STATE OF NEW YORK
________________________________________________________________________
8023--B
2025-2026 Regular Sessions
IN SENATE
May 15, 2025
___________
Introduced by Sen. JACKSON -- 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 -- 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 cost of living adjustments for certain retirees
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision a 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 a. A cost-of-living adjustment shall be payable on the basis provided
5 for in this section to: (i) all pensioners who have attained age sixty-
6 two and have been retired for [five] two years; (ii) all pensioners who
7 have attained age fifty-five and have been retired for [ten] five years;
8 (iii) all disability pensioners regardless of age who have been retired
9 for [five] two years; and (iv) all recipients of an accidental death
10 benefit regardless of age who have been receiving such benefit for
11 [five] two years.
12 § 2. Subdivision a of section 378-a of the retirement and social secu-
13 rity law, as added by chapter 125 of the laws of 2000, is amended to
14 read as follows:
15 a. A cost-of-living adjustment shall be payable on the basis provided
16 for in this section to: (i) all pensioners who have attained age sixty-
17 two and have been retired for [five] two years; (ii) all pensioners who
18 have attained age fifty-five and have been retired for [ten] five years;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11191-04-6
S. 8023--B 2
1 and (iii) all disability pensioners regardless of age who have been
2 retired for [five] two years.
3 § 3. Subdivision a of section 532-a of the education law, as added by
4 chapter 125 of the laws of 2000, is amended to read as follows:
5 a. A cost-of-living adjustment shall be payable on the basis provided
6 for in this section to: (i) all pensioners who have attained age sixty-
7 two and have been retired for [five] two years; (ii) all pensioners who
8 have attained age fifty-five and have been retired for [ten] five years;
9 (iii) all disability pensioners regardless of age who have been retired
10 for [five] two years; and (iv) all recipients of an accidental death
11 benefit regardless of age who have been receiving such benefit for
12 [five] two years.
13 § 4. Subdivision a of section 13-696 of the administrative code of the
14 city of New York, as amended by chapter 288 of the laws of 2001, is
15 amended to read as follows:
16 a. A cost-of-living adjustment shall be payable to retired members of
17 the New York city employees' retirement system, the New York city teach-
18 ers' retirement system, the New York city police pension fund, the New
19 York city fire department pension fund, the New York city board of
20 education retirement system or the relief and pension fund of the
21 department of street cleaning provided for in subchapter one of this
22 chapter on the basis provided for in this section to: (i) all retired
23 members who have attained age sixty-two and have been retired for [five]
24 two years; (ii) all retired members who have attained age fifty-five and
25 have been retired for [ten] five years; (iii) all members who retired
26 for disability regardless of age who have been retired for [five] two
27 years; and (iv) all recipients of an accidental death benefit regardless
28 of age who have been receiving such benefit for [five] two years.
29 § 5. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This proposal would improve the cost-of-living adjustment (COLA) in
the New York State and Local Retirement System by accelerating eligibil-
ity. COLA would be payable to (1) service pensioners aged sixty-two and
retired two years, (2) service pensioners aged fifty-five and retired
five years, (3) disability pensioners retired two years, and (4) acci-
dental death beneficiaries after receiving a benefit for two years.
Insofar as this bill affects the New York State and Local Employees'
Retirement System (NYSLERS), the present value of benefits would
increase by approximately $1.7 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 $1.42 billion as of March 1, 2027.
(2) To fund prospective costs, the annual contribution required of all
participating employers in NYSLERS would increase 0.14% of billable
salary, or approximately $19 million to the state of New York and $29
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.
This proposal primarily benefits current and former members of Tiers 1
- 5. The cost is primarily borne by current and future members of Tier
6.
S. 8023--B 3
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 $150 million.
NYSLPFRS Increase in present Increase in required
value of benefits contributions
Pensioners $65 mn $ 0 mn
Actives Tiers 1-5 (Closed) $53 mn $50 mn
Actives Tier 6 (Open) $32 mn $100 mn
Total $150 mn $150 mn
Benefit improvements will be funded by increasing the billing rates
charged annually. The annual contribution required of all participating
employers in NYSLPFRS would increase 0.3% of billable salary, or approx-
imately $2.7 million to the state of New York and $11 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 proposed change, 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 Finan-
cial 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 proposed change nor is it intended to serve as a substitute for
the professional judgment of an attorney.
This estimate, dated January 9, 2026, and intended for use only during
the 2026 Legislative Session, is Fiscal Note Number 2026-26. As Chief
Actuary of the New York State and Local Retirement System, I, Aaron
Schottin Young, hereby certify that this analysis complies with applica-
ble 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 objec-
tivity.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
Bill Description:
This fiscal note is prepared for legislative bill draft #11191-01-5.
