S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6988
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 19, 2021
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Governmental Employees
 
 AN ACT to amend the retirement and social security law and the education
   law, in relation to member contribution per centum increases
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs 1, 2, 3, 4 and 5 of subdivision a of section 517
 of the retirement and social security law, as added by chapter 18 of the
 laws of 2012, are amended to read as follows:
   1. members with wages of forty-five thousand dollars per annum or less
 shall contribute three per centum of annual wages.  ON  APRIL  ONE,  TWO
 THOUSAND  TWENTY-TWO,  AND  EVERY  YEAR  THEREAFTER,  THE  WAGES IN THIS
 SUBPARAGRAPH SHALL BE INCREASED BY THREE PER CENTUM;
   2. members with wages greater than forty-five thousand per annum,  but
 not  more  than fifty-five thousand per annum shall contribute three and
 one-half per centum of annual wages. ON APRIL ONE, TWO THOUSAND  TWENTY-
 TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH SHALL BE
 INCREASED BY THREE PER CENTUM;
   3. members with wages greater than fifty-five thousand per annum,  but
 not  more than seventy-five thousand per annum shall contribute four and
 one-half per centum of annual wages. ON APRIL ONE, TWO THOUSAND  TWENTY-
 TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH SHALL BE
 INCREASED BY THREE PER CENTUM;
   4. members with wages greater than seventy-five thousand per annum but
 not more than one hundred thousand per annum shall contribute  five  and
 three-quarters  per  centum  of annual wages. ON APRIL ONE, TWO THOUSAND
 TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES  IN  THIS  SUBPARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM; and
   5.  members  with  wages  greater  than one hundred thousand per annum
 shall contribute six per centum of annual wages. ON APRIL ONE, TWO THOU-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03552-02-1
              

 A. 6988                             2
 
 SAND TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN  THIS  SUBPARA-
 GRAPH SHALL BE INCREASED BY THREE PER CENTUM.
   §  2.  Subparagraphs  (i), (ii), (iii), (iv) and (v) of paragraph 1 of
 subdivision a, subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph
 2 of subdivision a, paragraphs 1, 2, 3, 4 and 5  of  subdivision  f  and
 paragraphs  1,  2,  3,  4  and  5 of subdivision g of section 613 of the
 retirement and social security law, subparagraphs (i), (ii), (iii), (iv)
 and (v) of paragraph 1 and subparagraphs (i), (ii), (iii), (iv) and  (v)
 of paragraph 2 of subdivision a as amended by chapter 510 of the laws of
 2015  and paragraphs 1, 2, 3, 4 and 5 of subdivision f and paragraphs 1,
 2, 3, 4 and 5 of subdivision g as added by chapter 18  of  the  laws  of
 2012, are amended to read as follows:
   (i)  members  with  wages  of forty-five thousand dollars per annum or
 less shall contribute three per centum of annual wages.  ON  APRIL  ONE,
 TWO  THOUSAND  TWENTY-TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS
 SUBPARAGRAPH SHALL BE INCREASED BY THREE PER CENTUM;
   (ii) members with wages greater than forty-five  thousand  per  annum,
 but  not  more than fifty-five thousand per annum shall contribute three
 and one-half per centum of annual wages.  ON  APRIL  ONE,  TWO  THOUSAND
 TWENTY-TWO,  AND  EVERY  YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM;
   (iii) members with wages greater than fifty-five thousand  per  annum,
 but  not more than seventy-five thousand per annum shall contribute four
 and one-half per centum of annual wages.  ON  APRIL  ONE,  TWO  THOUSAND
 TWENTY-TWO,  AND  EVERY  YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM;
   (iv) members with wages greater than seventy-five thousand  per  annum
 but  not  more than one hundred thousand per annum shall contribute five
 and three-quarters per centum of annual wages. ON APRIL ONE,  TWO  THOU-
 SAND  TWENTY-TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARA-
 GRAPH SHALL BE INCREASED BY THREE PER CENTUM; and
   (v) members with wages greater than one  hundred  thousand  per  annum
 shall contribute six per centum of annual wages. ON APRIL ONE, TWO THOU-
 SAND  TWENTY-TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARA-
 GRAPH SHALL BE INCREASED BY THREE PER CENTUM.
   (i) members with wages of forty-five thousand  dollars  per  annum  or
 less  shall  contribute  three per centum of annual wages. ON APRIL ONE,
 TWO THOUSAND TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE  WAGES  IN  THIS
 SUBPARAGRAPH SHALL BE INCREASED BY THREE PER CENTUM;
   (ii)  members  with  wages greater than forty-five thousand per annum,
 but not more than fifty-five thousand per annum shall  contribute  three
 and  one-half  per  centum  of  annual wages. ON APRIL ONE, TWO THOUSAND
 TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES  IN  THIS  SUBPARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM;
   (iii)  members  with wages greater than fifty-five thousand per annum,
 but not more than seventy-five thousand per annum shall contribute  four
 and  one-half  per  centum  of  annual wages. ON APRIL ONE, TWO THOUSAND
 TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES  IN  THIS  SUBPARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM;
   (iv)  members  with wages greater than seventy-five thousand per annum
 but not more than one hundred thousand per annum shall  contribute  five
 and  three-quarters  per centum of annual wages. ON APRIL ONE, TWO THOU-
 SAND TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN  THIS  SUBPARA-
 GRAPH SHALL BE INCREASED BY THREE PER CENTUM; and
   (v)  members  with  wages  greater than one hundred thousand per annum
 shall contribute six per centum of annual wages. ON APRIL ONE, TWO THOU-

