Early-Retirement Option For Some City Workers This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. Customer Service Center However, they come with a significant cost that might have long-term implications for fiscal stability. This act is effective as of March 1, 2020. Early Retirement Incentive 2021 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). Open Legislation is a forum for New York State legislation. To date, CSEA has not seen any Early Retirement Incentives proposed through the legislature that we could support, said Mark Kotzin, CSEA Spokesman. 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. 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. The NYC proposal has two parts: one provides additional pension credits, while the other eliminates an early retirement reduction. 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. Lawmakers consider early retirement for NY public employees Subpart B of the Act allows certain Tier 2, 3 and 4 Members to retire early with an unreduced benefit. 30-30 47th Avenue, 10th Floor New York State Assembly Early Retirement Incentives: Weighing the Risks for 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. 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). 2023, Charter Communications, all rights reserved. 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 law is effective as of July 1, 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. 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. 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. Pursuant to Mail your completed form or correspondence to: (347) 643-3501 TTY, Forms and Correspondence Mailing Address April 14, 2022 A Way to Stop the Bleeding Erie Community College plans Amounts payable are reduced by payments of any ordinary death benefits. Thats really going to dictate everything that we do.. So, while an ERI can save money, there are fiscal risks. 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. 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. (Optional). 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. Relevant legislation impacting NYSTRS and its members is summarized below. Timing matters, he said. New York Citys Proposed ERI New York City, with a fiscal year 2022 budget of $95.6 billion, is facing severe fiscal challenges due WebBut New York City officials have said an early retirement plan could save the cash-strapped city's school district $45 million. Bob Lowry, deputy director for advocacy, research & communications of the New York State Council of School Superintendents, was less dismissive of the idea. With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. 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 New York State Early Retirement Incentive Bill Text: NY S02722 | 2021-2022 | General Assembly ERIs provide a financial incentive for an employee to retire. This fiscal note concerns its impact on the New York State Teachers' Retirement System. The real issue is whether or not we get federal funding. 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. In addition, the act sets forth comprehensive requirements for electronic notarization. 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. His goal, he says, is to simply try to get all the parties to the table to have this discussion. 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 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) Will There Be A NYS Retirement Incentive In 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. Early Retirement | Office of the New York State Comptroller Early retirement incentives were used by many states and cities during the Great Recession to reduce the workforce and achieve savings. Lawmakers Propose Early Retirement Incentives WebThe amount of such benefit for an eligible employee with 48 thirty or more years of Let public workers retire early without penalty - Times Union One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. 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.. Early Retirement Incentives 212-279-2605, 515 Broadway, 4th Floor Submit a Media 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. 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. 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. Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration. Your valid home address is used to determine which NY State Senator Represents you. Login now. California Consumer Limit the Use of My Sensitive Personal Information, California Consumer Do Not Sell or Share My Personal Information. The budget raises taxes on upper income EARLY RETIREMENT INCENTIVE NY State Senate Bill S5529 Learn More. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. In 2011, the Citizens Budget Commission issued a reporton the savings the last official state early retirement incentive package brought in. 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. Send me alerts for this bill. 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. Enacted NYS Budget Details FY2022 WebSUMMARY OF PROVISIONS: This legislation creates a retirement incentive for certain April 22, 2021 Tucked deep into the 2022 state budget was an early 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. 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. 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. Only for use by members of the press. We recommend using the latest version of IE11, Edge, Chrome, Firefox or Safari. Eligible members may not avail themselves of the provisions of both Subpart A and B. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. 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. Breaking Down the State Budget Details