S T A T E O F N E W Y O R K
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5484--A
Cal. No. 568
2017-2018 Regular Sessions
I N S E N A T E
March 31, 2017
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
-- reported favorably from said committee, ordered to first and second
report, ordered to a third reading, amended and ordered reprinted,
retaining its place in the order of third reading
AN ACT to amend the retirement and social security law and the general
municipal law, in relation to pension benefits of widows or widowers
of sanitation workers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 7 of section 501 of the retirement and social
security law, as amended by chapter 18 of the laws of 2012, is amended
to read as follows:
7. "Eligible beneficiary" for the purposes of section five hundred
nine of this article shall mean the following persons or classes of
persons in the order set forth: (a) a surviving spouse who has not
renounced survivorship rights in a separation agreement, until remar-
riage, (b) surviving children until age twenty-five, (c) dependent
parents, determined under regulations promulgated by the comptroller,
(d) any other person who qualified as a dependent on the final federal
income tax return of the member or the return filed in the year imme-
diately preceding the year of death, until such person reaches twenty-
one years of age [and], (e) with respect to members of the New York city
employees' retirement system (other than a New York city uniformed
correction/sanitation revised plan member or an investigator revised
plan member) and the board of education retirement system of the city of
New York, a person whom the member shall have nominated in the form of a
written designation, duly acknowledged and filed with the head of the
retirement system for the purpose of section five hundred eight of this
article. In the event that a class of eligible beneficiaries consists of
more than one person, benefits shall be divided equally among the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09379-07-7
S. 5484--A 2
persons in such class. For the purposes of section five hundred eight of
this article the term "eligible beneficiary" shall mean such person as
the member shall have nominated to receive the benefits provided in this
article. To be effective, such a nomination must be in the form of a
written designation, duly acknowledged and filed with the head of the
retirement system for this specific purpose. In the event such desig-
nated beneficiary does not survive him, or if he shall not have so
designated a beneficiary, such benefits shall be payable to the deceased
member's estate or as provided in section one thousand three hundred ten
of the surrogate's court procedure act AND (F) NOTWITHSTANDING ANY OTHER
PROVISIONS OF LAW, "ELIGIBLE BENEFICIARY" OF A NEW YORK CITY UNIFORMED
SANITATION REVISED PLAN MEMBER FOR THE PURPOSES OF SECTION FIVE HUNDRED
NINE OF THIS ARTICLE SHALL MEAN THE FOLLOWING PERSONS OR CLASSES OF
PERSONS IN THE ORDER SET FORTH: (I) A SURVIVING SPOUSE WHO HAS NOT
RENOUNCED SURVIVORSHIP RIGHTS IN A SEPARATION AGREEMENT, (II) SURVIVING
CHILDREN UNTIL AGE TWENTY-FIVE, (III) DEPENDENT PARENTS, DETERMINED
UNDER REGULATIONS PROMULGATED BY THE COMPTROLLER AND (IV) ANY OTHER
PERSON WHO QUALIFIED AS A DEPENDENT ON THE FINAL FEDERAL INCOME TAX
RETURN OF THE MEMBER OR THE RETURN FILED IN THE YEAR IMMEDIATELY PRECED-
ING THE YEAR OF DEATH, UNTIL SUCH PERSON REACHES TWENTY-ONE YEARS OF
AGE.
§ 2. Subdivision d of section 601 of the retirement and social securi-
ty law, is amended by adding a new paragraph 6 to read as follows:
6. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW, "ELIGIBLE BENEFICIARY"
OF A NEW YORK CITY UNIFORMED SANITATION MEMBER SHALL MEAN THE FOLLOWING
PERSONS OR CLASSES OF PERSONS IN THE ORDER SET FORTH: (I) A SURVIVING
SPOUSE WHO HAS NOT RENOUNCED SURVIVORSHIP IN A SEPARATION AGREEMENT,
(II) SURVIVING CHILDREN UNTIL AGE TWENTY-FIVE, (III) DEPENDENT PARENTS,
DETERMINED UNDER REGULATIONS PROMULGATED BY THE COMPTROLLER AND (IV) ANY
OTHER PERSON WHO QUALIFIED AS A DEPENDENT ON THE FINAL FEDERAL INCOME
TAX RETURN OF THE MEMBER OR THE RETURN FILED IN THE YEAR IMMEDIATELY
PRECEDING THE YEAR OF DEATH, UNTIL SUCH PERSON REACHES TWENTY-ONE YEARS
OF AGE.
