Relates to providing cost-of-living adjustments

1 Co-sponsor

• Kathleen A. Marchione

BILL NUMBER:S4342

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 continued erosion of their retirement income due to inflation.

Summary of provisions

Section one of this bill amends subdivision f of section 78-a of the Retirement and Social Security Law to establish cost-of-living (COLA) adjustments equal to the percentage change in CPI on a monthly basis and for retirees who retired prior to 1997. These adjustments shall be paid to eligible retirees starting September 1, 2015.

Section two of this bill amends subdivision f of section 378-a of the Retirement and Social Security Law to establish COLA benefit adjustments equal to the percentage change in CPI on a monthly basis for retirees who retired prior to 1997. These adjustments shall be paid to eligible retirees starting September 1, 2015.

Section three of this bill amends subdivision f of section 532-a of the Education Law to establish COLA benefit adjustments equal to the percentage change in CPI on a monthly basis for retirees who retired prior to 1997. These adjustments shall be paid to eligible retirees starting September 1, 2015.

Section four of this bill amends subdivision f of section 13-696 of the Administrative Code of New York City to establish COLA benefit adjustments equal to the percentage change in CPI on a monthly basis for retirees who retired prior to 1997. These adjustments shall be paid to eligible retirees starting September 1, 2015.

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

Justification

Significant strides were made by the enactment of Chapter 125 of the Laws of 2000. While the CPI has remained very modest since the enactment of COLA, other costs have had a significant impact on retiree security. For example, medical costs including co-payments, premiums, and medication, have been rising at a rate far in excess of the CPI. Recent federal amendments to the Medicare Law, especially the prescription drug coverage, are likely to cause a significant increase in retired public employee health care costs. This adjustment to COLA benefits will provide needed but modest protection for retirees in the event the CPI increases at a dramatic rate.

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

2014: S.6787 - Referred to Civil Service and Pensions

Fiscal implications

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

Effective date

This act shall take effect immediately.