Bill Text: NY S07797 | 2017-2018 | General Assembly | Amended


Bill Title: Relates to participants in the World Trade Center rescue.

Spectrum: Slight Partisan Bill (Democrat 4-2)

Status: (Passed) 2018-09-07 - SIGNED CHAP.266 [S07797 Detail]

Download: New_York-2017-S07797-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         7797--A
                    IN SENATE
                                    February 26, 2018
                                       ___________
        Introduced  by  Sen.  GOLDEN -- 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 retirement and social security law and the workers'
          compensation law, in relation  to  participants  in  the  World  Trade
          Center rescue
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1.   Paragraph (a) of subdivision  36  of  section  2  of  the
     2  retirement  and  social  security  law, as amended by chapter 326 of the
     3  laws of 2016, is amended to read as follows:
     4    (a) "Qualifying World Trade Center condition" shall mean a  qualifying
     5  condition  or  impairment  of health resulting in disability to a member
     6  who participated in World Trade Center rescue, recovery or cleanup oper-
     7  ations for a qualifying  period,  as  those  terms  are  defined  below,
     8  provided  the  following  conditions  have been met: (i) such member, or
     9  eligible beneficiary in the case of the member's death, must have  filed
    10  a  written  and sworn statement with the member's retirement system on a
    11  form provided  by  such  system  indicating  the  underlying  dates  and
    12  locations  of employment not later than September eleventh, two thousand
    13  [eighteen] twenty-two, and (ii)  such  member  has  either  successfully
    14  passed  a physical examination for entry into public service, or author-
    15  ized release of all relevant medical records,  if  the  member  did  not
    16  undergo  a physical examination for entry into public service; and (iii)
    17  there is no evidence of the qualifying condition or impairment of health
    18  that formed the basis for the disability in  such  physical  examination
    19  for  entry into public service or in the relevant medical records, prior
    20  to September eleventh, two thousand  one  except  for  such  member,  or
    21  eligible  beneficiary  in  the  case  of  the member's death, of a local
    22  retirement system of a city with a population of  one  million  or  more
    23  that is covered by section 13-551 of the administrative code of the city
    24  of  New  York,  or  by  section  twenty-five hundred seventy-five of the
    25  education law and for such member who separated from service with vested
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14551-04-8

        S. 7797--A                          2
     1  rights, or eligible  beneficiary  of  such  member  who  separated  from
     2  service with vested rights in the case of the member's death, of a local
     3  retirement system of a city with a population of one million or more who
     4  are  covered by sections 13-168, 13-252.1 or 13-353.1 of the administra-
     5  tive code of the city of New York or sections five hundred seven-c,  six
     6  hundred five-b, six hundred five-c, or six hundred seven-b of this chap-
     7  ter.  The  deadline for filing a written and sworn statement required by
     8  subparagraph (i) of this paragraph  shall  be  September  eleventh,  two
     9  thousand  [eighteen] twenty-two for such member, or eligible beneficiary
    10  in the case of the member's death, of a local  retirement  system  of  a
    11  city with a population of one million or more that is covered by section
    12  13-551 of the administrative code of the city of New York, or by section
    13  twenty-five  hundred  seventy-five  of  the  education  law and for such
    14  member who separated from service with vested rights, or eligible  bene-
    15  ficiary  of such member who separated from service with vested rights in
    16  the case of the member's death, of a local retirement system of  a  city
    17  with  a  population  of  one million or more who are covered by sections
    18  13-168, 13-252.1 or 13-353.1 of the administrative code of the  city  of
    19  New  York  and  sections  five  hundred seven-c, six hundred five-b, six
    20  hundred five-c, or six hundred seven-b of this chapter. Every retirement
    21  system shall keep a copy of every written and sworn  statement  that  is
    22  presented  for  filing  not  later than September eleventh, two thousand
    23  [eighteen] twenty-two, including those that are rejected for  filing  as
    24  untimely.
    25    § 2. Section 162 of the workers' compensation law, as amended by chap-
    26  ter 326 of the laws of 2016, is amended to read as follows:
    27    §  162.  Registration  of  participation in World Trade Center rescue,
    28  recovery and clean-up operations. In order for the claim  of  a  partic-
    29  ipant  in World Trade Center rescue, recovery and clean-up operations to
    30  come within the application of this article, such participant must  file
    31  a  written  and  sworn statement with the board on a form promulgated by
    32  the chair indicating the dates and locations of such  participation  and
    33  the  name  of  such  participant's employer during the period of partic-
    34  ipation. Such statement must be filed not later than September eleventh,
    35  two thousand [eighteen] twenty-two.  The board shall transmit a copy  of
    36  such  statement  to the employer or carrier named therein. The filing of
    37  such a statement shall not be considered the filing of a claim for bene-
    38  fits under this chapter.
    39    § 3. Section 168 of the workers' compensation law is amended by adding
    40  a new subdivision 4 to read as follows:
    41    4. A claim by a participant in the World Trade Center rescue, recovery
    42  or cleanup operations whose disablement occurred between September elev-
    43  enth, two thousand fifteen, and September eleventh, two thousand  seven-
    44  teen,  shall  not be disallowed as barred by section eighteen or section
    45  twenty-eight of this chapter if such claim is filed on or before Septem-
    46  ber eleventh, two thousand twenty-two. Any such claim by  a  participant
    47  in  the  World Trade Center rescue, recovery or cleanup operations whose
    48  disablement occurred between September eleventh, two  thousand  fifteen,
    49  and  September  eleventh,  two thousand seventeen, and was disallowed by
    50  section eighteen or twenty-eight of this chapter shall  be  reconsidered
    51  by the board.
    52    §  4. Notwithstanding any other provision to the contrary, none of the
    53  provisions of this act shall be subject to section 25 of the  retirement
    54  and social security law.
    55    §  5.  This  act  shall take effect immediately and shall be deemed to
    56  have been in full force and effect on  and  after  September  11,  2001;

