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. 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. Typically, retirement incentives are introduced in Albany as Governors Program bills. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety).. NY State Senate Bill S5529 We are already receiving reports of higher than typical teacher retirements, presumably in response to concerns about the pandemic. EARLY RETIREMENT INCENTIVE Bill Search and Legislative Information | New York State Assembly pm Other levels of government are already looking into early retirement incentives. Learn More. 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. 212-279-2605, 515 Broadway, 4th Floor Bob Lowry, deputy director for advocacy, research & communications of the New York State Council of School Superintendents, was less dismissive of the idea. 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. 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. New York, NY 10001 Monday-Friday, 8 am 5 pm 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. The beneficiaries of the following NYCERS members are covered: Correction Officers, Housing and Transit Police, Uniformed Sanitation members, certain EMTs and TBTA members. New York State Assembly At this time neither the City nor the DOE have elected to participate in the incentive. Find your Senator and share your views on important issues. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. Sorry, you need to enable JavaScript to visit this website. On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. Brooklyn, NY 11201-3724. Conduct business with us online. So, while an ERI can save money, there are fiscal risks. 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. Login now. Aaron Rodgers Mural Removed in Green Bay: WATCH (800) 348-7298. communit@nystrs.org. five years from now. Thats really going to dictate everything that we do.. View More We are looking at a wide array of possibilities, said Freeman Klopott, a spokesman for the NYS Division of the Budget. Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. 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. A separate bill that covers early retirement for public workers in New York City was previously introduced. (Some ERIs offer additional benefits, like extended health coverage). Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. Lowry also expressed concern over the diminishing strength of the education workforce. An Early Retirement Incentive Exists! But, what We recommend using the latest version of IE11, Edge, Chrome, Firefox or Safari. 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. Subscribe to our e-alerts to stay up-to-date on new publications and the latest insights from CBC! 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.. Offices MF 9 am 5 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.. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. BERS: NYC Board of Education Retirement System ERI: Early 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. Albany, NY12207 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. 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. The 2009 program was similar to the New York City proposal. 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. One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. If you have questions, please email anne.alarcon@csi.cuny.edu. April 14, 2022 A Way to Stop the Bleeding Erie Community College plans 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. 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. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. 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.. 518-429-2959. In 2011, the Citizens Budget Commission issued a reporton the savings the last official state early retirement incentive package brought in. Early-Retirement Option For Some City Workers 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. 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. Let public workers retire early without penalty - Times Union Send me alerts for this bill. Is there a specific set of circumstances that the budget division is looking for that would prompt such a discussion? 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. 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. Early Retirement Incentives | CBCNY WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves New York Legislature | 2023-2024 | General Assembly | LegiScan Others might share a personal anecdote about how the bill would affect them or people they care about. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. Cowboys O-Line Target Steve Avila of TCU Drafted by Rams Early Retirement | Office of the New York State Comptroller 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. New York City, with a fiscal year 2022 budget of $95.6 billion, isfacing severe fiscal challengesdue to the pandemic and recession. However, early retirement incentives are allowed as long as they meet certain requirements. NYSTRS administers a defined benefit plan established by the New York State Legislature. This law is effective as of July 1, 2021. Online Availability: Mon Fri: 7:00 to 6:00 pm EST/EDT. 30-30 47th Avenue, 10th Floor Early Retirement Incentives: Weighing the Risks for Relevant legislation impacting NYSTRS and its members is summarized below. 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. WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. 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. In fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. WebThe CBC recently analyzed a NYC ERI proposal in the State Legislature (bills WebS05559 Text: STATE OF NEW YORK _____ 5559 2021-2022 Regular Sessions IN SENATE March 11, 2021 _____ Introduced by Sens. 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. 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. However, they come with a significant cost that might have long-term implications for fiscal stability. (347) 643-3000 Within NYC 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. Providing tools allowing you to research pending legislation, stay informed with email alerts, content feeds, and share dynamic reports. Assemblyman Tom Abinanti (D-Greenburgh) has introduced two bills that address early retirement for state and local government employees. April 22, 2021 Tucked deep into the 2022 state budget was an early WebThe current Section 212 earnings limit, determined by the state Legislature, is $35,000 Weve already reduced spending by $4 billion year-over-year, Klopott said. 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.. 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. Your valid home address is used to determine which NY State Senator Represents you. 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. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety). 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. Your support or opposition to this bill is then shared immediately with the senator who represents you. 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. (877) 669-2377 Toll-Free As of today, Governor Cuomo has not proposed any bills which address early retirement incentives. 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. Comment moderation is generally performed Monday through Friday. Get hyperlocal forecasts, radar and weather alerts. The decision to take the ERIs is in the hands of the employees which is an advantage over furloughs or layoffs.