NY A07023

Increases the base benefit amount for pension cost-of-living adjustment (COLA) calculations from $18,000 to $21,000, effective September 1, 2025.

Requires retroactive recomputation of COLA increments from September 2002 through September 2023 based on 100% of annual inflation (without retroactive payments to beneficiaries).

Applies to three retirement systems: New York State and Local Employees' Retirement System (NYSLERS), New York State and Local Police and Fire Retirement System (NYSLPFRS), and education law provisions.

Estimated cost of $5.43 billion in present value benefits for NYSLERS and $626 million for NYSLPFRS, with permanent annual contributions of approximately $600 million to State and local employers combined.

Takes effect September 1, 2025, with no retroactive payments for benefits paid before that date.