NY State Senate Bill 2019-S8703

Senate Bill S8703

2019-2020 Legislative Session

Relates to including certain employees who were employed in public service for eligibility for those who participated in the World Trade Center rescue, recovery or cleanup operations

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Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 08, 2020	referred to rules

2019-S8703 (ACTIVE) - Details

See Assembly Version of this Bill:: A10711
Current Committee:: Senate Rules
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §2, R & SS L
Versions Introduced in 2021-2022 Legislative Session:: S4961, A6384

2019-S8703 (ACTIVE) - Summary

Relates to including certain employees who were employed in public service but became members of a retirement system at a later date for eligibility for those who participated in the World Trade Center rescue, recovery or cleanup operations.

2019-S8703 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8703

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
including certain employees who were employed in public service but
became members of a retirement system at a later date for eligibility
for those who participated in the World Trade Center rescue, recovery or
cleanup operations

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would close a gap in coverage and ensure that all who were
employed in qualified service during the World Trade Center rescue,
recovery or cleanup operations and whose credited pension service
includes credited time for such work will be eligible for the same bene-
fits that others are entitled to.

 
SUMMARY OF PROVISIONS:

Subparagraph (e) of paragraph 36 of section 2 of the retirement and
social security law defines the group of persons who may avail them-
selves of the disability benefits provided to those who worked on World
Trade Center rescue, recovery or cleanup operations. The language
contained in this definition refers to "members." Retirement systems
administering the law have interpreted the definition to mean that only
those who were actually members of the retirement system during the
relevant period are eligible for the coverage. Excluded from coverage is
a small group of individuals who engaged in the rescue, recovery or
cleanup, working in covered classifications, who were not then members
of the retirement system but who thereafter became members and, in
accordance with other provisions of law, were able to buy back the
pension credits covering this same period of time. This bill would amend
the definition to permit these individuals to be covered.

 
JUSTIFICATION:

The 2001 attacks on the World Trade Center were a scarring experience
for all New Yorkers and all Americans. The work of those who engineered
rescue, recovery and cleanup was nothing short of heroic.  Many have
suffered from disabling illnesses and death. The legislature has long
recognized that it is only just that those who have suffered, or who
have been exposed to conditions that may lead to suffering over time,
should be entitled to special disability benefits or the right to claim
that benefits as disabling illnesses become manifest. In 2008, the
Legislature enacted Chapter 468 to accomplish this. That law has been
amended thereafter to expand coverage where equities warranted expan-
sion. See L. 2013, c. 489; and L. 2014, c. 472. This bill would expand
the application of the law to a group of persons not currently covered
whose equitable claim for coverage is as strong as any other group of
persons who worked on rescue, recovery or cleanup.

Retirement and Social Security Law Section 2 (36) (e) provides that
"Participated in World Trade Center rescue, recovery or cleanup oper-
ations' shall mean any member who" worked in certain operations at the
relevant locations or worked in certain job titles or departments,
during the relevant period. Retirement systems administering the law
have concluded that the inclusion of the word "member" in this defi-
nition means that the individual must have been a member of the system
during the period in question. Thus, even if the individual worked on
the relevant operations or in the relevant title or department, the
individual would be deprived of coverage if she/he were not a member of
the retirement system while performing that work.

While nearly all who worked in relevant public employment during this
time were members of the retirement system, some were not. The reasons
for their non-membership varied, but their non-membership was lawful and
not in any way the result of any wrongdoing on their part.  This bill
would provide these individuals with access to the disability benefits
received by the persons they worked with shoulder-to-shoulder, including
EMTs who performed emergency services at the site.

Notably, the bill extends this opportunity only to those who (1) there-
after became members of the retirement system and (2) bought back the
service credit that applies to the applicable time period of rescue,
recovery and cleanup (a payment that requires not just the payment of
the mandated contribution, but also the payment of interest.) Thus,
these are individuals who are in every way indistinguishable from those
currently covered: they performed the same work in the same hazardous
conditions and made the same financial contributions to the pension fund
that their coworkers made. For all these reasons, the bill is a just and
equitable measure and should be enacted.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:
Immediate

