S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5901
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN  ACT  to  amend the retirement and social security law, the education
   law and the administrative code of the city of New York,  in  relation
   to providing cost-of-living adjustments

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision g of section 78-a of the retirement and  social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND TWENTY, the surviving spouse of a deceased
 retired member who retired under an option which provides that  benefits
 are  to be continued for life to the surviving spouse after the death of
 the retired member, shall be entitled to receive  benefits  pursuant  to
 this  section. Said benefits shall be [fifty] ONE HUNDRED percent of the
 monthly benefits which the pensioner would be receiving pursuant to this
 section if living, and shall commence (i) with a payment for  the  month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   § 2. Subdivision g of section 378-a of the retirement and social secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND TWENTY, the surviving spouse  of  a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08641-01-9

 S. 5901                             2
 
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   §  3. Subdivision g of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND TWENTY, the surviving spouse  of  a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   § 4. Subdivision g of section 13-696 of the administrative code of the
 city of New York, as added by chapter  125  of  the  laws  of  2000,  is
 amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND TWENTY, the surviving spouse of a deceased
 retired member of the New York city employees'  retirement  system,  the
 New  York  city  teachers'  retirement  system, the New York city police
 pension fund, the New York city fire department pension fund or the  New
 York  city  board  of  education  retirement system who retired under an
 option which provides that benefits are to be continued for life to  the
 surviving  spouse  after  the  death of the member, shall be entitled to
 receive a benefit pursuant  to  this  section.  Said  benefit  shall  be
 [fifty]  ONE  HUNDRED percent of the monthly benefit which the pensioner
 would be receiving if living, and shall commence (i) with a payment  for
 the month of September, two thousand TWENTY, or (ii) the month following
 the death of the deceased retired member, whichever is later.
   § 5. This act shall take effect immediately.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5901--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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 retirement and social security  law,  the  education
   law  and  the administrative code of the city of New York, in relation
   to providing cost-of-living adjustments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision g of section 78-a of the retirement and social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND TWENTY, the surviving spouse  of  a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   § 2. Subdivision g of section 378-a of the retirement and social secu-
 rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND TWENTY, the surviving spouse of a deceased
 retired member who retired under an option which provides that  benefits
 are  to be continued for life to the surviving spouse after the death of
 the retired member, shall be entitled to receive  benefits  pursuant  to
 this  section. Said benefits shall be [fifty] ONE HUNDRED percent of the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08641-02-9

 S. 5901--A                          2
 
 monthly benefits which the pensioner would be receiving pursuant to this
 section if living, and shall commence (i) with a payment for  the  month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   §  3. Subdivision g of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND TWENTY, the surviving spouse  of  a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   § 4. Subdivision g of section 13-696 of the administrative code of the
 city of New York, as added by chapter  125  of  the  laws  of  2000,  is
 amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND TWENTY, the surviving spouse of a deceased
 retired member of the New York city employees'  retirement  system,  the
 New  York  city  teachers'  retirement  system, the New York city police
 pension fund, the New York city fire department pension fund or the  New
 York  city  board  of  education  retirement system who retired under an
 option which provides that benefits are to be continued for life to  the
 surviving  spouse  after  the  death of the member, shall be entitled to
 receive a benefit pursuant  to  this  section.  Said  benefit  shall  be
 [fifty]  ONE  HUNDRED percent of the monthly benefit which the pensioner
 would be receiving if living, and shall commence (i) with a payment  for
 the month of September, two thousand TWENTY, or (ii) the month following
 the death of the deceased retired member, whichever is later.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  provide an increase in the defined benefit cost-of-
 living adjustment (COLA) for New York public retirement systems.  Start-
 ing with a payment in September 2020, the cost of living benefit payable
 to a surviving spouse who is eligible for COLA will  be  increased  from
 fifty  percent  to one hundred percent of the benefit that the pensioner
 would have received.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System,  pursuant to Section 25 of the Retirement and Social
 Security Law, the increased costs would be borne entirely by  the  State
 of  New  York  and would require an itemized appropriation sufficient to
 pay the cost of the provision. If this bill were enacted,  the  increase
 in the present value of benefits would be approximately $1.1 billion.
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (PFRS), the increased costs would  be  shared  by
 the  State  of  New York and the participating employers in the PFRS. If
 this bill were enacted, the increase in the present  value  of  benefits
 would be approximately $110 million. The estimated first year cost would
 be approximately $2.7 million to the State of New York and approximately
 $11 million to the participating employers in the PFRS.
   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-

