•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

A10022 Summary:

BILL NOA10022
 
SAME ASSAME AS S09119
 
SPONSORAbbate
 
COSPNSRColton, Cusick, Buttenschon, Griffin, Pheffer Amato
 
MLTSPNSR
 
Amd §§61-b, 361-b, 509-a & 607-i, R & SS L; amd §§512 & 2575, Ed L; amd §1266-h, Pub Auth L; amd §§13-149.1, 13-244.1, 13-347.1 & 13-544.1, NYC Ad Cd; amd §14, Chap 78 of 2021
 
Relates to extending the coronavirus disease 2019 (COVID-19) benefit for public employee death benefits until December 31, 2024.
Go to top

A10022 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10022
 
                   IN ASSEMBLY
 
                                     April 29, 2022
                                       ___________
 
        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on Governmental Employees
 
        AN  ACT  to  amend the retirement and social security law, the education
          law, the public authorities law and the  administrative  code  of  the
          city  of  New  York,  in relation to extending the coronavirus disease
          2019 (COVID-19) benefit for public employee  death  benefits;  and  to
          amend  chapter  78  of  the  laws of 2021, amending the retirement and
          social security law and other laws relating to establishing a  corona-
          virus  disease 2019 (COVID-19) benefit for public employee death bene-
          fits, in relation to the effectiveness thereof
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 3 of subdivision a of section 61-b of the retire-
     2  ment  and  social  security  law,  as added by chapter 78 of the laws of
     3  2021, is amended to read as follows:
     4    3. Such member died on or before December thirty-first,  two  thousand
     5  [twenty-two]  twenty-four,  and  COVID-19  caused or contributed to such
     6  member's death, as documented on such member's death certificate, or  as
     7  certified  by  a physician, nurse practitioner, or physician's assistant
     8  described in paragraph two of this subdivision  who  determines  with  a
     9  reasonable  degree of medical certainty that COVID-19 caused or contrib-
    10  uted to the member's death, such member's  statutory  beneficiary  shall
    11  receive  an  accidental death benefit, unless such statutory beneficiary
    12  elects to receive an ordinary death benefit.
    13    § 2. Paragraph 3 of subdivision a of section 361-b of  the  retirement
    14  and  social security law, as added by chapter 78 of the laws of 2021, is
    15  amended to read as follows:
    16    3. Such member died on or before December thirty-first,  two  thousand
    17  [twenty-two]  twenty-four,  and  COVID-19  caused or contributed to such
    18  member's death, as documented on such member's death certificate, or  as
    19  certified  by  a physician, nurse practitioner, or physician's assistant
    20  described in paragraph two of this subdivision  who  determines  with  a
    21  reasonable  degree of medical certainty that COVID-19 caused or contrib-
    22  uted to the member's death, such member's  statutory  beneficiary  shall
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14502-02-2

