Creates the Hudson River pilots surcharge board

1 Co-sponsor

• Terry Gipson

BILL NUMBER:S5782

Title of bill

An act to amend the navigation law, in relation to the creation of a Hudson River pilots surcharge board

Purpose

To establish a surcharge on vessels piloted by the Hudson River Pilots for the purpose of creating a pension fund for retired Hudson River Pilots.

Summary of provisions

Section two of the bill amends the Navigation Law § 89-a (4) (b) (1) to add a new subdivision (ii) to establish a surcharge on every foreign and American vessel under navigating the waters of the Hudson River including Section 1 (Lower River - Yonkers to all ports through Hyde Park) and Section 2 (Upper River - Yonkers to all ports beyond Hyde Park through Albany or Troy). The charges will increase to a stated amount every twelve months for four years.

Section three is amended to create a Hudson River pilots surcharge board to determine the rate of the surcharge that will be levied in addition to the base surcharge in order to fund the retirement benefits for Hudson River pilots on a sound actuarial basis. The additional surcharge will be raised to a set amount every twelve months until sixty months have passed, at which point the Hudson River pilots surcharge board will determine its amount using actuarial principles and not allowing it to exceed 35 percent of the sum of base pilotage charges or $5,000 in a calendar year. Retirement benefits accumulating from the additional surcharge will pay a yearly retirement benefit to currently active Hudson River pilots, retired Hudson River pilots, and eligible surviving spouses of retired pilots.

Justification

Currently, pensions of retired Hudson River Pilots are financed out of annual revenues and determined by active pilot earnings. This current pension system creates an unfunded pension liability. This legislation is intended to correct the unfunded liability and replace it with an actuarially sound system. Sandy Hook Pilots already have legislation in place that has successfully accomplished a strengthening of their pension system. With a shortage of pilots on the Hudson River, a stronger pension may reward and encourage those who put the effort into becoming pilots.

The current pilotage tariff will continue to cover all operational expenses and distribution to active pilots. This bill does not grant an increase in earnings to active pilots. The legislation will establish a pension surcharge to be determined by the Hudson River pilots surcharge board. The surcharge will be monitored quarterly by the Surcharge Board and adjusted as necessary to cover the pensions of retired pilots.

Legislative history

New bill.

Fiscal implications

None to the state.

Effective date

This act shall take effect on the ninetieth day after it shall have become law.