Senate Bill S6835C

2021-2022 Legislative Session

Relates to increasing the base benefit amount for computation of pension cost-of-living adjustments

download bill text pdf

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 13, 2022	print number 6835c
Jun 13, 2022	amend and recommit to civil service and pensions
Jan 12, 2022	print number 6835b
Jan 12, 2022	amend and recommit to civil service and pensions
Jan 05, 2022	referred to civil service and pensions
Jun 03, 2021	print number 6835a
Jun 03, 2021	amend and recommit to civil service and pensions
May 19, 2021	referred to civil service and pensions

Bill Amendments

Original

C (Active)

2021-S6835 - 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
Versions Introduced in Other Legislative Sessions:: 2023-2024: S6307
2025-2026: S8160

2021-S6835 - Summary

Increases the base benefit amount for computation of pension cost-of-living adjustments.

2021-S6835 - Sponsor Memo

                                
 
BILL NUMBER: S6835

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the retirement and social security law and the education
law, in relation to increasing the base benefit amount for computation
of pension cost-of-living adjustments

 
PURPOSE OR GENERAL IDEA OF BILL:

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 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 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 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 sets the effective date.

 
JUSTIFICATION:

Retirement and Social Security and Education Law provide for a cost-of-
living adjustment for retirement plans applicable to members of public
retirement systems. 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 bene-
fit regardless of age who have been receiving such benefit for five
years. The cost-of-living adjustment is currently computed on a base
benefit amount not to exceed $18,000 of the annual retirement allowance.
This legislation would increase the base benefit amount to $21,000 from
the current annual retirement allowance of $18,000.

Since the creation of the COLA, incomes of active employees have
increased. However, the base benefit amount has not increased since the
codification of the COLA. This means that the COLA does not allow a
retiree to keep up with the increased costs of medical care, energy, and
other daily costs of living, which are rising at a fast pace. The
increase proposed in this legislation will allow public sector retirees
to have a secure and dignified retirement.

 
PRIOR LEGISLATIVE HISTORY:

2020: A7373 Abbate - Referred to Governmental Employees

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:
Immediate

2021-S6835 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6835
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2021
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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 and the education
   law, in relation to increasing the base benefit amount for computation
   of pension 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, EXCEPT THAT EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-TWO,  THE  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, EXCEPT  THAT  EFFEC-
 TIVE  ON  THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-TWO, THE 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:
   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.

                                                            LBD11429-03-1

 S. 6835                             2
 
 allowance  defined  in subdivision b of this section, EXCEPT THAT EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-TWO,  THE  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. 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  the New York State and Local Retirement
 System and the New York State Teachers'  Retirement  System.    Starting
 with  a  payment in September 2022, the annual cost of living adjustment
 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 $1.06 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 $145 million. The estimated first year cost would
 be approximately $3.1 million to the State of New York and approximately
 $13 million to the participating employers in the PFRS.
   Summary of relevant resources:
   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 May 18, 2021, and intended for  use  only  during
 the  2021  Legislative Session, is Fiscal Note No. 2021-146, prepared by
 the Actuary for the New York State and Local Retirement System.

co-Sponsors

2021-S6835A - 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
Versions Introduced in Other Legislative Sessions:: 2023-2024: S6307
2025-2026: S8160

2021-S6835A - Summary

Increases the base benefit amount for computation of pension cost-of-living adjustments.

2021-S6835A - Sponsor Memo

                                 
BILL NUMBER: S6835A

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the retirement and social security law and the education
law, in relation to increasing the base benefit amount for computation
of pension cost-of-living adjustments

 
PURPOSE OR GENERAL IDEA OF BILL:

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 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 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 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 sets the effective date.

 
JUSTIFICATION:

Retirement and Social Security and Education Law provide for a cost-of-
living adjustment for retirement plans applicable to members of public
retirement systems. 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 bene-
fit regardless of age who have been receiving such benefit for five
years. The cost-of-living adjustment is currently computed on a base
benefit amount not to exceed $18,000 of the annual retirement allowance.
This legislation would increase the base benefit amount to $21,000 from
the current annual retirement allowance of $18,000.