        A. 10022                            2
 
     1  receive  an  accidental death benefit, unless such statutory beneficiary
     2  elects to receive an ordinary death benefit.
     3    §  3.  Paragraph 3 of subdivision a of section 509-a of the retirement
     4  and social security law, as added by chapter 78 of the laws of 2021,  is
     5  amended to read as follows:
     6    3.  Such  member died on or before December thirty-first, two thousand
     7  [twenty-two] twenty-four, and COVID-19 caused  or  contributed  to  such
     8  member's  death, as documented on such member's death certificate, or as
     9  certified by a physician, nurse practitioner, or  physician's  assistant
    10  described  in  paragraph  two  of this subdivision who determines with a
    11  reasonable degree of medical certainty that COVID-19 caused or  contrib-
    12  uted  to  the  member's death, such member's statutory beneficiary shall
    13  receive an accidental death benefit, unless such  statutory  beneficiary
    14  elects to receive an ordinary death benefit.
    15    §  4.  Paragraph 3 of subdivision a of section 607-i of the retirement
    16  and social security law, as added by chapter 78 of the laws of 2021,  is
    17  amended to read as follows:
    18    3.  Such  member died on or before December thirty-first, two thousand
    19  [twenty-two] twenty-four, and COVID-19 caused  or  contributed  to  such
    20  member's  death, as documented on such member's death certificate, or as
    21  certified by a physician, nurse practitioner, or  physician's  assistant
    22  described  in  paragraph  two  of this subdivision who determines with a
    23  reasonable degree of medical certainty that COVID-19 caused or  contrib-
    24  uted  to  the  member's death, such member's statutory beneficiary shall
    25  receive an accidental death benefit, unless such  statutory  beneficiary
    26  elects to receive an ordinary death benefit.
    27    §  5.  Subparagraph (C) of paragraph 1 of subdivision h of section 512
    28  of the education law, as added by chapter 78 of the  laws  of  2021,  is
    29  amended to read as follows:
    30    (C)  such member died on or before December thirty-first, two thousand
    31  [twenty-two] twenty-four, and COVID-19 caused  or  contributed  to  such
    32  member's  death, as documented on such member's death certificate, or as
    33  certified by a physician, nurse practitioner, or  physician's  assistant
    34  described  in  subparagraph  (B) of this paragraph who determines with a
    35  reasonable degree of medical certainty that COVID-19 caused or  contrib-
    36  uted  to  the  member's death, such member's statutory beneficiary shall
    37  receive an accidental death benefit, unless such  statutory  beneficiary
    38  elects to receive an ordinary death benefit.
    39    §  6. Subparagraph (iii) of paragraph (a) of subdivision 26 of section
    40  2575 of the education law, as added by chapter 78 of the laws  of  2021,
    41  is amended to read as follows:
    42    (iii)  such  member died on or before December thirty-first, two thou-
    43  sand [twenty-two] twenty-four, and COVID-19  caused  or  contributed  to
    44  such  member's  death, as documented on such member's death certificate,
    45  or as certified by  a  physician,  nurse  practitioner,  or  physician's
    46  assistant  described  in  subparagraph (ii) of this paragraph who deter-
    47  mines with a reasonable degree of medical certainty that COVID-19 caused
    48  or contributed to the member's death, such member's statutory  benefici-
    49  ary  shall  receive  an  accidental death benefit, unless such statutory
    50  beneficiary elects to receive an ordinary death benefit.
    51    § 7. Subparagraph (iii) of paragraph (a) of subdivision 8  of  section
    52  1266-h of the public authorities law, as added by chapter 78 of the laws
    53  of 2021, is amended to read as follows:
    54    (iii)  Such  member died on or before December thirty-first, two thou-
    55  sand [twenty-two] twenty-four, and COVID-19  caused  or  contributed  to
    56  such  member's  death, as documented on such member's death certificate,

        A. 10022                            3
 
     1  or as certified by  a  physician,  nurse  practitioner,  or  physician's
     2  assistant  described  in  subparagraph (ii) of this paragraph who deter-
     3  mines with a reasonable degree of medical certainty that COVID-19 caused
     4  or  contributed to the member's death, such member's statutory benefici-
     5  ary shall receive an accidental death  benefit,  unless  such  statutory
     6  beneficiary elects to receive an ordinary death benefit.
     7    §  8. Paragraph (c) of subdivision 1 of section 13-149.1 of the admin-
     8  istrative code of the city of New York, as added by chapter  78  of  the
     9  laws of 2021, is amended to read as follows:
    10    (c)  Such member died on or before December thirty-first, two thousand
    11  [twenty-two] twenty-four, and COVID-19 caused  or  contributed  to  such
    12  member's  death, as documented on such member's death certificate, or as
    13  certified by a physician, nurse practitioner, or  physician's  assistant
    14  described  in  paragraph  (b)  of this subdivision who determines with a
    15  reasonable degree of medical certainty that COVID-19 caused or  contrib-
    16  uted  to  the  member's death, such member's statutory beneficiary shall
    17  receive an accidental death benefit, unless such  statutory  beneficiary
    18  elects to receive an ordinary death benefit.
    19    §  9. Paragraph (c) of subdivision 1 of section 13-244.1 of the admin-
    20  istrative code of the city of New York, as added by chapter  78  of  the
    21  laws of 2021, is amended to read as follows:
    22    (c)  Such member died on or before December thirty-first, two thousand
    23  [twenty-two] twenty-four, and COVID-19 caused  or  contributed  to  such
    24  member's  death, as documented on such member's death certificate, or as
    25  certified by a physician, nurse practitioner, or  physician's  assistant
    26  described  in  paragraph  (b)  of this subdivision who determines with a
    27  reasonable degree of medical certainty that COVID-19 caused or  contrib-
    28  uted  to  the  member's death, such member's statutory beneficiary shall
    29  receive an accidental death benefit, unless such  statutory  beneficiary
    30  elects to receive an ordinary death benefit.
    31    § 10. Paragraph (c) of subdivision 1 of section 13-347.1 of the admin-
    32  istrative  code  of  the city of New York, as added by chapter 78 of the
    33  laws of 2021, is amended to read as follows:
    34    (c) Such member died on or before December thirty-first, two  thousand
    35  [twenty-two]  twenty-four,  and  COVID-19  caused or contributed to such
    36  member's death, as documented on such member's death certificate, or  as
    37  certified  by  a physician, nurse practitioner, or physician's assistant
    38  described in paragraph (b) of this subdivision  who  determines  with  a
    39  reasonable  degree of medical certainty that COVID-19 caused or contrib-
    40  uted to the member's death, such member's  statutory  beneficiary  shall
    41  receive  an  accidental death benefit, unless such statutory beneficiary
    42  elects to receive an ordinary death benefit.
    43    § 11. Paragraph (c) of subdivision 1 of section 13-544.1 of the admin-
    44  istrative code of the city of New York, as added by chapter  78  of  the
    45  laws of 2021, is amended to read as follows:
    46    (c)  Such member died on or before December thirty-first, two thousand
    47  [twenty-two] twenty-four, and COVID-19 caused  or  contributed  to  such
    48  member's  death, as documented on such member's death certificate, or as
    49  certified by a physician, nurse practitioner, or  physician's  assistant
    50  described  in  paragraph  (b)  of this subdivision who determines with a
    51  reasonable degree of medical certainty that COVID-19 caused or  contrib-
    52  uted  to  the  member's death, such member's statutory beneficiary shall
    53  receive an accidental death benefit, unless such  statutory  beneficiary
    54  elects to receive an ordinary death benefit.
    55    §  12.  Section  14  of  chapter  78 of the laws of 2021, amending the
    56  retirement and social security law and other laws relating to establish-

