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S07831 Summary:

BILL NOS07831A
 
SAME ASSAME AS A07971-B
 
SPONSORSCARCELLA-SPANTON
 
COSPNSR
 
MLTSPNSR
 
Amd 605 & 507, R & SS L
 
Allows for participants in World Trade Center rescue, recovery, or cleanup operations who were not members of a New York state retirement system at the time of such participation but who are now currently active members in such retirement systems to be eligible for disability benefits.
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S07831 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7831--A
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                       May 9, 2025
                                       ___________
 
        Introduced  by Sen. SCARCELLA-SPANTON -- read twice and ordered printed,
          and when printed to be committed to the Committee on Civil Service and
          Pensions -- committee discharged, bill amended, ordered  reprinted  as
          amended and recommitted to said committee
 
        AN  ACT  to amend the retirement and social security law, in relation to
          making certain participants in World Trade Center rescue, recovery, or
          cleanup operations eligible for disability benefits
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Paragraph 4 of subdivision d of section 605 of the retire-
     2  ment and social security law, as added by chapter 252  of  the  laws  of
     3  2019, is amended to read as follows:
     4    4.  Notwithstanding any other law, rule or regulation to the contrary,
     5  any member who had an active membership in the New York state and  local
     6  employees'  retirement system or the New York state teachers' retirement
     7  system, when such member participated  in  World  Trade  Center  rescue,
     8  recovery,  or  cleanup  operations,  as such participation is defined in
     9  section two of this chapter, or any active  member  with  at  least  ten
    10  years of service credit who did not have an active membership in the New
    11  York  state and local employees' retirement system or the New York state
    12  teachers' retirement system at the time such individual participated  in
    13  such World Trade Center rescue, recovery, or cleanup operations, but who
    14  is  now  an  active member with a participating employer in the New York
    15  state and local employees' retirement  system  or  the  New  York  state
    16  teachers'  retirement  system, and who incurred a qualifying World Trade
    17  Center condition, as defined in section two of  this  chapter,  that  is
    18  determined  to  have  been  incurred in the performance and discharge of
    19  duty and is the natural and proximate result of an accident  not  caused
    20  by  such member's own willful negligence, shall be paid a performance of
    21  duty disability retirement allowance equal to  three-quarters  of  final
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07814-06-5

        S. 7831--A                          2
 
     1  average  salary.  The  payment  of  such pension shall be subject to the
     2  provisions of section sixty-four of this chapter.
     3    § 2. Subdivision h-1 of section 507 of the retirement and social secu-
     4  rity  law,  as  added  by chapter 252 of the laws of 2019, is amended to
     5  read as follows:
     6    h-1. Notwithstanding any other law, rule or regulation to the  contra-
     7  ry,  any  member  who had an active membership in the New York state and
     8  local employees' retirement system  or  the  New  York  state  teachers'
     9  retirement  system,  when such member participated in World Trade Center
    10  rescue, recovery,  or  cleanup  operations,  as  such  participation  is
    11  defined  in  section  two  of this chapter, or any active member with at
    12  least ten years of service credit who did not have an active  membership
    13  in  the New York state and local employees' retirement system or the New
    14  York state teachers' retirement  system  at  the  time  such  individual
    15  participated  in  such  World  Trade Center rescue, recovery, or cleanup
    16  operations, but who is now an active member with a participating employ-
    17  er in the New York state and local employees' retirement system  or  the
    18  New  York state teachers' retirement system, and who incurred a qualify-
    19  ing World Trade Center condition, as defined  in  section  two  of  this
    20  chapter, that is determined to have been incurred in the performance and
    21  discharge of duty and is the natural and proximate result of an accident
    22  not  caused  by  such  member's  own willful negligence, shall be paid a
    23  performance of duty disability retirement allowance equal to three-quar-
    24  ters of final average salary. The  payment  of  such  pension  shall  be
    25  subject to the provisions of section sixty-four of this chapter.
    26    § 3. None of the provisions of this act shall be subject to section 25
    27  of the retirement and social security law.
    28    § 4. This act shall take effect immediately.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill would amend the benefits of certain members of the New York
        State and Local Employees' Retirement System (NYSLERS)  subject  to  the
        provisions  of  Article  14  or 15 of the Retirement and Social Security
        Law, who contract any form of disease or disability related to  exposure
        to  any elements in connection with the World Trade Center (WTC) rescue,
        recovery or cleanup operations, and who were not members  of  any  state
        public  retirement  system at the time of participation in the WTC oper-
        ations. The annual accidental disability benefit would be 75%  of  final
        average  salary  (FAS),  less  workers' compensation, regardless of plan
        coverage. Currently, eligible members receive the accidental  disability
        benefit  specified  under  their  plan, which for most Article 14 and 15
        members is 33.3% of FAS. This improved benefit would be payable only  to
        current  members  with  at least ten years of credited service.  Current
        retirees and their beneficiaries would not be affected.
          Pursuant to Section 25 of the Retirement and Social Security Law,  the
        increased  costs  would  be  borne entirely by the State of New York and
        would require an itemized appropriation sufficient to pay  the  cost  of
        the provision.
          Insofar  as  this  bill affects NYSLERS, the cost will depend upon the
        applicant's age, service, salary, plan, and any benefit  type  otherwise
        payable, but is expected to be 4 times FAS per applicant.
          Approximately  60  active  NYSLERS  members, with a combined salary of
        approximately $5.1 million as of March 31, 2024, have filed an  Applica-
        tion  for WTC Notice and been rejected on the grounds that they were not
        members at the time of their participation in certain WTC rescue, recov-
        ery or cleanup operations. If all these members benefit, the cost  would

