Call Center Hours 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. 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. WebWith 20 years of service credit, you can apply for early retirement regardless of your age. 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. (347) 643-3501 TTY, Forms and Correspondence Mailing Address 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. 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 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. 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. 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. Others might share a personal anecdote about how the bill would affect them or people they care about. Other levels of government are already looking into early retirement incentives. 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. Only for use by members of the press. 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. This act shall be effective as of June 20, 2022. 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. Sorry, you need to enable JavaScript to visit this website. This law is effective as of September 13, 2021. Learn More. New York City, with a fiscal year 2022 budget of $95.6 billion, is facing 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. Inquiry Get the most out of your NYSTRS membership. This week the Budget was agreed upon by the Governor and the State Legislature. 518-429-2959. 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.. 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). However, they come with a significant cost that might have long-term implications for fiscal stability. 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. 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. 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. Early retirement incentives were used by many states and cities during the Great Recession to reduce the workforce and achieve savings. 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. Learn More. (Some ERIs offer additional benefits, like extended health coverage). Comment moderation is generally performed Monday through Friday. 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. Key findings were: The City of Los Angeles offered ERIs in 2009 and 2020. This Act amends the Retirement and Social Security Law and the New York City Administrative Code to allow for the electronic submission of a notice that a member participated in World Trade Center Rescue, Recovery or Clean-up Operations for a qualifying period. We are already receiving reports of higher than typical teacher retirements, presumably in response to concerns about the pandemic. 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.. 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. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. This law is effective as of July 1, 2021. New York City, with a fiscal year 2022 budget of $95.6 billion, isfacing severe fiscal challengesdue to the pandemic and recession. 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. 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. Sponsors History Same As/Similar To A04548 (Same As) 2022-01-05 - referred to governmental employees New York State Sources Bill Comments Breaking Down the State Budget Details. 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.. 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. "The savings are diminished to the extent early retirees are replaced by new hires. Get hyperlocal forecasts, radar and weather alerts. The City of Los Angeles offered ERIs in 2009 and 2020. Is there a specific set of circumstances that the budget division is looking for that would prompt such a discussion? Further updates will be provided as more information becomes available. 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.. The New York State Legislature has passed budget bills S2509C and Public workers in New York could have an incentive to retire early under a proposal by a pair of state lawmakers unveiled on Thursday. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. Open Legislation is a forum for New York State legislation. 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 As of today, Governor Cuomo has not proposed any bills which address early retirement incentives. Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration. 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. 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. 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. April 14, 2022 A Way to Stop the Bleeding Erie Community College plans WebApr 23, 2021 | The Bulletin On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. To submit an LBD for a fiscal note, email us at FiscalNotes@nystrs.org. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. Login now. Lowry also expressed concern over the diminishing strength of the education workforce. If you have questions, please email anne.alarcon@csi.cuny.edu. 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. 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. However, these incentives are not without risks. With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. The other bill provides a similar incentive for educators. WebThe CBC recently analyzed a NYC ERI proposal in the State Legislature (bills 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 savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. 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. Relevant legislation impacting NYSTRS and its members is summarized below. Fully completed forms may be placed in a secure Drop Box at NYCERS 340 Jay Street entrance Mon-Fri, 8 am-5 pm. WebThe amount of such benefit for an eligible employee with 48 thirty or more years of 240 West 35th Street, Suite 302 Sat & Sun: 6:00 am to 11:00 pm EST/EDT. WebAs of April 9, 2022, Tier 5 and 6 members only need five years of service credit to be 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. 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 To be eligible, a worker would have to be in a position that can be eliminated. 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. Submit a Media WebOne reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. 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. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. Providing tools allowing you to research pending legislation, stay informed with email alerts, content feeds, and share dynamic reports. Conduct business with us online. Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. TheCBC recently analyzedaNYC ERIproposal in the State Legislature (billsestablishingsimilar programsfor state and other local employees have also been introduced). 335 Adams Street, Suite 2300 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.. 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. Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. The savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). 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 (347) 643-3000 Within NYC 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? Spectrum: Moderate Partisan Bill (Democrat 8-1). 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. 