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April 29, 2017
Tier 5 Pension Reform signed into law 12/10/2013
 S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

           S. 26                                                      A. 26

                            Twentieth Extraordinary Session

                             S E N A T E - A S S E M B L Y

                                   December 2, 2009
                                      ___________

       IN  SENATE  --  Introduced  by  COMMITTEE ON RULES -- (at request of the
         Governor) -- read twice and ordered printed, and when  printed  to  be
         committed to the Committee on Rules

       IN  ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M. of
         A. Silver, Abbate, Arroyo, Clark, Destito, Englebright, Fields, Galef,
         Hooper, Kellner, Morelle,  Paulin,  Peoples-Stokes,  Sweeney,  Thiele,
         Zebrowski)  --  (at request of the Governor) -- read once and referred
         to the Committee on Ways and Means

       AN ACT to amend the retirement and social security law, in  relation  to
         establishing  police  and  fire  retirement  provisions;  to amend the
         retirement and social security law and chapter  625  of  the  laws  of
         1975,  amending the retirement and social security law relating to the
         extension of temporary rights and benefits, in relation to making  the
         coordinated-escalator  retirement  plan and the coordinated retirement
         plan permanent; to amend the civil service law, in relation to extend-
         ing the expiration of public arbitration of  disputes  between  public
         employers and employee organizations (Part A); to amend the retirement
         and  social security law and the general municipal law, in relation to
         persons joining a public retirement system  on  or  after  January  1,
         2010; and to amend chapter 729 of the laws of 1994 relating to affect-
         ing the health insurance benefits and contributions of retired employ-
         ees of school districts and certain boards, in relation to eliminating
         the  expiration  of  the provisions thereof (Part B); and to amend the
         retirement and social security law, the  administrative  code  of  the
         city of New York and the education law, in relation to new entrants to
         the  New  York  city teachers' retirement system and the New York city
         board of education retirement system (Part C)

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD12149-15-9
       S. 26                               2                              A. 26

    1    Section 1. This act enacts into law legislation relating to retirement
    2  for  newly  hired employees. Each component is wholly contained within a
    3  Part identified as Parts A  through  C.  The  effective  date  for  each
    4  particular provision contained within such Part is set forth in the last
    5  section  of  such  Part. Any provision in any section contained within a
    6  Part, including the effective date of the Part, which makes reference to
    7  a section "of this act", when used in connection  with  that  particular
    8  component,  shall  be  deemed  to  mean  and  refer to the corresponding
    9  section of the Part in which it is found.   Section three  of  this  act
   10  sets forth the general effective date of this act.

   11                                   PART A

   12    Section 1. The retirement and social security law is amended by adding
   13  a new article 22 to read as follows:
   14                                 ARTICLE 22
   15                    POLICE AND FIRE RETIREMENT PROVISIONS
   16  SECTION 1200. DEFINITIONS.
   17          1201. APPLICABILITY.
   18          1202. VESTING.
   19          1203. OVERTIME.
   20          1204. MEMBER CONTRIBUTIONS.
   21          1205. RECALCULATION OF BENEFITS.
   22          1206. CONFLICTING PROVISIONS.
   23    S 1200. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE THE TERMS:
   24    A. "MEMBER" SHALL MEAN A PERSON WHO IS EMPLOYED AS A POLICE OFFICER OR
   25  FIREFIGHTER  BY ANY EMPLOYER WHO FIRST JOINS THE RETIREMENT SYSTEM ON OR
   26  AFTER JANUARY FIRST, TWO THOUSAND TEN.
   27    B. "RETIREMENT SYSTEM" SHALL MEAN THE NEW YORK STATE AND LOCAL  POLICE
   28  AND FIRE RETIREMENT SYSTEM.
   29    S  1201.  APPLICABILITY.   NOTWITHSTANDING ANY PROVISION OF LAW TO THE
   30  CONTRARY, THE PROVISIONS OF THIS ARTICLE  SHALL  BE  APPLICABLE  TO  ALL
   31  EMPLOYEES  IN  THE  RETIREMENT SYSTEM WHO FIRST JOINED SUCH SYSTEM ON OR
   32  AFTER JANUARY FIRST, TWO THOUSAND TEN.
   33    S 1202. VESTING. A. IN ORDER TO QUALIFY FOR A SERVICE RETIREMENT BENE-
   34  FIT, MEMBERS SUBJECT TO THE PROVISIONS OF THIS ARTICLE MUST HAVE A MINI-
   35  MUM OF TEN YEARS OF CREDITABLE SERVICE.
   36    B. IN COMPUTING THE YEARS OF TOTAL CREDITABLE  SERVICE  OF  A  MEMBER,
   37  FULL  CREDIT  SHALL BE GIVEN FOR MILITARY SERVICE AS DEFINED IN SUBDIVI-
   38  SIONS TWENTY-NINE-A AND THIRTY OF SECTION  THREE  HUNDRED  TWO  OF  THIS
   39  CHAPTER.
   40    S  1203. OVERTIME. A MEMBER'S FINAL AVERAGE SALARY SHALL BE CALCULATED
   41  IN ACCORDANCE WITH SUCH PROVISIONS OF ARTICLE EIGHT OR ARTICLE ELEVEN OF
   42  THIS CHAPTER AS GOVERN THE MEMBER'S BENEFITS, EXCEPT THAT EARNINGS CLAS-
   43  SIFIED AS OVERTIME COMPENSATION  IN  AN  AMOUNT  IN  EXCESS  OF  FIFTEEN
   44  PERCENT  OF  A  MEMBER'S ANNUAL WAGES NOT CLASSIFIED AS OVERTIME COMPEN-
   45  SATION SHALL BE EXCLUDED FROM SUCH CALCULATION.  "OVERTIME COMPENSATION"
   46  SHALL MEAN, FOR PURPOSES OF THIS SECTION, COMPENSATION  PAID  UNDER  ANY
   47  LAW  OR  POLICY  UNDER  WHICH  EMPLOYEES ARE PAID AT A RATE GREATER THAN
   48  THEIR STANDARD RATE FOR ADDITIONAL HOURS WORKED BEYOND  THOSE  REQUIRED,
   49  INCLUDING COMPENSATION PAID UNDER SECTION ONE HUNDRED THIRTY-FOUR OF THE
   50  CIVIL SERVICE LAW AND SECTION NINETY OF THE GENERAL MUNICIPAL LAW.
   51    S   1204.  MEMBER  CONTRIBUTIONS.  MEMBERS  WHO  ARE  SUBJECT  TO  THE
   52  PROVISIONS OF THIS ARTICLE SHALL  CONTRIBUTE  THREE  PERCENT  OF  ANNUAL
   53  WAGES  TO  THE  RETIREMENT SYSTEM IN WHICH THEY HAVE MEMBERSHIP. MEMBERS
   54  WHO ARE ENROLLED IN A RETIREMENT PLAN THAT LIMITS THE AMOUNT OF CREDITA-
       S. 26                               3                              A. 26

    1  BLE SERVICE A MEMBER CAN ACCRUE SHALL NOT BE REQUIRED TO  MAKE  CONTRIB-
    2  UTIONS  PURSUANT  TO  THIS  SECTION AFTER ACCRUING THE MAXIMUM AMOUNT OF
    3  SERVICE CREDIT  ALLOWED  BY  THE  RETIREMENT  PLAN  IN  WHICH  THEY  ARE
    4  ENROLLED. THE STATE COMPTROLLER SHALL PROMULGATE SUCH REGULATIONS AS MAY
    5  BE  NECESSARY  AND  APPROPRIATE  WITH  RESPECT  TO THE DEDUCTION OF SUCH
    6  CONTRIBUTION FROM MEMBERS' WAGES AND FOR THE MAINTENANCE OF ANY  SPECIAL
    7  FUND  OR  FUNDS WITH RESPECT TO AMOUNTS SO CONTRIBUTED.  IN NO WAY SHALL
    8  THE MEMBER CONTRIBUTIONS MADE  PURSUANT  TO  THIS  SECTION  BE  USED  TO
    9  PROVIDE FOR PENSION INCREASES OR ANNUITIES OF ANY KIND.
   10    S 1205. RECALCULATION OF BENEFITS. NOTWITHSTANDING ANY OTHER PROVISION
   11  OF  LAW, ANY MEMBER WHO HAS JOINED THE RETIREMENT SYSTEM PURSUANT TO THE
   12  PROVISIONS OF ARTICLE FOURTEEN OF THIS CHAPTER ON OR AFTER  JULY  FIRST,
   13  TWO  THOUSAND  NINE  MAY  ELECT  TO  HAVE HIS OR HER RETIREMENT BENEFITS
   14  CALCULATED PURSUANT TO THIS ARTICLE BY FILING WITHIN ONE HUNDRED  TWENTY
   15  DAYS  OF  THE  EFFECTIVE  DATE OF THIS SECTION A REQUEST FOR SUCH CALCU-
   16  LATION WITH THE RETIREMENT SYSTEM IN THE FORM AND MANNER  PRESCRIBED  BY
   17  THE STATE COMPTROLLER.
   18    S  1206.  CONFLICTING PROVISIONS. EXCEPT AS OTHERWISE PROVIDED IN THIS
   19  ARTICLE, OR IN CONFLICT THEREWITH, THE PROVISIONS OF ARTICLE  ELEVEN  OF
   20  THIS  CHAPTER,  INCLUDING ANY PLAN THAT HAS BEEN ELECTED BY THE EMPLOYER
   21  OR IS OTHERWISE APPLICABLE UNDER ARTICLE EIGHT  OF  THIS  CHAPTER  SHALL
   22  GOVERN THE RETIREMENT BENEFITS PROVIDED UNDER THIS ARTICLE. IN THE EVENT
   23  OF  ANY  CONFLICT  BETWEEN  THE PROVISIONS OF THIS ARTICLE AND ANY OTHER
   24  PROVISION OF LAW, THIS ARTICLE SHALL GOVERN.
   25    S 2. Subdivision c of section 440 of the retirement and social securi-
   26  ty law, as amended by chapter 63 of the laws of 2007, is amended to read
   27  as follows:
   28    c. Notwithstanding any other provision  of  law,  the  provisions  and
   29  limitations  of  this article shall apply, as may be appropriate, to all
   30  police officers and firefighters who last  joined  a  public  retirement
   31  system  of  the state or a municipality thereof, on or after July first,
   32  nineteen hundred seventy-six, but prior  to  July  first,  two  thousand
   33  nine,  AND ALL EMPLOYEES SUBJECT TO THE PROVISIONS OF ARTICLE TWENTY-TWO
   34  OF THIS CHAPTER; PROVIDED, HOWEVER, THAT  IN  THE  CASE  OF  A  CONFLICT
   35  BETWEEN  THE  PROVISIONS  OF THIS ARTICLE AND ARTICLE TWENTY-TWO OF THIS
   36  CHAPTER, THE PROVISIONS OF ARTICLE TWENTY-TWO SHALL BE CONTROLLING.
   37    S 3. Intentionally omitted.
   38    S 4. Section 470 of the retirement and social security law, as amended
   39  by chapter 79 of the laws of 2009, is amended to read as follows:
   40    S 470. Temporary suspension of retirement  negotiations.  [Until  July
   41  first,  two  thousand  eleven,  changes]  CHANGES negotiated between any
   42  public employer and public  employee,  as  such  terms  are  defined  in
   43  section  two  hundred  one of the civil service law, with respect to any
   44  benefit provided by or to be provided by a public retirement system,  or
   45  payments  to  a  fund  or  insurer  to provide an income for retirees or
   46  payment to retirees or their beneficiaries, shall be prohibited.  [Ther-
   47  eafter, such changes shall be made only pursuant to negotiations between
   48  public employers and public employees conducted  on  a  coalition  basis
   49  pursuant  to the provisions of this article; provided, however, any such
   50  changes not requiring approval by act of the legislature may  be  imple-
   51  mented  prior  to  July  first,  two thousand eleven, if negotiated as a
   52  result of collective bargaining authorized by section six of chapter six
   53  hundred twenty-five of the laws of nineteen hundred seventy-five.]
   54    S 5. Section 480 of the retirement and social security law, as amended
   55  by chapter 79 of the laws of 2009, is amended to read as follows:
       S. 26                               4                              A. 26

