A10567 Summary:

BILL NOA10567
 
SAME ASSAME AS S08015
 
SPONSORAbbate
 
COSPNSRQuart
 
MLTSPNSR
 
Amd §§501, 506, 507, 510, 511, 512 & 517, R & SS L; amd §13-316, NYC Ad Cd
 
Relates to disability benefits for certain members of the New York city fire department pension fund; presumes performance of duty for certain illnesses; authorizes the board of trustees of the New York city fire department pension fund to draw upon the assets of such fund to pay expenses.
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A10567 Actions:

BILL NOA10567
 
06/06/2016referred to governmental employees
06/14/2016reported referred to ways and means
06/15/2016reported referred to rules
06/16/2016reported
06/16/2016rules report cal.467
06/16/2016substituted by s8015
 S08015 AMEND= GOLDEN
 06/03/2016REFERRED TO RULES
 06/06/2016ORDERED TO THIRD READING CAL.1473
 06/14/2016HOME RULE REQUEST
 06/14/2016PASSED SENATE
 06/14/2016DELIVERED TO ASSEMBLY
 06/14/2016referred to governmental employees
 06/16/2016substituted for a10567
 06/16/2016ordered to third reading rules cal.467
 06/16/2016home rule request
 06/16/2016passed assembly
 06/16/2016returned to senate
 09/06/2016DELIVERED TO GOVERNOR
 09/08/2016SIGNED CHAP.298
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A10567 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10567
 
                   IN ASSEMBLY
 
                                      June 6, 2016
                                       ___________
 
        Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Abbate) --
          read once and referred to the Committee on Governmental Employees
 
        AN ACT to amend the retirement and social security law, in  relation  to
          disability  benefits  for  certain  members  of the New York city fire
          department pension fund; and to amend the administrative code  of  the
          city  of  New York, in relation to the powers, duties and responsibil-
          ities of the board of trustees of the New York  city  fire  department
          pension fund, and in relation to authorizing such board of trustees to
          draw upon the assets of such fund to pay expenses
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 24 of section 501 of the retirement and  social
     2  security  law,  as amended by chapter 18 of the laws of 2012, is amended
     3  to read as follows:
     4    24. "Wages" shall mean regular compensation earned by and  paid  to  a
     5  member  by a public employer, except that for members who first join the
     6  state and local employees' retirement system on or after January  first,
     7  two  thousand  ten,  overtime compensation paid in any year in excess of
     8  the overtime ceiling, as defined  by  this  subdivision,  shall  not  be
     9  included in the definition of wages. "Overtime compensation" shall mean,
    10  for  purposes of this section, compensation paid under any law or policy
    11  under which employees are paid at a rate  greater  than  their  standard
    12  rate  for  additional  hours  worked  beyond  those  required, including
    13  compensation paid under section one hundred  thirty-four  of  the  civil
    14  service  law and section ninety of the general municipal law. The "over-
    15  time ceiling" shall mean fifteen thousand dollars per annum  on  January
    16  first,  two  thousand  ten, and shall be increased by three percent each
    17  year thereafter, provided, however, that for members  who  first  become
    18  members  of the New York state and local employees' retirement system on
    19  or after April first, two thousand twelve, "overtime ceiling" shall mean
    20  fifteen thousand dollars per annum on April first, two thousand  twelve,
    21  and shall be increased each year thereafter by a percentage to be deter-
    22  mined  annually  by  reference  to  the  consumer price index (all urban
    23  consumers, CPI-U, U.S. city average, all items, 1982-84=100),  published
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15773-01-6

        A. 10567                            2
 
     1  by  the  United  States  bureau of labor statistics, for each applicable
     2  calendar year. Said percentage  shall  equal  the  annual  inflation  as
     3  determined from the increase in the consumer price index in the one year
     4  period  ending  on the December thirty-first prior to the cost-of-living
     5  adjustment effective on the ensuing April first.   For  the  purpose  of
     6  calculation  a  member's  primary  federal social security retirement or
     7  disability benefit, wages shall, in any calendar year, be limited to the
     8  portion of the member's wages  which  would  be  subject  to  tax  under
     9  section  three  thousand  one hundred twenty-one of the internal revenue
    10  code of nineteen hundred fifty-four, or  any  predecessor  or  successor
    11  provision  relating  thereto,  if  such member was employed by a private
    12  employer. For members who first become members of the New York state and
    13  local employees' retirement system on or after  the  effective  date  of
    14  [the  chapter  of  the  laws  of  two thousand twelve which amended this
    15  subdivision] chapter eighteen of the laws of two  thousand  twelve,  the
    16  following  items  shall  not be included in the definition of wages: (a)
    17  wages in excess of the annual salary paid to the  governor  pursuant  to
    18  section  three  of  article four of the state constitution, (b) lump sum
    19  payments for deferred compensation, sick leave, accumulated vacation  or
    20  other  credits for time not worked, (c) any form of termination pay, (d)
    21  any additional compensation paid in anticipation of retirement, and  (e)
    22  in  the case of employees who receive wages from three or more employers
    23  in a twelve month period, the wages paid by the third and  each  succes-
    24  sive  employer.  For New York city enhanced plan members who receive the
    25  ordinary disability benefit provided for in subdivision c-1  of  section
    26  five  hundred  six  of this article or the accidental disability benefit
    27  provided for in paragraph three of subdivision c of section five hundred
    28  seven of this article, the following items shall not be included in  the
    29  definition  of  wages:  (a) lump sum payments for deferred compensation,
    30  sick leave, accumulated vacation or other credits for time  not  worked,
    31  (b) any form of termination pay, (c) any additional compensation paid in
    32  anticipation of retirement, and (d) in the case of employees who receive
    33  wages  from  three or more employers in a twelve month period, the wages
    34  paid by the third and each successive employer.
    35    § 2. Section 501 of the retirement and social security law is  amended
    36  by adding a new subdivision 28 to read as follows:
    37    28.  "New  York  city  enhanced plan member" shall mean (a) a New York
    38  city  police/fire  revised  plan  member  who  becomes  subject  to  the
    39  provisions  of  this  article  on  or after June fifteenth, two thousand
    40  sixteen and who is a member of the New York city fire department pension
    41  fund, (b) a police/fire member who is a member of the New York city fire
    42  department pension fund and who makes an election, which shall be irrev-
    43  ocable and shall be duly executed and filed with the administrative head
    44  of such pension fund no later than one hundred  twenty  days  after  the
    45  effective  date  of this subdivision, to be subject to the provisions of
    46  this article related to New York city enhanced plan members,  or  (c)  a
    47  New  York city police/fire revised plan member who became subject to the
    48  provisions of this article before June fifteenth, two thousand  sixteen,
    49  who  is  a member of the New York city fire department pension fund, and
    50  who makes an election, which shall be  irrevocable  and  shall  be  duly
    51  executed  and filed with the administrative head of such pension fund no
    52  later than one hundred twenty days after  the  effective  date  of  this
    53  subdivision,  to be subject to the provisions of this article related to
    54  New York city enhanced plan members.
    55    § 3. Section 506 of the retirement and social security law is  amended
    56  by adding a new subdivision c-1 to read as follows:

