S T A T E   O F   N E W   Y O R K
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                                 4983--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2013
                               ___________

Introduced  by  M.  of  A.  ABBATE  -- (at request of the New York State
  Teachers' Retirement System) -- read once and referred to the  Commit-
  tee  on  Governmental Employees -- 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
  clarifying the maximum salary which may be used to calculate the ordi-
  nary  death benefit of members of the public retirement systems of the
  state

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision c of section 448 of the retirement and social
security law, as amended by chapter 510 of the laws of 1974, is  amended
to read as follows:
  c.  For  the  purpose  of  this  section,  salary shall be the regular
compensation earned during the member's last twelve months of service in
full pay status as a member or, if he OR SHE had  not  completed  twelve
months  of  service  prior  to the date of death, but was subject to the
provisions of subdivision b of this section, the compensation he OR  SHE
would  have  earned  had he OR SHE worked for the twelve months prior to
such date; provided, however, for the purpose  of  this  section  salary
shall  exclude  any  form  of  termination  pay (which shall include any
compensation in anticipation of retirement), or any lump sum payment for
deferred compensation sick leave, or accumulated vacation credit or  any
other  payment  for  time  not  worked (other than compensation received
while on sick leave or authorized leave of  absence)  and  in  no  event
shall  it  exceed  the  maximum  salary specified in section one hundred
thirty of the civil service law, AS ADDED BY PART B OF  CHAPTER  TEN  OF
THE  LAWS  OF  TWO  THOUSAND  EIGHT,  OR THE MAXIMUM SALARY SPECIFIED IN
SECTION ONE HUNDRED THIRTY  OF  THE  CIVIL  SERVICE  LAW,  AS  HEREAFTER
AMENDED, WHICHEVER IS GREATER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08981-10-3

              

A. 4983--A                          2

  S 2. Subdivision c of section 508 of the retirement and social securi-
ty  law, as added by chapter 617 of the laws of 1986, is amended to read
as follows:
  c.  For  the  purpose  of  this  section,  salary shall be the regular
compensation earned during the member's last twelve months of service in
full pay status as a member or, if he OR SHE had  not  completed  twelve
months  of  service  prior  to the date of death, but was subject to the
provisions of subdivision b of this section, the compensation he OR  SHE
would  have  earned  had he OR SHE worked for the twelve months prior to
such date; provided, however, for the purpose  of  this  section  salary
shall  exclude  any  form  of  termination  pay (which shall include any
compensation in anticipation of retirement), or any lump sum payment for
deferred compensation sick leave, or accumulated vacation credit or  any
other  payment  for  time  not  worked (other than compensation received
while on sick leave or authorized leave of  absence)  and  in  no  event
shall  it  exceed  the  maximum  salary specified in section one hundred
thirty of the civil service law, AS ADDED BY PART B OF  CHAPTER  TEN  OF
THE  LAWS  OF  TWO  THOUSAND  EIGHT,  OR THE MAXIMUM SALARY SPECIFIED IN
SECTION ONE HUNDRED THIRTY  OF  THE  CIVIL  SERVICE  LAW,  AS  HEREAFTER
AMENDED, WHICHEVER IS GREATER.
  S 3. Subdivision c of section 606 of the retirement and social securi-
ty  law, as added by chapter 617 of the laws of 1986, is amended to read
as follows:
  c. For the purpose of  this  section,  salary  shall  be  the  regular
compensation earned during the member's last twelve months of service in
full  pay  status  as a member or, if he OR SHE had not completed twelve
months of service prior to the date of death, but  was  subject  to  the
provisions  of subdivision b of this section, the compensation he OR SHE
would have earned had he OR SHE worked for the twelve  months  prior  to
such  date;  provided,  however,  for the purpose of this section salary
shall exclude any form of  termination  pay  (which  shall  include  any
compensation in anticipation of retirement), or any lump sum payment for
deferred  compensation sick leave, or accumulated vacation credit or any
other payment for time not  worked  (other  than  compensation  received
while  on  sick  leave  or  authorized leave of absence) and in no event
shall it exceed the maximum salary  specified  in  section  one  hundred
thirty  of  the  civil service law, AS ADDED BY PART B OF CHAPTER TEN OF
THE LAWS OF TWO THOUSAND EIGHT,  OR  THE  MAXIMUM  SALARY  SPECIFIED  IN
SECTION  ONE  HUNDRED  THIRTY  OF  THE  CIVIL  SERVICE LAW, AS HEREAFTER
AMENDED, WHICHEVER IS GREATER.
  S 4. 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.
  S 5. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2011.
  FISCAL  NOTE.--Pursuant  to  Legislative  Law, Section 50:   This bill
would clarify the maximum salary used for ordinary death benefit  calcu-
lations  for  Tiers  2,  3, 4, 5 and 6 members who joined certain public
retirement systems after the effective date of Chapter 491 of  the  Laws
of 2011. The maximum salary used to calculate the ordinary death benefit
would  be  the  greater  of  the  maximum  salary CURRENTLY specified in
Section 130 of the Civil Service Law or such maximum salary specified in
Section 130 PRIOR to the changes to  Section  130  enacted  pursuant  to
Chapter  491.  This  bill  would ensure that no members who first join a
retirement system on or after the effective date of Chapter 491  of  the
Laws  of  2011 would receive a reduced ordinary death benefit due to the

