S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5809
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 16, 2023
                                ___________
 
 Introduced  by  Sens.  GOUNARDES, THOMAS, WEIK -- 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, the education
   law and the administrative code of the city of New York,  in  relation
   to providing cost-of-living adjustments

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision g of section 78-a of the retirement and  social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse of a
 deceased retired member who retired under an option which provides  that
 benefits  are to be continued for life to the surviving spouse after the
 death of the retired member,  shall  be  entitled  to  receive  benefits
 pursuant  to  this  section.  Said benefits shall be [fifty] ONE HUNDRED
 percent of the monthly benefits which the pensioner would  be  receiving
 pursuant  to  this  section  if  living,  and  shall commence (i) with a
 payment for the month of September, two thousand  TWENTY-FOUR,  or  (ii)
 the  month following the death of the deceased retired member, whichever
 is later.
   § 2. Subdivision g of section 378-a of the retirement and social secu-
 rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse of a
 deceased retired member who retired under an option which provides  that
 benefits  are to be continued for life to the surviving spouse after the
 death of the retired member,  shall  be  entitled  to  receive  benefits
 pursuant  to  this  section.  Said benefits shall be [fifty] ONE HUNDRED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08560-02-3
              

 S. 5809                             2
 
 percent of the monthly benefits which the pensioner would  be  receiving
 pursuant  to  this  section  if  living,  and  shall commence (i) with a
 payment for the month of September, two thousand  TWENTY-FOUR,  or  (ii)
 the  month following the death of the deceased retired member, whichever
 is later.
   § 3. Subdivision g of section 532-a of the education law, as added  by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse of a
 deceased retired member who retired under an option which provides  that
 benefits  are to be continued for life to the surviving spouse after the
 death of the retired member,  shall  be  entitled  to  receive  benefits
 pursuant  to  this  section.  Said benefits shall be [fifty] ONE HUNDRED
 percent of the monthly benefits which the pensioner would  be  receiving
 pursuant  to  this  section  if  living,  and  shall commence (i) with a
 payment for the month of September, two thousand  TWENTY-FOUR,  or  (ii)
 the  month following the death of the deceased retired member, whichever
 is later.
   § 4. Subdivision g of section 13-696 of the administrative code of the
 city of New York, as added by chapter  125  of  the  laws  of  2000,  is
 amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER,  TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse of a
 deceased retired member of  the  New  York  city  employees'  retirement
 system, the New York city teachers' retirement system, the New York city
 police  pension  fund, the New York city fire department pension fund or
 the New York city board of education retirement system who retired under
 an option which provides that benefits are to be continued for  life  to
 the surviving spouse after the death of the member, shall be entitled to
 receive  a  benefit  pursuant  to  this  section.  Said benefit shall be
 [fifty] ONE HUNDRED percent of the monthly benefit which  the  pensioner
 would  be receiving if living, and shall commence (i) with a payment for
 the month of September, two thousand  TWENTY-FOUR,  or  (ii)  the  month
 following the death of the deceased retired member, whichever is later.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   As  it relates to the New York State Teachers' Retirement System, this
 bill would amend subdivision g of Section 532-a of the Education Law  to
 increase  the  cost-of-living  adjustment  (COLA)  benefit  to surviving
 spouse beneficiaries of deceased retirees who elected  an  option  which
 provides  a lifetime benefit to their surviving spouse.  The COLA survi-
 vor benefit would be equal to 100% of  the  monthly  benefit  which  the
 retiree  would  be receiving if alive. The current COLA survivor benefit
 is equal to 50% of the benefit the retiree would be receiving if  alive.
 This  increase  in  spousal survivor benefit would also be applicable to
 the "catch-up" supplementation provided under subdivision f to  eligible
 retirees  who  retired  before January 1, 1997. This benefit improvement
 would be effective in September of 2024.
   The annual cost to the employers of members of NYSTRS for this benefit
 is estimated to be $39.3 million or 0.21% of payroll  if  this  bill  is
 enacted.
   Member  data  is  from  the  System's  most recent actuarial valuation
 files, consisting of data provided by the employers  to  the  Retirement
 System.  Data  distributions and statistics can be found in the System's
 Annual Report.  System assets are as reported in the System's  financial
 statements and can also be found in the System's Annual Report. Actuari-
 S. 5809                             3
 
