S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5898
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2025
                                ___________
 
 Introduced  by  M.  of  A. TAPIA, GRAY, DeSTEFANO, BORES, BURDICK, CRUZ,
   PALMESANO, LEVENBERG, MORINELLO, ALVAREZ, DE LOS SANTOS, REYES,  HYND-
   MAN -- read once and referred to the Committee on Governmental Employ-
   ees
 
 AN  ACT  to amend the retirement and social security law, in relation to
   death benefits for the beneficiaries of certain members of the retire-
   ment system
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The retirement and social security law is amended by adding
 a new section 63-j to read as follows:
   §  63-J. DEATH BENEFITS FOR STATE-PAID JUDGES AND JUSTICES. A. AS USED
 IN THIS SECTION, THE TERM "JUDGE OR JUSTICE"  SHALL  MEAN  A  STATE-PAID
 JUDGE  OR  JUSTICE OF THE UNIFIED COURT SYSTEM INCLUDING A RETIRED JUDGE
 OF THE COURT OF APPEALS OR RETIRED JUSTICE OF THE SUPREME COURT  WHO  IS
 SERVING  AS  A JUSTICE OF THE SUPREME COURT PURSUANT TO CERTIFICATION BY
 THE ADMINISTRATIVE BOARD OF THE COURTS IN ACCORDANCE  WITH  SECTION  ONE
 HUNDRED FOURTEEN OR ONE HUNDRED FIFTEEN OF THE JUDICIARY LAW, OR A HOUS-
 ING JUDGE OF THE CIVIL COURT OF THE CITY OF NEW YORK.
   B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE A JUDGE
 OR  JUSTICE  WOULD HAVE BEEN ENTITLED TO A SERVICE RETIREMENT BENEFIT AT
 THE TIME OF SUCH JUDGE OR JUSTICE'S DEATH AND WHERE SUCH DEATH OCCURS ON
 OR AFTER THE EFFECTIVE DATE OF THIS SECTION, THE BENEFICIARY OR  BENEFI-
 CIARIES  MAY  ELECT  TO  RECEIVE, IN A LUMP SUM, AN AMOUNT PAYABLE WHICH
 SHALL BE EQUAL TO THE PENSION RESERVE THAT WOULD HAVE  BEEN  ESTABLISHED
 HAD  THE MEMBER RETIRED ON THE DATE OF SUCH JUDGE OR JUSTICE'S DEATH, OR
 THE VALUE OF THE DEATH BENEFIT AND THE  RESERVE-FOR-INCREASED-TAKE-HOME-
 PAY, IF ANY, WHICHEVER IS GREATER.
   § 2. The retirement and social security law is amended by adding a new
 section 508-d to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02220-02-5
 A. 5898                             2
              

