NY A06341

Increases the maximum cost-of-living adjustment (COLA) for New York public retirement systems from 3 percent to 5 percent, effective September 1, 2025.

Maintains the 1 percent minimum COLA floor while raising the ceiling to 5 percent; COLA percentages continue to equal 50 percent of annual inflation as measured by the consumer price index (CPI-U).

Applies to four retirement systems: New York State and Local Employees' Retirement System (NYSLERS), New York State and Local Police and Fire Retirement System (NYSLPFRS), Teachers' Retirement System, and New York City Employees' Retirement System.

Requires State of New York to pay approximately $897 million as a one-time past service cost as of March 1, 2025, with permanent annual prospective costs of approximately $12.8 million across all participating employers.

Takes effect immediately upon enactment.