senate Bill S4761A

Signed By Governor
2013-2014 Legislative Session

Clarifies the maximum salary which may be used to calculate the ordinary death benefit of members of the public retirement systems of the state

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Archive: Last Bill Status Via A4983 - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 18, 2013 signed chap.520
Dec 06, 2013 delivered to governor
Jun 20, 2013 returned to assembly
passed senate
3rd reading cal.1531
substituted for s4761a
Jun 20, 2013 substituted by a4983a
ordered to third reading cal.1531
committee discharged and committed to rules
Jun 03, 2013 print number 4761a
amend and recommit to civil service and pensions
Apr 22, 2013 referred to civil service and pensions

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S4761 - Bill Details

See Assembly Version of this Bill:
A4983A
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §§448, 508 & 606, R & SS L

S4761 - Bill Texts

view summary

Clarifies the maximum salary which may be used to calculate the ordinary death benefit of members of the public retirement systems of the state.

view sponsor memo
BILL NUMBER:S4761

TITLE OF BILL: An act to amend the retirement and social security
law, in relation to clarifying the maximum salary which may be used to
calculate the ordinary death benefit of members of the public
retirement systems of the state

Purpose of the Bill:

This bill is intended to clarify the maximum salary which may be used
in the calculation of the paragraph 2 ordinary death benefit pursuant
to Retirement and Social Security Law §§ 448(c), 508(c) and 606(c).

Summary and Justification:

This bill amends Retirement and Social Security Law §§ 448(c), 508(c)
and 606(c) to clarify the maximum salary used to calculate the
ordinary death benefit for members with a date of membership on or
after July 1, 1973. Currently, these provisions specify that the
paragraph 2 death benefit is to be calculated using the member's
regular compensation earned during the member's last twelve months of
service in full pay status as a member, provided such salary shall
exclude any form of termination pay, any lump sum payment for deferred
compensation sick leave, any lump sum payment for accumulated vacation
credit or any other payment for time not worked. Additionally, for
the purposes of the paragraph 2 ordinary death benefit calculation
under these provisions, a member's salary shall not exceed the maximum
salary specified in Civil Service Law Section § 130.

In 2011, Section 130 of the Civil Service Law was amended by Chapter
491 which was signed into law August 17, 2011, and retroactive to
April 1, 2011. Unlike prior amendments to Civil Service Law § 130,
Chapter 491 reduced, rather than increased, the maximum salary
specified in that section. The maximum salary specified under Civil
Service Law § 130(1)(d) has been $163,772 since April of 2007, when it
was repealed and added by part B of Chapter 10 of the Laws of 2008.
After the enactment of Chapter 491, the maximum salary specified under
Civil Service Law § 130(1)(c) is $163,033.

In 2012, Chapters 15, 37, 67, 257 and 261 made further amendments to
the provisions of Section 130 of the Civil Service Law and enacted
various negotiated state labor agreements. The amendments made by
these subsequent chapters did not rectify the amendments made by
Chapter 491 of the Laws of 2011. Moreover, yet another maximum salary
is provided for under Chapter 37 of the Laws of 2012.

The amendments reducing the maximum salary specified in Civil Service
Law § 130 for the purposes of the paragraph 2 ordinary death benefit
raise a potential constitutional problem in the calculation of such
benefit and it is for this reason that the Retirement System seeks the
amendments proposed in this bill. Article V, Section 7 of the New York
Constitution prohibits any diminishment or impairment of retirement
system benefits of existing members and retirees. Thus, while the
Legislature may be free to change Civil Service Law § 130 as
applicable to the salaries of state workers, Article V. Section 7
would, by its application, prevent any reduction in death benefits of
affected members caused by using the reduced Civil Service Law § 130


maximum salary in the calculation of a paragraph 2 ordinary death
benefit.

