LBD09925-03-1
S. 6483 2
1989 [150.0%] 157.5%
1990 [142.7%] 150.0%
1991 [135.7%] 142.7%
1992 [128.8%] 135.7%
1993 [122.1%] 128.8%
1994 [115.7%] 122.1%
1995 [109.4%] 115.7%
1996 [103.3%] 109.4%
1997 [97.4%] 103.3%
1998 [91.6%] 97.4%
1999 [86.0%] 91.6%
2000 [80.6%] 86.0%
2001 [75.4%] 80.6%
2002 [70.2%] 75.4%
2003 [65.3%] 70.2%
2004 [60.5%] 65.3%
2005 [55.8%] 60.5%
2006 [51.3%] 55.8%
2007 [46.9%] 51.3%
2008 [42.6%] 46.9%
2009 [38.4%] 42.6%
2010 [34.4%] 38.4%
2011 [30.5%] 34.4%
2012 [26.7%] 30.5%
2013 [23.0%] 26.7%
2014 [19.4%] 23.0%
2015 [15.9%] 19.4%
2016 [12.6%] 15.9%
2017 [9.3%] 12.6%
2018 [6.1%] 9.3%
2019 [3.0%] 6.1%
2020 [0.0%] 3.0%
2021 0.0%
§ 2. Subdivision c of section 361-a of the retirement and social secu-
rity law, as amended by section 2 of item NNN of subpart B of part XXX
of chapter 58 of the laws of 2020, is amended to read as follows:
c. Commencing July first, two thousand [twenty] TWENTY-ONE the special
accidental death benefit paid to a 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, shall be esca-
lated by adding thereto an additional percentage of the salary of the
deceased member, as increased pursuant to subdivision b of this section,
in accordance with the following schedule:
calendar year of death
of the deceased member per centum
1977 or prior [256.5%]267.1%
1978 [246.1%]256.5%
1979 [236%]246.1%
1980 [226.2%]236%
1981 [216.7%]226.2%
1982 [207.5%]216.7%
1983 [198.5%]207.5%
1984 [189.8%]198.5%
1985 [181.4%]189.8%
1986 [173.2%]181.4%
1987 [165.2%]173.2%
S. 6483 3
1988 [157.5%]165.2%
1989 [150.0%]157.5%
1990 [142.7%]150.0%
1991 [135.7%]142.7%
1992 [128.8%]135.7%
1993 [122.1%]128.8%
1994 [115.7%]122.1%
1995 [109.4%]115.7%
1996 [103.3%]109.4%
1997 [97.4%]103.3%
1998 [91.6%]97.4%
1999 [86.0%]91.6%
2000 [80.6%]86.0%
2001 [75.4%]80.6%
2002 [70.2%]75.4%
2003 [65.3%]70.2%
2004 [60.5%]65.3%
2005 [55.8%]60.5%
2006 [51.3%]55.8%
2007 [46.9%]51.3%
2008 [42.6%]46.9%
2009 [38.4%]42.6%
2010 [34.4%]38.4%
2011 [30.5%]34.4%
2012 [26.7%]30.5%
2013 [23.0%]26.7%
2014 [19.4%]23.0%
2015 [15.9%]19.4%
2016 [12.6%]15.9%
2017 [9.3%]12.6%
2018 [6.1%]9.3%
2019 [3.0%]6.1%
2020 [0.0%]3.0%
2021 0.0%
§ 3. This act shall take effect July 1, 2021.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend both the General Municipal Law and the Retire-
ment and Social Security Law to increase the salary used in the computa-
tion of the special accidental death benefit by 3% in cases where the
date of death was before 2021.
Insofar as this bill would amend the Retirement and Social Security
Law, it is estimated that there would be an additional annual cost of
approximately $654,000 above the approximately $14.7 million current
annual cost of this benefit. This cost would be shared by the State of
New York and all participating employers of the New York State and Local
Police and Fire Retirement System.
Summary of relevant resources:
Membership data as of March 31, 2020 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2020 actuari-
al valuation. Distributions and other statistics can be found in the
2020 Report of the Actuary and the 2020 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2020
Annual Report to the Comptroller on Actuarial Assumptions, and the
Codes, Rules and Regulations of the State of New York: Audit and
Control.
S. 6483 4
The Market Assets and GASB Disclosures are found in the March 31, 2020
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 17, 2021, and intended for use only during
the 2021 Legislative Session, is Fiscal Note No. 2021-102, prepared by
the Actuary for the New York State and Local Retirement System.
SUMMARY OF BILL: This proposed legislation would amend General Munici-
pal Law (GML) Section 208-f(c) to increase certain Special Accidental
Death Benefits (SADB) for surviving spouses, dependent children, and
certain other individuals (Eligible Beneficiaries) of former uniformed
employees of the City of New York and the New York City Health and
Hospitals Corporation, and for certain former employees of the Tribor-
ough Bridge and Tunnel Authority, who were members of certain New York
City Retirement Systems and Pension Funds (NYCRS) and died as a natural
and proximate result of an accident sustained in the performance of
duty.
Effective Date: July 1, 2021.
BACKGROUND: Under the GML, the basic SADB is defined as:
The salary of the deceased member at date of death (or, in certain
instances, a greater salary based on a higher rank or other status)
(Final Salary), less the following payments to an Eligible Beneficiary:
* Any NYCRS death benefit as adjusted by any Supplementation or Cost-
of-Living Adjustment (COLA),
* Any Social Security death benefit, and
* Any Workers' Compensation benefit.
