NY State Senate Bill 2017-S3306

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 28, 2018	print number 3306b
Feb 28, 2018	amend and recommit to civil service and pensions
Jan 03, 2018	referred to civil service and pensions
May 10, 2017	print number 3306a
May 10, 2017	amend and recommit to civil service and pensions
Jan 20, 2017	referred to civil service and pensions

2017-S3306 - Details

See Assembly Version of this Bill:: A6045
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:: 2015-2016: S6282, A9496
2019-2020: S5835, A7413
2021-2022: A8226
2023-2024: A6015

2017-S3306 - Summary

Provides a cost-of-living adjustment for members of retirement systems by increasing the base benefit amount for computation to $21,000.

2017-S3306 - Sponsor Memo

                                 BILL NUMBER:  S3306

 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, 2018, 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, 2018, 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, 2018, 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, 2018, 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 retirement                          Percentage

1968 through 1996                           50%
1966 and 1967                               55%
1965                                        60%
1964                                        65%
1936                                        70%
1962                                        80%
1961                                        90%
Prior to 1961                               100%


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 lst. 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 (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 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 retirement                                 Percentage

1968 through 1996                                  50%
1966 and 1967                                      55%
1965                                               60%
1964                                               65%
1936                                               70%
1962                                               80%
1961                                               90%
Prior to 1961                                      100%
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 retirement                           Percentage

1968 through 1996                            50%
1966 and 1967                                55%
1965                                         60%
1964                                         65%
1936                                         70%
1962                                         80%
1961                                         90%
Prior to 1961                                100%

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 Pt. 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 retirement                            Percentage

1968 through 1996                             50%
1966 and 1967                                 55%
1965                                          60%
1964                                          65%
1936                                          70%
1962                                          80%
1961                                          90%
Prior to 1961                                 100%

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 cove red 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 :

2015-2016: S.6282 Referred to Civil Service and Pensions/A.9496
Referred to Governmental Employees.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S3306 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3306
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 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  EIGHTEEN, 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.
   § 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  EIGHTEEN,  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.
   §  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06801-04-7

 S. 3306                             2
 
 allowance defined in subdivision b of this section.   EFFECTIVE  ON  THE
 FIRST  DAY  OF  SEPTEMBER,  TWO  THOUSAND  EIGHTEEN, 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.
   § 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 EIGHTEEN, 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.
   § 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 2018 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 provisions. If this bill were enacted, the increase
 in the present value of benefits would be approximately $2.2 billion.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  Systems (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 $313 million. The estimated first year cost would
 be approximately $7.25 million to the State of New York and approximate-
 ly $30.4 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, 2016 actuarial valu-
 ation.  Distributions and other statistics can  be  found  in  the  2016
 Report  of  the  Actuary  and  the  2016  Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2015
 and  2016 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, 2016
 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 January 19,  2017,  and  intended  for  use  only
 during  the  2017  Legislative  Session,  is  Fiscal  Note  No. 2017-35,
 prepared by the Actuary for the New  York  State  and  Local  Retirement
 System.

co-Sponsors

2017-S3306A - Details

See Assembly Version of this Bill:: A6045
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:: 2015-2016: S6282, A9496
2019-2020: S5835, A7413
2021-2022: A8226
2023-2024: A6015

2017-S3306A - Summary

Provides a cost-of-living adjustment for members of retirement systems by increasing the base benefit amount for computation to $21,000.

2017-S3306A - Sponsor Memo

                                 BILL NUMBER:  S3306A

 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
$21,000.

 SUMMARY OF PROVISIONS :

Section 1 amends § 78-a(c) of the Retirement and Social Security Law
to provide that beginning September 1, 2018, the cost of living
adjustment shall be computed on a base benefit amount not to exceed
$21,000 of the annual retirement allowance.

Section 2 amends § 378-a(c) of the Retirement and Social Security Law
to provide that beginning September 1, 2018, the cost of living
adjustment shall be computed on a base benefit amount not to exceed
$21,000 of the annual retirement allowance.

