S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7730--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 20, 2021
                                ___________
 
 Introduced  by  M. of A. ABBATE -- (at request of the State Comptroller)
   -- read once and referred to the Committee on  Governmental  Employees
   --  recommitted  to the Committee on Governmental Employees in accord-
   ance with Assembly Rule  3,  sec.  2  --  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
   the ordinary death benefit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The closing paragraph of paragraph 2 of  subdivision  a  of
 section  448  of  the  retirement and social security law, as amended by
 chapter 376 of the laws of 2021, is amended to read as follows:
   In the case of a member of the New  York  state  teachers'  retirement
 system,  commencing upon attainment of age [sixty-one] SIXTY-TWO IF SUCH
 MEMBER'S DATE OF MEMBERSHIP IS PRIOR TO APRIL FIRST, TWO THOUSAND TWELVE
 OR ATTAINMENT OF AGE SIXTY-THREE IF SUCH MEMBER'S DATE OF MEMBERSHIP  IS
 ON  OR  AFTER  APRIL  FIRST,  TWO THOUSAND TWELVE, the benefit otherwise
 provided pursuant to this paragraph shall be reduced while the member is
 in service to ninety-six per centum of the benefit otherwise payable and
 each year thereafter the benefit payable shall be reduced by  an  amount
 equal  to  four  per  centum  per year of the original benefit otherwise
 payable, but not below sixty per centum of the original  benefit  other-
 wise  payable.  In  the case of a member of the New York city employees'
 retirement system, the New  York  city  board  of  education  retirement
 system or the New York city teachers' retirement system, commencing upon
 attainment  of age sixty-one, the benefit otherwise provided pursuant to
 this paragraph shall be reduced while the member is in service to  nine-
 ty-five per centum of the benefit otherwise payable and each year there-
 after  the  benefit  payable shall be reduced by an amount equal to five
 per centum per year of the original benefit otherwise payable,  but  not
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10525-06-2
              

 A. 7730--A                          2
 
 below fifty per centum of the original benefit otherwise payable. In the
 case of any member of the New York state and local employees' retirement
 system  who  is permitted to retire without regard to age or a member of
 the New York state and local police and fire retirement system, commenc-
 ing  upon  attainment of age [sixty-one] SIXTY-TWO IF SUCH MEMBER'S DATE
 OF MEMBERSHIP IS PRIOR TO APRIL FIRST, TWO THOUSAND TWELVE OR ATTAINMENT
 OF AGE SIXTY-THREE IF SUCH MEMBER'S DATE OF MEMBERSHIP IS  ON  OR  AFTER
 APRIL  FIRST, TWO THOUSAND TWELVE, the benefit otherwise provided pursu-
 ant to this paragraph shall be reduced while the member is in service to
 ninety-seven per centum of the benefit otherwise payable, and each  year
 thereafter  the  benefit  payable shall be reduced by an amount equal to
 three per centum per year of the original benefit otherwise payable, but
 not below seventy per centum of the original benefit otherwise  payable.
 In  the case of any other member of the New York state and local employ-
 ees' retirement system, commencing upon attainment  of  age  [sixty-one]
 SIXTY-TWO  IF  SUCH MEMBER'S DATE OF MEMBERSHIP IS PRIOR TO APRIL FIRST,
 TWO THOUSAND TWELVE OR ATTAINMENT OF AGE SIXTY-THREE  IF  SUCH  MEMBER'S
 DATE  OF MEMBERSHIP IS ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, the
 benefit otherwise provided pursuant to this paragraph shall  be  reduced
 while  the  member is in service to ninety-six per centum of the benefit
 otherwise payable, and each year thereafter the benefit payable shall be
 reduced by an amount equal to four per centum per year of  the  original
 benefit  otherwise  payable,  but  not  below  sixty  per  centum of the
 original benefit otherwise payable. Upon retirement from any  retirement
 system,  the benefit in force shall be reduced by fifty per centum; upon
 completion of the first year of retirement, the benefit in force at  the
 time  of  retirement  shall  be reduced by an additional twenty-five per
 centum, and upon commencement of the third year of retirement, the bene-
 fit shall be ten per centum of the benefit in force  at  age  sixty,  if
 any,  or  at  the  time  of  retirement if retirement preceded such age;
 provided, however, the benefit in retirement shall not be reduced  below
 ten  per  centum of the benefit in force at age sixty, if any, or at the
 time of retirement if retirement preceded such age. Notwithstanding  any
 other  provision  of  this  paragraph to the contrary, the benefit for a
 retiree from the New York state and local employees'  retirement  system
 and  the New York state teachers' retirement system shall not be reduced
 below ten per centum of the benefit in force at the time of retirement.
   § 2. The closing paragraph of paragraph 2 of subdivision a of  section
 508 of the retirement and social security law, as amended by chapter 376
 of the laws of 2021, is amended to read as follows:
   Notwithstanding  any other provision of this paragraph, in the case of
 a member of the New York state teachers' retirement  system,  commencing
 upon  attainment  of  age [sixty-one] SIXTY-TWO IF SUCH MEMBER'S DATE OF
 MEMBERSHIP IS PRIOR TO APRIL FIRST, TWO THOUSAND TWELVE OR ATTAINMENT OF
 AGE SIXTY-THREE IF SUCH MEMBER'S DATE OF MEMBERSHIP IS ON OR AFTER APRIL
 FIRST, TWO THOUSAND TWELVE, the benefit otherwise provided  pursuant  to
 this  paragraph shall be reduced while the member is in service to nine-
 ty-six per centum of the benefit otherwise payable, and each year there-
 after the benefit payable shall be reduced by an amount  equal  to  four
 per  centum  per year of the original benefit otherwise payable, but not
 below sixty per centum of the original benefit otherwise payable. In the
 case of a member of the New York city employees' retirement system,  the
 New  York city board of education retirement system or the New York city
 teachers' retirement system, commencing upon attainment  of  age  sixty-
 one,  the benefit otherwise provided pursuant to this paragraph shall be
 reduced while the member is in service to ninety-five per centum of  the
 A. 7730--A                          3
 