        A. 10567                            3
 
     1    c-1.  Notwithstanding any inconsistent provision of subdivision a or b
     2  of this section, the ordinary disability benefit for  a  New  York  city
     3  enhanced  plan member in active service who is not eligible for a normal
     4  retirement benefit, has completed five years or more of service, and has
     5  been  determined  to  be eligible for primary social security disability
     6  benefits shall be a pension equal to the greater of (i) thirty-three and
     7  one-third percent of final average salary, or (ii) two percent of  final
     8  average  salary  times  years  of  credited service not in excess of the
     9  maximum years of service for computing service retirement, such  benefit
    10  in  each  case  to  be  reduced  by  one hundred percent of any workers'
    11  compensation benefits payable.
    12    § 4. Subdivisions c and e of section 507 of the retirement and  social
    13  security  law,  subdivision  c  as  amended by chapter 18 of the laws of
    14  2012, and subdivision e as added by chapter 890 of the laws of 1976, are
    15  amended to read as follows:
    16    c. 1. In the case of a member of a retirement system  other  than  the
    17  New  York  state  and  local  employees' retirement system, the New York
    18  state teachers' retirement system, the New York city employees'  retire-
    19  ment  system,  the New York city board of education retirement system or
    20  the New York city teachers' retirement system,  or  in  the  case  of  a
    21  member  of  the  New York city employees' retirement system who is a New
    22  York city uniformed correction/sanitation  revised  plan  member  or  an
    23  investigator  revised  plan  member,  the  accidental disability benefit
    24  hereunder shall be a pension equal to two percent of final average sala-
    25  ry times years of credited service which such member would have attained
    26  if employment had continued until such member's  full  escalation  date,
    27  not  in excess of the maximum years of service creditable for the normal
    28  service retirement benefit, less (i) fifty percent of the primary social
    29  security disability benefit, if any, as provided in section five hundred
    30  eleven of this article, and (ii) one hundred  percent  of  any  workers'
    31  compensation  benefits  payable.  The provisions of this paragraph shall
    32  not apply to New York city enhanced plan members.
    33    2. In the case of a member of the New York state and local  employees'
    34  retirement  system,  the New York state teachers' retirement system, the
    35  New York city employees' retirement system (other than a New  York  city
    36  uniformed  correction/sanitation  revised plan member or an investigator
    37  revised plan member), the New York city board  of  education  retirement
    38  system  or the New York city teachers' retirement system, the accidental
    39  disability benefit hereunder shall be a pension equal to  sixty  percent
    40  of  final  average  salary, less (i) fifty percent of the primary social
    41  security disability benefit, if any, as provided in section five hundred
    42  eleven of this article, and (ii) one hundred  percent  of  any  workers'
    43  compensation  benefits  payable.  In the event a disability retiree from
    44  any retirement system is not eligible for the  primary  social  security
    45  disability  benefit and continues to be eligible for disability benefits
    46  hereunder, such disability benefit shall be reduced by one-half of  such
    47  retiree's  primary social security retirement benefit, commencing at age
    48  sixty-two, in the same manner as provided for service  retirement  bene-
    49  fits under section five hundred eleven of this article.
    50    3. In the case of a New York city enhanced plan member, the accidental
    51  disability  benefit  hereunder  shall be a pension equal to seventy-five
    52  percent of final average salary, less one hundred percent of  any  work-
    53  ers' compensation benefits payable.
    54    e. A member, except a New York city enhanced plan member, shall not be
    55  eligible to apply for disability benefits under section five hundred six
    56  or  this  section  unless such member shall, at the time of application,

