STATE OF NEW YORK
________________________________________________________________________
5209--B
2023-2024 Regular Sessions
IN ASSEMBLY
March 6, 2023
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- again reported from said committee with amendments, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the retirement and social security law and the education
law, in relation to member contribution per centum increases
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs 1, 2, 3, 4 and 5 of subdivision a of section 517
2 of the retirement and social security law, as added by chapter 18 of the
3 laws of 2012, are amended to read as follows:
4 1. members with wages of forty-five thousand dollars per annum or less
5 shall contribute three per centum of annual wages. On April one, two
6 thousand twenty-four, members with wages of fifty thousand dollars per
7 annum or less shall contribute three per centum of annual wages, and
8 beginning on April one, two thousand twenty-five, the wages in this
9 subparagraph shall be increased by the annual inflation, as determined
10 from the increase in the consumer price index in the one year period
11 ending on December thirty-first of the year prior. Said percentage shall
12 then be rounded up to the next higher one-tenth of one percent and shall
13 not exceed three percent;
14 2. members with wages greater than forty-five thousand per annum, but
15 not more than fifty-five thousand per annum shall contribute three and
16 one-half per centum of annual wages. On April one, two thousand twenty-
17 four, members with wages greater than fifty thousand per annum, but not
18 more than sixty thousand per annum shall contribute three and one-half
19 per centum of annual wages, and beginning on April one, two thousand
20 twenty-five, the wages in this subparagraph shall be increased by the
21 annual inflation, as determined from the increase in the consumer price
22 index in the one year period ending on December thirty-first of the year
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03315-06-3
A. 5209--B 2
1 prior. Said percentage shall then be rounded up to the next higher one-
2 tenth of one percent and shall not exceed three percent;
3 3. members with wages greater than fifty-five thousand per annum, but
4 not more than seventy-five thousand per annum shall contribute four and
5 one-half per centum of annual wages. On April one, two thousand twenty-
6 four, members with wages greater than sixty thousand per annum, but not
7 more than eighty thousand per annum shall contribute four and one-half
8 per centum of annual wages, and beginning on April one, two thousand
9 twenty-five, the wages in this subparagraph shall be increased by the
10 annual inflation, as determined from the increase in the consumer price
11 index in the one year period ending on December thirty-first of the year
12 prior. Said percentage shall then be rounded up to the next higher one-
13 tenth of one percent and shall not exceed three percent;
14 4. members with wages greater than seventy-five thousand per annum but
15 not more than one hundred thousand per annum shall contribute five and
16 three-quarters per centum of annual wages. On April one, two thousand
17 twenty-four, members with wages greater than eighty thousand dollars per
18 annum but not more than one hundred five thousand dollars per annum
19 shall contribute five and three-quarters per centum of annual wages, and
20 beginning on April one, two thousand twenty-five, the wages in this
21 subparagraph shall be increased by the annual inflation, as determined
22 from the increase in the consumer price index in the one year period
23 ending on December thirty-first of the year prior. Said percentage shall
24 then be rounded up to the next higher one-tenth of one percent and shall
25 not exceed three percent; and
26 5. members with wages greater than one hundred thousand per annum
27 shall contribute six per centum of annual wages. On April one, two thou-
28 sand twenty-four, members with wages greater than one hundred five thou-
29 sand dollars per annum shall contribute six per centum of annual wages,
30 and beginning on April one, two thousand twenty-five, the wages in this
31 subparagraph shall be increased by the annual inflation, as determined
32 from the increase in the consumer price index in the one year period
33 ending on December thirty-first of the year prior. Said percentage shall
34 then be rounded up to the next higher one-tenth of one percent and shall
35 not exceed three percent.
