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S09076 Summary:

BILL NOS09076
 
SAME ASSAME AS A10111
 
SPONSORGOUNARDES
 
COSPNSR
 
MLTSPNSR
 
Amd 208-f, Gen Muni L; amd 361-a, R & SS L
 
Increases certain special accidental death benefits for state and local retirement system members.
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S09076 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9076
 
                    IN SENATE
 
                                     April 16, 2024
                                       ___________
 
        Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
          printed to be committed to the Committee on Civil Service and Pensions
 
        AN  ACT to amend the general municipal law and the retirement and social
          security law, in relation to increasing the special  accidental  death
          benefit of certain deceased members
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision c of section 208-f  of  the  general  municipal
     2  law,  as  amended by chapter 213 of the laws of 2023, is amended to read
     3  as follows:
     4    c. Commencing July first, two thousand [twenty-three] twenty-four  the
     5  special  accidental  death  benefit  paid  to  a widow or widower or the
     6  deceased member's children under the age of eighteen or, if  a  student,
     7  under  the  age of twenty-three, if the widow or widower has died, or to
     8  the deceased member's parents if the member has no widow, widower, chil-
     9  dren under the age of eighteen, or a student under the  age  of  twenty-
    10  three,  shall be escalated by adding thereto an additional percentage of
    11  the salary of the deceased member (as increased pursuant to  subdivision
    12  b of this section) in accordance with the following schedule:

    13       calendar year of death
    14       of the deceased member              per centum
    15            1977 or prior                  [289.5%] 301.2%
    16            1978                           [278.2%] 289.5%
    17            1979                           [267.1%] 278.2%
    18            1980                           [256.5%] 267.1%
    19            1981                           [246.1%] 256.5%
    20            1982                           [236.0%] 246.1%
    21            1983                           [226.2%] 236.0%
    22            1984                           [216.7%] 226.2%
    23            1985                           [207.5%] 216.7%
    24            1986                           [198.5%] 207.5%
    25            1987                           [189.8%] 198.5%
    26            1988                           [181.4%] 189.8%
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14663-04-4

        S. 9076                             2
 
     1            1989                           [173.2%] 181.4%
     2            1990                           [165.2%] 173.2%
     3            1991                           [157.5%] 165.2%
     4            1992                           [150.0%] 157.5%
     5            1993                           [142.7%] 150.0%
     6            1994                           [135.7%] 142.7%
     7            1995                           [128.8%] 135.7%
     8            1996                           [122.1%] 128.8%
     9            1997                           [115.7%] 122.1%
    10            1998                           [109.4%] 115.7%
    11            1999                           [103.3%] 109.4%
    12            2000                            [97.4%] 103.3%
    13            2001                            [91.6%]  97.4%
    14            2002                            [86.0%]  91.6%
    15            2003                            [80.6%]  86.0%
    16            2004                            [75.4%]  80.6%
    17            2005                            [70.2%]  75.4%
    18            2006                            [65.3%]  70.2%
    19            2007                            [60.5%]  65.3%
    20            2008                            [55.8%]  60.5%
    21            2009                            [51.3%]  55.8%
    22            2010                            [46.9%]  51.3%
    23            2011                            [42.6%]  46.9%
    24            2012                            [38.4%]  42.6%
    25            2013                            [34.4%]  38.4%
    26            2014                            [30.5%]  34.4%
    27            2015                            [26.7%]  30.5%
    28            2016                            [23.0%]  26.7%
    29            2017                            [19.4%]  23.0%
    30            2018                            [15.9%]  19.4%
    31            2019                            [12.6%]  15.9%
    32            2020                             [9.3%]  12.6%
    33            2021                             [6.1%]   9.3%
    34            2022                             [3.0%]   6.1%
    35            2023                             [0.0%]   3.0%
    36            2024                                      0.0%
 
    37    § 2. Subdivision c of section 361-a of the retirement and social secu-
    38  rity  law,  as amended by chapter 213 of the laws of 2023, is amended to
    39  read as follows:
    40    c. Commencing July first, two thousand [twenty-three] twenty-four  the
    41  special  accidental  death  benefit  paid  to  a widow or widower or the
    42  deceased member's children under the age of eighteen or, if  a  student,
    43  under  the  age of twenty-three, if the widow or widower has died, shall
    44  be escalated by adding thereto an additional percentage of the salary of
    45  the deceased member, as increased pursuant  to  subdivision  b  of  this
    46  section, in accordance with the following schedule:
 
    47       calendar year of death
    48       of the deceased member              per centum
    49            1977 or prior                    [289.5%] 301.2%
    50            1978                             [278.2%] 289.5%
    51            1979                             [267.1%] 278.2%
    52            1980                             [256.5%] 267.1%
    53            1981                             [246.1%] 256.5%
    54            1982                             [236.0%] 246.1%