        A. 10567                            4
 
     1  sign a waiver prepared by the retirement  system  and  approved  by  the
     2  administrative  head of such system pursuant to which such member agrees
     3  to waive the benefits of any statutory presumption relating to the cause
     4  of  disability  or  eligibility  for disability benefits, and a determi-
     5  nation of eligibility for  benefits  hereunder  shall  be  made  without
     6  regard to any such statutory provision.
     7    §  5. Section 507 of the retirement and social security law is amended
     8  by adding a new subdivision j to read as follows:
     9    j. Notwithstanding any inconsistent provision of this chapter  or  any
    10  law,  any  condition  of  impairment of health caused by diseases of the
    11  lung, resulting in disability or death to a member of the New York  city
    12  fire  department  pension  fund  who  is  a  New York city enhanced plan
    13  member, who successfully passed a physical  examination  on  entry  into
    14  service  as a firefighter, which examination failed to disclose evidence
    15  of any disease or other impairment of the  lung,  shall  be  presumptive
    16  evidence  that it was incurred in the performance and discharge of duty,
    17  unless the contrary be proved by competent evidence.
    18    § 6. Section 510 of the retirement and social security law is  amended
    19  by adding a new subdivision i to read as follows:
    20    i.  Notwithstanding  any  other  provision of this article, the annual
    21  escalation provided in this section shall  not  apply  to  the  ordinary
    22  disability  benefit for New York city enhanced plan members provided for
    23  in subdivision c-1 of section five hundred six of this  article  or  the
    24  accidental  disability  benefit  for New York city enhanced plan members
    25  provided for in paragraph three of subdivision c of section five hundred
    26  seven of this article. Such members who receive such ordinary disability
    27  benefit or accidental disability benefit  shall  have  a  cost-of-living
    28  adjustment  for such benefit, which shall be computed in the same manner
    29  as provided for by section 13-696 of the administrative code of the city
    30  of New York.
    31    § 7. Section 511 of the retirement and social security law is  amended
    32  by adding a new subdivision g to read as follows:
    33    g.  This  section  shall  not  apply  to a New York city enhanced plan
    34  member who receives the ordinary  disability  benefit  provided  for  in
    35  subdivision c-1 of section five hundred six of this article or the acci-
    36  dental disability benefit provided for in paragraph three of subdivision
    37  c of section five hundred seven of this article.
    38    § 8. Subdivision a of section 512 of the retirement and social securi-
    39  ty law, as amended by chapter 18 of the laws of 2012, is amended to read
    40  as follows:
    41    a.  A  member's final average salary shall be the average wages earned
    42  by such a member during any three consecutive years  which  provide  the
    43  highest  average wage; provided, however, if the wages earned during any
    44  year included in the period  used  to  determine  final  average  salary
    45  exceeds  that  of the average of the previous two years by more than ten
    46  percent, the amount in excess of ten percent shall be excluded from  the
    47  computation  of  final  average  salary.   Notwithstanding the preceding
    48  provisions of this subdivision to the contrary, for a member  who  first
    49  becomes  a  member of the New York state and local employees' retirement
    50  system on or after April first, two thousand twelve, or for a  New  York
    51  city  police/fire  revised  plan  member,  a New York city enhanced plan
    52  member who receives the ordinary  disability  benefit  provided  for  in
    53  subdivision c-1 of section five hundred six of this article or the acci-
    54  dental disability benefit provided for in paragraph three of subdivision
    55  c  of  section  five  hundred  seven  of  this  article, a New York city
    56  uniformed correction/sanitation revised plan member or  an  investigator

        A. 10567                            5
 
     1  revised  plan member, a member's final average salary shall be the aver-
     2  age wages earned by such a member  during  any  five  consecutive  years
     3  which  provide the highest average wage; provided, however, if the wages
     4  earned  during  any  year included in the period used to determine final
     5  average salary exceeds that of the average of the previous four years by
     6  more than ten percent, the amount in excess  of  ten  percent  shall  be
     7  excluded  from  the  computation of final average salary. In determining
     8  final average salary pursuant to  any  provision  of  this  subdivision,
     9  where  the  period  used to determine final average salary is the period
    10  which immediately precedes the date of retirement, any month  or  months
    11  (not in excess of twelve) which would otherwise be included in computing
    12  final average salary but during which the member was on authorized leave
    13  of  absence  at  partial  pay  or without pay shall be excluded from the
    14  computation of final average salary and the month or an equal number  of
    15  months  immediately  preceding  such period shall be substituted in lieu
    16  thereof.
    17    § 9. Section 517 of the retirement and social security law is  amended
    18  by adding a new subdivision h to read as follows:
    19    h. Notwithstanding any inconsistent provision of subdivision a of this
    20  section,  New York city enhanced plan members shall, as of the effective
    21  date of this subdivision, contribute three percent of  annual  wages  to
    22  the  pension  fund  in  which  they  have membership, plus an additional
    23  percentage of annual wages as set forth in the chapter of  the  laws  of
    24  two thousand sixteen which added this subdivision.
    25    §  10. The opening paragraph of subdivision a of section 13-316 of the
    26  administrative code of the city of  New  York  is  amended  to  read  as
    27  follows:
    28    A  board of trustees shall be the head of the New York fire department
    29  pension fund subchapter two, and, subject to the provisions of law  [and
    30  to the prior approval of the board of estimate], from time to time shall
    31  establish  rules  and regulations for the administration and transaction
    32  of the business of such fund and for the control and disposition  there-
    33  of.  The  provisions  of  sections  one thousand forty-two, one thousand
    34  forty-three, one thousand forty-four and one thousand forty-five of  the
    35  New York city charter shall not be construed to apply to the adoption of
    36  such rules and regulations. Such board shall consist of:
    37    §  11. Paragraph 11 of subdivision a of section 13-316 of the adminis-
    38  trative code of the city of New York, as added by  chapter  583  of  the
    39  laws of 1989, is amended to read as follows:
    40    11.  (i)  Where,  during any six-month period during a fiscal year, as
    41  defined in subdivision three of section 13-382 of the code,  the  equity
    42  portion  of  the  assets  of  the  pension  fund is less than forty-five
    43  percent, subparagraph (ii) of this paragraph [eleven] shall be effective
    44  during the succeeding fiscal year.
    45    (ii) Two investment representatives, one of whom shall be appointed by
    46  the mayor and one of whom shall be appointed by the comptroller upon the
    47  occurrence of the condition specified in subparagraph (i) of this  para-
    48  graph  [eleven].  Each such representative shall be entitled to cast two
    49  votes only in relation to determinations of the board:
    50    (A) as to whether the assets of the pension fund shall be invested  in
    51  equities  or fixed income securities and the proportion of the assets of
    52  the pension fund to be invested in equities and fixed income securities;
    53  and
    54    (B) as to the identity, nature, character and amounts of the  equities
    55  (within  the  proportion  as  determined under item (A) of this subpara-