36 § 2. Subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph 1 of
37 subdivision a, subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph
38 2 of subdivision a, paragraphs 1, 2, 3, 4 and 5 of subdivision f and
39 paragraphs 1, 2, 3, 4 and 5 of subdivision g of section 613 of the
40 retirement and social security law, subparagraphs (i), (ii), (iii), (iv)
41 and (v) of paragraph 1 and subparagraphs (i), (ii), (iii), (iv) and (v)
42 of paragraph 2 of subdivision a as amended by chapter 510 of the laws of
43 2015 and paragraphs 1, 2, 3, 4 and 5 of subdivision f and paragraphs 1,
44 2, 3, 4 and 5 of subdivision g as added by chapter 18 of the laws of
45 2012, are amended to read as follows:
46 (i) members with wages of forty-five thousand dollars per annum or
47 less shall contribute three per centum of annual wages. On April one,
48 two thousand twenty-four, members with wages of fifty thousand dollars
49 per annum or less shall contribute three per centum of annual wages, and
50 beginning on April one, two thousand twenty-five, the wages in this
51 subparagraph shall be increased by the annual inflation, as determined
52 from the increase in the consumer price index in the one year period
53 ending on December thirty-first of the year prior. Said percentage shall
54 then be rounded up to the next higher one-tenth of one percent and shall
55 not exceed three percent;
A. 5209--B 3
1 (ii) members with wages greater than forty-five thousand per annum,
2 but not more than fifty-five thousand per annum shall contribute three
3 and one-half per centum of annual wages. On April one, two thousand
4 twenty-four, members with wages greater than fifty thousand per annum,
5 but not more than of sixty thousand per annum shall contribute three
6 and one-half per centum of annual wages, and beginning on April one, two
7 thousand twenty-five, the wages in this subparagraph shall be increased
8 by the annual inflation, as determined from the increase in the consumer
9 price index in the one year period ending on December thirty-first of
10 the year prior. Said percentage shall then be rounded up to the next
11 higher one-tenth of one percent and shall not exceed three percent;
12 (iii) members with wages greater than fifty-five thousand per annum,
13 but not more than seventy-five thousand per annum shall contribute four
14 and one-half per centum of annual wages. On April one, two thousand
15 twenty-four, members with wages greater than sixty thousand per annum,
16 but not more than eighty thousand per annum shall contribute four and
17 one-half per centum of annual wages, and beginning on April one, two
18 thousand twenty-five, the wages in this subparagraph shall be increased
19 by the annual inflation, as determined from the increase in the consumer
20 price index in the one year period ending on December thirty-first of
21 the year prior. Said percentage shall then be rounded up to the next
22 higher one-tenth of one percent and shall not exceed three percent;
23 (iv) members with wages greater than seventy-five thousand per annum
24 but not more than one hundred thousand per annum shall contribute five
25 and three-quarters per centum of annual wages. On April one, two thou-
26 sand twenty-four, members with wages greater than eighty thousand
27 dollars per annum but not more than one hundred five thousand dollars
28 per annum shall contribute five and three-quarters per centum of annual
29 wages, and beginning on April one, two thousand twenty-five, the wages
30 in this subparagraph shall be increased by the annual inflation, as
31 determined from the increase in the consumer price index in the one year
32 period ending on December thirty-first of the year prior. Said percent-
33 age shall then be rounded up to the next higher one-tenth of one percent
34 and shall not exceed three percent; and
35 (v) members with wages greater than one hundred thousand per annum
36 shall contribute six per centum of annual wages. On April one, two thou-
37 sand twenty-four, members with wages greater than one hundred five thou-
38 sand dollars per annum shall contribute six per centum of annual wages,
39 and beginning on April one, two thousand twenty-five, the wages in this
40 subparagraph shall be increased by the annual inflation, as determined
41 from the increase in the consumer price index in the one year period
42 ending on December thirty-first of the year prior. Said percentage shall
43 then be rounded up to the next higher one-tenth of one percent and shall
44 not exceed three percent.
45 (i) members with wages of forty-five thousand dollars per annum or
46 less shall contribute three per centum of annual wages. On April one,
47 two thousand twenty-four, members with wages of fifty thousand dollars
48 per annum or less shall contribute three per centum of annual wages, and
49 beginning on April one, two thousand twenty-five, the wages in this
50 subparagraph shall be increased by the annual inflation, as determined
51 from the increase in the consumer price index in the one year period
52 ending on December thirty-first of the year prior. Said percentage shall
53 then be rounded up to the next higher one-tenth of one percent and shall
54 not exceed three percent;
55 (ii) members with wages greater than forty-five thousand per annum,
56 but not more than fifty-five thousand per annum shall contribute three
A. 5209--B 4
1 and one-half per centum of annual wages. On April one, two thousand
2 twenty-four, members with wages greater than fifty thousand per annum,
3 but not more than of sixty thousand per annum shall contribute three
4 and one-half per centum of annual wages, and beginning on April one, two
5 thousand twenty-five, the wages in this subparagraph shall be increased
6 by the annual inflation, as determined from the increase in the consumer
7 price index in the one year period ending on December thirty-first of
8 the year prior. Said percentage shall then be rounded up to the next
9 higher one-tenth of one percent and shall not exceed three percent;
10 (iii) members with wages greater than fifty-five thousand per annum,
11 but not more than seventy-five thousand per annum shall contribute four
12 and one-half per centum of annual wages. On April one, two thousand
13 twenty-four, members with wages greater than sixty thousand per annum,
14 but not more than eighty thousand per annum shall contribute four and
15 one-half per centum of annual wages, and beginning on April one, two
16 thousand twenty-five, the wages in this subparagraph shall be increased
17 by the annual inflation, as determined from the increase in the consumer
18 price index in the one year period ending on December thirty-first of
19 the year prior. Said percentage shall then be rounded up to the next
20 higher one-tenth of one percent and shall not exceed three percent;
21 (iv) members with wages greater than seventy-five thousand per annum
22 but not more than one hundred thousand per annum shall contribute five
23 and three-quarters per centum of annual wages. On April one, two thou-
24 sand twenty-four, members with wages greater than eighty thousand
25 dollars per annum but not more than one hundred five thousand dollars
26 per annum shall contribute five and three-quarters per centum of annual
27 wages, and beginning on April one, two thousand twenty-five, the wages
28 in this subparagraph shall be increased by the annual inflation, as
29 determined from the increase in the consumer price index in the one year
30 period ending on December thirty-first of the year prior. Said percent-
31 age shall then be rounded up to the next higher one-tenth of one percent
32 and shall not exceed three percent; and
33 (v) members with wages greater than one hundred thousand per annum
34 shall contribute six per centum of annual wages. On April one, two thou-
35 sand twenty-four, members with wages greater than one hundred five thou-
36 sand dollars per annum shall contribute six per centum of annual wages,
37 and beginning on April one, two thousand twenty-five, the wages in this
38 subparagraph shall be increased by the annual inflation, as determined
39 from the increase in the consumer price index in the one year period
40 ending on December thirty-first of the year prior. Said percentage shall
41 then be rounded up to the next higher one-tenth of one percent and shall
42 not exceed three percent.