Since the creation of the COLA, incomes of active employees have
increased. However, the base benefit amount has not increased since the
codification of the COLA. This means that the COLA does not allow a
retiree to keep up with the increased costs of medical care, energy, and
other daily costs of living, which are rising at a fast pace. The
increase proposed in this legislation will allow public sector retirees
to have a secure and dignified retirement.

 
PRIOR LEGISLATIVE HISTORY:

2021: S6835A - Referred to Civil Service & Pensions

2020: A7373 Abbate - Referred to Governmental Employees

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:
Immediate

2021-S6835A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6835--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2021
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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 and the education
   law, in relation to increasing the base benefit amount for computation
   of pension 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, EXCEPT  THAT  EFFEC-
 TIVE  ON  THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-TWO, THE 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, EXCEPT THAT EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-TWO,  THE  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.

                                                            LBD11429-04-1

 S. 6835--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, EXCEPT  THAT  EFFEC-
 TIVE  ON  THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-TWO, THE 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. 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 the New York  State  and  Local  Retirement
 System  and  the  New  York State Teachers' Retirement System.  Starting
 with a payment in September 2022, the annual cost of  living  adjustment
 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 $1.06 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 $145 million. The estimated first year cost would
 be approximately $3.1 million to the State of New York and approximately
 $13 million to the participating employers in the PFRS.
   Summary of relevant resources:
   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  May 18, 2021, and intended for use only during
 the 2021 Legislative Session, is Fiscal Note No. 2021-146,  prepared  by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill (legislative bill draft 11429-02-1) would amend subdivision
 c of Section 532-a of the Education Law to prospectively apply the cost-
 of-living adjustment (COLA) percentage to a base benefit amount  not  to
 exceed  $21,000  of the annual retirement allowance.  The current cap on
 the annual base benefit amount  is  $18,000.  This  benefit  improvement
 would be effective in September 2022.

 S. 6835--A                          3
 
   The  annual  cost  to  the  employers of members of the New York State
 Teachers' Retirement System for this benefit is estimated  to  be  $83.1
 million or .48% 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
 Annual Report. System assets are as reported in the  System's  financial
 statements, and can also be found in the System's Annual Report. Actuar-
 ial assumptions and methods are provided in the System's Actuarial Valu-
 ation Report.
   The  source of this estimate is Fiscal Note 2021-54 dated June 2, 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.

co-Sponsors

View additional co-sponsors

2021-S6835B - 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
Versions Introduced in Other Legislative Sessions:: 2023-2024: S6307
2025-2026: S8160

2021-S6835B - Summary

Increases the base benefit amount for computation of pension cost-of-living adjustments.

2021-S6835B - Sponsor Memo

                                 
BILL NUMBER: S6835B

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the retirement and social security law and the education
law, in relation to increasing the base benefit amount for computation
of pension cost-of-living adjustments

 
PURPOSE OR GENERAL IDEA OF BILL:

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 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  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 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 sets the effective date.

 
JUSTIFICATION:

Retirement and Social Security and Education Law provide for a  cost-of-
living  adjustment  for retirement plans applicable to members of public
retirement systems.  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 bene-
fit regardless of age who have been  receiving  such  benefit  for  five
years.  The  cost-of-living  adjustment  is currently computed on a base
benefit amount not to exceed $18,000 of the annual retirement allowance.
This legislation would increase the base benefit amount to $21,000  from
the current annual retirement allowance of $18,000.

Since  the  creation  of  the  COLA,  incomes  of  active employees have
increased. However, the base benefit amount has not increased since  the
codification  of  the  COLA.  This  means that the COLA does not allow a
retiree to keep up with the increased costs of medical care, energy, and
other daily costs of living, which  are  rising  at  a  fast  pace.  The
increase  proposed in this legislation will allow public sector retirees
to have a secure and dignified retirement.

