Increases the base benefit amount for computation of pension cost-of-living adjustments.
Impact
The implications of S08160, if enacted, will provide more significant assistance to retirees by ensuring their pensions are adjusted more favorably against the rising cost of living as determined by the Consumer Price Index (CPI). The bill mandates that from 2026 onward, cost-of-living adjustments will reflect 100% of annual inflation based on CPI increases. This is expected to help maintain the purchasing power of retired individuals, particularly in an era when inflation can diminish the value of fixed incomes.
Summary
Bill S08160, introduced by Senator Jackson, aims to amend the retirement and social security law as well as the education law in New York. The primary focus of this bill is to increase the base benefit amount for the computation of pension cost-of-living adjustments (COLA) for retirees. Specifically, the bill proposes to raise the maximum amount upon which these adjustments are calculated from $18,000 to $21,000, starting from September 1, 2026. This change is reflected in the adjustments made to subdivisions c and d of section 78-a under the retirement and social security law.
Contention
While the intent of S08160 is largely viewed as supportive of retirees, there may be points of contention among lawmakers regarding its long-term fiscal impact on the state budget. Critics might argue that raising the base benefit could require reallocating funds or increasing contributions to pension plans, which could pose a challenge during economic downturns or financial constraints. Conversely, proponents will likely emphasize the moral obligation to support seniors who rely on these pensions as their primary source of income.
Provides for cost-of-living adjustments; provides that the base benefit amount shall be increased annually by reference to the consumer price index for each applicable calendar year beginning on September 1, 2024.
Provides for cost-of-living adjustments; provides that the base benefit amount shall be increased annually by reference to the consumer price index for each applicable calendar year beginning on September 1, 2024.
Enacts the "NYS health care tax reform act"; establishes a public goods surcharge on insurance corporations; establishes a public goods surcharge on business corporations; establishes a public goods surcharge on pass-through entities; relates to filing fee surcharges; relates to revenues to be included in the health care reform act resources fund.
Oil and gas gross production tax allocations and the state share of oil and gas tax allocations; to provide for a legislative management report; to provide an exemption; and to provide an effective date.