Relates to disability retirement benefits for the presumption of post-traumatic stress disorder for New York city alarm dispatchers, supervising alarm dispatchers level one and supervising alarm dispatchers level two.
STATE OF NEW YORK
________________________________________________________________________
8361
IN SENATE
May 3, 2018
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the retirement and social security law, in relation to
disability retirement benefits for the presumption of post-traumatic
stress disorder for certain titles
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The retirement and social security law is amended by adding
2 a new section 605-f to read as follows:
3 § 605-f. Disability retirement for New York city fire alarm dispatch-
4 ers and supervising fire alarm dispatcher levels one and two. 1. A
5 member employed as a New York city fire alarm dispatcher, a New York
6 city supervising fire alarm dispatcher level one or a New York city
7 supervising fire alarm dispatcher level two shall be entitled to disa-
8 bility retirement allowance, if, at the time application therefor is
9 filed, such member is physically or mentally incapacitated for perform-
10 ance of duty as a result of contracting post-traumatic stress disorder
11 while so employed and as a result of his or her employment.
12 2. Notwithstanding any provision of this chapter or of any general,
13 special or local law to the contrary, any member who is a New York city
14 fire alarm dispatcher, a New York city supervising fire alarm dispatcher
15 level one or a New York city supervising fire alarm dispatcher level two
16 who is diagnosed as suffering from post-traumatic stress disorder
17 resulting in disability to such fire alarm dispatcher, presently
18 employed, and who shall have sustained such disability while so
19 employed, shall have such diagnosis be presumptive evidence that such
20 disability was incurred in the performance and discharge of duty, unless
21 the contrary be proven by competent evidence.
22 3. The annual retirement allowance payable shall be equal to the
23 three-quarters of his or her final average salary, subject to section
24 13-176 of the administrative code of the city of New York.
25 § 2. This act shall take effect immediately.
FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05676-02-8
S. 8361 2
SUMMARY OF BILL: The proposed legislation would amend the Retirement
and Social Security Law (RSSL) to add a new Section 605-f to provide a
rebuttable statutory presumption to Tier 4 and 6 members of the New York
City Employees' Retirement System (NYCERS) who are Fire Alarm Dispatch-
ers and Supervising Fire Alarm Dispatchers, and who become physically or
mentally incapacitated for performance of duty due to post-traumatic
stress disorder (PTSD).
In determining whether disabling PTSD was caused by employment as a
Dispatcher, the diagnosis of PTSD would be presumptive evidence that
such disability was incurred on the performance and discharge of duty,
unless the contrary is proven by competent evidence.
The amount of the annual retirement allowance payable in the event the
presumption is not rebutted will be 75% of the Dispatcher member's final
average salary.
FINANCIAL IMPACT - OVERVIEW: There is no data available to estimate
the number of members who might develop and become disabled by PTSD, and
potentially benefit from this proposed legislation. Therefore, the esti-
mated financial impact has been calculated on a per event basis equal to
the increase in the Actuarial Present Value (APV) of Benefits (APVB) for
an average member who is diagnosed with PTSD as the result of the enact-
ment of the proposed legislation. In determining the increase in the
APVB, it has been assumed that 50% of the members who would retire with
PTSD were those who would have retired under an Ordinary Disability
Retirement benefit and that the remaining 50% of members who would
retire with PTSD were those who would have continued working 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.
FINANCIAL IMPACT - ACTUARIAL PRESENT VALUES: Based on the census data
and assumptions herein, the enactment of this proposed legislation would
increase the APVB by approximately $370,000, on average for each occur-
rence of PTSD as of June 30, 2018.
FINANCIAL IMPACT - ADDITIONAL 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 Actuary's actuarial assumptions and methods in effect as
of June 30, 2017, the enactment of this proposed legislation is esti-
mated to increase annual employer contributions by approximately $44,000
for each Accident Disability Retirement due to PTSD. With respect to the
timing, increases in employer contributions would depend upon when
members would retire due to PTSD but, generally, increased employer
contributions will first occur the second fiscal year following approval
of the Accident Disability Retirement.
CENSUS DATA: As of June 30, 2017, 176 Fire Alarm Dispatchers and
Supervising Fire Alarm Dispatchers participate in NYCERS. This group
consisted of 140 NYCERS Tier 4 active members and 36 Tier 6 active
members who were included in the June 30, 2017 (Lag) actuarial valu-
ations of NYCERS to determine the Preliminary Fiscal Year 2019 employer
contributions. These 176 members had an average age of approximately
40.0 years, average service of approximately 11.2 years, and average
salary of approximately $71,100 as of June 30, 2017.
ACTUARIAL ASSUMPTIONS AND METHODS: The additional APV of benefits and
employer contributions presented herein have been estimated based on the
S. 8361 3
actuarial assumptions and methods in effect for the June 30, 2017 (Lag)
actuarial valuation used to determine the Preliminary Fiscal Year 2019
employer contributions of NYCERS. These assumptions and methods are
subject to change as this valuation is not considered final until the
end of Fiscal Year 2019.
As there is no data currently available to estimate the number of
members who might be diagnosed with disabling PTSD, 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 APVB 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 APVB would be amortized over a closed 15-year
period (14 payments under the One-Year Lag Methodology) using level
dollar payments.
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
(ERISA), a Member of the American Academy of Actuaries, and a Fellow of
the Conference of Consulting Actuaries. I meet the Qualification Stand-
ards of the American Academy of Actuaries to render the actuarial opin-
ion contained herein. To the best of my knowledge, the results contained
herein have been prepared in accordance with generally accepted actuari-
al principles and procedures and with the Actuarial Standards of Prac-
tice issued by the Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2018-23 dated May 2,
2018, was prepared by the Chief Actuary for the New York City Employees'
Retirement System. This estimate is intended for use only during the
2018 Legislative Session.