        A. 10567                            6
 
     1  graph) to be acquired, held, sold, disposed of or otherwise  dealt  with
     2  by the pension fund; and
     3    (C)  as  to any steps necessary to effectuate any of the functions set
     4  forth in items (A) and (B) of this subparagraph; and
     5    (D) as to delegation by the board, pursuant to law, of  the  functions
     6  described in items (A), (B) and (C) of this subparagraph.
     7    §  12.  Subdivision  b of section 13-316 of the administrative code of
     8  the city of New York, as amended by chapter 583 of the laws of 1989,  is
     9  amended to read as follows:
    10    b.  Subject  to the provisions of subdivision b-1 and subdivision f of
    11  this section, every act of the board of trustees shall be by  resolution
    12  which  shall be adopted only by a vote of at least seven-twelfths of the
    13  whole number of votes authorized to be cast by all  of  the  members  of
    14  such board.
    15    §  13.  Subdivision  c of section 13-316 of the administrative code of
    16  the city of New York is amended to read as follows:
    17    c. The fire commissioner shall [assign to  the  board  of  trustees  a
    18  sufficient  number  of clerical and other assistants to permit the board
    19  efficiently to exercise  their  powers  and  to  perform  their  duties]
    20  appoint  an  executive  director of the pension fund, provided, however,
    21  that if such designee of the fire commissioner is not a  member  of  the
    22  uniformed  force  of  the  fire  department, the board of trustees shall
    23  approve such appointment. The executive director  of  the  pension  fund
    24  shall perform such duties as may be conferred upon such executive direc-
    25  tor  by the chairperson of the board, by resolution passed by the board,
    26  or by law.
    27    § 14. Section 13-316 of the administrative code of  the  city  of  New
    28  York is amended by adding five new subdivisions e, f, g, h and i to read
    29  as follows:
    30    e.  1.  In  addition  to  the  powers  conferred  upon it by any other
    31  provision of law, the board of trustees shall, on or before April  first
    32  of  each  year,  establish  a  budget, sufficient to fulfill the powers,
    33  duties and responsibilities set forth in  this  chapter  and  any  other
    34  provision of law which sets forth the benefits of members of the pension
    35  fund and may draw upon the assets of the pension fund to fund such budg-
    36  et,  subject  to the provisions of paragraphs two, three, four, five and
    37  six of this subdivision and subdivisions f, g, h and i of this  section.
    38  The provisions of this section shall not be applicable to the payment of
    39  investment expenses pursuant to section 13-705 of this title and nothing
    40  contained  in  this subdivision shall be construed as abolishing, limit-
    41  ing, or modifying any power of the board of trustees to provide for  the
    42  payment of investment expenses pursuant to section 13-705 of this title.
    43    2.  If  a  budget  has not been adopted by the commencement of the new
    44  fiscal year, the budget for the preceding fiscal year shall be deemed to
    45  have been extended for the new fiscal year until  such  time  as  a  new
    46  budget is adopted.
    47    3.  Any  budget  in  effect  pursuant  to paragraph one or two of this
    48  subdivision may be modified during such succeeding fiscal year.
    49    4. Notwithstanding any other provision of law, the board  of  trustees
    50  shall  have  the power either directly or by delegation to the executive
    51  director, to obtain by employment or by contract the goods, property and
    52  services necessary to fulfill its powers,  duties  and  responsibilities
    53  within the appropriation authorized by the board of trustees pursuant to
    54  paragraph one of this subdivision.
    55    5.  (i)  The  pension fund shall be considered an entity separate from
    56  the city of New York fire department.  The  board  of  trustees  of  the

