Relates to providing a final average salary disability retirement benefit to certain participants in World Trade Center rescue, recovery, or cleanup operations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8278C
SPONSOR: Weprin TITLE OF BILL: An act to amend the retirement and social security
law, in relation to disability retirement benefits for certain partic-
ipants in World Trade Center rescue, recovery, or cleanup operations
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of the bill is to expand eligibility for the World Trade
Center disability benefits to include Tier 3 and 4 public employees who
are members of the State and Local Employees' Retirement System or the
State Teachers Retirement System and extend the filing deadline.
SUMMARY OF SPECIFIC PROVISIONS:
Sections 1 and 2 of the bill amend subdivision d of section 605 (Tier 4)
and subdivisions h and i of section 507 (Tier 3) of the retirement and
social security law to require that any member of the State and Local
Employees' Retirement System or the State Teachers Retirement System
with an active membership at the time, who participated in World Trade
Center rescue, recovery or cleanup operations, and who is determined to
have incurred a qualifying condition, be paid a duty disability retire-
ment allowance equal to three-quarters of final average salary. It
requires that the condition is determined to have been incurred in the
performance and discharge of that person's job duty, and is the natural
and proximate result of an accident and not caused by that member's
willful negligence.
Section 3 provides that this bill will not be subject to section 25 of
the RSS law.
Section 4 provides for this act to take effect immediately.
JUSTIFICATION:
After the 9/11 attacks on the World Trade Center (WTC), numerous agency
employees responded and were involved in the rescue, recovery and clean-
up operations. During the course of their participation after the
attacks, and throughout the years following, many responders fell ill
with respiratory tract diseases, gastroesophageal tract diseases, and
onset pulmonary, asbestos-related musculoskeletal diseases and cancers,
ultimately becoming unable to work. In order to help those responders,
the World Trade Center Disability Law was signed into law in 2005.
Under the World Trade Center Disability Law, certain public employees
and retirees who were on duty and involved in a 9/11 related rescue,
recovery or cleanup, and became disabled as a result, are eligible for a
rebuttable presumption that his/her disability was the result of a work
related accident. This law allowed most of the uniformed first respon-
ders, such as police, fire, emergency response personnel, correction and
sanitation to qualify for a three-fourths or 75% salary disability
pension benefit. However, this law did not create a 75% disability bene-
fit for all public employees/retirees who met a rebuttable presumption,
which meant that only those whose membership tier of the Retirement
System provided a 75% accidental benefit could benefit from the enhanced
benefits. Under this law, non-uniform agency responders whose membership
tier was not covered by 75% salary benefit were unable to obtain the
enhanced 75% salary benefit even if they satisfied the rebuttable
presumption.
For example, a Tier 4 non-uniform public employee who develops cancer as
a result of his participation at the WTC site is not eligible for the
75% accidental retirement benefits under the existing WTC Disability
Law. In order to right this wrong, this legislation expands those eligi-
ble to receive the WTC enhanced disability pension benefits to include
all non-uniform municipal employee responders of 9/11 regardless of
their tiers and positions.
PRIOR LEGISLATIVE HISTORY:
2015-16: S.3521-B (Avella)
2017-18: S63715 (Avella)/A8433-C (Weprin)
FISCAL IMPLICATIONS:
See fiscal notes contain within text of bill.
EFFECTIVE DATE:
This act shall take effect immediately and apply to all members who are
determined to have incurred a qualifying World Trade Center condition in
the performance and discharge of duty that is the natural and proximate
result of an accident not caused by such member's own willingful negli-
gence prior to the effective date of this act.
STATE OF NEW YORK
________________________________________________________________________
8278--C
2019-2020 Regular Sessions
IN ASSEMBLY
June 11, 2019
___________
Introduced by M. of A. WEPRIN, COLTON, RA -- read once and referred to
the Committee on Governmental Employees -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- again reported from said
committee with amendments, ordered reprinted as amended and recommit-
ted to said committee
AN ACT to amend the retirement and social security law, in relation to
disability retirement benefits for certain participants in World Trade
Center rescue, recovery, or cleanup operations
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 4 of subdivision d of section 605 of the retire-
2 ment and social security law is renumbered paragraph 5 and a new para-
3 graph 4 is added to read as follows:
4 4. Notwithstanding any other law, rule or regulation to the contrary,
5 any member who had an active membership in the New York state and local
6 employees' retirement system or the New York state teachers' retirement
7 system, when such member participated in World Trade Center rescue,
8 recovery, or cleanup operations, as such participation is defined in
9 section two of this chapter, who incurred a qualifying World Trade
10 Center condition, as defined in section two of this chapter, that is
11 determined to have been incurred in the performance and discharge of
12 duty and is the natural and proximate result of an accident not caused
13 by such member's own willful negligence, shall be paid a performance of
14 duty disability retirement allowance equal to three-quarters of final
15 average salary. The payment of such pension shall be subject to the
16 provisions of section sixty-four of this chapter.
