S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6286--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 1, 2017
                                ___________
 
 Introduced  by M. of A. JOYNER, D'URSO, ZEBROWSKI, KEARNS, TITONE, PHEF-
   FER AMATO, SIMON, COOK, ORTIZ,  SKOUFIS,  SIMANOWITZ,  HARRIS,  ENGLE-
   BRIGHT,  ROSENTHAL,  AUBRY,  JONES  --  Multi-Sponsored by -- M. of A.
   LENTOL, LUPARDO, NOLAN -- read once and referred to the  Committee  on
   Governmental  Employees -- 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 347 of the laws of 2016, is amended  to  read
 as follows:
   c. Commencing July first, two thousand [sixteen] SEVENTEEN 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,  if the widow or widower has died, shall be esca-
 lated 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                  [216.7%] 226.2%
           1978                           [207.5%] 216.7%
           1979                           [198.5%] 207.5%
           1980                           [189.8%] 198.5%
           1981                           [181.4%] 189.8%
           1982                           [173.2%] 181.4%
           1983                           [165.2%] 173.2%
           1984                           [157.5%] 165.2%
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06480-03-7

 A. 6286--A                          2
 
           1985                           [150.0%] 157.5%
           1986                           [142.7%] 150.0%
           1987                           [135.7%] 142.7%
           1988                           [128.8%] 135.7%
           1989                           [122.1%] 128.8%
           1990                           [115.7%] 122.1%
           1991                           [109.4%] 115.7%
           1992                           [103.3%] 109.4%
           1993                            [97.4%] 103.3%
           1994                            [91.6%] 97.4%
           1995                            [86.0%] 91.6%
           1996                            [80.6%] 86.0%
           1997                            [75.4%] 80.6%
           1998                            [70.2%] 75.4%
           1999                            [65.3%] 70.2%
           2000                            [60.5%] 65.3%
           2001                            [55.8%] 60.5%
           2002                            [51.3%] 55.8%
           2003                            [46.9%] 51.3%
           2004                            [42.6%] 46.9%
           2005                            [38.4%] 42.6%
           2006                            [34.4%] 38.4%
           2007                            [30.5%] 34.4%
           2008                            [26.7%] 30.5%
           2009                            [23.0%] 26.7%
           2010                            [19.4%] 23.0%
           2011                            [15.9%] 19.4%
           2012                            [12.6%] 15.9%
           2013                             [9.3%] 12.6%
           2014                             [6.1%] 9.3%
           2015                             [3.0%] 6.1%
           2016                             [0.0%] 3.0%
           2017                                    0.0%
   § 2. Subdivision c of section 361-a of the retirement and social secu-
 rity  law,  as amended by chapter 347 of the laws of 2016, is amended to
 read as follows:
   c. Commencing July first, two thousand [sixteen] SEVENTEEN 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, if the widow or widower has died,  shall  be  esca-
 lated  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                    [216.7%] 226.2%
           1978                             [207.5%] 216.7%
           1979                             [198.5%] 207.5%
           1980                             [189.8%] 198.5%
           1981                             [181.4%] 189.8%
           1982                             [173.2%] 181.4%
           1983                             [165.2%] 173.2%
           1984                             [157.5%] 165.2%
           1985                             [150.0%] 157.5%
           1986                             [142.7%] 150.0%
           1987                             [135.7%] 142.7%

 A. 6286--A                          3
 
           1988                             [128.8%] 135.7%
           1989                             [122.1%] 128.8%
           1990                             [115.7%] 122.1%
           1991                             [109.4%] 115.7%
           1992                             [103.3%] 109.4%
           1993                              [97.4%] 103.3%
           1994                              [91.6%] 97.4%
           1995                              [86.0%] 91.6%
           1996                              [80.6%] 86.0%
           1997                              [75.4%] 80.6%
           1998                              [70.2%] 75.4%
           1999                              [65.3%] 70.2%
           2000                              [60.5%] 65.3%
           2001                              [55.8%] 60.5%
           2002                              [51.3%] 55.8%
           2003                              [46.9%] 51.3%
           2004                              [42.6%] 46.9%
           2005                              [38.4%] 42.6%
           2006                              [34.4%] 38.4%
           2007                              [30.5%] 34.4%
           2008                              [26.7%] 30.5%
           2009                              [23.0%] 26.7%
           2010                              [19.4%] 23.0%
           2011                              [15.9%] 19.4%
           2012                              [12.6%] 15.9%
           2013                               [9.3%] 12.6%
           2014                               [6.1%] 9.3%
           2015                               [3.0%] 6.1%
           2016                               [0.0%] 3.0%
           2017                                      0.0%
   § 3. This act shall take effect July 1, 2017.
   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 2017.
   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  $469,000  above  the  approximately $10.7 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:
   The  membership  data  used  in  measuring  the impact of the proposed
 change was the same as that used in the March 31, 2016  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2016
 Report of the  Actuary  and  the  2016  Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2015
 and 2016 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, 2016
 New York State and Local  Retirement  System  Financial  Statements  and
 Supplementary Information.

