Bill S7326-2013

Relates to the disability benefits of members of the New York City police pension fund

Relates to the disability benefits of members of the New York City police pension fund.

Details

Actions

  • Jun 20, 2014: COMMITTED TO RULES
  • Jun 3, 2014: ADVANCED TO THIRD READING
  • Jun 2, 2014: 2ND REPORT CAL.
  • May 29, 2014: 1ST REPORT CAL.1039
  • May 12, 2014: REFERRED TO CITIES

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Cities - May 29, 2014
Ayes (5): Lanza, Ball, Grisanti, Squadron, Breslin
Ayes W/R (1): DeFrancisco

Memo

BILL NUMBER:S7326

TITLE OF BILL: An act to amend the administrative code of the city of New York and the retirement and social security law, in relation to the disability benefits of members of the New York city police pension fund

PURPOSE: Provides equal disability benefits to all police officers in New York State.

SUMMARY OF PROVISIONS: Extends Tier 2 Disability benefits to certain police officers in Tier 3 of the retirement system within the city of New York.

JUSTIFICATION: In 2009 Governor Patterson vetoed a Tier 2 extension bill for all New York State Police and Fire pension members. Shortly thereafter most of the State Police and Fire unions negotiated with management and agreed to a Tier 5 benefit plan. The Mayor of New York City would not agree to the same benefits resulting in no new pension plan agreement covering New York City Police and Fire members. This inability to get a new pension plan resulted in New York City Police and Fire members defaulting into the original Tier 3 pension plan. This Plan grants very limited disability benefits, only 50% of pay which is reduced by 50% of a social security benefit. Both Tier 2, which covers approximately 75% of the current New York City Police force and Tier 5 which covers all the new police hires in the remainder of the State, receive 75% of pay with no social security offset. An example of the difference in these benefits may soon play out in the tragedy that occurred recently with a fire in Coney Island. The officer that remains alive is a Tier 3 member and if she were unable to work and forced to get disability benefits, we estimate those benefits at $22,000 a year while if she were a Tier 2 member we estimate her benefit to be about $39,000 a year. It is for police officers like these that we ask the legislature to approve this bill and grant to newly hired New York City Police officers the same disability benefits provided to Police officers throughout New York State.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: See the bill.

EFFECTIVE DATE: This act shall take effect on the sixtieth day after it shall have become law.


