S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6068

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              March 4, 2011
                               ___________

Introduced  by  M.  of  A.  MARKEY, MILLMAN, PHEFFER, JAFFEE, BENEDETTO,
  BOYLAND, SCHIMEL,  PERRY,  HOOPER,  ZEBROWSKI,  CUSICK,  DenDEKKER  --
  Multi-Sponsored  by  --  M. of A. COOK, GIBSON, HEASTIE, WEISENBERG --
  read once and referred to the Committee on Governmental Employees

AN ACT to amend the general municipal law and the retirement and  social
  security  law,  in  relation  to increasing certain special accidental
  death benefits

  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 439 of the laws of 2010, is amended  to  read
as follows:
  c.  Commencing July first, two thousand [ten] ELEVEN the special acci-
dental 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                    [165.2%] 173.2%
          1978                             [157.5%] 165.2%
          1979                             [150.0%] 157.5%
          1980                             [142.7%] 150.0%
          1981                             [135.7%] 142.7%
          1982                             [128.8%] 135.7%
          1983                             [122.1%] 128.8%
          1984                             [115.7%] 122.1%
          1985                             [109.4%] 115.7%
          1986                             [103.3%] 109.4%
          1987                              [97.4%] 103.3%
          1988                              [91.6%] 97.4%
          1989                              [86.0%] 91.6%

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07800-03-1

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          1990                              [80.6%] 86.0%
          1991                              [75.4%] 80.6%
          1992                              [70.2%] 75.4%
          1993                              [65.3%] 70.2%
          1994                              [60.5%] 65.3%
          1995                              [55.8%] 60.5%
          1996                              [51.3%] 55.8%
          1997                              [46.9%] 51.3%
          1998                              [42.6%] 46.9%
          1999                              [38.4%] 42.6%
          2000                              [34.4%] 38.4%
          2001                              [30.5%] 34.4%
          2002                              [26.7%] 30.5%
          2003                              [23.0%] 26.7%
          2004                              [19.4%] 23.0%
          2005                              [15.9%] 19.4%
          2006                              [12.6%] 15.9%
          2007                               [9.3%] 12.6%
          2008                               [6.1%] 9.3%
          2009                               [3.0%] 6.1%
          2010                               [0.0%] 3.0%
          2011                               0.0%
  S 2. Subdivision c of section 361-a of the retirement and social secu-
rity  law,  as amended by chapter 439 of the laws of 2010, is amended to
read as follows:
  c. Commencing July first, two thousand [ten] ELEVEN the special  acci-
dental 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                    [165.2%] 173.2%
          1978                             [157.5%] 165.2%
          1979                             [150.0%] 157.5%
          1980                             [142.7%] 150.0%
          1981                             [135.7%] 142.7%
          1982                             [128.8%] 135.7%
          1983                             [122.1%] 128.8%
          1984                             [115.7%] 122.1%
          1985                             [109.4%] 115.7%
          1986                             [103.3%] 109.4%
          1987                              [97.4%] 103.3%
          1988                              [91.6%] 97.4%
          1989                              [86.0%] 91.6%
          1990                              [80.6%] 86.0%
          1991                              [75.4%] 80.6%
          1992                              [70.2%] 75.4%
          1993                              [65.3%] 70.2%
          1994                              [60.5%] 65.3%
          1995                              [55.8%] 60.5%
          1996                              [51.3%] 55.8%
          1997                              [46.9%] 51.3%
          1998                              [42.6%] 46.9%

