S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5763
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 14, 2019
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 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, ANY MEMBER WHO IS ELIGIBLE TO RETIRE AND WHO HAS  DIED
 WHILE  IN  ACTIVE  SERVICE, AND WHO HAS FILED AN APPLICATION FOR SERVICE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11209-01-9

 S. 5763                             2
 
 RETIREMENT LESS THAN THIRTY DAYS PRIOR TO DEATH, SHALL BE DEEMED TO HAVE
 RETIRED AND THE MEMBER'S DESIGNATED BENEFICIARY SHALL HAVE THE OPTION TO
 CHOOSE THE BENEFIT PROVIDED BY SERVICE RETIREMENT RATHER THAN THE  DEATH
 BENEFIT, PROVIDED, HOWEVER THAT IF THE DESIGNATED BENEFICIARY ELECTS THE
 SERVICE  RETIREMENT  BENEFIT  SUCH PERSON SHALL BE REQUIRED TO CHOOSE AN
 OPTION UNDER SECTION NINETY OF THIS ARTICLE.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after January 1, 2017.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5763--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 14, 2019
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- 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, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11209-03-9

 S. 5763--A                          2
 
 PROVISION  OF LAW, 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, SHALL BE DEEMED TO HAVE
 RETIRED AND THE MEMBER'S DESIGNATED BENEFICIARY SHALL HAVE THE OPTION TO
 CHOOSE  THE BENEFIT PROVIDED BY SERVICE RETIREMENT RATHER THAN THE DEATH
 BENEFIT, PROVIDED, HOWEVER THAT IF THE DESIGNATED BENEFICIARY ELECTS THE
 SERVICE RETIREMENT BENEFIT SUCH PERSON SHALL BE REQUIRED  TO  CHOOSE  AN
 OPTION UNDER SECTION NINETY OF THIS ARTICLE.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after January 1, 2017.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow a deceased member's designated  beneficiary  the
 option  to  choose the survivor's benefit provided by service retirement
 or the member's active death benefit, provided the member is (1)  eligi-
 ble  to  retire  (on  the day before the date of death), (2) has died in
 active service, and (3) has FILED an application for service  retirement
 less  than  thirty  days  prior  to  death. The date used for the deemed
 service retirement will be the day prior to  the  member's  death.  This
 bill will include deaths which occurred on or after January 1, 2017.
   If  this  bill  is  enacted,  the  cost  will depend upon the deceased
 member's age, service, salary, plan, and the optional form  selected  by
 the member's designated beneficiary. For certain alternative options, as
 permitted  under the Retirement and Social Security Law §90, §447, §514,
 and §610, there will be an estimated additional cost of up to eight  (8)
 times  the salary of a deceased member. This cost assumes that the post-
 retirement death benefit will be payable on behalf of  eligible  members
 only when the service retirement form is selected.
   The  number of members and beneficiaries who could be affected by this
 legislation cannot be readily  determined,  but  it  is  estimated  that
 approximately  250  beneficiaries could benefit from this provision each
 year. Pursuant to Section 25 of the Retirement and Social Security  Law,
 those costs arising would be borne solely by the State of New York.
   In  addition  to  the  per person costs stated above, there will be an
 administrative cost to implement the provisions of this legislation.
   Summary of relevant resources:
   The membership data used in  measuring  the  impact  of  the  proposed
 change  was  the same as that used in the March 31, 2018 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2018
 Report  of  the  Actuary  and  the  2018  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in the  2015,
 2016,  2017  and  2018  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, 2018
 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 30, 2019, and intended for use only  during
 the  2019  Legislative Session, is Fiscal Note No. 2019-104, prepared by
 the Actuary for the New York State and Local Retirement System.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5763--B
     Cal. No. 926
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 14, 2019
                                ___________
 
 Introduced  by Sens. SKOUFIS, ADDABBO, BIAGGI, CARLUCCI, RITCHIE -- 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  commit-
   tee  --  reported  favorably from said committee, ordered to first and
   second report, ordered to a third reading, passed by Senate and deliv-
   ered to the Assembly, recalled, vote reconsidered, restored  to  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, 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD11209-09-9

 S. 5763--B                          2
 
 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
 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 and  shall  be  deemed  to
 have been in full force and effect on and after January 1, 2017.
   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 and option election form
 filed  by  the  member,  resulting in payment of a survivor's benefit in
 lieu of the member's active death benefit, provided the  member  is  (1)
 eligible  to  retire (on the day before the date of death), (2) has died
 in active service, (3) has FILED an application for  service  retirement
 less  than  thirty  days  prior  to  death,  and (4) has FILED an option
 election form prior to death. The  date  used  for  the  deemed  service
 retirement  will  be the day prior to the member's death. This bill will
 include deaths which occurred on or after January 1, 2017.
   If this bill is enacted,  the  cost  will  depend  upon  the  deceased
 member's  age,  service,  salary, pan, and the optional form selected by
 the member on the option election form filed with the New York State and
 Local Employees' Retirement  System  (NYSLERS).  For  standard  options,
 there  will  be an estimated additional cost of up to five (5) times the
 salary of a deceased member. This cost assumes that the  post-retirement
 death  benefit  will  be payable on behalf of eligible members only when
 the service retirement form is selected.
   The number of members and beneficiaries who could be affected by  this
 legislation  cannot  be  readily  determined,  but  it is estimated that
 approximately 450 beneficiaries could benefit from this  provision  each
 year. Those costs arising would be shared and spread by the State of New
 York and the participating employers in NYSLERS.
   In  addition  to  the  per person costs stated above, there will be an
 administrative cost to implement the provisions of this legislation.
   Summary of relevant resources:
   The membership data used in  measuring  the  impact  of  the  proposed
 change  was  the same as that used in the March 31, 2018 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2018
 Report  of  the  Actuary  and  the  2018  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in the  2015,
 2016,  2017  and  2018  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, 2018
 New  York  State  and  Local  Retirement System Financial Statements and
 Supplementary Information.

 S. 5763--B                          3

   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 June 12, 2019, and intended for use only during
 the 2019 Legislative Session, is Fiscal Note No. 2019-140,  prepared  by
 the Actuary for the New York State and Local Retirement System.