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--A
2025-2026 Regular Sessions
IN SENATE
January 27, 2025
___________
Introduced by Sens. JACKSON, ADDABBO, HARCKHAM, CLEARE, FERNANDEZ,
GOUNARDES, SCARCELLA-SPANTON, SKOUFIS -- read twice and ordered print-
ed, 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 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.
LBD06255-07-6
S. 3414--A 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 twenty-six, 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 YearofretirementPercentage
21 1973through199650%
22 1971and197255%
23 197060%
24 196965%
25 196870%
26 196780%
27 196690%
28 priorto1966100%
29 Said adjusted benefit commencing September first, two thousand twenty-
30 six, 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 seventy-
34 eight of 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. 3414--A 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 twenty-six, 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 YearofretirementPercentage
19 1973through199650%
20 1971and197255%
21 197060%
22 196965%
23 196870%
24 196780%
25 196690%
26 priorto1966100%
27 Said adjusted benefit commencing September first, two thousand twenty-
28 six, 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 three
32 hundred seventy-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. 3414--A 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 twenty-six, 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 YearofretirementPercentage
21 1973through199650%
22 1971and197255%
23 197060%
24 196965%
25 196870%
26 196780%
27 196690%
28 priorto1966100%
29 Said adjusted benefit, commencing September first, two thousand twenty-
30 six, shall be computed on a base benefit amount not to exceed eighteen
31 thousand dollars of the retirement allowance otherwise payable, computed
32 without optional modification, set forth herein above. Any benefit
33 received pursuant to this subdivision shall be in lieu of any benefit
34 received pursuant to section five hundred thirty-two of this article,
35 unless such benefits are in excess of those provided by this section, in
36 which case such benefits shall be paid by the retirement system pursuant
37 to such provision.
38 § 4. Subdivision f of section 13-696 of the administrative code of the
39 city of New York, as added by chapter 125 of the laws of 2000, is
40 amended to read as follows:
41 f. Commencing September first, two thousand, all retired members who
42 have retired prior to the calendar year nineteen hundred ninety-seven
43 and who meet the eligibility criteria set forth in subdivision a of this
44 section shall be paid an adjusted benefit in monthly installments on the
45 basis provided for in this subdivision. Said adjusted benefit shall be
46 equal to a percentage of the change in consumer price index (all urban
47 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
48 by the United States bureau of labor statistics, measured from the year
49 of retirement through calendar year nineteen hundred ninety-seven
50 according to the following schedule:
51 Year of retirement Percentage
52 1968 through 1996 50%
53 1966 and 1967 55%
54 1965 60%
55 1964 65%
S. 3414--A 5
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 annual fixed retirement allow-
7 ance otherwise payable, computed without optional modification. Any
8 benefit received pursuant to this subdivision shall be in lieu of any
9 benefit received pursuant to chapter three hundred ninety of the laws of
10 nineteen hundred ninety-eight, and any preceding provision of law
11 providing for supplementation.
12 Commencing September first, two thousand twenty-six, 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 retirementPercentage
23 1973 through 199650%
24 1971 and 197255%
25 197060%
26 196965%
27 196870%
28 196780%
29 196690%
30 prior to 1966100%
31 Said adjusted benefit, commencing September first, two thousand twenty-
32 six, 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 13-695 of
36 this article.
37 § 5. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would increase the cost-of-living adjustment (COLA) for New
York public retirement systems. Starting with September 2026, additional
payments would be made for retirements after 1960 and prior to 1973.
Insofar as this bill affects the New York State and Local Employees'
Retirement System (NYSLERS), this bill would increase the present value
of benefits by approximately $190,000.
To fund these costs, the state of New York will be required to pay
$211,000 (including interest) as of March 1, 2027.
Insofar as this bill affects the New York State and Local Police and
Fire Retirement System (NYSLPFRS), the present value of benefits would
increase approximately $110,000.
NYSLPFRS Increase in present Increase in required
value of benefits contributions
Pensioners $ 113,000 $ 0
Actives Tiers 1-5 (Closed)$ 0 $ 38,400
Actives Tier 6 (Open) $ 0 $ 74,600
Total $ 113,000 $ 113,000
S. 3414--A 6
Benefit improvements will be funded by increasing the billing rates
charged annually. The annual contribution required of all participating
employers in NYSLPFRS would be approximately $1,800 to the state of New
York and $7,600 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.
These estimated costs are based on 26 affected retirees and benefici-
aries in NYSLERS and 20 in NYSLPFRS as of March 31, 2025.
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 January 5, 2026, and intended for use only during
the 2026 Legislative Session, is Fiscal Note Number 2026-13. 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 Pro-
fessional 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 #06255-05-6.
