STATE OF NEW YORK
________________________________________________________________________
6286--A
2017-2018 Regular Sessions
IN ASSEMBLY
March 1, 2017
___________
Introduced by M. of A. JOYNER, D'URSO, ZEBROWSKI, KEARNS, TITONE, PHEF-
FER AMATO, SIMON, COOK, ORTIZ, SKOUFIS, SIMANOWITZ, HARRIS, ENGLE-
BRIGHT, ROSENTHAL, AUBRY, JONES -- Multi-Sponsored by -- M. of A.
LENTOL, LUPARDO, NOLAN -- read once and referred to the Committee on
Governmental Employees -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the general municipal law and the retirement and social
security law, in relation to increasing certain 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. Subdivision c of section 208-f of the general municipal
2 law, as amended by chapter 347 of the laws of 2016, is amended to read
3 as follows:
4 c. Commencing July first, two thousand [sixteen] seventeen the special
5 accidental death benefit paid to a widow or widower or the deceased
6 member's children under the age of eighteen or, if a student, under the
7 age of twenty-three, if the widow or widower has died, shall be esca-
8 lated by adding thereto an additional percentage of the salary of the
9 deceased member (as increased pursuant to subdivision b of this section)
10 in accordance with the following schedule:
11 calendar year of death
12 of the deceased member per centum
13 1977 or prior [216.7%] 226.2%
14 1978 [207.5%] 216.7%
15 1979 [198.5%] 207.5%
16 1980 [189.8%] 198.5%
17 1981 [181.4%] 189.8%
18 1982 [173.2%] 181.4%
19 1983 [165.2%] 173.2%
20 1984 [157.5%] 165.2%
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06480-03-7
A. 6286--A 2
1 1985 [150.0%] 157.5%
2 1986 [142.7%] 150.0%
3 1987 [135.7%] 142.7%
4 1988 [128.8%] 135.7%
5 1989 [122.1%] 128.8%
6 1990 [115.7%] 122.1%
7 1991 [109.4%] 115.7%
8 1992 [103.3%] 109.4%
9 1993 [97.4%] 103.3%
10 1994 [91.6%] 97.4%
11 1995 [86.0%] 91.6%
12 1996 [80.6%] 86.0%
13 1997 [75.4%] 80.6%
14 1998 [70.2%] 75.4%
15 1999 [65.3%] 70.2%
16 2000 [60.5%] 65.3%
17 2001 [55.8%] 60.5%
18 2002 [51.3%] 55.8%
19 2003 [46.9%] 51.3%
20 2004 [42.6%] 46.9%
21 2005 [38.4%] 42.6%
22 2006 [34.4%] 38.4%
23 2007 [30.5%] 34.4%
24 2008 [26.7%] 30.5%
25 2009 [23.0%] 26.7%
26 2010 [19.4%] 23.0%
27 2011 [15.9%] 19.4%
28 2012 [12.6%] 15.9%
29 2013 [9.3%] 12.6%
30 2014 [6.1%] 9.3%
31 2015 [3.0%] 6.1%
32 2016 [0.0%] 3.0%
33 20170.0%
34 § 2. Subdivision c of section 361-a of the retirement and social secu-
35 rity law, as amended by chapter 347 of the laws of 2016, is amended to
36 read as follows:
37 c. Commencing July first, two thousand [sixteen] seventeen the special
38 accidental death benefit paid to a widow or widower or the deceased
39 member's children under the age of eighteen or, if a student, under the
40 age of twenty-three, if the widow or widower has died, shall be esca-
41 lated by adding thereto an additional percentage of the salary of the
42 deceased member, as increased pursuant to subdivision b of this section,
43 in accordance with the following schedule:
44 calendar year of death
45 of the deceased member per centum
46 1977 or prior [216.7%] 226.2%
47 1978 [207.5%] 216.7%
48 1979 [198.5%] 207.5%
49 1980 [189.8%] 198.5%
50 1981 [181.4%] 189.8%
51 1982 [173.2%] 181.4%
52 1983 [165.2%] 173.2%
53 1984 [157.5%] 165.2%
54 1985 [150.0%] 157.5%
55 1986 [142.7%] 150.0%
56 1987 [135.7%] 142.7%
A. 6286--A 3
1 1988 [128.8%] 135.7%
2 1989 [122.1%] 128.8%
3 1990 [115.7%] 122.1%
4 1991 [109.4%] 115.7%
5 1992 [103.3%] 109.4%
6 1993 [97.4%] 103.3%
7 1994 [91.6%] 97.4%
8 1995 [86.0%] 91.6%
9 1996 [80.6%] 86.0%
10 1997 [75.4%] 80.6%
11 1998 [70.2%] 75.4%
12 1999 [65.3%] 70.2%
13 2000 [60.5%] 65.3%
14 2001 [55.8%] 60.5%
15 2002 [51.3%] 55.8%
16 2003 [46.9%] 51.3%