 
   §  508-D.  DEATH  BENEFITS  FOR STATE-PAID JUDGES AND JUSTICES. A.  AS
 USED IN THIS SECTION, THE TERM "JUDGE OR JUSTICE" SHALL  MEAN  A  STATE-
 PAID  JUDGE  OR  JUSTICE OF THE UNIFIED COURT SYSTEM INCLUDING A RETIRED
 JUDGE OF THE COURT OF APPEALS OR RETIRED JUSTICE OF  THE  SUPREME  COURT
 WHO  IS  SERVING  AS  A JUSTICE OF THE SUPREME COURT PURSUANT TO CERTIF-
 ICATION BY THE ADMINISTRATIVE BOARD OF THE  COURTS  IN  ACCORDANCE  WITH
 SECTION  ONE  HUNDRED  FOURTEEN  OR ONE HUNDRED FIFTEEN OF THE JUDICIARY
 LAW, OR A HOUSING JUDGE OF THE CIVIL COURT OF THE CITY OF NEW YORK.
   B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE A JUDGE
 OR JUSTICE WOULD HAVE BEEN ENTITLED TO A SERVICE RETIREMENT  BENEFIT  AT
 THE TIME OF SUCH JUDGE OR JUSTICE'S DEATH AND WHERE SUCH DEATH OCCURS ON
 OR  AFTER THE EFFECTIVE DATE OF THIS SECTION, THE BENEFICIARY OR BENEFI-
 CIARIES MAY ELECT TO RECEIVE, IN A LUMP SUM,  AN  AMOUNT  PAYABLE  WHICH
 SHALL  BE  EQUAL TO THE PENSION RESERVE THAT WOULD HAVE BEEN ESTABLISHED
 HAD THE MEMBER RETIRED ON THE DATE OF SUCH JUDGE OR JUSTICE'S DEATH,  OR
 THE  VALUE OF THE DEATH BENEFIT AND THE RESERVE-FOR-INCREASED-TAKE-HOME-
 PAY, IF ANY, WHICHEVER IS GREATER.
   § 3. The retirement and social security law is amended by adding a new
 section 606-d to read as follows:
   § 606-D. DEATH BENEFITS FOR STATE-PAID JUDGES AND  JUSTICES.  A.    AS
 USED  IN  THIS  SECTION, THE TERM "JUDGE OR JUSTICE" SHALL MEAN A STATE-
 PAID JUDGE OR JUSTICE OF THE UNIFIED COURT SYSTEM  INCLUDING  A  RETIRED
 JUDGE  OF  THE  COURT OF APPEALS OR RETIRED JUSTICE OF THE SUPREME COURT
 WHO IS SERVING AS A JUSTICE OF THE SUPREME  COURT  PURSUANT  TO  CERTIF-
 ICATION  BY  THE  ADMINISTRATIVE  BOARD OF THE COURTS IN ACCORDANCE WITH
 SECTION ONE HUNDRED FOURTEEN OR ONE HUNDRED  FIFTEEN  OF  THE  JUDICIARY
 LAW, OR A HOUSING JUDGE OF THE CIVIL COURT OF THE CITY OF NEW YORK.
   B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHERE A JUDGE
 OR  JUSTICE  WOULD HAVE BEEN ENTITLED TO A SERVICE RETIREMENT BENEFIT AT
 THE TIME OF SUCH JUDGE OR JUSTICE'S DEATH AND WHERE SUCH DEATH OCCURS ON
 OR AFTER THE EFFECTIVE DATE OF THIS SECTION, THE BENEFICIARY OR  BENEFI-
 CIARIES  MAY  ELECT  TO  RECEIVE, IN A LUMP SUM, AN AMOUNT PAYABLE WHICH
 SHALL BE EQUAL TO THE PENSION RESERVE THAT WOULD HAVE  BEEN  ESTABLISHED
 HAD  THE MEMBER RETIRED ON THE DATE OF SUCH JUDGE OR JUSTICE'S DEATH, OR
 THE VALUE OF THE DEATH BENEFIT AND THE  RESERVE-FOR-INCREASED-TAKE-HOME-
 PAY, IF ANY, WHICHEVER IS GREATER.
   §   4.  All  past  service  costs  associated  with  implementing  the
 provisions of this act shall be borne by the state of New York  and  may
 be amortized over a period of ten years.
   §  5. Notwithstanding any other provision of law to the contrary, none
 of the provisions of this act shall  be  subject  to  the  appropriation
 requirement of section 25 of the retirement and social security law.
   § 6. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  modify  the in-service death benefit for retirement
 eligible members of the New York State and Local  Employees'  Retirement
 System  who are employed as state-paid judges or justices of the Unified
 Court System. The in-service death benefit will  be  the  value  of  the
 pension reserve as if the member had retired on their date of death.
   If this bill is enacted during the 2025 Legislative Session, we antic-
 ipate  that  there  will be an increase of approximately $287,000 in the
 annual contributions of the State of New York for the fiscal year ending
 March 31, 2026. In future years this cost will vary but is  expected  to
 average 0.1% of salary annually.
   In addition to the annual contributions discussed above, there will be
 an immediate past service cost of approximately $4.85 million which will
 A. 5898                             3
 
 be  borne  by the State of New York as a one-time payment. This estimate
 assumes that payment will be made on March 1, 2026. If the State of  New
 York  elects  to  amortize this cost over a 10-year period, the cost for
 each year including interest would be $619,000.
   These  estimated costs are based on 1,153 affected members employed by
 the State of New York, with annual salary of approximately $228  million
 as of March 31, 2024.
   Summary of relevant resources:
   Membership  data as of March 31, 2024 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2024 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2024  Report  of the Actuary and the 2024 Annual Comprehensive Financial
 Report.  The actuarial assumptions and methods used are described in the
 2024 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, 2024 New York State and Local Retirement System Financial Statements
 and Supplementary Information.
   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  February  13,  2025, and intended for use only
 during the 2025 Legislative Session, is  Fiscal  Note  No.  2025-24.  As
 Chief  Actuary  of  the  New  York State and Local Retirement System, I,
 Aaron Schottin Young, hereby certify that this  analysis  complies  with
 applicable  Actuarial  Standards  of  Practice  as  well  as the Code of
 Professional Conduct and Qualification Standards for  Actuaries  Issuing
 Statements of Actuarial Opinion of the American Academy of Actuaries, of
 which I am a member.