S T A T E O F N E W Y O R K
________________________________________________________________________
3521--B
2015-2016 Regular Sessions
I N S E N A T E
February 11, 2015
___________
Introduced by Sen. AVELLA -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
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:
Section 1. Paragraph 4 of subdivision d of section 605 of the retire-
ment and social security law is renumbered paragraph 5 and a new para-
graph 4 is added to read as follows:
4. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
ANY MEMBER WITH AN ACTIVE MEMBERSHIP WHO PARTICIPATED IN WORLD TRADE
CENTER RESCUE, RECOVERY, OR CLEANUP OPERATIONS, AS SUCH PARTICIPATION IS
DEFINED IN SECTION TWO OF THIS CHAPTER, WHO INCURRED A QUALIFYING WORLD
TRADE CENTER CONDITION, AS DEFINED IN SECTION TWO OF THIS CHAPTER, THAT
IS DETERMINED TO HAVE BEEN INCURRED IN THE PERFORMANCE AND DISCHARGE OF
DUTY AND IS THE NATURAL AND PROXIMATE RESULT OF AN ACCIDENT NOT CAUSED
BY SUCH MEMBER'S OWN WILLFUL NEGLIGENCE, SHALL BE PAID A PERFORMANCE OF
DUTY DISABILITY RETIREMENT ALLOWANCE EQUAL TO THREE-QUARTERS OF FINAL
AVERAGE SALARY. THE PAYMENT OF SUCH PENSION SHALL BE SUBJECT TO THE
PROVISIONS OF SECTION SIXTY-FOUR OF THIS CHAPTER.
S 2. Subdivisions h and i of section 507 of the retirement and social
security law are relettered subdivisions i and j and a new subdivision h
is added to read as follows:
H. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
ANY MEMBER WITH AN ACTIVE MEMBERSHIP WHO PARTICIPATED IN WORLD TRADE
CENTER RESCUE, RECOVERY, OR CLEANUP OPERATIONS, AS SUCH PARTICIPATION IS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08981-05-5
S. 3521--B 2
DEFINED IN SECTION TWO OF THIS CHAPTER, WHO INCURRED A QUALIFYING WORLD
TRADE CENTER CONDITION, AS DEFINED IN SECTION TWO OF THIS CHAPTER, THAT
IS DETERMINED TO HAVE BEEN INCURRED IN THE PERFORMANCE AND DISCHARGE OF
DUTY AND IS THE NATURAL AND PROXIMATE RESULT OF AN ACCIDENT NOT CAUSED
BY SUCH MEMBER'S OWN WILLFUL NEGLIGENCE, SHALL BE PAID A PERFORMANCE OF
DUTY DISABILITY RETIREMENT ALLOWANCE EQUAL TO THREE-QUARTERS OF FINAL
AVERAGE SALARY. THE PAYMENT OF SUCH PENSION SHALL BE SUBJECT TO THE
PROVISIONS OF SECTION SIXTY-FOUR OF THIS CHAPTER.
