S3994A-2011 Actions

• Jun 20, 2011: SUBSTITUTED BY A6068
• Jun 13, 2011: ORDERED TO THIRD READING CAL.1190
• Jun 13, 2011: REPORTED AND COMMITTED TO RULES
• Apr 13, 2011: REPORTED AND COMMITTED TO FINANCE
• Apr 6, 2011: COMMITTEE DISCHARGED AND COMMITTED TO CIVIL SERVICE AND PENSIONS
• Mar 21, 2011: PRINT NUMBER 3994A
• Mar 21, 2011: AMEND AND RECOMMIT TO LOCAL GOVERNMENT
• Mar 11, 2011: REFERRED TO LOCAL GOVERNMENT

S3994A-2011 Meetings

S3994A-2011 Calendars

S3994A-2011 Votes

S3994A-2011 Memo

BILL NUMBER:S3994A

TITLE OF BILL:
An act
to amend the general municipal law and the retirement and social
security law, in relation to increasing certain special accidental death
benefits

PURPOSE OR GENERAL IDEA OF BILL:
This legislation extends the escalation of a cost of living increase
of approximately 3% for all line-of-duty widows or widowers for
fiscal year 2009-10.

SUMMARY OF PROVISIONS:
This bill amends subdivision c of section 208-f of the General
Municipal Law as amended by chapter 76 of the laws of 2008 and
subdivision c of section 361-a of the Retirement and Social Security
Law, as amended by chapter 76 of the Laws of 2008.

JUSTIFICATION:
Since 1978, the Legislature has passed and the Governor signed into
law a cost of living increase and a one-year escalation for all New
York State widows and widowers of police officers and firefighters
killed in the line-of-duty. The intent of the original 1978 law was
to increase their benefits to an amount that would reflect the impact
of inflation.
However, the law did not provide for any new cost of living increase
after July 1, 1979.

Since that date, the cost of living has increased well over 3% each
year, including some periods of double-digit inflation. These same
widows and widowers are no longer receiving adequate benefits. This
legislation does not totally cover the present inflation spiral, but
it at least provides some increased relief to the widows and widowers
of New York State's bravest citizens, who gave their lives in service
to the people of New York State. In the past, these brave families
have faced a poverty stricken existence. This legislation would
prevent the return of that deplorable state of affairs. As with
previous legislation, there is no cost to the localities, as the
state would reimburse them for this small increase.

PRIOR LEGISLATIVE HISTORY:
1996: S.6360/A.9326 Chapter
1997: S.4243/A.7546 Chapter 174
1998: S.630/A.9487A Chapter 31
1999: S.3158B/A.5942B Chapter 132
2000: A.989S/S.6866A Chapter 231
2001: A.6606A/S.3297A Chapter 264
2002: A.11090/S.7263 Chapter 313
2003: A.5435/S.3903 Chapter 139
2004: A.10193C/S.6579C Chapter 351
2005: A.5217/S.3971C Chapter 48
2006: A.10334/S.6744 Chapter 88
2007: A.5658/S.2492 Chapter 39
2008: A.9666/S.6733 Chapter 76


2009: A.4905/S.2343 Chapter 305
2010: A.9914A/S.6879A Chapter 439

FISCAL IMPLICATIONS:
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 3, 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.

EFFECTIVE DATE:
This act shall take effect July 1, 2011.

S3994A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 3994--A
 2011-2012 Regular Sessions
 I N  SENATE
 March 11, 2011
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
 printed to be committed  to  the  Committee  on  Local  Government  -
 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 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.
 LBD10128-02-1
 
       S. 3994--A                          2
 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%
 
       S. 3994--A                          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,
 
       S. 3994--A                          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
 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)
 
       S. 3994--A                          5
 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.

*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.

Discuss!