43 1. members with wages of forty-five thousand dollars per annum or less
44 shall contribute three per centum of annual wages. On April one, two
45 thousand twenty-four, members with wages of fifty thousand dollars per
46 annum or less shall contribute three per centum of annual wages, and
47 beginning on April one, two thousand twenty-five, the wages in this
48 subparagraph shall be increased by the annual inflation, as determined
49 from the increase in the consumer price index in the one year period
50 ending on December thirty-first of the year prior. Said percentage shall
51 then be rounded up to the next higher one-tenth of one percent and shall
52 not exceed three percent;
53 2. members with wages greater than forty-five thousand per annum, but
54 not more than fifty-five thousand per annum shall contribute three and
55 one-half per centum of annual wages. On April one, two thousand twenty-
56 four, members with wages greater than fifty thousand per annum, but not
A. 5209--B 5
1 more than of sixty thousand per annum shall contribute three and one-
2 half per centum of annual wages, and beginning on April one, two thou-
3 sand twenty-five, the wages in this subparagraph shall be increased by
4 the annual inflation, as determined from the increase in the consumer
5 price index in the one year period ending on December thirty-first of
6 the year prior. Said percentage shall then be rounded up to the next
7 higher one-tenth of one percent and shall not exceed three percent;
8 3. members with wages greater than fifty-five thousand per annum, but
9 not more than seventy-five thousand per annum shall contribute four and
10 one-half per centum of annual wages. On April one, two thousand twenty-
11 four, members with wages greater than sixty thousand per annum, but not
12 more than eighty thousand per annum shall contribute four and one-half
13 per centum of annual wages, and beginning on April one, two thousand
14 twenty-five, the wages in this subparagraph shall be increased by the
15 annual inflation, as determined from the increase in the consumer price
16 index in the one year period ending on December thirty-first of the year
17 prior. Said percentage shall then be rounded up to the next higher one-
18 tenth of one percent and shall not exceed three percent;
19 4. members with wages greater than seventy-five thousand per annum but
20 not more than one hundred thousand per annum shall contribute five and
21 three-quarters per centum of annual wages. On April one, two thousand
22 twenty-four, members with wages greater than eighty thousand dollars per
23 annum but not more than one hundred five thousand dollars per annum
24 shall contribute five and three-quarters per centum of annual wages, and
25 beginning on April one, two thousand twenty-five, the wages in this
26 subparagraph shall be increased by the annual inflation, as determined
27 from the increase in the consumer price index in the one year period
28 ending on December thirty-first of the year prior. Said percentage shall
29 then be rounded up to the next higher one-tenth of one percent and shall
30 not exceed three percent; and
31 5. members with wages greater than one hundred thousand per annum
32 shall contribute six per centum of annual wages. On April one, two thou-
33 sand twenty-four, members with wages greater than one hundred five thou-
34 sand dollars per annum shall contribute six per centum of annual wages,
35 and beginning on April one, two thousand twenty-five, the wages in this
36 subparagraph shall be increased by the annual inflation, as determined
37 from the increase in the consumer price index in the one year period
38 ending on December thirty-first of the year prior. Said percentage shall
39 then be rounded up to the next higher one-tenth of one percent and shall
40 not exceed three percent.