    1    S 480. Extension of temporary benefits and  supplementation  programs.
    2  a.    Every  temporary right, privilege or benefit conferred pursuant to
    3  the provisions of a general, special or local law (other  than  pursuant
    4  to  articles  fourteen  and fifteen of this chapter) for any member of a
    5  public  retirement  system or pension plan funded by the state or one of
    6  its political subdivisions, which is scheduled to expire or terminate at
    7  any time during nineteen hundred seventy-four, nineteen  hundred  seven-
    8  ty-five,  nineteen  hundred seventy-six, nineteen hundred seventy-seven,
    9  nineteen hundred seventy-eight, nineteen hundred seventy-nine,  nineteen
   10  hundred  eighty,  nineteen  hundred eighty-one, nineteen hundred eighty-
   11  two, nineteen hundred eighty-three, nineteen hundred eighty-four,  nine-
   12  teen  hundred eighty-five, nineteen hundred eighty-six, nineteen hundred
   13  eighty-seven, nineteen hundred eighty-eight,  nineteen  hundred  eighty-
   14  nine,  nineteen  hundred  ninety,  nineteen hundred ninety-one, nineteen
   15  hundred ninety-two,  nineteen  hundred  ninety-three,  nineteen  hundred
   16  ninety-four,  nineteen hundred ninety-five, nineteen hundred ninety-six,
   17  nineteen hundred ninety-seven, nineteen hundred  ninety-eight,  nineteen
   18  hundred  ninety-nine,  two thousand, two thousand one, two thousand two,
   19  two thousand three, two thousand four, two thousand five,  two  thousand
   20  six,  two  thousand  seven,  two  thousand eight, two thousand nine, two
   21  thousand ten or two thousand eleven,  is  hereby  extended  [until  July
   22  first,  two  thousand  eleven],  notwithstanding  the provisions of such
   23  general, special or local law.  Notwithstanding the  foregoing,  nothing
   24  in  this  section shall be construed to extend the provisions of article
   25  eighteen of this chapter or to affect any statutory  deadlines  provided
   26  in such article.
   27    b.  (i)  Any  program  under  which an employer in a public retirement
   28  system funded by the state or one of its political subdivisions  assumes
   29  all  or  part  of  the contribution which would otherwise be made by its
   30  employees toward retirement, which expires or terminates during nineteen
   31  hundred seventy-four, is hereby extended [until July first, two thousand
   32  eleven], notwithstanding the provisions of any other general, special or
   33  local law, except that commencing with the payroll period the first  day
   34  of which is nearest to January first, nineteen hundred seventy-six[, and
   35  until  July  first,  two thousand eleven], the rate of such contribution
   36  assumed by an employer in any of the public  retirement  systems  funded
   37  and  maintained  by  a city, shall be one-half the rate of such contrib-
   38  ution assumed by such employer for  the  immediately  preceding  payroll
   39  period except as provided in paragraph (ii) of this subdivision.
   40    (ii)  Commencing  with the first payroll period the first day of which
   41  is subsequent to October first, two thousand [and until July first,  two
   42  thousand  eleven],  the rate of such contribution assumed by an employer
   43  in the New York city police pension fund and in the New York  city  fire
   44  department pension fund shall be equal to the rate of such contributions
   45  assumed by such employer for the payroll period preceding January first,
   46  nineteen hundred seventy-six.
   47    c.  All  supplemental  retirement  allowances or supplemental pensions
   48  paid to pensioners or beneficiaries of any retirement  system  supported
   49  in  whole  or  in  part by the state or a political subdivision thereof,
   50  which are scheduled to expire at any time during nineteen hundred seven-
   51  ty-five, nineteen hundred seventy-six, nineteen  hundred  seventy-seven,
   52  nineteen  hundred seventy-eight, nineteen hundred seventy-nine, nineteen
   53  hundred eighty, nineteen hundred eighty-one,  nineteen  hundred  eighty-
   54  two,  nineteen hundred eighty-three, nineteen hundred eighty-four, nine-
   55  teen hundred eighty-five, nineteen hundred eighty-six, nineteen  hundred
   56  eighty-seven,  nineteen  hundred  eighty-eight, nineteen hundred eighty-
       S. 26                               5                              A. 26

    1  nine, nineteen hundred ninety,  nineteen  hundred  ninety-one,  nineteen
    2  hundred  ninety-two,  nineteen  hundred  ninety-three,  nineteen hundred
    3  ninety-four, nineteen hundred ninety-five, nineteen hundred  ninety-six,
    4  nineteen  hundred  ninety-seven, nineteen hundred ninety-eight, nineteen
    5  hundred ninety-nine, two thousand one, two thousand  two,  two  thousand
    6  three, two thousand four, two thousand five, two thousand six, two thou-
    7  sand  seven,  two thousand eight, two thousand nine, two thousand ten or
    8  two thousand  eleven,  shall  be  continued  [for  an  additional  year]
    9  notwithstanding any other provision of any general, special or local law
   10  provided,  however,  that all such supplemental retirement allowances or
   11  supplemental pensions which are scheduled to expire at any  time  during
   12  two thousand nine shall be continued [for two additional years] notwith-
   13  standing any other provisions of any general, special or local law.
   14    S 6. Section 615 of the retirement and social security law, as amended
   15  by chapter 79 of the laws of 2009, is amended to read as follows:
   16    S  615. Duration. Notwithstanding any other provisions of this chapter
   17  or of any other law, the provisions of article fourteen of this  chapter
   18  shall  [expire  on  June  thirtieth,  two thousand eleven, but shall] no
   19  longer apply to members to whom this article applies on the date article
   20  fifteen of this chapter becomes effective, provided, however, any member
   21  who has retired pursuant to the provisions of article fourteen  of  this
   22  chapter  before the effective date of this article or any beneficiary of
   23  such a member or a beneficiary of a member who dies before the effective
   24  date of this article and who is entitled to a death benefit pursuant  to
   25  article fourteen of this chapter shall receive such benefits pursuant to
   26  the  provisions  of article fourteen of this chapter, except as provided
   27  pursuant to the provisions of section  six  hundred  seventeen  of  this
   28  article.  [All  benefits  provided  by a public retirement system of the
   29  state shall continue with respect to members to which  this  article  is
   30  applicable only until June thirtieth, two thousand eleven.]
   31    S  7.  Section  6  of  chapter  625  of the laws of 1975, amending the
   32  retirement and social security law relating to the extension  of  tempo-
   33  rary  rights and benefits, as amended by chapter 79 of the laws of 2009,
   34  is amended to read as follows:
   35    S 6. Notwithstanding any inconsistent provisions of this act or of any
   36  general, special or local law, on and after July 1, 1975 [and up to  and
   37  including  June  30, 2011]: (a) a participating employer in the New York
   38  state and local employees' retirement system or the New York  state  and
   39  local police and fire retirement system and its employees shall continue
   40  to  have  the right to negotiate with respect to any benefit provided by
   41  or to be provided by such employer to such employees as members of  such
   42  system  and  not requiring approval by act of the legislature; and (b) a
   43  public authority or public benefit corporation which is  not  a  partic-
   44  ipating  employer  in the New York state and local employees' retirement
   45  system or the New York city employees' retirement system shall  continue
   46  to  have the right to negotiate with its employees with respect to bene-
   47  fits to be provided by such employer to such employees  upon  retirement
   48  and not requiring approval by act of the legislature.
   49    S  8. Notwithstanding any provision of law to the contrary, nothing in
   50  this act shall limit the eligibility of any member of an employee organ-
   51  ization to join a special retirement plan open to him or her pursuant to
   52  a collectively negotiated agreement with any state or  local  government
   53  employer,  where  such  agreement  is in effect on the effective date of
   54  this act and so long as such agreement  remains  in  effect  thereafter;
   55  provided, however, that any such eligibility shall not apply upon termi-
   56  nation  of  such  agreement  for  employees  otherwise  subject  to  the
       S. 26                               6                              A. 26

    1  provisions of article twenty-two of the retirement and  social  security
    2  law.
    3    S  9.  Paragraph  (d)  of  subdivision  4  of section 209 of the civil
    4  service law, as amended by chapter 28 of the laws of 2009, is amended to
    5  read as follows:
    6    (d) The provisions of  this  subdivision  shall  expire  [thirty-four]
    7  THIRTY-SIX  years  from  July first, nineteen hundred seventy-seven, AND
    8  HEREAFTER MAY BE RENEWED EVERY FOUR YEARS.
    9    S 9-a. Subdivision c of section 500 of the retirement and social secu-
   10  rity law, as added by chapter 890 of the laws of  1976,  is  amended  to
   11  read as follows:
   12    c.  If the comptroller certifies that the contribution rate under this
   13  article for any participating  employer  who  is  participating  on  the
   14  effective date hereof would be at least one percent higher than the rate
   15  which  would  be  applicable  to  such  employer  for an employee who is
   16  subject to article eleven of this chapter and who  was  hired  prior  to
   17  July first, nineteen hundred seventy-six, the provisions of this article
   18  shall  not  apply with respect to such participating employer, PROVIDED,
   19  HOWEVER THAT MEMBERS WHO FIRST JOIN THE NEW YORK STATE AND LOCAL  POLICE
   20  AND  FIRE  RETIREMENT SYSTEM ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN
   21  SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS ARTICLE. In  such  event,
   22  the  provisions of article eleven AND ARTICLE TWENTY-TWO OF THIS CHAPTER
   23  shall continue to be applicable to such participating employer  and  its
   24  employees,  as  provided in section four hundred fifty-one of this chap-
   25  ter. If, as a result of actuarial experience, such  employer's  contrib-
   26  ution  rate  should  increase  to the extent that it is not at least one
   27  percent lower than the contribution rate under this article, then,  upon
   28  certification  of  such  fact by the comptroller, the provisions of this
   29  subdivision shall no longer apply with respect to the employees of  such
   30  employer who thereafter first join or rejoin a public retirement system.
   31    S  10.  This act shall take effect on the thirtieth day after it shall
   32  have become a law.

   33                                   PART B

   34    Section 1. Subdivision 24 of section 501 of the retirement and  social
   35  security  law, as amended by chapter 891 of the laws of 1976, is amended
   36  to read as follows:
   37    24. "Wages" shall mean regular compensation earned by and  paid  to  a
   38  member  by a public employer, EXCEPT THAT FOR MEMBERS WHO FIRST JOIN THE
   39  STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER JANUARY  FIRST,
   40  TWO  THOUSAND  TEN,  OVERTIME COMPENSATION PAID IN ANY YEAR IN EXCESS OF
   41  THE OVERTIME CEILING, AS DEFINED  BY  THIS  SUBDIVISION,  SHALL  NOT  BE
   42  INCLUDED  IN  THE  DEFINITION  OF WAGES.   "OVERTIME COMPENSATION" SHALL
   43  MEAN, FOR PURPOSES OF THIS SECTION, COMPENSATION PAID UNDER ANY  LAW  OR
   44  POLICY UNDER WHICH EMPLOYEES ARE PAID AT A RATE GREATER THAN THEIR STAN-
   45  DARD  RATE  FOR ADDITIONAL HOURS WORKED BEYOND THOSE REQUIRED, INCLUDING
   46  COMPENSATION PAID UNDER SECTION ONE HUNDRED  THIRTY-FOUR  OF  THE  CIVIL
   47  SERVICE LAW AND SECTION NINETY OF THE GENERAL MUNICIPAL LAW.  THE "OVER-
   48  TIME  CEILING"  SHALL MEAN FIFTEEN THOUSAND DOLLARS PER ANNUM ON JANUARY
   49  FIRST, TWO THOUSAND TEN, AND SHALL BE INCREASED BY  THREE  PERCENT  EACH
   50  YEAR  THEREAFTER.  For  the  purpose  of  calculation a member's primary
   51  federal social security retirement or disability benefit,  wages  shall,
   52  in  any  calendar  year, be limited to the portion of the member's wages
   53  which would be subject to tax under section three thousand  one  hundred
   54  twenty-one  of the internal revenue code of nineteen hundred fifty-four,
       S. 26                               7                              A. 26

