S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6641--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 19, 2025
                                ___________
 
 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 general municipal law and the retirement and  social
   security  law,  in relation to increasing the special accidental death
   benefit of certain deceased members
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  c  of section 208-f of the general municipal
 law, as amended by chapter 162 of the laws of 2024, is amended  to  read
 as follows:
   c.  Commencing  July first, two thousand [twenty-four] TWENTY-FIVE the
 special accidental death benefit paid to  a  widow  or  widower  or  the
 deceased  member's  children under the age of eighteen or, if a student,
 under the age of twenty-three, if the widow or widower has died,  or  to
 the deceased member's parents if the member has no widow, widower, chil-
 dren  under  the  age of eighteen, or a student under the age of twenty-
 three, shall be escalated by adding thereto an additional percentage  of
 the  salary of the deceased member (as increased pursuant to subdivision
 b of this section) in accordance with the following schedule:
 
      calendar year of death
      of the deceased member              per centum
           1977 or prior                  [301.2%] 313.2%
           1978                           [289.5%] 301.2%
           1979                           [278.2%] 289.5%
           1980                           [267.1%] 278.2%
           1981                           [256.5%] 267.1%
           1982                           [246.1%] 256.5%
           1983                           [236.0%] 246.1%

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10050-03-5
              

 S. 6641--A                          2
 
           1984                           [226.2%] 236.0%
           1985                           [216.7%] 226.2%
           1986                           [207.5%] 216.7%
           1987                           [198.5%] 207.5%
           1988                           [189.8%] 198.5%
           1989                           [181.4%] 189.8%
           1990                           [173.2%] 181.4%
           1991                           [165.2%] 173.2%
           1992                           [157.5%] 165.2%
           1993                           [150.0%] 157.5%
           1994                           [142.7%] 150.0%
           1995                           [135.7%] 142.7%
           1996                           [128.8%] 135.7%
           1997                           [122.1%] 128.8%
           1998                           [115.7%] 122.1%
           1999                           [109.4%] 115.7%
           2000                           [103.3%] 109.4%
           2001                            [97.4%] 103.3%
           2002                            [91.6%] 97.4%
           2003                            [86.0%] 91.6%
           2004                            [80.6%] 86.0%
           2005                            [75.4%] 80.6%
           2006                            [70.2%] 75.4%
           2007                            [65.3%] 70.2%
           2008                            [60.5%] 65.3%
           2009                            [55.8%] 60.5%
           2010                            [51.3%] 55.8%
           2011                            [46.9%] 51.3%
           2012                            [42.6%] 46.9%
           2013                            [38.4%] 42.6%
           2014                            [34.4%] 38.4%
           2015                            [30.5%] 34.4%
           2016                            [26.7%] 30.5%
           2017                            [23.0%] 26.7%
           2018                            [19.4%] 23.0%
           2019                            [15.9%] 19.4%
           2020                            [12.6%] 15.9%
           2021                             [9.3%] 12.6%
           2022                             [6.1%] 9.3%
           2023                             [3.0%] 6.1%
           2024                             [0.0%] 3.0%
           2025                                    0.0%
   § 2. Subdivision c of section 361-a of the retirement and social secu-
 rity  law,  as amended by chapter 162 of the laws of 2024, is amended to
 read as follows:
   c. Commencing July first, two thousand [twenty-four]  TWENTY-FIVE  the
 special  accidental  death  benefit  paid  to  a widow or widower or the
 deceased member's children under the age of eighteen or, if  a  student,
 under  the  age of twenty-three, if the widow or widower has died, shall
 be escalated by adding thereto an additional percentage of the salary of
 the deceased member, as increased pursuant  to  subdivision  b  of  this
 section, in accordance with the following schedule:
 
      calendar year of death
      of the deceased member              per centum
           1977 or prior                    [301.2%] 313.2%
 S. 6641--A                          3
 
