Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. 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. Learn More. (Some ERIs offer additional benefits, like extended health coverage). One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. BERS: NYC Board of Education Retirement System ERI: Early Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. To submit an LBD for a fiscal note, email us at FiscalNotes@nystrs.org. 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. Revenue from the sales tax, for instance, dropped 10% statewide. 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. 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. 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 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. 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. 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 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. Your support or opposition to this bill is then shared immediately with the senator who represents you. Breaking Down the State Budget Details. The money funds education and health care, and is meant to aid the state's economy in its recovery from the COVID-19 pandemic. 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. 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. 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. WebThe current Section 212 earnings limit, determined by the state Legislature, is $35,000 However, these incentives are not without risks. His goal, he says, is to simply try to get all the parties to the table to have this discussion. The New York State Legislature is on its way to finalizing the largest state budget in New Yorks history totaling $212 billion. 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 Long Island City, NY 11101, Executive Get hyperlocal forecasts, radar and weather alerts. 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 (ERIs) are offered by state and local governments, often during fiscal distress, to reduce headcount and achieve savings, while avoiding furloughs or layoffs. 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. 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. 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. Public workers in New York could have an incentive to retire early under a proposal by a pair of state lawmakers unveiled on Thursday. 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 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. Call Center Hours This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. WebWith 20 years of service credit, you can apply for early retirement regardless of your age. 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 2009 program was similar to the New York City proposal. Using those data points and a set of assumptions about fringe benefits and replacement hiring, the CBC simulated the costs and savings from 10,000 separations under the ERI compared to 10,000 voluntary separations. The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction. pm However, early retirement incentives are allowed as long as they meet certain requirements. Spectrum: Moderate Partisan Bill (Democrat 8-1). So, while an ERI can save money, there are fiscal risks. 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. 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. This act shall be effective as of June 20, 2022. The budget raises taxes on upper income View More 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. (Some ERIs offer additional benefits, like extended health coverage). 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. To date, CSEA has not seen any Early Retirement Incentives proposed through the legislature that we could support, said Mark Kotzin, CSEA Spokesman. 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. Relevant legislation impacting NYSTRS and its members is summarized below. WebApr 23, 2021 | The Bulletin On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. 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. Albany, NY12207 (347) 643-3501 TTY, Forms and Correspondence Mailing Address Contact the Call Center for information. 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 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 decision to take the ERIs is in the hands of the employees which is an advantage over furloughs or layoffs. Is there a specific set of circumstances that the budget division is looking for that would prompt such a discussion? April 22, 2021 Tucked deep into the 2022 state budget was an early Others might share a personal anecdote about how the bill would affect them or people they care about. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. First, payments will continue until 2026five years from now. This fiscal note concerns its impact on the New York State Teachers' Retirement System. WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. 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. 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. 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 fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. Online Availability: Mon Fri: 7:00 to 6:00 pm EST/EDT. 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. With less than two months left in New York State's legislative session, Send me alerts for this bill. Sponsors History Same As/Similar To A04548 (Same As) 2022-01-05 - referred to governmental employees New York State Sources Bill Comments 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.. Timing matters, he said. 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. Assemblyman Tom Abinanti (D-Greenburgh) has introduced two bills that address early retirement for state and local government employees. Requires the office of alcoholism and substance abuse services to provide However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. To be eligible, a worker would have to be in a position that can be eliminated. 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 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. 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. Subscribe to our e-alerts to stay up-to-date on new publications and the latest insights from CBC! 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. All comments are subject to review and community moderation is encouraged. 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 bill comes as local government finances have been scrambled by the COVID-19 pandemic. Pursuant to The savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. Originally published by the Government Finance Research Center,University of Illinois Chicago. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. 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. Enter a message to your senator. Typically, retirement incentives are introduced in Albany as Governors Program bills. In 2011, the Citizens Budget Commission issued a reporton the savings the last official state early retirement incentive package brought in. five years from now. If you have questions, please email anne.alarcon@csi.cuny.edu. Thats really going to dictate everything that we do.. Bob Lowry, deputy director for advocacy, research & communications of the New York State Council of School Superintendents, was less dismissive of the idea. Retirements in the short term will cut local payrolls, and in the long term, open jobs for those who want to work in government.". 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. This act is effective as of March 1, 2020. The Act does not extend eligibility with respect to retirees. NYSTRS administers a defined benefit plan established by the New York State Legislature. Amounts payable are reduced by payments of any ordinary death benefits. (800) 348-7298. communit@nystrs.org. 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. However, they come with a significant cost that might have long-term implications for fiscal stability. 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. (Optional). TheCBC recently analyzedaNYC ERIproposal in the State Legislature (billsestablishingsimilar programsfor state and other local employees have also been introduced). Relates to enabling public employers to offer certain temporary retirement incentives for certain public employees. Optional services from the NY State Senate: Include a custom message for your Senator? 212-279-2605, 515 Broadway, 4th Floor Serving New York Educators Since 1921 Serving New York Educators Since 1921. The act shall expire and be deemed repealed on December 31, 2022.

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