 
PRIOR LEGISLATIVE HISTORY:

2021: S6835A - Referred to Civil Service & Pensions

2020: A7373 Abbate - Referred to Governmental Employees

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:
Immediate

2021-S6835B - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6835--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2021
                                ___________
 
 Introduced  by  Sens.  GOUNARDES,  BRISPORT,  SKOUFIS  -- 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  --
   recommitted  to the Committee on Civil Service and Pensions in accord-
   ance with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the retirement and social security law and the education
   law, in relation to increasing the base benefit amount for computation
   of pension 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, EXCEPT  THAT  EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-THREE, THE 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, EXCEPT  THAT  EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-THREE, THE COST-
 OF-LIVING  ADJUSTMENT  SHALL BE COMPUTED ON A BASE BENEFIT AMOUNT NOT TO

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11429-06-2
 S. 6835--B                          2

 
 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:
   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, EXCEPT  THAT  EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-THREE, THE 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. 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 2023, 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 during the 2022
 legislative session, the increase in the present value of benefits would
 be approximately $1.40 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 during the 2022 legislative session, the increase
 in the present value of benefits would be  approximately  $196  million.
 The estimated first year cost would be approximately $3.9 million to the
 State  of  New  York  and approximately $15 million to the participating
 employers in the PFRS.
   Summary of relevant resources:
   Membership data as of March 31, 2021 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2021 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2021 Report of the Actuary and the 2021 Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2020
 and 2021 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, 2021
 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 January 4, 2022, and intended for use only during
 the  2022  Legislative  Session, is Fiscal Note No. 2022-41, prepared by
 the Actuary for the New York State and Local Retirement System.

co-Sponsors

View additional co-sponsors

2021-S6835C (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
Versions Introduced in Other Legislative Sessions:: 2023-2024: S6307
2025-2026: S8160

2021-S6835C (ACTIVE) - Summary

Increases the base benefit amount for computation of pension cost-of-living adjustments.

2021-S6835C (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6835C

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the retirement and social security law and the education
law, in relation to increasing the base benefit amount for computation
of pension cost-of-living adjustments

 
PURPOSE OR GENERAL IDEA OF BILL:

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 the cost of living adjustment shall be computed on a base
benefit amount not to exceed $21,000 of the annual retirement allowance.
Additionally, the cost of living adjustment for years 2001 through 2021
shall equal 100% of the rate of inflation, as determined from the CPI
increase in the one year period ending on the prior March 31st, rather

than 50% of the rate.

Section 2 amends § 378-a(c) of the Retirement and Social Security Law to
provide that the cost of living adjustment shall be computed on a base
benefit amount not to exceed $21,000 of the annual retirement allowance.
Additionally, the cost of living adjustment for years 2001 through 2021
shall equal 100% of the rate of inflation, as determined from the CPI
increase in the one year period ending on the prior March 31st, rather
than 50% of the rate.

Section 3 amends § 532-a(c) of the Education Law to provide that the
cost of living adjustment shall be computed on a base benefit amount not
to exceed $21,000 of the annual retirement allowance.  Additionally, the
cost of living adjustment for years 2001 through 2021 shall equal 100%
of the rate of inflation, as determined from the CPI increase in the one
year period ending on the prior March 31st, rather than 50% of the rate.

Section 4 provides that the provisions of this act shall not be subject
to section 25 of the Retirement and Social Security Law.

Section 5 sets the effective date.

 
JUSTIFICATION:

Retirement and Social Security Law and Education Law provide for a cost-
of-living adjustment for retirement plans applicable to members of
public retirement systems. 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 bene-
fit regardless of age who have been receiving such benefit for five
years. The cost-of-living adjustment is currently computed on a base
benefit amount not to exceed $18,000 of the annual retirement allowance.
This legislation would increase the base benefit amount to $21,000 from
the current annual retirement allowance of $18,000.

Since the creation of the COLA, incomes of active employees have
increased. However, the base benefit amount has not increased since the
codification of the COLA. This means that the COLA does not allow a
retiree to keep up with the increased costs of medical care, energy, and
other daily costs of living, which are rising at a fast pace. The
increase proposed in this legislation will allow public sector retirees
to have a secure and dignified retirement.

