STATE OF NEW YORK
________________________________________________________________________
5936--B
2015-2016 Regular Sessions
IN SENATE
June 12, 2015
___________
Introduced by Sens. RITCHIE, YOUNG -- read twice and ordered printed,
and when printed to be committed to the Committee on Rules -- recom-
mitted to the Committee on Civil Service and Pensions in accordance
with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the retirement and social security law, in relation to
death benefits for certain members; and providing for the repeal of
such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision b of section 448 of the retirement and social
2 security law is amended by adding a new paragraph 3 to read as follows:
3 3. Provided further, notwithstanding any other provision of this arti-
4 cle to the contrary, where a member is in a title as defined in subdivi-
5 sion i of section eighty-nine of this chapter under the jurisdiction of
6 the department of corrections and community supervision, and would have
7 been entitled to a service retirement benefit at the time of his or her
8 death and where his or her death occurs on or after July first, two
9 thousand sixteen, the beneficiary or beneficiaries may elect to receive,
10 in a lump sum, an amount payable which shall be equal to the pension
11 reserve that would have been established had the member retired on the
12 date of his or her death, or the value of the death benefit and the
13 reserve-for-increased-take-home-pay, if any, whichever is greater.
14 § 2. Subdivision b of section 508 of the retirement and social securi-
15 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
16 as follows:
17 b. A member of a retirement system subject to the provisions of this
18 article who is a policeman, fireman, correction officer, investigator
19 revised plan member or sanitation man and is in a plan which permits
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11357-09-6
S. 5936--B 2
1 immediate retirement upon completion of a specified period of service
2 without regard to age or who is subject to the provisions of section
3 five hundred four or five hundred five of this article, shall upon
4 completion of ninety days of service be covered for financial protection
5 in the event of death in service pursuant to this subdivision.
6 1. Such death benefit shall be equal to three times the member's sala-
7 ry raised to the next highest multiple of one thousand dollars, but in
8 no event shall it exceed three times the maximum salary specified in
9 section one hundred thirty of the civil service law or, in the case of a
10 member of a retirement system other than the New York city employees'
11 retirement system, or in the case of a member of the New York city
12 employees' retirement system who is a New York city uniformed
13 correction/sanitation revised plan member or an investigator revised
14 plan member, the specific limitations specified for age of entrance into
15 service contained in subparagraphs (b), (c), (d), (e) and (f) of para-
16 graph two of subdivision a of this section.
17 2. Provided further, notwithstanding any other provision of this arti-
18 cle to the contrary, where a member is in a title as defined in subdivi-
19 sion i of section eighty-nine of this chapter under the jurisdiction of
20 the department of corrections and community supervision, and would have
21 been entitled to a service retirement benefit at the time of his or her
22 death and where his or her death occurs on or after July first, two
23 thousand sixteen, the beneficiary or beneficiaries may elect to receive,
24 in a lump sum, an amount payable which shall be equal to the pension
25 reserve that would have been established had the member retired on the
26 date of his or her death, or the value of the death benefit and the
27 reserve-for-increased-take-home-pay, if any, whichever is greater.
28 § 3. This act shall take effect immediately and shall expire five
29 years after the date on which it shall have become a law.
FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
This bill would modify the in-service death benefit for tiers 2
through 6 state correction officers. The in-service death benefit will
be the value of the pension reserve as if the member had retired on
their date of death. The provision is scheduled to expire five years
after the date it is enacted.
If such a proposal is enacted during the 2016 legislative session,
there will be a one-time past service cost of $13.4 million, which would
be borne by the state of New York as a one-time payment. This estimate
is based on the assumption that payment will be made on March 1, 2017.
If this provision is extended or made permanent by subsequent legis-
lation, there would be additional costs.
These estimated costs are based on 20,228 state correction officers
with a total annual salary of approximately $1.48 billion for the fiscal
year ending March 31, 2015.
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, 2015 actuarial valu-
ation. Distributions and other statistics can be found in the 2015
Report of the Actuary and the 2015 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015
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, 2015
New York State and Local Retirement System Financial Statements and
Supplementary Information.
S. 5936--B 3
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 February 4, 2016, and intended for use only
during the 2016 Legislative Session, is Fiscal Note No. 2016-47,
prepared by the Actuary for the New York State and Local Retirement
System.
