WebPursuant to Legislative Law, Section 50: This bill (legislative bill draft 03546-01-1) would provide a tempo- rary retirement incentive to retirement system members throughout the state and NYC during fiscal year 2021-2022. WebOne reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. Find your Senator and share your views on important issues. WebSUMMARY OF PROVISIONS: This legislation creates a retirement incentive for certain From elections to Annual Meeting information, everything a Delegate needs to know. Were going to look into November and see where things are, and then we would look at what needs to be undertaken to do any kind of permanent spending reduction, Klopott continued. The act shall expire and be deemed repealed on December 31, 2022. (800) 348-7298. communit@nystrs.org. With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. We recommend using the latest version of IE11, Edge, Chrome, Firefox or Safari. In 2020, Los Angeles implemented a Separation Incentive Program that provides a lump sum payment based on salary and years of service, capped at $80,000, rather than a pension benefit boost. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Requires the office of alcoholism and substance abuse services to provide One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. The second is that this long repayment, coupled with other fiscally dubious actions, resulted in the funding ratio of the pension fund declining, from 90.1 percent before the Great Recession to 73.1 percent now., recent analysis of a proposed ERI for New York City municipal employees, ERI could actually cost more than expected. WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. Call Center Hours The second is that this long repayment, coupled with other fiscally dubious actions, resulted in the funding ratio of the pension fund declining from 90.1 percent before the Great Recession to 73.1 percent now., In 2020, Los Angeles implemented a Separation Incentive Program that provides a lump sum payment based on salary and years of service, capped at $80,000, rather than a pension benefit boost. Get hyperlocal forecasts, radar and weather alerts. The measure would apply to workers who are members of theNew York State and Local Employees Retirement System; New York City Employees Retirement System; New York State Teachers Retirement System; New York City Teachers Retirement System; and New York City Board of Education Retirement-System. In looking at the ERI authorized on June 2, 2010, by then-Governor David Paterson, the CBC estimated that over two years, New York State saved $249 million and New Yorks local governments saved $402 million. Relevant legislation impacting NYSTRS and its members is summarized below. The Municipal Labor Committee since last summer had urged the de Blasio administration to consider an early-retirement incentive at a time when it was Early retirement incentives (ERIs) are offered by state and local governments, often during fiscal distress, to reduce headcount and achieve savings, while avoiding furloughs or layoffs. It had been a back burner issue for a while, but in August, it moved to the front of the stove when it became clear that Democrats and Republicans in Washington werent able to cook up an agreement on stimulus funding. On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. New York, NY 10001 This Act replaces the COVID-19 Accidental Death Benefit established by Chapter 89 of the Laws of 2020 and extends the deadline for members to December 31, 2022. By streamlining the workforce, we will create real savings across the board, and at the same time open up job opportunities for residents in many instances.. Each component is wholly 5 contained within a Part identified as Parts A and B. To submit an LBD for a fiscal note, email us at FiscalNotes@nystrs.org. (877) 669-2377 Toll-Free Originally published by the Government Finance Research Center,University of Illinois Chicago. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. (Some ERIs offer additional benefits, like extended health coverage). The ERI may be more costly than expected; maximizing savings requires keeping the newly vacated positions unfilled, and structuring an incentive that it is attractive enough to employees but minimizes costs. The 2009 program was similar to the New York City proposal. Get hyperlocal forecasts, radar and weather alerts. Get the most out of your NYSTRS membership. According to an August report by CNHI, counties around the state, including Albany, Chemung, Dutchess, and Westchester, have plans to reduce their payrolls by offering retirement incentives, and several other counties are expected to follow suit, according to Mark LaVigne, deputy director of the New York State Association of Counties. This legislation provides an Early Retirement Incentive option, only to certain employees of the City of New York and the NYC Board/Department of Education. As of January 2021, tax revenues for fiscal years 2020 to 2024 (collections to date and current forecast) are $20 billion below January 2020 projections. The other bill provides a similar incentive for educators. Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration. The New York City Managerial Employees Association founded in 1968 is a vibrant membership-based organization representing professional managers in New York City government. The benefit is provided, subject to documentation requirements, to the eligible beneficiary of a member; where such member reported to their usual place of employment or an alternate worksite outside their home at the direction of their employer on or after March 1, 2020 and contracted COVID-19 within 45 days after reporting for work, and whose death was caused by COVID19 or where COVID19 contributed to such members death. Enables public employers to offer an age fifty-five with ten years of service or age fifty with twenty-five years of service temporary retirement incentives for certain public employees. The incentive is subject to the Mayor of the city of New York passing a local law and the Chancellor of the DOE passing a resolution. The lump sum payments are spread over two fiscal years, which provides fiscal relief to Los Angeles, and spreads out the retirees personal income tax liability. WebWith 20 years of service credit, you can apply for early retirement regardless of your age. Over the next 4 years, the gap will grow to $62 billion, The revenue shortfall is largely due to the COVID-19 economic shutdown, While the state has instituted 20% aid withholdings to schools and localities as well as freezes on hiring, new contracts and raises, a Cuomo spokesman says that early retirement options for the state workforce have not yet