PTSD Presumption for Dispatchers

Section 1. The retirement and social security law is amended by adding a new section 605-f to read as follows:

§ 605-f. Disability retirement for New York city fire alarm dispatchers and supervising fire alarm dispatcher levels one and two. 1. A member employed as a New York city fire alarm dispatcher, a New York city supervising fire alarm dispatcher level one or a New York city supervising fire alarm dispatcher level two shall be entitled to disability retirement allowance, if, at the time application therefor is filed, such member is physically or mentally incapacitated for performance of duty as a result of contracting post-traumatic stress disorder while so employed and as a result of his or her employment.

2. Notwithstanding any provision of this chapter or of any general, special or local law to the contrary, any member who is a New York city fire alarm dispatcher, a New York city supervising fire alarm dispatcher level one or a New York city supervising fire alarm dispatcher level two who is diagnosed as suffering from post-traumatic stress disorder resulting in disability to such fire alarm dispatcher, presently employed, and who shall have sustained such disability while so employed, shall have such diagnosis be presumptive evidence that such disability was incurred in the performance and discharge of duty, unless the contrary be proven by competent evidence.

3. The annual retirement allowance payable shall be equal to the three-quarters of his or her final average salary, subject to section 13-176 of the administrative code of the city of New York.

§ 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.