S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8433
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 16, 2017
                                ___________
 
 Introduced by M. of A. WEPRIN -- read once and referred to the Committee
   on Governmental Employees
 
 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.
   § 2. Section 507 of the retirement and social security law is  amended
 by adding a new subdivision h-1 to read as follows:
   H-1.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRA-
 RY, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

 A                                                          LBD00930-03-7

 A. 8433                             2
 
 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.
   §  3.  Paragraph  (a) of subdivision 36 of section 2 of the retirement
 and social security law, as amended by chapter 326 of the laws of  2016,
 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
 eighteen, 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  eighteen  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 EIGHTEEN FOR SUCH MEMBER, OR ELIGI-
 BLE BENEFICIARY IN THE CASE OF THE  MEMBER'S  DEATH,  ELIGIBLE  FOR  THE
 DISABILITY  RETIREMENT  BENEFIT  PROVIDED  BY SUBDIVISION H-1 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

 A. 8433                             3
 
 later  than  September  eleventh, two thousand eighteen, including those
 that are rejected for filing as untimely.
   §  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:
   PROVISIONS  OF PROPOSED LEGISLATION: With respect to the New York City
 Retirement  Systems  (NYCRS),  the  proposed  legislation  would   amend
 provisions  of the Retirement and Social Security Law (RSSL) to grant to
 active Tier 3 or 4 NYCRS members 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).  The
 proposed legislation would also require that applicable members or bene-
 ficiaries  of  the  proposed  benefit file a WTC Notice of Participation
 with the applicable NYCRS by September 11, 2018 in order to be  eligible
 to receive the proposed benefit.
   The  Effective  Date  of the proposed legislation would be the date of
 enactment, provided that it shall apply to all eligible members prior to
 the Effective Date.
   IMPACT ON BENEFITS PAYABLE: Under the proposed legislation, the  bene-
 fits  for  WTC retirees would be revised to equal a retirement allowance
 of:
   * 75% multiplied by Final Average Salary (FAS),
   Reduced by:
   * 100% of Workers' Compensation benefits (if any).
   Please note that generally, unformed WTC retirees are currently  enti-
 tled  to a 75% of FAS benefit (i.e., members of the New York City Police
 Pension Fund (POLICE), the New York Fire Department Pension Fund (FIRE),
 and Sanitation and Correction members of the New  York  City  Employees'
 Retirement  System (NYCERS)). Therefore, the application of the proposed
 legislation would be likely limited to civilian members of  NYCERS,  the
 Teachers' Retirement System of the City of New York (TRS), and the Board
 of Education Retirement System of the City of New York (BERS).
   Although  only  certain  NYCERS  members  are  ineligible for Workers'
 Compensation benefits and therefore would not have their benefit subject
 to an offset, for purposes of this Fiscal Note, it is assumed  that  the
 Workers' Compensation offset provisions cited in sections 1 and 2 of the
 proposed legislation and contained in RSSL section 64 would not apply to
 NYCRS  members  because  such  members  are not paid benefits under RSSL
 Article 2.
   FINANCIAL  IMPACT  -  ACTUARIAL  PRESENT  VALUE  OF  BENEFITS  (APVB):
 Although there are currently approximately 3,900 active members who have
 submitted  a WTC Notice of Participation Form for NYCERS, TRS, and BERS,
 the number of members from this group who could potentially benefit from
 this proposed legislation in the future cannot  be  readily  determined.
 Therefore  the ultimate impact of this proposed legislation would depend
 on the number of members affected in the future as well as other charac-
 teristics including the age, years of service, and salary history of the
 member.
   For purposes of this fiscal note, the Actuary  considered  only  those
 members  who  have currently retired from active membership with WTC-re-
 lated disability benefits. Those members who have been  reclassified  as
 having  a  WTC-related  disability  after  retirement  from service were
 excluded.

 A. 8433                             4
 
   With respect to members currently in receipt of  WTC  benefits,  under
 the  actuarial  assumptions  used in the Preliminary June 30, 2016 (Lag)
 actuarial valuations of NYCRS, the enactment  of  this  proposed  legis-
 lation  would  increase the APVB by approximately $20,768,000 as of June
 30,  2016.  This  amount  is  the  sum of the amounts shown in the table
 below.
 
