S T A T E O F N E W Y O R K
________________________________________________________________________
9812--A
I N S E N A T E
May 31, 2024
___________
Introduced by Sen. SKOUFIS -- (at request of the State Comptroller) --
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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15350-03-4
S. 9812--A 2
DAYS PRIOR TO DEATH, SUCH MEMBER'S DESIGNATED OPTION ELECTION BENEFICI-
ARY 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 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
S. 9812--A 3
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 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
S. 9812--A 4
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 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.
