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.. Enacted NYS Budget Details FY2022 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 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) Is there a specific set of circumstances that the budget division is looking for that would prompt such a discussion? Find your Senator and share your views on important issues. WebThe CBC recently analyzed a NYC ERI proposal in the State Legislature (bills Legislation - New York City Employees' Retirement System We recommend using the latest version of IE11, Edge, Chrome, Firefox or Safari. Will NYS offer an early retirement incentive in 2021? 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. 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. One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. 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. 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. In fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. If you have questions, please email anne.alarcon@csi.cuny.edu. 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. 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. Retirement Open Legislation is a forum for New York State legislation. five years from now. Legislation 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. As of today, Governor Cuomo has not proposed any bills which address early retirement incentives. WebWith 20 years of service credit, you can apply for early retirement regardless of your age. Comment moderation is generally performed Monday through Friday. 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. 518-429-2959. 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. Sorry, you need to enable JavaScript to visit this website. Eligible members may not avail themselves of the provisions of both Subpart A and B. Conduct business with us online. 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. The savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). 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. NYSTRS administers a defined benefit plan established by the New York State Legislature. 30-30 47th Avenue, 10th Floor New York State Assembly BERS: NYC Board of Education Retirement System ERI: Early Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. 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 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. Relevant legislation impacting NYSTRS and its members is summarized below. The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction. The other bill provides a similar incentive for educators. Get hyperlocal forecasts, radar and weather alerts. 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 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. (Optional). 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.. 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 Monday-Friday, 8 am 5 pm From elections to Annual Meeting information, everything a Delegate needs to know. All comments are subject to review and community moderation is encouraged. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. 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. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. Inquiry WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. This fiscal note concerns its impact on the New York State Teachers' Retirement System. Early retirement incentives were used by many states and cities during the Great Recession to reduce the workforce and achieve savings. 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 beneficiaries of the following NYCERS members are covered: Correction Officers, Housing and Transit Police, Uniformed Sanitation members, certain EMTs and TBTA members. 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). April 14, 2022 A Way to Stop the Bleeding Erie Community College plans 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. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. WebThe amount of such benefit for an eligible employee with 48 thirty or more years of 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. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. First. However, these incentives are not without risks. 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. WebS05559 Text: STATE OF NEW YORK _____ 5559 2021-2022 Regular Sessions IN SENATE March 11, 2021 _____ Introduced by Sens. First,payments will continue until 2026five years from now. The 2009 program was similar to the New York City proposal. 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. Designed by Elegant Themes | Powered by WordPress, Please wear red in honor and support of our missing and murdered sisters, whether you [], Register Here: https://tinyurl.com/csimalindaloThe discussion will be moderated by Prof. Kristen Addessi, Sociology and Anthropology.For more [], Come hear his story and advocacy for inclusion. Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. This law is effective as of July 1, 2021. However, early retirement incentives are allowed as long as they meet certain requirements. 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. 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? Early Retirement Incentives: Weighing the Risks for Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. Pursuant to 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. This Act authorizes the city of New York and the NYC Board of Education (DOE), to provide a temporary retirement incentive for eligible employees. California Consumer Limit the Use of My Sensitive Personal Information, California Consumer Do Not Sell or Share My Personal Information. 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. Cowboys O-Line Target Steve Avila of TCU Drafted by Rams (Some ERIs offer additional benefits, like extended health coverage). WebMonths of pressure by New York City labor unions, including massive letter-writing The City of Los Angeles offered ERIs in 2009 and 2020. 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. 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. To be eligible, a worker would have to be in a position that can be eliminated. Send me alerts for this bill. Further, certain members not otherwise eligible to retire would qualify for service retirement under this Act with reductions to the retirement benefit. TheCBC recently analyzedaNYC ERIproposal in the State Legislature (billsestablishingsimilar programsfor state and other local employees have also been introduced). 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. To submit an LBD for a fiscal note, email us at FiscalNotes@nystrs.org. 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. Aaron Rodgers Mural Removed in Green Bay: WATCH April 22, 2021 Tucked deep into the 2022 state budget was an early 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. 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. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety).. Moreover, the savings come at the cost of losing 9,311 experienced workers, potentially lowering the level of services.. Sponsors History Same As/Similar To A04548 (Same As) 2022-01-05 - referred to governmental employees New York State Sources Bill Comments Early Retirement Incentives | CBCNY 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. (877) 669-2377 Toll-Free Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Lowry also expressed concern over the diminishing strength of the education workforce. Public workers in New York could have an incentive to retire early under a proposal by a pair of state lawmakers unveiled on Thursday. This week the Budget was agreed upon by the Governor and the State Legislature. 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. WebOne reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. A separate bill that covers early retirement for public workers in New York City was previously introduced. I can unsubscribe at any time. 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. However, they come with a significant cost that might have long-term implications for fiscal stability. 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. To date, CSEA has not seen any Early Retirement Incentives proposed through the legislature that we could support, said Mark Kotzin, CSEA Spokesman. Breaking Down the State Budget Details. New York State Early Retirement Incentive There was no significant legislation enacted in 2007, 2014, 2015 or 2018. The New York City Managerial Employees Association founded in 1968 is a vibrant membership-based organization representing professional managers in New York City government. (18 Lines), View More (312 Lines). Login now. 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. Weve frozen pay increases, frozen hiring, frozen new contracts, temporarily withholding portions of payments. Early Retirement Incentives: Weighing the Risks 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. WebSUMMARY OF PROVISIONS: This legislation creates a retirement incentive for certain WebContact Us. Let public workers retire early without penalty - Times Union Early Retirement Incentives The 2009 program was similar to the New York City proposal. 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. 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. 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. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves 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. Mail your completed form or correspondence to: New York, NY 10001 Will There Be A NYS Retirement Incentive In 2022? The budget raises taxes on upper income So at what point will he? 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 (800) 348-7298. communit@nystrs.org. Only for use by members of the press. NY State Assembly Bill A6486 This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. An Early Retirement Incentive Exists! But, what early retirement incentive age discrimination 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. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. ERIs provide a financial incentive for an employee to retire. 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. Early-Retirement Option For Some City Workers With less than two months left in New York State's legislative session, 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. 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 bill comes as local government finances have been scrambled by the COVID-19 pandemic. 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. 2023, Charter Communications, all rights reserved. CBC is a nonpartisan, nonprofit organization pursuing constructive change in the finances and services of New York City and State. 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 Key findings were: The City of Los Angeles offered ERIs in 2009 and 2020. Optional services from the NY State Senate: Include a custom message for your Senator? At this time neither the City nor the DOE have elected to participate in the incentive. His goal, he says, is to simply try to get all the parties to the table to have this discussion. Public workers in New York could have an incentive to retire early under a Albany, NY12207 Long Island City, NY 11101, Executive 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. The decision to take the ERIs is in the hands of the employees which is an advantage over 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. 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.. WebBut New York City officials have said an early retirement plan could save the cash-strapped city's school district $45 million. Get the best experience and stay connected to your community with our Spectrum News app. Customer Service Center 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. Bill Search and Legislative Information | New York State Assembly Bill Text: NY S02722 | 2021-2022 | General Assembly