41 1. members with wages of forty-five thousand dollars per annum or less
42 shall contribute three per centum of annual wages. On April one, two
43 thousand twenty-four, members with wages of fifty thousand dollars per
44 annum or less shall contribute three per centum of annual wages, and
45 beginning on April one, two thousand twenty-five, the wages in this
46 subparagraph shall be increased by the annual inflation, as determined
47 from the increase in the consumer price index in the one year period
48 ending on December thirty-first of the year prior. Said percentage shall
49 then be rounded up to the next higher one-tenth of one percent and shall
50 not exceed three percent;
51 2. members with wages greater than forty-five thousand per annum, but
52 not more than fifty-five thousand per annum shall contribute three and
53 one-half per centum of annual wages. On April one, two thousand twenty-
54 four, members with wages greater than fifty thousand per annum, but not
55 more than of sixty thousand per annum shall contribute three and one-
56 half per centum of annual wages, and beginning on April one, two thou-
A. 5209--B 6
1 sand twenty-five, the wages in this subparagraph shall be increased by
2 the annual inflation, as determined from the increase in the consumer
3 price index in the one year period ending on December thirty-first of
4 the year prior. Said percentage shall then be rounded up to the next
5 higher one-tenth of one percent and shall not exceed three percent;
6 3. members with wages greater than fifty-five thousand per annum, but
7 not more than seventy-five thousand per annum shall contribute four and
8 one-half per centum of annual wages. On April one, two thousand twenty-
9 four, members with wages greater than sixty thousand per annum, but not
10 more than eighty thousand per annum shall contribute four and one-half
11 per centum of annual wages, and beginning on April one, two thousand
12 twenty-five, the wages in this subparagraph shall be increased by the
13 annual inflation, as determined from the increase in the consumer price
14 index in the one year period ending on December thirty-first of the year
15 prior. Said percentage shall then be rounded up to the next higher one-
16 tenth of one percent and shall not exceed three percent;
17 4. members with wages greater than seventy-five thousand per annum but
18 not more than one hundred thousand per annum shall contribute five and
19 three-quarters per centum of annual wages. On April one, two thousand
20 twenty-four, members with wages greater than eighty thousand dollars per
21 annum but not more than one hundred five thousand dollars per annum
22 shall contribute five and three-quarters per centum of annual wages, and
23 beginning on April one, two thousand twenty-five, the wages in this
24 subparagraph shall be increased by the annual inflation, as determined
25 from the increase in the consumer price index in the one year period
26 ending on December thirty-first of the year prior. Said percentage shall
27 then be rounded up to the next higher one-tenth of one percent and shall
28 not exceed three percent; and
29 5. members with wages greater than one hundred thousand per annum
30 shall contribute six per centum of annual wages. On April one, two thou-
31 sand twenty-four, members with wages greater than one hundred five thou-
32 sand dollars per annum shall contribute six per centum of annual wages,
33 and beginning on April one, two thousand twenty-five, the wages in this
34 subparagraph shall be increased by the annual inflation, as determined
35 from the increase in the consumer price index in the one year period
36 ending on December thirty-first of the year prior. Said percentage shall
37 then be rounded up to the next higher one-tenth of one percent and shall
38 not exceed three percent.
39 § 3. Subdivisions a, b, c, d and e of section 1204 of the retirement
40 and social security law, as added by chapter 18 of the laws of 2012, are
41 amended to read as follows:
42 a. members with wages of forty-five thousand dollars per annum or less
43 shall contribute three per centum of annual wages. On April one, two
44 thousand twenty-four, members with wages of fifty thousand dollars per
45 annum or less shall contribute three per centum of annual wages, and
46 beginning on April one, two thousand twenty-five, the wages in this
47 subparagraph shall be increased by the annual inflation, as determined
48 from the increase in the consumer price index in the one year period
49 ending on December thirty-first of the year prior. Said percentage shall
50 then be rounded up to the next higher one-tenth of one percent and shall
51 not exceed three percent;
52 b. members with wages greater than forty-five thousand per annum, but
53 not more than fifty-five thousand per annum shall contribute three and
54 one-half per centum of annual wages. On April one, two thousand twenty-
55 four, members with wages greater than fifty thousand per annum, but not
56 more than of sixty thousand per annum shall contribute three and one-
A. 5209--B 7
1 half per centum of annual wages, and beginning on April one, two thou-
2 sand twenty-five, the wages in this subparagraph shall be increased by
3 the annual inflation, as determined from the increase in the consumer
4 price index in the one year period ending on December thirty-first of
5 the year prior. Said percentage shall then be rounded up to the next
6 higher one-tenth of one percent and shall not exceed three percent;
7 c. members with wages greater than fifty-five thousand per annum, but
8 not more than seventy-five thousand per annum shall contribute four and
9 one-half per centum of annual wages. On April one, two thousand twenty-
10 four, members with wages greater than sixty thousand per annum, but not
11 more than eighty thousand per annum shall contribute four and one-half
12 per centum of annual wages, and beginning on April one, two thousand
13 twenty-five, the wages in this subparagraph shall be increased by the
14 annual inflation, as determined from the increase in the consumer price
15 index in the one year period ending on December thirty-first of the year
16 prior. Said percentage shall then be rounded up to the next higher one-
17 tenth of one percent and shall not exceed three percent;
18 d. members with wages greater than seventy-five thousand per annum but
19 not more than one hundred thousand per annum shall contribute five and
20 three-quarters per centum of annual wages. On April one, two thousand
21 twenty-four, members with wages greater than eighty thousand dollars per
22 annum but not more than one hundred five thousand dollars per annum
23 shall contribute five and three-quarters per centum of annual wages, and
24 beginning on April one, two thousand twenty-five, the wages in this
25 subparagraph shall be increased by the annual inflation, as determined
26 from the increase in the consumer price index in the one year period
27 ending on December thirty-first of the year prior. Said percentage shall
28 then be rounded up to the next higher one-tenth of one percent and shall
29 not exceed three percent; and
30 e. members with wages greater than one hundred thousand per annum
31 shall contribute six per centum of annual wages. On April one, two thou-
32 sand twenty-four, members with wages greater than one hundred five thou-
33 sand dollars per annum shall contribute six per centum of annual wages,
34 and beginning on April one, two thousand twenty-five, the wages in this
35 subparagraph shall be increased by the annual inflation, as determined
36 from the increase in the consumer price index in the one year period
37 ending on December thirty-first of the year prior. Said percentage shall
38 then be rounded up to the next higher one-tenth of one percent and shall
39 not exceed three percent.