The amendments proposed in this bill would remedy the administrative
difficulty of having multiple maximum salaries and avoid the possible
constitutional problem by providing a permanent alternative maximum
salary to be used in the ordinary death benefit calculation. Further,
these amendments would assure a uniform maximum salary applicable to
all retirement system members and retirees without regard to date of
membership. The amendments proposed in this bill would allow the
retirement systems to calculate the paragraph 2 ordinary death benefit
using a maximum salary which shall not be less than the maximum salary
provided for under Civil Service Law § 130, as it was added by part B
of Chapter 10 of the Laws of 2008, or the maximum salary specified
under Civil Service Law § 130, as thereafter amended, whichever is
greater. As the provision of in-service death benefits is ancillary to
the main mission of retirement systems to provide retirement security,
the ordinary death benefit provisions were intended to provide a
uniform calculation for the death benefit. As such, the amendments
proposed in the bill are consistent with such intent. The permanent
alternative maximum salary would mediate any risk of constitutional
challenge and maintain a uniform calculation of the death benefit
provided in Retirement and Social Security Law §§ 448(c), 508(c) and
606(c).

Effective Date of the Bill:

This bill shall take effect immediately and shall be deemed to have
been in full force and effect on and after April 1, 2011.

Other Agencies to Whom the Bill May Be of Interest:

Division of the Budget, Department of Financial Services, State
Comptroller and New York City.

Budgetary Implications of the Bill:

The annual cost to the employers of members Of the New York State
Teachers' Retirement System is estimated to be negligible if this bill
is enacted.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4761

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 22, 2013
                               ___________

Introduced by Sen. GOLDEN -- (at request of the New York State Teachers'
  Retirement System) -- 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
  clarifying the maximum salary which may be used to calculate the ordi-
  nary death benefit of members of the public retirement systems of  the
  state

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision c of section 448 of the retirement  and  social
security  law, as amended by chapter 510 of the laws of 1974, is amended
to read as follows:
  c. For the purpose of  this  section,  salary  shall  be  the  regular
compensation earned during the member's last twelve months of service in
full  pay  status  as a member or, if he OR SHE had not completed twelve
months of service prior to the date of death, but  was  subject  to  the
provisions  of subdivision b of this section, the compensation he OR SHE
would have earned had he OR SHE worked for the twelve  months  prior  to
such  date;  provided,  however,  for the purpose of this section salary
shall exclude any form of  termination  pay  (which  shall  include  any
compensation in anticipation of retirement), or any lump sum payment for
deferred  compensation sick leave, or accumulated vacation credit or any
other payment for time not  worked  (other  than  compensation  received
while  on  sick  leave  or  authorized leave of absence) and in no event
shall it exceed the maximum salary  specified  in  section  one  hundred
thirty  of  the  civil service law, AS ADDED BY PART B OF CHAPTER TEN OF
THE LAWS OF TWO THOUSAND EIGHT,  OR  THE  MAXIMUM  SALARY  SPECIFIED  IN
SECTION  ONE  HUNDRED  THIRTY  OF  THE  CIVIL  SERVICE LAW, AS HEREAFTER
AMENDED, WHICHEVER IS GREATER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08981-03-3