 S. 5901--A                          3
 
 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  May 16, 2019, and intended for use only during
 the 2019 Legislative Session, is Fiscal Note No. 2019-119,  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
 ________________________________________________________________________
 
                                  5901--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the retirement and social security  law,  the  education
   law  and  the administrative code of the city of New York, in relation
   to providing cost-of-living adjustments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision g of section 78-a of the retirement and social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND TWENTY, the surviving spouse  of  a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   § 2. Subdivision g of section 378-a of the retirement and social secu-
 rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND TWENTY, the surviving spouse of a deceased
 retired member who retired under an option which provides that  benefits
 are  to be continued for life to the surviving spouse after the death of

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

                                                            LBD08641-03-9

 S. 5901--B                          2
 
 the retired member, shall be entitled to receive  benefits  pursuant  to
 this  section. Said benefits shall be [fifty] ONE HUNDRED percent of the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   § 3. Subdivision g of section 532-a of the education law, as added  by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND TWENTY, the surviving spouse of a deceased
 retired member who retired under an option which provides that  benefits
 are  to be continued for life to the surviving spouse after the death of
 the retired member, shall be entitled to receive  benefits  pursuant  to
 this  section. Said benefits shall be [fifty] ONE HUNDRED percent of the
 monthly benefits which the pensioner would be receiving pursuant to this
 section if living, and shall commence (i) with a payment for  the  month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   § 4. Subdivision g of section 13-696 of the administrative code of the
 city  of  New  York,  as  added  by  chapter 125 of the laws of 2000, is
 amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND TWENTY, the surviving spouse  of  a  deceased
 retired  member  of  the New York city employees' retirement system, the
 New York city teachers' retirement system,  the  New  York  city  police
 pension  fund, the New York city fire department pension fund or the New
 York city board of education retirement  system  who  retired  under  an
 option  which provides that benefits are to be continued for life to the
 surviving spouse after the death of the member,  shall  be  entitled  to
 receive  a  benefit  pursuant  to  this  section.  Said benefit shall be
 [fifty] ONE HUNDRED percent of the monthly benefit which  the  pensioner
 would  be receiving if living, and shall commence (i) with a payment for
 the month of September, two thousand TWENTY, or (ii) the month following
 the death of the deceased retired member, whichever is later.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide an increase in the  defined  benefit  cost-of-
 living adjustment (COLA) for New York public retirement systems.  Start-
 ing with a payment in September 2020, the cost of living benefit payable
 to  a  surviving  spouse who is eligible for COLA will be increased from
 fifty percent to one hundred percent of the benefit that  the  pensioner
 would have received.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System, pursuant to Section 25 of the Retirement  and  Social
 Security  Law,  the increased costs would be borne entirely by the State
 of New York and would require an itemized  appropriation  sufficient  to
 pay  the  cost of the provision. If this bill were enacted, the increase
 in the present value of benefits would be approximately $1.1 billion.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  System  (PFRS), the increased costs would be shared by
 the State of New York and the participating employers in  the  PFRS.  If
 this  bill  were  enacted, the increase in the present value of benefits
 would be approximately $110 million. The estimated first year cost would
 be approximately $2.7 million to the State of New York and approximately
 $11 million to the participating employers in the PFRS.
   Summary of relevant resources:

