NY State Senate Bill 2023-S7224B

Current Bill Status Via A7563 - Passed Senate

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 05, 2024	returned to assembly passed senate 3rd reading cal.1573 substituted for s7224b
Jun 05, 2024	substituted by a7563b
May 30, 2024	ordered to third reading cal.1573 committee discharged and committed to rules
Apr 26, 2024	print number 7224b
Apr 26, 2024	amend and recommit to civil service and pensions
Jan 03, 2024	referred to civil service and pensions
Jun 01, 2023	print number 7224a
Jun 01, 2023	amend and recommit to civil service and pensions
May 18, 2023	referred to civil service and pensions

Votes

- Jun 5, 2024 - Floor Vote
  A7563
  
  59
  
  Aye
  
  0
  
  Nay
  
  1
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 5, 2024
      
      aye (59)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Webb
      
      Weber
      
      Weik
      
      absent (1)
      
      Sanders Jr.
      
      excused (2)
      
      Parker
      
      Walczyk
  May 30, 2024 - Rules Committee Vote
  S7224B
  
  19
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: May 30, 2024
      
      aye (19)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Krueger
      
      Lanza
      
      Liu
      
      Mayer
      
      O'Mara
      
      Ortt
      
      Parker
      
      Sepúlveda
      
      Stec
      
      Stewart-Cousins
      
      Thomas
      
      aye wr (1)
      
      Helming

Bill Amendments

Original

B (Active)

2023-S7224 - Details

See Assembly Version of this Bill:: A7563
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §604-b, R & SS L

2023-S7224 - Summary

Provides an option for beneficiaries of NYC transit authority members to receive a lump sum equal to the pension reserve where a member who is eligible for a service retirement dies prior to filing for retirement.

2023-S7224 - Sponsor Memo

                                 
BILL NUMBER: S7224

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
death benefits for active New York city transit authority members

 
PURPOSE OR GENERAL IDEA OF BILL:

To increase the in-service death benefit for New York City Transit
Authority employees in the 25-Year/Age 55 Retirement Plan in Tiers 4 and
6 to be the value of the pension reserve (assuming single life allow-
ance) as if the member had retired on the date of their death.

 
SUMMARY OF PROVISIONS:

Section one of this bill amends section 604-b of the Retirement and
Social Security Law, which is the section of law creating the Transit
Operating Force 25-Year/Age 55 Retirement Plan, to add a new subdivision
f to provide that the beneficiary of a member who dies before filing for
retirement may elect a payable amount equal to the value of the member's

pension reserve that would have been established had the member retired
on the date of their death.

Section two provides that this act shall not be subject to the appropri-
ations requirements of section 25 of the Retirement and Social Security
Law.

Section three sets the effective date.

 
JUSTIFICATION:

Once MTA employees such as the New York City Transit Authority (NYC TA)
members in the 25-Year/Age 55 Retirement Plan become eligible to retire,
they face a conundrum: they can retire, start drawing a pension, and
complete an option election form, which allows the retiree to choose
between a maximum retirement allowance, paying the full amount of the
member's pension but ceasing upon their death, or a reduced payout which
allows for a continuing benefit to the member's beneficiaries upon the
member's death; or stay on the job and continue earning a full salary -
but then risk leaving only an ordinary death benefit, worth at most
three times the member's salary, to their families should they pass away
before they have the opportunity to file for retirement.

This bill would provide parity between NYC TA employees and other types
of public servants like earlier tier members of the New York State
Teachers Retirement System (TRS), the New York State and Local Employees
Retirement System (NYSLRS), and the New York State and Local Police and
Fire Retirement System (PFRS) (Ch. 554 of 2000), Nassau County
correction officers (Ch. 534 of 2021), Suffolk County correction offi-
cers (Ch. 535 of 2021), and other uniformed services who all enjoy a
death gamble benefit, in which an employee's family is able to receive
the full value of the employee's pension benefit, as if they had retired
on the date of their death, in the event that the employee decides to
continue working past retirement age.

