S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10570
 
                           I N  A S S E M B L Y
 
                               June 4, 2024
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Zebrowski,
   Pheffer Amato) -- (at request of the State Comptroller) --  read  once
   and referred to the Committee on Governmental Employees
 
 AN  ACT  to amend the retirement and social security law, in relation to
   authorizing beneficiaries to choose pension benefits or a death  bene-
   fit in certain circumstances

   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]  SUCH  MEMBER  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 subdivi-
 sion f of section forty of this  article,  or  while  entitled  to  make
 application for a vested retirement allowance pursuant to section seven-
 ty-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]  SUCH  MEMBER'S  retirement,
 which  shall  be  not less than fifteen nor more than ninety days subse-
 quent 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  arti-
 cle,  shall  be  processed  in  the regular manner, provided that if the
 application filed simultaneously therewith under either of such subdivi-
 sions is granted, then and in that event the retirement allowance grant-
 ed in accordance with the provisions of this section shall be  appropri-
 ately  adjusted.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, FOR ANY
 MEMBER WHO IS ELIGIBLE TO RETIRE, WHO HAS DIED WHILE IN ACTIVE  SERVICE,
 AND WHO HAS FILED AN APPLICATION FOR SERVICE RETIREMENT LESS THAN NINETY
 DAYS  PRIOR TO DEATH, SUCH MEMBER'S DESIGNATED OPTION ELECTION BENEFICI-
 ARY OR BENEFICIARIES, IF AN OPTION ELECTION  HAS  BEEN  FILED  PRIOR  TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15350-04-4
 A. 10570                            2
 
 DEATH,  OR  THE  BENEFICIARY  OR  BENEFICIARIES DESIGNATED FOR THE DEATH
 BENEFIT, IF NO OPTION ELECTION WAS FILED PRIOR TO DEATH, 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  AS  PROVIDED  BY LAW. IF THE MEMBER'S BENEFICIARY OR
 BENEFICIARIES ELECT THE SERVICE RETIREMENT BENEFIT, THE MEMBER SHALL  BE
 DEEMED  TO HAVE RETIRED ON THE DAY BEFORE THE MEMBER'S DATE OF DEATH. IF
 THERE ARE MULTIPLE OPTION BENEFICIARIES AND  SUCH  BENEFICIARIES  CANNOT
 AGREE  ON THE CHOICE BETWEEN THE DEATH BENEFIT OR THE SERVICE RETIREMENT
 UNDER AN AGREED UPON OPTION, THE SERVICE  RETIREMENT  BENEFIT  SHALL  BE
 PAYABLE UNDER THE OPTION ELECTION FORM FILED BY THE MEMBER PRIOR TO SUCH
 MEMBER'S DEATH. IF THERE ARE MULTIPLE DEATH BENEFICIARIES AND SUCH BENE-
 FICIARIES  CANNOT  AGREE  ON THE CHOICE BETWEEN THE DEATH BENEFIT OR THE
 SERVICE RETIREMENT UNDER AN AGREED UPON OPTION, THE DEATH BENEFIT  SHALL
 BE PAYABLE.
   § 2. Subdivision a of section 370 of the retirement and social securi-
 ty  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]  SUCH  MEMBER  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 subdivi-
 sion f of section three hundred forty of this article or while  entitled
 to  make  application  for  a  vested  retirement  allowance pursuant to
 section three hundred seventy-six of this title. Any such member  desir-
 ing to retire shall execute and file with the comptroller an application
 for  retirement,  which shall specify the effective date of [his or her]
 SUCH MEMBER'S 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  chapter,  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] NINETY days prior to death, [shall
 be deemed to have retired and] the member's designated  OPTION  ELECTION
 beneficiary OR BENEFICIARIES, IF AN OPTION ELECTION HAS BEEN FILED PRIOR
 TO  DEATH,  OR THE BENEFICIARY OR BENEFICIARIES DESIGNATED FOR THE DEATH
 BENEFIT, IF NO OPTION ELECTION WAS FILED PRIOR TO DEATH, 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 three hundred ninety of this article] AS
 PROVIDED BY LAW. IF THE MEMBER'S BENEFICIARY OR BENEFICIARIES ELECT  THE
 SERVICE  RETIREMENT  BENEFIT, THE MEMBER SHALL BE DEEMED TO HAVE RETIRED
 ON THE DAY BEFORE THE MEMBER'S DATE OF  DEATH.  IF  THERE  ARE  MULTIPLE
 OPTION  BENEFICIARIES  AND SUCH BENEFICIARIES CANNOT AGREE ON THE CHOICE
 BETWEEN THE DEATH BENEFIT OR THE SERVICE RETIREMENT UNDER AN AGREED UPON
 OPTION, THE SERVICE RETIREMENT BENEFIT SHALL BE PAYABLE UNDER THE OPTION
 ELECTION FORM FILED BY THE MEMBER PRIOR TO SUCH MEMBER'S DEATH. IF THERE
 A. 10570                            3
 
