NY State Assembly Bill 2023-A7023A

Assembly Bill A7023A

2023-2024 Legislative Session

Relates to increasing the base benefit amount for computation of pension cost-of-living adjustments

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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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 04, 2024	print number 7023a
Mar 04, 2024	amend and recommit to governmental employees
Jan 03, 2024	referred to governmental employees
May 10, 2023	referred to governmental employees

Bill Amendments

Original

A (Active)

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2023-A7023 - Details

See Senate Version of this Bill:: S6307
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
Versions Introduced in 2021-2022 Legislative Session:: S6835

2023-A7023 - Summary

Increases the base benefit amount for computation of pension cost-of-living adjustments.

2023-A7023 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7023
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 10, 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 and the education
   law, in relation to increasing the base benefit amount for computation
   of pension cost-of-living adjustments

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivisions c and d of section 78-a of the retirement and
 social security law, as added by chapter 125 of the laws  of  2000,  are
 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, EXCEPT THAT EFFEC-
 TIVE ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-FOUR, THE  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.
   d.  The  percentage  referred  to  in this section shall be determined
 annually by reference 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. Said percentage 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, EXCEPT
 THAT, COMMENCING THE FIRST DAY OF SEPTEMBER, TWO  THOUSAND  TWENTY-FOUR,
 THE  COST-OF-LIVING ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF SEPTEMBER,
 TWO THOUSAND TWO AND THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-TWO
 SHALL EQUAL ONE HUNDRED PERCENT OF THE ANNUAL INFLATION,  AS  DETERMINED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09889-02-3

 A. 7023                             2
 
 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. Subdivisions c and d of  section  378-a  of  the  retirement  and
 social  security  law,  as added by chapter 125 of the laws of 2000, are
 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, EXCEPT THAT,  EFFEC-
 TIVE  ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-FOUR, THE 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.
   d. The percentage referred to in  this  section  shall  be  determined
 annually  by reference 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. Said percentage 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,  EXCEPT
 THAT,  COMMENCING  THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-FOUR,
 THE COST-OF-LIVING ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF  SEPTEMBER,
 TWO THOUSAND TWO AND THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-TWO
 SHALL  EQUAL  ONE HUNDRED 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. Subdivisions c and d of section 532-a of the  education  law,  as
 added  by  chapter  125  of  the  laws  of  2000, are 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, EXCEPT  THAT  EFFEC-
 TIVE  ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-FOUR, THE 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.
   d. The percentage referred to in  this  section  shall  be  determined
 annually  by reference 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. Said percentage 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,  EXCEPT
 THAT,  COMMENCING  THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-FOUR,
 THE COST-OF-LIVING ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF  SEPTEMBER,
 A. 7023                             3
 
 TWO THOUSAND TWO AND THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-TWO
 SHALL  EQUAL  ONE HUNDRED 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. 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.
   § 5. 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  the New York State and Local Retirement
 System and the New York State Teachers'  Retirement  System.    Starting
 with  a payment in September 2024, the annual COLA will be computed on a
 base benefit amount  not  to  exceed  $21,000.  Additionally,  the  COLA
 payments  made from 2002 to 2022 will be recomputed based on one hundred
 percent of the annual inflation. Currently, the calculation uses a  base
 benefit  not  to  exceed  $18,000  and  annual  increases based on fifty
 percent of the annual inflation.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement System (NYSLERS), the increased costs would be borne entirely
 by  the  State  of New York and the local participating employers in the
 NYSLERS. If this bill were enacted during the 2023 legislative  session,
 the  increase  in  the  present value of benefits would be approximately
 $14.2 billion.
      NYSLERS        Increase in present      Increase in future
                     value benefits            contributions
      Tiers 1 - 5     $14.1 billion            $8.4 billion
      Tier 6          $0.1 billion             $5.8 billion
      Total           $14.2 billion            $14.2 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  the NYSLERS is 5.2% of billable salary, or
 approximately $639 million to the State of New  York  and  approximately
 $928  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), 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 2023 legislative session,
 the  increase  in  the  present value of benefits would be approximately
 $1.1 billion.
      NYSLPFRS       Increase in present      Increase in future
                     value benefits           contributions
      Tiers 1 - 5    $1.1 billion             $0.6 billion
      Tier 6         $0.02 billion            $0.5 billion
      Total          $1.1 billion             $1.1 billion
 
