Negotiations with municipal labor unions have not yet yielded these savings, and an ERI is under consideration. The 2009 program was similar to the New York City proposal. 518-429-2959. If you have questions, please email anne.alarcon@csi.cuny.edu. Your valid home address is used to determine which NY State Senator Represents you. A separate bill that covers early retirement for public workers in New York City was previously introduced. 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. 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. Enter a message to your senator. Providing tools allowing you to research pending legislation, stay informed with email alerts, content feeds, and share dynamic reports. 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. 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. Retirements in the short term will cut local payrolls, and in the long term, open jobs for those who want to work in government.". 335 Adams Street, Suite 2300 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 Act authorizes the city of New York and the NYC Board of Education (DOE), to provide a temporary retirement incentive for eligible employees. 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 legislation provides an Early Retirement Incentive option, only to certain employees of the City of New York and the Assemblyman Tom Abinanti (D-Greenburgh) has introduced two bills that address early retirement for state and local government employees. Each component is wholly 5 contained within a Part identified as Parts A and B. The budget raises taxes on upper income We are already receiving reports of higher than typical teacher retirements, presumably in response to concerns about the pandemic. The act shall expire and be deemed repealed on December 31, 2022. First,payments will continue until 2026five years from now. Contact the Call Center for information. Get hyperlocal forecasts, radar and weather alerts. However, they come with a significant cost that might have long-term implications for fiscal stability. 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.. This follows the Citys current hiring freeze that permits agencies to replace one of every three vacancies (excluding health and safety). In addition, the act sets forth comprehensive requirements for electronic notarization. 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. 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. 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. With the economic shutdown, fewer commuters, and a drastic reduction in the number of tourists tax revenues have fallen. Sat & Sun: 6:00 am to 11:00 pm EST/EDT. 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. Periodically, the Legislature enacts new laws that impact NYSTRS and/or the states other public retirement systems. To date, CSEA has not seen any Early Retirement Incentives proposed through the legislature that we could support, said Mark Kotzin, CSEA Spokesman. 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.