S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9143
 
                           I N  A S S E M B L Y
 
                             February 8, 2024
                                ___________
 
 Introduced  by M. of A. TAPIA -- read once and referred to the Committee
   on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   death benefits for the beneficiaries of certain members of the retire-
   ment system
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The retirement and social security law is amended by adding
 a new section 63-j to read as follows:
   § 63-J. DEATH BENEFITS FOR STATE-PAID JUDGES AND JUSTICES. A. AS  USED
 IN  THIS  SECTION,  THE  TERM "JUDGE OR JUSTICE" SHALL MEAN A STATE-PAID
 JUDGE OR JUSTICE OF THE UNIFIED COURT SYSTEM INCLUDING A  RETIRED  JUDGE
 OF  THE  COURT OF APPEALS OR RETIRED JUSTICE OF THE SUPREME COURT WHO IS
 SERVING AS A JUSTICE OF THE SUPREME COURT PURSUANT TO  CERTIFICATION  BY
 THE  ADMINISTRATIVE  BOARD  OF THE COURTS IN ACCORDANCE WITH SECTION ONE
 HUNDRED FOURTEEN OR ONE HUNDRED FIFTEEN OF THE JUDICIARY LAW, OR A HOUS-
 ING JUDGE OF THE CIVIL COURT OF THE CITY OF NEW YORK.
   B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE A JUDGE
 OR JUSTICE WOULD HAVE BEEN ENTITLED TO A SERVICE RETIREMENT  BENEFIT  AT
 THE  TIME  OF  HIS  OR HER DEATH AND WHERE HIS OR HER DEATH OCCURS ON OR
 AFTER THE EFFECTIVE DATE OF THIS SECTION, THE BENEFICIARY  OR  BENEFICI-
 ARIES MAY ELECT TO RECEIVE, IN A LUMP SUM, AN AMOUNT PAYABLE WHICH SHALL
 BE EQUAL TO THE PENSION RESERVE THAT WOULD HAVE BEEN ESTABLISHED HAD THE
 MEMBER  RETIRED  ON  THE  DATE  OF HIS OR HER DEATH, OR THE VALUE OF THE
 DEATH  BENEFIT  AND  THE  RESERVE-FOR-INCREASED-TAKE-HOME-PAY,  IF  ANY,
 WHICHEVER IS GREATER.
   § 2. The retirement and social security law is amended by adding a new
 section 508-d to read as follows:
   §  508-D.  DEATH  BENEFITS  FOR STATE-PAID JUDGES AND JUSTICES. A.  AS
 USED IN THIS SECTION, THE TERM "JUDGE OR JUSTICE" SHALL  MEAN  A  STATE-
 PAID  JUDGE  OR  JUSTICE OF THE UNIFIED COURT SYSTEM INCLUDING A RETIRED
 JUDGE OF THE COURT OF APPEALS OR RETIRED JUSTICE OF  THE  SUPREME  COURT
 WHO  IS  SERVING  AS  A JUSTICE OF THE SUPREME COURT PURSUANT TO CERTIF-
 ICATION BY THE ADMINISTRATIVE BOARD OF THE  COURTS  IN  ACCORDANCE  WITH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10201-06-4
 A. 9143                             2
 
