Senate Bill S6282

                                 BILL NUMBER:  S6282

 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 :

To provide a cost-of-living adjustment for members of retirement
systems by increasing the base benefit amount for computation to
$25,000.

 SUMMARY OF PROVISIONS :

Section 1 amends § 78-a(c) of the Retirement and Social Security Law
to provide that beginning September 1, 2016, the cost of living
adjustment shall be computed on a base benefit amount not to exceed
$25,000 of the annual retirement allowance.

Section 2 amends § 378-a(c) of the Retirement and Social Security Law
to provide that beginning September 1, 2016, the cost of living
adjustment shall be computed on a base benefit amount not to exceed
$25,000 of the annual retirement allowance.

              

Section 3 amends § 532-a(c) of the Education Law to provide that
beginning September 1, 2016, the cost of living adjustment shall be
computed on a base benefit amount not to exceed $25,000 of the annual
retirement allowance.

Section 4 amends § 13-696(c) of the Administrative Code of the City of
New York to provide that provide that beginning September 1, 2016, the
cost of living adjustment shall be computed on a base benefit amount
not to exceed $25,000 of the annual retirement allowance.

Section 5 provides the effective date.

 EXISTING LAW :

Section 78-a of the Retirement and Social Security Law relates to the
cost-of-living adjustment for retirement plans applicable to members
of the New York State Employees' Retirement System generally.
Pursuant to this title, a cost-of-living adjustment is payable to all
pensioners who have attained age 62 and have been retired for five
years, all pensioners who have attained age 55 and have been retired
for ten years, all disability pensioners regardless of age who have
been retired for five years; and all recipients of an accidental death
benefit regardless of age who have been receiving such benefit for
five years.

Subdivision (c) provides the cost-of-living adjustment shall be
computed on a base benefit amount to exceed $18,000 of the annual
retirement allowance defined in subdivision (b) of this section.

Subdivision (b) provides the cost-of-living adjustment shall be a
percentage of the annual retirement allowance otherwise payable,
computed without optional modification, but including any benefit
derived from subdivision (f) of this section and any prior year's
cost-of-living adjustment derived from this section. Said percentage
is set forth is subdivision (d) of this section.

Subdivision (f) provides that all retired members who have retired
prior to 1997 and meet the eligibility criteria listed above, shall be
paid an adjusted benefit in monthly installments. The adjusted benefit
shall be equal to a percentage of the change in Consumer Price Index,
published by the United States Bureau of Labor Statistics, measured
from the year of retirement according to the following schedule:

Year of retirementÑPercentage
1968 through 1996Ñ50%
1966 and 1967Ñ55%
1965Ñ60%
1964Ñ65%
1936Ñ70%
1962Ñ80%
1961Ñ90%
Prior to 1961Ñ100%

The adjusted benefit shall be computed on a base benefit amount not to
exceed $18,000 of the retirement allowance otherwise payable, computed
without modification. Any benefit received pursuant to this
subdivision shall be in lieu of any benefit received pursuant to § 78
of the Retirement and Social Security Law.

Subdivision (d) provides that the percentage shall be determined
annually by reference to the Consumer Price Index, published by the
United States Bureau of Labor Statistics, for year applicable calendar
year. The percentage shall equal 50% of the annual inflation, as
determined from the increase in the Consumer Price Index in the one
year period ending on the March 31 prior to the cost-of-living
adjustment effecting on the ensuing September 1st. The percentage is
rounded up to the next higher one-tenth of one percent and shall not
exceed 3% not be less than 1%.

Section 378-a of the Retirement and Social Security Law relates to the
cost of living adjustment for retirement plans applicable to members
of the New York State Policemen's and Firemen's Retirement System
generally. Pursuant to this section, a cost-of-living adjustment shall
be payable to all pensioners who have attained age 62 and have been
retired for five years, all pensioners who have attained age 55 and
have been retired for ten years, and all disability pensioners
regardless of age who have been retired for five years.

Subdivision (c) currently provides, the cost-of-living adjustment
shall be computed on a base benefit amount to exceed $18,000 of the
annual retirement allowance defined in subdivision (b) of this
section.