           1978                             [289.5%] 301.2%
           1979                             [278.2%] 289.5%
           1980                             [267.1%] 278.2%
           1981                             [256.5%] 267.1%
           1982                             [246.1%] 256.5%
           1983                             [236.0%] 246.1%
           1984                             [226.2%] 236.0%
           1985                             [216.7%] 226.2%
           1986                             [207.5%] 216.7%
           1987                             [198.5%] 207.5%
           1988                             [189.8%] 198.5%
           1989                             [181.4%] 189.8%
           1990                             [173.2%] 181.4%
           1991                             [165.2%] 173.2%
           1992                             [157.5%] 165.2%
           1993                             [150.0%] 157.5%
           1994                             [142.7%] 150.0%
           1995                             [135.7%] 142.7%
           1996                             [128.8%] 135.7%
           1997                             [122.1%] 128.8%
           1998                             [115.7%] 122.1%
           1999                             [109.4%] 115.7%
           2000                             [103.3%] 109.4%
           2001                              [97.4%] 103.3%
           2002                              [91.6%] 97.4%
           2003                              [86.0%] 91.6%
           2004                              [80.6%] 86.0%
           2005                              [75.4%] 80.6%
           2006                              [70.2%] 75.4%
           2007                              [65.3%] 70.2%
           2008                              [60.5%] 65.3%
           2009                              [55.8%] 60.5%
           2010                              [51.3%] 55.8%
           2011                              [46.9%] 51.3%
           2012                              [42.6%] 46.9%
           2013                              [38.4%] 42.6%
           2014                              [34.4%] 38.4%
           2015                              [30.5%] 34.4%
           2016                              [26.7%] 30.5%
           2017                              [23.0%] 26.7%
           2018                              [19.4%] 23.0%
           2019                              [15.9%] 19.4%
           2020                              [12.6%] 15.9%
           2021                               [9.3%] 12.6%
           2022                               [6.1%] 9.3%
           2023                               [3.0%] 6.1%
           2024                               [0.0%] 3.0%
           2025                                      0.0%
   § 3. This act shall take effect July 1, 2025.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would amend both the General Municipal Law and the Retire-
 ment and Social Security Law to increase the salary used in the computa-
 tion of the special accidental death benefit by three percent  in  cases
 where the date of death was before calendar year 2025.
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), the increased costs would  be  shared
 S. 6641--A                          4

 by  the  State  of  New  York  and  the local participating employers in
 NYSLPFRS. If this bill were enacted during the 2025 Legislative Session,
 the increase in the present value of  benefits  would  be  approximately
 $9.11 million.
 
  NYSLPFRS                  Increase in present    Increase in required
                             value of benefits        contributions
 
  Pensioners                     $ 9.1 mn               $ 0.0 mn
  Actives Tiers 1-5 (Closed)     $ 0.0 mn               $ 3.7 mn
  Actives Tier 6 (Open)          $ 0.0 mn               $ 5.4 mn
    Total                        $ 9.1 mn               $ 9.1 mn
 
   In NYSLPFRS, this benefit improvement will be funded by increasing the
 billing  rates charged annually to cover both retrospective and prospec-
 tive benefit increases. The annual contribution required of all  partic-
 ipating  employers  in NYSLPFRS is 0.02% of billable salary, or approxi-
 mately $170,000  to  the  State  of  New  York  and  $750,000  to  local
 participating  employers. This PERMANENT ANNUAL COST will vary in subse-
 quent billing cycles with changes in the billing rate and salary of  the
 members in NYSLPFRS.
   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 March 12, 2025, and intended for use only during
 the 2025 Legislative Session, is Fiscal Note No. 2025-82. As Chief Actu-
 ary of the New York State and Local Retirement System, I, Aaron Schottin
 Young, hereby certify that this analysis complies with applicable  Actu-
 arial  Standards of Practice as well as the Code of Professional Conduct
 and Qualification Standards for Actuaries Issuing Statements of Actuari-
 al Opinion of the American Academy of Actuaries, of which I am a member.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation, as it relates to the New York City
 Retirement Systems and Pension Funds  (NYCRS),  would  increase  Special
 Accidental  Death  Benefits  (SADB) for Eligible Beneficiaries of former
 members of NYCRS who died due to an accident sustained in  the  perform-
 ance of duty.
 
                EXPECTED IMPACT ON EMPLOYER CONTRIBUTIONS*
           by Fiscal Year for the first 25 years ($ in Millions)
 
 Year        NYCERS          POLICE          FIRE           TOTAL
 2026           0.4             3.8           4.3             8.5
 2027           0.4             3.8           4.3             8.5
 2028           0.4             3.8           4.3             8.5
 S. 6641--A                          5