        A. 10567                            7
 
     1  pension  fund  shall work closely with the city of New York fire depart-
     2  ment.
     3    (ii)  The provisions of chapter seventeen of the New York city charter
     4  shall continue to apply to the fire department  pension  fund  and  such
     5  fund  shall  constitute  an agency for the purposes of such chapter. The
     6  board of trustees shall not obtain any legal services by  the  retention
     7  of employees or by contract unless the corporation counsel shall consent
     8  thereto.
     9    6.  All  contracts  for  goods or services entered into by the pension
    10  fund shall be procured as prescribed in chapter thirteen of the New York
    11  city charter; provided, however, that where the provisions of such chap-
    12  ter thirteen require action by the  mayor  in  regard  to  a  particular
    13  procurement  (except  for  mayoral  action  pursuant to subdivision c of
    14  section three hundred thirty-four of the New  York  city  charter)  such
    15  action  shall  not  be taken by the mayor or such appointee of the mayor
    16  but shall be taken by the board of trustees or  the  executive  director
    17  pursuant  to  a  resolution  adopted by the board of trustees delegating
    18  such authority to the executive director.
    19    f. Notwithstanding any other provisions of this  section,  any  resol-
    20  ution  of the board of trustees which establishes a budget or modifies a
    21  budget pursuant to the provisions of paragraph one or three of  subdivi-
    22  sion  e of this section shall require the concurrence of the comptroller
    23  and the representative of the mayor. This provision shall only apply  to
    24  this  subdivision  and  nothing  contained  in this subdivision shall be
    25  construed to apply to any other vote of the  board.  No  assets  of  the
    26  pension fund shall be drawn upon pursuant to the provisions of paragraph
    27  one  of  subdivision  e of this section unless authorized by a budget or
    28  budget modification established by such resolution of the board of trus-
    29  tees.
    30    g. Employment by the pension fund shall  constitute  city-service  for
    31  the  purposes of this subchapter for those employees that are members of
    32  the fund pursuant to section 13-314 of this subchapter;  for  all  other
    33  employees,  employment by the pension fund shall constitute city service
    34  for the purposes  of  chapter  one  of  title  thirteen  of  this  code;
    35  provided,  however,  that nothing contained in this subdivision shall be
    36  construed as granting membership rights  in  the  pension  fund  or  any
    37  retirement  system  to  a  contractor  of such fund or such contractor's
    38  employees. Employees of the pension fund shall be deemed to be employees
    39  of the city of New York for the purposes of chapter thirty-five  of  the
    40  charter and title twelve of this code.
    41    h.  Whenever the assets of the pension fund are drawn upon pursuant to
    42  the provisions of paragraph one of subdivision e  of  this  section  all
    43  monies  so  withdrawn  shall be made a charge to be paid by the employer
    44  otherwise required to make contributions to the pension  fund  no  later
    45  than the end of the second fiscal year succeeding the time period during
    46  which  such  assets  are  drawn  upon.  The actuary shall calculate such
    47  charge to be paid by the employer. All charges to be  paid  pursuant  to
    48  this  subdivision shall be paid at the regular rate of interest utilized
    49  by the actuary in determining employer contributions to the pension fund
    50  pursuant to the provisions of paragraph two of subdivision b of  section
    51  13-638.2 of this title.
    52    i. The funds withdrawn from the pension fund shall not be utilized for
    53  any  purpose other than the budget established by the board of trustees.
    54  All expenditures of the pension fund shall be subject to  audit  by  the
    55  comptroller, who may make recommendations, including but not limited to,
    56  procedures  designed to improve accounting and expenditure control.  All

        A. 10567                            8
 
     1  expenditures of the pension fund shall be reported to the mayor's office
     2  of management and budget and the budgetary office of  the  city  of  New
     3  York fire department.
     4    §  15. Notwithstanding any other law to the contrary, any condition of
     5  impairment of health caused by diseases of the  lung,  diseases  of  the
     6  heart,  or  by  a  stroke, resulting in disability or death to a medical
     7  officer of the fire department of the city of New York who is  a  member
     8  of  the  New  York  city  fire department pension fund, who is presently
     9  employed,  and  who  shall  have  sustained  such  disability  while  so
    10  employed,  shall  be  presumptive  evidence  that it was incurred in the
    11  performance and discharge of duty, unless  the  contrary  be  proved  by
    12  competent evidence, provided that (i) such officer successfully passed a
    13  physical  examination  for  entry  into  public  service,  or authorized
    14  release of all relevant medical records, if such officer did not undergo
    15  a physical examination for entry into public service, and (ii) there  is
    16  no  evidence  of  the  qualifying condition or impairment of health that
    17  formed the basis for the disability in  such  physical  examination  for
    18  entry  into  public service or in the relevant medical records, prior to
    19  such officer's entry into public service.
    20    § 16. Notwithstanding any other law to the contrary, any medical offi-
    21  cer of the fire department of the city of New York who is  a  member  of
    22  the  New  York  city  fire  department  pension  fund,  who is presently
    23  employed, and who contracts HIV (where the officer may have been exposed
    24  to a bodily fluid of a person under his or her  care  or  treatment,  or
    25  while  the  officer  examined,  transported,  rescued  or  otherwise had
    26  contact with such person, in the performance  of  his  or  her  duties),
    27  tuberculosis  or hepatitis, who shall have contracted such disease while
    28  so employed, will be presumed to  have  contracted  such  disease  as  a
    29  natural  or  proximate  result  of  an accidental injury received in the
    30  performance and discharge of his or her duties and not as  a  result  of
    31  his  or  her willful negligence, unless the contrary be proved by compe-
    32  tent evidence, provided that (i)  such  officer  successfully  passed  a
    33  physical  examination  for  entry  into  public  service,  or authorized
    34  release of all relevant medical records, if such officer did not undergo
    35  a physical examination for entry into public service, and (ii) there  is
    36  no  evidence  of  the  qualifying  disease that formed the basis for the
    37  disability in such physical examination for entry into public service or
    38  in the relevant medical records, prior  to  such  officer's  entry  into
    39  public service.
    40    §  17. Notwithstanding any other law to the contrary, any condition of
    41  impairment of health caused by (a) any condition of cancer affecting the
    42  lymphatic,  digestive,  hematological,  urinary,  neurological,  breast,
    43  reproductive,  or prostate systems or (b) melanoma resulting in total or
    44  partial disability or death, resulting  in  disability  or  death  to  a
    45  medical  officer of the fire department of the city of New York who is a
    46  member of the New York city fire department pension fund, who  is  pres-
    47  ently  employed,  and  who shall have sustained such disability while so
    48  employed, shall be presumptive evidence that  it  was  incurred  in  the
    49  performance  and  discharge  of  duty,  unless the contrary be proved by
    50  competent evidence, provided that (i) such officer successfully passed a
    51  physical examination  for  entry  into  public  service,  or  authorized
    52  release of all relevant medical records, if such officer did not undergo
    53  a  physical examination for entry into public service, and (ii) there is
    54  no evidence of the qualifying condition or  impairment  of  health  that
    55  formed  the  basis  for  the disability in such physical examination for

