The City University of New York is excluded from Chapter 59 of the Laws of 2021, meaning that we do not have the option to offer an Early Retirement Incentive. However, they come with a significant cost that might have long-term implications for fiscal stability. But for a state with an out-year budget gap of over $60 billion, early retirements alone may not make a big difference. Call Center Hours 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. (877) 669-2377 Toll-Free This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. Further updates will be provided as more information becomes available. 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. 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 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. WebWith 20 years of service credit, you can apply for early retirement regardless of your age. Sponsors History Same As/Similar To A04548 (Same As) 2022-01-05 - referred to governmental employees New York State Sources Bill Comments Contact the Call Center for information. 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. Login now. 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). So at what point will he? The 2009 program was similar to the New York City proposal. 2023, Charter Communications, all rights reserved. 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. WebAs of April 9, 2022, Tier 5 and 6 members only need five years of service credit to be Like what you're reading? This law is effective as of July 1, 2021. View More New York City, with a fiscal year 2022 budget of $95.6 billion, is facing WebThe amount of such benefit for an eligible employee with 48 thirty or more years of Relates to enabling public employers to offer certain temporary retirement incentives for certain public employees. Early retirement incentives were used by many states and cities during the Great Recession to reduce the workforce and achieve savings. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. First, payments will continue until 2026five years from now. 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) 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.. 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. With less than two months left in New York State's legislative session, Find your Senator and share your views on important issues. The act shall expire and be deemed repealed on December 31, 2022. Will NYS offer an early retirement incentive in 2021? Public workers in New York could have an incentive to retire early under a Mail your completed form or correspondence to: His goal, he says, is to simply try to get all the parties to the table to have this discussion. The Act does not extend eligibility with respect to retirees. 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 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. 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. 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. If you have questions, please email anne.alarcon@csi.cuny.edu. The savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). 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. There was no significant legislation enacted in 2007, 2014, 2015 or 2018. 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. Providing tools allowing you to research pending legislation, stay informed with email alerts, content feeds, and share dynamic reports. 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. First,payments will continue until 2026five years from now. 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. 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. Timing matters, he said. Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. This week the Budget was agreed upon by the Governor and the State Legislature. 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. 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.. (347) 643-3501 TTY, Forms and Correspondence Mailing Address Key findings were: 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. The New York State Legislature has passed budget bills S2509C and CBC is a nonpartisan, nonprofit organization pursuing constructive change in the finances and services of New York City and State. "The savings are diminished to the extent early retirees are replaced by new hires. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves 518-429-2959. At this time neither the City nor the DOE have elected to participate in the incentive. 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.. WebSUMMARY OF PROVISIONS: This legislation creates a retirement incentive for certain 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. 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.. WebThe State budget includes $26 million this year and statutory language for future years that will finally close the TAP Gap, the gap between the TAP funding for students and the actual cost of CUNY tuition. Home address is used to determine the senate district in which you reside. One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. 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. 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 Learn More. All comments are subject to review and community moderation is encouraged. TheCBC recently analyzedaNYC ERIproposal in the State Legislature (billsestablishingsimilar programsfor state and other local employees have also been introduced). 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. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. 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. Sat & Sun: 6:00 am to 11:00 pm EST/EDT. In fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. By contributing or voting you agree to the Terms of Participation and verify you are over 13. 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? 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 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. Key findings were: The City of Los Angeles offered ERIs in 2009 and 2020. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. First. 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. This fiscal note concerns its impact on the New York State Teachers' Retirement System. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. 212-279-2605, 515 Broadway, 4th Floor The other bill provides a similar incentive for educators. Other levels of government are already looking into early retirement incentives. 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. (18 Lines), View More (312 Lines). (Some ERIs offer additional benefits, like extended health coverage). 2023, Charter Communications, all rights reserved. Submit a Media The bill comes as local government finances have been scrambled by the COVID-19 pandemic. Retirements in the short term will cut local payrolls, and in the long term, open jobs for those who want to work in government.". Subpart B of the Act allows certain Tier 2, 3 and 4 Members to retire early with an unreduced benefit. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. 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. On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. The City of Los Angeles offered ERIs in 2009 and 2020. Subscribe to our e-alerts to stay up-to-date on new publications and the latest insights from CBC! 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. Optional services from the NY State Senate: Include a custom message for your Senator? 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. New York, NY 10001 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. 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. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety).. 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. From COLAs to taxes, the Handbook will guide you in retirement. Weve frozen pay increases, frozen hiring, frozen new contracts, temporarily withholding portions of payments. However, these incentives are not without risks. The real issue is whether or not we get federal funding. The New York State Legislature is on its way to finalizing the largest state budget in New Yorks history totaling $212 billion. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety). 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. 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. In 2011, the Citizens Budget Commission issued a reporton the savings the last official state early retirement incentive package brought in. The beneficiaries of the following NYCERS members are covered: Correction Officers, Housing and Transit Police, Uniformed Sanitation members, certain EMTs and TBTA members. Weve already reduced spending by $4 billion year-over-year, Klopott said. New York Citys Proposed ERI New York City, with a fiscal year 2022 budget of $95.6 billion, is facing severe fiscal challenges due Offices MF 9 am 5 Requires the office of alcoholism and substance abuse services to provide This act shall be effective as of June 20, 2022. 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. ERIs provide a financial incentive for an employee to retire. April 14, 2022 A Way to Stop the Bleeding Erie Community College plans The 2009 program was similar to the New York City proposal. Customer Service Center To be eligible, a worker would have to be in a position that can be eliminated. Public workers in New York could have an incentive to retire early under a proposal by a pair of state lawmakers unveiled on Thursday. Moreover, the savings come at the cost of losing 9,311 experienced workers, potentially lowering the level of services.. 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. Your valid home address is used to determine which NY State Senator Represents you. Lowry also expressed concern over the diminishing strength of the education workforce. The budget raises taxes on upper income Albany, NY12207 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. 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. Amounts payable are reduced by payments of any ordinary death benefits. I can unsubscribe at any time. Assemblyman Tom Abinanti (D-Greenburgh) has introduced two bills that address early retirement for state and local government employees. We are looking at a wide array of possibilities, said Freeman Klopott, a spokesman for the NYS Division of the Budget. 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. 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. Your support or opposition to this bill is then shared immediately with the senator who represents you. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. 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. 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. NYSTRS administers a defined benefit plan established by the New York State Legislature. 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. 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. 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. Others might share a personal anecdote about how the bill would affect them or people they care about. To date, CSEA has not seen any Early Retirement Incentives proposed through the legislature that we could support, said Mark Kotzin, CSEA Spokesman. 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. Is there a specific set of circumstances that the budget division is looking for that would prompt such a discussion? WebIf this bill is enacted, insofar as it affects the New York State and Local Employees' Conduct business with us online. 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. 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. WebContact Us. BERS: NYC Board of Education Retirement System ERI: Early Comment moderation is generally performed Monday through Friday. 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. Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration. (Some ERIs offer additional benefits, like extended health coverage). 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. 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. Spectrum: Moderate Partisan Bill (Democrat 8-1). April 22, 2021 Tucked deep into the 2022 state budget was an early This act is effective as of March 1, 2020. Revenue from the sales tax, for instance, dropped 10% statewide. One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. 335 Adams Street, Suite 2300 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). 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.. (Optional). To submit an LBD for a fiscal note, email us at FiscalNotes@nystrs.org. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. However, early retirement incentives are allowed as long as they meet certain requirements. 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. 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. 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.
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