LBD10513-06-1
S. 6060--B 2
1962 80%
1961 90%
prior to 1961 100%
Said adjusted benefit shall be computed on a base benefit amount not to
exceed eighteen thousand dollars of the retirement allowance otherwise
payable, computed without optional modification. Any benefit received
pursuant to this subdivision shall be in lieu of any benefit received
pursuant to section seventy-eight of this title.
COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-ONE, ALL RETIRED
MEMBERS WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED
NINETY-SEVEN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVI-
SION A OF THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY
INSTALLMENTS ON THE BASIS PROVIDED FOR IN THIS SUBDIVISION. SAID
ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN CONSUM-
ER PRICE INDEX (ALL URBAN CONSUMERS, CPI-U, U.S. CITY AVERAGE, ALL
ITEMS, 1982-84=100), PUBLISHED BY THE UNITED STATES BUREAU OF LABOR
STATISTICS, MEASURED FROM THE YEAR OF RETIREMENT THROUGH CALENDAR YEAR
NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
YEAR OF RETIREMENT PERCENTAGE
1973 THROUGH 1996 50%
1971 AND 1972 55%
1970 60%
1969 65%
1968 70%
1967 80%
1966 90%
PRIOR TO 1966 100%
SAID ADJUSTED BENEFIT COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-
ONE, SHALL BE COMPUTED ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT
ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET
FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT TO THIS SUBDIVISION
SHALL BE IN LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION SEVENTY-
EIGHT OF THIS TITLE.
§ 2. Subdivision f of section 378-a of the retirement and social secu-
rity law, as added by chapter 125 of the laws of 2000, is amended to
read as follows:
f. Commencing September first, two thousand, all retired members who
have retired prior to the calendar year nineteen hundred ninety-seven
and who meet the eligibility criteria set forth in subdivision a of this
section shall be paid an adjusted benefit in monthly installments on the
basis provided for in this subdivision. Said adjusted benefit shall be
equal to a percentage of the change in consumer price index (all urban
consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
by the United States bureau of labor statistics, measured from the year
of retirement through calendar year nineteen hundred ninety-seven
according to the following schedule:
Year of retirement Percentage
1968 through 1996 50%
1966 and 1967 55%
1965 60%
1964 65%
1963 70%
1962 80%
1961 90%
S. 6060--B 3
prior to 1961 100%
Said adjusted benefit shall be computed on a base benefit amount not to
exceed eighteen thousand dollars of the retirement allowance otherwise
payable, computed without optional modification. Any benefit received
pursuant to this subdivision shall be in lieu of any benefit received
pursuant to section three hundred seventy-eight of this title.
COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-ONE, ALL RETIRED
MEMBERS WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED
NINETY-SEVEN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVI-
SION A OF THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY
INSTALLMENTS ON THE BASIS PROVIDED FOR IN THIS SUBDIVISION. SAID
ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN CONSUM-
ER PRICE INDEX (ALL URBAN CONSUMERS, CPI-U, U.S. CITY AVERAGE, ALL
ITEMS, 1982-84=100), PUBLISHED BY THE UNITED STATES BUREAU OF LABOR
STATISTICS, MEASURED FROM THE YEAR OF RETIREMENT THROUGH CALENDAR YEAR
NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
YEAR OF RETIREMENT PERCENTAGE
1973 THROUGH 1996 50%
1971 AND 1972 55%
1970 60%
1969 65%
1968 70%
1967 80%
1966 90%
PRIOR TO 1966 100%
SAID ADJUSTED BENEFIT COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-
ONE, SHALL BE COMPUTED ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT
ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET
FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT TO THIS SUBDIVISION
SHALL BE IN LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION THREE
HUNDRED SEVENTY-EIGHT OF THIS TITLE.
§ 3. Subdivision f of section 532-a of the education law, as added by
chapter 125 of the laws of 2000, is amended to read as follows:
f. Commencing September first, two thousand, all retired members who
have retired prior to the calendar year nineteen hundred ninety-seven
and who meet the eligibility criteria set forth in subdivision a of this
section shall be paid an adjusted benefit in monthly installments on the
basis provided for in this subdivision. Said adjusted benefit shall be
equal to a percentage of the change in consumer price index (all urban
consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
by the United States bureau of labor statistics, measured from the year
of retirement through calendar year nineteen hundred ninety-seven
according to the following schedule:
Year of retirement Percentage
1968 through 1996 50%
1966 and 1967 55%
1965 60%
1964 65%
1963 70%
1962 80%
1961 90%
prior to 1961 100%
Said adjusted benefit shall be computed on a base benefit amount not to
exceed eighteen thousand dollars of the retirement allowance otherwise
payable, computed without optional modification excluding any annuity
S. 6060--B 4
derived from voluntary contributions made by members, except those made
pursuant to elections under subdivision one of section five hundred
eleven-a or paragraph c of subdivision three of section five hundred
sixteen of this article. Any benefits received pursuant to this subdivi-
sion shall be in lieu of any benefits received pursuant to section five
hundred thirty-two of this article, unless such benefits are in excess
of those provided by this section, in which case such benefits shall be
paid by the retirement system pursuant to such provision.
COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-ONE, ALL RETIRED
MEMBERS WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED
NINETY-SEVEN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVI-
SION A OF THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY
INSTALLMENTS ON THE BASIS PROVIDED FOR IN THIS SUBDIVISION. SAID
ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN CONSUM-
ER PRICE INDEX (ALL URBAN CONSUMERS, CPI-U, U.S. CITY AVERAGE, ALL
ITEMS, 1982-84=100), PUBLISHED BY THE UNITED STATES BUREAU OF LABOR
STATISTICS, MEASURED FROM THE YEAR OF RETIREMENT THROUGH CALENDAR YEAR
NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
YEAR OF RETIREMENT PERCENTAGE
1973 THROUGH 1996 50%
1971 AND 1972 55%
1970 60%
1969 65%
1968 70%
1967 80%
1966 90%
PRIOR TO 1966 100%
SAID ADJUSTED BENEFIT, COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-
ONE, SHALL BE COMPUTED ON A BASE BENEFIT AMOUNT NOT TO EXCEED EIGHTEEN
THOUSAND DOLLARS OF THE RETIREMENT ALLOWANCE OTHERWISE PAYABLE, COMPUTED
WITHOUT OPTIONAL MODIFICATION, SET FORTH HEREIN ABOVE. ANY BENEFIT
RECEIVED PURSUANT TO THIS SUBDIVISION SHALL BE IN LIEU OF ANY BENEFIT
RECEIVED PURSUANT TO SECTION FIVE HUNDRED THIRTY-TWO OF THIS ARTICLE,
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.
§ 4. Subdivision f of section 13-696 of the administrative code of the
city of New York, as added by chapter 125 of the laws of 2000, is
amended to read as follows:
f. Commencing September first, two thousand, all retired members who
have retired prior to the calendar year nineteen hundred ninety-seven
and who meet the eligibility criteria set forth in subdivision a of this
section shall be paid an adjusted benefit in monthly installments on the
basis provided for in this subdivision. Said adjusted benefit shall be
equal to a percentage of the change in consumer price index (all urban
consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
by the United States bureau of labor statistics, measured from the year
of retirement through calendar year nineteen hundred ninety-seven
according to the following schedule:
Year of retirement Percentage
1968 through 1996 50%
1966 and 1967 55%
1965 60%
1964 65%
1963 70%
S. 6060--B 5
1962 80%
1961 90%
prior to 1961 100%
Said adjusted benefit shall be computed on a base benefit amount not to
exceed eighteen thousand dollars of the annual fixed retirement allow-
ance otherwise payable, computed without optional modification. Any
benefit received pursuant to this subdivision shall be in lieu of any
benefit received pursuant to chapter three hundred ninety of the laws of
nineteen hundred ninety-eight, and any preceding provision of law
providing for supplementation.
COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-ONE, ALL RETIRED
MEMBERS WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED
NINETY-SEVEN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVI-
SION A OF THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY
INSTALLMENTS ON THE BASIS PROVIDED FOR IN THIS SUBDIVISION. SAID
ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN CONSUM-
ER PRICE INDEX (ALL URBAN CONSUMERS, CPI-U, U.S. CITY AVERAGE, ALL
ITEMS, 1982-84=100), PUBLISHED BY THE UNITED STATES BUREAU OF LABOR
STATISTICS, MEASURED FROM THE YEAR OF RETIREMENT THROUGH CALENDAR YEAR
NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
YEAR OF RETIREMENT PERCENTAGE
1973 THROUGH 1996 50%
1971 AND 1972 55%
1970 60%
1969 65%
1968 70%
1967 80%
1966 90%
PRIOR TO 1966 100%
SAID ADJUSTED BENEFIT, COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-
ONE, SHALL BE COMPUTED ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT
ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET
FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT TO THIS SUBDIVISION
SHALL BE IN LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION 13-695 OF
THIS ARTICLE.
§ 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 2021, additional payments will be made
for those members who retired after 1960 and prior to 1973.
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 $124,000.
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 $584,000. The estimated first year cost would be
approximately $12,000 to the State of New York and approximately $52,000
to the participating employers in the PFRS.
Summary of relevant resources:
S. 6060--B 6
Membership data as of March 31, 2020 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2020 actuari-
al valuation. Distributions and other statistics can be found in the
2020 Report of the Actuary and the 2020 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2020
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, 2020
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 fiscal note does not constitute a legal opinion on the viability
of the proposed change nor is it intended to serve as a substitute for
the professional judgment of an attorney.
This estimate, dated April 1, 2021, and intended for use only during
the 2021 Legislative Session, is Fiscal Note No. 2021-109, prepared by
the Actuary for the New York State and Local Retirement System.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
In as much as this bill would impact members and employers of the New
York State Teachers' Retirement System (NYSTRS), this bill (legislative
bill draft 10513-01-1) would amend subdivision f of Section 532-a of the
Education Law to provide an increase in supplementation for retired
members who meet the eligibility requirements set forth in subdivision a
of Section 532-a and who retired during the calendar years 1961 through
1972, inclusive. Benefit increases are based on the first $18,000 of the
maximum annual benefit without optional modification and would be effec-
tive in September of 2021.
