S T A T E   O F   N E W   Y O R K
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                                   7679
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 5, 2023
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the general municipal  law,  in  relation  to  including
   thyroid  cancer  in the list of cancers presumed to be incurred in the
   performance of duty for purposes of disability retirement

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 207-kk of the general municipal law, as amended by
 chapter 250 of the laws of 2019, is amended to read as follows:
   § 207-kk. Disabilities of firefighters in  certain  cities  caused  by
 cancer.  Notwithstanding  any  other  provisions  of this chapter to the
 contrary, any condition of impairment of health caused by (i) any condi-
 tion  of  cancer  affecting  the  lymphatic,  digestive,  hematological,
 urinary,   neurological,   breast,  reproductive,  ENDOCRINE/THYROID  or
 prostate systems or (ii) melanoma resulting in total or partial disabil-
 ity or death to a paid member of a fire department  in  a  city  with  a
 population of one million or more, or any retired member of such depart-
 ment  who  has  been  retired  for  five or less years, who successfully
 passed a physical examination on entry into the service of such  depart-
 ment, which examination failed to reveal any evidence of such condition,
 shall  be  presumptive  evidence that it was incurred in the performance
 and discharge of  duty  unless  the  contrary  be  proved  by  competent
 evidence.  The provisions of this section shall remain in full force and
 effect pursuant to section four hundred eighty  of  the  retirement  and
 social security law.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF BILL: This proposed legislation would amend Section 207-kk
 of the General Municipal Law (GML) to  provide  a  rebuttable  statutory
 presumption  to City firefighters, or City firefighter retirees who have
 been retired for five years  or  less,  who  develop  any  condition  of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11068-02-3
              

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 impairment  of  health  caused by thyroid cancer or other cancers of the
 endocrine system, that such condition was incurred  in  the  performance
 and  discharge  of  duty,  unless  the  contrary  is proven by competent
 evidence,  entitling  such  member or retiree to the applicable accident
 disability retirement or accidental death benefit.
   Effective Date: Upon enactment.
   IMPACT ON BENEFITS: Currently, an active member of the New  York  City
 Fire  Pension  Fund (FIRE) who becomes disabled due to thyroid cancer or
 other cancers of the endocrine system would be eligible for an  applica-
 ble  ordinary  disability retirement, generally a lifetime payment based
 on the greater of 1/2 of FAS  or  the  service  retirement  benefit,  if
 eligible  for  Tier 2 members, or generally based on the greatest of 1/3
 of FAS, 2% of FAS for each year of service, or  the  service  retirement
 benefit, if eligible for Tier 3 members.
   Under  the  proposed  legislation,  the benefits for active members of
 FIRE or retired members of FIRE who have been retired for five  or  less
 years, who become disabled due to thyroid cancer or other cancers of the
 endocrine  system would be eligible for a Performance of Duty Disability
 Retirement Benefit, generally a lifetime payment equal to the greater of
 75% of FAS, or the service retirement benefit, if eligible.
   In the event of a death in active service, the current Ordinary  Death
 Benefit is generally equal to three times a member's last salary. In the
 event of a death of a retired employee, an optional benefit may be paya-
 ble.  Under  the  proposed  legislation, the beneficiaries of a deceased
 member or eligible retire would be entitled  to  a  lifetime  Accidental
 Death  Benefit  equal  to 50% of a member's wages earned during the last
 year of service plus, if applicable, the Special Accidental Death  Bene-
 fit payable under GML section 208-f.
   FINANCIAL  IMPACT  -  OVERVIEW: There is no data available to estimate
 the number of members who might develop thyroid cancer or other  cancers
 of  the  endocrine  system,  and  potentially benefit from this proposed
 legislation. Therefore, the estimated financial impact has  been  calcu-
 lated on a per event basis equal to the increase in the present value of
 future employer contributions for an average member who could potential-
 ly  be  diagnosed  with thyroid cancer or other cancers of the endocrine
 system and who would benefit from the proposed legislation.
   In determining the increase in the present value for members who could
 benefit from the presumption provided by the proposed  legislation  upon
 disability,  it  has  been  assumed  that  50% of the members would have
 retired under an Ordinary Disability Retirement (ODR) benefit,  and  the
 remaining  50%  of  members  would have continued working and eventually
 retired for service if the proposed legislation were not passed.
   In determining the increase in the present value for beneficiaries who
 could benefit from the presumption provided by the proposed  legislation
 upon  death,  it  has  been  assumed  that 100% of such members would be
 eligible for an Ordinary Death Benefit if the proposed legislation  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 due  to
 the  proposed  legislation  would be greater for a member who is not yet
 eligible for an ODR benefit when thyroid cancer or other cancers of  the
 endocrine system are diagnosed.
   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 present value of future
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 employer contributions by approximately $468,300, on average,  for  each
 occurrence of performance of duty disability due to endocrine or thyroid
 cancers,  and by approximately $2.3 million, on average, for each occur-
 rence of performance of duty death due to endocrine or thyroid cancers.
   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.
   Based  on  the actuarial assumptions and methods described herein, the
 enactment of this proposed legislation is estimated to  increase  annual
 employer  contributions  by  approximately $55,400, on average, for each
 performance of duty disability retirement due to  endocrine  or  thyroid
 cancers, and by approximately $267,100, on average, for each performance
 of duty death due to endocrine or thyroid cancers.
   As  there  is  no  data  currently available to estimate the number of
 members who might be diagnosed with thyroid cancer or other  cancers  of
 the  endocrine  system,  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  present  value  of  future
 employer contributions will be financed over a closed 15-year period (14
 payments   under  the  One-Year  Lag  Methodology)  using  level  dollar
 payments.
   With respect to the timing, increases in employer contributions  would
 depend  upon  when  members would retire or die due to thyroid cancer or
 other cancers of the endocrine system but, generally, increased employer
 contributions will first occur the second fiscal year following approval
 of the performance of duty disability or death benefit.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data  used in the June 30, 2022 actuarial valuation of FIRE to determine
 the Preliminary Fiscal Year 2024 employer contributions.
   The 10,685 active members of FIRE as of June 30, 2022 who could poten-
 tially benefit from the proposed  legislation  had  an  average  age  of
 approximately  41.0  years, average service of approximately 14.2 years,
 and an average salary of approximately $134,700. This group consisted of
 6,216 Tier 2 active members and 4,469 Tier 3 active members.
   ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
 been calculated based on the actuarial assumptions and methods used  for
 the Preliminary Fiscal Year 2024 employer contributions of FIRE.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the realization of the actuarial assumptions used,  demograph-
 ics  of  the  impacted population, and other factors such as investment,
 contribution, and other risks. If actual experience deviates from  actu-
 arial  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 costs.
   STATEMENT  OF  ACTUARIAL  OPINION:  I, Marek Tyszkiewicz, am the Chief
 Actuary for, and independent of, the New York  City  Retirement  Systems
 and  Pension  Funds. I am an Associate of the Society of Actuaries and a
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 Member of the American Academy of Actuaries. I am a member of NYCERS but
 do not believe it impairs my objectivity and 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  2023-61  dated  May  30,
 2023  was  prepared  by  the  Chief  Actuary  for the New York City Fire
 Pension Fund. This estimate is intended for use  only  during  the  2023
 Legislative Session.