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A09670 Summary:

BILL NOA09670
 
SAME ASSAME AS S08448
 
SPONSORAbbate
 
COSPNSRSayegh, Paulin
 
MLTSPNSR
 
Amd §89-e, add §606-c, R & SS L
 
Provides for certain death benefits to correction officers, correction officer-sergeants, correction officer-captains, assistant wardens, associate wardens or wardens employed by Westchester county.
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A09670 Actions:

BILL NOA09670
 
03/28/2022referred to governmental employees
05/27/2022reference changed to ways and means
06/01/2022reported referred to rules
06/02/2022reported
06/02/2022rules report cal.623
06/02/2022substituted by s8448
 S08448 AMEND= JACKSON
 03/02/2022REFERRED TO CIVIL SERVICE AND PENSIONS
 06/01/2022COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/01/2022ORDERED TO THIRD READING CAL.1809
 06/01/2022HOME RULE REQUEST
 06/01/2022PASSED SENATE
 06/01/2022DELIVERED TO ASSEMBLY
 06/01/2022referred to ways and means
 06/02/2022substituted for a9670
 06/02/2022ordered to third reading rules cal.623
 06/02/2022home rule request
 06/02/2022passed assembly
 06/02/2022returned to senate
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A09670 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9670
 
SPONSOR: Abbate
  TITLE OF BILL: An act to amend the retirement and social security law, in relation to providing certain death benefits to correction officers, correction officer-sergeants, correction officer-captains, assistant wardens, asso- ciate wardens or wardens employed by Westchester county   PURPOSE:: The purpose of this bill is to provide a death gamble amortization for correctional officers employed by Westchester County.   SUMMARY OF PROVISIONS:: Section 1 adds a new subdivision k to Section 89-E of the Retirement and Social Security Law that allows correction officer beneficiaries to elect to receive, in a lump sum, an amount payable equal to the pension reserve that would have been established had the correction officer retired on the date of their death, or the value of the death benefit and the reserve-for-increased-takehome-pay, if any, whichever is great- er. Section 2 adds a new Section 606-C to the Retirement and Social Security Law that defines death benefits for corrections officers employed by Westchester County. Section 3 states that all past service costs associated with implement- ing this bill shall be borne by Westchester County and may be amortized over a period of 10 years. Section 4 states that none of the provisions of this bill shall be subject to the appropriation requirement of Section 25 of the Retirement and Social Security Law. Section 5 is the effective date.   JUSTIFICATION: This bill provides Westchester County correction officers with death gamble benefits. The death gamble was enacted for New York law enforce- ment officers, firefighters and teachers in 2000 (Chapter 554 of the Laws of 2000) to incentivize public employees who wish to work past retirement age by providing that, should the employee pass away before taking retirement, his or her family shall be able to receive the full value of his or her pension benefit. In extending this benefit to West- chester County correction officers, this bill helps both officers and local governments as the County is then able to retain correction offi- cers who may have retired instead of working past normal retirement age.   LEGISLATIVE HISTORY:: New bill.   STATE AND LOCAL FISCAL IMPLICATIONS: See the fiscal note.   EFFECTIVE DATE:: This act shall take effect immediately.
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A09670 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9670
 
                   IN ASSEMBLY
 
                                     March 28, 2022
                                       ___________
 
        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on Governmental Employees
 
        AN  ACT  to amend the retirement and social security law, in relation to
          providing certain death benefits to  correction  officers,  correction
          officer-sergeants,  correction  officer-captains,  assistant  wardens,
          associate wardens or wardens employed by Westchester county

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section 89-e of the retirement and social security law is
     2  amended by adding a new subdivision k to read as follows:
     3    k. Notwithstanding any provision of  law  to  the  contrary,  where  a
     4  correction  officer  would have been entitled to retire pursuant to this
     5  section at the time of his or her death  and  where  his  or  her  death
     6  occurs  on or after the effective date of the chapter of the laws of two
     7  thousand twenty-two that added  this  subdivision,  the  beneficiary  or
     8  beneficiaries  may  elect  to  receive, in a lump sum, an amount payable
     9  which shall be equal to the pension reserve that would have been  estab-
    10  lished  had  the  member retired on the date of his or her death, or the
    11  value of the death benefit and the  reserve-for-increased-take-home-pay,
    12  if any, whichever is greater.
    13    § 2. The retirement and social security law is amended by adding a new
    14  section 606-c to read as follows:
    15    §  606-c. Death benefits for correction officers employed by Westches-
    16  ter county. a. As used in this section, the  term  "correction  officer"
    17  shall  mean  a  person  employed  by  the  Westchester county correction
    18  department with a title of correction officer,  correction  officer-ser-
    19  geant, correction officer-captain, assistant warden, associate warden or
    20  warden.
    21    b.  Notwithstanding  any  provision  of  law  to the contrary, where a
    22  correction officer would have been  entitled  to  a  service  retirement
    23  benefit  at  the  time  of  his  or her death and where his or her death
    24  occurs on or after the effective date of the chapter of the laws of  two
    25  thousand  twenty-two that added this section, the beneficiary or benefi-
    26  ciaries may elect to receive, in a lump sum,  an  amount  payable  which
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14541-02-2

        A. 9670                             2
 
     1  shall  be  equal to the pension reserve that would have been established
     2  had the member retired on the date of his or her death, or the value  of
     3  the  death  benefit and the reserve-for-increased-take-home-pay, if any,
     4  whichever is greater.
     5    §   3.  All  past  service  costs  associated  with  implementing  the
     6  provisions of this act shall be borne by the county of  Westchester  and
     7  may be amortized over a period of ten years.
     8    §  4. Notwithstanding any other provision of law to the contrary, none
     9  of the provisions of this act shall  be  subject  to  the  appropriation
    10  requirement of section 25 of the retirement and social security law.
    11    § 5. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would  modify  the  in-service  death  benefit for tiers 2
        through 6 Westchester County correction officers. The  in-service  death
        benefit  will  be  the value of the pension reserve as if the member had
        retired on their date of death.
          If this bill is enacted during the 2022 legislative session, we antic-
        ipate that there will be an increase of  approximately  $93,000  in  the
        annual  contributions  of  Westchester County for the fiscal year ending
        March 31, 2023. In future years, this cost  will  vary  as  the  billing
        rates and salary of the affected members change.
          In addition to the annual contributions discussed above, there will be
        an  immediate  past service cost of approximately $681,000 which will be
        borne by Westchester County as a  one-time  payment.  This  estimate  is
        based  on  the assumption that payment will be made on February 1, 2023.
        If Westchester County elects to amortize this cost over a 10-year  peri-
        od, the cost for the first year including interest would be $87,000.
          These  estimated  costs  are based on 776 affected members employed by
        the State of New York, with annual salary of approximately $88.3 million
        as of March 31, 2021.
          Summary of relevant resources:
          Membership data as of March 31, 2021 was used in measuring the  impact
        of the proposed change, the same data used in the April 1, 2021 actuari-
        al  valuation.    Distributions and other statistics can be found in the
        2021 Report of the Actuary and the 2021 Comprehensive  Annual  Financial
        Report.
          The  actuarial  assumptions and methods used are described in the 2020
        and 2021 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, 2021
        New York State and Local  Retirement  System  Financial  Statements  and
        Supplementary Information.
          I am a member of the American Academy of Actuaries and meet the Quali-
        fication Standards to render the actuarial opinion contained herein.
          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  February  25,  2022, and intended for use only
        during the 2022 Legislative Session, is Fiscal Note No. 2022-77 Revised,
        prepared by the Actuary for the New  York  State  and  Local  Retirement
        System.
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