 S. 5901--B                          3
 
   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  May 16, 2019, and intended for use only during
 the 2019 Legislative Session, is Fiscal Note No. 2019-119,  prepared  by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would amend subdivision g of Section 532-a of the Education
 Law to increase the cost-of-living adjustment (COLA) benefit and "catch-
 up" supplemental benefit to the surviving spouse of an eligible deceased
 retired member. The COLA and "catch-up"  supplemental  survivor  benefit
 would  be  equal to 100% of the monthly benefit which the retired member
 would be receiving if living. The current COLA  and  "catch-up"  supple-
 mental  survivor benefit is equal to 50%. This benefit improvement would
 be effective in September 2020.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers'  Retirement  System  for this benefit is estimated to be $55.9
 million or .33% of payroll if this bill is enacted.
   Member data is from  the  System's  most  recent  actuarial  valuation
 files,  consisting  of  data provided by the employers to the Retirement
 System.  Data distributions and statistics can be found in the  System's
 Comprehensive  Annual  Financial  Report  (CAFR).  System  assets are as
 reported in the System's financial statements and can also be  found  in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report.
   The source of this estimate is Fiscal Note 2019-29 dated June 14, 2019
 prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
 System and is intended for use only during the 2019 Legislative Session.
 I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
 Retirement  System.  I  am a member of the American Academy of Actuaries
 and I meet the Qualification Standards of the American Academy of  Actu-
 aries to render the actuarial opinion contained herein.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5901--C
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee --  committee  discharged,  bill  amended,  ordered  reprinted  as
   amended and recommitted to said committee
 
 AN  ACT  to  amend the retirement and social security law, the education
   law and the administrative code of the city of New York,  in  relation
   to providing cost-of-living adjustments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision g of section 78-a of the retirement and  social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND TWENTY, the surviving spouse of a deceased
 retired member who retired under an option which provides that  benefits
 are  to be continued for life to the surviving spouse after the death of
 the retired member, shall be entitled to receive  benefits  pursuant  to
 this  section. Said benefits shall be [fifty] ONE HUNDRED percent of the
 monthly benefits which the pensioner would be receiving pursuant to this
 section if living, and shall commence (i) with a payment for  the  month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   § 2. Subdivision g of section 378-a of the retirement and social secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND TWENTY, the surviving spouse  of  a  deceased
 retired  member who retired under an option which provides that benefits
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08641-04-9

 S. 5901--C                          2
 
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   § 3. Subdivision g of section 532-a of the education law, as added  by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND TWENTY, the surviving spouse of a deceased
 retired member who retired under an option which provides that  benefits
 are  to be continued for life to the surviving spouse after the death of
 the retired member, shall be entitled to receive  benefits  pursuant  to
 this  section. Said benefits shall be [fifty] ONE HUNDRED percent of the
 monthly benefits which the pensioner would be receiving pursuant to this
 section if living, and shall commence (i) with a payment for  the  month
 of September, two thousand TWENTY, or (ii) the month following the death
 of the deceased retired member, whichever is later.
   § 4. Subdivision g of section 13-696 of the administrative code of the
 city  of  New  York,  as  added  by  chapter 125 of the laws of 2000, is
 amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND TWENTY, the surviving spouse  of  a  deceased
 retired  member  of  the New York city employees' retirement system, the
 New York city teachers' retirement system,  the  New  York  city  police
 pension  fund, the New York city fire department pension fund or the New
 York city board of education retirement  system  who  retired  under  an
 option  which provides that benefits are to be continued for life to the
 surviving spouse after the death of the member,  shall  be  entitled  to
 receive  a  benefit  pursuant  to  this  section.  Said benefit shall be
 [fifty] ONE HUNDRED percent of the monthly benefit which  the  pensioner
 would  be receiving if living, and shall commence (i) with a payment for
 the month of September, two thousand TWENTY, or (ii) the month following
 the death of the deceased retired member, whichever is later.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide an increase in the  defined  benefit  cost-of-
 living adjustment (COLA) for New York public retirement systems.  Start-
 ing with a payment in September 2020, the cost of living benefit payable
 to  a  surviving  spouse who is eligible for COLA will be increased from
 fifty percent to one hundred percent of the benefit that  the  pensioner
 would have received.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System, pursuant to Section 25 of the Retirement  and  Social
 Security  Law,  the increased costs would be borne entirely by the State
 of New York and would require an itemized  appropriation  sufficient  to
 pay  the  cost of the provision. If this bill were enacted, the increase
 in the present value of benefits would be approximately $1.1 billion.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  System  (PFRS), the increased costs would be shared by
 the State of New York and the participating employers in  the  PFRS.  If
 this  bill  were  enacted, the increase in the present value of benefits
 would be approximately $110 million. The estimated first year cost would
 be approximately $2.7 million to the State of New York and approximately
 $11 million to the participating employers in the PFRS.