 
PRIOR LEGISLATIVE HISTORY:

2022: S6835B - Referred to Civil Service & Pensions

2021: S6835A - Referred to Civil Service & Pensions

2020: A7373 Abbate - Referred to Governmental Employees

 
FISCAL IMPLICATIONS:

See bill

 
EFFECTIVE DATE:
Immediate

2021-S6835C (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6835--C
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 19, 2021
                                ___________
 
 Introduced  by  Sens.  GOUNARDES, BRISPORT, KAMINSKY, MARTUCCI, PALUMBO,
   SKOUFIS -- 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 -- 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  committee  --  committee  discharged,  bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the retirement and social security law and the education
   law, in relation to increasing the base benefit amount for computation
   of pension cost-of-living adjustments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivisions c and d of section 78-a of the retirement and
 social security law, as added by chapter 125 of the laws  of  2000,  are
 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, EXCEPT THAT EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-THREE, THE 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.
   d. The percentage referred to in  this  section  shall  be  determined
 annually  by reference to the 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, for each applicable calendar
 year. Said percentage shall equal fifty percent of the annual inflation,
 as determined from the increase in the consumer price index in  the  one
 year period ending on the March thirty-first prior to the cost-of-living
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11429-08-2

 S. 6835--C                          2
 
 adjustment  effective  on  the  ensuing September first. Said percentage
 shall then be rounded up to the next higher one-tenth of one percent and
 shall not exceed three percent nor be  less  than  one  percent,  EXCEPT
 THAT,  COMMENCING THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-THREE,
 THE COST-OF-LIVING ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF  SEPTEMBER,
 TWO THOUSAND ONE AND THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-ONE
 SHALL  EQUAL  ONE HUNDRED PERCENT OF THE ANNUAL INFLATION, AS DETERMINED
 FROM THE INCREASE IN THE CONSUMER PRICE INDEX IN  THE  ONE  YEAR  PERIOD
 ENDING  ON THE MARCH THIRTY-FIRST PRIOR TO THE COST-OF-LIVING ADJUSTMENT
 EFFECTIVE ON THE ENSUING SEPTEMBER FIRST. SAID PERCENTAGE SHALL THEN  BE
 ROUNDED  UP  TO  THE  NEXT HIGHER ONE-TENTH OF ONE PERCENT AND SHALL NOT
 EXCEED THREE PERCENT NOR BE LESS THAN ONE PERCENT.
   § 2. Subdivisions c and d of  section  378-a  of  the  retirement  and
 social  security  law,  as added by chapter 125 of the laws of 2000, are
 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, EXCEPT THAT,  EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-THREE, THE 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.
   d.  The  percentage  referred  to  in this section shall be determined
 annually by reference to the 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, for each  applicable  calendar
 year. Said percentage shall equal fifty percent of the annual inflation,
 as  determined  from the increase in the consumer price index in the one
 year period ending on the March thirty-first prior to the cost-of-living
 adjustment effective on the ensuing  September  first.  Said  percentage
 shall then be rounded up to the next higher one-tenth of one percent and
 shall  not  exceed  three  percent  nor be less than one percent, EXCEPT
 THAT, COMMENCING THE FIRST DAY OF SEPTEMBER, TWO THOUSAND  TWENTY-THREE,
 THE  COST-OF-LIVING ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF SEPTEMBER,
 TWO THOUSAND ONE AND THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-ONE
 SHALL EQUAL ONE HUNDRED PERCENT OF THE ANNUAL INFLATION,  AS  DETERMINED
 FROM  THE  INCREASE  IN  THE CONSUMER PRICE INDEX IN THE ONE YEAR PERIOD
 ENDING ON THE MARCH THIRTY-FIRST PRIOR TO THE COST-OF-LIVING  ADJUSTMENT
 EFFECTIVE  ON THE ENSUING SEPTEMBER FIRST. SAID PERCENTAGE SHALL THEN BE
 ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF ONE  PERCENT  AND  SHALL  NOT
 EXCEED THREE PERCENT NOR BE LESS THAN ONE PERCENT.
   §  3.  Subdivisions  c and d of section 532-a of the education law, as
 added by chapter 125 of the  laws  of  2000,  are  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, EXCEPT THAT EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-THREE, THE 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.
   d. The percentage referred to in  this  section  shall  be  determined
 annually  by reference to the 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, for each applicable calendar
 year. Said percentage shall equal fifty percent of the annual inflation,
 S. 6835--C                          3
 