A. 6068                             3

          1999                              [38.4%] 42.6%
          2000                              [34.4%] 38.4%
          2001                              [30.5%] 34.4%
          2002                              [26.7%] 30.5%
          2003                              [23.0%] 26.7%
          2004                              [19.4%] 23.0%
          2005                              [15.9%] 19.4%
          2006                              [12.6%] 15.9%
          2007                               [9.3%] 12.6%
          2008                               [6.1%] 9.3%
          2009                               [3.0%] 6.1%
          2010                               [0.0%] 3.0%
          2011                               0.0%
  S 3. This act shall take effect July 1, 2011.
  FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This  bill would amend both the General Municipal Law and the Retirement
and Social Security Law to increase the salary used in  the  computation
of the special accidental death benefit by 3% in cases where the date of
death was before 2011.
  Insofar  as  this  bill would amend the Retirement and Social Security
Law, it is estimated that there would be an additional  annual  cost  of
approximately  $372,000  above  the  approximately  $8.3 million current
annual cost of this benefit. This cost would be shared by the  State  of
New York and all participating employers of the New York State and Local
Police and Fire Retirement System.
  This estimate, dated January 21, 2011 and intended for use only during
the  2011  Legislative  Session, is Fiscal Note No. 2011-26, prepared by
the Actuary for the New York State and Local Police and Fire  Retirement
System.
  Pursuant to Legislative Law, Section 50:
  PROVISIONS OF PROPOSED LEGISLATION - OVERVIEW:
  With  respect  to  the  City  of  New York (the "City"), this proposed
legislation would  amend  the  General  Municipal  Law  ("GML")  Section
208-f.c  to  increase certain Special Accidental Death Benefits ("SADB")
for line-of-duty widows/widowers and/or  children  of  former  uniformed
employees  of the City and the New York City Health and Hospitals Corpo-
ration and certain former employees of the Triborough Bridge and  Tunnel
Authority  who  were members of certain New York City Retirement Systems
("NYCRS").
  In addition, the  proposed  legislation  would  amend  Retirement  and
Social  Security  Law  Section  361-a.c  to  cover such SADB for certain
survivors of deceased members of the New York State and Local Police and
Fire Retirement System.
  The Effective Date of the proposed legislation would be July 1, 2011.
  IMPACT ON BENEFITS - SADB RECIPIENTS: With respect to the  NYCRS,  the
proposed  legislation would impact the SADB payable to certain survivors
of members of the:
  * New York City Employees' Retirement System ("NYCERS"), or
  * New York City Police Pension Fund ("POLICE"), or
  * New York City Fire Department Pension Fund ("FIRE"), and
  who were employed by one of the following employers in  certain  posi-
tions:
  * New York City Police Department - Uniformed Position,
  * New York City Fire Department - Uniformed Position,
  * New York City Housing Authority - Uniformed Position,
  * New York City Transit Authority - Uniformed Position,

A. 6068                             4

  * New York City Department of Correction - Uniformed Position,
  *  (New York City - Uniformed Position as Emergency Medical Technician
("EMT"),
  * New York City Health and Hospitals Corporation - Uniformed  Position
as EMT, or
  * Triborough Bridge and Tunnel Authority - Bridge and Tunnel Position.
  DESCRIPTION  OF  BENEFITS  PAYABLE:  Under  the GML, the basic SADB is
defined to equal:
  The salary of the deceased member at date of  death  (or,  in  certain
instances, a greater salary based on rank or other status) ("Final Sala-
ry"), less:
  * Any death benefit as adjusted by any Supplementation or Cost-of-Liv-
ing Adjustment ("COLA") paid by the NYCRS to the member's survivors,
  * Any death benefit paid by Social Security to the member's survivors,
and
  * Any Worker's Compensation benefit paid to the member's survivors.
  The  SADB is paid to the deceased member's surviving widow or widower,
if alive. If the widow/widower is no longer alive, then the SADB is paid
to the deceased member's children until age eighteen or while  attending
school until age twenty-three.
  The  GML also provides that the SADB is subject to escalation based on
the calendar year of death of the member. Each year since Calendar  Year
1979  the  SADB  has  been increased by an additional cumulative, incre-
mental percentage of Final Salary. For example,  for  a  covered  member
deceased in Calendar Year 1979, the SADB cumulative percentage is 150.0%
of Final Salary as of July 1, 2010.
  Under  the  proposed  legislation,  the additional, cumulative, incre-
mental percentage of Final Salary to be effective July 1, 2011 would  be
3.0%.
  FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES OF BENEFITS ("APVB"): With
respect  to NYCRS members under the actuarial assumptions and methods as
noted herein, the enactment of this proposed legislation would  increase
APVB by approximately $24.4 million as of June 30, 2011.
  FINANCIAL  IMPACT  -  EMPLOYER PAYMENTS: With respect to the NYCRS, as
these SADB are provided on a pay-as-you-go basis, the additional  annual
employer  payments  expected  to  be  paid during the first year, if the
proposed legislation is enacted, would equal approximately $2.4 million.
  Note: These additional payments represent an increase of approximately
5.0% in the annual rate of SADB being paid.
  The SADB payments are made by the NYCRS who are reimbursed by the City
who is then reimbursed by the State of New York.
  OTHER COSTS: The enactment of this proposed legislation would also  be
expected  to  result  in  modest increases in administrative expenses of
NYCERS, POLICE, FIRE, the employers and certain New York City agencies.
  CENSUS DATA: The financial impact of the proposed legislation is based
upon the census data for such widows, widowers and children provided  by
the  NYCRS  and  adjusted, as necessary, to prepare the computations and
for consistency with other data.
  The following table shows, by Retirement System as of June  30,  2010,
the number of deceased members with eligible survivors and the estimated
annual  SADB  rate  prior to the increase proposed to be effective as of
July 1, 2011.