        A. 10022                            4
 
     1  ing a coronavirus disease 2019 (COVID-19) benefit  for  public  employee
     2  death benefits, is amended to read as follows:
     3    §  14.  This  act shall take effect immediately and shall be deemed to
     4  have been in full force and effect on and after March 1, 2020;  provided
     5  that  the  provisions of this act shall expire and be deemed repealed on
     6  December 31, [2022] 2024.
     7    § 13. This act shall take effect immediately and shall  be  deemed  to
     8  have been in full force and effect on and after March 1, 2020.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY  OF  BILL: This proposed legislation, as it relates to the New
        York City Retirement Systems and  Pension  Funds  (NYCRS),  would  amend
        Sections  of the Retirement and Social Security Law (RSSL), the Adminis-
        trative Code of the City of New York (ACCNY), and the Education  Law  to
        extend  Accidental Death Benefits, less other statutory benefits paid or
        payable, to beneficiaries of  certain  members  of  the  New  York  City
        Employees'  Retirement  System  (NYCERS),  the  New  York City Teachers'
        Retirement System (TRS), the New York City Board of Education Retirement
        System (BERS), the New York City Police Pension Fund (POLICE),  and  the
        New  York  City Fire Pension Fund (FIRE) who physically reported to non-
        home work sites on and after March 1, 2020 and died on or before  Decem-
        ber  31,  2024  due  to  Coronavirus  Disease  2019  (COVID-19) that was
        contracted within 45 days of such reporting to work.
          This proposed legislation  extends  certain  provisions  contained  in
        Chapter  78  of  the Laws of 2021 that was set to expire on December 31,
        2022.
          Effective Date: Upon enactment, and  retroactive  to  March  1,  2020,
        except that the provisions shall expire and be deemed repealed on Decem-
        ber 31, 2024.
          IMPACT  ON BENEFITS PAYABLE: Under the proposed legislation, the bene-
        fits payable to beneficiaries of active members of NYCRS who die due  to
        COVID-19  between January 1, 2023 and December 31, 2024 would be revised
        from a lump sum Ordinary Death Benefit generally equal to three times  a
        member's last salary to a lifetime Accidental Death Benefit equal to 50%
        of  a  member's  wages  earned  during the last year of service plus, if
        applicable, the Special Accidental Death Benefit payable  under  General
        Municipal Law section 208-f.
          In  determining whether Accidental Death Benefits should be awarded, a
        deceased member must have a positive lab test  for  COVID-19  within  45
        days  of  reporting to such work assignment, or have been diagnosed with
        such condition, within the same period, from a qualified medical provid-
        er, either before or after the member's death.  The beneficiary of  such
        Actuary Fiscal Note  2022-23 for LBDC 14502-01-2  Page 1 deceased member
        would  also  have  to  show  that COVID-19 was the cause or contributing
        factor in the member's death, as documented by a death certificate or by
        a qualified health care provider.
          FINANCIAL IMPACT - OVERVIEW: There is very limited data  available  to
        estimate  the number of members who might die due to COVID-19 and poten-
        tially benefit from this proposed legislation. Therefore, the  estimated
        financial  impact  has been calculated on a per event basis equal to the
        increase in the Present Value of Future Benefits (PVFB) for  an  average
        member who dies from COVID-19 and would benefit from the proposed legis-
        lation.
          With  respect  to  an  individual  member, the additional cost of this
        proposed legislation could vary greatly depending on the member's length
        of service, age, and salary history.

