S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7289--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2023
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed  to  be  committed  to  the  Committee  on Local Government --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN  ACT  to  amend  the  general municipal law, in relation to including
   thyroid cancer in the list of cancers presumed to be incurred  in  the
   performance of duty for purposes of disability retirement
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 207-kk of the general municipal law, as amended  by
 chapter 250 of the laws of 2019, is amended to read as follows:
   §  207-kk.  Disabilities  of  firefighters in certain cities caused by
 cancer. Notwithstanding any other provisions  of  this  chapter  to  the
 contrary, any condition of impairment of health caused by (i) any condi-
 tion  of  cancer  affecting  the  lymphatic,  digestive,  hematological,
 urinary,  neurological,  breast,  reproductive,   ENDOCRINE/THYROID   or
 prostate systems or (ii) melanoma resulting in total or partial disabil-
 ity  or  death  to  a  paid member of a fire department in a city with a
 population of one million or more, or any retired member of such depart-
 ment who has been retired for  five  or  less  years,  who  successfully
 passed  a physical examination on entry into the service of such depart-
 ment, 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. The provisions of this section shall remain in full force  and
 effect  pursuant  to  section  four hundred eighty of the retirement and
 social security law.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY OF BILL: This proposed legislation would amend Section  207-kk
 of  the  General  Municipal  Law (GML) to provide a rebuttable statutory
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11564-02-3
              

 S. 7289--A                          2
 
 presumption to City firefighters, or City firefighter retirees who  have
 been  retired  for  five  years  or  less,  who develop any condition of
 impairment of health caused by thyroid cancer or other  cancers  of  the
 endocrine  system,  that  such condition was incurred in the performance
 and discharge of duty,  unless  the  contrary  is  proven  by  competent
 evidence,  entitling  such  member or retiree to the applicable accident
 disability retirement or accidental death benefit.
   Effective Date: Upon enactment.
   IMPACT ON BENEFITS: Currently, an active member of the New  York  City
 Fire  Pension  Fund (FIRE) who becomes disabled due to thyroid cancer or
 other cancers of the endocrine system would be eligible for an  applica-
 ble  ordinary  disability retirement, generally a lifetime payment based
 on the greater of 1/2 of FAS  or  the  service  retirement  benefit,  if
 eligible  for  Tier 2 members, or generally based on the greatest of 1/3
 of FAS, 2% of FAS for each year of service, or  the  service  retirement
 benefit, if eligible for Tier 3 members.
   Under  the  proposed  legislation,  the benefits for active members of
 FIRE or retired members of FIRE who have been retired for five  or  less
 years, who become disabled due to thyroid cancer or other cancers of the
 endocrine  system would be eligible for a Performance of Duty Disability
 Retirement Benefit, generally a lifetime payment equal to the greater of
 75% of FAS, or the service retirement benefit, if eligible.
   In the event of a death in active service, the current Ordinary  Death
 Benefit is generally equal to three times a member's last salary. In the
 event of a death of a retired employee, an optional benefit may be paya-
 ble.  Under  the  proposed  legislation, the beneficiaries of a deceased
 member or eligible retire would be entitled  to  a  lifetime  Accidental
 Death  Benefit  equal  to 50% of a member's wages earned during the last
 year of service plus, if applicable, the Special Accidental Death  Bene-
 fit payable under GML section 208-f.
   FINANCIAL  IMPACT  -  OVERVIEW: There is no data available to estimate
 the number of members who might develop thyroid cancer or other  cancers
 of  the  endocrine  system,  and  potentially benefit from this proposed
 legislation. Therefore, the estimated financial impact has  been  calcu-
 lated on a per event basis equal to the increase in the present value of
 future employer contributions for an average member who could potential-
 ly  be  diagnosed  with thyroid cancer or other cancers of the endocrine
 system 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  50% of the members would have
 retired under an Ordinary Disability Retirement (ODR) benefit,  and  the
 remaining  50%  of  members  would have continued working and eventually
 retired for service 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 ODR benefit when thyroid cancer or other cancers of  the
 endocrine system are diagnosed.
 S. 7289--A                          3
 
   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 $468,300, on average,  for  each
 occurrence of performance of duty disability due to endocrine or thyroid
 cancers,  and by approximately $2.3 million, on average, for each occur-
 rence of performance of duty death due to endocrine or thyroid cancers.
   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 the 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 $55,400, on  average,  for  each
 performance  of  duty  disability retirement due to endocrine or thyroid
 cancers, and by approximately $267,100, on average, for each performance
 of duty death due to endocrine or thyroid cancers.
   As there is no data currently available  to  estimate  the  number  of
 members  who  might be diagnosed with thyroid cancer or other cancers of
 the endocrine system, 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  thyroid  cancer  or
 other cancers of the endocrine system 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 FIRE to  determine
 the Preliminary Fiscal Year 2024 employer contributions.
   The 10,685 active members of FIRE as of June 30, 2022 who could poten-
 tially  benefit  from  the  proposed  legislation  had an average age of
 approximately 41.0 years, average service of approximately  14.2  years,
 and an average salary of approximately $134,700. This group consisted of
 6,216 Tier 2 active members and 4,469 Tier 3 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 FIRE.
   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. 7289--A                          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  2023-61  dated  May  30,
 2023  was  prepared  by  the  Chief  Actuary  for the New York City Fire
 Pension Fund. This estimate is intended for use  only  during  the  2023
 Legislative Session.