PENSION JUSTICE UPDATE

NEW YORK STATE PUBLIC EMPLOYEES FEDERATION, AFL-CIO

Tuesday, June 20, 2000

PENSION COLA

S8180/A11460 – "COLA" passed both the Senate and Assembly last week. This bill provides public employee retirees with a permanent and automatic cost of living adjustment based on 50% of the increase in the Consumer Price Index (CPI) from year to year. The annual increase, up to 3% per year but not less than 1% per year, will be calculated on a maximum retirement benefit of $18,000. Eligible retirees include 1) individuals who are at least age 55 and have been retired for at least 10 years and 2) individuals who are age 62 and have been retired for at least 5 years.

Beginning September 1, 2000, all retired members who have retired prior to 1997 shall be paid an adjusted benefit in monthly installments. This one-time catch-up provides a supplemental payment equal to 50% of the CPI from the member’s year of retirement through 1997. Members who retired in 1997 or after, if they meet eligibility requirements for age and years retired, will receive their first annual COLA in September, 2001.

This bill still needs to be signed into law by the governor.

ADDITIONAL PENSION REFORM

 

S8130/A11415 – "Tier Equity" passed both the Senate and Assembly. This bill seeks to make the pension reduction penalties in tiers 3 and 4 equal to the penalty of tier 2. Under present law, workers in tiers 3 and 4 face early retirement penalties of up to 38%. In tier 2, the maximum early retirement penalty is 27%.

S8142/A11418 – "Benefit Enhancements" passed both the Senate and Assembly. This bill provides for benefit enhancements for certain State of New York and City of New York retirement systems. Will eliminate 3% employee pension contribution for members of Tiers 3 & 4 after 10 years of membership. Will also provide one additional month of service for every year of service at a maximum of two years additional credited service for employees in Tiers 1 & 2.

S8129/A11416 -- "Prior Service Credit" passed both the Senate and Assembly. This bill allows members of a public retirement system to receive credit for prior service if such service would have been creditable in a public retirement system. It also reduces the waiting period from 5 to 2 years after returning to public employment before receiving pension service credit for prior service.

S8101/A11380 -- "Veterans Buyback Bill" passed both the Senate and Assembly. This bill permits members of public retirement systems to obtain a maximum of 3 years retirement credit for military duty performed during specified periods. Will cost employee 3% of current salary for each year of service bought back.

  S8131/A11414 – "Death Benefits" passed both the Senate & Assembly. Provides that certain death benefits will apply to all new members of a public retirement system and allows coverage by the most advantageous death benefit.

 

CALL THE GOVERNOR TODAY AT

1-877-255-9417

Tell him to support all of the aforementioned legislation.