STATE OF NEW YORK
________________________________________________________________________
10471--A
IN SENATE
May 15, 2026
___________
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
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 g 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 g. Notwithstanding any other provision of law, effective the first day
5 of September, two thousand twenty-seven, the surviving spouse of a
6 deceased retired member who retired under an option which provides that
7 benefits are to be continued for life to the surviving spouse after the
8 death of the retired member, shall be entitled to receive benefits
9 pursuant to this section. Said benefits shall be [fifty] one hundred
10 percent of the monthly benefits which the pensioner would be receiving
11 pursuant to this section if living, and shall commence (i) with a
12 payment for the month of September, two thousand twenty-seven, or (ii)
13 the month following the death of the deceased retired member, whichever
14 is later.
15 § 2. Subdivision g of section 378-a of the retirement and social secu-
16 rity law, as added by chapter 125 of the laws of 2000, is amended to
17 read as follows:
18 g. Notwithstanding any other provision of law, effective the first day
19 of September, two thousand twenty-seven, the surviving spouse of a
20 deceased retired member who retired under an option which provides that
21 benefits are to be continued for life to the surviving spouse after the
22 death of the retired member, shall be entitled to receive benefits
23 pursuant to this section. Said benefits shall be [fifty] one hundred
24 percent of the monthly benefits which the pensioner would be receiving
25 pursuant to this section if living, and shall commence (i) with a
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15258-03-6
S. 10471--A 2
1 payment for the month of September, two thousand twenty-seven, or (ii)
2 the month following the death of the deceased retired member, whichever
3 is later.
4 § 3. Subdivision g 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 g. Notwithstanding any other provision of law, effective the first day
7 of September, two thousand twenty-seven, the surviving spouse of a
8 deceased retired member who retired under an option which provides that
9 benefits are to be continued for life to the surviving spouse after the
10 death of the retired member, shall be entitled to receive benefits
11 pursuant to this section. Said benefits shall be [fifty] one hundred
12 percent of the monthly benefits which the pensioner would be receiving
13 pursuant to this section if living, and shall commence (i) with a
14 payment for the month of September, two thousand twenty-seven, or (ii)
15 the month following the death of the deceased retired member, whichever
16 is later.
17 § 4. Subdivision g of section 13-696 of the administrative code of the
18 city of New York, as added by chapter 125 of the laws of 2000, is
19 amended to read as follows:
20 g. Notwithstanding any other provision of law, effective the first day
21 of September, two thousand twenty-seven, the surviving spouse of a
22 deceased retired member of the New York city employees' retirement
23 system, the New York city teachers' retirement system, the New York city
24 police pension fund, the New York city fire department pension fund or
25 the New York city board of education retirement system who retired under
26 an option which provides that benefits are to be continued for life to
27 the surviving spouse after the death of the member, shall be entitled to
28 receive a benefit pursuant to this section. Said benefit shall be
29 [fifty] one hundred percent of the monthly benefit which the pensioner
30 would be receiving if living, and shall commence (i) with a payment for
31 the month of September, two thousand twenty-seven, or (ii) the month
32 following the death of the deceased retired member, whichever is later.
33 § 5. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend the retirement and social security law (RSSL) to
increase the defined benefit cost-of-living adjustment (COLA) for New
York public retirement systems. Beginning with pension payments in
September 2027, the cost-of-living benefit payable to a surviving spouse
who is eligible for COLA will be increased from fifty percent to one
hundred percent of the COLA payment that the retiree would have
received.
Pursuant to section 25 of the RSSL, retrospective costs in the New
York State and Local Employees' Retirement System (NYSLERS) arising from
prior service would be borne entirely by the state of New York and would
require an itemized appropriation sufficient to pay the cost of the
provision.
Insofar as this bill affects NYSLERS, the present value of benefits
would increase by approximately $1.8 billion.
In NYSLERS, this benefit improvement will be funded by (1) billing a
one-time charge to cover retrospective benefit increases and (2)
increasing the billing rates charged annually to cover prospective bene-
fit increases, as follows:
(1) To fund retrospective costs, the state of New York will be
required to pay $1.92 billion as of March 1, 2027.