   In the NYSLPFRS, this benefit improvement will be funded by increasing
 the billing rates charged  annually  to  cover  both  retrospective  and
 A. 7023                             4
 
 prospective  benefit  increases. The annual contribution required of all
 participating employers in the NYSLPFRS is 2.6% of billable  salary,  or
 approximately $22 million to the State of New York and approximately $88
 million  to  the local participating employers in the fiscal year ending
 March 31, 2025. This PERMANENT ANNUAL COST will vary in subsequent bill-
 ing cycles with changes in the billing rate and salary of  the  affected
 members.
   Further,  we  anticipate significant administrative costs to implement
 the provisions of this legislation.
   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.
   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 April 11, 2023, and intended for use only during
 the 2023 Legislative Session, is Fiscal Note No. 2023-122,  prepared  by
 the Actuary for the New York State and Local Retirement System.

co-Sponsors

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2023-A7023A (ACTIVE) - Details

See Senate Version of this Bill:: S6307
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
Versions Introduced in 2021-2022 Legislative Session:: S6835

2023-A7023A (ACTIVE) - Summary

Increases the base benefit amount for computation of pension cost-of-living adjustments.

2023-A7023A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7023--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 10, 2023
                                ___________
 
 Introduced by M. of A. PHEFFER AMATO, KELLES, LEVENBERG, THIELE, GANDOL-
   FO, BURDICK -- 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  commit-
   tee
 
 AN ACT to amend the retirement and social security law and the education
   law, in relation to increasing the base benefit amount for computation
   of pension cost-of-living adjustments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions c and d of section 78-a of the retirement  and
 social  security  law,  as added by chapter 125 of the laws of 2000, are
 amended to read as follows:
   c. [Said] (I) IN CALENDAR YEARS TWO THOUSAND TWO THROUGH TWO  THOUSAND
 TWENTY-FOUR,  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.
   (II)  IN  CALENDAR  YEAR TWO THOUSAND TWENTY-FIVE AND THEREAFTER, 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, EXCEPT THAT EFFECTIVE  ON  THE
 FIRST  DAY  OF  SEPTEMBER,  TWO THOUSAND TWENTY-FIVE, THE 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.
   d. The percentage referred to in  this  section  shall  be  determined
 annually  by reference 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. Said percentage shall equal fifty percent of the annual inflation,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09889-07-4

 A. 7023--A                          2
 
 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] (I) IN
 CALENDAR  YEARS TWO THOUSAND TWO THROUGH TWO THOUSAND TWENTY-THREE, SAID
 PERCENTAGE SHALL EQUAL ONE HUNDRED 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 NEXT SUCCEEDING SEPTEMBER FIRST.
   (II) IN CALENDAR YEAR TWO THOUSAND TWENTY-FOUR  AND  THEREAFTER,  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,
 EXCEPT THAT, COMMENCING THE FIRST DAY OF SEPTEMBER, TWO  THOUSAND  TWEN-
 TY-FIVE,  THE  COST-OF-LIVING  ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF
 SEPTEMBER, TWO THOUSAND TWO AND THE FIRST DAY OF SEPTEMBER, TWO THOUSAND
 TWENTY-THREE SHALL EQUAL ONE HUNDRED 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. Subdivisions c and d of  section  378-a  of  the  retirement  and
 social  security  law,  as added by chapter 125 of the laws of 2000, are
 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, EXCEPT THAT,  EFFEC-
 TIVE  ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-FIVE, THE 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.
   d. The percentage referred to in  this  section  shall  be  determined
 annually  by reference 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. Said percentage 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,  EXCEPT
 THAT,  COMMENCING  THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-FIVE,
 THE COST-OF-LIVING ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF  SEPTEMBER,
 TWO THOUSAND TWO AND THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-TWO
 SHALL  EQUAL  ONE HUNDRED 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. Subdivisions c and d of section 532-a of the  education  law,  as
 added  by  chapter  125  of  the  laws  of  2000, are 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, EXCEPT  THAT  EFFEC-
 TIVE  ON THE FIRST DAY OF SEPTEMBER, TWO THOUSAND TWENTY-FIVE, THE COST-
 A. 7023--A                          3
 
