senate Bill S2343A

Increases certain special accidental death benefits for surviving spouses and children of certain police and fire personnel

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 18 / Feb / 2009
    • REFERRED TO CIVIL SERVICE AND PENSIONS
  • 24 / Feb / 2009
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / May / 2009
    • AMEND AND RECOMMIT TO FINANCE
  • 04 / May / 2009
    • PRINT NUMBER 2343A
  • 15 / Jul / 2009
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 15 / Jul / 2009
    • ORDERED TO THIRD READING CAL.897
  • 16 / Jul / 2009
    • SUBSTITUTED BY A4905A

Summary

Increases the salary used in the computation of the special accidental death benefit in cases where the date of death was before 2009; applies to surviving spouse and child benefits of certain police and fire personnel.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A4905A
Versions:
S2343
S2343A
Legislative Cycle:
2009-2010
Law Section:
General Municipal Law
Laws Affected:
Amd §208-f, Gen Muni L; amd §361-a, R & SS L

Sponsor Memo

BILL NUMBER: S2343A

TITLE OF BILL :
An act to amend the general municipal law and the retirement and
social security law, in relation to increasing certain special
accidental death benefits

PURPOSE OR GENERAL IDEA OF BILL :
This legislation extends the escalation of a cost of living increase
of approximately 3% for all line-of-duty widows or widowers for Fiscal
year 2009-10.

This bill amends subdivision c of section 208-f of the General
Municipal Law as amended by Chapter 76 of the Laws of 2008 and
subdivision c of section 361-a of the Retirement and Social Security
Law, as amended by Chapter 76 of the Laws of 2008.

JUSTIFICATION :
Since 1978, the Legislature has passed and the Governor signed into
law a cost of living increase and a one-year escalation for all New
York State widows and widowers of police officers and firefighters
killed in the line-of-duty. The intent of the original 1978 law was to
increase their benefits to an amount that would reflect the impact of
inflation. However, the law did not provide for any new cost of living
increase after July 1, 1979.

Since that date, the cost of living has increased well over 3% each
year, including some periods of double-digit inflation. These same
widows and widowers are no longer receiving adequate benefits. This
legislation does not totally cover the present inflation spiral, but
it at least provides some increased relief to the widows and widowers
of New York State's bravest citizens, who gave their lives in service
to the people of New York State. In the past, these brave families
have faced a poverty stricken existence. This legislation would
prevent the return of that deplorable state of affairs.

As with previous legislation, there is no cost to the localities, as
the state would reimburse them for this small increase.

PRIOR LEGISLATIVE HISTORY :
1996 - S.6360/A.9326 Chapter
1997 - S.4243/A.7546 Chapter 174
1998 - S.630/A.9487A Chapter 31
1999 - S.3158B/A.5942B Chapter 132
2000 - A.9895/S.6866A Chapter 231
2001 - A.6606A/S.3297A Chapter 264
2002 - A.11090/S.7263 Chapter 313
2003 - A.5435/S.3903 Chapter 139
2004 - A.10193C/S,6579C Chapter 351
2005 - A.5217/S.3971C Chapter 48
2006 - A.10334/S.6744 Chapter 88
2007 - A.5658/S.2492 Chapter 39
2008 = A.9666/S.6733 Chapter 76

FISCAL IMPLICATIONS :
New York State and local Police and Fire Retirement System: 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 $322,000 above the approximately $7.1 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.

New York City Police and Fire Pension Plans: If this proposed
legislation is enacted this would be an approximate increase of $2.2
million in employer contributions.
EFFECTIVE DATE :
This act shall take effect July 1, 2009.
view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2343--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 18, 2009
                               ___________

Introduced  by  Sens. SAVINO, ADDABBO, DIAZ, MONSERRATE, ONORATO -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee  on  Civil  Service  and Pensions -- reported favorably from
  said committee and committed to the Committee on Finance --  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:

