NY A10273

Removes the $18,000 cap on the base benefit amount used to calculate cost-of-living adjustments (COLA) for public retirement systems and makes it subject to annual increases based on the Consumer Price Index (CPI-U) beginning September 1, 2022.

Annual COLA base benefit increases equal 50% of the annual inflation rate as measured by CPI-U for the one-year period ending March 31 prior to each September 1 adjustment, rounded up to the nearest one-tenth of one percent.

Establishes a floor of 1% and ceiling of 3% on annual percentage increases to the base benefit amount.

Applies to four retirement systems: New York State and Local Employees' Retirement System (ERS), Police and Fire Retirement System (PFRS), Teachers' Retirement System, and New York City retirement systems (NYCERS, NYCTRS, BERS, Police Pension Fund, Fire Pension Fund).

Estimated first-year cost of approximately $47 million to New York State (ERS), $3 million to the State (PFRS), $92.9 million to Teachers' Retirement System employers, and $800.5 million to New York City and other NYCRS obligors.