S. 4761                             2

  S 2. Subdivision c of section 508 of the retirement and social securi-
ty law, as added by chapter 617 of the laws of 1986, is amended to  read
as follows:
  c.  For  the  purpose  of  this  section,  salary shall be the regular
compensation earned during the member's last twelve months of service in
full pay status as a member or, if he OR SHE had  not  completed  twelve
months  of  service  prior  to the date of death, but was subject to the
provisions of subdivision b of this section, the compensation he OR  SHE
would  have  earned  had he OR SHE worked for the twelve months prior to
such date; provided, however, for the purpose  of  this  section  salary
shall  exclude  any  form  of  termination  pay (which shall include any
compensation in anticipation of retirement), or any lump sum payment for
deferred compensation sick leave, or accumulated vacation credit or  any
other  payment  for  time  not  worked (other than compensation received
while on sick leave or authorized leave of  absence)  and  in  no  event
shall  it  exceed  the  maximum  salary specified in section one hundred
thirty of the civil service law, AS ADDED BY PART B OF  CHAPTER  TEN  OF
THE  LAWS  OF  TWO  THOUSAND  EIGHT,  OR THE MAXIMUM SALARY SPECIFIED IN
SECTION ONE HUNDRED THIRTY  OF  THE  CIVIL  SERVICE  LAW,  AS  HEREAFTER
AMENDED, WHICHEVER IS GREATER.
  S 3. Subdivision c of section 606 of the retirement and social securi-
ty  law, as added by chapter 617 of the laws of 1986, is amended to read
as follows:
  c. For the purpose of  this  section,  salary  shall  be  the  regular
compensation earned during the member's last twelve months of service in
full  pay  status  as a member or, if he OR SHE had not completed twelve
months of service prior to the date of death, but  was  subject  to  the
provisions  of subdivision b of this section, the compensation he OR SHE
would have earned had he OR SHE worked for the twelve  months  prior  to
such  date;  provided,  however,  for the purpose of this section salary
shall exclude any form of  termination  pay  (which  shall  include  any
compensation in anticipation of retirement), or any lump sum payment for
deferred  compensation sick leave, or accumulated vacation credit or any
other payment for time not  worked  (other  than  compensation  received
while  on  sick  leave  or  authorized leave of absence) and in no event
shall it exceed the maximum salary  specified  in  section  one  hundred
thirty  of  the  civil service law, AS ADDED BY PART B OF CHAPTER TEN OF
THE LAWS OF TWO THOUSAND EIGHT,  OR  THE  MAXIMUM  SALARY  SPECIFIED  IN
SECTION  ONE  HUNDRED  THIRTY  OF  THE  CIVIL  SERVICE LAW, AS HEREAFTER
AMENDED, WHICHEVER IS GREATER.
  S 4. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2011.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill would amend Sections 448, 508 and 606 of the Retirement and
Social Security Law to clarify the maximum salary used to calculate  the
paragraph  2  death benefit for Tier 2, 3, 4, 5 and 6 members of the New
York State Teachers' Retirement  System.  The  maximum  salary  used  to
calculate the paragraph 2 death benefit shall not be less than the maxi-
mum  salary specified in Section 130 of the Civil Service Law, as it was
added by part B of Chapter 10 of the Laws of 2008, or the maximum salary
specified in Section  130  of  the  Civil  Service  Law,  as  thereafter
amended,  whichever is greater. Chapter 491 of the Laws of 2011 slightly
lowered the salary limit for death benefit calculation purposes, yet the
current limit is constitutionally protected for current members.

S. 4761                             3

  The annual cost to the employers of members  of  the  New  York  State
Teachers'  Retirement  System is estimated to be negligible if this bill
is enacted.
  The  source of this estimate is Fiscal Note 2013-2 dated September 19,
2012 prepared by the Actuary of the New York State Teachers'  Retirement
System and is intended for use only during the 2013 Legislative Session.
I,  Richard  A.  Young,  am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American  Academy  of  Actuaries
and  I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
  FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
  This bill would clarify the maximum salary  used  for  ordinary  death
benefit  calculations  for  Tiers  2,  3,  4, 5 and 6 members who joined
certain public retirement systems after the effective  date  of  Chapter
491  of the Laws of 2011. The maximum salary used to calculate the ordi-
nary death benefit would be the greater of the maximum salary  CURRENTLY
specified in Section 130 of the Civil Service Law or such maximum salary
specified  in  Section  130  PRIOR to the changes to Section 130 enacted
pursuant to Chapter 491. This bill would  ensure  that  no  members  who
first join a retirement system on or after the effective date of Chapter
491  of  the Laws of 2011 would receive a reduced ordinary death benefit
due to the provisions of that enactment.
  If this bill is enacted, insofar as this bill  affects  the  New  York
State  and Local Employees' Retirement System and the New York State and
Local Police and Fire Retirement System, we  anticipate  that  very  few
members would be affected, and the costs would be negligible.
  Pursuant  to Section 25 of the Retirement and Social Security Law, the
cost to the New York State and Local Employees' Retirement System  would
be borne entirely by the State of New York and would require an itemized
appropriation  sufficient  to pay the cost of the provision. Each year a
cost will be determined (and billed to the state) based on  those  bene-
fiting from this provision.
  Summary of relevant resources:
  Data:  March  31,  2012  Actuarial Year End File with distributions of
membership and other statistics displayed in  the  2012  Report  of  the
Actuary and 2012 Comprehensive Annual Financial Report.
  Assumptions  and  Methods:  2010,  2011  and 2012 Annual Report to the
Comptroller on Actuarial Assumptions, Codes Rules,  and  Regulations  of
the State of New York: Audit and Control.
  Market  Assets and GASB Disclosures: March 31, 2012 New York State and
Local Retirement System Financial Statements and Supplementary  Informa-
tion.
  Valuations  of Benefit Liabilities and Actuarial Assets: summarized in
the 2012 Actuarial Valuations report.
  I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
  This estimate, dated January 29,  2013,  and  intended  for  use  only
during the 2013 Legislative Session, is Fiscal Note No. 2013-72 prepared
by  the  Actuary  for the New York State and Local Employees' Retirement
System and the New York State  and  Local  Police  and  Fire  Retirement
System.

