S T A T E O F N E W Y O R K
________________________________________________________________________
7734
2023-2024 Regular Sessions
I N A S S E M B L Y
June 6, 2023
___________
Introduced by M. of A. REILLY -- read once and referred to the Committee
on Governmental Employees
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 and retroactive to August 12, 2009.
FINANCIAL IMPACT - PRESENT VALUES: Based on the actuarial assumptions
and methods described herein, the enactment of this proposed legislation
would increase the Present Value of Future Benefits (PVFB) and the
Unfunded Accrued Liability (UAL) by approximately $1.2 million as of
June 30, 2023.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08767-02-3
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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, 2023 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.
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.
FINANCIAL IMPACT - ANNUAL EMPLOYER CONTRIBUTIONS: The enactment of
this proposed legislation would result in an increase in Fiscal Year
2025 employer contributions of approximately $1.3 million.
New UAL attributable to benefit changes generally amortized over the
remaining working lifetime of those impacted by the benefit changes.
Since Mr. Smith is retired and collecting a pension, and therefore has
no remaining working lifetime, the entire increase in UAL would be
recognized immediately.
CENSUS DATA: The estimates presented herein are based on the census
data used in the June 30, 2022 actuarial valuation of POLICE to deter-
mine the Preliminary Fiscal Year 2024 employer contributions.
As of June 30, 2023, Mr. Smith will be approximately age 53, and will
receive a pension of $65,846 per year under the maximum payment option.
ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
been calculated based on the actuarial assumptions and methods used for
the Preliminary Fiscal Year 2024 employer contributions of POLICE.
For the purposes of this Fiscal Note, it is assumed that the changes
would be reflected for the first time in the June 30, 2023 actuarial
valuation of POLICE used to determine employer contributions for Fiscal
Year 2025.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the realization of the actuarial assumptions used, demograph-
ics of the impacted population, and other factors such as investment,
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.
Not measured in this Fiscal Note are the following:
* The initial additional administrative costs to implement the
proposed legislation.
* The impact of this proposed legislation on Other Postemployment
Benefit costs.
STATEMENT OF ACTUARIAL OPINION: I, Marek Tyszkiewicz, am the Chief
Actuary for, and independent of, the New York City Retirement Systems
and Pension Funds. I am an Associate of the Society of Actuaries and a
Member of the American Academy of Actuaries. I am a member of NYCERS but
A. 7734 3
do not believe it impairs my objectivity and 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 2023-52 dated May 19,
2023 was prepared by the Chief Actuary for the New York City Police
Pension Fund. This estimate is intended for use only during the 2023
Legislative Session.