 al  assumptions and methods are provided in the System's Actuarial Valu-
 ation Report.
   The  source  of  this  estimate is Fiscal Note 2023-20 dated March 13,
 2023 prepared by the Office of the Actuary of the New York State  Teach-
 ers'  Retirement  System  and  is  intended for use only during the 2023
 Legislative Session.  I, Richard A. Young, am the Chief Actuary for  the
 New  York State Teachers' Retirement System. I am a member of the Ameri-
 can Academy of Actuaries and I meet the Qualification Standards  of  the
 American  Academy of Actuaries to render the actuarial opinion contained
 herein.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5809--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 16, 2023
                                ___________
 
 Introduced  by  Sens.  GOUNARDES, THOMAS, WEIK -- 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,  the  education
   law  and  the administrative code of the city of New York, in relation
   to providing cost-of-living adjustments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision g of section 78-a of the retirement and social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse  of  a
 deceased  retired member who retired under an option which provides that
 benefits are to be continued for life to the surviving spouse after  the
 death  of  the  retired  member,  shall  be entitled to receive benefits
 pursuant to this section. Said benefits shall  be  [fifty]  ONE  HUNDRED
 percent  of  the monthly benefits which the pensioner would be receiving
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment  for  the  month of September, two thousand TWENTY-FOUR, or (ii)
 the month following the death of the deceased retired member,  whichever
 is later.
   § 2. Subdivision g of section 378-a of the retirement and social secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse  of  a
 deceased  retired member who retired under an option which provides that
 benefits are to be continued for life to the surviving spouse after  the
 death  of  the  retired  member,  shall  be entitled to receive benefits
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08560-03-3
              

 S. 5809--A                          2
 
 pursuant to this section. Said benefits shall  be  [fifty]  ONE  HUNDRED
 percent  of  the monthly benefits which the pensioner would be receiving
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment  for  the  month of September, two thousand TWENTY-FOUR, or (ii)
 the month following the death of the deceased retired member,  whichever
 is later.
   §  3. Subdivision g of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse  of  a
 deceased  retired member who retired under an option which provides that
 benefits are to be continued for life to the surviving spouse after  the
 death  of  the  retired  member,  shall  be entitled to receive benefits
 pursuant to this section. Said benefits shall  be  [fifty]  ONE  HUNDRED
 percent  of  the monthly benefits which the pensioner would be receiving
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment  for  the  month of September, two thousand TWENTY-FOUR, or (ii)
 the month following the death of the deceased retired member,  whichever
 is later.
   § 4. Subdivision g of section 13-696 of the administrative code of the
 city  of  New  York,  as  added  by  chapter 125 of the laws of 2000, is
 amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse  of  a
 deceased  retired  member  of  the  New  York city employees' retirement
 system, the New York city teachers' retirement system, the New York city
 police pension fund, the New York city fire department pension  fund  or
 the New York city board of education retirement system who retired under
 an  option  which provides that benefits are to be continued for life to
 the surviving spouse after the death of the member, shall be entitled to
 receive a benefit pursuant  to  this  section.  Said  benefit  shall  be
 [fifty]  ONE  HUNDRED percent of the monthly benefit which the pensioner
 would be receiving if living, and shall commence (i) with a payment  for
 the  month  of  September,  two  thousand TWENTY-FOUR, or (ii) the month
 following the death of the deceased retired member, whichever is later.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   As it relates to the New York State Teachers' Retirement System,  this
 bill  would amend subdivision g of Section 532-a of the Education Law to
 increase the  cost-of-living  adjustment  (COLA)  benefit  to  surviving
 spouse  beneficiaries  of  deceased retirees who elected an option which
 provides a lifetime benefit to their surviving spouse.  The COLA  survi-
 vor  benefit  would  be  equal  to 100% of the monthly benefit which the
 retiree would be receiving if alive. The current COLA  survivor  benefit
 is  equal to 50% of the benefit the retiree would be receiving if alive.
 This increase in spousal survivor benefit would also  be  applicable  to
 the  "catch-up" supplementation provided under subdivision f to eligible
 retirees who retired before January 1, 1997.  This  benefit  improvement
 would be effective in September of 2024.
   The annual cost to the employers of members of NYSTRS for this benefit
 is  estimated  to  be  $39.3 million or 0.21% of payroll if this bill is
 enacted.
   Member data is from  the  System's  most  recent  actuarial  valuation
 files,  consisting  of  data provided by the employers to the Retirement
 System. Data distributions and statistics can be found in  the  System's
 Annual  Report.  System assets are as reported in the System's financial
 S. 5809--A                          3
 