S4761A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A4983A
Law Section:
Retirement and Social Security Law
Laws Affected:
Amd §§448, 508 & 606, R & SS L

S4761A (ACTIVE) - Bill Texts

view summary

Clarifies the maximum salary which may be used to calculate the ordinary death benefit of members of the public retirement systems of the state.

view sponsor memo
BILL NUMBER:S4761A

TITLE OF BILL: An act to amend the retirement and social security
law, in relation to clarifying the maximum salary which may be used to
calculate the ordinary death benefit of members of the public
retirement systems of the state

PURPOSE OF THE BILL:

This bill is intended to clarify the maximum salary which may be used
in the calculation of the paragraph 2 ordinary death benefit pursuant
to Retirement and Social Security Law §§ 448(c), 508(c) and 606(c).

SUMMARY AND JUSTIFICATION:

This bill amends Retirement and Social Security Law §§ 448(c), 508(c)
and 606(c) to clarify the maximum salary used to calculate the
ordinary death benefit for members with a date of membership on or
after July 1, 1973. Currently, these provisions specify that the
paragraph 2 death benefit is to be calculated using the member's
regular compensation earned during the member's last twelve months of
service in full pay status as a member, provided such salary shall
exclude any form of termination pay, any lump sum payment for deferred
compensation sick leave, any lump sum payment for accumulated vacation
credit or any other payment for time not worked. Additionally, for
the purposes of the paragraph 2 ordinary death benefit calculation
under these provisions, a member's salary shall not exceed the maximum
salary specified in Civil Service Law Section § 130. In 2011, Section
130 of the Civil Service Law was amended by Chapter 491 which was
signed into law August 17, 2011, and retroactive to April 1, 2011.
Unlike prior amendments to Civil Service Law § 130, Chapter 491
reduced, rather than increased, the maximum salary specified in that
section. The maximum salary specified under Civil Service Law § 130(1)
(d) has been $163,772 since April of 2007, when it was repealed and
added by part B of Chapter 10 of the Laws of 2008. After the enactment
of Chapter 491, the maximum salary specified under Civil Service Law
130(1)(e) is $163,033. In 2012, Chapters 15, 37, 67, 257 and 261 made
further amendments to the provisions of Section 130 of the Civil
Service Law and enacted various negotiated state labor agreements. The
amendments made by these subsequent chapters did not rectify the
amendments made by Chanter 491 of the Laws of 2011. Moreover, yet
another maximum salary is provided for under Chapter 37 of the Laws of
2012.

The amendments reducing the maximum salary specified in Civil Service
Law § 130 for the purposes of the paragraph 2 ordinary death benefit
raise a potential constitutional problem in the calculation of such
benefit and it is for this reason that the Retirement System seeks the
amendments proposed in this bill. Article V, Section 7 of the New York
Constitution prohibits any diminishment or impairment of retirement
system benefits of existing members and retirees. Thus, while the
Legislature may be free to change Civil Service Law § 130 as
applicable to the salaries of state workers, Article V, Section 7
would, by its application, prevent any reduction in death benefits of
affected members caused by using the reduced Civil Service Law § 130
maximum salary in the calculation of a Paragraph 2 ordinary death
benefit. The amendments proposed in this bill would remedy the


administrative difficulty of having multiple maximum salaries and
avoid the possible constitutional problem by providing a permanent
alternative maximum salary to be used in the ordinary death benefit
calculation. Further, these amendments would assure a uniform maximum
salary applicable to all retirement system members and retirees
without regard to date of membership.

The amendments proposed in this bill would allow the retirement
systems to calculate the paragraph 2 ordinary death benefit using a
maximum salary which shall not be less than the maximum salary
provided for under Civil Service Law § 130, as it was added by part 13
of Chapter 10 of the Laws of 2008, or the maximum salary specified
under Civil Service Law § 130, as thereafter amended, whichever is
greater. As the provision of in-service death benefits is ancillary to
the main mission of retirement systems to provide retirement security,
the ordinary, death benefit provisions were intended to provide a
uniform calculation for the death benefit. AS such, the amendments
proposed in the bill are consistent with such intent. The permanent
alternative maximum salary would mediate any risk of constitutional
challenge and maintain a uniform calculation of the death benefit
Provided in Retirement and Social Security Law §§ 448(c), 508(e) and
606(c).

