S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7158
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 3, 2018
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 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 2017, is amended to read as
 follows:
   c. Commencing  July  first,  two  thousand  [seventeen]  EIGHTEEN  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 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                  [226.2%] 236%
           1978                           [216.7%] 226.2%
           1979                           [207.5%] 216.7%
           1980                           [198.5%] 207.5%
           1981                           [189.8%] 198.5%
           1982                           [181.4%] 189.8%
           1983                           [173.2%] 181.4%
           1984                           [165.2%] 173.2%
           1985                           [157.5%] 165.2%
           1986                           [150.0%] 157.5%
           1987                           [142.7%] 150.0%
           1988                           [135.7%] 142.7%
           1989                           [128.8%] 135.7%
           1990                           [122.1%] 128.8%
           1991                           [115.7%] 122.1%
              

           1992                           [109.4%] 115.7%
           1993                           [103.3%] 109.4%
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13848-02-7

 S. 7158                             2

           1994                            [97.4%] 103.3%
           1995                            [91.6%] 97.4%
           1996                            [86.0%] 91.6%
           1997                            [80.6%] 86.0%
           1998                            [75.4%] 80.6%
           1999                            [70.2%] 75.4%
           2000                            [65.3%] 70.2%
           2001                            [60.5%] 65.3%
           2002                            [55.8%] 60.5%
           2003                            [51.3%] 55.8%
           2004                            [46.9%] 51.3%
           2005                            [42.6%] 46.9%
           2006                            [38.4%] 42.6%
           2007                            [34.4%] 38.4%
           2008                            [30.5%] 34.4%
           2009                            [26.7%] 30.5%
           2010                            [23.0%] 26.7%
           2011                            [19.4%] 23.0%
           2012                            [15.9%] 19.4%
           2013                            [12.6%] 15.9%
           2014                             [9.3%] 12.6%
           2015                             [6.1%] 9.3%
           2016                             [3.0%] 6.1%
           2017                             [0.0%] 3.0%
           2018                             0.0%
   § 2. Subdivision c of section 361-a of the retirement and social secu-
 rity  law,  as  amended by chapter 76 of the laws of 2017, is amended to
 read as follows:
   c. Commencing  July  first,  two  thousand  [seventeen]  EIGHTEEN  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 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                    [226.2%] 236%
           1978                             [216.7%] 226.2%
           1979                             [207.5%] 216.7%
           1980                             [198.5%] 207.5%
           1981                             [189.8%] 198.5%
           1982                             [181.4%] 189.8%
           1983                             [173.2%] 181.4%
           1984                             [165.2%] 173.2%
           1985                             [157.5%] 165.2%
           1986                             [150.0%] 157.5%
           1987                             [142.7%] 150.0%
           1988                             [135.7%] 142.7%
           1989                             [128.8%] 135.7%
           1990                             [122.1%] 128.8%
           1991                             [115.7%] 122.1%
           1992                             [109.4%] 115.7%
           1993                             [103.3%] 109.4%
           1994                             [97.4%] 103.3%
           1995                             [91.6%] 97.4%

 S. 7158                             3
 
           1996                             [86.0%] 91.6%
           1997                             [80.6%] 86.0%
           1998                             [75.4%] 80.6%
           1999                             [70.2%] 75.4%
           2000                             [65.3%] 70.2%
           2001                             [60.5%] 65.3%
           2002                             [55.8%] 60.5%
           2003                             [51.3%] 55.8%
           2004                             [46.9%] 51.3%
           2005                             [42.6%] 46.9%
           2006                             [38.4%] 42.6%
           2007                             [34.4%] 38.4%
           2008                             [30.5%] 34.4%
           2009                             [26.7%] 30.5%
           2010                             [23.0%] 26.7%
           2011                             [19.4%] 23.0%
           2012                             [15.9%] 19.4%
           2013                             [12.6%] 15.9%
           2014                             [9.3%] 12.6%
           2015                             [6.1%] 9.3%
           2016                             [3.0%] 6.1%
           2017                             [0.0%] 3.0%
           2018                             0.0%
   § 3. This act shall take effect July 1, 2018.
   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 2018.
   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  $493,000  above  the  approximately $11.3 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, 2017  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2017
 Report of the  Actuary  and  the  2017  Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions  and  methods  used are described in 2015,
 2016, and 2017 Annual Report to the  Comptroller  on  Actuarial  Assump-
 tions,  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, 2017
 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  estimate,  dated  December  8,  2017,  and intended for use only
 during the  2018  Legislative  Session,  is  Fiscal  Note  No.  2018-15,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7158--A
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 3, 2018
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- 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 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 2017, is amended to read as
 follows:
   c.  Commencing  July  first,  two  thousand  [seventeen]  EIGHTEEN 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 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                  [226.2%] 236%
           1978                           [216.7%] 226.2%
           1979                           [207.5%] 216.7%
           1980                           [198.5%] 207.5%
           1981                           [189.8%] 198.5%
           1982                           [181.4%] 189.8%
           1983                           [173.2%] 181.4%
           1984                           [165.2%] 173.2%
           1985                           [157.5%] 165.2%
           1986                           [150.0%] 157.5%
           1987                           [142.7%] 150.0%
           1988                           [135.7%] 142.7%
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13848-03-8