    1  or any predecessor or successor  provision  relating  thereto,  if  such
    2  member was employed by a private employer.
    3    S  2. Subdivisions a and b of section 502 of the retirement and social
    4  security law, as amended by chapter 389 of the laws of 1998, are amended
    5  to read as follows:
    6    a. A member who first joins a public retirement system of  this  state
    7  on  or  after  June thirtieth, nineteen hundred seventy-six shall not be
    8  eligible for service retirement benefits hereunder until such member has
    9  rendered a minimum of five years of creditable service after July first,
   10  nineteen hundred seventy-three, EXCEPT THAT A MEMBER WHO FIRST JOINS THE
   11  NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER  JANU-
   12  ARY FIRST, TWO THOUSAND TEN SHALL NOT BE ELIGIBLE FOR SERVICE RETIREMENT
   13  BENEFITS PURSUANT TO THIS ARTICLE UNTIL SUCH MEMBER HAS RENDERED A MINI-
   14  MUM OF TEN YEARS OF CREDITED SERVICE.
   15    b.  A member who previously was a member of a public retirement system
   16  of this state shall not be  eligible  for  service  retirement  benefits
   17  hereunder  until  such  member  has  rendered a minimum of five years of
   18  service which is creditable pursuant to section five hundred thirteen of
   19  this article. A MEMBER WHO FIRST JOINS THE  NEW  YORK  STATE  AND  LOCAL
   20  EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN
   21  SHALL  NOT  BE ELIGIBLE FOR SERVICE RETIREMENT BENEFITS PURSUANT TO THIS
   22  ARTICLE UNTIL SUCH MEMBER HAS RENDERED A MINIMUM OF TEN YEARS OF CREDIT-
   23  ED SERVICE.
   24    S 3. Subdivision c of section 504 of the retirement and social securi-
   25  ty law, as amended by chapter 174 of the laws of  1989,  is  amended  to
   26  read as follows:
   27    c.  The  early  service retirement benefit for general members, except
   28  for general members whose  early  retirement  benefit  is  specified  in
   29  subdivision  d  of this section, shall be the service retirement benefit
   30  specified in subdivision a or b of this section, as  the  case  may  be,
   31  without social security offset, reduced by one-fifteenth for each of the
   32  first two years by which early retirement precedes age sixty-two, plus a
   33  further  reduction  of:  (1)  one-thirtieth;  OR  (2)  ONE-TWENTIETH FOR
   34  MEMBERS WHO FIRST JOIN THE NEW YORK STATE AND LOCAL  EMPLOYEES'  RETIRE-
   35  MENT  SYSTEM  ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN, for each year
   36  by which early retirement precedes age  sixty.  At  age  sixty-two,  the
   37  benefit shall be reduced by fifty percent of the primary social security
   38  retirement  benefit,  as provided in section five hundred eleven of this
   39  article.
   40    S 4. Subdivision a of section 516 of the retirement and social securi-
   41  ty law, as amended by chapter 389 of the laws of  1998,  is  amended  to
   42  read as follows:
   43    a.  A  member who has five or more years of credited service OR TEN OR
   44  MORE YEARS OF CREDITED SERVICE FOR MEMBERS WHO FIRST JOIN THE  NEW  YORK
   45  STATE  AND LOCAL EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER JANUARY FIRST,
   46  TWO THOUSAND TEN upon termination of employment shall be entitled  to  a
   47  deferred vested benefit as provided herein.
   48    S 5. Subdivision l of section 601 of the retirement and social securi-
   49  ty  law, as added by chapter 414 of the laws of 1983, is amended to read
   50  as follows:
   51    l. "Wages" shall mean regular compensation earned by  and  paid  to  a
   52  member  by a public employer, EXCEPT THAT FOR MEMBERS WHO FIRST JOIN THE
   53  NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR  THE  NEW  YORK
   54  STATE  TEACHERS'  RETIREMENT SYSTEM ON OR AFTER JANUARY FIRST, TWO THOU-
   55  SAND TEN, OVERTIME COMPENSATION PAID IN ANY YEAR IN EXCESS OF THE  OVER-
   56  TIME  CEILING,  AS DEFINED BY THIS SUBDIVISION, SHALL NOT BE INCLUDED IN
       S. 26                               8                              A. 26

    1  THE DEFINITION OF  WAGES.    "OVERTIME  COMPENSATION"  SHALL  MEAN,  FOR
    2  PURPOSES  OF  THIS  SECTION,  COMPENSATION  PAID UNDER ANY LAW OR POLICY
    3  UNDER WHICH EMPLOYEES ARE PAID AT A RATE  GREATER  THAN  THEIR  STANDARD
    4  RATE  FOR  ADDITIONAL  HOURS  WORKED  BEYOND  THOSE  REQUIRED, INCLUDING
    5  COMPENSATION PAID UNDER SECTION ONE HUNDRED  THIRTY-FOUR  OF  THE  CIVIL
    6  SERVICE LAW AND SECTION NINETY OF THE GENERAL MUNICIPAL LAW.  THE "OVER-
    7  TIME  CEILING"  SHALL MEAN FIFTEEN THOUSAND DOLLARS PER ANNUM ON JANUARY
    8  FIRST, TWO THOUSAND TEN, AND SHALL BE INCREASED BY THREE PER  CENT  EACH
    9  YEAR THEREAFTER.
   10    S  6. Subdivisions a and b of section 602 of the retirement and social
   11  security law, as amended by chapter 389 of the laws of 1998, are amended
   12  to read as follows:
   13    a. A member who first joins a public retirement system of  this  state
   14  on or after July first, nineteen hundred seventy-six shall not be eligi-
   15  ble  for  service  retirement  benefits  hereunder until such member has
   16  rendered a minimum of five years of  credited  service,  EXCEPT  THAT  A
   17  MEMBER  WHO  FIRST JOINS THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIRE-
   18  MENT SYSTEM OR THE NEW YORK STATE  TEACHERS'  RETIREMENT  SYSTEM  ON  OR
   19  AFTER  JANUARY FIRST, TWO THOUSAND TEN SHALL NOT BE ELIGIBLE FOR SERVICE
   20  RETIREMENT BENEFITS PURSUANT TO  THIS  ARTICLE  UNTIL  SUCH  MEMBER  HAS
   21  RENDERED A MINIMUM OF TEN YEARS OF CREDITED SERVICE.
   22    b.  A member who previously was a member of a public retirement system
   23  of this state shall not be  eligible  for  service  retirement  benefits
   24  hereunder  until  such  member  has  rendered a minimum of five years of
   25  service which is credited pursuant to section six hundred nine  of  this
   26  article.   A MEMBER WHO FIRST JOINS THE NEW YORK STATE AND LOCAL EMPLOY-
   27  EES' RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM
   28  ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN SHALL NOT  BE  ELIGIBLE  FOR
   29  SERVICE  RETIREMENT  BENEFITS PURSUANT TO THIS ARTICLE UNTIL SUCH MEMBER
   30  HAS RENDERED A MINIMUM OF TEN YEARS OF CREDITED SERVICE.
   31    S 7. Subdivision a of section 603 of the retirement and social securi-
   32  ty law, as amended by section 3 of chapter 19 of the laws  of  2008,  is
   33  amended to read as follows:
   34    a.  The  service  retirement  benefit specified in section six hundred
   35  four of this article shall be payable to members who have met the  mini-
   36  mum  service  requirements  upon retirement and attainment of age sixty-
   37  two, other than members who are eligible for  early  service  retirement
   38  pursuant to subdivision c of section six hundred four-b of this article,
   39  subdivision c of section six hundred four-c of this article, subdivision
   40  d  of  section  six  hundred  four-d  of  this article, subdivision c of
   41  section six hundred four-e of this article, subdivision c of section six
   42  hundred four-f of this article, subdivision c  of  section  six  hundred
   43  four-g  of  this article, subdivision c of section six hundred four-h of
   44  this article or subdivision c of section  six  hundred  four-i  of  this
   45  article, provided, however, [a member who is a peace officer employed by
   46  the  unified  court system or] a member of a teachers' retirement system
   47  or the New York state and local employees' retirement system  WHO  FIRST
   48  JOINS SUCH SYSTEM BEFORE JANUARY FIRST, TWO THOUSAND TEN OR A MEMBER WHO
   49  IS  A  UNIFORMED  COURT OFFICER OR PEACE OFFICER EMPLOYED BY THE UNIFIED
   50  COURT SYSTEM may retire without reduction of his or her retirement bene-
   51  fit upon attainment of at least fifty-five years of age  and  completion
   52  of  thirty or more years of service, PROVIDED, HOWEVER, THAT A UNIFORMED
   53  COURT OFFICER OR PEACE OFFICER EMPLOYED BY THE UNIFIED COURT SYSTEM  WHO
   54  FIRST  BECOMES  A  MEMBER  OF  THE  NEW  YORK STATE AND LOCAL EMPLOYEES'
   55  RETIREMENT SYSTEM ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND  TEN  AND
   56  RETIRES  WITHOUT REDUCTION OF HIS OR HER RETIREMENT BENEFIT UPON ATTAIN-
       S. 26                               9                              A. 26

    1  MENT OF AT LEAST FIFTY-FIVE YEARS OF AGE AND  COMPLETION  OF  THIRTY  OR
    2  MORE YEARS OF SERVICE PURSUANT TO THIS SECTION SHALL BE REQUIRED TO MAKE
    3  THE  MEMBER  CONTRIBUTIONS  REQUIRED  BY  SUBDIVISION  F  OF SECTION SIX
    4  HUNDRED  THIRTEEN OF THIS ARTICLE FOR ALL YEARS OF CREDITED AND CREDITA-
    5  BLE SERVICE.
    6    S 8. Subdivision i of section 603 of the retirement and social securi-
    7  ty law, as amended by chapter 19 of the laws of 2008, is amended to read
    8  as follows:
    9    i. 1. A member of a teachers' retirement system or the New York  state
   10  and  local  employees' retirement system who has met the minimum service
   11  requirements but who has less than thirty years of credited service OR A
   12  MEMBER WHO FIRST JOINS THE NEW YORK STATE AND LOCAL  EMPLOYEES'  RETIRE-
   13  MENT  SYSTEM  OR  THE  NEW  YORK STATE TEACHERS' RETIREMENT SYSTEM ON OR
   14  AFTER JANUARY FIRST, TWO THOUSAND TEN may retire prior to normal retire-
   15  ment age, but no earlier than attainment of  age  fifty-five,  in  which
   16  event,  unless  such  person  is a member of the New York city teachers'
   17  retirement system who is otherwise eligible for early service retirement
   18  pursuant to subdivision c of section six hundred four-i of this article,
   19  the amount of his or her retirement benefit otherwise  computed  without
   20  optional  modification shall be reduced in accordance with the following
   21  schedule:
   22    (i) for each of the first  twenty-four  full  months  that  retirement
   23  predates  age sixty-two, one-half of one per centum per month; PROVIDED,
   24  HOWEVER, THAT FOR MEMBERS WHO FIRST JOIN THE NEW YORK  STATE  AND  LOCAL
   25  EMPLOYEES'  RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS' RETIREMENT
   26  SYSTEM ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN, SUCH  AMOUNTS  SHALL
   27  BE EQUAL TO ONE-FIFTEENTH PER YEAR; and
   28    (ii) for each full month that retirement predates age sixty, one-quar-
   29  ter of one per centum per month; PROVIDED, HOWEVER, THAT FOR MEMBERS WHO
   30  FIRST  JOIN THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR
   31  THE NEW YORK STATE TEACHERS'  RETIREMENT  SYSTEM  ON  OR  AFTER  JANUARY
   32  FIRST,  TWO  THOUSAND  TEN, SUCH AMOUNTS SHALL BE EQUAL TO ONE-TWENTIETH
   33  PER YEAR, but in no event shall retirement be permitted prior to attain-
   34  ment of age fifty-five.
   35    2. A member of the New York city employees' retirement system  or  the
   36  board of education retirement system of the city of New York who has met
   37  the minimum service requirement, but who is not (a) a participant in the
   38  twenty-five-year  early  retirement program, as defined in paragraph ten
   39  of subdivision a of section six hundred four-c of this article (as added
   40  by chapter ninety-six of the laws of nineteen hundred  ninety-five),  or
   41  (b)  a participant in the age fifty-seven retirement program, as defined
   42  in paragraph three of subdivision b of section  six  hundred  four-d  of
   43  this  article,  or  (c)  a  New  York  city transit authority member, as
   44  defined in paragraph one of subdivision a of section six hundred  four-b
   45  of  this  article,  may  retire  prior  to normal retirement age, but no
   46  earlier than attainment of age fifty-five, in which event,  unless  such
   47  person  is  a member of the board of education retirement system of such
   48  city who is otherwise eligible for early service retirement pursuant  to
   49  subdivision  c of section six hundred four-i of this article, the amount
   50  of his or her retirement benefit computed without optional  modification
   51  shall be reduced in accordance with the following schedule:
   52    (i)  for  each  of  the  first twenty-four full months that retirement
   53  predates age sixty-two, one-half of one per centum per month; and
   54    (ii) for each full month that retirement predates age sixty, one-quar-
   55  ter of one per centum per month, but in no  event  shall  retirement  be
   56  permitted prior to attainment of age fifty-five.
       S. 26                              10                              A. 26