Text

STATE OF NEW YORK ________________________________________________________________________ 7326 IN SENATE May 12, 2014 ___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Cities AN ACT to amend the administrative code of the city of New York and the retirement and social security law, in relation to the disability benefits of members of the New York city police pension fund THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivisions a and b of section 13-254 of the administra- tive code of the city of New York, subdivision a as amended by chapter 438 of the laws of 1986, are amended to read as follows: a. Once each year the board may, and upon his or her application shall, require any disability pensioner, under the minimum age or period for service retirement elected by him or her, OR ANY DISABILITY PENSION- ER RETIRED PURSUANT TO SECTION FIVE HUNDRED SIX OR FIVE HUNDRED SEVEN OF THE RETIREMENT AND SOCIAL SECURITY LAW, AND WHO IS UNDER EARLY RETIRE- MENT AGE AS DEFINED IN SECTION FIVE HUNDRED ONE OF THE RETIREMENT AND SOCIAL SECURITY LAW FOR POLICE/FIRE MEMBERS to undergo medical examina- tion. Such examination shall be made at the place of residence of such beneficiary or other place mutually agreed upon. Upon the completion of such examination the medical board shall report and certify to the board whether such beneficiary is or is not totally or partially incapacitated physically or mentally and whether he or she is or is not engaged in or able to engage in a gainful occupation. If the board concurs in a report by the medical board that such beneficiary is able to engage in a gain- ful occupation, he or she shall certify the name of such beneficiary to the appropriate civil service commission, state or municipal, and such commission shall place his or her name as a preferred eligible on such appropriate lists of candidates as are prepared for appointment to posi- tions for which he or she is stated to be qualified. Should such benefi- ciary be engaged in a gainful occupation, or should he or she be offered city-service as a result of the placing of his or her name on a civil service list, such board shall reduce the amount of his or her disabili- ty pension and his or her pension-for-increased-take-home-pay, if any, to an amount which, when added to that then earned by him or her, or
earnable by him or her in city-service so offered him or her, shall not exceed the current maximum salary for the title next higher than that held by him or her when he or she was retired. Should the earning capac- ity of such beneficiary be further altered, such board may further alter his or her pension and his or her pension-for-increased-take-home-pay, if any, to an amount which shall not exceed the rate of pension and his or her pension-for-increased-take-home-pay, if any, upon which he or she was originally retired but which, subject to such limitation, shall equal, when added to that earnable by him or her, the current maximum salary for the title next higher than that held by him or her when he or she was retired. The provisions of this section shall be executed, any provision of the charter or the code to the contrary notwithstanding. b. Should any disability pensioner, under the minimum age or period for service retirement elected by him or her, OR ANY DISABILITY PENSION- ER RETIRED PURSUANT TO SECTION FIVE HUNDRED SIX OR FIVE HUNDRED SEVEN OF THE RETIREMENT AND SOCIAL SECURITY LAW, AND WHO IS UNDER EARLY RETIRE- MENT AGE AS DEFINED IN SECTION FIVE HUNDRED ONE OF THE RETIREMENT AND SOCIAL SECURITY LAW FOR POLICE/FIRE MEMBERS, refuse to submit to one medical examination in any year by a physician or physicians designated by the medical board, his or her pension and his or her pension-for-in- creased-take-home-pay, if any, may be discontinued until his or her withdrawal of such refusal. Should such refusal continue for one year, all his or her rights in and to such pension and his or her pension-for- increased-take-home-pay, if any, may be revoked by such board. S 2. Section 506 of the retirement and social security law is amended by adding a new subdivision e to read as follows: E. 1. