New York State Assembly

 
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A07563 Summary:

A07563 Actions:

A07563 Committee Votes:

Committee:GOVERNMENTAL EMPLOYEES   Chair:Pheffer Amato      
DATE:05/29/2024AYE/NAY:14/0  Action: Favorable refer to committee Ways and Means        
Pheffer Amato
Aye
DeStefano
Aye
Aubry
Aye
Reilly
Aye
Colton
Aye
Giglio
Aye
Zebrowski
Aye
Tannousis
Aye
Santabarbara
Aye
Eichenstein
Aye
Fall
Aye
Jones
Aye
Burke
Aye
Sillitti
Aye

Committee:RULES   Chair:Pretlow      
DATE:06/03/2024AYE/NAY:28/0  Action: Favorable         
Heastie
Excused
Barclay
Aye
Weinstein
Aye
Hawley
Aye
Pretlow
Aye
Giglio
Aye
Cook
Aye
Blankenbush
Aye
Glick
Aye
Norris
Aye
Aubry
Aye
Ra
Aye
Dinowitz
Aye
Brabenec
Aye
Colton
Aye
Palmesano
Excused
Magnarelli
Aye
Reilly
Aye
Paulin
Aye
Peoples-Stokes
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Zebrowski
Aye
Thiele
Aye
Braunstein
Aye
Dickens
Excused
Davila
Aye
Hyndman
Aye
Rozic
Aye
Bronson
Aye

Committee:WAYS AND MEANS   Chair:Weinstein      
DATE:06/03/2024AYE/NAY:34/0  Action: Favorable refer to committee Rules        
Weinstein
Aye
Ra
Aye
Glick
Aye
Fitzpatrick
Aye
Pretlow
Aye
Hawley
Aye
Colton
Aye
Blankenbush
Aye
Cook
Aye
Norris
Aye
Aubry
Aye
Brabenec
Aye
Benedetto
Aye
Palmesano
Excused
Weprin
Aye
Walsh
Aye
Ramos
Aye
DeStefano
Aye
Braunstein
Aye
Manktelow
Aye
McDonald
Aye
Smullen
Aye
Rozic
Aye
Dinowitz
Aye
Magnarelli
Aye
Zebrowski
Aye
Bronson
Aye
Dilan
Aye
Seawright
Aye
Hyndman
Aye
Walker
Aye
Bichotte Hermel
Aye
Simon
Aye
Cruz
Aye
Fahy
Aye

A07563 Floor Votes:

A07563 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7563--B
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 25, 2023
                                       ___________
 
        Introduced  by  M. of A. PHEFFER AMATO, SHIMSKY, SILLITTI, DURSO, JONES,
          ARDILA, WEPRIN,  HEVESI,  COLTON,  AUBRY,  REILLY,  DeSTEFANO,  SIMON,
          BICHOTTE HERMELYN,  KIM,  BERGER,  SIMONE,  DAVILA, SEPTIMO, TAYLOR --
          read once and referred to the Committee on Governmental  Employees  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee  --  recommitted  to  the  Committee  on
          Governmental  Employees  in accordance with Assembly Rule 3, sec. 2 --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee
 
        AN  ACT  to amend the retirement and social security law, in relation to
          death benefits for active New York city transit authority members
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Section 604-b of the retirement and social security law is
     2  amended by adding a new subdivision f to read as follows:
     3    f. Death benefits. Notwithstanding any provision of law to the contra-
     4  ry, where a New York city transit authority member would have been enti-
     5  tled to a service retirement benefit at the time of their death but  had
     6  not  yet filed for such service retirement pursuant to subparagraph (iv)
     7  of paragraph one of subdivision c of this section, and where such  death
     8  occurs on or after the effective date of this subdivision, the benefici-
     9  ary  or beneficiaries of such member may elect to receive, in a lump sum
    10  or on an annuitized basis, an amount payable which shall be equal to the
    11  pension reserve that would have been established had such member retired
    12  on the date of their death.
    13    § 2. Notwithstanding any other provision of law to the contrary,  none
    14  of  the  provisions  of  this  act shall be subject to section 25 of the
    15  retirement and social security law.
    16    § 3. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10259-06-4
        A. 7563--B                          2
 
          SUMMARY: This proposed legislation would provide an alternative  death
        benefit for Transit Tier 4 and Tier 6 Special Plan members of NYCERS.
 
