BILL NUMBER: S8133
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: Amends subdivision a of section 517 of the retirement and
social security law; and Section 2: Amends paragraphs 1 and 2 of section
613 of the retirement and social security law; and
Section 3: Amends subdivisions f and g of section 613 of the retirement
and social security law; and
Section 4: Amends section 1204 of the retirement and social security
law; and
Section 5: Amends subdivision 2 of section 182 of the education law; and
Section 6: Amends paragraph (d) of subdivision 2 of section 392 of the
education law; and
Section 7: Amends paragraph (d) of subdivision 2 of section 6252 of the
education law; and
Section 8: States that none of the provision of this act shall be
subject to section 25 of the retirement and social security law; and
Section 9: 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 equal-
izer 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. This 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 experience based on the
increased earning they accrue through promotions or negotiated salary
increases.
 
PRIOR LEGISLATIVE HISTORY:
2023-2024: S.8757 - Referred to Civil Service and Pensions/A.9527
Referred to Governmental Employees
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
April 1, 2025; provided, however, if this act shall become a law after
such date it shall take effect immediately and shall be deemed to have
been in full force and effect on and after April 1, 2025.

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