NY State Senate Bill 2009-S1809

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 25, 2010	print number 1809a
Jan 25, 2010	amend and recommit to civil service and pensions
Jan 06, 2010	referred to civil service and pensions
Feb 09, 2009	referred to civil service and pensions

Bill Amendments

Original

A (Active)

2009-S1809 - Details

See Assembly Version of this Bill:: A7121
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd

2009-S1809 - Summary

Provides cost-of-living adjustments; further provides that effective the first day of September, 2010, the cost-of-living percentage shall equal one hundred percent of the annual inflation.

2009-S1809 - Sponsor Memo

                                 BILL NUMBER:  S1809

 TITLE OF BILL :
An act to amend the retirement and social security law, the education
law and the administrative code of the city of New York, in relation
to providing cost-of-living adjustments


 PURPOSE :
This bill amends Chapter 125 of the Laws of 2000, a chapter which
provides public employee retirees with permanent partial
cost-of-living increases in New York State. This bill provides a
desirable amendment to Chapter 125 needed to protect public retirees
from continued erosion of their retirement income from inflation.
While chapter 125 began the effort to address pension erosion this
bill seeks to partially close that gap.

 SUMMARY OF SPECIFIC PROVISIONS :
Effective September 1, 2007, the following changes to section 78-a and
378-a of the Retirement and Social Security Law, Section 532-a of the
Education Law, and Section 13-196 of the Administrative Code of the
City of New York as added by chapter 125 of the Laws of 2000 are
proposed:  Subdivision d of said sections of law is amended by this
bill to increase the percentage of annual COLA increases from 50% of
the CPI to 100% of the CPI. The general cost-of-living of retirees has
been steadily increasing. In particular, medical costs including

co-payments, premiums, and medication, have been rising at a rate far
in excess of the CPI. Recent federal amendments to the Medicare Law,
especially the prescription drug coverage, will cause a significant
increase in retired public employee health care costs.

 JUSTIFICATION :
Significant strides were made by the enactment of the Chapter 125 of
the Laws of 2000. However, with eligibility to receive more than 50
percent of the CPI limited to those who retired before 1968, with 100
percent of CPI only available to those who retired prior to 1961.
Obviously we are talking about retirees of very advanced years and a
very small number of the total number of retirees eligible to receive
COLA under chapter 125.  This bill adds only to those who retired
prior to 1966, 38 years ago.  Members of the Retired Public Employees
Association, the Retired Teachers Association and the Alliance of
Public Retiree Associations of New York believe this bill will help
assure our oldest public retirees achieve a dignified and secure
retirement, allowing them to continue to contribute more effectively
to the long-term health of our economy.

 LEGISLATIVE HISTORY :
2008: A.7861 - Referred to Civil Service A.8376 - Referred to
Governmental Employees
2006: S.4457 - Referred to Civil Service & Pensions/A.7238 - Referred
to Governmental Employees.
2005: S.4457 - Referred to Civil Service & Pensions/A.7238 - Referred
to Governmental Employees.
2004: A.10827 -  Referred to Governmental Employees.

 FISCAL IMPLICATIONS :
Starting with a payment in September 2009 the cost-of-living
adjustment will be increased from fifty percent of the annual
inflation to one hundred percent of the annual inflation, not to
exceed an annual increase of 3%.  There would be an estimated first
year cost of approximately $300 million to the State of New York.
$410 million to participating employers in the New York State and
Local Employees' Retirement System and $50 million to the
participating employers in the New York State and Local Police and
Fire Retirement System.

 EFFECTIVE DATE :
Immediately.

2009-S1809 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1809

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 9, 2009
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions

AN ACT to amend the retirement and social security  law,  the  education
  law  and  the administrative code of the city of New York, in relation
  to providing cost-of-living adjustments

