NY State Senate Bill 2017-S6048C

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 25, 2018	print number 6048c
Jun 25, 2018	amend and recommit to civil service and pensions
Apr 09, 2018	print number 6048b
Apr 09, 2018	amend and recommit to civil service and pensions
Mar 19, 2018	print number 6048a
Mar 19, 2018	amend and recommit to civil service and pensions
Jan 03, 2018	referred to civil service and pensions
May 10, 2017	referred to civil service and pensions

Bill Amendments

Original

C (Active)

2017-S6048 - Details

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

2017-S6048 - Summary

Relates to providing cost-of-living adjustments; increases benefits from fifty to one hundred percent.

2017-S6048 - Sponsor Memo

                                 BILL NUMBER:  S6048

 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 OR GENERAL IDEA OF BILL :

This bill amends Chapter 125 of the Laws of 2000, a chapter which
provides public employee retirees with permanent partial
cost-of-living increases in New York State. This bill provides a
desirable amendment to Chapter 125 needed to protect public retirees
from continued erosion of their retirement income from inflation.
While Chapter 125 began the effort to address pension erosion, this
bill seeks to partially close that gap.

 SUMMARY OF SPECIFIC PROVISIONS :

Effective September 1, 2017, the following changes to section 78-a and
378-a of the Retirement and Social Security Law, Section 532-a of the
Education Law, and Section 13-196 of the Administrative Code of the
City of New York as added by Chapter 125 of the Laws of 2000 are
proposed:

Subdivision g of the above sections of law presently limits the amount
of COLA a surviving spouse of a deceased public retiree can receive.

COLA is limited to spouses who are entitled to a survivor's benefit
under an option selected by the retiree. Surviving spouses can only
receive 50% of the COLA benefit which the deceased retiree received.
This bill increases COLA payable to eligible surviving spouses the
full amount of the monthly COLA benefits the decreased retiree
received.

 JUSTIFICATION :

The limitation on this modest file benefit imposed by the present
subdivision g places a burden on eligible surviving spouses at this
most vulnerable time of their lives. It further erodes retiree
benefits at a time of ever increasing costs-of-living, in particular
the significantly increasing medical costs, including medication,
co-pays, and premiums impacting all citizens, especially retirees.

Members of the Retired Public Employees Association, the Retired
Teachers Association and the Alliance of Public Retiree Associations
of New York believe this bill will help assure our oldest public
retirees achieve a dignified and secure retirement, allowing them to
continue to contribute more effectively to the long-term health of our
economy.

 PRIOR LEGISLATIVE HISTORY :

2007-08: A7240 - referred to Assembly Governmental Employees
Committee.

 FISCAL IMPLICATIONS :

See Fiscal Note attached to bill.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S6048 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6048
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 10, 2017
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the retirement and social security  law,  the  education
   law  and  the administrative code of the city of New York, in relation
   to providing cost-of-living adjustments

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND SEVENTEEN, the surviving spouse of a deceased
 retired member who retired under an option which provides that  benefits
 are  to be continued for life to the surviving spouse after the death of
 the retired member, shall be entitled to receive  benefits  pursuant  to
 this  section. Said benefits shall be [fifty] ONE HUNDRED percent of the
 monthly benefits which the pensioner would be receiving pursuant to this
 section if living, and shall commence (i) with a payment for  the  month
 of  September,  two  thousand SEVENTEEN, or (ii) the month following the
 death of the deceased retired member, whichever is later.
   § 2. Subdivision g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND SEVENTEEN, the surviving spouse of a deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11293-01-7

