NY State Assembly Bill 2023-A6636B

Current Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 08, 2024	print number 6636b
Apr 08, 2024	amend and recommit to governmental employees
Mar 12, 2024	print number 6636a
Mar 12, 2024	amend and recommit to governmental employees
Jan 03, 2024	referred to governmental employees
Apr 25, 2023	referred to governmental employees

Bill Amendments

Original

B (Active)

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2023-A6636 - Details

See Senate Version of this Bill:: S6152
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd
Versions Introduced in 2021-2022 Legislative Session:: A10273, S9389

2023-A6636 - Summary

Provides for cost-of-living adjustments; provides that the base benefit amount shall be increased annually by reference to the consumer price index for each applicable calendar year beginning on September 1, 2024.

2023-A6636 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6636
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 25, 2023
                                ___________
 
 Introduced  by  M.  of A. PHEFFER AMATO -- 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]  OF  eighteen  thousand  dollars of the annual
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER, SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY  REFER-
 ENCE  TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR BEGINNING
 ON SEPTEMBER FIRST, TWO  THOUSAND  TWENTY-FOUR.  THE  ANNUAL  PERCENTAGE
 INCREASE  TO  THE  BASE  AMOUNT  SHALL EQUAL FIFTY PERCENT OF THE ANNUAL
 INFLATION, AS DETERMINED FROM THE INCREASE IN THE CONSUMER  PRICE  INDEX
 IN   THE   ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR TO THE
 COST-OF-LIVING ADJUSTMENT  EFFECTIVE  ON  THE  ENSUING SEPTEMBER  FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE  PERCENT  AND  SHALL  NOT  EXCEED THREE PERCENT NOR BE LESS THAN ONE
 PERCENT.
   § 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]  OF  eighteen  thousand  dollars  of  the  annual
 retirement allowance defined in subdivision b of this section, PROVIDED,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03457-03-3

 A. 6636                             2
 
 HOWEVER,  SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY REFER-
 ENCE TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR BEGINNING
 ON SEPTEMBER FIRST, TWO  THOUSAND  TWENTY-FOUR.  THE  ANNUAL  PERCENTAGE
 INCREASE  TO  THE  BASE  AMOUNT  SHALL EQUAL FIFTY PERCENT OF THE ANNUAL
 INFLATION, AS DETERMINED FROM THE INCREASE IN THE CONSUMER  PRICE  INDEX
 IN   THE   ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR TO THE
 COST-OF-LIVING ADJUSTMENT  EFFECTIVE  ON  THE  ENSUING SEPTEMBER  FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE  PERCENT  AND  SHALL  NOT  EXCEED THREE PERCENT NOR BE LESS THAN ONE
 PERCENT.
   § 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]  OF  eighteen  thousand  dollars  of  the  annual
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER,  SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY REFER-
 ENCE TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR  BEGINNING
 ON  SEPTEMBER  FIRST,  TWO  THOUSAND  TWENTY-FOUR. THE ANNUAL PERCENTAGE
 INCREASE TO THE BASE AMOUNT SHALL EQUAL  FIFTY  PERCENT  OF  THE  ANNUAL
 INFLATION,  AS  DETERMINED FROM THE INCREASE IN THE CONSUMER PRICE INDEX
 IN  THE  ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR  TO  THE
 COST-OF-LIVING  ADJUSTMENT  EFFECTIVE  ON  THE  ENSUING SEPTEMBER FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE PERCENT AND SHALL NOT EXCEED THREE PERCENT  NOR  BE  LESS  THAN  ONE
 PERCENT.
   § 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] OF eighteen thousand dollars of the annual fixed
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER, SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY  REFER-
 ENCE  TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR BEGINNING
 ON SEPTEMBER FIRST, TWO  THOUSAND  TWENTY-FOUR.  THE  ANNUAL  PERCENTAGE
 INCREASE  TO  THE  BASE  AMOUNT  SHALL EQUAL FIFTY PERCENT OF THE ANNUAL
 INFLATION, AS DETERMINED FROM THE INCREASE IN THE CONSUMER  PRICE  INDEX
 IN   THE   ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR TO THE
 COST-OF-LIVING ADJUSTMENT  EFFECTIVE  ON  THE ENSUING  SEPTEMBER  FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE  PERCENT  AND  SHALL  NOT  EXCEED THREE PERCENT NOR BE LESS THAN ONE
 PERCENT.
   § 5. 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.
   § 6.  This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide an increase in the  defined  benefit  cost-of-
 living  adjustment (COLA) for New York public retirement systems. Start-
 ing with the payment in September 2024, the base benefit for computation
 A. 6636                             3
 
 of the annual COLA will be increased  annually  by  50%  of  the  annual
 inflation rate not to exceed 3% or be less than 1%.
   Insofar  as  this bill affects the New York State and Local Employees'
 Retirement System (NYSLERS), increased costs  would  be  shared  by  the
 State  of  New  York  and all participating employers in the NYSLERS. If
 this bill is enacted during the 2023 legislative session, there will  be
 an  increase in the present value of future costs of approximately $1.19
 billion.
 