 statements and can also be found in the System's Annual Report. Actuari-
 al assumptions and methods are provided in the System's Actuarial  Valu-
 ation Report.
   The  source  of  this  estimate is Fiscal Note 2023-20 dated March 13,
 2023 prepared by the Office of the Actuary of the New York State  Teach-
 ers'  Retirement  System  and  is  intended for use only during the 2023
 Legislative Session.  I, Richard A. Young, am the Chief Actuary for  the
 New  York State Teachers' Retirement System. I am a member of the Ameri-
 can Academy of Actuaries and I meet the Qualification Standards  of  the
 American  Academy of Actuaries to render the actuarial opinion contained
 herein.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would bill would provide an increase in the defined  benefit
 cost-of-living adjustment (COLA) for New York public retirement systems.
 Starting  with  a  payment in September 2024, the cost-of-living benefit
 payable to a surviving spouse who is eligible for COLA will be increased
 from fifty percent to one  hundred  percent  of  the  benefit  that  the
 pensioner would have received.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System (NYSLERS), pursuant to Section 25  of  the  Retirement
 and  Social Security Law, the increased costs would be borne entirely by
 the State of New York and would require an itemized appropriation suffi-
 cient to pay the cost of the provision. If this bill were enacted during
 the 2023 legislative session, the increase in the present value of bene-
 fits would be approximately $1.5 billion.
   In the NYSLERS, this benefit improvement will be funded by (1) billing
 a past service cost to cover retrospective  benefit  increases  and  (2)
 increasing the billing rates charged annually to cover prospective bene-
 fit increases, as follows:
   (1)  To  fund  retrospective  costs,  the  State  of  New York will be
 required to pay $1.60 billion (including interest) as of March 1, 2024.
   (2) To fund prospective costs, the annual contribution required of all
 participating employers in the NYSLERS is 0.04% of billable  salary,  or
 approximately  $4.5  million  to the State of New York and approximately
 $6.5 million to local participating employers in the fiscal year  ending
 March 31, 2025. This PERMANENT ANNUAL COST will vary in subsequent bill-
 ing  cycles  with changes in the billing rate and salary of the affected
 members.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  System (NYSLPFRS), the increased costs would be shared
 by the State of New York and the local participating  employers  in  the
 NYSLPFRS. If this bill were enacted during the 2023 legislative session,
 the  increase  in  the  present value of benefits would be approximately
 $158 million.
 
      NYSLPFRS            Increase in present    Increase in future
                            value benefits         contributions
      Tiers 1-5             $152 million            $85 million
      Tier 6                  $6 million            $73 million
      Total                 $158 million           $158 million
 
   In the NYSLPFRS, this benefit improvement will be funded by increasing
 the billing rates charged  annually  to  cover  both  retrospective  and
 prospective  benefit  increases. The annual contribution required of all
 participating employers in NYSLPFRS  is  0.4%  of  billable  salary,  or
 approximately  $3.4  million  to the State of New York and approximately
 S. 5809--A                          4
 
 $14 million to the local participating  employers  in  the  fiscal  year
 ending  March  31,  2025. This PERMANENT ANNUAL COST will vary in subse-
 quent billing cycles with changes in the billing rate and salary of  the
 affected members.
   Summary of relevant resources:
   Membership  data as of March 31, 2022 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2022  Report  of the Actuary and the 2022 Annual Comprehensive Financial
 Report.
   The actuarial assumptions and methods used are described in the  2020,
 2021,  and  2022  Annual  Report to the Comptroller on Actuarial Assump-
 tions, 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, 2022
 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 30, 2023, and intended for use only  during
 the  2023  Legislative  Session, is Fiscal Note No. 2023-79, 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
 ________________________________________________________________________
 