 A. 6988                             3
 
 SAND TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN  THIS  SUBPARA-
 GRAPH SHALL BE INCREASED BY THREE PER CENTUM.
   1. members with wages of forty-five thousand dollars per annum or less
 shall  contribute  three  per  centum of annual wages. ON APRIL ONE, TWO
 THOUSAND TWENTY-TWO, AND  EVERY  YEAR  THEREAFTER,  THE  WAGES  IN  THIS
 SUBPARAGRAPH SHALL BE INCREASED BY THREE PER CENTUM;
   2.  members with wages greater than forty-five thousand per annum, but
 not more than fifty-five thousand per annum shall contribute  three  and
 one-half  per centum of annual wages. ON APRIL ONE, TWO THOUSAND TWENTY-
 TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH SHALL  BE
 INCREASED BY THREE PER CENTUM;
   3.  members with wages greater than fifty-five thousand per annum, but
 not more than seventy-five thousand per annum shall contribute four  and
 one-half  per centum of annual wages. ON APRIL ONE, TWO THOUSAND TWENTY-
 TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH SHALL  BE
 INCREASED BY THREE PER CENTUM;
   4. members with wages greater than seventy-five thousand per annum but
 not  more  than one hundred thousand per annum shall contribute five and
 three-quarters per centum of annual wages. ON APRIL  ONE,  TWO  THOUSAND
 TWENTY-TWO,  AND  EVERY  YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM; and
   5. members with wages greater than  one  hundred  thousand  per  annum
 shall contribute six per centum of annual wages. ON APRIL ONE, TWO THOU-
 SAND  TWENTY-TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARA-
 GRAPH SHALL BE INCREASED BY THREE PER CENTUM.
   1. members with wages of forty-five thousand dollars per annum or less
 shall contribute three per centum of annual  wages.  ON  JULY  ONE,  TWO
 THOUSAND  TWENTY-TWO,  AND  EVERY  YEAR  THEREAFTER,  THE  WAGES IN THIS
 SUBPARAGRAPH SHALL BE INCREASED BY THREE PER CENTUM;
   2. members with wages greater than forty-five thousand per annum,  but
 not  more  than fifty-five thousand per annum shall contribute three and
 one-half per centum of annual wages. ON JULY ONE, TWO  THOUSAND  TWENTY-
 TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH SHALL BE
 INCREASED BY THREE PER CENTUM;
   3. members with wages greater than fifty-five thousand per annum,  but
 not  more than seventy-five thousand per annum shall contribute four and
 one-half per centum of annual wages. ON JULY ONE, TWO  THOUSAND  TWENTY-
 TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH SHALL BE
 INCREASED BY THREE PER CENTUM;
   4. members with wages greater than seventy-five thousand per annum but
 not more than one hundred thousand per annum shall contribute  five  and
 three-quarters  per  centum  of  annual wages. ON JULY ONE, TWO THOUSAND
 TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES  IN  THIS  SUBPARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM; and
   5.  members  with  wages  greater  than one hundred thousand per annum
 shall contribute six per centum of annual wages. ON JULY ONE, TWO  THOU-
 SAND  TWENTY-TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARA-
 GRAPH SHALL BE INCREASED BY THREE PER CENTUM.
   § 3. Subdivisions a, b, c, d and e of section 1204 of  the  retirement
 and social security law, as added by chapter 18 of the laws of 2012, are
 amended to read as follows:
   a. members with wages of forty-five thousand dollars per annum or less
 shall  contribute  three  per  centum of annual wages. ON APRIL ONE, TWO
 THOUSAND TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBDI-
 VISION SHALL BE INCREASED BY THREE PER CENTUM;

