Relates to applying cost-of-living adjustments

2 Co-sponsors

• Jesse Hamilton
• Kathleen A. Marchione

BILL NUMBER:S3919

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

To protect public retirees from the continued erosion of their retirement income from inflation by providing to cost-of-living benefits to more pensioners.

Summary of provisions

Section one of this bill amends subdivision a of section 78-a of the Retirement and Social Security Law to provide cost-of-living (COLA) pension adjustments to all pensioners who are at least 55 years old and who have been retired for 5 years. These benefits shall be paid to eligible retirees starting September 1, 2015.

Section two of this bill amends subdivision a of section 378-a of the Retirement and Social Security Law to provide cost-of-living (COLA) pension adjustments to all pensioners who are at least 55 years old and who have been retired for 5 years. These benefits shall be paid to eligible retirees starting September 1, 2015.

Section three of this bill amends subdivision a of section 532-a of the Education Law to provide cost-of-living (COLA) pension adjustments to all pensioners who are at least 55 years old and who have been retired for 5 years. These benefits shall be paid to eligible retirees starting September 1, 2015.

Section four of this bill amends subdivision a of section 13-696 of the Administrative Code of New York City to provide cost-of-living (COLA) pension adjustments to all pensioners who are at least 55 years old and who have been retired for 5 years. These benefits shall be paid to eligible retirees starting September 1, 2015.

Section five of this bill provides that this act shall take effect immediately.

Justification

In 2000, Chapter 125 recognized the need to provide public retirees with a cost-of-living (COLA) adjustment to prevent them from facing financial hardship because the amount of their pensions did not change even though it cost more for them to live. Currently, public employees who retire at age 55 must wait ten years before receiving a COLA adjustment that would result in an increased pension, while those who retire at age 62 only have to wait five years before receiving the COLA adjustment.

Due to the hazardous nature of their duties, many police and Fire personnel retire before their 62nd birthday. Allowing those who retired at age 55 to receive a COLA adjustment after they have been retired 5 years will help provide them with the resources needed to combat inflation.

This bill will help ensure public retirees achieve a dignified and secure retirement. The COLA adjustment will allow them to continue to contribute more effectively to the longterm health of our economy.

Legislative history

2014: S.6785 - Referred to Civil Service and Pensions

Fiscal implications

See fiscal notes submitted with and made a part of this bill.

Effective date

This act shall take effect immediately.