                                   Table
 
            Estimated Financial Impact on NYCERS, TRS, and BERS
                  If Certain Civillian NYCRS WTC Members
           Receive a 75% Performance of Duty Disability Benefit
 
                                 ($ 000s)
 
          Payments       NYCERS      TRS        BERS        Total
         Retroactive*    $7,470      $14         $0        $7,484
         Prospective     13,239       45          0        13,284
         Total           $20,709     $59         $0        $20,768
 
 * It has been assumed that no interest will be credited on these  retro-
 active payments.
   FINANCIAL IMPACT - EMPLOYER PAYMENTS: In accordance with ACNY Section
   13.638.2(k-2), new Unfunded Actuarial Accrued Liability (UAAL) attrib-
 utable to benefit changes are to be amortized as determined by the Actu-
 ary  but generally over the remaining working lifetime of those impacted
 by the benefit changes.
   Since these members are collecting a pension  and  therefore  have  no
 remaining  working  lifetime, the entire increase in UAAL of $20,768,000
 would be recognized in one year. Assuming this legislation passes in the
 2017 Legislative Session, the increased employer contribution  would  be
 recognized in Fiscal Year 2019 under the One Year Lag Methodology.
   OTHER COSTS: Not measured in this Fiscal Note are the following:
   *  Any  additional  costs related to future civilian NYCRS members who
 retire due to a WTC qualifying condition and who would benefit from this
 proposed legislation, if enacted.
   * The initial, additional administrative costs of the NYCRS to  imple-
 ment the proposed legislation.
   *  The  impact  of  this  proposed legislation on Other Postemployment
 Benefit (OPEB) costs.
   CENSUS DATA: The  starting  census  data  used  for  the  calculations
 presented  herein  is  the  census data used in the Preliminary June 30,
 2016 (Lag) actuarial valuation of the NYCRS to determine the Preliminary
 Fiscal Year 2018 employer contributions.
   This data was supplemented by data provided by NYCERS,  TRS  and  BERS
 that  identified  members  currently  in receipt of WTC benefits. NYCERS
 identified 45 members with an average benefit of $28,423, TRS identified
 1 member with a benefit of $36,537 and BERS did not identify any members
 currently receiving WTC benefits.
   ACTUARIAL ASSUMPTIONS AND METHODS: The  additional  employer  contrib-
 utions  presented  herein  have  been  calculated based on the actuarial
 assumptions and methods in effect for  the  Preliminary  June  30,  2016
 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year
 2018 employer contributions of NYCRS.
   STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
 ary for, and independent of, the New York City Pension Funds and Retire-

 A. 8433                             5
 
 ment Systems. I am a Fellow 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 Qualification Standards of the American Academy
 of Actuaries to render the actuarial opinion contained herein.
   FISCAL  NOTE  IDENTIFICATION:  This Fiscal Note 2017-30 dated June 14,
 2017 was prepared by the Chief Actuary for the New York City  Employees'
 Retirement  System,  the  Teachers' Retirement System of the City of New
 York, and the Board of Education Retirement System of the  City  of  New
 York. This estimate is intended for use only during the 2017 Legislative
 Session.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  amend Sections 2, 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.  The  deadline  to  apply for this performance of duty disability
 retirement benefit for a member or an eligible beneficiary in  the  case
 of  a  member's  death would be September 11, 2018. This bill would 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 prior to the effective date of this act.
   The cost, or additional present value of benefits, is estimated to be,
 on average, $280,000 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.
   Employee  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 2017-27 dated May 19,  2017
 prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
 System and is intended for use only during the 2017 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.
   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

 A. 8433                             6
 
 rescue, recovery or cleanup operations. 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, eligi-
 ble  members  receive the accidental disability benefit specified in the
 plan under which they are covered. This improved benefit would be  paya-
 ble  to  current members who may file for this benefit in the future, or
 current retirees (or their beneficiaries) who are  eligible  to  receive
 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  5 times salary. For those who contract such disease subse-
 quent to a service retirement, it is estimated that there  would  be  an
 average  per  person cost of approximately 2 times final average salary.
 For those who contract such disease subsequent to an ordinary disability
 retirement, it is estimated that there would be an  average  per  person
 cost of approximately 5 times final average salary.
   For  the  40 retirees and 3 beneficiaries known to be affected at this
 time, there would be a  one-time  cost  of  $8.65  million,  assuming  a
 payment date of March 1, 2018.
   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, 2016 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2016
 Report  of  the  Actuary  and  the  2016  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2015
 and  2016 Annual Report to the Comptroller on Actuarial 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, 2016
 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 25, 2017, and intended for  use  only  during
 the  2017  Legislative Session, is Fiscal Note No. 2017-108, prepared by
 the Actuary for the New York State and Local Retirement System.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8433--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 16, 2017
                                ___________
 