 A. 6988                             4
 
   b. members with wages greater than forty-five thousand per annum,  but
 not  more  than fifty-five thousand per annum shall contribute three and
 one-half per centum of annual wages. ON APRIL ONE, TWO THOUSAND  TWENTY-
 TWO,  AND  EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBDIVISION SHALL BE
 INCREASED BY THREE PER CENTUM;
   c.  members with wages greater than fifty-five thousand per annum, but
 not more than seventy-five thousand per annum shall contribute four  and
 one-half  per centum of annual wages. ON APRIL ONE, TWO THOUSAND TWENTY-
 TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBDIVISION  SHALL  BE
 INCREASED BY THREE PER CENTUM;
   d. members with wages greater than seventy-five thousand per annum but
 not  more  than one hundred thousand per annum shall contribute five and
 three-quarters per centum of annual wages. ON APRIL  ONE,  TWO  THOUSAND
 TWENTY-TWO,  AND  EVERY  YEAR  THEREAFTER, THE WAGES IN THIS SUBDIVISION
 SHALL BE INCREASED BY THREE PER CENTUM; and
   e. members with wages greater than  one  hundred  thousand  per  annum
 shall contribute six per centum of annual wages. ON APRIL ONE, TWO THOU-
 SAND  TWENTY-TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBDIVI-
 SION SHALL BE INCREASED BY THREE PER CENTUM.
   § 4. Paragraphs (a), (b), (c), (d) and (e) of subdivision 2 of section
 182 of the education law, as added by chapter 18 of the  laws  of  2012,
 are amended to read as follows:
   (a)  members  with  wages  of forty-five thousand dollars per annum or
 less shall contribute three per centum of annual wages.  ON  APRIL  ONE,
 TWO  THOUSAND  TWENTY-TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS
 PARAGRAPH SHALL BE INCREASED BY THREE PER CENTUM;
   (b) members with wages greater than forty-five thousand per annum, but
 not more than fifty-five thousand per annum shall contribute  three  and
 one-half  per centum of annual wages. ON APRIL ONE, TWO THOUSAND TWENTY-
 TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN  THIS  PARAGRAPH  SHALL  BE
 INCREASED BY THREE PER CENTUM;
   (c) members with wages greater than fifty-five thousand per annum, but
 not  more than seventy-five thousand per annum shall contribute four and
 one-half per centum of annual wages. ON APRIL ONE, TWO THOUSAND  TWENTY-
 TWO,  AND  EVERY  YEAR  THEREAFTER, THE WAGES IN THIS PARAGRAPH SHALL BE
 INCREASED BY THREE PER CENTUM;
   (d) members with wages greater than seventy-five  thousand  per  annum
 but  not  more than one hundred thousand per annum shall contribute five
 and three-quarters per centum of annual wages. ON APRIL ONE,  TWO  THOU-
 SAND  TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN THIS PARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM; and
   (e) members with wages greater than one  hundred  thousand  per  annum
 shall contribute six per centum of annual wages. ON APRIL ONE, TWO THOU-
 SAND  TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN THIS PARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM.
   § 5. Subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph (d)  of
 subdivision  2  of section 392 of the education law, as added by chapter
 18 of the laws of 2012, are amended to read as follows:
   (i) members with wages of forty-five thousand  dollars  per  annum  or
 less shall contribute three per centum of annual wages. ON JULY ONE, TWO
 THOUSAND  TWENTY-TWO,  AND  EVERY  YEAR  THEREAFTER,  THE  WAGES IN THIS
 SUBPARAGRAPH SHALL BE INCREASED BY THREE PER CENTUM;
   (ii) members with wages greater than forty-five  thousand  per  annum,
 but  not  more than fifty-five thousand per annum shall contribute three
 and one-half per centum of annual wages. ON JULY ONE, TWO THOUSAND TWEN-

