STATE OF NEW YORK
________________________________________________________________________
6047--B
2017-2018 Regular Sessions
IN SENATE
May 10, 2017
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
-- 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 commit-
tee -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
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 f 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 f. Commencing September first, two thousand, all retired members who
5 have retired prior to the calendar year nineteen hundred ninety-seven
6 and who meet the eligibility criteria set forth in subdivision a of this
7 section shall be paid an adjusted benefit in monthly installments on the
8 basis provided for in this subdivision. Said adjusted benefit shall be
9 equal to a percentage of the change in consumer price index (all urban
10 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
11 by the United States bureau of labor statistics, measured from the year
12 of retirement through calendar year nineteen hundred ninety-seven
13 according to the following schedule:
14 Year of retirement Percentage
15 1968 through 1996 50%
16 1966 and 1967 55%
17 1965 60%
18 1964 65%
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11292-05-8
S. 6047--B 2
1 1963 70%
2 1962 80%
3 1961 90%
4 prior to 1961 100%
5 Said adjusted benefit shall be computed on a base benefit amount not to
6 exceed eighteen thousand dollars of the retirement allowance otherwise
7 payable, computed without optional modification. Any benefit received
8 pursuant to this subdivision shall be in lieu of any benefit received
9 pursuant to section seventy-eight of this title.
10 Commencing September first, two thousand eighteen, all retired members
11 who have retired prior to the calendar year nineteen hundred ninety-sev-
12 en and who meet the eligibility criteria set forth in subdivision a of
13 this section shall be paid an adjusted benefit in monthly installments
14 on the basis provided for in this subdivision. Said adjusted benefit
15 shall be equal to a percentage of the change in consumer price index
16 (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100),
17 published by the United States bureau of labor statistics, measured from
18 the year of retirement through calendar year nineteen hundred ninety-
19 seven according to the following schedule:
20 Year of retirement Percentage
21 1973 through 1996 50%
22 1971 and 1972 55%
23 1970 60%
24 1969 65%
25 1968 70%
26 1967 80%
27 1966 90%
28 prior to 1966 100%
29 Said adjusted benefit commencing September first, two thousand eighteen,
30 shall be computed on the base benefit amount of the retirement allowance
31 otherwise payable, computed without optional modification, set forth
32 herein above. Any benefit received pursuant to this subdivision shall be
33 in lieu of any benefit received pursuant to section seventy-eight of
34 this title.
35 § 2. Subdivision f of section 378-a of the retirement and social secu-
36 rity law, as added by chapter 125 of the laws of 2000, is amended to
37 read as follows:
38 f. Commencing September first, two thousand, all retired members who
39 have retired prior to the calendar year nineteen hundred ninety-seven
40 and who meet the eligibility criteria set forth in subdivision a of this
41 section shall be paid an adjusted benefit in monthly installments on the
42 basis provided for in this subdivision. Said adjusted benefit shall be
43 equal to a percentage of the change in consumer price index (all urban
44 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
45 by the United States bureau of labor statistics, measured from the year
46 of retirement through calendar year nineteen hundred ninety-seven
47 according to the following schedule:
48 Year of retirement Percentage
49 1968 through 1996 50%
50 1966 and 1967 55%
51 1965 60%
52 1964 65%
53 1963 70%
54 1962 80%
S. 6047--B 3
1 1961 90%
2 prior to 1961 100%
3 Said adjusted benefit shall be computed on a base benefit amount not to
4 exceed eighteen thousand dollars of the retirement allowance otherwise
5 payable, computed without optional modification. Any benefit received
6 pursuant to this subdivision shall be in lieu of any benefit received
7 pursuant to section three hundred seventy-eight of this title.
8 Commencing September first, two thousand eighteen, all retired members
9 who have retired prior to the calendar year nineteen hundred ninety-sev-
10 en and who meet the eligibility criteria set forth in subdivision a of
11 this section shall be paid an adjusted benefit in monthly installments
12 on the basis provided for in this subdivision. Said adjusted benefit
13 shall be equal to a percentage of the change in consumer price index
14 (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100),
15 published by the United States bureau of labor statistics, measured from
16 the year of retirement through calendar year nineteen hundred ninety-
17 seven according to the following schedule:
18 Year of retirement Percentage
19 1973 through 1996 50%
20 1971 and 1972 55%
21 1970 60%
22 1969 65%
23 1968 70%
24 1967 80%
25 1966 90%
26 prior to 1966 100%
27 Said adjusted benefit commencing September first, two thousand eighteen,
28 shall be computed on the base benefit amount of the retirement allowance
29 otherwise payable, computed without optional modification, set forth
30 herein above. Any benefit received pursuant to this subdivision shall be
31 in lieu of any benefit received pursuant to section three hundred seven-
32 ty-eight of this title.
33 § 3. Subdivision f of section 532-a of the education law, as added by
34 chapter 125 of the laws of 2000, is amended to read as follows:
35 f. Commencing September first, two thousand, all retired members who
36 have retired prior to the calendar year nineteen hundred ninety-seven
37 and who meet the eligibility criteria set forth in subdivision a of this
38 section shall be paid an adjusted benefit in monthly installments on the
39 basis provided for in this subdivision. Said adjusted benefit shall be
40 equal to a percentage of the change in consumer price index (all urban
41 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
42 by the United States bureau of labor statistics, measured from the year
43 of retirement through calendar year nineteen hundred ninety-seven
44 according to the following schedule:
45 Year of retirement Percentage
46 1968 through 1996 50%
47 1966 and 1967 55%
48 1965 60%
49 1964 65%
50 1963 70%
51 1962 80%
52 1961 90%
53 prior to 1961 100%
54 Said adjusted benefit shall be computed on a base benefit amount not to
55 exceed eighteen thousand dollars of the retirement allowance otherwise
S. 6047--B 4
1 payable, computed without optional modification excluding any annuity
2 derived from voluntary contributions made by members, except those made
3 pursuant to elections under subdivision one of section five hundred
4 eleven-a or paragraph c of subdivision three of section five hundred
5 sixteen of this article. Any benefits received pursuant to this subdivi-
6 sion shall be in lieu of any benefits received pursuant to section five
7 hundred thirty-two of this article, unless such benefits are in excess
8 of those provided by this section, in which case such benefits shall be
9 paid by the retirement system pursuant to such provision.
