Amd SS78-a & 378-a, R & SS L; amd S532-a, Ed L; amd S13-696, NYC Ad Cd
Provides cost-of-living adjustments, 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
________________________________________________________________________
4342
2015-2016 Regular Sessions
IN SENATE
March 16, 2015
___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the retirement and social security law, the education
law and the administrative code of the city of New York, in relation
to providing cost-of-living adjustments
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision f of section 78-a of the retirement and social
2 security law, as added by chapter 125 of the laws of 2000, is amended to
3 read as follows:
4 f. Commencing September first, two thousand, all retired members who
5 have retired prior to the calendar year nineteen hundred ninety-seven
6 and who meet the eligibility criteria set forth in subdivision a of this
7 section shall be paid an adjusted benefit in monthly installments on the
8 basis provided for in this subdivision. Said adjusted benefit shall be
9 equal to a percentage of the change in consumer price index (all urban
10 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
11 by the United States bureau of labor statistics, measured from the year
12 of retirement through calendar year nineteen hundred ninety-seven
13 according to the following schedule:
14 Year of retirement Percentage
15 1968 through 1996 50%
16 1966 and 1967 55%
17 1965 60%
18 1964 65%
19 1963 70%
20 1962 80%
21 1961 90%
22 prior to 1961 100%
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00495-02-5
S. 4342 2
1 Said adjusted benefit shall be computed on a base benefit amount not to
2 exceed eighteen thousand dollars of the retirement allowance otherwise
3 payable, computed without optional modification. Any benefit received
4 pursuant to this subdivision shall be in lieu of any benefit received
5 pursuant to section seventy-eight of this title.
6 Commencing September first, two thousand fifteen, all retired members
7 who have retired prior to the calendar year nineteen hundred ninety-sev-
8 en and who meet the eligibility criteria set forth in subdivision a of
9 this section shall be paid an adjusted benefit in monthly installments
10 on the basis provided for in this subdivision. Said adjusted benefit
11 shall be equal to a percentage of the change in consumer price index
12 (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100),
13 published by the United States bureau of labor statistics, measured from
14 the year of retirement through calendar year nineteen hundred ninety-
15 seven according to the following schedule:
16 YearofretirementPercentage
17 1973through199650%
18 1971and197255%
19 197060%
20 196965%
21 196870%
22 196780%
23 196690%
24 priorto1966100%
25 Said adjusted benefit commencing September first, two thousand fifteen,
26 shall be computed on the base benefit amount of the retirement allowance
27 otherwise payable, computed without optional modification, set forth
28 herein above. Any benefit received pursuant to this subdivision shall be
29 in lieu of any benefit received pursuant to section seventy-eight of
30 this title.
31 § 2. Subdivision f of section 378-a of the retirement and social secu-
32 rity law, as added by chapter 125 of the laws of 2000, is amended to
33 read as follows:
34 f. Commencing September first, two thousand, all retired members who
35 have retired prior to the calendar year nineteen hundred ninety-seven
36 and who meet the eligibility criteria set forth in subdivision a of this
37 section shall be paid an adjusted benefit in monthly installments on the
38 basis provided for in this subdivision. Said adjusted benefit shall be
39 equal to a percentage of the change in consumer price index (all urban
40 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
41 by the United States bureau of labor statistics, measured from the year
42 of retirement through calendar year nineteen hundred ninety-seven
43 according to the following schedule:
44 Year of retirement Percentage
45 1968 through 1996 50%
46 1966 and 1967 55%
47 1965 60%
48 1964 65%
49 1963 70%
50 1962 80%
51 1961 90%
52 prior to 1961 100%
53 Said adjusted benefit shall be computed on a base benefit amount not to
54 exceed eighteen thousand dollars of the retirement allowance otherwise
S. 4342 3
1 payable, computed without optional modification. Any benefit received
2 pursuant to this subdivision shall be in lieu of any benefit received
3 pursuant to section three hundred seventy-eight of this title.
