S T A T E O F N E W Y O R K
________________________________________________________________________
2821
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, ORTIZ, WEISENBERG, SCHROEDER, SPANO -- Multi-Sponsored by -- M.
of A. AUBRY, CHRISTENSEN, CLARK, JOHN, MAGEE, PERRY, PHEFFER,
J. RIVERA, N. RIVERA, SWEENEY -- read once and referred to the Commit-
tee 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,
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 AND EFFEC-
TIVE THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINE, SHALL NOT EXCEED
FIVE 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,
as determined from the increase in the consumer price index in the one
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05612-01-9
A. 2821 2
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 AND EFFEC-
TIVE THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINE, SHALL NOT EXCEED
FIVE 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,
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 AND EFFEC-
TIVE THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINE, SHALL NOT EXCEED
FIVE 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,
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 AND EFFEC-
TIVE THE FIRST DAY OF SEPTEMBER, TWO THOUSAND NINE, SHALL NOT EXCEED
FIVE 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 maximum percentage calculated
for the annual cost of living increase shall increase from three (3)
percent to five (5) percent.
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, additional employer
contributions would be required only when the annual inflation exceeds
6%. At such a time, the increase in COLA payments will be shared by all
employers and spread over the future working lifetimes of active
members.
This estimate, dated December 1, 2008 and intended for use only during
the 2009 Legislative Session, is Fiscal Note No. 2009-64, 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.