NEW YORK CITY EMPLOYEES RETIREMENT SYSTEM
NYCERS
225 ADAMS Street, Suite 2300
Brooklyn, NY 11201-375
Tel. (347) 643-3000
RETIREMENT AND BENEFITS
Executive Director
John Murphy
MEMORANDUM
To:
Staff
Memo # 2001 - 4
From:
Leo J. Vallee
Date:
February 26, 2001
Subject:
Chapter 577 of the laws of 2000
Chapter 577 of the laws of 2000 established 25-Year retirement Programs for EMT Members.
DEFINITIONS:
EMT Member:
A member of NYCERS employed by the City of New York or the New York City Health and Hospitals Corporation in a title whose duties are those of an Emergency Medical Technician (EMT), or Advanced Emergency Medical Technician, or in a title whose duties require the supervision of employees whose duties are those of an Emergency Medical Technician or Advanced Emergency Medical Technician.
Starting Date:
December 8, 2000, the enactment date of the programs (the date the Governor signed the bill into law).
Programs:
Tier 1 - 25-Year Retirement Program for EMT Members
Tier 2 - Optional 25-Year Improved Benefit Retirement Program for EMT Members
Tier 4 - 25-Year Retirement Program for EMT Members
Participant:
Any EMT Member who is entitled to the rights, benefits and privileges and is subject to the obligations of the 25-Year retirement programs established by Chapter 577 of the laws of 2000.
Discontinued Member:
A Participant who while an EMT Member discontinued service as a member and has a right to a deferred vested benefit under one of the Programs.
Allowable Service as an EMT Member:
All service as an EMT Member and all service while employed by the City of New York or the New York City Health and Hospitals Corporation in the title Motor Vehicle Operator.
PARTICIPATION IN THE TIER 1 AND TIER 2 PROGRAMS:
- See Special Rules Regarding Participation for Tier 4 Members
Any person who is an EMT Member on December 8, 2000 (the Starting Date of the Programs) may elect to become a Participant in the Program by filing within 180 days after December 8, 2000 (June 6, 2001) a duly executed application with the New York City Employee’s Retirement System (NYCERS), provided he or she is an EMT Member on the date such application is filed.
Any member who becomes an EMT Member after December 8, 2000, may elect to become a Participant in one of the Programs by filing within 180 days after becoming such EMT Member, a duly executed application with NYCERS provided he or she is an EMT Member at the time of filing such application.
Any election to participate in a Program is irrevocable.
When any Participant in a Program ceases to hold a position qualifying him or her for participation in that Program, he or she shall cease to be a Participant and shall not be eligible for the benefits of the Program.
Any Participant in a Program, who terminates service as an EMT Member and returns to such service at a later date, shall again become a Participant on that date.
Any person who is eligible to become a Participant and who fails to timely file an executed application for participation with NYCERS, shall not thereafter be eligible to become a Participant in the Programs.
ADDITIONAL MEMBER CONTRIBUTIONS (AMC’s) - TIERS 1, 2 AND 4
In addition to the normal member contributions required, each Participant in one of the Programs shall contribute an additional 6¼% of compensation earned from all service as an EMT Member rendered on and after December 8, 2000.
The AMC’s are required to be paid starting with the first full payroll period after the member becomes a Participant in one of the Programs. Interest will be charged at the rate of 8¼% for Tiers 1 and 2 members and 5% for Tier 4 members on any deficiency in AMC’s for any period after the first full payroll period the member becomes a Participant in one of the Programs.
No interest is due on a deficiency in AMC’s for the period from December 8, 2000 up to the beginning of the first full pay period after the member becomes a Participant in one of the Programs.
A Participant shall contribute AMC’s until the later of:
- the date he or she is eligible to retire with 30 years of Allowable Service as an EMT Member,
OR
- December 8, 2001
These contributions are in lieu of AMC’s under Chapter 96 of the laws of 1995, and no member paying these contributions is required to pay Chapter 96 AMC’s.
Where a Participant who is otherwise eligible for service retirement did not, prior to the effective date of retirement, pay the entire amount of a contribution deficiency, or repay the entire amount of a loan of his or her AMC’s, that Participant, nevertheless, shall be eligible to retire. However, that Participant’s service retirement benefit will be reduced by the actuarial equivalent for the contribution deficiency and/or outstanding loan of his or her AMC’s (using the standard Tier 4 loan reduction factors established by the Chief Actuary).
