Amd §§78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd
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.
STATE OF NEW YORK
________________________________________________________________________
3414
2025-2026 Regular Sessions
IN SENATE
January 27, 2025
___________
Introduced by Sens. JACKSON, ADDABBO, HARCKHAM -- read twice and ordered
printed, and when printed to be committed to the Committee on Civil
Service and Pensions
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%
19 1963 70%
20 1962 80%
21 1961 90%
22 prior to 1961 100%
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06255-02-5
S. 3414 2
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. Any benefit received
4 pursuant to this subdivision shall be in lieu of any benefit received
5 pursuant to section seventy-eight of this title.
6 Commencing September first, two thousand twenty-five, all retired
7 members who have retired prior to the calendar year nineteen hundred
8 ninety-seven and who meet the eligibility criteria set forth in subdivi-
9 sion a of this section shall be paid an adjusted benefit in monthly
10 installments on the basis provided for in this subdivision. Said
11 adjusted benefit shall be equal to a percentage of the change in consum-
12 er price index (all urban consumers, CPI-U, U.S. city average, all
13 items, 1982-84=100), published by the United States bureau of labor
14 statistics, measured from the year of retirement through calendar year
15 nineteen hundred ninety-seven according to the following schedule:
16 YearofretirementPercentage
17 1973through199650%
18 1971and197255%
19 197060%
20 196965%
21 196870%
22 196780%
23 196690%
24 priorto1966100%
25 Said adjusted benefit commencing September first, two thousand twenty-
26 five, shall be computed on the base benefit amount of the retirement
27 allowance otherwise payable, computed without optional modification, set
28 forth herein above. Any benefit received pursuant to this subdivision
29 shall be in lieu of any benefit received pursuant to section seventy-
30 eight of this title.
31 § 2. Subdivision f of section 378-a of the retirement and social secu-
32 rity law, as added by chapter 125 of the laws of 2000, is amended to
33 read as follows:
34 f. Commencing September first, two thousand, all retired members who
35 have retired prior to the calendar year nineteen hundred ninety-seven
36 and who meet the eligibility criteria set forth in subdivision a of this
37 section shall be paid an adjusted benefit in monthly installments on the
38 basis provided for in this subdivision. Said adjusted benefit shall be
39 equal to a percentage of the change in consumer price index (all urban
40 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
41 by the United States bureau of labor statistics, measured from the year
42 of retirement through calendar year nineteen hundred ninety-seven
43 according to the following schedule:
44 Year of retirement Percentage
45 1968 through 1996 50%
46 1966 and 1967 55%
47 1965 60%
48 1964 65%
49 1963 70%
50 1962 80%
51 1961 90%
52 prior to 1961 100%
53 Said adjusted benefit shall be computed on a base benefit amount not to
54 exceed eighteen thousand dollars of the retirement allowance otherwise
S. 3414 3
1 payable, computed without optional modification. Any benefit received
2 pursuant to this subdivision shall be in lieu of any benefit received
3 pursuant to section three hundred seventy-eight of this title.
4 Commencing September first, two thousand twenty-five, all retired
5 members who have retired prior to the calendar year nineteen hundred
6 ninety-seven and who meet the eligibility criteria set forth in subdivi-
7 sion a of this section shall be paid an adjusted benefit in monthly
8 installments on the basis provided for in this subdivision. Said
9 adjusted benefit shall be equal to a percentage of the change in consum-
10 er price index (all urban consumers, CPI-U, U.S. city average, all
11 items, 1982-84=100), published by the United States bureau of labor
12 statistics, measured from the year of retirement through calendar year
13 nineteen hundred ninety-seven according to the following schedule:
14 YearofretirementPercentage
15 1973through199650%
16 1971and197255%
17 197060%
18 196965%
19 196870%
20 196780%
21 196690%
22 priorto1966100%
23 Said adjusted benefit commencing September first, two thousand twenty-
24 five, shall be computed on the base benefit amount of the retirement
25 allowance otherwise payable, computed without optional modification, set
26 forth herein above. Any benefit received pursuant to this subdivision
27 shall be in lieu of any benefit received pursuant to section three
28 hundred seventy-eight of this title.
29 § 3. Subdivision f of section 532-a of the education law, as added by
30 chapter 125 of the laws of 2000, is amended to read as follows:
31 f. Commencing September first, two thousand, all retired members who
32 have retired prior to the calendar year nineteen hundred ninety-seven
33 and who meet the eligibility criteria set forth in subdivision a of this
34 section shall be paid an adjusted benefit in monthly installments on the
35 basis provided for in this subdivision. Said adjusted benefit shall be
36 equal to a percentage of the change in consumer price index (all urban
37 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
38 by the United States bureau of labor statistics, measured from the year
39 of retirement through calendar year nineteen hundred ninety-seven
40 according to the following schedule:
41 Year of retirement Percentage
42 1968 through 1996 50%
43 1966 and 1967 55%
44 1965 60%
45 1964 65%
46 1963 70%
47 1962 80%
48 1961 90%
49 prior to 1961 100%
50 Said adjusted benefit shall be computed on a base benefit amount not to
51 exceed eighteen thousand dollars of the retirement allowance otherwise
52 payable, computed without optional modification excluding any annuity
53 derived from voluntary contributions made by members, except those made
54 pursuant to elections under subdivision one of section five hundred
55 eleven-a or paragraph c of subdivision three of section five hundred
S. 3414 4
1 sixteen of this article. Any benefits received pursuant to this subdivi-
2 sion shall be in lieu of any benefits received pursuant to section five
3 hundred thirty-two of this article, unless such benefits are in excess
4 of those provided by this section, in which case such benefits shall be
5 paid by the retirement system pursuant to such provision.