Extending the death gamble benefit to the dedicated civil servants who
run New York City's trains and buses will remove a disincentive to
continuing service for seasoned public employees who may otherwise wish
to keep working but for the reduced benefits their families would
receive upon their in-service death.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:
Immediate

2023-S7224 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7224
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2023
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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
   death benefits for active New York city transit authority members

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 604-b of the retirement and social security law is
 amended by adding a new subdivision f to read as follows:
   F. DEATH BENEFITS. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRA-
 RY, WHERE A NEW YORK CITY TRANSIT AUTHORITY MEMBER WOULD HAVE BEEN ENTI-
 TLED TO A SERVICE RETIREMENT BENEFIT AT THE TIME OF THEIR DEATH BUT  HAD
 NOT  YET FILED FOR SUCH SERVICE RETIREMENT PURSUANT TO SUBPARAGRAPH (IV)
 OF PARAGRAPH ONE OF SUBDIVISION C OF THIS SECTION, AND WHERE SUCH  DEATH
 OCCURS ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, THE BENEFICI-
 ARY  OR BENEFICIARIES OF SUCH MEMBER MAY ELECT TO RECEIVE, IN A LUMP SUM
 OR ON AN ANNUITIZED BASIS, AN AMOUNT PAYABLE WHICH SHALL BE EQUAL TO THE
 PENSION RESERVE THAT WOULD HAVE BEEN ESTABLISHED HAD SUCH MEMBER RETIRED
 ON THE DATE OF THEIR 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.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10259-02-3

co-Sponsors

View additional co-sponsors

2023-S7224A - Details

See Assembly Version of this Bill:: A7563
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §604-b, R & SS L

2023-S7224A - Summary

2023-S7224A - Sponsor Memo

                                 
BILL NUMBER: S7224A

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
death benefits for active New York city transit authority members

 
PURPOSE OR GENERAL IDEA OF BILL:

To increase the in-service death benefit for New York City Transit
Authority employees in the 25-Year/Age 55 Retirement Plan in Tiers 4 and
6 to be the value of the pension reserve (assuming single life allow-
ance) as if the member had retired on the date of their death.

 
SUMMARY OF PROVISIONS:

Section one of this bill amends section 604-b of the Retirement and
Social Security Law, which is the section of law creating the Transit
Operating Force 25-Year/Age 55 Retirement Plan, to add a new subdivision
f to provide that the beneficiary of a member who dies before filing for
retirement may elect a payable amount equal to the value of the member's

pension reserve that would have been established had the member retired
on the date of their death.

Section two provides that this act shall not be subject to the appropri-
ations requirements of section 25 of the Retirement and Social Security
Law.

Section three sets the effective date.

 
JUSTIFICATION:

Once MTA employees such as the New York City Transit Authority (NYC TA)
members in the 25-Year/Age 55 Retirement Plan become eligible to retire,
they face a conundrum: they can retire, start drawing a pension, and
complete an option election form, which allows the retiree to choose
between a maximum retirement allowance, paying the full amount of the
member's pension but ceasing upon their death, or a reduced payout which
allows for a continuing benefit to the member's beneficiaries upon the
member's death; or stay on the job and continue earning a full salary -
but then risk leaving only an ordinary death benefit, worth at most
three times the member's salary, to their families should they pass away
before they have the opportunity to file for retirement.

This bill would provide parity between NYC TA employees and other types
of public servants like earlier tier members of the New York State
Teachers Retirement System (TRS), the New York State and Local Employees
Retirement System (NYSLRS), and the New York State and Local Police and
Fire Retirement System (PFRS) (Ch. 554 of 2000), Nassau County
correction officers (Ch. 534 of 2021), Suffolk County correction offi-
cers (Ch. 535 of 2021), and other uniformed services who all enjoy a
death gamble benefit, in which an employee's family is able to receive
the full value of the employee's pension benefit, as if they had retired
on the date of their death, in the event that the employee decides to
continue working past retirement age.  Extending the death gamble bene-
fit to the dedicated civil servants who run New York City's trains and
buses will remove a disincentive to continuing service for seasoned
public employees who may otherwise wish to keep working but for the
reduced benefits their families would receive upon their in-service
death.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:
Immediate

2023-S7224A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7224--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2023
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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
   death benefits for active New York city transit authority members
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 604-b of the retirement and social security law  is
 amended by adding a new subdivision f to read as follows:
   F. DEATH BENEFITS. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRA-
 RY, WHERE A NEW YORK CITY TRANSIT AUTHORITY MEMBER WOULD HAVE BEEN ENTI-
 TLED  TO A SERVICE RETIREMENT BENEFIT AT THE TIME OF THEIR DEATH BUT HAD
 NOT YET FILED FOR SUCH SERVICE RETIREMENT PURSUANT TO SUBPARAGRAPH  (IV)
 OF  PARAGRAPH ONE OF SUBDIVISION C OF THIS SECTION, AND WHERE SUCH DEATH
 OCCURS ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, THE BENEFICI-
 ARY OR BENEFICIARIES OF SUCH MEMBER MAY ELECT TO RECEIVE, IN A LUMP  SUM
 OR ON AN ANNUITIZED BASIS, AN AMOUNT PAYABLE WHICH SHALL BE EQUAL TO THE
 PENSION RESERVE THAT WOULD HAVE BEEN ESTABLISHED HAD SUCH MEMBER RETIRED
 ON THE DATE OF THEIR 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.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL: This proposed legislation would amend Section 604-b
 of the Retirement and Social Security  Law  to  provide  an  alternative
 death  benefit for Transit Tier 4 and Tier 6 Special Plan members of the
 New York City Employees' Retirement System (NYCERS).
   Effective Date: Upon enactment.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10259-03-3
 S. 7224--A                          2