 S. 5901--C                          3
 
   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  May 16, 2019, and intended for use only during
 the 2019 Legislative Session, is Fiscal Note No. 2019-119,  prepared  by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would amend subdivision g of Section 532-a of the Education
 Law to increase the cost-of-living adjustment (COLA) benefit and "catch-
 up" supplemental benefit to the surviving spouse of an eligible deceased
 retired member. The COLA and "catch-up"  supplemental  survivor  benefit
 would  be  equal to 100% of the monthly benefit which the retired member
 would be receiving if living. The current COLA  and  "catch-up"  supple-
 mental  survivor benefit is equal to 50%. This benefit improvement would
 be effective in September 2020.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers'  Retirement  System  for this benefit is estimated to be $55.9
 million or .33% of payroll if this bill is enacted.
   Member data is from  the  System's  most  recent  actuarial  valuation
 files,  consisting  of  data provided by the employers to the Retirement
 System.  Data distributions and statistics can be found in the  System's
 Comprehensive  Annual  Financial  Report  (CAFR).  System  assets are as
 reported in the System's financial statements and can also be  found  in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report.
   The source of this estimate is Fiscal Note 2019-29 dated June 14, 2019
 prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
 System and is intended for use only during the 2019 Legislative Session.
 I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
 Retirement  System.  I  am a member of the American Academy of Actuaries
 and I meet the Qualification Standards of the American Academy of  Actu-
 aries to render the actuarial opinion contained herein.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF BILL: This proposed legislation would amend Section 13-696
 of the Administrative Code of the City of New York (ACCNY)  to  increase
 the Cost-of-Living Adjustment (COLA), effective September 1, 2020, to an
 eligible  surviving  spouse  from  50% to 100% of the COLA the pensioner
 would be receiving if still alive  for  the  New  York  City  Employees'
 Retirement  System  (NYCERS),  the  New  York  City Teachers' Retirement
 System (NYCTRS), the New York City Board of Education Retirement  System
 (BERS), the New York City Police Pension Fund (POLICE), and the New York

 S. 5901--C                          4
 
 City  Fire  Pension Fund (FIRE), collectively known as the New York City
 Retirement Systems and Pension Funds (NYCRS).
   Effective Date: Upon enactment.
   BACKGROUND:  The  COLA currently provides for an annual increase equal
 to a percentage of the annual retirement  allowance  otherwise  payable,
 computed  without  optional modification on the first $18,000 of retire-
 ment allowance. That percentage is equal to 50% of the increase  in  the
 consumer  price  index  (CPI) in the one-year period ending on the March
 thirty-first prior to the COLA effective on the ensuing September first.
 The percentage is rounded to the next higher one-tenth  of  one  percent
 and shall not be less than 1.0% nor more than 3.0%.
   The surviving spouse of a deceased retired member who retired under an
 option  which provides that benefits are to be continued for life to the
 surviving spouse after the death of  the  retired  member  is  currently
 entitled  to receive a COLA equal to 50% of the COLA the pensioner would
 be receiving if living.  This  proposed  legislation  would  change  the
 percentage  that  the  surviving  spouse  COLA is based upon from 50% to
 100%.
   FINANCIAL IMPACT - SUMMARY: The estimated financial  impact  to  NYCRS
 for increasing the surviving spouse COLA from 50% to 100% of the retired
 member's COLA is shown in the table below.
                    Additional                    Estimated First Year
   NYCRS  Present Value for Future Benefits  Annual Employer Contributions*
                   ($ Millions)                      ($ Millions)
 NYCERS                $348.1                           $326.5
 NYCTRS                 182.6                            174.2
 BERS                    17.9                             17.4
 POLICE                  25.8                             24.2
 FIRE                    12.1                             11.7
   Total               $586.5                            $554.0
 *  Employer  contributions after the first year are estimated to be $3 -
 $4 million per year.
   FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In  accordance  with
 ACCNY  Section  13-638.2(k-2),  new  Unfunded  Accrued  Liability  (UAL)
 attributable to benefit changes are to be amortized as determined by the
 Actuary but generally over  the  remaining  working  lifetime  of  those
 impacted by the benefit changes.
   For  the  purposes  of  this  Fiscal  Note  it  has  been assumed that
 increases in UAL attributable to current retirees  would  be  recognized
 immediately  and  that  increases  in UAL attributable to active members
 would be amortized over periods ranging from 12 to 15 years depending on
 the NYCRS (11 to 14 payments, respectively, under One-Year Lag Methodol-
 ogy (OYLM)).
   OTHER COSTS: Not measured in this Fiscal Note are the following:
   * The  initial,  additional  administrative  costs  to  implement  the
 proposed legislation.
   *  The  impact  of  this proposed legislation on Other Post employment
 Benefit (OPEB) costs.
   CONTRIBUTION TIMING: For the purposes  of  this  Fiscal  Note,  it  is
 assumed  that  the  changes  in the UAL would be reflected for the first
 time in the June 30, 2018 actuarial valuations of the NYCRS. In  accord-
 ance  with  the  OYLM  used  to determine employer contributions, the in
 crease in employer contributions would first be reflected in Fiscal Year
 2020.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data used in the Preliminary June 30, 2018 (Lag) actuarial valuations of