                         Increase in present   Increase in future
           NYSLERS          value benefits        contributions
 
           Tiers 1 - 5       $976 million          $643 million
                Tier 6       $215 million          $549 million
                 Total       $1.19 billion         $1.19 billion
 
   In the NYSLERS, this benefit improvement will be funded by  increasing
 the  billing rates charged annually. The annual contribution required of
 all participating employers in the  NYSLERS  is  approximately  0.4%  of
 billable  salary,  or approximately $49 million to the State of New York
 and $71 million to the local participating employers in the fiscal  year
 ending  March  31,  2025. This PERMANENT ANNUAL COST will vary in subse-
 quent billing cycles with changes in the billing rate and salary of  the
 affected members.
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), increased costs would  be  shared  by
 the  State  of New York and all participating employers in the NYSLPFRS.
 If this bill is enacted during the 2023 legislative session, there  will
 be  an  increase  in  the present value of future costs of approximately
 $173 million.
 
                         Increase in present   Increase in future
           NYSLPFRS         value benefits        contributions
 
           Tiers 1 - 5       $141 million          $83 million
                Tier 6       $32 million           $90 million
                 Total       $173 million          $173 million

   In the NYSLPFRS, this benefit improvement will be funded by increasing
 the billing rates charged annually. The annual contribution required  of
 all  participating  employers  in  the NYSLPFRS is approximately 0.4% of
 billable salary, or approximately $3.4 million to the State of New  York
 and  $14 million to the local participating employers in the fiscal year
 ending March 31, 2025. This PERMANENT ANNUAL COST will  vary  in  subse-
 quent  billing cycles with changes in the billing rate and salary of the
 affected members.
   Summary of relevant resources:
   Membership data as of March 31, 2022 was used in measuring the  impact
 of the proposed change, the same data used in the April 1, 2022 actuari-
 al  valuation.  Distributions  and  other statistics can be found in the
 2022 Report of the Actuary and the 2022 Annual  Comprehensive  Financial
 Report.
   The  actuarial assumptions and methods used are described in the 2020,
 2021, and 2022 Annual Report to the  Comptroller  on  Actuarial  Assump-
 tions,  and  the  Codes, Rules and Regulations of the State of New York:
 Audit and Control.
 A. 6636                             4
 
   The Market Assets and GASB Disclosures are found in the March 31, 2022
 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 March 30, 2023, and intended for use only during
 the 2023 Legislative Session, is Fiscal Note No.  2023-28,  prepared  by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill would amend subdivision c of Section 532-a of the Education
 Law to annually increase the current  cost-of-living  adjustment  (COLA)
 base  benefit amount by fifty percent of annual inflation. Currently the
 base benefit amount to which the COLA percentage is applied is fixed  at
 $18,000  annually. The annual percentage increase shall be determined as
 fifty percent of the increase in the Consumer Price Index, published  by
 the  United  States  Bureau  of Labor Statistics, in the one-year period
 ending on the March thirty-first prior to  the  COLA  effective  on  the
 ensuing September first. The annual percentage increase shall not exceed
 three  percent nor be less than one percent. This annual COLA base bene-
 fit adjustment would be effective beginning 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 $88.8
 million or 0.48% 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 2023-11 dated February 7,
 2023 prepared by the Office  of  the  Actuary  of  the  New  York  State
 TeachersÆ 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.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY  OF  BILL: This proposed legislation, as it relates to the New
 York City Retirement Systems and  Pension  Funds  (NYCRS),  would  amend
 Section  13-696  of  the  Administrative  Code  of  the City of New York
 (ACCNY) to increase the Cost-of-Living Adjustment (COLA) base  limit  of
 $18,000 by 50% of CPI each year (limited to between 1% and 3%), starting
 on September 1, 2024, for the New York City Employees' Retirement System
 (NYCERS),  the  New  York City Teachers' Retirement System (NYCTRS), the
 New York City Board of Education Retirement System (BERS), the New  York
 City  Police  Pension  Fund (POLICE), and the New York City Fire Pension
 Fund (FIRE).
   Note: To the extent that the implementation  of  the  proposed  legis-
 lation  deviates from the calculation method discussed herein, the costs
 for the proposed legislation may be as much as 80% higher than the costs
 disclosed in the table below.
 A. 6636                             5
 