The SADB is paid to the deceased member's surviving spouse, if alive.
If the spouse is no longer alive, the SADB is paid to the deceased
member's children until age eighteen or until age twenty-three if a
student. If neither a spouse nor a dependent child is alive, the SADB
may be paid to certain other individuals, if eligible, in accordance
with certain laws related to the World Trade Center attack.
The GML also provides that the SADB is subject to escalation based on
the calendar year in which the former member died. The SADB has tradi-
tionally been increased by a cumulative, incremental percentage of Final
Salary based on the calendar year of the member's death.
IMPACT ON BENEFITS: With respect to the NYCRS, the proposed legis-
lation would impact the SADB payable to certain survivors of members of
the:
* New York City Employees' Retirement System (NYCERS),
* New York City Police Pension Fund (POLICE), or
* New York City Fire Pension Fund (FIRE),
and who were employed by one of the following employers in certain
positions:
* New York City Police Department - Uniformed Position,
* New York City Fire Department - Uniformed Position,
* New York City Department of Sanitation - Uniformed Position,
* New York City Housing Authority - Uniformed Position,
* New York City Transit Authority - Uniformed Position,
* New York City Department of Correction - Uniformed Position,
* New York City - Uniformed Position as Emergency Medical Technician
(EMT),
S. 6483 5
* New York City Health and Hospitals Corporation - Uniformed Position
as EMT, or
* Triborough Bridge and Tunnel Authority - Bridge and Tunnel Position.
Under the proposed legislation, effective July 1, 2021, an additional
3.0% of Final Salary would be applied to the SADB paid due to deaths
occurring in each calendar year on and after 1977. The SADB for deaths
occurring prior to 1977 would receive the same escalation as deaths
occurring in 1977.
FINANCIAL IMPACT - PRESENT VALUES: Based on the Eligible Beneficiaries
of deceased NYCRS members who would be impacted by this proposed legis-
lation and the actuarial assumptions and methods described herein, the
enactment of this proposed legislation would increase the Present Value
of Future Benefits (PVFB) by approximately $55.0 million.
FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: As a result of the
past four decades' practice of providing 3.0% COLAs on the SADB each
year, and the likelihood that COLAs will continue to be granted in the
future, the Actuary assumes that the SADB benefit will continue to
increase 3.0% per year in the future in determining NYCRS employer
contributions. Therefore, the costs of this proposed legislation have
already been accounted for and will not result in a further increase in
employer contributions. There will, however, be a decrease in employer
contributions if the proposed legislation is not enacted.
In accordance with Section 13-638.2(k-2) of the Administrative Code of
the City of New York (ACCNY), new Unfunded Accrued Liability to benefit
changes are to be amortized as determined by the Actuary, but are gener-
ally amortized over the remaining working lifetime of those impacted by
the benefit changes. However, since changes in the SADB COLA paid are
not known in advance, the decrease in expected pension payments due to
this legislation not passing would be treated as an actuarial gain.
These actuarial gains would be amortized over a 15-year period (14
payments under the One-Year Lag Methodology (OYLM)) using level dollar
payments. This would result in a decrease in NYCRS annual employer
contributions of approximately $6.5 million each year.
CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is
assumed that the changes in the PVFB and annual employer contributions
if this proposed legislation fails to pass, would be reflected for the
first time in the Final June 30, 2022 actuarial valuations of NYCERS,
POLICE, and FIRE. In accordance with the OYLM used to determine employer
contributions, the decrease in employer contributions would first be
reflected in Fiscal Year 2024.
CENSUS DATA: The estimates presented herein are based upon the census
data for such Eligible Beneficiaries provided by NYCRS.
Annual Accidental Death
Number of Deceased Members Benefit Prior to Proposed
Retirement System with Eligible Survivors July 1, 2021 Increase
($ Millions)
NYCERS 77 $ 7.4
POLICE 456 54.3
FIRE 601 77.1
Total 1,134 $138.8
ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the PVFB and annual
employer contributions presented herein have been calculated based on
the actuarial assumptions and methods in effect for the June 30, 2019
S. 6483 6
(Lag) actuarial valuations used to determine the Preliminary Fiscal Year
2021 employer contributions of NYCERS, POLICE, and FIRE.
The Actuary is proposing a set of changes for use beginning with the
June 30, 2019 (Lag) actuarial valuations of NYCERS, POLICE, and FIRE to
determine the Final Fiscal Year 2021 Employer Contributions (2021 A&M).
If the 2021 A&M is enacted, it is estimated that it would produce PVFB
and annual employer contribution results that are not materially differ-
ent than the results shown above.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the realization of the actuarial assumptions used, as well as
certain demographic characteristics of NYCERS, POLICE and FIRE and other
exogenous factors such as investment, contribution, and other risks. If
actual experience deviates from actuarial 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 of NYCERS, POLICE, and
FIRE and other New York City agencies to implement the proposed legis-
lation.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Retirement Systems and
Pension Funds. I am a Fellow of the Society of Actuaries, an Enrolled
Actuary under the Employee Retirement Income and Security Act of 1974, a
Member of the American Academy of Actuaries, and a Fellow of the Confer-
ence of Consulting Actuaries. 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 2021-21 dated April 22,
2021 was prepared by the Chief Actuary for the New York City Employees'
Retirement System, the New York City Police Pension Fund, and New York
City Fire Pension Fund. This estimate is intended for use only during
the 2021 Legislative Session.