40 § 4. Paragraphs (a), (b), (c), (d) and (e) of subdivision 2 of section
41 182 of the education law, as added by chapter 18 of the laws of 2012,
42 are amended to read as follows:
43 (a) members with wages of forty-five thousand dollars per annum or
44 less shall contribute three per centum of annual wages. On April one,
45 two thousand twenty-four, members with wages of fifty thousand dollars
46 per annum or less shall contribute three per centum of annual wages, and
47 beginning on April one, two thousand twenty-five, the wages in this
48 subparagraph shall be increased by the annual inflation, as determined
49 from the increase in the consumer price index in the one year period
50 ending on December thirty-first of the year prior. Said percentage shall
51 then be rounded up to the next higher one-tenth of one percent and shall
52 not exceed three percent;
53 (b) members with wages greater than forty-five thousand per annum, but
54 not more than fifty-five thousand per annum shall contribute three and
55 one-half per centum of annual wages. On April one, two thousand twenty-
56 four, members with wages greater than fifty thousand per annum, but not
A. 5209--B 8
1 more than of sixty thousand per annum shall contribute three and one-
2 half per centum of annual wages, and beginning on April one, two thou-
3 sand twenty-five, the wages in this subparagraph shall be increased by
4 the annual inflation, as determined from the increase in the consumer
5 price index in the one year period ending on December thirty-first of
6 the year prior. Said percentage shall then be rounded up to the next
7 higher one-tenth of one percent and shall not exceed three percent;
8 (c) members with wages greater than fifty-five thousand per annum, but
9 not more than seventy-five thousand per annum shall contribute four and
10 one-half per centum of annual wages. On April one, two thousand twenty-
11 four, members with wages greater than sixty thousand per annum, but not
12 more than eighty thousand per annum shall contribute four and one-half
13 per centum of annual wages, and beginning on April one, two thousand
14 twenty-five, the wages in this subparagraph shall be increased by the
15 annual inflation, as determined from the increase in the consumer price
16 index in the one year period ending on December thirty-first of the year
17 prior. Said percentage shall then be rounded up to the next higher one-
18 tenth of one percent and shall not exceed three percent;
19 (d) members with wages greater than seventy-five thousand per annum
20 but not more than one hundred thousand per annum shall contribute five
21 and three-quarters per centum of annual wages. On April one, two thou-
22 sand twenty-four, members with wages greater than eighty thousand
23 dollars per annum but not more than one hundred five thousand dollars
24 per annum shall contribute five and three-quarters per centum of annual
25 wages, and beginning on April one, two thousand twenty-five, the wages
26 in this subparagraph shall be increased by the annual inflation, as
27 determined from the increase in the consumer price index in the one year
28 period ending on December thirty-first of the year prior. Said percent-
29 age shall then be rounded up to the next higher one-tenth of one percent
30 and shall not exceed three percent; and
31 (e) members with wages greater than one hundred thousand per annum
32 shall contribute six per centum of annual wages. On April one, two thou-
33 sand twenty-four, members with wages greater than one hundred five thou-
34 sand dollars per annum shall contribute six per centum of annual wages,
35 and beginning on April one, two thousand twenty-five, the wages in this
36 subparagraph shall be increased by the annual inflation, as determined
37 from the increase in the consumer price index in the one year period
38 ending on December thirty-first of the year prior. Said percentage shall
39 then be rounded up to the next higher one-tenth of one percent and shall
40 not exceed three percent.
41 § 5. Subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph (d) of
42 subdivision 2 of section 392 of the education law, as added by chapter
43 18 of the laws of 2012, are amended to read as follows:
44 (i) members with wages of forty-five thousand dollars per annum or
45 less shall contribute three per centum of annual wages. On July one, two
46 thousand twenty-three, members with wages of fifty thousand dollars per
47 annum or less shall contribute three per centum of annual wages, and
48 beginning on July one, two thousand twenty-four, the wages in this
49 subparagraph shall be increased by the annual inflation, as determined
50 from the increase in the consumer price index in the one year period
51 ending on December thirty-first of the year prior. Said percentage shall
52 then be rounded up to the next higher one-tenth of one percent and shall
53 not exceed three percent;
54 (ii) members with wages greater than forty-five thousand per annum,
55 but not more than fifty-five thousand per annum shall contribute three
56 and one-half per centum of annual wages. On July one, two thousand twen-
A. 5209--B 9
1 ty-three, members with wages greater than fifty thousand per annum, but
2 not more than of sixty thousand per annum shall contribute three and
3 one-half per centum of annual wages, and beginning on July one, two
4 thousand twenty-four, the wages in this subparagraph shall be increased
5 by the annual inflation, as determined from the increase in the consumer
6 price index in the one year period ending on December thirty-first of
7 the year prior. Said percentage shall then be rounded up to the next
8 higher one-tenth of one percent and shall not exceed three percent;
9 (iii) members with wages greater than fifty-five thousand per annum,
10 but not more than seventy-five thousand per annum shall contribute four
11 and one-half per centum of annual wages. On July one, two thousand twen-
12 ty-three, members with wages greater than sixty thousand per annum, but
