Bill S6785-2013

Relates to applying cost-of-living adjustments

Provides a cost-of-living adjustment for New York public retirement systems.

Details

Actions

  • Mar 11, 2014: REFERRED TO CIVIL SERVICE AND PENSIONS

Memo

BILL NUMBER:S6785

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. The bill provides a desirable amendment to chapter 125 needed to protect public retirees from continues 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 PROVISIONS: Effective September 1, 2014, 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 a of the above sections of law presently sets forth the age eligibility for receiving COLA as age 62 and retired five years or age 55 and retired ten years. This bill would revise the age of eligibility for COLA to age 55 and retired 5 years.

JUSTIFICATION: The eligibility age limitations and built in minimum 5year wait for COLA, has the further impact of eroding benefits. Standardizing the age of eligibility for COLA to age 55 and retired 5 years provides another means to afford retirees with a safer and more dignified retirement, reducing the impact of inflation. This change would provide police and fire personnel in the State of New York with a generally shorter waiting period for cost-of-living benefits, since many police and fire personnel retire before their 62nd birthday based upon statute and the generally more hazardous jobs they perform for the public.

This bill will help assure public retirees achieve a dignified and secure retirement, allowing them to continue to contribute more effectively to the longterm health of our economy.

LEGISLATIVE HISTORY: 2007-08: A8378 - referred to Governmental employees 2005-06: A7239 - referred to Governmental employees 2004: A10824 Governmental employees 2003: A4146 - Governmental employees 2000: S8180, enacted - Chapter 125, Laws of 2000.

FISCAL IMPLICATIONS: See fiscal notes submitted with and made a part of this bill.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6785 IN SENATE March 11, 2014 ___________
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 ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision a 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: a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND FOURTEEN, A cost-of-living adjustment shall be payable on the basis provided for in this section to: (i) all pensioners who have attained age [sixty-two] FIFTY-FIVE and have been retired for five years; (ii) [all pensioners who have attained age fifty-five and have been retired for ten years; (iii)] all disability pensioners regardless of age who have been retired for five years; and [(iv)] (III) all recipients of an accidental death benefit regardless of age who have been receiving such benefit for five years. S 2. Subdivision a of section 378-a of the retirement and social secu- rity law, as added by chapter 125 of the laws of 2000, is amended to read as follows: a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND FOURTEEN, A cost-of-living adjustment shall be payable on the basis provided for in this section to: (i) all pensioners who have attained age [sixty-two] FIFTY-FIVE and have been retired for five years; AND (ii) [all pension- ers who have attained age fifty-five and have been retired for ten years; and (iii)] all disability pensioners regardless of age who have been retired for five years. S 3. Subdivision a of section 532-a of the education law, as added by chapter 125 of the laws of 2000, is amended to read as follows: a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND FOURTEEN, A cost-of-living adjustment shall be payable on the basis provided for in this section to: (i) all pensioners who have attained age [sixty-two]
FIFTY-FIVE and have been retired for five years; (ii) [all pensioners who have attained age fifty-five and have been retired for ten years; (iii)] all disability pensioners regardless of age who have been retired for five years; and [(iv)] (III) all recipients of an accidental death benefit regardless of age who have been receiving such benefit for five years. S 4. Subdivision a of section 13-696 of the administrative code of the city of New York, as amended by chapter 288 of the laws of 2001, is amended to read as follows: a. [A] EFFECTIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND FOURTEEN, A cost-of-living adjustment shall be payable to retired members of the New York city employees' retirement system, the New York city teachers' retirement system, the New York city police pension fund, the New York city fire department pension fund, the New York city board of education retirement system or the relief and pension fund of the department of street cleaning provided for in subchapter one of this chapter on the basis provided for in this section to: (i) all retired members who have attained age [sixty-two] FIFTY-FIVE and have been retired for five years; (ii) [all retired members who have attained age fifty-five and have been retired for ten years; (iii)] all members who retired for disability regardless of age who have been retired for five years; and [(iv)] (III) all recipients of an accidental death benefit regardless of age who have been receiving such benefit for five years. S 5. This act shall take effect immediately.

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