STATE OF NEW YORK ________________________________________________________________________ 7734--A 2023-2024 Regular Sessions IN ASSEMBLY June 6, 2023 ___________ Introduced by M. of A. REILLY -- read once and referred to the Committee on Governmental Employees -- recommitted to the Committee on Govern- mental Employees in accordance with Assembly Rule 3, sec. 2 -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee AN ACT to authorize Frank R. Smith to receive performance of duty disa- bility retirement benefits The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Notwithstanding any other provision of law, Frank R. Smith, 2 a retired member of the New York city police department, who joined the 3 New York city employees retirement system on June 30, 1992 and who 4 applied for accidental performance of duty disability retirement bene- 5 fits based upon illnesses suffered as a result of exposure to diseases 6 during the course of undercover duties performed beginning in August 7 2002, and who has had those benefits denied, shall be hereby awarded 8 such benefits retroactively from his August 12, 2009 service retirement. 9 § 2. The benefits and awards provided for under this act shall be paid 10 for, and shared equally by, all public retirement systems, of which 11 Frank R. Smith was a member. 12 § 3. This act shall take effect immediately. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY: This proposed legislation would allow Police officer Frank R. Smith who retired from the New York City Police Pension Fund (POLICE) with an Ordinary Disability Retirement to be reclassified as an Accident Disability Retirement. EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS by Fiscal Year for the first 25 years ($ in Millions) Year POLICE EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08767-04-4
A. 7734--A 2 2025 0 2026 1.4 2027 0 2028 0 2029 0 2030 0 2031 0 2032 0 2033 0 2034 0 2035 0 2036 0 2037 0 2038 0 2039 0 2040 0 2041 0 2042 0 2043 0 2044 0 2045 0 2046 0 2047 0 2048 0 2049 0 The entire increase in employer contributions will be allocated to New York City. EXPECTED INCREASE (DECREASE) IN ACTUARIAL LIABILITIES as of June 30, 2024 ($ in Millions) Present Value (PV) POLICE PV of Benefits: 1.2 PV of Employee Contributions: 0 PV of Employer Contributions: 1.2 Unfunded Accrued Liabilities: 1.2 AMORTIZATION OF UNFUNDED ACCRUED LIABILITY POLICE Number of Payments: 1 Fiscal Year of Last Payment: 2026 Amortization Payment: 1.4 M Since Mr. Smith is retired and collecting a pension, and therefore has no remaining working lifetime, the entire increase in Unfunded Accrued Liabilities would be recognized immediately. CENSUS DATA: The estimates presented herein are based on preliminary census data collected as of June 30, 2023. The census data for the current impacted population is summarized below. POLICE Receiving Members - Number Count: 1 - Average Age: 53.0
A. 7734--A 3 BACKGROUND: Mr. Smith retired with an Ordinary Disability Retirement from POLICE on August 12, 2009. He currently receives an annual pension of $68,150 per year payable under the maximum form of payment (i.e., payable to him as long as he is alive). If the proposed legislation is enacted, Mr. Smith's retirement allow- ance would be recalculated as an Accident Disability Retirement and his annual pension would increase to $113,397 per year. This increase would apply prospectively as well as retroactively, to Mr. Smith's original date of retirement. ASSUMPTIONS AND METHODS: The estimates presented herein have been calculated based on the Revised 2021 Actuarial Assumptions and Methods of the impacted retirement systems. For purposes of calculating the fiscal impact of the proposed legis- lation, it has been assumed that the increase in benefits for periods prior to June 30, 2024 would not be credited with interest. RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend highly on the actuarial assumptions, methods, and models used, demo- graphics of the impacted population, and other factors such as invest- ment, contribution, and other risks. If actual experience deviates from actuarial assumptions, the actual costs could differ from those presented herein. Quantifying these risks is beyond the scope of this Fiscal Note. This Fiscal Note is intended to measure pension-related impacts and does not include other potential costs (e.g., administrative and Other Postemployment Benefits). STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov- sky are members of the Society of Actuaries and the American Academy of Actuaries. We are members of NYCERS but do not believe it impairs our objectivity and we meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. To the best of our 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 2024-16 dated February 23, 2024 was prepared by the Chief Actuary for the New York City Retire- ment Systems and Pension Funds. This estimate is intended for use only during the 2024 Legislative Session.