NY State Senate Bill 2015-S6282

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to civil service and pensions

co-Sponsors

2015-S6282 (ACTIVE) - Details

See Assembly Version of this Bill:: A9496
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
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3306, A6045
2019-2020: S5835, A7413
2021-2022: A8226
2023-2024: A6015

2015-S6282 (ACTIVE) - Summary

Provides a cost-of-living adjustment for members of retirement systems.

2015-S6282 (ACTIVE) - Sponsor Memo

                                 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.

2015-S6282 (ACTIVE) - Bill Text download pdf

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

                                  6282

                            I N  S E N A T E

                               (PREFILED)

                             January 6, 2016
                               ___________

Introduced  by  Sen. RITCHIE -- 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 c 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:
  c. Said cost-of-living adjustment shall be computed on a base  benefit
amount  not to exceed eighteen thousand dollars of the annual retirement
allowance defined in subdivision b of this section.   EFFECTIVE  ON  THE
FIRST  DAY  OF  SEPTEMBER,  TWO  THOUSAND  SIXTEEN,  SAID COST-OF-LIVING
ADJUSTMENT SHALL BE COMPUTED ON A BASE  BENEFIT  AMOUNT  NOT  TO  EXCEED
TWENTY-FIVE  THOUSAND DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE DEFINED
IN SUBDIVISION B OF THIS SECTION.
  S 2. Subdivision c 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:
  c.  Said cost-of-living adjustment shall be computed on a base benefit
amount not to exceed eighteen thousand dollars of the annual  retirement
allowance  defined  in  subdivision b of this section.  EFFECTIVE ON THE
FIRST DAY  OF  SEPTEMBER,  TWO  THOUSAND  SIXTEEN,  SAID  COST-OF-LIVING
ADJUSTMENT  SHALL  BE  COMPUTED  ON  A BASE BENEFIT AMOUNT NOT TO EXCEED
TWENTY-FIVE THOUSAND DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE  DEFINED
IN SUBDIVISION B OF THIS SECTION.
  S  3. Subdivision c of section 532-a of the education law, as added by
chapter 125 of the laws of 2000, is amended to read as follows:
  c. Said cost-of-living adjustment shall be computed on a base  benefit
amount  not to exceed eighteen thousand dollars of the annual retirement
allowance defined in subdivision b of this section.   EFFECTIVE  ON  THE
FIRST  DAY  OF  SEPTEMBER,  TWO  THOUSAND  SIXTEEN,  SAID COST-OF-LIVING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD11017-02-5

S. 6282                             2

ADJUSTMENT SHALL BE COMPUTED ON A BASE  BENEFIT  AMOUNT  NOT  TO  EXCEED
TWENTY-FIVE  THOUSAND DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE DEFINED
IN SUBDIVISION B OF THIS SECTION.
  S 4. Subdivision c 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:
  c. Said cost-of-living adjustment shall be computed on a base  benefit
amount  not  to  exceed  eighteen  thousand  dollars of the annual fixed
retirement allowance defined in subdivision b of this section.    EFFEC-
TIVE  ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND SIXTEEN, SAID COST-OF-
LIVING ADJUSTMENT SHALL BE COMPUTED ON A  BASE  BENEFIT  AMOUNT  NOT  TO
EXCEED  TWENTY-FIVE  THOUSAND DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE
DEFINED IN SUBDIVISION B OF THIS SECTION.
  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 2016 the annual cost of living adjust-
ment will be computed on a base benefit amount not to exceed $25,000.
  Insofar as this bill affects the New York State and  Local  Employees'
Retirement  System,  pursuant to Section 25 of the Retirement and Social
Security Law, the increased costs would be borne entirely by  the  State
of  New  York  and would require an itemized appropriation sufficient to
pay the cost of the provision. If this bill were enacted,  the  increase
in the present value of benefits would be approximately $2.14 billion.
  Insofar  as  this bill affects the New York State and Local Police and
Fire Retirement System (PFRS), the increased costs would  be  shared  by
the  State  of  New York and the participating employers in the PFRS. If
this bill were enacted, the increase in the present  value  of  benefits
would be approximately $309 million. The estimated first year cost would
be approximately $6.73 million to the State of New York and approximate-
ly $30.3 million to the participating employers in the PFRS.
  Summary of relevant resources:
  The  membership  data  used  in  measuring  the impact of the proposed
change was the same as that used in the March 31, 2015  actuarial  valu-
ation.    Distributions  and  other  statistics can be found in the 2015
Report of the  Actuary  and  the  2015  Comprehensive  Annual  Financial
Report.
  The  actuarial  assumptions and methods used are described in the 2015
Annual Report to the Comptroller on Actuarial Assumptions, and the Codes
Rules and Regulations of the State of New York: Audit and Control.
  The Market Assets and GASB Disclosures are found in the March 31, 2015
New York State and Local  Retirement  System  Financial  Statements  and
Supplementary Information.
  I am a member of the American Academy of Actuaries and meet the Quali-
fication Standards to render the actuarial opinion contained herein.
  This estimate, dated December 4, 2015 and intended for use only during
the  2016  Legislative  Session, is Fiscal Note No. 2016-13, 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 S6282

Sponsored By

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

co-Sponsors

2015-S6282 (ACTIVE) - Details

2015-S6282 (ACTIVE) - Summary

2015-S6282 (ACTIVE) - Sponsor Memo

2015-S6282 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6282

Share this bill

Sponsored By

Patty Ritchie

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

co-Sponsors

Jesse Hamilton

David J. Valesky

2015-S6282 (ACTIVE) - Details

2015-S6282 (ACTIVE) - Summary

2015-S6282 (ACTIVE) - Sponsor Memo

2015-S6282 (ACTIVE) - Bill Text download pdf

Comments