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 20240.0%
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 20240.0%
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.