 S. 6048                             2
 
 of September, two thousand SEVENTEEN, or (ii) the  month  following  the
 death of the deceased retired member, whichever is later.
   §  3. Subdivision g of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND SEVENTEEN, the surviving spouse of a deceased
 retired member who retired under an option which provides that  benefits
 are  to be continued for life to the surviving spouse after the death of
 the retired member, shall be entitled to receive  benefits  pursuant  to
 this  section. Said benefits shall be [fifty] ONE HUNDRED percent of the
 monthly benefits which the pensioner would be receiving pursuant to this
 section if living, and shall commence (i) with a payment for  the  month
 of  September,  two  thousand SEVENTEEN, or (ii) the month following the
 death of the deceased retired member, whichever is later.
   § 4. Subdivision g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND SEVENTEEN, the surviving spouse of a deceased
 retired  member  of  the New York city employees' retirement system, the
 New York city teachers' retirement system,  the  New  York  city  police
 pension  fund, the New York city fire department pension fund or the New
 York city board of education retirement  system  who  retired  under  an
 option  which provides that benefits are to be continued for life to the
 surviving spouse after the death of the member,  shall  be  entitled  to
 receive  a  benefit  pursuant  to  this  section.  Said benefit shall be
 [fifty] ONE HUNDRED percent of the monthly benefit which  the  pensioner
 would  be receiving if living, and shall commence (i) with a payment for
 the month of September,  two  thousand  SEVENTEEN,  or  (ii)  the  month
 following the death of the deceased retired member, whichever is later.
   § 5. This act shall take effect immediately.

2017-S6048A - Details

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

2017-S6048A - Summary

Relates to providing cost-of-living adjustments; increases benefits from fifty to one hundred percent.

2017-S6048A - Sponsor Memo

                                
 
BILL NUMBER: S6048A

SPONSOR: GOLDEN
 
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 OR GENERAL IDEA OF BILL:

This bill amends Chapter 125 of the Laws of 2000, a chapter which
provides public employee retirees with permanent partial cost-of-living
increases in New York State. This bill provides a desirable amendment to
Chapter 125 needed to protect public retirees from continued erosion of
their retirement income from inflation.  While Chapter 125 began the
effort to address pension erosion, this bill seeks to partially close
that gap.

 
SUMMARY OF PROVISIONS:

Effective September 1, 2018, the following changes to section 78-a and
378-a of the Retirement and Social Security Law, Section 532-a of the

Education Law, and Section 13-196 of the Administrative Code of the City
of New York as added by Chapter 125 of the Laws of 2000 are proposed:

Subdivision g of the above sections of law presently limits the amount
of COLA a surviving spouse of a deceased public retiree can receive.
COLA is limited to spouses who are entitled to a survivor's benefit
under an option selected by the retiree. Surviving spouses can only
receive 100% of the COLA benefit which the deceased retiree received.
This bill increases COLA payable to eligible surviving spouses the full
amount of the monthly COLA benefits the decreased retiree received.

 
JUSTIFICATION:

The limitation on this modest file benefit imposed by the present subdi-
vision g places a burden on eligible surviving spouses at this most
vulnerable time of their lives. It further erodes retiree benefits at a
time of ever increasing costs-of-living, in particular the significantly
increasing medical costs, including medication, co-pays, and premiums
impacting all citizens, especially retirees.

Members of the Retired Public Employees Association, the Retired Teach-
ers Association and the Alliance of Public Retiree Associations of New
York believe this bill will help assure our oldest public retirees
achieve a dignified and secure retirement, allowing them to continue to
contribute more effectively to the long-term health of our economy.

 
PRIOR LEGISLATIVE HISTORY:

2017: S6048 - referred to Civil Service and Pensions
2007-08: A7240 - referred to Assembly Governmental Employees Committee.

 
FISCAL IMPLICATIONS:

See Fiscal Note attached to bill.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S6048A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6048--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 10, 2017
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- 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 g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a deceased
 retired member who retired under an option which provides that  benefits
 are  to be continued for life to the surviving spouse after the death of
 the retired member, shall be entitled to receive  benefits  pursuant  to
 this  section. Said benefits shall be [fifty] ONE HUNDRED percent of the
 monthly benefits which the pensioner would be receiving pursuant to this
 section if living, and shall commence (i) with a payment for  the  month
 of  September,  two  thousand  EIGHTEEN, or (ii) the month following the
 death of the deceased retired member, whichever is later.
   § 2. Subdivision g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF  SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a deceased
 retired member who retired under an option which provides that  benefits
 are  to be continued for life to the surviving spouse after the death of

