STATE OF NEW YORK
________________________________________________________________________
6988
2021-2022 Regular Sessions
IN ASSEMBLY
April 19, 2021
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees
AN ACT to amend the retirement and social security law and the education
law, in relation to member contribution per centum increases
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Paragraphs 1, 2, 3, 4 and 5 of subdivision a of section 517
2 of the retirement and social security law, as added by chapter 18 of the
3 laws of 2012, are amended to read as follows:
4 1. members with wages of forty-five thousand dollars per annum or less
5 shall contribute three per centum of annual wages. On April one, two
6 thousand twenty-two, and every year thereafter, the wages in this
7 subparagraph shall be increased by three per centum;
8 2. members with wages greater than forty-five thousand per annum, but
9 not more than fifty-five thousand per annum shall contribute three and
10 one-half per centum of annual wages. On April one, two thousand twenty-
11 two, and every year thereafter, the wages in this subparagraph shall be
12 increased by three per centum;
13 3. members with wages greater than fifty-five thousand per annum, but
14 not more than seventy-five thousand per annum shall contribute four and
15 one-half per centum of annual wages. On April one, two thousand twenty-
16 two, and every year thereafter, the wages in this subparagraph shall be
17 increased by three per centum;
18 4. members with wages greater than seventy-five thousand per annum but
19 not more than one hundred thousand per annum shall contribute five and
20 three-quarters per centum of annual wages. On April one, two thousand
21 twenty-two, and every year thereafter, the wages in this subparagraph
22 shall be increased by three per centum; and
23 5. members with wages greater than one hundred thousand per annum
24 shall contribute six per centum of annual wages. On April one, two thou-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03552-02-1
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1 sand twenty-two, and every year thereafter, the wages in this subpara-
2 graph shall be increased by three per centum.
3 § 2. Subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph 1 of
4 subdivision a, subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph
5 2 of subdivision a, paragraphs 1, 2, 3, 4 and 5 of subdivision f and
6 paragraphs 1, 2, 3, 4 and 5 of subdivision g of section 613 of the
7 retirement and social security law, subparagraphs (i), (ii), (iii), (iv)
8 and (v) of paragraph 1 and subparagraphs (i), (ii), (iii), (iv) and (v)
9 of paragraph 2 of subdivision a as amended by chapter 510 of the laws of
10 2015 and paragraphs 1, 2, 3, 4 and 5 of subdivision f and paragraphs 1,
11 2, 3, 4 and 5 of subdivision g as added by chapter 18 of the laws of
12 2012, are amended to read as follows:
13 (i) members with wages of forty-five thousand dollars per annum or
14 less shall contribute three per centum of annual wages. On April one,
15 two thousand twenty-two, and every year thereafter, the wages in this
16 subparagraph shall be increased by three per centum;
17 (ii) members with wages greater than forty-five thousand per annum,
18 but not more than fifty-five thousand per annum shall contribute three
19 and one-half per centum of annual wages. On April one, two thousand
20 twenty-two, and every year thereafter, the wages in this subparagraph
21 shall be increased by three per centum;
22 (iii) members with wages greater than fifty-five thousand per annum,
23 but not more than seventy-five thousand per annum shall contribute four
24 and one-half per centum of annual wages. On April one, two thousand
25 twenty-two, and every year thereafter, the wages in this subparagraph
26 shall be increased by three per centum;
27 (iv) members with wages greater than seventy-five thousand per annum
28 but not more than one hundred thousand per annum shall contribute five
29 and three-quarters per centum of annual wages. On April one, two thou-
30 sand twenty-two, and every year thereafter, the wages in this subpara-
31 graph shall be increased by three per centum; and
32 (v) members with wages greater than one hundred thousand per annum
33 shall contribute six per centum of annual wages. On April one, two thou-
34 sand twenty-two, and every year thereafter, the wages in this subpara-
35 graph shall be increased by three per centum.