 benefit  otherwise  payable and each year thereafter the benefit payable
 shall be reduced by an amount equal to five per centum per year  of  the
 original  benefit  otherwise  payable, but not below fifty per centum of
 the original benefit otherwise payable. In the case of any member of the
 New  York  state and local employees' retirement system who is permitted
 to retire without regard to  age,  commencing  upon  attainment  of  age
 [sixty-one]  SIXTY-TWO  IF  SUCH MEMBER'S DATE OF MEMBERSHIP IS PRIOR TO
 APRIL FIRST, TWO THOUSAND TWELVE OR ATTAINMENT  OF  AGE  SIXTY-THREE  IF
 SUCH  MEMBER'S  DATE OF MEMBERSHIP IS ON OR AFTER APRIL FIRST, TWO THOU-
 SAND TWELVE, the benefit otherwise provided pursuant to  this  paragraph
 shall  be  reduced  while  the  member is in service to ninety-seven per
 centum of the benefit otherwise payable, and each  year  thereafter  the
 benefit  payable shall be reduced by an amount equal to three per centum
 per year of the original benefit otherwise payable, but not below seven-
 ty per centum of the original benefit otherwise payable. In the case  of
 any  other  member of the New York state and local employees' retirement
 system, commencing upon attainment of age [sixty-one] SIXTY-TWO IF  SUCH
 MEMBER'S DATE OF MEMBERSHIP IS PRIOR TO APRIL FIRST, TWO THOUSAND TWELVE
 OR  ATTAINMENT OF AGE SIXTY-THREE IF SUCH MEMBER'S DATE OF MEMBERSHIP IS
 ON OR AFTER APRIL FIRST, TWO  THOUSAND  TWELVE,  the  benefit  otherwise
 provided pursuant to this paragraph shall be reduced while the member is
 in  service  to  ninety-six per centum of the benefit otherwise payable,
 and each year thereafter the benefit payable  shall  be  reduced  by  an
 amount  equal to four per centum per year of the original benefit other-
 wise payable, but not below sixty per centum  of  the  original  benefit
 otherwise payable. Upon retirement from any retirement system, the bene-
 fit  in  force  shall be reduced by fifty per centum; upon completion of
 the first year of retirement, the  benefit  in  force  at  the  time  of
 retirement shall be reduced by an additional twenty-five per centum, and
 upon  commencement of the third year of retirement, the benefit shall be
 ten per centum of the benefit in force at age sixty, if any, or  at  the
 time  of  retirement if retirement preceded such age; provided, however,
 the benefit in retirement shall not be reduced below ten per  centum  of
 the  benefit in force at age sixty, if any, or at the time of retirement
 if retirement preceded such age. Notwithstanding any other provision  of
 this  paragraph  to the contrary, the benefit for a retiree from the New
 York state and local employees' retirement system and the New York state
 teachers' retirement system shall not be reduced below ten per centum of
 the benefit in force at the time of retirement.
   § 3. The closing subparagraph of  paragraph  2  of  subdivision  a  of
 section  606  of  the  retirement and social security law, as amended by
 chapter 376 of the laws of 2021, is amended to read as follows:
   In the case of a member of the New  York  state  teachers'  retirement
 system,  commencing upon attainment of age [sixty-one] SIXTY-TWO IF SUCH
 MEMBER'S DATE OF MEMBERSHIP IS PRIOR TO APRIL FIRST, TWO THOUSAND TWELVE
 OR ATTAINMENT OF AGE SIXTY-THREE IF SUCH MEMBER'S DATE OF MEMBERSHIP  IS
 ON  OR  AFTER  APRIL  FIRST,  TWO THOUSAND TWELVE, the benefit otherwise
 provided pursuant to this paragraph shall be reduced while the member is
 in service to ninety-six per centum of the  benefit  otherwise  payable,
 and  each  year  thereafter  the  benefit payable shall be reduced by an
 amount equal to four per centum per year of the original benefit  other-
 wise  payable,  but  not  below sixty per centum of the original benefit
 otherwise payable. In the case of a member of the New York city  employ-
 ees'  retirement system, the New York city board of education retirement
 system or the New York city teachers' retirement system, commencing upon
 attainment of age sixty-one, the benefit otherwise provided pursuant  to
 A. 7730--A                          4
 