                                  5809--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 16, 2023
                                ___________
 
 Introduced  by Sens. GOUNARDES, HARCKHAM, THOMAS, WEIK -- 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  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the retirement and social security  law,  the  education
   law  and  the administrative code of the city of New York, in relation
   to providing cost-of-living adjustments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision g of section 78-a of the retirement and social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse  of  a
 deceased  retired member who retired under an option which provides that
 benefits are to be continued for life to the surviving spouse after  the
 death  of  the  retired  member,  shall  be entitled to receive benefits
 pursuant to this section. Said benefits shall  be  [fifty]  ONE  HUNDRED
 percent  of  the monthly benefits which the pensioner would be receiving
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment  for  the  month of September, two thousand TWENTY-FOUR, or (ii)
 the month following the death of the deceased retired member,  whichever
 is later.
   § 2. Subdivision g of section 378-a of the retirement and social secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse  of  a
 deceased  retired member who retired under an option which provides that
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08560-05-3
              

 S. 5809--B                          2
 
 benefits are to be continued for life to the surviving spouse after  the
 death  of  the  retired  member,  shall  be entitled to receive benefits
 pursuant to this section. Said benefits shall  be  [fifty]  ONE  HUNDRED
 percent  of  the monthly benefits which the pensioner would be receiving
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment  for  the  month of September, two thousand TWENTY-FOUR, or (ii)
 the month following the death of the deceased retired member,  whichever
 is later.
   §  3. Subdivision g of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse  of  a
 deceased  retired member who retired under an option which provides that
 benefits are to be continued for life to the surviving spouse after  the
 death  of  the  retired  member,  shall  be entitled to receive benefits
 pursuant to this section. Said benefits shall  be  [fifty]  ONE  HUNDRED
 percent  of  the monthly benefits which the pensioner would be receiving
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment  for  the  month of September, two thousand TWENTY-FOUR, or (ii)
 the month following the death of the deceased retired member,  whichever
 is later.
   § 4. Subdivision g of section 13-696 of the administrative code of the
 city  of  New  York,  as  added  by  chapter 125 of the laws of 2000, is
 amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FOUR,  the  surviving  spouse  of  a
 deceased  retired  member  of  the  New  York city employees' retirement
 system, the New York city teachers' retirement system, the New York city
 police pension fund, the New York city fire department pension  fund  or
 the New York city board of education retirement system who retired under
 an  option  which provides that benefits are to be continued for life to
 the surviving spouse after the death of the member, shall be entitled to
 receive a benefit pursuant  to  this  section.  Said  benefit  shall  be
 [fifty]  ONE  HUNDRED percent of the monthly benefit which the pensioner
 would be receiving if living, and shall commence (i) with a payment  for
 the  month  of  September,  two  thousand TWENTY-FOUR, or (ii) the month
 following the death of the deceased retired member, whichever is later.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   As it relates to the New York State Teachers' Retirement System,  this
 bill  would amend subdivision g of Section 532-a of the Education Law to
 increase the  cost-of-living  adjustment  (COLA)  benefit  to  surviving
 spouse  beneficiaries  of  deceased retirees who elected an option which
 provides a lifetime benefit to their surviving spouse.  The COLA  survi-
 vor  benefit  would  be  equal  to 100% of the monthly benefit which the
 retiree would be receiving if alive. The current COLA  survivor  benefit
 is  equal to 50% of the benefit the retiree would be receiving if alive.
 This increase in spousal survivor benefit would also  be  applicable  to
 the  "catch-up" supplementation provided under subdivision f to eligible
 retirees who retired before January 1, 1997.  This  benefit  improvement
 would be effective in September of 2024.
   The annual cost to the employers of members of NYSTRS for this benefit
 is  estimated  to  be  $39.3 million or 0.21% of payroll if this bill is
 enacted.
   Member data is from  the  System's  most  recent  actuarial  valuation
 files,  consisting  of  data provided by the employers to the Retirement
 S. 5809--B                          3
 
