S T A T E O F N E W Y O R K
________________________________________________________________________
7628--A
I N S E N A T E
May 21, 2014
___________
Introduced by Sen. GOLDEN -- 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
injuries or illnesses suffered as a result of participating in rescue,
recovery and cleanup directly related to attacks at the World Trade
Center on September 11, 2001
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 36 of section 2 of the retire-
ment and social security law, as amended by chapter 489 of the laws of
2013, is amended to read as follows:
(a) "Qualifying World Trade Center condition" shall mean a qualifying
condition or impairment of health resulting in disability to a member
who participated in World Trade Center rescue, recovery or cleanup oper-
ations for a qualifying period, as those terms are defined below,
provided the following conditions have been met: (i) such member, or
eligible beneficiary in the case of the member's death, must have filed
a written and sworn statement with the member's retirement system on a
form provided by such system indicating the underlying dates and
locations of employment not later than September eleventh, two thousand
[ten, or any later date as hereinafter provided in this paragraph;]
FIFTEEN, and (ii) such member has either successfully passed a physical
examination for entry into public service, or authorized release of all
relevant medical records, if the member did not undergo a physical exam-
ination for entry into public service; and (iii) there is no evidence of
the qualifying condition or impairment of health that formed the basis
for the disability in such physical examination for entry into public
service or in the relevant medical records, prior to September eleventh,
two thousand one EXCEPT FOR SUCH MEMBER, OR ELIGIBLE BENEFICIARY IN THE
CASE OF THE MEMBER'S DEATH, OF A LOCAL RETIREMENT SYSTEM OF A CITY WITH
A POPULATION OF ONE MILLION OR MORE THAT IS COVERED BY SECTION 13-551 OF
THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR BY SECTION
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14985-03-4
S. 7628--A 2
TWENTY-FIVE HUNDRED SEVENTY-FIVE OF THE EDUCATION LAW AND FOR SUCH
MEMBER WHO SEPARATED FROM SERVICE WITH VESTED RIGHTS, OR ELIGIBLE BENE-
FICIARY OF SUCH MEMBER WHO SEPARATED FROM SERVICE WITH VESTED RIGHTS IN
THE CASE OF THE MEMBER'S DEATH, OF A LOCAL RETIREMENT SYSTEM OF A CITY
WITH A POPULATION OF ONE MILLION OR MORE WHO ARE COVERED BY SECTIONS
13-168, 13-252.1 OR 13-353.1 OF THE ADMINISTRATIVE CODE OF THE CITY OF
NEW YORK OR SECTIONS FIVE HUNDRED SEVEN-C, SIX HUNDRED FIVE-B, SIX
HUNDRED FIVE-C, OR SIX HUNDRED SEVEN-B OF THIS CHAPTER. The deadline for
filing a written and sworn statement required by subparagraph (i) of
this paragraph [is hereby extended to] SHALL BE September eleventh, two
thousand fourteen for such member, or eligible beneficiary in the case
of the member's death, of a local retirement system of a city with a
population of one million or more that is covered by section 13-551 of
the administrative code of the city of New York, or by section twenty-
five hundred seventy-five of the education law and for such member who
separated from service with vested rights, or eligible beneficiary of
such member who separated from service with vested rights in the case of
the member's death, of A local retirement [systems] SYSTEM of a city
with a population of one million or more who are covered by sections
13-168, 13-252.1 [and] OR 13-353.1 of the administrative code of the
city of New York and sections five hundred seven-c, six hundred five-b,
six hundred five-c, [and] OR six hundred seven-b of this chapter. Every
retirement system shall keep a copy of every written and sworn statement
that is presented for filing not later than September eleventh, two
thousand [fourteen] FIFTEEN, including those that are rejected for
filing as untimely.
S 2. Notwithstanding any other provision of law to the contrary, none
of the provisions of this act shall be subject to section 25 of the
retirement and social security law.
S 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
PROVISIONS OF PROPOSED LEGISLATION: With respect to the New York City
Retirement Systems ("NYCRS"), the proposed legislation would amend
Retirement and Social Security Law ("RSSL") Section 2, to extend the
deadline for filing a registration of participation under the World
Trade Center ("WTC") Disability Law to certain members who participated
in the Rescue, Recovery or Cleanup operations related to the World Trade
Center attack on September 11, 2001.