        S. 7797--A                          3
     1  provided,  however,  that  the amendments to sections 162 and 168 of the
     2  workers' compensation law made by sections two and three  of  this  act,
     3  respectively,  shall  apply  to all open and closed claims coming within
     4  its purview.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          This  bill  would amend chapter 93 of the Laws of 2005 and chapter 445
        of the Laws of 2006, which provided 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 (WTC) attack of
        September 11, 2001 to be presumptive evidence that such  disability,  or
        death  as  a result of such disability was the result of an accident and
        was sustained in the performance of duty. The  provisions  of  this  act
        will  not be subject to Section 25 of the Retirement and Social Security
        Law.
          Insofar as this bill would affect the New York State and Local Employ-
        ees' Retirement and the New York State and Local Police and Fire Retire-
        ment System, this bill would  extend  the  deadline  for  filing  notice
        regarding  the  eligibility for benefits for certain members who partic-
        ipated in the World Trade Center rescue, recovery or  cleanup  operation
        to September 11, 2022.
          If  this  bill  is  enacted,  it  would reclassify certain current and
        future retirement benefits. The cost of the revised benefit will  depend
        upon the applicant's age, service, salary, plan, and benefit type other-
        wise payable.
        Benefit        None           Ordinary       In Performance Service
        without                       Disability     of Duty
        enactment:                                   Disability
        Cost for WTC   9 times        5 times        2.5 times      2 times
        benefit:       salary         salary         salary         salary
          This  bill  would  also lead to more deaths being classified as "acci-
        dental". For each death classified as accidental due to this  bill,  the
        cost  would depend on the age, service, salary, plan, and status at time
        of death. It is estimated that the cost for each ERS and PFRS individual
        affected would average approximately 3.5 times final average salary  and
        8 times final average salary, respectively.
          These  cost  would  be shared by the State of New York and the partic-
        ipating employers in the ERS and PFRS.
          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, 2017 actuarial valu-
        ation.  Distributions and other statistics can  be  found  in  the  2017
        Report  of  the  Actuary  and  the  2017  Comprehensive Annual Financial
        Report.
          The actuarial assumptions and methods used are described in the  2015,
        2016,  and  2017  Annual  Report to the Comptroller on Actuarial Assump-
        tions, 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, 2017
        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 Quali-
        fication Standards to render the actuarial opinion contained herein.
          This estimate, dated February 8, 2018 and intended for use only during
        the 2018 Legislative Session, is Fiscal Note No.  2018-55,  prepared  by
        the Actuary for the New York State and Local Retirement System.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:

        S. 7797--A                          4
          This  bill  would  amend Subdivision 36 of Section 2 of the Retirement
        and Social Security Law to extend the deadline to September 11, 2022 for
        filing notice of having participated in the World Trade  Center  rescue,
        recover  or cleanup operations during the qualifying period. Members who
        become  disabled  or die as a result of a "qualifying World Trade Center
        condition" are assumed to have become disabled or died as a result of an
        accidental or on-the-job disability or death. This act shall take effect
        immediately and shall be deemed to have been in full force and effect on
        and after September 11, 2001.
          The annual cost to the employers of members  of  the  New  York  State
        Teachers'  Retirement  System is estimated to be negligible if this bill
        is enacted.
          Member data is from  the  System's  most  recent  actuarial  valuation
        files,  consisting  of  data provided by the employers to the Retirement
        System.  Data distributions and statistics can be found in the  System's
        Comprehensive  Annual  Financial  Report  (CAFR).  System  assets are as
        reported in the System's financial statements, and can also be found  in
        the CAFR. Actuarial assumptions and methods are provided in the System's
        Actuarial Valuation Report.
          The source of this estimate is Fiscal Note 2018-12 dated March 9, 2018
        prepared  by  the  Actuary  of  the  New York State Teachers' Retirement
        System and is intended for use only during the 2018 Legislative Session.
        I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
        Retirement  System.  I  am a member of the American Academy of Actuaries
        and I meet the Qualification Standards of the American Academy of  Actu-
        aries to render the actuarial opinion contained herein.
          FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
          SUMMARY  OF BILL: With respect to the New York City Retirement Systems
        and Pension Funds (NYCRS), the proposed legislation would amend  Retire-
        ment  and  Social  Security Law (RSSL) Section 2, to extend, for certain
        members who participated in the Rescue, Recovery or  Cleanup  operations
        related  to  the  World  Trade Center (WTC) attack on September 11, 2001
        (Covered Groups), the deadline for  filing  a  Notice  of  Participation
        under the WTC Disability Law.
          The   NYCRS  include:  New  York  City  Employees'  Retirement  System
        (NYCERS), New York City Teachers' Retirement System (NYCTRS),  New  York
        City  Board  of Education Retirement System (BERS), New York City Police
        Pension Fund (POLICE) and New York City Fire Pension Fund (FIRE).
          The proposed legislation would also amend provisions of  the  Workers'
        Compensation Law (WCL). However, because such provisions do not directly
        impact  the NYCRS, the financial impact of amendments to the WCL are not
        reflected in this fiscal note.
          None of the provisions of the proposed legislation would be subject to
        Retirement and Social Security Law  Section  25,  and  therefore,  State
        appropriation would not be required.
          Effective  Date  for  this  proposed  legislation: Upon enactment, and
        would, as it relates to the NYCERS, be deemed retroactive  to  September
        11, 2001.
          DEADLINES  UNDER EXISTING PROVISIONS: Under current law, as enacted by
        Chapter 326 of the Laws of 2016,  the  deadline  to  file  a  Notice  of
        Participation for Covered Groups is September 11, 2018.
          DEADLINES  UNDER  PROPOSED LEGISLATION: With respect to the NYCRS, the
        proposed legislation would extend the deadline for filing  a  Notice  of
        Participation  under  the  WTC  Disability  Law  for Covered Groups from
        September 11, 2018 to September 11, 2022.

        S. 7797--A                          5
          ADDITIONAL EMPLOYER CONTRIBUTIONS: The increase in  employer  contrib-
        utions  resulting  from  the  proposed  legislation  would depend on the
        number of additional members who timely file the required form, meet the
        requirements of the WTC Disability Law, and ultimately benefit from such
        Law.
          Most members eligible for the benefits provided under the WTC Disabil-
        ity  Law  have  already  filed the required form to register for partic-
        ipation.  Therefore, for the purpose of this Fiscal  Note  it  has  been
        assumed  that  only a minimal number of NYCRS members would benefit from
        the proposed legislation and that the increase in employer contributions
        would likely be de minimis.
          ACTUARIAL ASSUMPTIONS AND METHODS: The  additional  employer  contrib-
        utions presented herein have been calculated based on the same actuarial
        assumptions  and methods in effect for the June 30, 2016 (Lag) actuarial
        valuations used to determine the Preliminary Fiscal Year  2018  employer
        contributions  of  NYCRS.  Please note these assumptions and methods are
        subject to change as this valuation is not considered  final  until  the
        end of the Fiscal Year 2018.
          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 2018-07 dated March 9,
        2018, was prepared by the Chief Actuary for  New  York  City  Employees'
        Retirement  System,  the  New York City Teachers' Retirement System, the
        New York City Board of Education Retirement System, the  New  York  City
        Police Pension Fund, and the New York City Fire Pension Fund. This esti-
        mate is intended for use only during the 2018 Legislative Session.
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