Relates to certain lung disabilities incurred by members of the New York city transit authority in certain cases; provides that any lung condition resulting in partial disability or death to a member of the New York city transit authority, or its subsidiary corporation, where such member successfully passed a physical examination on entry into such service or subsequent thereto, which exam failed to reveal evidence of such condition, shall be presumed to have been incurred in the performance and discharge of duty.
STATE OF NEW YORK
________________________________________________________________________
6137--A
2019-2020 Regular Sessions
IN SENATE
May 16, 2019
___________
Introduced by Sen. GOUNARDES -- 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 administrative code of the city of New York, in
relation to certain lung disabilities incurred by members of the New
York city transit authority in certain cases
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The administrative code of the city of New York is amended
2 by adding a new section 13-168.1 to read as follows:
3 § 13-168.1 Transit authority members; presumption in certain diseases.
4 Notwithstanding any provision of this chapter or of any general, special
5 or local law to the contrary, and for the purposes of this chapter, any
6 condition of impairment of health caused by diseases of the lung,
7 resulting in total or partial disability or death to a member of the New
8 York city transit authority, or a member of its subsidiary corporation,
9 as defined in section twelve hundred three-a of the public authorities
10 law, where such member successfully passed a physical examination on
11 entry into such service or subsequent thereto, which examination failed
12 to reveal any evidence of such condition, shall be presumptive evidence
13 that it was incurred in the performance and discharge of duty.
14 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY OF BILL: This proposed legislation would amend the Administra-
tive Code of the City of New York (ACCNY) to add a new Section 13-168.1
to provide a statutory presumption to Tier 1 and Tier 2 members of the
New York City Employees' Retirement System (NYCERS) who are Transit
Authority employees, and who become physically incapacitated for
performance of duty due to lung disease.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03331-02-9
S. 6137--A 2
In determining whether disabling lung disease was caused by employment
for the Transit Authority, the diagnosis of lung disease, absent
evidence of such condition upon examination at hire, would be presump-
tive evidence that such disability was incurred in the performance and
discharge of duty.
Effective Date: Upon enactment.
FINANCIAL IMPACT - OVERVIEW: There is no data available to estimate
the number of members who might develop and become disabled by lung
disease, and potentially benefit from this proposed legislation. There-
fore, the estimated financial impact has been calculated on a per event
basis equal to the increase in the Present Value of Future Benefits
(PVFB) for an average affected member who is diagnosed with lung disease
as the result of the enactment of the proposed legislation and who would
benefit from the proposed legislation. In determining the increase in
the PVFB, it has been assumed that 100% of the members who would retire
with lung disease would have continued working and eventually retired
for service if the proposed legislation were not passed.
With respect to an individual member, the additional cost of this
proposed legislation varies greatly.
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 PVFB by an amount ranging
from $3,000 to $190,000 if one of the eight members who could benefit
from the proposed legislation develops a qualifying lung disease. The
average increase in PVFB for the eight members who could benefit from
the proposed legislation is approximately $60,000.
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.
As there is no data currently available to estimate the number of
members who might be diagnosed with disabling lung disease, the finan-
cial impact would be recognized at the time of event. Consequently,
changes in employer contributions have been estimated assuming that the
increase in the PVFB will be financed over a time period comparable to
that used for actuarial losses under the Entry Age Normal cost method.
Using this approach, the additional PVFB would be amortized over a
closed 15-year period (14 payments under the One-Year Lag Methodology)
using level dollar payments.
Based on the Actuary's actuarial assumptions and methods in effect as
of June 30, 2018, the enactment of this proposed legislation is esti-
mated to increase annual employer contributions by an amount ranging
from $400 to $22,500 if one of the eight members who could benefit from
the proposed legislation develops a qualifying lung disease. The average
increase in annual employer contributions for the eight members who
could benefit from the proposed legislation is approximately $6,800.
With respect to the timing, increases in employer contributions would
depend upon when members would retire due to lung disease but,generally,
increased employer contributions will first occur the second fiscal year
following approval of the accident disability retirement.
OTHERS COSTS: Not measured in this Fiscal Note are the following:
* The initial, additional administrative costs of NYCERS and other New
York City agencies to implement the proposed legislation.
* The impact of this proposed legislation on Other Postemployment
Benefit (OPEB) costs.
S. 6137--A 3
CENSUS DATA: The estimates presented herein are based on the census
data used in the Preliminary June 30, 2018 (Lag) actuarial valuation of
NYCERS to determine the Preliminary Fiscal Year 2020 employer contrib-
utions.
There are eight active Tier 1 and Tier 2 Transit Authority employees
who participate in NYCERS as of June 30, 2018 who could potentially
benefit from the proposed legislation. These eight active Tier 1 and
Tier 2 Transit Authority members had an average age of approximately
73.8 years, average service of approximately 44.3 years, and an average
salary of approximately $89,100. This group consisted of six Tier 1
members, and two Tier 2 members.
ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the PVFB and annual
employer contributions presented herein have been calculated based on
the actuarial assumptions and methods in effect for the June 30, 2018
(Lag) actuarial valuations used to determine the Preliminary Fiscal Year
2020 employer contributions of NYCERS.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the actuarial assumptions and methods used and are subject to
change based on the realization of potential investment, demographic,
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.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Retirement Systems and
Pension Funds. I am a Fellow of the Society of Actuaries, an Enrolled
Actuary under the Employee Retirement Income and Security Act of 1974, a
Member of the American Academy of Actuaries, and a Fellow of the Confer-
ence of Consulting Actuaries. 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 2019-32 dated June 7,
2019 was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for use only during the
2019 Legislative Session.