S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6619--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 10, 2021
                                ___________
 
 Introduced by Sen. GOUNARDES -- (at request of the State Comptroller) --
   read  twice  and  ordered printed, and when printed to be committed to
   the Committee on Civil Service and Pensions -- reported favorably from
   said committee and committed to the Committee on Finance --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 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 513 of the laws of 2010, 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
 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
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10525-04-1

 S. 6619--A                          2
 
 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
 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 513
 of the laws of 2010, 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
 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

 S. 6619--A                          3
 
 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 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 513 of the laws of 2010, 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
 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

 S. 6619--A                          4
 
 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
 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  (ERS) and New York State and Local Police and Fire Retire-
 ment System (PFRS), ensuring that no reduction applies before  a  member
 becomes  eligible for an unreduced retirement benefit. Currently, annual
 reductions of 4% (ERS 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.
   Insofar as this bill affects the ERS, if this legislation  is  enacted
 during  the  2021 legislative session, there would be an increase in the
 present value of future costs of approximately $19.4 million which would
 be shared by the State of New York and all of the participating  employ-
 ers  in  the  ERS.  The estimated first year cost would be approximately

 S. 6619--A                          5
 
 $954,000 to the State of New York and approximately $1.37 million to the
 participating employers in the ERS.
   Insofar  as  this  bill  affects  PFRS, if this legislation is enacted
 during the 2021 legislative session, we anticipate that the cost will be
 negligible.
   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 April 1, 2021, and intended for use only during
 the 2021 Legislative Session, is Fiscal Note No. 2021-113,  prepared  by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill (legislative bill draft 10525-03-1) 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  who  die  in  service.  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. This bill would apply to
 active member deaths on or after the effective date of this bill.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System for this benefit is  estimated  to  be  $1.1
 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. Actuar-
 ial assumptions and methods are provided in the System's Actuarial Valu-
 ation Report.
   The  source of this estimate is Fiscal Note 2021-52 dated May 12, 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
 ________________________________________________________________________
 
                                  6619--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 10, 2021
                                ___________
 
 Introduced by Sen. GOUNARDES -- (at request of the State Comptroller) --
   read  twice  and  ordered printed, and when printed to be committed to
   the Committee on Civil Service and Pensions -- reported favorably from
   said committee and committed to the Committee on Finance --  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
 
 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10525-07-2
              

 S. 6619--B                          2
 
 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 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
 S. 6619--B                          3
 
 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
 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-
 S. 6619--B                          4
 
 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
 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
 S. 6619--B                          5
 
 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.
   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.
 S. 6619--B                          6
 
   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.
 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.