                                 Table 1
                  SADB Census Data as of June 30, 2010
                              ($ Millions)

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                        Number of            Annual SADB Rate
                        Deceased Members     Prior to Proposed
                        with Eligible        July 1, 2011
Retirement System       Survivors            Increase

NYCERS                  28                   $1.1
POLICE                  296                  13.9
FIRE                    608                  33.8
Total                   932                  $48.8

  ACTUARIAL  ASSUMPTIONS AND METHODS: Additional APVB have been computed
based on the actuarial assumptions and methods in effect  for  the  June
30,  2010  (Lag) actuarial valuations of NYCERS, POLICE and FIRE used to
determine the  Preliminary  Fiscal  Year  2012  employer  contributions,
including  an  Actuarial  Interest  Rate  ("AIR") assumption of 8.0% per
annum.
  The demographic actuarial assumptions were adopted  by  the  Board  of
Trustees  of  each  NYCRS during Fiscal Year 2006 and the AIR assumption
was enacted by the New York State Legislature and Governor and continues
in effect.
  ACTUARIAL ASSUMPTIONS  -  UPDATE:  The  impact  of  enactment  of  the
proposed  legislation provided in this Fiscal Note has been based on the
current actuarial assumptions and methods  used  to  determine  employer
contributions to the NYCRS.
  Historically,  actuarial assumptions and methods have been reviewed on
average every five years in  connection  with  an  actuarial  experience
study mandated by New York City Charter Section 96.
  Following this review, the Actuary generally proposes changes in actu-
arial  assumptions  and methods that he believes appropriate and reason-
ably related to such experience period and future expectations.
  The next such review is anticipated during Fiscal Year  2012  and  the
Actuary  is  likely to propose new packages of actuarial assumptions and
methods to be effective for use in  determining  employer  contributions
beginning Fiscal Year 2012.
  As  such,  not  all  assumptions  employed  in determining the results
contained in this Fiscal Note represent the Actuary's current best esti-
mate of future experience. However, the assumptions  used  to  determine
the  results  contained  herein are generally those adopted by the NYCRS
Boards of Trustees and enacted by the New  York  State  Legislature  and
Governor.
  Finally,  the actuarial assumptions currently employed for determining
employer contributions do not represent risk-adjusted,  economic  evalu-
ations.  Such  risk-adjusted,  economic  evaluations  could, for certain
components of the proposed  legislation,  produce  results  that  differ
significantly from the results shown herein.
  STATEMENT  OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems. I am a Fellow  of  the
Society  of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification Standards of the American Academy of  Actuaries
to render the actuarial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
during the 2011 Legislative Session. It is Fiscal  Note  2011-06,  dated
February  17,  2011, prepared by the Chief Actuary for the New York City
Employees' Retirement System, the New York City Police Pension Fund  and
the New York City Fire Department Pension Fund.