        A. 10022                            5
 
          FINANCIAL IMPACT - PRESENT VALUES: Based on the census  data  and  the
        actuarial  assumptions  and  methods  described herein, the enactment of
        this proposed legislation would result in an increase in PVFB. A  break-
        down  of  the  PVFB  by NYCRS on average for each occurrence of death is
        shown in the table below.
 
          Estimated Additional Present Value of Future Benefits due to COVID-19
                                          Death
                      NYCERS       TRS            BERS
        Age < 40    $ 543,100    $ 338,100      $ 264,700
        40<=Age<60    422,700      318,400        183,900
        Age >= 60     229,400      202,200        112,100
         All Ages   $ 421,200    $ 312,700      $ 180,200
 
                      POLICE       FIRE           All Systems
        Age < 40    $ 1,947,200  $ 2,018,800    $ 750,700
        40<=Age<60    2,292,300    2,305,900      549,400
        Age >= 60     1,670,500    1,613,700      217,800
         All Ages    $ 2,078,600 $ 2,158,300    $ 569,600
 
        FINANCIAL  IMPACT  -  ANNUAL  EMPLOYER  CONTRIBUTIONS: Enactment of this
        proposed legislation would increase employer contributions,  where  such
        amount  would  depend on the number of members affected as well as other
        characteristics including the age, years of service, and salary  history
        of the member.
          As  there  is  very  limited  data currently available to estimate the
        number of members who might die  from  COVID-19,  the  financial  impact
        would  be  recognized  at  the time of event.   Consequently, changes in
        employer contributions have been estimated assuming that the increase in
        the PVFB will be financed over the same time period used  for  actuarial
        losses in accordance with Section 13-638.2(k-2) of the ACCNY. Using this
        approach,  the  additional PVFB would be amortized over a closed 15-year
        period (14 payments under the  One-Year  Lag  Methodology)  using  level
        dollar payments.
          Based  on  the  Actuary's  actuarial assumptions and methods described
        herein, the enactment of  this  proposed  legislation  is  estimated  to
        increase  first-year  annual  employer contributions on average for each
        death benefit due to COVID-19 as shown in the table below.
 
          Estimated Additional First-Year Annual Employer Contributions due to
                                     COVID-19 Death
                      NYCERS       TRS            BERS
        Age < 40    $ 64,200     $ 40,000       $ 31,300
        40<=Age<60    50,000       37,700         21,800
        Age >= 60     27,100       23,900         13,300
          All Ages  $ 49,800     $ 37,000       $ 21,300
 
        New York    $ 62,400     $ 37,300       $ 20,700
          City
        Non-City    $ 34,300     $ 29,200       $ 41,800
        Obligors
 
                      POLICE       FIRE           All Systems
        Age < 40    $ 230,300    $ 238,800      $ 88,800
        40<=Age<60    271,100      272,700        65,000
        Age >= 60     197,600      190,900        25,800

        A. 10022                            6
 
          All Ages  $ 245,900    $ 255,300      $ 67,400
 
        New York    $ 245,900    $ 255,300      $ 77,400
          City
        Non-City      N/A          N/A          $ 34,100
        Obligors

          With  respect to the timing, increases in employer contributions would
        depend upon when members die due to COVID-19 but,  generally,  increased
        employer contributions will first occur the second fiscal year following
        approval of the performance of duty death benefit.
          CENSUS  DATA:  The  estimates presented herein are based on the census
        data used in the Preliminary June 30, 2021 (Lag) actuarial valuations of
        NYCRS to determine the Preliminary Fiscal Year  2023  employer  contrib-
        utions.
          Counts    NYCERS       TRS            BERS
        Age < 40    50,381       45,938         5,022
        40<=Age<60  102,522      63,424         15,465
        Age >= 60   32,829       13,849         7,069
        All Ages    185,732      123,211        27,556
 
