdivision e of section 604-f of the retirement and social security law, as added by chapter 559 of the laws of 2001, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon) shall be paid into the contingent reserve fund of the retirement system of which the participant is a member and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the twenty-five year retirement program or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 13. Subparagraph (i) of paragraph 10 of subdivision e of section 604-f of the retirement and social security law, as added by chapter 582 of the laws of 2001, is amended to read as follows:
(i) Such additional member contributions, and any interest thereon, shall be paid into the contingent reserve fund of the retirement system of which the participant is a member and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the twenty-five year retirement program or otherwise, except that, upon the participant's separation
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from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 14. Subparagraph (i) of paragraph 10 of subdivision e of section 604-g of the retirement and social security law, as added by chapter 414 of the laws of 2002, is amended to read as follows:
(i) Such additional member contributions (and any interest thereon) shall be paid into the contingent reserve fund of the retirement system of which the participant is a member and shall not for any purpose be deemed to be member contributions or accumulated contributions of a member under section six hundred thirteen of this article or otherwise while he or she is a participant in the twenty-five year/age fifty retirement program or otherwise, except that, upon the participant's separation from city service as a result of retirement, a surplus of such additional member contributions that are paid into the retirement system's contingent reserve fund may be used for the sole purpose of offsetting a deficit of basic member contributions.
§ 15. Subparagraph (i) of paragraph 10 of subdivision e of section 604-h of the retirement and social security law, as added by chapter 682 of the laws of 2003, is amended to read as follows:
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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