The NYCRS include: New York City Employees' Retirement System
("NYCERS"), New York City Teachers' Retirement System ("NYCTRS"), New
York City Board of Education Retirement System ("BERS"), New York City
Police Pension Fund ("POLICE") and New York Fire Department Pension Fund
("FIRE").
The WTC Disability Law was enacted under Chapter 104 of the Laws of
2005, and was amended by Chapter 93 of the Laws of 2005, Chapter 102 of
the Laws of 2006, Chapter 444 of the Laws of 2006, Chapter 445 of the
Laws of 2006, Chapter 5 of the Laws of 2007, Chapter 214 of the Laws of
2007, Chapter 495 of the Laws of 2007, Chapter 489 of the Laws of 2008,
Chapter 361 of the Laws of 2010 and Chapter 489 of 2013.
The Effective Date of this proposed legislation would be the date of
enactment.
DEADLINES FOR FILING A REGISTRATION OF PARTICIPATION UNDER EXISTING
WTC-RELATED PROVISIONS: Under current law, as a result of the enactment
of Chapter 489 of 2013, the deadline for filing a written and sworn
statement with the member's retirement system to register for partic-
ipation under the WTC Disability Law is September 11, 2014 for certain
S. 7628--A 3
groups ("Chapter 489/13 Covered Groups"). These Chapter 489/13 Covered
Groups are as follows:
* Active, vested and retired members in NYCTRS in Tiers I and II
* Active, vested and retired members in BERS in Tiers I and II
* Vested members in NYCERS in Tiers I and II
* Vested members in POLICE in Tiers I and II
* Vested members in FIRE in Tiers I and II
* Vested Uniformed Corrections members in NYCERS in Tier III
* Vested Uniformed Sanitation members in NYCERS in Tier IV
* Vested Deputy Sheriff members in NYCERS in Tier IV and Tier VI
* Vested EMT members in NYCERS in Tier IV and Tier VI
Similarly, the deadline for filing a written and sworn statement with
the member's retirement system to register for participation under the
WTC Disability law is September 11, 2010 for all groups not included in
the Chapter 489/13 Covered Groups (the "Original Covered Groups").
DEADLINES FOR FILING A REGISTRATION OF PARTICIPATION UNDER PROPOSED
LEGISLATION: With respect to the NYCRS, the proposed legislation would
extend the deadline for filing a registration of participation under the
WTC Disability Law for the Original Covered Groups from September 11,
2010 to September 11, 2015. The deadline for filing a registration of
participation under the WTC Disability Law for the Chapter 489/13
Covered Groups would remain unchanged at September 11, 2014.
ADDITIONAL EMPLOYER COSTS: The cost of the proposed legislation would
depend on the number of additional members who file the required form,
meet the requirements and then ultimately benefit from one of the WTC
Disability Laws.
As the Actuary believes that most members who would be eligible for
the benefits provided under the WTC Disability Law have already filed
the required form to register for participation, only a few members
likely would benefit from the proposed legislation and, therefore, the
increase in employer costs likely would be de minimis.
ADDITIONAL EMPLOYER CONTRIBUTIONS: In general, the increase in employ-
er contributions will be comparable to the increase in employer costs.
ACTUARIAL ASSUMPTIONS AND METHODS: The additional employer costs and
contributions have been determined based on the actuarial assumptions
and methods used in June 30, 2013 (Lag) actuarial valuations of NYCERS,
NYCTRS, BERS, POLICE and FIRE.
ECONOMIC VALUES OF BENEFITS: The actuarial assumptions used to deter-
mine the financial impact of the proposed legislation discussed in this
Fiscal Note are those appropriate for budgetary models and determining
annual employer contributions to the NYCRS.
However, the economic assumptions that are used for determining
employer contributions do not develop risk-adjusted, economic values of
benefits. Such risk-adjusted, economic values of benefits would likely
differ significantly from those developed by the budgetary models.