 A. 6286--A                          4
 
   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 10, 2017 and intended for use only during
 the 2017 Legislative Session, is Fiscal Note No. 2017-2, prepared by the
 Actuary for the New York State and Local 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 surviving  spouses,
 dependent children, and/or certain other individuals (Eligible Benefici-
 aries)  of  former uniformed employees of the City and the New York City
 Health and Hospitals Corporation, and for certain  former  employees  of
 the  Triborough Bridge and Tunnel Authority, who were members of certain
 New York City Pension Funds or Retirement Systems (NYCRS) and died as  a
 natural and proximate result of an accident sustained in the performance
 of duty.
   The Effective Date of the proposed legislation would be July 1, 2017.
   IMPACT  ON  BENEFITS - SADB RECIPIENTS: With respect to the NYCRS, the
 proposed legislation 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 Fire Department Pension Fund (FIRE),
   and  who  are  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 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),
   *  New York City Health and Hospitals Corporation - Uniformed Position
 as EMT, or
   * Triborough Bridge and Tunnel Authority - Bridge and Tunnel Position.
   DESCRIPTION OF BENEFITS PAYABLE: Under the  GML,  the  basic  SADB  is
 defined to equal:
   The  salary  of  the  deceased member at date of death (or, in certain
 instances, a greater salary based on rank or other status) (Final  Sala-
 ry), 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 Worker's 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 spouse nor 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  been
 increased  by  an additional cumulative, incremental percentage of Final
 Salary for deaths occurring on or after calendar years 1977.
   Under the proposed legislation, effective July 1, 2017, an  additional
 3.0%  of  Final  Salary  would be applied to the SADB paid due to deaths

 A. 6286--A                          5
 
 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  -  EMPLOYER  PAYMENTS:  With respects to the NYCRS,
 since 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  $3.1
 million.
   The  SADB  payments  are  made  by the NYCRS who are reimbursed by the
 City.
   Historically, the State of New York (the State)  reimbursed  the  City
 for most GML Section 208-f payments. However, it is the understanding of
 the Actuary that since 2009 the State has limited its reimbursement to a
 fixed  amount.  Should this amount not be increased, then the additional
 cost of this proposed legislation would be borne entirely by the City of
 New York.
   FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES OF BENEFITS  (APVB):  With
 respect  to  the  Eligible  Beneficiaries  of deceased NYCRS members who
 would be impacted by this  proposed  legislation,  under  the  actuarial
 assumptions  used in the June 30, 2016 (Lag) actuarial valuations of the
 NYCRS, including an Actuarial Interest Rate (AIR) assumption of 7.0% per
 annum, the enactment of this proposed  legislation  would  increase  the
 APVB by approximately $34.7 million as of June 30, 2017.
   Note  that  beginning  with  the June 30, 2016 actuarial valuations of
 NYCRS, the Actuary has elected to include the liability for  SADB  bene-
 fits,  including  assumed future increases of 3.0% per year, when deter-
 mining the employer contributions. Therefore, the additional cost  asso-
 ciated with this proposed legislation has already been accounted for and
 will not result in an increase in employer contributions.
   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  data  for such Eligible Beneficiaries provided by the
 NYCRS.
   The following  table  shows,  by  Retirement  System,  the  number  of
 deceased  members  with  Eligible  Beneficiaries who qualify for SADB as
 reported by the NYCRS and the estimated annual Accidental death benefit,
 including both the City and State portions, paid by the NYCRS, prior  to
 the increase purposed to be effective July 1, 2017.
                                  Table 1
 
             Total Accidental Death Benefit paid by the NYCRS
 
                               ($ Millions)
 
                         Number of Deceased      Annual Accidental Death
                       Members with Eligible    Benefit Prior to Proposed
 Retirement System           Survivors            July 1, 2017 Increase
 
 NYCERS                          31                     $ 2.2
 
 POLICE                          340                      34.7
 
 FIRE                            613                      67.8

 A. 6286--A                          6
 
    Total                        984                    $ 104.7
 
   ACTUARIAL  ASSUMPTIONS AND METHODS: Additional APVB have been computed
 based on the actuarial assumptions and methods in effect  for  the  June
 30,  2016  (Lag) actuarial valuations of NYCERS, POLICE and FIRE used to
 determine the  Preliminary  Fiscal  Year  2018  employer  contributions,
 including  an Actuarial Interest Rate (AIR) assumption of 7.0% per annum
 (net of Investment Expenses).
   STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
 ary for, and independent of, the New York City Pension Funds and Retire-
 ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the
 Conference  of Consulting 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 Fiscal Note 2017-07 dated  April  14,
 2017, was prepared by the Chief Actuary for the New York City Employees'
 Retirement  System,  the  New York City Police Pension Fund, and the New
 York Fire Department Pension Fund. This estimate  is  intended  for  use
 only during the 2017 Legislative Session.