Bill Text: NY S06060 | 2021-2022 | General Assembly | Amended


Bill Title: Provides cost-of-living adjustments for certain public retirees, including an adjusted benefit in monthly installments that is equal to the percentage of the change in consumer price index according to the included schedule.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Introduced - Dead) 2022-01-06 - PRINT NUMBER 6060C [S06060 Detail]

Download: New_York-2021-S06060-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         6060--C

                               2021-2022 Regular Sessions

                    IN SENATE

                                      April 1, 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  --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee -- 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

        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%

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10513-08-1

        S. 6060--C                          2

     1        1965                                   60%
     2        1964                                   65%
     3        1963                                   70%
     4        1962                                   80%
     5        1961                                   90%
     6        prior to 1961                          100%
     7  Said  adjusted benefit shall be computed on a base benefit amount not to
     8  exceed eighteen thousand dollars of the retirement  allowance  otherwise
     9  payable,  computed  without  optional modification. Any benefit received
    10  pursuant to this subdivision shall be in lieu of  any  benefit  received
    11  pursuant to section seventy-eight of this title.
    12    Commencing  September  first,  two  thousand  twenty-two,  all retired
    13  members who have retired prior to the  calendar  year  nineteen  hundred
    14  ninety-seven and who meet the eligibility criteria set forth in subdivi-
    15  sion  a  of  this  section  shall be paid an adjusted benefit in monthly
    16  installments on  the  basis  provided  for  in  this  subdivision.  Said
    17  adjusted benefit shall be equal to a percentage of the change in consum-
    18  er  price  index  (all  urban  consumers,  CPI-U, U.S. city average, all
    19  items, 1982-84=100), published by the  United  States  bureau  of  labor
    20  statistics,  measured  from the year of retirement through calendar year
    21  nineteen hundred ninety-seven according to the following schedule:

    22        Year of retirement                     Percentage
    23        1973 through 1996                      50%
    24        1971 and 1972                          55%
    25        1970                                   60%
    26        1969                                   65%
    27        1968                                   70%
    28        1967                                   80%
    29        1966                                   90%
    30        prior to 1966                          100%
    31  Said adjusted benefit commencing September first, two  thousand  twenty-
    32  two,  shall  be  computed  on  the base benefit amount of the retirement
    33  allowance otherwise payable, computed without optional modification, set
    34  forth herein above. Any benefit received pursuant  to  this  subdivision
    35  shall  be  in  lieu of any benefit received pursuant to section seventy-
    36  eight of this title.
    37    § 2. Subdivision f of section 378-a of the retirement and social secu-
    38  rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
    39  read as follows:
    40    f.  Commencing  September first, two thousand, all retired members who
    41  have retired prior to the calendar year  nineteen  hundred  ninety-seven
    42  and who meet the eligibility criteria set forth in subdivision a of this
    43  section shall be paid an adjusted benefit in monthly installments on the
    44  basis  provided  for in this subdivision. Said adjusted benefit shall be
    45  equal to a percentage of the change in consumer price index  (all  urban
    46  consumers,  CPI-U, U.S. city average, all items, 1982-84=100), published
    47  by the United States bureau of labor statistics, measured from the  year
    48  of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
    49  according to the following schedule:

    50        Year of retirement                     Percentage
    51        1968 through 1996                      50%
    52        1966 and 1967                          55%
    53        1965                                   60%
    54        1964                                   65%

        S. 6060--C                          3

     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 three hundred seventy-eight of this title.
    10    Commencing  September  first,  two  thousand  twenty-two,  all retired
    11  members who have retired prior to the  calendar  year  nineteen  hundred
    12  ninety-seven and who meet the eligibility criteria set forth in subdivi-
    13  sion  a  of  this  section  shall be paid an adjusted benefit in monthly
    14  installments on  the  basis  provided  for  in  this  subdivision.  Said
    15  adjusted benefit shall be equal to a percentage of the change in consum-
    16  er  price  index  (all  urban  consumers,  CPI-U, U.S. city average, all
    17  items, 1982-84=100), published by the  United  States  bureau  of  labor
    18  statistics,  measured  from the year of retirement through calendar year
    19  nineteen hundred ninety-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  twenty-
    30  two,  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 three
    34  hundred seventy-eight of this title.
    35    § 3. Subdivision f of section 532-a of the education law, as added  by
    36  chapter 125 of the laws of 2000, is amended to read as follows:
    37    f.  Commencing  September first, two thousand, all retired members who
    38  have retired prior to the calendar year  nineteen  hundred  ninety-seven
    39  and who meet the eligibility criteria set forth in subdivision a of this
    40  section shall be paid an adjusted benefit in monthly installments on the
    41  basis  provided  for in this subdivision. Said adjusted benefit shall be
    42  equal to a percentage of the change in consumer price index  (all  urban
    43  consumers,  CPI-U, U.S. city average, all items, 1982-84=100), published
    44  by the United States bureau of labor statistics, measured from the  year
    45  of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
    46  according to the following schedule:
    47        Year of retirement                     Percentage
    48        1968 through 1996                      50%
    49        1966 and 1967                          55%
    50        1965                                   60%
    51        1964                                   65%
    52        1963                                   70%
    53        1962                                   80%
    54        1961                                   90%
    55        prior to 1961                          100%