   Effective Date: Upon enactment.
   IMPACT  ON  BENEFITS:  Currently  the COLA provides an annual increase
 equal to a percentage of the maximum annual  retirement  allowance,  but
 limited to the first $18,000 of retirement allowance.
   The costs in the table below are based on providing for an increase in
 the  $18,000 limit starting on September 1, 2024 and each year thereaft-
 er.  This increase would be equal to the increase in the consumer  price
 index (CPI) in the one-year period ending on the prior March 31, rounded
 to  the  next  higher one-tenth of one percent, but not more than 3% nor
 less than 1%.
   The alternate cost disclosed below uses the increasing $18,000 as  the
 base  for  calculating  COLA  rather than as the limit of the retirement
 allowance subject to the COLA increase.
   FINANCIAL IMPACT: The  estimated  financial  impact  to  NYCRS  is  an
 increase  in  Present  Value  of  Future  Benefits of approximately $1.4
 billion and an increase in Fiscal Year  2024  annual  employer  contrib-
 utions of approximately $734.1 million. The increase in Fiscal Year 2024
 annual  employer  contributions  of  $734.1  million  is estimated to be
 $605.7 million for New York City and $128.4 million for the other  obli-
 gors of NYCRS. A breakdown of the financial impact by System is shown in
 the table below.
                       Additional                  Estimated First Year
     NYCRS     Present Value of Future Benefits      Annual Employer
                      ($ Millions)                    Contributions*
                                                       ($ Millions)
 
     NYCERS              $ 576.2                         $ 298.5
     NYCTRS                446.0                           187.6
     BERS                   40.9                            14.9
     POLICE                251.8                           184.2
     FIRE                   79.2                            48.9
        Total          $ 1,394.1                         $ 734.1
     * Total employer contributions after the first year are estimated
       to be approximately $90 million per year.
 
   As noted above, to the extent that the implementation of this proposed
 legislation,  for  purposes of calculating individual COLA amounts, uses
 the increasing $18,000 base for all retirees, the increase  in  PVFB  is
 estimated to be approximately $2.5 billion.
   New  Unfunded  Accrued Liability (UAL) attributable to benefit changes
 are generally amortized over the remaining  working  lifetime  of  those
 impacted  by  the  benefit changes. For purposes of this Fiscal Note, it
 has been assumed that increases in UAL attributable to current  retirees
 would  be  recognized immediately and that increases in UAL attributable
 to active members would be amortized over periods ranging from 12 to  15
 years  depending  on  the  System  (11 to 14 payments under One-Year Lag
 Methodology) using level dollar payments.
   CENSUS DATA: The estimates presented herein are based  on  the  census
 data used in the June 30, 2022 actuarial valuation of NYCRS to determine
 the Preliminary Fiscal Year 2024 employer contributions.
   ACTUARIAL ASSUMPTIONS AND METHODS: The estimates presented herein have
 been  calculated based on the actuarial assumptions and methods used for
 the Preliminary Fiscal Year 2024 employer contributions of NYCRS.
   For the purposes of this Fiscal Note, it is assumed that  the  changes
 would  be  reflected  for  the first time in the June 30, 2022 actuarial
 A. 6636                             6
 
 valuations of NYCRS used to determine employer contributions for  Fiscal
 Year 2024.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the realization of the actuarial assumptions used,  demograph-
 ics  of  the  impacted  population and other factors such as investment,
 contribution, and other risks. If actual experience deviates from  actu-
 arial  assumptions,  the  actual costs could differ from those presented
 herein.
   Costs are also dependent on the actuarial methods used, and  therefore
 different actuarial methods could produce different results. Quantifying
 these risks is beyond the scope of this Fiscal Note.
   Not measured in this Fiscal Note are the following:
   *  The  initial,  additional  administrative  costs  to  implement the
 proposed legislation.
   STATEMENT OF ACTUARIAL OPINION: I, Marek  Tyszkiewicz,  am  the  Chief
 Actuary  for,  and  independent of, the New York City Retirement Systems
 and Pension Funds. I am an Associate of the Society of Actuaries  and  a
 Member of the American Academy of Actuaries. I am a member of NYCERS but
 do  not  believe  it impairs my objectivity and I meet the Qualification
 Standards of the American Academy of Actuaries to render  the  actuarial
 opinion  contained  herein.  To  the  best  of my knowledge, the results
 contained  herein  have  been  prepared  in  accordance  with  generally
 accepted  actuarial  principles  and  procedures  and with the Actuarial
 Standards of Practice issued by the Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2023-12 dated  March  22,
 2023  was prepared by the Chief Actuary for the New York City Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2023 Legislative Session.

co-Sponsors

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2023-A6636A - Details

See Senate Version of this Bill:: S6152
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd
Versions Introduced in 2021-2022 Legislative Session:: A10273, S9389