        S. 7831--A                          3

        be  approximately  $20.4  million. However, the actual number of members
        who could be affected by this legislation cannot readily be determined.
          Summary of relevant resources:
          Membership  data as of March 31, 2024 was used in measuring the impact
        of the proposed change, the same data used in the April 1, 2024 actuari-
        al valuation. Distributions and other statistics can  be  found  in  the
        2024  Report  of the Actuary and the 2024 Annual Comprehensive Financial
        Report.  The actuarial assumptions and methods used are described in the
        2024 Annual Report to the Comptroller on Actuarial Assumptions, and  the
        Codes,  Rules  and  Regulations  of  the  State  of  New York: Audit and
        Control. The Market Assets and GASB Disclosures are found in  the  March
        31, 2024 New York State and Local Retirement System Financial Statements
        and Supplementary Information.
          This  fiscal note does not constitute a legal opinion on the viability
        of the proposed change nor is it intended to serve as a  substitute  for
        the professional judgment of an attorney.
          This  estimate, dated March 27, 2025, and intended for use only during
        the 2025 Legislative Session, is Fiscal Note No. 2025-55. As Chief Actu-
        ary of the New York State and Local Retirement System, I, Aaron Schottin
        Young, hereby certify that this analysis complies with applicable  Actu-
        arial  Standards of Practice as well as the Code of Professional Conduct
        and Qualification Standards for Actuaries Issuing Statements of Actuari-
        al Opinion of the American Academy of Actuaries, of which I am a member.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This bill would amend Section 605 of the Retirement and Social Securi-
        ty Law to allow an active member of the New York State Teachers' Retire-
        ment System (NYSTRS) with 10 or more years of service credit who did not
        have an active membership in NYSTRS or the  New  York  State  and  Local
        Retirement  System (NYSLRS) at the time they participated in World Trade
        Center rescue, recovery, or cleanup operations, and who incurred a qual-
        ifying World Trade center condition, to be paid a  performance  of  duty
        disability  retirement  benefit equal to three-quarters of final average
        salary for life. Currently, a member must have been an active member  of
        NYSTRS  or  NYSLRS  at  the  time of participation in World Trade Center
        rescue, recovery, or cleanup operations to be eligible for this benefit.
          The average cost  per  individual  member  impacted  is  estimated  as
        follows:
 
                  Member Age          Performance of Duty Disability
                  30                  $330,000 (5.4 times salary)
                  40                  $410,000 (5.0 times salary)
                  50                  $470,000 (4.5 times salary)
 
          The  actual cost per member would depend on the member's age and sala-
        ry.  The costs above are determined based on  averages,  so  the  actual
        cost  for  a member could be higher or lower. It is estimated that there
        would be few members of NYSTRS eligible for this benefit.
          Member data is from the System's most recent actuarial valuation files
        as of June 30, 2024, consisting of data provided by the employers to the
        Retirement System. The most recent data distributions and statistics can
        be found in the System's Annual Report for fiscal year  ended  June  30,
        2024. System assets are as reported in the System's financial statements
        and  can  also be found in the System's Annual Report. Actuarial assump-
        tions and methods will be provided in the System's  Actuarial  Valuation
        Report as of June 30, 2024.

        S. 7831--A                          4
 
          The  source of this estimate is Fiscal Note 2025-23 dated May 20, 2025
        prepared by the Office of the Actuary of the New  York  State  Teachers'
        Retirement  System and is intended for use only during the 2025 Legisla-
        tive Session. I, Richard A. Young, am the Chief Actuary for the New York
        State Teachers' Retirement System. I am a member of the American Academy
        of  Actuaries  and  I  meet  the Qualification Standards of the American
        Academy of Actuaries to render the actuarial opinion contained herein.
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