 this  paragraph shall be reduced while the member is in service to nine-
 ty-five per centum of the benefit otherwise payable and each year there-
 after the benefit payable shall be reduced by an amount  equal  to  five
 per  centum  per year of the original benefit otherwise payable, but not
 below fifty per centum of the original benefit otherwise payable. In the
 case of any member of the New York state and local employees' retirement
 system who is permitted to retire without regard to age, commencing upon
 attainment of age [sixty-one] SIXTY-TWO IF SUCH MEMBER'S DATE OF MEMBER-
 SHIP IS PRIOR TO APRIL FIRST, TWO THOUSAND TWELVE OR ATTAINMENT  OF  AGE
 SIXTY-THREE  IF  SUCH  MEMBER'S  DATE OF MEMBERSHIP IS ON OR AFTER APRIL
 FIRST, TWO THOUSAND TWELVE, the benefit otherwise provided  pursuant  to
 this  paragraph shall be reduced while the member is in service to nine-
 ty-seven per centum of the benefit  otherwise  payable,  and  each  year
 thereafter  the  benefit  payable shall be reduced by an amount equal to
 three per centum per year of the original benefit otherwise payable, but
 not below seventy per centum of the original benefit otherwise  payable.
 In  the case of any other member of the New York state and local employ-
 ees' retirement system, commencing upon attainment  of  age  [sixty-one]
 SIXTY-TWO  IF  SUCH MEMBER'S DATE OF MEMBERSHIP IS PRIOR TO APRIL FIRST,
 TWO THOUSAND TWELVE OR ATTAINMENT OF AGE SIXTY-THREE  IF  SUCH  MEMBER'S
 DATE  OF MEMBERSHIP IS ON OR AFTER APRIL FIRST, TWO THOUSAND TWELVE, the
 benefit otherwise provided pursuant to this paragraph shall  be  reduced
 while  the  member is in service to ninety-six per centum of the benefit
 otherwise payable, and each year thereafter the benefit payable shall be
 reduced by an amount equal to four per centum per year of  the  original
 benefit  otherwise  payable,  but  not  below  sixty  per  centum of the
 original benefit otherwise payable. Upon retirement, from any retirement
 system, the benefit in force shall be reduced by fifty per centum;  upon
 completion  of the first year of retirement, the benefit in force at the
 time of retirement shall be reduced by  an  additional  twenty-five  per
 centum, and upon commencement of the third year of retirement, the bene-
 fit  shall  be  ten  per centum of the benefit in force at age sixty, if
 any, or at the time of  retirement  if  retirement  preceded  such  age;
 provided,  however, the benefit in retirement shall not be reduced below
 ten per centum of the benefit in force at age sixty, if any, or  at  the
 time  of retirement if retirement preceded such age. Notwithstanding any
 other provision of this paragraph to the contrary,  the  benefit  for  a
 retiree  from  the New York state and local employees' retirement system
 and the New York state teachers' retirement system shall not be  reduced
 below ten per centum of the benefit in force at the time of retirement.
   §  4.  Notwithstanding any other provision of law to the contrary, the
 provisions of this act shall not be subject to section 25 of the retire-
 ment and social security law.
   § 5. This act shall take effect on the first of April next  succeeding
 the date on which it shall have become a law.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would delay reductions in the ordinary death benefits paya-
 ble to beneficiaries of the New York State and Local Employees'  Retire-
 ment  System  (NYSLERS)  and  New  York  State and Local Police and Fire
 Retirement System (NYSLPFRS), ensuring that no reduction applies  before
 a member becomes eligible for an unreduced retirement benefit.  Current-
 ly,  annual  reductions of 4% (NYSLERS age-based plans) or 3% (all other
 plans) are applied to ordinary death benefits immediately when a  member
 attains  age  61.  This bill would delay the reductions until age 62 for
 members in Tiers 1-5, and age 63 for members in Tier 6.
 A. 7730--A                          5
 