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Subdivision d of section 78-a of the retirement and social
security law, as added by chapter 125 of the laws of 2000, is amended to
read as follows:
  d. The percentage referred to in  this  section  shall  be  determined
annually  by reference to the consumer price index (all urban consumers,
CPI-U, U.S. city average, all  items,  1982-84=100),  published  by  the
United  States  bureau of labor statistics, for each applicable calendar
year. Said percentage shall equal fifty percent of the annual inflation,
AND EFFECTIVE THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINE SHALL  EQUAL
ONE  HUNDRED  PERCENT  OF  THE  ANNUAL INFLATION, as determined from the
increase in the consumer price index in the one year  period  ending  on
the  March thirty-first prior to the cost-of-living adjustment effective
on the ensuing September first. Said percentage shall then be rounded up
to the next higher one-tenth of one percent and shall not  exceed  three
percent nor be less than one percent.
  S 2. Subdivision d of section 378-a of the retirement and social secu-
rity  law,  as  added  by chapter 125 of the laws of 2000, is amended to
read as follows:
  d. The percentage referred to in  this  section  shall  be  determined
annually  by reference to the consumer price index (all urban consumers,
CPI-U, U.S. city average, all  items,  1982-84=100),  published  by  the
United  States  bureau of labor statistics, for each applicable calendar
year. Said percentage shall equal fifty percent of the annual inflation,
AND EFFECTIVE THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINE SHALL  EQUAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05613-03-9

S. 1809                             2

ONE  HUNDRED  PERCENT  OF  THE  ANNUAL INFLATION, as determined from the
increase in the consumer price index in the one year  period  ending  on
the  March thirty-first prior to the cost-of-living adjustment effective
on the ensuing September first. Said percentage shall then be rounded up
to  the  next higher one-tenth of one percent and shall not exceed three
percent nor be less than one percent.
  S 3. Subdivision d of section 532-a of the education law, as added  by
chapter 125 of the laws of 2000, is amended to read as follows:
  d.  The  percentage  referred  to  in this section shall be determined
annually by reference to the consumer price index (all urban  consumers,
CPI-U,  U.S.  city  average,  all  items, 1982-84=100), published by the
United States bureau of labor statistics, for each  applicable  calendar
year. Said percentage shall equal fifty percent of the annual inflation,
AND  EFFECTIVE THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINE SHALL EQUAL
ONE HUNDRED PERCENT OF THE ANNUAL  INFLATION,  as  determined  from  the
increase  in  the  consumer price index in the one year period ending on
the March thirty-first prior to the cost-of-living adjustment  effective
on the ensuing September first. Said percentage shall then be rounded up
to  the  next higher one-tenth of one percent and shall not exceed three
percent nor be less than one percent.
  S 4. Subdivision d of section 13-696 of the administrative code of the
city of New York, as added by chapter  125  of  the  laws  of  2000,  is
amended to read as follows:
  d.  The  percentage  referred  to  in this section shall be determined
annually by reference to the consumer price index (all urban  consumers,
CPI-U,  U.S.  city  average,  all  items, 1982-84=100), published by the
United States bureau of labor statistics, for each  applicable  calendar
year. Said percentage shall equal fifty percent of the annual inflation,
AND  EFFECTIVE THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINE SHALL EQUAL
ONE HUNDRED PERCENT OF THE ANNUAL  INFLATION,  as  determined  from  the
increase  in  the  consumer price index in the one year period ending on
the March thirty-first prior to the cost-of-living adjustment  effective
on the ensuing September first. Said percentage shall then be rounded up
to  the  next higher one-tenth of one percent and shall not exceed three
percent nor be less than one percent.
  S 5. This act shall take effect immediately.
  FISCAL NOTE.-- Pursuant to Legislative Law, Section 50:
  This bill would provide an increase in the  defined  benefit  cost-of-
living  adjustment (COLA) for New York public retirement systems. Start-
ing with a payment in September 2009 the cost-of-living adjustment  will
be  increased  from fifty percent of the annual inflation to one hundred
percent of the annual inflation, not to exceed an annual increase of 3%.
  Insofar as this bill affects the New York State and  Local  Employees'
Retirement  System  and  the  New  York  State and Local Police and Fire
Retirement System, if this bill were enacted there would be an estimated
first year cost of approximately $300 million to the State of New  York,
$410  million to participating employers in the New York State and Local
Employees' Retirement  System  and  $50  million  to  the  participating
employers  in  the  New  York State and Local Police and Fire Retirement
System.
  This estimate, dated December 1, 2008 and intended for use only during
the 2009 Legislative Session, is Fiscal Note No.  2009-63,  prepared  by
the  Actuary  for  the  New  York  State and Local Employees' Retirement
System and the New York State  and  Local  Police  and  Fire  Retirement
System.

2009-S1809A (ACTIVE) - Details

See Assembly Version of this Bill:: A7121
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd

2009-S1809A (ACTIVE) - Summary

Provides cost-of-living adjustments; further provides that effective the first day of September, 2010, the cost-of-living percentage shall equal one hundred percent of the annual inflation.

