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S899Senate2019-2020 SessionSame asA2462

Pension Bonus for Retirees

Official title

“Provides a pension benefit parity payment to certain retirees from a state management/confidential position”

Sponsor Catharine YoungSD-57+2 co-sponsorsAffects Finance
Status
Stricken
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Civil Service And Pensions

What's happening

This bill provides specific rebate payments to certain retired New York state managerial or confidential employees who had salary increases withheld between 2009 and 2017.

Why it matters

  1. Addresses a long-standing pay equity issue. by compensating retired managerial or confidential state employees who were denied scheduled salary increases during a specific period (2009–2017), aiming to rectify disparities between their actual retirement benefits and what they would have received if increases had not been withheld.

  2. Establishes a clear and capped payment structure. , offering either a monthly rebate for each month of withheld increases (up to $5,000), or a lump sum adjusted for any later received increases, ensuring payments are fair and not open-ended.

  3. Targets a specific group often excluded from collective bargaining. , namely managerial/confidential employees, recognizing that past budgetary decisions disproportionately impacted these workers compared to unionized counterparts.

  4. May set a precedent for similar remedies. for other groups or in future fiscal emergencies, signaling legislative willingness to revisit and address financial harms caused by prior austerity measures.

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Who cares

Headline styles

Pension Bonus for Retirees

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Catharine Young

Senator · Senate District 57

History

  1. Recommit, enacting clause stricken
  2. Referred to civil service and pensions

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A2462Assembly

Pension Boost for Retirees

In Assembly Committee · Governmental Employees · Sponsor Patricia Fahy

Impact 5 · Moderate0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

899

2019-2020 Regular Sessions

IN SENATE

January 9, 2019

Introduced by Sens. YOUNG, BOYLE -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions

AN ACT to amend the civil service law, in relation to establishing a retiree parity payment for certain employees who served in a position or positions in the classified service of the state designated managerial or confidential

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The civil service law is amended by adding a new section 137 to read as follows:

§ 137. Management/confidential retiree parity payment. 1. Notwithstanding any provision of law, rule or regulation to the contrary, any retiree who served in a position or positions in the classified service of the state designated managerial or confidential pursuant to article fourteen of this chapter and who retired between April first, two thousand nine and March thirty-first, two thousand fifteen, and had a salary increase authorized under chapter ten of the laws of two thousand eight which was withheld for state fiscal years two thousand nine and/or two thousand ten shall receive a seventy dollar rebate payment for every month of withholding from April first, two thousand nine until such retiree's date of retirement or March thirty-first, two thousand fifteen, whichever is earlier, not to exceed a total of five thousand dollars. The comptroller shall certify to the division of the budget a listing of all such retirees deemed eligible pursuant to this subdivision.

2. Notwithstanding any provision of law, rule or regulation to the contrary, any retiree who served in a position or positions in the classified service of the state designated managerial or confidential pursuant to article fourteen of this chapter and who retired between April first, two thousand fifteen and June thirtieth, two thousand seventeen

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD02310-01-9

S. 899 2

and had a salary increase authorized under chapter ten of the laws of two thousand eight which was withheld for state fiscal years two thousand nine and/or two thousand ten shall receive five thousand dollars less the parity salary increases received during the specified time period. The comptroller shall certify to the division of the budget a listing of all such retirees deemed eligible pursuant to this subdivision.

§ 2. 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 civil service law, in relation to establishing a retiree parity payment for certain employees who served in a position or positions in the classified service of the state desig- nated managerial or confidential

Purpose or general idea of bill

This bill provides certain employees designated managerial or confiden- tial to receive a rebate payment for salary increases that were author- ized, yet ultimately withheld by New York State.

Summary of provisions

This bill amends the civil service law by adding a new section 137 to provide a rebate payment to certain employees designated managerial or confidential and retired between April 1, 2009 and March 31, 2017.

For those employees that retired between April 1, 2009 and March 31, 2015 and had an authorized salary increase that was withheld, the employee shall receive a monthly rebate of $70 for each month such increase was withheld, which shall not exceed $5,000 per employee.

For those employees that retired between April 1, 2015 and March 31, 2017 and had an authorized salary increase that was withheld, the employee shall receive a rebate of $5,000 less any salary increases received during that time period.

Justification

During the 2008 recession, management confidential employees (M/Cs) had their authorized salary increases withheld by the state in an effort to reduce expenditures.

While many M/Cs ultimately received their withheld pay raises, thousands of M/Cs retired during the withheld period" and thus were denied this rightful benefit. This measure provides a rebate to those management confidential employees that retired after having salary increases with- held for 2009 and/or 2010. New York saved over $450,000 million in sala- ries and fringe benefits from the withholding of salary increases for 2019 and 2010. No more than 4,000 eligible retirees are expected to take advantage of this rebate.

While this measure does not wholly recover those lost wages, it is only fair to restore some of the lost value of the withheld salaries.

Prior legislative history

2018: S.7771A/A.10909 Committed to Rules

Fiscal implications

For the 4/1/2009-3/31/2015 period the NYS Division of the Budget utilized an average M/C annual salary of $72,000. Using data and service records from New York State and Local Employees Retirement System there were 2608 M/C retirees whose salary restoration through this proposal would cost approximately $6.5 million. The total cost for this proposal is estimated at $9 million.

Effective date

Immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.