S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8010
 
                             I N  S E N A T E
 
                               March 9, 2020
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN  ACT  to amend the retirement and social security law, in relation to
   death benefits for correction officers employed by Suffolk county
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The retirement and social security law is amended by adding
 a new section 508-b to read as follows:
   §  508-B.  DEATH  BENEFITS FOR CORRECTION OFFICERS EMPLOYED BY SUFFOLK
 COUNTY. 1. AS USED IN THIS SECTION, THE TERM "CORRECTION OFFICER"  SHALL
 HAVE  THE  SAME  MEANING AS IN SUBDIVISION E OF SECTION EIGHTY-NINE-F OF
 THIS CHAPTER.
   2. NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  WHERE  A
 CORRECTION  OFFICER  WOULD  HAVE  BEEN  ENTITLED TO A SERVICE RETIREMENT
 BENEFIT AT THE TIME OF HIS OR HER DEATH  AND  WHERE  HIS  OR  HER  DEATH
 OCCURS  ON  OR AFTER THE EFFECTIVE DATE OF THIS SECTION, THE BENEFICIARY
 OR BENEFICIARIES MAY ELECT TO RECEIVE, IN A LUMP SUM, AN AMOUNT  PAYABLE
 WHICH  SHALL BE EQUAL TO THE PENSION RESERVE THAT WOULD HAVE BEEN ESTAB-
 LISHED HAD THE MEMBER RETIRED ON THE DATE OF HIS OR HER  DEATH,  OR  THE
 VALUE  OF THE DEATH BENEFIT AND THE RESERVE-FOR-INCREASED-TAKE-HOME-PAY,
 IF ANY, WHICHEVER IS GREATER.
   § 2. The retirement and social security law is amended by adding a new
 section 606-b to read as follows:
   § 606-B. DEATH BENEFITS FOR CORRECTION OFFICERS  EMPLOYED  BY  SUFFOLK
 COUNTY. 1.  AS USED IN THIS SECTION, THE TERM "CORRECTION OFFICER" SHALL
 HAVE  THE  SAME  MEANING AS IN SUBDIVISION E OF SECTION EIGHTY-NINE-F OF
 THIS CHAPTER.
   2. NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  WHERE  A
 CORRECTION  OFFICER  WOULD  HAVE  BEEN  ENTITLED TO A SERVICE RETIREMENT
 BENEFIT AT THE TIME OF HIS OR HER DEATH  AND  WHERE  HIS  OR  HER  DEATH
 OCCURS  ON  OR AFTER THE EFFECTIVE DATE OF THIS SECTION, THE BENEFICIARY
 OR BENEFICIARIES MAY ELECT TO RECEIVE, IN A LUMP SUM, AN AMOUNT  PAYABLE
 WHICH  SHALL BE EQUAL TO THE PENSION RESERVE THAT WOULD HAVE BEEN ESTAB-
 LISHED HAD THE MEMBER RETIRED ON THE DATE OF HIS OR HER  DEATH,  OR  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14796-02-0

 S. 8010                             2
 
 VALUE  OF THE DEATH BENEFIT AND THE RESERVE-FOR-INCREASED-TAKE-HOME-PAY,
 IF ANY, WHICHEVER IS GREATER.
   §   3.  All  past  service  costs  associated  with  implementing  the
 provisions of this act shall be borne by the county of Suffolk  and  may
 be amortized over a period of ten years.
   §  4. Notwithstanding any other provision of law to the contrary, none
 of the provisions of this act shall  be  subject  to  the  appropriation
 requirement of section 25 of the retirement and social security law.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  modify  the in-service death benefit for retirement
 eligible tiers 3 through 6 members of  the  New  York  State  and  Local
 Employees'  Retirement  System  who  are  employed  by Suffolk County in
 certain correction officer job titles. The in-service death benefit will
 be the value of the pension reserve as if  the  member  had  retired  on
 their date of death.
   If this legislation is enacted during the 2020 legislative session, we
 anticipate that there will be an increase in the annual contributions of
 Suffolk  County  of  approximately  $190,000  for the fiscal year ending
 March 31, 2021. In the future, this cost will vary as the billing  rates
 and salaries of those affected change.
   In addition to the annual contributions discussed above, there will be
 an immediate past service cost of approximately $3.32 million which will
 be  borne  by  Suffolk  County as a one-time payment.   This estimate is
 based on the assumption that payment will be made on February  1,  2021.
 If  Suffolk  County  elects to amortize this cost over a 10-year period,
 the cost for the first year would be $438,000.
   These estimated costs are based on 944 affected  members  employed  by
 Suffolk  County,  with annual salary of approximately $118 million as of
 March 31, 2019.
   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  February  10,  2020, and intended for use only
 during the  2020  Legislative  Session,  is  Fiscal  Note  No.  2020-44,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.