2009-S1809A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1809A

 TITLE OF BILL :
An act to amend the retirement and social security law, the education
law and the administrative code of the city of New York, in relation
to providing cost-of-living adjustments


 PURPOSE :
This bill amends Chapter 125 of the Laws of 2000, a chapter which
provides public employee retirees with permanent partial
cost-of-living increases in New York State. This bill provides a
desirable amendment to Chapter 125 needed to protect public retirees
from continued erosion of their retirement income from inflation.
While chapter 125 began the effort to address pension erosion this
bill seek s to partially close that gap.

 SUMMARY OF SPECIFIC PROVISIONS :
Effective September 1, 2007, the following changes to section 78-a and
378-a of the Retirement and Social Security Law, Section 532-a of the
Education Law, and Section 13-196 of the Administrative Code of the
City of New York as added by chapter 125 of the Laws of 2 000 are
proposed: Subdivision d of said sections of law is amended by this
bill to increase the percentage of annual COLA increases from 50% of
the CPI to 100% of the CPI. The general cost-of-living of retirees has
been steadily increasing. In particular, medical costs including

co-payments, premiums, and medication, have been rising at a rate far
in excess of the CPI. Recent federal amendments t o the Medicare Law,
especially the prescription drug coverage, will cause a significant
increase in retired public employee health care costs.

 JUSTIFICATION :
Significant strides were made by the enactment of the Chapter 125 of
the Laws of 2000.  However, with eligibility to receive more than 50
percent of the CPI limited to those who retired before 1968, with 100
percent of CPI only available to those who retired prior to 1961.
Obviously we are talking about retirees of very advanced years and a
very small number of the total number of retirees eligible to receive
COLA under chapter 125. This bill adds only to those who retired prior
to 1966, 38 years ago. Members of the Retired Public Employees
Association, the Retired Teachers Association and the Alliance of
Public Retiree Associations of New York believe this bill will help
assure our oldest public retirees achieve a dignified and secure
retirement, allowing them to continue to contribute more effectively
to the long-term health of our economy.

 LEGISLATIVE HISTORY :
2009: S.1809 - Referred to Civil Service/A.7121 - Referred to
Governmental Employees.
2008: S.7861 - Referred to Civil Service/A.8376 - Referred to
Governmental Employees.
2006: S.4457 - Referred to Civil Service & Pensions/A.7238 - Referred
to Governmental Employees.
2005: S.4457 - Referred to Civil Service & Pensions/A.7238 - Referred
to Governmental Employees.
2004: A.10827 - Referred to Governmental Employees.

 FISCAL IMPLICATIONS :
Starting with a payment in September 2010 the cost-of-living
adjustment will be increased from fifty percent of the annual
inflation to one hundred percent of the annual inflation, not to
exceed an annual increase of 3%. There would be an estimated first
year cost of approximately $310 million to the State of New York, $415
million to participating employers in the New York State and Local
Employees' Retirement System and $50 million to the participating

employers in the New York State and Local Police and Fire Retirement
System.

 EFFECTIVE DATE :
Immediately.

2009-S1809A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1809--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 9, 2009
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions
  -- recommitted to the Committee  on  Civil  Service  and  Pensions  in
  accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to  amend the retirement and social security law, the education
  law and the administrative code of the city of New York,  in  relation
  to providing cost-of-living adjustments

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision d of section 78-a of the retirement and  social
security law, as added by chapter 125 of the laws of 2000, is amended to
read as follows:
  d.  The  percentage  referred  to  in this section shall be determined
annually by reference to the consumer price index (all urban  consumers,
CPI-U,  U.S.  city  average,  all  items, 1982-84=100), published by the
United States bureau of labor statistics, for each  applicable  calendar
year. Said percentage shall equal fifty percent of the annual inflation,
AND  EFFECTIVE  THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TEN SHALL EQUAL
ONE HUNDRED PERCENT OF THE ANNUAL  INFLATION,  as  determined  from  the
increase  in  the  consumer price index in the one year period ending on
the March thirty-first prior to the cost-of-living adjustment  effective
on the ensuing September first. Said percentage shall then be rounded up
to  the  next higher one-tenth of one percent and shall not exceed three
percent nor be less than one percent.
  S 2. Subdivision d of section 378-a of the retirement and social secu-
rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
read as follows:
  d.  The  percentage  referred  to  in this section shall be determined
annually by reference to the consumer price index (all urban  consumers,
CPI-U,  U.S.  city  average,  all  items, 1982-84=100), published by the
United States bureau of labor statistics, for each  applicable  calendar
year. Said percentage shall equal fifty percent of the annual inflation,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05613-04-0

