Senate Bill S10471A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10471--A
 
                             I N  S E N A T E
 
                               May 15, 2026
                                ___________
 
 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-SEVEN,  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-SEVEN, 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-SEVEN,  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15258-03-6
 S. 10471--A                         2
 
 payment  for  the month of September, two thousand TWENTY-SEVEN, 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-SEVEN,  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-SEVEN, 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-SEVEN,  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-SEVEN, 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 amend the retirement and social security law (RSSL) to
 increase the defined benefit cost-of-living adjustment  (COLA)  for  New
 York  public  retirement  systems.  Beginning  with  pension payments in
 September 2027, the cost-of-living benefit payable to a surviving spouse
 who is eligible for COLA will be increased from  fifty  percent  to  one
 hundred  percent  of  the  COLA  payment  that  the  retiree  would have
 received.
   Pursuant to section 25 of the RSSL, retrospective  costs  in  the  New
 York State and Local Employees' Retirement System (NYSLERS) arising from
 prior service would be borne entirely by the state of New York and would
 require  an  itemized  appropriation  sufficient  to pay the cost of the
 provision.
   Insofar as this bill affects NYSLERS, the present  value  of  benefits
 would increase by approximately $1.8 billion.
   In  NYSLERS,  this benefit improvement will be funded by (1) billing a
 one-time  charge  to  cover  retrospective  benefit  increases  and  (2)
 increasing the billing rates charged annually to cover prospective bene-
 fit increases, as follows:
   (1)  To  fund  retrospective  costs,  the  state  of  New York will be
 required to pay $1.92 billion as of March 1, 2027.
   (2) To fund prospective costs, annual billing  rates  charged  to  all
 participating  employers  in NYSLERS would increase by 0.04% of billable
 S. 10471--A                         3
 
 salary. Systemwide, annual contributions would increase by approximately
 $5.3 million for the state of New York and $7.9 million  for  the  local
 participating  employers. This permanent annual cost will vary in future
 billing  cycles  with  changes  in  the  billing  rate and salary of the
 affected members.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  System (NYSLPFRS), the present value of benefits would
 increase by approximately $207 million.
 
 NYSLPFRS                 Increase in present      Increase in required
                           value of benefits          contributions
 Pensioners                    $182 mn                   $  0 mn
 Actives Tiers 1-5 (Closed)    $ 15 mn                   $ 70 mn
 Actives Tier 6 (Open)         $ 10 mn                   $137 mn
   Total                       $207 mn                   $207 mn
 
   Benefit improvements will be funded by increasing  the  billing  rates
 charged  annually. The annual billing rate required of all participating
 employers in NYSLPFRS would increase 0.4% of billable salary.    System-
 wide,  annual contributions would increase approximately $3.6 million to
 the state of New York and  $15.2  million  to  the  local  participating
 employers.    This  permanent  annual  cost  will vary in future billing
 cycles with changes in the billing  rate  and  salary  of  the  affected
 members.
   Summary of relevant resources:
   Membership data as of March 31, 2025 was used to measure the impact of
 the  bill, the same data used in the Actuarial Valuations dated April 1,
 2025. Distributions and other statistics can be found in the 2025 Report
 of the Actuary and the 2025 Annual Comprehensive Financial  Report.  The
 actuarial  assumptions and methods used are described in the 2025 Annual
 Report to the Comptroller on Actuarial Assumptions, and the Codes, Rules
 and Regulations of the State of New York: Audit and  Control.  The  fair
 value  of assets and GASB disclosures can be found in the 2025 Financial
 Statements and Supplementary Information.
   Assumptions, demographics, and  other  considerations  may  have  been
 modified  to  better reflect specific provisions of any proposed benefit
 change(s).
   This fiscal note does not constitute a legal opinion on the  viability
 of the bill, nor is it intended to serve as a substitute for the profes-
 sional judgment of an attorney.
   This  estimate, dated April 23, 2026, and intended for use only during
 the 2026 Legislative Session, is Fiscal Note Number 2026-161.  As  Chief
 Actuary  of  the New York State and Local Retirement System (NYSLRS), I,
 Aaron Schottin Young, hereby certify that this  analysis  complies  with
 applicable  Actuarial  Standards  of  Practice  as  well  as the Code of
 Professional Conduct and Qualification Standards for  Actuaries  Issuing
 Statements of Actuarial Opinion of the American Academy of Actuaries, of
 which  I  am  a  member.  I  am a member of NYSLRS but do not believe it
 impairs my objectivity.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   Bill Description:
   This fiscal note is prepared for legislative bill  draft  #15258-01-6.
 This  bill  would  amend subdivision g of Section 532-a of the Education
 Law to increase the cost-of-living adjustment (COLA) benefit to  surviv-
 ing  spouse  beneficiaries  of  deceased  retirees who elected an option
 which provides a lifetime benefit to their surviving  spouse.  The  COLA
 S. 10471--A                         4
 