        S. 9076                             3
 
     1            1983                             [226.2%] 236.0%
     2            1984                             [216.7%] 226.2%
     3            1985                             [207.5%] 216.7%
     4            1986                             [198.5%] 207.5%
     5            1987                             [189.8%] 198.5%
     6            1988                             [181.4%] 189.8%
     7            1989                             [173.2%] 181.4%
     8            1990                             [165.2%] 173.2%
     9            1991                             [157.5%] 165.2%
    10            1992                             [150.0%] 157.5%
    11            1993                             [142.7%] 150.0%
    12            1994                             [135.7%] 142.7%
    13            1995                             [128.8%] 135.7%
    14            1996                             [122.1%] 128.8%
    15            1997                             [115.7%] 122.1%
    16            1998                             [109.4%] 115.7%
    17            1999                             [103.3%] 109.4%
    18            2000                              [97.4%] 103.3%
    19            2001                              [91.6%]  97.4%
    20            2002                              [86.0%]  91.6%
    21            2003                              [80.6%]  86.0%
    22            2004                              [75.4%]  80.6%
    23            2005                              [70.2%]  75.4%
    24            2006                              [65.3%]  70.2%
    25            2007                              [60.5%]  65.3%
    26            2008                              [55.8%]  60.5%
    27            2009                              [51.3%]  55.8%
    28            2010                              [46.9%]  51.3%
    29            2011                              [42.6%]  46.9%
    30            2012                              [38.4%]  42.6%
    31            2013                              [34.4%]  38.4%
    32            2014                              [30.5%]  34.4%
    33            2015                              [26.7%]  30.5%
    34            2016                              [23.0%]  26.7%
    35            2017                              [19.4%]  23.0%
    36            2018                              [15.9%]  19.4%
    37            2019                              [12.6%]  15.9%
    38            2020                               [9.3%]  12.6%
    39            2021                               [6.1%]   9.3%
    40            2022                               [3.0%]   6.1%
    41            2023                               [0.0%]   3.0%
    42            2024                                        0.0%

    43    § 3. This act shall take effect July 1, 2024.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would amend both the General Municipal Law and the Retire-
        ment and Social Security Law to increase the salary used in the computa-
        tion of the special accidental death benefit by 3% in  cases  where  the
        date of death was before 2024.
          Insofar  as  this bill affects the New York State and Local Police and
        Fire Retirement System (NYSLPFRS), the increased costs would  be  shared
        by  the  State  of New York and the local participating employers in the
        NYSLPFRS. If this bill were enacted during the 2024 Legislative Session,
        the increase in the present value of  benefits  would  be  approximately
        $8.5 million.
             NYSLPFRS       Increase in present    Increase in required

        S. 9076                             4

                            value benefits         contributions
             Tiers 1-5      $8.5 million           $4.1 million
             Tier 6         $0.0 million           $4.4 million
             Total          $8.5 million           $8.5 million
 
          In  the NYSLPFRS, this benefit improvement is funded by increasing the
        billing rates charged annually to cover both retrospective and  prospec-
        tive  benefit increases. The annual contribution required of all partic-
        ipating employers in NYSLPFRS is 0.02% of billable salary,  or  approxi-
        mately  $170,000  to the State of New York and approximately $700,000 to
        the local participating employers. This permanent annual cost will  vary
        in subsequent billing cycles with changes in the billing rate and salary
        of the members in the NYSLPFRS.
          Summary of relevant resources:
          Membership  data as of March 31, 2023 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2023 actuari-
        al valuation. Distributions and other statistics can  be  found  in  the
        2023  Report  of the Actuary and the 2023 Annual Comprehensive Financial
        Report.
          The actuarial assumptions and methods used are described in  the  2023
        Annual  Report  to  the  Comptroller  on  Actuarial Assumptions, and the
        Codes, Rules and Regulations  of  the  State  of  New  York:  Audit  and
        Control.
          The Market Assets and GASB Disclosures are found in the March 31, 2023
        New  York  State  and  Local  Retirement System Financial Statements and
        Supplementary Information.
          I am a member of the American Academy of Actuaries and meet the Quali-
        fication Standards to render the actuarial opinion contained herein.
          This fiscal note does not constitute a legal opinion on the  viability
        of  the  proposed change nor is it intended to serve as a substitute for
        the professional judgment of an attorney.
          This estimate, dated April 10, 2024, and intended for use only  during
        the  2024  Legislative Session, is Fiscal Note No. 2024-158, prepared by
        the Actuary for the New York State and Local Retirement System.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY: This proposed legislation, as it relates to the New York City
        Retirement Systems and Pension Funds  (NYCRS),  would  increase  Special
        Accidental  Death  Benefits  (SADB) for Eligible Beneficiaries of former
        members of NYCRS who died due to an accident sustained in  the  perform-
        ance of duty.
                             IMPACT ON EMPLOYER CONTRIBUTIONS*
                  by Fiscal Year for the first 25 years ($ in Millions)

