Part of the Citys budget-balancing plan is to achieve $1 billion in recurring annual labor savings. His goal, he says, is to simply try to get all the parties to the table to have this discussion. Other levels of government are already looking into early retirement incentives. 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. Relevant legislation impacting NYSTRS and its members is summarized below. Eligible members may not avail themselves of the provisions of both Subpart A and B. Monday-Friday, 8 am 5 pm 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. Submit a Media 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.. 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. This law is effective as of September 13, 2021. 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.. 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. Customer Service Center This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. Each component is wholly 5 contained within a Part identified as Parts A and B. WebThe current Section 212 earnings limit, determined by the state Legislature, is $35,000 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. 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. Subscribe to our e-alerts to stay up-to-date on new publications and the latest insights from CBC! I can unsubscribe at any time. WebApr 23, 2021 | The Bulletin On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. 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. We are looking at a wide array of possibilities, said Freeman Klopott, a spokesman for the NYS Division of the Budget. Weve frozen pay increases, frozen hiring, frozen new contracts, temporarily withholding portions of payments. 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. 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. This act amends the Executive Law, by adding 137-a, to allow notarizations to be done electronically with the use of video conference technology. five years from now. From elections to Annual Meeting information, everything a Delegate needs to know. 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. 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. (Some ERIs offer additional benefits, like extended health coverage). 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. As of today, Governor Cuomo has not proposed any bills which address early retirement incentives. 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. 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. The 2009 program was similar to the New York City proposal. April 14, 2022 A Way to Stop the Bleeding Erie Community College plans Offices MF 9 am 5 Call Center Hours This week the Budget was agreed upon by the Governor and the State Legislature. Send me alerts for this bill. 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. 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. Sponsors History Same As/Similar To A04548 (Same As) 2022-01-05 - referred to governmental employees New York State Sources Bill Comments 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. We are already receiving reports of higher than typical teacher retirements, presumably in response to concerns about the pandemic. The 2009 program was similar to the New York City proposal. 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. To be eligible, a worker would have to be in a position that can be eliminated. Moreover, the savings come at the cost of losing 9,311 experienced workers, potentially lowering the level of services.. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. 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. One reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. The bill comes as local government finances have been scrambled by the COVID-19 pandemic. 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. 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 From COLAs to taxes, the Handbook will guide you in retirement. 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. Spectrum: Moderate Partisan Bill (Democrat 8-1). The decision to take the ERIs is in the hands of the employees which is an advantage over furloughs or layoffs. But for a state with an out-year budget gap of over $60 billion, early retirements alone may not make a big difference. CBC is a nonpartisan, nonprofit organization pursuing constructive change in the finances and services of New York City and State. (800) 348-7298. communit@nystrs.org. (347) 643-3000 Within NYC 212-279-2605, 515 Broadway, 4th Floor 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. (18 Lines), View More (312 Lines). WebIf this bill is enacted, insofar as it affects the New York State and Local Employees' ERIs provide a financial incentive for an employee to retire. Login now. Check the latest closings and delays for schools, business, and churches around CNY and the Mohawk Valley. Get the best experience and stay connected to your community with our Spectrum News app. 30-30 47th Avenue, 10th Floor This act shall be effective as of June 20, 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. A separate bill that covers early retirement for public workers in New York City was previously introduced. (Optional). Sat & Sun: 6:00 am to 11:00 pm EST/EDT. The Citizens Budget Commissions (CBC)recent analysis of a proposed ERI for New York City municipal employeesconcluded that while an ERI can induce employees to leave city employment quickly, it is a more costly workforce reduction strategy than attrition or layoffs. 518-429-2959. 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. Pursuant to Get hyperlocal forecasts, radar and weather alerts. TheCBC recently analyzedaNYC ERIproposal in the State Legislature (billsestablishingsimilar programsfor state and other local employees have also been introduced). Enter a message to your senator. 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. 2023, Charter Communications, all rights reserved. We recommend using the latest version of IE11, Edge, Chrome, Firefox or Safari. 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. 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. Requires the office of alcoholism and substance abuse services to provide However, they come with a significant cost that might have long-term implications for fiscal stability. 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. 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. On Monday, April 19, 2021, Chapter 59 of the Laws of 2021 was signed into New York State Law. WebWhether youre a member, retiree or participating employer, Retirement Online gives you a convenient and secure way to do business with the Retirement System. 