        S. 6060--C                          4

     1  Said adjusted benefit shall be computed on a base benefit amount not  to
     2  exceed  eighteen  thousand dollars of the retirement allowance otherwise
     3  payable, computed without optional modification  excluding  any  annuity
     4  derived  from voluntary contributions made by members, except those made
     5  pursuant  to  elections  under  subdivision  one of section five hundred
     6  eleven-a or paragraph c of subdivision three  of  section  five  hundred
     7  sixteen of this article. Any benefits received pursuant to this subdivi-
     8  sion  shall be in lieu of any benefits received pursuant to section five
     9  hundred thirty-two of this article, unless such benefits are  in  excess
    10  of  those provided by this section, in which case such benefits shall be
    11  paid by the retirement system pursuant to such provision.
    12    Commencing September  first,  two  thousand  twenty-two,  all  retired
    13  members  who  have  retired  prior to the calendar year nineteen hundred
    14  ninety-seven and who meet the eligibility criteria set forth in subdivi-
    15  sion a of this section shall be paid  an  adjusted  benefit  in  monthly
    16  installments  on  the  basis  provided  for  in  this  subdivision. Said
    17  adjusted benefit shall be equal to a percentage of the change in consum-
    18  er price index (all urban  consumers,  CPI-U,  U.S.  city  average,  all
    19  items,  1982-84=100),  published  by  the  United States bureau of labor
    20  statistics, measured from the year of retirement through  calendar  year
    21  nineteen hundred ninety-seven according to the following schedule:
    22        Year of retirement                     Percentage
    23        1973 through 1996                          50%
    24        1971 and 1972                              55%
    25        1970                                       60%
    26        1969                                       65%
    27        1968                                       70%
    28        1967                                       80%
    29        1966                                       90%
    30        prior to 1966                             100%

    31  Said  adjusted benefit, commencing September first, two thousand twenty-
    32  two, shall be computed on a base benefit amount not to  exceed  eighteen
    33  thousand dollars of the retirement allowance otherwise payable, computed
    34  without  optional  modification,  set  forth  herein  above. Any benefit
    35  received pursuant to this subdivision shall be in lieu  of  any  benefit
    36  received  pursuant  to  section five hundred thirty-two of this article,
    37  unless such benefits are in excess of those provided by this section, in
    38  which case such benefits shall be paid by the retirement system pursuant
    39  to such provision.
    40    § 4. Subdivision f of section 13-696 of the administrative code of the
    41  city of New York, as added by chapter  125  of  the  laws  of  2000,  is
    42  amended to read as follows:
    43    f.  Commencing  September first, two thousand, all retired members who
    44  have retired prior to the calendar year  nineteen  hundred  ninety-seven
    45  and who meet the eligibility criteria set forth in subdivision a of this
    46  section shall be paid an adjusted benefit in monthly installments on the
    47  basis  provided  for in this subdivision. Said adjusted benefit shall be
    48  equal to a percentage of the change in consumer price index  (all  urban
    49  consumers,  CPI-U, U.S. city average, all items, 1982-84=100), published
    50  by the United States bureau of labor statistics, measured from the  year
    51  of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
    52  according to the following schedule:
    53        Year of retirement                     Percentage
    54        1968 through 1996                      50%
    55        1966 and 1967                          55%

        S. 6060--C                          5

     1        1965                                   60%
     2        1964                                   65%
     3        1963                                   70%
     4        1962                                   80%
     5        1961                                   90%
     6        prior to 1961                          100%
     7  Said  adjusted benefit shall be computed on a base benefit amount not to
     8  exceed eighteen thousand dollars of the annual fixed  retirement  allow-
     9  ance  otherwise  payable,  computed  without  optional modification. Any
    10  benefit received pursuant to this subdivision shall be in  lieu  of  any
    11  benefit received pursuant to chapter three hundred ninety of the laws of
    12  nineteen  hundred  ninety-eight,  and  any  preceding  provision  of law
    13  providing for supplementation.
    14    Commencing September  first,  two  thousand  twenty-two,  all  retired
    15  members  who  have  retired  prior to the calendar year nineteen hundred
    16  ninety-seven and who meet the eligibility criteria set forth in subdivi-
    17  sion a of this section shall be paid  an  adjusted  benefit  in  monthly
    18  installments  on  the  basis  provided  for  in  this  subdivision. Said
    19  adjusted benefit shall be equal to a percentage of the change in consum-
    20  er price index (all urban  consumers,  CPI-U,  U.S.  city  average,  all
    21  items,  1982-84=100),  published  by  the  United States bureau of labor
    22  statistics, measured from the year of retirement through  calendar  year
    23  nineteen hundred ninety-seven according to the following schedule:
    24        Year of retirement                     Percentage
    25        1973 through 1996                      50%
    26        1971 and 1972                          55%
    27        1970                                   60%
    28        1969                                   65%
    29        1968                                   70%
    30        1967                                   80%
    31        1966                                   90%
    32        prior to 1966                          100%
    33  Said  adjusted benefit, commencing September first, two thousand twenty-
    34  two, shall be computed on the base  benefit  amount  of  the  retirement
    35  allowance otherwise payable, computed without optional modification, set
    36  forth  herein  above.  Any benefit received pursuant to this subdivision
    37  shall be in lieu of any benefit received pursuant to section  13-695  of
    38  this article.
    39    § 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, 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 $106,000.
          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 $475,000. The estimated first year cost would be

        S. 6060--C                          6

        approximately $9,800 to the State of New York and approximately  $38,000
        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 December 28, 2021,  and  intended  for  use  only
        during  the  2022  Legislative  Session,  is  Fiscal  Note  No. 2022-38,
        prepared by the Actuary for the New  York  State  and  Local  Retirement
        System.
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