(2) To fund prospective costs, annual billing rates charged to all
participating employers in NYSLERS would increase by 0.04% of billable
S. 10471--A 3
salary. Systemwide, annual contributions would increase by approximately
$5.3 million for the state of New York and $7.9 million for the local
participating employers. This permanent annual cost will vary in future
billing cycles with changes in the billing rate and salary of the
affected members.
Insofar as this bill affects the New York State and Local Police and
Fire Retirement System (NYSLPFRS), the present value of benefits would
increase by approximately $207 million.
NYSLPFRS Increase in present Increase in required
value of benefits contributions
Pensioners $182 mn $ 0 mn
Actives Tiers 1-5 (Closed) $ 15 mn $ 70 mn
Actives Tier 6 (Open) $ 10 mn $137 mn
Total $207 mn $207 mn
Benefit improvements will be funded by increasing the billing rates
charged annually. The annual billing rate required of all participating
employers in NYSLPFRS would increase 0.4% of billable salary. System-
wide, annual contributions would increase approximately $3.6 million to
the state of New York and $15.2 million to the local participating
employers. This permanent annual cost will vary in future billing
cycles with changes in the billing rate and salary of the affected
members.
Summary of relevant resources:
Membership data as of March 31, 2025 was used to measure the impact of
the bill, the same data used in the Actuarial Valuations dated April 1,
2025. Distributions and other statistics can be found in the 2025 Report
of the Actuary and the 2025 Annual Comprehensive Financial Report. The
actuarial assumptions and methods used are described in the 2025 Annual
Report to the Comptroller on Actuarial Assumptions, and the Codes, Rules
and Regulations of the State of New York: Audit and Control. The fair
value of assets and GASB disclosures can be found in the 2025 Financial
Statements and Supplementary Information.
Assumptions, demographics, and other considerations may have been
modified to better reflect specific provisions of any proposed benefit
change(s).
This fiscal note does not constitute a legal opinion on the viability
of the bill, nor is it intended to serve as a substitute for the profes-
sional judgment of an attorney.
This estimate, dated April 23, 2026, and intended for use only during
the 2026 Legislative Session, is Fiscal Note Number 2026-161. As Chief
Actuary of the New York State and Local Retirement System (NYSLRS), I,
Aaron Schottin Young, hereby certify that this analysis complies with
applicable Actuarial Standards of Practice as well as the Code of
Professional Conduct and Qualification Standards for Actuaries Issuing
Statements of Actuarial Opinion of the American Academy of Actuaries, of
which I am a member. I am a member of NYSLRS but do not believe it
impairs my objectivity.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
Bill Description:
This fiscal note is prepared for legislative bill draft #15258-01-6.
This bill would amend subdivision g of Section 532-a of the Education
Law to increase the cost-of-living adjustment (COLA) benefit to surviv-
ing spouse beneficiaries of deceased retirees who elected an option
which provides a lifetime benefit to their surviving spouse. The COLA
S. 10471--A 4
survivor benefit would be equal to 100% of the monthly benefit which the
retiree would be receiving if alive. The current COLA survivor benefit
is equal to 50% of the benefit the retiree would be receiving if alive.
This increase in spousal survivor benefit would also be applicable to
the "catch-up" supplementation provided under subdivision f to eligible
retirees who retired before January 1, 1997. This benefit improvement
would be effective with the September 2027 payment.
Cost:
The annual cost to the participating employers of the New York State
Teachers' Retirement System for this benefit is estimated to be $48.1
million or 0.23% of payroll if this bill is enacted.
Data:
Member data as of June 30, 2025, prepared for the most recent actuari-
al valuation was used in determining this cost. The most recent data
distributions and statistics can be found in the System's Annual Report
for the fiscal year ended June 30, 2025. System assets are as reported
in the System's financial statements which can be found in the System's
Annual Report. This data will also be provided in the System's Actuarial
Valuation Report as of June 30, 2025.