17 § 2. Section 507 of the retirement and social security law is amended
18 by adding a new subdivision h-1 to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08565-16-9
A. 8278--C 2
1 h-1. Notwithstanding any other law, rule or regulation to the contra-
2 ry, any member who had an active membership in the New York state and
3 local employees' retirement system or the New York state teachers'
4 retirement system, when such member participated in World Trade Center
5 rescue, recovery, or cleanup operations, as such participation is
6 defined in section two of this chapter, who incurred a qualifying World
7 Trade Center condition, as defined in section two of this chapter, that
8 is determined to have been incurred in the performance and discharge of
9 duty and is the natural and proximate result of an accident not caused
10 by such member's own willful negligence, shall be paid a performance of
11 duty disability retirement allowance equal to three-quarters of final
12 average salary. The payment of such pension shall be subject to the
13 provisions of section sixty-four of this chapter.
14 § 3. Notwithstanding any other provision of law to the contrary, none
15 of the provisions of this act shall be subject to section 25 of the
16 retirement and social security law.
17 § 4. This act shall take effect immediately and apply to all active
18 members who are determined to have incurred a qualifying World Trade
19 Center condition in the performance and discharge of duty that is the
20 natural and proximate result of an accident not caused by such member's
21 own willful negligence prior to the effective date of this act.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend the benefits of certain members of public
retirement systems who are subject to the provisions of Article 14 or
Article 15 of the Retirement and Social Security Law who contract any
form of disease or disability related to exposure to any elements in
connection with the World Trade Center rescue, recovery or cleanup oper-
ations. The annual accidental disability benefit would be 75% of a
member's final average salary less workers compensation, regardless of a
member's plan coverage. Currently, eligible members receive the acci-
dental disability benefit specified in the plan under which they are
covered, which for most Article 14 and 15 members is 1/3 of final aver-
age salary. This improved benefit would be payable only to current
members or their beneficiaries. Current retirees and their beneficiaries
would not be affected by this bill.
If this bill is enacted, the cost of the revised benefit will depend
upon the applicant's age, service, salary, plan, and benefit type other-
wise payable, but is expected to cost up to 4 times final average salary
per individual.
Insofar as this bill would affect the New York State and Local Employ-
ees' Retirement System, there are currently 610 active members, with a
combined salary of $6.4 million, who have filed an Application for World
Trade Notice who could potentially receive benefits under this bill.
A precise cost for future years cannot be determined at this time. Any
increased cost would be shared by the State of New York and participat-
ing employers of the New York State and Local Employees' Retirement
System.
Summary of relevant resources:
The membership data used in measuring the impact of the proposed
change was the same as that used in the March 31, 2018 actuarial valu-
ation. Distributions and other statistics can be found in the 2018
Report of the Actuary and the 2018 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015,
2016, 2017 and 2018 Annual Report to the Comptroller on Actuarial
A. 8278--C 3
Assumptions, and the Codes, Rules and Regulations of the State of New
York: Audit and Control.
The Market Assets and GASB Disclosures are found in the March 31, 2018
New York State and Local Retirement System Financial Statements and
Supplementary Information.
I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
This fiscal note does not constitute a legal opinion on the viability
of the proposed change nor is it intended to serve as a substitute for
the professional judgment of an attorney.
This estimate, dated June 13, 2019, and intended for use only during
the 2019 Legislative Session, is Fiscal Note No. 2019-144, prepared by
the Actuary for the New York State and Local Retirement System.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend Sections 507 and 605 of the Retirement and
Social Security Law to allow any member of the New York State Teachers'
Retirement System who had an active membership when such member partic-
ipated in the World Trade Center rescue, recovery, or cleanup operations
and who incurred a qualifying World Trade Center condition determined to
have been incurred in the performance and discharge of duty to receive a
performance of duty disability retirement benefit equal to 75% of final
average salary. Currently an active member would receive an accidental
disability retirement benefit which is generally one-third of final
average salary. Members who become disabled or die as a result of a
qualifying World Trade Center condition are assumed to have become disa-
bled or died as a result of an accidental or on-the-job disability or
death. This bill would take effect immediately and apply to all active
members who are determined to have incurred a qualifying World Trade
Center condition in the performance and discharge of duty prior to the
effective date of this act.
The cost, or additional present value of benefits, is estimated to be,
on average, $320,000 for each member who receives this performance of
duty disability retirement benefit. Although the potential increase in
an affected member's benefit is estimated to be large, the additional
annual cost to the employers of members of the New York State Teachers'
Retirement System is estimated to be negligible if this bill is enacted
because it is anticipated there would be few applications received for
this performance of duty disability retirement benefit from our member-
ship.
Member data is from the System's most recent actuarial valuation
files, consisting of data provided by the employers to the Retirement
System. Data distributions and statistics can be found in the System's
Comprehensive Annual Financial Report (CAFR). System assets are as
reported in the System's financial statements and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
The source of this estimate is Fiscal Note 2019-31 dated June 17, 2019
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2019 Legislative Session.
I, Richard A. Young, am the Actuary for the New York State Teachers'
Retirement System. I am a member of the American Academy of Actuaries
and I meet the Qualification Standards of the American Academy of Actu-
aries to render the actuarial opinion contained herein.