 as determined from the increase in the consumer price index in  the  one
 year period ending on the March thirty-first prior to the cost-of-living
 adjustment  effective  on  the  ensuing September first. Said percentage
 shall then be rounded up to the next higher one-tenth of one percent and
 shall  not  exceed  three  percent  nor be less than one percent, EXCEPT
 THAT, COMMENCING THE FIRST DAY OF SEPTEMBER, TWO THOUSAND  TWENTY-THREE,
 THE  COST-OF-LIVING ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF SEPTEMBER,
 TWO THOUSAND ONE AND THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-ONE
 SHALL EQUAL ONE HUNDRED PERCENT OF THE ANNUAL INFLATION,  AS  DETERMINED
 FROM  THE  INCREASE  IN  THE CONSUMER PRICE INDEX IN THE ONE YEAR PERIOD
 ENDING ON THE MARCH THIRTY-FIRST PRIOR TO THE COST-OF-LIVING  ADJUSTMENT
 EFFECTIVE  ON THE ENSUING SEPTEMBER FIRST. SAID PERCENTAGE SHALL THEN BE
 ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF ONE  PERCENT  AND  SHALL  NOT
 EXCEED THREE PERCENT NOR BE LESS THAN ONE PERCENT.
   §  4. Notwithstanding any other provision of law to the contrary, none
 of the provisions of this act shall be subject  to  section  25  of  the
 retirement and social security law.
   § 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 the New York  State  and  Local  Retirement
 System and the New York State Teachers' Retirement System. Starting with
 a  payment  in September 2023, the annual cost of living adjustment will
 be computed on a base  benefit  amount  not  to  exceed  $21,000.  Addi-
 tionally, the COLA payments made from 2001 to 2021 will be recomputed as
 one  hundred  percent  of the annual inflation, increased from the fifty
 percent of the annual inflation that was used in the calculation for the
 COLA payments over that period.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System (NYSLERS), the increased costs would be shared by the
 State of New York and the participating employers  in  the  NYSLERS.  If
 this bill were enacted during the 2022 legislative session, the increase
 in  the  present value of benefits would be approximately $2.26 billion.
 The estimated first year cost would be approximately $103 million to the
 State of New York and approximately $146 million  to  the  participating
 employers in the NYSLERS.
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), the increased costs would  be  shared
 by  the  State  of  New  York  and  the  participating  employers in the
 NYSLPFRS. If this bill were enacted during the 2022 legislative session,
 the increase in the present value of  benefits  would  be  approximately
 $268 million. The estimated first year cost would be approximately $5.51
 million  to the State of New York and approximately $21.2 million to the
 participating employers in the NYSLPFRS.
   In addition to the costs discussed above, implementing the  provisions
 of this legislation would generate administrative costs.
   Summary of relevant resources:
   Membership  data as of March 31, 2021 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2021 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2021  Report  of the Actuary and the 2021 Comprehensive Annual Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2020
 and  2021 Annual Report to the Comptroller on Actuarial Assumptions, and
 the Codes, Rules and Regulations of the State of  New  York:  Audit  and
 Control.
 S. 6835--C                          4
 
   The Market Assets and GASB Disclosures are found in the March 31, 2021
 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  May 27, 2022, and intended for use only during
 the 2022 Legislative Session, is Fiscal Note No. 2022-155,  prepared  by
 the Actuary for the New York State and Local Retirement System.

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Senate Bill S6835C

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

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2021-S6835C (ACTIVE) - Bill Text download pdf

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

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