 Introduced  by  M. of A. WEPRIN, COLTON -- read once and referred to the
   Committee on Governmental 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
   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.
   §  2. Section 507 of the retirement and social security law is amended
 by adding a new subdivision h-1 to read as follows:
   H-1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE  CONTRA-
 RY, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00930-10-8

 A. 8433--A                          2
 
 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.
   §  3.  Paragraph  (a) of subdivision 36 of section 2 of the retirement
 and social security law, as amended by chapter 326 of the laws of  2016,
 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
 eighteen, 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  eighteen  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] A 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  NINETEEN FOR ACTIVE MEMBERS, OR
 ELIGIBLE BENEFICIARY IN THE CASE OF THE ACTIVE MEMBER'S DEATH,  ELIGIBLE
 FOR  THE  DISABILITY  RETIREMENT  BENEFIT PROVIDED BY SUBDIVISION H-1 OF
 SECTION FIVE HUNDRED SEVEN OR PARAGRAPH FOUR OF SUBDIVISION D OF SECTION

 A. 8433--A                          3
 
 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 September  eleventh,  two  thousand  eighteen,  including
 those that are rejected for filing as untimely.
   §  4.  This  act shall 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 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  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 member is 1/3  of  a  member's
 final  average  salary.  This  improved benefit would be payable only to
 current members or their beneficiaries, who must file for  this  benefit
 prior  to  September  11, 2019. 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 657 active members, with a
 salary of $6.7 million, who have filed an Application  for  World  Trade
 Center Notice who could potentially receive benefits under this bill.
   A  precise  cost  for  future  years can't be determined at this time.
 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.  Every year a cost will be determined (and billed to the
 state) based on those benefitting 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, 2017 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2017
 Report  of  the  Actuary  and  the  2017  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in the  2015,
 2016,  and  2017  Annual  Report to the Comptroller on Actuarial Assump-
 tions, 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, 2017
 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 June 5, 2018, and intended for  use  only  during
 the  2018  Legislative  Session, is Fiscal Note No. 2018-97, prepared by
 the Actuary for the New York State and Local Retirement System.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8433--B
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 16, 2017
                                ___________
 
 Introduced  by  M. of A. WEPRIN, COLTON -- read once and referred to the
   Committee on Governmental 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 -- again reported  from  said  committee
   with  amendments, ordered reprinted as amended and recommitted 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:
 
   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.
   §  2. Section 507 of the retirement and social security law is amended
 by adding a new subdivision h-1 to read as follows:
   H-1. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE  CONTRA-
 RY, 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.
              

                                                            LBD00930-12-8

 A. 8433--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.
   §  3.  Paragraph  (a) of subdivision 36 of section 2 of the retirement
 and social security law, as amended by chapter 326 of the laws of  2016,
 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
 eighteen, 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  eighteen  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] A 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  NINETEEN FOR ACTIVE MEMBERS, OR
 ELIGIBLE BENEFICIARY IN THE CASE OF THE ACTIVE MEMBER'S DEATH,  ELIGIBLE

 A. 8433--B                          3
 
 FOR  THE  DISABILITY  RETIREMENT  BENEFIT PROVIDED BY SUBDIVISION H-1 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 September  eleventh,  two  thousand  eighteen,  including
 those that are rejected for filing as untimely.
   §  4.  This  act shall 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 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  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 member is 1/3  of  a  member's
 final  average  salary.  This  improved benefit would be payable only to
 current members or their beneficiaries, who must file for  this  benefit
 prior  to  September  11, 2019. 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 657 active members, with a
 salary of $6.7 million, who have filed an Application  for  World  Trade
 Center Notice who could potentially receive benefits under this bill.
   A  precise  cost  for  future  years can't be determined at this time.
 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.  Every year a cost will be determined (and billed to the
 state) based on those benefitting 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, 2017 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2017
 Report  of  the  Actuary  and  the  2017  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in the  2015,
 2016,  and  2017  Annual  Report to the Comptroller on Actuarial Assump-
 tions, 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, 2017
 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.

