Spectrum: Moderate Partisan Bill (Democrat 8-1). 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. Your valid home address is used to determine which NY State Senator Represents you. Public workers in New York could have an incentive to retire early under a proposal by a pair of state lawmakers unveiled on Thursday. WebIf this bill is enacted, insofar as it affects the New York State and Local Employees' But for a state with an out-year budget gap of over $60 billion, early retirements alone may not make a big difference. 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 act shall be effective as of June 20, 2022. WebThis act enacts into law components of legislation that 2 would enable the city of New York to offer a temporary retirement incen- 3 tive to their employees, as well as to provide an age 55/25 years tempo- 4 rary incentive for certain public employees. Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. 518-429-2959. Subpart B of the Act allows certain Tier 2, 3 and 4 Members to retire early with an unreduced benefit. 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. 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. Given variation in local circumstances, including concerns about teacher shortages, we will advocate that districts be given an option whether to participate in an incentive, Lowry said via email. One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. 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. Many states, counties, and cities used them during the Great Recession, and many are considering them now, as a response to the current COVID-19 pandemic fiscal crisis., However, these incentives are not without risks. 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. (Optional). As of today, Governor Cuomo has not proposed any bills which address early retirement incentives. 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. 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. 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. All comments are subject to review and community moderation is encouraged. The savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). (347) 643-3000 Within NYC WebThe CBC recently analyzed a NYC ERI proposal in the State Legislature (bills 30-30 47th Avenue, 10th Floor This is a PG CLUE event.To watch [], Register at https://csi.cuny.edu/gradevents, This two-hour training introduces issues that LGBTQ+ students face and explores how everyone can help [], Weather Alert for the College of Staten Island January 28-29, Advocating for Inclusion (In-person and via Zoom), Doctorate of Nursing Practice (DNP) Information Session, Becoming Allies for LGBTQ+ Students: SafeZone Training, Reece Peck Quoted Extensively in Salon Piece on Tucker Carlson, CSI Asst. The New York City Managerial Employees Association founded in 1968 is a vibrant membership-based organization representing professional managers in New York City government. Amounts payable are reduced by payments of any ordinary death benefits. The budget raises taxes on upper income California Consumer Limit the Use of My Sensitive Personal Information, California Consumer Do Not Sell or Share My Personal Information, The states current year budget gap is now $14.5 billion, According to the NYS Division of Budget, over the next 2 years, the budget gap will grow to $30 billion. View More 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. Others might share a personal anecdote about how the bill would affect them or people they care about. However, early retirement incentives are allowed as long as they meet certain requirements. Requires the office of alcoholism and substance abuse services to provide Your support or opposition to this bill is then shared immediately with the senator who represents you. The act shall expire and be deemed repealed on December 31, 2022. To be eligible, a worker would have to be in a position that can be eliminated. (800) 348-7298. communit@nystrs.org. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. Subscribe to our e-alerts to stay up-to-date on new publications and the latest insights from CBC! With respect to NYCERS members, Subpart A of the Act provides additional service credit to certain NYCERS members in the form of one-twelfth of a year of additional service credit per year of service, up to three additional years of service credit. This legislation provides an Early Retirement Incentive option, only to certain employees of the City of New York and the Serving New York Educators Since 1921 Serving New York Educators Since 1921. 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). The bill comes as local government finances have been scrambled by the COVID-19 pandemic. 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. (18 Lines), View More (312 Lines). Anecdotally, its also become a frequent topic of conversation among older teachers heading back into the classroom this month, some of whom are fearful of contracting COVID-19. By contributing or voting you agree to the Terms of Participation and verify you are over 13. 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 Act does not extend eligibility with respect to retirees. Learn More. 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. The City of Los Angeles offered ERIs in 2009 and 2020. Send me alerts for this bill. 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. 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. 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. (Some ERIs offer additional benefits, like extended health coverage). This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. Eligible members may not avail themselves of the provisions of both Subpart A and B. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. 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. In light of the Citys fiscal stress and the availability of other options to balance the budget, the City should reduce its workforce through attrition and not pursue the ERI., ERIs provide a financial incentive for an employee to retire. Abinanti calls them placeholder bills because they havent changed much since they were originally introduced back in 2009 during the Great Recession in order to serve a similar purpose: trim state expenses. The decision to take the ERIs is in the hands of the employees which is an advantage over furloughs or layoffs. When asked to respond to criticism by some that the Cuomo administrations strategy to deal with the recession might be summed up as waiting for federal aid, Klopott said thats not the case. Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. 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. In order for an ERI to have our support, at minimum, it would have to allow all union members to take advantage of it, and not be targeted for specific groups of workers, while excluding others.. Many states, counties, and cities used themduring the Great Recession, and many are considering them now, as a response to the current COVID-19 pandemic fiscal crisis. Mail your completed form or correspondence to: WebWith 20 years of service credit, you can apply for early retirement regardless of your age. A separate bill that covers early retirement for public workers in New York City was previously introduced. Prof. Alexander Zevin Highlighted by Jacobin on Economists Theories of Liberalism, First Wind Power Training Facility Set to Open with Curriculum from CSI According to SI Advance, Recharge News Cites CSI as Partner in Offshore Wind Initiative Proposal. April 14, 2022 A Way to Stop the Bleeding Erie Community College plans Sponsors History Same As/Similar To A04548 (Same As) 2022-01-05 - referred to governmental employees New York State Sources Bill Comments WebThe amount of such benefit for an eligible employee with 48 thirty or more years of In fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. In addition, the act sets forth comprehensive requirements for electronic notarization. LegiScan is an impartial and nonpartisan legislative tracking and reporting service utilizing GAITS and LegiScan API, Senate Civil Service and Pensions Committee, https://www.nysenate.gov/legislation/bills/2021/S4170, https://assembly.state.ny.us/leg/?default_fld=&bn=S04170&term=2021&Summary=Y&Actions=Y&Text=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y#S04170. Weve already reduced spending by $4 billion year-over-year, Klopott said. Assemblyman Tom Abinanti (D-Greenburgh) has introduced two bills that address early retirement for state and local government employees. If funding from the federal government is not forthcoming by the November elections, does that mean other steps, like introducing an early retirement incentive, would be taken? 