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. 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? To submit an LBD for a fiscal note, email us at FiscalNotes@nystrs.org. New York City, with a fiscal year 2022 budget of $95.6 billion, isfacing severe fiscal challengesdue to the pandemic and recession. Learn More. 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. This week the Budget was agreed upon by the Governor and the State Legislature. Like what you're reading? 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. 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. 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. This fiscal note concerns its impact on the New York State Teachers' Retirement System. 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.. 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. 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) The decision to take the ERIs is in the hands of the employees which is an advantage over furloughs or layoffs. 212-279-2605, 515 Broadway, 4th Floor 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. So, while an ERI can save money, there are fiscal risks. Further updates will be provided as more information becomes available. The New York City Managerial Employees Association founded in 1968 is a vibrant membership-based organization representing professional managers in New York City government. 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. However, they come with a significant cost that might have long-term implications for fiscal stability. Weve already reduced spending by $4 billion year-over-year, Klopott said. By contributing or voting you agree to the Terms of Participation and verify you are over 13. Open Legislation is a forum for New York State legislation. So at what point will he? 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. (877) 669-2377 Toll-Free Early Retirement Incentives: Weighing the Risks 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. 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. First,payments will continue until 2026five years from now. 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. 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). New York State Assembly Governor Signs Early Retirement Incentive (ERI) Into Law At this time neither the City nor the DOE have elected to participate in the incentive. 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.. TheCBC recently analyzedaNYC ERIproposal in the State Legislature (billsestablishingsimilar programsfor state and other local employees have also been introduced). 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. Conduct business with us online. New York City, with a fiscal year 2022 budget of $95.6 billion, is facing 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. NY State Assembly Bill A6486 Other levels of government are already looking into early retirement incentives. 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. Online Availability: Mon Fri: 7:00 to 6:00 pm EST/EDT. I can unsubscribe at any time. Providing tools allowing you to research pending legislation, stay informed with email alerts, content feeds, and share dynamic reports. Aaron Rodgers Mural Removed in Green Bay: WATCH Monday-Friday, 8 am 5 pm Public workers in New York could have an incentive to retire early under a Early Retirement Incentive Approved by NY State Legislature There was no significant legislation enacted in 2007, 2014, 2015 or 2018. 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. Inquiry Submit a Media Spectrum: Moderate Partisan Bill (Democrat 8-1). With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. Get the best experience and stay connected to your community with our Spectrum News app. WebAs of April 9, 2022, Tier 5 and 6 members only need five years of service credit to be (Some ERIs offer additional benefits, like extended health coverage). 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. Login now. early retirement incentive age discrimination Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. WebContact Us. WebMonths of pressure by New York City labor unions, including massive letter-writing NYSTRS administers a defined benefit plan established by the New York State Legislature. Only for use by members of the press. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Let public workers retire early without penalty - Times Union 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). From elections to Annual Meeting information, everything a Delegate needs to know. 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 Enter a message to your senator. The savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). We are looking at a wide array of possibilities, said Freeman Klopott, a spokesman for the NYS Division of the Budget. This act is effective as of March 1, 2020. WebSUMMARY OF PROVISIONS: This legislation creates a retirement incentive for certain 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 act shall expire and be deemed repealed on December 31, 2022. 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. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. 335 Adams Street, Suite 2300 WebApr 23, 2021 | The Bulletin On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. Your support or opposition to this bill is then shared immediately with the senator who represents you. Early-Retirement Option For Some City Workers five years from now. Breaking Down the State Budget Details Legislation Retirement WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. 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. Is there a specific set of circumstances that the budget division is looking for that would prompt such a discussion? The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. ERIs provide a financial incentive for an employee to retire. 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. Sponsors History Same As/Similar To A04548 (Same As) 2022-01-05 - referred to governmental employees New York State Sources Bill Comments View More 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. New York, NY 10001 The New York State Legislature is on its way to finalizing the largest state budget in New Yorks history totaling $212 billion. 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. 