65-2 #24 June 07, 2016

Mayor de Blasio Announces Disability Pension Agreements with Firefighters, Sanitation Workers and Correction Officers

NEW YORK – Mayor Bill de Blasio today announced his administration has reached agreements with unions representing firefighters, sanitation workers and correction officers regarding enhancements to the disability pension for Tier 6 employees. These agreements, which will provide three-quarters of a worker’s salary in the event of accidental disability through employee payroll contributions, will protect both employees and taxpayers.

“Protecting our workforce – while also protecting taxpayers – has been a pillar of this administration and one we are proud to continue today. With these agreements, we are confident that New York City’s bravest, strongest and boldest can go to work feeling secure that they have the support of the City behind them. Protection of our workers is a top priority and productive collaboration with our uniformed workers has once again led to strong results,” said Mayor Bill de Blasio.

“Today’s deal began with the UFA contract resolution last year. It will restore the disability protections that were lost when Governor David Paterson vetoed Tier II in 2009. New York City Firefighters risk their lives every day and need to know that they, as well as their families, will be protected if seriously injured in the line of duty. The UFA has always believed that every firefighter should never have to worry about who will take care of their family if they are seriously injured in the performance of duty. This bill will resolve that for over 2,000 current New York City Firefighters who don’t have disability protections and for all future firefighters,” said Steve Cassidy, President of the Uniformed Firefighters Association.

Firefighters: The City will support State legislation that would include an Accidental Disability Benefit of three-quarters of salary, as well as the following key provisions:

  • Existing presumptions under Tier 2 will be restored.
  • The less expensive Tier 2 Cost of Living Adjustment will be restored.
  • The Final Average Salary will be based on five years, and no single year can exceed the prior four years by more than 10 percent, as is the case under current law.
  • The social security offset will be eliminated.
  • Tier 6 Firefighters will pay a payroll contribution of 2 percent of salary for this enhanced benefit, which can rise as high as 3 percent of salary based on usage and other actuarial factors.
  • The City will share the cost with employees; the total cost to the City will be $6.1 million in FY2017, growing to $12.6 million in FY2021.

The final steps include a Home Rule to be passed by NY City Council on Thursday June 9th & then the Bill is sent to Albany to be signed into law by Governor Andrew Cuomo. Once signed, current Tier 3/6 UFA members will have 120 days to opt in.