S T A T E O F N E W Y O R K
________________________________________________________________________
7004--A
2021-2022 Regular Sessions
I N A S S E M B L Y
April 19, 2021
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees -- 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
certain medical presumptions applicable to members of the New York
state and local employees' retirement system
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 2 of section 363-a of the retirement and social
security law, as amended by chapter 437 of the laws of 2016, is amended
to read as follows:
2. Notwithstanding any provision of this chapter or of any general,
special, or local law to the contrary, any condition of impairment of
health caused by diseases of the heart, resulting in disability or death
to a police officer, presently employed, and who shall have sustained
such disability while so employed, shall be presumptive evidence that it
was incurred in the performance and discharge of duty AND THE NATURAL
AND PROXIMATE RESULT OF AN ACCIDENT, unless the contrary be proved by
competent evidence.
§ 2. The retirement and social security law is amended by adding a new
section 809 to read as follows:
§ 809. EFFECT AND REBUTTAL OF CERTAIN MEDICAL PRESUMPTIONS PERTAINING
TO DISEASES OF THE HEART. A. THIS SECTION SHALL APPLY TO CERTAIN APPLI-
CATIONS FOR DISABILITY RETIREMENT ALLOWANCES MADE BY OR ON BEHALF OF A
MEMBER OF THE NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR
THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM. IT
SHALL APPLY ONLY TO APPLICATIONS THAT ARE SUBJECT UNDER THIS CHAPTER TO
A PROVISION THAT ANY CONDITION OF IMPAIRMENT OF HEALTH CAUSED BY A
DISEASE OF THE HEART, RESULTING IN DISABILITY, SHALL BE PRESUMPTIVE
EVIDENCE THAT SUCH DISABILITY WAS INCURRED IN THE PERFORMANCE AND
DISCHARGE OF DUTY AND THE NATURAL AND PROXIMATE RESULT OF AN ACCIDENT.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10747-06-2
A. 7004--A 2
B. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY AN
APPLICATION FOR AN ACCIDENTAL DISABILITY RETIREMENT ALLOWANCE THAT IS
BASED ON A PERMANENT INCAPACITY CAUSED BY A DISEASE OF THE HEART, SHALL
NOT BE REQUIRED TO ALLEGE OR ESTABLISH:
(1) THAT THE MEMBER SUSTAINED AN ACCIDENT OR OTHER INCIDENT RELATED TO
THE PERFORMANCE AND DISCHARGE OF DUTY; OR
(2) THAT NOTICE WAS PROVIDED THEREOF.
C. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
PRESUMPTIONS REFERRED TO IN SUBDIVISION A OF THIS SECTION MAY BE
REBUTTED ONLY BY COMPETENT EVIDENCE THAT THE DISABILITY IS NOT THE
NATURAL AND PROXIMATE RESULT OF THE PERFORMANCE AND DISCHARGE OF DUTY.
§ 3. The amendment made to subdivision 2 of section 363-a of the
retirement and social security law by section one of this act shall not
affect, impair or invalidate any temporary right, privilege or benefit
conferred pursuant to the provisions of a general, special or local law
(other than pursuant to articles 14 and 15 of the retirement and social
security law) for any member of a public retirement system or pension
plan funded by the state or one of its political subdivisions, nor shall
any amendment thereto affect the application of such provisions as
extended by the provisions of section 480 of the retirement and social
security law.
§ 4. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend the Retirement and Social Security Law (RSSL) to
1) Eliminate certain eligibility requirements for awarding accidental
disability benefits, when the disability is related to diseases of the
heart, for members in the New York State and Local Employees' Retirement
System (ERS) and the New York State and Local Police and Fire Retirement
System (PFRS). Accidental disability benefits would be granted even
where
a. the member did not sustain an accident,
b. the member's incapacitation is unrelated to any accident, or
c. the member failed to provide notice thereof.
The heart presumption could continue to be rebutted by competent
evidence that the disability is not the result of the performance and
discharge of duty.
2) Increase disability benefits payable to police officers in PFRS,
who become incapacitated due to diseases of the heart, by providing an
accidental disability benefit equal to 75% of salary less workers'
compensation. Currently, police officers are eligible for a perfor-
mance-of-duty (POD) disability benefit equal to 50% of salary less work-
ers' compensation.
3) Increase the death benefits payable on behalf of a deceased police
officer in PFRS, whose death results from diseases of the heart, by
providing the special accidental death benefit equal to more than 100%
of salary less workers' compensation and social security benefits paya-
ble to eligible beneficiary(ies). Currently the death benefit would be
the continuance afforded under the POD disability retirement.
Insofar as this bill will affect the New York State and Local Retire-
ment System (NYSLRS), more accidental disability benefits and accidental
death benefits would be granted. The cost of the revised benefit will
depend upon the applicant's age, service, salary, plan, and benefit type
otherwise payable.
The number of retirees who could be affected by this legislation
cannot be readily determined. However, every active member of PFRS will
A. 7004--A 3
be covered, as well as members of ERS who are Uniformed Court Peace
Officers in the Unified Court System.
If this bill is enacted during the 2022 legislative session, we antic-
ipate that there will be an increase of approximately $5.6 million in
the annual contributions to NYSLRS for the fiscal year ending March 31,
2023. This cost would be shared by the State of New York (the State) and
local participating employers of PFRS as follows:
a. $2.3 million borne annually by the State ($900,000 to PFRS and $1.4
million to ERS), and
b. $3.3 million borne by the local participating employers in PFRS.
In future years, these annual costs will vary as the salary of
affected members change.
In addition to the annual contributions discussed above, there will be
an immediate past service cost to ERS of approximately $13.2 million
which will be borne by the State as a one-time payment. This estimate is
based on the assumption that payment will be made on March 1, 2023.
Further, we anticipate that the number of accidental disability appli-
cations will result in a large increase in the administrative cost to
process these applications and litigate anticipated disputes.
Estimated costs arising in PFRS are based upon 31,922 members with an
approximate salary of $3.7 billion as of March 31, 2021. Estimated costs
arising in ERS are based upon 6,531 members with an approximate salary
of $608 million as of March 31, 2021.
Summary of relevant resources:
Membership data as of March 31, 2021 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2021 actuari-
al valuation. Distributions and other statistics can be found in the
2021 Report of the Actuary and the 2021 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2020
and 2021 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, 2021
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 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 4, 2022, and intended for use only during
the 2022 Legislative Session, is Fiscal Note No. 2022-39, prepared by
the Actuary for the New York State and Local Retirement System.