    1    S  8-a.  Section  603  of  the  retirement  and social security law is
    2  amended by adding a new subdivision t to read as follows:
    3    T.  MEMBERS WHO JOIN THE NEW YORK STATE TEACHERS' RETIREMENT SYSTEM ON
    4  OR AFTER JANUARY FIRST, TWO THOUSAND TEN, SHALL BE  ELIGIBLE  TO  RETIRE
    5  WITHOUT REDUCTION OF HIS OR HER RETIREMENT BENEFIT UPON ATTAINMENT OF AT
    6  LEAST FIFTY-SEVEN YEARS OF AGE AND COMPLETION OF THIRTY OR MORE YEARS OF
    7  SERVICE.  MEMBERS WHO RETIRE PURSUANT TO THE PROVISIONS OF THIS SUBDIVI-
    8  SION SHALL BE REQUIRED TO MAKE  THE  MEMBER  CONTRIBUTIONS  REQUIRED  BY
    9  SUBDIVISION  G  OF  SECTION SIX HUNDRED THIRTEEN OF THIS ARTICLE FOR ALL
   10  YEARS OF CREDITED AND CREDITABLE SERVICE.
   11    S 8-b. Subdivisions a and b of  section  604  of  the  retirement  and
   12  social  security law, as amended by chapter 266 of the laws of 1998, are
   13  amended to read as follows:
   14    a. The service retirement benefit  at  normal  retirement  age  for  a
   15  member  with  less  than  twenty years of credited service, OR LESS THAN
   16  TWENTY-FIVE YEARS CREDITED SERVICE FOR A MEMBER WHO JOINS THE  NEW  YORK
   17  STATE  TEACHERS'  RETIREMENT SYSTEM ON OR AFTER JANUARY FIRST, TWO THOU-
   18  SAND TEN, shall be a retirement allowance equal to one-sixtieth of final
   19  average salary times years of credited service.
   20    b. The service retirement benefit  at  normal  retirement  age  for  a
   21  member   with  twenty  years  or  more  of  credited  service,  OR  WITH
   22  TWENTY-FIVE OR MORE YEARS CREDITED SERVICE FOR A MEMBER WHO FIRST  JOINS
   23  THE  NEW  YORK  STATE  TEACHERS'  RETIREMENT  SYSTEM ON OR AFTER JANUARY
   24  FIRST, TWO THOUSAND TEN, shall be a retirement allowance equal  to  one-
   25  fiftieth  of final average salary times years of credited service not in
   26  excess of thirty years.
   27    S 8-c. Paragraph 2 of subdivision b of section 609 of  the  retirement
   28  and social security law, as added by chapter 414 of the laws of 1983, is
   29  amended to read as follows:
   30    2.  Previous  service  credit  shall not be granted unless such member
   31  applies therefor and repays the amount refunded by a  public  retirement
   32  system  of  the  state  for  service rendered after July first, nineteen
   33  hundred seventy-six together with interest through the date of repayment
   34  at the rate of five percent per  annum  compounded  annually  and  three
   35  percent of the wages earned for service prior to that date together with
   36  interest  from July first, nineteen hundred seventy-six through the date
   37  of payment at the rate of five percent per annum compounded annually and
   38  three percent of the wages earned for service which predates the date of
   39  entry into the retirement system together with interest at the  rate  of
   40  five percent per annum compounded annually from the date of such service
   41  until  the  date  of payment. ANYTHING IN THIS PARAGRAPH TO THE CONTRARY
   42  NOTWITHSTANDING, IN ORDER TO OBTAIN CREDIT FOR PREVIOUS SERVICE, MEMBERS
   43  WHO FIRST JOIN THE NEW YORK STATE  TEACHERS'  RETIREMENT  SYSTEM  ON  OR
   44  AFTER  JANUARY  FIRST,  TWO  THOUSAND  TEN  SHALL PAY THREE AND ONE-HALF
   45  PERCENT OF WAGES EARNED FOR SERVICE WHICH PREDATES  THE  DATE  OF  ENTRY
   46  INTO  THE  RETIREMENT  SYSTEM TOGETHER WITH INTEREST AT THE RATE OF FIVE
   47  PERCENT PER ANNUM COMPOUNDED ANNUALLY FROM  THE  DATE  OF  SUCH  SERVICE
   48  UNTIL THE DATE OF PAYMENT.
   49    S 9. Subdivision a of section 612 of the retirement and social securi-
   50  ty  law,  as  amended  by chapter 659 of the laws of 1999, is amended to
   51  read as follows:
   52    a. A member who has five or more years of credited service, OR TEN  OR
   53  MORE  YEARS  OF  CREDITED  SERVICE FOR A MEMBER WHO FIRST JOINED THE NEW
   54  YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK  STATE
   55  TEACHERS' RETIREMENT SYSTEM ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN,
   56  upon termination of employment, other than a member who is entitled to a
       S. 26                              11                              A. 26

    1  deferred vested benefit pursuant to any other provision of this article,
    2  shall  be entitled to a deferred vested benefit at normal retirement age
    3  computed in accordance with the provisions of section six  hundred  four
    4  of  this  article.  A member of a teachers' retirement system or the New
    5  York state and local employees' retirement system who has five  or  more
    6  years  of credited service, OR TEN OR MORE YEARS OF CREDITED SERVICE FOR
    7  A MEMBER WHO FIRST BECOMES A MEMBER OF THE  NEW  YORK  STATE  AND  LOCAL
    8  EMPLOYEES'  RETIREMENT SYSTEM OR THE NEW YORK STATE TEACHERS' RETIREMENT
    9  SYSTEM ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN, upon termination  of
   10  employment  shall  be  entitled  to  a  deferred vested benefit prior to
   11  normal retirement age, but no earlier than age fifty-five,  computed  in
   12  accordance  with  the provisions of subdivision i of section six hundred
   13  three of this article.
   14    S 9-a. Section 613 of  the  retirement  and  social  security  law  is
   15  amended by adding two new subdivisions f and g to read as follows:
   16    F.  ANYTHING IN SUBDIVISION A OF THIS SECTION TO THE CONTRARY NOTWITH-
   17  STANDING A MEMBER EMPLOYED AS A UNIFORMED COURT OFFICER OR PEACE OFFICER
   18  IN THE UNIFIED COURT SYSTEM WHO FIRST JOINS THE NEW YORK STATE AND LOCAL
   19  EMPLOYEES' RETIREMENT SYSTEM ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN
   20  SHALL  CONTRIBUTE FOUR PERCENT OF ANNUAL WAGES TO THE NEW YORK STATE AND
   21  LOCAL EMPLOYEES' RETIREMENT SYSTEM. THE HEAD OF THE NEW YORK  STATE  AND
   22  LOCAL  EMPLOYEES' RETIREMENT SYSTEM SHALL PROMULGATE SUCH REGULATIONS AS
   23  MAY BE NECESSARY AND APPROPRIATE WITH RESPECT TO THE DEDUCTION  OF  SUCH
   24  CONTRIBUTION  FROM MEMBERS' WAGES AND FOR THE MAINTENANCE OF ANY SPECIAL
   25  FUND OR FUNDS WITH RESPECT TO AMOUNTS SO CONTRIBUTED.
   26    G.  MEMBERS WHO FIRST JOIN THE NEW  YORK  STATE  TEACHERS'  RETIREMENT
   27  SYSTEM  ON  OR  AFTER  JANUARY  FIRST, TWO THOUSAND TEN SHALL CONTRIBUTE
   28  THREE AND ONE-HALF PERCENT OF ANNUAL WAGES TO THE NEW YORK STATE  TEACH-
   29  ERS' RETIREMENT SYSTEM. THE HEAD OF THE NEW YORK STATE TEACHERS' RETIRE-
   30  MENT  SYSTEM  SHALL  PROMULGATE SUCH REGULATIONS AS MAY BE NECESSARY AND
   31  APPROPRIATE WITH RESPECT TO THE  DEDUCTION  OF  SUCH  CONTRIBUTION  FROM
   32  MEMBERS' WAGES AND FOR THE MAINTENANCE OF ANY SPECIAL FUND OR FUNDS WITH
   33  RESPECT TO AMOUNTS SO CONTRIBUTED.
   34    S  10.  Paragraph  1 of subdivision b of section 902 of the retirement
   35  and social security law, as amended by chapter 110 of the laws of  2000,
   36  is amended to read as follows:
   37    1.  An eligible employee (i) with a date of membership in a retirement
   38  system on or after July twenty-seventh, nineteen hundred seventy-six AND
   39  BEFORE JANUARY FIRST, TWO THOUSAND TEN, and (ii) who  has  ten  or  more
   40  years  of  membership  or  ten  or more years of credited service with a
   41  retirement system under the provisions of article fourteen or fifteen of
   42  this chapter shall not be required to contribute to a retirement  system
   43  pursuant  to  section  five hundred seventeen or six hundred thirteen of
   44  this chapter as of the cessation date.
   45    S 11. Intentionally omitted.
   46    S 12. Intentionally omitted.
   47    S 13. Section 90 of the general municipal law, as amended  by  chapter
   48  576 of the laws of 1964, is amended to read as follows:
   49    S  90.  Payment of overtime compensation to public officers or employ-
   50  ees.  The governing board of each municipal corporation or  other  civil
   51  division  or  political  subdivision of the state, or in the city of New
   52  York, the mayor, by ordinance, local law, resolution, order or rule, may
   53  provide for the payment of overtime compensation to any  or  all  public
   54  officers  except elective officers and those officers otherwise excluded
   55  by law and to any or all public employees under  their  jurisdiction  at
   56  the  regular  basic  pay rate of such officers or employees for all time
       S. 26                              12                              A. 26

    1  such officers or employees are required to work in excess of their regu-
    2  larly established hours of employment or at  such  other  rate  as  such
    3  governing  board,  or in the city of New York, the mayor, may authorize.
    4  The  amounts  received as overtime compensation under this section shall
    5  be regarded as salary or compensation for any of  the  purposes  of  any
    6  pension  or retirement system of which the officer or employee receiving
    7  the same is a member, EXCEPT AS SET FORTH IN SECTIONS FIVE HUNDRED  ONE,
    8  SIX  HUNDRED  ONE, AND TWELVE HUNDRED THREE OF THE RETIREMENT AND SOCIAL
    9  SECURITY LAW.  Such overtime compensation shall not be regarded as sala-
   10  ry or compensation for the purpose  of  determining  the  right  to  any
   11  increase  of  salary  or  any  salary  increment on account of length of
   12  service or otherwise. No such overtime compensation shall  be  construed
   13  to constitute a promotion.
   14    S 14. Section 1 of chapter 729 of the laws of 1994 relating to affect-
   15  ing the health insurance benefits and contributions of retired employees
   16  of  school districts and certain boards, as amended by chapter 30 of the
   17  laws of 2009, is amended to read as follows:
   18    Section 1. From on and after June 30, 1994 [until  May  15,  2010,]  a
   19  school  district,  board of cooperative educational services, vocational
   20  education and extension board or a  school  district  as  enumerated  in
   21  section  1  of  chapter  566  of  the laws of 1967, as amended, shall be
   22  prohibited from diminishing the health insurance  benefits  provided  to
   23  retirees  and  their  dependents  or  the  contributions  such  board or
   24  district makes for such health insurance coverage  below  the  level  of
   25  such benefits or contributions made on behalf of such retirees and their
   26  dependents  by  such district or board unless a corresponding diminution
   27  of benefits or contributions is effected from the present  level  during
   28  this  period  by  such district or board from the corresponding group of
   29  active employees for such retirees.

   30    S 15. Legislative intent. The legislature hereby  finds  and  declares
   31  its  intent,  in addition to the retirement benefit changes provided for
   32  in this act, to enact legislation, in conjunction  with  the  executive,
   33  which would offer a three-month period during calendar year 2010, during
   34  which  members  of  the collective bargaining unit of the New York State
   35  United Teachers ("NYSUT") within the New York state teachers  retirement
   36  system and the New York state and local employees' retirement system who
   37  have  reached  fifty-five  years of age and have accumulated twenty-five
   38  years of service as a member  of  either  such  retirement  system,  may
   39  retire early without penalty.
   40    S  16.  This act shall take effect January 1, 2010; provided, however,
   41  that the amendments to subdivision a of section 603  of  the  retirement
   42  and  social  security  law  made by section seven of this act, shall not
   43  affect the expiration of such subdivision and shall be deemed to  expire
   44  therewith.

