Chapter 105 – 2010 Early Retirement Incentive
Signed into law by the Governor on June 2, 2010, this law authorizes the City of New York and participating employers to offer an Early Retirement Incentive to certain public employees. In order to participate in the ERI, employers must opt in by enactment of a local law or adoption of a board resolution as appropriate.
The following is a brief overview of the ERI. Please see our 2010 Early Retirement Incentive Fact Sheet for complete details.
The 2010 ERI is a two-part offering — Part A and Part B. In general, eligibility for Part A is determined by employers targeting positions based on criteria including, but not limited to, the impact on public health and safety and seniority (except college faculty). Part B does not require such targeting but rather that a minimum age and service threshold is met. However, a person may be denied participation in Part B if his or her employer determines that he or she holds a position deemed critical to the maintenance of public health and safety.
Both Part A and Part B require that members meet active service requirements, filing requirements and minimum age and service thresholds. Eligible members retiring under Part A receive additional service credit, but may be subject to benefit reductions based on retirement plan and age. Eligible members retiring under Part B do not receive additional service credit, but may retire without a benefit reduction.
The benefits of Part A and Part B cannot be combined. Where an individual is eligible for Part A and Part B, he or she shall elect the part in which he or she would like to participate.
Chapter 157 – Purchase of Service for Layoff Period for School Construction Authority (SCA) Employees
Chapter 157 of the Laws of 2010 provides that an employee of the SCA who was suspended (laid off) on or after 12/01/02 because of economy measures taken by the SCA, and who returned to service prior to 01/08/08, shall be deemed to have been in continuous service for retirement purposes. Eligible members are required to make the same pension contributions they would have otherwise made had they remained in service during the “layoff period.” In addition, members must pay an “Extra Member Contribution (EMC),” the amount of which will be determined by the NYC Actuary.
Chapter 157 also provides that any member who was laid off during the applicable period, and who retired for service or disability from a position with the SCA prior to the effective date of Chapter 157 (July 07, 2010), may purchase service for the layoff period. Such retirees must file an application to purchase the service within 120 days after July 07, 2010 and pay the same pension contributions they would have otherwise made had they remained in service during this “layoff period,” including the EMC determined by the NYC Actuary, within one year after July 07, 2010.
Chapter 265 – Actuarial Interest Rate Extender
This law extends the actuarial interest rate of 8% for one year (expires June 30, 2011). The law also extends the “special” and “additional” interest rates used to credit the contributions and Increased-Take-Home-Pay (ITHP) Reserves for Tier 1 and 2 members for one year (expires June 30, 2011). Such interest rates equal 1.25% and, when added to the regular rate of interest of 7%, bring the total interest rate used to credit Tier 1 and 2 members’ accounts to 8.25%. Chapter 265 was signed by the Governor on July 30, 2010 and shall be deemed to have been in full force and effect on and after July 1, 2010.
Chapter 299 – CUNY Approval for Certain RSSL §211 Waivers
This law amends Retirement and Social Security Law (RSSL) §211 to transfer the approval authority for the issuance of RSSL §211 Waivers to service retirees returning to work in classified positions with the City University of New York (CUNY) from the New York City Department of Citywide Administrative Services to CUNY. Chapter 299 was signed by the Governor on July 30, 2010 and takes effect immediately.
Chapter 439 – Increase in Special Accidental Death Benefit
Chapter 439 of the Laws of 2010 increases the salary used in the computation of the special accidental death benefit provided under Section 208-f of the NYS General Municipal Law by 3%. The beneficiaries of the following NYCERS members are covered: members of the Uniformed Correction Force, Housing and Transit Police, Emergency Medical Technicians and Triborough Bridge and Tunnel Authority (TBTA) members. The benefit is payable to the widow, widower, or the children of the deceased (under 18 years of age or under 23 if the child is a student) if the widow or widower is deceased. This law was signed on August 30, 2010 and takes effect on July 1, 2010.