New York Citys Proposed ERI New York City, with a fiscal year 2022 budget of $95.6 billion, is facing severe fiscal challenges due However, early retirement incentives are allowed as long as they meet certain requirements. LegiScan is an impartial and nonpartisan legislative tracking and reporting service utilizing GAITS and LegiScan API, Senate Civil Service and Pensions Committee, https://www.nysenate.gov/legislation/bills/2021/S4170, https://assembly.state.ny.us/leg/?default_fld=&bn=S04170&term=2021&Summary=Y&Actions=Y&Text=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y#S04170. 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 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 week the Budget was agreed upon by the Governor and the State Legislature. 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. The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction. Home address is used to determine the senate district in which you reside. Enter a message to your senator. 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. 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) 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. WebContact Us. However, they come with a significant cost that might have long-term implications for fiscal stability. 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. The beneficiaries of the following NYCERS members are covered: Correction Officers, Housing and Transit Police, Uniformed Sanitation members, certain EMTs and TBTA members. One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. Key findings were: The City of Los Angeles offered ERIs in 2009 and 2020. 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. WebOne reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. 335 Adams Street, Suite 2300 Public workers in New York could have an incentive to retire early under a This fiscal note concerns its impact on the New York State Teachers' Retirement System. Get the best experience and stay connected to your community with our Spectrum News app. Requires the office of alcoholism and substance abuse services to provide Long Island City, NY 11101, Executive 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). Learn More. April 14, 2022 A Way to Stop the Bleeding Erie Community College plans 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. Monday-Friday, 8 am 5 pm This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety). 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. New York City, with a fiscal year 2022 budget of $95.6 billion, is facing WebIf this bill is enacted, insofar as it affects the New York State and Local Employees' A separate bill that covers early retirement for public workers in New York City was previously introduced. We are already receiving reports of higher than typical teacher retirements, presumably in response to concerns about the 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. 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. Online Availability: Mon Fri: 7:00 to 6:00 pm EST/EDT. WebThe amount of such benefit for an eligible employee with 48 thirty or more years of 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. Conduct business with us online. 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. Bob Lowry, deputy director for advocacy, research & communications of the New York State Council of School Superintendents, was less dismissive of the idea. 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. 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? Albany, NY12207 By contributing or voting you agree to the Terms of Participation and verify you are over 13. 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. 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 are diminished to the extent early retirees are replaced by new hires. One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. 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. Inquiry Eligible members may not avail themselves of the provisions of both Subpart A and B. 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 2009 program was similar to the New York City proposal. 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. (Some ERIs offer additional benefits, like extended health coverage). 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. 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. Learn More. 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. 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. 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. 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 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. Moreover, the savings come at the cost of losing 9,311 experienced workers, potentially lowering the level of services.. This legislation provides an Early Retirement Incentive option, only to certain employees of the City of New York and the 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. 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. Others might share a personal anecdote about how the bill would affect them or people they care about. 2023, Charter Communications, all rights reserved. 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 Municipal Labor Committee since last summer had urged the de Blasio administration to consider an early-retirement incentive at a time when it was WebAs of April 9, 2022, Tier 5 and 6 members only need five years of service credit to be 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. Public workers in New York could have an incentive to retire early under a proposal by a pair of state lawmakers unveiled on Thursday. Timing matters, he said. 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.. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. 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. Sponsors History Same As/Similar To A04548 (Same As) 2022-01-05 - referred to governmental employees New York State Sources Bill Comments Anecdotally, its also become a frequent topic of conversation among older teachers heading back into the classroom this month, some of whom are fearful of contracting COVID-19. Further, certain members not otherwise eligible to retire would qualify for service retirement under this Act with reductions to the retirement benefit. This act is effective as of March 1, 2020. WebWith 20 years of service credit, you can apply for early retirement regardless of your age. Brooklyn, NY 11201-3724. Get hyperlocal forecasts, radar and weather alerts. 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. 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 New York State Legislature has passed budget bills S2509C and 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 April 22, 2021 Tucked deep into the 2022 state budget was an early This Act authorizes the city of New York and the NYC Board of Education (DOE), to provide a temporary retirement incentive for eligible employees. Other levels of government are already looking into early retirement incentives. 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. 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. Weve frozen pay increases, frozen hiring, frozen new contracts, temporarily withholding portions of payments. All comments are subject to review and community moderation is encouraged. Relevant legislation impacting NYSTRS and its members is summarized below. The decision to take the ERIs is in the hands of the employees which is an advantage over furloughs or layoffs. New York, NY 10001 WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves From COLAs to taxes, the Handbook will guide you in retirement. 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. 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. Retirements in the short term will cut local payrolls, and in the long term, open jobs for those who want to work in government.". The 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. Further updates will be provided as more information becomes available. 2023, Charter Communications, all rights reserved. five years from now. 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. WebMonths of pressure by New York City labor unions, including massive letter-writing The 2009 program was similar to the New York City proposal. We recommend using the latest version of IE11, Edge, Chrome, Firefox or Safari. 240 West 35th Street, Suite 302 (347) 643-3501 TTY, Forms and Correspondence Mailing Address This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety).. The act shall expire and be deemed repealed on December 31, 2022. New York City, with a fiscal year 2022 budget of $95.6 billion, isfacing severe fiscal challengesdue to the pandemic and recession. The City of Los Angeles offered ERIs in 2009 and 2020. 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. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. 30-30 47th Avenue, 10th Floor This law is effective as of July 1, 2021. 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. 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. Only for use by members of the press. Submit a Media Typically, retirement incentives are introduced in Albany as Governors Program bills. Get hyperlocal forecasts, radar and weather alerts. 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 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 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. WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. 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. Fully completed forms may be placed in a secure Drop Box at NYCERS 340 Jay Street entrance Mon-Fri, 8 am-5 pm. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. ERIs provide a financial incentive for an employee to retire. Get the most out of your NYSTRS membership. Is there a specific set of circumstances that the budget division is looking for that would prompt such a discussion? Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. The bill comes as local government finances have been scrambled by the COVID-19 pandemic. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. Assemblyman Tom Abinanti (D-Greenburgh) has introduced two bills that address early retirement for state and local government employees. WebThe current Section 212 earnings limit, determined by the state Legislature, is $35,000