Where a Participant has not paid in full any contribution deficiency, with interest, and a benefit (i.e. disability retirement or death benefit), other than a refund of member’s accumulated deductions, becomes payable to the Participant, or his or her designated beneficiary, the actuarial equivalent of any such unpaid amount will be deducted from the benefit otherwise payable.
All AMC’s required, which are received by NYCERS, shall be paid into the Contingent Reserve Fund (CRF) and shall be the property of the retirement system.
AMC’s (and interest thereon) shall not for any purpose be deemed to be accumulated deductions of a member while a Participant in one of the Programs.
LOANS
A Participant shall be permitted to borrow from his or her AMC’s in the RRF. Such loans are to be governed by the same rights, privileges, obligations and procedures as for Tier 4 members borrowing from their Member Contribution Accumulation Fund (MCAF) account.
Refunds
Should a Participant who has rendered less than 15 years of Credited Service cease to hold a position as an EMT Member, for any reason whatsoever, his or her accumulated AMC’s may be withdrawn together with interest (Tiers 1 and 2 members earn 8¼% interest on their AMC’s while on deposit, Tier 4 members earn 5% interest on their AMC’s while on deposit). Any outstanding loan on the AMC’s will be deducted from the amount on deposit, before it is refunded to the member. (With 15 or more years of Credited Service, no withdrawal is possible.)
Should a Participant who has withdrawn his or her AMC’s (and any interest paid thereon) again become a Participant in one of the Programs, he or she will be charged with a deficiency (including interest) calculated as if such AMC’s had never been made.
No member, while a Participant in one of the Programs, shall have the right to withdraw his or her AMC’s.
AMC’s may not be offset by Social Security deductions (§138b RSSL) or reduced by Increased Take Home Pay (ITHP).
Such AMC’s shall be deemed to be and treated as employer contributions pursuant to §414h of the Internal Revenue Code (IRC).
TIER 1 (Administrative Code §13-157.2)
25-Year Retirement Program
(E-25)
SERVICE RETIREMENT BENEFIT
A Participant in the 25-Year Retirement Program who:
- has completed 25 or more years of Allowable Service as an EMT Member, and
- files an application for service retirement as least 30 days before it is to become effective,
§ An annuity (the actuarial equivalent of the required contributions for the first 25 years of Allowable Service as an EMT Member), plus a pension for ITHP for the first 25 years of Allowable Service as an EMT Member, plus a pension which, when added to the annuity and pension for ITHP equals:
55% of Final Salary (the salary earned or earnable in the year prior to retirement)
plus
§ an additional 1.70% of Final Salary for each year (or fraction thereof) beyond the first 25 years of Allowable Service as an EMT Member (from the completion of the first 25 years of Allowable Service as an EMT Member to the date of retirement).
Vesting
A Participant in the Program who:
- discontinues service, and
- has completed at least five but less than 25 years of Allowable City Service, and
- does not withdraw in whole or part his or her accumulated member contributions,
shall be entitled to a vested benefit which vests automatically.
The vested benefit becomes payable on the earliest date the Participant could have retired for service (the date on which the Participant could have completed 25 years of Allowable Service as an EMT Member).
The vested benefit shall be a pension equal to:
§ 2.20% of Final Salary multiplied by the number of years of Allowable Service as an EMT Member credited to the Participant at the time of discontinuance.
TIER 2 (Article 11 - §445-e of the RSSL)
25-YEAR IMPROVED BENEFIT RETIREMENT PROGRAM (EMT-I)
SERVICE RETIREMENT BENEFIT
A Participant in the 25-Year Improved Benefit Retirement Program who:
- has completed 25 or more years of Allowable Service as an EMT Member, and
- has made or paid while an EMT Member all AMC’s and interest (if any) required by the Program, and
- files an application for service retirement as least 30 days before it is to become effective, shall be entitled to an early service retirement benefit equal to:
§ An annuity (the actuarial equivalent of the required contributions for the first 25 years of Allowable Service as an EMT Member), plus a pension for ITHP for the first 25 years of Allowable Service as an EMT Member, plus a pension which, when added to the annuity and pension for ITHP equals:
50% of Final Average Salary (FAS)
plus
§ an additional 2% of FAS for each year (or fraction thereof) beyond the first 25 years of Allowable Service as an EMT Member (from the completion of the first 25 years of Allowable Service as an EMT Member to the date of retirement, but not to exceed more than five years of additional Allowable Service as an EMT Member.
