Bill Text: NY S09027 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to the eligibility of New York city transit authority employees for performance of duty disability retirement.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-06-14 - REFERRED TO RULES [S09027 Detail]
Download: New_York-2017-S09027-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9027 IN SENATE June 14, 2018 ___________ Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the retirement and social security law, in relation to the eligibility of New York city transit authority employees for performance of duty disability retirement The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 607-b of the retirement and social security law is 2 amended by adding a new subdivision a-1 to read as follows: 3 a-1. Any member of the New York city employees' retirement system who 4 is employed by the New York city transit authority and who participated 5 in World Trade Center rescue, recovery or cleanup operations, as defined 6 in section two of this chapter, who, on or after September eleventh, two 7 thousand one, becomes physically or mentally incapacitated for the 8 performance of duties as the natural and proximate result of an injury 9 sustained in the performance or discharge of his or her duties as a 10 result of such participation in World Trade Center rescue, recovery or 11 cleanup operations shall be paid a performance of duty disability 12 retirement allowance equal to three-quarters of final average salary, 13 subject to section 13-176 of the administrative code of the city of New 14 York. Any member who has made application or who, after the effective 15 date of the chapter of the laws of two thousand eighteen which added 16 this subdivision, makes application for such performance of duty pension 17 shall be entitled to invoke the medical review procedure provided for in 18 subdivision e of section six hundred five of this article, subject to 19 the terms and conditions set forth in such subdivision. 20 § 2. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY OF BILL: The proposed legislation would amend provisions of the Retirement and Social Security Law (RSSL) to grant New York City Transit Authority (NYCTA) active and retired employees, who are or were members of the New York City Employees' Retirement Systems (NYCERS) subject to Retirement and Social Security Law Article 15, and have incurred a World Trade Center (WTC) Qualifying Condition, a performance EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13667-06-8S. 9027 2 of duty disability retirement equivalent to 75% of the member's Final Average Salary (FAS) prospectively as of the effective date. The proposed legislation would further permit such eligible NYCTA members and retirees to utilize the Final Medical Review procedures pursuant to RSSL Section 605-e to appeal from the NYCERS Medical Board WTC disabili- ty benefit determinations. Effective Date: Upon enactment. IMPACT ON BENEFITS PAYABLE: Under the proposed legislation, the WTC disability benefit for eligible NYCTA WTC retirees would be revised to equal a retirement allowance of: * 75% multiplied by FAS, Reduced by: * 100% of Workers' Compensation benefits (if any). FINANCIAL IMPACT - ACTUARIAL PRESENT VALUE OF BENEFITS (APVB): Although there are currently approximately 1,100 active and retired NYCTA members who have submitted a qualified WTC Notice of Participation Form, the number of members from this group who could potentially bene- fit from this proposed legislation in the future cannot be readily determined. Therefore, the ultimate impact of this proposed legislation would depend on the number of members affected in the future as well as other characteristics including the age, years of service, and salary history of the member. For purposes of this fiscal note, only those NYCTA members who currently receive WTC-related disability benefits have been considered. Those members who may eventually retire in the future with a WTC disa- bility benefit or those active or retired members who may be entitled to the benefit following a Final Medical Review were not included in the cost analysis. The cost analysis below also does not include any poten- tial and unknown offset for Workers' Compensation benefits. With respect to members currently in receipt of WTC benefits, under the actuarial assumptions used in the Preliminary June 30, 2017 (Lag) actuarial valuations of NYCERS, the enactment of this proposed legis- lation would increase the APVB by approximately $4,634,000 as of June 30, 2017. FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: In accordance with Adminis- trative Code of the City of New York (ACCNY) Section 13-638.2(k-2), new Unfunded Accrued Liability (UAL) attributable to benefit changes are to be amortized as determined by the Actuary but generally over the remain- ing working lifetime of those impacted by the benefit changes. For this proposed legislation, since those that would benefit are retired, the entire increase in UAL of $4,634,000 would be recognized in the first year that the increased pension was paid. OTHER COSTS: Not measured in this Fiscal Note are the following: * Any additional costs related to future NYCTA members who retire due to a WTC qualifying condition and who would benefit from this proposed legislation, if enacted. * The initial, additional administrative costs of NYCERS to implement the proposed legislation. * The impact of this proposed legislation on Other Postemployment Benefit (OPEB) costs. CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is assumed that the changes in the employer contributions would be reflected for the first time in the June 30, 2018 actuarial valuation of NYCERS. In accordance with the One-Year Lag Methodology (OYLM) used to determine employer contributions, the increase in employer contributions would first be reflected in Fiscal Year 2020.S. 9027 3 CENSUS DATA: The starting census data used for the calculations presented herein is the census data used in the Preliminary June 30, 2017 (Lag) actuarial valuation of NYCERS to determine the Preliminary Fiscal Year 2019 employer contributions. This data was supplemented by data provided by NYCERS that identified NYCTA members subject to Article 15 who are currently in receipt of WTC disability benefits. NYCERS identified 19 members with an average bene- fit of $28,464. ACTUARIAL ASSUMPTIONS AND METHODS: The additional employer contrib- utions presented herein have been calculated based on the actuarial assumptions and methods in effect for the Preliminary June 30, 2017 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year 2019 employer contributions of NYCERS. Please note these assumptions and methods are subject to change as this valuation is not considered final until the end of Fiscal Year 2019. STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu- ary for, and independent of, the New York City Retirement Systems and Pension Funds. I am a Fellow of the Society of Actuaries, an Enrolled Actuary under the Employee Retirement Income and Security Act of 1974 (ERISA), a Member of the American Academy of Actuaries, and a Fellow of the Conference of Consulting Actuaries. I meet the Qualification Stand- ards of the American Academy of Actuaries to render the actuarial opin- ion contained herein. To the best of my knowledge, the results contained herein have been prepared in accordance with generally accepted actuari- al principles and procedures and with the Actuarial Standards of Prac- tice issued by the Actuarial Standards Board. FISCAL NOTE IDENTIFICATION: This Fiscal Note 2018-38 dated June 13, 2018, was prepared by the Chief Actuary for the New York City Employees' Retirement System. This estimate is intended for use only during the 2018 Legislative Session.
