S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10312
 
                           I N  A S S E M B L Y
 
                               May 13, 2022
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Abbate) --
   read once and referred to the Committee on Governmental Employees
 
 AN ACT in relation to granting continued survivor  benefits  to  Genesis
   Villella, Deliliah Vega and Peter Vega
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Notwithstanding any other law or regulation to the  contra-
 ry,  the  death benefit pursuant to section 13-244 of the administrative
 code of the city of New York and the special  accidental  death  benefit
 pursuant  to  section  208-f of the general municipal law for the depen-
 dents of police officer Miosotis Familia who was killed in the  line  of
 duty  shall  not  be diminished or exhausted for such deceased officer's
 dependents Genesis Villella, Deliliah Vega and Peter Vega    until  such
 time  as  the youngest dependent of such deceased police officer reaches
 the age where such dependent is no longer eligible for such death  bene-
 fits.  Provided  however,  the  original  benefit  amount  of the oldest
 dependent, Genesis Villella, shall be restored and paid to such  depend-
 ent  until  such  time as the youngest dependent of such deceased police
 officer reaches the age where such dependent is no longer  eligible  for
 such  death  benefits.    Provided  further,  the current benefit amount
 provided to dependents Deliliah Vega and Peter Vega shall be  maintained
 at  the  current  level  notwithstanding  the restoration of benefits to
 Genesis Villella.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation would provide a benefit  to
 Genesis Villella, the eldest child beneficiary of deceased police Detec-
 tive  Miosotis Familia, equal to one-third of the total Accidental Death
 Benefit (ADB) and Special Accidental Death Benefit (SADB)  benefit  (the
 amount she received prior to aging out of the benefit), until the young-
 est  child  beneficiary  of  Detective  Familia, either Deliliah Vega or
 Peter Vega, ages out at age 18  or  age  23,  if  a  full-time  student,
 regardless of Genesis' age.
   Effective Date: Upon enactment.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11321-03-2
 A. 10312                            2
 
   BACKGROUND:  Detective  Familia  died  in the line of duty as a Tier 2
 Police member on July 5, 2017. The total death benefit payable,  includ-
 ing  SADB,  was  $172,200  per year. There were three eligible statutory
 child beneficiaries, Genesis, Deliliah, and Peter, who were ages 20, 12,
 and  12,  respectively,  at the time of death. Each beneficiary received
 one-third of the total death benefit, or approximately $57,400 each  per
 year, from the time of death until the time Genesis turned age 23. (Note
 that  all  benefit amounts shown in this Fiscal Note are as of Detective
 Familia's date of death and do  not  include  subsequent  Cost-of-Living
 adjustments.)
   IMPACT  ON  BENEFITS: When Genesis attained age 23, the portion of the
 death benefit payable to her ceased and was  proportionally  distributed
 among the remaining two eligible beneficiaries, Deliliah and Peter, such
 that  the  total  death  benefit  payable remained at $172,200 per year.
 Genesis, as of age 23, no longer receives a death benefit, while Delili-
 ah and Peter currently each receive approximately $86,100 per year.
   Under the proposed legislation, if enacted, Genesis would receive  her
 original   payment  of  $57,400  retroactively  back  to  the  month  it
 originally ceased and prospectively until the youngest beneficiary  ages
 out,  increasing  the  total death benefit payable during this period to
 approximately $229,600.
   FINANCIAL IMPACT - PRESENT VALUES: The estimated financial  impact  of
 this  proposal  has  been calculated based on the difference between the
 present value of (1)  the  benefits  Detective  Familia's  beneficiaries
 would  receive if this proposed legislation were enacted (retroactive to
 her July 5, 2017 date of death) and (2) the benefits that are  currently
 and have been paid to Detective Familia's beneficiaries.
   Based  on  the actuarial assumptions and methods described herein, the
 enactment of this proposed legislation would increase the Present  Value
 of  Future  Benefits  (PVFB) and the Unfunded Accrued Liability (UAL) of
 POLICE by approximately $462,700 as of June 30, 2022.
   FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In  accordance  with
 the  Administrative  Code  of  the  City  of  New  York  (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, since Detective Familia passed
 away, and therefore  has  no  remaining  working  lifetime,  the  entire
 increase  in  UAL  (or Present Value of Future Benefits) would be recog-
 nized immediately.
   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 Preliminary June  30,  2022
 actuarial valuation of POLICE. In accordance with the One-Year Lag Meth-
 odology  used  to  determine  employer  contributions,  the  increase in
 employer contributions would be reflected in Fiscal Year 2024.
   CENSUS DATA: As of June 30, 2022, Genesis, Deliliah, and Peter will be
 ages 25, 17, and 17, respectively. Genesis  is  not  receiving  a  death
 benefit because she is a dependent child over age 23. Deliliah and Peter
 each  receive a death benefit of $86,100 per year. The total death bene-
 fit payable to all three beneficiaries is $172,200 per year.
   ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the  PVFB  presented
 herein have been calculated based on the actuarial assumptions and meth-
 ods  in  effect  for the Preliminary June 30, 2021 (Lag) actuarial valu-
 ation used to  determine  the  Preliminary  Fiscal  Year  2023  employer
 A. 10312                            3

 contributions  of POLICE. For purposes of this Fiscal Note it is assumed
 that the youngest beneficiary will be a full-time student until age 23.
   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  POLICE  and  other  exogenous
 factors such as investment, contribution, and  other  risks.  If  actual
 experience  deviates  from actuarial 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.
   Not measured in this Fiscal Note are the following:
     *  The  initial, additional administrative costs of POLICE and other
     New York City agencies to implement the proposed legislation.
     * The impact of this proposed legislation  on  Other  Postemployment
     Benefit (OPEB) costs.
   STATEMENT  OF  ACTUARIAL  OPINION: I, Michael J. Samet, am the Interim
 Chief Actuary for, and independent of,  the  New  York  City  Retirement
 Systems and Pension Funds. I am a Fellow of the Society of 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.  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 2022-41 dated May 4, 2022
 was prepared by the Interim Chief Actuary for the New York  City  Police
 Pension  Fund.  This  estimate  is intended for use only during the 2022
 Legislative Session.