NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8499
SPONSOR: Pheffer Amato TITLE OF BILL:
An act to amend the retirement and social security law, in relation to
the eligibility of New York city transit authority employees for
performance of duty disability retirement
PURPOSE OR GENERAL IDEA OF BILL:
Relates to extending the benefits of the variable supplements fund for
transit police members of the New York City employees' retirement
system.
SUMMARY OF PROVISIONS:
Amends paragraph c of subdivision 1 of section 13-191 of the administra-
tive code of the city of New York to provide for the payment of Transit
Police Officers' and Transit Police Superior Officers' Variable Supple-
ments Funds (VSF) benefits to former New York City Employees' Retirement
System (NYCERS) members who are retired for service from the New York
City Transit Police (TP) between October 1, 1968 and June 30, 1987
(Prior Retirees) with 20 or more years of service.
These benefits would be paid from the following VSFs: Transit Police
Officers' Variable Supplements Fund (TPOVSF), and Transit Police Superi-
or Officers' Variable Supplements Fund (TPSOVSF).
The amount of VSF benefits paid is currently $12,000 per Calendar Year.
These VSF benefits are payable on an annual basis around December 15th
to eligible former NYCERS members for their lifetimes. There are no
optional forms of payment. Upon the death of the NYCERS retiree, VSF
payments cease.
JUSTIFICATION:
Former members of the NYC Transit Police that retired from service after
June 30, 1987, presently receive a supplemental benefit from the Vari-
able Supplements Fund ("VSF"). The VSF was enacted into law because of a
fact finders award in 1970 and was granted to members of the NYC Police
and Fire pension funds who retired for service after October 1, 1968.
In the mid-1960s, members of the Transit Police were granted and given
pay and retirement benefit parity. However, the VSF was not bestowed
upon similarly situated members of the department until legislation was
enacted effectively after July 1, 1987. As a result, members were at
parties until unjustly removed on July 24, 1992, as beneficiaries. As a
matter of equity and fairness, the VSF should be granted to all members
of the Transit Police who retired from service after October 1, 1968.
PRIOR LEGISLATIVE HISTORY:
2024 Session - A.7075 referred to governmental employees
2022 Session - Amended and Recommit to Civil Service and Pensions
2020 Session - S8306 - referred to Civil Service and Pensions S.6823-A
by Senator Lanza in
2017-18 Session - referred to Civil Service and Pensions Committee
required home rule from the NYC Council, which was not provided.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
See updated fiscal note for 2025 in bill text.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8499
2025-2026 Regular Sessions
IN ASSEMBLY
May 20, 2025
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
the eligibility of New York city transit authority employees for
performance of duty disability retirement
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 607-b of the retirement and social security law is
2 amended by adding a new subdivision a-1 to read as follows:
3 a-1. Any member of the New York city employees' retirement system who
4 is employed by the New York city transit authority and who participated
5 in World Trade Center rescue, recovery or cleanup operations, as defined
6 in section two of this chapter, who, on or after September eleventh, two
7 thousand one, becomes physically or mentally incapacitated for the
8 performance of duties as the natural and proximate result of an injury
9 sustained in the performance or discharge of such member's duties as a
10 result of such participation in World Trade Center rescue, recovery or
11 cleanup operations shall be paid a performance of duty disability
12 retirement allowance equal to three-quarters of final average salary,
13 subject to section 13-176 of the administrative code of the city of New
14 York. Any member who has made application or who, after the effective
15 date of this subdivision, makes application for such performance of duty
16 pension shall be entitled to invoke the medical review procedure
17 provided for in subdivision e of section six hundred five of this arti-
18 cle, subject to the terms and conditions set forth in such subdivision.
