NY A07668

Amends death benefit provisions for Tier 2, 3, and 4/6 members in NYC Employees' Retirement System (NYCERS), NYC Teachers' Retirement System (NYCTRS), and NYC Board of Education Retirement System (BERS) to comply with the federal Older Workers' Benefit Protection Act.

Reduces pre-retirement ordinary death benefit age reduction rates from 5% per year over age 60 (capping at 50%) to 3% per year over age 60 (capping at 30%) for members at age 70 and older.

Updates post-retirement death benefit calculation in the third year of retirement to provide the greater of: 10% of the benefit that would have been payable had the member died before retirement, or 10% of the death benefit payable had the member died the day before retirement.

Increases estimated Present Value of Future Benefits by approximately $223.7 million with an initial FY 2022 employer contribution increase of $40.0 million ($22.9 million for NYCERS, $12.5 million for NYCTRS, $4.6 million for BERS).

Effective immediately and retroactive to July 1, 2021, with exclusion for death benefits based on deaths occurring before July 1, 2021.