NY State Senate Bill 2021-S7181A

Senate Bill S7181A

2021-2022 Legislative Session

Authorizes Frank R. Smith to receive accidental performance of duty disability retirement benefits

download bill text pdf

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 29, 2022	print number 7181a
Apr 29, 2022	amend and recommit to civil service and pensions
Jan 05, 2022	referred to civil service and pensions
Jun 04, 2021	referred to rules

Bill Amendments

Original

A (Active)

2021-S7181 - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement
Versions Introduced in 2023-2024 Legislative Session:: S7407

2021-S7181 - Summary

Authorizes Frank Smith, a New York city police detective, to receive accidental performance of duty disability retirement benefits for illness suffered as a result of exposure to disease during undercover assignments as a member of the police department of the city of New York.

2021-S7181 - Sponsor Memo

                                
 
BILL NUMBER: S7181

SPONSOR: LANZA
 
TITLE OF BILL:

An act to authorize Frank R. Smith to receive performance of duty disa-
bility retirement benefits

 
PURPOSE:

To authorize Frank R. Smith to receive accidental performance of duty
disability retirement benefits.

 
SUMMARY PROVISIONS:

Section one allows Frank Smith to retroactively receive an accidental
performance of duty disability retirement benefit for undercover duties
performed as a result of exposure to diseases during the course of his
undercover police duties.

Section two sets forth the disbursements of benefits and awards by all

retirement systems Mr. Smith was a member of.

Section three is the effective date.

Section four is the fiscal note from the Actuary of the City of New
York.

 
JUSTIFICATION:

As a retired member of the New York City Police Department, Mr. Smith
did not show symptoms of the illnesses caused from diseases acquired
during his numerous undercover assignments until after he was receiving
his police retirement. Although retired, he requested an accidental
"Performance of Duty" disability retirement benefit but was eventually
denied. Mr. Smith utilized the court process and although they sympath-
ized with him, The New York State Court of Appeals ruled that the prece-
dent of a legislative solution would be the only remedy for him to
receive an accidental "Performance of Duty" disability retirement bene-
fit. This bill would allow Mr. Smith to apply for such benefits that
have been documented by medical records and medical professionals stat-
ing that his illnesses were caused during the course of his employment
as a member of the New York City Police Department.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

See fiscal note in section four of the bill.

 
EFFECTIVE DATE:
Immediately.

2021-S7181 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7181
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               June 4, 2021
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to authorize Frank R. Smith to receive performance of duty  disa-
   bility retirement benefits
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Notwithstanding any other provision of law, Frank R. Smith,
 a retired member of the New York city police department, who joined  the
 New  York  city  employees  retirement  system  on June 30, 1992 and who
 applied for accidental performance of duty disability  retirement  bene-
 fits  based  upon illnesses suffered as a result of exposure to diseases
 during the course of undercover duties  performed  beginning  in  August
 2002,  and  who  has  had those benefits denied, shall be hereby awarded
 such benefits retroactively from his August 12, 2009 service retirement.
   § 2. The benefits and awards provided for under this act shall be paid
 for, and shared equally by, all  public  retirement  systems,  of  which
 Frank R. Smith was a member.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL: Police officer Frank R. Smith retired with an Ordi-
 nary Disability Retirement (ODR) from the New York City  Police  Pension
 Fund  (POLICE)  on  August  12,  2009.  This  proposed legislation would
 reclassify Mr. Smith's benefit  as  an  Accident  Disability  Retirement
 (ADR).  The ADR benefit would be payable prospectively and retroactively
 to Mr. Smith's August 12, 2009 date of retirement.
   Effective Date: Upon enactment.
   For the purposes of calculating the  fiscal  impact  of  the  proposed
 legislation,  Mr.  Smith's  actual June 30, 1992 date of membership with
 POLICE and the change from his actual ODR benefit to  the  proposed  ADR
 benefit  were used. All costs associated with the implementation of this
 proposed legislation would be borne by POLICE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD09884-02-1

