S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7221
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2023
                                ___________
 
 Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT in relation to allowing for Genesis Villella to qualify  for  and
   receive certain spousal accidental death benefits
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Notwithstanding any other law or regulation to the  contra-
 ry, Genesis Villella, a dependent of police officer Miosotis Familia who
 was  killed  in  the line of duty, shall be eligible for and entitled to
 the accidental death benefit payable to a spouse of  a  deceased  police
 officer  in  accordance  with  subdivision  one of section 13-244 of the
 administrative code of the city of New York and the  special  accidental
 death  benefit  paid to a spouse of a deceased police officer in accord-
 ance with paragraph one of subdivision f of section 208-f of the general
 municipal law.  Provided however, the death benefit amount  provided  to
 Genesis  Villella  pursuant  to  this act shall be split equally between
 Genesis Villella and dependents Deliliah Vega and  Peter  Vega  for  the
 rest  of such dependents' lifetimes, once the youngest dependent reaches
 the age of twenty-five.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after July 5, 2017.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL:  This  proposed  legislation  would provide Genesis
 Villella, the eldest child  beneficiary  of  deceased  police  Detective
 Miosotis  Familia, with an additional 100% of the total Accidental Death
 Benefit (ADB) and Special Accidental Death Benefit (SADB) benefit  until
 the  twin  child  beneficiaries  of  Detective Familia, Deliliah Vega or
 Peter Vega, reach the age of 25, at which time  they  would  split  such
 benefit equally for the remainder of their lifetimes.
   Effective Date: Upon enactment and retroactive to July 5, 2017.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09760-02-3
 S. 7221                             2
              

 
   BACKGROUND:  Detective  Familia  died  in the line of duty as a Tier 2
 Police member on July 5, 2017. The total death benefit payable,  includ-
 ing  SADB,  was  $172,200  per year. There were three eligible statutory
 child beneficiaries, Genesis, Deliliah, and Peter, who were ages 20, 12,
 and  12,  respectively,  at the time of death. Each beneficiary received
 one-third of the total death benefit, or approximately $57,400 each  per
 year, from the time of death until the time Genesis turned age 23.
   When Genesis attained age 23, the portion of the death benefit payable
 to  her ceased and was evenly distributed among the remaining two eligi-
 ble beneficiaries, Deliliah and Peter, such that the total death benefit
 payable remained at $172,200 per year. (Note that  all  benefit  amounts
 shown  in  this  Fiscal Note are as of Detective Familia's date of death
 and do not include subsequent Cost-of-Living adjustments (COLA).)
   IMPACT ON BENEFITS: Genesis no longer receives a death benefit,  while
 Deliliah  and  Peter  currently  each  receive approximately $86,100 per
 year.  These payments will continue until Deliliah or  Peter  reach  the
 age  of  18 (or 23 if a student). If payments to one of the twins ceases
 before the other, the still  eligible  twin  would  receive  the  entire
 $172,200 benefit until they age out.
   Under  the  proposed  legislation,  if enacted, and in addition to the
 current benefits described above, Genesis would receive $172,200,  which
 is equivalent to 100% of the total ADB and SADB benefit, (reduced by the
 amounts  she  received  prior  to turning age 23) retroactively from the
 date of the members' death. This amount  will  be  split  equally  among
 Genesis, Delilah, and Peter once the twins turn age 25.
   FINANCIAL  IMPACT - PRESENT VALUES: Based on the actuarial assumptions
 and methods described herein, the enactment of this proposed legislation
 would increase the Present Value  of  Future  Benefits  (PVFB)  and  the
 Unfunded Accrued Liability (UAL) of POLICE by approximately $6.0 million
 as of June 30, 2023.
   The  estimated  financial  impact of this proposal has been calculated
 based on the difference between the present value of  (1)  the  benefits
 Detective  Familia's beneficiaries would receive if this proposed legis-
 lation were enacted (retroactive to her July 5, 2017 date of death)  and
 (2)  the  benefits  that  are  currently and have been paid to Detective
 Familia's beneficiaries.
   FINANCIAL IMPACT - ANNUAL EMPLOYER  CONTRIBUTIONS:  The  enactment  of
 this  proposed  legislation  would  result in an increase in Fiscal Year
 2025 employer contributions of approximately $6.6 million.
   New UAL attributable to benefit changes are generally  amortized  over
 the remaining working lifetime of those impacted by the benefit changes.
 Since  Detective  Familia  passed  away,  and therefore has no remaining
 working lifetime, the entire increase in UAL would be  recognized  imme-
 diately.
   CENSUS DATA: As of June 30, 2023, Genesis, Deliliah, and Peter will be
 ages  26,  18,  and  18,  respectively. Genesis is not receiving a death
 benefit because she is a dependent child over age 23. Deliliah and Peter
 each currently receive a death benefit of $102,789  per  year  including
 COLA.
   ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
 been  calculated  based on the actuarial assumptions and methods used to
 determine the Preliminary Fiscal Year  2024  employer  contributions  of
 POLICE.  For purposes of this Fiscal Note, it is assumed that the young-
 est beneficiary will be a full-time student until age 23.
   For the purposes of this Fiscal Note, it is assumed that  the  changes
 would  be  reflected  for  the first time in the June 30, 2023 actuarial
 S. 7221                             3
 
 valuation of POLICE used to determine employer contributions for  Fiscal
 Year 2025.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the realization of the actuarial assumptions used,  demograph-
 ics  of  the  impacted population, and other factors such as investment,
 contribution, and other risks. If actual experience deviates from  actu-
 arial  assumptions,  the  actual costs could differ from those presented
 herein.
   Costs are also dependent on the actuarial methods used, and  therefore
 different actuarial methods could produce different results. Quantifying
 these risks is beyond the scope of this Fiscal Note.
   Not measured in this Fiscal Note are the following:
   *  The  initial  additional  administrative  costs  to  implement  the
 proposed legislation.
   * The impact of this  proposed  legislation  on  Other  Postemployment
 Benefit costs.
   STATEMENT  OF  ACTUARIAL  OPINION:  I, Marek Tyszkiewicz, am the Chief
 Actuary for, and independent of, the New York  City  Retirement  Systems
 and  Pension  Funds. I am an Associate of the Society of Actuaries and a
 Member of the American Academy of Actuaries. I am a member of NYCERS but
 do not believe it impairs my objectivity and 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 2023-51 dated May 17,
 2023 was prepared by the Chief Actuary for  the  New  York  City  Police
 Pension  Fund.  This  estimate  is intended for use only during the 2023
 Legislative Session.