This bill would amend subdivision f of section 532-a of the Education
Law to provide an increase in supplementation for retired members and
beneficiaries who meet the eligibility requirements set forth in subdi-
vision 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 maximum annual benefit without optional modification and
would be effective September 1, 2026.
Cost:
The annual cost to the participating employers of the New York State
Teachers' Retirement System would be negligible if this bill was
enacted.
Data:
This bill is expected to impact approximately 5 members. Member data
as of June 30, 2025, prepared for the most recent actuarial 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.
S. 3414--A 7
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, 2026-20, dated February 2, 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:
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, 2026 for NYCRS members
and their spouses who retired during the period 1961 through 1972.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS TRS BERS POLICE FIRE TOTAL
2027 0.4 0.0 0.0 0.8 0.8 2.0
2028 0.0 0.0 0.0 0.0 0.0 0.0
2029 0.0 0.0 0.0 0.0 0.0 0.0
2030 0.0 0.0 0.0 0.0 0.0 0.0
2031 0.0 0.0 0.0 0.0 0.0 0.0
2032 0.0 0.0 0.0 0.0 0.0 0.0
2033 0.0 0.0 0.0 0.0 0.0 0.0
2034 0.0 0.0 0.0 0.0 0.0 0.0
2035 0.0 0.0 0.0 0.0 0.0 0.0
2036 0.0 0.0 0.0 0.0 0.0 0.0
2037 0.0 0.0 0.0 0.0 0.0 0.0
S. 3414--A 8
2038 0.0 0.0 0.0 0.0 0.0 0.0
2039 0.0 0.0 0.0 0.0 0.0 0.0
2040 0.0 0.0 0.0 0.0 0.0 0.0
2041 0.0 0.0 0.0 0.0 0.0 0.0
2042 0.0 0.0 0.0 0.0 0.0 0.0
2043 0.0 0.0 0.0 0.0 0.0 0.0
2044 0.0 0.0 0.0 0.0 0.0 0.0
2045 0.0 0.0 0.0 0.0 0.0 0.0
2046 0.0 0.0 0.0 0.0 0.0 0.0
2047 0.0 0.0 0.0 0.0 0.0 0.0
2048 0.0 0.0 0.0 0.0 0.0 0.0
2049 0.0 0.0 0.0 0.0 0.0 0.0
2050 0.0 0.0 0.0 0.0 0.0 0.0
2051 0.0 0.0 0.0 0.0 0.0 0.0
The increase in employer contributions of $2.0 million is estimated to
be $1.8 million for New York City and $0.2 million for the other obli-
gors of NYCRS.
PRESENT VALUE OF BENEFITS: The Present Value of Benefits is the
discounted expected value of benefits paid to current members if all
assumptions are met.
EXPECTED INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
as of June 30, 2025 ($ in Millions)
Present Value (PV) NYCERS TRS BERS POLICE FIRE
(1) PV of Employer Contributions: 0.4 0.0 0.0 0.7 0.7
(2) PV of Employee Contributions: 0.00.00.00.00.0
Total PV of Benefits (1) + (2): 0.4 0.0 0.0 0.7 0.7
UNFUNDED ACCRUED LIABILITY (UAL): Actuarial Accrued Liabilities are
the portion of the Present Value of Benefits allocated to past service.
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: 0.4 M 0.0 M 0.0 M 0.7 M 0.7 M
Number of Payments: 1 N/A N/A 1 1
Amortization Payment: 0.4 M 0.0 M 0.0 M 0.8 M 0.8 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
Receiving Members
- Number Count: 95 0 0 85 61
- Average Age: 93.3 N/A N/A 89.1 88.9
BACKGROUND: Beginning September 1, 2000, members who retired before
January 1, 1997 and met certain eligibility requirements to receive a
COLA, received an adjusted monthly benefit based on a percentage of the
change in the consumer price index from their retirement year through
1997.
For purposes of this Fiscal Note, it is assumed that the revised
percentages shown in the table below will replace the current percent-
S. 3414--A 9
ages for these retirees or surviving eligible beneficiaries, effective
September 1, 2026:
Year of Retirement Current Percentage Revised Percentage
1973 through 1996 50% 50%
1971 through 1972 50% 55%
1970 50% 60%
1969 50% 65%
1968 50% 70%
1967 55% 80%
1966 55% 90%
Year of Retirement Current Percentage Revised Percentage
1965 60% 100%
1964 65% 100%
1963 70% 100%
1962 80% 100%
1961 90% 100%
Prior to 1961 100% 100%
ASSUMPTIONS AND METHODS: The estimates presented herein have been
calculated based on the Revised 2021 Actuarial Assumptions and Methods
of the impacted retirement systems.
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.
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 2026-63 dated April 16,
2026 was prepared by the Chief Actuary for the New York City Retirement
Systems and Pension Funds and is intended for use only during the 2026
Legislative Session.