 ARE MULTIPLE DEATH BENEFICIARIES AND SUCH BENEFICIARIES CANNOT AGREE  ON
 THE  CHOICE BETWEEN THE DEATH BENEFIT OR THE SERVICE RETIREMENT UNDER AN
 AGREED UPON OPTION, THE DEATH BENEFIT SHALL BE PAYABLE.
   §  3.  Notwithstanding any other provision of law to the contrary, the
 provisions of this act shall not be subject to section 25 of the retire-
 ment and social security law.
   § 4. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would allow a deceased member's beneficiary the  ability  to
 select  between  the active member death benefit or a survivor's benefit
 payable under any optional form of payment elected by said  beneficiary,
 provided that the member
   1)  was  eligible  to  retire as of the day immediately prior to their
 death,
   2) has died in active service, and
   3) has FILED an application for service retirement  less  than  ninety
 days prior to their death.
   If an option election form was filed by the member prior to death, the
 beneficiary  listed  on  such option election form shall be permitted to
 select between the active death benefit or a survivor's benefit.  If  no
 option  election form was filed by the member prior to death, the active
 death beneficiary shall be permitted to select between the active  death
 benefit or a survivor's benefit.
   When  the  survivor's  benefit  is  selected,  the beneficiary will be
 permitted to file their own option election form determining the  survi-
 vor's  benefit payable and the member will be deemed to have retired the
 day prior to their death.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System  (NYSLERS),  if  this bill is enacted during the 2024
 Legislative Session, the cost will depend  upon  the  deceased  member's
 age, service, salary, plan, and the optional form elected by the benefi-
 ciary.  For standard options, there will be an estimated additional cost
 of five (5) times the salary of the deceased member, including the  cost
 of  the post-retirement death benefit. All costs arising would be shared
 and spread by the State of New York and all participating  employers  in
 the NYSLERS.
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), if this bill is  enacted  during  the
 2024  Legislative  Session,  the  cost  will  depend  upon  the deceased
 member's age, service, salary, plan, and the optional  form  elected  by
 the beneficiary. For standard options, no additional cost is expected to
 arise  in  NYSLPFRS. Any costs arising would be shared and spread by the
 State of New York and all participating employers in the NYSLPFRS.
   The number of beneficiaries who could be affected by this  legislation
 cannot  be  readily  determined. However, it is estimated that more than
 600 beneficiaries could benefit from this provision each year.
   Summary of relevant resources:
   Membership data as of March 31, 2023 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2023 actuari-
 al  valuation.    Distributions and other statistics can be found in the
 2023 Report of the Actuary and the 2023 Annual  Comprehensive  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2023
 Annual Report to the  Comptroller  on  Actuarial  Assumptions,  and  the
 Codes,  Rules  and  Regulations  of  the  State  of  New York: Audit and
 Control.
 A. 10570                            4
 
   The Market Assets and GASB Disclosures are found in the March 31, 2023
 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  May 16, 2024, and intended for use only during
 the 2024 Legislative Session, is Fiscal Note No. 2024-188,  prepared  by
 the Actuary for the New York State and Local Retirement System.