Subdivision (b) provides the cost-of-living adjustment shall be a
percentage of the annual retirement allowance otherwise payable,
computed without optional modification, but including any benefit
derived from subdivision (1) of this section and any prior year's
cost-of-living adjustment derived from this section. Said percentage
is set forth is subdivision (d) of this section.

Subdivision (f) provides that all retired members who have retired
prior to 1997 and meet the eligibility criteria shall be paid an
adjusted benefit in monthly installments. The adjusted benefit shall
be equal to a percentage of the change in Consumer Price Index,
published by the United States Bureau of Labor Statistics, measured
from the year of retirement according to the following schedule:

Year of retirementÑPercentage
1968 through 1996Ñ50%
1966 and 1967Ñ55%
1965Ñ60%
1964Ñ65%
1936Ñ70%
1962Ñ80%
1961Ñ90%
Prior to 1961Ñ100%
The adjusted benefit shall be computed on a base benefit amount not to
exceed $18,000 of the retirement allowance otherwise payable, computed
without modification. Any benefit received pursuant to this
subdivision shall be in lieu of any benefit received pursuant to § 378
of the Retirement and Social Security Law.

Subdivision (d) provides that the percentage shall be determined
annually by reference to the Consumer Price Index, published by the
United States Bureau of Labor Statistics, for year applicable calendar
year. The percentage shall equal 50% of the annual inflation, as
determined from the increase in the Consumer Price Index in the one
year period ending on the March 31 prior to the cost-of-living
adjustment effecting on the ensuing September 1st. The percentage is
rounded up to the next higher one-tenth of one percent and shall not
exceed 3% not be less than 1%.

Section 532-a of the Education Law pertains to the cost-of-living
adjustment for retirement plans applicable to members of the State
Teachers' Retirement System for Public School Teachers. Pursuant to
this title, a cost-of-living adjustment is payable to all pensioners
who have attained age 62 and have been retired for five years, all
pensioners who have attained age 55 and have been retired for ten
years, all disability pensioners regardless of age who have been
retired for five years; and all recipients of an accidental death
benefit regardless of age who have been receiving such benefit for
five years.

Subdivision (c) provides the cost-of-living adjustment shall be
computed on a base benefit amount to exceed $18,000 of the annual
retirement allowance defined in subdivision (b) of this section.

Subdivision (b) provides the cost-of-living adjustment shall be a
percentage of the annual 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 § 511-a(1) or § 516(3)(c) of this article,
but including any benefit derived from subdivision (f) of this
section. The percentage is set for in subdivision (d) of this section.

Subdivision (f) provides that all retired members who have retired
prior to 1997 and meet the eligibility criteria shall be paid an
adjusted benefit in monthly installments. The adjusted benefit shall
be equal to a percentage of the change in Consumer Price Index,
published by the United States Bureau of Labor Statistics, measured
from the year of retirement according to the following schedule:

Year of retirementÑPercentage
1968 through 1996Ñ50%
1966 and 1967Ñ55%
1965Ñ60%
1964Ñ65%
1936Ñ70%
1962Ñ80%
1961Ñ90%
Prior to 1961Ñ100%

The adjusted benefit is computed on a base benefit amount not to
exceed $18,000 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 § 511-a(1) or § 516(3)(c) of this article.  Any
benefits received pursuant to § 532 of this Article, unless such
benefits are in excess of those provided by this section, in which
case such benefits shall be paid by the retirement system pursuant to
such provision.

Subdivision (d) provides that the percentage shall be determined
annually by reference to the Consumer Price Index, published by the
United States Bureau of Labor Statistics, for year applicable calendar
year. The percentage shall equal 50% of the annual inflation, as
determined from the increase in the Consumer Price Index in the one
year period ending on the March 31 prior to the cost-of-living
adjustment effecting on the ensuing September 1st. The percentage is
rounded up to the next higher one-tenth of one percent and shall not
exceed 3% not be less than 1%.

Section 511-a of the Education Law refers to a special service
retirement allowance.

Section 516 Education Law refers to the annuity savings fund,
including contributions and payments. Subdivision (3)(c) provides that
any member by written notice duly acknowledged and filed with the
retirement board before July 1, 1967 or within two years after he last
became a member, whichever is later, may elect to contribute to the
annuity savings fund in order to qualify for an increased pension for
total service in excess of 25 years.