10 Commencing September first, two thousand eighteen, all retired members
11 who have retired prior to the calendar year nineteen hundred ninety-sev-
12 en and who meet the eligibility criteria set forth in subdivision a of
13 this section shall be paid an adjusted benefit in monthly installments
14 on the basis provided for in this subdivision. Said adjusted benefit
15 shall be equal to a percentage of the change in consumer price index
16 (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100),
17 published by the United States bureau of labor statistics, measured from
18 the year of retirement through calendar year nineteen hundred ninety-
19 seven according to the following schedule:
20 Year of retirement Percentage
21 1973 through 1996 50%
22 1971 and 1972 55%
23 1970 60%
24 1969 65%
25 1968 70%
26 1967 80%
27 1966 90%
28 prior to 1966 100%
29 Said adjusted benefit, commencing September first, two thousand eigh-
30 teen, shall be computed on the base benefit amount of the retirement
31 allowance otherwise payable, computed without optional modification, set
32 forth herein above. Any benefit received pursuant to this subdivision
33 shall be in lieu of any benefit received pursuant to section five
34 hundred thirty-two of this article.
35 § 4. Subdivision f of section 13-696 of the administrative code of the
36 city of New York, as added by chapter 125 of the laws of 2000, is
37 amended to read as follows:
38 f. Commencing September first, two thousand, all retired members who
39 have retired prior to the calendar year nineteen hundred ninety-seven
40 and who meet the eligibility criteria set forth in subdivision a of this
41 section shall be paid an adjusted benefit in monthly installments on the
42 basis provided for in this subdivision. Said adjusted benefit shall be
43 equal to a percentage of the change in consumer price index (all urban
44 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
45 by the United States bureau of labor statistics, measured from the year
46 of retirement through calendar year nineteen hundred ninety-seven
47 according to the following schedule:
48 Year of retirement Percentage
49 1968 through 1996 50%
50 1966 and 1967 55%
51 1965 60%
52 1964 65%
53 1963 70%
54 1962 80%
55 1961 90%
S. 6047--B 5
1 prior to 1961 100%
2 Said adjusted benefit shall be computed on a base benefit amount not to
3 exceed eighteen thousand dollars of the annual fixed retirement allow-
4 ance otherwise payable, computed without optional modification. Any
5 benefit received pursuant to this subdivision shall be in lieu of any
6 benefit received pursuant to chapter three hundred ninety of the laws of
7 nineteen hundred ninety-eight, and any preceding provision of law
8 providing for supplementation.
9 Commencing September first, two thousand eighteen, all retired members
10 who have retired prior to the calendar year nineteen hundred ninety-sev-
11 en and who meet the eligibility criteria set forth in subdivision a of
12 this section shall be paid an adjusted benefit in monthly installments
13 on the basis provided for in this subdivision. Said adjusted benefit
14 shall be equal to a percentage of the change in consumer price index
15 (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100),
16 published by the United States bureau of labor statistics, measured from
17 the year of retirement through calendar year nineteen hundred ninety-
18 seven according to the following schedule:
19 Year of retirement Percentage
20 1973 through 1996 50%
21 1971 and 1972 55%
22 1970 60%
23 1969 65%
24 1968 70%
25 1967 80%
26 1966 90%
27 prior to 1966 100%
28 Said adjusted benefit, commencing September first, two thousand eigh-
29 teen, shall be computed on the base benefit amount of the retirement
30 allowance otherwise payable, computed without optional modification, set
31 forth herein above. Any benefit received pursuant to this subdivision
32 shall be in lieu of any benefit received pursuant to section 13-695 of
33 this article.
34 § 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 2018, 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 $483,000.
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 $1.09 million. The estimated first year cost
would be approximately $25,600 to the State of New York and approximate-
ly $105,000 to the participating employers in the PFRS.
Summary of relevant resources:
The membership data used in measuring the impact of the proposed
change was the same as that used in the March 31, 2017 actuarial valu-
ation. Distributions and other statistics can be found in the 2017
S. 6047--B 6
Report of the Actuary and the 2017 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2015,
2016, and 2017 Annual Report to the Comptroller on Actuarial Assump-
tions, 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, 2017
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 estimate, dated January 25, 2018, and intended for use only
during the 2018 Legislative Session, is Fiscal Note No. 2018-38,
prepared by the Actuary for the New York State and Local Retirement
System.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill 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 maxi-
mum annual benefit without optional modification and would be effective
in September 2018.
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
Comprehensive Annual Financial Report (CAFR). System assets are as
reported in the System's financial statements, and can also be found in
the CAFR. Actuarial assumptions and methods are provided in the System's
Actuarial Valuation Report.
The source of this estimate is Fiscal Note 2018-14 dated March 20,
2018 prepared by the Actuary of the New York State Teachers' Retirement
System and is intended for use only during the 2018 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.