Authorizes Angela Kilkenny Tier IV status in the New York state and local employees' retirement system.
Impact
If enacted, this bill will have significant implications for the New York State budget, as it stipulates that all costs associated with this adjustment will be borne by the state. The financial notes specified an immediate past service cost of approximately $59,700 as a one-time payment to facilitate this change and an expected ongoing increase in annual contributions amounting to around $7,100 from Helen Hayes Hospital for the fiscal year ending March 31, 2026. This could set a precedent for similar future requests from other state employees who may have faced comparable situations.
Summary
Bill A08177 aims to authorize Angela Kilkenny to receive Tier IV status within the New York State and Local Employees' Retirement System. This authorization is particularly relevant for Kilkenny, who, due to circumstances beyond her control, was not enrolled in the retirement system at the start of her employment with the State University of New York in 2009. The bill seeks to rectify this oversight by retroactively granting her membership beginning on the date she commenced her employment, allowing her access to Tier IV benefits which are typically more favorable compared to her current Tier VI status.
Contention
While the bill is straightforward in its objective, discussions around it may highlight broader issues of equity in state employment practices and the potential financial strain on the retirement system. Critics may argue that the retroactive nature of the benefits could lead to calls for similar adjustments by other employees, thereby increasing state liabilities further. Supporters, however, emphasize the importance of fair treatment for employees and the need to correct administrative oversights that deny rights to state workers.