S T A T E   O F   N E W   Y O R K
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                                  5484--A
     Cal. No. 568
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 31, 2017
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- reported favorably from said committee, ordered to first and second
   report, ordered to a third reading,  amended  and  ordered  reprinted,
   retaining its place in the order of third reading
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD09379-07-7

 S. 5484--A                          2
 
 persons in such class. For the purposes of section five hundred eight of
 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

 S. 5484--A                          3

 (vi)]  (VII)  a  deceased  paid bridge and tunnel member of the New York
 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.

 S. 5484--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

 S. 5484--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.