NY State Senate Bill 2025-S3414

Current Bill Status - In Senate Committee Civil Service And Pensions 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
Jan 27, 2025	referred to civil service and pensions

co-Sponsors

2025-S3414 (ACTIVE) - Details

Current Committee:: Senate Civil Service And Pensions
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 Other Legislative Sessions:: 2021-2022: S6060
2023-2024: S6252

2025-S3414 (ACTIVE) - Summary

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

2025-S3414 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3414

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the retirement and social security law, the education
law and the administrative code of the city of New York, in relation to
providing cost-of-living adjustments

 
PURPOSE:

To protect public retirees from continued erosion of their retirement
income due to inflation.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision f of Section 78-A of the Retirement and
Social Security Law to establish higher cost-of-living (COLA) adjust-
ments equal to the percentage change in CPI on a monthly basis for reti-
rees who retired up until 1972. The COLA adjustment for retirees who
retired on or after 1973 are based on the same percentage change in CPI
as in existing law (50%). These adjustments shall be paid to eligible

retirees starting September 1, 2025.

Section 2 amends subdivision f of Section 387-A of the Retirement and
Social Security Law to establish higher COLA benefit adjustments equal
to the percentage change in CPI on a monthly basis for retirees who
retired up until 1972. The COLA adjustment for retirees who retired on
or after 1973 are based on the same percentage change in CPI as in
existing law (50%). These adjustments shall be paid to eligible retirees
starting September 1, 2025.

Section 3 amends subdivision f of Section 532-A of the Education Law to
establish higher COLA benefit adjustments equal to the percentage change
in CPI on a monthly basis for retirees who retired up until 1972. The
COLA adjustment for retirees who retired on or after 1973 are based on
the same percentage change in. CPI as in existing law (50%). These
adjustments shall be paid to eligible retirees starting September 1,
2025.

Section 4 amends subdivision f of Section 13-696 of the Administrative
Code of the City of New York to establish higher COLA benefit adjust-
ments equal to the percentage change in CPI on a monthly basis for reti-
rees who retired up until 1972. The COLA adjustment for retirees who
retired on or after 1973 are based on the same percentage change in CPI
as in existing law (50%). These adjustments shall be paid to eligible
retirees starting September 1, 2025.

Section 5 is the effective date:

 
JUSTIFICATION:

Significant strides were made by the enactment of Chapter 125 of the
Laws of 2000 which instituted cost-of-living increases for public reti-
rees. While the CPI has remained very modest since the enactment of
COLA, other costs have had a significant impact on retiree security. For
example, medical costs including copayments, premiums, and medication,
have been rising at a rate far in excess of the CPI.  Recent federal
amendments to the Medicare law, especially the prescription drug cover-
age, are likely to cause a significant increase in retired public
employee health care costs. This adjustment to COLA benefits will
provide needed but modest protection for retirees in the event the CPI
increases at a dramatic rate.

This bill will help assure public retirees achieve a dignified and
secure retirement, allowing them to continue to contribute more effec-
tively to the long-term health of our economy.

 
LEGISLATIVE HISTORY:

2023-2024: S6252-A - REPORTED AND COMMITTED TO FINANCE/ A.6638-A - amend
and recommit to governmental employees

2021-2022: S.6060-C - Amend and Recommit to Civil Service and
Pensions/A.9994 Referred to Governmental Employees

2017-2018: S.6047-C - Committed to Rules

2015-2016: S.4342 - Referred to Civil Service and Pensions

2013-2014: S.6787 - Referred to Civil Service and Pensions

 
FISCAL IMLICATIONS:

See fiscal note.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S3414 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3414
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2025
                                ___________
 
 Introduced by Sens. JACKSON, ADDABBO, HARCKHAM -- read twice and ordered
   printed,  and  when  printed to be committed to the Committee on Civil
   Service and Pensions
 
 AN ACT to amend the retirement and social security  law,  the  education
   law  and  the administrative code of the city of New York, in relation
   to providing cost-of-living adjustments