13 not more than eighty thousand per annum shall contribute four and one-
14 half per centum of annual wages, and beginning on July one, two thousand
15 twenty-four, the wages in this subparagraph shall be increased by the
16 annual inflation, as determined from the increase in the consumer price
17 index in the one year period ending on December thirty-first of the year
18 prior. Said percentage shall then be rounded up to the next higher one-
19 tenth of one percent and shall not exceed three percent;
20 (iv) members with wages greater than seventy-five thousand per annum
21 but not more than one hundred thousand per annum shall contribute five
22 and three-quarters per centum of annual wages. On July one, two thousand
23 twenty-three, members with wages greater than eighty thousand dollars
24 per annum but not more than one hundred five thousand dollars per annum
25 shall contribute five and three-quarters per centum of annual wages, and
26 beginning on July one, two thousand twenty-four, the wages in this
27 subparagraph shall be increased by the annual inflation, as determined
28 from the increase in the consumer price index in the one year period
29 ending on December thirty-first of the year prior. Said percentage shall
30 then be rounded up to the next higher one-tenth of one percent and shall
31 not exceed three percent; and
32 (v) members with wages greater than one hundred thousand per annum
33 shall contribute six per centum of annual wages. On July one, two thou-
34 sand twenty-three, members with wages greater than one hundred five
35 thousand dollars per annum shall contribute six per centum of annual
36 wages, and beginning on July one, two thousand twenty-four, the wages
37 in this subparagraph shall be increased by the annual inflation, as
38 determined from the increase in the consumer price index in the one year
39 period ending on December thirty-first of the year prior. Said percent-
40 age shall then be rounded up to the next higher one-tenth of one percent
41 and shall not exceed three percent.
42 § 6. Subparagraphs 1, 2, 3, 4 and 5 of paragraph (d) of subdivision 2
43 of section 6252 of the education law, as added by chapter 18 of the laws
44 of 2012, are amended to read as follows:
45 (1) members with wages of forty-five thousand dollars per annum or
46 less shall contribute three per centum of annual wages. On July one, two
47 thousand twenty-three, members with wages of fifty thousand dollars per
48 annum or less shall contribute three per centum of annual wages, and
49 beginning on July one, two thousand twenty-four, the wages in this
50 subparagraph shall be increased by the annual inflation, as determined
51 from the increase in the consumer price index in the one year period
52 ending on December thirty-first of the year prior. Said percentage shall
53 then be rounded up to the next higher one-tenth of one percent and shall
54 not exceed three percent;
55 (2) members with wages greater than forty-five thousand per annum, but
56 not more than fifty-five thousand per annum shall contribute three and
A. 5209--B 10
1 one-half per centum of annual wages. On July one, two thousand twenty-
2 three, members with wages greater than fifty thousand per annum, but not
3 more than of sixty thousand per annum shall contribute three and one-
4 half per centum of annual wages, and beginning on July one, two thousand
5 twenty-four, the wages in this subparagraph shall be increased by the
6 annual inflation, as determined from the increase in the consumer price
7 index in the one year period ending on December thirty-first of the year
8 prior. Said percentage shall then be rounded up to the next higher one-
9 tenth of one percent and shall not exceed three percent;
10 (3) members with wages greater than fifty-five thousand per annum, but
11 not more than seventy-five thousand per annum shall contribute four and
12 one-half per centum of annual wages. On July one, two thousand twenty-
13 three, members with wages greater than sixty thousand per annum, but not
14 more than eighty thousand per annum shall contribute four and one-half
15 per centum of annual wages, and beginning on July one, two thousand
16 twenty-four, the wages in this subparagraph shall be increased by the
17 annual inflation, as determined from the increase in the consumer price
18 index in the one year period ending on December thirty-first of the year
19 prior. Said percentage shall then be rounded up to the next higher one-
20 tenth of one percent and shall not exceed three percent;
21 (4) members with wages greater than seventy-five thousand per annum
22 but not more than one hundred thousand per annum shall contribute five
23 and three-quarters per centum of annual wages. On July one, two thousand
24 twenty-three, members with wages greater than eighty thousand dollars
25 per annum but not more than one hundred five thousand dollars per annum
26 shall contribute five and three-quarters per centum of annual wages, and
27 beginning on July one, two thousand twenty-four, the wages in this
28 subparagraph shall be increased by the annual inflation, as determined
29 from the increase in the consumer price index in the one year period
30 ending on December thirty-first of the year prior. Said percentage shall
31 then be rounded up to the next higher one-tenth of one percent and shall
32 not exceed three percent; and
33 (5) members with wages greater than one hundred thousand per annum
34 shall contribute six per centum of annual wages. On July one, two thou-
35 sand twenty-three, members with wages greater than one hundred five
36 thousand dollars per annum shall contribute six per centum of annual
37 wages, and beginning on July one, two thousand twenty-four, the wages
38 in this subparagraph shall be increased by the annual inflation, as
39 determined from the increase in the consumer price index in the one year
40 period ending on December thirty-first of the year prior. Said percent-
41 age shall then be rounded up to the next higher one-tenth of one percent
42 and shall not exceed three percent.