2023-A6636A - Summary

2023-A6636A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6636--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 25, 2023
                                ___________
 
 Introduced  by  M.  of  A.  PHEFFER AMATO,  McDONALD,  COLTON, SILLITTI,
   BUTTENSCHON, LUNSFORD -- read once and referred to  the  Committee  on
   Governmental Employees -- recommitted to the Committee on Governmental
   Employees  in  accordance  with  Assembly  Rule 3, sec. 2 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 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]  OF  eighteen  thousand  dollars of the annual
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER, SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY  REFER-
 ENCE  TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR BEGINNING
 ON SEPTEMBER FIRST, TWO  THOUSAND  TWENTY-FOUR.  THE  ANNUAL  PERCENTAGE
 INCREASE  TO  THE  BASE  AMOUNT  SHALL EQUAL FIFTY PERCENT OF THE ANNUAL
 INFLATION, AS DETERMINED FROM THE INCREASE IN THE CONSUMER  PRICE  INDEX
 IN   THE   ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR TO THE
 COST-OF-LIVING ADJUSTMENT  EFFECTIVE  ON  THE  ENSUING SEPTEMBER  FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE  PERCENT  AND  SHALL  NOT  EXCEED THREE PERCENT NOR BE LESS THAN ONE
 PERCENT.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03457-05-4
 A. 6636--A                          2

   § 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]  OF  eighteen  thousand  dollars  of  the  annual
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER,  SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY REFER-
 ENCE TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR  BEGINNING
 ON  SEPTEMBER  FIRST,  TWO  THOUSAND  TWENTY-FOUR. THE ANNUAL PERCENTAGE
 INCREASE TO THE BASE AMOUNT SHALL EQUAL  FIFTY  PERCENT  OF  THE  ANNUAL
 INFLATION,  AS  DETERMINED FROM THE INCREASE IN THE CONSUMER PRICE INDEX
 IN  THE  ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR  TO  THE
 COST-OF-LIVING  ADJUSTMENT  EFFECTIVE  ON  THE  ENSUING SEPTEMBER FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE PERCENT AND SHALL NOT EXCEED THREE PERCENT  NOR  BE  LESS  THAN  ONE
 PERCENT.
   §  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]  OF  eighteen  thousand  dollars of the annual
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER, SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY  REFER-
 ENCE  TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR BEGINNING
 ON SEPTEMBER FIRST, TWO  THOUSAND  TWENTY-FOUR.  THE  ANNUAL  PERCENTAGE
 INCREASE  TO  THE  BASE  AMOUNT  SHALL EQUAL FIFTY PERCENT OF THE ANNUAL
 INFLATION, AS DETERMINED FROM THE INCREASE IN THE CONSUMER  PRICE  INDEX
 IN   THE   ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR TO THE
 COST-OF-LIVING ADJUSTMENT  EFFECTIVE  ON  THE  ENSUING SEPTEMBER  FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE  PERCENT  AND  SHALL  NOT  EXCEED THREE PERCENT NOR BE LESS THAN ONE
 PERCENT.
   § 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] OF eighteen thousand dollars of the annual  fixed
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER,  SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY REFER-
 ENCE TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR  BEGINNING
 ON  SEPTEMBER  FIRST,  TWO  THOUSAND  TWENTY-FOUR. THE ANNUAL PERCENTAGE
 INCREASE TO THE BASE AMOUNT SHALL EQUAL  FIFTY  PERCENT  OF  THE  ANNUAL
 INFLATION,  AS  DETERMINED FROM THE INCREASE IN THE CONSUMER PRICE INDEX
 IN  THE  ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR  TO  THE
 COST-OF-LIVING  ADJUSTMENT   EFFECTIVE  ON  THE ENSUING SEPTEMBER FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE PERCENT AND SHALL NOT EXCEED THREE PERCENT  NOR  BE  LESS  THAN  ONE
 PERCENT.
   §  5. 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.
 A. 6636--A                          3
 
   § 6.  This act shall take effect immediately.
   FISCAL NOTE.-- Pursuant to  Legislative Law, Section 50:
   This  bill  would  provide an increase in the defined benefit cost-of-
 living adjustment (COLA) for New York public retirement systems.  Start-
 ing with the payment in September 2024, the base benefit for computation
 of the annual COLA, currently $18,000, will be increased annually by 50%
 of the annual inflation rate not to exceed 3% or be less than 1%.
   The provisions of Section 25 of the Retirement and Social Security Law
 shall not apply.
   This proposal primarily benefits current and former members of Tiers 1
 -  5.  The  cost  of this benefit improvement will disproportionately be
 borne by current and future members of Tier 6.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System (NYSLERS), the increased costs would be shared by the
 State of New York and the local participating employers in the  NYSLERS.
 If  this  bill  were  enacted  during  the 2024 Legislative Session, the
 increase in the present value of benefits would be  approximately  $1.30
 billion.
 