36 (i) members with wages of forty-five thousand dollars per annum or
37 less shall contribute three per centum of annual wages. On April one,
38 two thousand twenty-two, and every year thereafter, the wages in this
39 subparagraph shall be increased by three per centum;
40 (ii) members with wages greater than forty-five thousand per annum,
41 but not more than fifty-five thousand per annum shall contribute three
42 and one-half per centum of annual wages. On April one, two thousand
43 twenty-two, and every year thereafter, the wages in this subparagraph
44 shall be increased by three per centum;
45 (iii) members with wages greater than fifty-five thousand per annum,
46 but not more than seventy-five thousand per annum shall contribute four
47 and one-half per centum of annual wages. On April one, two thousand
48 twenty-two, and every year thereafter, the wages in this subparagraph
49 shall be increased by three per centum;
50 (iv) members with wages greater than seventy-five thousand per annum
51 but not more than one hundred thousand per annum shall contribute five
52 and three-quarters per centum of annual wages. On April one, two thou-
53 sand twenty-two, and every year thereafter, the wages in this subpara-
54 graph shall be increased by three per centum; and
55 (v) members with wages greater than one hundred thousand per annum
56 shall contribute six per centum of annual wages. On April one, two thou-
A. 6988 3
1 sand twenty-two, and every year thereafter, the wages in this subpara-
2 graph shall be increased by three per centum.
3 1. members with wages of forty-five thousand dollars per annum or less
4 shall contribute three per centum of annual wages. On April one, two
5 thousand twenty-two, and every year thereafter, the wages in this
6 subparagraph shall be increased by three per centum;
7 2. members with wages greater than forty-five thousand per annum, but
8 not more than fifty-five thousand per annum shall contribute three and
9 one-half per centum of annual wages. On April one, two thousand twenty-
10 two, and every year thereafter, the wages in this subparagraph shall be
11 increased by three per centum;
12 3. members with wages greater than fifty-five thousand per annum, but
13 not more than seventy-five thousand per annum shall contribute four and
14 one-half per centum of annual wages. On April one, two thousand twenty-
15 two, and every year thereafter, the wages in this subparagraph shall be
16 increased by three per centum;
17 4. members with wages greater than seventy-five thousand per annum but
18 not more than one hundred thousand per annum shall contribute five and
19 three-quarters per centum of annual wages. On April one, two thousand
20 twenty-two, and every year thereafter, the wages in this subparagraph
21 shall be increased by three per centum; and
22 5. members with wages greater than one hundred thousand per annum
23 shall contribute six per centum of annual wages. On April one, two thou-
24 sand twenty-two, and every year thereafter, the wages in this subpara-
25 graph shall be increased by three per centum.
26 1. members with wages of forty-five thousand dollars per annum or less
27 shall contribute three per centum of annual wages. On July one, two
28 thousand twenty-two, and every year thereafter, the wages in this
29 subparagraph shall be increased by three per centum;
30 2. members with wages greater than forty-five thousand per annum, but
31 not more than fifty-five thousand per annum shall contribute three and
32 one-half per centum of annual wages. On July one, two thousand twenty-
33 two, and every year thereafter, the wages in this subparagraph shall be
34 increased by three per centum;
35 3. members with wages greater than fifty-five thousand per annum, but
36 not more than seventy-five thousand per annum shall contribute four and
37 one-half per centum of annual wages. On July one, two thousand twenty-
38 two, and every year thereafter, the wages in this subparagraph shall be
39 increased by three per centum;
40 4. members with wages greater than seventy-five thousand per annum but
41 not more than one hundred thousand per annum shall contribute five and
42 three-quarters per centum of annual wages. On July one, two thousand
43 twenty-two, and every year thereafter, the wages in this subparagraph
44 shall be increased by three per centum; and
45 5. members with wages greater than one hundred thousand per annum
46 shall contribute six per centum of annual wages. On July one, two thou-
47 sand twenty-two, and every year thereafter, the wages in this subpara-
48 graph shall be increased by three per centum.