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

                                                            LBD11293-03-8

 S. 6048--A                          2
 
 the retired member, shall be entitled to receive  benefits  pursuant  to
 this  section. Said benefits shall be [fifty] ONE HUNDRED percent of the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand EIGHTEEN, or (ii)  the  month  following  the
 death of the deceased retired member, whichever is later.
   §  3. Subdivision g of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand EIGHTEEN, or (ii)  the  month  following  the
 death of the deceased retired member, whichever is later.
   § 4. Subdivision g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a  deceased
 retired  member  of  the New York city employees' retirement system, the
 New York city teachers' retirement system,  the  New  York  city  police
 pension  fund, the New York city fire department pension fund or the New
 York city board of education retirement  system  who  retired  under  an
 option  which provides that benefits are to be continued for life to the
 surviving spouse after the death of the member,  shall  be  entitled  to
 receive  a  benefit  pursuant  to  this  section.  Said benefit shall be
 [fifty] ONE HUNDRED percent of the monthly benefit which  the  pensioner
 would  be receiving if living, and shall commence (i) with a payment for
 the month of September, two thousand EIGHTEEN, or (ii) the month follow-
 ing the death of the deceased retired member, whichever is later.
   § 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 cost of living benefit payable
 to a surviving spouse who is eligible for COLA will  be  increased  from
 fifty  percent  to one hundred percent of the benefit that the pensioner
 would have received.
   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 $1.1 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 $110 million. The estimated first year cost would
 be approximately $2.6 million to the State of New York and approximately
 $11 million to the participating employers in the PFRS.
   Summary of relevant resources:

 S. 6048--A                          3
 
   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.
   This  estimate,  dated  January  25,  2018,  and intended for use only
 during the  2018  Legislative  Session,  is  Fiscal  Note  No.  2018-40,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.

2017-S6048B - Details

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

2017-S6048B - Summary

Relates to providing cost-of-living adjustments; increases benefits from fifty to one hundred percent.

2017-S6048B - Sponsor Memo

                                
 
BILL NUMBER: S6048B

SPONSOR: GOLDEN
 
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 OR GENERAL IDEA OF BILL:

This bill amends Chapter 125 of the Laws of 2000, a chapter which
provides public employee retirees with permanent partial cost-of-living
increases in New York State. This bill provides a desirable amendment to
Chapter 125 needed to protect public retirees from continued erosion of
their retirement income from inflation.  While Chapter 125 began the
effort to address pension erosion, this bill seeks to partially close
that gap.

 
SUMMARY OF PROVISIONS:

Effective September 1, 2018, the following changes to section 78-a and
378-a of the Retirement and Social Security Law, Section 532-a of the

Education Law, and Section 13-196 of the Administrative Code of the City
of New York as added by Chapter 125 of the Laws of 2000 are proposed:

Subdivision g of the above sections of law presently limits the amount
of COLA a surviving spouse of a deceased public retiree can receive.
COLA is limited to spouses who are entitled to a survivor's benefit
under an option selected by the retiree. Surviving spouses can only
receive 50% of the COLA benefit which the deceased retiree received.
This bill increases COLA payable to eligible surviving spouses the full
amount of the monthly COLA benefits the decreased retiree received.

 
JUSTIFICATION:

The limitation on this modest file benefit imposed by the present subdi-
vision g places a burden on eligible surviving spouses at this most
vulnerable time of their lives. It further erodes retiree benefits at a
time of ever increasing costs-of-living, in particular the significantly
increasing medical costs, including medication, co-pays, and premiums
impacting all citizens, especially retirees.

Members of the Retired Public Employees Association, the Retired Teach-
ers Association and the Alliance of Public Retiree Associations of New
York believe this bill will help assure our oldest public retirees
achieve a dignified and secure retirement, allowing them to continue to
contribute more effectively to the long-term health of our economy.

 
PRIOR LEGISLATIVE HISTORY:

2017: S6048 - referred to Civil Service and Pensions
2007-08: A7240 - referred to Assembly Governmental Employees Committee.