          NYSLERS       Increase in present   Increase in required
                        value benefits        contributions
          Tiers 1 - 5   $1.03 billion         $634 million
          Tier 6        $0.27 billion         $663 million
          Total         $1.30 billion         $1.30 billion
 
   In  the NYSLERS, this benefit improvement will be funded by increasing
 the billing rates charged  annually  to  cover  both  retrospective  and
 prospective  benefit  increases. The annual contribution required of all
 participating employers in  NYSLERS  is  0.4%  of  billable  salary,  or
 approximately $51 million to the State of New York and approximately $76
 million to the local participating employers. This PERMANENT ANNUAL COST
 will  vary in subsequent billing cycles with changes in the billing rate
 and salary of the affected members.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  System (NYSLPFRS), the increased costs would be shared
 by the State of New York and the local participating  employers  in  the
 NYSLPFRS. If this bill were enacted during the 2024 Legislative Session,
 the  increase  in  the  present value of benefits would be approximately
 $189 million.
 
          NYSLPFRS      Increase in present   Increase in required
                        value benefits        contributions
          Tiers 1 - 5   $150 million          $80 million
          Tier 6        $39 million           $109 million
          Total         $189 million          $189 million
 
   In the NYSLPFRS, this benefit improvement will be funded by increasing
 the billing rates charged  annually  to  cover  both  retrospective  and
 prospective  benefit  increases. The annual contribution required of all
 participating employers in NYSLPFRS  is  0.4%  of  billable  salary,  or
 approximately  $3.4  million  to the State of New York and approximately
 $14 million to the local participating employers. This PERMANENT  ANNUAL
 COST  will vary in subsequent billing cycles with changes in the billing
 rate and salary of the affected members.
   We anticipate some administrative costs to implement the provisions of
 this legislation.
 A. 6636--A                          4
 
   Summary of relevant resources:
   Membership  data as of March 31, 2023 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2023 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2023  Report  of the Actuary and the 2023 Annual Comprehensive Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2023
 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, 2023
 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 March 8, 2024, and intended for use  only  during
 the  2024  Legislative  Session, is Fiscal Note No. 2024-87, prepared by
 the Actuary for the New York State and Local Retirement System.

co-Sponsors

View additional co-sponsors

2023-A6636B (ACTIVE) - Details

See Senate Version of this Bill:: S6152
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§78-a & 378-a, R & SS L; amd §532-a, Ed L; amd §13-696, NYC Ad Cd
Versions Introduced in 2021-2022 Legislative Session:: A10273, S9389

2023-A6636B (ACTIVE) - Summary

2023-A6636B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6636--B
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 25, 2023
                                ___________
 
 Introduced  by  M.  of  A.  PHEFFER AMATO,  McDONALD,  COLTON, SILLITTI,
   BUTTENSCHON, LUNSFORD -- read once and referred to  the  Committee  on
   Governmental Employees -- recommitted to the Committee on Governmental
   Employees  in  accordance  with  Assembly  Rule 3, sec. 2 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee -- again reported from said  committee  with  amend-
   ments, ordered reprinted as amended and recommitted to said committee
 
 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]  OF  eighteen  thousand  dollars  of  the  annual
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER,  SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY REFER-
 ENCE TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR  BEGINNING
 ON  SEPTEMBER  FIRST,  TWO  THOUSAND  TWENTY-FOUR. THE ANNUAL PERCENTAGE
 INCREASE TO THE BASE AMOUNT SHALL EQUAL  FIFTY  PERCENT  OF  THE  ANNUAL
 INFLATION,  AS  DETERMINED FROM THE INCREASE IN THE CONSUMER PRICE INDEX
 IN  THE  ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR  TO  THE
 COST-OF-LIVING  ADJUSTMENT  EFFECTIVE  ON  THE  ENSUING SEPTEMBER FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE PERCENT AND SHALL NOT EXCEED THREE PERCENT  NOR  BE  LESS  THAN  ONE
 PERCENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03457-06-4
 A. 6636--B                          2

