SENATE PASSES LEGISLATION ADDRESSING COLA BENEFITS FOR RETIRED PUBLIC EMPLOYEES

Wednesday, June 14, 2000

Senate Majority Leader Joseph L. Bruno (R-C, Brunswick) today announced that the Senate has passed legislation (S.8180), sponsored by Senator Guy J. Velella (R, Bronx/Westchester), to provide a permanent cost-of-living adjustment (COLA) benefiting retired public employees across New York State.

�This bill is designed to make significant increases to the pensions of current retirees and adjusting the pensions of retirees who have seen the greatest erosion of benefits through inflation,� Senator Bruno said. �This is a major victory for retired employees who dedicated themselves to serving New Yorkers and deserve the increased pensions provided in this legislation.�

�This COLA bill is the real thing. In the past, when inflation increased, retirees suffered. Their pensions did not keep pace with the cost-of-living. My bill will provide a stable income for retirees in New York,� Senator Velella said. �As the expenses increase, so will their benefits. I am proud to be the sponsor of this historic legislation which will allow workers in our State to keep their homes, feed their families and maintain the quality of life which they deserve.�

�This is tremendous news for the current and future public employment retirees,� said Senator Vincent L. Leibell, Chairman of the Senate Committee on Civil Service and Pensions. �The time has come to provide them with regular increases to ensure that the pensions they worked so hard to earn stay current with the cost-of-living.�

�I am pleased to provide our public employees with the cost-of-living increases they deserve,� said Senator Nicholas A. Spano (R-C, Westchester), Chairman of the Senate Labor Committee. �This legislation will address the needs of present and future retirees."

The Senate-passed bill provides that the cost of COLA benefit be funded using surplus assets in retirement systems. The costs are made affordable by capping both the inflation adjustments and the base benefit on which COLA is applied, and by providing reasonable eligibility requirements which depend on age and years of retirement. The COLA benefit will alleviate the need for future supplementation programs by providing for automatic payments.
The COLA benefit provides for:

* A �catch-up� adjustment for current retirees, effective September 2000, which will increase their pensions to cover at least 50 percent of inflation from date of retirement through 1997;
* Effective September 2001, both current and future retirees will receive an annual cost of living adjustment equal to 50 percent of the Consumer Price Index (CPI) with a minimum adjustment of 1 percent and a maximum adjustment of 3 percent. The COLA would be applied to the first $18,000 of the base pension allowance; and

* Coverage for current and future retirees in all public retirement systems. Eligibility will be consistent with the current supplementation program.

The costs for the COLA benefit will be addressed by current plan assets without immediate cost to employers for the New York State and Local Employees� Retirement System (ERS), the New York State and local Police and Fire Retirement System (PFRS) and the New York State Teachers� Retirement System (TRS). The City of New York has the option to phase in their initial costs over a period of five years.

The bill was sent to the Assembly.

[BIOGRAPHY] [DISTRICT MAP] [PHOTO GALLERY] [LEGISLATION] [CONSTITUENT SERVICES] [YOUR OPINION COUNTS] [GUESTBOOK] [PRIVACY POLICY] [SENATE INSIDER] [CONTACT INFO] [HOME/NEWS]