 SECTION  ONE  HUNDRED  FOURTEEN  OR ONE HUNDRED FIFTEEN OF THE JUDICIARY
 LAW, OR A HOUSING JUDGE OF THE CIVIL COURT OF THE CITY OF NEW YORK.
   B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE A JUDGE
 OR  JUSTICE  WOULD HAVE BEEN ENTITLED TO A SERVICE RETIREMENT BENEFIT AT
 THE TIME OF HIS OR HER DEATH AND WHERE HIS OR HER  DEATH  OCCURS  ON  OR
 AFTER  THE  EFFECTIVE DATE OF THIS SECTION, THE BENEFICIARY OR BENEFICI-
 ARIES MAY ELECT TO RECEIVE, IN A LUMP SUM, AN AMOUNT PAYABLE WHICH SHALL
 BE EQUAL TO THE PENSION RESERVE THAT WOULD HAVE BEEN ESTABLISHED HAD THE
 MEMBER RETIRED ON THE DATE OF HIS OR HER DEATH,  OR  THE  VALUE  OF  THE
 DEATH  BENEFIT  AND  THE  RESERVE-FOR-INCREASED-TAKE-HOME-PAY,  IF  ANY,
 WHICHEVER IS GREATER.
   § 3. The retirement and social security law is amended by adding a new
 section 606-d to read as follows:
   § 606-D. DEATH BENEFITS FOR STATE-PAID JUDGES AND  JUSTICES.  A.    AS
 USED  IN  THIS  SECTION, THE TERM "JUDGE OR JUSTICE" SHALL MEAN A STATE-
 PAID JUDGE OR JUSTICE OF THE UNIFIED COURT SYSTEM  INCLUDING  A  RETIRED
 JUDGE  OF  THE  COURT OF APPEALS OR RETIRED JUSTICE OF THE SUPREME COURT
 WHO IS SERVING AS A JUSTICE OF THE SUPREME  COURT  PURSUANT  TO  CERTIF-
 ICATION  BY  THE  ADMINISTRATIVE  BOARD OF THE COURTS IN ACCORDANCE WITH
 SECTION ONE HUNDRED FOURTEEN OR ONE HUNDRED  FIFTEEN  OF  THE  JUDICIARY
 LAW, OR A HOUSING JUDGE OF THE CIVIL COURT OF THE CITY OF NEW YORK.
   B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE A JUDGE
 OR  JUSTICE  WOULD HAVE BEEN ENTITLED TO A SERVICE RETIREMENT BENEFIT AT
 THE TIME OF HIS OR HER DEATH AND WHERE HIS OR HER  DEATH  OCCURS  ON  OR
 AFTER  THE  EFFECTIVE DATE OF THIS SECTION, THE BENEFICIARY OR BENEFICI-
 ARIES MAY ELECT TO RECEIVE, IN A LUMP SUM, AN AMOUNT PAYABLE WHICH SHALL
 BE EQUAL TO THE PENSION RESERVE THAT WOULD HAVE BEEN ESTABLISHED HAD THE
 MEMBER RETIRED ON THE DATE OF HIS OR HER DEATH,  OR  THE  VALUE  OF  THE
 DEATH  BENEFIT  AND  THE  RESERVE-FOR-INCREASED-TAKE-HOME-PAY,  IF  ANY,
 WHICHEVER IS GREATER.
   §  4.  All  past  service  costs  associated  with  implementing   the
 provisions  of  this act shall be borne by the state of New York and may
 be amortized over a period of ten years.
   § 5. Notwithstanding any other provision of law to the contrary,  none
 of  the  provisions  of  this  act shall be subject to the appropriation
 requirement of section 25 of the retirement and social security law.
   § 6. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would modify the in-service  death  benefit  for  retirement
 eligible  members  of the New York State and Local Employees' Retirement
 System who are employed as state-paid judges or justices of the  Unified
 Court  System.  The  in-service  death  benefit will be the value of the
 pension reserve as if the member had retired on their date of death.
   If this bill is enacted during the 2024 Legislative Session, we antic-
 ipate that there will be an increase of approximately  $243,000  in  the
 annual contributions of the State of New York for the fiscal year ending
 March  31,  2025.  In  future  years, this cost will vary as the billing
 rates and salary of the affected members change.
   In addition to the annual contributions discussed above, there will be
 an immediate past service cost of approximately $3.86 million which will
 be borne by the State of New York as a one-time payment.  This  estimate
 assumes  that payment will be made on March 1, 2025. If the State of New
 York elects to amortize this cost over a 10-year period,  the  cost  for
 each year including interest would be $493,000.
 A. 9143                             3
 
   These  estimated costs are based on 1,148 affected members employed by
 the State of New York, with annual salary of approximately $222  million
 as of March 31, 2023.
   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.
   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 January 3, 2024, and intended for use only during
 the 2024 Legislative Session, is Fiscal Note No.  2024-13,  prepared  by
 the Actuary for the New York State and Local Retirement System.