BILL NUMBER: S8133B
SPONSOR: JACKSON
 
TITLE OF BILL:
An act to amend the retirement and social security law and the education
law, in relation to the retirement contributions of career public
employees
 
PURPOSE:
To limit employee contribution at 3% after 10 years of membership in a
public retirement plan.
 
SUMMARY OF PROVISIONS:
Section 1 of this bill amends subdivision a of section 517 of the
retirement and social security law
Section 2 of this bill amends paragraphs 1 and 2 of section 613 of the
retirement and social security law
Section 3 of this bill amends subdivisions f and g of section 613 of the
retirement and social security law
Section 4 of this bill amends section 1204 of the retirement and social
security law
Section 5 of this bill amends subdivision 2 of section 182 of the educa-
tion law
Section 6 of this bill amends paragraph (d) of subdivision 2 of section
392 of the education law Section 7 of this bill amends paragraph (d) of
subdivision 2 of section 6252 of the education law
Section 8 of this bill states that none of the provision of this act
shall be subject to section 25 of the retirement and social security law
Section 9 of this bill sets forth the effective date
 
JUSTIFICATION:
The state of New York, local governments and unable to hire or retain
staff. This results negatively impacts the delivery of services, regu-
lated entities and harms client care. While public service jobs have
never been able to meet private sector salaries, the public defined
benefit pension system served as an equalizer to attract and retain
talent. Since the enactment of the inferior Tier 6 retirement plan, the
state, local governments and school districts have struggled. The Tier 6
plan gutted the retirement benefits afforded to older public sector
workers. Tier 6 undercuts career advancement through longevity and staff
promotions by imposing higher contributions based on salary. It elimi-
nated the 2%. benefit enhancement at 20 years that was used to reward
longevity in public sector careers. It reduced the final average salary
calculation from three years to five years. It greatly curtails the
amount of overtime compensation that can be used for pensionable
purposes despite the fact that employers are mandating or awarding over-
time to meet staffing needs. The time has come to repair the Tier 6
retirement plan by reinstituting benefit enhancements based on career
milestones for services rendered to the state and its residents. Th is
legislation begins that process by reducing employee contributions for
Tier 6 members. This; coupled with the new five year vesting change,
will build new incentives into the plan to encourage new workers to
enter into public service and help retain existing employees. This
legislation would remove onerous and arbitrary reductions workers expe-
rience based on the increased earning they accrue through promotions or
negotiated salary increases.
 
PRIOR LEGISLATIVE HISTORY:
2025: S.8133 - Referred to Civil Service and Pensions
2023-2024: S.8757 - Referred to Civil Service and Pensions/A.9527
Referred to Governmental Employees
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed to have been
in full force and effect on and after April 1, 2026.

Statutes affected:
S8133: 182 education law, 182(2) education law, 392 education law, 392(2) education law, 6252 education law, 6252(2) education law
S8133A: 182 education law, 182(2) education law, 392 education law, 392(2) education law, 6252 education law, 6252(2) education law
S8133B: 182 education law, 182(2) education law, 392 education law, 392(2) education law, 6252 education law, 6252(2) education law