§ 3. Subdivision a of section 208-f of the general municipal law, as
separately amended by chapters 583 and 742 of the laws of 2004, is
amended to read as follows:
a. Notwithstanding any other provision of law, the special accidental
death benefit provided by this section shall be paid to the widow or
widower or the deceased member's children under the age of eighteen, or,
if a student under the age of twenty-three, if the widow or widower has
died of: (i) a deceased member of a pension or retirement system of a
police department or paid fire department of a city, town or village;
(ii) a deceased paid member of the police force of the police department
of the New York city transit authority; (iii) a deceased paid member of
the police force of the police department of the New York city housing
authority; (iv) a deceased paid member of the uniformed correction force
of the New York city department of correction; (v) a deceased paid
uniformed member of a county sheriff's department (outside the city of
New York); [or] (vi) a deceased employee of the city of New York or the
New York city health and hospitals corporation in a title whose duties
are those of an emergency medical technician or advanced emergency
medical technician (as those terms are defined in section three thousand
one of the public health law), or in a title whose duties require the
supervision of employees whose duties are those of an emergency medical
technician or advanced emergency medical technician (as those terms are
defined in section three thousand one of the public health law); [or
S. 5484--A 3
(vi)] (VII) a deceased paid bridge and tunnel member of the New York
city employees' retirement system; OR (VIII) A DECEASED PAID MEMBER OF
THE UNIFORMED FORCE OF THE NEW YORK CITY DEPARTMENT OF SANITATION,
providing the widow or widower is ineligible to receive benefits pursu-
ant to section three hundred sixty-one-a of the retirement and social
security law as [added] AMENDED by chapter [four hundred seventy-two]
SEVEN HUNDRED THIRTY-THREE of the laws of [nineteen hundred seventy-
eight] NINETEEN HUNDRED NINETY and the deceased member:
1. Died before the effective date of his or her retirement, as the
natural and proximate result of an accident sustained in the performance
of duty in the service upon which his membership was based, and
2. Did not cause such accident by his or her own willful negligence,
and
3. At the time of such accident was actually a member of: (i) a
pension or retirement system of a police department or paid fire depart-
ment of a city, town or village; (ii) a pension or retirement system
covering the police force of the police department of the New York city
transit authority; (iii) a pension or retirement system covering the
police force of the police department of the New York city housing
authority; (iv) a pension or retirement system covering the uniformed
correction force of the New York city department of correction; (v) a
pension or retirement system covering uniformed members of a county
sheriff's department (outside the city of New York); [or] (vi) a pension
or retirement system covering employees of the city of New York, or the
New York city health and hospitals corporation in a title whose duties
are those of an emergency medical technician or advanced emergency
medical technician (as those terms are defined in section three thousand
one of the public health law), or in a title whose duties require the
supervision of employees whose duties are those of an emergency medical
technician or advanced emergency medical technician (as those terms are
defined in section three thousand one of the public health law); [or
(vi)] (VII) a pension or retirement system covering paid bridge and
tunnel members of the New York city employees' retirement system; OR
(VIII) A PENSION OR RETIREMENT SYSTEM COVERING PAID MEMBERS OF THE
UNIFORMED FORCE OF THE NEW YORK CITY DEPARTMENT OF SANITATION.
§ 4. This act shall take effect immediately, provided that section
three of this act shall be deemed to have been in full force and effect
on or after November 1, 1996.
FISCAL NOTE. -- Pursuant to Legislative law, section 50:
PROVISIONS OF PROPOSED LEGISLATION: The proposed legislation would
amend General Municipal Law (GML) Section 208-f to provide Special Acci-
dental Death Benefits (SADB) to eligible beneficiaries of employees of
the City of New York (the City) who are employed in the Uniformed Force
of the Department of Sanitation (Sanitation), are members of the New
York City Employees' Retirement System (NYCERS), and die as a natural
and proximate result of an accident sustained in the performance of duty
on or after November 1, 1996.
The proposed legislation further amends Retirement and Social Security
Law (RSSL) Sections 501 and 601 to prospectively expand the definition
of a Tier 4 and 6 (modified Tier 3) eligible beneficiary for Accidental
Death Benefits contained in RSSL Sections 509 and 607 to include a
surviving spouse who remarries after the eligible member's death.
The Effective Date of the proposed legislation would be the date of
enactment, provided that the SADB would be retroactive to accidental
deaths sustained in the performance of duty on and after November 1,
1996.
S. 5484--A 4
IMPACT ON SADB BENEFITS PAYABLE: The SADB provided by GML 208-f is
paid to the deceased member's surviving spouse, if alive. If the spouse
is no longer alive, then the SADB is paid to the deceased member's chil-
dren until age eighteen or until age twenty-three if a student.
Under the proposed legislation, eligible beneficiaries of deceased
Sanitation members, who met or meet the criteria of GML Section 208-f on
and after November 1, 1996, would receive the SADB.