4 Commencing September first, two thousand fifteen, all retired members
5 who have retired prior to the calendar year nineteen hundred ninety-sev-
6 en and who meet the eligibility criteria set forth in subdivision a of
7 this section shall be paid an adjusted benefit in monthly installments
8 on the basis provided for in this subdivision. Said adjusted benefit
9 shall be equal to a percentage of the change in consumer price index
10 (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100),
11 published by the United States bureau of labor statistics, measured from
12 the year of retirement through calendar year nineteen hundred ninety-
13 seven according to the following schedule:
14 YearofretirementPercentage
15 1973through199650%
16 1971and197255%
17 197060%
18 196965%
19 196870%
20 196780%
21 196690%
22 priorto1966100%
23 Said adjusted benefit commencing September first, two thousand fifteen,
24 shall be computed on the base benefit amount of the retirement allowance
25 otherwise payable, computed without optional modification, set forth
26 herein above. Any benefit received pursuant to this subdivision shall be
27 in lieu of any benefit received pursuant to section three hundred seven-
28 ty-eight of this title.
29 § 3. Subdivision f of section 532-a of the education law, as added by
30 chapter 125 of the laws of 2000, is amended to read as follows:
31 f. Commencing September first, two thousand, all retired members who
32 have retired prior to the calendar year nineteen hundred ninety-seven
33 and who meet the eligibility criteria set forth in subdivision a of this
34 section shall be paid an adjusted benefit in monthly installments on the
35 basis provided for in this subdivision. Said adjusted benefit shall be
36 equal to a percentage of the change in consumer price index (all urban
37 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
38 by the United States bureau of labor statistics, measured from the year
39 of retirement through calendar year nineteen hundred ninety-seven
40 according to the following schedule:
41 Year of retirement Percentage
42 1968 through 1996 50%
43 1966 and 1967 55%
44 1965 60%
45 1964 65%
46 1963 70%
47 1962 80%
48 1961 90%
49 prior to 1961 100%
50 Said adjusted benefit shall be computed on a base benefit amount not to
51 exceed eighteen thousand dollars of the retirement allowance otherwise
52 payable, computed without optional modification excluding any annuity
53 derived from voluntary contributions made by members, except those made
54 pursuant to elections under subdivision one of section five hundred
55 eleven-a or paragraph c of subdivision three of section five hundred
S. 4342 4
1 sixteen of this article. Any benefits received pursuant to this subdivi-
2 sion shall be in lieu of any benefits received pursuant to section five
3 hundred thirty-two of this article, unless such benefits are in excess
4 of those provided by this section, in which case such benefits shall be
5 paid by the retirement system pursuant to such provision.
6 Commencing September first, two thousand fifteen, all retired members
7 who have retired prior to the calendar year nineteen hundred ninety-sev-
8 en and who meet the eligibility criteria set forth in subdivision a of
9 this section shall be paid an adjusted benefit in monthly installments
10 on the basis provided for in this subdivision. Said adjusted benefit
11 shall be equal to a percentage of the change in consumer price index
12 (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100),
13 published by the United States bureau of labor statistics, measured from
14 the year of retirement through calendar year nineteen hundred ninety-
15 seven according to the following schedule:
16 YearofretirementPercentage
17 1973through199650%
18 1971and197255%
19 197060%
20 196965%
21 196870%
22 196780%
23 196690%
24 priorto1966100%
25 Said adjusted benefit, commencing September first, two thousand fifteen,
26 shall be computed on the base benefit amount of the retirement allowance
27 otherwise payable, computed without optional modification, set forth
28 herein above. Any benefit received pursuant to this subdivision shall be
29 in lieu of any benefit received pursuant to section five hundred thir-
30 ty-two of this article.