 S. 7181                             2
 
   FINANCIAL IMPACT - PRESENT VALUES: The estimated financial  impact  of
 this  proposed  legislation  has been calculated based on the difference
 between the present value of  (1)  the  ADR  benefits  Mr.  Smith  would
 receive  if  this  proposed legislation were enacted (retroactive to his
 August 12, 2009 retirement date) and (2) the ODR benefits that have been
 and  are  expected  to be paid to Mr. Smith if this proposed legislation
 were not enacted.
   Mr. Smith has been receiving a pension of  $65,846  per  year  payable
 under  the maximum form of payment (i.e. payable to him as long as he is
 alive) since his retirement date of August 12, 2009. If this legislation
 is enacted, he would receive an ADR pension of $111,093 per  year  under
 the maximum form of payment, retroactive to his retirement date.
   Based  on  the actuarial assumptions and methods described herein, the
 enactment of this proposed legislation would increase the Present  Value
 of Future Benefits (PVFB) by approximately $1.1 million.
   FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
 Section 13-638.2(k-2) of the Administrative Code of the City of New York
 (ACCNY), new Unfunded Accrued Liability (UAL)  attributable  to  benefit
 changes are to be amortized as determined by the Actuary, but are gener-
 ally  amortized over the remaining working lifetime of those impacted by
 the benefit changes.
   For purposes of this Fiscal Note,  since  Mr.  Smith  is  retired  and
 collecting  a  pension, and therefore has no remaining working lifetime,
 the entire increase in UAL (or PVFB) would be recognized immediately.
   CONTRIBUTION TIMING: For the purposes  of  this  Fiscal  Note,  it  is
 assumed  that  the  changes  in  PVFB and UAL would be reflected for the
 first time in the June  30,  2021  actuarial  valuation  of  POLICE.  In
 accordance  with  the  One-Year Lag Methodology (OYLM) used to determine
 employer contributions, the increase  in  employer  contributions  would
 first be reflected in Fiscal Year 2023.
   CENSUS  DATA:  The  estimates presented herein are based on the census
 data used in the June 30, 2020 (Lag) actuarial valuation  of  POLICE  to
 determine the Preliminary Fiscal Year 2022 employer contributions.
   As  of June 30, 2021, Mr. Smith will be approximately age 51, and will
 receive a pension of $65,846 per year under the maximum payment option.
   ACTUARIAL ASSUMPTIONS AND METHODS: The change in PVFB presented herein
 have been calculated based on the actuarial assumptions and  methods  in
 effect  for  the June 30, 2019 (Lag) actuarial valuations used to deter-
 mine the Preliminary Fiscal Year 2021 employer contributions of POLICE.
   The Actuary is proposing a set of changes for use beginning  with  the
 June  30,  2019  (Lag)  actuarial  valuations of POLICE to determine the
 Final Fiscal Year 2021 Employer Contributions (2021 A&M).  If  the  2021
 A&M  is  enacted it is estimated that it would produce PVFB results that
 are 1% larger than the result shown above.
   RISK AND UNCERTAINTY: The costs presented in this Fiscal  Note  depend
 highly  on the realization of the actuarial assumptions used, as well as
 certain  demographic  characteristics  of  POLICE  and  other  exogenous
 factors  such  as  investment,  contribution, and other risks. If actual
 experience deviates from actuarial 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.
   Not measured in this Fiscal Note are the following:
     * The initial, additional administrative costs of POLICE  and  other
 New York City agencies to implement the proposed legislation.

 S. 7181                             3
 
     *  The  impact  of this proposed legislation on Other Postemployment
 Benefit (OPEB) costs.
   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  2021-35  dated  May  27,
 2021  was  prepared  by  the  Chief Actuary for the New York City Police
 Pension Fund. This estimate is intended for use  only  during  the  2021
 Legislative Session.

2021-S7181A (ACTIVE) - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement
Versions Introduced in 2023-2024 Legislative Session:: S7407

2021-S7181A (ACTIVE) - Summary

2021-S7181A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7181A

SPONSOR: LANZA
 
TITLE OF BILL:

An act to authorize Frank R. Smith to receive performance of duty disa-
bility retirement benefits

 
PURPOSE:

To authorize Frank R. Smith to receive accidental performance of duty
disability retirement benefits.

 
SUMMARY PROVISIONS:

Section one allows Frank Smith to retroactively receive an accidental
performance of duty disability retirement benefit for undercover duties
performed as a result of exposure to diseases during the course of his
undercover police duties.

Section two sets forth the disbursements of benefits and awards by all
retirement systems Mr. Smith was a member of.

Section three is the effective date.

Section four is the fiscal note from the Actuary of the City of New
York.

 
JUSTIFICATION:

As a retired member of the New York City Police Department, Mr. Smith
did not show symptoms of the illnesses caused from diseases acquired
during his numerous undercover assignments until after he was receiving
his police retirement. Although retired, he requested an accidental
"Performance of duty" disability retirement benefit but was eventually
denied. Mr. Smith utilized the court process and although they sympathy-
ized with him, The New York State Court of Appeals ruled that the prece-
dent of a legislative solution would be the only remedy for him to
receive an accidental Performance of Duty" disability retirement bene-
fit. This bill would allow Mr. Smith to apply for such benefits that
have been documented by medical records and medical professionals stat-
ing that his illnesses were caused during the course of his employment
as a member of the New York City Police Department.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

See fiscal note after section three of the bill.

 
EFFECTIVE DATE:
Immediately.