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. WebIf this bill is enacted, insofar as it affects the New York State and Local 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. Breaking Down the State Budget Details. WebThe current Section 212 earnings limit, determined by the state Legislature, is $35,000 Further, certain members not otherwise eligible to retire would qualify for service retirement under this Act with reductions to the retirement benefit. Brooklyn, NY 11201-3724. 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.. 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. Get the most out of your NYSTRS membership. 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. Sat & Sun: 6:00 am to 11:00 pm EST/EDT. 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. To date, CSEA has not seen any Early Retirement Incentives proposed through the legislature that we could support, said Mark Kotzin, CSEA Spokesman. 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. 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. WebBut New York City officials have said an early retirement plan could save the cash-strapped city's school district $45 million. Albany, NY12207 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. 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 budget raises taxes on upper income 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.. Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration. 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. 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. New York State Early Retirement Incentive Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. BERS: NYC Board of Education Retirement System ERI: Early Amounts payable are reduced by payments of any ordinary death benefits. Requires the office of alcoholism and substance abuse services to provide April 14, 2022 A Way to Stop the Bleeding Erie Community College plans Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. Key findings were: The City of Los Angeles offered ERIs in 2009 and 2020. 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. Fully completed forms may be placed in a secure Drop Box at NYCERS 340 Jay Street entrance Mon-Fri, 8 am-5 pm. (Optional). His goal, he says, is to simply try to get all the parties to the table to have this discussion. WebOne reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. 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. Subscribe to our e-alerts to stay up-to-date on new publications and the latest insights from CBC! Your valid home address is used to determine which NY State Senator Represents you. Optional services from the NY State Senate: Include a custom message for your Senator? 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. 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. Send me alerts for this bill. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves 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. Moreover, the savings come at the cost of losing 9,311 experienced workers, potentially lowering the level of services.. Lawmakers Propose Early Retirement Incentives 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 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 Weve frozen pay increases, frozen hiring, frozen new contracts, temporarily withholding portions of payments. One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. 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. (800) 348-7298. communit@nystrs.org. "The savings are diminished to the extent early retirees are replaced by new hires. 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. To be eligible, a worker would have to be in a position that can be eliminated. In fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. 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. Find your Senator and share your views on important issues. An Early Retirement Incentive Exists! But, what 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. April 22, 2021 Tucked deep into the 2022 state budget was an early Timing matters, he said. Each component is wholly 5 contained within a Part identified as Parts A and B. But for a state with an out-year budget gap of over $60 billion, early retirements alone may not make a big difference. Early Retirement Incentive 2021 The Act does not extend eligibility with respect to retirees. This law is effective as of July 1, 2021. Bill Text: NY S02722 | 2021-2022 | General Assembly 30-30 47th Avenue, 10th Floor With less than two months left in New York State's legislative session, (18 Lines), View More (312 Lines). Originally published by the Government Finance Research Center,University of Illinois Chicago. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves The other bill provides a similar incentive for educators. California Consumer Limit the Use of My Sensitive Personal Information, California Consumer Do Not Sell or Share My Personal Information. 2021-2022 Legislative Session Provides temporary retirement incentive 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. This law is effective as of September 13, 2021. 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 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. New York City Employees' Retirement System New York Citys Proposed ERI New York City, with a fiscal year 2022 budget of $95.6 billion, is facing severe fiscal challenges due 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. (347) 643-3501 TTY, Forms and Correspondence Mailing Address 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. The City of Los Angeles offered ERIs in 2009 and 2020. Early Retirement Incentives: Weighing the Risks for 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. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety).. 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. Bob Lowry, deputy director for advocacy, research & communications of the New York State Council of School Superintendents, was less dismissive of the idea. Will There Be A NYS Retirement Incentive In 2022? (Some ERIs offer additional benefits, like extended health coverage). 240 West 35th Street, Suite 302 Long Island City, NY 11101, Executive If you have questions, please email anne.alarcon@csi.cuny.edu. Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings.
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