 
   IMPACT ON BENEFITS: Currently, NYCERS Transit  members  are  generally
 entitled  to  a  lump  sum ordinary death benefit equal to a multiple of
 salary plus the return of  member  accumulated  contributions,  if  any.
 These  death  benefits are generally calculated as three times the final
 year's salary, and may be subject to salary caps and other reductions.
   Under the proposed legislation, the ordinary death benefit for members
 who are otherwise eligible to receive a service retirement benefit based
 on  the provisions of a Transit Special Plan and die prior to retirement
 would be the greater of their current death benefit or the value of  the
 pension reserve that would have been established had they retired on the
 date  of  their  death.  The pension reserve is the present value of all
 payments expected to be made on account of any  pension  or  benefit  in
 lieu  of  any  pension granted under provisions of law and computed upon
 the basis of adopted mortality tables with regular  interest  (inclusive
 of  accumulated  member  contributions,  if  any). This type of lump sum
 pension reserve death benefit  is  sometimes  referred  to  as  a  Death
 Gamble, and is afforded, in a similar form, to Tier 1 NYCERS members.
   FINANCIAL  IMPACT  -  PRESENT VALUES: Based on the census data and the
 actuarial assumptions and methods described  herein,  the  enactment  of
 this  proposed  legislation  would  result in an increase in the Present
 Value of Future Benefits  and  the  present  value  of  future  employer
 contributions of approximately $32.7 million.
   Under  the Entry Age Normal cost method used to determine the employer
 contributions to NYCERS, there would be  an  increase  in  the  Unfunded
 Accrued  Liability  (UAL) of approximately $24.5 million and an increase
 in the present value of future employer  Normal  Cost  of  approximately
 $8.2 million.
   FINANCIAL  IMPACT  -  ANNUAL  EMPLOYER CONTRIBUTIONS: The enactment of
 this proposed legislation would result in an initial increase in  annual
 employer contributions of approximately $4.1 million which is the result
 of an increase in the Normal Cost in addition to the UAL payment.
   New  UAL  attributable to benefit changes are generally amortized over
 the remaining working lifetime of those impacted by the benefit changes.
 The remaining working lifetime for this group is approximately 13  years
 and  the  increase  in UAL was therefore amortized over a 13-year period
 (12 payments under the 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 valuation of NYCERS  to  deter-
 mine the Preliminary Fiscal Year 2024 employer contributions.
   The 35,623 NYCERS Transit Tier 4 and Tier 6 Special Plan members as of
 June  30,  2022  had an average age of approximately 48.7 years, average
 service of approximately 12.1 years, and an average salary  of  approxi-
 mately $88,300.
   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 NYCERS.
   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
 valuation of NYCERS 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-
 S. 7224--A                          3
 
 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
 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 2023-59 dated May 26,
 2023 was prepared by the Chief Actuary for the New York City  Employees'
 Retirement  System.  This  estimate  is intended for use only during the
 2023 Legislative Session.

co-Sponsors

View additional co-sponsors

2023-S7224B (ACTIVE) - Details

See Assembly Version of this Bill:: A7563
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §604-b, R & SS L

2023-S7224B (ACTIVE) - Summary

2023-S7224B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7224B

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
death benefits for active New York city transit authority members

 
PURPOSE OR GENERAL IDEA OF BILL:

To increase the in-service death benefit for New York City Transit
Authority employees in the 25-Year/Age 55 Retirement Plan in Tiers 4 and
6 to be the value of the pension reserve (assuming single life allow-
ance) as if the member had retired on the date of their death.

 
SUMMARY OF PROVISIONS:

Section one of this bill amends section 604-b of the Retirement and
Social Security Law, which is the section of law creating the Transit
Operating Force 25-Year/Age 55 Retirement Plan, to add a new subdivision
f to provide that the beneficiary of a member who dies before filing for
retirement may elect a payable amount equal to the value of the member's

pension reserve that would have been established had the member retired
on the date of their death.

