The City of Los Angeles offered ERIs in 2009 and 2020. five years from now. I can unsubscribe at any time. 335 Adams Street, Suite 2300 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. At this time neither the City nor the DOE have elected to participate in the incentive. The real issue is whether or not we get federal funding. 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 The City of Los Angeles offered ERIs in 2009 and 2020. New York, NY 10001 WebSUMMARY OF PROVISIONS: This legislation creates a retirement incentive for certain By contributing or voting you agree to the Terms of Participation and verify you are over 13. Fully completed forms may be placed in a secure Drop Box at NYCERS 340 Jay Street entrance Mon-Fri, 8 am-5 pm. 2023, Charter Communications, all rights reserved. WebAs of April 9, 2022, Tier 5 and 6 members only need five years of service credit to be 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. WebOne reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. Amounts payable are reduced by payments of any ordinary death benefits. 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. 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. 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. Get hyperlocal forecasts, radar and weather alerts. 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. 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. Learn More. As of today, Governor Cuomo has not proposed any bills which address early retirement incentives. Find your Senator and share your views on important issues. View More Conduct business with us online. Offices MF 9 am 5 California Consumer Limit the Use of My Sensitive Personal Information, California Consumer Do Not Sell or Share My Personal Information. Thats really going to dictate everything that we do.. 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.. However, they come with a significant cost that might have long-term implications for fiscal stability. WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. Other levels of government are already looking into early retirement incentives. The budget raises taxes on upper income With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. We are looking at a wide array of possibilities, said Freeman Klopott, a spokesman for the NYS Division of the Budget. The 2009 program was similar to the New York City proposal. 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. 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. His goal, he says, is to simply try to get all the parties to the table to have this discussion. 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. WebThe CBC recently analyzed a NYC ERI proposal in the State Legislature (bills 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. There was no significant legislation enacted in 2007, 2014, 2015 or 2018. Requires the office of alcoholism and substance abuse services to provide Public workers in New York could have an incentive to retire early under a proposal by a pair of state lawmakers unveiled on Thursday. 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) Sat & Sun: 6:00 am to 11:00 pm EST/EDT. 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. Learn More. 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. Is there a specific set of circumstances that the budget division is looking for that would prompt such a discussion? The savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). Timing matters, he said. Sorry, you need to enable JavaScript to visit this website. Bob Lowry, deputy director for advocacy, research & communications of the New York State Council of School Superintendents, was less dismissive of the idea. 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). Weve already reduced spending by $4 billion year-over-year, Klopott said. 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.. 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. Submit a Media So, while an ERI can save money, there are fiscal risks. 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. Originally published by the Government Finance Research Center,University of Illinois Chicago. The beneficiaries of the following NYCERS members are covered: Correction Officers, Housing and Transit Police, Uniformed Sanitation members, certain EMTs and TBTA members. 2021-2022 Legislative Session Provides temporary retirement incentive 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.. Get the best experience and stay connected to your community with our Spectrum News app. Relates to enabling public employers to offer certain temporary retirement incentives for certain public employees. The New York City Managerial Employees Association founded in 1968 is a vibrant membership-based organization representing professional managers in New York City government. 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 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. Login now. So at what point will he? Sponsors History Same As/Similar To A04548 (Same As) 2022-01-05 - referred to governmental employees New York State Sources Bill Comments 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. (18 Lines), View More (312 Lines). (Some ERIs offer additional benefits, like extended health coverage). 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. New York City, with a fiscal year 2022 budget of $95.6 billion, isfacing severe fiscal challengesdue to the pandemic and recession. The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction. Your valid home address is used to determine which NY State Senator Represents you. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. 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. 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. WebApr 23, 2021 | The Bulletin On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. The 2009 program was similar to the New York City proposal. 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. 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 A separate bill that covers early retirement for public workers in New York City was previously introduced. 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. 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. With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. In fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. 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. Pursuant to CBC is a nonpartisan, nonprofit organization pursuing constructive change in the finances and services of New York City and State. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves 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. 