Relates to the rate of interest used in the actuarial valuation of liabilities for the purpose of calculating contributions to the New York city employees' retirement system, the New York city teachers' retirement system, the police pension fund, subchapter two, the fire department pension fund, subchapter two and the board of education retirement system of such city by public employers and other obligors required to make employer contributions to such retirement systems, the crediting of special interest and additional interest and additional interest to members of such retirement systems, and the allowance of supplementary interest on the funds of such retirement systems; extends such provisions until June 30, 2029.
A07428 is a pension-related bill affecting several New York City retirement systems: NYCERS, NYCTRS, the Police Pension Fund, the Fire Pension Fund, and the Board of Education Retirement System. It updates the statutory interest rates used in actuarial valuation calculations and in the crediting of special interest, additional interest, and supplementary interest for those systems. The bill does not change the underlying pension formulas, but it extends the existing interest-rate provisions that have been in place since 2011.
Specifically, the bill extends through June 30, 2029 the 7% actuarial valuation interest rate used to calculate employer contributions, the 1.25% special interest rate, the 1.25% additional interest rate, and the 0% supplementary interest rate. It is set to take effect on July 1, 2025, or immediately if enacted later, with retroactive effect back to that date. In practical terms, it preserves the current framework for determining contribution obligations and interest credits for the affected city retirement systems and the public employers and other obligors that fund them.
The bill amends section 13-638.2 of the New York City Administrative Code to extend existing interest-rate schedules for five city retirement systems through June 30, 2029. This affects how actuarial liabilities are valued and how employer contributions are calculated, as well as how interest is credited to members and funds within the systems. The measure is primarily technical and fiscal in nature, maintaining the status quo rather than creating new benefits or altering eligibility, but it has direct budgetary implications for New York City and other contributing employers.
The bill appears to have broad support and little visible opposition. It advanced unanimously or nearly unanimously through committee and passed both the Assembly and Senate floor votes overwhelmingly, including a 144-0 Assembly final passage vote and a 58-0 Senate final passage vote. The voting pattern suggests the measure was viewed as routine and necessary to keep pension funding rules current.
There is no recorded committee transcript or substantive debate in the provided materials, and the vote history shows minimal resistance. The only notable dissent appears in the Assembly Ways and Means Committee, where the bill passed 30-2, but later votes were unanimous or near-unanimous. Any potential point of contention would likely center on the fiscal effect of extending the 7% valuation rate and the associated contribution obligations for New York City and participating employers, but no specific objections are documented here.