49 § 3. Subdivisions a, b, c, d and e of section 1204 of the retirement
50 and social security law, as added by chapter 18 of the laws of 2012, are
51 amended to read as follows:
52 a. members with wages of forty-five thousand dollars per annum or less
53 shall contribute three per centum of annual wages. On April one, two
54 thousand twenty-two, and every year thereafter, the wages in this subdi-
55 vision shall be increased by three per centum;
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1 b. members with wages greater than forty-five thousand per annum, but
2 not more than fifty-five thousand per annum shall contribute three and
3 one-half per centum of annual wages. On April one, two thousand twenty-
4 two, and every year thereafter, the wages in this subdivision shall be
5 increased by three per centum;
6 c. members with wages greater than fifty-five thousand per annum, but
7 not more than seventy-five thousand per annum shall contribute four and
8 one-half per centum of annual wages. On April one, two thousand twenty-
9 two, and every year thereafter, the wages in this subdivision shall be
10 increased by three per centum;
11 d. members with wages greater than seventy-five thousand per annum but
12 not more than one hundred thousand per annum shall contribute five and
13 three-quarters per centum of annual wages. On April one, two thousand
14 twenty-two, and every year thereafter, the wages in this subdivision
15 shall be increased by three per centum; and
16 e. members with wages greater than one hundred thousand per annum
17 shall contribute six per centum of annual wages. On April one, two thou-
18 sand twenty-two, and every year thereafter, the wages in this subdivi-
19 sion shall be increased by three per centum.
20 § 4. Paragraphs (a), (b), (c), (d) and (e) of subdivision 2 of section
21 182 of the education law, as added by chapter 18 of the laws of 2012,
22 are amended to read as follows:
23 (a) members with wages of forty-five thousand dollars per annum or
24 less shall contribute three per centum of annual wages. On April one,
25 two thousand twenty-two, and every year thereafter, the wages in this
26 paragraph shall be increased by three per centum;
27 (b) members with wages greater than forty-five thousand per annum, but
28 not more than fifty-five thousand per annum shall contribute three and
29 one-half per centum of annual wages. On April one, two thousand twenty-
30 two, and every year thereafter, the wages in this paragraph shall be
31 increased by three per centum;
32 (c) members with wages greater than fifty-five thousand per annum, but
33 not more than seventy-five thousand per annum shall contribute four and
34 one-half per centum of annual wages. On April one, two thousand twenty-
35 two, and every year thereafter, the wages in this paragraph shall be
36 increased by three per centum;
37 (d) members with wages greater than seventy-five thousand per annum
38 but not more than one hundred thousand per annum shall contribute five
39 and three-quarters per centum of annual wages. On April one, two thou-
40 sand twenty-two, and every year thereafter, the wages in this paragraph
41 shall be increased by three per centum; and
42 (e) members with wages greater than one hundred thousand per annum
43 shall contribute six per centum of annual wages. On April one, two thou-
44 sand twenty-two, and every year thereafter, the wages in this paragraph
45 shall be increased by three per centum.
