STATE OF NEW YORK
________________________________________________________________________
6618
2021-2022 Regular Sessions
IN ASSEMBLY
March 23, 2021
___________
Introduced by M. of A. BRABENEC -- read once and referred to the Commit-
tee on Governmental Employees
AN ACT granting Camille and Brian Mulkeen, the parents of Detective
Brian Mulkeen, special accidental death benefits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Notwithstanding the provisions of any general or special
2 law, rule or regulation to the contrary, Camille and Brian Mulkeen who
3 were the parents of Detective Brian Mulkeen who was previously employed
4 by the New York City police department as a Detective and was a Tier 3
5 member of the Police Pension Fund at the time of his death on September
6 29, 2019 shall be eligible to file for any special accidental death
7 benefits that would have been available to Brian Mulkeen or his widow or
8 widower under section 208-f of the general municipal law. Any amounts
9 paid under section 208-f of the general municipal law to Brian Mulkeen,
10 his estate or Camille and Brian Mulkeen prior to the filing of the
11 application for benefits pursuant to this act shall be deducted from the
12 benefit payable thereafter.
13 § 2. All costs pursuant to this act shall be borne by the city of New
14 York.
15 § 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY OF BILL: This proposed legislation would provide to deceased
Detective Brian Mulkeen's parents the Special Accidental Death Benefit
(SADB) provided to surviving spouses pursuant to General Municipal Law
(GML) section 208-f.
Effective Date: Upon enactment.
BACKGROUND: Detective Mulkeen died as a Tier 3 Enhanced member of the
New York City Police Pension Fund (POLICE) on September 29, 2019. His
surviving parents, Brian and Camille Mulkeen, currently receive the
annual accidental death retirement allowance equal to 50% of his five
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06349-02-1
A. 6618 2
year final average salary pursuant to Retirement and Social Security Law
(RSSL) section 509.
If this legislation is passed, Detective Mulkeen's parents would be
eligible for the SADB provided by under GML Section 208-f, entitling his
parents to receive an annual benefit equal to 100% of his final year's
compensation, not less than the next higher grade, retroactively and
prospectively, less any accidental death benefit paid.
Note that beginning in Fiscal Year 2018, the SADB, including 3% annual
escalation, is included as a liability for POLICE notwithstanding the
State appropriation provision contained in GML section 208-f(e).
FINANCIAL IMPACT - PRESENT VALUES: The estimated financial impact of
this proposal has been calculated as the difference between the present
value of (1) and (2), where:
(1) is Detective Mulkeen's final year's compensation, not less than
the next higher grade, his parents would receive (Gross Benefit) if the
proposed legislation were enacted (retroactive to the date of death on
September 29, 2019), and
(2) is the accidental death benefit currently being paid.
Based on the actuarial assumptions and methods described herein, the
enactment of this proposed legislation would increase the Present Value
of Future Benefits (PVFB) and the Unfunded Accrued Liability (UAL) of
POLICE by approximately $2.3 million. This calculation does not reflect
the offset for a Social Security death benefit, if any, payable to Brian
and Camille Mulkeen.
FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
Section 13-638.2(k-2) of the Administrative Code of the City of New York
(ACCNY), new UAL attributable to benefit changes are to be amortized as
determined by the Actuary, but are generally amortized over the remain-
ing working lifetime of those impacted by the benefit changes.
For the purposes of this Fiscal Note, because Detective Mulkeen is
deceased and has no remaining working lifetime, the entire increase in
UAL would be recognized immediately.
CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is
assumed that the changes in the UAL and annual employer contributions
would be reflected for the first time in the June 30, 2021 actuarial
valuation of POLICE. In accordance with the One-Year Lag Methodology
(OYLM) used to determine employer contributions, the increase in employ-
er contributions would be reflected in Fiscal Year 2023.
CENSUS DATA: As of June 30, 2021, Brian and Camille Mulkeen will be
approximately age 65 and 66 respectively and will receive an annual
accidental death benefit. Below is a summary of the benefits, calcu-
lated as of the date of death, provided by POLICE:
* Annual Accidental Death Benefit: $33,606
* Annual SADB Benefit: $120,034
* Annual Gross Benefit: $153,640
ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the PVFB presented
herein have been calculated based on the actuarial assumptions and meth-
ods in effect for the June 30, 2019 (Lag) actuarial valuation used to
determine the Preliminary Fiscal Year 2021 employer contributions of
POLICE.
The Actuary is proposing a set of changes for use in the June 30, 2019
(Lag) actuarial valuations of POLICE to determine the Final Fiscal Year
2021 Employer Contributions (2021 A&M). If the 2021 A&M is enacted, it
is estimated that it would produce an 1% increase in PVFB that still
rounds to the result shown above.
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RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the realization of the actuarial assumptions used, as well as
certain demographic characteristics of POLICE and other exogenous
factors such as investment, contribution, and other risks. If actual
experience deviates from actuarial assumptions, the actual costs could
differ from those presented herein. Costs are also dependent on the
actuarial methods used, and therefore different actuarial methods could
produce different results. Quantifying these risks is beyond the scope
of this Fiscal Note.
Not measured in this Fiscal Note are the following:
* The initial, additional administrative costs to implement the
proposed legislation.
* The impact of this proposed legislation on Other Postemployment
Benefit (OPEB) costs.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Retirement Systems and
Pension Funds. I am a Fellow of the Society of Actuaries, an Enrolled
Actuary under the Employee Retirement Income and Security Act of 1974, a
Member of the American Academy of Actuaries, and a Fellow of the Confer-
ence of Consulting Actuaries. I meet the Qualification Standards of the
American Academy of Actuaries to render the actuarial opinion contained
herein. To the best of my 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 2021-10 dated March 16,
2021 was prepared by the Chief Actuary for the New York City Police
Pension Fund. This estimate is intended for use only during the 2021
Legislative Session.
