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A10351 Summary:

BILL NOA10351
 
SAME ASSAME AS S06049-A
 
SPONSORAbbate
 
COSPNSRSepulveda, Dickens, Hevesi, Malliotakis, Arroyo
 
MLTSPNSR
 
Amd 78-a & 378-a, R & SS L; amd 532-a, Ed L; amd 13-696, NYC Ad Cd
 
Provides a cost-of-living adjustment for New York public retirement systems.
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A10351 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10351
 
                   IN ASSEMBLY
 
                                     April 16, 2018
                                       ___________
 
        Introduced by M. of A. ABBATE -- 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:
 
     1    Section 1. Subdivision a of section 78-a of the retirement and  social
     2  security law, as added by chapter 125 of the laws of 2000, is amended to
     3  read as follows:
     4    a. [A] Effective on the first day of September, two thousand eighteen,
     5  a  cost-of-living  adjustment shall be payable on the basis provided for
     6  in this section to: (i) all pensioners who have attained age [sixty-two]
     7  fifty-five and have been retired for five years;  (ii)  [all  pensioners
     8  who  have  attained  age fifty-five and have been retired for ten years;
     9  (iii)] all disability pensioners regardless of age who have been retired
    10  for five years; and [(iv)] (iii) all recipients of an  accidental  death
    11  benefit  regardless of age who have been receiving such benefit for five
    12  years.
    13    § 2. Subdivision a of section 378-a of the retirement and social secu-
    14  rity law, as added by chapter 125 of the laws of  2000,  is  amended  to
    15  read as follows:
    16    a. [A] Effective on the first day of September, two thousand eighteen,
    17  a  cost-of-living  adjustment shall be payable on the basis provided for
    18  in this section to: (i) all pensioners who have attained age [sixty-two]
    19  fifty-five and have been retired for five years; and (ii) [all  pension-
    20  ers  who  have  attained  age  fifty-five  and have been retired for ten
    21  years; and (iii)] all disability pensioners regardless of age  who  have
    22  been retired for five years.
    23    §  3. Subdivision a of section 532-a of the education law, as added by
    24  chapter 125 of the laws of 2000, is amended to read as follows:
    25    a. [A] Effective on the first day of September, two thousand eighteen,
    26  a cost-of-living adjustment shall be payable on the basis  provided  for
    27  in this section to: (i) all pensioners who have attained age [sixty-two]
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11287-04-8

        A. 10351                            2
 
     1  fifty-five  and  have  been retired for five years; (ii) [all pensioners
     2  who have attained age fifty-five and have been retired  for  ten  years;
     3  (iii)] all disability pensioners regardless of age who have been retired
     4  for  five  years; and [(iv)] (iii) all recipients of an accidental death
     5  benefit regardless of age who have been receiving such benefit for  five
     6  years.
     7    § 4. Subdivision a of section 13-696 of the administrative code of the
     8  city  of  New  York,  as  amended by chapter 288 of the laws of 2001, is
     9  amended to read as follows:
    10    a. [A] Effective on the first day of September, two thousand eighteen,
    11  a cost-of-living adjustment shall be payable to retired members  of  the
    12  New  York city employees' retirement system, the New York city teachers'
    13  retirement system, the New York city police pension fund, the  New  York
    14  city  fire department pension fund, the New York city board of education
    15  retirement system or the relief and pension fund of  the  department  of
    16  street  cleaning  provided  for in subchapter one of this chapter on the
    17  basis provided for in this section to: (i) all retired members who  have
    18  attained  age  [sixty-two]  fifty-five  and  have  been retired for five
    19  years; (ii) [all retired members who have attained  age  fifty-five  and
    20  have  been  retired  for  ten  years; (iii)] all members who retired for
    21  disability regardless of age who have been retired for five  years;  and
    22  [(iv)] (iii) all recipients of an accidental death benefit regardless of
    23  age who have been receiving such benefit for five years.
    24    § 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 2018, COLA will be payable to pensioners
        who have attained age fifty-five and been retired at least five years.
          Insofar as this bill affects the New York State and  Local  Employees'
        Retirement  System,  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 sufficient to
        pay the cost of the provision. If this bill were enacted,  the  increase
        in the present value of benefits would be approximately $418 million.
          Insofar  as  this bill affects the New York State and Local Police and
        Fire Retirement System (PFRS), the increased costs would  be  shared  by
        the  State  of  New York and the participating employers in the PFRS. If
        this bill were enacted, the increase in the present  value  of  benefits
        would  be approximately $77 million. The estimated first year cost would
        be approximately $1.8 million to the State of New York and approximately
        $7.5 million to the participating employers in the PFRS.
          Summary of relevant resources:
          The membership data used in  measuring  the  impact  of  the  proposed
        change  was  the same as that used in the March 31, 2017 actuarial valu-
        ation.  Distributions and other statistics can  be  found  in  the  2017
        Report  of  the  Actuary  and  the  2017  Comprehensive Annual Financial
        Report.
          The actuarial assumptions and methods used are described in the  2015,
        2016,  and  2017  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, 2017
        New  York  State  and  Local  Retirement System Financial Statements and
        Supplementary Information.

        A. 10351                            3
 
          I am a member of the American Academy of Actuaries and meet the Quali-
        fication Standards to render the actuarial opinion contained herein.
          This  estimate,  dated  January  19,  2018,  and intended for use only
        during the  2018  Legislative  Session,  is  Fiscal  Note  No.  2018-37,
        prepared  by  the  Actuary  for  the New York State and Local Retirement
        System.
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