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision f of section 78-a of the retirement and social
 security law, as added by chapter 125 of the laws of 2000, is amended to
 read as follows:
   f. Commencing September first, two thousand, all retired  members  who
 have  retired  prior  to the calendar year nineteen hundred ninety-seven
 and who meet the eligibility criteria set forth in subdivision a of this
 section shall be paid an adjusted benefit in monthly installments on the
 basis provided for in this subdivision. Said adjusted benefit  shall  be
 equal  to  a percentage of the change in consumer price index (all urban
 consumers, CPI-U, U.S. city average, all items, 1982-84=100),  published
 by  the United States bureau of labor statistics, measured from the year
 of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
 according to the following schedule:
 
       Year of retirement                     Percentage
       1968 through 1996                      50%
       1966 and 1967                          55%
       1965                                   60%
       1964                                   65%
       1963                                   70%
       1962                                   80%
       1961                                   90%
       prior to 1961                          100%
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06255-02-5

 S. 3414                             2

 Said  adjusted benefit shall be computed on a base benefit amount not to
 exceed eighteen thousand dollars of the retirement  allowance  otherwise
 payable,  computed  without  optional modification. Any benefit received
 pursuant to this subdivision shall be in lieu of  any  benefit  received
 pursuant to section seventy-eight of this title.
   COMMENCING  SEPTEMBER  FIRST,  TWO  THOUSAND  TWENTY-FIVE, ALL RETIRED
 MEMBERS WHO HAVE RETIRED PRIOR TO THE  CALENDAR  YEAR  NINETEEN  HUNDRED
 NINETY-SEVEN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVI-
 SION  A  OF  THIS  SECTION  SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY
 INSTALLMENTS ON  THE  BASIS  PROVIDED  FOR  IN  THIS  SUBDIVISION.  SAID
 ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN CONSUM-
 ER  PRICE  INDEX  (ALL  URBAN  CONSUMERS,  CPI-U, U.S. CITY AVERAGE, ALL
 ITEMS, 1982-84=100), PUBLISHED BY THE  UNITED  STATES  BUREAU  OF  LABOR
 STATISTICS,  MEASURED  FROM THE YEAR OF RETIREMENT THROUGH CALENDAR YEAR
 NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
 
       YEAR OF RETIREMENT                     PERCENTAGE
       1973 THROUGH 1996                      50%
       1971 AND 1972                          55%
       1970                                   60%
       1969                                   65%
       1968                                   70%
       1967                                   80%
       1966                                   90%
       PRIOR TO 1966                          100%
 SAID ADJUSTED BENEFIT COMMENCING SEPTEMBER FIRST, TWO  THOUSAND  TWENTY-
 FIVE,  SHALL  BE  COMPUTED  ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT
 ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET
 FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT  TO  THIS  SUBDIVISION
 SHALL  BE  IN  LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION SEVENTY-
 EIGHT OF THIS TITLE.
   § 2. Subdivision f of section 378-a of the retirement and social secu-
 rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
 read as follows:
   f.  Commencing  September first, two thousand, all retired members who
 have retired prior to the calendar year  nineteen  hundred  ninety-seven
 and who meet the eligibility criteria set forth in subdivision a of this
 section shall be paid an adjusted benefit in monthly installments on the
 basis  provided  for in this subdivision. Said adjusted benefit shall be
 equal to a percentage of the change in consumer price index  (all  urban
 consumers,  CPI-U, U.S. city average, all items, 1982-84=100), published
 by the United States bureau of labor statistics, measured from the  year
 of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
 according to the following schedule:
 
       Year of retirement                     Percentage
       1968 through 1996                      50%
       1966 and 1967                          55%
       1965                                   60%
       1964                                   65%
       1963                                   70%
       1962                                   80%
       1961                                   90%
       prior to 1961                          100%
 Said adjusted benefit shall be computed on a base benefit amount not  to
 exceed  eighteen  thousand dollars of the retirement allowance otherwise
 S. 3414                             3
 
