A07389 Summary:

BILL NOA07389A
 
SAME ASSAME AS S07075-A
 
SPONSORPheffer Amato
 
COSPNSRCunningham, Weprin, Zaccaro, Eachus, Sillitti
 
MLTSPNSR
 
Amd §607-b, R & SS L
 
Relates to the eligibility of New York city transit authority employees for performance of duty disability retirement.
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A07389 Actions:

BILL NOA07389A
 
05/19/2023referred to governmental employees
01/03/2024referred to governmental employees
03/13/2024amend and recommit to governmental employees
03/13/2024print number 7389a
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A07389 Committee Votes:

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A07389 Floor Votes:

There are no votes for this bill in this legislative session.
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A07389 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7389A
 
SPONSOR: Pheffer Amato
  TITLE OF BILL: 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   PURPOSE OR GENERAL IDEA OF BILL: Relates to extending the benefits of the variable supplements fund for transit police members of the New York City employees' retirement system.   SUMMARY OF PROVISIONS: Amends paragraph c of subdivision 1 of section 13-191 of the administra- tive code of the city of New York to provide for the payment of Transit Police Officers' and Transit Police Superior Officers' Variable Supple- ments Funds (VSF) benefits to former New York City Employees' Retirement System (NYCERS) members who are retired for service from the New York City Transit Police (TP) between October 1, 1968 and June 30, 1987 (Prior Retirees) with 20 or more years of service. These benefits would be paid from the following VSFs: Transit Police Officers' Variable Supplements Fund (TPOVSF), and Transit Police Superi- or Officers' Variable Supplements Fund (TPSOVSF). The amount of VSF benefits paid is currently $12,000 per Calendar Year. These VSF benefits are payable on an annual basis around December 15th to eligible former NYCERS members for their lifetimes. There are no optional forms of payment. Upon the death of the NYCERS retiree, VSF payments cease.   JUSTIFICATION: Former members of the NYC Transit Police that retired for service after June 30, 1987 presently receive a supplemental benefit from the Variable Supplements Fund ("VSF"). The VSF was enacted into law because of a fact finders award in 1970 and was granted to members of the NYC Police and Fire pension funds who retired for service after October 1, 1968. In the mid-1960s, members of the Transit Police• were granted and given pay and retirement benefit parity. However, the VSF was not bestowed upon similarly situated members of the department until legislation was enacted effective after July 1, 1987. As a result, members were in pari- ty until unjustly removed on July 24, 1992, as beneficiaries. As a matter of equity and fairness, the VSF should be granted to all members of the Transit Police who retired from service subsequent to October 1, 1968.   PRIOR LEGISLATIVE HISTORY: 2022 Session - Amended and Recommit to Civil Service and Pensions 2020 Session - S8306 - referred to Civil Service and Pensions S.6823 2017-18 Session - referred to Civil Service and Pensions Committee   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Please see fiscal note   EFFECTIVE DATE: This act shall take effect immediately.
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A07389 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7389--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 19, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  PHEFFER AMATO,  CUNNINGHAM, WEPRIN, ZACCARO,
          EACHUS, SILLITTI -- read once and referred to the Committee on Govern-
          mental Employees --  recommitted  to  the  Committee  on  Governmental
          Employees  in  accordance  with  Assembly  Rule 3, sec. 2 -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
 
        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:
 
     1    Section  1. Section 607-b of the retirement and social security law is
     2  amended by adding a new subdivision a-1 to read as follows:
     3    a-1. Any member of the New York city employees' retirement system  who
     4  is  employed by the New York city transit authority and who participated
     5  in World Trade Center rescue, recovery or cleanup operations, as defined
     6  in section two of this chapter, who, on or after September eleventh, two
     7  thousand one, becomes  physically  or  mentally  incapacitated  for  the
     8  performance  of  duties as the natural and proximate result of an injury
     9  sustained in the performance or discharge of his  or  her  duties  as  a
    10  result  of  such participation in World Trade Center rescue, recovery or
    11  cleanup operations shall  be  paid  a  performance  of  duty  disability
    12  retirement  allowance  equal  to three-quarters of final average salary,
    13  subject to section 13-176 of the administrative code of the city of  New
    14  York.  Any  member  who has made application or who, after the effective
    15  date of this subdivision, makes application for such performance of duty
    16  pension shall  be  entitled  to  invoke  the  medical  review  procedure
    17  provided  for in subdivision e of section six hundred five of this arti-
    18  cle, subject to the terms and conditions set forth in such subdivision.
    19    § 2. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08375-04-4

