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
________________________________________________________________________
9994
IN ASSEMBLY
April 29, 2022
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Governmental Employees
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%
23 Said adjusted benefit shall be computed on a base benefit amount not to
24 exceed eighteen thousand dollars of the retirement allowance otherwise
25 payable, computed without optional modification. Any benefit received
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10513-09-2
A. 9994 2
1 pursuant to this subdivision shall be in lieu of any benefit received
2 pursuant to section seventy-eight of this title.
3 Commencing September first, two thousand twenty-two, all retired
4 members who have retired prior to the calendar year nineteen hundred
5 ninety-seven and who meet the eligibility criteria set forth in subdivi-
6 sion a of this section shall be paid an adjusted benefit in monthly
7 installments on the basis provided for in this subdivision. Said
8 adjusted benefit shall be equal to a percentage of the change in consum-
9 er price index (all urban consumers, CPI-U, U.S. city average, all
10 items, 1982-84=100), published by the United States bureau of labor
11 statistics, measured from the year of retirement through calendar year
12 nineteen hundred ninety-seven according to the following schedule:
13 YearofretirementPercentage
14 1973through199650%
15 1971and197255%
16 197060%
17 196965%
18 196870%
19 196780%
20 196690%
21 priorto1966100%
22 Said adjusted benefit commencing September first, two thousand twenty-
23 two, shall be computed on the base benefit amount of the retirement
24 allowance otherwise payable, computed without optional modification, set
25 forth herein above. Any benefit received pursuant to this subdivision
26 shall be in lieu of any benefit received pursuant to section seventy-
27 eight of this title.
28 § 2. Subdivision f of section 378-a of the retirement and social secu-
29 rity law, as added by chapter 125 of the laws of 2000, is amended to
30 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. Any benefit received
53 pursuant to this subdivision shall be in lieu of any benefit received
54 pursuant to section three hundred seventy-eight of this title.
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1 Commencing September first, two thousand twenty-two, all retired
2 members who have retired prior to the calendar year nineteen hundred
3 ninety-seven and who meet the eligibility criteria set forth in subdivi-
4 sion a of this section shall be paid an adjusted benefit in monthly
5 installments on the basis provided for in this subdivision. Said
6 adjusted benefit shall be equal to a percentage of the change in consum-
7 er price index (all urban consumers, CPI-U, U.S. city average, all
8 items, 1982-84=100), published by the United States bureau of labor
9 statistics, measured from the year of retirement through calendar year
10 nineteen hundred ninety-seven according to the following schedule:
11 YearofretirementPercentage
12 1973through199650%
13 1971and197255%
14 197060%
15 196965%
16 196870%
17 196780%
18 196690%
19 priorto1966100%
20 Said adjusted benefit commencing September first, two thousand twenty-
21 two, shall be computed on the base benefit amount of the retirement
22 allowance otherwise payable, computed without optional modification, set
23 forth herein above. Any benefit received pursuant to this subdivision
24 shall be in lieu of any benefit received pursuant to section three
25 hundred seventy-eight of this title.
26 § 3. Subdivision f of section 532-a of the education law, as added by
27 chapter 125 of the laws of 2000, is amended to read as follows:
28 f. Commencing September first, two thousand, all retired members who
29 have retired prior to the calendar year nineteen hundred ninety-seven
30 and who meet the eligibility criteria set forth in subdivision a of this
31 section shall be paid an adjusted benefit in monthly installments on the
32 basis provided for in this subdivision. Said adjusted benefit shall be
33 equal to a percentage of the change in consumer price index (all urban
34 consumers, CPI-U, U.S. city average, all items, 1982-84=100), published
35 by the United States bureau of labor statistics, measured from the year
36 of retirement through calendar year nineteen hundred ninety-seven
37 according to the following schedule:
38 Year of retirement Percentage
39 1968 through 1996 50%
40 1966 and 1967 55%
41 1965 60%
42 1964 65%
43 1963 70%
44 1962 80%
45 1961 90%
46 prior to 1961 100%
47 Said adjusted benefit shall be computed on a base benefit amount not to
48 exceed eighteen thousand dollars of the retirement allowance otherwise
49 payable, computed without optional modification excluding any annuity
50 derived from voluntary contributions made by members, except those made
51 pursuant to elections under subdivision one of section five hundred
52 eleven-a or paragraph c of subdivision three of section five hundred
53 sixteen of this article. Any benefits received pursuant to this subdivi-
54 sion shall be in lieu of any benefits received pursuant to section five
55 hundred thirty-two of this article, unless such benefits are in excess
A. 9994 4
1 of those provided by this section, in which case such benefits shall be
2 paid by the retirement system pursuant to such provision.