been actively considered. Enter a message to your senator. Typically, retirement incentives are introduced in Albany as Governors Program bills. Furthermore, for incentives increasing pension benefits, the actuarial cost to government can be spread out over time, which can increase near-term savings while deferring costs that may also violate the principle of intergenerational equity. The ERI financial incentive is usually an additional pension credit that boosts the pension benefit of the employee, or a lump-sum payment to the employee, either fixed or variable, based on years of service. The money funds education and health care, and is meant to aid the state's economy in its recovery from the COVID-19 pandemic. This Act authorizes the city of New York and the NYC Board of Education (DOE), to provide a temporary retirement incentive for eligible employees. By contributing or voting you agree to the Terms of Participation and verify you are over 13. Inquiry This act is effective as of March 1, 2020. Using those data points and a set of assumptions about fringe benefits and replacement hiring, the CBC simulated the costs and savings from 10,000 separations under the ERI compared to 10,000 voluntary separations. TheCBC recently analyzedaNYC ERIproposal in the State Legislature (billsestablishingsimilar programsfor state and other local employees have also been introduced). Bob Lowry, deputy director for advocacy, research & communications of the New York State Council of School Superintendents, was less dismissive of the idea. Using those data points and a set of assumptions about fringe benefits and replacement hiring, the CBC simulated the costs and savings from 10,000 separations under the ERI compared to 10,000 voluntary separations. The billbacked by Sen. Peter Harckham and Assemblyman Tom Abinanti would create early retirement incentives for workers 55 and older who have 10 years of service with state or workers with 25 years of government service. This law is effective as of September 13, 2021. But the states largest public employees union, Civil Service Employees Association (CSEA), doesnt appear keen on starting any conversations about early retirement incentives which wouldnt apply to all members. In fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. A separate bill that covers early retirement for public workers in New York City was previously introduced. When asked if Governor Andrew Cuomo has been actively considering early retirement options for the state workforce, spokesman Rich Azzopardi told Spectrum News, not as of yet.. If you have questions, please email anne.alarcon@csi.cuny.edu. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety). This Act amends the Retirement and Social Security Law (RSSL) to include employees who became NYCERS members after the qualifying period under the World Trade Center (WTC) law, but were employees of a public employer during the covered time period and purchased some or all of that pre-membership period. Significant reduction through attrition is achievable in NYC given an annual separation rate of about 7 percent for a municipal workforce exceeding 300,000 full-time employees. Further updates will be provided as more information becomes available. New York City, with a fiscal year 2022 budget of $95.6 billion, is facing The real issue is whether or not we get federal funding. Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration., for state and other local employees have also been introduced). The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction., The incentive cost of about $1.1 billion would equal about 19 percent of the potential five-year salary savings of $5.9 billion, if the positions are kept vacant., Approximately 32 percent of the ERI incentive cost is likely to be an unneeded expense, flowing to employees who would have retired anyway, based on a, If one-third of the vacant positions are filled in the first two years at 70 percent of the salary of the retiree, potential savings would be reduced by 31 percent, to $3.3 billion. The ERI financial incentive is usually an additional pension credit that boosts the pension benefit of the employee, or a lump-sum payment to the employee, either fixed or variable, based on years of service. New York City, with a fiscal year 2022 budget of $95.6 billion, isfacing severe fiscal challengesdue to the pandemic and recession. The 2009 program was similar to the New York City proposal. "The savings are diminished to the extent early retirees are replaced by new hires. Use our new PolitiCorps to join with friends and collegaues to monitor & discuss bills through the process.Monitor Legislation or view this same bill number from multiple sessions or take advantage of our national legislative search. WebIf this bill is enacted, insofar as it affects the New York State and Local Employees' But there are costs as well, including lump sum payments, pensions costs, payouts of accrued leave, and the costs of recruiting and training replacement personnel. It seems to me that this is the best way to move forward, to thin out the workforce for the state and our localities, and still make sure that people arent going to be put on the unemployment line, Abinanti told Spectrum News. Brooklyn, NY 11201-3724. One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. This week the Budget was agreed upon by the Governor and the State Legislature. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Workers who are members of the police and fire retirement systems were not included in the measure; those employees are covered by previous service commitments of 20 years and 25 years. In 2011, the Citizens Budget Commission issued a reporton the savings the last official state early retirement incentive package brought in. WebThere Will Be No New York State Early Retirement Incentive in 2021 April 7, 2021 Dear COBA Members; There has been a lot of talk recently about a possible Statewide Early Retirement Incentive that may have been included in the State's Budget this year. If localities are considering an ERI, it is important to do a thorough analysis of the costs and benefits and commit to a strict hiring freeze, or theERI could actually cost more than expected. Approximately 32 percent of the ERI incentive cost is likely to be an unneeded expense, flowing to employees who would have retired anyway, based on aCBC analysis of a similar program. Contact the Call Center for information. Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration., The CBC recently analyzed a NYC ERI proposal in the State Legislature (bills establishing similar programs for state and other local employees have also been introduced). The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction.. 