BUDGETARY IMPLICATIONS OF THE BILL:

The annual cost to the employers of members of the New York State
Teachers' Retirement System is estimated to be negligible if this bill
is enacted.

EFFECTIVE DATE OF THE BILL:

This bill shall take effect immediately and shall be deemed to have
been in full force and effect on and after April 1, 2011.

view full text
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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4761--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 22, 2013
                               ___________

Introduced by Sen. GOLDEN -- (at request of the New York State Teachers'
  Retirement System) -- read twice and ordered printed, and when printed
  to  be  committed  to  the  Committee on Civil Service and Pensions --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to amend the retirement and social security law, in relation to
  clarifying the maximum salary which may be used to calculate the ordi-
  nary death benefit of members of the public retirement systems of  the
  state

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision c of section 448 of the retirement  and  social
security  law, as amended by chapter 510 of the laws of 1974, is amended
to read as follows:
  c. For the purpose of  this  section,  salary  shall  be  the  regular
compensation earned during the member's last twelve months of service in
full  pay  status  as a member or, if he OR SHE had not completed twelve
months of service prior to the date of death, but  was  subject  to  the
provisions  of subdivision b of this section, the compensation he OR SHE
would have earned had he OR SHE worked for the twelve  months  prior  to
such  date;  provided,  however,  for the purpose of this section salary
shall exclude any form of  termination  pay  (which  shall  include  any
compensation in anticipation of retirement), or any lump sum payment for
deferred  compensation sick leave, or accumulated vacation credit or any
other payment for time not  worked  (other  than  compensation  received
while  on  sick  leave  or  authorized leave of absence) and in no event
shall it exceed the maximum salary  specified  in  section  one  hundred
thirty  of  the  civil service law, AS ADDED BY PART B OF CHAPTER TEN OF
THE LAWS OF TWO THOUSAND EIGHT,  OR  THE  MAXIMUM  SALARY  SPECIFIED  IN
SECTION  ONE  HUNDRED  THIRTY  OF  THE  CIVIL  SERVICE LAW, AS HEREAFTER
AMENDED, WHICHEVER IS GREATER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08981-11-3

S. 4761--A                          2

  S 2. Subdivision c of section 508 of the retirement and social securi-
ty law, as added by chapter 617 of the laws of 1986, is amended to  read
as follows:
  c.  For  the  purpose  of  this  section,  salary shall be the regular
compensation earned during the member's last twelve months of service in
full pay status as a member or, if he OR SHE had  not  completed  twelve
months  of  service  prior  to the date of death, but was subject to the
provisions of subdivision b of this section, the compensation he OR  SHE
would  have  earned  had he OR SHE worked for the twelve months prior to
such date; provided, however, for the purpose  of  this  section  salary
shall  exclude  any  form  of  termination  pay (which shall include any
compensation in anticipation of retirement), or any lump sum payment for
deferred compensation sick leave, or accumulated vacation credit or  any
other  payment  for  time  not  worked (other than compensation received
while on sick leave or authorized leave of  absence)  and  in  no  event
shall  it  exceed  the  maximum  salary specified in section one hundred
thirty of the civil service law, AS ADDED BY PART B OF  CHAPTER  TEN  OF
THE  LAWS  OF  TWO  THOUSAND  EIGHT,  OR THE MAXIMUM SALARY SPECIFIED IN
SECTION ONE HUNDRED THIRTY  OF  THE  CIVIL  SERVICE  LAW,  AS  HEREAFTER
AMENDED, WHICHEVER IS GREATER.
  S 3. Subdivision c of section 606 of the retirement and social securi-
ty  law, as added by chapter 617 of the laws of 1986, is amended to read
as follows:
  c. For the purpose of  this  section,  salary  shall  be  the  regular
compensation earned during the member's last twelve months of service in
full  pay  status  as a member or, if he OR SHE had not completed twelve
months of service prior to the date of death, but  was  subject  to  the
provisions  of subdivision b of this section, the compensation he OR SHE
would have earned had he OR SHE worked for the twelve  months  prior  to
such  date;  provided,  however,  for the purpose of this section salary
shall exclude any form of  termination  pay  (which  shall  include  any
compensation in anticipation of retirement), or any lump sum payment for
deferred  compensation sick leave, or accumulated vacation credit or any
other payment for time not  worked  (other  than  compensation  received
while  on  sick  leave  or  authorized leave of absence) and in no event
shall it exceed the maximum salary  specified  in  section  one  hundred
thirty  of  the  civil service law, AS ADDED BY PART B OF CHAPTER TEN OF
THE LAWS OF TWO THOUSAND EIGHT,  OR  THE  MAXIMUM  SALARY  SPECIFIED  IN
SECTION  ONE  HUNDRED  THIRTY  OF  THE  CIVIL  SERVICE LAW, AS HEREAFTER
AMENDED, WHICHEVER IS GREATER.
  S 4. Notwithstanding any other provision of law to the contrary,  none
of  the  provisions  of  this  act shall be subject to section 25 of the
retirement and social security law.
  S 5. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2011.
  FISCAL  NOTE.--Pursuant  to  Legislative  Law, Section 50:   This bill
would clarify the maximum salary used for ordinary death benefit  calcu-
lations  for  Tiers  2,  3, 4, 5 and 6 members who joined certain public
retirement systems after the effective date of Chapter 491 of  the  Laws
of 2011. The maximum salary used to calculate the ordinary death benefit
would  be  the  greater  of  the  maximum  salary CURRENTLY specified in
Section 130 of the Civil Service Law or such maximum salary specified in
Section 130 PRIOR to the changes to  Section  130  enacted  pursuant  to
Chapter  491.  This  bill  would ensure that no members who first join a
retirement system on or after the effective date of Chapter 491  of  the
Laws  of  2011 would receive a reduced ordinary death benefit due to the