2019-S8703 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8703
 
                             I N  S E N A T E
 
                               July 8, 2020
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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
   including certain employees who were employed in  public  service  but
   became  members of a retirement system at a later date for eligibility
   for those who participated in the World Trade Center rescue,  recovery
   or cleanup operations
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (e) of subdivision 36 of section 2 of the retire-
 ment and social security law, as added by chapter 489  of  the  laws  of
 2008, is amended to read as follows:
   (e)  "Participated  in  World Trade Center rescue, recovery or cleanup
 operations" shall mean any member who: (i) participated in  the  rescue,
 recovery,  or  cleanup  operations  at  the  World Trade Center site, as
 defined in paragraph (f) of this subdivision; (ii) worked at  the  Fresh
 Kills Land Fill in New York; (iii) worked at the New York city morgue or
 the  temporary  morgue  on pier locations on the west side of Manhattan;
 (iv) manned the barges between the west side of Manhattan and the  Fresh
 Kills  Land  Fill  in  New  York; (v) repaired, cleaned or rehabilitated
 vehicles or equipment, including emergency vehicle radio equipment owned
 by the city of New York that were contaminated by debris  in  the  World
 Trade  Center  site,  as  defined  in paragraph (f) of this subdivision,
 regardless of whether the work on the repair, cleaning or rehabilitation
 of said vehicles and equipment was  performed  within  the  World  Trade
 Center  site,  provided such work was performed prior to decontamination
 of such vehicles or equipment; or (vi) worked in the  following  depart-
 ments,  worksites  and titles: (A) New York City Police Department at 11
 Metrotec Center in Brooklyn or 1 Police Plaza in Manhattan as  a  Police
 Communication  Technician (PCT), Supervisor Police Communication Techni-
 cian (SPCT), Principal  Police  Communication  Technician  I,  Principal
 Police Communication Technician II, Principal Police Communication Tech-
 nician  III,  Administrative  Manager - Communications, or in the Police
 Administrative Aide title series; (B) Fire Department of the City of New
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD15094-02-0

 S. 8703                             2
 
 York at 35 Empire Boulevard  in  Brooklyn,  79th  Street  Transverse  in
 Manhattan,  83-98 Woodhaven Boulevard in Queens, 1129 East 180 Street in
 the Bronx, 65 Slosson Avenue in Staten  Island,  9  Metrotec  Center  in
 Brooklyn,  or  25  Rockaway Avenue in Brooklyn as Fire Alarm Dispatchers
 (FAD), Supervising Fire Alarm Dispatchers  I  (SFAD),  Supervising  Fire
 Alarm  Dispatchers  II  (Borough Supervisor), Deputy Director & Director
 Fire Dispatch Operations, or Assistant Commissioner for  Communications;
 (C)  for the Fire Department of the City of New York's Emergency Medical
 Service at 1 or 9 Metrotec Centers in Brooklyn, or 55-30  58  Street  in
 Maspeth  Queens as Emergency Medical Specialist-Level I (EMT), Emergency
 Medical Specialist Level II-(Paramedic), Supervising  Emergency  Medical
 Specialist  Level I (LT), Supervising Emergency Medical Specialist Level
 II (Capt), Deputy Chief EMS Communications, or  Division  Commander  EMS
 Communications.  FOR PURPOSES OF THIS PARAGRAPH, THE TERM "MEMBER" SHALL
 INCLUDE  EACH PERSON WHO DURING THE QUALIFYING PERIOD WAS IN THE EMPLOY-
 MENT OF A PUBLIC EMPLOYER WHICH THEN PARTICIPATED FOR SUCH EMPLOYEES  IN
 THE  NEW  YORK  CITY  EMPLOYEES'  RETIREMENT SYSTEM OR THE NEW YORK CITY
 TEACHERS' RETIREMENT SYSTEM, IRRESPECTIVE OF WHETHER THE  PERSON  WAS  A
 PARTICIPANT  IN  SUCH  SYSTEM AT THAT TIME, PROVIDED THAT THE PERSON HAS
 BECOME A PARTICIPANT IN SUCH RETIREMENT SYSTEM AND HAS PURCHASED SERVICE
 CREDIT FOR A PERIOD OF TIME THAT INCLUDES SOME OR ALL OF THE  QUALIFYING
 PERIOD  IN ACCORDANCE WITH PROVISIONS OF LAW APPLICABLE TO SUCH PURCHASE
 OF SERVICE CREDIT.
   § 2. This act shall take effect immediately.
   FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation would amend  Section  2  of
 the Retirement and Social Security Law (RSSL) to permit eligible members
 of  the New York City Employees' Retirement System (NYCERS) and New York
 City Teachers' Retirement System (TRS) who participated in  the  Rescue,
 Recovery,  or Cleanup operations related to the World Trade Center (WTC)
 attack on September 11, 2001 as non-members employed by a public employ-
 er within the State and subsequently purchased such service as a  NYCERS
 or TRS member, to be eligible for the applicable WTC presumption.
   Effective Date: Upon enactment.
   FINANCIAL  IMPACT  -  OVERVIEW: There is no data available to estimate
 the number of members who might buyback service  during  qualifying  WTC
 participation  periods and potentially benefit from this proposed legis-
 lation. Therefore, the estimated financial impact has been calculated on
 a per event basis equal to the increase in the Present Value  of  Future
 Benefits (PVFB) for an average member who is diagnosed with a qualifying
 WTC  condition  and  could  benefit  from  the enactment of the proposed
 legislation.
   In determining the increase in the PVFB for members who could  benefit
 from the proposed legislation, we have shown the impact due to disabili-
 ty  and  death separately. To value the impact due to disability, it has
 been assumed that 100% of the members who would retire with a WTC quali-
 fying condition were those who would have retired with an Ordinary Disa-
 bility Retirement benefit or Service Retirement benefit, if eligible, if
 the proposed legislation were not passed. To value  the  impact  due  to
 death,  it  has  also  been  assumed  that  100% of the beneficiaries of
 members who would die due to a WTC qualifying condition would have  been
 entitled  to  receive  an Ordinary Death benefit, if the proposed legis-
 lation were not passed.
   With respect to an individual member,  the  additional  cost  of  this
 proposed legislation could vary greatly depending on the member's length
 of service, age, and salary history. In particular, the increase in PVFB

