Increases the amount of money a retiree may earn in a position of public service in the year 2013 and thereafter to $34,000.
TITLE OF BILL: An act to amend the retirement and social security law, in relation to increasing the retiree earnings cap
PURPOSE: This bill would increase the amount that a public retiree under sixty-five years of age may earn in public employment without a diminution of his or her retirement benefits.
SUMMARY OF PROVISIONS:. The bill amends subdivision 2 of Section 212 of the Retirement and Social Security Law. It would allow a public retiree to earn up to $34,000 in public employment without reducing the retiree's pension.
EXISTING LAW: Current law permits such an individual to earn up to $30,000 without a loss of pension benefits.
JUSTIFICATION: Under current law, retirees may earn up to $30,000 without diminution of retirement earnings. From 1996 through 2004 this earnings limit was raised each year. The last time it was increased was in 2007 when it was raised from $27,500 to $30,000.
This legislation would update the amount to account for inflation. The increase reflects the increase in the Consumer Price Index As a result, it would extend a program which has seen significant cost savings to states and localities by giving them the ability to hire experienced employees at a significantly reduced cost without paying for employee benefits.
Pursuant to subdivision one of section 212, there are no earning limitations applicable to retired persons who are age sixty-five or older.
LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS: No additional cost.
EFFECTIVE DATE: Immediately
STATE OF NEW YORK ________________________________________________________________________ 5090 2013-2014 Regular Sessions IN SENATE May 8, 2013 ___________Introduced by Sen. FARLEY -- 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, in relation to increasing the retiree earnings cap 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]THROUGH 2012 $30,000 2013 AND THEREAFTER $34,000 S 2. This act shall take effect immediately. 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 employmentEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10431-02-3 S. 5090 2 without reduction in retirement allowance during the year 2013 and ther- eafter, to $34,000. 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 13.3% 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 April 25, 2013 and intended for use only during the 2013 Legislative Session, is Fiscal Note No. 2013-127, 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.