Under GML Section 208-f, the basic SADB is defined to equal:
* The salary of the deceased member at date of death (or, in certain
instances, a greater salary based on rank or other status)(Final Sala-
ry),
Reduced by:
* Any Accidental Death Benefit (generally equal to an annual pension
of 50% of Final Salary) as adjusted by any Supplementation or Cost-of-
Living Adjustment (COLA) paid to the deceased member's eligible benefi-
ciaries,
* Any death benefit paid by Social Security to the deceased member's
eligible beneficiaries, and
* Any Workers' Compensation benefit paid to the deceased member's
eligible beneficiaries (but it is the understanding of the OA that Sani-
tation members are ineligible for Workers' Compensation benefits).
The GML also provides that the SADB has been subject in the past to
escalation based on the calendar year of the member's death.
IMPACT ON ACCIDENTAL DEATH BENEFITS PAYABLE: The Accidental Death
Benefits provided by RSSL Sections 509 and 607 (generally 50% of Final
Salary as adjusted by any Supplementation or COLA) are paid to the
deceased member's surviving spouse, who has not renounced survivorship
rights in a separation agreement, if alive and until remarriage.
If the surviving spouse is no longer alive or no longer eligible, then
the Accidental Death Benefit is paid in successive order to any surviv-
ing children until age twenty-five, or any dependent parents. RSSL
Section 509 further provides an additional successive class of any
dependents listed on the member's federal income in the year immediately
preceding the member's death.
Under the proposed legislation, a Sanitation member's surviving
spouse, who has not renounced survivorship rights in a separation agree-
ment, would continue to receive Accidental Death Benefits for life, even
after remarriage.
FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES OF BENEFITS (APVB): With
respect to the eligible beneficiaries of deceased NYCERS members who
would be impacted by this proposed legislation, under the actuarial
assumptions used in the Preliminary June 30, 2016 (Lag) actuarial valu-
ations of NYCERS, the enactment of this proposed legislation would
increase the APVB by approximately $48.2 million as of June 30, 2016.
This amount is the sum of:
* APVB of retroactive payments to current beneficiaries*: $8.9 million
* APVB of prospective payments to current beneficiaries: $25.3 million
* APVB of prospective payments to beneficiaries of current active
members: $14.0 million
*It has been assumed that no interest will be credited on these retro-
active payments.
The APVB was calculated without regard to any death benefit paid by
Social Security to the deceased member's eligible beneficiaries.
FINANCIAL IMPACT - EMPLOYER PAYMENTS: In accordance wit the Adminis-
trative Code of the City of New York (ACNY) Section 13.638.2(k-2), new
UAAL attributable to benefit changes are to be amortized as determined
S. 5484--A 5
by the Actuary but generally over the remaining working lifetime of
those impacted by the benefit changes. As of June 30, 2016, the remain-
ing working lifetime of the Sanitation members and beneficiaries that
would be impacted by the proposed legislation is approximately 11 years.
With respect to NYCERS based on the actuarial assumptions and methods
used in the Preliminary June 30, 2016 valuations of NYCERS, the enact-
ment of this proposed legislation would increase annual employer
contributions by approximately $6.8 million per year beginning in Fiscal
Year 2018.
Historically, the State of New York (the State) reimbursed the City
for most GML Section 208-f payments. However, it is the understanding of
the Actuary that since 2009 the State has limited its reimbursement to a
fixed amount. Assuming this procedure is the same and the State does not
reimburse beyond the current fixed amount, then the additional cost of
this proposed legislation would be borne entirely by the City of New
York.
OTHER COSTS: The enactment of this proposed legislation would also be
expected to result in modest increases in administrative expenses of
NYCERS.
CENSUS DATA: As of June 30, 2016, there are 7,338 active Sanitation
members with an average age of approximately 42.9, average service of
12.0 years, and an average salary of approximately $94,000.
As of June 30, 2016, there are 24 Sanitation beneficiaries of members
who died on or after November 1, 1996 currently in receipt of accidental
death benefits with an average age of approximately 53.3, average number
of years in receipt of an accidental death benefit of 8.8 years, and an
average annual pension benefit of approximately $36,200.
ACTUARIAL ASSUMPTIONS AND METHODS: The additional APVB presented here-
in have been calculated based on the actuarial assumptions and methods
in effect for the Preliminary June 30, 2016 (Lag) actuarial valuations
used to determine the Preliminary Fiscal Year 2018 employer contrib-
utions of NYCERS. Also, for purposes of this Fiscal Note, we have
assumed that the escalation of 3% per year provided historically to this
benefit will continue in the future.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Pension Funds and Retire-
ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the
Conference of Consulting Actuaries and a Member of the American Academy
of Actuaries. I meet the Qualification Standards of the American Academy
of Actuaries to render the actuarial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2017-26 dated June 1,
2017 was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for use only during the
2017 Legislative Session.