  Section 1. Subdivision c of section 208-f  of  the  general  municipal
law, as amended by chapter 76 of the laws of 2008, is amended to read as
follows:
  c.  Commencing July first, two thousand [eight] NINE the special acci-
dental 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,  if  the  widow or widower has died, shall be escalated by
adding thereto an additional percentage of the salary  of  the  deceased
member  (as  increased  pursuant  to  subdivision  b of this section) in
accordance with the following schedule:
     calendar year of death
     of the deceased member              per centum
          1977 or prior                    [150.0%] 157.5%
          1978                             [142.7%] 150.0%
          1979                             [135.7%] 142.7%
          1980                             [128.8%] 135.7%
          1981                             [122.1%] 128.8%
          1982                             [115.7%] 122.1%
          1983                             [109.4%] 115.7%
          1984                             [103.3%] 109.4%

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07040-04-9

S. 2343--A                          2

          1985                              [97.4%] 103.3%
          1986                              [91.6%]  97.4%
          1987                              [86.0%]  91.6%
          1988                              [80.6%]  86.0%
          1989                              [75.4%]  80.6%
          1990                              [70.2%]  75.4%
          1991                              [65.3%]  70.2%
          1992                              [60.5%]  65.3%
          1993                              [55.8%]  60.5%
          1994                              [51.3%]  55.8%
          1995                              [46.9%]  51.3%
          1996                              [42.6%]  46.9%
          1997                              [38.4%]  42.6%
          1998                              [34.4%]  38.4%
          1999                              [30.5%]  34.4%
          2000                              [26.7%]  30.5%
          2001                              [23.0%]  26.7%
          2002                              [19.4%]  23.0%
          2003                              [15.9%]  19.4%
          2004                              [12.6%]  15.9%
          2005                               [9.3%]  12.6%
          2006                               [6.1%]   9.3%
          2007                               [3.0%]   6.1%
          2008                               [0.0%]   3.0%
          2009                                0.0%
  S 2. Subdivision c of section 361-a of the retirement and social secu-
rity  law,  as  amended by chapter 76 of the laws of 2008, is amended to
read as follows:
  c. Commencing July first, two thousand [eight] NINE the special  acci-
dental 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, if the widow or widower has died, shall  be  escalated  by
adding  thereto  an  additional percentage of the salary of the deceased
member, as increased pursuant to  subdivision  b  of  this  section,  in
accordance with the following schedule:
     calendar year of death
     of the deceased member              per centum
          1977 or prior                    [150.0%] 157.5%
          1978                             [142.7%] 150.0%
          1979                             [135.7%] 142.7%
          1980                             [128.8%] 135.7%
          1981                             [122.1%] 128.8%
          1982                             [115.7%] 122.1%
          1983                             [109.4%] 115.7%
          1984                             [103.3%] 109.4%
          1985                              [97.4%] 103.3%
          1986                              [91.6%]  97.4%
          1987                              [86.0%]  91.6%
          1988                              [80.6%]  86.0%
          1989                              [75.4%]  80.6%
          1990                              [70.2%]  75.4%
          1991                              [65.3%]  70.2%
          1992                              [60.5%]  65.3%
          1993                              [55.8%]  60.5%
          1994                              [51.3%]  55.8%
          1995                              [46.9%]  51.3%

S. 2343--A                          3

          1996                              [42.6%]  46.9%
          1997                              [38.4%]  42.6%
          1998                              [34.4%]  38.4%
          1999                              [30.5%]  34.4%
          2000                              [26.7%]  30.5%
          2001                              [23.0%]  26.7%
          2002                              [19.4%]  23.0%
          2003                              [15.9%]  19.4%
          2004                              [12.6%]  15.9%
          2005                               [9.3%]  12.6%
          2006                               [6.1%]   9.3%
          2007                               [3.0%]   6.1%
          2008                               [0.0%]   3.0%
          2009                                0.0%
  S 3. This act shall take effect July 1, 2009.
  FISCAL NOTE.--This bill would amend both the General Municipal Law and
the  Retirement  and  Social Security Law to increase the salary used in
the computation of the special accidental death benefit by 3%  in  cases
where the date of death was before 2009.
  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  $322,000  above  the  approximately  $7.1 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.
  This  estimate, dated January 27, 2009 and intended of use only during
the 2009 Legislative Session, is Fiscal Note No. 2009-115,  prepared  by
the  Actuary for the New York State and Local Police and Fire 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 line-of-duty
widows/widowers and/or children of former  uniformed  employees  of  the
City  and  the  New  York City Health and Hospitals Corporation who were
members of the New York City Retirement Systems ("NYCRS").
  In addition, the  proposed  legislation  would  amend  Retirement  and
Social  Security Law Section 361-a.c to cover such SADB of the survivors
of former members who were employed in the New York State Police Depart-
ment or as a New York State Firefighter.
  The Effective Date of the proposed legislation is July 1, 2009.
  IMPACT ON BENEFITS - SADB RECIPIENTS: The proposed  legislation  would
impact  the  SADB payable to certain survivors of NYCRS members who were
employed in uniformed positions at one of the following employers:
  New York City Police Department,
  New York City Fire Department,
  New York City Housing Authority-Police Officer,
  New York City Transit Authority-Police Officer,
  New York City Department of Correction-Correction Officer,
  New York City-Emergency Medical Technician ("EMT"),
  New York City Health and Hospitals Corporation-EMT,
  New York City Triborough Bridge and Tunnel Authority-Bridge and Tunnel
Employee, and such employees were members of one of the following NYCRS:
  * New York City Employees' Retirement System ("NYCERS"),
  * New York City Police Pension Fund ("POLICE"), or
  * New York City Fire Pension Fund ("FIRE").

