BILL NUMBER: S6638
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the retirement and social security law, in relation to
calculating certain pensions
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would amend the Retirement and Social Security Law to increase
the final average salary multiplier for employees who have more than
twenty years of credit in the New York State and Local Government
Employees Retirement System, the New York State Teachers Retirement
System, or the New York City Employees Retirement System.
 
SUMMARY OF PROVISIONS:
Section one of this bill amends section 504 of the Retirement and Social
Security Law (RSSL) to change the benefit fraction for a Tier 6 member
of the NYS State and Local Retirement System (ERS) with more than 20
years of service from 35% of final average salary (FAS) plus 2% FAS per
year of service greater than 20 to 40% FAS plus 2% FAS per year of
service greater than 20.
Section two of this bill amends subdivisions a, b, and b-1 of section
604 of RSSL as follows:
Subdivision a of section 604 of RSSL provides that Tier 5 and 6 members
of the NYS Teachers Retirement System (TRS) with less than 25 years of
service are subject to a benefit fraction of 1.67% FAS times years of
service. Tier 6 ERS members, however, are subject to this benefit frac-
tion with less than 20 years of service. Section two of this bill
strikes the TRS-specific language, providing Tier 5 and 6 TRS members
with the 1.67% FAS on a 20-year interval rather than 25. Subdivision b
of section 604 of RSSL is similar to subdivision a, except that it
describes the benefit fraction for Tier 6 ERS with 20 or more years of
service, or Tier 5 and 6 TRS with more than 25 years of service, which
is 2% FAS times years of service. Tier 6 ERS and Tiers 5 and 6 TRS
members with more than 30 years of service then get an additional 1.5%
FAS times each year of service in excess of 30. This bill strikes the
TRS-specific language, providing Tier 5 and 6 TRS members with the 2%
FAS on a 20-year interval rather than 25.
Subdivision b-1 of section 604 of RSSL is also amended to provide that
Tier 6 ERS members with more than 20 years of service, currently subject
to a 35% FAS at age 63, shall be subject to a 40% FAS benefit fraction
at such age and service level instead.
Section three of this bill amends section 1312 of RSSL, which is a
special provision of RSSL for Tier 6 TRS and ERS members represented by
NYS United Teachers (NYSUT). Under section 1312, NYSUT members in ERS or
TRS Tier 6 can retire after reaching age 57 with 30 years of credited
service, notwithstanding Tier 6 rules which otherwise hold that a member
cannot receive full benefits until age 63. At this point, the NYSUT
member may receive 35% FAS plus 2% FAS per year in excess of 20. This
section of the bill amends RSSL to change the benefit fraction to 40%
FAS after 20 years of service, consistent with the other provisions of
the bill.
Section four provides that this act shall not be subject to the appro-
priation requirements of section 25 of RSSL.
Section five sets the effective date.
 
EXISTING LAW:
Upon reaching twenty years of service, employees in the Tier 6 NYSLRS
pension plan receive a pension allowance equal to 35% of final average
salary. After 20 years, employees receive an additional 2% per year of
final average salary.
 
JUSTIFICATION:
New York's pension plan used to be a draw to workers in our state.
Employees knew they would earn less than their counterparts in the
private sector but would have a quality defined-benefit pension in their
retirement. The changes to Tier 6 have changed this dynamic. It's now
harder than ever to recruit employees into positions such as direct care
work and jobs in the medical field. This legislation would amend the
Tier 6 pension plan to give employees a 40% final average salary pension
after 20 years rather than the current 35%.
This will help reduce attrition and strengthen our public workforce.
 
PRIOR LEGISLATIVE HISTORY:
2024: S6174D - Referred to Civil Service and Pensions
2023: S6174A - Referred to Civil Service and Pensions
2022: S4235A - Referred to Civil Service & Pensions
2021: S4235 - Referred to Civil Service & Pensions
2020: S5660A - Referred to Civil Service & Pensions
2019: S5660 - Referred to Civil Service & Pensions
 
FISCAL IMPLICATIONS:
See bill.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S6638: 504 retirement and social security law, 504(a) retirement and social security law, 1312 retirement and social security law