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. WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. 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. WebMonths of pressure by New York City labor unions, including massive letter-writing Breaking Down the State Budget Details. One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. With less than two months left in New York State's legislative session, 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. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves In fact, the Government Finance Officers Association (GFOA) issued an advisory that recommends against using ERIs. The Citizens Budget Commissions (CBC) recent analysis of a proposed ERI for New York City municipal employees concluded that while an ERI can induce employees to leave city employment quickly, it is a more costly workforce reduction strategy than attrition or layoffs. Lowry also expressed concern over the diminishing strength of the education workforce. Retirements in the short term will cut local payrolls, and in the long term, open jobs for those who want to work in government.". (Some ERIs offer additional benefits, like extended health coverage). 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. 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. Get hyperlocal forecasts, radar and weather alerts. So at what point will he? 335 Adams Street, Suite 2300 Learn More. New York City, with a fiscal year 2022 budget of $95.6 billion, isfacing severe fiscal challengesdue to the pandemic and recession. To submit an LBD for a fiscal note, email us at FiscalNotes@nystrs.org. New York Citys Proposed ERI New York City, with a fiscal year 2022 budget of $95.6 billion, is facing severe fiscal challenges due Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. pm Get the best experience and stay connected to your community with our Spectrum News app. 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. WebS05559 Text: STATE OF NEW YORK _____ 5559 2021-2022 Regular Sessions IN SENATE March 11, 2021 _____ Introduced by Sens. Timing matters, he said. The combined $681 million savings is the net of gross savings from two-year payroll reductions of $1.4 billion minus pension benefit costs of $755 million," read the report. 2023, Charter Communications, all rights reserved. Pursuant to WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves 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. 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. Relates to enabling public employers to offer certain temporary retirement incentives for certain public employees. 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. Sat & Sun: 6:00 am to 11:00 pm EST/EDT. This Act authorizes the city of New York and the NYC Board of Education (DOE), to provide a temporary retirement incentive for eligible 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. However, these incentives are not without risks. Submit a Media Other levels of government are already looking into early retirement incentives. GRIFFO, BORRELLO, SERINO -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT in relation to enabling public employers to offer certain 2023, Charter Communications, all rights reserved. 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. TheCBC recently analyzedaNYC ERIproposal in the State Legislature (billsestablishingsimilar programsfor state and other local employees have also been introduced). The other bill provides a similar incentive for educators. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. The Citizens Budget Commissions (CBC)recent analysis of a proposed ERI for New York City municipal employeesconcluded that while an ERI can induce employees to leave city employment quickly, it is a more costly workforce reduction strategy than attrition or layoffs. So, were taking actions to ensure the states finances are in a safe spot, and wont fall off a cliff if all of a sudden federal funding ultimately doesnt materialize.. The early retirement benefit equals 42 percent of your FAS for 20 years of service credit plus an additional 4 percent of your FAS for each year of service (or prorated portion thereof) 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 the ERI could actually cost more than expected., 412 S. Peoria, (MC 349), Suite 324 Chicago, IL 60607, 2023 The Board of Trustees of the University of Illinois, With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. Sorry, you need to enable JavaScript to visit this website. Long Island City, NY 11101, Executive 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. 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. 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. 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. 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.. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. First. The money funds education and health care, and is meant to aid the state's economy in its recovery from the COVID-19 pandemic. Inquiry WebContact Us. 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). Thats really going to dictate everything that we do.. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. 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. The next step in this process is for the Mayor to pass a local law by June 30, 2021, or in the case of the DOE, the Chancellor must pass a resolution by May 31, 2021, electing to participate in the incentive. The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction. Key findings were: The City of Los Angeles offered ERIs in 2009 and 2020. On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. Like what you're reading? The beneficiaries of the following NYCERS members are covered: Correction Officers, Housing and Transit Police, Uniformed Sanitation members, certain EMTs and TBTA members. Albany, NY12207 Contact the Call Center for information. Login now. 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. I can unsubscribe at any time. This fiscal note concerns its impact on the New York State Teachers' Retirement System. However, they come with a significant cost that might have long-term implications for fiscal stability. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. However, they come with a significant cost that might have long-term implications for fiscal stability. The coronavirus pandemic has greatly impacted the finances of the State, as well as all of our municipalities, and early retirement incentives offer bottom-line relief to their budgets, Harckham said. New York City, with a fiscal year 2022 budget of $95.6 billion, is facing Is there a specific set of circumstances that the budget division is looking for that would prompt such a discussion? There shall be no reduction for an 16 eligible New York city employee in a physically taxing position with 17 twenty-five or more years of service and who is a participant (i) in the 18 optional twenty-five year early retirement program for certain members 19 governed by section 604-c of the retirement and social security law, as 20 California Consumer Limit the Use of My Sensitive Personal Information, California Consumer Do Not Sell or Share My Personal Information. (877) 669-2377 Toll-Free WebThe current Section 212 earnings limit, determined by the state Legislature, is $35,000 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., Early retirement incentives were used by many states and cities during the Great Recession to reduce the workforce and achieve savings.