        A. 10567                            9
 
     1  entry into public service or in the relevant medical records,  prior  to
     2  such officer's entry into public service.
     3    §  18.  New York city enhanced plan members, as defined in section 501
     4  of the retirement and social security law as amended by section  two  of
     5  this  act, shall contribute, pursuant to subdivision h of section 517 of
     6  the retirement and social security law as added by section nine of  this
     7  act,  an  additional  two percent of annual wages to the pension fund in
     8  which they have membership. Every three years from the effective date of
     9  this act, the actuary of such pension fund shall  prepare  an  analysis,
    10  using current actuarial methods and assumptions in effect as of the date
    11  of  such  analysis,  assessing  the total cost of providing the benefits
    12  established by this act expressed  as  an  employee  contribution  of  a
    13  percentage  of annual wages of New York City enhanced plan members which
    14  would require no additional employer contribution. On the basis of  such
    15  analysis,  the additional percentage of annual wages provided for herein
    16  shall be adjusted to equal two percent of annual wages plus  any  amount
    17  by  which  the employee contribution calculated in such analysis exceeds
    18  4.3 percent of annual wages, provided, however, that in no  event  shall
    19  the additional percentage of annual wages exceed three percent.
    20    §  19.  Except as specified in this act, nothing contained in this act
    21  shall affect or impair the rights or privileges of officers or employees
    22  of the New York city fire department pension fund  in  relation  to  the
    23  personnel,  appointment,  ranks,  grades,  length of service, promotion,
    24  removal, pension and retirement  rights,  civil  rights,  or  any  other
    25  rights  or  privileges  of officers or employees of the city of New York
    26  generally or officers or employees of such fund.
    27    § 20. Section 81 of chapter 18 of the laws of 2012 shall not apply  to
    28  this act.
    29    §  21. This act shall take effect immediately; provided, however, that
    30  the provisions of this act authorizing the adoption of a budget and  the
    31  use  of  the assets of the New York city fire department pension fund to
    32  pay expenses may be utilized during the fiscal year commencing  on  July
    33  1,  2016  and provided further, that in such event, such budget shall be
    34  deemed to have been established on April 1, 2016.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          PROVISIONS OF PROPOSED LEGISLATION: With respect to the New York  Fire
        Department  Pension  Fund  (FIRE),  the proposed legislation would amend
        Sections 501, 506, 507, 510, 511, 512, and 517  of  the  Retirement  and
        Social  Security Law (RSSL) to provide changes to the benefit provisions
        of Tier 3 and Revised Tier 3 FIRE members, including  changes  to  Acci-
        dental  Disability  Retirement  (ADR) and Ordinary Disability Retirement
        (ODR) benefits. The proposed legislation would also allow eligible  FIRE
        Members  to  utilize  applicable  statutory presumptions for purposes of
        ADR. The proposed legislation would further amend Section 13-316 of  the
        Administrative Code of the City of New York (ACNY) to authorize the FIRE
        Board  of  Trustees  to draw upon assets of such fund to pay for certain
        budgeted expenses.
          The Effective Date of the proposed legislation would be  the  date  of
        enactment. For budgetary purposes, FIRE may adopt a budget and draw upon
        the assets of such fund commencing on July 1, 2016. Such budget shall be
        deemed effective as of April 1, 2016.
          For  purposes of this Fiscal Note, all FIRE members subject to Article
        14 of the RSSL will be referred to as "Tier 3 FIRE Members" (Tier 3 Fire
        Members include Tier 3 FIRE Medical Officers). Tier 3 FIRE  Members  who
        have a date of membership prior to April 1, 2012, will be referred to as
        "Original  Tier  3 FIRE Members." Tier 3 FIRE Members who have a date of

        A. 10567                           10
 
        membership on or after April 1, 2012, will be referred  to  as  "Revised
        Tier 3 FIRE Members."
          Tier  3 FIRE Members who are Members prior to June 15, 2016 would have
        the option of remaining under the current benefit structure or irrevoca-
        bly electing, within 120 days of the  effective  date  of  the  proposed
        legislation,  to be covered under the benefit structure contained in the
        proposed legislation.  Tier 3 FIRE Members who  become  Members  on  and
        after  June 15, 2016 would be subject to the benefit structure contained
        in the proposed legislation. Tier 3 FIRE Members who elect the  benefits
        of this proposed legislation, and Tier 3 FIRE Members who are subject to
        mandatory participation, are referred to as "Enhanced Plan Members."
          Enhanced  Plan  Members  would,  in  addition  to  paying  the current
        contribution rate of 3% of annual wages, be required to contribute addi-
        tional contributions initially at 2% of annual wages and, in the future,
        ranging from 2% to 3% of annual wages depending on specified future cost
        calculations.
          CURRENT ODR BENEFITS PAYABLE: The current ODR benefits for Tier 3 FIRE
        Members are equal to the greater of:
          * 33 1/3% of Final Average Salary (FAS), or
          * 2% of FAS multiplied by years of credited service (not in excess  of
        22 years),
          Reduced by:
          *  50%  of the Primary Social Security Disability benefits (determined
        under RSSL Section 511), and
          * 100% of Workers' Compensation benefits (if any).
          FAS is a Three-Year Average (FAS3) for Original Tier  3  FIRE  Members
        and a Five-Year Average (FAS5) for Revised Tier 3 FIRE Members.
          It  is  the  understanding  of  the  Actuary that FIRE Members are not
        covered by Workers' Compensation.
          IMPACT ON ODR BENEFITS PAYABLE: Under the  proposed  legislation,  the
        ODR  benefits  for Enhanced Plan Members would be revised to be equal to
        the greater of:
          * 33 1/3% of FAS5, or
          * 2% of FAS5 multiplied by years of credited service (not in excess of
        22 years).
          Reduced by:
          * 100% of Workers' Compensation benefits (if any).
          It is the understanding of the  Actuary  that  FIRE  Members  are  not
        covered by Workers' Compensation.
          Eligibility  for  ODR  benefits for Enhanced Plan Members would remain
        the same.
          In addition, the proposed legislation would not apply  the  Escalation
        available  under  RSSL  Section  510  to  ODR benefits for Enhanced Plan
        Members.  However, such ODR benefits would still be eligible  for  Cost-
        of-Living Adjustments (COLA) under Chapter 125 of the Laws of 2000.
          CURRENT ADR BENEFITS PAYABLE: The current ADR benefits for Tier 3 FIRE
        Members is equal to:
          * 50% multiplied by FAS,
          Reduced by:
          *  50% of Primary Social Security disability benefit or Primary Social
        Security benefits, whichever begins first (determined under RSSL Section
        511), and
          * 100% of Workers' Compensation benefits (if any).
          FAS is a FAS3 for Original Tier 3 FIRE Members and a FAS5 for  Revised
        Tier 3 FIRE Members.