6 Commencing September first, two thousand twenty-five, all retired
7 members who have retired prior to the calendar year nineteen hundred
8 ninety-seven and who meet the eligibility criteria set forth in subdivi-
9 sion a of this section shall be paid an adjusted benefit in monthly
10 installments on the basis provided for in this subdivision. Said
11 adjusted benefit shall be equal to a percentage of the change in consum-
12 er price index (all urban consumers, CPI-U, U.S. city average, all
13 items, 1982-84=100), published by the United States bureau of labor
14 statistics, measured from the year of retirement through calendar year
15 nineteen hundred ninety-seven according to the following schedule:
16 YearofretirementPercentage
17 1973through199650%
18 1971and197255%
19 197060%
20 196965%
21 196870%
22 196780%
23 196690%
24 priorto1966100%
25 Said adjusted benefit, commencing September first, two thousand twenty-
26 five, shall be computed on a base benefit amount not to exceed eighteen
27 thousand dollars of the retirement allowance otherwise payable, computed
28 without optional modification, set forth herein above. Any benefit
29 received pursuant to this subdivision shall be in lieu of any benefit
30 received pursuant to section five hundred thirty-two of this article,
31 unless such benefits are in excess of those provided by this section, in
32 which case such benefits shall be paid by the retirement system pursuant
33 to such provision.
34 § 4. Subdivision f of section 13-696 of the administrative code of the
35 city of New York, as added by chapter 125 of the laws of 2000, is
36 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. 3414 5
1 Said adjusted benefit shall be computed on a base benefit amount not to
2 exceed eighteen thousand dollars of the annual fixed retirement allow-
3 ance otherwise payable, computed without optional modification. Any
4 benefit received pursuant to this subdivision shall be in lieu of any
5 benefit received pursuant to chapter three hundred ninety of the laws of
6 nineteen hundred ninety-eight, and any preceding provision of law
7 providing for supplementation.
8 Commencing September first, two thousand twenty-five, all retired
9 members who have retired prior to the calendar year nineteen hundred
10 ninety-seven and who meet the eligibility criteria set forth in subdivi-
11 sion a of this section shall be paid an adjusted benefit in monthly
12 installments on the basis provided for in this subdivision. Said
13 adjusted benefit shall be equal to a percentage of the change in consum-
14 er price index (all urban consumers, CPI-U, U.S. city average, all
15 items, 1982-84=100), published by the United States bureau of labor
16 statistics, measured from the year of retirement through calendar year
17 nineteen hundred ninety-seven according to the following schedule:
18 Year of retirementPercentage
19 1973 through 199650%
20 1971 and 197255%
21 197060%
22 196965%
23 196870%
24 196780%
25 196690%
26 prior to 1966100%
27 Said adjusted benefit, commencing September first, two thousand twenty-
28 five, shall be computed on the base benefit amount of the retirement
29 allowance otherwise payable, computed without optional modification, set
30 forth herein above. Any benefit received pursuant to this subdivision
31 shall be in lieu of any benefit received pursuant to section 13-695 of
32 this article.
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 2025, 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 (NYSLERS), 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 suffi-
cient to pay the cost of the provision. If this bill were enacted during
the 2025 Legislative Session, the increase in the present value of bene-
fits would be approximately $68,600. To fund these costs, the State of
New York will be required to pay $76,600 (including interest) as of
March 1, 2026.
Insofar as this bill affects the New York State and Local Police and
Fire Retirement System (NYSLPFRS), the increased costs would be shared
by the State of New York and the local participating employers in
NYSLPFRS. If this bill were enacted during the 2025 Legislative Session,
the increase in the present value of benefits would be approximately
$188,000.
NYSLPFRS Increase in present Increase in required
S. 3414 6
value of benefits contributions
Pensioners $ 188,000 $ 0.0
Actives Tiers 1-5 (Closed) $0.0 $ 77,000
Actives Tier 6 (Open) $ 0.0 $ 111,000
Total $ 188,000 $ 188,000
In NYSLPFRS, this benefit improvement will be funded by increasing the
billing rates charged annually to cover both retrospective and prospec-
tive benefit increases. The annual contribution required of all partic-
ipating employers in NYSLPFRS would be approximately $3,500 to the State
of New York and approximately $15,000 to the local participating employ-
ers. This permanent annual cost will vary in subsequent billing cycles
with changes in the billing rate and salary of the affected members.
These estimated costs are based on 32 retirees and beneficiaries in
NYSLERS and 31 in NYSLPFRS as of March 31, 2024.
Summary of relevant resources:
Membership data as of March 31, 2024 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2024 actuari-
al valuation. Distributions and other statistics can be found in the
2024 Report of the Actuary and the 2024 Annual Comprehensive Financial
Report. The actuarial assumptions and methods used are described in the
2024 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, 2024 New York State and Local Retirement System Financial Statements
and Supplementary Information.
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 23, 2025, and intended for use only
during the 2025 Legislative Session, is Fiscal Note No. 2025-40. As
Chief Actuary of the New York State and Local Retirement System, 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.