 S. 5901--C                          5
 
 NYCRS  used  to  determine  the  Preliminary  Fiscal  Year 2020 employer
 contributions.
   ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of
 Benefits,  and  the  annual employer contributions presented herein have
 been calculated based on the same actuarial assumptions and  methods  in
 effect  for  the June 30, 2018 (Lag) actuarial valuations used to deter-
 mine the Preliminary Fiscal Year 2020 employer contributions of NYCRS.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on the actuarial assumptions and methods used and are subject to
 change based on the realization of  potential  investment,  demographic,
 contribution,  and other risks. If actual experience deviates from actu-
 arial assumptions, the actual costs could differ  from  those  presented
 herein.  Costs  are  also  dependent  on the actuarial methods used, and
 therefore different actuarial methods could produce  different  results.
 Quantifying these risks is beyond the scope of this Fiscal Note.
   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, a
 Member of the American Academy of Actuaries, and a Fellow of the Confer-
 ence of Consulting Actuaries. I meet the Qualification Standards of  the
 American  Academy of Actuaries to render the actuarial opinion 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 2019-40  dated  June  28,
 2019  was prepared by the Chief Actuary for the New York City Employees'
 Retirement System, the New York City Teachers'  Retirement  System,  the
 New  York  City  Board of Education Retirement System, the New York City
 Police Pension Fund, and the New York City  Fire  Pension  Fund.    This
 estimate is intended for use only during the 2019 Legislative Session.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5901--E
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee --  committee  discharged,  bill  amended,  ordered  reprinted  as
   amended  and  recommitted  to  said  committee  --  recommitted to the
   Committee on Civil Service and Pensions in accordance with Senate Rule
   6, sec. 8 -- committee discharged, bill amended, ordered reprinted  as
   amended  and  recommitted  to  said committee -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee
 
 AN  ACT  to  amend the retirement and social security law, the education
   law and the administrative code of the city of New York,  in  relation
   to providing cost-of-living adjustments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision g of section 78-a of the retirement and  social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND  TWENTY-ONE,  the  surviving  spouse  of a
 deceased retired member who retired under an option which provides  that
 benefits  are to be continued for life to the surviving spouse after the
 death of the retired member,  shall  be  entitled  to  receive  benefits
 pursuant  to  this  section.  Said benefits shall be [fifty] ONE HUNDRED
 percent of the monthly benefits which the pensioner would  be  receiving
 pursuant  to  this  section  if  living,  and  shall commence (i) with a
 payment for the month of September, two thousand TWENTY-ONE, or (ii) the
 month following the death of the deceased retired member,  whichever  is
 later.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08641-08-0

