This bill has been amended

Bill S4732-2013

Limits the maximum post-retirement earnings of public employees

Increases the amount of money a retiree may earn in a position of public service in the year 2014 and thereafter to $32,500.

Details

Actions

  • Jun 19, 2014: returned to senate
  • Jun 19, 2014: RECALLED FROM ASSEMBLY
  • Jun 19, 2014: referred to governmental employees
  • Jun 19, 2014: DELIVERED TO ASSEMBLY
  • Jun 19, 2014: PASSED SENATE
  • Jun 2, 2014: ADVANCED TO THIRD READING
  • May 29, 2014: 2ND REPORT CAL.
  • May 28, 2014: 1ST REPORT CAL.986
  • Jan 8, 2014: REFERRED TO CIVIL SERVICE AND PENSIONS
  • Apr 19, 2013: REFERRED TO CIVIL SERVICE AND PENSIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Civil Service and Pensions - May 28, 2014
Ayes (11): Golden, Hannon, Lanza, Martins, Ritchie, Savino, Maziarz, Sanders, Addabbo, Dilan, Perkins

Memo

BILL NUMBER:S4732

TITLE OF BILL: An act to amend the retirement and social security law, in relation to the employment of retired persons

PURPOSE OR GENERAL IDEA OF BILL:

This will be the first increase in the post-retirement earnings limit since 2007. The increase is tied to inflation over the period from 2007-2013. This bill would increase the sum that public retirees can earn without diminution of retirement benefits.

SUMMARY OF SPECIFIC PROVISIONS:

This bill would amend subdivision 2 of section 212 of the retirement and social security law. Specifically, this legislation would authorize a retired person to earn up to $32,500 (starting in 2013) without loss, suspension or diminution of their retirement allowance.

JUSTIFICATION:

Under current law, retirees may earn up to $30,000 without diminution of retirement earnings. This legislation would continue a yearly pattern of granting retirees an increase in what they can earn. As a result, it would extend a program which has seen significant cost savings to states and localities, whereby they can hire back experienced employees at a dramatically reduced cost and without benefits. This will be the first increase in the post-retirement earnings limit since 2007. The increase is tied to inflation over the period from 2007-2013.

Additionally, it should be noted that the dollar limitations expressed in this section of the retirement and social security law have traditionally tracked earning limitation amounts in federal law for social security recipients. Congress, however, in a series of reform measures passed in the late 1990's, has completely removed such limitation amounts.

Additionally, pursuant to subdivision one of this section 212, there are also no earning-limitations on or after the calendar year in which any retired person attains age sixty-five.

PRIOR LEGISLATIVE HISTORY:

2011-12: Ways and Means; 2009-10: Ways and Means; 2007-08: Ways and Means

FISCAL IMPLICATIONS:

De Minimis; see fiscal notes.

EFFECTIVE DATE:

This Act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2013.


Text

STATE OF NEW YORK ________________________________________________________________________ S. 4732 A. 6801 2013-2014 Regular Sessions S E N A T E - A S S E M B L Y April 19, 2013 ___________
IN SENATE -- Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions IN ASSEMBLY -- Introduced by M. of A. SWEENEY, ABBATE, WEISENBERG, GALEF, HOOPER, BOYLAND, ZEBROWSKI, ABINANTI, ROBERTS -- Multi-Spon- sored by -- M. of A. CAHILL, CLARK, COLTON, COOK, CYMBROWITZ, JAFFEE, MAGEE, MILLMAN, ORTIZ, PERRY, ROBINSON, WRIGHT -- read once and referred to the Committee on Governmental Employees AN ACT to amend the retirement and social security law, in relation to the employment of retired persons THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 2 of section 212 of the retirement and social security law, as amended by chapter 74 of the laws of 2006, is amended to read as follows: 2. The earning limitations for retired persons in positions of public service under this section shall be in accordance with the following table: For the year Earnings limitation 1996 $12,500 1997 $13,500 1998 $14,500 1999 $15,500 2000 $17,000 2001 $18,500 2002 $20,000 2003 $25,000 2004 $27,500 2005 and 2006 $27,500
2007 [and thereafter], $30,000 2008, 2009, 2010, 2011 AND 2012 2013 AND THEREAFTER $32,500 S 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2013. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: This bill would amend Section 212 of the Retirement and Social Securi- ty Law to set the amount a retired person may earn in public employment without reduction in retirement allowance during the year 2013 and ther- eafter, to $32,500. If this bill is enacted, insofar as it would affect the New York State and Local Employees' Retirement System and the New York State and Local Police and Fire Retirement System, the resulting 8.3% increase over the current $30,000 limit, in place since 2007, which is less than the increase in the consumer price index over the same period would not affect retirement patterns. Therefore, there will be no additional cost. Summary of relevant resources: Data: March 31, 2012 Actuarial Year End File with distributions of membership and other statistics displayed in the 2012 Report of the Actuary and 2012 Comprehensive Annual Financial Report. Assumptions and Methods: 2010, 2011 and 2012 Annual Report to the Comptroller on Actuarial Assumptions, Codes Rules and Regulations of the State of New York: Audit and Control. Market Assets and GASB Disclosures: March 31, 2012 New York State and Local Retirement System Financial statements and Supplementary Informa- tion. Valuations of Benefit Liabilities and Actuarial Assets: summarized in the 2012 Actuarial Valuations report. I am a member of the American Academy of Actuaries and meet the Quali- fication Standards to render the actuarial opinion contained herein. This estimate, dated December 17, 2012 and intended for use only during the 2013 Legislative Session, is Fiscal Note No. 2013-16, prepared by the Actuary for the New York State and Local Employees' Retirement System and the New York State and Local Police and Fire Retirement System. Pursuant to Legislative Law, Section 50: This bill would amend subdivision 2 of section 212 of the Retirement and Social Security Law to increase the earnings limitation for retired members in positions of public employment to $32,500 for the calendar year 2013 and thereafter. The earnings limitation for the calendar year 2012 was $30,000. The annual cost to the employers of members of the New York State Teachers' Retirement System is estimated to be negligible if this bill is enacted. The source of this estimate is Fiscal Note 2013-9 dated February 7, 2013 prepared by the Actuary of the New York State Teachers' Retirement System and is intended for use only during the 2013 Legislative Session. I, Richard A. Young, am the Actuary for the New York State Teachers' Retirement System. Pursuant to Legislative Law, Section 50: PROVISIONS OF PROPOSED LEGISLATION: With respect to the New York City Retirement Systems ("NYCRS"), this proposed legislation would amend Retirement and Social Security Law ("RSSL") Section 212 to increase the earnings limit of certain members who have returned to employment in Public Service.

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