S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7185--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 12, 2017
                                ___________
 
 Introduced  by  M.  of  A.  DenDEKKER  --  read once and referred to the
   Committee on Governmental  Employees  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the retirement and social security law and  the  general
   municipal  law,  in relation to pension benefits of widows or widowers
   of sanitation workers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 7 of section 501 of the retirement and social
 security law, as amended by chapter 18 of the laws of 2012,  is  amended
 to read as follows:
   7.  "Eligible  beneficiary"  for  the purposes of section five hundred
 nine of this article shall mean the  following  persons  or  classes  of
 persons  in  the  order  set  forth:  (a) a surviving spouse who has not
 renounced survivorship rights in a separation  agreement,  until  remar-
 riage,  (b)  surviving  children  until  age  twenty-five, (c) dependent
 parents, determined under regulations promulgated  by  the  comptroller,
 (d)  any  other person who qualified as a dependent on the final federal
 income tax return of the member or the return filed in  the  year  imme-
 diately  preceding  the year of death, until such person reaches twenty-
 one years of age [and], (e) with respect to members of the New York city
 employees' retirement system (other  than  a  New  York  city  uniformed
 correction/sanitation  revised  plan  member  or an investigator revised
 plan member) and the board of education retirement system of the city of
 New York, a person whom the member shall have nominated in the form of a
 written designation, duly acknowledged and filed with the  head  of  the
 retirement  system for the purpose of section five hundred eight of this
 article. In the event that a class of eligible beneficiaries consists of
 more than one person,  benefits  shall  be  divided  equally  among  the
 persons in such class. For the purposes of section five hundred eight of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09379-08-7

 A. 7185--A                          2
 
 this  article  the term "eligible beneficiary" shall mean such person as
 the member shall have nominated to receive the benefits provided in this
 article. To be effective, such a nomination must be in  the  form  of  a
 written  designation,  duly  acknowledged and filed with the head of the
 retirement system for this specific purpose. In the  event  such  desig-
 nated  beneficiary  does  not  survive  him,  or if he shall not have so
 designated a beneficiary, such benefits shall be payable to the deceased
 member's estate or as provided in section one thousand three hundred ten
 of the surrogate's court procedure act AND (F) NOTWITHSTANDING ANY OTHER
 PROVISIONS OF LAW, "ELIGIBLE BENEFICIARY" OF A NEW YORK  CITY  UNIFORMED
 SANITATION  REVISED PLAN MEMBER FOR THE PURPOSES OF SECTION FIVE HUNDRED
 NINE OF THIS ARTICLE SHALL MEAN THE  FOLLOWING  PERSONS  OR  CLASSES  OF
 PERSONS  IN  THE  ORDER  SET  FORTH:  (I) A SURVIVING SPOUSE WHO HAS NOT
 RENOUNCED SURVIVORSHIP RIGHTS IN A SEPARATION AGREEMENT, (II)  SURVIVING
 CHILDREN  UNTIL  AGE  TWENTY-FIVE,  (III)  DEPENDENT PARENTS, DETERMINED
 UNDER REGULATIONS PROMULGATED BY THE  COMPTROLLER  AND  (IV)  ANY  OTHER
 PERSON  WHO  QUALIFIED  AS  A  DEPENDENT ON THE FINAL FEDERAL INCOME TAX
 RETURN OF THE MEMBER OR THE RETURN FILED IN THE YEAR IMMEDIATELY PRECED-
 ING THE YEAR OF DEATH, UNTIL SUCH PERSON  REACHES  TWENTY-ONE  YEARS  OF
 AGE.
   § 2. Subdivision d of section 601 of the retirement and social securi-
 ty law, is amended by adding a new paragraph 6 to read as follows:
   6. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW, "ELIGIBLE BENEFICIARY"
 OF  A NEW YORK CITY UNIFORMED SANITATION MEMBER SHALL MEAN THE FOLLOWING
 PERSONS OR CLASSES OF PERSONS IN THE ORDER SET FORTH:  (I)  A  SURVIVING
 SPOUSE  WHO  HAS  NOT  RENOUNCED SURVIVORSHIP IN A SEPARATION AGREEMENT,
 (II) SURVIVING CHILDREN UNTIL AGE TWENTY-FIVE, (III) DEPENDENT  PARENTS,
 DETERMINED UNDER REGULATIONS PROMULGATED BY THE COMPTROLLER AND (IV) ANY
 OTHER  PERSON  WHO  QUALIFIED AS A DEPENDENT ON THE FINAL FEDERAL INCOME
 TAX RETURN OF THE MEMBER OR THE RETURN FILED  IN  THE  YEAR  IMMEDIATELY
 PRECEDING  THE YEAR OF DEATH, UNTIL SUCH PERSON REACHES TWENTY-ONE YEARS
 OF AGE.
   § 3. Subdivision a of section 208-f of the general municipal  law,  as
 separately  amended  by  chapters  583  and  742 of the laws of 2004, is
 amended to read as follows:
   a. Notwithstanding any other provision of law, the special  accidental
 death  benefit  provided  by  this section shall be paid to the 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  of:  (i)  a deceased member of a pension or retirement system of a
 police department or paid fire department of a city,  town  or  village;
 (ii) a deceased paid member of the police force of the police department
 of  the New York city transit authority; (iii) a deceased paid member of
 the police force of the police department of the New York  city  housing
 authority; (iv) a deceased paid member of the uniformed correction force
 of  the  New  York  city  department  of correction; (v) a deceased paid
 uniformed member of a county sheriff's department (outside the  city  of
 New  York); [or] (vi) a deceased employee of the city of New York or the
 New York city health and hospitals corporation in a title  whose  duties
 are  those  of  an  emergency  medical  technician or advanced emergency
 medical technician (as those terms are defined in section three thousand
 one of the public health law), or in a title whose  duties  require  the
 supervision  of employees whose duties are those of an emergency medical
 technician or advanced emergency medical technician (as those terms  are
 defined  in  section  three  thousand one of the public health law); [or
 (vi)] (VII) a deceased paid bridge and tunnel member  of  the  New  York