 payable, computed without optional modification.  Any  benefit  received
 pursuant  to  this  subdivision shall be in lieu of any benefit received
 pursuant to section three hundred seventy-eight of this title.
   COMMENCING  SEPTEMBER  FIRST,  TWO  THOUSAND  TWENTY-FIVE, ALL RETIRED
 MEMBERS WHO HAVE RETIRED PRIOR TO THE  CALENDAR  YEAR  NINETEEN  HUNDRED
 NINETY-SEVEN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVI-
 SION  A  OF  THIS  SECTION  SHALL BE PAID AN ADJUSTED BENEFIT IN MONTHLY
 INSTALLMENTS ON  THE  BASIS  PROVIDED  FOR  IN  THIS  SUBDIVISION.  SAID
 ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN CONSUM-
 ER  PRICE  INDEX  (ALL  URBAN  CONSUMERS,  CPI-U, U.S. CITY AVERAGE, ALL
 ITEMS, 1982-84=100), PUBLISHED BY THE  UNITED  STATES  BUREAU  OF  LABOR
 STATISTICS,  MEASURED  FROM THE YEAR OF RETIREMENT THROUGH CALENDAR YEAR
 NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
       YEAR OF RETIREMENT                     PERCENTAGE
       1973 THROUGH 1996                          50%
       1971 AND 1972                              55%
       1970                                       60%
       1969                                       65%
       1968                                       70%
       1967                                       80%
       1966                                       90%
       PRIOR TO 1966                             100%
 
 SAID ADJUSTED BENEFIT COMMENCING SEPTEMBER FIRST, TWO  THOUSAND  TWENTY-
 FIVE,  SHALL  BE  COMPUTED  ON THE BASE BENEFIT AMOUNT OF THE RETIREMENT
 ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET
 FORTH HEREIN ABOVE. ANY BENEFIT RECEIVED PURSUANT  TO  THIS  SUBDIVISION
 SHALL  BE  IN  LIEU  OF  ANY  BENEFIT RECEIVED PURSUANT TO SECTION THREE
 HUNDRED SEVENTY-EIGHT OF THIS TITLE.
   § 3. Subdivision f of section 532-a of the education law, as added  by
 chapter 125 of the laws of 2000, is amended to read as follows:
   f.  Commencing  September first, two thousand, all retired members who
 have retired prior to the calendar year  nineteen  hundred  ninety-seven
 and who meet the eligibility criteria set forth in subdivision a of this
 section shall be paid an adjusted benefit in monthly installments on the
 basis  provided  for in this subdivision. Said adjusted benefit shall be
 equal to a percentage of the change in consumer price index  (all  urban
 consumers,  CPI-U, U.S. city average, all items, 1982-84=100), published
 by the United States bureau of labor statistics, measured from the  year
 of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
 according to the following schedule:
       Year of retirement                     Percentage
       1968 through 1996                      50%
       1966 and 1967                          55%
       1965                                   60%
       1964                                   65%
       1963                                   70%
       1962                                   80%
       1961                                   90%
       prior to 1961                          100%
 Said adjusted benefit shall be computed on a base benefit amount not  to
 exceed  eighteen  thousand dollars of the retirement allowance otherwise
 payable, computed without optional modification  excluding  any  annuity
 derived  from voluntary contributions made by members, except those made
 pursuant to elections under subdivision  one  of  section  five  hundred
 eleven-a  or  paragraph  c  of subdivision three of section five hundred
 S. 3414                             4
 
 sixteen of this article. Any benefits received pursuant to this subdivi-
 sion shall be in lieu of any benefits received pursuant to section  five
 hundred  thirty-two  of this article, unless such benefits are in excess
 of  those provided by this section, in which case such benefits shall be
 paid by the retirement system pursuant to such provision.
   COMMENCING SEPTEMBER FIRST,  TWO  THOUSAND  TWENTY-FIVE,  ALL  RETIRED
 MEMBERS  WHO  HAVE  RETIRED  PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED
 NINETY-SEVEN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVI-
 SION A OF THIS SECTION SHALL BE PAID  AN  ADJUSTED  BENEFIT  IN  MONTHLY
 INSTALLMENTS  ON  THE  BASIS  PROVIDED  FOR  IN  THIS  SUBDIVISION. SAID
 ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN CONSUM-
 ER PRICE INDEX (ALL URBAN  CONSUMERS,  CPI-U,  U.S.  CITY  AVERAGE,  ALL
 ITEMS,  1982-84=100),  PUBLISHED  BY  THE  UNITED STATES BUREAU OF LABOR
 STATISTICS, MEASURED FROM THE YEAR OF RETIREMENT THROUGH  CALENDAR  YEAR
 NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
       YEAR OF RETIREMENT                     PERCENTAGE
       1973 THROUGH 1996                          50%
       1971 AND 1972                              55%
       1970                                       60%
       1969                                       65%
       1968                                       70%
       1967                                       80%
       1966                                       90%
       PRIOR TO 1966                             100%
 