46 § 5. Subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph (d) of
47 subdivision 2 of section 392 of the education law, as added by chapter
48 18 of the laws of 2012, are amended to read as follows:
49 (i) members with wages of forty-five thousand dollars per annum or
50 less shall contribute three per centum of annual wages. On July one, two
51 thousand twenty-two, and every year thereafter, the wages in this
52 subparagraph shall be increased by three per centum;
53 (ii) members with wages greater than forty-five thousand per annum,
54 but not more than fifty-five thousand per annum shall contribute three
55 and one-half per centum of annual wages. On July one, two thousand twen-
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1 ty-two, and every year thereafter, the wages in this subparagraph shall
2 be increased by three per centum;
3 (iii) members with wages greater than fifty-five thousand per annum,
4 but not more than seventy-five thousand per annum shall contribute four
5 and one-half per centum of annual wages. On July one, two thousand twen-
6 ty-two, and every year thereafter, the wages in this subparagraph shall
7 be increased by three per centum;
8 (iv) members with wages greater than seventy-five thousand per annum
9 but not more than one hundred thousand per annum shall contribute five
10 and three-quarters per centum of annual wages. On July one, two thousand
11 twenty-two, and every year thereafter, the wages in this subparagraph
12 shall be increased by three per centum; and
13 (v) members with wages greater than one hundred thousand per annum
14 shall contribute six per centum of annual wages. On July one, two thou-
15 sand twenty-two, and every year thereafter, the wages in this subpara-
16 graph shall be increased by three per centum.
17 § 6. Subparagraphs 1, 2, 3, 4 and 5 of paragraph (d) of subdivision 2
18 of section 6252 of the education law, as added by chapter 18 of the laws
19 of 2012, are amended to read as follows:
20 (1) members with wages of forty-five thousand dollars per annum or
21 less shall contribute three per centum of annual wages. On July one, two
22 thousand twenty-two, and every year thereafter, the wages in this
23 subparagraph shall be increased by three per centum;
24 (2) members with wages greater than forty-five thousand per annum, but
25 not more than fifty-five thousand per annum shall contribute three and
26 one-half per centum of annual wages. On July one, two thousand twenty-
27 two, and every year thereafter, the wages in this subparagraph shall be
28 increased by three per centum;
29 (3) members with wages greater than fifty-five thousand per annum, but
30 not more than seventy-five thousand per annum shall contribute four and
31 one-half per centum of annual wages. On July one, two thousand twenty-
32 two, and every year thereafter, the wages in this paragraph shall be
33 increased by three per centum;
34 (4) members with wages greater than seventy-five thousand per annum
35 but not more than one hundred thousand per annum shall contribute five
36 and three-quarters per centum of annual wages. On July one, two thousand
37 twenty-two, and every year thereafter, the wages in this paragraph shall
38 be increased by three per centum; and
39 (5) members with wages greater than one hundred thousand per annum
40 shall contribute six per centum of annual wages. On July one, two thou-
41 sand twenty-two, and every year thereafter, the wages in this paragraph
42 shall be increased by three per centum.
43 § 7. Notwithstanding any other provision of law to the contrary, none
44 of the provisions of this act shall be subject to section 25 of the
45 retirement and social security law.
46 § 8. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would increase the wage ranges to which the 3%, 3.5%, 4.5%,
5.75% and 6% contribution rates are applied for tier 6 members beginning
on April 1, 2022 and every year thereafter by 3%.
The current contribution rates and wage ranges are:
3% for wages of $45,000 or less
3.5% for wages greater than $45,000 and less than or equal to $55,000
4.5% for wages greater than $55,000 and less than or equal to $75,000
5.75% for wages greater than $75,000 and less than or equal to $100,000
6.0% for wages greater than $100,000
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Insofar as this bill affects the New York State and Local Employees'
Retirement System (NYSLERS), if this legislation is enacted during the
2021 legislative session, there will be an increase in the present value
of future costs of approximately $428 million which would be shared by
the State of New York and all of the participating employers in the
NYSLERS. The estimated first year cost would be approximately $21.0
million to the State of New York and approximately $30.3 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), if this legislation is enacted during
the 2021 legislative session, there will be an increase in the present
value of future costs of approximately $9.37 million which would be
shared by the State of New York and all of the participating employers
in the NYSLPFRS. The estimated first year cost would be approximately
$199,000 to the State of New York and approximately $832,000 to the
participating employers in the NYSLPFRS.
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 January 8, 2021, and intended for use only during
the 2021 Legislative Session, is Fiscal Note No. 2021-21, prepared by
the Actuary for the New York State and Local Retirement System.