31 § 4. Subdivision f of section 13-696 of the administrative code of the
32 city of New York, as added by chapter 125 of the laws of 2000, is
33 amended to read as follows:
34 f. Commencing September first, two thousand, all retired members who
35 have retired prior to the calendar year nineteen hundred ninety-seven
36 and who meet the eligibility criteria set forth in subdivision a of this
37 section shall be paid an adjusted benefit in monthly installments on the
38 basis provided for in this subdivision. Said adjusted benefit shall be
39 equal to a percentage of the change in consumer price index (all urban
40 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
41 by the United States bureau of labor statistics, measured from the year
42 of retirement through calendar year nineteen hundred ninety-seven
43 according to the following schedule:
44 Year of retirement Percentage
45 1968 through 1996 50%
46 1966 and 1967 55%
47 1965 60%
48 1964 65%
49 1963 70%
50 1962 80%
51 1961 90%
52 prior to 1961 100%
53 Said adjusted benefit shall be computed on a base benefit amount not to
54 exceed eighteen thousand dollars of the annual fixed retirement allow-
55 ance otherwise payable, computed without optional modification. Any
S. 4342 5
1 benefit received pursuant to this subdivision shall be in lieu of any
2 benefit received pursuant to chapter three hundred ninety of the laws of
3 nineteen hundred ninety-eight, and any preceding provision of law
4 providing for supplementation.
5 Commencing September first, two thousand fifteen, all retired members
6 who have retired prior to the calendar year nineteen hundred ninety-sev-
7 en and who meet the eligibility criteria set forth in subdivision a of
8 this section shall be paid an adjusted benefit in monthly installments
9 on the basis provided for in this subdivision. Said adjusted benefit
10 shall be equal to a percentage of the change in consumer price index
11 (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100),
12 published by the United States bureau of labor statistics, measured from
13 the year of retirement through calendar year nineteen hundred ninety-
14 seven according to the following schedule:
15 Year of retirementPercentage
16 1973 through 199650%
17 1971 and 197255%
18 197060%
19 196965%
20 196870%
21 196780%
22 196690%
23 prior to 1966100%
24 Said adjusted benefit, commencing September first, two thousand fifteen,
25 shall be computed on the base benefit amount of the retirement allowance
26 otherwise payable, computed without optional modification, set forth
27 herein above. Any benefit received pursuant to this subdivision shall be
28 in lieu of any benefit received pursuant to section 13-695 of this arti-
29 cle.
30 § 5. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would provide an increase in the defined benefit cost-of-
living adjustment (COLA) for New York public retirement systems. Start-
ing with a payment in September 2015, additional payments will be made
for those members who retired after 1960 and prior to 1973.
Insofar as this bill affects the New York State and Local Employees'
Retirement System, 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 provisions. If this bill were enacted, the increase
in the present value of benefits would be approximately $1.57 million.
Insofar as this bill affects the New York State and Local Police and
Fire Retirement System (PFRS), the increased costs would be shared by
the State of New York and the participating employers in the PFRS. If
this bill were enacted, the increase in the present value of benefits
would be approximately $2.42 million. The estimated first year cost
would be approximately $51,600 to the State of New York and approximate-
ly $238,000 to the participating employers in the PFRS.
Summary of relevant resources:
The membership data used in measuring the impact of the proposed
change was the same as that used in the March 31, 2014 actuarial valu-
ation. Distributions and other statistics can be found in the 2014
Report of the Actuary and the 2014 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2010,
2011, 2012, 2013 and 2014 Annual Report to the Comptroller on Actuarial
S. 4342 6
Assumptions, and the Codes Rules and Regulations of the State of New
York: Audit and Control.
The Market Assets and GASB Disclosures are found in the March 31, 2014
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 estimate, dated February 12, 2015 and intended for use only
during the 2015 Legislative Session, is Fiscal Note No. 2015-63,
prepared by the Actuary for the New York State and Local Employees'
Retirement System and the New York State and Local Police and Fire
Retirement System.
