Sat & Sun: 6:00 am to 11:00 pm EST/EDT. However, these incentives are not without risks. 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. 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. 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. 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. To be eligible, a worker would have to be in a position that can be eliminated. 240 West 35th Street, Suite 302 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. WebBut New York City officials have said an early retirement plan could save the cash-strapped city's school district $45 million. (347) 643-3000 Within NYC 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. (Optional). 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. Contact the Call Center for information. From COLAs to taxes, the Handbook will guide you in retirement. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety).. The New York State Legislature has passed budget bills S2509C and However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. Login now. 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. 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.. Fully completed forms may be placed in a secure Drop Box at NYCERS 340 Jay Street entrance Mon-Fri, 8 am-5 pm. By contributing or voting you agree to the Terms of Participation and verify you are over 13. I can unsubscribe at any time. WebApr 23, 2021 | The Bulletin 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 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. Pursuant to 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. 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. 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. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. However, they come with a significant cost that might have long-term implications for fiscal stability. Get hyperlocal forecasts, radar and weather alerts. However, they come with a significant cost that might have long-term implications for fiscal stability. Key findings were: The City of Los Angeles offered ERIs in 2009 and 2020. New York City, with a fiscal year 2022 budget of $95.6 billion, is facing Get hyperlocal forecasts, radar and weather alerts. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. Get the best experience and stay connected to your community with our Spectrum News app. Eligible members may not avail themselves of the provisions of both Subpart A and B. 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. 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. 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. Relevant legislation impacting NYSTRS and its members is summarized below. 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. So, while an ERI can save money, there are fiscal risks. The primary savings derive from the salaries that would be paid to the employee, assuming that the position is kept vacant or filled by an employee with a lower salary. 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. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. At this time neither the City nor the DOE have elected to participate in the incentive. Others might share a personal anecdote about how the bill would affect them or people they care about. 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. WebThe amount of such benefit for an eligible employee with 48 thirty or more years of 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. 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. Submit a Media WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves five years from now. Only for use by members of the press. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. 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. 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. The bill comes as local government finances have been scrambled by the COVID-19 pandemic. TheCBC recently analyzedaNYC ERIproposal in the State Legislature (billsestablishingsimilar programsfor state and other local employees have also been introduced). WebThe current Section 212 earnings limit, determined by the state Legislature, is $35,000 2023, Charter Communications, all rights reserved. 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. 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. 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. Subpart B of the Act allows certain Tier 2, 3 and 4 Members to retire early with an unreduced benefit. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. First. WebSUMMARY OF PROVISIONS: This legislation creates a retirement incentive for certain 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. 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. Mail your completed form or correspondence to: Learn More. However, early retirement incentives are allowed as long as they meet certain requirements. The City of Los Angeles offered ERIs in 2009 and 2020. Further updates will be provided as more information becomes available. The New York City Managerial Employees Association founded in 1968 is a vibrant membership-based organization representing professional managers in New York City government. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. 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. Long Island City, NY 11101, Executive 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. Requires the office of alcoholism and substance abuse services to provide 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) In 2011, the Citizens Budget Commission issued a reporton the savings the last official state early retirement incentive package brought in. WebOne reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. ERIs provide a financial incentive for an employee to retire. The New York State Legislature is on its way to finalizing the largest state budget in New Yorks history totaling $212 billion. To date, CSEA has not seen any Early Retirement Incentives proposed through the legislature that we could support, said Mark Kotzin, CSEA Spokesman. The other bill provides a similar incentive for educators. 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. This law is effective as of September 13, 2021. Serving New York Educators Since 1921 Serving New York Educators Since 1921. We are looking at a wide array of possibilities, said Freeman Klopott, a spokesman for the NYS Division of the Budget. 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? 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. As of today, Governor Cuomo has not proposed any bills which address early retirement incentives. 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. Sponsors History Same As/Similar To A04548 (Same As) 2022-01-05 - referred to governmental employees New York State Sources Bill Comments BERS: NYC Board of Education Retirement System ERI: Early WebContact Us. 335 Adams Street, Suite 2300 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. His goal, he says, is to simply try to get all the parties to the table to have this discussion. 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. 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. 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. Timing matters, he said. (18 Lines), View More (312 Lines). Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. Public workers in New York could have an incentive to retire early under a proposal by a pair of state lawmakers unveiled on Thursday. We are already receiving reports of higher than typical teacher retirements, presumably in response to concerns about the pandemic. (800) 348-7298. communit@nystrs.org. 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. The decision to take the ERIs is in the hands of the employees which is an advantage over furloughs or layoffs., The primary savings derive from the salaries that would be paid to the employee, assuming that the position is kept vacant or filled by an employee with a lower salary., 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. 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. With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. 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.. 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 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. 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. 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. One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. (347) 643-3501 TTY, Forms and Correspondence Mailing Address 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 Open Legislation is a forum for New York State legislation. Your support or opposition to this bill is then shared immediately with the senator who represents you. 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. WebMonths of pressure by New York City labor unions, including massive letter-writing 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. 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. 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. 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. Amounts payable are reduced by payments of any ordinary death benefits. 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. Conduct business with us online. The real issue is whether or not we get federal funding. 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. In order to be valid the early retirement incentive must: Be voluntary; Set a minimum age or years of service to be eligible; Offer the incentives for a limited period of time and only to a certain set of employees; The last three requirements are 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. We recommend using the latest version of IE11, Edge, Chrome, Firefox or Safari. 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. In fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. Bob Lowry, deputy director for advocacy, research & communications of the New York State Council of School Superintendents, was less dismissive of the idea. Inquiry WebWith 20 years of service credit, you can apply for early retirement regardless of your age. 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 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. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. The savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). 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. Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration. Send me alerts for this bill. WebThe CBC recently analyzed a NYC ERI proposal in the State Legislature (bills This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. This Act authorizes the city of New York and the NYC Board of Education (DOE), to provide a temporary retirement incentive for eligible employees. 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 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.. 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. 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. Weve already reduced spending by $4 billion year-over-year, Klopott said. WebIf this bill is enacted, insofar as it affects the New York State and Local Employees' (877) 669-2377 Toll-Free This fiscal note concerns its impact on the New York State Teachers' Retirement System. All comments are subject to review and community moderation is encouraged. Online Availability: Mon Fri: 7:00 to 6:00 pm EST/EDT. This act shall be effective as of June 20, 2022. Brooklyn, NY 11201-3724. 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 addition, the act sets forth comprehensive requirements for electronic notarization. This act is effective as of March 1, 2020. Other levels of government are already looking into 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.