17 2004 [42.6%] 46.9%
18 2005 [38.4%] 42.6%
19 2006 [34.4%] 38.4%
20 2007 [30.5%] 34.4%
21 2008 [26.7%] 30.5%
22 2009 [23.0%] 26.7%
23 2010 [19.4%] 23.0%
24 2011 [15.9%] 19.4%
25 2012 [12.6%] 15.9%
26 2013 [9.3%] 12.6%
27 2014 [6.1%] 9.3%
28 2015 [3.0%] 6.1%
29 2016 [0.0%] 3.0%
30 20170.0%
31 § 3. This act shall take effect July 1, 2017.
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 2017.
Insofar as this bill would amend the Retirement and Social Security
Law, it is estimated that there would be an additional annual cost of
approximately $469,000 above the approximately $10.7 million current
annual cost of this benefit. This cost would be shared by the State of
New York and all participating employers of the New York State and Local
Police and Fire Retirement System.
Summary of relevant resources:
The membership data used in measuring the impact of the proposed
change was the same as that used in the March 31, 2016 actuarial valu-
ation. Distributions and other statistics can be found in the 2016
Report of the Actuary and the 2016 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015
and 2016 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, 2016
New York State and Local Retirement System Financial Statements and
Supplementary Information.
A. 6286--A 4
I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
This estimate, dated January 10, 2017 and intended for use only during
the 2017 Legislative Session, is Fiscal Note No. 2017-2, prepared by the
Actuary for the New York State and Local Retirement System.
FISCAL NOTE: PROVISIONS OF PROPOSED LEGISLATION - OVERVIEW: With
respect to the City of New York (the City), this proposed legislation
would amend General Municipal Law (GML) Section 208-f(c) to increase
certain Special Accidental Death Benefits (SADB) for surviving spouses,
dependent children, and/or certain other individuals (Eligible Benefici-
aries) of former uniformed employees of the City and the New York City
Health and Hospitals Corporation, and for certain former employees of
the Triborough Bridge and Tunnel Authority, who were members of certain
New York City Pension Funds or Retirement Systems (NYCRS) and died as a
natural and proximate result of an accident sustained in the performance
of duty.
The Effective Date of the proposed legislation would be July 1, 2017.
IMPACT ON BENEFITS - SADB RECIPIENTS: With respect to the NYCRS, the
proposed legislation would impact the SADB payable to certain survivors
of members of the:
* New York City Employees' Retirement System (NYCERS),
* New York City Police Pension Fund (POLICE), or
* New York Fire Department Pension Fund (FIRE),
and who are employed by one of the following employers in certain
positions:
* New York City Police Department - Uniformed Position,
* New York City Fire Department - Uniformed Position,
* New York City Housing Authority - Uniformed Position,
* New York City Transit Authority - Uniformed Position,
* New York City Department of Correction - Uniformed Position,
* New York City - Uniformed Position as Emergency Medical Technician
(EMT),
* New York City Health and Hospitals Corporation - Uniformed Position
as EMT, or
* Triborough Bridge and Tunnel Authority - Bridge and Tunnel Position.
DESCRIPTION OF BENEFITS PAYABLE: Under the GML, the basic SADB is
defined to equal:
The salary of the deceased member at date of death (or, in certain
instances, a greater salary based on rank or other status) (Final Sala-
ry), less the following payments to an Eligible Beneficiary:
* Any NYCRS death benefit as adjusted by any Supplementation or Cost-
of-Living Adjustment (COLA),
* Any Social Security death benefit, and
* Any Worker's Compensation benefit.