 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.
   d.  The  percentage  referred  to  in this section shall be determined
 annually by reference 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. Said percentage 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, EXCEPT
 THAT, COMMENCING THE FIRST DAY OF SEPTEMBER, TWO  THOUSAND  TWENTY-FIVE,
 THE  COST-OF-LIVING ADJUSTMENTS PAID BETWEEN THE FIRST DAY OF SEPTEMBER,
 TWO THOUSAND TWO AND THE FIRST DAY OF SEPTEMBER,  TWO  THOUSAND  TWENTY-
 THREE SHALL EQUAL ONE HUNDRED PERCENT OF THE ANNUAL INFLATION, AS DETER-
 MINED  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. 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.
   § 5. This act shall take effect September 1, 2025; provided,  however,
 that  no  benefits payable prior to the first day of September two thou-
 sand twenty-five shall be affected by this act.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This bill would provide an increase in the  defined  benefit  cost-of-
 living  adjustment  (COLA)  for  the New York State and Local Retirement
 System.  Starting with payments in September 2025, the annual COLA  will
 be  computed  on a base benefit amount not to exceed $21,000. Currently,
 the base benefit amount does not exceed $18,000. Additionally, the  COLA
 increment  from  2002  to  2023  will be recomputed based on one hundred
 percent of annual inflation without retroactive  payments.  Future  COLA
 increments will be based on fifty percent of annual inflation.
   This proposal primarily benefits current and former members of Tiers 1
 -  5.  The  cost  of this benefit improvement will primarily 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  $5.43
 billion.
 
      NYSLERS        Increase in present      Increase in required
                       value benefits             contributions
      Tiers 1 - 5      $5.29 billion              $2.92 billion
      Tier 6           $0.14 billion              $2.51 billion
      Total            $5.43 billion              $5.43 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
 A. 7023--A                          4
 
 participating employers in  NYSLERS  is  1.9%  of  billable  salary,  or
 approximately  $240  million  to the State of New York and approximately
 $360 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 approxi-
 mately $626 million.
 
      NYSLPFRS       Increase in present      Increase in required
                       value benefits             contributions
      Tiers 1 - 5      $604 million               $299 million
      Tier 6           $22 million                $327 million
      Total            $626 million               $626 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  1.3%  of billable salary, or
 approximately $11 million to the State of New York and approximately $46
 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.
   Further,  we  anticipate significant administrative costs to implement
 the provisions of this legislation.
   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 1, 2024, and intended for use only during
 the 2024 Legislative Session, is Fiscal Note No.  2024-47,  prepared  by
 the Actuary for the New York State and Local Retirement System.

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Assembly Bill A7023A

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Sponsored By

PHEFFER AMATO

Current Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

Anna Kelles

Dana Levenberg

Fred Thiele

Jerett Gandolfo

2023-A7023 - Details

2023-A7023 - Summary

2023-A7023 - Bill Text download pdf

co-Sponsors

Anna Kelles

Dana Levenberg

Fred Thiele

Jerett Gandolfo

2023-A7023A (ACTIVE) - Details

2023-A7023A (ACTIVE) - Summary

2023-A7023A (ACTIVE) - Bill Text download pdf

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