Relates to authorizing the son of Barry M. Dennis, Gregory Dennis, to be designated the beneficiary of his retirement benefits by Bruce M. Dennis acting in his capacity as power of attorney.
STATE OF NEW YORK
________________________________________________________________________
3474--A
2019-2020 Regular Sessions
IN SENATE
February 7, 2019
___________
Introduced by Sen. KAPLAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT in relation to authorizing the son of Barry M. Dennis to be
designated the beneficiary of his retirement benefits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Notwithstanding any other provision of law to the contrary,
2 Gregory Dennis, who had been named as the survivor beneficiary of his
3 father Barry M. Dennis, a former employee of the Nassau County district
4 attorney's office, on June 7, 2017 by Bruce M. Dennis acting in his
5 capacity as power of attorney for his brother Barry and who had been
6 confirmed as the beneficiary in a letter from the New York state and
7 local employees' retirement system dated June 19, 2017 and who was later
8 informed in a letter dated July 14, 2017 which was received by Bruce M.
9 Dennis on July 19, 2017 that as a result of a statutory gifts rider
10 pursuant to section 5-1514 of the general obligations law not adjoining
11 the statutory short form power of attorney that the paper work naming
12 Gregory Dennis as the beneficiary was not properly submitted and as a
13 result the only option that was legally available to Barry M. Dennis was
14 "Option 0" wherein no beneficiary is selected and the pension benefit
15 cease upon the death of the member, shall be deemed the beneficiary of
16 the retirement benefits of Barry M. Dennis as if such required statutory
17 gifts rider had been present, and shall receive the option that was
18 selected on the option election form that was rejected due to the unac-
19 ceptable power of attorney, if on or before six months after the effec-
20 tive date of this act, Bruce M. Dennis shall submit a request therefor
21 to the state comptroller.
22 § 2. Any amounts paid by the New York state and local employees'
23 retirement system to Barry M. Dennis, his estate or to his benefici-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02363-05-0
S. 3474--A 2
1 aries, which exceed those amounts that would have been payable if such
2 required statutory gift rider had been present, will be deducted on an
3 actuarially equivalent basis over the expected future lifetime of Grego-
4 ry Dennis from the benefits payable to him pursuant to this act.
5 § 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
Barry M. Dennis was retired under an option 0, affording no contin-
uance upon his death, following a failure of his agent to provide the
necessary and requested documentation to properly execute an election of
a Joint Survivor 100%, under which payments would continue to his son
Gregory Dennis upon his death. This bill would deem Gregory Dennis the
beneficiary of a Joint Survivor 100% continuance, upon the written
request of the member's agent Bruce M. Dennis. Any overpayments by the
New York State and Local Employees' Retirement System (ERS) on behalf of
Barry M. Dennis will offset the future benefit payable via actuarial
reduction.
If this bill is enacted during the 2020 legislative session, there
will be an immediate past service cost of approximately $833,000. This
cost would be shared by the State of New York and the participating
employers in the ERS.
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, 2019 actuarial valu-
ation. Distributions and other statistics can be found in the 2019
Report of the Actuary and the 2019 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015,
2016, 2017, 2018, and 2019 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, 2019
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 January 2, 2020, and intended for use only during
the 2020 Legislative Session, is Fiscal Note No. 2020-21, prepared by
the Actuary for the New York State and Local Retirement System.