 SAID  ADJUSTED BENEFIT, COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-
 FIVE, SHALL BE COMPUTED ON A BASE BENEFIT AMOUNT NOT TO EXCEED  EIGHTEEN
 THOUSAND DOLLARS OF THE RETIREMENT ALLOWANCE OTHERWISE PAYABLE, COMPUTED
 WITHOUT  OPTIONAL  MODIFICATION,  SET  FORTH  HEREIN  ABOVE. ANY BENEFIT
 RECEIVED PURSUANT TO THIS SUBDIVISION SHALL BE IN LIEU  OF  ANY  BENEFIT
 RECEIVED  PURSUANT  TO  SECTION FIVE HUNDRED THIRTY-TWO OF THIS ARTICLE,
 UNLESS SUCH BENEFITS ARE IN EXCESS OF THOSE PROVIDED BY THIS SECTION, IN
 WHICH CASE SUCH BENEFITS SHALL BE PAID BY THE RETIREMENT SYSTEM PURSUANT
 TO SUCH PROVISION.
   § 4. Subdivision f of section 13-696 of the administrative code of the
 city of New York, as added by chapter  125  of  the  laws  of  2000,  is
 amended to read as follows:
   f.  Commencing  September first, two thousand, all retired members who
 have retired prior to the calendar year  nineteen  hundred  ninety-seven
 and who meet the eligibility criteria set forth in subdivision a of this
 section shall be paid an adjusted benefit in monthly installments on the
 basis  provided  for in this subdivision. Said adjusted benefit shall be
 equal to a percentage of the change in consumer price index  (all  urban
 consumers,  CPI-U, U.S. city average, all items, 1982-84=100), published
 by the United States bureau of labor statistics, measured from the  year
 of  retirement  through  calendar  year  nineteen  hundred  ninety-seven
 according to the following schedule:
       Year of retirement                     Percentage
       1968 through 1996                      50%
       1966 and 1967                          55%
       1965                                   60%
       1964                                   65%
       1963                                   70%
       1962                                   80%
       1961                                   90%
       prior to 1961                          100%
 S. 3414                             5
 
 Said adjusted benefit shall be computed on a base benefit amount not  to
 exceed  eighteen  thousand dollars of the annual fixed retirement allow-
 ance otherwise payable,  computed  without  optional  modification.  Any
 benefit  received  pursuant  to this subdivision shall be in lieu of any
 benefit received pursuant to chapter three hundred ninety of the laws of
 nineteen  hundred  ninety-eight,  and  any  preceding  provision  of law
 providing for supplementation.
   COMMENCING SEPTEMBER FIRST,  TWO  THOUSAND  TWENTY-FIVE,  ALL  RETIRED
 MEMBERS  WHO  HAVE  RETIRED  PRIOR TO THE CALENDAR YEAR NINETEEN HUNDRED
 NINETY-SEVEN AND WHO MEET THE ELIGIBILITY CRITERIA SET FORTH IN SUBDIVI-
 SION A OF THIS SECTION SHALL BE PAID  AN  ADJUSTED  BENEFIT  IN  MONTHLY
 INSTALLMENTS  ON  THE  BASIS  PROVIDED  FOR  IN  THIS  SUBDIVISION. SAID
 ADJUSTED BENEFIT SHALL BE EQUAL TO A PERCENTAGE OF THE CHANGE IN CONSUM-
 ER PRICE INDEX (ALL URBAN  CONSUMERS,  CPI-U,  U.S.  CITY  AVERAGE,  ALL
 ITEMS,  1982-84=100),  PUBLISHED  BY  THE  UNITED STATES BUREAU OF LABOR
 STATISTICS, MEASURED FROM THE YEAR OF RETIREMENT THROUGH  CALENDAR  YEAR
 NINETEEN HUNDRED NINETY-SEVEN ACCORDING TO THE FOLLOWING SCHEDULE:
       YEAR OF RETIREMENT                     PERCENTAGE
       1973 THROUGH 1996                      50%
       1971 AND 1972                          55%
       1970                                   60%
       1969                                   65%
       1968                                   70%
       1967                                   80%
       1966                                   90%
       PRIOR TO 1966                          100%
 SAID  ADJUSTED BENEFIT, COMMENCING SEPTEMBER FIRST, TWO THOUSAND TWENTY-
 FIVE, SHALL BE COMPUTED ON THE BASE BENEFIT  AMOUNT  OF  THE  RETIREMENT
 ALLOWANCE OTHERWISE PAYABLE, COMPUTED WITHOUT OPTIONAL MODIFICATION, SET
 FORTH  HEREIN  ABOVE.  ANY BENEFIT RECEIVED PURSUANT TO THIS SUBDIVISION
 SHALL BE IN LIEU OF ANY BENEFIT RECEIVED PURSUANT TO SECTION  13-695  OF
 THIS ARTICLE.
   § 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 New York public retirement systems.  Start-
 ing  with  a payment in September 2025, additional payments will be made
 for those members who retired after 1960 and prior to 1973.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System  (NYSLERS),  pursuant to Section 25 of the Retirement
 and Social Security Law, the increased costs would be borne entirely  by
 the State of New York and would require an itemized appropriation suffi-
 cient to pay the cost of the provision. If this bill were enacted during
 the 2025 Legislative Session, the increase in the present value of bene-
 fits  would  be approximately $68,600. To fund these costs, the State of
 New York will be required to pay  $76,600  (including  interest)  as  of
 March 1, 2026.
   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
 NYSLPFRS. If this bill were enacted during the 2025 Legislative Session,
 the increase in the present value of  benefits  would  be  approximately
 $188,000.
 
