S T A T E O F N E W Y O R K
________________________________________________________________________
6862
2023-2024 Regular Sessions
I N S E N A T E
May 11, 2023
___________
Introduced by Sen. JACKSON -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the general municipal law, in relation to disabilities
of fire alarm dispatchers in certain cities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general municipal law is amended by adding a new
section 207-r to read as follows:
§ 207-R. DISABILITIES OF FIRE ALARM DISPATCHERS IN CERTAIN CITIES.
NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL LAW OR
ADMINISTRATIVE CODE TO THE CONTRARY, EXCEPT FOR THE PURPOSES OF THE
WORKERS' COMPENSATION LAW AND THE LABOR LAW, ANY CONDITION OF IMPAIRMENT
OF HEALTH CAUSED BY DISEASES OF THE HEART, RESULTING IN TOTAL OR PARTIAL
DISABILITY OR DEATH TO A FIRE ALARM DISPATCHER, A SUPERVISING FIRE ALARM
DISPATCHER LEVEL ONE OR A SUPERVISING FIRE ALARM DISPATCHER LEVEL TWO OF
A FIRE DEPARTMENT IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, OR
ANY RETIRED MEMBER OF SUCH DEPARTMENT WHO HAS BEEN RETIRED FOR FIVE OR
LESS YEARS, WHO SUCCESSFULLY PASSED A PHYSICAL EXAMINATION ON ENTRY INTO
THE SERVICE OF SUCH DEPARTMENT, 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.
§ 2. All past service costs associated with implementing the
provisions of this act shall be borne by the city of New York.
§ 3. Notwithstanding any other provision of law to the contrary, none
of the provisions of this act shall be subject to the appropriation
requirement of section 25 of the retirement and social security law.
§ 4. This act shall take effect immediately.
FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
SUMMARY OF BILL: This proposed legislation, as it relates to the New
York City Retirement Systems and Pension Funds (NYCRS), would add a new
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10279-02-3
S. 6862 2
General Municipal Law (GML) Section 207-r to provide certain Fire Alarm
Dispatchers of the New York City Employees' Retirement System (NYCERS) a
rebuttable statutory presumption that a qualifying partial or total
disability or death related to a heart disease was incurred in the
performance of duty.
The presumption of causation could be rebutted by competent evidence
to the contrary.
Effective Date: Upon enactment.
IMPACT ON BENEFITS: Currently, an active member of NYCERS who is
employed as a Fire Alarm Dispatcher and becomes disabled due to heart
disease would be eligible for an applicable ordinary disability retire-
ment benefit, after attaining 10 years of credited service. This benefit
is generally a lifetime payment equal to the greatest of 1/3 of Final
Average Salary (FAS), 1/60th of FAS for each year of service, or the
service retirement benefit, if eligible.
The ordinary death benefit for Tier 4 and Tier 6 NYCERS Fire Alarm
Dispatchers is a lump sum payment equal to three times the member's
salary multiplied by the member's years of service, up to a maximum of
three years. The performance of duty death benefit is generally equal to
a lifetime benefit of 50% of a member's wages earned during the last
year of service, payable to certain beneficiaries.
Under the proposed legislation, an active member of NYCERS who is
employed as a Fire Alarm Dispatcher and becomes disabled due to heart
disease would be eligible for a performance of duty disability benefit
if the presumption is not rebutted by competent evidence. A member who
dies due to heart disease would be eligible for a performance of duty
death benefit if the presumption is not rebutted by competent evidence.
FINANCIAL IMPACT - OVERVIEW: There is no data available to estimate
the number of members who might develop and become disabled or die due
to heart disease and potentially benefit from this proposed legislation.
Therefore, the estimated financial impact has been calculated on a per
event basis equal to the increase in the present value of future employ-
er contributions for an average member who could potentially be diag-
nosed with disabling heart disease 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 members would terminate employment
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 Ordinary Disability benefit when the disabling heart
disease is 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
employer contributions by approximately $233,300, on average, for each
occurrence of Performance of Duty Disability Retirement due to heart
S. 6862 3
disease and $304,200, on average, for each occurrence of Performance of
Duty Death due to heart disease.
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 each 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 $27,600 for each Performance of
Duty Disability Retirement due to heart disease and by approximately
$36,000 for each Performance of Duty Death due to heart disease.
As there is no data currently available to estimate the number of
members who might be diagnosed with heart disease, 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 heart disease 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 NYCERS to deter-
mine the Preliminary Fiscal Year 2024 employer contributions.
The 186 Fire Alarm Dispatchers and Supervising Fire Alarm Dispatchers
as of June 30, 2022, who could potentially benefit from the change in
the death benefit presumption, had an average age of approximately 40.5
years, average service of approximately 12.0 years, and an average sala-
ry of approximately $81,800. This group consisted of 113 Tier 4 active
members and 73 Tier 6 active members.
The 77 Fire Alarm Dispatchers and Supervising Fire Alarm Dispatchers
as of June 30, 2022, who could potentially benefit from the change in
the disability benefit presumption, had an average age of approximately
33.8 years, average service of approximately 5.1 years, and an average
salary of approximately $69,400. This group consisted of four Tier 4
active members and 73 Tier 6 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 NYCERS.
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.
S. 6862 4
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
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 2023-44 dated May 9, 2023
was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for use only during the
2023 Legislative Session.