   45                                   PART C

   46    Section  1.  Subdivisions a and b of section 602 of the retirement and
   47  social security law, as amended by chapter 389 of the laws of 1998,  are
   48  amended to read as follows:
   49    a. [A] EXCEPT AS PROVIDED IN SUBDIVISION B-1 OF THIS SECTION, A member
   50  who  first  joins  a  public retirement system of this state on or after
   51  July first, nineteen hundred  seventy-six  shall  not  be  eligible  for
   52  service  retirement  benefits hereunder until such member has rendered a
   53  minimum of five years of credited service.
       S. 26                              13                              A. 26

    1    b. [A] EXCEPT AS PROVIDED IN SUBDIVISION B-1 OF THIS SECTION, A member
    2  who previously was a member of a public retirement system of this  state
    3  shall  not  be  eligible for service retirement benefits hereunder until
    4  such member has rendered a minimum of five years  of  service  which  is
    5  credited pursuant to section six hundred nine of this article.
    6    S  2. Section 602 of the retirement and social security law is amended
    7  by adding a new subdivision b-1 to read as follows:
    8    B-1. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION  A  OR  B  OF  THIS
    9  SECTION  OR  ANY OTHER PROVISION OF LAW TO THE CONTRARY, (I) A MEMBER OF
   10  THE NEW YORK CITY TEACHERS'  RETIREMENT  SYSTEM  WHO  HOLDS  A  POSITION
   11  REPRESENTED  BY  THE  RECOGNIZED  TEACHER  ORGANIZATION  FOR  COLLECTIVE
   12  BARGAINING PURPOSES, AND WHO BECAME SUBJECT TO THE  PROVISIONS  OF  THIS
   13  ARTICLE  AFTER  THE EFFECTIVE DATE OF THIS SUBDIVISION, OR (II) A MEMBER
   14  OF THE NEW YORK CITY BOARD OF EDUCATION RETIREMENT SYSTEM  WHO  HOLDS  A
   15  POSITION  REPRESENTED BY THE RECOGNIZED TEACHER ORGANIZATION FOR COLLEC-
   16  TIVE BARGAINING PURPOSES, AND WHO BECAME SUBJECT TO  THE  PROVISIONS  OF
   17  THIS  ARTICLE AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, SHALL NOT BE
   18  ELIGIBLE FOR SERVICE RETIREMENT BENEFITS HEREUNDER UNTIL SUCH MEMBER HAS
   19  RENDERED A MINIMUM OF TEN YEARS OF CREDITED SERVICE.
   20    S 3. Subdivision a of section 612 of the retirement and social securi-
   21  ty law, as amended by chapter 659 of the laws of  1999,  is  amended  to
   22  read follows:
   23    a. [A] EXCEPT AS PROVIDED IN SUBDIVISION A-1 OF THIS SECTION, A member
   24  who  has  five  or  more  years  of credited service upon termination of
   25  employment, other than a member who is entitled  to  a  deferred  vested
   26  benefit  pursuant to any other provision of this article, shall be enti-
   27  tled to a deferred vested benefit at normal retirement age  computed  in
   28  accordance with the provisions of section six hundred four of this arti-
   29  cle. [A] EXCEPT AS PROVIDED IN SUBDIVISION A-1 OF THIS SECTION, A member
   30  of a teachers' retirement system or the New York state and local employ-
   31  ees'  retirement  system  who has five or more years of credited service
   32  upon termination of employment shall be entitled to  a  deferred  vested
   33  benefit  prior  to normal retirement age, but no earlier than age fifty-
   34  five, computed in accordance with the provisions  of  subdivision  i  of
   35  section six hundred three of this article.
   36    S  4. Section 612 of the retirement and social security law is amended
   37  by adding a new subdivision a-1 to read as follows:
   38    A-1. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION A OF  THIS  SECTION
   39  OR  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, (I) A MEMBER OF THE NEW
   40  YORK CITY TEACHERS' RETIREMENT SYSTEM WHO HOLDS A  POSITION  REPRESENTED
   41  BY   THE  RECOGNIZED  TEACHER  ORGANIZATION  FOR  COLLECTIVE  BARGAINING
   42  PURPOSES, WHO BECAME SUBJECT TO THE PROVISIONS OF THIS ARTICLE AFTER THE
   43  EFFECTIVE DATE OF THIS SUBDIVISION, AND WHO HAS TEN  OR  MORE  YEARS  OF
   44  CREDITED  SERVICE, OR (II) A MEMBER OF THE NEW YORK CITY BOARD OF EDUCA-
   45  TION RETIREMENT SYSTEM WHO HOLDS A POSITION REPRESENTED  BY  THE  RECOG-
   46  NIZED  TEACHER  ORGANIZATION  FOR  COLLECTIVE  BARGAINING  PURPOSES, WHO
   47  BECAME SUBJECT TO THE PROVISIONS OF THIS  ARTICLE  AFTER  THE  EFFECTIVE
   48  DATE  OF  THIS  SUBDIVISION,  AND  WHO HAS TEN OR MORE YEARS OF CREDITED
   49  SERVICE, OTHER THAN SUCH A MEMBER OF EITHER OF SUCH  RETIREMENT  SYSTEMS
   50  WHO  IS  ENTITLED  TO  A  DEFERRED  VESTED BENEFIT PURSUANT TO ANY OTHER
   51  PROVISION OF THIS ARTICLE, SHALL, UPON  TERMINATION  OF  EMPLOYMENT,  BE
   52  ENTITLED  TO A DEFERRED VESTED BENEFIT AT NORMAL RETIREMENT AGE COMPUTED
   53  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED  FOUR  OF  THIS
   54  ARTICLE.    NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  A OF THIS
   55  SECTION OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, A MEMBER  OF  THE
   56  NEW  YORK  CITY TEACHERS' RETIREMENT SYSTEM WHO HOLDS A POSITION REPRES-
       S. 26                              14                              A. 26

    1  ENTED BY THE RECOGNIZED TEACHER ORGANIZATION FOR  COLLECTIVE  BARGAINING
    2  PURPOSES, WHO BECAME SUBJECT TO THE PROVISIONS OF THIS ARTICLE AFTER THE
    3  EFFECTIVE  DATE  OF  THIS  SUBDIVISION, AND WHO HAS TEN OR MORE YEARS OF
    4  CREDITED  SERVICE, SHALL, UPON TERMINATION OF EMPLOYMENT, BE ENTITLED TO
    5  A DEFERRED VESTED BENEFIT PRIOR TO NORMAL RETIREMENT AGE, BUT NO EARLIER
    6  THAN AGE FIFTY-FIVE, COMPUTED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF
    7  SUBDIVISION I OF SECTION SIX HUNDRED THREE OF THIS ARTICLE.
    8    S 5. Paragraph 1 of subdivision b of section 911 of the retirement and
    9  social  security  law, as amended by chapter 110 of the laws of 2000, is
   10  amended to read as follows:
   11    1. [An] SUBJECT TO THE PROVISIONS OF PARAGRAPH ONE-A OF THIS  SUBDIVI-
   12  SION,  AN  eligible member (i) with a date of membership in a retirement
   13  system on or after July twenty-seventh, nineteen hundred seventy-six and
   14  (ii) who has ten or more years of membership or ten  or  more  years  of
   15  credited  service with a retirement system under the provisions of arti-
   16  cle fourteen or fifteen  of  this  chapter  shall  not  be  required  to
   17  contribute  to  a  retirement  system  pursuant  to section five hundred
   18  seventeen or six hundred thirteen of this chapter as  of  the  cessation
   19  date.
   20    S 6. Subdivision b of section 911 of the retirement and social securi-
   21  ty law is amended by adding a new paragraph 1-a to read as follows:
   22    1-A.  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVI-
   23  SION  OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, A MEMBER OF THE NEW
   24  YORK CITY TEACHERS' RETIREMENT SYSTEM OR THE  NEW  YORK  CITY  BOARD  OF
   25  EDUCATION RETIREMENT SYSTEM:
   26    (I)  WHO  IS  A  TWENTY-SEVEN  YEAR  PARTICIPANT IN THE AGE FIFTY-FIVE
   27  RETIREMENT PROGRAM (AS DEFINED IN PARAGRAPH TWELVE OF SUBDIVISION  A  OF
   28  SECTION SIX HUNDRED FOUR-I OF THIS CHAPTER), AND
   29    (II)  WHO BECOMES SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN OF THIS
   30  CHAPTER AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH, SHALL CONTRIBUTE  TO
   31  A  RETIREMENT  SYSTEM  PURSUANT  TO SECTION SIX HUNDRED THIRTEEN OF THIS
   32  CHAPTER UNTIL HE OR SHE HAS COMPLETED  TWENTY-SEVEN  YEARS  OF  CREDITED
   33  SERVICE.
   34    S  7.  Paragraph 2 of subdivision e of section 604-i of the retirement
   35  and social security law, as added by chapter 19 of the laws of 2008,  is
   36  amended to read as follows:
   37    2.  A  twenty-five-year  participant  in the age fifty-five retirement
   38  program (as defined  in  paragraph  eleven  of  subdivision  a  of  this
   39  section)  shall  contribute  additional  member  contributions until the
   40  later of (i) June twenty-ninth, two thousand eight, or (ii) the date  on
   41  which  he  or she has completed twenty-five years of credited service. A
   42  twenty-seven-year participant in the age fifty-five  retirement  program
   43  shall  contribute  additional  member contributions only until he or she
   44  has completed twenty-seven years of credited service; PROVIDED, HOWEVER,
   45  THAT A TWENTY-SEVEN-YEAR PARTICIPANT IN THE  AGE  FIFTY-FIVE  RETIREMENT
   46  PROGRAM  WHO BECOMES SUBJECT TO THE PROVISIONS OF THIS ARTICLE AFTER THE
   47  EFFECTIVE DATE OF THE CHAPTER OF THE LAWS  OF  TWO  THOUSAND  NINE  THAT
   48  AMENDED  THIS PARAGRAPH SHALL CONTRIBUTE ADDITIONAL MEMBER CONTRIBUTIONS
   49  FOR ALL YEARS OF CREDITED SERVICE AS PROVIDED IN  SUBPARAGRAPH  (II)  OF
   50  PARAGRAPH ONE OF THIS SUBDIVISION.
   51    S 8. Subdivision d of section 13-582 of the administrative code of the
   52  city of New York is amended to read as follows:
   53    d.  [Interest]  1.  SUBJECT TO THE PROVISIONS OF PARAGRAPH TWO OF THIS
   54  SUBDIVISION, INTEREST shall be allowed on the participant's tax-deferred
   55  account in the annuity savings fund at the same rate and  in  accordance
       S. 26                              15                              A. 26