 System. Data distributions and statistics can be found in  the  System's
 Annual  Report.  System assets are as reported in the System's financial
 statements and can also be found in the System's Annual Report. Actuari-
 al  assumptions and methods are provided in the System's Actuarial Valu-
 ation Report.
   The source of this estimate is Fiscal Note  2023-20  dated  March  13,
 2023  prepared by the Office of the Actuary of the New York State Teach-
 ers' Retirement System and is intended for  use  only  during  the  2023
 Legislative  Session.  I, Richard A. Young, am the Chief Actuary for the
 New York State Teachers' Retirement System. I am a member of the  Ameri-
 can  Academy  of Actuaries and I meet the Qualification Standards of the
 American Academy of Actuaries to render the actuarial opinion  contained
 herein.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would bill would provide an increase in the defined benefit
 cost-of-living adjustment (COLA) for New York public retirement systems.
 Starting with a payment in September 2024,  the  cost-of-living  benefit
 payable to a surviving spouse who is eligible for COLA will be increased
 from  fifty  percent  to  one  hundred  percent  of the benefit that the
 pensioner would have received.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System  (NYSLERS),  pursuant to Section 25 of the Retirement
 and Social Security Law, the increased costs would be borne entirely  by
 the State of New York and would require an itemized appropriation suffi-
 cient to pay the cost of the provision. If this bill were enacted during
 the 2023 legislative session, the increase in the present value of bene-
 fits would be approximately $1.5 billion.
   In the NYSLERS, this benefit improvement will be funded by (1) billing
 a  past  service  cost  to cover retrospective benefit increases and (2)
 increasing the billing rates charged annually to cover prospective bene-
 fit increases, as follows:
   (1) To fund retrospective  costs,  the  State  of  New  York  will  be
 required to pay $1.60 billion (including interest) as of March 1, 2024.
   (2) To fund prospective costs, the annual contribution required of all
 participating  employers  in the NYSLERS is 0.04% of billable salary, or
 approximately $4.5 million to the State of New  York  and  approximately
 $6.5  million to local participating employers in the fiscal year ending
 March 31, 2025. This PERMANENT ANNUAL COST will vary in subsequent bill-
 ing cycles with changes in the billing rate and salary of  the  affected
 members.
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), the increased costs would  be  shared
 by  the  State  of New York and the local participating employers in the
 NYSLPFRS. If this bill were enacted during the 2023 legislative session,
 the increase in the present value of  benefits  would  be  approximately
 $158 million.
 
      NYSLPFRS            Increase in present    Increase in future
                            value benefits         contributions
      Tiers 1-5             $152 million            $85 million
      Tier 6                  $6 million            $73 million
      Total                 $158 million           $158 million
 
   In the NYSLPFRS, this benefit improvement will be funded by increasing
 the  billing  rates  charged  annually  to  cover both retrospective and
 prospective benefit increases. The annual contribution required  of  all
 S. 5809--B                          4
 