STATEMENT OF ACTUARIAL OPINION: I, Robert C. North, Jr., am the Chief
Actuary for the New York City Retirement Systems. I am a Fellow of the
Society of Actuaries and a Member of the American Academy of Actuaries.
I meet the Qualification Standards of the American Academy of Actuaries
to render the actuarial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This estimate is intended for use only
during the 2014 Legislative Session. It is Fiscal Note 2014-18, dated
April 30, 2014, prepared by the Chief Actuary for the New York City
Employees' Retirement System, the New York City Teachers' Retirement
System, the New York City Board of Education Retirement System, the New
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York City Police Pension Fund and the New York Fire Department Pension
Fund.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend chapter 93 of the Laws of 2005 and chapter 445
of the Laws of 2006, which provided members of public retirement systems
who contract any form of disease or disability related to exposure to
any elements in connection with the World Trade Center tragedy of
September 11, 2001 to be presumptive evidence that such disability, or
death as a result of such disability was the result of an accident and
was sustained in the performance of duty.
Insofar as this bill would affect the New York State and Local Employ-
ees' Retirement and the New York State and Local Police and Fire Retire-
ment System, this bill would extend the deadline for filing notice
regarding the eligibility for benefits for certain members who partic-
ipated in the World Trade Center rescue, recovery or cleanup operation
to September 11, 2015.
If this bill is enacted, it would lead to more disabilities being
classified as "in performance of duty" or "accidental". For the disabil-
ities so classified due to this bill, the cost would depend on the age,
service, salary and plan of the affected member or retiree, as well as
whether such person would have otherwise been eligible for, or has been
receiving an ordinary disability, a performance of duty disability or a
service retirement. For those who contract such disease prior to retire-
ment, it is estimated that there could be per person one-time costs of
as much as four (4) times salary. For those who contract such disease
subsequent to a service retirement, it is estimated that there would be
an average per person cost of approximately 150% of final average sala-
ry. For those who contract such disease subsequent to an ordinary disa-
bility retirement, it is estimated that there would be an average per
person cost of approximately four (4) times final average salary.
This bill would also lead to more deaths being classified as "acci-
dental". For each death classified as accidental due to this bill, the
cost would depend on the age, service, salary and plan of the affected
individual, as well as whether such person was an active member or has
been receiving an ordinary disability, a performance of duty disability,
an accidental disability or a service retirement. It is estimated that
the cost for each ERS and PFRS individual affected would average approx-
imately three (3) times final average salary and seven (7) times final
average salary, respectively.
ERS Costs: Pursuant to Section 25 of the Retirement and Social Securi-
ty Law, the increased cost to the New York State and Local Employees'
Retirement System would be borne entirely by the State of New York and
would require an itemized appropriation sufficient to pay the cost of
the provision. A precise cost can't be determined at this time. Every
year a cost will be determined (and billed to the state) based on those
benefiting from this provision.
PFRS Costs: These costs would be shared by the State of New York and
the participating employers in the PFRS.
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, 2013 actuarial valu-
ation. Distributions and other statistics can be found in the 2013
Report of the Actuary and the 2013 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2010,
2011, 2012 and 2013 Annual Report to the Comptroller on Actuarial
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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, 2013
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 estimate, dated June 4, 2014, and intended for use only during
the 2014 Legislative Session, is Fiscal Note No. 2014-148, prepared by
the Actuary for the New York State and Local Employees' Retirement and
the New York State and Local Police and Fire Retirement System.
FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
This bill would amend Subdivision 36 of Section 2 of the Retirement
and Social Security Law to extend the deadline to September 11, 2015 for
filing notice of having participated in the World Trade Center rescue,
recover or cleanup operations during the qualifying period. Members who
become disabled or die as a result of a "qualifying World Trade Center
condition" are assumed to have become disabled or died as a result of an
accidental or on-the-job disability or death.
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.
Employee data is from the System's most recent actuarial valuation
files, consisting of data provided by the employers to the Retirement
System. Data distributions and statistics can be found in the System's
Comprehensive Annual Financial Report (CAFR). System assets are as
reported in the System's financial statements, and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
The source of this estimate is Fiscal Note 2014-35 dated June 9, 2014
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2014 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.