 survivor benefit would be equal to 100% of the monthly benefit which the
 retiree  would  be receiving if alive. The current COLA survivor benefit
 is equal to 50% of the benefit the retiree would be receiving if  alive.
 This  increase  in  spousal survivor benefit would also be applicable to
 the "catch-up" supplementation provided under subdivision f to  eligible
 retirees  who  retired  before January 1, 1997. This benefit improvement
 would be effective with the September 2027 payment.
   Cost:
   The annual cost to the participating employers of the New  York  State
 Teachers'  Retirement  System  for this benefit is estimated to be $48.1
 million or 0.23% of payroll if this bill is enacted.
   Data:
   Member data as of June 30, 2025, prepared for the most recent actuari-
 al valuation was used in determining this cost.  The  most  recent  data
 distributions  and statistics can be found in the System's Annual Report
 for the fiscal year ended June 30, 2025. System assets are  as  reported
 in  the System's financial statements which can be found in the System's
 Annual Report. This data will also be provided in the System's Actuarial
 Valuation Report as of June 30, 2025.
   Methods and Assumptions:
   A summary of actuarial assumptions and methods will be provided in the
 System's Actuarial Valuation Report as of June 30, 2025. Further details
 can be found in the most recent Recommended Actuarial  Assumptions  2025
 Report.
   Actuarial Certification:
   We, the undersigned actuaries for the New York State Teachers' Retire-
 ment System, certify the following:
   1.  The  actuarial  assumptions, methods, and data used are reasonable
 for the purposes of this fiscal note, internally consistent and  are  in
 accordance with standards of practice prescribed by the Actuarial Stand-
 ards Board and generally accepted actuarial principles and procedures.
   2. We relied on member data supplied by the participating employers of
 the New York State Teachers' Retirement System and assets as supplied in
 the annual Financial Statements by NYSTRS' Finance Department.
   3.  Results  were  prepared  based on our current understanding of the
 proposal as of the date of this fiscal note.  If  the  language  or  our
 understanding  of  the  proposal  changes,  the results could change and
 require the issuance of a new fiscal note. The next annual update of the
 actuarial valuation could also produce different results. Results should
 not be relied upon for any other purpose.
   4. This fiscal note was prepared in accordance  with  New  York  State
 Retirement and Social Security Law, New York State Education Law, appli-
 cable  Internal  Revenue Code, and accepted actuarial standards of prac-
 tice as of the date of this fiscal  note.  This  fiscal  note  does  not
 constitute  a  legal  opinion  on  the  viability  of  this  legislative
 proposal.
   5. We are members of the American Academy of Actuaries and the Society
 of Actuaries, and we meet the Qualification Standards  of  the  American
 Academy  of  Actuaries to render the actuarial opinion contained herein.
 We are currently compliant with the Continuing Professional  Development
 Requirement of the Society of Actuaries.
   Fiscal Note Identification:
   This  Fiscal  Note,  2026-57,  dated May 20, 2026, was prepared by the
 Office of the Actuary of the New York State Teachers' Retirement  System
 and is intended for use only during the 2026 Legislative Session.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 S. 10471--A                         5
 
   SUMMARY: This proposed legislation, as it relates to the New York City
 Retirement  Systems  and Pension Funds (NYCRS), would increase the Cost-
 of-Living Adjustment (COLA), effective September 1, 2027, to an eligible
 surviving spouse from 50% to 100% of the COLA  the  pensioner  would  be
 receiving if still alive.
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
 Year      NYCERS    TRS       BERS      POLICE    FIRE      TOTAL
 2027      469.3     194.1     21.0      49.9      15.1      749.4
 2028      8.2       2.8       0.4       0.5       0.2       12.1
 2029      8.2       2.8       0.4       0.5       0.2       12.1
 2030      8.2       2.8       0.4       0.5       0.2       12.1
 2031      8.1       2.8       0.4       0.5       0.2       12.0
 2032      8.1       2.8       0.4       0.5       0.2       12.0
 2033      8.1       2.8       0.4       0.5       0.2       12.0
 2034      8.0       2.8       0.4       0.5       0.2       11.9
 2035      8.0       2.8       0.4       0.5       0.2       11.9
 2036      8.0       2.8       0.4       0.5       0.2       11.9
 2037      8.0       2.8       0.4       0.4       0.2       11.8
 2038      8.0       2.8       0.4       0.4       0.2       11.8
 2039      3.3       2.8       0.4       0.2       0.2       6.9
 2040      3.3       2.8       0.2       0.2       0.1       6.6
 2041      3.3       1.1       0.2       0.2       0.1       4.9
 2042      3.4       1.1       0.2       0.2       0.1       5.0
 2043      3.4       1.1       0.2       0.2       0.1       5.0
 2044      3.4       1.1       0.2       0.2       0.1       5.0
 2045      3.4       1.1       0.2       0.2       0.1       5.0
 2046      3.5       1.1       0.2       0.2       0.1       5.1
 2047      3.5       1.1       0.2       0.2       0.1       5.1
 2048      3.6       1.2       0.2       0.2       0.1       5.3
 2049      3.6       1.2       0.2       0.2       0.1       5.3
 2050      3.7       1.2       0.3       0.2       0.1       5.5
 2051      3.7       1.2       0.3       0.2       0.1       5.5