        A. 7389--A                          2
 
          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
        disability retirement equivalent to 75% of the  member's  Final  Average
        Salary (FAS) prospectively as of the effective date.
 
                      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
 
             2025        12,200              31                      31
             2026             0              31                      62
             2027             0              31                      95
             2028             0              31                     128
             2029             0              31                     162
             2030             0              31                     198
             2031             0              31                     234
             2032             0              31                     272
             2033             0              31                     311
             2034             0              31                     351
             2035             0              31                     392
             2036             0              31                     434
             2037             0              31                     478
             2038             0              31                     523
             2039             0               0                     539
             2040             0               0                     555
             2041             0               0                     571
             2042             0               0                     588
             2043             0               0                     606
             2044             0               0                     624
             2045             0               0                     643
             2046             0               0                     662
             2047             0               0                     682
             2048             0               0                     703
             2049             0               0                     724
           Employer contribution impact beyond Fiscal Year 2049 is not shown.
 
          The potential increases in employer contributions will be allocated to
        the NYCTA.
 
                  EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                           as of June 30, 2023 ($ in Millions)
 
             Present Value (PV)               Current WTC        Future WTC
                                                Retirees       Per Disability
 
             PV of Benefits:                      11.0               0.3
             PV of Employee Contributions:         0.0               0.0
             PV of Employer Contributions:        11.0               0.3
             Unfunded Accrued Liabilities:        11.0               0.3
 
                       AMORTIZATION OF UNFUNDED ACCRUED LIABILITY

        A. 7389--A                          3
 
             Recognized as Ongoing         WTC Retirees        Per WTC Disability
                 Gain/Loss
             Number of Payments:                1                     14
             Amortization Payment:            12.2 M                0.03 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, 2023. The census data
        for members who have been approved for WTC benefits and the  potentially
        impacted  population  used  to  develop  the average costs is summarized
        below.
 
                                                              NYCERS
                  Active Members (Potentially Eligible)
                  - Number Count:                              7,919
                  - Average Age:                                57.4
                  - Average Service:                            24.4
                  - Average Salary:                          103,300
                  Receiving Members (Current WTC)
                  - Number Count:                                 52
                  - Average Age:                                65.4
 
          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  of  1/60th  of  Final  Average
        Salary (FAS) times service not less than 1/3 of FAS.
          Under  the  proposed  legislation,  the performance of duty disability
        benefit for a NYCTA member who incur a World Trade Center (WTC) Qualify-
        ing Condition would be equal to:
          * 75% of FAS, where
          * FAS is defined as 3-Year FAS for Tier 4 and 5-Year FAS for  Tier  6,
        less
          * any applicable Workers' Compensation benefit.
          ASSUMPTIONS  AND  METHODS:  The  estimates  presented herein have been
        calculated based on the Revised 2021 Actuarial Assumptions  and  Methods
        of NYCERS.
          There  are  currently  52 members who have been approved for WTC bene-
        fits.  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 inci-
        dent 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 RSSL Section 607-b. Costs 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

        A. 7389--A                          4
 
        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 2024-23 dated  March  11,
        2024  was prepared by the Chief Actuary for the New York City Retirement
        Systems and Pension Funds. This estimate is intended for use only during
        the 2024 Legislative Session.
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A07389 LFIN:

 NO LFIN
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A07389 Chamber Video/Transcript:

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