A. 4983--A                          3

provisions of that enactment. This bill also states  that  none  of  the
provisions  of this act shall be subject to Section 25 of the Retirement
and Social Security Law.
  If  this  bill  is  enacted, insofar as this bill affects the New York
State and Local Employees' Retirement System and the New York State  and
Local  Police  and  Fire  Retirement System, we anticipate that very few
members would be affected, and the  costs  would  be  negligible.  These
costs  would  be  borne  by  the state of New York and the participating
employers in the New York State and Local Employees'  Retirement  System
and the New York State and Local Police and Fire Retirement System.
  Summary of relevant resources:
  Data:  March  31,  2012  Actuarial Year End File with distributions of
membership and other statistics displayed in  the  2012  Report  of  the
Actuary and 2012 Comprehensive Annual Financial Report.
  Assumptions  and  Methods:  2010,  2011  and 2012 Annual Report to the
Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the
State of New York: Audit and Control.
  Market Assets and GASB Disclosures: March 31, 2012 New York State  and
Local  Retirement System Financial Statements and Supplementary Informa-
tion.
  Valuations of Benefit Liabilities and Actuarial Assets: summarized  in
the 2012 Actuarial Valuations report.
  I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
  This estimate, dated May 6, 2013, and intended for use only during the
2013  Legislative  Session,  is Fiscal Note No. 2013-139 prepared by the
Actuary for the New York State and Local  Employees'  Retirement  System
and the New York State and Local Police and Fire Retirement System.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
  This  bill would amend Sections 448, 508 and 606 of the Retirement and
Social Security Law to clarify the maximum salary used to calculate  the
paragraph  2  death benefit for Tier 2, 3, 4, 5 and 6 members of the New
York State Teachers' Retirement  System.  The  maximum  salary  used  to
calculate the paragraph 2 death benefit shall not be less than the maxi-
mum  salary specified in Section 130 of the Civil Service Law, as it was
added by part B of Chapter 10 of the Laws of 2008, or the maximum salary
specified in Section  130  of  the  Civil  Service  Law,  as  thereafter
amended,  whichever is greater. Chapter 491 of the Laws of 2011 slightly
lowered the salary limit for death benefit calculation purposes, yet the
current limit in constitutionally protected for current members.
  The annual cost to the employers of members  of  the  New  York  State
Teachers'  Retirement  System is estimated to be negligible if this bill
is enacted.
  The source of this estimate is Fiscal Note 2013-2 dated September  19,
2012  prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2013 Legislative Session.
I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
Retirement  System.  I  am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of  Actu-
aries to render the actuarial opinion contained herein.