S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6956
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 27, 2025
                                ___________
 
 Introduced  by Sens. C. RYAN, ADDABBO, BORRELLO, COMRIE, COONEY, FERNAN-
   DEZ, HARCKHAM, HINCHEY, LANZA, MATTERA, MAYER, ORTT, PALUMBO, ROLISON,
   SKOUFIS, WEBER -- 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, in relation to
   increasing the earning limitations for retired persons in positions of
   public service
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  212 of the retirement and social security law is
 amended by adding a new subdivision 2-a to read as follows:
   2-A.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  TWO  OF  THIS
 SECTION,  THE  EARNINGS  LIMITATION FOR RETIRED PERSONS IN A POSITION OF
 PUBLIC SERVICE SHALL BE INCREASED TO FIFTY  THOUSAND  DOLLARS  FROM  THE
 YEAR TWO THOUSAND TWENTY-FIVE AND THEREAFTER.
   § 2. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   This  bill  would  allow  a retired person from the New York State and
 Local Retirement System who returns to public employment with an  annual
 salary  of  $50,000 or less to continue to receive their full retirement
 benefit.  Currently, the salary limit is $35,000.
   Insofar as this bill affects the New York State and  Local  Employees'
 Retirement  System  (NYSLERS), if this bill were enacted during the 2025
 Legislative Session, the direct cost incurred  would  be  the  retiree's
 pension  benefit paid while post-retirement earnings are between $35,000
 and $50,000 each calendar year. The pension benefit expected to be  paid
 by  NYSLERS  during  that 2.5-month period is estimated to be $9,000 per
 person.
   In addition to the direct cost quoted above, there would be additional
 costs in the form of lost employer  contributions  due  to  non-billable
 post-retirement earnings, which are estimated to be $2,250 per person.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03695-02-5
              

 S. 6956                             2
 
   In  NYSLERS, pursuant to Section 25 of the Retirement and Social Secu-
 rity Law, the increased costs would be borne entirely by  the  State  of
 New  York  and would require an itemized appropriation sufficient to pay
 the cost of the provision. For each retiree  rehired  pursuant  to  this
 proposal, an annual cost of $11,250 is expected.
   Insofar  as  this bill affects the New York State and Local Police and
 Fire Retirement System (NYSLPFRS), if this bill were enacted during  the
 2025  Legislative  Session,  the  direct  cost  incurred  would  be  the
 retiree's  pension  benefit  paid  while  post-retirement  earnings  are
 between  $35,000  and  $50,000  each  calendar year. The pension benefit
 expected to be paid by NYSLPFRS during that 1-month period is  estimated
 to be $7,500 per person.
   In addition to the direct cost quoted above, there would be additional
 costs  in  the  form  of lost employer contributions due to non-billable
 post-retirement earnings, which are estimated to be $4,500 per person.
   All costs will be shared by the State of New York and all  participat-
 ing  employers  in  NYSLPFRS  and spread over future billing cycles. For
 each retiree rehired pursuant  to  this  proposal,  an  annual  cost  of
 $12,000 is expected.
   In addition to the direct costs quoted above, insofar as this proposal
 disrupts  the usual pattern and timing of employee turnover (that is, if
 members retire earlier than assumed and participating employers  hire  a
 retiree  instead  of  a  new billable member), shifts in member behavior
 could generate losses that increase the average billing rate in  20-year
 and 25-year service-based plans from 33.7% to 43.3%. In age-based plans,
 average  billing  rates  could  increase from 16.5% to 19.9%. The actual
 increase in billing rates will depend upon member and employer  utiliza-
 tion, with the rates above representing an upper maximum.
   Because  this  proposal  exclusively  benefits retirees, the increased
 costs are primarily attributable to retirees from  Tiers  1-4.  Approxi-
 mately  half  the  contributions  required to fund this proposal will be
 collected on salary reported for current members of Tier 6.
   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 March 12, 2025, and intended for use only  during
 the 2025 Legislative Session, is Fiscal Note No. 2025-71. As Chief Actu-
 ary of the New York State and Local Retirement System, I, Aaron Schottin
 Young,  hereby certify that this analysis complies with applicable Actu-
 arial Standards of Practice as well as the Code of Professional  Conduct
 and Qualification Standards for Actuaries Issuing Statements of Actuari-
 al Opinion of the American Academy of Actuaries, of which I am a member.