                    POLICE       FIRE           All Systems
        Age < 40    21,379       4,951          127,671
        40<=Age<60  13,463       5,594          200,468
        Age >= 60   164          248            54,159
        All Ages    35,006       10,793         382,298
 
        Average Age NYCERS       TRS            BERS
        Age < 40    33.3         33.0           33.5
        40<=Age<60  49.9         48.6           50.6
        Age >= 60   64.2         64.4           64.8
        All Ages    47.9         44.6           51.1
 
                    POLICE       FIRE           All Systems
        Age < 40    32.2         33.3           33.0
        40<=Age<60  45.6         47.2           49.2
        Age >= 60   61.9         61.9           64.3
        All Ages    37.5         41.2           45.9
 
        Average      NYCERS       TRS            BERS
        Service
        Age < 40     5.0          6.2           3.9
        40<=Age<60   13.4         15.5          9.3
        Age >= 60    19.8         20.1          13.7
        All Ages     12.2         12.5          9.4

                    POLICE       FIRE           All Systems
        Age < 40    7.1          7.0            5.8
        40<=Age<60  18.1         20.2           14.2
        Age >= 60   32.1         34.5           19.2
        All ages    11.4         14.5           12.1
 
        Average     NYCERS       TRS             BERS
        Salary
        Age < 40    $ 73,300     $ 82,400       $ 58,800
        40<=Age<60    85,800       101,200        55,300

        A. 10022                            7
 
        Age >= 60     85,400       91,600         47,300
        All Ages    $ 82,300     $ 93,100       $ 53,900
 
                    POLICE        FIRE          All Systems
        Age < 40    $ 106,000    $ 107,100      $ 82,800
        40<=Age<60    146,200      148,500        94,100
        Age >= 60     170,700      164,100        82,600
        All Ages    $ 121,800    $ 129,800      $ 88,700

        ACTUARIAL  ASSUMPTIONS  AND  METHODS: The changes in the PVFB and annual
        employer contributions presented herein have been  calculated  based  on
        the  actuarial  assumptions  and methods in effect for the June 30, 2021
        (Lag) actuarial valuations used to determine the Preliminary Fiscal Year
        2023 employer contributions of NYCRS.
          RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
        highly  on the realization of the actuarial assumptions used, as well as
        certain demographic characteristics of NYCRS and other exogenous factors
        such as investment, contribution, and other risks. If actual  experience
        deviates  from actuarial assumptions, the actual costs could differ from
        those presented herein. Costs are also dependent on the actuarial  meth-
        ods  used,  and  therefore  different  actuarial  methods  could produce
        different results.  Quantifying these risks is beyond the scope of  this
        Fiscal Note.
          Not measured in this Fiscal Note are the following:
          o  The  initial,  additional  administrative  costs  to  implement the
        proposed legislation.   o The impact of  this  proposed  legislation  on
        Other Postemployment Benefit (OPEB) costs.
          STATEMENT  OF  ACTUARIAL  OPINION: I, Michael J. Samet, am the Interim
        Chief Actuary for, and independent of,  the  New  York  City  Retirement
        Systems and Pension Funds. I am a Fellow of the Society of 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.  To  the  best  of my 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 2022-23 dated  April  18,
        2022  was  prepared  by  the Interim Chief Actuary for the five New York
        City Retirement Systems and Pension Funds. This estimate is intended for
        use only during the 2022 Legislative Session.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would allow a beneficiary of any member of a public  retire-
        ment  system  to  be  paid an accidental death benefit, as if the member
        died in the performance and discharge of duty, provided that the member
          a) physically reported for work on or after March 1, 2020,
          b) contracted COVID-19 within 45 days from such work date, and
          c) died from such disease on or before December 31, 2024.
          In addition to the first two criteria state above, Chapter 78  of  the
        Laws  of  2021 currently requires a member to have died from COVID-19 on
        or before December 31, 2022.
          A positive test result, death certificate citing COVID-19, or  certif-
        ication   by  certain  medical  personnel  is  sufficient  to  establish
        contraction and death from COVID-19.
          The accidental death benefit would  be  based  on  the  member's  plan
        coverage.  This bill also would create benefits payable under the Public
        Authorities Law.

