The New York State Senate

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

                                  7553

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                               May 9, 2019
                               ___________

Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
  Committee on Governmental Employees

AN ACT to amend the retirement and social security law, in  relation  to
  authorizing  the  beneficiaries  of  a  member  of the state and local
  employees' retirement system who die after filing a retirement  appli-
  cation to choose pension benefits rather than a death benefit

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

  Section 1. Subdivision a of section 70 of the  retirement  and  social
security  law, as amended by chapter 375 of the laws of 2011, is amended
to read as follows:
  a. Any member may retire if he or she shall have attained at least the
minimum retirement age while in service as a member, or while in federal
service, or in the service of the United Nations or other  international
organizations  of  which  the  United  States  is  a member, as a member
continued pursuant to paragraph one of subdivision f of section forty of
this article, or while entitled to make application for a vested retire-
ment allowance pursuant to section seventy-six of this title.  Any  such
member desiring to retire shall execute and file with the comptroller an
application  for  retirement,  which shall specify the effective date of
his or her retirement, which shall be not less  than  fifteen  nor  more
than  ninety  days subsequent to such date of filing. An application for
service retirement, filed hereunder in accordance with the provisions of
subdivision c of section sixty-two or subdivision f  of  section  sixty-
three  of  this  article,  shall  be  processed  in  the regular manner,
provided that if the application filed  simultaneously  therewith  under
either  of  such  subdivisions  is  granted,  then and in that event the
retirement allowance granted in accordance with the provisions  of  this
section  shall  be  appropriately  adjusted.  NOTWITHSTANDING  ANY OTHER
PROVISION OF LAW, ANY MEMBER WHO IS ELIGIBLE TO RETIRE AND WHO HAS  DIED
WHILE  IN  ACTIVE  SERVICE, AND WHO HAS FILED AN APPLICATION FOR SERVICE

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

                                                           LBD11209-02-9

A. 7553                             2

RETIREMENT LESS THAN THIRTY DAYS PRIOR TO DEATH, SHALL BE DEEMED TO HAVE
RETIRED AND THE MEMBER'S DESIGNATED BENEFICIARY SHALL HAVE THE OPTION TO
CHOOSE THE BENEFIT PROVIDED BY SERVICE RETIREMENT RATHER THAN THE  DEATH
BENEFIT, PROVIDED, HOWEVER THAT IF THE DESIGNATED BENEFICIARY ELECTS THE
SERVICE  RETIREMENT  BENEFIT  SUCH PERSON SHALL BE REQUIRED TO CHOOSE AN
OPTION UNDER SECTION NINETY OF THIS ARTICLE.
  § 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after January 1, 2017.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill  would allow a deceased member's designated beneficiary the
option to choose the survivor's benefit provided by  service  retirement
or  the member's active death benefit, provided the member is (1) eligi-
ble to retire (on the day before the date of death),  (2)  has  died  in
active  service, and (3) has FILED an application for service retirement
less than thirty days prior to death.  The  date  used  for  the  deemed
service  retirement  will  be  the day prior to the member's death. This
bill will include deaths which occurred on or after January 1, 2017.
  If this bill is enacted,  the  cost  will  depend  upon  the  deceased
member's  age,  service, salary, plan, and the optional form selected by
the member's designated beneficiary. For certain alternative options, as
permitted under the Retirement and Social Security Law §90, §447,  §514,
and  §610, there will be an estimated additional cost of up to eight (8)
times the salary of a deceased member. This cost assumes that the  post-
retirement  death  benefit will be payable on behalf of eligible members
only when the service retirement form is selected.
  The number of members and beneficiaries who could be affected by  this
legislation  cannot  be  readily  determined,  but  it is estimated that
approximately 250 beneficiaries could benefit from this  provision  each
year.  Pursuant to Section 25 of the Retirement and Social Security Law,
those costs arising would be borne solely by the State of New York.
  In addition to the per person costs stated above,  there  will  be  an
administrative cost to implement the provisions of this legislation.
  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, 2018  actuarial  valu-
ation.    Distributions  and  other  statistics can be found in the 2018
Report of the  Actuary  and  the  2018  Comprehensive  Annual  Financial
Report.
  The  actuarial assumptions and methods used are described in the 2015,
2016, 2017 and 2018  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, 2018
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  fiscal note does not constitute a legal opinion on the viability
of the proposed change nor is it intended to serve as a  substitute  for
the professional judgment of an attorney.
  This  estimate, dated April 30, 2019, and intended for use only during
the 2019 Legislative Session, is Fiscal Note No. 2019-104,  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
________________________________________________________________________