S. 1809--A                          2

AND  EFFECTIVE  THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TEN SHALL EQUAL
ONE HUNDRED PERCENT OF THE ANNUAL  INFLATION,  as  determined  from  the
increase  in  the  consumer price index in the one year period ending on
the  March thirty-first prior to the cost-of-living adjustment effective
on the ensuing September first. Said percentage shall then be rounded up
to the next higher one-tenth of one percent and shall not  exceed  three
percent nor be less than one percent.
  S  3. Subdivision d of section 532-a of the education law, as added by
chapter 125 of the laws of 2000, is amended to read as follows:
  d. The percentage referred to in  this  section  shall  be  determined
annually  by reference to the consumer price index (all urban consumers,
CPI-U, U.S. city average, all  items,  1982-84=100),  published  by  the
United  States  bureau of labor statistics, for each applicable calendar
year. Said percentage shall equal fifty percent of the annual inflation,
AND EFFECTIVE THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TEN  SHALL  EQUAL
ONE  HUNDRED  PERCENT  OF  THE  ANNUAL INFLATION, as determined from the
increase in the consumer price index in the one year  period  ending  on
the  March thirty-first prior to the cost-of-living adjustment effective
on the ensuing September first. Said percentage shall then be rounded up
to the next higher one-tenth of one percent and shall not  exceed  three
percent nor be less than one percent.
  S 4. Subdivision d of section 13-696 of the administrative code of the
city  of  New  York,  as  added  by  chapter 125 of the laws of 2000, is
amended to read as follows:
  d. The percentage referred to in  this  section  shall  be  determined
annually  by reference to the consumer price index (all urban consumers,
CPI-U, U.S. city average, all  items,  1982-84=100),  published  by  the
United  States  bureau of labor statistics, for each applicable calendar
year. Said percentage shall equal fifty percent of the annual inflation,
AND EFFECTIVE THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TEN  SHALL  EQUAL
ONE  HUNDRED  PERCENT  OF  THE  ANNUAL INFLATION, as determined from the
increase in the consumer price index in the one year  period  ending  on
the  March thirty-first prior to the cost-of-living adjustment effective
on the ensuing September first. Said percentage shall then be rounded up
to the next higher one-tenth of one percent and shall not  exceed  three
percent nor be less than one percent.
  S 5. This act shall take effect immediately.
  FISCAL  NOTE.--  This  bill  would  provide an increase in the defined
benefit cost-of-living adjustment (COLA) for New York public  retirement
systems.    Starting with a payment in September 2010 the cost of living
adjustment will be increased from fifty percent of the annual  inflation
to  one hundred percent of the annual inflation, not to exceed an annual
increase of 3%.
  Insofar as this bill affects the New York State and  Local  Employees'
Retirement  System  and  the  New  York  State and Local Police and Fire
Retirement System, if this bill were enacted there would be an estimated
first year cost of approximately $310 million to the State of New  York,
$415  million to participating employers in the New York State and Local
Employees' Retirement  System  and  $50  million  to  the  participating
employers  in  the  New  York State and Local Police and Fire Retirement
System.
  This estimate, dated December 1, 2009 and Intended for use only during
the 2010 Legislative Session, is Fiscal Note No.  2010-29,  prepared  by
the  Actuary  for  the  New  York  State and Local Employees' Retirement
System and the New York State  and  Local  Police  and  Fire  Retirement
System.

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Senate Bill S1809

Sponsored By

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Actions

Bill Amendments

2009-S1809 - Details

2009-S1809 - Summary

2009-S1809 - Sponsor Memo

2009-S1809 - Bill Text download pdf

2009-S1809A (ACTIVE) - Details

2009-S1809A (ACTIVE) - Summary

2009-S1809A (ACTIVE) - Sponsor Memo

2009-S1809A (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S1809

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Sponsored By

Andrew J. Lanza

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Actions

Bill Amendments

2009-S1809 - Details

2009-S1809 - Summary

2009-S1809 - Sponsor Memo

2009-S1809 - Bill Text download pdf

2009-S1809A (ACTIVE) - Details

2009-S1809A (ACTIVE) - Summary

2009-S1809A (ACTIVE) - Sponsor Memo

2009-S1809A (ACTIVE) - Bill Text download pdf

Comments