   Projected contributions include future new hires that may be impacted.
 For Fiscal Year 2052 and beyond, the expected increase in normal cost as
 a level percent of pay for impacted new entrants is approximately 0.007%
 for  NYCERS,  0.003%  for  TRS,  0.005% for BERS, 0.001% for POLICE, and
 0.002% for FIRE.
 
   The initial increase in employer contributions of  $749.4  million  is
 estimated  to be $486.2 million for New York City and $263.2 million for
 the other obligors of NYCRS.
   PRESENT VALUE OF BENEFITS:  The  Present  Value  of  Benefits  is  the
 discounted  expected  value  of  benefits paid to current members if all
 assumptions are met, including future service accrual and pay increases.
 Future new hires are not included in this present value.
 
          INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
                    as of June 30, 2025 ($ in Millions)
   Present Value (PV)               NYCERS TRS    BERS   POLICE FIRE
 (1) PV of Employer Contributions:  479.7  197.0  21.8   48.5   15.3
 (2) PV of Employee Contributions:  0.0    0.0    0.0    0.0    0.0
 Total PV of Benefits (1) + (2):    479.7  197.0  21.8   48.5   15.3
 S. 10471--A                         6
 
   UNFUNDED ACCRUED LIABILITY (UAL): Actuarial  Accrued  Liabilities  are
 the  portion of the Present Value of Benefits allocated to past service.
 Changes in UAL for active  members  were  amortized  over  the  expected
 remaining   working  lifetime  of  those  impacted  using  level  dollar
 payments.  UAL  attributable  to  inactive members was recognized in the
 first year.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY

                                 NYCERS    TRS     BERS    POLICE  FIRE
 Increase (Decrease) in UAL:     452.9 M   187.1 M 20.0 M  46.8 M  14.4 M
 Number of Payments:             12        14      13      12      13
 Amortization Payment:           4.7 M     1.7 M   0.2 M   0.3 M   0.1 M
 Additional One-time Payment:    461.1 M   191.3 M 20.6 M  49.4 M  14.9 M
   CENSUS DATA: The estimates presented herein are based  on  preliminary
 census  data  collected  as  of  June  30, 2025. The census data for the
 impacted population is summarized below.
 
                        NYCERS       TRS      BERS   POLICE       FIRE
 Active Members
 - Number Count:       182,611   129,814    46,890    33,950    11,178
 - Average Age:           47.8      44.6      44.8      37.1      40.3
 - Average Service:       11.6      12.4       5.4      10.6      13.1
 - Average Salary:      95,900   104,500    44,000   134,100   141,300
 Term. Vested Members
 - Number Count:        29,094    22,728     4,259     1,534        56
 - Average Age:           51.9      47.5      51.5      39.1      44.0
 Receiving Members
 - Number Count:        46,414    26,335     3,208     3,825     1,712
 - Average Age:           74.3      75.8      75.8      63.1      66.5
 
   IMPACT ON MEMBER BENEFITS: 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.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems. In addition:
   * Assumptions for active members electing a form of pension at retire-
 ment that would continue a payment to a surviving spouse  (ranging  from
 15% to 30%) were made based on the distribution of current elections and
 an estimate of future elections.
   *  New  entrants were assumed to replace exiting members so that total
 payroll increases by 3% each year for impacted groups. New entrant demo-
 graphics were developed based on data for recent new hires and actuarial
 judgement.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on  the  actuarial  assumptions, methods, and models used, demo-
 graphics of the impacted population, and other factors such  as  invest-
 ment,  contribution, and other risks. If actual experience deviates from
 actuarial  assumptions,  the  actual  costs  could  differ  from   those
 presented  herein.  Quantifying  these risks is beyond the scope of this
 Fiscal Note.
 S. 10471--A                         7
 
   This Fiscal Note is intended to measure  pension-related  impacts  and
 does  not  include other potential costs (e.g., administrative and Other
 Postemployment Benefits).  This Fiscal Note does not reflect any chapter
 laws that may have been enacted during the current legislative session.
   STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
 sky  are members of the Society of Actuaries and the American Academy of
 Actuaries. We are members of NYCERS, but do not believe it  impairs  our
 objectivity,  and  we  meet  the Qualification Standards of the American
 Academy of Actuaries to render the actuarial opinion  contained  herein.
 To  the  best  of  our 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  2026-89  dated  May  19,
 2026  was prepared by the Chief Actuary for the New York City Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2026 Legislative Session.