S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7407
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 23, 2023
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 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
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 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.