S 3. Paragraph (a) of subdivision 36 of section 2 of the retirement
and social security law, as amended by chapter 472 of the laws of 2014,
is amended to read as follows:
(a) "Qualifying World Trade Center condition" shall mean a qualifying
condition or impairment of health resulting in disability to a member
who participated in World Trade Center rescue, recovery or cleanup oper-
ations for a qualifying period, as those terms are defined below,
provided the following conditions have been met: (i) such member, or
eligible beneficiary in the case of the member's death, must have filed
a written and sworn statement with the member's retirement system on a
form provided by such system indicating the underlying dates and
locations of employment not later than September eleventh, two thousand
fifteen, and (ii) such member has either successfully passed a physical
examination for entry into public service, or authorized release of all
relevant medical records, if the member did not undergo a physical exam-
ination for entry into public service; and (iii) there is no evidence of
the qualifying condition or impairment of health that formed the basis
for the disability in such physical examination for entry into public
service or in the relevant medical records, prior to September eleventh,
two thousand one except for such member, or eligible beneficiary in the
case of the member's death, of a local retirement system of a city with
a population of one million or more that is covered by section 13-551 of
the administrative code of the city of New York, or by section twenty-
five hundred seventy-five of the education law and for such member who
separated from service with vested rights, or eligible beneficiary of
such member who separated from service with vested rights in the case of
the member's death, of a local retirement system of a city with a popu-
lation of one million or more who are covered by sections 13-168,
13-252.1 or 13-353.1 of the administrative code of the city of New York
or sections five hundred seven-c, six hundred five-b, six hundred
five-c, or six hundred seven-b of this chapter. The deadline for filing
a written and sworn statement required by subparagraph (i) of this para-
graph shall be September eleventh, two thousand fourteen for such
member, or eligible beneficiary in the case of the member's death, of a
local retirement system of a city with a population of one million or
more that is covered by section 13-551 of the administrative code of the
city of New York, or by section twenty-five hundred seventy-five of the
education law and for such member who separated from service with vested
rights, or eligible beneficiary of such member who separated from
service with vested rights in the case of the member's death, of a local
retirement system of a city with a population of one million or more who
are covered by sections 13-168, 13-252.1 or 13-353.1 of the administra-
tive code of the city of New York and sections five hundred seven-c, six
hundred five-b, six hundred five-c, or six hundred seven-b of this chap-
ter. NOTWITHSTANDING THE DEADLINE FOR FILING A WRITTEN AND SWORN STATE-
MENT REQUIRED BY SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE DEADLINE SHALL
BE SEPTEMBER ELEVENTH, TWO THOUSAND SIXTEEN FOR SUCH MEMBER, OR ELIGIBLE
BENEFICIARY IN THE CASE OF THE MEMBER'S DEATH, ELIGIBLE FOR THE DISABIL-
S. 3521--B 3
ITY RETIREMENT BENEFIT PROVIDED BY SUBDIVISION H OF SECTION FIVE HUNDRED
SEVEN OR PARAGRAPH FOUR OF SUBDIVISION D OF SECTION SIX HUNDRED FIVE OF
THIS CHAPTER. Every retirement system shall keep a copy of every written
and sworn statement that is presented for filing not later than Septem-
ber eleventh, two thousand fifteen, including those that are rejected
for filing as untimely.
S 4. 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
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 members of public retirement
systems who contract any form of disease or disability related to expo-
sure to any elements in connection with the World Trade Center tragedy
of September 11, 2001. 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 accidental disability benefit specified in the plan under
which they are covered. This improved benefit would be payable to
current members who may file for this benefit in the future, or current
retirees (or their beneficiaries) who are already receiving World Trade
Center related retirement benefits.
If this bill is enacted, it would lead to more disabilities being
classified as "in performance of duty" or "accidental". For the disabil-
ities so classified due to this bill, the cost would depend on the age,
service, salary and plan of the affected member or retiree, as well as
whether such person would have otherwise been eligible for, or has been
receiving an ordinary disability, a performance of duty disability or a
service retirement. For those who contract such disease prior to retire-
ment, it is estimated that there could be per person one-time costs of
as much as four (4) times salary. For those who contract such disease
subsequent to a service retirement, it is estimated that there would be
an average per person cost of approximately 150% of final average sala-
ry. For those who contract such disease subsequent to an ordinary disa-
bility retirement, it is estimated that there would be an average per
person cost of approximately four (4) times final average salary.
For the 38 retirees known to be affected at this time, there would be
a one-time cost of $7.96 million, assuming a payment date of March 1,
2016.
Pursuant to Section 25 of the Retirement and Social Security Law, the
increased cost would be borne entirely by the State of New York and
would require an itemized appropriation sufficient to pay the cost of
the provision. A precise cost for future years can't be determined at
this time. Every year a cost will be determined (and billed to the
state) based on those benefiting from this provision.
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, 2014 actuarial valu-
ation. Distributions and other statistics can be found in the 2014
Report of the Actuary and the 2014 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2010,
2011, 2012, 2013 and 2014 Annual Report to the comptroller on Actuarial
Assumptions, and the Codes Rules and Regulations of the State of New
York: Audit and Control.
S. 3521--B 4
The Market Assets and GASB Disclosures are found in the March 31, 2014
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 estimate, dated May 21, 2015, and intended for use only during
the 2015 Legislative Session, is Fiscal Note No. 2015-71, prepared by
the Actuary for the New York State and Local Employees' Retirement
System.