 S. 7158--A                          2
 
           1989                           [128.8%] 135.7%
           1990                           [122.1%] 128.8%
           1991                           [115.7%] 122.1%
           1992                           [109.4%] 115.7%
           1993                           [103.3%] 109.4%
           1994                            [97.4%] 103.3%
           1995                            [91.6%] 97.4%
           1996                            [86.0%] 91.6%
           1997                            [80.6%] 86.0%
           1998                            [75.4%] 80.6%
           1999                            [70.2%] 75.4%
           2000                            [65.3%] 70.2%
           2001                            [60.5%] 65.3%
           2002                            [55.8%] 60.5%
           2003                            [51.3%] 55.8%
           2004                            [46.9%] 51.3%
           2005                            [42.6%] 46.9%
           2006                            [38.4%] 42.6%
           2007                            [34.4%] 38.4%
           2008                            [30.5%] 34.4%
           2009                            [26.7%] 30.5%
           2010                            [23.0%] 26.7%
           2011                            [19.4%] 23.0%
           2012                            [15.9%] 19.4%
           2013                            [12.6%] 15.9%
           2014                             [9.3%] 12.6%
           2015                             [6.1%] 9.3%
           2016                             [3.0%] 6.1%
           2017                             [0.0%] 3.0%
           2018                             0.0%
   § 2. Subdivision c of section 361-a of the retirement and social secu-
 rity  law,  as  amended by chapter 76 of the laws of 2017, is amended to
 read as follows:
   c. Commencing  July  first,  two  thousand  [seventeen]  EIGHTEEN  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 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                    [226.2%] 236%
           1978                             [216.7%] 226.2%
           1979                             [207.5%] 216.7%
           1980                             [198.5%] 207.5%
           1981                             [189.8%] 198.5%
           1982                             [181.4%] 189.8%
           1983                             [173.2%] 181.4%
           1984                             [165.2%] 173.2%
           1985                             [157.5%] 165.2%
           1986                             [150.0%] 157.5%
           1987                             [142.7%] 150.0%
           1988                             [135.7%] 142.7%
           1989                             [128.8%] 135.7%
           1990                             [122.1%] 128.8%

 S. 7158--A                          3

           1991                             [115.7%] 122.1%
           1992                             [109.4%] 115.7%
           1993                             [103.3%] 109.4%
           1994                             [97.4%] 103.3%
           1995                             [91.6%] 97.4%
           1996                             [86.0%] 91.6%
           1997                             [80.6%] 86.0%
           1998                             [75.4%] 80.6%
           1999                             [70.2%] 75.4%
           2000                             [65.3%] 70.2%
           2001                             [60.5%] 65.3%
           2002                             [55.8%] 60.5%
           2003                             [51.3%] 55.8%
           2004                             [46.9%] 51.3%
           2005                             [42.6%] 46.9%
           2006                             [38.4%] 42.6%
           2007                             [34.4%] 38.4%
           2008                             [30.5%] 34.4%
           2009                             [26.7%] 30.5%
           2010                             [23.0%] 26.7%
           2011                             [19.4%] 23.0%
           2012                             [15.9%] 19.4%
           2013                             [12.6%] 15.9%
           2014                             [9.3%] 12.6%
           2015                             [6.1%] 9.3%
           2016                             [3.0%] 6.1%
           2017                             [0.0%] 3.0%
           2018                             0.0%
   § 3. This act shall take effect July 1, 2018.
   FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL:  The  enactment  of this proposed legislation would
 amend General Municipal Law (GML) Section 208-f(c) to  increase  certain
 Special  Accidental Death Benefits (SADB) for surviving spouses, depend-
 ent children, and certain other individuals (Eligible Beneficiaries)  of
 former uniformed employees of the city of New York 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.
   Effective Date for this proposed legislation: July 1, 2018.
   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 City Fire Pension Fund (FIRE),
   and who were 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 Department of Sanitation - Uniformed Position,
   * New York City Housing Authority - Uniformed Position,
   * New York City Transit Authority - Uniformed Position,
   * New York City Department of Correction - Uniformed Position,