3 Commencing September first, two thousand twenty-two, all retired
4 members who have retired prior to the calendar year nineteen hundred
5 ninety-seven and who meet the eligibility criteria set forth in subdivi-
6 sion a of this section shall be paid an adjusted benefit in monthly
7 installments on the basis provided for in this subdivision. Said
8 adjusted benefit shall be equal to a percentage of the change in consum-
9 er price index (all urban consumers, CPI-U, U.S. city average, all
10 items, 1982-84=100), published by the United States bureau of labor
11 statistics, measured from the year of retirement through calendar year
12 nineteen hundred ninety-seven according to the following schedule:
13 YearofretirementPercentage
14 1973through199650%
15 1971and197255%
16 197060%
17 196965%
18 196870%
19 196780%
20 196690%
21 priorto1966100%
22 Said adjusted benefit, commencing September first, two thousand twenty-
23 two, shall be computed on a base benefit amount not to exceed eighteen
24 thousand dollars of the retirement allowance otherwise payable, computed
25 without optional modification, set forth herein above. Any benefit
26 received pursuant to this subdivision shall be in lieu of any benefit
27 received pursuant to section five hundred thirty-two of this article,
28 unless such benefits are in excess of those provided by this section, in
29 which case such benefits shall be paid by the retirement system pursuant
30 to such provision.
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
A. 9994 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 twenty-two, all retired
6 members who have retired prior to the calendar year nineteen hundred
7 ninety-seven and who meet the eligibility criteria set forth in subdivi-
8 sion a of this section shall be paid an adjusted benefit in monthly
9 installments on the basis provided for in this subdivision. Said
10 adjusted benefit shall be equal to a percentage of the change in consum-
11 er price index (all urban consumers, CPI-U, U.S. city average, all
12 items, 1982-84=100), published by the United States bureau of labor
13 statistics, measured from the year of retirement through calendar year
14 nineteen hundred ninety-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 twenty-
25 two, shall be computed on the base benefit amount of the retirement
26 allowance otherwise payable, computed without optional modification, set
27 forth herein above. Any benefit received pursuant to this subdivision
28 shall be in lieu of any benefit received pursuant to section 13-695 of
29 this article.
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 2022, 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 provision. If this bill were enacted, the increase
in the present value of benefits would be approximately $106,000.
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 $475,000. The estimated first year cost would be
approximately $9,800 to the State of New York and approximately $38,000
to the participating employers in the PFRS.
Summary of relevant resources:
Membership data as of March 31, 2021 was used in measuring the impact
of the proposed change, the same data used in the April 1, 2021 actuari-
al valuation. Distributions and other statistics can be found in the
2021 Report of the Actuary and the 2021 Comprehensive Annual Financial
Report.
The actuarial assumptions and methods used are described in the 2020
and 2021 Annual Report to the Comptroller on Actuarial Assumptions, and
A. 9994 6
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, 2021
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 December 28, 2021, and intended for use only
during the 2022 Legislative Session, is Fiscal Note No. 2022-38,
prepared by the Actuary for the New York State and Local Retirement
System.
