Relates to providing a final average salary disability retirement benefit to certain participants in World Trade Center rescue, recovery, or cleanup operations

Summary of provisions

Sections 1 and 2 of the bill amend subdivision d of section 605 (Tier 4) and subdivisions h and i of section 507 (Tier 3) of the retirement and social security law to require that any member with an active membership who participated in World Trade Center rescue, recovery or cleanup operations, and who is determined to have incurred a qualifying condition, be paid a duty disability retirement allowance equal to three-quarters of final average salary. It requires that the condition is determined to have been incurred in the performance and discharge of that person's job duty, and is the natural and proximate result of an accident and not caused by that member's willful negligence.

Section 3 amends paragraph a of subdivision 36 of section 2 of the retirement and social security law to extend the deadline for filing the required written and sworn statement to September 11, 2016 for those eligible for disability retirement benefit provided by subdivision d of section 605 (Tier 4) and subdivisions h of section 507 (Tier 3).

Section 4 provides for this act to take effect immediately.

Justification

After the 9/11 attacks on the World Trade Center (WTC), numerous agency and municipal employees responded and were involved in the rescue, recovery and cleanup operations. During the course of their participation after the attacks, and throughout the years following, many responders fell ill with respiratory tract diseases, gastroesophageal tract diseases, and onset pulmonary, asbestos-related musculoskeletal diseases and cancers, ultimately becoming unable to work. In order to help those responders, the World Trade Center Disability Law was signed into law in 2005.

Under the World Trade Center Disability Law, certain public employees and retirees who were on duty and involved in a 9/11 related rescue, recovery or cleanup, and became disabled as a result, are eligible for a rebuttable presumption that his/her disability was the result of a work-related accident. This law allowed most of the uniformed first responders, such as police, fire, emergency response personnel, correction and sanitation to qualify for a three-fourths or 75% salary disability pension benefit. However, this law did not create a 75%

disability benefit for all public employees/retirees who met a rebuttable presumption, which meant that only those whose membership tier of the Retirement System provided a 75% accidental benefit could benefit from the enhanced benefits. Under this law, non-uniform municipal responders whose membership tier was not covered by 75% salary benefit were unable to obtain the enhanced 75% salary benefit even if they satisfied the rebuttable presumption.

For example, a Tier 4 non-uniform public employee who develops cancer as a result of his participation at the WTC site is not eligible for the 75% accidental retirement benefits under the existing WTC Disability Law. In order to right this wrong, this legislation expands those eligible to receive the WTC enhanced disability pension benefits to include all non-uniform municipal employee responders of 9/11 regardless of their tiers and positions.

Prior legislative history

None

Fiscal implications for state and local governments

"This bill would amend the benefits of members of public retirement systems who contract any form of disease or disability related to exposure to any elements in connection with the World Trade Center tragedy of September 11, 2001. The annual accidental disability benefit would be 75% of a member's final average salary less workers compensation, regardless of a member's plan coverage. Currently, eligible members receive the accidental disability benefit specified in the plan under which they are covered. This improved benefit would be payable to current members who may file for this benefit in the future, or current retirees (or their beneficiaries) who are already receiving World Trade Center related retirement benefits.

"if this bill is enacted, it would lead to more disabilities being classified as "in performance of duty" or "accidental". For the disabilities so classified due to this bill, the cost would depend on the age, service, salary and plan of the affected member or retiree, as well as whether such person would have otherwise been eligible for, or has been receiving an ordinary disability, a performance of duty disability or a service retirement. For those who contract such disease prior to retirement, it is estimated that there could be per person one-time costs of as much as four (4) times salary. For those who contract such disease subsequent to a service retirement, it is estimated that there would be an average per person cost of approximately 150% of final average salary. For those who contract such disease subsequent to an ordinary disability retirement, it is estimated that there would be an average per person cost of approximately four (4) times final average salary.

"For the 38 retirees known to be affected at this time, there would be a one-time cost of $7.96 million, assuming a payment date of March 1, 2016.

"Pursuant to Section 25 of the Retirement and Social Security Law, the increased cost would be borne entirely by the State of New York and would require an itemized appropriation sufficient to pay the cost of

the provision. A precise cost for future years can't be determined at this time. Every year a cost will be determined (and billed to the state) based on those benefiting from this provision.

"Summary of relevant resources:

"The membership data used in measuring the impact of the proposed change was the same as that used in the March 31, 2014 actuarial valuation. Distributions and other statistics can be found in the 2014 Report of the Actuary and the 2014 Comprehensive Annual Financial Report.

"The actuarial assumptions and methods used are described in the 2010, 2011, 2012, 2013 and 2014 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, 2014 New York State and Local Retirement System Financial Statements and Supplementary Information.

"I am a member of the American Academy of Actuaries and meet the Qualification Standards to render the actuarial opinion contained herein.

"This estimate, dated May 21, 2015, and intended for use only during the 2015 Legislative Session, is Fiscal Note No. 2015-71, prepared by the Actuary for the New York State and Local Employees' Retirement System."

Effective date

This act shall take effect immediately.