S T A T E O F N E W Y O R K
________________________________________________________________________
4905--A
2009-2010 Regular Sessions
I N A S S E M B L Y
February 6, 2009
___________
Introduced by M. of A. MARKEY, REILLY, SPANO, WEISENBERG, COLTON, ROBIN-
SON, TITONE, DenDEKKER, JOHN, JAFFEE, COOK, PHEFFER, SCHIMEL, ZEBROW-
SKI, MILLMAN, GORDON, EDDINGTON, HOOPER -- Multi-Sponsored by -- M. of
A. GABRYSZAK, GUNTHER, HYER-SPENCER, MAISEL, MENG, RUSSELL, SWEENEY,
TITUS -- read once and referred to the Committee on Governmental
Employees -- reported and referred to the Committee on Ways and Means
-- 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%
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07040-03-9
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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%
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%
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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 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"),
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* New York City Police Pension Fund ("POLICE"), or
* New York City Fire Pension Fund ("FIRE").
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
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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.
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.