NY State Senate Bill 2025-S8160

Senate Bill S8160

2025-2026 Legislative Session

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

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Current Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 15, 2025	referred to civil service and pensions

2025-S8160 (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:: 2021-2022: S6835
2023-2024: S6307

2025-S8160 (ACTIVE) - Summary

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

2025-S8160 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8160

SPONSOR: JACKSON
 
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:

To provide a cost-of-living adjustment for members of retirement systems
by increasing the base benefit amount for computation to $21,000. The
bill also eliminates the 50% of the allowed rate of inflation require-
ment for prior cost-of-living payments, while maintaining the overall 3%
inflation cap.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivisions c and d of Section 78-A 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-ofliving 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, not to exceed 3%.

Section 2 amends subdivisions c and d of Section 378-A 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-ofliving 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, not to exceed 3%.

Section 3 amends subdivisions c and d of Section 532-A 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;thei p'ne year period ending on the prior March
31st, rather than 50% of the rate, not to exceed 3%.

Section 4 states that none of the provisions of this act shall be
subject to Section 25 of the Retirement and Social Security Law.

Section 5 is the effective date.

 
JUSTIFICATION:

Various provisions of the Retirement and Social Security Law and Educa-
tion Law provide for a cost-of-living adjustment for retirement plans
applicable to members of public retirement systems. A cost-ofliving
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 recipi-
ents of an accidental death benefit 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.

When the pension Cost of Living Adjustment (COLA) was enacted 24 years
ago, it was never a true COLA. The legislation authorized only a 50%
COLA, never to be less than 1%, nor higher than 3%. As inflation rose by
more than 50% over the past two decades, the purchasing power of the
COLA fell further and further behind. Only one time in 24 years did the
COLA actually reach 3%. That was just last year, when the rate of
inflation rose to 9%. Now is the time to address this inequity.

This bill raises the maximum pension amount the COLA is applied against,
going from $18,000 to $21,000 for current and future retirees. This is a
modest increase to the amount that was authorized 23 years ago ($18,000
in 2000 is the equivalent of nearly $32,000 today). It was never envi-
sioned when the COLA was enacted, that the dollar threshold cited in the
bill would remain in perpetuity. The 50% of the rate of inflation factor
remains in effect going forward, to further safeguard the financial
well-being of the respective funds.

Additionally, the bill includes a one-time "catch up" payment (the
difference between 50% COLA and the 3% cap) to current COLA eligible
retirees to better reflect the actual rate of inflation since the enact-
ment of the COLA. The 3% annual cap and the five-year waiting period
remain in place, in order to protect the integrity of the respective
funds. The "catch up" applies to prior years only. The major benefici-
aries of this bill would be older retirees with smaller pensions, due to
the fact that salaries were much lower 20 -30 years ago. It is important
to note that 24% of retirees in the State and Local Retirement System
receive a pension under $10,000, and 43% have a pension under $20,000.

The enactment of this legislation will provide a modest increase to
current and future retirees. The rigid parameters of the current COLA
formula prevents retirees, especially older retirees with smaller
pensions, from attaining the financial stability needed in the current
economic environment. Twenty-three years is a long time to wait for a
raise. That time has come.

 
LEGISLATIVE HISTORY:

2023-2024: S.6307-A - Amend and Recommit to Civil Service and
Pensions/A.7023-A - Amend and Recommit to Governmental Employees

2021-2022: S.6835-C - Amend and Recommit to Civil Service and Pensions

 
STATE AND LOCAL FISCAL IMPLICATIONS:

See fiscal note.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S8160 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8160
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2025
                                ___________
 
 Introduced  by  Sen. JACKSON -- 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. 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]  (I) IN CALENDAR YEARS TWO THOUSAND THREE THROUGH TWO THOU-
 SAND TWENTY-FIVE, SAID cost-of-living adjustment shall be computed on  a
 base benefit amount not to exceed eighteen thousand dollars of the annu-
 al retirement allowance defined in subdivision b of this section.
   (II)  IN  CALENDAR  YEAR  TWO THOUSAND TWENTY-SIX AND THEREAFTER, SAID
 COST-OF-LIVING ADJUSTMENT SHALL BE COMPUTED ON A BASE BENEFIT AMOUNT NOT
 TO EXCEED TWENTY-ONE THOUSAND DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE
 DEFINED IN SUBDIVISION B OF THIS SECTION, EXCEPT THAT EFFECTIVE  ON  THE
 FIRST  DAY  OF  SEPTEMBER,  TWO  THOUSAND TWENTY-SIX, 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] (I) IN
 CALENDAR YEARS TWO THOUSAND THREE THROUGH TWO THOUSAND TWENTY-FOUR, SAID
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11214-01-5

 S. 8160                             2
 
 PERCENTAGE 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 NEXT SUCCEEDING SEPTEMBER FIRST.
   (II)  IN  CALENDAR  YEAR TWO THOUSAND TWENTY-FIVE AND THEREAFTER, 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 TWEN-
 TY-SIX, THE COST-OF-LIVING ADJUSTMENTS PAID BETWEEN  THE  FIRST  DAY  OF
 SEPTEMBER,  TWO THOUSAND THREE AND THE FIRST DAY OF SEPTEMBER, TWO THOU-
 SAND  TWENTY-FOUR  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-SIX, 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-SIX,
 THE COST-OF-LIVING ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF  SEPTEMBER,
 TWO  THOUSAND THREE AND THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-
 THREE SHALL EQUAL ONE HUNDRED PERCENT OF THE ANNUAL INFLATION, AS DETER-
 MINED 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-SIX,  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.
 S. 8160                             3
 
   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-SIX,
 THE  COST-OF-LIVING ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF SEPTEMBER,
 TWO THOUSAND THREE AND THE FIRST DAY OF SEPTEMBER, TWO THOUSAND  TWENTY-
 FOUR  SHALL EQUAL ONE HUNDRED PERCENT OF THE ANNUAL INFLATION, AS DETER-
 MINED 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 September 1, 2026; provided, however,
 that no benefits payable prior to the first day of September  two  thou-
 sand twenty-five shall be affected by this act.

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