Benefit sweeteners are legislative bills that expand pension, disability, or death benefits for public employees outside of the formal budget and collective bargaining processes. This page covers CBC’s work on the fiscal impact of these proposals, the recurring legislative trends in benefit expansions, the omission of required fiscal notes that estimate taxpayer costs, and recommendations for the Governor to veto these measures.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
The proposed change to Tier 6 pension benefits, which will cost the State and local governments in New York nearly $400 million per year, is unnecessary, expensive, and should be rejected.
A better balance would be to keep benefit terms confined to collective bargaining, thereby keeping the decisions about the level of benefits in the hands of those who pay for them.
The City and State should seek to place all new workers in defined contribution plans.
Eliminate the variable supplements available to some retired New York City uniformed workers.
Key Data
In October 2025, the Legislature passed 17 benefit sweetener bills outside of the budget process, including 8 pension and 9 disability or death benefit enhancements. The 12 bills with complete fiscal notes carried an estimated cost of at least $30 million immediately and $18.1 million annually thereafter.
Benefit sweeteners are legislative enhancements to public employee benefits enacted outside of collective bargaining or budget processes. Between the periods of 2014–2019 and 2021–2023, the number of sweeteners signed into law increased from 16 to 29, while the portion of CBC-opposed sweeteners signed by the Governor rose from 25% to 48%.
Broader rollbacks of Tier 6 pension reforms carry significantly higher costs than targeted sweeteners. As of October 2024, enacted Tier 6 rollbacks increased State and local government costs by $438 million in their first year, driven largely by a $377 million annual cost from changing the final average salary calculation from 5 to 3 years.
As of June 2018, pension benefits for New York City public safety employees were already highly generous, with recently retired police officers receiving an average annual pension of $74,500 and firefighters receiving $118,000, compared to $35,000 for civilian employees.
Historically, unchecked benefit enhancements and investment losses caused New York City's annual pension contributions to grow from $1.8 billion in fiscal year 2003 to $8 billion in fiscal year 2012, crowding out other city priorities.
Seventeen proposed legislative bills expanding pension, disability, and death benefits for public employees would increase state and local government costs outside of the formal budget process. Twelve of these bills with complete fiscal notes are estimated to cost taxpayers at least $30.0 million immediately and $18.1 million annually thereafter, without enhancing public services or providing offsetting savings.
Recommendations related to Benefit Sweeteners
The Governor should veto 17 bills that expand pension, disability, or death benefits because they increase costs to New York State and local governments outside of the budget process without enhancing public services or paying for them with offsetting savings.
The State should avoid granting targeted benefit enhancements because they both increase costs and may encourage further expansions that also increase costs to the public.
Key Data
17
— Bills that expand pension, disability, or death benefits for public employees outside of the formal budget process that the Governor is urged to veto.
$30.0 million
— Immediate estimated cost of the twelve proposed benefit sweetener bills that have complete fiscal notes.
$18.1 million
— Estimated annual cost thereafter of the twelve proposed benefit sweetener bills that have complete fiscal notes.
New York State's pension and benefit sweeteners, along with recent Tier 6 rollbacks, are significantly increasing taxpayer costs, with enacted changes already costing State and local governments $438 million annually. While 29 sweetener bills were signed into law between 2021 and 2023, pending proposals to further roll back pension reforms could cost billions more, including one bill carrying a $1.5 billion annual price tag.
Recommendations related to Benefit Sweeteners
State lawmakers should cut the sweetener habit and should stick to a healthy Tier 6 diet as enacted over a decade ago.
The Governor should veto the 11 remaining sweetener bills passed by the Legislature in 2024.
Lawmakers should maintain the valuable Tier 6 reforms, which continue to offer generous defined benefits for public employees.
Key Data
$438 Million
— The first-year annual cost to State and local governments from enacted Tier 6 pension rollbacks.
29
— Sweetener bills signed by the Governor over the three-year period from 2021 through 2023, compared to 16 signed over the six-year period from 2014 through 2019.
$1.5 Billion
— The annual price tag of just one proposed Tier 6 rollback bill.
Twelve legislative bills passed this year would expand pension, disability, or death benefits for public employees outside of the formal budget process, costing taxpayers at least $90.1 million immediately and $16.9 million annually thereafter. These benefit sweeteners increase public costs without enhancing services or providing offsetting savings, prompting calls for the Governor to veto all twelve measures.