        A. 10567                           11
 
          It  is  the  understanding  of  the  Actuary that FIRE Members are not
        covered by Workers' Compensation.
          IMPACT  ON  ADR  BENEFITS PAYABLE: Under the proposed legislation, the
        eligibility requirements for ADR  benefits  for  Enhanced  Plan  Members
        would  be  the  same. However these Members would be eligible to utilize
        applicable statutory presumptions  (e.g.,  certain  lung  diseases)  for
        purposes  of  ADR. In addition, under the proposed legislation, eligible
        Medical Officers  may  utilize  the  applicable  statutory  presumptions
        provided  the Medical Officer authorized release of all relevant medical
        records, and there is no evidence of the qualifying condition or impair-
        ment that formed the basis for the disability in such medical records.
          Under the proposed legislation, the ADR  benefits  for  Enhanced  Plan
        Members would be revised to equal a retirement allowance of:
          * 75% multiplied by FAS5,
          Reduced by:
          * 100% of Workers' Compensation benefits (if any).
          It  is  the  understanding  of  the  Actuary that FIRE Members are not
        covered by Workers' Compensation.
          In addition, the proposed legislation would not apply  the  Escalation
        available  under  RSSL  Section  510  to  ADR benefits for Enhanced Plan
        Members. However, such ADR benefits would still  be  eligible  for  COLA
        under Chapter 125 of the Laws of 2000.
          FINANCIAL  IMPACT  --  CORPUS FUNDING: Consistent with the methodology
        used to finance administrative expenses for  the  other  New  York  City
        Pension  Funds and Retirement Systems, administrative expenses paid from
        the assets of FIRE in accordance with this proposed legislation would be
        reimbursed with interest through employer contributions for  the  second
        Fiscal  Year  following  their  occurrence.  For example, administrative
        expenses paid from the assets of FIRE during July 1, 2016  through  June
        30, 2017 would be reimbursed with interest through the employer contrib-
        utions for Fiscal Year 2019.
          To  the  extent that the assets of FIRE are used to pay administrative
        expenses of FIRE, then those expenses would no longer be included in the
        operating budget of the New York City Fire  Department.  Therefore,  all
        else being equal, there should be no cost impact to the City of New York
        for changing FIRE to a corpus funded entity.
          FINANCIAL  IMPACT  --  CHANGES IN PROJECTED ACTUARIAL PRESENT VALUE OF
        FUTURE EMPLOYER CONTRIBUTIONS AND PROJECTED EMPLOYER CONTRIBUTIONS:  For
        purposes  of  this  Fiscal  Note,  it is assumed that the changes in the
        Actuarial Present Value (APV) of benefits (APVB), APV of member contrib-
        utions, the Unfunded Actuarial  Accrued  Liability  (UAAL)  and  APV  of
        future  employer  contributions would be reflected for the first time in
        the June 30, 2015 actuarial valuation of FIRE. Under  the  One-Year  Lag
        Methodology  (OYLM),  the  first  year  in which changes in benefits for
        Enhanced Plan Members could impact employer contributions to FIRE  would
        be Fiscal Year 2017.
          Note that since the assumptions used in the actuarial valuation do not
        distinguish  between  Medical Officers and other FIRE members, and since
        assumptions for Tier 2  members  already  incorporate  the  presumptions
        available  under law, there will be only a de minimis change in employer
        contributions for the three medical officers who are Tier 3 members. The
        increase in employer costs for providing  presumptions  to  all  medical
        officers has been estimated to be approximately $100,000 to $200,000 per
        year.
          In  accordance  with ACNY Section 13.638.2(k-2), new UAAL attributable
        to benefit changes are to be amortized as determined by the Actuary  but

        A. 10567                           12
 
        generally  over  the remaining working lifetime of those impacted by the
        benefit changes. As of June 30, 2015, the remaining working lifetime  of
        the  Tier  3  FIRE  members  is approximately 23 years. Recognizing that
        these  periods  will  decrease  over  time as the group of Enhanced Plan
        Members matures, the Actuary would likely choose  to  amortize  the  new
        UAAL attributable to this proposed legislation over a 15-year to 20-year
        period  (between  14  and  19  payments under the OYLM Methodology). For
        purposes of this Fiscal Note, the Actuary has elected  to  amortize  the
        change in UAAL over a 15-year period (14 payments).
          The following Table 1 presents an estimate of the increases in the APV
        of  future  employer contributions and in employer contributions to FIRE
        for Fiscal Years 2017 through 2021 due to the changes  in  ODR  and  ADR
        provisions  for  Enhanced  Plan  Members  and the changes in eligibility
        requirements for presumptions for FIRE Medical  Officers  based  on  the
        applicable actuarial assumptions and methods noted herein:
 