    1  with  the  same  rules  and  procedures applicable to any account in the
    2  annuity savings fund, as provided in this chapter.
    3    2.  NOTWITHSTANDING  THE  PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVI-
    4  SION, OR ANY OTHER PROVISION OF LAW, OR ANY RETIREMENT BOARD RULE, REGU-
    5  LATION OR RESOLUTION TO THE CONTRARY, ON OR AFTER THE FIRST BUSINESS DAY
    6  IMMEDIATELY FOLLOWING THE EFFECTIVE DATE  OF  THIS  PARAGRAPH,  INTEREST
    7  SHALL  BE  ALLOWED  AT  THE  RATE OF SEVEN PERCENT PER ANNUM, COMPOUNDED
    8  ANNUALLY, ON THE TAX-DEFERRED ACCOUNT IN THE  ANNUITY  SAVINGS  FUND  OF
    9  PARTICIPANTS  (I)  WHO  HOLD  A  POSITION  REPRESENTED BY THE RECOGNIZED
   10  TEACHER ORGANIZATION FOR COLLECTIVE BARGAINING  PURPOSES,  OR  (II)  WHO
   11  HELD  SUCH  A  POSITION AT THE TIME THEY RETIRED OR DISCONTINUED SERVICE
   12  WITH VESTED RIGHTS TO  A  RETIREMENT  ALLOWANCE  AND  ELECTED  TO  DEFER
   13  COMMENCEMENT  OF  DISTRIBUTION OF THEIR TAX-DEFERRED ACCOUNTS IN ACCORD-
   14  ANCE WITH SUBDIVISION G OF THIS SECTION.
   15    S 9. Section 13-582 of the administrative code of the city of New York
   16  is amended by adding two new subdivisions n and o to read as follows:
   17    N. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, OR ANY RETIREMENT BOARD
   18  RULE, REGULATION OR RESOLUTION TO THE CONTRARY, THE AMENDMENT TO  SUBDI-
   19  VISION D OF THIS SECTION ENACTED BY THE CHAPTER OF THE LAWS OF TWO THOU-
   20  SAND  NINE  WHICH  ADDED  THIS  SUBDIVISION SHALL NOT AFFECT THE RATE OF
   21  INTEREST BEING CHARGED  ON  NEW  LOANS  FROM  THE  TAX-DEFERRED  ANNUITY
   22  PROGRAM,  AND  THE RATE OF INTEREST THAT WAS BEING CHARGED ON SUCH LOANS
   23  IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF  THIS  SUBDIVISION  SHALL  BE
   24  USED  FOR  NEW  LOANS  FROM  THE TAX-DEFERRED ANNUITY PROGRAM MADE ON OR
   25  AFTER THE EFFECTIVE DATE OF  THIS  SUBDIVISION,  UNLESS  THE  RETIREMENT
   26  BOARD,  IN  ACCORDANCE  WITH  ITS AUTHORITY PURSUANT TO PARAGRAPH TWO OF
   27  SUBDIVISION L OF THIS SECTION, AS ADDED BY CHAPTER FIVE  HUNDRED  SEVEN-
   28  TEEN OF THE LAWS OF NINETEEN HUNDRED NINETY-THREE, SHALL AMEND ITS RULES
   29  AND REGULATIONS GOVERNING LOANS FROM THE TAX-DEFERRED ANNUITY PROGRAM TO
   30  ESTABLISH A DIFFERENT RATE OF INTEREST APPLICABLE TO SUCH LOANS.
   31    O. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, OR ANY RETIREMENT BOARD
   32  RULE,  REGULATION  OR RESOLUTION TO THE CONTRARY, WHERE A PARTICIPANT IN
   33  THE TAX-DEFERRED ANNUITY PROGRAM  HAS  ELECTED  TO  TRANSFER  ALL  OR  A
   34  PORTION OF THE AMOUNT CREDITED TO HIS OR HER TAX-DEFERRED ACCOUNT IN THE
   35  ANNUITY  SAVINGS  FUND TO A TAX-DEFERRED ACCOUNT IN THE VARIABLE ANNUITY
   36  SAVINGS FUND, THE RETIREMENT SYSTEM SHALL EFFECTUATE  SUCH  TRANSFER  AS
   37  EXPEDITIOUSLY AS IS ADMINISTRATIVELY FEASIBLE.
   38    S 10. Subdivision 20 of section 2575 of the education law, as added by
   39  chapter  509  of  the laws of 1993, is amended by adding a new paragraph
   40  (e) to read as follows:
   41    (E) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, OR ANY RULE  OR  REGU-
   42  LATION,  OR  THE  PROVISIONS  OF  ANY RETIREMENT BOARD RESOLUTION TO THE
   43  CONTRARY:
   44    (1) ON OR AFTER THE  FIRST  BUSINESS  DAY  IMMEDIATELY  FOLLOWING  THE
   45  EFFECTIVE  DATE OF THIS PARAGRAPH, INTEREST SHALL BE ALLOWED AT THE RATE
   46  OF SEVEN PERCENT PER ANNUM, COMPOUNDED  ANNUALLY,  ON  THE  TAX-DEFERRED
   47  ACCOUNTS  IN  THE  ANNUITY  SAVINGS  FUND OF PARTICIPANTS (I) WHO HOLD A
   48  POSITION REPRESENTED BY THE RECOGNIZED TEACHER ORGANIZATION FOR  COLLEC-
   49  TIVE  BARGAINING  PURPOSES, OR (II) WHO HELD SUCH A POSITION AT THE TIME
   50  THEY RETIRED OR DISCONTINUED SERVICE WITH VESTED RIGHTS TO A  RETIREMENT
   51  ALLOWANCE  AND  ELECTED  TO  DEFER COMMENCEMENT OF DISTRIBUTION OF THEIR
   52  TAX-DEFERRED ACCOUNTS IN ACCORDANCE WITH PARAGRAPH (C) OF THIS  SUBDIVI-
   53  SION; AND
   54    (2)  THE  PROVISIONS  OF  SUBPARAGRAPH ONE OF THIS PARAGRAPH SHALL NOT
   55  AFFECT THE RATE OF INTEREST BEING CHARGED ON NEW LOANS FROM THE  TAX-DE-
   56  FERRED  ANNUITY PROGRAM, AND THE RATE OF INTEREST THAT WAS BEING CHARGED
       S. 26                              16                              A. 26

    1  ON SUCH LOANS IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THIS  PARAGRAPH
    2  SHALL  BE  USED FOR NEW LOANS FROM THE TAX-DEFERRED ANNUITY PROGRAM MADE
    3  ON OR AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH, UNLESS THE  RULES  AND
    4  REGULATIONS  GOVERNING  LOANS  FROM THE TAX-DEFERRED ANNUITY PROGRAM ARE
    5  AMENDED PURSUANT TO PARAGRAPH (D) OF THIS  SUBDIVISION  TO  ESTABLISH  A
    6  DIFFERENT RATE OF INTEREST APPLICABLE TO SUCH LOANS; AND
    7    (3)  WHERE  A  PARTICIPANT  IN  THE  TAX-DEFERRED  ANNUITY PROGRAM HAS
    8  ELECTED TO TRANSFER ALL OR A PORTION OF THE AMOUNT CREDITED  TO  HIS  OR
    9  HER  TAX-DEFERRED  ACCOUNT IN THE ANNUITY SAVINGS FUND TO A TAX-DEFERRED
   10  ACCOUNT IN THE VARIABLE ANNUITY  SAVINGS  FUND,  THE  RETIREMENT  SYSTEM
   11  SHALL  EFFECTUATE  SUCH TRANSFER AS EXPEDITIOUSLY AS IS ADMINISTRATIVELY
   12  FEASIBLE.
   13    S 11. This act shall take effect immediately.
   14    S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
   15  sion, section or part of this act shall be  adjudged  by  any  court  of
   16  competent  jurisdiction  to  be invalid, such judgment shall not affect,
   17  impair, or invalidate the remainder thereof, but shall  be  confined  in
   18  its  operation  to the clause, sentence, paragraph, subdivision, section
   19  or part thereof directly involved in the controversy in which such judg-
   20  ment shall have been rendered. It is hereby declared to be the intent of
   21  the legislature that this act would  have  been  enacted  even  if  such
   22  invalid provisions had not been included herein.
   23    S  3.  This  act shall take effect immediately provided, however, that
   24  the applicable effective date of Parts A through C of this act shall  be
   25  as specifically set forth in the last section of such Parts.
         FISCAL NOTE.--PROVISIONS OF PART C OF THE PROPOSED LEGISLATION - OVER-
       VIEW:  With  respect  to the New York City Retirement Systems ("NYCRS"),
       Part C of this proposed legislation would amend New York  State  Retire-
       ment  and  Social  Security  Law  ("RSSL")  Sections 602, 604-i, 612 and
       911.b, Administrative Code of the City  of  New  York  ("ACNY")  Section
       13-582  and  Education Law ("Ed Law") Section 2575 to provide changes in
       the service eligibility requirements for certain members for Vested  and
       Service  Retirement  benefits,  to revise the duration of payability for
       member contributions for certain Tier IV members hired on and after  the
       Effective  Date,  and  to provide a change to the rate of interest to be
       credited on Fixed Fund account balances of certain participants  in  the
       Tax  Deferred  Annuity  ("TDA")  Programs of the New York City Teachers'
       Retirement System ("NYCTRS") and the New York City  Board  of  Education
       Retirement System ("BERS").
         The  Effective  Date  of the proposed legislation would be the date of
       enactment.
         IMPACT ON SECTIONS OF LAW: The proposed legislation  would  amend  the
       following  provisions  of law for certain new NYCRS members hired on and
       after the Effective Date ("New Members") and also impact certain  exist-
       ing   members  on  the  Effective  Date  with  respect  to  certain  TDA
       provisions.
       SECTION OF LAW                               PROVISIONS BEING AMENDED
                                 TIER I-IV PROVISIONS
       ACNY 13-582.d                                Provisions relating to
                                                    NYCTRS TDA.
       ACNY 12-582.n.o                              Provisions relating to
                                                    NYCTRS TDA loans.
                                  TIER IV PROVISIONS
       RSSL Sec. 602.a,b                            Service Retirement ("SR")
                                                    eligibility.
       RSSL Sec. 604-i                              Additional Member
       S. 26                              17                              A. 26

                                                    Contributions ("AMC").
       RSSL Sec. 612.a                              Eligibility for Vested
                                                    benefits.
       RSSL Sec. 911.b                              Limitations on Basic Member
                                                    Contributions
                         TDA PROVISIONS AND TDA LOANS FOR BERS
       Ed Law Sec. 2575                             TDA provisions and TDA
                                                    loans for BERS.
         IMPACT  ON  NYCRS RETIREMENT PLANS - NON-TDA PROVISIONS: Part C of the
       proposed legislation would cover certain Tier IV New Members  of  NYCTRS
       and BERS and impact provisions of the following Plans:
         * Basic Tier IV Plan Provisions ("Basic 62/5 Plan") and
         *  Optional Age Fifty-five Retirement Program for New York City Teach-
       ers and certain other members ("Age 55 Program").
         IMPACT ON ELIGIBILITY  PROVISIONS  -  NON-TDA  PROVISIONS:  Under  the
       proposed  legislation, certain New Members hired on and after the Effec-
       tive Date would become subject to the following revised Service  Retire-
       ment and Vesting eligibility requirements:
         SERVICE RETIREMENT
         Under  the  proposed  legislation,  the minimum service required for a
       Service Retirement benefit in the Basic 62/5 Plan would be increased  to
       10 years from 5 years of credited service.
         VESTING
         Under  the  proposed  legislation,  the minimum service required for a
       Vested benefit in the Basic 62/5 Plan would be  increased  to  10  years
       from 5 years of credited service.
         While such New Members would participate in the Age 55 Program, in the
       event a participant terminated employment prior to meeting the eligibil-
       ity requirements of the Age 55 Program for Service Retirement, the bene-
       fits  payable  upon  vesting,  retirement,  disability or death would be
       based on the provisions of the Basic 62/5 Plan.
         IMPACT ON MEMBER CONTRIBUTIONS - NON-TDA PROVISIONS: Currently,  Basic
       Member  Contributions  ("BMC") of 3.0% of salary for Tier IV members are
       required (per Chapter 126 of the Laws of 2000) for  only  the  first  10
       years of membership or the first 10 years of credited service, whichever
       occurs earliest.
         Under  the proposed legislation, certain New Members would be required
       to pay BMC for all years of credited service  up  to  a  maximum  of  27
       years.
         Currently,  under the existing Age 55 Program, only those participants
       subject to the 27-year provisions are  required  to  contribute  AMC  of
       1.85% of salary to a maximum of 27 years of credited service.
         Under  Part  C of the proposed legislation, New Member 27-year partic-
       ipants in the Age 55 Program after the Effective Date would be  required
       to contribute AMC for all years of credited service.
         FINANCIAL IMPACT - OVERVIEW: If enacted into law, the ultimate employ-
       er  cost  of  this  proposed  legislation would be determined by the net
       change in benefits paid, offset by  any  increases  in  member  contrib-
       utions, and by the reduced amount of interest credited to TDA Fixed Fund
       account balances.
         FINANCIAL  IMPACT  -  NON-TDA  PROVISIONS - ACTUARIAL PRESENT VALUES -
       CURRENT MEMBERS: Based on the census data and the actuarial  assumptions
       and  methods  currently in effect, the enactment of this proposed legis-
       lation would not change the APV of benefits, the APV of member  contrib-
       utions  or the APV of future salary of current members of NYCTRS or BERS
       as of June 30, 2008.
       S. 26                              18                              A. 26

         IMPACT ON NYCRS RETIREMENT PLANS  -  TDA  PROVISIONS:    The  proposed
       legislation  changes  to  the  TDA  provisions would cover both existing
       members and New Members of NYCTRS and BERS in Tier I, Tier II, Tier  III
       and Tier IV whose job titles are represented in collective bargaining by
       the United Federation of Teachers ("UFT") ("Covered Members").
         These  TDA  changes  would  impact  all  such  NYCTRS and BERS members
       regardless of the Plan in which they participate.
         BACKGROUND - EARNINGS ON TDA ACCOUNTS - CURRENT LAW:    Under  current
       law,  eligible  members  of  NYCTRS  who elect to participate in the TDA
       Program select from among the following  funds  to  allocate  their  TDA
       account balances (100.0% in one Fund or proportions (delineated in mini-
       mum 5.0% increments)) within the following six alternative funds:
         *  A  Fixed  Fund  that provides a guaranteed annual rate of return of
       8.25% per annum (for periods on and after July 1, 1988), or
         * Five separate Variable Funds (i.e., Diversified Equity Fund,  Stable
       Value  Fund,  International  Equity  Fund,  Inflation Protection Fund or
       Socially Responsive Equity Fund) that  provide  alternative  risk/reward
       characteristics.
         Eligible  BERS  members who participate in the TDA Program select only
       from the Fixed Fund and the Diversified Equity Fund.
         At retirement after age 59 1/2, TDA participants may receive their TDA
       account balances payable as a lump sum, as a monthly  annuity  based  on
       annuitization  factors used by the NYCTRS or BERS Qualified Pension Plan
       ("QPP") Programs, respectively, or in other amounts they  elect  subject
       to  the  Internal  Revenue  Code  ("IRC")  Minimum Required Distribution
       ("MRD") rules for those age 70 1/2 or greater.
         BACKGROUND - EARNINGS ON  TDA  ACCOUNTS  -  PROPOSED  LAW:  Under  the
       proposed  legislation,  the interest crediting rate for TDA participants
       in the Fixed Fund for Covered Members would be  decreased  (i.e.,  8.25%
       per annum would decrease to 7.0% per annum).
         FINANCIAL  IMPACT  - TDA FIXED FUND ASSETS - OVERVIEW: If enacted into
       law, the ultimate change in employer cost of this  proposed  legislation
       would  equal  the  change in benefits payable by NYCTRS and BERS arising
       from revised TDA provisions.
         Simplistically, this change in employer cost would equal  the  cumula-
       tive reduction in obligations between crediting 8.25% per annum and 7.0%
       per annum on TDA Fixed Fund account balances for Covered Members.
         However, financing this change in obligations is not simplistic.
         Under current law, TDA Fixed Fund assets of NYCTRS and BERS are co-in-
       vested with NYCTRS QPP assets.
         The  Investment  Policy  for  NYCTRS QPP assets reflects a broad asset
       allocation of 70% equity-like securities and 30% bond-like securities.
         The actuarial assumptions currently in  effect  include  an  Actuarial
       Interest  Rate  ("AIR")  assumption of 8.0% per annum that is consistent
       with an assumption that the NYCTRS QPP assets are expected  to  earn  an
       average  of 8.0% per year. To the extent that TDA Fixed Fund assets earn
       more than 8.25% per year (i.e., the crediting rate  on  TDA  Fixed  Fund
       account  balances),  actuarial gains occur. To the extent that TDA Fixed
       Fund assets earn less than 8.25% per year, actuarial losses occur.
         To the extent TDA Fixed Fund account balances are shifted to  Variable
       Funds or vice versa, there are also impacts on the potential cost of the
       TDA Programs.
         Under  the proposed legislation, access to and earnings payable on the
       Variable Funds would not change.
         Under current actuarial practice,  the  Actuary  spreads  through  the
       Actuarial  Asset  Valuation Method ("AAVM") over six years and then over
       S. 26                              19                              A. 26