 NYSLPFRS                    Increase in present   Increase in required
 S. 3414                             6
 
                             value of benefits     contributions
 Pensioners                  $ 188,000             $ 0.0
 Actives Tiers 1-5 (Closed)  $0.0                  $ 77,000
 Actives Tier 6 (Open)       $ 0.0                 $ 111,000
 Total                       $ 188,000             $ 188,000
 
   In NYSLPFRS, this benefit improvement will be funded by increasing the
 billing  rates charged annually to cover both retrospective and prospec-
 tive benefit increases. The annual contribution required of all  partic-
 ipating employers in NYSLPFRS would be approximately $3,500 to the State
 of New York and approximately $15,000 to the local participating employ-
 ers.  This  permanent annual cost will vary in subsequent billing cycles
 with changes in the billing rate and salary of the affected members.
   These estimated costs are based on 32 retirees  and  beneficiaries  in
 NYSLERS and 31 in NYSLPFRS as of March 31, 2024.
   Summary of relevant resources:
   Membership  data as of March 31, 2024 was used in measuring the impact
 of the proposed change, the same data used in the April 1, 2024 actuari-
 al valuation. Distributions and other statistics can  be  found  in  the
 2024  Report  of the Actuary and the 2024 Annual Comprehensive Financial
 Report.  The actuarial assumptions and methods used are described in the
 2024 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, 2024 New York State and Local Retirement System Financial Statements
 and Supplementary Information.
   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  23,  2025,  and intended for use only
 during the 2025 Legislative Session, is  Fiscal  Note  No.  2025-40.  As
 Chief  Actuary  of  the  New  York State and Local Retirement System, I,
 Aaron Schottin Young, hereby certify that this  analysis  complies  with
 applicable  Actuarial  Standards  of  Practice  as  well  as the Code of
 Professional Conduct and Qualification Standards for  Actuaries  Issuing
 Statements of Actuarial Opinion of the American Academy of Actuaries, of
 which I am a member.

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Senate Bill S3414

Sponsored By

Current Bill Status - In Senate Committee Civil Service And Pensions Committee

co-Sponsors

2025-S3414 (ACTIVE) - Details

2025-S3414 (ACTIVE) - Summary

2025-S3414 (ACTIVE) - Sponsor Memo

2025-S3414 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3414

Share this bill

Sponsored By

Robert Jackson

Current Bill Status - In Senate Committee Civil Service And Pensions Committee

co-Sponsors

Joseph P. Addabbo Jr.

Pete Harckham

2025-S3414 (ACTIVE) - Details

2025-S3414 (ACTIVE) - Summary

2025-S3414 (ACTIVE) - Sponsor Memo

2025-S3414 (ACTIVE) - Bill Text download pdf

Comments