 A. 7185--A                          3
 
 city  employees'  retirement system; OR (VIII) A DECEASED PAID MEMBER OF
 THE UNIFORMED FORCE OF THE  NEW  YORK  CITY  DEPARTMENT  OF  SANITATION,
 providing  the widow or widower is ineligible to receive benefits pursu-
 ant  to  section  three hundred sixty-one-a of the retirement and social
 security law as [added] AMENDED by chapter  [four  hundred  seventy-two]
 SEVEN  HUNDRED  THIRTY-THREE  of  the laws of [nineteen hundred seventy-
 eight] NINETEEN HUNDRED NINETY and the deceased member:
   1. Died before the effective date of his or  her  retirement,  as  the
 natural and proximate result of an accident sustained in the performance
 of duty in the service upon which his membership was based, and
   2.  Did  not cause such accident by his or her own willful negligence,
 and
   3. At the time of such accident  was  actually  a  member  of:  (i)  a
 pension or retirement system of a police department or paid fire depart-
 ment  of  a  city,  town or village; (ii) a pension or retirement system
 covering the police force of the police department of the New York  city
 transit  authority;  (iii)  a  pension or retirement system covering the
 police force of the police department  of  the  New  York  city  housing
 authority;  (iv)  a  pension or retirement system covering the uniformed
 correction force of the New York city department of  correction;  (v)  a
 pension  or  retirement  system  covering  uniformed members of a county
 sheriff's department (outside the city of New York); [or] (vi) a pension
 or retirement system covering employees of the city of New York, or  the
 New  York  city health and hospitals corporation in a title whose duties
 are those of an  emergency  medical  technician  or  advanced  emergency
 medical technician (as those terms are defined in section three thousand
 one  of  the  public health law), or in a title whose duties require the
 supervision of employees whose duties are those of an emergency  medical
 technician  or advanced emergency medical technician (as those terms are
 defined in section three thousand one of the  public  health  law);  [or
 (vi)]  (VII)  a  pension  or  retirement system covering paid bridge and
 tunnel members of the New York city  employees'  retirement  system;  OR
 (VIII)  A  PENSION  OR  RETIREMENT  SYSTEM  COVERING PAID MEMBERS OF THE
 UNIFORMED FORCE OF THE NEW YORK CITY DEPARTMENT OF SANITATION.
   § 4. This act shall take effect  immediately,  provided  that  section
 three  of this act shall be deemed to have been in full force and effect
 on or after November 1, 1996.
   FISCAL NOTE. -- Pursuant to Legislative law, section 50:
   PROVISIONS OF PROPOSED LEGISLATION:  The  proposed  legislation  would
 amend General Municipal Law (GML) Section 208-f to provide Special Acci-
 dental  Death  Benefits (SADB) to eligible beneficiaries of employees of
 the City of New York (the City) who are employed in the Uniformed  Force
 of  the  Department  of  Sanitation (Sanitation), are members of the New
 York City Employees' Retirement System (NYCERS), and die  as  a  natural
 and proximate result of an accident sustained in the performance of duty
 on or after November 1, 1996.
   The proposed legislation further amends Retirement and Social Security
 Law  (RSSL)  Sections 501 and 601 to prospectively expand the definition
 of a Tier 4 and 6 (modified Tier 3) eligible beneficiary for  Accidental
 Death  Benefits  contained  in  RSSL  Sections  509 and 607 to include a
 surviving spouse who remarries after the eligible member's death.
   The Effective Date of the proposed legislation would be  the  date  of
 enactment,  provided  that  the  SADB would be retroactive to accidental
 deaths sustained in the performance of duty on  and  after  November  1,
 1996.