43 § 7. Notwithstanding any other provision of law to the contrary, none
44 of the provisions of this act shall be subject to section 25 of the
45 retirement and social security law.
46 § 8. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would increase the wage ranges to which member contribution
rates are applied for Tier 6 members effective April 1, 2024 by $5,000.
Beginning on April 1, 2025, the wage ranges would increase each year by
the annual inflation rate rounded up to the next tenth of a percent, not
to exceed 3%.
The current contribution rates and wage ranges for Tier 6 members are:
3% for wages of $45,000 or less
3.5% for wages greater than $45,000 and less than or equal to $55,000
4.5% for wages greater than $55,000 and less than or equal to $75,000
A. 5209--B 11
5.75% for wages greater than $75,000 and less than or equal to
$100,000
6.0% for wages greater than $100,000
Insofar as this bill affects the New York State and Local Employees'
Retirement System (NYSLERS), increased costs would be shared by the
State of New York and all participating employers in the NYSLERS. If
this bill is enacted during the 2023 legislative session, there will be
an increase in the present value of future costs of approximately $588
million.
In the NYSLERS, this benefit improvement will be funded by increasing
the billing rates charged annually. The annual contribution required of
all participating employers in NYSLERS is approximately 0.2% of billable
salary, or $26 million to the State of New York and approximately $38
million to the local participating employers. This permanent annualcost will vary in subsequent billing cycles with changes in the wage
ranges and salary of the affected members.
Insofar as this bill affects the New York State and Local Police and
Fire Retirement System (NYSLPFRS), increased costs would be shared by
the State of New York and all participating employers in the NYSLPFRS.
If this bill is enacted during the 2023 legislative session, there will
be an increase in the present value of future costs of approximately
$11.2 million.
In the NYSLPFRS, this benefit improvement will be funded by increasing
the billing rates charged annually. The annual contribution required of
all participating employers in NYSLERS is less than 0.1% of billable
salary, or approximately $225,000 to the State of New York and approxi-
mately $890,000 to the local participating employers. This permanentannual cost will vary in subsequent billing cycles with changes in the
wage ranges and salary of the affected members.
Summary of relevant resources:
Membership data as of March 31, 2022 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2022 actuari-
al valuation. Distributions and other statistics can be found in the
2022 Report of the Actuary and the 2022 Annual Comprehensive Financial
Report.
The actuarial assumptions and methods used are described in the 2020,
2021, and 2022 Annual Report to the Comptroller on Actuarial Assump-
tions, 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, 2022
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 January 31, 2023, and intended for use only
during the 2023 Legislative Session, is Fiscal Note No. 2023-30,
prepared by the Actuary for the New York State and Local Retirement
System.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend various sections of the Retirement and Social
Security Law and the Education Law to increase the salary ranges used in
determining the employee contribution percentages for Tier 6 members
thereby decreasing future required employee contributions. The current
A. 5209--B 12
salary ranges would each increase by $5,000 on April 1, 2024. Beginning
on April 1, 2025, salary ranges would then be increased annually by the
increase in the consumer price index in the one year period ending on
December thirty-first of the year prior, not to exceed 3%.
The annual cost to the employers of members of the New York State
Teachers' Retirement System for this benefit is estimated to be $30.0
million or 0.16% of payroll if this bill is enacted.
The System's "new entrant rate", a hypothetical employer contribution
rate that would occur if we started a new Retirement System without any
assets, is equal to 5.15% of pay under the current Tier 6 benefit struc-
ture. This can be thought of as the long-term expected employer cost of
Tier 6, based on current actuarial assumptions. For the proposed change
to the Tier 6 benefit structure under this bill, this new entrant rate
is estimated to increase to 5.60% of pay, an increase of 0.45% of pay.
Member data is from the System's most recent actuarial valuation
files, consisting of data provided by the employers to the Retirement
System. Data distributions and statistics can be found in the System's
Annual Report. System assets are as reported in the System's financial
statements and can also be found in the System's Annual Report. Actuar-
ial assumptions and methods are provided in the System's Actuarial Valu-
ation Report.
The source of this estimate is Fiscal Note 2023-12 dated March 9, 2023
prepared by the Office of the Actuary of the New York State Teachers'
Retirement System and is intended for use only during the 2023 Legisla-
tive Session. I, Richard A. Young, am the Chief Actuary for the New York
State Teachers' Retirement System. I am a member of the American Academy
of Actuaries and I meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY OF BILL: This proposed legislation as it relates to the New
York City Retirement Systems and Pension Funds (NYCRS), would amend
Section 613 of the Retirement and Social Security Law (RSSL) to increase
the salary bands used to determine contribution rates for Tier 6 members
of the New York City Employees' Retirement System (NYCERS), the New York
City Teachers' Retirement System (NYCTRS), and the New York City Board
of Education Retirement System (BERS).
Effective Date: Upon enactment.
IMPACT ON MEMBER CONTRIBUTIONS: Currently, Tier 6 members of NYCERS,
NYCTRS, and BERS are generally required to make Basic Member Contrib-
utions (BMC) ranging from 3% to 6% of annual wages, determined by wages
for a prior defined period.
