S T A T E O F N E W Y O R K
________________________________________________________________________
7162--A
2015-2016 Regular Sessions
I N A S S E M B L Y
April 27, 2015
___________
Introduced by M. of A. ABBATE -- Multi-Sponsored by -- M. of A. GOLDFED-
ER -- read once and referred to the Committee on Governmental Employ-
ees -- 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 commit-
tee
AN ACT to amend the retirement and social security law, in relation to
disability retirement benefits for the presumption of post-traumatic
stress disorder for certain titles
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The retirement and social security law is amended by adding
a new section 605-f to read as follows:
S 605-F. DISABILITY RETIREMENT FOR NEW YORK CITY FIRE ALARM DISPATCH-
ERS AND SUPERVISING FIRE ALARM DISPATCHER LEVELS ONE AND TWO. 1. A
MEMBER EMPLOYED AS A NEW YORK CITY FIRE ALARM DISPATCHER, A NEW YORK
CITY SUPERVISING FIRE ALARM DISPATCHER LEVEL ONE OR A NEW YORK CITY
SUPERVISING FIRE ALARM DISPATCHER LEVEL TWO SHALL BE ENTITLED TO DISA-
BILITY RETIREMENT ALLOWANCE, IF, AT THE TIME APPLICATION THEREFOR IS
FILED, SUCH MEMBER IS PHYSICALLY OR MENTALLY INCAPACITATED FOR PERFORM-
ANCE OF DUTY AS A RESULT OF CONTRACTING POST-TRAUMATIC STRESS DISORDER
WHILE SO EMPLOYED AND AS A RESULT OF HIS OR HER EMPLOYMENT.
2. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER OR OF ANY GENERAL,
SPECIAL OR LOCAL LAW TO THE CONTRARY, ANY MEMBER WHO IS A NEW YORK CITY
FIRE ALARM DISPATCHER, A NEW YORK CITY SUPERVISING FIRE ALARM DISPATCHER
LEVEL ONE OR A NEW YORK CITY SUPERVISING FIRE ALARM DISPATCHER LEVEL TWO
WHO IS DIAGNOSED AS SUFFERING FROM POST-TRAUMATIC STRESS DISORDER
RESULTING IN DISABILITY TO SUCH FIRE ALARM DISPATCHER, PRESENTLY
EMPLOYED, AND WHO SHALL HAVE SUSTAINED SUCH DISABILITY WHILE SO
EMPLOYED, SHALL HAVE SUCH DIAGNOSIS BE PRESUMPTIVE EVIDENCE THAT SUCH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08021-03-6
A. 7162--A 2
DISABILITY WAS INCURRED IN THE PERFORMANCE AND DISCHARGE OF DUTY, UNLESS
THE CONTRARY BE PROVEN BY COMPETENT EVIDENCE.
3. THE ANNUAL RETIREMENT ALLOWANCE PAYABLE SHALL BE EQUAL TO THE
THREE-QUARTERS OF HIS OR HER FINAL AVERAGE SALARY, SUBJECT TO SECTION
13-176 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK.
S 2. This act shall take effect immediately.
FISCAL NOTE.-- Pursuant to Legislative Law, section 50:
PROVISIONS OF PROPOSED LEGISLATION: The proposed legislation would
amend the Retirement and Social Security Law (RSSL) to add a new Section
605-f that would provide a disability retirement allowance to members of
the New York City Employees' Retirement System (NYCERS) who are Fire
Alarm Dispatchers and Supervising Fire Alarm Dispatchers, if such member
is physically or mentally incapacitated for performance of duty as a
result of contracting post-traumatic stress disorder (PTSD) while so
employed and as a result of his or her employment.
In determining whether the PTSD occurred while employed and as a
result of his or her employment, the diagnosis of PTSD will be presump-
tive evidence that such disability was incurred in the performance and
discharge of duty, unless the contrary can be proven by competent
evidence.
The amount of the annual retirement allowance payable will be equal to
75% of the member's final average salary.
FINANCIAL IMPACT - OVERVIEW: There is no data available to estimate
the number of members who might be diagnosed with PTSD and potentially
benefit from this proposed legislation. Therefore, the estimated finan-
cial impact has been calculated on a "per event" basis equal to the
increase in the Actuarial Present Value (APV) of Benefits (APVB) for an
average member who is diagnosed with PTSD as the result of the enactment
of the proposed legislation. In determining the increase in the APVB, it
has been assumed that 50% of the members who would retire with PTSD were
those who would have retired under an Ordinary Disability Retirement
benefit and that the remaining 50% of members who would retire with PTSD
were those who would have continued working if the proposed legislation
were not passed.
With respect to an individual member, the additional cost of this
proposed legislation could vary greatly depending on the member's length
of service, age and salary history.
FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: Based on the census data
and assumptions herein, the enactment of this proposed legislation would
increase the APVB by approximately $360,000 for each occurrence of PTSD
as of June 30, 2016.
FINANCIAL IMPACT - ADDITIONAL EMPLOYER CONTRIBUTIONS: Enactment of
this proposed legislation would increase employer contributions, where
such amount would depend on the number of members affected as well as
other characteristics including the age, years of service, and salary
history of the member.
Based on the Actuary's actuarial assumptions and methods in effect as
of June 30, 2015, the enactment of this proposed legislation is esti-
mated to increase annual employer contributions by approximately $43,000
for each Accidental Disability Retirement due to PTSD. With respect to
the timing, increases in employer contributions would depend upon when
members would retire due to PTSD.
CENSUS DATA: As of June 30, 2015, the total number of Fire Alarm
Dispatchers and Supervising Fire Alarm Dispatchers who could potentially
benefit from this proposed legislation is 181. The census data used for
estimates of APVB and employer contributions herein is a subgroup
A. 7162--A 3
consisting of 120 NYCERS Tier 4 active members who currently participate
in the Dispatchers 25-Year plan and were included in the June 30, 2015
(Lag) actuarial valuations of NYCERS to determine the Preliminary Fiscal
Year 2017 employer contributions. These 120 members had an average age
of approximately 40, average service of approximately 12.5 years, and
average salary of approximately $70,000 as of June 30, 2015.
ACTUARIAL ASSUMPTIONS AND METHODS: The additional APV of benefits and
employer contributions presented herein have been estimated as of June
30, 2015 using the actuarial assumptions and methods used to determine
the Preliminary Fiscal Year 2017 employer contributions of NYCERS.
As there is no data currently available to estimate the number of
members who might be diagnosed with PTSD, the financial impact would be
recognized at the time of the event. Consequently, changes in employer
contributions have been estimated assuming that the increase in the APV
of Future Employer Contributions will be financed over a time period
comparable to that used for actuarial losses under the Entry Age Actuar-
ial Cost Method. Using this approach, the Additional APV of Future
Employer Contributions would be amortized over a closed 15-year period
(14 payments under the One-Year Lag Methodology) using level dollar
payments.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for the New York City Retirement Systems. I am an Associate of the
Society of Actuaries, a Fellow of the Conference of Consulting Actuaries
and a Member of the American Academy of Actuaries. I meet the Qualifica-
tion Standards of the American Academy of Actuaries to render the actu-
arial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2016-20, dated April 18,
2016, was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for use only during the
2016 Legislative Session.