S. 2343--A                          4

  DESCRIPTION OF BENEFITS PAYABLE: Under the GML, the SADB is defined to
equal:
  The salary of the deceased member at date of death less:
  - Any death benefit paid by the NYCRS to the member's survivors,
  - Any death benefit paid by Social Security to the member's survivors,
and
  - Any Worker's Compensation benefit paid to the member's survivors.
  The  SADB is paid to the deceased member's surviving widow or widower,
if alive. If the widow/widower is no longer alive, then the SADB is paid
to the deceased member's children under the age  of  eighteen  or  while
attending school up to the age of twenty-three.
  Under  the proposed legislation, the SADB would be escalated effective
July 1, 2009 to provide an increase of approximately 3.0% in  the  total
benefits   payable  to  the  deceased  member's  surviving  line-of-duty
widows/widowers/children.
  FINANCIAL IMPACT - ACTUARIAL  PRESENT  VALUES  OF  BENEFITS  ("APVB"):
Under  the actuarial assumptions and methods as noted herein, the enact-
ment of this proposed legislation would result in an increase  in  addi-
tional APVB with respect to NYCRS members of approximately $22.6 million
as of June 30, 2009.
  FINANCIAL  IMPACT - EMPLOYER CONTRIBUTIONS: As 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 $2.2 million.
  Note: This represents an average increase of approximately 5.1% in the
annual rate of SADB being paid.
  The SADB payment are made by the City and are reimbursed by the  State
of New York.
  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 date for such widows, widowers and children provided by
the NYCRS.
  For NYCERS, data for SADB recipients  consisted  of  29  survivors  of
deceased  members  as  of  June  30, 2008 with SADB payable at a rate of
approximately $1.0 million as of September 1, 2008.
  For POLICE, data for SADB recipients consisted  of  287  survivors  of
deceased  members  as  of  June  30, 2008 with SADB payable at a rate of
approximately $12.0 million as of September 1, 2008.
  For FIRE, data for SADB  recipients  consisted  of  611  survivors  of
deceased  members  as  of  June  30, 2008 with SADB payable at a rate of
approximately $30.2 million as of September 1, 2008.
  ACTUARIAL ASSUMPTIONS AND METHODS: Additional APVB have been  computed
based  on  the  actuarial assumptions and methods in effect for the June
30, 2008 (Lag) actuarial valuations of NYCERS, POLICE and FIRE  for  use
in determining the Preliminary Fiscal Year 2010 Employer Contributions.
  In  addition,  it  has  also been assumed that the average age and the
estimated percentage increase in benefits for widows/widowers in receipt
of benefits as of June 30, 2009 would be comparable with  that  for  the
widows/widowers  and/or  children  in receipt of benefits as of June 30,
2008.
  STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the  Chief
Actuary  for  the New York City Retirement Systems. I am a Fellow of the
Society of Actuaries and a Member of the American Academy of  Actuaries.

S. 2343--A                          5

I  meet the Qualification Standards of the American Academy of Actuaries
to render the actuarial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
during the 2009 Legislative Session. It is fiscal  Note  2009-05,  dated
March  26,  2009,  prepared  by  the Chief Actuary for the New York City
Employees' Retirement System, the New York City Police Pension Fund  and
the New York City Fire Pension Fund.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.