Bill Text: NY A09427 | 2021-2022 | General Assembly | Introduced
Bill Title: Provides increases of cost-of-living adjustments for public retirees; allows increases of up to five percent.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2022-05-10 - held for consideration in governmental employees [A09427 Detail]
Download: New_York-2021-A09427-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9427 IN ASSEMBLY March 7, 2022 ___________ Introduced by M. of A. DeSTEFANO -- read once and referred to the Committee on Governmental Employees 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: 1 Section 1. Subdivision d of section 78-a of the retirement and social 2 security law, as added by chapter 125 of the laws of 2000, is amended to 3 read as follows: 4 d. The percentage referred to in this section shall be determined 5 annually by reference to the consumer price index (all urban consumers, 6 CPI-U, U.S. city average, all items, 1982-84=100), published by the 7 United States bureau of labor statistics, for each applicable calendar 8 year. Said percentage shall equal fifty percent of the annual inflation, 9 as determined from the increase in the consumer price index in the one 10 year period ending on the March thirty-first prior to the cost-of-living 11 adjustment effective on the ensuing September first. Said percentage 12 shall then be rounded up to the next higher one-tenth of one percent and 13 shall not exceed three percent nor be less than one percent and effec- 14 tive the first day of September, two thousand twenty-two, shall not 15 exceed five percent nor be less than one percent. 16 § 2. Subdivision d of section 378-a of the retirement and social secu- 17 rity law, as added by chapter 125 of the laws of 2000, is amended to 18 read as follows: 19 d. The percentage referred to in this section shall be determined 20 annually by reference to the consumer price index (all urban consumers, 21 CPI-U, U.S. city average, all items, 1982-84=100), published by the 22 United States bureau of labor statistics, for each applicable calendar 23 year. Said percentage shall equal fifty percent of the annual inflation, 24 as determined from the increase in the consumer price index in the one 25 year period ending on the March thirty-first prior to the cost-of-living 26 adjustment effective on the ensuing September first. Said percentage 27 shall then be rounded up to the next higher one-tenth of one percent and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10498-08-2A. 9427 2 1 shall not exceed three percent nor be less than one percent and effec- 2 tive the first day of September, two thousand twenty-two, shall not 3 exceed five percent nor be less than one percent. 4 § 3. Subdivision d of section 532-a of the education law, as added by 5 chapter 125 of the laws of 2000, is amended to read as follows: 6 d. The percentage referred to in this section shall be determined 7 annually by reference to the consumer price index (all urban consumers, 8 CPI-U, U.S. city average, all items, 1982-84=100), published by the 9 United States bureau of labor statistics, for each applicable calendar 10 year. Said percentage shall equal fifty percent of the annual inflation, 11 as determined from the increase in the consumer price index in the one 12 year period ending on the March thirty-first prior to the cost-of-living 13 adjustment effective on the ensuing September first. Said percentage 14 shall then be rounded up to the next higher one-tenth of one percent and 15 shall not exceed three percent nor be less than one percent and effec- 16 tive the first day of September, two thousand twenty-two, shall not 17 exceed five percent nor be less than one percent. 18 § 4. Subdivision d of section 13-696 of the administrative code of the 19 city of New York, as added by chapter 125 of the laws of 2000, is 20 amended to read as follows: 21 d. The percentage referred to in this section shall be determined 22 annually by reference to the consumer price index (all urban consumers, 23 CPI-U, U.S. city average, all items, 1982-84=100), published by the 24 United States bureau of labor statistics, for each applicable calendar 25 year. Said percentage shall equal fifty percent of the annual inflation, 26 as determined from the increase in the consumer price index in the one 27 year period ending on the March thirty-first prior to the cost-of-living 28 adjustment effective on the ensuing September first. Said percentage 29 shall then be rounded up to the next higher one-tenth of one percent and 30 shall not exceed three percent nor be less than one percent and effec- 31 tive the first day of September, two thousand twenty-two, shall not 32 exceed five percent nor be less than one percent. 33 § 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 2022 the maximum percentage calculated for the annual cost of living increase shall increase from three (3) percent to five (5) percent. Insofar as this bill affects the New York State and Local Employees' Retirement System, if this bill is enacted, 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. Such an appropriation would be required only when the annual inflation exceeds 6%. Insofar as this bill affects the New York State and Local Police and Fire Retirement System (PFRS), if this bill is enacted, the increased costs would be shared by the State of New York and all of the partic- ipating employers in the PFRS. Additional employer contributions would be required only when the annual inflation exceeds 6%. 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 theA. 9427 3 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 December 23, 2021, and intended for use only during the 2022 Legislative Session, is Fiscal Note No. 2022-36, prepared by the Actuary for the New York State and Local Retirement System.