The annual cost to the employers of members of the New York State
Teachers' Retirement System is estimated to be negligible 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
Annual Report. System assets and GASB disclosures are reported in the
System's financial statements, and can also be found in the System's
Annual Report. Actuarial assumptions and methods are provided in the
System's Actuarial Valuation Report.
The source of this estimate is Fiscal Note 2021-36 dated May 5, 2021
prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2021 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: With regards to the New York City Employees' Retire-
ment System (NYCERS), the New York City Teachers' Retirement System
(NYCTRS), the New York City Board of Education Retirement System (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), this proposed legislation
would amend subdivision f of Section 13-696 of the Administrative Code
of the City of New York (ACCNY) to increase the Cost-of-Living Adjust-
S. 6060--B 7
ment (COLA) effective September 1, 2021 for NYCRS members and their
spouses who retired during the period 1961 through 1972.
Effective Date: Upon enactment.
BACKGROUND: Commencing September 1, 2000, members who retired prior to
January 1, 1997 and met certain eligibility requirements to receive a
COLA, were paid an adjusted monthly benefit equal to a percentage of the
change in the consumer price index from the year of retirement through
calendar year 1997. For the purposes of this Fiscal Note, it is assumed
that the revised percentages would be paid in lieu of current percent-
ages as shown in the table below:
Year of Retirement Current Percentage Revised Percentage
1973 through 1996 50% 50%
1971 through 1972 50% 55%
1970 50% 60%
1969 50% 65%
1968 50% 70%
1967 55% 80%
1966 55% 90%
1965 60% 100%
1964 65% 100%
1963 70% 100%
1962 80% 100%
1961 90% 100%
Prior to 1961 100% 100%
FINANCIAL IMPACT - SUMMARY: The estimated financial impact of increas-
ing the COLA for members who retired from 1961 through 1972 as described
above is an increase in Present Value of Future Benefits (PVFB) of
approximately $5.6 million and an increase in the first year annual
employer contributions of approximately $6.2 million. A breakdown of the
financial impact by NYCRS is shown in the table below.
Additional Increase in Fiscal
Present Value of Year 2022
Future Benefits Employer Contributions
NYCRS as of June 30, 2020 ($ Thousands)
($ Thousands)
NYCERS $1,433.8 $1,587.0
NYCTRS 55.4 61.3
BERS 2.4 2.6
POLICE 2,207.9 2,443.8
FIRE 1,897.4 2,100.1
Total $5,596.9 $6,194.8
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 are generally amortized over the remaining
working lifetime of those impacted by the benefit changes. For the
purposes of this Fiscal Note, since those that would benefit are
retired, the entire increase in UAL would be recognized immediately.
CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is
assumed that the changes in the PVFB and annual employer contributions
would be reflected for the first time in the June 30, 2020 actuarial
valuations of NYCRS. In accordance with the One-Year Lag Methodology
S. 6060--B 8
(OYLM) used to determine employer contributions, the increase in employ-
er contributions would first be reflected in Fiscal Year 2022.
CENSUS DATA: The estimates presented herein are based on the census
data used in the June 30, 2020 (Lag) actuarial valuations of NYCRS to
determine the Preliminary Fiscal Year 2022 employer contributions.
ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the PVFB and annual
employer contributions presented herein have been calculated based on
the actuarial assumptions and methods in effect for the June 30, 2019
(Lag) actuarial valuations used to determine the Preliminary Fiscal Year
2021 employer contributions of NYCRS.
The Actuary is proposing a set of changes for use beginning with the
June 30, 2019 (Lag) actuarial valuations of NYCRS to determine the Final
Fiscal Year 2021 Employer Contributions (2021 A&M). If the 2021 A&M is
enacted it is estimated that it would produce PVFB and employer contrib-
ution results that are approximately 2% smaller than the results shown
above.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the realization of the actuarial assumptions used, as well as
certain demographic characteristics of NYCRS and other exogenous factors
such as investment, contribution, and other risks. If actual experience
deviates from actuarial assumptions, the actual costs could differ from
those presented herein. Costs are also dependent on the actuarial meth-
ods used, and therefore different actuarial methods could produce
different results. Quantifying these risks is beyond the scope of this
Fiscal Note.
Not measured in this Fiscal Note are the initial, additional adminis-
trative costs to implement the proposed legislation.
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, a
Member of the American Academy of Actuaries, and a Fellow of the Confer-
ence of Consulting Actuaries. I meet the Qualification Standards of the
American Academy of Actuaries to render the actuarial opinion contained
herein. To the best of my knowledge, the results contained herein have
been prepared in accordance with generally accepted actuarial principles
and procedures and with the Actuarial Standards of Practice issued by
the Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2021-53 dated June 17,
2021 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 2021 Legislative Session.