BILL NUMBER: S7783
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:
This bill amends Chapter 125 of the Laws of 2000, a chapter which
provides public employee retirees with permanent partial cost-ofliving
increases in New York State. The bill provides a desirable amendment to
Chapter 125 needed to protect public retirees from continued erosion of
their retirement income from inflation. While Chapter 125 began the
effort to address pension erosion, this bill seeks to further close that
gap.
 
SUMMARY OF PROVISIONS:
Section 1 amends subdivision d of Section 78-A of the Retirement and
Social Security Law to provide that effective September 1, 2025, the
maximum percentage of the CPI for COLA benefits shall not exceed 5% but
not less than 1%.
Section 2 amends subdivision d of Section 378-A of the Retirement and
Social Security Law to provide that effective September 1, 2025, the
maximum percentage of the CPI for COLA benefits shall not exceed 5% but
not less than 1%.
Section 3 amends subdivision d of Section 532-A of the Education Law to
provide that effective September 1, 2025, the maximum percentage of the
CPI for COLA benefits shall not exceed 5% but not less than 1%.
Section 4 amends subdivision d of Section 13-696 of the Administrative
Code of the City of New York to provide that effective September 1,
2025, the maximum percentage of the CPI for COLA benefits shall not
exceed 5% but not less than 1%.
Section 5 is the effective date.
 
JUSTIFICATION:
Significant strides were made by the enactment of Chapter 125 of the
Laws of 2001. 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 co-payments, premiums, and medica-
tion, have been rising at a rate far in excess of the CPI. Recent feder-
al amendments to the Medicare law, especially the prescription drug
coverage, are likely to cause a significant increase in retired public
employee health care costs. This modest increase in the maximum percent-
age of the CPI for COLA benefits will provide needed but modest
protection for retirees in the event the CPI exceeds 3%.
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: S.6158-A - Amend and Recommit to Civil Service and
Pensions/A.6341-A - Held for Consideration in Governmental Employees
2021-2022: S.6030-C - Referred to Civil Service and Pensions/A.9427 Held
for Consideration in Governmental Employees
2017-2018: S.6050 - Referred to Civil Service and Pensions
 
STATE AND LOCAL FISCAL IMPLICATIONS:
See fiscal note.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S7783: 78-a retirement and social security law, 78-a(d) retirement and social security law, 532-a education law, 532-a(d) education law