S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6862
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2023
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the general municipal law, in relation  to  disabilities
   of fire alarm dispatchers in certain cities
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general municipal  law  is  amended  by  adding  a  new
 section 207-r to read as follows:
   §  207-R.  DISABILITIES  OF  FIRE ALARM DISPATCHERS IN CERTAIN CITIES.
 NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL  LAW  OR
 ADMINISTRATIVE  CODE  TO  THE  CONTRARY,  EXCEPT FOR THE PURPOSES OF THE
 WORKERS' COMPENSATION LAW AND THE LABOR LAW, ANY CONDITION OF IMPAIRMENT
 OF HEALTH CAUSED BY DISEASES OF THE HEART, RESULTING IN TOTAL OR PARTIAL
 DISABILITY OR DEATH TO A FIRE ALARM DISPATCHER, A SUPERVISING FIRE ALARM
 DISPATCHER LEVEL ONE OR A SUPERVISING FIRE ALARM DISPATCHER LEVEL TWO OF
 A FIRE DEPARTMENT IN A CITY WITH A POPULATION OF ONE MILLION OR MORE, OR
 ANY RETIRED MEMBER OF SUCH DEPARTMENT WHO HAS BEEN RETIRED FOR  FIVE  OR
 LESS YEARS, WHO SUCCESSFULLY PASSED A PHYSICAL EXAMINATION ON ENTRY INTO
 THE  SERVICE  OF SUCH DEPARTMENT, 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, UNLESS THE CONTRARY
 BE PROVED BY COMPETENT EVIDENCE.
   §  2.  All  past  service  costs  associated  with  implementing   the
 provisions of this act shall be borne by the city of New York.
   §  3. Notwithstanding any other provision of law to the contrary, none
 of the provisions of this act shall  be  subject  to  the  appropriation
 requirement of section 25 of the retirement and social security law.
   § 4.  This act shall take effect immediately.
   FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL: This proposed legislation, as it relates to the New
 York City Retirement Systems and Pension Funds (NYCRS), would add a  new
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10279-02-3
              

 S. 6862                             2
 
 General  Municipal Law (GML) Section 207-r to provide certain Fire Alarm
 Dispatchers of the New York City Employees' Retirement System (NYCERS) a
 rebuttable statutory presumption that  a  qualifying  partial  or  total
 disability  or  death  related  to  a  heart disease was incurred in the
 performance of duty.
   The presumption of causation could be rebutted by  competent  evidence
 to the contrary.
   Effective Date: Upon enactment.
   IMPACT  ON  BENEFITS:  Currently,  an  active  member of NYCERS who is
 employed as a Fire Alarm Dispatcher and becomes disabled  due  to  heart
 disease  would be eligible for an applicable ordinary disability retire-
 ment benefit, after attaining 10 years of credited service. This benefit
 is generally a lifetime payment equal to the greatest of  1/3  of  Final
 Average  Salary  (FAS),  1/60th  of FAS for each year of service, or the
 service retirement benefit, if eligible.
   The ordinary death benefit for Tier 4 and Tier  6  NYCERS  Fire  Alarm
 Dispatchers  is  a  lump  sum  payment equal to three times the member's
 salary multiplied by the member's years of service, up to a  maximum  of
 three years. The performance of duty death benefit is generally equal to
 a  lifetime  benefit  of  50% of a member's wages earned during the last
 year of service, payable to certain beneficiaries.
   Under the proposed legislation, an active  member  of  NYCERS  who  is
 employed  as  a  Fire Alarm Dispatcher and becomes disabled due to heart
 disease would be eligible for a performance of duty  disability  benefit
 if  the  presumption is not rebutted by competent evidence. A member who
 dies due to heart disease would be eligible for a  performance  of  duty
 death benefit if the presumption is not rebutted by competent evidence.
   FINANCIAL  IMPACT  -  OVERVIEW: There is no data available to estimate
 the number of members who might develop and become disabled or  die  due
 to heart disease and potentially benefit from this proposed legislation.
 Therefore,  the  estimated financial impact has been calculated on a per
 event basis equal to the increase in the present value of future employ-
 er contributions for an average member who could  potentially  be  diag-
 nosed  with  disabling  heart  disease  and  who  would benefit from the
 proposed legislation.
   In determining the increase in the present value for members who could
 benefit from the presumption provided by the proposed  legislation  upon
 disability,  it has been assumed that members would terminate employment
 if the proposed legislation were not passed.
   In determining the increase in the present value for beneficiaries who
 could benefit from the presumption provided by the proposed  legislation
 upon  death,  it  has  been  assumed  that 100% of such members would be
 eligible for an Ordinary Death Benefit if the proposed legislation  were
 not passed.
   With  respect  to  an  individual  member, the additional cost of this
 proposed legislation could vary greatly depending on the member's length
 of service, age, and salary history. In particular, the increase due  to
 the  proposed  legislation  would be greater for a member who is not yet
 eligible for an Ordinary Disability benefit  when  the  disabling  heart
 disease is diagnosed.
   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 present value of future
 employer contributions by approximately $233,300, on average,  for  each
 occurrence  of  Performance  of  Duty Disability Retirement due to heart
 S. 6862                             3
 
 disease and $304,200, on average, for each occurrence of Performance  of
 Duty Death due to heart disease.
   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.
   Based  on  the actuarial assumptions and methods described herein, the
 enactment of this proposed legislation is estimated to  increase  annual
 employer  contributions by approximately $27,600 for each Performance of
 Duty Disability Retirement due to heart  disease  and  by  approximately
 $36,000 for each Performance of Duty Death due to heart disease.
   As  there  is  no  data  currently available to estimate the number of
 members who might be diagnosed with heart disease, the financial  impact
 would  be  recognized  at  the  time  of event. Consequently, changes in
 employer contributions have been estimated assuming that the increase in
 the present value of future employer contributions will be financed over
 a closed 15-year period (14 payments under the One-Year Lag Methodology)
 using level dollar payments.
   With respect to the timing, increases in employer contributions  would
 depend  upon  when members would retire or die due to heart disease but,
 generally, increased employer contributions will first occur the  second
 fiscal  year following approval of the performance of duty disability or
 death benefit.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data  used  in the June 30, 2022 actuarial valuation of NYCERS to deter-
 mine the Preliminary Fiscal Year 2024 employer contributions.
   The 186 Fire Alarm Dispatchers and Supervising Fire Alarm  Dispatchers
 as  of  June  30, 2022, who could potentially benefit from the change in
 the death benefit presumption, had an average age of approximately  40.5
 years, average service of approximately 12.0 years, and an average sala-
 ry  of  approximately $81,800. This group consisted of 113 Tier 4 active
 members and 73 Tier 6 active members.
   The 77 Fire Alarm Dispatchers and Supervising Fire  Alarm  Dispatchers
 as  of  June  30, 2022, who could potentially benefit from the change in
 the disability benefit presumption, had an average age of  approximately
 33.8  years,  average service of approximately 5.1 years, and an average
 salary of approximately $69,400. This group consisted  of  four  Tier  4
 active members and 73 Tier 6 active members.
   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 NYCERS.
   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.
 S. 6862                             4
 
   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
 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 2023-44 dated May 9, 2023
 was prepared by the Chief Actuary  for  the  New  York  City  Employees'
 Retirement  System.  This  estimate  is intended for use only during the
 2023 Legislative Session.