This bill would amend subdivision a of Section 532-a of the Education
Law to change the eligibility for the cost-of-living adjustment (COLA)
for all current and future retirees. Retirees retired for service would
be eligible for the COLA upon attainment of age sixty-two with two years
of retirement or age fifty-five with five years of retirement. The
current COLA eligibility requirement is attainment of age sixty-two with
five years of retirement or age fifty-five with ten years of retirement.
Disability retirees would be eligible for the COLA regardless of age
with two years of retirement instead of the five years currently
required. Recipients of an accidental death benefit would be eligible
S. 8023--B 4
for the COLA regardless of age after receiving such benefit for two
years instead of the five years currently required.
Cost:
The annual cost to the participating employers of the New York State
Teachers' Retirement System is estimated to be $80.5 million or 0.39% 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 presented in the System's Actuari-
al 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, 2026-9, dated January 29, 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 accelerate eligibil-
ity for Cost-of-Living Adjustment (COLA) for service, vested, and disa-
bled retirees, and for accidental death benefit recipients of NYCRS.
S. 8023--B 5
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS TRS BERS POLICE FIRE TOTAL
2027 289.1 148.2 32.2 66.6 20.4 556.5
2028 50.4 29.1 7.2 6.1 3.6 96.4
2029 50.3 29.0 7.2 6.0 3.6 96.1
2030 50.2 29.0 7.3 5.9 3.6 96.0
2031 50.1 28.9 7.3 5.8 3.5 95.6
2032 50.0 28.9 7.4 5.8 3.5 95.6
2033 50.0 28.9 7.4 5.8 3.5 95.6
2034 50.0 28.9 7.5 5.8 3.5 95.7
2035 50.0 28.9 7.5 5.8 3.5 95.7
2036 50.1 29.0 7.6 5.8 3.5 96.0
2037 50.3 29.0 7.6 5.8 3.5 96.2
2038 50.5 29.1 7.7 5.8 3.5 96.6
2039 19.8 29.2 7.7 3.3 3.5 63.5
2040 20.1 29.3 4.3 3.3 1.9 58.9
2041 20.4 12.0 4.3 3.3 1.9 41.9
2042 20.7 12.2 4.4 3.4 1.9 42.6
2043 21.0 12.4 4.5 3.4 1.9 43.2
2044 21.3 12.6 4.6 3.4 1.9 43.8
2045 21.7 12.8 4.7 3.4 2.0 44.6
2046 22.1 13.0 4.7 3.4 2.0 45.2
2047 22.6 13.2 4.8 3.4 2.0 46.0
2048 23.0 13.5 4.9 3.4 2.0 46.8
2049 23.5 13.8 5.0 3.4 2.0 47.7
2050 23.9 14.1 5.1 3.4 2.0 48.5
2051 24.4 14.4 5.3 3.4 2.0 49.5
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 0.05%
for NYCERS, 0.04% for TRS, 0.10% for BERS, 0.02% for POLICE, and 0.04%
for FIRE.
The initial increase in employer contributions of $556.5 million is
estimated to be $420.1 million for New York City and $136.4 million for
the other obligors of NYCRS.
PRESENT VALUE OF BENEFITS: The Present Value of Benefits is the
discounted expected value of benefits paid to current members if all
assumptions are met, including future service accrual and pay increases.
Future new hires are not included in this present value.
INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
as of June 30, 2025 ($ in Millions)
Present Value (PV) NYCERS TRS BERS POLICE FIRE
(1) PV of Employer Contributions: 600.2 356.8 82.1 105.0 46.3
(2) PV of Employee Contributions:
0.0 0.0 0.0 0.0 0.0
Total PV of Benefits (1) + (2): 600.2 356.8 82.1 105.0 46.3
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
S. 8023--B 6
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: 452.2 M 255.2 M 51.1 M 73.9 M 28.5 M
Number of Payments: 12 14 13 12 13
Amortization Payment: 30.8 M 17.5 M 3.5 M 2.5 M 1.7 M
Additional One-time Payment: 238.6 M 119.1 M 25.1 M 60.4 M 16.7 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: 18,243 22,239 2,990 681 36
- Average Age: 54.2 47.3 52.5 42.8 44.9
Receiving Members
- Number Count: 35,025 15,396 4,806 9,917 2,431
- Average Age: 64.3 64.6 67.5 54.0 54.6
IMPACT ON MEMBER BENEFITS: Under this proposed legislation, the time
periods for COLA eligibility would be reduced as follows:
* For service and vested retirees: From age 62 and retired for five
years to age 62 and retired for two years.
* For service and vested retirees if better than above: From age 55
and retired for 10 years to age 55 and retired for five years.
* For disabled retirees: from retired for five years to retired for
two years.
* For accidental death benefit recipients: from benefit in receipt for
five years to benefit in receipt for two years.
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:
* 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.
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.
S. 8023--B 7
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 2026-76 dated May 5, 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.