Section 532 of the Education Law refers to the supplemental retirement
allowance. A supplemental retirement allowance shall be paid to
pensioners who have retired from the retirement system prior to the
calendar year 1994.

Section 13-696 of the Administrative Code of the City of New York
pertains to the cost-of-living adjustment for members of the New York
City Employees' Retirement System, the New York City Police Pension
fund, the New York City Fire Department Pension Fund, the New York
City Board of Education retirement system, and the Relief and Pension
Fund of the Department of Street Cleaning.

Subdivision (c) provides the cost-of-living adjustment shall be
computed on a base benefit amount to exceed $18,000 of the annual
retirement allowance defined in subdivision b of this section.

Subdivision (b) provides the cost-of-living adjustment shall be a
percentage of the annual retirement allowance otherwise payable,
computed without optional modification, but including any benefit
derived from subdivision (f) of this section and any prior year's
cost-of-living adjustment derived from this section. The percentage is
set for in subdivision (d) of this section.

Subdivision (f) provides that all retired members who have retired
prior to 1997 and meet the eligibility criteria shall be paid an
adjusted benefit in monthly installments. The adjusted benefit shall
be equal to a percentage of the change in Consumer Price Index,
published by the United States Bureau of Labor Statistics, measured
from the year of retirement according to the following schedule:

Year of retirementÑPercentage
1968 through 1996Ñ50%
1966 and 1967Ñ55%
1965Ñ60%
1964Ñ65%
1936Ñ70%
1962Ñ80%
1961Ñ90%
Prior to 1961Ñ100%

The adjusted benefit is computed on a base benefit amount not to
exceed $18,000 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 § 511-a(1) or § 516(3)(c) of this article.  Any
benefits received pursuant to § 532 of this Article, unless such
benefits are in excess of those provided by this section, in which
case such benefits shall be paid by the retirement system pursuant to
such provision.

Subdivision (d) provides that the percentage shall be determined
annually by reference to the Consumer Price Index, published by the
United States Bureau of Labor Statistics, for year applicable calendar
year. The percentage shall equal 50% of the annual inflation, as
determined from the increase in the Consumer Price Index in the one
year period ending on the March 31 prior to the cost-of-living
adjustment effecting on the ensuing September 1st. The percentage is
rounded up to the next higher one-tenth of one percent and shall not
exceed 3% not be less than 1%.

 JUSTIFICATION :

This legislation provides a cost-of-living adjustment for members of
the New York State Employees' Retirement System, New York State
Policemen's and Firemen's Retirement System, New York State
Policemen's and Firemen's Retirement System, the New York City
Employees' Retirement System, the New York City Police Pension fund,
the New York City Fire Department Pension Fund, the New York City
Board of Education retirement system, and the Relief and Pension Fund
of the Department of Street Cleaning, by increasing the base benefit
amount to $25,000 from the current annual retirement allowance of
$18,000.

As incomes of active employees continue to rise to meet cost-of-living
concerns, the caps placed on COLA covered benefits further erodes
retirement income of those affected retirees. In particular, as noted
above, medical costs including co-payments, premiums, and medication,
have been rising at a rate far in excess of the CPR. Recent federal
amendments to the Medicaid law, especially the prescription drug
coverage, are likely to cause a significant increase in retired public
employee health care costs. By increasing the annual retirement
allowance this bill will help ensure public retirees achieve a
dignified and secure retirement and allowing them to continue to
contribute more effectively to the long-term health of our economy.

 LEGISLATIVE HISTORY :

2009: S.1816 - Referred to Civil Service & pensions
2008: S.7862 Referred to Civil Service & Pensions/A.8373 - Referred to
Governmental Employees.
2007: S.7862 Referred to Civil Service & Pensions/A.8373 - Referred to
Governmental Employees.
2006: S.4451 - Referred to Civil Service and Pensions/A.7236 -
Referred to Governmental Employees.
2005: S.4451- Referred to Civil Service & Pensions A.7236 - Referred
to Governmental Employees.
2004:  A.10825 - Referred to Governmental Employees.

 FISCAL IMPLICATIONS :

 EFFECTIVE DATE :
This act shall take effect immediately.