       the expected future working lifetimes of NYCTRS QPP and BERS QPP  active
       members  the  investment gains/losses attributable to the TDA Fixed Fund
       earnings equaling more/less than the 8.25%  per  annum  TDA  Fixed  Fund
       Interest Crediting Rate.
         In  particular,  the  Actuary  includes in the NYCTRS QPP and BERS QPP
       actuarial valuations a modest load to the  Actuarial  Present  Value  of
       Benefits  ("APVB")  equal  to approximately 2.3% of their respective TDA
       Fixed Fund assets. This amount is intended to represent a portion of the
       anticipated difference between the expected earnings on TDA  Fixed  Fund
       assets and the TDA Fixed Fund Interest Crediting Rate. These obligations
       are  financed  over  the expected future working lifetimes of NYCTRS QPP
       and BERS QPP active members.
         FINANCIAL IMPACT - TDA FIXED FUND ASSETS -  RISK  ADJUSTED:  As  noted
       earlier, the expected long-term actuarial loss on TDA Fixed Fund assets,
       under  the  current  actuarial  assumptions,  is  .25% of TDA Fixed Fund
       assets, per year.
         However, on a risk-adjusted basis, the economic implications are  more
       significant.  Specifically, TDA Fixed Fund account balances are credited
       with interest at a rate of 8.25% per annum, not subject to any  risk  to
       the TDA participants.
         To  earn the AIR assumption of 8.0% per annum, (or the 8.25% per annum
       crediting rate), TDA Fixed  Fund  assets  are  subject  to  considerable
       investment risk.
         Were  NYCTRS  to set aside TDA Fixed Fund assets whose characteristics
       had a comparable level of certainty of payment, it would have to  invest
       in some form of risk-free asset class such as U.S. Treasury securities.
         Although  a  TDA participant may move, following a modest notification
       period, his or her TDA account balance between the Fixed  Fund  and  the
       Variable  Funds, the Actuary has assumed an average TDA Fixed Fund hold-
       ing period of 10 years. Comparing the expected  yield  on  10-year  U.S.
       Treasury securities would then be a reasonable, risk-adjusted benchmark.
         Over  time, intermediate-term U.S. Treasury securities may be expected
       to earn a real rate of return of approximately 2.5% per  year.  Combined
       with a long-term assumption for inflation of 2.5% per year, a total rate
       of return for intermediate-term Treasury securities would equal approxi-
       mately 5.0% per year.
         Comparing the current risk-free TDA Fixed Fund interest crediting rate
       of  8.25%  per  annum with a long-term expected, market place, risk-free
       yield of 5.0% per year on  intermediate-term  U.S.  Treasury  securities
       indicates  that TDA account balances are being credited with an expected
       3.25% per year greater rate of return on a risk-adjusted basis than  the
       expected earnings on the supporting TDA Fixed Fund assets.
         Thus, on an economically robust, risk-adjusted basis, the crediting of
       TDA  account balances with interest at either 7.0% or 8.25% per annum is
       more expensive than reported on a non-risk-adjusted basis.
         FINANCIAL IMPACT - TDA VARIABLE ANNUITY CONVERSIONS: In addition,  the
       Actuary  holds as obligations of the NYCTRS QPP and BERS QPP, amounts to
       reflect the actuarial losses anticipated upon the conversion of some TDA
       account balances into Variable Annuities.  This reflects the  fact  that
       the annuity factors used for such conversion, by law, are not actuarial-
       ly equivalent to what the Actuary assumes in the actuarial valuations.
         Under the proposed legislation, TDA participants would be permitted to
       transfer  their  TDA  Fixed  Fund account balances to one or more of the
       Variable Funds as soon as feasible  under  the  direction  of  the  Plan
       administrators of each NYCTRS and BERS.
       S. 26                              20                              A. 26

         However, it is not expected that enactment of the proposed legislation
       would  result  in  substantial  numbers of TDA participants transferring
       their TDA Fixed Fund account balances to TDA Variable Funds.
         FINANCIAL IMPACT - TDA FIXED FUND - SUMMARY: Annual investment returns
       on  the  TDA  Fixed Fund assets that exceed the guaranteed amounts to be
       credited to the TDA Fixed Fund accounts produce actuarial gains.
         Conversely, annual investment returns less than the guaranteed amounts
       to be credited to the TDA Fixed Fund accounts produce actuarial losses.
         Under the current AIR assumption of 8.0% per annum, an aggregate long-
       term net actuarial loss of .25% on TDA Fixed Fund  account  balances  is
       expected.  This loss ultimately increases employer costs.
         The  Actuary  anticipates  that  enactment of the proposed legislation
       with respect to the decrease to 7.0% per annum from 8.25% per  annum  of
       the Interest Crediting Rate on TDA Fixed Fund account balances in NYCTRS
       and BERS would become effective in the Fiscal Year containing the Effec-
       tive Date.
         If  enacted  before  June  30,  2010,  the Actuary would likely reduce
       Fiscal Year 2010 employer contributions to reflect that there  would  be
       fewer  TDA  Fixed Fund account balances expected to be credited at 8.25%
       per annum.
         As of June 30, 2008, TDA Fixed Fund account balances equaled  approxi-
       mately $8.970 billion for NYCTRS and $456.8 million for BERS.
         Assuming  a  portion  of  the TDA Fixed Fund account balances would be
       transferred to the  TDA  Variable  Funds  following  enactment  of  this
       proposed  legislation,  the  Actuary would likely apply the 2.3% load to
       only non-UFT TDA account balances.
         If the proposed legislation were enacted on or before June  30,  2010,
       the  impact  of  reducing expected TDA Fixed Fund actuarial losses would
       result in decreases  in  Fiscal  Year  2010  employer  contributions  of
       approximately $18.7 million for NYCTRS and $.4 million for BERS.
         It  is  anticipated  that  the annualized expected reduction in Fiscal
       Year 2010 employer contributions to NYCTRS and BERS would  continue  for
       future years.
         PROJECTED  CHANGES  IN  EMPLOYER  CONTRIBUTIONS  -  CURRENT  ACTUARIAL
       ASSUMPTIONS AND METHODS: If the proposed legislation  were  enacted  and
       effective  for certain New Members on or after the Effective Date, these
       New Members would first join the NYCRS during Fiscal Year 2010 and first
       be included in the June 30, 2010 actuarial valuations of the NYCRS  used
       to determine Fiscal Year 2012 employer contributions.
         However,  since  most  New Members of NYCTRS and BERS impacted by this
       proposed legislation would likely not be hired until September 2010  and
       would first be included in the June 30, 2011 actuarial valuations of the
       NYCRS,  the  first  significant  impact of the proposed legislation with
       respect to non-TDA provisions would likely be on the  Fiscal  Year  2013
       employer contributions.
         The  proposed  changes  to  the  TDA provisions would first impact the
       Fiscal Year 2010 employer contributions.
         The following Table 1 presents an estimate of the reduction in employ-
       er contributions that would occur based on current actuarial assumptions
       and methods:

                                        Table 1

                    Estimated Reductions in Employer Contributions
                  If Proposed Legislation is Enacted to be Effective
                              On or Before June 30, 2010*
       S. 26                              21                              A. 26

                    Under Current Actuarial Assumptions and Methods

                                     ($ Millions)

       Fiscal Year         NYCTRS         BERS        Total
       2010                18.7           0.4         19.1
       2011                17.6           0.4         18.0
       2012                16.6           0.3         16.9
       2013                23.2           0.5         23.7
       2014                29.5           0.7         30.2
       2015                35.9           0.8         36.7
       2016                42.5           1.0         43.5
       2017                49.0           1.2         50.2
       2018                55.6           1.4         57.0
       2019                62.6           1.5         64.1

         *  Based  on projection assumptions set forth in Actuarial Assumptions
       and Methods Section and as noted herein. Includes both impact of non-TDA
       provisions with first significant impact in Fiscal  Year  2013  and  TDA
       provisions with impact in Fiscal Year 2010 and later.
         The  estimated  reductions  in employer contributions shown in Table 1
       are based upon the following projection assumptions:
         * Level workforce (i.e., new employees are hired to replace those  who
       leave active status).
         *  Projected salary increase consistent with those used in projections
       presented  to  the  New  York  City  Office  of  Management  and  Budget
       ("NYCOMB") on February 20, 2009 ("February Projections").
         *  New  entrant  salaries  consistent  with those used in the February
       Projections.
         These "open group" projections include future new entrants  introduced
       into the census data models to project the future workforces.
         As of each future actuarial valuation date, the current "closed group"
       actuarial assumptions and valuation methodology are used.
         Under  this  methodology  only  Plan Participants as of each actuarial
       valuation date are  utilized  to  determine  Actuarial  Present  Values,
       employer costs and employer contributions.
         To  the  extent  Plan  designs  do not change markedly over time, such
       closed group actuarial methodology is well suited to funding  a  Retire-
       ment System.
         FINANCIAL  IMPACT  - ACTUARIAL PRESENT VALUES - POTENTIAL METHODOLOGY:
       The impact of enactment of the proposed  legislation  provided  in  this
       Fiscal Note has been based on the continued use of the current actuarial
       assumptions and methods.
         However,  the  current actuarial assumptions and methods do not repre-
       sent the only possible approach for funding the NYCRS.
         Historically, actuarial assumptions and methods have been reviewed  on
       average  every  five  years  in  connection with an actuarial experience
       study mandated by New York City Charter Section 96.
         Following this review, the Actuary generally proposes changes in actu-
       arial assumptions and methods that he believes appropriate  and  reason-
       ably related to such experience period and future expectations.
         The next such review is anticipated during Fiscal Year 2011 or 2012.
         If  enacted,  the  proposed legislation would increase the duration of
       member contributions of  New  Members  of  the  NYCTRS  and  BERS.  This
       increase  may possibly impact the timing of their election to retire for
       service and hence, their future working lifetimes.  As such, the Actuary
       S. 26                              22                              A. 26

       will be considering  alternative  actuarial  methodologies  that  could,
       directly  or  indirectly,  reflect  the impact of future new entrants as
       early as the Fiscal Year of enactment.
         The  Actuary  may  also consider revising the amortization periods for
       financing certain costs in order to reflect the expected change  in  the
       average  working  lifetimes of New Members hired after enactment of this
       proposed legislation.
         Note: The Actuary has not committed to any particular methodology  for
       determining employer costs and employer contributions in connection with
       the  upcoming,  experience  review of actuarial assumptions and methods.
       However, the Actuary intends to consider seriously the potential  impli-
       cations for financing the NYCRS that could arise should the benefits and
       the  expected  future working lifetimes of certain New Members after the
       Effective Date differ from those of current new entrants.
         FINANCIAL IMPACT - ENTRY AGE NORMAL COSTS: Entry Age Normal Costs  can
       provide  a  useful  basis  to  compare  the value of alternative benefit
       programs.  For each member who enters a NYCRS, there  is  a  theoretical
       net  annual  employer  cost to be paid for such member while such member
       remains actively employed (i.e., the Entry Age Normal Cost ("EANC")).
         In addition, such EANC may be expressed  as  a  percentage  of  salary
       earned  over  a working lifetime and referred to as the Entry Age Normal
       Rate ("EANR").
         Under the proposed legislation and based on the actuarial  assumptions
       noted  herein,  the  EANC and EANR of New Members would be less than the
       EANC and EANR for comparable new members entering at the  same  attained
       age and gender under the current NYCRS provisions.
         A  summary  of the change in EANC by NYCRS for entry age 25, 30 and 35
       follows:

