Grant Pension Plan to Employee

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

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD06809-02-7

S. 6372--A 2

in the 55/25 Retirement Plan for Tier 4 Members (NYCERS 55/25 Plan) as

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

S. 6372--A 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.