What's happening
This bill raises the maximum annual cost-of-living adjustment for certain public retirees from 3% to 5% starting September 1, 2017.
Why it matters
Increases retirees’ income protection against inflation. By raising the maximum annual cost-of-living adjustment (COLA) from 3% to 5%, the bill helps ensure that public retirees’ pensions keep better pace with rising living costs, potentially reducing financial hardship for seniors on fixed incomes.
Adapts to higher inflation scenarios. The higher COLA cap allows the state to respond more effectively during periods of significant inflation, offering greater flexibility in adjusting benefits when consumer prices rise rapidly.
Uniform change across multiple systems. The amendment applies not just to one retirement system but to several (including the retirement and social security law, education law, and New York City administrative code), ensuring consistency and fairness for a broad range of public sector retirees.
Potential fiscal impact for government budgets. While beneficial for retirees, increasing the maximum COLA could lead to higher long-term pension liabilities for state and local governments, which may affect budget planning and future funding decisions.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Increase Cost-of-Living Adjustments
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to civil service and pensions
- Referred to civil service and pensions
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6050
2017-2018 Regular Sessions
IN SENATE
May 10, 2017
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions
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 Assembly, do enact as follows:
Section 1. Subdivision d of section 78-a of the retirement and social security law, as added by chapter 125 of the laws of 2000, is amended to read as follows:
d. The percentage referred to in this section shall be determined annually by reference to the consumer price index (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100), published by the United States bureau of labor statistics, for each applicable calendar year. Said percentage shall equal fifty percent of the annual inflation, as determined from the increase in the consumer price index in the one year period ending on the March thirty-first prior to the cost-of-living adjustment effective on the ensuing September first. Said percentage shall then be rounded up to the next higher one-tenth of one percent and shall not exceed three percent nor be less than one percent and effective the first day of September, two thousand seventeen, shall not exceed five percent nor be less than one percent.
§ 2. Subdivision d of section 378-a of the retirement and social security law, as added by chapter 125 of the laws of 2000, is amended to read as follows:
d. The percentage referred to in this section shall be determined annually by reference to the consumer price index (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100), published by the United States bureau of labor statistics, for each applicable calendar year. Said percentage shall equal fifty percent of the annual inflation, as determined from the increase in the consumer price index in the one
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11290-01-7
S. 6050 2
year period ending on the March thirty-first prior to the cost-of-living adjustment effective on the ensuing September first. Said percentage shall then be rounded up to the next higher one-tenth of one percent and shall not exceed three percent nor be less than one percent and effective the first day of September, two thousand seventeen, shall not exceed five percent nor be less than one percent.
§ 3. Subdivision d of section 532-a of the education law, as added by chapter 125 of the laws of 2000, is amended to read as follows:
d. The percentage referred to in this section shall be determined annually by reference to the consumer price index (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100), published by the United States bureau of labor statistics, for each applicable calendar year. Said percentage shall equal fifty percent of the annual inflation, as determined from the increase in the consumer price index in the one year period ending on the March thirty-first prior to the cost-of-living adjustment effective on the ensuing September first. Said percentage shall then be rounded up to the next higher one-tenth of one percent and shall not exceed three percent nor be less than one percent and effective the first day of September, two thousand seventeen, shall not exceed five percent nor be less than one percent.
§ 4. Subdivision d of section 13-696 of the administrative code of the city of New York, as added by chapter 125 of the laws of 2000, is amended to read as follows:
d. The percentage referred to in this section shall be determined annually by reference to the consumer price index (all urban consumers, CPI-U, U.S. city average, all items, 1982-84=100), published by the United States bureau of labor statistics, for each applicable calendar year. Said percentage shall equal fifty percent of the annual inflation, as determined from the increase in the consumer price index in the one year period ending on the March thirty-first prior to the cost-of-living adjustment effective on the ensuing September first. Said percentage shall then be rounded up to the next higher one-tenth of one percent and shall not exceed three percent nor be less than one percent and effective the first day of September, two thousand seventeen, shall not exceed five percent nor be less than one percent.
§ 5. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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 or general idea of bill
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 specific 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:
Subdivision d of said sections of law is amended by this bill to increase the maximum percentage of the CPI for COLA benefits from not more than 3% and not less than 1% of CPI to not more than 5% and not less than 1% of CPI. 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 CPI. 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 2001. While the CPI has remained very modest since the enactment of COLA, as noted above 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 modest increase in the maximum percentage of the CPI for COLA benefits will provide needed but modest protection for retirees in the event the CPI exceeds 3%.
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.
Prior legislative history
2007-08: A8448 - referred to Assembly Governmental Employees Committee.
Fiscal implications for state and local governments
See Fiscal Note attached to bill.
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.