Current Pension Topics

Current Pension Topics

By JOEL L. FRANK

With this, the last issue of "Current Pension Topics" for 2005, I thought it would be a good time to review some major pieces of legislation enacted during the year. The following summaries come directly from the New York City Employees' Retirement System Web site. You can download it at: http://www.nycers.org/(ggelz045scxtrk555c3flmb0)/legislation/Summary2005.asp x

Chapter 93 This law creates a presumptive eligibility for an accidental disability in connection with the World Trade Center tragedy of September 11, 2001. This law requires a member/pensioner to file a Notice of Intent to New York City Employees' Retirement System stating that due to his/her participation in the World Trade Center site (WTC Site) he/she may have developed a health condition or impairment. This Notice must be filed with NYCERS by June 13, 2007. If the member/pensioner answers yes to the following questions then he/she may be eligible for this presumption: (a) Did your job title require you to have a physical examination for entry into public service?

(b) Was your WTC Site participation during 9/11/01 and 9/12/02?

(c) Do you have a health condition or impairment that prevents you from doing your job?

The law was passed on June 14, 2005 and is deemed to have been in effect on Sept. 11, 2001.

Chapter 48 This law increases the special accidental death benefit by 3 percent or more for deaths that occurred in 2005 or earlier for Correction Officers, Housing and Transit Police, certain EMTs and TBTA members. The benefit is payable to the widow or widower or the children of the deceased under 18 years of age or under 23 if the child is a student.

Chapter 133 This law extends the statutory rate of interest used by the Actuary to credit interest on the Actuarial Interest Rate on employer contributions. The rate is 8 percent per year and is extended through fiscal year 2006. This law also extends the 8.25 percent per year rate for crediting interest on Tiers 1 & 2 members' contributions and Increased-Take-Home-Pay (ITHP) Reserves for fiscal year 2006.

Chapter 383 This law amends the Sanitation Heart Bill for deceased members so it is deemed to have been in full force and effect on and after Nov. 15, 2004. A deceased Sanitation member whose death was caused by a disease of the heart covered by the Sanitation Heart Bill shall have the benefit of the Heart Bill as of Nov. 15, 2004. The deceased member (in all tiers) must have been in active service on Nov. 15, 2004 and subsequently died.

Chapter 150 This law extends for one year the applicability of Section 42 of the Patriot Plan regarding the suspension of loan repayment obligations for members absent on military duty. This law does not change the context of Section 42 in any way.

Chapter 477 Allows NYCERS correction members to receive up to one year of service credit for each time such member is absent without pay while on an authorized child care leave. This law affects Tier 3 correction members only. Tiers 1 and 2 received this benefit in 2004.

Chapter 498 This law amends Administrative Code 13-143(b)(1), which permits certain service immediately preceding service in the police force to count toward retirement eligibility. This law adds service rendered as a peace officer, sheriff, deputy sheriff, marshal or district attorney investigator immediately preceding service in the police force as a type of service deemed to be service in the police force for benefit eligibility purposes.

Chapter 570 This law amends Administrative Code 13-188 regarding transferred contributors who were eligible to join the NYC Board of Education Retirement System (BERS) but chose to remain as NYCERS members. Chapter 570 states that anyone who is a transferred contributor of NYCERS who was eligible to transfer membership to BERS on or after Jan. 1, 1990 shall be eligible to transfer to BERS now provided that he/she applies to transfer within by Sept. 28, 2005.

Chapter 105 This law provides an "in service" death benefit to eligible survivors of members on military duty. This law grants accidental death benefits to the eligible survivors by deeming such death to have occurred in the performance of duty as the natural and proximate result of an accident. Generally, this law amends numerous sections of existing laws for all tiers by adding that solely for the purposes of determining eligibility for an accidental death benefit, a member shall be considered to have died as the natural and proximate result of an accident sustained in the performance of duty if such member died while on active duty, other than for training purposes, on or after June 14, 2005, provided that such member was on the payroll at the time he/she was ordered to active duty.

Chapter 511 This law permits retirees to repay, in full, at any time after retirement, the total outstanding loan balance at retirement. This is available for all tiers and all retirees. This law states that the monthly pension benefits paid after the retiree repays the loan shall not be reduced by the actuarial equivalent of the loan. Monthly pension benefits paid prior to the repayment of the loan will not be adjusted.

Mr. Frank is a fee-only Retirement Financial Planner. He can be reached by telephone at (732) 536-9472, by fax at (732) 536-7373, or via e-mail at rollover@optonline.net.