Section 3 amends § 532-a(c) of the Education Law to provide that
beginning September 1, 2018, the cost of living adjustment shall be

computed on a base benefit amount not to exceed $21,000 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, 2018, the
cost of living adjustment shall be computed on a base benefit amount
not to exceed $21,000 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 retirement              Percentage

                 1968 through 1996               50%
                 1966 and 1967                   55%
                 1965                            60%
                 1964                            65%
                 1936                            70%
                 1962                            80%
                 1961                            90%
                 Prior to 1961                   100%

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 (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 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 retirement       Percentage

                         1968 through 1996        50%
                         1966 and 1967            55%
                         1965                     60%
                         1964                     65%
                         1936                     70%
                         1962                     80%
                         1961                     90%
                         Prior to 1961            100%
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 l'. 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 retirement             Percentage

                      1968 through 1996              50%
                      1966 and 1967                  55%
                      1965                           60%
                      1964                           65%
                      1936                           70%
                      1962                           80%
                      1961                           90%
                      Prior to 1961                  100%

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 1". 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 retirement            Percentage
                        1968 through 1996             50%
                        1966 and 1967                 55%
                        1965                          60%
                        1964                          65%
                        1936                          70%
                        1962                          80%
                        1961                          90%
                        Prior to 1961                 100%


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 $21,000 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 cove red 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 :

2015-2016: S.6282 Referred to Civil Service and Pensions/A.9496
Referred to Governmental Employees.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S3306A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3306--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and recommitted to said committee
 
 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  EIGHTEEN,  SAID  COST-OF-LIVING
 ADJUSTMENT  SHALL  BE  COMPUTED  ON  A BASE BENEFIT AMOUNT NOT TO EXCEED
 TWENTY-ONE THOUSAND DOLLARS OF THE ANNUAL RETIREMENT  ALLOWANCE  DEFINED
 IN SUBDIVISION B OF THIS SECTION.
   § 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  EIGHTEEN, SAID COST-OF-LIVING
 ADJUSTMENT SHALL BE COMPUTED ON A BASE  BENEFIT  AMOUNT  NOT  TO  EXCEED
 TWENTY-ONE  THOUSAND  DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE DEFINED
 IN SUBDIVISION B OF THIS SECTION.
   § 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06801-07-7

 S. 3306--A                          2
 
   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  EIGHTEEN,  SAID  COST-OF-LIVING
 ADJUSTMENT  SHALL  BE  COMPUTED  ON  A BASE BENEFIT AMOUNT NOT TO EXCEED
 TWENTY-ONE THOUSAND DOLLARS OF THE ANNUAL RETIREMENT  ALLOWANCE  DEFINED
 IN SUBDIVISION B OF THIS SECTION.
   § 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 EIGHTEEN, SAID COST-OF-
 LIVING  ADJUSTMENT  SHALL  BE  COMPUTED  ON A BASE BENEFIT AMOUNT NOT TO
 EXCEED TWENTY-ONE THOUSAND DOLLARS OF THE  ANNUAL  RETIREMENT  ALLOWANCE
 DEFINED IN SUBDIVISION B OF THIS SECTION.
   § 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 2018 the annual cost-of-living adjust-
 ment will be computed on a base benefit amount not to exceed $21,000.
   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 $927 million.
   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  $127  million.   The estimated first year cost
 would be approximately $2.94 million  to  the  State  of  New  York  and
 approximately $12.3 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, 2016  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2016
 Report of the  Actuary  and  the  2016  Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2015
 and 2016 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, 2016
 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 May 5, 2017, and intended for use only during the
 2017  Legislative  Session,  is Fiscal Note No. 2017-91, prepared by the
 Actuary for the New York State and Local Retirement System.

co-Sponsors

View additional co-sponsors

2017-S3306B (ACTIVE) - Details

See Assembly Version of this Bill:: A6045
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:: 2015-2016: S6282, A9496
2019-2020: S5835, A7413
2021-2022: A8226
2023-2024: A6015

2017-S3306B (ACTIVE) - Summary

Provides a cost-of-living adjustment for members of retirement systems by increasing the base benefit amount for computation to $21,000.

2017-S3306B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3306B

SPONSOR: RITCHIE
 
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 $21,000.

 
SUMMARY OF PROVISIONS:

Section 1 amends § 78-a(c) of the Retirement and Social Security Law to
provide that beginning September 1, 2018, the cost of living adjustment
shall be computed on a base benefit amount not to exceed $21,000 of the
annual retirement allowance.

Section 2 amends § 378-a(c) of the Retirement and Social Security Law to
provide that beginning September 1, 2018, the cost of living adjustment
shall be computed on a base benefit amount not to exceed $21,000 of the
annual retirement allowance.

Section 3 amends § 532-a(c) of the Education Law to provide that begin-
ning September 1, 2019, the cost of living adjustment shall be computed
on a base benefit amount not to exceed $21,000 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, 2018, the
cost of living adjustment shall be computed on a base benefit amount not
to exceed $21,000 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 pension-
ers 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 retirement                  Percentage
1968 through 1996                   50%
1966 and 1967                       55%
1965                                60%
1964                                65%
1936                                70%
1962                                80%
1961                                90%
Prior to 1961                       100%

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 Retire-
ment and Social Security Law.

