S T A T E   O F   N E W   Y O R K
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                                  2784

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 21, 2009
                               ___________

Introduced by M. of A. ABBATE, BENEDETTO, BOYLAND, CAHILL, COLTON, McEN-
  ENY,  SCHROEDER  -- Multi-Sponsored by -- M. of A. AUBRY, CHRISTENSEN,
  CLARK, CUSICK, JOHN,  ORTIZ,  PERRY,  PHEFFER,  J. RIVERA,  N. RIVERA,
  SWEENEY,  WEINSTEIN,  WEISENBERG,  WRIGHT -- read once and referred to
  the Committee on Governmental Employees

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.
                                                           LBD05613-01-9

A. 2784                             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.