                  Year  NYCERS  POLICE  FIRE      TOTAL
 
                  2025  0.4     3.5     4.1       8.0
                  2026  0.4     3.5     4.1       8.0
                  2027  0.4     3.5     4.1       8.0
                  2028  0.4     3.5     4.1       8.0
                  2029  0.4     3.5     4.1       8.0
                  2030  0.4     3.5     4.1       8.0
                  2031  0.4     3.5     4.1       8.0
                  2032  0.4     3.5     4.1       8.0
                  2033  0.4     3.5     4.1       8.0
                  2034  0.4     3.4     4.1       7.9
                  2035  0.4     3.4     4.1       7.9

        S. 9076                             5
 
                  2036  0.4     3.4     4.1       7.9
                  2037  0.4     3.4     4.1       7.9
                  2038  0.4     3.4     4.1       7.9
                  2039  0.0     0.1     0.0       0.1
                  2040  0.0     0.1     0.0       0.1
                  2041  0.0     0.1     0.0       0.1
                  2042  0.0     0.0     0.0       0.0
                  2043  0.0     0.0     0.0       0.0
                  2044  0.0     0.0     0.0       0.0
                  2045  0.0     0.0     0.0       0.0
                  2046  0.0     0.0     0.0       0.0
                  2047  0.0     0.0     0.0       0.0
                  2048  0.0     0.0     0.0       0.0
                  2049  0.0     0.0     0.0       0.0
          *  The  costs of this proposed legislation have already been accounted
        for and will not result in a further increase in employer contributions.
        The table above shows the expected decrease in employer contributions if
        the proposed legislation is not enacted.
 
          The impact on employer contributions in the first year is estimated to
        be $7.9 million for New York City and $0.1 million for other obligors of
        NYCRS.
                              IMPACT ON ACTUARIAL LIABILITIES
                           as of June 30, 2023 ($ in Millions)
        Present Value (PV)              NYCERS  POLICE         FIRE
 
        PV of Benefits:                 3.3     29.5           34.9
        PV of Employee Contributions:   0.0     0.0            0.0
        PV of Employer Contributions:   3.3     29.5           34.9
        Unfunded Accrued Liabilities:   3.1     28.3           34.4
 
                        AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                      NYCERS  POLICE    FIRE
 
        Number of Payments:           14      14        14
        Fiscal Year of Last Payment:  2038    2038      2038
        Amortization Payment:         0.4 M   3.5 M     4.1 M
 
          The decrease in expected pension payments due to this legislation  not
        passing would be treated as an actuarial gain.
          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    POLICE    FIRE
 
        Active Members
        - Number Count:          18,784    33,800    10,720
        - Average Age:           41.8      37.6      40.8
        - Average Service:       11.3      11.3      13.9
        - Average Salary:        105,600   128,600   139,500
        Receiving Members
        - Number Count:          85        596       706
        - Average Age:           66.0      63.6      66.9
 
          IMPACT  ON  MEMBER  BENEFITS: The SADB cost-of-living adjustments have
        been passed by the legislature each  year.  Under  the  proposed  legis-

        S. 9076                             6

        lation,  an additional 3.0% of Final Salary would be applied to the SADB
        paid effective July 1, 2024.
          The  SADB is paid to the deceased member's surviving spouse, if alive.
        If the spouse is no longer alive, the  SADB  is  paid  to  the  deceased
        member's  children  until  age  eighteen  or until age twenty-three if a
        student. If neither a spouse nor a dependent child is  alive,  the  SADB
        may  be  paid  to  the member's parents or certain other individuals, if
        eligible.
          The proposed legislation would impact  the  SADB  payable  to  certain
        survivors  of  NYCERS,  POLICE,  and  FIRE  who were employed in certain
        uniformed positions of the following New York City employers:
          Police Department, Fire Department, Department of Sanitation,  Housing
        Authority,  Transit  Authority,  Department  of  Correction,  Health and
        Hospitals Corporation (as EMT), New  York  City  (as  Emergency  Medical
        Technician - EMT), or Triborough Bridge and Tunnel Authority (Bridge and
        Tunnel Position).
          ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
        calculated based on the Revised 2021 Actuarial Assumptions  and  Methods
        of the impacted retirement systems.
          Based  on  the historical practice of providing 3.0% COLAs on the SADB
        each year, and the likelihood that COLAs will continue to be granted  in
        the  future,  the Actuary assumes that the SADB benefit will continue to
        increase 3.0% per year in the future  when  determining  NYCRS  employer
        contributions.
          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 2024-44 dated  April  11,
        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.
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