Expand PTSD Retirement 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 certain dispatchers. 1. A member employed as a county 911 dispatcher, a county 911 dispatcher supervisor, 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 county 911 dispatcher, a county 911 dispatcher supervisor, 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

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD09485-03-0

S. 5904--A 2

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.

§ 2. This act shall take effect immediately.

FISCAL NOTE.--Pursuant to Legislative Law, Section 50:

SUMMARY OF BILL: This 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 in 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.

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 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 Present Value of Future Benefits (PVFB) for an aver-

age member who is diagnosed with PTSD as the result of the enactment of

the proposed legislation. In determining the increase in the PVFB, 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 - 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 approximately

$410,000, on average for each occurrence of PTSD.

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 the member.

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 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-

S. 5904--A 3

mated to increase annual employer contributions by approximately $48,000

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: 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 updated to reflect the change in demographics as of June 30,

2019.

The 217 Fire Alarm Dispatchers and Supervising Fire Alarm Dispatchers

who participate in NYCERS as of June 30, 2019 had an average age of

approximately 38.6 years, average service of approximately 10.4 years,

and an average salary of approximately $71,300. This group consisted of

140 Tier 4 active members and 77 Tier 6 active members.

As of June 30, 2018, there were 183 Fire Alarm Dispatchers and Super-

vising Fire Alarm Dispatchers with an average age of approximately 40.0

years, average service of approximately 11.5 years, and an average sala-

ry of approximately $74,200. This group consisted of 146 Tier 4 active

members and 37 Tier 6 active 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 realization of the actuarial assumptions used, as well as

certain demographic characteristics of NYCERS and other exogenous

factors such as investment, contribution, and other risks. If actual

experience deviates from actuarial 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.

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.

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 2020-10 dated March 2,

2020 was prepared by the Chief Actuary for the New York City Employees'

Retirement System. This estimate is intended for use only during the

2020 Legislative Session.