 participating  employers  in  NYSLPFRS  is  0.4%  of billable salary, or
 approximately $3.4 million to the State of New  York  and  approximately
 $14  million  to  the  local  participating employers in the fiscal year
 ending  March  31,  2025. This PERMANENT ANNUAL COST will vary in subse-
 quent billing cycles with changes in the billing rate and salary of  the
 affected members.
   Summary of relevant resources:
   Membership  data as of March 31, 2022 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2022  Report  of the Actuary and the 2022 Annual Comprehensive Financial
 Report.
   The actuarial assumptions and methods used are described in the  2020,
 2021,  and  2022  Annual  Report to the Comptroller on Actuarial Assump-
 tions, 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, 2022
 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 30, 2023, and intended for use only  during
 the  2023  Legislative  Session, is Fiscal Note No. 2023-79, prepared by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation, as it relates to  the  New
 York  City  Retirement  Systems  and  Pension Funds (NYCRS), would amend
 Section 13-696 of the Administrative Code of the City  of  New  York  to
 increase  the  Cost-of-Living  Adjustment (COLA), effective September 1,
 2024, to an eligible surviving spouse from 50% to 100% of the  COLA  the
 pensioner  would  be  receiving  if  still  alive  for the New York City
 Employees' Retirement System  (NYCERS),  the  New  York  City  Teachers'
 Retirement System (NYCTRS), the New York City Board of Education Retire-
 ment  System (BERS), the New York City Police Pension Fund (POLICE), and
 the New York City Fire Pension Fund (FIRE).
   Effective Date: Upon enactment.
   BACKGROUND: The COLA currently provides for an annual  increase  equal
 to  a  percentage  of the annual retirement allowance otherwise payable,
 computed without optional modification on the first $18,000  of  retire-
 ment  allowance.  That percentage is equal to 50% of the increase in the
 consumer price index (CPI) in the one-year period ending on the March 31
 prior to the COLA effective on the ensuing September 1.  The  percentage
 is  rounded to the next higher one-tenth of one percent and shall not be
 less than 1% nor more than 3%.
   The surviving spouse of a deceased retired member who retired under an
 option which provides that benefits are to be continued for life to  the
 surviving  spouse  after  the  death  of the retired member is currently
 entitled to receive a COLA equal to 50% of the COLA the pensioner  would
 be  receiving if living. This proposed legislation would change from 50%
 to 100% the percentage of COLA a surviving  spouse  receives  after  the
 death of the retired member.
   FINANCIAL  IMPACT:  The  estimated  financial  impact  to  NYCRS is an
 increase in Present Value of Future  Benefits  of  approximately  $658.3
 S. 5809--B                          5
 
 million  and  an  increase  in Fiscal Year 2024 annual employer contrib-
 utions of approximately $634.3 million.
   The  increase  in  Fiscal  Year  2024 annual employer contributions of
 $634.3 million is estimated to be $421.5 million for New York  City  and
 $212.8  million  for  the  other  obligors  of NYCRS. A breakdown of the
 financial impact by System is shown in the table below.
 
                    Additional                 Additional First Year
 NYCRS     Present Value of Future Benefits       Annual Employer
                    ($ Millions)                   Contributions*
                                                    ($ Millions)
 
 NYCERS               $402.6                           $382.8
 NYCTRS                183.8                            180.9
 BERS                   19.4                             18.9
 POLICE                 40.3                             40.1
 FIRE                   12.2                             11.6
     Total            $658.3                           $634.3
 * Total additional employer contributions after the first year are esti-
 mated to be approximately $12.2 million per year.
   New Unfunded Accrued Liability (UAL) attributable to  benefit  changes
 are  generally  amortized  over  the remaining working lifetime of those
 impacted by the benefit changes. For purposes of this  Fiscal  Note,  it
 has  been assumed that increases in UAL attributable to current retirees
 would be recognized immediately and that increases in  UAL  attributable
 to  active members would be amortized over periods ranging from 12 to 15
 years depending on the System (11 to  14  payments  under  One-Year  Lag
 Methodology) using level dollar payments.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the June 30, 2022 actuarial valuations of NYCRS  to  deter-
 mine the Preliminary Fiscal Year 2024 employer contributions.
   ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
 been  calculated based on the actuarial assumptions and methods used for
 the Preliminary Fiscal Year 2024 employer contributions of NYCRS.  Also,
 assumptions  for active members electing a form of pension at retirement
 that would continue a payment to a surviving spouse (ranging from 15% to
 30%) were made based on the distribution of  current  elections  and  an
 estimate of future elections.
   For  the  purposes of this Fiscal Note, it is assumed that the changes
 would be reflected for the first time in the  June  30,  2022  actuarial
 valuations  of NYCRS used to determine employer contributions for Fiscal
 Year 2024.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on the realization of the actuarial assumptions used, demograph-
 ics of the impacted population, and other factors  such  as  investment,
 contribution,  and other risks. If actual experience deviates from actu-
 arial 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  to  implement  the
 proposed legislation.
   STATEMENT  OF  ACTUARIAL  OPINION:  I, Marek Tyszkiewicz, am the Chief
 Actuary for, and independent of, the New York  City  Retirement  Systems
 S. 5809--B                          6
 
 and  Pension  Funds. I am an Associate of the Society of Actuaries and a
 Member of the American Academy of Actuaries. I am a member of NYCERS but
 do not believe it impairs my objectivity and 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 2023-71 dated June 2,
 2023 was prepared by the Chief Actuary for the New York City  Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2023 Legislative Session.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5809--C
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 16, 2023
                                ___________
 