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 spouse nor dependent child is alive, the SADB may be
paid to certain other individuals if eligible in accordance with certain
laws related to the World Trade Center attack.
The GML also provides that the SADB is subject to escalation based on
the calendar year in which the former member died. The SADB has been
increased by an additional cumulative, incremental percentage of Final
Salary for deaths occurring on or after calendar years 1977.
Under the proposed legislation, effective July 1, 2017, an additional
3.0% of Final Salary would be applied to the SADB paid due to deaths
A. 6286--A 5
occurring in each calendar year on and after 1977. The SADB for deaths
occurring prior to 1977 would receive the same escalation as deaths
occurring in 1977.
FINANCIAL IMPACT - EMPLOYER PAYMENTS: With respects to the NYCRS,
since these SADB are provided on a pay-as-you-go basis, the additional
annual employer payments expected to be paid during the first year, if
the proposed legislation is enacted, would equal approximately $3.1
million.
The SADB payments are made by the NYCRS who are reimbursed by the
City.
Historically, the State of New York (the State) reimbursed the City
for most GML Section 208-f payments. However, it is the understanding of
the Actuary that since 2009 the State has limited its reimbursement to a
fixed amount. Should this amount not be increased, then the additional
cost of this proposed legislation would be borne entirely by the City of
New York.
FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES OF BENEFITS (APVB): With
respect to the Eligible Beneficiaries of deceased NYCRS members who
would be impacted by this proposed legislation, under the actuarial
assumptions used in the June 30, 2016 (Lag) actuarial valuations of the
NYCRS, including an Actuarial Interest Rate (AIR) assumption of 7.0% per
annum, the enactment of this proposed legislation would increase the
APVB by approximately $34.7 million as of June 30, 2017.
Note that beginning with the June 30, 2016 actuarial valuations of
NYCRS, the Actuary has elected to include the liability for SADB bene-
fits, including assumed future increases of 3.0% per year, when deter-
mining the employer contributions. Therefore, the additional cost asso-
ciated with this proposed legislation has already been accounted for and
will not result in an increase in employer contributions.
OTHER COSTS: The enactment of this proposed legislation would also be
expected to result in modest increases in administrative expenses of
NYCERS, POLICE, FIRE, the employers and certain New York City agencies.
CENSUS DATA: The financial impact of the proposed legislation is based
upon the census data for such Eligible Beneficiaries provided by the
NYCRS.
The following table shows, by Retirement System, the number of
deceased members with Eligible Beneficiaries who qualify for SADB as
reported by the NYCRS and the estimated annual Accidental death benefit,
including both the City and State portions, paid by the NYCRS, prior to
the increase purposed to be effective July 1, 2017.
Table 1
Total Accidental Death Benefit paid by the NYCRS
($ Millions)
Number of Deceased Annual Accidental Death
Members with Eligible Benefit Prior to Proposed
Retirement System Survivors July 1, 2017 Increase
NYCERS 31 $ 2.2
POLICE 340 34.7
FIRE 61367.8
A. 6286--A 6
Total 984 $ 104.7
ACTUARIAL ASSUMPTIONS AND METHODS: Additional APVB have been computed
based on the actuarial assumptions and methods in effect for the June
30, 2016 (Lag) actuarial valuations of NYCERS, POLICE and FIRE used to
determine the Preliminary Fiscal Year 2018 employer contributions,
including an Actuarial Interest Rate (AIR) assumption of 7.0% per annum
(net of Investment Expenses).
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Pension Funds and Retire-
ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the
Conference of Consulting Actuaries and a Member of the American Academy
of Actuaries. I Meet the Qualification Standards of the American Academy
of Actuaries to render the actuarial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2017-07 dated April 14,
2017, was prepared by the Chief Actuary for the New York City Employees'
Retirement System, the New York City Police Pension Fund, and the New
York Fire Department Pension Fund. This estimate is intended for use
only during the 2017 Legislative Session.
