What's happening
This bill increases cost-of-living adjustments for certain New York public retirees to match 100% of annual inflation, up from 50%.
Why it matters
Retirees’ purchasing power is better protected. By adjusting benefits to 100% of inflation (instead of 50%), public sector retirees in New York will see their retirement income keep pace with rising costs for essentials like food, housing, and healthcare, reducing the risk of financial hardship as prices rise.
Potential long-term fiscal impacts for government budgets. The increase in cost-of-living adjustments (COLAs) will raise annual expenditures for state and local pension systems, which could affect budget planning, funding ratios, and possibly require higher contributions from employers or taxpayers in the future.
Maintains existing caps and floors on increases. Even with the higher COLA, annual adjustments are still capped at 3% and cannot fall below 1%, ensuring some predictability and fiscal restraint while providing enhanced inflation protection.
Signals enhanced support for retired public employees. This move may improve morale and recruitment by demonstrating a stronger commitment to the financial security of government retirees, which could be particularly important in periods of high inflation.
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Who cares
Headline styles
Increase Cost-of-Living Raises
Plain English, a few words. Used as the page title.
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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
6051
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, and effective the first day of September, two thousand seventeen shall equal one hundred 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.
§ 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, and effective the first day of September, two thousand seventeen shall
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11291-01-7
S. 6051 2
equal one hundred 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.
§ 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, and effective the first day of September, two thousand seventeen shall equal one hundred 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.
§ 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, and effective the first day of September, two thousand seventeen shall equal one hundred 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.
§ 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
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. This 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 partially close that gap.
Summary of specific provisions
Effective September 1, 2017, the following changes to section 78-a and 378-a of the Retirement and Social Security Law, Section 532-a of the Education Law, and Section 13-196 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 percentage of annual COLA increases from 50% of the CPI to 100% of the CPI. The general cost-of-living of retirees has been steadily increasing. In particular, 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, will cause a significant increase in retired public employee health care costs.
Justification
Significant strides were made by the enactment of the Chapter 125 of the Laws of 2000. However, with eligibility to receive more than 50 percent of the CPI limited to those who retired before 1968, with 100 percent of CPI only available to those who retired prior to 1961. Obviously we are talking about retirees of very advanced years and a very small number of the total number of retirees eligible to receive COLA under chapter 125. This bill adds only to those who retired prior to 1966, 38 years ago. Members of the Retired Public Employees Association, the Retired Teachers Association and the Alliance of Public Retiree Associations of New York believe this bill will help assure our oldest 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
2007: A.8376 - Referred to Assembly Governmental Employees Committee.
Fiscal implications
See Fiscal Note attached to bill.
Effective date
Immediately upon enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.