2023, Charter Communications, all rights reserved. Learn More. I can unsubscribe at any time. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. Weve frozen pay increases, frozen hiring, frozen new contracts, temporarily withholding portions of payments. Authorizes certain public employers to offer temporary retirement incentives (Part A); provides an age 55/25 years temporary retirement incentive for certain public employees (Part B). 30-30 47th Avenue, 10th Floor California Consumer Limit the Use of My Sensitive Personal Information, California Consumer Do Not Sell or Share My Personal Information. We introduced the bills because its a common-sense solution to the impending financial crisis for state and local governments, and an attempt to stimulate a conversation between the executive branch of all of our governments and our labor organizations, Abinanti said. WebMonths of pressure by New York City labor unions, including massive letter-writing The local law and/or resolution must include what the Open Period for enrollment will be, what type of incentive the City/DOE will offer, and the commencement date of the incentive. Early retirement incentives were used by many states and cities during the Great Recession to reduce the workforce and achieve savings. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. DC 37 and other New York City unions are engaged in lobbying the state legislature for temporary Early Retirement Incentive (ERI) legislation that would allow the Citys long-serving public workers in certain tiers the option to retire early without a reduction in their benefits. This fiscal note concerns its impact on the New York State Teachers' Retirement System. CBC is a nonpartisan, nonprofit organization pursuing constructive change in the finances and services of New York City and State. This act shall be effective as of June 20, 2022. Login now. The New York State Legislature is on its way to finalizing the largest state budget in New Yorks history totaling $212 billion. The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction. (Some ERIs offer additional benefits, like extended health coverage). The Actuary for the City of New York estimated that the additional pension contribution would average $110,000 per retiree, which the City would pay over four years, with a one-year lag (years two to five), while the average salary of a retiree would be $90,200. In addition, the act sets forth comprehensive requirements for electronic notarization. Mail your completed form or correspondence to: There was no significant legislation enacted in 2007, 2014, 2015 or 2018. As of January 2021, tax revenues for fiscal years 2020 to 2024 (collections to date and current forecast) are $20 billion below January 2020 projections. The second is that this long repayment, coupled with other fiscally dubious actions,resulted in the funding ratio of the pension fund decliningfrom 90.1 percent before the Great Recession to 73.1 percent now. 518-429-2959. The local law and/or resolution must include what the Open Period for enrollment will be, what type of incentive the City/DOE will offer, and the commencement date of the incentive. This law amends the Retirement and Social Security Law (RSSL) 361-a(c) and General Municipal Law (GML) 208-f(c) by increasing the deceased members salary used in the computation of the special accidental death benefit by adding to it an additional percentage. This law is effective as of July 1, 2021. Breaking Down the State Budget Details. Learn More. Lowry also expressed concern over the diminishing strength of the education workforce. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. NYSTRS administers a defined benefit plan established by the New York State Legislature. It is better that longtime employees retire with guaranteed income than governments be forced to lay off employees who then seek unemployment benefits, said Abinanti. Amounts payable are reduced by payments of any ordinary death benefits. Others might share a personal anecdote about how the bill would affect them or people they care about. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. Furthermore, for incentives increasing pension benefits, the actuarial cost to government can be spread out over time, which can increase near-term savings while deferring costs that may also violate the principle of intergenerational equity., So, while an ERI can save money, there are fiscal risks. We are already receiving reports of higher than typical teacher retirements, presumably in response to concerns about the pandemic. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. Other levels of government are already looking into early retirement incentives. Customer Service Center WebThe amount of such benefit for an eligible employee with 48 thirty or more years of April 14, 2022 A Way to Stop the Bleeding Erie Community College plans This Act amends the Retirement and Social Security Law and the New York City Administrative Code to allow for the electronic submission of a notice that a member participated in World Trade Center Rescue, Recovery or Clean-up Operations for a qualifying period. (347) 643-3501 TTY, Forms and Correspondence Mailing Address NYSTRS administers the laws as enacted; the Retirement System has neither the ability to change the benefit structure nor the authority to mandate benefit changes. Register now for our free OneVote public service or GAITS Pro trial account and you can begin tracking this and other legislation, all driven by the real-time data of the LegiScan API. Offices MF 9 am 5 As of January 2021, tax revenues for fiscal years 2020 to 2024 (collections to date and current forecast) are $20 billion below January 2020 projections. Will NYS offer an early retirement incentive in 2021? One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs., New York City, with a fiscal year 2022 budget of $95.6 billion, is facing severe fiscal challenges due to the pandemic and recession. Trusted Partner of NYC Employees for More Than 100 Years, Annual Comprehensive Financial Report (ACFR), New York City Employees Retirement System, New York City Employees' Retirement System. recent analysis of a proposed ERI for New York City municipal employees, resulted in the funding ratio of the pension fund declining, ERI could actually cost more than expected. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves A retirement incentive could be helpful, but we have to time it so that were not paying extra for retirements that would occur in any event.. To date, CSEA has not seen any Early Retirement Incentives proposed through the legislature that we could support, said Mark Kotzin, CSEA Spokesman.