 S. 7158--A                          4
 
   *  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 as:
   The  salary  of  the  deceased member at date of death (or, in certain
 instances,  a  greater  salary  based  on  a  higher   rank   or   other
 status)(Final  Salary), less the following payments to an Eligible Bene-
 ficiary:
   * Any NYCRS death benefit as adjusted by any Supplementation or  Cost-
 of-Living Adjustment (COLA),
   * Any Social Security death benefit, and
   * Any Workers' 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 of a
 student. If neither spouse nor a 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 tradi-
 tionally been increased by a cumulative, incremental percentage of Final
 Salary based on the calendar year of the member's death.
   Under the proposed legislation, effective July 1, 2018, an  additional
 3.0%  of  Final  Salary  would be applied to the SADB paid due to deaths
 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 respect to the  NYCRS,  the
 additional annual employer payments expected to be paid during the first
 year,  if the proposed legislation is enacted, would equal approximately
 $3.4 million.
   As a result of the past four decades' practice of providing 3.0% COLAs
 on the SADB each year, and the likelihood that COLAs will continue to be
 granted in the future, the NYCRS Preliminary Fiscal Year  2018  employer
 contributions  reflected,  for  the  first  time,  the value of the SADB
 provided pursuant to  GML  Section  208(f)  with  an  annual  escalation
 assumption of 3.0%. Since then, the Actuary has continued to include the
 liability  for  SADB  benefits  and the assumed future annual escalation
 increases of 3.0%, including the additional cost  associated  with  this
 proposed  legislation,  in  NYCRS employer contributions. Therefore, the
 costs of this proposed legislation have already been accounted  for  and
 will  not  result  in  a  further  increase  in  employer contributions.
 Conversely, should this proposed legislation fail to pass, NYCRS employ-
 er contributions would decrease by approximately $400,000 per  year  for
 14 years beginning in Fiscal Year 2021 as a result of an actuarial gain.
   FINANCIAL  IMPACT  - ACTUARIAL PRESENT VALUES OF BENEFITS (APVB): With
 respect to Eligible Beneficiaries of deceased NYCRS members who would be
 impacted by this proposed legislation, under the  actuarial  assumptions
 used in the NYCRS June 30, 2016 (Lag) actuarial valuations, including an
 annual  Actuarial  Interest Rate (AIR) assumption of 7.0%, the enactment
 of this proposed legislation would increase the  APVB  by  approximately
 $36.9 million as of June 30, 2018.

 S. 7158--A                          5
 
   OTHER  COSTS:  Enactment  of  this  proposed legislation would also be
 expected to result in modest increases  in  administrative  expenses  of
 NYCERS,  POLICE and FIRE, their participating 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.
 
             TOTAL ACCIDENTAL DEATH BENEFIT PAID BY THE NYCRS
 
                                              Annual Accidental Death
                      Number of Deceased     Benefit Prior to Proposed
                     Members with Eligible     July 1, 2018 Increase
 Retirement System         Survivors                 ($ Millions)
 ________________________________________________________________________
 NYCERS                        36                        $2.8
 POLICE                       367                        38.8
 FIRE                         621                        70.6
 Total                      1,024                      $112.2
 
   ACTUARIAL ASSUMPTIONS AND METHODS: The increase in the APVB  presented
 herein  has  been calculated based on the same actuarial assumptions and
 methods in effect for the June 30, 2016 (Lag) actuarial valuations  used
 to  determine the Preliminary Fiscal Year 2018 employer contributions of
 NYCERS, POLICE and FIRE, including an  annual  Actuarial  Interest  Rate
 (AIR) assumption of 7.0% (net of Investment Expenses). Please note these
 assumptions  and  methods are subject to change as this valuation is not
 considered final until the end of the City's Fiscal Year 2018.
   STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
 ary  for,  and  independent of, the New York City Retirement Systems and
 Pension Funds. I am a Fellow of the Society of  Actuaries,  an  Enrolled
 Actuary  under  the  Employee Retirement Income and Security Act of 1974
 (ERISA), a Member of the American Academy of Actuaries, and a Fellow  of
 the  Conference of Consulting Actuaries. I meet the Qualification Stand-
 ards of the American Academy of Actuaries to render the actuarial  opin-
 ion  contained  herein.    To  the  best  of  my  knowledge, the results
 contained  herein  have  been  prepared  in  accordance  with  generally
 accepted  actuarial  principles  and  procedures, and with the Actuarial
 Standards of Practice issued by the Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2018-02 dated January 31,
 2018, was prepared by the Chief Actuary for the New York City Employees'
 Retirement System, the New York City Police Pension Fund  and  New  York
 City  Fire  Pension  Fund. This estimate is intended for use only during
 the 2018 Legislative Session.