Bill Text: NY A07124 | 2021-2022 | General Assembly | Introduced


Bill Title: Relates to increasing certain special accidental death benefits; increases the special accidental death benefit paid to a widow or widower or the deceased member's children under the age of eighteen, or if a student, under the age of twenty-three.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2021-08-02 - signed chap.327 [A07124 Detail]

Download: New_York-2021-A07124-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7124

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                     April 23, 2021
                                       ___________

        Introduced by M. of A. JOYNER -- read once and referred to the Committee
          on Governmental Employees

        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  section 1 of item NNN of subpart B of part XXX of
     3  chapter 58 of the laws of 2020, is amended to read as follows:
     4    c. Commencing July first, two thousand [twenty] twenty-one 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                  [256.5%] 267.1%
    14            1978                           [246.1%] 256.5%
    15            1979                           [236%] 246.1%
    16            1980                           [226.2%] 236%
    17            1981                           [216.7%] 226.2%
    18            1982                           [207.5%] 216.7%
    19            1983                           [198.5%] 207.5%
    20            1984                           [189.8%] 198.5%
    21            1985                           [181.4%] 189.8%
    22            1986                           [173.2%] 181.4%
    23            1987                           [165.2%] 173.2%
    24            1988                           [157.5%] 165.2%

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09925-03-1

        A. 7124                             2

     1            1989                           [150.0%] 157.5%
     2            1990                           [142.7%] 150.0%
     3            1991                           [135.7%] 142.7%
     4            1992                           [128.8%] 135.7%
     5            1993                           [122.1%] 128.8%
     6            1994                           [115.7%] 122.1%
     7            1995                           [109.4%] 115.7%
     8            1996                           [103.3%] 109.4%
     9            1997                            [97.4%] 103.3%
    10            1998                            [91.6%] 97.4%
    11            1999                            [86.0%] 91.6%
    12            2000                            [80.6%] 86.0%
    13            2001                            [75.4%] 80.6%
    14            2002                            [70.2%] 75.4%
    15            2003                            [65.3%] 70.2%
    16            2004                            [60.5%] 65.3%
    17            2005                            [55.8%] 60.5%
    18            2006                            [51.3%] 55.8%
    19            2007                            [46.9%] 51.3%
    20            2008                            [42.6%] 46.9%
    21            2009                            [38.4%] 42.6%
    22            2010                            [34.4%] 38.4%
    23            2011                            [30.5%] 34.4%
    24            2012                            [26.7%] 30.5%
    25            2013                            [23.0%] 26.7%
    26            2014                            [19.4%] 23.0%
    27            2015                            [15.9%] 19.4%
    28            2016                            [12.6%] 15.9%
    29            2017                             [9.3%] 12.6%
    30            2018                             [6.1%] 9.3%
    31            2019                             [3.0%] 6.1%
    32            2020                             [0.0%] 3.0%
    33            2021                             0.0%
    34    § 2. Subdivision c of section 361-a of the retirement and social secu-
    35  rity  law,  as amended by section 2 of item NNN of subpart B of part XXX
    36  of chapter 58 of the laws of 2020, is amended to read as follows:
    37    c. Commencing July first, two thousand [twenty] twenty-one 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                    [256.5%]267.1%
    47            1978                             [246.1%]256.5%
    48            1979                             [236%]246.1%
    49            1980                             [226.2%]236%
    50            1981                             [216.7%]226.2%
    51            1982                             [207.5%]216.7%
    52            1983                             [198.5%]207.5%
    53            1984                             [189.8%]198.5%
    54            1985                             [181.4%]189.8%
    55            1986                             [173.2%]181.4%
    56            1987                             [165.2%]173.2%

        A. 7124                             3

     1            1988                             [157.5%]165.2%
     2            1989                             [150.0%]157.5%
     3            1990                             [142.7%]150.0%
     4            1991                             [135.7%]142.7%
     5            1992                             [128.8%]135.7%
     6            1993                             [122.1%]128.8%
     7            1994                             [115.7%]122.1%
     8            1995                             [109.4%]115.7%
     9            1996                             [103.3%]109.4%
    10            1997                              [97.4%]103.3%
    11            1998                              [91.6%]97.4%
    12            1999                              [86.0%]91.6%
    13            2000                              [80.6%]86.0%
    14            2001                              [75.4%]80.6%
    15            2002                              [70.2%]75.4%
    16            2003                              [65.3%]70.2%
    17            2004                              [60.5%]65.3%
    18            2005                              [55.8%]60.5%
    19            2006                              [51.3%]55.8%
    20            2007                              [46.9%]51.3%
    21            2008                              [42.6%]46.9%
    22            2009                              [38.4%]42.6%
    23            2010                              [34.4%]38.4%
    24            2011                              [30.5%]34.4%
    25            2012                              [26.7%]30.5%
    26            2013                              [23.0%]26.7%
    27            2014                              [19.4%]23.0%
    28            2015                              [15.9%]19.4%
    29            2016                              [12.6%]15.9%
    30            2017                               [9.3%]12.6%
    31            2018                               [6.1%]9.3%
    32            2019                               [3.0%]6.1%
    33            2020                               [0.0%]3.0%
    34            2021                               0.0%
    35    § 3. This act shall take effect July 1, 2021.
          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 2021.
          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  $654,000  above  the  approximately $14.7 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:
          Membership  data as of March 31, 2020 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2020 actuari-
        al valuation.  Distributions and other statistics can be  found  in  the
        2020  Report  of the Actuary and the 2020 Comprehensive Annual Financial
        Report.
          The actuarial assumptions and methods used are described in  the  2020
        Annual  Report  to  the  Comptroller  on  Actuarial Assumptions, and the
        Codes, Rules and Regulations  of  the  State  of  New  York:  Audit  and
        Control.