Recommendations related to Benefit Sweeteners
The Citizens Budget Commission (CBC) urges Governor Hochul to veto 12 bills because they enhance benefits and increase costs to New York State and local governments outside of the budget process, without enhancing services or paying for them with offsetting savings.
The Citizens Budget Commission recommends Governor Hochul veto S8472-A/A8918-A, which would establish a 20-year retirement plan for members of the regional state park police, environmental conservation officers, forest rangers, and university police officers.
The Citizens Budget Commission recommends Governor Hochul veto S8408/A9084, which would extend the 'death gamble' benefit to certain retirement-eligible members of the NYSLRS.
Key Data
$90.1 million
— Estimated immediate cost of eight bills with complete fiscal notes.
$16.9 million
— Estimated annual cost thereafter of eight bills with complete fiscal notes.
12
— Number of bills that enhance benefits and increase costs to New York State and local governments outside of the budget process that the Governor is urged to veto.
A proposed change to Tier 6 pension benefits would cost New York State and local governments nearly $400 million annually, including a $320 million increase in pension contributions for school districts and localities next year alone. This expensive and unfunded mandate is unnecessary because Tier 6 is already more generous than most private-sector retirement plans.
Recommendations related to Benefit Sweeteners
The proposed change to Tier 6 pension benefits, which will cost the State and local governments in New York nearly $400 million per year, is unnecessary, expensive, and should be rejected.
Key Data
nearly $400 million
— The estimated annual cost to New York State and local governments of the proposed change to Tier 6 pension benefits.
$320 million
— The projected increase in pension contributions next year alone for New York City and other localities and school districts across the state.
New York State legislators passed 20 benefit sweetener bills that would increase public employee pension, disability, and death benefits outside of the formal budget process. These bills are estimated to cost taxpayers at least $50.7 million immediately and $30.3 million annually, adding to the fiscal burden of previously enacted benefit expansions.
Recommendations related to Benefit Sweeteners
Governor Kathy Hochul should veto S5027/A5208 and 19 other bills because they enhance benefits and increase costs to New York State and local governments outside of the budget process, without enhancing services or finding offsetting savings.
The State should avoid granting targeted benefit enhancements because they not only increase costs but also may encourage further expansions that also increase the public's costs.
Key Data
20
— bills passed by both houses of the Legislature that would enhance benefits and increase costs outside of the budget process.
$50.7 Million
— estimated immediate cost for 14 of the bills with complete fiscal notes.
$30.3 Million
— estimated annual cost thereafter for 14 of the bills with complete fiscal notes.
The New York State Legislature passed 20 benefit sweetener bills in 2022 that would increase public pension, disability, and death benefits outside of the formal budget process. These bills are estimated to cost taxpayers at least $78.6 million immediately and $21.0 million annually thereafter, with five of the bills completely lacking required fiscal notes.
Recommendations related to Benefit Sweeteners
The Governor should veto 20 bills that enhance benefits and increase costs to New York State and local governments outside of the budget process, without enhancing services or finding offsetting savings.
The Governor should veto bills that lack a complete fiscal note, as the lack of such information is a sufficient basis for a veto.
Key Data
$78.6 million
— Estimated immediate costs of the 15 benefit sweetener bills with attached fiscal notes.
$21.0 million
— Estimated annual costs thereafter of the 15 benefit sweetener bills with attached fiscal notes.
20
— Benefit sweetener bills passed by both houses of the Legislature in 2022, up from 12 in 2018.
New York State legislators passed 21 benefit sweetener bills in 2021 that would expand pension, disability, or other public employee benefits outside of the formal budget process, costing at least $64.1 million immediately and $7.8 million annually. Because six of these bills lack required fiscal notes, their total taxpayer cost remains unknown, prompting calls for a gubernatorial veto to prevent rising costs without service improvements.
Recommendations related to Benefit Sweeteners
The Citizens Budget Commission urges Governor Kathy Hochul to veto S4719A/A1414A, as well as 20 other bills that would enhance pension, disability, or other benefits without providing enhanced services or offsetting savings.
The Citizens Budget Commission recommends Governor Kathy Hochul veto these bills because they enhance benefits and increase costs to New York State and local governments outside of budget negotiations and/or collective bargaining processes.
Key Data
$64.1 million
— Estimated immediate cost of the 15 benefit sweetener bills that have fiscal notes attached.
$7.8 million
— Estimated annual cost thereafter of the 15 benefit sweetener bills that have fiscal notes attached.