Note:
A Tier 2 Participant cannot receive a greater benefit than would be received by a Tier 1 Participant.
VESTING
There is no provision for vesting under the Program for Tier 2 Participants.
TIER 4 (Article 15 §604-e of the RSSL)
25-YEAR RETIREMENT PROGRAM (EMT25)
SPECIAL RULES REGARDING PARTICIPATION
Any person who is a Tier 4 EMT Member on December 8, 2000 (the enactment date of the Program) may elect to become a Participant in the Program by filing within 180 days after December 8, 2000 (June 6, 2001) a duly executed application with NYCERS, provided he or she is an EMT Member on the date such application is filed.
Any NYCERS Tier 4 member who becomes an EMT Member after December 8, 2000 and has pre-existing Tier 4 rights, may elect to become a Participant in the Program by filing within 180 days after becoming such EMT Member, a duly executed application with NYCERS, provided he or she is an EMT Member on the date such application is filed.
Each EMT Member who becomes subject to the provisions of Article 15 (Tier 4) after December 8, 2000 shall become a Participant in the Program on the date he or she becomes such an EMT Member.
Provided, however: a person who becomes subject to Article 15 after December 8, 2000 and who has exceeded age 30 upon employment as an EMT Member SHALL BE EXEMPT FROM PARTICIPATION in the 25-Year Retirement Program IF SUCH PERSON ELECTS NOT TO PARTICIPATE by filing a duly executed form with NYCERS within 180 days of becoming an EMT Member.
Special Note:
A person, as described above, who elects to be exempt from participation in the 25-Year Retirement Program for Tier 4 EMT Members will be mandated into the Chapter 96, 25-Year Retirement Program.
EXAMPLES:
- A person who became a NYCERS’ member after December 8, 2000 in a title other than EMT Member, who becomes an EMT Member after December 8, 2000, may elect to become a Participant in the 25-Year Retirement Program.
- A person who becomes a NYCERS’ member after December 8, 2000 shall become a Participant in the 25-Year Retirement Program on the date he or she becomes such an EMT Member.
EXCEPT
If the person is 30 years of age or older when he or she becomes a NYCERS’ member after December 8, 2000, he or she may file a form with NYCERS electing to be exempt from participation in the 25-Year Retirement Program. This person, if they elect to do so, will be mandated into the Chapter 96, 25-Year Retirement Program.
Service Retirement Benefit
A Participant who:
- has completed 25 or more years of Allowable Service as an EMT Member, and
- has paid before the effective date of retirement all AMC’s, and
- files an application for service retirement at least 30 days before it is to become effective,
shall be entitled to a early service retirement benefit equal to:
§ 50% of FAS on account of the first 25 years of Allowable Service as an EMT Member,
plus
§ 2% of FAS for each additional year (or fraction thereof) beyond the first 25 years of Allowable Service as an EMT Member, but not to exceed more than five years of additional service as an EMT Member
Vesting
A Participant who:
- discontinues service as a Participant (other than by death or retirement), and
- completed at least five but less than 25 years of Allowable Service as an EMT Member, and
- has paid (prior to discontinuance) all AMC’s, and
- does not withdraw in whole or part his or her accumulated member contributions (and interest, if any),
shall be entitled to a vested benefit which vests automatically.
The vested benefit becomes payable on the earliest date the Participant could have retired for service (the date on which the member could have completed 25 years of Allowable Service as an EMT Member).
The Vested Benefit shall be equal to:
§ a pension of 2% of FAS for each year (or fraction thereof) of Allowable Service as an EMT Member credited to the Participant at the time of discontinuance
L:\Deputy Executive Director\Memo # 2001-4 - EMT 25-Year Program Summary.docLast printed February 27, 2001 11:12 AM