S. 4761--A                          3

provisions of that enactment. This bill also states  that  none  of  the
provisions  of this act shall be subject to Section 25 of the Retirement
and Social Security Law.
  If  this  bill  is  enacted, insofar as this bill affects the New York
State and Local Employees' Retirement System and the New York State  and
Local  Police  and  Fire  Retirement System, we anticipate that very few
members would be affected, and the  costs  would  be  negligible.  These
costs  would  be  borne  by  the state of New York and the participating
employers in the New York State and Local Employees'  Retirement  System
and the New York State and Local Police and Fire Retirement System.
  Summary of relevant resources:
  Data:  March  31,  2012  Actuarial Year End File with distributions of
membership and other statistics displayed in  the  2012  Report  of  the
Actuary and 2012 Comprehensive Annual Financial Report.
  Assumptions  and  Methods:  2010,  2011  and 2012 Annual Report to the
Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the
State of New York: Audit and Control.
  Market Assets and GASB Disclosures: March 31, 2012 New York State  and
Local  Retirement System Financial Statements and Supplementary Informa-
tion.
  Valuations of Benefit Liabilities and Actuarial Assets: summarized  in
the 2012 Actuarial Valuations report.
  I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
  This estimate, dated May 6, 2013, and intended for use only during the
2013  Legislative  Session,  is Fiscal Note No. 2013-139 prepared by the
Actuary for the New York State and Local  Employees'  Retirement  System
and the New York State and Local Police and Fire Retirement System.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill would amend Sections 448, 508 and 606 of the Retirement and
Social Security Law to clarify the maximum salary used to calculate  the
paragraph  2  death benefit for Tier 2, 3, 4, 5 and 6 members of the New
York State Teachers' Retirement  System.  The  maximum  salary  used  to
calculate the paragraph 2 death benefit shall not be less than the maxi-
mum  salary specified in Section 130 of the Civil Service Law, as it was
added by part B of Chapter 10 of the Laws of 2008, or the maximum salary
specified in Section  130  of  the  Civil  Service  Law,  as  thereafter
amended,  whichever is greater. Chapter 491 of the Laws of 2011 slightly
lowered the salary limit for death benefit calculation purposes, yet the
current limit in constitutionally protected for current members.
  The annual cost to the employers of members  of  the  New  York  State
Teachers'  Retirement  System is estimated to be negligible if this bill
is enacted.
  The source of this estimate is Fiscal Note 2013-2 dated September  19,
2012  prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2013 Legislative Session.
I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
Retirement  System.  I  am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of  Actu-
aries to render the actuarial opinion contained herein.

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