Methods and Assumptions:
A summary of actuarial assumptions and methods will be provided in the
System's Actuarial Valuation Report as of June 30, 2025. Further details
can be found in the most recent Recommended Actuarial Assumptions 2025
Report.
Actuarial Certification:
We, the undersigned actuaries for the New York State Teachers' Retire-
ment System, certify the following:
1. The actuarial assumptions, methods, and data used are reasonable
for the purposes of this fiscal note, internally consistent and are in
accordance with standards of practice prescribed by the Actuarial Stand-
ards Board and generally accepted actuarial principles and procedures.
2. We relied on member data supplied by the participating employers of
the New York State Teachers' Retirement System and assets as supplied in
the annual Financial Statements by NYSTRS' Finance Department.
3. Results were prepared based on our current understanding of the
proposal as of the date of this fiscal note. If the language or our
understanding of the proposal changes, the results could change and
require the issuance of a new fiscal note. The next annual update of the
actuarial valuation could also produce different results. Results should
not be relied upon for any other purpose.
4. This fiscal note was prepared in accordance with New York State
Retirement and Social Security Law, New York State Education Law, appli-
cable Internal Revenue Code, and accepted actuarial standards of prac-
tice as of the date of this fiscal note. This fiscal note does not
constitute a legal opinion on the viability of this legislative
proposal.
5. We are members of the American Academy of Actuaries and the Society
of Actuaries, and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
We are currently compliant with the Continuing Professional Development
Requirement of the Society of Actuaries.
Fiscal Note Identification:
This Fiscal Note, 2026-57, dated May 20, 2026, was prepared by the
Office of the Actuary of the New York State Teachers' Retirement System
and is intended for use only during the 2026 Legislative Session.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
S. 10471--A 5
SUMMARY: This proposed legislation, as it relates to the New York City
Retirement Systems and Pension Funds (NYCRS), would increase the Cost-
of-Living Adjustment (COLA), effective September 1, 2027, to an eligible
surviving spouse from 50% to 100% of the COLA the pensioner would be
receiving if still alive.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS TRS BERS POLICE FIRE TOTAL
2027 469.3 194.1 21.0 49.9 15.1 749.4
2028 8.2 2.8 0.4 0.5 0.2 12.1
2029 8.2 2.8 0.4 0.5 0.2 12.1
2030 8.2 2.8 0.4 0.5 0.2 12.1
2031 8.1 2.8 0.4 0.5 0.2 12.0
2032 8.1 2.8 0.4 0.5 0.2 12.0
2033 8.1 2.8 0.4 0.5 0.2 12.0
2034 8.0 2.8 0.4 0.5 0.2 11.9
2035 8.0 2.8 0.4 0.5 0.2 11.9
2036 8.0 2.8 0.4 0.5 0.2 11.9
2037 8.0 2.8 0.4 0.4 0.2 11.8
2038 8.0 2.8 0.4 0.4 0.2 11.8
2039 3.3 2.8 0.4 0.2 0.2 6.9
2040 3.3 2.8 0.2 0.2 0.1 6.6
2041 3.3 1.1 0.2 0.2 0.1 4.9
2042 3.4 1.1 0.2 0.2 0.1 5.0
2043 3.4 1.1 0.2 0.2 0.1 5.0
2044 3.4 1.1 0.2 0.2 0.1 5.0
2045 3.4 1.1 0.2 0.2 0.1 5.0
2046 3.5 1.1 0.2 0.2 0.1 5.1
2047 3.5 1.1 0.2 0.2 0.1 5.1
2048 3.6 1.2 0.2 0.2 0.1 5.3
2049 3.6 1.2 0.2 0.2 0.1 5.3
2050 3.7 1.2 0.3 0.2 0.1 5.5
2051 3.7 1.2 0.3 0.2 0.1 5.5
Projected contributions include future new hires that may be impacted.
For Fiscal Year 2052 and beyond, the expected increase in normal cost as
a level percent of pay for impacted new entrants is approximately 0.007%
for NYCERS, 0.003% for TRS, 0.005% for BERS, 0.001% for POLICE, and
0.002% for FIRE.
The initial increase in employer contributions of $749.4 million is
estimated to be $486.2 million for New York City and $263.2 million for
the other obligors of NYCRS.
