S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4580
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 7, 2025
                                ___________
 
 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 retirement and social security law, in  relation  to
   removing  eligibility or receipt of primary social security disability
   benefits as a condition for ordinary disability retirement for certain
   members
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  506 of the retirement and social security law is
 amended by adding a new subdivision c-2 to read as follows:
   C-2. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SUBDIVISION A, B OR
 C-1 OF THIS SECTION, THE ORDINARY DISABILITY BENEFIT FOR A NEW YORK CITY
 ENHANCED PLAN MEMBER IN THE NEW YORK CITY FIRE DEPARTMENT SHALL  NOT  BE
 CONDITIONED  UPON  ELIGIBILITY  FOR,  OR UPON RECEIPT OF, PRIMARY SOCIAL
 SECURITY DISABILITY BENEFITS.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This  proposed  legislation  modifies  Ordinary   Disability
 Retirement  (ODR) eligibility for Tier 3 members of FIRE by removing the
 requirement of being eligible for  primary  Social  Security  disability
 benefits (SSDI).
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
 
                           Year    FIRE
 
                           2026     0.4
                           2027     0.4
                           2028     0.5
                           2029     0.5
                           2030     0.6
                           2031     0.6
                           2032     0.7
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00428-02-5
 S. 4580                             2
 
                           2033     0.7
                           2034     0.8
                           2035     0.9
                           2036     0.9
                           2037     1.0
                           2038     1.0
                           2039     1.1
                           2040     1.2
                           2041     1.3
                           2042     1.3
                           2043     1.4
                           2044     1.4
                           2045     1.5
                           2046     1.6
                           2047     1.7
                           2048     1.7
                           2049     1.8
                           2050     1.9

   Projected contributions include future new hires that may be impacted.
 For  Fiscal  Year  2051  and beyond, the increase in normal cost for new
 entrants will remain level as a percent of pay for  the  impacted  popu-
 lation (approximately 0.06%).
   The entire increase in employer contributions will be allocated to New
 York City.
   PRESENT  VALUE  OF  BENEFITS:  The  Present  Value  of Benefits is the
 discounted expected value of benefits paid to  current  members  if  all
 assumptions are met, including future service accrual and pay increases.
 Future new hires are not included in this present value.
 
          INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
                    as of June 30, 2024 ($ in Millions)
 
                Present Value (PV)                 FIRE
 
                (1) PV of Employer Contributions:  5.8
                (2) PV of Employee Contributions:  0.0
                Total PV of Benefits (1) + (2):    5.8
 
   UNFUNDED  ACCRUED  LIABILITY  (UAL): Actuarial Accrued Liabilities are
 the portion of the Present Value of Benefits allocated to past  service.
 Changes  in UAL were amortized over the expected remaining working life-
 time of those impacted using level dollar payments.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                                                    FIRE
 
                Increase (Decrease) in UAL:        0.5 M
                Number of Payments:                17
                Amortization Payment:              0.1 M
 
   CENSUS DATA: The estimates presented herein are based  on  preliminary
 census  data  collected  as  of  June  30, 2024. The census data for the
 impacted population is summarized below.
 S. 4580                             3
 
                                                      FIRE
 
                Active Members
                - Number Count:                      5,571
                - Average Age:                        34.1
                - Average Service:                     6.2
                - Average Salary:                  118,600
 
   IMPACT  ON  ELIGIBILITY:  Currently,  active Tier 3 FIRE enhanced plan
 members with at least five years of credited service are  only  eligible
 for  an  ODR  benefit  if  they are approved for primary Social Security
 disability benefits (SSDI).
   Under the proposed legislation, Tier 3 FIRE enhanced plan members with
 at least five years of credited service would be  eligible  for  an  ODR
 benefit, irrespective of SSDI eligibility.
   The  formula  for  calculating Enhanced Plan ODR benefits would remain
 unchanged
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems. In addition:
   * New entrants were assumed to replace exiting members so  that  total
 payroll increases by 3% each year for impacted groups. New entrant demo-
 graphics were developed based on data for recent new hires and actuarial
 judgement.
   *  For  purposes of this Fiscal Note, it has been assumed that 100% of
 members exiting for ODR under current ODR rates would be ineligible  for
 SSDI.
   *  It is assumed that the Medical Board will be responsible for deter-
 mining the eligibility for ODR benefits in place of  the  SSDI  require-
 ment.
   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). This Fiscal Note does not reflect any chapter
 laws that may have been enacted during the current legislative session.
   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 2025-06 dated February 4,
 2025  was prepared by the Chief Actuary for the New York City Retirement
 Systems and Pension Funds and is intended for use only during  the  2025
 Legislative Session.