6
— Number of passed benefit sweetener bills that lack fiscal notes, which would increase costs by an unknown amount.
Early retirement incentives often present significant fiscal risks, as New York City's proposed plan would cost $1.1 billion and direct 32% of its funding to employees who would have retired anyway. Instead of costly incentives, reducing the municipal workforce through natural attrition could save $4.3 billion over five years, which is 32% more than the savings generated under the incentive program.
Recommendations related to Benefit Sweeteners
In light of the City’s fiscal stress and the availability of other options to balance the budget, the City should reduce its workforce through attrition and not pursue the early retirement incentive.
If localities are considering an early retirement incentive, it is important to do a thorough analysis of the costs and benefits and commit to a strict hiring freeze, or the incentive could actually cost more than expected.
To maximize savings from an early retirement incentive, governments must keep the newly vacated positions unfilled and structure the incentive to minimize costs.
Key Data
$1.1 Billion
— Estimated incentive cost of the proposed New York City early retirement incentive for 10,000 separations.
32%
— Share of the early retirement incentive cost likely to be an unneeded expense flowing to employees who would have retired anyway.
$4.3 Billion
— Five-year savings achieved under similar rates of voluntary separations through attrition without an early retirement incentive.
The New York State Legislature passed 18 benefit sweetener bills that would enhance pension or disability benefits for public employees at a projected first-year cost of at least $71 million. Because these bills provide no enhanced services or offsetting savings, and six lack required fiscal notes, the Governor is urged to veto all of them to protect past fiscal reforms.
Recommendations related to Benefit Sweeteners
The Citizens Budget Commission recommends the Governor veto all 18 bills passed by the Legislature to enhance pension or disability benefits, or provide other additional benefits, without providing enhanced services to New Yorkers or offsetting savings.
The Governor should veto all the bills and send a strong message that past reforms will not be overturned.
The Governor should continue the tradition of containing personnel costs by vetoing these 18 unwarranted expansions of employee and retiree benefits.
Key Data
$71 million
— Projected first-year cost of the 18 benefit sweetener bills.
18
— Bills passed by the Legislature to enhance pension or disability benefits, or provide other additional benefits, without providing enhanced services or offsetting savings.
6
— Passed bills that do not include a fiscal note, meaning the actual fiscal impact is likely greater than projected.
The New York State Legislature passed 19 benefit sweetener bills in 2019 that would expand pension, disability, and death benefits for public employees outside of the formal budget process. These bills, if signed into law, would increase annual contributions and generate millions of dollars in immediate past service costs for state and local governments, including a $38.0 Million past service cost for a single law enforcement retirement bill.
Recommendations related to Benefit Sweeteners
Governor Cuomo should veto the 19 benefit sweetener bills passed by the Legislature to prevent unnecessary increases in public pension and disability costs.
Key Data
19
— Number of benefit sweetener bills on the 2019 scorecard.
$38.0 Million
— Immediate past service cost to New York State for Bill A4431/S5207, which establishes a 20-year retirement plan for certain law enforcement officers.
$45.1 Million
— Increase in net present value from the adoption of Bill A7620-A/S5903-A, which allows retirement credit for New York City Police Department Cadet Program time.
The 2019 Benefit Sweetener Scorecard tracks 189 legislative bills that propose expanding pension, disability, death, or health benefits for public employees outside of the formal budget process. Many of these proposals carry significant fiscal impacts, such as a proposed cost-of-living adjustment increase that would raise New York City's costs by $839.6 million and another bill that would increase the net present value of benefits by $1.1 billion.
Key Data
189
— Total number of bills tracked in the 2019 Benefit Sweetener Scorecard.
$839.6 million
— Increase in cost for New York City under proposed legislation (A7413/S5835) that increases the base of computation for base retirement allowance from $18,000 to $21,000 for cost of living adjustments.
$1.1 billion
— Increase in the net present value of benefits under proposed legislation (S5901-A) that increases the spousal retirement benefits cost of living adjustment from 50% to 100%.
The New York State Legislature introduced 189 benefit sweetener bills in 2019 to expand pension, disability, and death benefits for public employees outside of the formal budget process. These proposals carry significant taxpayer costs, including one bill to increase the cost-of-living adjustment base that alone is estimated to cost $942.6 million in past services and first-year expenses.
Key Data
189
— Total number of benefit sweetener bills introduced or tracked in the 2019 scorecard.
