STATE OF NEW YORK
________________________________________________________________________
9606
IN ASSEMBLY
March 26, 2024
___________
Introduced by M. of A. ANGELINO -- read once and referred to the Commit-
tee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
increasing the retiree public earnings cap
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 212 of the retirement and social
2 security law, as amended by chapter 589 of the laws of 2019, is amended
3 to read as follows:
4 2. The earning limitations for retired persons in positions of public
5 service under this section shall be in accordance with the following
6 table:
7 For the year Earnings limitation
8 1996 $12,500
9 1997 $13,500
10 1998 $14,500
11 1999 $15,500
12 2000 $17,000
13 2001 $18,500
14 2002 $20,000
15 2003 $25,000
16 2004 $27,500
17 2005 and 2006 $27,500
18 2007 through 2019 $30,000
19 2020 [and thereafter]
20 through 2023 $35,000
21 2024 and thereafter$100,000
22 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would allow a retired person of the New York State and Local
Retirement System who returns to public employment with an annual salary
of $100,000 or less to continue to receive their full retirement bene-
fit. Currently, the salary limit is $35,000.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14250-02-4
A. 9606 2
Additionally, pursuant to Section 5-b of the Legislative Law, this
proposal would increase the outside earnings permitted by members of the
New York State Legislature.
Insofar as this bill affects the New York State and Local Employees'
Retirement System (NYSLERS), if this bill were enacted during the 2024
Legislative Session, the direct cost incurred would be the retiree's
pension benefit paid while post-retirement earnings are between $35,000
and $100,000 each calendar year. The pension benefit expected to be paid
by the NYSLERS during that 6-month period is estimated to be $22,250 per
person.
In addition to the direct cost quoted above, there would be additional
costs in the form of lost employer contributions due to non-billable
post-retirement earnings, which is estimated to be $9,750 per person.
In the 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 sufficient to
pay the cost of the provision. For each retiree rehired pursuant to this
proposal, an annual cost of $32,000 is expected.
Insofar as this bill affects the New York State and Local Police and
Fire Retirement System (NYSLPFRS), if this bill were enacted during the
2024 Legislative Session, the direct cost incurred would be the
retiree's pension benefit paid while post-retirement earnings are
between $35,000 and $100,000 each calendar year. The pension benefit
expected to be paid by the NYSLPFRS during that 5-month period is esti-
mated to be $32,500 per person.
In addition to the direct cost quoted above, there would be additional
costs in the form of lost employer contributions due to non-billable
post-retirement earnings, which is estimated to be $19,500 per person.
In the NYSLPFRS, all costs will be shared by the State of New York and
all participating employers in the NYSLPFRS and spread over future bill-
ing cycles. For each retiree rehired pursuant to this proposal, an annu-
al cost of $52,000 is expected.
In addition to the direct costs quoted above, insofar as this proposal
disrupts the usual pattern and timing of employee turnover (that is, if
members retire earlier than assumed and participating employers hire a
retiree instead of a new billable member), shifts in member behavior
could generate losses that increase the average billing rate in 20-year
and 25-year service-based plans from 31.2% to 50.5%. In age-based plans,
average billing rates could increase from 15.2% to 20.2%. The actual
increase in billing rates will depend upon member and employer utiliza-
tion, with the rates above representing an upper maximum.
Since this proposal exclusively benefits retirees, the increased costs
are primarily attributable to retirees from Tiers 1 - 3. Approximately
half the contributions required to fund this proposal will be collected
on salary reported for current members of Tier 6.
Summary of relevant resources:
Membership data as of March 31, 2023 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2023 actuari-
al valuation. Distributions and other statistics can be found in the
2023 Report of the Actuary and the 2023 Annual Comprehensive Financial
Report.
The actuarial assumptions and methods used are described in the 2023
Annual Report to the Comptroller on Actuarial Assumptions, and the
Codes, Rules and Regulations of the State of New York: Audit and
Control.
A. 9606 3
The Market Assets and GASB Disclosures are found in the March 31, 2023
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 March 15, 2024, and intended for use only during
the 2024 Legislative Session, is Fiscal Note No. 2024-122, prepared by
the Actuary for the New York State and Local Retirement System.
