What's happening
This bill allows Hal Greenberg retroactive enrollment in the NYC Employees' Retirement System 55/25 plan for tier 4 members.
Why it matters
Sets a precedent for individual exceptions to public pension rules. by allowing one person, Hal Greenberg, to retroactively enroll in a more favorable retirement plan, the bill could open the door for similar requests from others who missed enrollment windows due to administrative errors or misunderstandings.
Shifts pension costs to taxpayers. the bill specifies that any resulting costs will be borne by the City of New York, increasing financial liability for the city and, by extension, its taxpayers, especially since the estimated increase in employer contributions is about $41,000 per year for six years.
Forgoes required employee contributions. the bill does not require Mr. Greenberg to pay the $23,000 in additional member contributions he would have owed had he originally been in the 55/25 plan, creating a special financial accommodation and setting a potential benchmark for future similar cases.
Demonstrates impact of administrative and legislative fixes on pension systems. the legislation highlights how administrative oversights or limited enrollment windows can have long-lasting impacts on individual retirement security, and how legislative action can be used to remedy such situations, but potentially at a significant cost.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Hal Greenberg
The bill would grant him retroactive membership in NYCERS’ Tier 4 55/25 plan if he applies within one year of its effective date.
New York City Employees’ Retirement System
NYCERS would process Greenberg’s application and treat him as having joined the plan when he could have enrolled in 1995.
New York City budget officials
The city would bear all costs, with the fiscal note estimating approximately $41,000 in additional annual employer contributions over five payments, assuming Greenberg does not pay $23,000 in additional member contributions.
Headline styles
Retroactive Pension for Greenberg
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 25
1 Co-sponsor
History
- Referred to governmental employees
- 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.
Grant Pension Plan to Employee
In Senate Committee · Civil Service And Pensions · Sponsor Tony Avella
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8348
2017-2018 Regular Sessions
IN ASSEMBLY
June 9, 2017
Introduced by M. of A. ROZIC -- read once and referred to the Committee on Governmental Employees
AN ACT granting retroactive membership in the 55/25 plan for tier 4 members in the New York city employees' retirement system to Hal Greenberg
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Notwithstanding any other law to the contrary, Hal Greenberg, who was employed by the New York city department of employment on June 28, 1995, and who is currently employed by the triborough bridge and tunnel authority and a tier 6 member of the New York city employees' retirement system, who through no fault of his own did not become a member of the New York city employees' retirement system's 55/25 plan for tier 4 members on June 28, 1995 when the New York city employee's retirement system offered a 90 day enrollment window into the 55/25 plan for tier 4 members shall be deemed to have been a member of the New York city employees' retirement system's 55/25 plan for tier 4 members on such date he could have enrolled and shall be granted membership into the 55/25 plan for tier 4 members, provided that an application is filed with the head of the New York city employees' retirement system within one year from the effective date of this act.
§ 2. All costs attributable to this act shall be borne by the city of New York.
§ 3. This act shall take effect immediately.
Fiscal Note. -- Pursuant to Legislative Law, Section 50:
PROVISIONS OF PROPOSED LEGISLATION: The proposed legislation would
authorize the New York City Employees' Retirement System (NYCERS) to
accept an application from Hal Greenberg within one year from the date
on which this proposed legislation is enacted to be granted membership
in the 55/25 Retirement Plan for Tier 4 Members (NYCERS 55/25 Plan) as
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06809-03-7
A. 8348 2
if he has elected to join that plan when it was originally offered to
him on June 28, 1995.
BACKGROUND: Mr. Greenberg initially joined the NYCERS 62/5 Retirement
Plan for Tier 4 members (NYCERS Tier 4 62/5 Plan) in 1989. In 2010 he
transferred his membership to the New York State and Local Retirement
System (NYSLRS). Later, in April 2013, he returned to City employment
and joined TBTA 20-Year/Age 50 Retirement Plan for Tier 6 Members (TBTA
50/20 Plan).
For purposes of this Fiscal Note we have assumed that Mr. Greenberg
will transfer his State membership back to NYCERS, giving him approxi-
mately 28 years of service in the NYCERS Tier 4 62/5 Plan (22 years of
NYCERS Tier 4 service, 3 years of NYSLRS and 3 years of NYCERS Tier 6
service) and that he will not make the additional employee contributions
he would have been required to make had he been a member of the NYCERS
55/25 plan.
The Effective Date of the proposed legislation would be the Date of
Enactment.
FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: The estimated financial
impact of this proposal as a June 30, 2016 has been calculated as
follows: (1) the benefits Mr. Greenberg would receive as a Tier 4 member
in the NYCERS 55/25 Plan if this proposed legislation were enacted, less
(2) the benefits Mr. Greenberg would be entitled to receive as a member
in the NYCERS Tier 4 62/5 Plan assuming he transfers his NYSLRS member-
ship to NYCERS.
As a Tier 4 member in the NYCERS 55/25 Plan Mr. Greenberg would have
been required to make additional member contributions of approximately
$49,000. Since he has made contributions of approximately $26,000 as a
NYCERS Tier 6 member in the TBTA 50/20 Plan, he would owe an additional
$23,000 to meet the required contribution amount as of June 30, 2016.
Based on the actuarial assumptions and methods described herein, and
assuming that Mr. Greenberg does not pay the additional member contrib-
utions of $23,000, the enactment of this proposed legislation would
increase the Actuarial Present Value (APV) of future employer contrib-
utions by approximately $142,000 as of June 30, 2016.
FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: 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 as a level dollar amount over
the remaining working lifetime of those impacted by the benefit changes.
Based on the Actuary's actuarial assumptions and methods in effect on
June 30, 2016 and amortizing the increase in the UAAL over Mr.
Greenberg's expected remaining working lifetime of 6 years (5 payments
under the one year lag methodology) results in an increase in employer
contributions of approximately $41,000 per year.
OTHER COSTS: Not measured in this Fiscal Note is the impact on admin-
istrative costs or Other Postemployment Benefit (OPEB) costs.
ACTUARIAL ASSUMPTIONS AND METHODS: All results presented herein have
been calculated based on the Actuary's actuarial assumptions and methods
in effect for the Preliminary June 30, 2016 (Lag) actuarial valuation
used to determine the Preliminary Fiscal Year 2018 employer contrib-
utions of NYCERS.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Pension Funds and Retire-
ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the
Conference of Consulting Actuaries and a Member of the American Academy
A. 8348 3
of Actuaries. I meet the Qualification Standards of the American Academy
of Actuaries to render the actuarial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2017-27 dated June 5,
2017, was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for use only during the
2017 Legislative Session.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.