$942.6 Million
— Estimated past services and first-year costs for bill A7413/S5835, which increases the base of computation for cost-of-living adjustments.
$149 Million
— Estimated past services and first-year costs for bill A7262, which increases Tier 6 pension benefits.
The 2019 legislative session saw the introduction of 189 benefit sweetener bills that propose expanding pension, health insurance, and disability benefits for public employees. These proposals carry significant potential taxpayer costs, including a single pension bill that could increase New York City's costs by $839.6 million and another carrying a $149 million immediate past service cost.
Key Data
189
— The total number of benefit sweetener bills tracked in the 2019 scorecard.
$839.6 Million
— The estimated increase in pension costs for New York City under a bill to increase the base of computation for cost of living adjustments.
$149 Million
— The immediate past service cost for a bill increasing Tier 6 pension benefits from 35% plus 2% for each year of service in excess of 20 years to 40% plus 2%.
Governor Cuomo vetoed a series of costly pension and benefit expansion bills in late 2018, which would have increased public employer liabilities through enhanced death, disability, and early retirement benefits. These legislative proposals carried significant taxpayer costs, including a $13.2 million one-time past service cost for correction officer death benefits and millions more in ongoing annual contributions.
Key Data
$13.2 million
— One-time past service cost to enhance the in-service death benefit for State correction officers who are retirement eligible.
$2.17 million
— Immediate past service cost to allow certain environmental conservation, forest ranger, and university police members to receive three-quarters accidental disability retirement.
$1.12 million
— One-time retroactive cost to allow certain Tier 6 uniformed court or peace officers to retire without early age reduction at age 55 with 30 years of service.
Proposed state legislation to increase pension benefits for New York City police and firefighters would cost an estimated $20 million next year, doubling within five years and threatening to reverse critical 2012 pension reforms. With average pensions already reaching $74,500 for police and $118,000 for firefighters, these unwarranted benefit sweeteners risk crowding out funding for essential city services.
Recommendations related to Benefit Sweeteners
The State Legislature and City Council should reject proposed bills that would hike the cost of pensions for New York City police and firefighters.
The City Council and the State Legislature should not pass an unwarranted pension sweetener that will be bitter for taxpayers.
Key Data
$20 Million
— Estimated cost next year of one proposed bill to hike pension benefits for New York City police and firefighters.
$74,500
— Average annual pension for a recently retired New York City police officer.
$118,000
— Average annual pension for a recently retired New York City firefighter.
A series of pension and benefit expansion bills passed by the New York State Legislature in 2018 were vetoed by the Governor due to their significant fiscal impacts, including a $13.2 million one-time past service cost for enhanced correction officer death benefits. Many of these proposed benefit sweeteners lacked specific fiscal notes or carried ongoing annual costs, such as an estimated $850,000 annual increase to remove overtime limits for certain transit authority employees.
Key Data
$13.2 million
— One-time past service cost for Bill A10015/S7525, which enhances the in-service death benefit for State correction officers.
$2.17 million
— Immediate past service cost for Bill A7600-C/S5594-C, which allows certain law enforcement officers and forest rangers to receive three-quarters accidental disability retirement.
$1.12 million
— One-time retroactive cost for Bill A9910/S7704, which allows certain Tier 6 uniformed court or peace officers to retire without early age reduction.
Several benefit sweetener bills passed by the legislature in 2018 to expand pension, disability, and death benefits for public employees were ultimately vetoed by the Governor. These proposals carried significant fiscal impacts, including a $13.2 million one-time past service cost for enhanced death benefits and millions in increased annual contributions and retroactive costs across various public sector roles.
Key Data
$13.2 million
— One-time past service cost for bill A10015/S7525, which enhances the in-service death benefit for State correction officers.
$2.17 million
— Immediate past service cost for bill A7600-C/S5594-C, which allows certain law enforcement and forest ranger members to receive three-quarters accidental disability retirement.
$1.12 million
— One-time retroactive cost for bill A9910/S7704, which allows certain Tier 6 uniformed court or peace officers to retire without early age reduction.
A series of public employee benefit enhancement bills vetoed in late 2018 proposed significant taxpayer costs, including a $13.2 Million one-time past service cost for enhanced correction officer death benefits and $4.70 Million for transit authority overtime pension calculations. Many of these pension and disability sweeteners lacked specific fiscal notes or would have imposed ongoing annual and retroactive costs on state and local employers.
