NY State Assembly Bill 2023-A7734A

Assembly Bill A7734A

2023-2024 Legislative Session

Authorizes Frank R. Smith to receive accidental performance of duty disability retirement benefits

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Current Bill Status - In Assembly 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 12, 2024	print number 7734a
Mar 12, 2024	amend and recommit to governmental employees
Jan 03, 2024	referred to governmental employees
Jun 06, 2023	referred to governmental employees

Bill Amendments

Original

A (Active)

2023-A7734 - Details

See Senate Version of this Bill:: S7407
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement
Versions Introduced in 2021-2022 Legislative Session:: S7181

2023-A7734 - Summary

Authorizes Frank Smith, a New York city police detective, to receive accidental performance of duty disability retirement benefits for illness suffered as a result of exposure to disease during undercover assignments as a member of the police department of the city of New York.

2023-A7734 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7734
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 2023
                                ___________
 
 Introduced by M. of A. REILLY -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT to authorize Frank R. Smith to receive performance of duty disa-
   bility retirement benefits
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Notwithstanding any other provision of law, Frank R. Smith,
 a  retired member of the New York city police department, who joined the
 New York city employees retirement system  on  June  30,  1992  and  who
 applied  for  accidental performance of duty disability retirement bene-
 fits based upon illnesses suffered as a result of exposure  to  diseases
 during  the  course  of  undercover duties performed beginning in August
 2002, and who has had those benefits denied,  shall  be  hereby  awarded
 such benefits retroactively from his August 12, 2009 service retirement.
   § 2. The benefits and awards provided for under this act shall be paid
 for,  and  shared  equally  by,  all public retirement systems, of which
 Frank R. Smith was a member.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: Police officer Frank R. Smith retired with  an  Ordi-
 nary  Disability  Retirement (ODR) from the New York City Police Pension
 Fund (POLICE) on  August  12,  2009.  This  proposed  legislation  would
 reclassify  Mr.  Smith's  benefit  as  an Accident Disability Retirement
 (ADR). The ADR benefit would be payable prospectively and  retroactively
 to Mr.  Smith's August 12, 2009 date of retirement.
   Effective Date: Upon enactment and retroactive to August 12, 2009.
   FINANCIAL  IMPACT - PRESENT VALUES: Based on the actuarial assumptions
 and methods described herein, the enactment of this proposed legislation
 would increase the Present Value  of  Future  Benefits  (PVFB)  and  the
 Unfunded  Accrued  Liability  (UAL)  by approximately $1.2 million as of
 June 30, 2023.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08767-02-3

 A. 7734                             2
 
   The estimated financial impact of this proposed legislation  has  been
 calculated  based on the difference between the present value of (1) the
 ADR benefits Mr. Smith would receive if this proposed  legislation  were
 enacted (retroactive to his August 12, 2009 retirement date) and (2) the
 ODR benefits that have been and are expected to be paid to Mr.  Smith if
 this  proposed legislation were not enacted. For purposes of this Fiscal
 Note, it has been assumed that the  increase  in  benefits  for  periods
 prior to June 30, 2023 would not be credited with interest.
   Mr.  Smith  has  been  receiving a pension of $65,846 per year payable
 under the maximum form of payment (i.e., payable to him as long as he is
 alive) since his retirement date of August 12, 2009. If this legislation
 is enacted, he would receive an ADR pension of $111,093 per  year  under
 the maximum form of payment, retroactive to his retirement date.
   For  the  purposes  of  calculating  the fiscal impact of the proposed
 legislation, Mr. Smith's actual June 30, 1992 date  of  membership  with
 POLICE  and  the  change from his actual ODR benefit to the proposed ADR
 benefit were used. All costs associated with the implementation of  this
 proposed legislation would be borne by POLICE.
   FINANCIAL  IMPACT  -  ANNUAL  EMPLOYER CONTRIBUTIONS: The enactment of
 this proposed legislation would result in an  increase  in  Fiscal  Year
 2025 employer contributions of approximately $1.3 million.
   New  UAL  attributable to benefit changes generally amortized over the
 remaining working lifetime of those impacted  by  the  benefit  changes.
 Since  Mr.  Smith is retired and collecting a pension, and therefore has
 no remaining working lifetime, the  entire  increase  in  UAL  would  be
 recognized immediately.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the June 30, 2022 actuarial valuation of POLICE  to  deter-
 mine the Preliminary Fiscal Year 2024 employer contributions.
   As  of June 30, 2023, Mr. Smith will be approximately age 53, and will
 receive a pension of $65,846 per year under the maximum payment option.
   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 POLICE.
   For  the  purposes of this Fiscal Note, it is assumed that the changes
 would be reflected for the first time in the  June  30,  2023  actuarial
 valuation  of POLICE used to determine employer contributions for Fiscal
 Year 2025.
   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
 Member of the American Academy of Actuaries. I am a member of NYCERS but
 A. 7734                             3
 
 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 2023-52 dated May 19,
 2023 was prepared by the Chief Actuary for  the  New  York  City  Police
 Pension  Fund.  This  estimate  is intended for use only during the 2023
 Legislative Session.