                 EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
                  by Fiscal Year for the first 25 years ($ in Millions)
                            Year      NYCERS
                            2025        4.1
                            2026        4.1
                            2027        4.1
                            2028        4.1
                            2029        4.1
                            2030        4.1
                            2031        4.1
                            2032        4.1
                            2033        4.1
                            2034        4.1
                            2035        4.1
                            2036        4.1
                            2037        0.9
                            2038        0.9
                            2039        0.9
                            2040        0.9
                            2041        0.9
                            2042        0.9
                            2043        0.9
                            2044        0.9
                            2045        0.9
                            2046        0.9
                            2047        1.0
                            2048        1.0
                            2049        1.0
           Employer Contribution impact beyond Fiscal Year 2049 is not shown.
         Projected contributions include future new hires that may be impacted.
 
          The  increase  in  employer contributions will be allocated to the New
        York City Transit Authority.
 
                  INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                           as of June 30, 2023 ($ in Millions)
                     Present Value (PV)                 NYCERS
                     PV of Benefits:                    32.6
                     PV of Employee Contributions:      0.0
                     PV of Employer Contributions:      32.6
                     Unfunded Accrued Liabilities:      24.4
 
                       AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                        NYCERS
                     Number of Payments:                12
                     Fiscal Year of Last Payment:       2036
                     Amortization Payment:              3.2 M

          Unfunded Accrued Liability increases were amortized over the  expected
        remaining  working  lifetime  of  those  impacted by the benefit changes
        using level dollar payments.
        A. 7563--B                          3
 
          CENSUS DATA: The estimates presented herein are based  on  preliminary
        census  data  collected  as  of  June  30, 2023. The census data for the
        impacted population is summarized below.
 
                                                        NYCERS
                     Active Members
                     - Number Count:                    36,819
                     - Average Age:                     48.3
                     - Average Service:                 11.6
                     - Average Salary:                  90,200
 
          IMPACT  ON  MEMBER  BENEFITS:  Currently,  NYCERS  Transit members are
        generally entitled to a lump sum  ordinary  death  benefit  equal  to  a
        multiple  of salary plus the return of member accumulated contributions,
        if any. These death benefits are generally calculated as three times the
        final year's salary  and  may  be  subject  to  salary  caps  and  other
        reductions.
          Under the proposed legislation, the ordinary death benefit for members
        who  are  eligible to receive a service retirement benefit and die prior
        to retirement would be the greater of their current death benefit or the
        value of the pension reserve that would have been established  had  they
        retired on the date of their death. The pension reserve is the actuarial
        present value of all pension payments expected to be made had the member
        retired  for service.  This type of lump sum pension reserve death bene-
        fit is sometimes referred to as a Death Gamble, and is  afforded,  in  a
        similar form, to Tier 1 NYCERS members.
          ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
        calculated based on the Revised 2021 Actuarial Assumptions  and  Methods
        of the impacted retirement systems. In addition:
          *  New  entrants were assumed to replace exiting members so that total
        payroll increases by 3% each year for NYC Transit members.  New  entrant
        demographics were developed based on data for recent new hires and actu-
        arial judgement.
          RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
        highly on the actuarial assumptions, methods,  and  models  used,  demo-
        graphics  of  the  impacted population and other factors such as invest-
        ment, contribution, and other risks. If actual experience deviates  from
        actuarial   assumptions,  the  actual  costs  could  differ  from  those
        presented herein. Quantifying these risks is beyond the  scope  of  this
        Fiscal Note.
          This  Fiscal  Note  is intended to measure pension-related impacts and
        does not include other potential costs (e.g., administrative  and  Other
        Postemployment Benefits).
          STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
        sky  are members of the Society of Actuaries and the American Academy of
        Actuaries. We are members of NYCERS but do not believe  it  impairs  our
        objectivity  and  we  meet  the  Qualification Standards of the American
        Academy of Actuaries to render the actuarial opinion  contained  herein.
        To  the  best  of  our knowledge, the results contained herein have been
        prepared in accordance with generally accepted actuarial principles  and
        procedures  and  with  the Actuarial Standards of Practice issued by the
        Actuarial Standards Board.
          FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-45 dated  April  19,
        2024  was prepared by the Chief Actuary for the New York City Retirement
        Systems and Pension Funds. This estimate is intended for use only during
        the 2024 Legislative Session.