The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5631
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 15, 2021
                                ___________
 
 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-TWO,  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-TWO, 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-TWO,  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09819-02-1

 S. 5631                             2
 
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment for the month of September, two thousand TWENTY-TWO, 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-TWO,  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-TWO, 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-TWO,  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-TWO,  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 2022, the cost-of-living benefit payable
 to  a  surviving  spouse who is eligible for COLA will be increased form
 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 $1.2 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 $123 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:

 S. 5631                             3

   Membership data as of March 31, 2020 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2020 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2020 Report of the Actuary and the 2020 Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2020
 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, 2020
 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 March 10, 2021, and intended for use only during
 the 2021 Legislative Session, is Fiscal Note No.  2021-99,  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
 ________________________________________________________________________
 
                                  5631--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 15, 2021
                                ___________
 
 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-TWO,  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-TWO, 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-TWO,  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09819-03-1

 S. 5631--A                          2
 
 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-TWO, 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-TWO,  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-TWO, 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-TWO,  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-TWO, 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 2022, the cost-of-living benefit payable
 to a surviving spouse who is eligible for COLA will  be  increased  form
 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 $1.2 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 $123 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.

 S. 5631--A                          3
 
   Summary of relevant resources:
   Membership  data as of March 31, 2020 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2020 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2020  Report  of the Actuary and the 2020 Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2020
 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, 2020
 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 March 10, 2021, and intended for use only  during
 the  2021  Legislative  Session, is Fiscal Note No. 2021-99, prepared by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   In as much as it would impact the New York State Teachers'  Retirement
 System  (NYSTRS)  this  bill  (legislative  bill draft 09819-01-1) 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" supplemental survivor benefit
 is equal to 50% of the benefit. This benefit improvement would be effec-
 tive in September of 2022.
   The annual cost to the employers of members of NYSTRS for this benefit
 is estimated to be $44.9 million or .26% 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 and GASB disclosures are  reported  in  the
 System's  financial  statements,  and  can also be found in the System's
 Annual Report. Actuarial assumptions and methods  are  provided  in  the
 System's Actuarial Valuation Report.
   The  source  of this estimate is Fiscal Note 2021-30 dated May 5, 2021
 prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
 System and is intended for use only during the 2021 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
 ________________________________________________________________________
 
                                  5631--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 15, 2021
                                ___________
 
 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-TWO,  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-TWO, 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-TWO,  the  surviving  spouse  of a
 deceased retired member who retired under an option which provides  that

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

                                                            LBD09819-04-1

 S. 5631--B                          2
 
 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-TWO, 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-TWO,  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-TWO, 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-TWO,  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-TWO, 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 2022, the cost-of-living benefit payable
 to a surviving spouse who is eligible for COLA will  be  increased  form
 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 $1.2 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 $123 million. The estimated first year cost would

 S. 5631--B                          3
 
 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:
   Membership  data as of March 31, 2020 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2020 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2020  Report  of the Actuary and the 2020 Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2020
 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, 2020
 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 March 10, 2021, and intended for use only  during
 the  2021  Legislative  Session, is Fiscal Note No. 2021-99, prepared by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   In as much as it would impact the New York State Teachers'  Retirement
 System  (NYSTRS)  this  bill  (legislative  bill draft 09819-01-1) 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" supplemental survivor benefit
 is equal to 50% of the benefit. This benefit improvement would be effec-
 tive in September of 2022.
   The annual cost to the employers of members of NYSTRS for this benefit
 is estimated to be $44.9 million or .26% 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 and GASB disclosures are  reported  in  the
 System's  financial  statements,  and  can also be found in the System's
 Annual Report. Actuarial assumptions and methods  are  provided  in  the
 System's Actuarial Valuation Report.
   The  source  of this estimate is Fiscal Note 2021-30 dated May 5, 2021
 prepared by the Actuary of  the  New  York  State  Teachers'  Retirement
 System and is intended for use only during the 2021 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, as it relates to  the  New
 York  City  Retirement  Systems  and  Pension Funds (NYCRS), 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

 S. 5631--B                          4
 
 September 1, 2022, 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 Educa-
 tion Retirement System (BERS), the New York  City  Police  Pension  Fund
 (POLICE), and the New York City Fire Pension Fund (FIRE).
   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
 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 $579.7 million and an increase  in  the  first
 year annual employer contributions of $521.1 million. A breakdown of the
 financial impact by NYCRS is shown in the table below.
 NYCRS                     Additional               Estimated First Year
                Present Value of Future Benefits       Annual Employer
                          ($ Millions)                 Contributions*
                                                        ($ Millions)
 NYCERS                      $338.3                        $295.2
 NYCTRS                       180.3                         171.8
 BERS                         20.6                          19.1
 POLICE                       28.0                          23.9
 FIRE                         12.5                          11.1
 Total                       $579.7                        $521.1
 
 * Total NYCRS employer contributions after the first year are estimated
 to be $15 - $16 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 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)).
   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,  2020  actuarial
 valuations  of  NYCRS.  In  accordance  with  the OYLM used to determine

 S. 5631--B                          5
 
 employer contributions, the increase  in  employer  contributions  would
 first be reflected in Fiscal Year 2022.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the June 30, 2020 (Lag) actuarial valuations  of  NYCRS  to
 determine the Preliminary Fiscal Year 2022 employer contributions.
   ACTUARIAL  ASSUMPTIONS AND METHODS: The changes in the PVFB and annual
 employer contributions presented herein have been  calculated  based  on
 the  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.
   The Actuary is proposing a set of changes for use beginning  with  the
 June 30, 2019 (Lag) actuarial valuations of NYCRS to determine the Final
 Fiscal  Year  2021 Employer Contributions (2021 A&M). If the 2021 A&M is
 enacted it is estimated that it would produce PVFB and first year annual
 employer contribution results that are approximately 4-5%  smaller  than
 the results shown above. Employer contributions after the first year are
 estimated  to be approximately 6-9% smaller than the results shown above
 if the 2021 A&M is enacted.
   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
 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 (OPEB) 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 2021-48  dated  June  10,
 2021  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 2021 Legislative Session.