                                         Table 1
 
                           Estimated Financial Impact on FIRE
                            if Certain Revisions are Made to
               Provisions for ODR and ADR Benefits for Tier 3 FIRE Members
            and to Presumption Eligibility Requirements for Medical Officers
 
                                      ($ Millions)
 
                  Fiscal Year         Increase In         Increase
                                      APV of              in Employer
                                      Future Employer     Contributions
                                      Contributions
                  2017                $41.9               $6.1
                  2018                55.9                8.0
                  2019                66.6                9.7
                  2020                75.5                11.2
                  2021                84.6                12.6
 
          The estimated increases in employer contributions shown in Table 1 are
        based upon the following projection assumptions:
          *  Level workforce (i.e., new employees are hired to replace those who
        leave active status).
          * Salary increases consistent with those used in projections presented
        to the New York City Office of Management and Budget in  February,  2016
        (Preliminary Projections).
          *  New  entrant salaries consistent with those used in the Preliminary
        Projections.
          OTHER COSTS: Not measured in this Fiscal Note are the following:
          * The initial, additional administrative costs of  FIRE  to  implement
        the proposed legislation.
          *  The  potential  impact  if  this  proposed  legislation  were to be
        extended to other public safety employees.
          * The impact of this  proposed  legislation  on  Other  Postemployment
        Benefit (OPEB) costs.
          CENSUS  DATA:  The  starting  census  data  used  for the calculations
        presented herein is the census data used in  the  Preliminary  June  30,
        2015  (Lag)  actuarial  valuation  of  FIRE to determine the Preliminary
        Fiscal Year 2017 employer contributions.

        A. 10567                           13
 
          The 318 Tier 3 FIRE members who have a date  of  membership  prior  to
        April 1, 2012 had an average age of approximately 29, average service of
        approximately  2.0  years and an average salary of approximately $54,300
        as of June 30, 2015. The 1,065 Tier 3 FIRE Members who have  a  date  of
        membership on or after April 1, 2012 had an average age of approximately
        28,  average service of approximately 0.8 years and an average salary of
        approximately $47,500 as of June 30, 2015. There are 3  Tier  3  Medical
        Officers in FIRE as of June 30, 2015.
          ACTUARIAL  ASSUMPTIONS  AND  METHODS: The additional employer contrib-
        utions presented herein have been  calculated  based  on  the  actuarial
        assumptions  and  methods  in  effect  for the Preliminary June 30, 2015
        (Lag) actuarial valuations used to determine the Preliminary Fiscal Year
        2017 employer contributions of FIRE.
          In determining the change in employer contributions, the probabilities
        of accidental disability used  for  Tier  3  FIRE  members  equal  those
        currently used for Tier 2 FIRE members.
          It  has  been  further assumed that all Tier 3 FIRE members who became
        members prior to the effective date of  the  proposed  legislation  will
        choose the new disability provisions.
          The  actuarial valuation methodology does not include a calculation of
        the value of an offset for Workers' Compensation  benefits  for  Tier  3
        FIRE  members  as  it  is  the  understanding  of the Actuary that these
        members are not covered by such benefits.
          Employer contributions under current methodology have  been  estimated
        assuming  the  additional  APVB  would be financed through future normal
        contributions including an amortization of the new UAAL attributable  to
        this  proposed  legislation over a 15-year period (14 payments under the
        OYLM Methodology).
          New entrants were projected to replace the members expected  to  leave
        the active population to maintain a steady-state population.
          For  purposes  of  estimating  the  impact  of  Escalation for retired
        Enhanced Plan Members, an assumption of 2.5% was used, which is consist-
        ent with the underlying Consumer Price  Inflation  (CPI)  assumption  of
        2.5%  per year.   This compares with the current Chapter 125 of the Laws
        of 2000 COLA assumption of 1.5% per year (i.e., 50% of CPI  adjusted  to
        recognize a 1.0% minimum and 3.0% maximum) on the first $18,000 of bene-
        fit.
          The following Table 2 presents the total number of active employees of
        FIRE used in the projections, assuming a level work force, and the cumu-
        lative  number  (i.e.,  net of withdrawals) of Tier 3 Members as of each
        June 30 from 2015 through 2019.
 
                                         Table 2
 
                   Surviving Actives from Census Data on June 30, 2015
                                           and
                        Cumulative Tier 3 FIRE Members from 2015
                                Used in the Projections*
        June 30           Tier 1 & 2        Tier 3       Total
        2015              9,397             1,383        10,780
        2016              8,827             1,953        10,780
        2017              8,335             2,445        10,780
        2018              7,864             2,916        10,780
        2019              7,398             3,382        10,780

        A. 10567                           14
 
          * Total active members included in the projections assume a level work
        force based on the June 30, 2015 (Lag) actuarial valuation census data.
          STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
        ary for, and independent of, the New York City Pension Funds and Retire-
        ment Systems. I am an Associate of the Society of Actuaries, a Fellow of
        the Conference of Consulting 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.
          FISCAL  NOTE  IDENTIFICATION:  This  estimate is intended for use only
        during the 2016 Legislative Session. It is Fiscal  Note  2016-33,  dated
        June 3, 2016 prepared by the Chief Actuary for the New York Fire Depart-
        ment Pension Fund.
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