 A. 6988                             5
 
 TY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH  SHALL
 BE INCREASED BY THREE PER CENTUM;
   (iii)  members  with wages greater than fifty-five thousand per annum,
 but not more than seventy-five thousand per annum shall contribute  four
 and one-half per centum of annual wages. ON JULY ONE, TWO THOUSAND TWEN-
 TY-TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH SHALL
 BE INCREASED BY THREE PER CENTUM;
   (iv) members with wages greater than seventy-five thousand  per  annum
 but  not  more than one hundred thousand per annum shall contribute five
 and three-quarters per centum of annual wages. ON JULY ONE, TWO THOUSAND
 TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES  IN  THIS  SUBPARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM; and
   (v)  members  with  wages  greater than one hundred thousand per annum
 shall contribute six per centum of annual wages. ON JULY ONE, TWO  THOU-
 SAND  TWENTY-TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARA-
 GRAPH SHALL BE INCREASED BY THREE PER CENTUM.
   § 6. Subparagraphs 1, 2, 3, 4 and 5 of paragraph (d) of subdivision  2
 of section 6252 of the education law, as added by chapter 18 of the laws
 of 2012, are amended to read as follows:
   (1)  members  with  wages  of forty-five thousand dollars per annum or
 less shall contribute three per centum of annual wages. ON JULY ONE, TWO
 THOUSAND TWENTY-TWO, AND  EVERY  YEAR  THEREAFTER,  THE  WAGES  IN  THIS
 SUBPARAGRAPH SHALL BE INCREASED BY THREE PER CENTUM;
   (2) members with wages greater than forty-five thousand per annum, but
 not  more  than fifty-five thousand per annum shall contribute three and
 one-half per centum of annual wages. ON JULY ONE, TWO  THOUSAND  TWENTY-
 TWO,  AND EVERY YEAR THEREAFTER, THE WAGES IN THIS SUBPARAGRAPH SHALL BE
 INCREASED BY THREE PER CENTUM;
   (3) members with wages greater than fifty-five thousand per annum, but
 not more than seventy-five thousand per annum shall contribute four  and
 one-half  per  centum of annual wages. ON JULY ONE, TWO THOUSAND TWENTY-
 TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN  THIS  PARAGRAPH  SHALL  BE
 INCREASED BY THREE PER CENTUM;
   (4)  members  with  wages greater than seventy-five thousand per annum
 but not more than one hundred thousand per annum shall  contribute  five
 and three-quarters per centum of annual wages. ON JULY ONE, TWO THOUSAND
 TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN THIS PARAGRAPH SHALL
 BE INCREASED BY THREE PER CENTUM; and
   (5)  members  with  wages  greater than one hundred thousand per annum
 shall contribute six per centum of annual wages. ON JULY ONE, TWO  THOU-
 SAND  TWENTY-TWO, AND EVERY YEAR THEREAFTER, THE WAGES IN THIS PARAGRAPH
 SHALL BE INCREASED BY THREE PER CENTUM.
   § 7. Notwithstanding any other provision of law to the contrary,  none
 of  the  provisions  of  this  act shall be subject to section 25 of the
 retirement and social security law.
   § 8. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would increase the wage ranges to which the 3%, 3.5%,  4.5%,
 5.75% and 6% contribution rates are applied for tier 6 members beginning
 on April 1, 2022 and every year thereafter by 3%.
   The current contribution rates and wage ranges are:
   3% for wages of $45,000 or less
   3.5% for wages greater than $45,000 and less than or equal to $55,000
   4.5% for wages greater than $55,000 and less than or equal to $75,000
   5.75% for wages greater than $75,000 and less than or equal to $100,000
   6.0% for wages greater than $100,000

 A. 6988                             6
 
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System (NYSLERS), if this legislation is enacted  during  the
 2021 legislative session, there will be an increase in the present value
 of  future  costs of approximately $428 million which would be shared by
 the  State  of  New  York  and all of the participating employers in the
 NYSLERS. The estimated first year  cost  would  be  approximately  $21.0
 million  to the State of New York and approximately $30.3 million to the
 participating employers in the NYSLERS.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire Retirement System (NYSLPFRS), if this legislation is enacted during
 the  2021  legislative session, there will be an increase in the present
 value of future costs of approximately  $9.37  million  which  would  be
 shared  by  the State of New York and all of the participating employers
 in the NYSLPFRS. The estimated first year cost  would  be  approximately
 $199,000  to  the  State  of  New York and approximately $832,000 to the
 participating employers in the NYSLPFRS.
   Summary of relevant resources:
   Membership data as of March 31, 2020 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2020 actuari-
 al  valuation.    Distributions and other statistics can be found in the
 2020 Report of the Actuary and the 2020 Comprehensive  Annual  Financial
 Report.
   The  actuarial  assumptions and methods used are described in the 2020
 Annual Report to the  Comptroller  on  Actuarial  Assumptions,  and  the
 Codes,  Rules  and  Regulations  of  the  State  of  New York: Audit and
 Control.
   The Market Assets and GASB Disclosures are found in the March 31, 2020
 New York State and Local  Retirement  System  Financial  Statements  and
 Supplementary Information.
   I am a member of the American Academy of Actuaries and meet the Quali-
 fication Standards to render the actuarial opinion contained herein.
   This  fiscal note does not constitute a legal opinion on the viability
 of the proposed change nor is it intended to serve as a  substitute  for
 the professional judgment of an attorney.
   This estimate, dated January 8, 2021, and intended for use only during
 the  2021  Legislative  Session, is Fiscal Note No. 2021-21, prepared by
 the Actuary for the New York State and Local Retirement System.