Explanation of Economic Loss Calculations for Port Authority Fire and Police Victims
Revised October 17, 2002
The calculation of presumed economic loss for victims who were members of the New York
State and Local Police and Fire Retirement System (“Port Authority Fire or Police”) will use the
same general procedures and assumptions used to calculated presumed economic losses for death
claims involving NYPD or FDNY victims.1
Like the NYPD and FDNY victims, Port Authority Fire or Police victims under the Special
20-Year Retirement Plan would have been eligible to retire from Port Authority Fire or Police
employment with 20 years of service2 and collect an immediate pension equal to at least 50% of
last pay. According to Port Authority representatives, the average length of service for Port
Authority Fire or Police is 25 years. The presumed awards will therefore assume that after 25
years of creditable service3, the victim would have begun collecting a pension pursuant to the
terms of the Special 20-Year Retirement Plan, and at the same time continued to receive wage or
salary income elsewhere equivalent to the victim’s last projected Port Authority compensation
plus any supplemental outside income, if applicable, adjusted for annual increases, through the
individual’s expected remaining working years. The Port Authority Fire or Police pension is
assumed payable through the victim’s life expectancy.4
Consistent with all presumed economic loss calculations,
1. Income up to the IRS� 98th percentile of wage earners of $231,000 is considered;
2. Included are the value of fringe benefits, including medical insurance coverage, and
potential pension benefits related to post-Fire or Police employment estimated at 4% of
compensation;
3. Growth of income and benefits through the victim’s expected work-life incorporates an
annual inflationary or cost-of-living component, an annual real overall productivity or
scale adjustment in excess of inflation, and an annual real life-cycle or age-specific