 S. 8703                             3
 
 due to the proposed legislation would be greater for a member who is not
 yet  eligible for an Ordinary Disability Retirement benefit when a disa-
 bling WTC related event occurs.
   FINANCIAL  IMPACT  -  PRESENT VALUES: Based on the census data and the
 actuarial assumptions and methods described  herein,  the  enactment  of
 this  proposed  legislation  would  increase  the  PVFB by approximately
 $96,400 for NYCERS and $320,700 for TRS, on average for each  occurrence
 of  Accidental  Disability  Retirement due to a WTC qualifying condition
 and $348,300 for NYCERS and $274,000 for TRS, on average for each occur-
 rence of Accidental Death due to a WTC related illness.
   FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS:  Enactment  of  this
 proposed  legislation  would increase employer contributions, where such
 amount would depend on the number of members affected as well  as  other
 characteristics  including the age, years of service, and salary history
 of the member.
   As there is no data currently available  to  estimate  the  number  of
 members  who  might  buyback service during qualifying WTC participation
 periods, the financial impact would be recognized at the time of  event.
 Consequently,  changes  in  employer  contributions  have been estimated
 assuming that the increase in the PVFB will  be  financed  over  a  time
 period  comparable  to that used for actuarial losses in accordance with
 Section 13-638.2(k-2) of the ACCNY. Using this approach, the  additional
 PVFB  would be amortized over a closed 15-year period (14 payments under
 the One-Year Lag Methodology) using level dollar payments.
   Based on the Actuary's actuarial  assumptions  and  methods  described
 herein,  the  enactment  of  this  proposed  legislation is estimated to
 increase annual employer  contributions  by  approximately  $11,400  for
 NYCERS and $37,900 for TRS for each Accidental Disability Retirement due
 to  a  qualifying  WTC condition and by approximately $41,200 for NYCERS
 and for $32,400 for TRS for each Accidental Death due to such condition.
   With respect to the timing, increases in employer contributions  would
 depend  upon when members would retire due to a WTC qualifying condition
 but, generally, increased employer contributions will  first  occur  the
 second  fiscal  year  following  approval  of  the Accidental Disability
 Retirement or Accidental Death.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data  used in the Preliminary June 30, 2019 (Lag) actuarial valuation of
 NYCERS and TRS to determine the Preliminary Fiscal  Year  2021  employer
 contributions.
   The  analysis  was  based  on  members  that are currently over age 40
 (since this population would have been over age 21 as of  September  11,
 2001).    There  were  134,042 NYCERS members over age 40 as of June 30,
 2019 with an average age of approximately 53.8 years, average service of
 approximately  15.3  years,  and  an  average  salary  of  approximately
 $82,000.  There  were 70,855 TRS members over age 40 as of June 30, 2019
 with an average age of approximately  52.2  years,  average  service  of
 approximately  16.0  years,  and  an  average  salary  of  approximately
 $94,800.
   ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the PVFB and  annual
 employer  contributions  presented  herein have been calculated based on
 the actuarial assumptions and methods in effect for the  June  30,  2019
 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year
 2021 employer contributions of NYCERS and TRS.
   For the purposes of this Fiscal Note we have assumed that members have
 already purchased this service and therefore the only additional benefit

 S. 8703                             4
 
 of  this legislation is the qualification for WTC presumptions and bene-
 fits.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the realization of the actuarial assumptions used, as well  as
 certain  demographic  characteristics of NYCERS and TRS and other exoge-
 nous factors such as investment, contribution, and other risks. If actu-
 al experience deviates from  actuarial  assumptions,  the  actual  costs
 could  differ  from  those presented herein. Costs are also dependent on
 the actuarial methods used, and therefore  different  actuarial  methods
 could  produce  different results. Quantifying these risks is beyond the
 scope of this Fiscal Note.
   Not measured in this Fiscal Note are the following:
   * The  initial,  additional  administrative  costs  to  implement  the
 proposed legislation.
   *  The  impact  of  this  proposed legislation on Other Postemployment
 Benefit (OPEB) costs.
   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, a
 Member of the American Academy of Actuaries, and a Fellow of the Confer-
 ence  of Consulting Actuaries. I meet the Qualification Standards of the
 American Academy of Actuaries to render the actuarial opinion  contained
 herein.   To the best of my knowledge, the results contained herein have
 been prepared in accordance with generally accepted actuarial principles
 and procedures and with the Actuarial Standards of  Practice  issued  by
 the Actuarial Standards Board.
   FISCAL  NOTE  IDENTIFICATION:  This  Fiscal Note 2020-50 dated June 4,
 2020 was prepared by the Chief Actuary for the New York City  Employees'
 Retirement  System  and  the  New York City Teachers' Retirement System.
 This estimate is intended for  use  only  during  the  2020  Legislative
 Session.

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