 
FISCAL IMPLICATIONS:

See Fiscal Note attached to bill.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S6048B - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6048--B
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 10, 2017
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- 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  --  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 g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand EIGHTEEN, or (ii)  the  month  following  the
 death of the deceased retired member, whichever is later.
   § 2. Subdivision g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a  deceased
 retired  member who retired under an option which provides that benefits
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11293-05-8

 S. 6048--B                          2
 
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand EIGHTEEN, or (ii)  the  month  following  the
 death of the deceased retired member, whichever is later.
   §  3. Subdivision g of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand EIGHTEEN, or (ii)  the  month  following  the
 death of the deceased retired member, whichever is later.
   § 4. Subdivision g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a  deceased
 retired  member  of  the New York city employees' retirement system, the
 New York city teachers' retirement system,  the  New  York  city  police
 pension  fund, the New York city fire department pension fund or the New
 York city board of education retirement  system  who  retired  under  an
 option  which provides that benefits are to be continued for life to the
 surviving spouse after the death of the member,  shall  be  entitled  to
 receive  a  benefit  pursuant  to  this  section.  Said benefit shall be
 [fifty] ONE HUNDRED percent of the monthly benefit which  the  pensioner
 would  be receiving if living, and shall commence (i) with a payment for
 the month of September, two thousand EIGHTEEN, or (ii) the month follow-
 ing the death of the deceased retired member, whichever is later.
   § 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 cost of living benefit payable
 to a surviving spouse who is eligible for COLA will  be  increased  from
 fifty  percent  to one hundred percent of the benefit that the pensioner
 would have received.
   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 $1.1 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 $110 million. The estimated first year cost would
 be approximately $2.6 million to the State of New York and approximately
 $11 million to the participating employers in the PFRS.

 S. 6048--B                          3
 
   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.
   This  estimate,  dated  January  25,  2018,  and intended for use only
 during the  2018  Legislative  Session,  is  Fiscal  Note  No.  2018-40,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.
   FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
   This bill would amend subdivision d of Section 532-a of the  Education
 Law  to increase the cost-of-living adjustment (COLA) percentage that is
 used to determine the COLA payable to eligible retired members. The COLA
 percentage would be increased to 100% of the annual inflation as  deter-
 mined  from  the  increase  in the Consumer price Index (CPI) in the one
 year period ending on the prior March thirty-first. The current percent-
 age is equal to 50% of the annual increase in the CPI. This increase  in
 the COLA percentage would be effective in September 2018.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System for this benefit is estimated to  be  $606.8
 million or 3.65% of payroll if this bill is enacted.
   Member  data  is  from  the  System's  most recent actuarial valuation
 files, consisting of data provided by the employers  to  the  Retirement
 System.   Data distributions and statistics can be found in the System's
 Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
 reported  in the System's financial statements, and can also be found in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report.
   The source of this estimate is Fiscal Note  2018-19  dated  March  30,
 2018  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2018 Legislative Session.
 I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
 Retirement  System.  I  am a member of the American Academy of Actuaries
 and I meet the Qualification Standards of the American Academy of  Actu-
 aries to render the actuarial opinion contained herein.

2017-S6048C (ACTIVE) - Details

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

2017-S6048C (ACTIVE) - Summary

Relates to providing cost-of-living adjustments; increases benefits from fifty to one hundred percent.

2017-S6048C (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6048C

SPONSOR: GOLDEN
 
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 OR GENERAL IDEA OF BILL:

This bill amends Chapter 125 of the Laws of 2000, a chapter which
provides public employee retirees with permanent partial cost-of-living
increases in New York State. This bill provides a desirable amendment to
Chapter 125 needed to protect public retirees from continued erosion of
their retirement income from inflation.  While Chapter 125 began the
effort to address pension erosion, this bill seeks to partially close
that gap.

