senate Bill S6787

2013-2014 Legislative Session

Relates to providing cost-of-living adjustments

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 11, 2014 referred to civil service and pensions

S6787 - Bill Details

Current Committee:
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

S6787 - Bill Texts

view summary

Provides cost-of-living adjustments, including an adjusted benefit in monthly installments that is equal to the percentage of the change in consumer price index according to the included schedule.

view sponsor memo
BILL NUMBER:S6787

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. The bill provides a desirable amend-
ment 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 further
close that gap.

SUMMARY OF PROVISIONS: Effective September 1, 2014, the following
changes to Sections 78-a and 378-a of the Retirement and Social Security
Law, Section 532-a of the Education Law, and Section 13-396 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 maximum percentage of the CPI for COLA benefits from not
more than 3% and not less than 1% of CPI to not more than 5% and not
less than 1% of CPI. It has been four years since the COLA bill was
enacted. The general cost-of-living for retirees has been steadily
increasing. In particular, medical costs including co-payments, premi-
ums, and medication, have risen at a rate far in excess of the CPI.
Federal amendments to the Medicare law, especially the prescription drug
coverage, has caused significant increases in retired public employee
health care costs.

JUSTIFICATION: Significant strides were made by the enactment of Chap-
ter 125 of the Laws of 2000. While the CPI has remained very modest
since the enactment of COLA, as noted above other costs have had a
significant impact on retiree security. For example, 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, are likely to cause a
significant increase in retired public employee health care costs.

This modest increase in the maximum percentage of the CPI for COLA bene-
fits will provide needed but modest protection for retirees in the event
the CPI exceeds 3%.

This bill will help assure public retirees achieve a dignified and
secure retirement, allowing them to continue to contribute more effec-
tively to the long-term health of our economy.

LEGISLATIVE HISTORY: 2007-08: A8558 - referred to Governmental employ-
ees 2005-06: A7237 - referred to Governmental employees 2004: A10828 -
Governmental employees 2003: A4146 - Governmental employees 2000: S8180
- enacted - Chapter 125 Laws of 2000.

FISCAL IMPLICATIONS: See fiscal notes submitted with and made a part of
this bill.

EFFECTIVE DATE: This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6787

                            I N  S E N A T E

                             March 11, 2014
                               ___________

Introduced  by  Sen.  GOLDEN -- 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 f 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:
  f. Commencing September first, two thousand, all retired  members  who
have  retired  prior  to the calendar year nineteen hundred ninety-seven
and who meet the eligibility criteria set forth in subdivision a of this
section shall be paid an adjusted benefit in monthly installments on the
basis provided for in this subdivision. Said adjusted benefit  shall  be
equal  to  a percentage of the change in 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, measured from the year
of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
according to the following schedule:

      Year of retirement                     Percentage
      1968 through 1996                      50%
      1966 and 1967                          55%
      1965                                   60%
      1964                                   65%
      1963                                   70%
      1962                                   80%
      1961                                   90%
      prior to 1961                          100%
Said  adjusted benefit shall be computed on a base benefit amount not to
exceed eighteen thousand dollars of the retirement  allowance  otherwise
payable,  computed  without  optional modification. Any benefit received

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14310-01-4

S. 6787                             2

pursuant to this subdivision shall be in lieu of  any  benefit  received
pursuant to section seventy-eight of this title.
  COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, ALL RETIRED MEMBERS
WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED NINETY-SEV-
EN  AND  WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVISION A OF
THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN  MONTHLY  INSTALLMENTS
ON  THE  BASIS  PROVIDED  FOR IN THIS SUBDIVISION. SAID ADJUSTED BENEFIT
SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE  IN  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, MEASURED FROM
THE   YEAR   OF   RETIREMENT  THROUGH  CALENDAR  YEAR  NINETEEN  HUNDRED
NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:

      YEAR OF RETIREMENT                     PERCENTAGE
      1973 THROUGH 1996                      50%
      1971 AND 1972                          55%
      1970                                   60%
      1969                                   65%
      1968                                   70%
      1967                                   80%
      1966                                   90%
      PRIOR TO 1966                          100%
SAID ADJUSTED BENEFIT COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN,
SHALL BE COMPUTED ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT ALLOWANCE
OTHERWISE PAYABLE, COMPUTED WITHOUT  OPTIONAL  MODIFICATION,  SET  FORTH
HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT TO THIS SUBDIVISION SHALL BE
IN  LIEU  OF  ANY  BENEFIT RECEIVED PURSUANT TO SECTION SEVENTY-EIGHT OF
THIS TITLE.
  S 2. Subdivision f 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:
  f.  Commencing  September first, two thousand, all retired members who
have retired prior to the calendar year  nineteen  hundred  ninety-seven
and who meet the eligibility criteria set forth in subdivision a of this
section shall be paid an adjusted benefit in monthly installments on the
basis  provided  for in this subdivision. Said adjusted benefit shall be
equal to a percentage of the change in 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, measured from the  year
of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
according to the following schedule:

      Year of retirement                     Percentage
      1968 through 1996                      50%
      1966 and 1967                          55%
      1965                                   60%
      1964                                   65%
      1963                                   70%
      1962                                   80%
      1961                                   90%
      prior to 1961                          100%
Said adjusted benefit shall be computed on a base benefit amount not  to
exceed  eighteen  thousand dollars of the retirement allowance otherwise
payable, computed without optional modification.  Any  benefit  received
pursuant  to  this  subdivision shall be in lieu of any benefit received
pursuant to section three hundred seventy-eight of this title.

S. 6787                             3

  COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, ALL RETIRED MEMBERS
WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED NINETY-SEV-
EN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVISION  A  OF
THIS  SECTION  SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY INSTALLMENTS
ON  THE  BASIS  PROVIDED  FOR IN THIS SUBDIVISION. SAID ADJUSTED BENEFIT
SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE  IN  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, MEASURED FROM
THE   YEAR   OF   RETIREMENT  THROUGH  CALENDAR  YEAR  NINETEEN  HUNDRED
NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
      YEAR OF RETIREMENT                     PERCENTAGE
      1973 THROUGH 1996                          50%
      1971 AND 1972                              55%
      1970                                       60%
      1969                                       65%
      1968                                       70%
      1967                                       80%
      1966                                       90%
      PRIOR TO 1966                             100%

SAID ADJUSTED BENEFIT COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN,
SHALL BE COMPUTED ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT ALLOWANCE
OTHERWISE PAYABLE, COMPUTED WITHOUT  OPTIONAL  MODIFICATION,  SET  FORTH
HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT TO THIS SUBDIVISION SHALL BE
IN LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION THREE HUNDRED SEVEN-
TY-EIGHT OF THIS TITLE.
  S  3. Subdivision f of section 532-a of the education law, as added by
chapter 125 of the laws of 2000, is amended to read as follows:
  f. Commencing September first, two thousand, all retired  members  who
have  retired  prior  to the calendar year nineteen hundred ninety-seven
and who meet the eligibility criteria set forth in subdivision a of this
section shall be paid an adjusted benefit in monthly installments on the
basis provided for in this subdivision. Said adjusted benefit  shall  be
equal  to  a percentage of the change in 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, measured from the year
of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
according to the following schedule:
      Year of retirement                     Percentage
      1968 through 1996                      50%
      1966 and 1967                          55%
      1965                                   60%
      1964                                   65%
      1963                                   70%
      1962                                   80%
      1961                                   90%
      prior to 1961                          100%
Said  adjusted benefit shall be computed on a base benefit amount not to
exceed eighteen thousand dollars of the retirement  allowance  otherwise
payable,  computed  without  optional modification excluding any annuity
derived from voluntary contributions made by members, except those  made
pursuant  to  elections  under  subdivision  one of section five hundred
eleven-a or paragraph c of subdivision three  of  section  five  hundred
sixteen of this article. Any benefits received pursuant to this subdivi-
sion  shall be in lieu of any benefits received pursuant to section five
hundred thirty-two of this article, unless such benefits are  in  excess