PRESENT VALUE OF BENEFITS: The Present Value of Benefits is the
discounted expected value of benefits paid to current members if all
assumptions are met, including future service accrual and pay increases.
Future new hires are not included in this present value.
INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
as of June 30, 2025 ($ in Millions)
Present Value (PV) NYCERS TRS BERS POLICE FIRE
(1) PV of Employer Contributions: 479.7 197.0 21.8 48.5 15.3
(2) PV of Employee Contributions: 0.0 0.0 0.0 0.0 0.0
Total PV of Benefits (1) + (2): 479.7 197.0 21.8 48.5 15.3
S. 10471--A 6
UNFUNDED ACCRUED LIABILITY (UAL): Actuarial Accrued Liabilities are
the portion of the Present Value of Benefits allocated to past service.
Changes in UAL for active members were amortized over the expected
remaining working lifetime of those impacted using level dollar
payments. UAL attributable to inactive members was recognized in the
first year.
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
NYCERS TRS BERS POLICE FIRE
Increase (Decrease) in UAL: 452.9 M 187.1 M 20.0 M 46.8 M 14.4 M
Number of Payments: 12 14 13 12 13
Amortization Payment: 4.7 M 1.7 M 0.2 M 0.3 M 0.1 M
Additional One-time Payment: 461.1 M 191.3 M 20.6 M 49.4 M 14.9 M
CENSUS DATA: The estimates presented herein are based on preliminary
census data collected as of June 30, 2025. The census data for the
impacted population is summarized below.
NYCERS TRS BERS POLICE FIRE
Active Members
- Number Count: 182,611 129,814 46,890 33,950 11,178
- Average Age: 47.8 44.6 44.8 37.1 40.3
- Average Service: 11.6 12.4 5.4 10.6 13.1
- Average Salary: 95,900 104,500 44,000 134,100 141,300
Term. Vested Members
- Number Count: 29,094 22,728 4,259 1,534 56
- Average Age: 51.9 47.5 51.5 39.1 44.0
Receiving Members
- Number Count: 46,414 26,335 3,208 3,825 1,712
- Average Age: 74.3 75.8 75.8 63.1 66.5
IMPACT ON MEMBER BENEFITS: The surviving spouse of a deceased retired
member who retired under an option which provides that benefits are to
be continued for life to the surviving spouse after the death of the
retired member is currently entitled to receive a COLA equal to 50% of
the COLA the pensioner would be receiving if living. This proposed
legislation would change from 50% to 100% the percentage of COLA a
surviving spouse receives after the death of the retired member.
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement systems. In addition:
* Assumptions for active members electing a form of pension at retire-
ment that would continue a payment to a surviving spouse (ranging from
15% to 30%) were made based on the distribution of current elections and
an estimate of future elections.
* New entrants were assumed to replace exiting members so that total
payroll increases by 3% each year for impacted groups. New entrant demo-
graphics were developed based on data for recent new hires and actuarial
judgement.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the actuarial assumptions, methods, and models used, demo-
graphics of the impacted population, and other factors such as invest-
ment, contribution, and other risks. If actual experience deviates from
actuarial assumptions, the actual costs could differ from those
presented herein. Quantifying these risks is beyond the scope of this
Fiscal Note.
S. 10471--A 7
This Fiscal Note is intended to measure pension-related impacts and
does not include other potential costs (e.g., administrative and Other
Postemployment Benefits). This Fiscal Note does not reflect any chapter
laws that may have been enacted during the current legislative session.
STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
sky are members of the Society of Actuaries and the American Academy of
Actuaries. We are members of NYCERS, but do not believe it impairs our
objectivity, and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
To the best of our knowledge, the results contained herein have been
prepared in accordance with generally accepted actuarial principles and
procedures and with the Actuarial Standards of Practice issued by the
Actuarial Standards Board.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2026-89 dated May 19,
2026 was prepared by the Chief Actuary for the New York City Retirement
Systems and Pension Funds. This estimate is intended for use only during
the 2026 Legislative Session.
