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S2926Senate2019-2020 SessionSame asA6598

Increase Corrections Death Benefits

Official title

“Relates to death benefits for certain members under the jurisdiction of the department of corrections and community supervision”

Sponsor Patty RitchieSD-48+1 co-sponsorAffects Finance
Status
In Senate Committee
Civil Service And Pensions
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Civil Service And Pensions

What's happening

This bill allows beneficiaries of certain state correction officers who die after July 1, 2019, to elect a higher, lump-sum death benefit; it expires after five years.

Why it matters

  1. Addresses a gap in survivor benefits for correction officers. The bill allows beneficiaries of certain state correction officers—those eligible to retire at the time of death—to opt for a more substantial, lump-sum payout, potentially providing greater financial security for families compared to the standard death benefit.

  2. Targets a high-risk profession with unique retirement rules. Correction officers face significant occupational hazards, and this legislation acknowledges their service by permitting a death benefit calculation similar to what would have been available if the officer had retired, rather than relying solely on fixed formulas.

  3. Has a notable fiscal impact but is time-limited. The legislation is estimated to cost the state a one-time $13.1 million payment for past service if enacted, with future costs possible if extended. Its five-year sunset clause means the impact and effectiveness can be evaluated before any permanent adoption.

  4. Sets a precedent for other public safety professions. By providing this option specifically for correction officers, the bill could spark discussions about equitable death benefits for other high-risk public employees, potentially influencing future pension and survivor benefit reforms.

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Who cares

  • Beneficiaries of eligible state correction officers

    They could elect a lump sum equal to the greater of the officer’s pension reserve or the existing death benefit plus any reserve for increased take-home pay.

  • Tier 2 through 6 state correction officers

    The bill would expand death benefits for eligible officers entitled to service retirement who die on or after July 1, 2019, with the provisions expiring five years after taking effect.

  • New York State budget officials

    The fiscal note estimates a $13.1 million one-time state cost if enacted during the 2019 legislative session, with additional costs if the benefit is extended or made permanent.

Headline styles

Increase Corrections Death Benefits

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Patty Ritchie

Senator · Senate District 48

History

  1. Referred to civil service and pensions
  2. Referred to civil service and pensions

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A6598Assembly

Increase Correction Officer Death Benefits

In Assembly Committee · Governmental Employees · Sponsor Billy Jones

Impact 5 · Moderate0% to pass

Full text

3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

2926

2019-2020 Regular Sessions

IN SENATE

January 30, 2019

Introduced by Sens. RITCHIE, GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions

AN ACT to amend the retirement and social security law, in relation to death benefits for certain members; and providing for the repeal of such provisions upon expiration thereof

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision b of section 448 of the retirement and social security law is amended by adding a new paragraph 3 to read as follows:

3. Provided further, notwithstanding any other provision of this article to the contrary, where a member is in a title as defined in subdivision i of section eighty-nine of this chapter under the jurisdiction of the department of corrections and community supervision, and would have been entitled to a service retirement benefit at the time of his or her death and where his or her death occurs on or after July first, two thousand nineteen, the beneficiary or beneficiaries may elect to receive, in a lump sum, an amount payable which shall be equal to the pension reserve that would have been established had the member retired on the date of his or her death, or the value of the death benefit and the reserve-for-increased-take-home-pay, if any, whichever is greater.

§ 2. Subdivision b of section 508 of the retirement and social security law, as amended by chapter 476 of the laws of 2018, is amended to read as follows:

b. A member of a retirement system subject to the provisions of this article who is a police officer, firefighter, correction officer, investigator revised plan member or sanitation worker and is in a plan which permits immediate retirement upon completion of a specified period of service without regard to age or who is subject to the provisions of section five hundred four or five hundred five of this article, shall upon completion of ninety days of service be covered for financial

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD04978-02-9

S. 2926 2

protection in the event of death in service pursuant to this subdivision.

1. Such death benefit shall be equal to three times the member's salary raised to the next highest multiple of one thousand dollars, but in no event shall it exceed three times the maximum salary specified in section one hundred thirty of the civil service law or, in the case of a member of a retirement system other than the New York city employees' retirement system, or in the case of a member of the New York city employees' retirement system who is a New York city uniformed correction/sanitation revised plan member or an investigator revised plan member, the specific limitations specified for age of entrance into service contained in subparagraphs (b), (c), (d), (e) and (f) of paragraph two of subdivision a of this section.

2. Provided further, notwithstanding any other provision of this article to the contrary, where a member is in a title as defined in subdivision i of section eighty-nine of this chapter under the jurisdiction of the department of corrections and community supervision, and would have been entitled to a service retirement benefit at the time of his or her death and where his or her death occurs on or after July first, two thousand nineteen, the beneficiary or beneficiaries may elect to receive, in a lump sum, an amount payable which shall be equal to the pension reserve that would have been established had the member retired on the date of his or her death, or the value of the death benefit and the reserve-for-increased-take-home-pay, if any, whichever is greater.

§ 3. This act shall take effect immediately and shall expire five years after the date on which it shall have become a law.

FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:

This bill would modify the in-service death benefit for tiers 2

through 6 state 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. The provision is scheduled to expire five years

after the date it is enacted.

If such a proposal is enacted during the 2019 legislative session,

there will be a past service cost of $13.1 million, which would be borne

by the state of New York as a one-time payment. This estimate is based

on the assumption that payment will be made on March 1, 2020.

If this provision is extended or made permanent by subsequent legis-

lation, there would be additional costs.

These estimated costs are based on approximately 20,700 state

correction officers with a total annual salary of approximately $1.5

billion for the fiscal year ending March 31, 2018.

Summary of relevant resources:

The membership data used in measuring the impact of the proposed

change was the same as that used in the March 31, 2018 actuarial valu-

ation. Distributions and other statistics can be found in the 2018

Report of the Actuary and the 2018 Comprehensive Annual Financial

Report.

The actuarial assumptions and methods used are described in the 2015,

2016, 2017 and 2018 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, 2018

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.

S. 2926 3

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 January 29, 2019, and intended for use only

during the 2019 Legislative Session, is Fiscal Note No. 2019-37,

prepared by the Actuary for the New York State and Local Retirement

System.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the retirement and social security law, in relation to death benefits for certain members; and providing for the repeal of such provisions upon expiration thereof

Purpose

This bill would modify the in-service death benefit for tiers 2 through 6 state correction officers.

Summary of provisions

Section 1 amends subdivision b of § 448 of the retirement and social security law is by adding a new paragraph stipulating that beneficiaries of corrections and community supervision officers may elect to receive, in a lump sum, an amount payable equal to the pension reserve that would have been established had the member retired on the date of his death, or the value of the death benefit and the reserve-for-increased-take- home-pay, if any, whichever is greater.

Section 2 amends § 508 of the retirement and social security law by adding a new subsection 2 that provides the beneficiary or beneficiaries may elect to receive, in a lump sum, an amount payable which shall be equal to the pension reserve that would have been established had the member retired on the date of his or her death, or the value of the death benefit and the reserve for-increased-take-home-pay.

Section 3 exempts the provisions of this act from certain immediate appropriation requirements in the retirement and social security law.

Section 4 provides for the immediate effectiveness that shall expire five years after the date on which it shall have become law.

Justification

This legislation is necessary to protect the families of those brave men and women who work in our state's penal system.

Prior legislative history

S4077A - Passed Senate 6/19/2017 - Veto Memo 193 S7525 - Passed Senate in 2018 - Veto Memo 320

Fiscal implications

According to the New York State Comptroller, there will be a one-time immediate past service cost of approximately $13.4 million.

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.