 A. 8433--B                          4
 
   This estimate, dated June 5, 2018, and intended for  use  only  during
 the  2018  Legislative  Session, is Fiscal Note No. 2018-97, prepared by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL:  With  respect  to  the New York City Pension Funds
 Retirement  Systems  (NYCRS),  the  proposed  legislation  would   amend
 provisions  of the Retirement and Social Security Law (RSSL) to grant to
 active NYCRS members, who are subject to RSSL  Articles  14  or  15  and
 incur  a World Trade Center (WTC) Qualifying Condition, a performance of
 duty disability retirement equivalent to 75% of the member's Final Aver-
 age Salary (FAS). The  proposed  legislation  would  also  require  that
 applicable  members  or beneficiaries of the proposed benefit file a WTC
 Notice of Participation with the applicable NYCRS by September 11,  2018
 to be eligible to receive the proposed benefit.
   Effective Date: Upon enactment, and retroactive for qualifying members
 who retired with a non-75% FAS WTC disability retirement.
   IMPACT  ON BENEFITS PAYABLE: Under the proposed legislation, the bene-
 fits for WTC retirees would be revised to equal a  retirement  allowance
 of:
   * 75% multiplied by FAS,
   Reduced by:
   * 100% of Workers' Compensation benefits (if any) payable (as required
 by RSSL Section 64).
   Please  note  that,  generally,  uniformed  WTC retirees are currently
 entitled to a 75% of FAS benefit (i.e. members  of  the  New  York  City
 Police  Pension  Fund  (POLICE),  the  New  York  City Fire Pension Fund
 (FIRE), and Sanitation, Correction, EMT, and Deputy Sherriff members  of
 the New York City Employees' Retirement System (NYCERS)). Therefore, the
 application  of  the  proposed  legislation  would  likely be limited to
 active Tier 3 and 4 civilian members of NYCERS, the Teachers' Retirement
 System of the City of New York (NYCTRS), and the New York City Board  of
 Education Retirement System (BERS).
   Although  certain  NYCRS  members  are ineligible for Workers' Compen-
 sation benefits and therefore would not have their benefit subject to an
 offset, for purposes of this Fiscal Note, it is assumed that  the  Work-
 ers'  Compensation  offset  provisions  cited in Sections 1 and 2 of the
 proposed legislation would not  apply  to  NYCRS  members  because  such
 members  are not paid retirement benefits under RSSL Article 2, which is
 a requirement for the application of the offset provision  contained  in
 RSSL Section 64.
   FINANCIAL  IMPACT  -  ACTUARIAL  PRESENT  VALUE  OF  BENEFITS  (APVB):
 Although there are currently approximately 4,700 submitted qualified WTC
 Notice of Participation Forms  for  applicable  NYCERS,  TRS,  and  BERS
 members,  the  number  of  members  from  this group, and any additional
 eligible members who timely file such Form by the extended September 11,
 2018 date contained in this proposed legislation, who could  potentially
 benefit  from  this proposed legislation in the future cannot be readily
 determined. Therefore, the ultimate impact of this proposed  legislation
 would  depend on the number of members affected in the future as well as
 other characteristics including the age, years of  service,  and  salary
 history of the member.
   However, for purposes of this fiscal note, only those members who have
 retired  from  active membership with a qualifying WTC-related condition
 and receive a non-75% FAS WTC disability benefit have  been  considered.
 Those  members  who have been reclassified as having a WTC-related disa-
 bility after retirement from  service,  based  on  the  proposed  legis-

 A. 8433--B                          5
 
 lation's  limited  application to active members, and the unknown number
 of active members who may eventually retire in the future with a current
 non-75% FAS WTC disability benefit,  were  not  included  in  the  below
 calculation.
   With  respect  to  applicable  NYCRS  retirees currently in receipt of
 non-75% FAS WTC disability benefits,  under  the  actuarial  assumptions
 used  in  the  Preliminary  June  30, 2017 (Lag) actuarial valuations of
 NYCRS, the enactment of this proposed  legislation  would  increase  the
 APVB  by  approximately  $23,003,000 as of June 30, 2017. This amount is
 the sum of the amounts shown in the table below.

