S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6015
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 30, 2023
                                ___________
 
 Introduced  by  M.  of A. STECK, GUNTHER, ZINERMAN, LUPARDO -- read once
   and referred to the Committee on Governmental Employees
 
 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 c 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:
   c. Said cost-of-living adjustment shall be computed on a base  benefit
 amount  not to exceed eighteen thousand dollars of the annual retirement
 allowance defined in subdivision b of this section.   EFFECTIVE  ON  THE
 FIRST  DAY  OF  SEPTEMBER, TWO THOUSAND TWENTY-FOUR, SAID COST-OF-LIVING
 ADJUSTMENT SHALL BE COMPUTED ON A BASE  BENEFIT  AMOUNT  NOT  TO  EXCEED
 TWENTY-ONE  THOUSAND  DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE DEFINED
 IN SUBDIVISION B OF THIS SECTION.
   § 2. Subdivision c 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:
   c.  Said cost-of-living adjustment shall be computed on a base benefit
 amount not to exceed eighteen thousand dollars of the annual  retirement
 allowance  defined  in  subdivision b of this section.  EFFECTIVE ON THE
 FIRST DAY OF SEPTEMBER, TWO THOUSAND  TWENTY-FOUR,  SAID  COST-OF-LIVING
 ADJUSTMENT  SHALL  BE  COMPUTED  ON  A BASE BENEFIT AMOUNT NOT TO EXCEED
 TWENTY-ONE THOUSAND DOLLARS OF THE ANNUAL RETIREMENT  ALLOWANCE  DEFINED
 IN SUBDIVISION B OF THIS SECTION.
   §  3. Subdivision c of section 532-a of the education law, as added by
 chapter 125 of the laws of 2000, is amended to read as follows:
   c. Said cost-of-living adjustment shall be computed on a base  benefit
 amount  not to exceed eighteen thousand dollars of the annual retirement
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06045-02-3
              

 A. 6015                             2
 
 allowance defined in subdivision b of this section.   EFFECTIVE  ON  THE
 FIRST  DAY  OF  SEPTEMBER, TWO THOUSAND TWENTY-FOUR, SAID COST-OF-LIVING
 ADJUSTMENT SHALL BE COMPUTED ON A BASE  BENEFIT  AMOUNT  NOT  TO  EXCEED
 TWENTY-ONE  THOUSAND  DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE DEFINED
 IN SUBDIVISION B OF THIS SECTION.
   § 4. Subdivision c 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:
   c.  Said cost-of-living adjustment shall be computed on a base benefit
 amount not to exceed eighteen  thousand  dollars  of  the  annual  fixed
 retirement  allowance  defined in subdivision b of this section.  EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-FOUR, SAID COST-
 OF-LIVING ADJUSTMENT SHALL BE COMPUTED ON A BASE BENEFIT AMOUNT  NOT  TO
 EXCEED  TWENTY-ONE  THOUSAND  DOLLARS OF THE ANNUAL RETIREMENT ALLOWANCE
 DEFINED IN SUBDIVISION B OF THIS SECTION.
   § 5. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would amend subdivision c of Section 532-a of the  Education
 Law  to  apply the cost-of-living adjustment (COLA) percentage to a base
 benefit amount not to exceed $21,000 of annual retirement  benefit.  The
 current  cap  on  the  annual  base  benefit amount for COLA purposes is
 $18,000. This benefit improvement would be effective in September 2024.
   The annual cost to the employers of members  of  the  New  York  State
 Teachers'  Retirement  System  for this benefit is estimated to be $78.6
 million or .43% of payroll if this bill is enacted.
   Member data is from  the  System's  most  recent  actuarial  valuation
 files,  consisting  of  data provided by the employers to the Retirement
 System. Data distributions and statistics can be found in  the  System's
 Annual  Report.  System assets are as reported in the System's financial
 statements and can also be found in the System's Annual Report. Actuari-
 al assumptions and methods are provided in the System's Actuarial  Valu-
 ation Report.
   The  source  of  this  estimate is Fiscal Note 2023-19 dated March 10,
 2023 prepared by the Office of the Actuary of the New York State  Teach-
 ers'  Retirement  System  and  is  intended for use only during the 2023
 Legislative Session. I, Richard A. Young, am the Chief Actuary  for  the
 New  York State Teachers' Retirement System. I am a member of the Ameri-
 can Academy of Actuaries and I meet the Qualification Standards  of  the
 American  Academy of Actuaries to render the actuarial opinion contained
 herein.