 
   § 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]  OF  eighteen  thousand  dollars  of  the  annual
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER,  SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY REFER-
 ENCE TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR  BEGINNING
 ON  SEPTEMBER  FIRST,  TWO  THOUSAND  TWENTY-FOUR. THE ANNUAL PERCENTAGE
 INCREASE TO THE BASE AMOUNT SHALL EQUAL  FIFTY  PERCENT  OF  THE  ANNUAL
 INFLATION,  AS  DETERMINED FROM THE INCREASE IN THE CONSUMER PRICE INDEX
 IN  THE  ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR  TO  THE
 COST-OF-LIVING  ADJUSTMENT  EFFECTIVE  ON  THE  ENSUING SEPTEMBER FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE PERCENT AND SHALL NOT EXCEED THREE PERCENT  NOR  BE  LESS  THAN  ONE
 PERCENT.
   §  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]  OF  eighteen  thousand  dollars of the annual
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER, SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY  REFER-
 ENCE  TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR BEGINNING
 ON SEPTEMBER FIRST, TWO  THOUSAND  TWENTY-FOUR.  THE  ANNUAL  PERCENTAGE
 INCREASE  TO  THE  BASE  AMOUNT  SHALL EQUAL FIFTY PERCENT OF THE ANNUAL
 INFLATION, AS DETERMINED FROM THE INCREASE IN THE CONSUMER  PRICE  INDEX
 IN   THE   ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR TO THE
 COST-OF-LIVING ADJUSTMENT  EFFECTIVE  ON  THE  ENSUING SEPTEMBER  FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE  PERCENT  AND  SHALL  NOT  EXCEED THREE PERCENT NOR BE LESS THAN ONE
 PERCENT.
   § 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] OF eighteen thousand dollars of the annual  fixed
 retirement allowance defined in subdivision b of this section, PROVIDED,
 HOWEVER,  SUCH BASE BENEFIT AMOUNT SHALL BE INCREASED ANNUALLY BY REFER-
 ENCE TO THE 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, FOR EACH APPLICABLE CALENDAR YEAR  BEGINNING
 ON  SEPTEMBER  FIRST,  TWO  THOUSAND  TWENTY-FOUR. THE ANNUAL PERCENTAGE
 INCREASE TO THE BASE AMOUNT SHALL EQUAL  FIFTY  PERCENT  OF  THE  ANNUAL
 INFLATION,  AS  DETERMINED FROM THE INCREASE IN THE CONSUMER PRICE INDEX
 IN  THE  ONE YEAR PERIOD ENDING ON THE MARCH THIRTY-FIRST PRIOR  TO  THE
 COST-OF-LIVING  ADJUSTMENT   EFFECTIVE  ON  THE ENSUING SEPTEMBER FIRST.
 SAID PERCENTAGE SHALL THEN BE ROUNDED UP TO THE NEXT HIGHER ONE-TENTH OF
 ONE PERCENT AND SHALL NOT EXCEED THREE PERCENT  NOR  BE  LESS  THAN  ONE
 PERCENT.
   §  5. 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.
 A. 6636--B                          3
 
   § 6.  This act shall take effect immediately.
   FISCAL NOTE.-- Pursuant to  Legislative Law, Section 50:
   This  bill  would  provide an increase in the defined benefit cost-of-
 living adjustment (COLA) for New York public retirement systems.  Start-
 ing with the payment in September 2024, the base benefit for computation
 of the annual COLA, currently $18,000, will be increased annually by 50%
 of the annual inflation rate not to exceed 3% or be less than 1%.
   The provisions of Section 25 of the Retirement and Social Security Law
 shall not apply.
   This proposal primarily benefits current and former members of Tiers 1
 -  5.  The  cost  of this benefit improvement will disproportionately be
 borne by current and future members of Tier 6.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System (NYSLERS), the increased costs would be shared by the
 State of New York and the local participating employers in the  NYSLERS.
 If  this  bill  were  enacted  during  the 2024 Legislative Session, the
 increase in the present value of benefits would be  approximately  $1.30
 billion.
 
          NYSLERS       Increase in present   Increase in required
                        value benefits        contributions
          Tiers 1 - 5   $1.03 billion         $634 million
          Tier 6        $0.27 billion         $663 million
          Total         $1.30 billion         $1.30 billion
 
   In  the NYSLERS, this benefit improvement will be funded by increasing
 the billing rates charged  annually  to  cover  both  retrospective  and
 prospective  benefit  increases. The annual contribution required of all
 participating employers in  NYSLERS  is  0.4%  of  billable  salary,  or
 approximately $51 million to the State of New York and approximately $76
 million to the local participating employers. This PERMANENT ANNUAL COST
 will  vary in subsequent billing cycles with changes in the billing rate
 and salary of the affected members.
   Insofar as this bill affects the New York State and Local  Police  and
 Fire  Retirement  System (NYSLPFRS), the increased costs would be shared
 by the State of New York and the local participating  employers  in  the
 NYSLPFRS. If this bill were enacted during the 2024 Legislative Session,
 the  increase  in  the  present value of benefits would be approximately
 $189 million.
 