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. Mail your completed form or correspondence to: 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. With less than two months left in New York State's legislative session, Get the most out of your NYSTRS membership. The other bill provides a similar incentive for educators. Brooklyn, NY 11201-3724. 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. 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. One bill provides a temporary retirement incentive for certain public employees older than 55 with 25 years of service. 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. Learn More. If you have questions, please email anne.alarcon@csi.cuny.edu. Fully completed forms may be placed in a secure Drop Box at NYCERS 340 Jay Street entrance Mon-Fri, 8 am-5 pm. Thats really going to dictate everything that we do.. New York, NY 10001 Albany, NY12207 Providing tools allowing you to research pending legislation, stay informed with email alerts, content feeds, and share dynamic reports. So, while an ERI can save money, there are fiscal risks. Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration. 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. Originally published by the Government Finance Research Center,University of Illinois Chicago. Your support or opposition to this bill is then shared immediately with the senator who represents you. Amounts payable are reduced by payments of any ordinary death benefits. This law is effective as of April 19, 2021, and shall expire and be deemed repealed on April 19, 2022. 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. Sorry, you need to enable JavaScript to visit this website. 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. Relates to enabling public employers to offer certain temporary retirement incentives for certain public employees. 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 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. 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. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety).. The City of Los Angeles offered ERIs in 2009 and 2020. Your valid home address is used to determine which NY State Senator Represents you. 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. With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. 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. 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. In 2011, the Citizens Budget Commission issued a reporton the savings the last official state early retirement incentive package brought in. View More 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. The City of Los Angeles offered ERIs in 2009 and 2020. Bob Lowry, deputy director for advocacy, research & communications of the New York State Council of School Superintendents, was less dismissive of the idea. WebThe amount of such benefit for an eligible employee with 48 thirty or more years of Timing matters, he said. 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. Inquiry 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. Conduct business with us online. Revenue from the sales tax, for instance, dropped 10% statewide. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Typically, retirement incentives are introduced in Albany as Governors Program bills. In fact, the Government Finance Officers Association (GFOA) issued anadvisorythat recommends against using ERIs. 2023, Charter Communications, all rights reserved. However, repayment to the pension plan was spread out over 15 years, beginning in 2011, which has two important ramifications. 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. 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. This legislation provides an Early Retirement Incentive option, only to certain employees of the City of New York and the 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. 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). Key findings were: The City of Los Angeles offered ERIs in 2009 and 2020. 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 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.. Comment moderation is generally performed Monday through Friday. BERS: NYC Board of Education Retirement System ERI: Early Early retirement incentives were used by many states and cities during the Great Recession to reduce the workforce and achieve savings. 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. WebUpdated by the minute, our Dallas Cowboys NFL Tracker: News and views and moves 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 money funds education and health care, and is meant to aid the state's economy in its recovery from the COVID-19 pandemic. 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 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? 335 Adams Street, Suite 2300 Serving New York Educators Since 1921 Serving New York Educators Since 1921. Learn More. 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. Get the best experience and stay connected to your community with our Spectrum News app. All comments are subject to review and community moderation is encouraged. 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. Others might share a personal anecdote about how the bill would affect them or people they care about. 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. New York City, with a fiscal year 2022 budget of $95.6 billion, isfacing severe fiscal challengesdue to the pandemic and recession. 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 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. WebOne reason the GFOA cautions against ERIs is that governments can overstate the savings and understate the costs. 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. WebS05559 Text: STATE OF NEW YORK _____ 5559 2021-2022 Regular Sessions IN SENATE March 11, 2021 _____ Introduced by Sens. 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. The savings under similar rates of voluntary separations would be $4.3 billion over five years (32 percent higher). The beneficiaries of the following NYCERS members are covered: Correction Officers, Housing and Transit Police, Uniformed Sanitation members, certain EMTs and TBTA members. 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. 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). 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. Online Availability: Mon Fri: 7:00 to 6:00 pm EST/EDT. First,payments will continue until 2026five years from now. The real issue is whether or not we get federal funding. 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.
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