 2029           0.4             3.8           4.3             8.5
 2030           0.4             3.8           4.3             8.5
 2031           0.4             3.7           4.3             8.4
 2032           0.4             3.7           4.3             8.4
 2033           0.4             3.7           4.3             8.4
 2034           0.4             3.7           4.3             8.4
 2035           0.4             3.7           4.2             8.3
 2036           0.4             3.7           4.2             8.3
 2037           0.4             3.7           4.2             8.3
 2038           0.4             3.7           4.2             8.3
 2039           0.4             3.7           4.2             8.3
 2040           0.0             0.1           0.0             0.1
 2041           0.0             0.1           0.0             0.1
 2042           0.0             0.1           0.0             0.1
 2043           0.0             0.1           0.0             0.1
 2044           0.0             0.0           0.0             0.0
 2045           0.0             0.0           0.0             0.0
 2046           0.0             0.0           0.0             0.0
 2047           0.0             0.0           0.0             0.0
 2048           0.0             0.0           0.0             0.0
 2049           0.0             0.0           0.0             0.0
 2050           0.0             0.0           0.0             0.0
      *  The  costs  of  this  proposed  legislation  have  already  been
      accounted for and will not result in a further increase in employer
      contributions. The table  above  shows  the  expected  DECREASE  in
      employer contributions if the proposed legislation is NOT enacted.
 
   The initial impact on employer contributions of $8.50 million is esti-
 mated  to  be  $8.45 million for New York City and $0.05 million for the
 other obligors of NYCRS.
   PRESENT VALUE OF BENEFITS:  The  Present  Value  of  Benefits  is  the
 discounted  expected  value  of  benefits paid to current members if all
 assumptions are met, including future service accrual and pay increases.
 Future new hires are not included in this present value.
 
                EXPECTED IMPACT ON ACTUARIAL PRESENT VALUES
                    as of June 30, 2024 ($ in Millions)
      Present Value (PV)                 NYCERS  POLICE  FIRE
      (1) PV of Employer Contributions:  3.4     31.9    36.0
      (2) PV of Employee Contributions:  0.0      0.0     0.0
      Total PV of Benefits (1) + (2):    3.4     31.9    36.0
 
   UNFUNDED ACCRUED LIABILITY (UAL): Actuarial  Accrued  Liabilities  are
 the  portion of the Present Value of Benefits allocated to past service.
 The decrease in expected pension payments due to  this  legislation  NOT
 passing would be treated as an actuarial gain.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                         NYCERS  POLICE  FIRE
      Increase (Decrease) in UAL:        3.1M    30.6M   35.6M
      Number of Payments:                 14      14      14
      Amortization Payment:              0.4M    3.6M    4.2M
 
   CENSUS  DATA:  The estimates presented herein are based on preliminary
 census data collected as of June 30,  2024.  The  census  data  for  the
 impacted population is summarized below.
 S. 6641--A                          6
 
                              NYCERS     POLICE      FIRE
      Active Members
      - Number Count:         18,418     33,803    10,691
      - Average Age:            41.9       37.5      40.7
      - Average Service:        11.3       11.1      13.7
      - Average Salary:      108,600    134,900   143,400
      Receiving Members
      - Number Count:             86        635       715
      - Average Age:            66.8       64.1      67.6
 
   IMPACT  ON  MEMBER  BENEFITS: The SADB cost-of-living adjustments have
 been passed by the legislature each  year.  Under  the  proposed  legis-
 lation,  an additional 3.0% of Final Salary would be applied to the SADB
 paid effective July 1, 2025.
   The SADB is paid to the deceased member's surviving spouse, if  alive.
 If  the  spouse  is  no  longer  alive, the SADB is paid to the deceased
 member's children until age eighteen or  until  age  twenty-three  if  a
 student.  If  neither  a spouse nor a dependent child is alive, the SADB
 may be paid to the member's parents or  certain  other  individuals,  if
 eligible.
   The  proposed  legislation  would  impact  the SADB payable to certain
 survivors of NYCERS, POLICE, and  FIRE  who  were  employed  in  certain
 uniformed positions of the following New York City employers:
    Police Department, Fire Department, Department of Sanitation, Housing
    Authority,  Transit  Authority,  Department of Correction, Health and
    Hospitals Corporation or New York City (as Emergency Medical  Techni-
    cian),  Triborough  Bridge  and  Tunnel  Authority (Bridge and Tunnel
    Position), or Sheriff's Department (as Deputy Sheriff).
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems.
   Based on the historical  practice  of  providing  3.0%  Cost-of-Living
 Adjustments (COLAs) on the SADB each year, and the likelihood that COLAs
 will continue to be granted in the future, the Actuary currently assumes
 that  the  SADB  benefit  will continue to increase 3.0% per year in the
 future when determining NYCRS employer contributions.
   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). This Fiscal Note does not reflect any  chapter
 laws that may have been enacted during the current legislative session.
   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.
 S. 6641--A                          7
 
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2025-38  dated  April  4,
 2025  was prepared by the Chief Actuary for the New York City Retirement
 Systems and Pension Funds and is intended for use only during  the  2025
 Legislative Session.