 Introduced  by  Sens. GOUNARDES, ADDABBO, HARCKHAM, THOMAS, WEIK -- 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  --  committee  discharged,  bill  amended,  ordered  reprinted as
   amended and recommitted  to  said  committee  --  recommitted  to  the
   Committee on Civil Service and Pensions in accordance with Senate Rule
   6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the retirement and social security  law,  the  education
   law  and  the administrative code of the city of New York, in relation
   to providing cost-of-living adjustments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision g of section 78-a of the retirement and social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FIVE,  the  surviving  spouse  of  a
 deceased  retired member who retired under an option which provides that
 benefits are to be continued for life to the surviving spouse after  the
 death  of  the  retired  member,  shall  be entitled to receive benefits
 pursuant to this section. Said benefits shall  be  [fifty]  ONE  HUNDRED
 percent  of  the monthly benefits which the pensioner would be receiving
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment  for  the  month of September, two thousand TWENTY-FIVE, or (ii)
 the month following the death of the deceased retired member,  whichever
 is later.
   § 2. Subdivision g of section 378-a of the retirement and social secu-
 rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
 read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08560-12-4
              

 S. 5809--C                          2
 
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FIVE,  the  surviving  spouse  of  a
 deceased  retired member who retired under an option which provides that
 benefits are to be continued for life to the surviving spouse after  the
 death  of  the  retired  member,  shall  be entitled to receive benefits
 pursuant to this section. Said benefits shall  be  [fifty]  ONE  HUNDRED
 percent  of  the monthly benefits which the pensioner would be receiving
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment  for  the  month of September, two thousand TWENTY-FIVE, or (ii)
 the month following the death of the deceased retired member,  whichever
 is later.
   §  3. Subdivision g of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FIVE,  the  surviving  spouse  of  a
 deceased  retired member who retired under an option which provides that
 benefits are to be continued for life to the surviving spouse after  the
 death  of  the  retired  member,  shall  be entitled to receive benefits
 pursuant to this section. Said benefits shall  be  [fifty]  ONE  HUNDRED
 percent  of  the monthly benefits which the pensioner would be receiving
 pursuant to this section if  living,  and  shall  commence  (i)  with  a
 payment  for  the  month of September, two thousand TWENTY-FIVE, or (ii)
 the month following the death of the deceased retired member,  whichever
 is later.
   § 4. Subdivision g of section 13-696 of the administrative code of the
 city  of  New  York,  as  added  by  chapter 125 of the laws of 2000, is
 amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO  THOUSAND  TWENTY-FIVE,  the  surviving  spouse  of  a
 deceased  retired  member  of  the  New  York city employees' retirement
 system, the New York city teachers' retirement system, the New York city
 police pension fund, the New York city fire department pension  fund  or
 the New York city board of education retirement system who retired under
 an  option  which provides that benefits are to be continued for life to
 the surviving spouse after the death of the member, shall be entitled to
 receive a benefit pursuant  to  this  section.  Said  benefit  shall  be
 [fifty]  ONE  HUNDRED percent of the monthly benefit which the pensioner
 would be receiving if living, and shall commence (i) with a payment  for
 the  month  of  September,  two  thousand TWENTY-FIVE, or (ii) the month
 following the death of the deceased retired member, whichever is later.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide an increase in the  defined  benefit  cost-of-
 living  adjustment (COLA) for New York public retirement systems. Start-
 ing with a payment in September 2025, the cost-of-living benefit payable
 to a surviving spouse who is eligible for COLA will  be  increased  from
 fifty  percent  to one hundred percent of the benefit that the pensioner
 would have received.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System  (NYSLERS),  pursuant to Section 25 of the Retirement
 and Social Security Law, the increased costs would be borne entirely  by
 the State of New York and would require an itemized appropriation suffi-
 cient to pay the cost of the provision. If this bill were enacted during
 the 2024 Legislative Session, the increase in the present value of bene-
 fits would be approximately $1.7 billion.
 S. 5809--C                          3
 