            ESTIMATED FINANCIAL IMPACT ON NYCERS, TRS, AND BERS
                   IF CERTAIN CIVILIAN NYCRS WTC MEMBERS
           RECEIVE A 75% PERFORMANCE OF DUTY DISABILITY BENEFIT
 
                                 ($ 000s)
 
        APVB          NYCERS        TRS          BERS          Total
 
    Retroactive*     $ 8,438        $18           $0          $ 8,456
    Prospective       14,503         44            0           14,547
       Total         $22,941        $62           $0          $23,003
 
 * It has been assumed that no interest will be credited on these  retro-
 active payments.
 
   FINANCIAL IMPACT - EMPLOYER CONTRIBUTIONS: In accordance with Adminis-
 trative  Code of the City of New York (ACCNY) Section 13-638.2(k-2), new
 Unfunded Accrued Liability (UAL) attributable to benefit changes are  to
 be amortized as determined by the Actuary but generally over the remain-
 ing  working lifetime of those impacted by the benefit changes. For this
 proposed legislation, since those that would benefit  are  retired,  the
 entire  increase  in UAL of $23,003,000 would be recognized in the first
 year that the increased pension was paid.
   OTHER COSTS: Not measured in this Fiscal Note are the following:
   * Any additional costs related to future civilian  NYCRS  members  who
 retire due to a WTC qualifying condition and who would benefit from this
 proposed legislation, if enacted.
   *  The initial, additional administrative costs of the NYCRS to imple-
 ment the proposed legislation.
   * The impact of this  proposed  legislation  on  Other  Postemployment
 Benefit (OPEB) costs.
   CONTRIBUTION  TIMING:  For  the  purposes  of  this Fiscal Note, it is
 assumed  that  the  changes  in  the  employer  contributions  would  be
 reflected for the first time in the June 30, 2018 actuarial valuation of
 NYCERS,  TRS,  and BERS. In accordance with the One-Year Lag Methodology
 (OYLM) used to determine employer contributions, the increase in employ-
 er contributions would first be reflected in Fiscal Year 2020.
   CENSUS DATA: The  starting  census  data  used  for  the  calculations
 presented  herein  is  the  census data used in the Preliminary June 30,
 2017 (Lag) actuarial valuation of the NYCRS to determine the Preliminary
 Fiscal Year 2019 employer contributions.
   This data was supplemented by data provided by NYCERS, TRS,  and  BERS
 that  identified  retirees currently in receipt of non-75% FAS WTC disa-
 bility benefits. NYCERS identified 51 members with an average benefit of
 $29,007, TRS identified one member with a benefit of $36,512,  and  BERS

 A. 8433--B                          6
 
 did  not  identify any members currently receiving non-75% FAS WTC disa-
 bility benefits.
   ACTUARIAL  ASSUMPTIONS  AND  METHODS: The additional employer contrib-
 utions presented herein have been  calculated  based  on  the  actuarial
 assumptions  and  methods  in  effect  for the Preliminary June 30, 2017
 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year
 2019 employer contributions of NYCRS. Please note these assumptions  and
 methods  are subject to change as this valuation is not considered final
 until the end of Fiscal Year 2019.
   STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
 ary  for,  and  independent of, the New York City Retirement Systems and
 Pension Funds. I am a Fellow of the Society of  Actuaries,  an  Enrolled
 Actuary  under  the  Employee Retirement Income and Security Act of 1974
 (ERISA), a Member of the American Academy of Actuaries, and a Fellow  of
 the  Conference of Consulting Actuaries. I meet the Qualification Stand-
 ards of the American Academy of Actuaries to render the actuarial  opin-
 ion contained herein. To the best of my knowledge, the results contained
 herein have been prepared in accordance with generally accepted actuari-
 al  principles  and procedures and with the Actuarial Standards of Prac-
 tice issued by the Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: The Fiscal Note  2018-37  dated  June  13,
 2018, was prepared by the Chief Actuary for the New York City Employees'
 Retirement  System,  the  New York City Teachers' Retirement System, and
 the New York City Board of Education Retirement System. This estimate is
 intended for use only during the 2018 Legislative Session.