 S. 5901--E                          2
 
   § 2. Subdivision g of section 378-a of the retirement and social secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND  TWENTY-ONE,  the  surviving  spouse  of a
 deceased retired member who retired under an option which provides  that
 benefits  are to be continued for life to the surviving spouse after the
 death of the retired member,  shall  be  entitled  to  receive  benefits
 pursuant  to  this  section.  Said benefits shall be [fifty] ONE HUNDRED
 percent of the monthly benefits which the pensioner would  be  receiving
 pursuant  to  this  section  if  living,  and  shall commence (i) with a
 payment for the month of September, two thousand TWENTY-ONE, or (ii) the
 month following the death of the deceased retired member,  whichever  is
 later.
   §  3. Subdivision g of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER,  TWO  THOUSAND  TWENTY-ONE,  the  surviving  spouse  of  a
 deceased  retired member who retired under an option which provides that
 benefits are to be continued for life to the surviving spouse after  the
 death  of  the  retired  member,  shall  be entitled to receive benefits
 pursuant to this section. Said benefits shall  be  [fifty]  ONE  HUNDRED
 percent  of  the monthly benefits which the pensioner would be receiving
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment for the month of September, two thousand TWENTY-ONE, or (ii) the
 month  following  the death of the deceased retired member, whichever is
 later.
   § 4. Subdivision g of section 13-696 of the administrative code of the
 city of New York, as added by chapter  125  of  the  laws  of  2000,  is
 amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND  TWENTY-ONE,  the  surviving  spouse  of a
 deceased retired member of  the  New  York  city  employees'  retirement
 system, the New York city teachers' retirement system, the New York city
 police  pension  fund, the New York city fire department pension fund or
 the New York city board of education retirement system who retired under
 an option which provides that benefits are to be continued for  life  to
 the surviving spouse after the death of the member, shall be entitled to
 receive  a  benefit  pursuant  to  this  section.  Said benefit shall be
 [fifty] ONE HUNDRED percent of the monthly benefit which  the  pensioner
 would  be receiving if living, and shall commence (i) with a payment for
 the month of September, two  thousand  TWENTY-ONE,  or  (ii)  the  month
 following the death of the deceased retired member, whichever is later.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  provide an increase in the defined benefit cost-of-
 living adjustment (COLA) for New York public retirement systems.  Start-
 ing with a payment in September 2021, the cost-of-living benefit payable
 to a surviving spouse who is eligible for COLA will  be  increased  from
 fifty  percent  to one hundred percent of the benefit that the pensioner
 would have received.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System,  pursuant to Section 25 of the Retirement and Social
 Security Law, the increased costs would be borne entirely by  the  State
 of  New  York  and would require an itemized appropriation sufficient to

 S. 5901--E                          3
 
 pay the cost of the provision. If this bill were enacted,  the  increase
 in the present value of benefits would be approximately $1.1 billion.
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (PFRS), the increased costs would  be  shared  by
 the  State  of  New York and the participating employers in the PFRS. If
 this bill were enacted, the increase in the present  value  of  benefits
 would be approximately $115 million. The estimated first year cost would
 be approximately $2.5 million to the State of New York and approximately
 $10 million to the participating employers in the PFRS.
   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, 2019  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2019
 Report of the  Actuary  and  the  2019  Comprehensive  Annual  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2015,
 2016, 2017, 2018 and 2019 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, 2019
 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  February  11,  2020, and intended for use only
 during the  2020  Legislative  Session,  is  Fiscal  Note  No.  2020-49,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.
   FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation, as it relates to the  City
 of  New  York,  would amend Section 13-696 of the Administrative Code of
 the City of New York (ACCNY) to increase the  Cost-of-Living  Adjustment
 (COLA),  effective  September  1,  2021, to an eligible surviving spouse
 from 50% to 100% of the COLA the pensioner would be receiving  if  still
 alive  for  the New York City Employees' Retirement System (NYCERS), the
 New York City Teachers' Retirement System (NYCTRS), the  New  York  City
 Board  of  Education  Retirement System (BERS), the New York City Police
 Pension Fund (POLICE), and the New York City Fire Pension  Fund  (FIRE),
 collectively  known  as the New York City Retirement Systems and Pension
 Funds (NYCRS).
   Effective Date: Upon enactment.
   BACKGROUND: The COLA currently provides for an annual  increase  equal
 to  a  percentage  of the annual retirement allowance otherwise payable,
 computed without optional modification on the first $18,000  of  retire-
 ment  allowance.  That percentage is equal to 50% of the increase in the
 consumer price index (CPI) in the one-year period ending on the March 31
 prior to the COLA effective on the ensuing September 1.  The  percentage
 is  rounded to the next higher one-tenth of one percent and shall not be
 less than 1% nor more than 3%.
   The surviving spouse of a deceased retired member who retired under an
 option which provides that benefits are to be continued for life to  the
 surviving  spouse  after  the  death  of the retired member is currently
 entitled to receive a COLA equal to 50% of the COLA the pensioner  would

