Fact Sheet: Mayor de Blasio Proposes Uniformed Disability Bill to Improve Status of Uniformed Workers Disabled on the Job

May 13, 2015

“When it comes to our uniformed workers, safety is paramount. These brave public servants put their lives on the line each day to protect this city – and today we are letting them know: we are there for you too. This bill will ensure every uniformed worker – especially those just starting out on the job – is protected by this city after a tragic injury.” – Mayor Bill de Blasio

Today, Mayor de Blasio proposed a change in the disability benefits for uniformed employees that will dramatically increase the support these City workers receive if they are disabled on the job. Uniformed staff in NYPD, FDNY, DOC and DSNY who are injured and unable to work as a result of their injuries will be affected. The bill proposes three essential changes to the current disability benefit that modify the disability laws put in place by New York State in 2009 and 2012. When implemented together, these changes will more fully protect uniformed public servants—especially those who have more recently joined City service—who are injured on the job and allow them and their families to receive the support they need in the years after their service ends.  

The City’s proposal will change the way the disability benefit calculations are made in three ways:  it will use the greater of the final average salary or the basic maximum salary as the basis for calculating benefits; it will remove the social security offset; and it will return to the previous formula for calculating cost of living adjustments.

The financial impact of the proposed changes have been estimated by City actuarial staff to be $47 million through FY 2019. This plan will require approval in Albany for passage.

Examples of the Impact of the City’s Proposal

• For a Firefighter hurt on the job after two years, total tax-free disability benefits would increase by 65 percent

• For a Police Officer seriously injured after five years of City work, total tax-free benefits in the first year would also rise by 65 percent

• In both cases, first year disability benefits would exceed their final average salary at the time of their injury

Background:

Prior to July 2009, police officers and firefighters, and prior to April 2012, sanitation workers and correction officers, received a tax-free accidental disability retirement benefit equal to 75 percent of final salary, in addition to any Social Security benefit, including Social Security Disability Insurance.

Following state changes, all of the City’s uniformed forces pensions now receive a tax-free accidental disability retirement benefit of 50 percent of pay based on a three or five-year average (Tiers 3 and 6). This is offset by one-half of any benefits they receive from Social Security.

The Mayor’s proposal would count a higher salary in the disability package and remove the Social Security offset. Additionally, the proposal will replace Tiers 3 and 6 COLA with Tier 2 COLA. Together these changes cost $47 million through FY 2019.