 
SUMMARY OF PROVISIONS:

Effective September 1, 2018, the following changes to section 78-a and
378-a of the Retirement and Social Security Law, Section 532-a of the

Education Law, and Section 13-196 of the Administrative Code of the City
of New York as added by Chapter 125 of the Laws of 2000 are proposed:

Subdivision g of the above sections of law presently limits the amount
of COLA a surviving spouse of a deceased public retiree can receive.
COLA is limited to spouses who are entitled to a survivor's benefit
under an option selected by the retiree. Surviving spouses can only
receive 50% of the COLA benefit which the deceased retiree received.
This bill increases COLA payable to eligible surviving spouses the full
amount of the monthly COLA benefits the decreased retiree received.

 
JUSTIFICATION:

The limitation on this modest file benefit imposed by the present subdi-
vision g places a burden on eligible surviving spouses at this most
vulnerable time of their lives. It further erodes retiree benefits at a
time of ever increasing costs-of-living, in particular the significantly
increasing medical costs, including medication, co-pays, and premiums
impacting all citizens, especially retirees.

Members of the Retired Public Employees Association, the Retired Teach-
ers Association and the Alliance of Public Retiree Associations of New
York believe this bill will help assure our oldest public retirees
achieve a dignified and secure retirement, allowing them to continue to
contribute more effectively to the long-term health of our economy.

 
PRIOR LEGISLATIVE HISTORY:

2017: S6048 - referred to Civil Service and Pensions
2007-08: A7240 - referred to Assembly Governmental Employees Committee.

 
FISCAL IMPLICATIONS:

See Fiscal Note attached to bill.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S6048C (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6048--C
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 10, 2017
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- 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  --  committee  discharged,  bill  amended,  ordered  reprinted as
   amended and recommitted to said  committee  --  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 g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand EIGHTEEN, or (ii)  the  month  following  the
 death of the deceased retired member, whichever is later.
   § 2. Subdivision g 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11293-07-8

 S. 6048--C                          2
 
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand EIGHTEEN, or (ii)  the  month  following  the
 death of the deceased retired member, whichever is later.
   §  3. Subdivision g of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a  deceased
 retired  member who retired under an option which provides that benefits
 are to be continued for life to the surviving spouse after the death  of
 the  retired  member,  shall be entitled to receive benefits pursuant to
 this section. Said benefits shall be [fifty] ONE HUNDRED percent of  the
 monthly benefits which the pensioner would be receiving pursuant to this
 section  if  living, and shall commence (i) with a payment for the month
 of September, two thousand EIGHTEEN, or (ii)  the  month  following  the
 death of the deceased retired member, whichever is later.
   § 4. Subdivision g 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:
   g. Notwithstanding any other provision of law, EFFECTIVE THE FIRST DAY
 OF SEPTEMBER, TWO THOUSAND EIGHTEEN, the surviving spouse of a  deceased
 retired  member  of  the New York city employees' retirement system, the
 New York city teachers' retirement system,  the  New  York  city  police
 pension  fund, the New York city fire department pension fund or the New
 York city board of education retirement  system  who  retired  under  an
 option  which provides that benefits are to be continued for life to the
 surviving spouse after the death of the member,  shall  be  entitled  to
 receive  a  benefit  pursuant  to  this  section.  Said benefit shall be
 [fifty] ONE HUNDRED percent of the monthly benefit which  the  pensioner
 would  be receiving if living, and shall commence (i) with a payment for
 the month of September, two thousand EIGHTEEN, or (ii) the month follow-
 ing the death of the deceased retired member, whichever is later.
   § 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 cost of living benefit payable
 to a surviving spouse who is eligible for COLA will  be  increased  from
 fifty  percent  to one hundred percent of the benefit that the pensioner
 would have received.
   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 $1.1 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

