Bill Text: NY S04761 | 2013-2014 | General Assembly | Amended
Bill Title: Clarifies the maximum salary which may be used to calculate the ordinary death benefit of members of the public retirement systems of the state.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-06-20 - SUBSTITUTED BY A4983A [S04761 Detail]
Download: New_York-2013-S04761-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4761--A
2013-2014 Regular Sessions
I N S E N A T E
April 22, 2013
___________
Introduced by Sen. GOLDEN -- (at request of the New York State Teachers'
Retirement System) -- 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 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:
1 Section 1. Subdivision c of section 448 of the retirement and social
2 security law, as amended by chapter 510 of the laws of 1974, is amended
3 to read as follows:
4 c. For the purpose of this section, salary shall be the regular
5 compensation earned during the member's last twelve months of service in
6 full pay status as a member or, if he OR SHE had not completed twelve
7 months of service prior to the date of death, but was subject to the
8 provisions of subdivision b of this section, the compensation he OR SHE
9 would have earned had he OR SHE worked for the twelve months prior to
10 such date; provided, however, for the purpose of this section salary
11 shall exclude any form of termination pay (which shall include any
12 compensation in anticipation of retirement), or any lump sum payment for
13 deferred compensation sick leave, or accumulated vacation credit or any
14 other payment for time not worked (other than compensation received
15 while on sick leave or authorized leave of absence) and in no event
16 shall it exceed the maximum salary specified in section one hundred
17 thirty of the civil service law, AS ADDED BY PART B OF CHAPTER TEN OF
18 THE LAWS OF TWO THOUSAND EIGHT, OR THE MAXIMUM SALARY SPECIFIED IN
19 SECTION ONE HUNDRED THIRTY OF THE CIVIL SERVICE LAW, AS HEREAFTER
20 AMENDED, WHICHEVER IS GREATER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08981-11-3
S. 4761--A 2
1 S 2. Subdivision c of section 508 of the retirement and social securi-
2 ty law, as added by chapter 617 of the laws of 1986, is amended to read
3 as follows:
4 c. For the purpose of this section, salary shall be the regular
5 compensation earned during the member's last twelve months of service in
6 full pay status as a member or, if he OR SHE had not completed twelve
7 months of service prior to the date of death, but was subject to the
8 provisions of subdivision b of this section, the compensation he OR SHE
9 would have earned had he OR SHE worked for the twelve months prior to
10 such date; provided, however, for the purpose of this section salary
11 shall exclude any form of termination pay (which shall include any
12 compensation in anticipation of retirement), or any lump sum payment for
13 deferred compensation sick leave, or accumulated vacation credit or any
14 other payment for time not worked (other than compensation received
15 while on sick leave or authorized leave of absence) and in no event
16 shall it exceed the maximum salary specified in section one hundred
17 thirty of the civil service law, AS ADDED BY PART B OF CHAPTER TEN OF
18 THE LAWS OF TWO THOUSAND EIGHT, OR THE MAXIMUM SALARY SPECIFIED IN
19 SECTION ONE HUNDRED THIRTY OF THE CIVIL SERVICE LAW, AS HEREAFTER
20 AMENDED, WHICHEVER IS GREATER.
21 S 3. Subdivision c of section 606 of the retirement and social securi-
22 ty law, as added by chapter 617 of the laws of 1986, is amended to read
23 as follows:
24 c. For the purpose of this section, salary shall be the regular
25 compensation earned during the member's last twelve months of service in
26 full pay status as a member or, if he OR SHE had not completed twelve
27 months of service prior to the date of death, but was subject to the
28 provisions of subdivision b of this section, the compensation he OR SHE
29 would have earned had he OR SHE worked for the twelve months prior to
30 such date; provided, however, for the purpose of this section salary
31 shall exclude any form of termination pay (which shall include any
32 compensation in anticipation of retirement), or any lump sum payment for
33 deferred compensation sick leave, or accumulated vacation credit or any
34 other payment for time not worked (other than compensation received
35 while on sick leave or authorized leave of absence) and in no event
36 shall it exceed the maximum salary specified in section one hundred
37 thirty of the civil service law, AS ADDED BY PART B OF CHAPTER TEN OF
38 THE LAWS OF TWO THOUSAND EIGHT, OR THE MAXIMUM SALARY SPECIFIED IN
39 SECTION ONE HUNDRED THIRTY OF THE CIVIL SERVICE LAW, AS HEREAFTER
40 AMENDED, WHICHEVER IS GREATER.
41 S 4. Notwithstanding any other provision of law to the contrary, none
42 of the provisions of this act shall be subject to section 25 of the
43 retirement and social security law.
44 S 5. This act shall take effect immediately and shall be deemed to
45 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
S. 4761--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.