2023-A7734A (ACTIVE) - Details

See Senate Version of this Bill:: S7407
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement
Versions Introduced in 2021-2022 Legislative Session:: S7181

2023-A7734A (ACTIVE) - Summary

2023-A7734A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7734--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 2023
                                ___________
 
 Introduced by M. of A. REILLY -- read once and referred to the Committee
   on  Governmental  Employees -- recommitted to the Committee on Govern-
   mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted to said committee

 AN  ACT to authorize Frank R. Smith to receive performance of duty disa-
   bility retirement benefits
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Notwithstanding any other provision of law, Frank R. Smith,
 a  retired member of the New York city police department, who joined the
 New York city employees retirement system  on  June  30,  1992  and  who
 applied  for  accidental performance of duty disability retirement bene-
 fits based upon illnesses suffered as a result of exposure  to  diseases
 during  the  course  of  undercover duties performed beginning in August
 2002, and who has had those benefits denied,  shall  be  hereby  awarded
 such benefits retroactively from his August 12, 2009 service retirement.
   § 2. The benefits and awards provided for under this act shall be paid
 for,  and  shared  equally  by,  all public retirement systems, of which
 Frank R. Smith was a member.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
 SUMMARY: This proposed legislation would allow Police officer  Frank  R.
 Smith  who  retired  from the New York City Police Pension Fund (POLICE)
 with an Ordinary Disability Retirement to be reclassified as an Accident
 Disability Retirement.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                          Year      POLICE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08767-04-4

 A. 7734--A                          2
 
                          2025           0
                          2026         1.4
                          2027           0
                          2028           0
                          2029           0
                          2030           0
                          2031           0
                          2032           0
                          2033           0
                          2034           0
                          2035           0
                          2036           0
                          2037           0
                          2038           0
                          2039           0
                          2040           0
                          2041           0
                          2042           0
                          2043           0
                          2044           0
                          2045           0
                          2046           0
                          2047           0
                          2048           0
                          2049           0
   The entire increase in employer contributions will be allocated to New
 York City.
 
           EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                    as of June 30, 2024 ($ in Millions)
              Present Value (PV)                 POLICE
              PV of Benefits:                      1.2
              PV of Employee Contributions:          0
              PV of Employer Contributions:        1.2
              Unfunded Accrued Liabilities:        1.2
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                                 POLICE
              Number of Payments:                   1
              Fiscal Year of Last Payment:        2026
              Amortization Payment:              1.4 M
 
   Since Mr. Smith is retired and collecting a pension, and therefore has
 no  remaining  working lifetime, the entire increase in Unfunded Accrued
 Liabilities would be recognized immediately.
   CENSUS DATA: The estimates presented herein are based  on  preliminary
 census  data  collected  as  of  June  30, 2023. The census data for the
 current impacted population is summarized below.
 
                                                 POLICE
              Receiving Members
              - Number Count:                        1
              - Average Age:                      53.0
 A. 7734--A                          3

   BACKGROUND: Mr. Smith retired with an Ordinary  Disability  Retirement
 from  POLICE on August 12, 2009. He currently receives an annual pension
 of $68,150 per year payable under the maximum  form  of  payment  (i.e.,
 payable to him as long as he is alive).
   If  the proposed legislation is enacted, Mr. Smith's retirement allow-
 ance would be recalculated as an Accident Disability Retirement and  his
 annual  pension would increase to $113,397 per year. This increase would
 apply prospectively as well as retroactively, to  Mr.  Smith's  original
 date of retirement.
   ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
 calculated based on the Revised 2021 Actuarial Assumptions  and  Methods
 of the impacted retirement systems.
   For  purposes  of calculating the fiscal impact of the proposed legis-
 lation, it has been assumed that the increase in  benefits  for  periods
 prior to June 30, 2024 would not be credited with interest.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the actuarial assumptions, methods,  and  models  used,  demo-
 graphics  of  the impacted population, and other factors such as invest-
 ment, contribution, and other risks. If actual experience deviates  from
 actuarial   assumptions,  the  actual  costs  could  differ  from  those
 presented herein. Quantifying these risks is beyond the  scope  of  this
 Fiscal Note.
   This  Fiscal  Note  is intended to measure pension-related impacts and
 does not include other potential costs (e.g., administrative  and  Other
 Postemployment Benefits).
   STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
 sky  are members of the Society of Actuaries and the American Academy of
 Actuaries. We are members of NYCERS but do not believe  it  impairs  our
 objectivity  and  we  meet  the  Qualification Standards of the American
 Academy of Actuaries to render the actuarial opinion  contained  herein.
 To  the  best  of  our 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  2024-16  dated  February
 23, 2024 was prepared by the Chief Actuary for the New York City Retire-
 ment  Systems  and Pension Funds. This estimate is intended for use only
 during the 2024 Legislative Session.

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