Chapter 448 – Allows Special Plan members to use basic or additional member contributions to offset any deficits in MCAF or RRF accounts before or after retirement.

Previously, Chapter 467 of the Laws of 2017 allowed participants in Special Plans to, upon retirement, use a surplus in their Additional Member Contributions (AMCs) to offset any deficit in their basic member contribution account, or to use a surplus in Basic Member Contributions (BMCs) to offset a deficit in the additional member contribution account.  Chapter 448 of the Laws of 2018 now permits this offset at any time during membership. Participants in the following Plans are affected by this legislation:

Article 14 Special Plans:

• Twenty-Year  Retirement  Program  for New York City Correction Members below the Rank of Captain (RSSL § 504-a)
• Twenty-Year Retirement Program for New York City Correction Members of the Rank of Captain or above (RSSL § 504-b)
• Twenty-Year Retirement Program for New York City Correction Members (RSSL § 504-d)

Article 15 Special Plans:

• Twenty-Year Retirement Program for New York City Sanitation Members (RSSL § 604-a)
• Twenty-Five-Year and Age Fifty-Five Retirement Program  for  New  York City Transit Authority Members (RSSL § 604-b)
• Optional  Twenty-Five-Year  Early  Retirement Program for Certain New York City Members (RSSL § 604-c)
• Twenty-Year/Age Fifty Retirement Program  for Triborough  Bridge and Tunnel Members (RSSL § 604-c)
• Age Fifty-Seven Retirement Program for Certain New York City Members (RSSL § 604-d)
• Twenty-Five Year Retirement Program for Dispatcher Members (RSSL § 604-e)
• Twenty-Five Year Retirement Program for EMT Members (RSSL § 604-e)
• Twenty-Five Year Retirement Program for Deputy Sheriff Members (RSSL § 604-f)
• Twenty-Five  Year  Retirement  Program  for  Special  Officer, Parking Control Specialist, School Safety Agent, Campus  Peace  Officer  or  New York City Taxi and Limousine Inspector Members (RSSL § 604-f)
• Twenty-Five Year/Age Fifty Retirement Program for Automotive Members (RSSL § 604-g)
• Twenty-Five Year Retirement Program for Police Communications Members (RSSL § 604-h)

This bill is effective as of December 21, 2018.

Chapter 266 – Extension of time to File a Notice of Participation in WTC Rescue, Recovery, and Cleanup Operations

Chapter 266 of the Laws of 2018 extends the time for members or eligible beneficiaries to file a Notice of Participation in World Trade Center Rescue, Recovery, and Cleanup Operations to September 11, 2022.

This law was signed on September 7, 2018, and shall be deemed to have been in full force and effect on and after September 11, 2001. 

Chapter 179 – Increase to the Special Accidental Death Benefit

This law amends the Retirement and Social Security Law (RSSL) § 361-a(c) and General Municipal Law (GML) § 208-f by increasing the deceased member’s salary used in the computation of the special accidental death benefit by adding to it an additional percentage. The beneficiaries of the following NYCERS members are covered: Correction Officers, Housing and Transit Police, certain EMTs, TBTA members, and Uniformed Sanitation members. This law is effective as of July 1, 2018. 

Internal Revenue Code (IRC) section 402(c) - CORRECTED

Relates to the rollover period for actual distributions arising from plan loan offsets.

The new tax law amends IRC section 402(c) and extends the time that a pensioner has to roll over his or her outstanding loan balance at retirement in order to avoid tax consequences.  When a pensioner has an outstanding loan balance at retirement, the pensioner’s retirement allowance is actuarially reduced, which is referred to as a loan offset under the IRC.  A loan offset is treated as an actual distribution, which, under the previous law, is eligible for a tax-free rollover to another eligible retirement plan within 60 days.  Under the new law, the retiree has until the due date of his or her tax return for the year in which the distribution was made. For example, if a member retires on January 1, 2018 with an outstanding loan balance, the member will have until April 15, 2019 (or later if there are extensions to the due date of the member’s tax return) to roll over the outstanding balance amount to an eligible retirement plan.

This law does not affect members who leave city service (not retired) with an outstanding loan balance because NYCERS requires that the member continue to pay back the loan.

This law took effect on January 1, 2018.