New York City, with a fiscal year 2022 budget of $95.6 billion, isfacing severe fiscal challengesdue to the pandemic and recession. However, these incentives are not without risks. Mail your completed form or correspondence to: Fully completed forms may be placed in a secure Drop Box at NYCERS 340 Jay Street entrance Mon-Fri, 8 am-5 pm. 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. 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. 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. Assemblyman Tom Abinanti (D-Greenburgh) has introduced two bills that address early retirement for state and local government employees. 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. The New York State Legislature has passed budget bills S2509C and The 2009 program was similar to the New York City proposal. 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 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. Get the best experience and stay connected to your community with our Spectrum News app. 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. Optional services from the NY State Senate: Include a custom message for your Senator? The act shall expire and be deemed repealed on December 31, 2022. Retirements in the short term will cut local payrolls, and in the long term, open jobs for those who want to work in government.". 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.. 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. This Act authorizes the city of New York and the NYC Board of Education (DOE), to provide a temporary retirement incentive for eligible employees. Inquiry Eligible members may not avail themselves of the provisions of both Subpart A and B. Key findings were: The City of Los Angeles offered ERIs in 2009 and 2020. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. Typically, retirement incentives are introduced in Albany as Governors Program bills. Early retirement incentives were used by many states and cities during the Great Recession to reduce the workforce and achieve savings. 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. 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. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety). In addition, the act sets forth comprehensive requirements for electronic notarization. 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. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. 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 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. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves Brooklyn, NY 11201-3724. BERS: NYC Board of Education Retirement System ERI: Early 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. 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. 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. Sat & Sun: 6:00 am to 11:00 pm EST/EDT. The savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). However, they come with a significant cost that might have long-term implications for fiscal stability. Subscribe to our e-alerts to stay up-to-date on new publications and the latest insights from CBC! 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. With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. Weve frozen pay increases, frozen hiring, frozen new contracts, temporarily withholding portions of payments. 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. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. 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. 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. 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. Enter a message to your senator. 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? Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration. NYSTRS administers a defined benefit plan established by the New York State Legislature. Comment moderation is generally performed Monday through Friday. 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. 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. Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor 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. His goal, he says, is to simply try to get all the parties to the table to have this discussion. 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 Act does not extend eligibility with respect to retirees. Providing tools allowing you to research pending legislation, stay informed with email alerts, content feeds, and share dynamic reports. (347) 643-3501 TTY, Forms and Correspondence Mailing Address This law is effective as of July 1, 2021. But for a state with an out-year budget gap of over $60 billion, early retirements alone may not make a big difference. 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. All comments are subject to review and community moderation is encouraged. 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. We are already receiving reports of higher than typical teacher retirements, presumably in response to concerns about the pandemic. The money funds education and health care, and is meant to aid the state's economy in its recovery from the COVID-19 pandemic. 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. (800) 348-7298. communit@nystrs.org. 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 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. 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. WebIf this bill is enacted, insofar as it affects the New York State and Local Employees' From COLAs to taxes, the Handbook will guide you in retirement. 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. 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. To date, CSEA has not seen any Early Retirement Incentives proposed through the legislature that we could support, said Mark Kotzin, CSEA Spokesman. Your support or opposition to this bill is then shared immediately with the senator who represents you. Relates to enabling public employers to offer certain temporary retirement incentives for certain public employees. 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 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. On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. Public workers in New York could have an incentive to retire early under a proposal by a pair of state lawmakers unveiled on Thursday. 30-30 47th Avenue, 10th Floor With less than two months left in New York State's legislative session, The New York State Legislature is on its way to finalizing the largest state budget in New Yorks history totaling $212 billion. Get the most out of your NYSTRS membership. 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. 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. The beneficiaries of the following NYCERS members are covered: Correction Officers, Housing and Transit Police, Uniformed Sanitation members, certain EMTs and TBTA members. The 2009 program was similar to the New York City proposal. Will NYS offer an early retirement incentive in 2021? 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. 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. Your valid home address is used to determine which NY State Senator Represents you. The real issue is whether or not we get federal funding. 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. To submit an LBD for a fiscal note, email us at FiscalNotes@nystrs.org. 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. As of today, Governor Cuomo has not proposed any bills which address early retirement incentives. The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction. "The savings are diminished to the extent early retirees are replaced by new hires. 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. Submit a Media 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. 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. If you have questions, please email anne.alarcon@csi.cuny.edu. 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. (Optional). April 14, 2022 A Way to Stop the Bleeding Erie Community College plans WebThe CBC recently analyzed a NYC ERI proposal in the State Legislature (bills 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. 2021-2022 Legislative Session Provides temporary retirement incentive Is there a specific set of circumstances that the budget division is looking for that would prompt such a discussion? Open Legislation is a forum for New York State legislation. 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. Further, certain members not otherwise eligible to retire would qualify for service retirement under this Act with reductions to the retirement benefit. 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. 240 West 35th Street, Suite 302 This act shall be effective as of June 20, 2022. 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. This week the Budget was agreed upon by the Governor and the State Legislature. 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. One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. 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. 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. 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. One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. WebBut New York City officials have said an early retirement plan could save the cash-strapped city's school district $45 million. 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. (18 Lines), View More (312 Lines). 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.. In fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. At this time neither the City nor the DOE have elected to participate in the incentive. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. California Consumer Limit the Use of My Sensitive Personal Information, California Consumer Do Not Sell or Share My Personal Information. 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. I can unsubscribe at any time. 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). 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. Long Island City, NY 11101, Executive 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.. First,payments will continue until 2026five years from now. 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. 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. 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). In 2011, the Citizens Budget Commission issued a reporton the savings the last official state early retirement incentive package brought in. Login now. Sorry, you need to enable JavaScript to visit this website. 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.
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