 A. 7185--A                          4
 
   IMPACT  ON  SADB  BENEFITS  PAYABLE: The SADB provided by GML 208-f is
 paid to the deceased member's surviving spouse, if alive. If the  spouse
 is no longer alive, then the SADB is paid to the deceased member's chil-
 dren until age eighteen or until age twenty-three if a student.
   Under  the  proposed  legislation,  eligible beneficiaries of deceased
 Sanitation members, who met or meet the criteria of GML Section 208-f on
 and after November 1, 1996, would receive the SADB.
   Under GML Section 208-f, 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),
   Reduced by:
   * Any Accidental Death Benefit (generally equal to an  annual  pension
 of  50%  of Final Salary) as adjusted by any Supplementation or Cost-of-
 Living Adjustment (COLA) paid to the deceased member's eligible  benefi-
 ciaries,
   *  Any  death benefit paid by Social Security to the deceased member's
 eligible beneficiaries, and
   * Any Workers' Compensation benefit  paid  to  the  deceased  member's
 eligible beneficiaries (but it is the understanding of the OA that Sani-
 tation members are ineligible for Workers' Compensation benefits).
   The  GML  also  provides that the SADB has been subject in the past to
 escalation based on the calendar year of the member's death.
   IMPACT ON ACCIDENTAL DEATH  BENEFITS  PAYABLE:  The  Accidental  Death
 Benefits  provided  by RSSL Sections 509 and 607 (generally 50% of Final
 Salary as adjusted by any Supplementation  or  COLA)  are  paid  to  the
 deceased  member's  surviving spouse, who has not renounced survivorship
 rights in a separation agreement, if alive and until remarriage.
   If the surviving spouse is no longer alive or no longer eligible, then
 the Accidental Death Benefit is paid in successive order to any  surviv-
 ing  children  until  age  twenty-five,  or  any dependent parents. RSSL
 Section 509 further provides  an  additional  successive  class  of  any
 dependents listed on the member's federal income in the year immediately
 preceding the member's death.
   Under  the  proposed  legislation,  a  Sanitation  member's  surviving
 spouse, who has not renounced survivorship rights in a separation agree-
 ment, would continue to receive Accidental Death Benefits for life, even
 after remarriage.
   FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES OF BENEFITS  (APVB):  With
 respect  to  the  eligible  beneficiaries of deceased NYCERS members who
 would be impacted by this  proposed  legislation,  under  the  actuarial
 assumptions  used in the Preliminary June 30, 2016 (Lag) actuarial valu-
 ations of NYCERS, the  enactment  of  this  proposed  legislation  would
 increase  the  APVB  by approximately $48.2 million as of June 30, 2016.
 This amount is the sum of:
   * APVB of retroactive payments to current beneficiaries*: $8.9 million
   * APVB of prospective payments to current beneficiaries: $25.3 million
   * APVB of prospective payments  to  beneficiaries  of  current  active
 members: $14.0 million
   *It has been assumed that no interest will be credited on these retro-
 active payments.
   The  APVB  was  calculated without regard to any death benefit paid by
 Social Security to the deceased member's eligible beneficiaries.
   FINANCIAL IMPACT - EMPLOYER PAYMENTS: In accordance wit  the  Adminis-
 trative  Code  of the City of New York (ACNY) Section 13.638.2(k-2), new
 UAAL attributable to benefit changes are to be amortized  as  determined

 A. 7185--A                          5
 
 by  the  Actuary  but  generally  over the remaining working lifetime of
 those impacted by the benefit changes. As of June 30, 2016, the  remain-
 ing  working  lifetime  of the Sanitation members and beneficiaries that
 would be impacted by the proposed legislation is approximately 11 years.
   With  respect to NYCERS based on the actuarial assumptions and methods
 used in the Preliminary June 30, 2016 valuations of NYCERS,  the  enact-
 ment  of  this  proposed  legislation  would  increase  annual  employer
 contributions by approximately $6.8 million per year beginning in Fiscal
 Year 2018.
   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. Assuming this procedure is the same and the State does not
 reimburse  beyond  the current fixed amount, then the additional cost of
 this proposed legislation would be borne entirely by  the  City  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.
   CENSUS  DATA:  As  of June 30, 2016, there are 7,338 active Sanitation
 members with an average age of approximately 42.9,  average  service  of
 12.0 years, and an average salary of approximately $94,000.
   As  of June 30, 2016, there are 24 Sanitation beneficiaries of members
 who died on or after November 1, 1996 currently in receipt of accidental
 death benefits with an average age of approximately 53.3, average number
 of years in receipt of an accidental death benefit of 8.8 years, and  an
 average annual pension benefit of approximately $36,200.
   ACTUARIAL ASSUMPTIONS AND METHODS: The additional APVB presented here-
 in  have  been calculated based on the actuarial assumptions and methods
 in effect for the Preliminary June 30, 2016 (Lag)  actuarial  valuations
 used  to  determine  the  Preliminary Fiscal Year 2018 employer contrib-
 utions of NYCERS. Also, for  purposes  of  this  Fiscal  Note,  we  have
 assumed that the escalation of 3% per year provided historically to this
 benefit will continue in the future.
   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 2017-26 dated June 1,
 2017 was prepared by the Chief Actuary for the New York City  Employees'
 Retirement  System.  This  estimate  is intended for use only during the
 2017 Legislative Session.