 S. 5901--E                          4
 
 be  receiving if living. This proposed legislation would change from 50%
 to 100% the percentage of COLA a surviving  spouse  receives  after  the
 death of the retired member.
   FINANCIAL  IMPACT  -  SUMMARY: The estimated financial impact to NYCRS
 for increasing the surviving spouse COLA from 50% to 100% of the retired
 member's COLA as described above is an  increase  in  Present  Value  of
 Future  Benefits  (PVFB)  of $574.1 million and an increase in the first
 year annual employer contributions of $541.0 million. A breakdown of the
 financial impact by NYCRS is shown in the table below.
 NYCRS               Additional                  Estimated First Year
                     Present Value of Future     Annual Employer
                     Benefits                    Contributions*
                     ($ Millions)                ($ Millions)
 NYCERS              $337.4                      $316.2
 NYCTRS              177.9                       169.8
 BERS                19.9                        18.7
 POLICE              26.7                        24.9
 FIRE                12.2                        11.4
 
 Total               $574.1                      $541.0
   * Employer contributions after the first year are estimated to be $4 -
 $5 million per year.
   In accordance with ACCNY Section 13-638.2(k-2), new  Unfunded  Accrued
 Liability  (UAL)  attributable to benefit changes are to be amortized as
 determined by the Actuary, but are generally amortized over the  remain-
 ing working lifetime of those impacted by the benefit changes.
   For  the  purposes  of  this  Fiscal  Note  it  has  been assumed that
 increases in UAL attributable to current retirees  would  be  recognized
 immediately  and  that  increases  in UAL attributable to active members
 would be amortized over periods ranging from 12 to 15 years depending on
 the NYCRS (11 to 14 payments, respectively, under One-Year Lag Methodol-
 ogy (OYLM)).
   CONTRIBUTION TIMING: For the purposes  of  this  Fiscal  Note,  it  is
 assumed  that  the changes in the PVFB and annual employer contributions
 would be reflected for the first time in the  June  30,  2019  actuarial
 valuations  of  the NYCRS. In accordance with the OYLM used to determine
 employer contributions, the increase  in  employer  contributions  would
 first be reflected in Fiscal Year 2021.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the Preliminary June 30, 2019 (Lag) actuarial valuations of
 NYCRS to determine the Preliminary Fiscal Year  2021  employer  contrib-
 utions.
   ACTUARIAL  ASSUMPTIONS AND METHODS: The changes in the PVFB and annual
 employer contributions presented herein have been  calculated  based  on
 the  same  actuarial  assumptions and methods in effect for the June 30,
 2019 (Lag) actuarial valuations used to determine the Preliminary Fiscal
 Year 2021 employer contributions of NYCRS. Also, assumptions for  active
 members  electing  a form of pension at retirement that would continue a
 payment to a surviving spouse (ranging from 20% to 35%) were made  based
 on  the  distribution of current elections and the Actuary's estimate of
 future elections.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on the realization of the actuarial assumptions used, as well as
 certain demographic characteristics of NYCRS and other exogenous factors
 such as investment, contribution, and other risks. If actual  experience
 deviates  from actuarial assumptions, the actual costs could differ from

 S. 5901--E                          5
 
 those presented herein. Costs are also dependent on the actuarial  meth-
 ods  used,  and  therefore  different  actuarial  methods  could produce
 different results. Quantifying these risks is beyond the scope  of  this
 Fiscal Note.
   Not measured in this Fiscal Note are the following:
     *  The  initial,  additional  administrative  costs to implement the
     proposed legislation.
     * The impact of this proposed legislation  on  Other  Postemployment
     Benefit costs.
   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, a
 Member of the American Academy of Actuaries, and a Fellow of the Confer-
 ence of Consulting Actuaries. I meet the Qualification Standards of  the
 American  Academy of Actuaries to render the actuarial opinion 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 2020-55  dated  June  25,
 2020  was prepared by the Chief Actuary for the New York City Employees'
 Retirement System, the New York City Teachers'  Retirement  System,  the
 New  York  City  Board of Education Retirement System, the New York City
 Police Pension Fund, and the New York City Fire Pension Fund. This esti-
 mate is intended for use only during the 2020 Legislative Session.