        A. 10022                            8
 
          Insofar as this bill would affect the New York State and Local Employ-
        ees' Retirement System (ERS) and the New York State and Local Police and
        Fire Retirement System (PFRS), qualifying COVID-19 deaths which current-
        ly are considered ordinary deaths will be treated as accidental  deaths.
        The  cost  of the proposed benefit will depend upon the applicant's age,
        service, salary, plan, and benefit type otherwise payable.
 
             Service Retirement Eligible:         Yes                No
             PFRS Benefit Increase/Cost:     10 times salary    15 times salary
              ERS Benefit Increase/Cost:    4.5 times salary   4.5 times salary
 
        The number of members and retirees who could be affected by this  legis-
        lation  cannot  be readily determined. However, all ERS and PFRS members
        will be covered and eligible for these  benefits,  including  new  hires
        through  the expiration of the coverage provided under this legislation.
        All costs incurred in the PFRS will be shared by the State of  New  York
        and  all  the participating employers in the PFRS. All costs incurred in
        the ERS will be shared by the State of New York and all the  participat-
        ing employers in the ERS.
          In addition to these per person costs, there would be annual increases
        in  administrative  and  legal costs to implement the provisions of this
        legislation.
          Summary of relevant resources:
          Membership data as of March 31, 2021 was used in measuring the  impact
        of the proposed change, the same data used in the April 1, 2021 actuari-
        al  valuation.    Distributions and other statistics can be found in the
        2021 Report of the Actuary and the 2021 Comprehensive  Annual  Financial
        Report.
          The  actuarial  assumptions and methods used are described in the 2020
        and 2021 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, 2021
        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  February  10,  2022, and intended for use only
        during the  2022  Legislative  Session,  is  Fiscal  Note  No.  2022-73,
        prepared  by  the  Actuary  for  the New York State and Local Retirement
        System.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would extend the provisions of the COVID-19  enhanced  death
        benefit provided under Chapter 78 of the Laws of 2021 until December 31,
        2024  on account of eligible active members of the New York State Teach-
        ers' Retirement System (NYSTRS) who die due to contracting COVID-19. The
        current expiration date is December 31, 2022. Chapter 78 of the Laws  of
        2021 provides a member's statutory beneficiary with the accidental death
        benefit,  consisting  of  a lifetime annuity of 50% of the member's most
        recent year's salary. Under current law the death benefit on account  of
        an  active  member who dies in service not due to COVID-19 with three or
        more years of active service is a lump-sum benefit equal to three  times

        A. 10022                            9
 
        the  member's  most  recent  year's  salary.  An active member must have
        reported to work on or after March  1,  2020,  and  contracted  COVID-19
        within  45 days of reporting to work, and then died either due to COVID-
        19, or had COVID-19 as a contributing factor in the member's death.
          The  overall  cost  of  this  bill cannot be readily determined as the
        ultimate number of COVID-19 deaths cannot be determined at this time. It
        is estimated that it will provide on  average  an  additional  cost  per
        affected  member of 3 to 4 times salary. The average cost per individual
        member impacted in terms of the additional present value  of  liability,
        is estimated as follows:
          Member age 30: $230,000
          Member age 40: $310,000
          Member age 50: $320,000
          The  actual cost per member would be dependent on the member and bene-
        ficiary's age, tier, years of service, and salary.  The costs above  are
        determined  based  on averages, so the actual cost for a member could be
        higher or lower.
          Member data is from  the  System's  most  recent  actuarial  valuation
        files,  consisting  of  data provided by the employers to the Retirement
        System. Data distributions and statistics can be found in  the  System's
        Annual  Report.  System assets are as reported in the System's financial
        statements and can also be found in the System's Annual Report. Actuari-
        al assumptions and methods are provided in the System's Actuarial  Valu-
        ation Report and the 2021 Actuarial Assumptions Report.
          The  source  of  this  estimate is Fiscal Note 2022-15 dated March 30,
        2022 prepared by the Office of the Actuary of the New York State  Teach-
        ers'  Retirement  System  and  is  intended for use only during the 2022
        Legislative Session. I, Richard A.  Young, am the Chief Actuary for  the
        New  York State Teachers' Retirement System. I am a member of the Ameri-
        can Academy of Actuaries and I meet the Qualification Standards  of  the
        American  Academy of Actuaries to render the actuarial opinion contained
        herein.
Go to top