Section two provides that this act shall not be subject to the appropri-
ations requirements of section 25 of the Retirement and Social Security
Law.

Section three sets the effective date.

 
JUSTIFICATION:

Once MTA employees such as the New York City Transit Authority (NYC TA)
members in the 25-Year/Age 55 Retirement Plan become eligible to retire,
they face a conundrum: they can retire, start drawing a pension, and
complete an option election form, which allows the retiree to choose
between a maximum retirement allowance, paying the full amount of the
member's pension but ceasing upon their death, or a reduced payout which
allows for a continuing benefit to the member's beneficiaries upon the
member's death; or stay on the job and continue earning a full salary -
but then risk leaving only an ordinary death benefit, worth at most
three times the member's salary, to their families should they pass away
before they have the opportunity to file for retirement.

This bill would provide parity between NYC TA employees and other types
of public servants like earlier tier members of the New York State
Teachers Retirement System (TRS), the New York State and Local Employees
Retirement System (NYSLRS), and the New York State and Local Police and
Fire Retirement System (PFRS) (Ch. 554 of 2000), Nassau County
correction officers (Ch. 534 of 2021), Suffolk County correction offi-
cers (Ch. 535 of 2021), and other uniformed services who all enjoy a
death gamble benefit, in which an employee's family is able to receive
the full value of the employee's pension benefit, as if they had retired
on the date of their death, in the event that the employee decides to
continue working past retirement age.  Extending the death gamble bene-
fit to the dedicated civil servants who run New York City's trains and
buses will remove a disincentive to continuing service for seasoned
public employees who may otherwise wish to keep working but for the
reduced benefits their families would receive upon their in-service
death.

 
PRIOR LEGISLATIVE HISTORY:

2023: S7224A - Referred to Civil Service and Pensions

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:
Immediate

2023-S7224B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7224--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2023
                                ___________
 
 Introduced  by Sens. GOUNARDES, ADDABBO, CHU, CLEARE, COMRIE, FERNANDEZ,
   JACKSON, KENNEDY, LIU, MANNION, MARTINEZ,  MATTERA,  PALUMBO,  PARKER,
   RAMOS,  RHOADS,  SALAZAR, SKOUFIS, STAVISKY, WEBER, 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 --
   recommitted to the Committee on Civil Service and Pensions in  accord-
   ance 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, in relation to
   death benefits for active New York city transit authority members
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 604-b of the retirement and social security law is
 amended by adding a new subdivision f to read as follows:
   F. DEATH BENEFITS. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRA-
 RY, WHERE A NEW YORK CITY TRANSIT AUTHORITY MEMBER WOULD HAVE BEEN ENTI-
 TLED TO A SERVICE RETIREMENT BENEFIT AT THE TIME OF THEIR DEATH BUT  HAD
 NOT  YET FILED FOR SUCH SERVICE RETIREMENT PURSUANT TO SUBPARAGRAPH (IV)
 OF PARAGRAPH ONE OF SUBDIVISION C OF THIS SECTION, AND WHERE SUCH  DEATH
 OCCURS ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, THE BENEFICI-
 ARY  OR BENEFICIARIES OF SUCH MEMBER MAY ELECT TO RECEIVE, IN A LUMP SUM
 OR ON AN ANNUITIZED BASIS, AN AMOUNT PAYABLE WHICH SHALL BE EQUAL TO THE
 PENSION RESERVE THAT WOULD HAVE BEEN ESTABLISHED HAD SUCH MEMBER RETIRED
 ON THE DATE OF THEIR 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.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10259-05-4
 S. 7224--B                          2

 
   SUMMARY: This proposed legislation would provide an alternative  death
 benefit for Transit Tier 4 and Tier 6 Special Plan members of NYCERS.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                     Year      NYCERS
                     2025        4.1
                     2026        4.1
                     2027        4.1
                     2028        4.1
                     2029        4.1
                     2030        4.1
                     2031        4.1
                     2032        4.1
                     2033        4.1
                     2034        4.1
                     2035        4.1
                     2036        4.1
                     2037        0.9
                     2038        0.9
                     2039        0.9
                     2040        0.9
                     2041        0.9
                     2042        0.9
                     2043        0.9
                     2044        0.9
                     2045        0.9
                     2046        0.9
                     2047        1.0
                     2048        1.0
                     2049        1.0
    Employer Contribution impact beyond Fiscal Year 2049 is not shown.
  Projected contributions include future new hires that may be impacted.
 
   The  increase  in  employer contributions will be allocated to the New
 York City Transit Authority.
 
           INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2023 ($ in Millions)
              Present Value (PV)                 NYCERS
              PV of Benefits:                    32.6
              PV of Employee Contributions:      0.0
              PV of Employer Contributions:      32.6
              Unfunded Accrued Liabilities:      24.4
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                 NYCERS
              Number of Payments:                12
              Fiscal Year of Last Payment:       2036
              Amortization Payment:              3.2 M

   Unfunded Accrued Liability increases were amortized over the  expected
 remaining  working  lifetime  of  those  impacted by the benefit changes
 using level dollar payments.
 S. 7224--B                          3
 
   CENSUS DATA: The estimates presented herein are based  on  preliminary
 census  data  collected  as  of  June  30, 2023. The census data for the
 impacted population is summarized below.
 
                                                 NYCERS
              Active Members
              - Number Count:                    36,819
              - Average Age:                     48.3
              - Average Service:                 11.6
              - Average Salary:                  90,200
 
   IMPACT  ON  MEMBER  BENEFITS:  Currently,  NYCERS  Transit members are
 generally entitled to a lump sum  ordinary  death  benefit  equal  to  a
 multiple  of salary plus the return of member accumulated contributions,
 if any. These death benefits are generally calculated as three times the
 final year's salary  and  may  be  subject  to  salary  caps  and  other
 reductions.
   Under the proposed legislation, the ordinary death benefit for members
 who  are  eligible to receive a service retirement benefit and die prior
 to retirement would be the greater of their current death benefit or the
 value of the pension reserve that would have been established  had  they
 retired on the date of their death. The pension reserve is the actuarial
 present value of all pension payments expected to be made had the member
 retired  for service.  This type of lump sum pension reserve death bene-
 fit is sometimes referred to as a Death Gamble, and is  afforded,  in  a
 similar form, to Tier 1 NYCERS members.
   ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
 calculated based on the Revised 2021 Actuarial Assumptions  and  Methods
 of the impacted retirement systems. In addition:
   *  New  entrants were assumed to replace exiting members so that total
 payroll increases by 3% each year for NYC Transit members.  New  entrant
 demographics were developed based on data for recent new hires and actu-
 arial judgement.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the actuarial assumptions, methods,  and  models  used,  demo-
 graphics  of  the  impacted population and other factors such as invest-
 ment, contribution, and other risks. If actual experience deviates  from
 actuarial   assumptions,  the  actual  costs  could  differ  from  those
 presented herein. Quantifying these risks is beyond the  scope  of  this
 Fiscal Note.
   This  Fiscal  Note  is intended to measure pension-related impacts and
 does not include other potential costs (e.g., administrative  and  Other
 Postemployment Benefits).
   STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
 sky  are members of the Society of Actuaries and the American Academy of
 Actuaries. We are members of NYCERS but do not believe  it  impairs  our
 objectivity  and  we  meet  the  Qualification Standards of the American
 Academy of Actuaries to render the actuarial opinion  contained  herein.
 To  the  best  of  our 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 2024-45 dated  April  19,
 2024  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 2024 Legislative Session.

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Senate Bill S7224B

Sponsored By

Current Bill Status Via A7563 - Passed Senate

Jun 5, 2024 - Floor Vote

Floor Vote: Jun 5, 2024

May 30, 2024 - Rules Committee Vote

Rules Committee Vote: May 30, 2024

Bill Amendments

2023-S7224 - Details

2023-S7224 - Summary

2023-S7224 - Sponsor Memo

2023-S7224 - Bill Text download pdf

co-Sponsors

2023-S7224A - Details

2023-S7224A - Summary

2023-S7224A - Sponsor Memo

2023-S7224A - Bill Text download pdf

co-Sponsors

2023-S7224B (ACTIVE) - Details

2023-S7224B (ACTIVE) - Summary

2023-S7224B (ACTIVE) - Sponsor Memo

2023-S7224B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7224B

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Sponsored By

Current Bill Status Via A7563 - Passed Senate

Bill Amendments

2023-S7224 - Details

2023-S7224 - Summary

2023-S7224 - Sponsor Memo

2023-S7224 - Bill Text download pdf

co-Sponsors

2023-S7224A - Details

2023-S7224A - Summary

2023-S7224A - Sponsor Memo

2023-S7224A - Bill Text download pdf

co-Sponsors

2023-S7224B (ACTIVE) - Details

2023-S7224B (ACTIVE) - Summary

2023-S7224B (ACTIVE) - Sponsor Memo

2023-S7224B (ACTIVE) - Bill Text download pdf

Comments