Subdivision (d) provides that the percentage shall be determined annual-
ly 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  general-
ly. Pursuant to this section, a cost-of-living adjustment shall be paya-
ble 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 (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  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 retirement                  Percentage
1968 through 1996                   50%
1966 and 1967                       55%
1965                                60%
1964                                65%
1936                                70%
1962                                80%
1961                                90%
Prior to 1961                       100%

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 annual-
ly  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 (0 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 retirement                  Percentage
1968 through 1996                   50%
1966 and 1967                       55%
1965                                60%
1964                                65%
1936                                70%
1962                                80%
1961                                90%
Prior to 1961                       100%

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 annual-
ly  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 retire-
ment 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 pension-
ers 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 retirement                  Percentage
1968 through 1996                   50%
1966 and 1967                       55%
1965                                60%
1964                                65%
1936                                70%
1962                                80%
1961                                90%
Prior to 1961                       100%

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 annual-
ly 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 Pt. 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 Fire-
men'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 $21,000 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  cove red 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 cover-
age,  are  likely  to  cause  a  significant  increase in retired public
employee health care costs. By increasing the annual  retirement  allow-
ance  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:

2015-2016: S.6282 Referred to Civil Service and Pensions/A.9496 Referred
to Governmental Employees.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S3306B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3306--B
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 Introduced  by  Sens.  RITCHIE,  AKSHAR, AVELLA, BAILEY, HOYLMAN -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on Civil Service and Pensions -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee  --  recommitted to the Committee on Civil Service and Pensions in
   accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 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  NINETEEN, SAID COST-OF-LIVING
 ADJUSTMENT SHALL BE COMPUTED ON A BASE  BENEFIT  AMOUNT  NOT  TO  EXCEED
 TWENTY-ONE  THOUSAND  DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE DEFINED
 IN SUBDIVISION B OF THIS SECTION.
   § 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  NINETEEN,  SAID  COST-OF-LIVING
 ADJUSTMENT  SHALL  BE  COMPUTED  ON  A BASE BENEFIT AMOUNT NOT TO EXCEED

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

                                                            LBD06801-11-8

 S. 3306--B                          2
 
 TWENTY-ONE THOUSAND DOLLARS OF THE ANNUAL RETIREMENT  ALLOWANCE  DEFINED
 IN SUBDIVISION B OF THIS SECTION.
   §  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  NINETEEN, SAID COST-OF-LIVING
 ADJUSTMENT SHALL BE COMPUTED ON A BASE  BENEFIT  AMOUNT  NOT  TO  EXCEED
 TWENTY-ONE  THOUSAND  DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE DEFINED
 IN SUBDIVISION B OF THIS SECTION.
   § 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 NINETEEN, SAID COST-OF-
 LIVING ADJUSTMENT SHALL BE COMPUTED ON A  BASE  BENEFIT  AMOUNT  NOT  TO
 EXCEED  TWENTY-ONE  THOUSAND  DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE
 DEFINED IN SUBDIVISION B OF THIS SECTION.
   § 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 2019 the annual cost of living adjust-
 ment will be computed on a base benefit amount not to exceed $21,000.
   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 $1.03 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 $141 million. The estimated first year cost would
 be approximately $3.3 million to the State of New York and approximately
 $13.6 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, 2017  actuarial  valu-
 ation.    Distributions  and  other  statistics can be found in the 2017
 Report of the  Actuary  and  the  2017  Comprehensive  Annual  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2015,
 2016, and 2017 Annual Report to the  Comptroller  on  Actuarial  Assump-
 tions,  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, 2017
 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.

 S. 3306--B                          3
 
   This  estimate,  dated  February  23,  2018, and intended for use only
 during the  2018  Legislative  Session,  is  Fiscal  Note  No.  2018-61,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.

Senate Bill S3306

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

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2017-S3306B (ACTIVE) - Details

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Senate Bill S3306

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Sponsored By

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

Bill Amendments

2017-S3306 - Details

2017-S3306 - Summary

2017-S3306 - Sponsor Memo

2017-S3306 - Bill Text download pdf

co-Sponsors

2017-S3306A - Details

2017-S3306A - Summary

2017-S3306A - Sponsor Memo

2017-S3306A - Bill Text download pdf

co-Sponsors

2017-S3306B (ACTIVE) - Details

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2017-S3306B (ACTIVE) - Sponsor Memo

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