          NYSLPFRS      Increase in present   Increase in required
                        value benefits        contributions
          Tiers 1 - 5   $150 million          $80 million
          Tier 6        $39 million           $109 million
          Total         $189 million          $189 million
 
   In the NYSLPFRS, this benefit improvement will be funded by increasing
 the billing rates charged  annually  to  cover  both  retrospective  and
 prospective  benefit  increases. The annual contribution required of all
 participating employers in NYSLPFRS  is  0.4%  of  billable  salary,  or
 approximately  $3.4  million  to the State of New York and approximately
 $14 million to the local participating employers. This PERMANENT  ANNUAL
 COST  will vary in subsequent billing cycles with changes in the billing
 rate and salary of the affected members.
   We anticipate some administrative costs to implement the provisions of
 this legislation.
 A. 6636--B                          4
 
   Summary of relevant resources:
   Membership  data as of March 31, 2023 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2023 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2023  Report  of the Actuary and the 2023 Annual Comprehensive Financial
 Report.
   The actuarial assumptions and methods used are described in  the  2023
 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, 2023
 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 March 8, 2024, and intended for use  only  during
 the  2024  Legislative  Session, is Fiscal Note No. 2024-87, prepared by
 the Actuary for the New York State and Local Retirement System.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation, as it relates to the New York City
 Retirement Systems and Pension Funds (NYCRS) would increase the Cost-of-
 Living Adjustment (COLA) base limit of $18,000 by 50% of CPI  each  year
 (limited to between 1% and 3%), starting on September 1, 2024.
 
          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
   by Fiscal Year for the first 25 years ($ in Millions)
   Year     NYCERS     TRS     BERS     POLICE     FIRE     TOTAL
   2025     363.1     215.7    18.2     207.6      55.3     859.9
   2026     42.9      34.4     3.9      11.7        4.5      97.4
   2027     43.8      34.8     4.0      11.7        4.6      98.9
   2028     44.6      35.3     4.1      11.8        4.7     100.5
   2029     45.5      35.8     4.2      11.8        4.8     102.1
   2030     46.5      36.3     4.3      11.9        4.9     103.9
   2031     47.4      36.8     4.4      12.0        5.0     105.6
   2032     48.4      37.3     4.5      12.1        5.2     107.5
   2033     49.4      37.8     4.6      12.2        5.3     109.3
   2034     50.5      38.4     4.7      12.4        5.4     111.4
   2035     51.6      38.9     4.8      12.5        5.5     113.3
   2036     52.7      39.5     2.4      12.7        5.6     112.9
   2037     27.1      40.1     2.5       6.4        3.3      79.4
   2038     28.3      40.7     2.6       6.7        3.4      81.7
   2039     29.5      19.4     2.8       7.0        3.6      62.3
   2040     30.9      20.0     2.9       7.3        3.8      64.9
   2041     32.3      20.7     3.0       7.7        4.0      67.7
   2042     33.7      21.5     3.2       8.0        4.2      70.6
   2043     35.2      22.2     3.3       8.4        4.4      73.5
   2044     36.8      23.0     3.5       8.9        4.6      76.8
   2045     38.5      23.8     3.7       9.3        4.8      80.1
   2046     40.2      24.6     3.8       9.7        5.0      83.3
   2047     42.0      25.5     4.0      10.2        5.2      86.9
   2048     43.8      26.4     4.2      10.7        5.4      90.5
   2049     45.7      27.3     4.4      11.2        5.7      94.3
 A. 6636--B                          5
 
   Employer  Contribution  impact  beyond  Fiscal Year 2049 is not shown.
 Projected contributions include future new hires that may be impacted.
   The  initial  increase  in employer contributions of $859.9 million is
 estimated to be $700.3 million for New York City and $159.6 million  for
 the other obligors of NYCRS.
 
           INITIAL INCREASE (DECREASE) IN ACTUARIAL LIABILITIES
                  as of June 30, 2023 ($ in Millions)
   Present Value (PV)              NYCERS    TRS    BERS   POLICE    FIRE
   PV of Benefits:                  648.1   487.9   44.9    272.4    86.8
   PV of Employee Contributions:      0.0     0.0    0.0      0.0     0.0
   PV of Employer Contributions:    648.1   487.9   44.9    272.4    86.8
   Unfunded Accrued Liabilities:    495.7   350.2   31.2    226.8    65.1
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                          NYCERS    TRS       BERS    POLICE    FIRE
 Number of Payments:      12        14        11      12        12
 Fiscal Year of
 Last Payment:            2036      2038      2035    2036      2036
 Amortization
 Payment:                 26.8 M    22.0 M    2.5 M   6.5 M     2.5 M
 Additional One-time
 Payment:                 321.1 M   181.7 M   14.4 M  196.0 M   50.9 M
 
   Unfunded  Accrued  Liability  (UAL)  increases for active members were
 amortized over the expected remaining working lifetime of those impacted
 by the benefit changes using level dollar payments. UAL attributable  to
 terminated  vested  members  and  current retirees was recognized in the
 first year.
   CENSUS DATA: The estimates presented herein are based  on  preliminary
 census  data  collected  as  of  June  30, 2023. The census data for the
 impacted population is summarized below.
 