   In the NYSLERS, this benefit improvement will be funded by (1) billing
 a  past  service  cost  to cover retrospective benefit increases and (2)
 increasing the billing rates charged annually to cover prospective bene-
 fit increases, as follows:
   (1)  To  fund  retrospective  costs,  the  State  of  New York will be
 required to pay $1.82 billion (including interest) as of March 1, 2025.
   (2) To fund prospective costs, the annual contribution required of all
 participating employers in NYSLERS  is  0.03%  of  billable  salary,  or
 approximately  $4.4  million  to the State of New York and approximately
 $6.6 million to the local participating employers.  This permanent annu-
 al cost will vary in subsequent billing cycles with changes in the bill-
 ing rate and salary of the affected members.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  System (NYSLPFRS), the increased costs would be shared
 by the State of New York and the local participating  employers  in  the
 NYSLPFRS. If this bill were enacted during the 2024 Legislative Session,
 the  increase  in  the  present value of benefits would be approximately
 $180 million.
        NYSLPFRS   Increase in present   Increase in required
                   value benefits        contributions
 
        Tiers 1-5  $173 million          $86 million
        Tier 6     $7 million            $94 million
        Total      $180 million          $180 million
 
   In the NYSLPFRS, this benefit improvement will be funded by increasing
 the billing rates charged  annually  to  cover  both  retrospective  and
 prospective  benefit increases.  The annual contribution required of all
 participating employers in NYSLPFRS  is  0.4%  of  billable  salary,  or
 approximately  $3.4  million  to the State of New York and approximately
 $14 million to the local participating employers. This permanent  annual
 cost  will vary in subsequent billing cycles with changes in the billing
 rate and salary of the affected members.
   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  26,  2024,  and intended for use only
 during the  2024  Legislative  Session,  is  Fiscal  Note  No.  2024-45,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 S. 5809--C                          4
 
   As it relates to the New York State Teachers' Retirement System,  this
 bill  would amend subdivision g of Section 532-a of the Education Law to
 increase the  cost-of-living  adjustment  (COLA)  benefit  to  surviving
 spouse  beneficiaries  of  deceased retirees who elected an option which
 provides a lifetime benefit to their surviving spouse. The COLA survivor
 benefit  would be equal to 100% of the monthly benefit which the retiree
 would be receiving if alive. The current COLA survivor benefit is  equal
 to  50%  of  the  benefit  the retiree would be receiving if alive. This
 increase in spousal survivor benefit would also  be  applicable  to  the
 "catch-up"  supplementation  provided  under  subdivision  f to eligible
 retirees who retired before January 1, 1997.  This  benefit  improvement
 would be effective in September of 2025.
   The annual cost to the employers of members of NYSTRS for this benefit
 is  estimated  to  be  $42.0 million or 0.22% of payroll if this bill is
 enacted.
   Member data is from the System's most recent actuarial valuation files
 as of June 30, 2023, consisting of data provided by the employers to the
 Retirement System. The most recent data distributions and statistics can
 be found in the System's Annual Report for fiscal year  ended  June  30,
 2023. System assets are as reported in the System's financial statements
 and  can  also be found in the System's Annual Report. Actuarial assump-
 tions and methods are  provided  in  the  System's  Actuarial  Valuation
 Report as of June 30, 2023.
   The  source  of  this estimate is Fiscal Note 2024-8 dated February 2,
 2024 prepared by the Office of the Actuary of the New York State  Teach-
 ers'  Retirement  System  and  is  intended for use only during the 2024
 Legislative Session. I, Richard A. Young, am the Chief Actuary  for  the
 New  York State Teachers' Retirement System. I am a member of the Ameri-
 can Academy of Actuaries and I meet the Qualification Standards  of  the
 American  Academy of Actuaries to render the actuarial opinion contained
 herein.