 S. 6048--C                          3
 
 would be approximately $110 million. The estimated first year cost would
 be approximately $2.6 million to the State of New York and approximately
 $11 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.
   This  estimate,  dated  January  25,  2018,  and intended for use only
 during the  2018  Legislative  Session,  is  Fiscal  Note  No.  2018-40,
 prepared  by  the  Actuary  for  the New York State and Local Retirement
 System.
   FISCAL NOTE. -- Pursuant to Legislative Law, Section 50:
   This bill would amend subdivision d of Section 532-a of the  Education
 Law  to increase the cost-of-living adjustment (COLA) percentage that is
 used to determine the COLA payable to eligible retired members. The COLA
 percentage would be increased to 100% of the annual inflation as  deter-
 mined  from  the  increase  in the Consumer price Index (CPI) in the one
 year period ending on the prior March thirty-first. The current percent-
 age is equal to 50% of the annual increase in the CPI. This increase  in
 the COLA percentage would be effective in September 2018.
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System for this benefit is estimated to  be  $606.8
 million or 3.65% of payroll if this bill is enacted.
   Member  data  is  from  the  System's  most recent actuarial valuation
 files, consisting of data provided by the employers  to  the  Retirement
 System.   Data distributions and statistics can be found in the System's
 Comprehensive Annual Financial  Report  (CAFR).  System  assets  are  as
 reported  in the System's financial statements, and can also be found in
 the CAFR. Actuarial assumptions and methods are provided in the System's
 Actuarial Valuation Report.
   The source of this estimate is Fiscal Note  2018-19  dated  March  30,
 2018  prepared by the Actuary of the New York State Teachers' Retirement
 System and is intended for use only during the 2018 Legislative Session.
 I, Richard A. Young, am the Actuary for the  New  York  State  Teachers'
 Retirement  System.  I  am a member of the American Academy of Actuaries
 and I meet the Qualification Standards of the American Academy of  Actu-
 aries to render the actuarial opinion contained herein.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL: This proposed legislation would amend subdivision g
 of Section 13-696 of the Administrative Code of the  City  of  New  York
 (ACCNY)  to increase the Cost-of-Living Adjustment (COLA) to a surviving
 spouse from 50% to 100% of the COLA the pensioner would be receiving  if
 still alive effective September 1, 2018 for the New York City Employees'
 Retirement  System  (NYCERS),  the  New  York  City Teachers' Retirement
 System (NYCTRS), the New York City Board of Education Retirement  System

 S. 6048--C                          4
 
 (BERS), the New York City Police Pension Fund (POLICE), and the New York
 City  Fire  Pension Fund (FIRE), collectively known as the New York City
 Retirement Systems and Pension Funds (NYCRS).
   Effective Date: Upon enactment.
   BACKGROUND:  The  COLA currently provides for an annual increase equal
 to a percentage of the annual retirement  allowance  otherwise  payable,
 computed  without  optional modification on the first $18,000 of retire-
 ment allowance. That percentage is equal to 50% of the increase  in  the
 consumer  price  index  (CPI) in the one year period ending on the March
 thirty-first prior to the COLA effective on the ensuing September first.
 The percentage is rounded to the next higher one-tenth  of  one  percent
 and shall not be less than 1.0% nor more than 3.0%.
   The surviving spouse of a deceased retired member who retired under an
 option  which provides that benefits are to be continued for life to the
 surviving spouse after the death of  the  retired  member  is  currently
 entitled  to receive a COLA equal to 50% of the COLA the pensioner would
 be receiving if living.  This  proposed  legislation  would  change  the
 percentage  that  the  surviving  spouse  COLA is based upon from 50% to
 100%.
   FINANCIAL IMPACT - SUMMARY: The estimated financial  impact  to  NYCRS
 for increasing the surviving spouse COLA from 50% to 100% of the retired
 member's COLA is shown in the table below.
 
                     Additional Actuarial    Estimated First Year
                      Present Value (APV)       Annual Employer
                          of Benefits            Contributions
           NYCRS         ($ MILLIONS)            ($ MILLIONS)
          NYCERS            $386.6                  $342.9
          NYCTRS             184.1                   146.6
          BERS                19.6                    16.5
          POLICE              53.6                    29.9
          FIRE                21.0                    11.1
            Total           $664.9                  $547.0
 