                          NYCERS    TRS       BERS      POLICE    FIRE
 
 Active Members
 - Number Count:          180,354   124,368   24,613    33,800    10,720
 - Average Age:           47.8      44.4      51.4      37.6      40.8
 - Average Service:       11.8      12.3      9.7       11.3      13.9
 - Average Salary:        88,800    98,500    59,700    128,600   139,500
 Term. Vested Members
 - Number Count:          29,272    21,830    2,887     1,493     59
 - Average Age:           51.7      47.0      52.0      38.2      43.9
 Receiving Members
 - Number Count:          170,396   93,759    21,218    54,321    16,871
 - Average Age:           71.8      74.8      74.0      63.2      67.6
 
   IMPACT ON MEMBER BENEFITS:  Currently  the  COLA  provides  an  annual
 increase  equal  to a percentage of the maximum annual retirement allow-
 ance, but limited to the first $18,000 of retirement allowance.
   The costs in the tables above are based on providing for  an  increase
 in  the $18,000 limit starting on September 1, 2024 and each year there-
 A. 6636--B                          6
 
 after.  This increase would be equal to the  increase  in  the  consumer
 price  index  (CPI) in the one-year period ending on the prior March 31,
 rounded to the next higher one-tenth of one percent, but not  more  than
 3% nor less than 1%.
   IMPORTANT  NOTE:  An  alternate  interpretation of the proposed legis-
 lation could use the increasing $18,000 as the base for all retirees for
 calculating COLA rather than as the limit of  the  retirement  allowance
 subject  to  the COLA increase. To the extent that implementation of the
 proposed legislation follows this alternate  interpretation,  the  costs
 for  this  proposed  legislation  may  be as much as 75% higher than the
 costs disclosed above (i.e., a $2.7 billion total initial increase in PV
 of Benefits).
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems. In addition:
   * New entrants were assumed to replace exiting members so  that  total
 payroll increases by 3% each year for impacted groups. New entrant demo-
 graphics were developed based on data for recent new hires and actuarial
 judgement.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the actuarial assumptions, methods,  and  models  used,  demo-
 graphics  of  the  impacted population and other factors such as invest-
 ment, contribution, and other risks. If actual experience deviates  from
 actuarial   assumptions,  the  actual  costs  could  differ  from  those
 presented herein. Quantifying these risks is beyond the  scope  of  this
 Fiscal Note.
   This  Fiscal  Note  is intended to measure pension-related impacts and
 does not include other potential costs (e.g., administrative  and  Other
 Postemployment Benefits).
   STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
 sky  are members of the Society of Actuaries and the American Academy of
 Actuaries. We are members of NYCERS but do not believe  it  impairs  our
 objectivity  and  we  meet  the  Qualification Standards of the American
 Academy of Actuaries to render the actuarial opinion  contained  herein.
 To  the  best  of  our knowledge, the results contained herein have been
 prepared in accordance with generally accepted actuarial principles  and
 procedures  and  with  the Actuarial Standards of Practice issued by the
 Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2024-40  dated  April  3,
 2024  was prepared by the Chief Actuary for the New York City Retirement
 Systems and Pension Funds. This estimate is intended for use only during
 the 2024 Legislative Session.

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Assembly Bill A6636B

Sponsored By

Current Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

2023-A6636 - Details

2023-A6636 - Summary

2023-A6636 - Bill Text download pdf

co-Sponsors

2023-A6636A - Details

2023-A6636A - Summary

2023-A6636A - Bill Text download pdf

co-Sponsors

2023-A6636B (ACTIVE) - Details

2023-A6636B (ACTIVE) - Summary

2023-A6636B (ACTIVE) - Bill Text download pdf

Comments

Assembly Bill A6636B

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Sponsored By

PHEFFER AMATO

Current Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

John T. McDonald III

William Colton

Gina Sillitti

Marianne Buttenschon

2023-A6636 - Details

2023-A6636 - Summary

2023-A6636 - Bill Text download pdf

co-Sponsors

John T. McDonald III

William Colton

Gina Sillitti

Marianne Buttenschon

2023-A6636A - Details

2023-A6636A - Summary

2023-A6636A - Bill Text download pdf

co-Sponsors

John T. McDonald III

William Colton

Gina Sillitti

Marianne Buttenschon

2023-A6636B (ACTIVE) - Details

2023-A6636B (ACTIVE) - Summary

2023-A6636B (ACTIVE) - Bill Text download pdf

Comments