S. 6787                             4

of  those provided by this section, in which case such benefits shall be
paid by the retirement system pursuant to such provision.
  COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, ALL RETIRED MEMBERS
WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED NINETY-SEV-
EN  AND  WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVISION A OF
THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN  MONTHLY  INSTALLMENTS
ON  THE  BASIS  PROVIDED  FOR IN THIS SUBDIVISION. SAID ADJUSTED BENEFIT
SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE  IN  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, MEASURED FROM
THE   YEAR   OF   RETIREMENT  THROUGH  CALENDAR  YEAR  NINETEEN  HUNDRED
NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
      YEAR OF RETIREMENT                     PERCENTAGE
      1973 THROUGH 1996                          50%
      1971 AND 1972                              55%
      1970                                       60%
      1969                                       65%
      1968                                       70%
      1967                                       80%
      1966                                       90%
      PRIOR TO 1966                             100%

SAID ADJUSTED BENEFIT, COMMENCING SEPTEMBER FIRST,  TWO  THOUSAND  FOUR-
TEEN,  SHALL  BE  COMPUTED  ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT
ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET
FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT  TO  THIS  SUBDIVISION
SHALL  BE  IN  LIEU  OF  ANY  BENEFIT  RECEIVED PURSUANT TO SECTION FIVE
HUNDRED THIRTY-TWO OF THIS ARTICLE.
  S 4. Subdivision f 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:
  f.  Commencing  September first, two thousand, all retired members who
have retired prior to the calendar year  nineteen  hundred  ninety-seven
and who meet the eligibility criteria set forth in subdivision a of this
section shall be paid an adjusted benefit in monthly installments on the
basis  provided  for in this subdivision. Said adjusted benefit shall be
equal to a percentage of the change in 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, measured from the  year
of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
according to the following schedule:
      Year of retirement                     Percentage
      1968 through 1996                      50%
      1966 and 1967                          55%
      1965                                   60%
      1964                                   65%
      1963                                   70%
      1962                                   80%
      1961                                   90%
      prior to 1961                          100%
Said adjusted benefit shall be computed on a base benefit amount not  to
exceed  eighteen  thousand dollars of the annual fixed retirement allow-
ance otherwise payable,  computed  without  optional  modification.  Any
benefit  received  pursuant  to this subdivision shall be in lieu of any
benefit received pursuant to chapter three hundred ninety of the laws of

S. 6787                             5

nineteen hundred  ninety-eight,  and  any  preceding  provision  of  law
providing for supplementation.
  COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, ALL RETIRED MEMBERS
WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED NINETY-SEV-
EN  AND  WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVISION A OF
THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN  MONTHLY  INSTALLMENTS
ON  THE  BASIS  PROVIDED  FOR IN THIS SUBDIVISION. SAID ADJUSTED BENEFIT
SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE  IN  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, MEASURED FROM
THE   YEAR   OF   RETIREMENT  THROUGH  CALENDAR  YEAR  NINETEEN  HUNDRED
NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
      YEAR OF RETIREMENT                     PERCENTAGE
      1973 THROUGH 1996                      50%
      1971 AND 1972                          55%
      1970                                   60%
      1969                                   65%
      1968                                   70%
      1967                                   80%
      1966                                   90%
      PRIOR TO 1966                          100%
SAID ADJUSTED BENEFIT, COMMENCING SEPTEMBER FIRST,  TWO  THOUSAND  FOUR-
TEEN,  SHALL  BE  COMPUTED  ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT
ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET
FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT  TO  THIS  SUBDIVISION
SHALL  BE  IN LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION 13-695 OF
THIS ARTICLE.
  S 5. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.