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY GENERAL, SPECIAL OR LOCAL LAW, CHARTER, ADMINISTRATIVE CODE OR RULE OR REGULATION TO THE CONTRARY, SUBDIVISIONS A, B, C AND D OF THIS SECTION SHALL NOT APPLY TO MEMBERS OF THE NEW YORK CITY POLICE PENSION FUND WHO ARE SUBJECT TO THIS ARTICLE. A MEMBER OF THE NEW YORK CITY POLICE PENSION FUND WHO IS SUBJECT TO THIS ARTICLE SHALL INSTEAD BE ELIGIBLE FOR ORDINARY DISABILITY RETIREMENT PURSUANT TO SECTIONS 13-216, 13-251 AND 13-254 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, AND SHALL RECEIVE A RETIREMENT ALLOWANCE WHICH SHALL CONSIST OF: (I) AN ANNUITY, WHICH SHALL BE THE ACTUARIAL EQUIVALENT OF HIS OR HER ACCUMULATED CONTRIBUTIONS, IF ANY, AT THE TIME OF HIS OR HER RETIREMENT; (II) A PENSION WHICH IS THE ACTUARIAL EQUIVALENT OF THE RESERVE-FOR-INCREASED-TAKE-HOME-PAY TO WHICH HE OR SHE MAY THEN BE ENTI- TLED, IF ANY; AND (III) A PENSION, WHICH, TOGETHER WITH HIS OR HER ANNUITY AND THE PENSION-PROVIDING-FOR-INCREASED-TAKE-HOME-PAY, IF ANY, SHALL BE EQUAL TO A RETIREMENT ALLOWANCE EQUAL TO ONE-FORTIETH OF HIS OR HER FINAL AVERAGE SALARY MULTIPLIED BY THE NUMBER OF YEARS OF CITY-SERVICE CREDITED TO HIM OR HER, BUT NOT LESS THAN (1) ONE-HALF OF HIS OR HER FINAL AVERAGE SALA- RY, IF THE YEARS OF CITY-SERVICE CREDITED TO HIM OR HER ARE TEN OR MORE, OR (2) ONE-THIRD OF HIS OR HER FINAL AVERAGE SALARY, IF THE YEARS OF CITY-SERVICE CREDITED TO HIM OR HER ARE LESS THAN TEN. 2. THE PROVISIONS OF SUBDIVISIONS G, H AND I OF SECTION FIVE HUNDRED SEVEN OF THIS ARTICLE SHALL APPLY TO DISABILITY BENEFITS UNDER THIS SUBDIVISION. S 3. Clause 1 of subparagraph (a) of paragraph 2 of subdivision g of section 507 of the retirement and social security law, as amended by chapter 489 of the laws of 2008, is amended to read as follows: [(1)] Notwithstanding the provisions of this chapter or of any gener- al, special or local law, charter, administrative code or rule or regu-
lation to the contrary, if a member who participated in World Trade Center rescue, recovery or cleanup operations, as defined in section two of this chapter, and subsequently retired on a service retirement, an ordinary disability retirement, AN ACCIDENTAL DISABILITY RETIREMENT, A VESTED RETIREMENT or a performance of duty disability retirement and subsequent to such retirement is determined by the comptroller or appli- cable retirement system board of trustees to have a qualifying World Trade Center condition, as defined in section two of this chapter, upon such determination by the comptroller OR APPLICABLE RETIREMENT SYSTEM BOARD OF TRUSTEES it shall be presumed that such disability was incurred in the performance and discharge of duty as the natural and proximate result of an accident not caused by such member's own willful negli- gence, and that the member would have been physically or mentally inca- pacitated for the performance and discharge of duty of the position from which he or she retired had the condition been known and fully developed at the time of the member's retirement, unless the contrary is proven by competent evidence. S 4. Section 507 of the retirement and social security law is amended by adding a new subdivision j to read as follows: J. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY GENERAL, SPECIAL OR LOCAL LAW, CHARTER, ADMINISTRATIVE CODE OR RULE OR REGULATION TO THE CONTRARY, SUBDIVISIONS A, B, C, D, E AND F OF THIS SECTION SHALL NOT APPLY TO MEMBERS OF THE NEW YORK CITY POLICE PENSION FUND WHO ARE SUBJECT TO THIS ARTICLE. A MEMBER OF THE NEW YORK CITY POLICE PENSION FUND WHO IS SUBJECT TO THIS ARTICLE SHALL INSTEAD BE ELIGIBLE FOR ACCIDENTAL DISABILITY RETIREMENT PURSUANT TO SECTIONS 13-215, 13-252 AND 13-254 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, AND SHALL RECEIVE A RETIREMENT ALLOWANCE WHICH SHALL CONSIST OF: 1. AN ANNUITY, WHICH SHALL BE THE ACTUARIAL EQUIVALENT OF HIS OR HER ACCUMULATED CONTRIBUTIONS, IF ANY, AT THE TIME OF HIS OR HER RETIREMENT; 2. A PENSION WHICH IS THE ACTUARIAL EQUIVALENT OF THE RESERVE-FOR-IN- CREASED-TAKE-HOME-PAY TO WHICH HE OR SHE MAY THEN BE ENTITLED, IF ANY; AND 3. A PENSION, OF THREE-QUARTERS OF HIS OR HER FINAL AVERAGE SALARY, IN ADDITION TO THE ANNUITY AND PENSION PROVIDED FOR BY PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION. S 5. Section 510 of the retirement and social security law is amended by adding a new subdivision i to read as follows: I. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE OR THE ADMINIS- TRATIVE CODE OF THE CITY OF NEW YORK, THE ANNUAL ESCALATION PROVIDED IN THIS SECTION SHALL NOT APPLY TO THE ORDINARY OR ACCIDENTAL DISABILITY RETIREMENT BENEFIT OF MEMBERS OF THE NEW YORK CITY POLICE PENSION FUND WHO RETIRE PURSUANT TO SECTION FIVE HUNDRED SIX OR FIVE HUNDRED SEVEN OF THIS ARTICLE. THE ORDINARY OR ACCIDENTAL DISABILITY RETIREMENT BENEFIT OF MEMBERS OF THE NEW YORK CITY POLICE PENSION FUND WHO RETIRE PURSUANT TO SECTION FIVE HUNDRED SIX OR FIVE HUNDRED SEVEN OF THIS ARTICLE SHALL BE ADJUSTED FOR COST-OF-LIVING PURSUANT TO THE PROVISIONS OF SECTION 13-696 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK. S 6. Subdivision f of section 511 of the retirement and social securi- ty law, as amended by chapter 18 of the laws of 2012, is amended to read as follows: f. This section shall not apply to general members in the uniformed correction force of the New York city department of correction or to uniformed personnel in institutions under the jurisdiction of the department of corrections and community supervision and security hospi- tal treatment assistants, as those terms are defined in subdivision i of
section eighty-nine of this chapter, provided, however, that the provisions of this section shall apply to a New York city uniformed correction/sanitation revised plan member, AND THIS SECTION SHALL ALSO NOT APPLY TO MEMBERS OF THE NEW YORK CITY POLICE PENSION FUND WHO ARE SUBJECT TO THIS ARTICLE WHO RETIRE ON ORDINARY OR ACCIDENTAL DISABILITY RETIREMENT PURSUANT TO SECTION FIVE HUNDRED SIX OR FIVE HUNDRED SEVEN OF THIS ARTICLE. S 7. Section 512 of the retirement and social security law is amended by adding a new subdivision e to read as follows: E. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION A OF THIS SECTION, OR ANY OTHER GENERAL SPECIAL OR LOCAL LAW, WITH RESPECT TO MEMBERS OF THE NEW YORK CITY POLICE PENSION FUND WHO RETIRE PURSUANT TO SECTION FIVE HUNDRED SIX AND FIVE HUNDRED SEVEN OF THIS ARTICLE A MEMBER'S FINAL AVERAGE SALARY SHALL MEAN THE SALARY EARNED BY SUCH MEMBER DURING THE ONE-YEAR PERIOD IMMEDIATELY PRIOR TO RETIREMENT, EXCLUSIVE OF ANY FORM OF TERMINATION PAY (WHICH SHALL INCLUDE ANY COMPENSATION IN ANTICIPATION OF RETIREMENT) OR ANY LUMP SUM PAYMENT FOR DEFERRED COMPENSATION, SICK LEAVE, OR ACCUMULATED VACATION CREDIT, OR ANY OTHER PAYMENT FOR TIME NOT WORKED (OTHER THAN COMPENSATION RECEIVED WHILE ON SICK LEAVE OR AUTHOR- IZED LEAVE OF ABSENCE); PROVIDED, HOWEVER, IF THE SALARY OR WAGES EARNED DURING THE ONE-YEAR PERIOD IMMEDIATELY PRIOR TO RETIREMENT EXCEEDS THAT OF THE PREVIOUS ONE-YEAR PERIOD BY MORE THAN TWENTY PER CENTUM, THE AMOUNT IN EXCESS OF TWENTY PER CENTUM SHALL BE EXCLUDED FROM THE COMPU- TATION OF FINAL AVERAGE SALARY. IN DETERMINING FINAL AVERAGE SALARY, ANY MONTH OR MONTHS (NOT IN EXCESS OF THREE) WHICH WOULD OTHERWISE BE INCLUDED IN COMPUTING FINAL AVERAGE SALARY BUT DURING WHICH THE MEMBER WAS ON AUTHORIZED LEAVE OF ABSENCE WITHOUT PAY SHALL BE EXCLUDED FROM THE COMPUTATION OF FINAL AVERAGE SALARY AND THE MONTH OR AN EQUAL NUMBER OF MONTHS IMMEDIATELY PRECEDING SUCH PERIOD SHALL BE SUBSTITUTED IN LIEU THEREOF. S 8. This act shall take effect on the sixtieth day after it shall have become a law. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: BACKGROUND - DESIGN OF PROPOSED LEGISLATION In general, the OA believes that proposed legislation should: * Be technically accurate, * Be clear in its intent, * Be administrable, and * Meet desired policy objectives. While the OA cannot provide any legal analysis, the OA has done a review of the proposed legislation and has some concerns. These concerns that follow represent the best understanding of the Actuary and staff of the OA and should not be considered legal interpretations. All of these concerns and suggestions should be reviewed by Counsel. For purposes of this letter, all members of the New York City Police Pension Fund ("POLICE") subject to Article 14 of the RSSL will be referred to as "Tier III POLICE Members." Of those Tier III Police Members who have a date of membership prior to April 1, 2012, they will be referred to as an "Original Tier III POLICE Members." Of those Tier III POLICE Members who have a date of membership on or after April 1, 2012, they will be referred to as "Revised Tier III POLICE Members." CONCERNS WITH PROPOSED LEGISLATION WITH RESPECT TO ORDINARY DISABILITY RETIREMENT ("ODR") AND ACCIDENTAL DISABILITY RETIREMENT ("ADR") * Benefits Compared to Tier I and Tier II The proposed legislation, if enacted, would revise the ODR and ADR benefit formulas for Tier III POLICE Members.

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