19 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would grant New York City Transit
Authority (NYCTA) active and retired members of NYCERS who have incurred
a World Trade Center (WTC) Qualifying Condition, a performance of duty
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08329-02-5
A. 8499 2
disability retirement equivalent to 75% of the member's Final Average
Salary prospectively as of the effective date.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Thousands)
Future Incidents (Illustration)
Year Current WTC One Incident One Incident
Retirees Per Year
2026 14,100 23 23
2027 0 23 47
2028 0 23 71
2029 0 23 96
2030 0 23 122
2031 0 23 148
2032 0 23 176
2033 0 23 204
2034 0 23 233
2035 0 23 263
2036 0 23 294
2037 0 23 326
2038 0 23 358
2039 0 23 392
2040 0 0 404
2041 0 0 416
2042 0 0 428
2043 0 0 441
2044 0 0 454
2045 0 0 468
2046 0 0 482
2047 0 0 496
2048 0 0 511
2049 0 0 527
2050 0 0 543
Employer contribution impact beyond Fiscal Year 2050 is not shown.
The potential increases in employer contributions will be allocated to
the NYCTA.
PRESENT VALUE OF BENEFITS: The Present Value of Benefits is the
discounted expected value of benefits paid to current members if all
assumptions are met, including future service accrual and pay increases.
Future new hires are not included in this present value.
INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
as of June 30, 2024 ($ in Millions)
Present Value (PV) Current Per Future
WTC WTC
Retirees Disability
(1) PV of Employer Contributions: 12.8 0.2
(2) PV of Employee Contributions: 0.0(0.0)
Total PV of Benefits (1) + (2): 12.8 0.2
UNFUNDED ACCRUED LIABILITY (UAL): Actuarial Accrued Liabilities are
the portion of the Present Value of Benefits allocated to past service.
A. 8499 3
Changes in UAL attributable to future incidents were amortized as ongo-
ing gain/loss using level dollar payments. UAL attributable to inactive
members was recognized in the first year.
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
WTC Per WTC
Retirees Disability
Increase (Decrease) in UAL: 12.8 M 0.2 M
Number of Payments: 1 14
Amortization Payment: 14.1 M 0.02 M
CENSUS DATA: The number of members who will benefit in the future from
this fiscal note is unknown. The estimates presented herein are based on
preliminary census data collected as of June 30, 2024. The census data
for members who have been approved for WTC benefits and the population
used to develop the average costs (potentially impacted members who have
filed qualified WTC notices of participation) is summarized below.
NYCERS
Receiving Members (Current WTC)
- Number Count: 59
- Average Age: 65.2
Active Members (Potentially Eligible)
- Number Count: 224
- Average Age: 57.7
- Average Service: 26.2
- Average Salary: 113,900
Receiving Members (Potentially Eligible)
- Number Count: 1,005
- Average Age: 67.6
IMPACT ON MEMBER BENEFITS: Currently, a NYCTA member who incurs a WTC
Qualifying Condition, is eligible for a performance of duty disability
retirement, generally a lifetime payment equal to the greater of 1/3 of
Final Average Salary (FAS), 1/60th of FAS times service, or the service
retirement benefit, if eligible.
Under the proposed legislation, the performance of duty disability
benefit for a NYCTA member who incurs a WTC Qualifying Condition would
be equal to 75% of FAS, less any applicable Workers' Compensation bene-
fit.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement systems.
There are currently 59 members who have been approved for WTC disabil-
ity benefits. The cost for these members is recognized in the first-year
cost. The number of additional members and eligible retirees who will
benefit in the future from this fiscal note is unknown and included as
per-incident WTC disability costs. The cost of this proposed legislation
could vary greatly depending on the number of future members who benefit
and on their length of service, age, and salary history.
The estimated per-incident financial impact for disabled members has
been calculated assuming 50% would retire under an Accidental Disability
benefit, and 50% would continue working if the proposed legislation were
not passed.
The bill appears to grant eligible NYCTA members and retirees the
ability to utilize the presumptions for infectious diseases pursuant to
subsection b of Retirement and Social Security Law Section 607-b. Costs
A. 8499 4
associated with granting these presumptions have not been included in
this Fiscal Note.
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). This Fiscal Note does not reflect any chapter
laws that may have been enacted during the current legislative session.
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 2025-43 dated April 17,
2025 was prepared by the Chief Actuary for the New York City Retirement
Systems and Pension Funds and is intended for use only during the 2025
Legislative Session.