                                        Table 2
             Comparison of Representative Employer Entry Age Normal Rates*
                  To Implement Proposed Legislation Impacting Certain
                            New Members of NYCTRS and BERS

                            EANR Under Proposed Legislation

       Retirement          Entry Age 25     Entry Age 30          Entry Age 35
       System
                         Male   Female     Male      Female      Male      Femal

       NYCTRS            5.68%  5.99%      6.39%     6.79%       6.99%     7.53%

       BERS              3.72%  4.19%      4.21%     4.80%       4.47%     5.21%

                               EANR Under Current Law**

       NYCTRS            7.08%  7.40%      7.79%     8.21%       8.46%     9.02%

       BERS              5.07%  5.58%      5.55%     6.18%       5.80%     6.61%

                     Reduction in EANR Due to Proposed Legislation

       NYCTRS            1.40%  1.41%      1.40%     1.42%       1.47%     1.49%

       BERS              1.35%  1.39%      1.34%     1.38%       1.33%     1.40%
       S. 26                              23                              A. 26

         * Based on salaries paid over entire working lifetime.
         **  EANR  were  determined as of June 30, 2008 and do not vary signif-
       icantly over time, absent benefit and/or actuarial assumption changes.
         FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS FISCAL YEARS 2010, 2011  and
       2012  - CURRENT METHODOLOGY:  Based on the census data and the actuarial
       assumptions and methods currently in effect, and assuming  enactment  to
       be  effective on or before June 30, 2010, the enactment of this proposed
       legislation would, with respect to the changes in TDA provisions, result
       in changes in employer contributions to NYCTRS and BERS for Fiscal Years
       2010, 2011 and 2012.
         FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS FISCAL YEAR 2013 AND  BEYOND
       -  CURRENT METHODOLOGY: If enacted to be effective on or before June 30,
       2010, the first significant number of New Members would join NYCTRS  and
       BERS  during  September  2010 and be included in the June 30, 2011 (Lag)
       actuarial valuations of those NYCRS. Based on the actuarial  assumptions
       and  methods  currently  in  effect, those provisions under the proposed
       legislation that affect New Members  would  first  significantly  impact
       employer contributions to NYCTRS and BERS for Fiscal Year 2013.
         OTHER  COSTS:  Not  measured in this Fiscal Note is the impact of this
       proposed legislation on Other Post-Employment  Benefit  ("OPEB")  costs.
       Also  not measured are the initial and ongoing additional administrative
       costs of NYCTRS and BERS and their participating employers to  implement
       the proposed legislation.
         CENSUS  DATA:  The  starting  census  data  used  for the calculations
       presented herein are the census data used in the  June  30,  2008  (Lag)
       actuarial valuations of NYCTRS and BERS.
         The census data used for the estimates of additional APVB and employer
       contributions  presented  herein of the non-TDA portions of the proposed
       legislation are based on average salaries of new entrants  in  the  June
       30, 2008 (Lag) actuarial valuations of NYCTRS and BERS.
         The metrics for new members of NYCTRS were approximately 25% male, age
       34 and 75% female, age 34 and a combined average salary of $48,239.
         The  metrics  for new members of BERS were approximately 25% male, age
       41 and 75% female, age 44 and a combined average salary of $33,774.
         The census data used for estimates of the impact on employer  contrib-
       utions  of  the TDA portion of the proposed legislation presented herein
       are those active participants included in the June 30, 2008 (Lag)  actu-
       arial valuations of the NYCTRS and BERS.
         For  NYCTRS,  this consisted of 2,401 Tier I, 1,224 Tier II and 69,273
       Tier IV TDA participants included in the June 30, 2008  (Lag)  actuarial
       valuation of NYCTRS.
         For  BERS, this consisted of 108 Tier I, 58 Tier II and 11,799 Tier IV
       TDA participants included in the June 30, 2008 (Lag) actuarial valuation
       of BERS.
         ACTUARIAL ASSUMPTIONS AND  METHODS:  The  additional  APVB,  EANR  and
       employer  contributions  under current methodology presented herein have
       been calculated based on the actuarial assumptions and methods in effect
       for the June 30, 2008 (Lag) actuarial valuations of NYCTRS and BERS.
         Employer contributions under current methodology have  been  estimated
       assuming  the  additional  APVB  would be financed through future normal
       contributions.
         Projections of salaries, reflecting the impact of estimated contractu-
       al wage increases, include information provided  by  NYCOMB.  These  and
       other  projection assumptions (such as projected expenses) are set forth
       in the February Projections.
       S. 26                              24                              A. 26

         New entrants were projected to replace the NYCRS members  expected  to
       leave the active population to maintain a steady-state population.
         The  following  Table  3 presents the total number of active employees
       used in the projections, assuming a level work force, and the net number
       of New Members as of each June 30 from 2009 to 2017.
                                         Table 3

                    Active* and Net New Members of NYCTRS and BERS*
                          Used in the Projections for Table 1
                             NYCTRS                        BERS
       June 30                       Net New                       Net New
                      Actives        Members        Actives        Members
       2009           112,472             0         22,702             0
       2010           112,472             0         22,702             0
       2011           112,472         6,330         22,702         1,582
       2012           112,472        12,213         22,702         3,096
       2013           112,472        17,705         22,702         4,553
       2014           112,472        22,846         22,702         5,940
       2015           112,472        27,652         22,702         7,241
       2016           112,472        32,181         22,702         8,457
       2017           112,472        36,461         22,702         9,595

         * Active members included in the projections assume a level work force
       based on the June 30, 2008 (Lag) actuarial valuation  census  data.  For
       simplification,  all  New  Members  in TRS and 15% of the New Members in
       BERS are assumed to be UFT Members.
         The changes in employer contributions and costs  have  been  estimated
       assuming that changes in the Actuarial Present Values of Future Employer
       Costs would be financed through future normal contributions.
         Information  on  TDA Fixed Fund and TDA Variable Fund account balances
       used to estimate the impact on employer costs of the TDA portion of  the
       legislation presented herein also reflect financial information provided
       by the accountants of NYCTRS and BERS.
         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 2009 Legislative Session. It is Fiscal  Note  2009-17,  dated
       November  17,  2009,  prepared by the Chief Actuary of the New York City
       Teachers' Retirement System and the New York  City  Board  of  Education
       Retirement System.
         FISCAL  NOTE.--This bill would (1) create new benefits for new members
       who first join the  New  York  State  and  Local  Employees'  Retirement
       System,  the  New  York  State Teachers' Retirement System, the New York
       City Teachers' Retirement System, the New York City  Employees'  Retire-
       ment System or the New York City Board of Education Retirement System on
       or after January 1, 2010 (2) create a new plan in the New York State and
       Local Police and Fire Retirement System.
         Insofar as this bill would affect the New York State and Local Employ-
       ees'  Retirement  System  (ERS), the significant plan design changes for
       members who join on or after January 1, 2010 include:
         1. Employee contributions of 3% of  pay  for  all  years  of  service,
       except
       S. 26                              25                              A. 26

         -  State correction officer contributions would be limited to 30 years
       of service, &
         -  uniformed  court  officers/peace  officers  employed by the Unified
       Court System would contribute 4% of pay for all years of service.
         2. Ten year vesting,
         3. Larger early retirement reductions would be in  place  for  members
       retiring  prior  to  age  62,  and the waiver of reduction with 30 years
       would be eliminated except for uniformed court  officers/peace  officers
       employed by the Unified Court System,
         4.  Annual  overtime pay in excess of $15,000 would not be included in
       the definition of wages and final  average  salary.  This  overtime  pay
       limitation would increase by 3% annually.
         If  this bill is enacted, we will calculate new plan rates for all ERS
       members who first enter on or after  January  1,  2010.  The  long  term
       expected  annual employer contribution rate for new general members will
       be approximately 8.9% as compared to  the  current  expected  long  term
       annual employer contribution rate for Tier 4 general members of approxi-
       mately  11.0%  of  payroll. For fiscal year ending March 31, 2010, since
       the average Tier 4 employer contribution rate is approximately  7%,  the
       new plan rate would be approximately 5.7%.
         For  ERS  members in 20 or 25 year retirement plans that allow retire-
       ment without regard to age, the long term reductions would vary by  plan
       and  be  less  than  2% of salary, with the fiscal year ending March 31,
       2010 reductions averaging approximately 1%.
         Insofar as this bill would affect the New York State and Local  Police
       and  Fire  Retirement System (PFRS), the significant plan design changes
       for members who join on or after January 1, 2010 include:
         1. An employee contribution of 3% of pay  will  be  required  for  all
       years  of  service,  except that a member who is enrolled in a plan that
       limits the amount of creditable service which may be accrued will not be
       required to contribute after accruing the maximum amount  of  creditable
       service under such plan,
         2.  Overtime  pay  in  an amount in excess of 15% of a member's annual
       wages not classified as overtime pay shall be excluded from  a  member's
       final average salary,
         3. Ten year vesting.
         If this bill is enacted, we will calculate new plan rates for all PFRS
       members  who  first  enter  on  or  after January 1, 2010. The long term
       expected annual employer contribution rate would change as follows:
         -1.8% for municipal 20 year plans with additional 60ths (benefits  for
       members hired on or after 7/1/2009 are now computed under Article 14),
         -0.6%  for  the state 20 year plan with additional 60ths (benefits for
       members hired on or after 7/1/2009 are now computed under Article 14),
         -2.6% for 20 year plans  (benefits  for  members  hired  on  or  after
       7/1/2009 are now computed under Article 14),
         -3.0%  for  25  year  plans  with additional 60ths, 25 year plans, and
       regular plans previously non-contributory.
         This estimate, dated November 16, 2009,  and  intended  for  use  only
       during  the  2009  Legislative  Session,  is  Fiscal  Note No. 2009-297,
       prepared by the Actuary for the ERS and PFRS.
         FISCAL NOTE.--This bill would amend various sections of the  Education
       Law  and  the  Retirement  and  Social  Security  Law to implement a new
       retirement benefit structure (Tier 5)  for  members  who  first  join  a
       public  retirement  system  of  the state (or New York City) on or after
       January 1, 2010. The following provisions are with respect to members of
       the New York State Teachers' Retirement System. Members would be  eligi-
       S. 26                              26                              A. 26

       ble  for  a  service retirement benefit after rendering a minimum of ten
       years of credited service and attainment of age 55. The service  retire-
       ment  benefit  formula  for a member with less than twenty-five years of
       service would be equal to one-sixtieth of final average salary times the
       years  of  service.  The service retirement benefit formula for a member
       with twenty-five or more years of service would be equal to one-fiftieth
       of final average salary times the years of service  (not  in  excess  of
       thirty).  Years  of  service  in excess of thirty shall provide an addi-
       tional retirement benefit equal to three two-hundredths of final average
       salary. Members retiring prior to age 62  would  have  their  retirement
       benefit  reduced  by  one-fifteenth  per  year for each of the first two
       years retirement predates age 62 and by one-twentieth per year for  each
       year  retirement  predates age 60. However, members who are at least age
       57 with 30 or more years of  credited  service  would  be  permitted  to
       retire without reduction.  Members would be required to contribute three
       and one-half percent of annual salary for ALL years of service.
         The current required employer contribution rate for the New York State
       Teachers'  Retirement  System  is  6.19%  of pay, applicable to 7/1/09 -
       6/30/10 member salaries and to be collected in the fall  of  2010.  This
       rate  is  applicable to the salaries of all members, regardless of tier.
       In that this proposed benefit structure is only  applicable  to  members
       joining  on  or after January 1, 2010, it will be at least several years
       before it has a noticeable impact on the employer contribution rate. The
       cost savings impact of this change will  become  more  significant  with
       time  as  the number of post-1/1/10 members grows as a percentage of the
       total membership.
         Our "new entrant rate", a hypothetical employer contribution rate that
       would occur if we started a new Retirement System without any assets, is
       equal to 11.8% of pay under the current benefit structure. This  can  be
       thought  of as the cost of the benefit structure for new entrants, based
       on current actuarial assumptions. Under the proposed benefit  structure,
       this new entrant rate would be equal to 8.7% of pay.
         The  source of this estimate is Fiscal Note 2009-92 dated November 16,
       2009 prepared by the Actuary of the New York State Teachers'  Retirement
       System and is intended for use only during the 2009 Legislative Session.



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