BILL NUMBER: S6631
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 provide enhanced inflation protection for public sector retirees
living on fixed incomes
 
SUMMARY OF PROVISIONS:
Section 1: Amends subdivision c of social security law; and
Section 2: Amends subdivision c of social security law; and
Section 3: Amends subdivision c of
Section 4: Amends subdivision c of administrative code of the city of
Section 5: Effective Date section 78-a of the retirement and section
378-a of the retirement and section 531-a of the education law section
13-696 of the New York
 
JUSTIFICATION:
The landmark Permanent COLA law (Chapter 125 of the laws of 2000)
provides important inflation protections for public sector retirees
living on fixed incomes. However, this important protection is limited
in its scope and has weakened over time. The current provisions of the
Permanent COLA law provide annual inflation protection equal to 50% of
the annual increase in inflation calculated on a maximum base retirement
benefit of $18,000 with a minimum increase of 1% per year and a maximum
cap of 3% per year. The flaw with the current Permanent COLA law is that
the maximum base of $18,000 used for calculating the annual COLA has not
increased in 23 years. This has caused erosion in the buying power of
current retirees and does not adequately protect the buying power of
staff retiring now or in the future.
This legislation would create an annual COLA or escalator for the base
benefit amount of $18,000 equal to 50% of the annual rate of inflation
(Up to 1% and capped at 3%) to protect the buying power of those who are
already retired and to more accurately reflect the higher base benefits
of staff retiring now or in the future.
 
PRIOR LEGISLATIVE HISTORY:
2023-2024: S.6152-A - Amend and Recommit to Civil Service and
Pensions/A.6636-B - Amend and Recommit to Governmental Employees
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S6631: 78-a retirement and social security law, 78-a(c) retirement and social security law, 532-a education law, 532-a(c) education law