        A. 7124                             4

          The Market Assets and GASB Disclosures are found in the March 31, 2020
        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 March 17, 2021, and intended for use only during
        the 2021 Legislative Session, is Fiscal Note No. 2021-102,  prepared  by
        the Actuary for the New York State and Local Retirement System.
          SUMMARY OF BILL: This proposed legislation would amend General Munici-
        pal  Law  (GML)  Section 208-f(c) to increase certain Special Accidental
        Death Benefits (SADB) for surviving  spouses,  dependent  children,  and
        certain  other  individuals (Eligible Beneficiaries) of former uniformed
        employees of the City of New York and  the  New  York  City  Health  and
        Hospitals  Corporation,  and for certain former employees of the Tribor-
        ough Bridge and Tunnel Authority, who were members of certain  New  York
        City  Retirement Systems and Pension Funds (NYCRS) and died as a natural
        and proximate result of an accident  sustained  in  the  performance  of
        duty.
          Effective Date: July 1, 2021.
          BACKGROUND: Under the GML, the basic SADB is defined as:
          The  salary  of  the  deceased member at date of death (or, in certain
        instances, a greater salary based on a  higher  rank  or  other  status)
        (Final Salary), 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 Workers' 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  a spouse nor a 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  tradi-
        tionally been increased by a cumulative, incremental percentage of Final
        Salary based on the calendar year of the member's death.
          IMPACT  ON  BENEFITS:  With  respect to the NYCRS, the proposed legis-
        lation 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 City Fire Pension Fund (FIRE),
          and  who  were  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 Department of Sanitation - 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),

        A. 7124                             5

          *  New York City Health and Hospitals Corporation - Uniformed Position
        as EMT, or
          * Triborough Bridge and Tunnel Authority - Bridge and Tunnel Position.
          Under  the proposed legislation, effective July 1, 2021, an additional
        3.0% of Final Salary would be applied to the SADB  paid  due  to  deaths
        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 - PRESENT VALUES: Based on the Eligible Beneficiaries
        of  deceased NYCRS members who would be impacted by this proposed legis-
        lation and the actuarial assumptions and methods described  herein,  the
        enactment  of this proposed legislation would increase the Present Value
        of Future Benefits (PVFB) by approximately $55.0 million.
          FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: As a result  of  the
        past  four  decades'  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  in  determining  NYCRS  employer
        contributions.  Therefore,  the  costs of this proposed legislation have
        already been accounted for and will not result in a further increase  in
        employer  contributions.  There will, however, be a decrease in employer
        contributions if the proposed legislation is not enacted.
          In accordance with Section 13-638.2(k-2) of the Administrative Code of
        the City of New York (ACCNY), new Unfunded Accrued Liability to  benefit
        changes are to be amortized as determined by the Actuary, but are gener-
        ally  amortized over the remaining working lifetime of those impacted by
        the benefit changes. However, since changes in the SADB  COLA  paid  are
        not  known  in advance, the decrease in expected pension payments due to
        this legislation not passing would be  treated  as  an  actuarial  gain.
        These  actuarial  gains  would  be  amortized  over a 15-year period (14
        payments under the One-Year Lag Methodology (OYLM)) using  level  dollar
        payments.  This  would  result  in  a  decrease in NYCRS annual employer
        contributions of approximately $6.5 million each year.
          CONTRIBUTION TIMING: For the purposes  of  this  Fiscal  Note,  it  is
        assumed  that  the changes in the PVFB and annual employer contributions
        if this proposed legislation fails to pass, would be reflected  for  the
        first  time  in  the Final June 30, 2022 actuarial valuations of NYCERS,
        POLICE, and FIRE. In accordance with the OYLM used to determine employer
        contributions, the decrease in employer  contributions  would  first  be
        reflected in Fiscal Year 2024.
          CENSUS  DATA: The estimates presented herein are based upon the census
        data for such Eligible Beneficiaries provided by NYCRS.

                                                       Annual Accidental Death
                           Number of Deceased Members  Benefit Prior to Proposed
        Retirement System  with Eligible Survivors     July 1, 2021 Increase
                                                          ($ Millions)

        NYCERS                  77                     $      7.4
        POLICE                 456                           54.3
        FIRE                   601                           77.1
           Total             1,134                         $138.8

          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,  2019

        A. 7124                             6

        (Lag) actuarial valuations used to determine the Preliminary Fiscal Year
        2021 employer contributions of NYCERS, POLICE, and FIRE.
          The  Actuary  is proposing a set of changes for use beginning with the
        June 30, 2019 (Lag) actuarial valuations of NYCERS, POLICE, and FIRE  to
        determine  the Final Fiscal Year 2021 Employer Contributions (2021 A&M).
        If the 2021 A&M is enacted, it is estimated that it would  produce  PVFB
        and annual employer contribution results that are not materially differ-
        ent than the results shown above.
          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 NYCERS, POLICE and FIRE 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 methods 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:
          * The initial, additional administrative costs of NYCERS, POLICE,  and
        FIRE  and  other New York City agencies to implement the proposed legis-
        lation.
          STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
        ary  for,  and  independent of, the New York City Retirement Systems and
        Pension Funds. I am a Fellow of the Society of  Actuaries,  an  Enrolled
        Actuary under the Employee Retirement Income and Security Act of 1974, a
        Member of the American Academy of Actuaries, and a Fellow of the Confer-
        ence  of Consulting 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 2021-21 dated April 22,
        2021 was prepared by the Chief Actuary for the New York City  Employees'
        Retirement  System,  the New York City Police Pension Fund, and New York
        City Fire Pension Fund. This estimate is intended for  use  only  during
        the 2021 Legislative Session.
feedback