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. Send me alerts for this bill. Typically, retirement incentives are introduced in Albany as Governors Program bills. A separate bill that covers early retirement for public workers in New York City was previously introduced. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. First. Will NYS offer an early retirement incentive in 2021? The real issue is whether or not we get federal funding. The bill comes as local government finances have been scrambled by the COVID-19 pandemic. 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. The budget raises taxes on upper income This legislation provides an Early Retirement Incentive option, only to certain employees of the City of New York and the Revenue from the sales tax, for instance, dropped 10% statewide. At this time neither the City nor the DOE have elected to participate in the incentive. 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. 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. 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. 2023, Charter Communications, all rights reserved. WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. So at what point will he? 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. Enter a message to your senator. One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. Get the best experience and stay connected to your community with our Spectrum News app. 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. Weve already reduced spending by $4 billion year-over-year, Klopott said. 30-30 47th Avenue, 10th Floor Thats really going to dictate everything that we do.. 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. 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. The Act does not extend eligibility with respect to retirees. Offices MF 9 am 5 This Act authorizes the city of New York and the NYC Board of Education (DOE), to provide a temporary retirement incentive for eligible employees. By Ana Champeny, Director of City Studies, Citizens Budget Commission, 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. 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. On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. From COLAs to taxes, the Handbook will guide you in retirement. With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves 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 City of Los Angeles offered ERIs in 2009 and 2020. The 2009 program was similar to the New York City proposal. WebThe current Section 212 earnings limit, determined by the state Legislature, is $35,000 Albany, NY12207 By contributing or voting you agree to the Terms of Participation and verify you are over 13. The billbacked by Sen. Peter Harckham and Assemblyman Tom Abinanti would create early retirement incentives for workers 55 and older who have 10 years of service with state or workers with 25 years of government service. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety).. CBC is a nonpartisan, nonprofit organization pursuing constructive change in the finances and services of New York City and State. However, early retirement incentives are allowed as long as they meet certain requirements. 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. (800) 348-7298. communit@nystrs.org. Each component is wholly 5 contained within a Part identified as Parts A and B. 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. WebIf this bill is enacted, insofar as it affects the New York State and Local Employees' In 2011, the Citizens Budget Commission issued a reporton the savings the last official state early retirement incentive package brought in. Long Island City, NY 11101, Executive It is better that longtime employees retire with guaranteed income than governments be forced to lay off employees who then seek unemployment benefits, said Abinanti. Contact the Call Center for information. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. 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. Optional services from the NY State Senate: Include a custom message for your Senator? But the states largest public employees union, Civil Service Employees Association (CSEA), doesnt appear keen on starting any conversations about early retirement incentives which wouldnt apply to all members. Eligible members may not avail themselves of the provisions of both Subpart A and B. 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. 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. 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. Assemblyman Tom Abinanti (D-Greenburgh) has introduced two bills that address early retirement for state and local government employees. Moreover, the savings come at the cost of losing 9,311 experienced workers, potentially lowering the level of services.. Bob Lowry, deputy director for advocacy, research & communications of the New York State Council of School Superintendents, was less dismissive of the idea. The money funds education and health care, and is meant to aid the state's economy in its recovery from 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.". Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. The 2009 program was similar to the New York City proposal. His goal, he says, is to simply try to get all the parties to the table to have this discussion. 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. One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. Customer Service Center The New York State Legislature is on its way to finalizing the largest state budget in New Yorks history totaling $212 billion. 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. 2021-2022 Legislative Session Provides temporary retirement incentive 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. NYSTRS administers a defined benefit plan established by the New York State Legislature. In addition, the act sets forth comprehensive requirements for electronic notarization. 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. 2023, Charter Communications, all rights reserved. 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. California Consumer Limit the Use of My Sensitive Personal Information, California Consumer Do Not Sell or Share My Personal Information. Get the best experience and stay connected to your community with our Spectrum News app. 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. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. five years from now. April 22, 2021 Tucked deep into the 2022 state budget was an early Like what you're reading? This act is effective as of March 1, 2020. (877) 669-2377 Toll-Free Public workers in New York could have an incentive to retire early under a (Some ERIs offer additional benefits, like extended health coverage). WebContact Us. Get hyperlocal forecasts, radar and weather alerts. 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. WebSUMMARY OF PROVISIONS: This legislation creates a retirement incentive for certain WebS05559 Text: STATE OF NEW YORK _____ 5559 2021-2022 Regular Sessions IN SENATE March 11, 2021 _____ Introduced by Sens. Pursuant to This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety). 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. Originally published by the Government Finance Research Center,University of Illinois Chicago. 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. Requires the office of alcoholism and substance abuse services to provide
