S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7529
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              April 21, 2025
                                ___________
 
 Introduced  by Sen. SCARCELLA-SPANTON -- 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
   the  eligibility  of  New  York  city  transit authority employees for
   performance of duty disability retirement

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 607-b of the retirement and social security law is
 amended by adding a new subdivision a-1 to read as follows:
   A-1. ANY MEMBER OF THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM  WHO
 IS  EMPLOYED BY THE NEW YORK CITY TRANSIT AUTHORITY AND WHO PARTICIPATED
 IN WORLD TRADE CENTER RESCUE, RECOVERY OR CLEANUP OPERATIONS, AS DEFINED
 IN SECTION TWO OF THIS CHAPTER, WHO, ON OR AFTER SEPTEMBER ELEVENTH, TWO
 THOUSAND ONE, BECOMES  PHYSICALLY  OR  MENTALLY  INCAPACITATED  FOR  THE
 PERFORMANCE  OF  DUTIES AS THE NATURAL AND PROXIMATE RESULT OF AN INJURY
 SUSTAINED IN THE PERFORMANCE OR DISCHARGE OF SUCH MEMBER'S DUTIES  AS  A
 RESULT  OF  SUCH PARTICIPATION IN WORLD TRADE CENTER RESCUE, RECOVERY OR
 CLEANUP OPERATIONS SHALL  BE  PAID  A  PERFORMANCE  OF  DUTY  DISABILITY
 RETIREMENT  ALLOWANCE  EQUAL  TO THREE-QUARTERS OF FINAL AVERAGE SALARY,
 SUBJECT TO SECTION 13-176 OF THE ADMINISTRATIVE CODE OF THE CITY OF  NEW
 YORK.  ANY  MEMBER  WHO HAS MADE APPLICATION OR WHO, AFTER THE EFFECTIVE
 DATE OF THIS SUBDIVISION, MAKES APPLICATION FOR SUCH PERFORMANCE OF DUTY
 PENSION SHALL  BE  ENTITLED  TO  INVOKE  THE  MEDICAL  REVIEW  PROCEDURE
 PROVIDED  FOR IN SUBDIVISION E OF SECTION SIX HUNDRED FIVE OF THIS ARTI-
 CLE, SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN SUCH SUBDIVISION.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation would grant New York  City  Transit
 Authority (NYCTA) active and retired members of NYCERS who have incurred
 a  World  Trade Center (WTC) Qualifying Condition, a performance of duty
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08329-02-5
              

 S. 7529                             2
 
 disability retirement equivalent to 75% of the  member's  Final  Average
 Salary prospectively as of the effective date.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
          by Fiscal Year for the first 25 years ($ in Thousands)
 
                                 Future Incidents (Illustration)
         Year  Current WTC       One Incident      One Incident
                 Retirees                           Per Year
         2026      14,100                  23                 23
         2027           0                  23                 47
         2028           0                  23                 71
         2029           0                  23                 96
         2030           0                  23                122
         2031           0                  23                148
         2032           0                  23                176
         2033           0                  23                204
         2034           0                  23                233
         2035           0                  23                263
         2036           0                  23                294
         2037           0                  23                326
         2038           0                  23                358
         2039           0                  23                392
         2040           0                   0                404
         2041           0                   0                416
         2042           0                   0                428
         2043           0                   0                441
         2044           0                   0                454
         2045           0                   0                468
         2046           0                   0                482
         2047           0                   0                496
         2048           0                   0                511
         2049           0                   0                527
         2050           0                   0                543
 
    Employer contribution impact beyond Fiscal Year 2050 is not shown.
 
   The potential increases in employer contributions will be allocated to
 the NYCTA.
   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)                   Current       Per Future
                                           WTC           WTC
                                         Retirees      Disability
    (1) PV of Employer Contributions:        12.8           0.2
    (2) PV of Employee Contributions:         0.0          (0.0)
    Total PV of Benefits (1) + (2):          12.8           0.2
 
   UNFUNDED  ACCRUED  LIABILITY  (UAL): Actuarial Accrued Liabilities are
 the portion of the Present Value of Benefits allocated to past  service.
 S. 7529                             3
 
 Changes  in UAL attributable to future incidents were amortized as ongo-
 ing gain/loss using level dollar payments. UAL attributable to  inactive
 members was recognized in the first year.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                          WTC          Per WTC
                                         Retirees      Disability
 Increase (Decrease) in UAL:             12.8 M         0.2 M
 Number of Payments:                        1            14
 Amortization Payment:                   14.1 M        0.02 M
   CENSUS DATA: The number of members who will benefit in the future from
 this fiscal note is unknown. The estimates presented herein are based on
 preliminary  census  data collected as of June 30, 2024. The census data
 for members who have been approved for WTC benefits and  the  population
 used to develop the average costs (potentially impacted members who have
 filed qualified WTC notices of participation) is summarized below.
 
                                                       NYCERS
 Receiving Members (Current WTC)
 - Number Count:                                           59
 - Average Age:                                          65.2
 Active Members (Potentially Eligible)
 - Number Count:                                          224
 - Average Age:                                          57.7
 - Average Service:                                      26.2
 - Average Salary:                                    113,900
 Receiving Members (Potentially Eligible)
 - Number Count:                                        1,005
 - Average Age:                                          67.6
   IMPACT  ON MEMBER BENEFITS: Currently, a NYCTA member who incurs a WTC
 Qualifying Condition, is eligible for a performance of  duty  disability
 retirement,  generally a lifetime payment equal to the greater of 1/3 of
 Final Average Salary (FAS), 1/60th of FAS times service, or the  service
 retirement benefit, if eligible.
   Under  the  proposed  legislation,  the performance of duty disability
 benefit for a NYCTA member who incurs a WTC Qualifying  Condition  would
 be  equal to 75% of FAS, less any applicable Workers' Compensation bene-
 fit.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems.
   There are currently 59 members who have been approved for WTC disabil-
 ity benefits. The cost for these members is recognized in the first-year
 cost. The number of additional members and eligible  retirees  who  will
 benefit  in  the future from this fiscal note is unknown and included as
 per-incident WTC disability costs. The cost of this proposed legislation
 could vary greatly depending on the number of future members who benefit
 and on their length of service, age, and salary history.
   The estimated per-incident financial impact for disabled  members  has
 been calculated assuming 50% would retire under an Accidental Disability
 benefit, and 50% would continue working if the proposed legislation were
 not passed.
   The  bill  appears  to  grant  eligible NYCTA members and retirees the
 ability to utilize the presumptions for infectious diseases pursuant  to
 subsection  b of Retirement and Social Security Law Section 607-b. Costs
 S. 7529                             4
 
 associated with granting these presumptions have not  been  included  in
 this Fiscal Note.
   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 2025-43 dated April 17,
 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.