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.

Statutes affected:
S3414: 78-a retirement and social security law, 78-a(f) retirement and social security law, 532-a education law, 532-a(f) education law