   FINANCIAL  IMPACT  - ANNUAL EMPLOYER CONTRIBUTIONS: In accordance with
 ACCNY  Section  13-638.2(k-2),  new  Unfunded  Accrued  Liability  (UAL)
 attributable to benefit changes are to be amortized as determined by the
 Actuary  but  generally  over  the  remaining  working lifetime of those
 impacted by the benefit changes.
   For purposes of this Fiscal Note it has been assumed that increases in
 UAL attributable to current retirees would be recognized immediately and
 that increases in UAL attributable to active members would be  amortized
 over periods ranging from 10 to 15 years depending on the NYCRS (9 to 14
 payments, respectively, under One-Year Lag Methodology).
   CONTRIBUTION  TIMING:  For purposes of this Fiscal Note, it is assumed
 that the changes in the UAL would be reflected for the first time in the
 Final June 30, 2017 actuarial valuations of  the  NYCRS.  In  accordance
 with  the  One-Year  Lag  Methodology  (OYLM) used to determine employer
 contributions, the increase in employer  contributions  would  first  be
 reflected in Fiscal Year 2019.
   OTHER  COSTS: Not measured in this Fiscal Note is the impact on admin-
 istrative costs.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data used in the Preliminary June 30, 2017 (Lag) actuarial valuations of
 NYCRS  used  to  determine  the  Preliminary  Fiscal  Year 2019 employer
 contributions.

 S. 6048--C                          5
 
   ACTUARIAL ASSUMPTIONS AND METHODS: The changes  in  APVB,  and  annual
 employer  contributions  presented  herein have been calculated based on
 the same actuarial assumptions and methods in effect for  the  June  30,
 2017 (Lag) actuarial valuations used to determine the Preliminary Fiscal
 Year 2019 employer contributions of NYCRS. Please note these assumptions
 and  methods  are  subject to change as this valuation is not considered
 final until the end of Fiscal Year 2019.
   STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
 ary  for,  and  independent of, the New York City Retirement Systems and
 Pension Funds. I am a Fellow of the Society of  Actuaries,  an  Enrolled
 Actuary  under  the  Employee Retirement Income and Security Act of 1974
 (ERISA), a Member of the American Academy of Actuaries, and a Fellow  of
 the  Conference of Consulting Actuaries. I meet the Qualification Stand-
 ards of the American Academy of Actuaries to render the actuarial  opin-
 ion contained herein. To the best of my knowledge, the results contained
 herein have been prepared in accordance with generally accepted actuari-
 al  principles  and procedures and with the Actuarial Standards of Prac-
 tice issued by the Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2018-44  dated  June  20,
 2018, was prepared by the Chief Actuary for the New York City Employees'
 Retirement  System,  the  New York City Teachers' Retirement System, the
 New York City Board of Education Retirement System, the  New  York  City
 Police Pension Fund, and the New York City Fire Pension Fund. This esti-
 mate is intended for use only during the 2018 Legislative Session.

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Senate Bill S6048C

Sponsored By

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

Bill Amendments

2017-S6048 - Details

2017-S6048 - Summary

2017-S6048 - Sponsor Memo

2017-S6048 - Bill Text download pdf

2017-S6048A - Details

2017-S6048A - Summary

2017-S6048A - Sponsor Memo

2017-S6048A - Bill Text download pdf

2017-S6048B - Details

2017-S6048B - Summary

2017-S6048B - Sponsor Memo

2017-S6048B - Bill Text download pdf

2017-S6048C (ACTIVE) - Details

2017-S6048C (ACTIVE) - Summary

2017-S6048C (ACTIVE) - Sponsor Memo

2017-S6048C (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6048C

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Sponsored By

Martin J. Golden

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

Bill Amendments

2017-S6048 - Details

2017-S6048 - Summary

2017-S6048 - Sponsor Memo

2017-S6048 - Bill Text download pdf

2017-S6048A - Details

2017-S6048A - Summary

2017-S6048A - Sponsor Memo

2017-S6048A - Bill Text download pdf

2017-S6048B - Details

2017-S6048B - Summary

2017-S6048B - Sponsor Memo

2017-S6048B - Bill Text download pdf

2017-S6048C (ACTIVE) - Details

2017-S6048C (ACTIVE) - Summary

2017-S6048C (ACTIVE) - Sponsor Memo

2017-S6048C (ACTIVE) - Bill Text download pdf

Comments