2021-S7181A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7181--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               June 4, 2021
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules  --  recommitted  to
   the  Committee on Civil Service and Pensions in accordance with Senate
   Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee

 AN  ACT to authorize Frank R. Smith to receive performance of duty disa-
   bility retirement benefits
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Notwithstanding any other provision of law, Frank R. Smith,
 a  retired member of the New York city police department, who joined the
 New York city employees retirement system  on  June  30,  1992  and  who
 applied  for  accidental performance of duty disability retirement bene-
 fits based upon illnesses suffered as a result of exposure  to  diseases
 during  the  course  of  undercover duties performed beginning in August
 2002, and who has had those benefits denied,  shall  be  hereby  awarded
 such benefits retroactively from his August 12, 2009 service retirement.
   § 2. The benefits and awards provided for under this act shall be paid
 for,  and  shared  equally  by,  all public retirement systems, of which
 Frank R. Smith was a member.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: Police officer Frank R. Smith retired with  an  Ordi-
 nary  Disability  Retirement (ODR) from the New York City Police Pension
 Fund (POLICE) on  August  12,  2009.  This  proposed  legislation  would
 reclassify  Mr.  Smith's  benefit  as  an Accident Disability Retirement
 (ADR). The ADR benefit would be payable prospectively and  retroactively
 to Mr. Smith's August 12, 2009 date of retirement.
   Effective Date: Upon enactment.
   For  the  purposes  of  calculating  the fiscal impact of the proposed
 legislation, Mr. Smith's actual June 30, 1992 date  of  membership  with

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09884-04-2

 S. 7181--A                          2
 
 POLICE  and  the  change from his actual ODR benefit to the proposed ADR
 benefit were used. All costs associated with the implementation of  this
 proposed legislation would be borne by POLICE.
   FINANCIAL  IMPACT  - PRESENT VALUES: The estimated financial impact of
 this proposed legislation has been calculated based  on  the  difference
 between  the  present  value  of  (1)  the  ADR benefits Mr. Smith would
 receive if this proposed legislation were enacted  (retroactive  to  his
 August 12, 2009 retirement date) and (2) the ODR benefits that have been
 and  are  expected  to be paid to Mr. Smith if this proposed legislation
 were not enacted.  For purposes of this Fiscal Note, it has been assumed
 that the increase in benefits for periods prior to June 30,  2022  would
 not be credited with interest.
   Mr.  Smith  has  been  receiving a pension of $65,846 per year payable
 under the maximum form of payment (i.e., payable to him as long as he is
 alive) since his retirement date of August 12, 2009. If this legislation
 is enacted, he would receive an ADR pension of $111,093 per  year  under
 the maximum form of payment, retroactive to his retirement date.
   Based  on  the actuarial assumptions and methods described herein, the
 enactment of this proposed legislation would increase the Present  Value
 of  Future  Benefits  (PVFB)  as  of June 30, 2022 by approximately $1.1
 million.
   FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: In  accordance  with
 Section 13-638.2(k-2) of the Administrative Code of the City of New York
 (ACCNY),  new  Unfunded  Accrued Liability (UAL) attributable to benefit
 changes are to be amortized as determined by the Actuary, but are gener-
 ally amortized over the remaining working lifetime of those impacted  by
 the benefit changes.
   For  purposes  of  this  Fiscal  Note,  since Mr. Smith is retired and
 collecting a pension, and therefore has no remaining  working  lifetime,
 the entire increase in UAL (or PVFB) would be recognized immediately.
   CONTRIBUTION  TIMING:  For  the  purposes  of  this Fiscal Note, it is
 assumed that the changes in PVFB and UAL  would  be  reflected  for  the
 first  time  in  the  June  30,  2022  actuarial valuation of POLICE. In
 accordance with the One-Year Lag Methodology (OYLM)  used  to  determine
 employer  contributions,  the  increase  in employer contributions would
 first be reflected in Fiscal Year 2024.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data  used  in  the June 30, 2021 (Lag) actuarial valuation of POLICE to
 determine the Preliminary Fiscal Year 2023 employer contributions.
   As of June 30, 2022, Mr. Smith will be approximately age 52, and  will
 receive a pension of $65,846 per year under the maximum payment option.
   ACTUARIAL ASSUMPTIONS AND METHODS: The change in PVFB presented herein
 have  been  calculated based on the actuarial assumptions and methods in
 effect for the June 30, 2021 (Lag) actuarial valuations used  to  deter-
 mine the Preliminary Fiscal Year 2023 employer contributions of POLICE.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the realization of the actuarial assumptions used, as well  as
 certain  demographic  characteristics  of  POLICE  and  other  exogenous
 factors such as investment, contribution, and  other  risks.  If  actual
 experience  deviates  from actuarial 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.
   Not measured in this Fiscal Note are the following:
 S. 7181--A                          3
 
   * The initial, additional administrative costs of POLICE and other New
 York City agencies to implement the proposed legislation.
   *  The  impact  of  this  proposed legislation on Other Postemployment
 Benefit (OPEB) costs.
   STATEMENT OF ACTUARIAL OPINION: I, Michael J. Samet,  am  the  Interim
 Chief  Actuary  for,  and  independent  of, the New York City Retirement
 Systems and Pension Funds. I am a Fellow of the Society of 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. 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 2022-14 dated April 1,
 2022 was prepared by the Interim Chief Actuary for  the  New  York  City
 Police  Pension  Fund. This estimate is intended for use only during the
 2022 Legislative Session.

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