Under the proposed legislation, the salary bands used to determine BMC
would be 1) increased by specified amounts as shown in the table below
on January 1, 2024, and 2) increased by the prior calendar year's
increase in consumer price index (CPI). The increase due to CPI starting
on January 1, 2025, and every year thereafter, is not to exceed 3%.
The result of an increase in Tier 6 salary bands would be an overall
decrease in employee contribution rates.
Contribution New Salary Band as of
Rate Current Salary Band January 1, 2024
3.00% $45,000 or less $50,000 or less
3.50% $45,001 up to $55,000 $50,001 up to $60,000
4.50% $55,001 up to $75,000 $60,001 up to $80,000
5.75% $75,001 up to $100,000 $80,001 up to $105,000
6.00% Greater than $100,000 Greater than $105,000
A. 5209--B 13
FINANCIAL IMPACT: Based on the census data and the actuarial assump-
tions and methods described herein, the enactment of this proposed
legislation would result in an initial increase in the present value of
future employer contributions of approximately $174.8 million for
NYCERS, $84.3 million for NYCTRS, and $14.3 million for BERS, resulting
in a total increase of approximately $273.4 million for NYCRS.
The financial impact will increase as the impacted population
increases over time. The estimate of the increase in annual employer
contributions for Fiscal Years 2024 through 2028 are shown in the table
below.
Increase in Employer Contributions
($ Millions)
Fiscal NYCERS NYCTRS BERS TOTAL
Year
2024 $ 15.4 $ 5.9 $ 1.3 $ 22.6*
2025 $ 17.7 $ 6.6 $ 1.9 $ 26.2
2026 $ 20.3 $ 7.3 $ 2.5 $ 30.1
2027 $ 23.2 $ 8.3 $ 3.1 $ 34.6
2028 $ 26.3 $ 9.3 $ 3.8 $ 39.4
* The increase in the employer contributions for Fiscal Year 2024 is
estimated to be $16.0 million for New York City and $6.6 million for the
other obligors of NYCRS.
New Unfunded Accrued Liability (UAL) attributable to benefit changes
are generally amortized over the remaining working lifetime of those
impacted by the benefit changes. The remaining working lifetime for
impacted Tier 6 members is approximately 16 years for those in NYCERS,
20 years for those in NYCTRS, and 14 years for those in BERS.
The increase in UAL for NYCERS was therefore amortized over a 16-year
period (15 payments under the One-Year Lag Methodology) using level
dollar payments. Under the same methodology the increase in the UAL for
NYCTRS and BERS was amortized over 19 and 13 payments, respectively.
CENSUS DATA: The estimates presented herein are based on the census
data used in the June 30, 2022 actuarial valuations of NYCERS, NYCTRS,
and BERS to determine the Preliminary Fiscal Year 2024 employer contrib-
utions.
The table below contains a summary of the census data for active Tier
6 members in NYCERS, NYCTRS, and BERS as of June 30, 2022.
NYCRS Active Average Average Average
Count Age Service Salary
NYCERS 77,127 41.9 4.2 $76,100
NYCTRS 56,614 37.5 4.6 $77,000
BERS 12,264 46.3 3.7 $53,100
ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
been calculated based on the actuarial assumptions and methods used for
the Preliminary Fiscal Year 2024 employer contributions of NYCERS,
NYCTRS, and BERS.
New entrants were projected to replace the members expected to leave
the active population to maintain a steady-state population. New entrant
demographics were developed based on data for recent new hires and actu-
arial judgement.
For the purposes of this Fiscal Note, it is assumed that the changes
would be reflected for the first time in the June 30, 2022 actuarial
A. 5209--B 14
valuations of NYCERS, NYCTRS, and BERS used to determine employer
contributions for Fiscal Year 2024.
It has been assumed that future increases in the salary bands under
this proposed legislation would equal 2.5%, consistent with the long-
term CPI inflation rate assumption of 2.5%.
RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend
highly on the realization of the actuarial assumptions used, demograph-
ics of the impacted population, and other factors such as investment,
contribution, and other risks. If actual experience deviates from actu-
arial assumptions, the actual costs could differ from those presented
herein.
Costs are also dependent on the actuarial methods used, and therefore
different actuarial methods could produce different results. Quantifying
these risks is beyond the scope of this Fiscal Note.
Not measured in this Fiscal Note are the following:
* The initial additional administrative costs to implement the
proposed legislation.
* Pension costs for future members of NYCERS, NYCTRS, and BERS hired
on or after 7/1/2026.
STATEMENT OF ACTUARIAL OPINION: I, Marek Tyszkiewicz, am the Chief
Actuary for, and independent of, the New York City Retirement Systems
and Pension Funds. I am an Associate of the Society of Actuaries and a
Member of the American Academy of Actuaries. I am a member of NYCERS but
do not believe it impairs my objectivity and I meet the Qualification
Standards of the American Academy of Actuaries to render the actuarial
opinion contained herein. To the best of my 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 2023-34 dated April 18,
2023 was prepared by the Chief Actuary for the New York City Employees'
Retirement System, the New York City Teachers' Retirement System, and
the New York City Board of Education Retirement System. This estimate is
intended for use only during the 2023 Legislative Session.
