Bill S6787-2013

Relates to providing cost-of-living adjustments

Provides cost-of-living adjustments, including an adjusted benefit in monthly installments that is equal to the percentage of the change in consumer price index according to the included schedule.

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

Memo

BILL NUMBER:S6787

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 continued 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 d of said sections of law is amended by this bill, to increase the maximum percentage of the CPI for COLA benefits from not more than 3% and not less than 1% of CPI to not more than 5% and not less than 1% of CPI. It has been four years since the COLA bill was enacted. The general cost-of-living for retirees has been steadily increasing. In particular, medical costs including co-payments, premiums, and medication, have risen at a rate far in excess of the CPI. Federal amendments to the Medicare law, especially the prescription drug coverage, has caused significant increases in retired public employee health care costs.

JUSTIFICATION: Significant strides were made by the enactment of Chapter 125 of the Laws of 2000. While the CPI has remained very modest since the enactment of COLA, as noted above other costs have had a significant impact on retiree security. For example, 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, are likely to cause a significant increase in retired public employee health care costs.

This modest increase in the maximum percentage of the CPI for COLA benefits will provide needed but modest protection for retirees in the event the CPI exceeds 3%.

This bill will help assure 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: 2007-08: A8558 - referred to Governmental employees 2005-06: A7237 - referred to Governmental employees 2004: A10828 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 ________________________________________________________________________ 6787 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 f 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: f. Commencing September first, two thousand, all retired members who have retired prior to the calendar year nineteen hundred ninety-seven and who meet the eligibility criteria set forth in subdivision a of this section shall be paid an adjusted benefit in monthly installments on the basis provided for in this subdivision. Said adjusted benefit shall be equal to a percentage of the change in 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, measured from the year of retirement through calendar year nineteen hundred ninety-seven according to the following schedule: Year of retirement Percentage 1968 through 1996 50% 1966 and 1967 55% 1965 60% 1964 65% 1963 70% 1962 80% 1961 90% prior to 1961 100% Said adjusted benefit shall be computed on a base benefit amount not to exceed eighteen thousand dollars of the retirement allowance otherwise payable, computed without optional modification. Any benefit received
pursuant to this subdivision shall be in lieu of any benefit received pursuant to section seventy-eight of this title. COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, ALL RETIRED MEMBERS WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED NINETY-SEV- EN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVISION A OF THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY INSTALLMENTS ON THE BASIS PROVIDED FOR IN THIS SUBDIVISION. SAID ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN 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, MEASURED FROM THE YEAR OF RETIREMENT THROUGH CALENDAR YEAR NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE: YEAR OF RETIREMENT PERCENTAGE 1973 THROUGH 1996 50% 1971 AND 1972 55% 1970 60% 1969 65% 1968 70% 1967 80% 1966 90% PRIOR TO 1966 100% SAID ADJUSTED BENEFIT COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, SHALL BE COMPUTED ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT TO THIS SUBDIVISION SHALL BE IN LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION SEVENTY-EIGHT OF THIS TITLE. S 2. Subdivision f 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: f. Commencing September first, two thousand, all retired members who have retired prior to the calendar year nineteen hundred ninety-seven and who meet the eligibility criteria set forth in subdivision a of this section shall be paid an adjusted benefit in monthly installments on the basis provided for in this subdivision. Said adjusted benefit shall be equal to a percentage of the change in 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, measured from the year of retirement through calendar year nineteen hundred ninety-seven according to the following schedule: Year of retirement Percentage 1968 through 1996 50% 1966 and 1967 55% 1965 60% 1964 65% 1963 70% 1962 80% 1961 90% prior to 1961 100% Said adjusted benefit shall be computed on a base benefit amount not to exceed eighteen thousand dollars of the retirement allowance otherwise payable, computed without optional modification. Any benefit received pursuant to this subdivision shall be in lieu of any benefit received pursuant to section three hundred seventy-eight of this title.
COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, ALL RETIRED MEMBERS WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED NINETY-SEV- EN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVISION A OF THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY INSTALLMENTS ON THE BASIS PROVIDED FOR IN THIS SUBDIVISION. SAID ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN 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, MEASURED FROM THE YEAR OF RETIREMENT THROUGH CALENDAR YEAR NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE: YEAR OF RETIREMENT PERCENTAGE 1973 THROUGH 1996 50% 1971 AND 1972 55% 1970 60% 1969 65% 1968 70% 1967 80% 1966 90% PRIOR TO 1966 100% SAID ADJUSTED BENEFIT COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, SHALL BE COMPUTED ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT TO THIS SUBDIVISION SHALL BE IN LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION THREE HUNDRED SEVEN- TY-EIGHT OF THIS TITLE. S 3. Subdivision f of section 532-a of the education law, as added by chapter 125 of the laws of 2000, is amended to read as follows: f. Commencing September first, two thousand, all retired members who have retired prior to the calendar year nineteen hundred ninety-seven and who meet the eligibility criteria set forth in subdivision a of this section shall be paid an adjusted benefit in monthly installments on the basis provided for in this subdivision. Said adjusted benefit shall be equal to a percentage of the change in 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, measured from the year of retirement through calendar year nineteen hundred ninety-seven according to the following schedule: Year of retirement Percentage 1968 through 1996 50% 1966 and 1967 55% 1965 60% 1964 65% 1963 70% 1962 80% 1961 90% prior to 1961 100% Said adjusted benefit shall be computed on a base benefit amount not to exceed eighteen thousand dollars of the retirement allowance otherwise payable, computed without optional modification excluding any annuity derived from voluntary contributions made by members, except those made pursuant to elections under subdivision one of section five hundred eleven-a or paragraph c of subdivision three of section five hundred sixteen of this article. Any benefits received pursuant to this subdivi- sion shall be in lieu of any benefits received pursuant to section five hundred thirty-two of this article, unless such benefits are in excess
of those provided by this section, in which case such benefits shall be paid by the retirement system pursuant to such provision. COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, ALL RETIRED MEMBERS WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED NINETY-SEV- EN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVISION A OF THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY INSTALLMENTS ON THE BASIS PROVIDED FOR IN THIS SUBDIVISION. SAID ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN 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, MEASURED FROM THE YEAR OF RETIREMENT THROUGH CALENDAR YEAR NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE: YEAR OF RETIREMENT PERCENTAGE 1973 THROUGH 1996 50% 1971 AND 1972 55% 1970 60% 1969 65% 1968 70% 1967 80% 1966 90% PRIOR TO 1966 100% SAID ADJUSTED BENEFIT, COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOUR- TEEN, SHALL BE COMPUTED ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT TO THIS SUBDIVISION SHALL BE IN LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION FIVE HUNDRED THIRTY-TWO OF THIS ARTICLE. S 4. Subdivision f 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: f. Commencing September first, two thousand, all retired members who have retired prior to the calendar year nineteen hundred ninety-seven and who meet the eligibility criteria set forth in subdivision a of this section shall be paid an adjusted benefit in monthly installments on the basis provided for in this subdivision. Said adjusted benefit shall be equal to a percentage of the change in 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, measured from the year of retirement through calendar year nineteen hundred ninety-seven according to the following schedule: Year of retirement Percentage 1968 through 1996 50% 1966 and 1967 55% 1965 60% 1964 65% 1963 70% 1962 80% 1961 90% prior to 1961 100% Said adjusted benefit shall be computed on a base benefit amount not to exceed eighteen thousand dollars of the annual fixed retirement allow- ance otherwise payable, computed without optional modification. Any benefit received pursuant to this subdivision shall be in lieu of any benefit received pursuant to chapter three hundred ninety of the laws of
nineteen hundred ninety-eight, and any preceding provision of law providing for supplementation. COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, ALL RETIRED MEMBERS WHO HAVE RETIRED PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED NINETY-SEV- EN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVISION A OF THIS SECTION SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY INSTALLMENTS ON THE BASIS PROVIDED FOR IN THIS SUBDIVISION. SAID ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN 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, MEASURED FROM THE YEAR OF RETIREMENT THROUGH CALENDAR YEAR NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE: YEAR OF RETIREMENT PERCENTAGE 1973 THROUGH 1996 50% 1971 AND 1972 55% 1970 60% 1969 65% 1968 70% 1967 80% 1966 90% PRIOR TO 1966 100% SAID ADJUSTED BENEFIT, COMMENCING SEPTEMBER FIRST, TWO THOUSAND FOUR- TEEN, SHALL BE COMPUTED ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT TO THIS SUBDIVISION SHALL BE IN LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION 13-695 OF THIS ARTICLE. S 5. This act shall take effect immediately.

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