   Insofar as this bill affects  the  NYSLERS,  if  this  legislation  is
 enacted  during the 2022 legislative session, there would be an increase
 in the present value of future costs of approximately $33 million  which
 would  be  shared  by the State of New York and all of the Local partic-
 ipating employers in the NYSLERS. The estimated first year cost would be
 approximately  $1.5  million  to the State of New York and approximately
 $2.1 million to the Local participating employers in the NYSLERS.
   Insofar as this bill affects NYSLPFRS, if this legislation is  enacted
 during  the  2022 legislative session, we anticipate that the cost would
 be negligible.
   Summary of relevant resources:
   Membership data as of March 31, 2021 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2021 actuari-
 al  valuation.    Distributions and other statistics can be found in the
 2021 Report of the Actuary and the 2021 Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2020
 and 2021 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, 2021
 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  December  21,  2021, and intended for use only
 during the  2022  Legislative  Session,  is  Fiscal  Note  No.  2022-25,
 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 Section 448, Section 508 and Section 606 of  the
 Retirement and Social Security Law to change the age at which reductions
 to  the  ordinary  death  benefit commence for active members of the New
 York State Teachers' Retirement System. Currently,  the  ordinary  death
 benefit  is  reduced by four percent per year commencing at age 61. This
 bill would change the age at which reductions commence  to  age  62  for
 members  with  a date of membership prior to April 1, 2012 and to age 63
 for members with a date of membership on or after  April  1,  2012.  The
 post-retired  death  benefit for affected members, which is based on the
 ordinary death benefit, would be increased as well.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers'  Retirement  System  for  this benefit is estimated to be $1.0
 million or .01% 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
 Annual  Report.  System assets are as reported in the System's financial
 statements and can also be found in the System's Annual Report. Actuari-
 al assumptions and methods are provided in the System's Actuarial  Valu-
 ation Report and the Actuarial Assumptions 2021 report.
   The  source  of this estimate is Fiscal Note 2022-11 dated January 21,
 2022 prepared by the Actuary of the New York State Teachers'  Retirement
 System and is intended for use only during the 2022 Legislative Session.
 A. 7730--A                          6
 
 I,  Richard A. Young, am the Chief Actuary for the New York State Teach-
 ers' Retirement System. I am a member of the American Academy of Actuar-
 ies and I meet the Qualification Standards of the  American  Academy  of
 Actuaries to render the actuarial opinion contained herein.