S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6137--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  certain lung disabilities incurred by members of the New
   York city transit authority in certain cases
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The administrative code of the city of New York is amended
 by adding a new section 13-168.1 to read as follows:
   § 13-168.1 TRANSIT AUTHORITY MEMBERS; PRESUMPTION IN CERTAIN DISEASES.
 NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER OR OF ANY GENERAL, SPECIAL
 OR LOCAL LAW TO THE CONTRARY, AND FOR THE PURPOSES OF THIS CHAPTER,  ANY
 CONDITION  OF  IMPAIRMENT  OF  HEALTH  CAUSED  BY  DISEASES OF THE LUNG,
 RESULTING IN TOTAL OR PARTIAL DISABILITY OR DEATH TO A MEMBER OF THE NEW
 YORK CITY TRANSIT AUTHORITY, OR A MEMBER OF ITS SUBSIDIARY  CORPORATION,
 AS  DEFINED  IN SECTION TWELVE HUNDRED THREE-A OF THE PUBLIC AUTHORITIES
 LAW, WHERE SUCH MEMBER SUCCESSFULLY PASSED  A  PHYSICAL  EXAMINATION  ON
 ENTRY  INTO SUCH SERVICE OR SUBSEQUENT THERETO, WHICH EXAMINATION FAILED
 TO REVEAL ANY EVIDENCE OF SUCH CONDITION, SHALL BE PRESUMPTIVE  EVIDENCE
 THAT IT WAS INCURRED IN THE PERFORMANCE AND DISCHARGE OF DUTY.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation would amend the Administra-
 tive  Code of the City of New York (ACCNY) to add a new Section 13-168.1
 to provide a statutory presumption to Tier 1 and Tier 2 members  of  the
 New  York  City  Employees'  Retirement  System (NYCERS) who are Transit
 Authority  employees,  and  who  become  physically  incapacitated   for
 performance of duty due to lung disease.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03331-02-9
              

 S. 6137--A                          2
 
   In determining whether disabling lung disease was caused by employment
 for  the  Transit  Authority,  the  diagnosis  of  lung  disease, absent
 evidence of such condition upon examination at hire, would  be  presump-
 tive  evidence  that such disability was incurred in the performance and
 discharge of duty.
   Effective Date: Upon enactment.
   FINANCIAL  IMPACT  -  OVERVIEW: There is no data available to estimate
 the number of members who might develop  and  become  disabled  by  lung
 disease,  and potentially benefit from this proposed legislation. There-
 fore, the estimated financial impact has been calculated on a per  event
 basis  equal  to  the  increase  in the Present Value of Future Benefits
 (PVFB) for an average affected member who is diagnosed with lung disease
 as the result of the enactment of the proposed legislation and who would
 benefit from the proposed legislation.  In determining the  increase  in
 the  PVFB, it has been assumed that 100% of the members who would retire
 with lung disease would have continued working  and  eventually  retired
 for service if the proposed legislation were not passed.
   With  respect  to  an  individual  member, the additional cost of this
 proposed legislation varies greatly.
   FINANCIAL IMPACT - PRESENT VALUES: Based on the census  data  and  the
 actuarial  assumptions  and  methods  described herein, the enactment of
 this proposed legislation would increase the PVFB by an  amount  ranging
 from  $3,000  to  $190,000 if one of the eight members who could benefit
 from the proposed legislation develops a qualifying  lung  disease.  The
 average  increase  in  PVFB for the eight members who could benefit from
 the proposed legislation is approximately $60,000.
   FINANCIAL IMPACT - ANNUAL 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 each member.
   As there is no data currently available  to  estimate  the  number  of
 members  who  might be diagnosed with disabling lung disease, the finan-
 cial impact would be recognized at  the  time  of  event.  Consequently,
 changes  in employer contributions have been estimated assuming that the
 increase in the PVFB will be financed over a time period  comparable  to
 that  used  for actuarial losses under the Entry Age Normal cost method.
 Using this approach, the additional  PVFB  would  be  amortized  over  a
 closed  15-year  period (14 payments under the One-Year Lag Methodology)
 using level dollar payments.
   Based on the Actuary's actuarial assumptions and methods in effect  as
 of  June  30,  2018, the enactment of this proposed legislation is esti-
 mated to increase annual employer contributions  by  an  amount  ranging
 from  $400 to $22,500 if one of the eight members who could benefit from
 the proposed legislation develops a qualifying lung disease. The average
 increase in annual employer contributions  for  the  eight  members  who
 could  benefit  from  the  proposed legislation is approximately $6,800.
 With respect to the timing, increases in  employer  contributions  would
 depend upon when members would retire due to lung disease but,generally,
 increased employer contributions will first occur the second fiscal year
 following approval of the accident disability retirement.
   OTHERS COSTS: Not measured in this Fiscal Note are the following:
   * The initial, additional administrative costs of NYCERS and other New
 York City agencies to implement the proposed legislation.
   *  The  impact  of  this  proposed legislation on Other Postemployment
 Benefit (OPEB) costs.

 S. 6137--A                          3
 
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data  used in the Preliminary June 30, 2018 (Lag) actuarial valuation of
 NYCERS to determine the Preliminary Fiscal Year 2020  employer  contrib-
 utions.
   There  are  eight active Tier 1 and Tier 2 Transit Authority employees
 who participate in NYCERS as of June  30,  2018  who  could  potentially
 benefit  from  the  proposed  legislation. These eight active Tier 1 and
 Tier 2 Transit Authority members had an  average  age  of  approximately
 73.8  years, average service of approximately 44.3 years, and an average
 salary of approximately $89,100. This group  consisted  of  six  Tier  1
 members, and two Tier 2 members.
   ACTUARIAL  ASSUMPTIONS AND METHODS: The changes in the PVFB and annual
 employer contributions presented herein have been  calculated  based  on
 the  actuarial  assumptions  and methods in effect for the June 30, 2018
 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year
 2020 employer contributions of NYCERS.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on the actuarial assumptions and methods used and are subject to
 change based on the realization of  potential  investment,  demographic,
 contribution,  and other risks. If actual experience deviates from actu-
 arial assumptions, the actual costs could differ  from  those  presented
 herein.  Costs  are  also  dependent  on the actuarial methods used, and
 therefore different actuarial methods could produce  different  results.
 Quantifying these risks is beyond the scope of this Fiscal Note.
   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, a
 Member of the American Academy of Actuaries, and a Fellow of the Confer-
 ence of Consulting Actuaries. I meet the Qualification Standards of  the
 American  Academy of Actuaries to render the actuarial opinion contained
 herein. To the best of my 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  2019-32  dated  June  7,
 2019  was prepared by the Chief Actuary for the New York City Employees'
 Retirement System. This estimate is intended for  use  only  during  the
 2019 Legislative Session.