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History
- Print number 1816a
- Amend and recommit to civil service and pensions
- Referred to civil service and pensions
- Referred to civil service and pensions
Full text
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Sponsor's memo
Title of bill
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
Purpose
This bill amends Chapter 125 of the Laws of 2000, a chapter which provides public employee retirees with permanent partial cost-of-living increases in New York State. The bill provides a desirable amendment to Chapter 125 needed to protect public retirees from continued erosion of their retirement income from inflation. While Chapter 125 began the effort to address pension erosion this bill seeks to further close that gap.
Summary of provisions
Effective September 1, 2006, the following changes to Sections 78-a and 378-a of the Retirement and Social Security Law, Section 532-a of the Education Law, and Section 13-396 of the Administrative Code of the City of New York as added by Chapter 125 of the Laws of 2000 are proposed: Subdivisions c of said sections of law is amended by this bill to increase the cap on retirement benefits covered by COLA from $18,000 to $25,000. It has been four years since the cap on covered pensions for application of COLA was increased. The general cost-of-living for retirees has been steadily increasing. In particular, medical costs including co-payments, premiums, and medication, have risen at a rate far in excess of the CPL Recent federal amendments to the Medicare law, especially the prescription drug coverage, will cause a significant increase in retired public employee health care costs.
Justification
Significant strides were made by the enactment of Chapter 125 of the Laws of 2000. However, the proposed increase of the cap on COLA covered retirement benefits from $18,000 to $25,000 addresses the issue of gradual increase noted in governmental salaries and rising final average salaries. As incomes of active employees continue to rise to meet cost-of-living concerns, the caps placed on COLA cove red benefits further erodes retirement income of those affected retirees. In particular, as noted above, medical costs including co-payments, premiums, and medication, have been rising at a rate far in excess of the CPR. Recent federal amendments to the Medicaid law, especially the prescription drug coverage, are likely to cause a significant increase in retired public employee health care costs. This bill will help assure public retirees achieve a dignified and secure retirement, allowing them to continue to contribute more effectively to the long-term health of our economy.
Legislative history
2009: S.1816 - Referred to Civil Service & Pensions. 2008: S.7862 - Referred to Civil Service & Pensions/A.8373 - Referred to Governmental Employees. 2007: S.7862 - Referred to Civil Service & Pensions/A.8373 - Referred to Governmental Employees. 2006: S.4451 - Referred to Civil Service and Pensions/A.7236 - Referred to Governmental Employees. 2005: S.4451- Referred to Civil Service & Pensions A.7236 - Referred to Governmental Employees. 2004: A.10825 - Referred to Governmental Employees.
Fiscal implications
This bill would provide an increase in the defined benefit cost-of-living adjustment (COLA) for New York public retirement systems. Starting with a payment in September 2010 the annual cost-of-living adjustment will be computed on a base benefit amount not to exceed $25,000. First year cost of approximately $90 million to the State of New York, $119 million to participating employers in the New York State and Local Employees' Retirement System and $22 million to the participating employers in The New York State and Local Police and Fire Retirement System.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.