S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6699
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 2, 2023
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   authorizing  the  beneficiaries  of  a  member  of the state and local
   employees' retirement system who die after filing a retirement  appli-
   cation to choose pension benefits rather than a death benefit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision a of section 70 of the  retirement  and  social
 security  law, as amended by chapter 375 of the laws of 2011, is amended
 to read as follows:
   a. Any member may retire if he or she shall have attained at least the
 minimum retirement age while in service as a member, or while in federal
 service, or in the service of the United Nations or other  international
 organizations  of  which  the  United  States  is  a member, as a member
 continued pursuant to paragraph one of subdivision f of section forty of
 this article, or while entitled to make application for a vested retire-
 ment allowance pursuant to section seventy-six of this title.  Any  such
 member desiring to retire shall execute and file with the comptroller an
 application  for  retirement,  which shall specify the effective date of
 his or her retirement, which shall be not less  than  fifteen  nor  more
 than  ninety  days subsequent to such date of filing. An application for
 service retirement, filed hereunder in accordance with the provisions of
 subdivision c of section sixty-two or subdivision f  of  section  sixty-
 three  of  this  article,  shall  be  processed  in  the regular manner,
 provided that if the application filed  simultaneously  therewith  under
 either  of  such  subdivisions  is  granted,  then and in that event the
 retirement allowance granted in accordance with the provisions  of  this
 section  shall  be  appropriately  adjusted.  NOTWITHSTANDING  ANY OTHER
 PROVISION OF LAW, FOR ANY MEMBER WHO IS ELIGIBLE TO RETIRE AND  WHO  HAS
 DIED  WHILE  IN  ACTIVE  SERVICE,  AND  WHO HAS FILED AN APPLICATION FOR
 SERVICE RETIREMENT LESS THAN THIRTY DAYS PRIOR TO  DEATH,  THE  MEMBER'S
 ACTIVE  BENEFICIARY SHALL HAVE THE OPTION TO CHOOSE THE DEATH BENEFIT OR
 IF SUCH MEMBER FILED AN OPTION ELECTION FORM PRIOR TO DEATH, THE BENEFIT
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07498-03-3
 A. 6699                             2
 
 ELECTED BY THE MEMBER ON SUCH FORM, IN WHICH CASE  THE  MEMBER  WILL  BE
 DEEMED TO HAVE RETIRED THE DAY PRIOR TO DEATH.
   §  2. Notwithstanding any other provision of law to the contrary, none
 of the provisions of this act shall be subject  to  section  25  of  the
 retirement and social security law.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow a deceased member's active death beneficiary the
 option  to  make effective the service retirement application and option
 election form filed by the member with the  New  York  State  and  Local
 Employees' Retirement System (NYSLERS), resulting in payment of a survi-
 vor's benefit in lieu of an active death benefit, provided the member is
   1) eligible to retire as of the day immediately prior to their death,
   2) has died in active service,
   3)  has  filed  an application for service retirement less thirty days
 prior to their death, and
   4) has filed an option election form prior to their death.
   The member will be deemed to have  retired  the  day  prior  to  their
 death.
   If  this bill is enacted during the 2023 legislative session, the cost
 will depend upon the deceased member's age, service, salary,  plan,  and
 the  optional  form  elected  by the member. For standard options, there
 will be an estimated additional cost of up to five (5) times the  salary
 of the deceased member. This cost assumes that the post-retirement death
 benefit  will  be payable on behalf of any eligible member only when the
 service retirement benefit is chosen. All costs arising would be  shared
 and  spread  by the State of New York and all participating employers in
 the NYSLERS.
   Further, we anticipate significant administrative costs  to  implement
 the provisions of this legislation.
   The  number of members and beneficiaries who could be affected by this
 legislation cannot be readily determined. However, it is estimated  that
 approximately  600  beneficiaries could benefit from this provision each
 year.
   Summary of relevant resources:
   Membership data as of March 31, 2022 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2022 Report of the Actuary and the 2022 Annual  Comprehensive  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2020,
 2021, and 2022 Annual Report to the  Comptroller  on  Actuarial  Assump-
 tions,  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, 2022
 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 15, 2023, and intended for use only during
 the 2023 Legislative Session, is Fiscal Note No.  2023-90,  prepared  by
 the Actuary for the New York State and Local Retirement System.