                                 7553--A

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                               May 9, 2019
                               ___________

Introduced  by  M.  of  A.  ZEBROWSKI  --  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, in  relation  to
  authorizing  the  beneficiaries  of  a  member  of the state and local
  employees' retirement system who die after filing a retirement  appli-
  cation to choose pension benefits rather than a death benefit

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

  Section 1. Subdivision a of section 70 of the  retirement  and  social
security  law, as amended by chapter 375 of the laws of 2011, is amended
to read as follows:
  a. Any member may retire if he or she shall have attained at least the
minimum retirement age while in service as a member, or while in federal
service, or in the service of the United Nations or other  international
organizations  of  which  the  United  States  is  a member, as a member
continued pursuant to paragraph one of subdivision f of section forty of
this article, or while entitled to make application for a vested retire-
ment allowance pursuant to section seventy-six of this title.  Any  such
member desiring to retire shall execute and file with the comptroller an
application  for  retirement,  which shall specify the effective date of
his or her retirement, which shall be not less  than  fifteen  nor  more
than  ninety  days subsequent to such date of filing. An application for
service retirement, filed hereunder in accordance with the provisions of
subdivision c of section sixty-two or subdivision f  of  section  sixty-
three  of  this  article,  shall  be  processed  in  the regular manner,
provided that if the application filed  simultaneously  therewith  under
either  of  such  subdivisions  is  granted,  then and in that event the
retirement allowance granted in accordance with the provisions  of  this
section  shall  be  appropriately  adjusted.  NOTWITHSTANDING  ANY OTHER
PROVISION OF LAW, FOR ANY MEMBER WHO IS ELIGIBLE TO RETIRE AND  WHO  HAS
DIED  WHILE  IN  ACTIVE  SERVICE,  AND  WHO HAS FILED AN APPLICATION FOR
SERVICE RETIREMENT LESS THAN THIRTY DAYS PRIOR TO  DEATH,  THE  MEMBER'S

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11209-08-9

A. 7553--A                          2

ACTIVE  BENEFICIARY SHALL HAVE THE OPTION TO CHOOSE THE DEATH BENEFIT OR
IF SUCH MEMBER FILED AN OPTION ELECTION FORM PRIOR TO DEATH, THE BENEFIT
ELECTED BY THE MEMBER ON SUCH FORM, IN WHICH CASE  THE  MEMBER  WILL  BE
DEEMED TO HAVE RETIRED THE DAY PRIOR TO DEATH.
  §  2. 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.
  §  3.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after January 1, 2017.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This bill would allow a deceased member's active death beneficiary the
option to make effective the service retirement and option election form
filed by the member, resulting in payment of  a  survivor's  benefit  in
lieu  of  the  member's active death benefit, provided the member is (1)
eligible to retire (on the day before the date of death), (2)  has  died
in  active  service, (3) has FILED an application for service retirement
less than thirty days prior to  death,  and  (4)  has  FILED  an  option
election  form  prior  to  death.  The  date used for the deemed service
retirement will be the day prior to the member's death. This  bill  will
include deaths which occurred on or after January 1, 2017.
  If  this  bill  is  enacted,  the  cost  will depend upon the deceased
member's age, service, salary, pan, and the optional  form  selected  by
the member on the option election form filed with the New York State and
Local  Employees'  Retirement  System  (NYSLERS).  For standard options,
there will be an estimated additional cost of up to five (5)  times  the
salary  of a deceased member. This cost assumes that the post-retirement
death benefit will be payable on behalf of eligible  members  only  when
the service retirement form is selected.
  The  number of members and beneficiaries who could be affected by this
legislation cannot be readily  determined,  but  it  is  estimated  that
approximately  450  beneficiaries could benefit from this provision each
year. Those costs arising would be shared and spread by the State of New
York and the participating employers in NYSLERS.
  In addition to the per person costs stated above,  there  will  be  an
administrative cost to implement the provisions of this legislation.
  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, 2018  actuarial  valu-
ation.    Distributions  and  other  statistics can be found in the 2018
Report of the  Actuary  and  the  2018  Comprehensive  Annual  Financial
Report.
  The  actuarial assumptions and methods used are described in the 2015,
2016, 2017 and 2018  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, 2018
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  fiscal note does not constitute a legal opinion on the viability
of the proposed change nor is it intended to serve as a  substitute  for
the professional judgment of an attorney.
  This  estimate,  dated June 12, 2019, and intended for use only during
the 2019 Legislative Session, is Fiscal Note No. 2019-140,  prepared  by
the Actuary for the New York State and Local Retirement System.