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). 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. Long Island City, NY 11101, Executive This act is effective as of March 1, 2020. WebBut New York City officials have said an early retirement plan could save the cash-strapped city's school district $45 million. 518-429-2959. 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. Send me alerts for this bill. Home address is used to determine the senate district in which you reside. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. Your support or opposition to this bill is then shared immediately with the senator who represents you. This law is effective as of September 13, 2021. 2023, Charter Communications, all rights reserved. One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. However, they come with a significant cost that might have long-term implications for fiscal stability. 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. Comment moderation is generally performed Monday through Friday. 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. 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. 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. 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. 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.. From COLAs to taxes, the Handbook will guide you in retirement. 240 West 35th Street, Suite 302 Assemblyman Tom Abinanti (D-Greenburgh) has introduced two bills that address early retirement for state and local government employees. 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. 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.. 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. If you have questions, please email anne.alarcon@csi.cuny.edu. 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. Breaking Down the State Budget Details. The act shall expire and be deemed repealed on December 31, 2022. This week the Budget was agreed upon by the Governor and the State Legislature. However, early retirement incentives are allowed as long as they meet certain requirements. 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. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. WebContact Us. WebS05559 Text: STATE OF NEW YORK _____ 5559 2021-2022 Regular Sessions IN SENATE March 11, 2021 _____ Introduced by Sens. Subpart B of the Act allows certain Tier 2, 3 and 4 Members to retire early with an unreduced benefit. (347) 643-3000 Within NYC Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. 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. 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. NYSTRS administers a defined benefit plan established by the New York State Legislature. 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. 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. 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. 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. 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. WebThe amount of such benefit for an eligible employee with 48 thirty or more years of Mail your completed form or correspondence to: New York City, with a fiscal year 2022 budget of $95.6 billion, is facing TheCBC recently analyzedaNYC ERIproposal in the State Legislature (billsestablishingsimilar programsfor state and other local employees have also been introduced). Lowry also expressed concern over the diminishing strength of the education workforce. To date, CSEA has not seen any Early Retirement Incentives proposed through the legislature that we could support, said Mark Kotzin, CSEA Spokesman. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. Key findings were: The City of Los Angeles offered ERIs in 2009 and 2020. 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. Further updates will be provided as more information becomes available. WebMonths of pressure by New York City labor unions, including massive letter-writing We recommend using the latest version of IE11, Edge, Chrome, Firefox or Safari. 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 other bill provides a similar incentive for educators. But for a state with an out-year budget gap of over $60 billion, early retirements alone may not make a big difference. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves The Act does not extend eligibility with respect to retirees. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. 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. 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. Monday-Friday, 8 am 5 pm 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. 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. 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. The decision to take the ERIs is in the hands of the employees which is an advantage over furloughs or layoffs. 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. 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. Eligible members may not avail themselves of the provisions of both Subpart A and B. First,payments will continue until 2026five years from now. WebWith 20 years of service credit, you can apply for early retirement regardless of your age. Get hyperlocal forecasts, radar and weather alerts. Further, certain members not otherwise eligible to retire would qualify for service retirement under this Act with reductions to the retirement benefit. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety).. 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. BERS: NYC Board of Education Retirement System ERI: Early 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. ERIs provide a financial incentive for an employee to retire. 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. However, these incentives are not without risks. To submit an LBD for a fiscal note, email us at FiscalNotes@nystrs.org. 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. This Act authorizes the city of New York and the NYC Board of Education (DOE), to provide a temporary retirement incentive for eligible employees. Get the best experience and stay connected to your community with our Spectrum News app. 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. Subscribe to our e-alerts to stay up-to-date on new publications and the latest insights from CBC! The New York State Legislature has passed budget bills S2509C and 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. Call Center Hours This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety). Public workers in New York could have an incentive to retire early under a 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.