Key Data
$13.2 Million
— One-time past service cost for bill A10015/S7525, which enhances the in-service death benefit for State correction officers.
$4.70 Million
— Past service and first-year costs for bill A7599-A/S5731-A, which removes the limit on overtime pay inclusion for calculating final average salary for certain Tier 6 New York City Transit Authority employees.
$1.12 Million
— One-time retroactive cost for bill A9910/S7704, which allows certain Tier 6 uniformed court or peace officers to retire without early age reduction.
In late 2018, the Governor vetoed twelve legislative bills that proposed to expand pension, disability, and death benefits for various New York public employees. These benefit sweeteners carried significant fiscal impacts, including a $13.2 million past service cost for a correction officer death benefit expansion and hundreds of thousands of dollars in annual cost increases for other pension adjustments.
Key Data
$13.2 million
— One-time past service cost for bill A10015/S7525, which enhances the in-service death benefit for State correction officers.
$2.17 million
— Immediate past service cost for bill A7600-C/S5594-C, which allows certain law enforcement and forest ranger members to receive three-quarters accidental disability retirement.
$1.12 million
— One-time retroactive cost for bill A9910/S7704, which allows certain Tier 6 uniformed court officers or peace officers to retire without early age reduction.
The 2017 Benefit Sweetener Scorecard tracks various legislative bills in New York that propose enhancements to public employee pension, health, and disability benefits. These proposed changes carry significant fiscal implications, with some individual bills resulting in millions of dollars in immediate past service costs and long-term annual contribution increases for the state and localities.
Key Data
$48.9 Million
— Estimated cost for bill A6319, which increases the calculation of the final average salary for justices and judges within the New York State unified court system.
$36.5 Million
— Estimated cost for bill S6234, which allows Department of Environmental Conservation officers, forest rangers, and police officers to be eligible for a special 20-year retirement plan.
$29 Million
— Annual cost for bill A7354, which provides a temporary retirement incentive by waiving the early retirement reduction for enrollees with 25 years of service who are 55 years old or older.
$14.7 Million
— Annual recurring costs for bill A7548, which removes the requirement that paraprofessionals register for the New York City Teachers Retirement System, making enrollment automatic instead.
$14.4 Million
— Cost for bill A7185A, which clarifies eligible beneficiaries of New York City sanitation workers pension benefits and provides a special accidental death benefit.
$13.7 Million
— One-time past service cost for bill A5133A, which enhances the in-service death benefit for State correction officers who are retirement eligible and die while in service.
The New York State Legislature has passed 16 bills that would expand pension, disability, and death benefits for public employees, threatening to erode the fiscal savings achieved through Tier 6 pension reforms. These benefit sweeteners include costly measures such as a $13.7 Million past service cost for state correction officer death benefits and an $8.9 Million immediate past service cost for New York City sanitation worker accidental death benefits.
Recommendations related to Benefit Sweeteners
The Governor should veto A711B/S1411B, an expensive enhancement to volunteer firefighter benefits.
The Governor should veto 15 other bills passed by the legislature that represent expensive enhancements to government employee and retiree benefits.
The Governor should veto these benefit expansion bills to preserve fiscal restraint.
Key Data
$13.7 Million
— Past service costs for A5133a/S4077, which would enhance death benefits for State correction officers who are retirement eligible but die before retiring.
$8.9 Million
— Immediate past-service cost for A7185A/S5484A, which would provide a special accidental death benefit for uniformed New York City sanitation employees.
$6.8 Million
— Annual cost to New York City for A7185A/S5484A, which would provide a special accidental death benefit for uniformed New York City sanitation employees.
More than 60 active benefit sweetener bills in the 2016 legislative session could cost New York State and local governments hundreds of millions of dollars annually. Because approximately half of these bills do not specify their fiscal impact, the actual taxpayer costs could be significantly higher.
Key Data
60
— Active benefit sweetener bills identified in the 2016 legislative session that could cost State and local governments hundreds of millions of dollars annually.
Ten legislative bills passed by the New York State Legislature propose expensive pension and disability benefit expansions for public employees, many of which lack required fiscal notes. If signed into law, these measures would erode public savings achieved through Tier 6 pension reforms and shift significant costs, such as up to 7% of salaries for county correction officers, onto state and local taxpayers.
Recommendations related to Benefit Sweeteners
The Governor should veto 10 bills passed by the legislature that are expensive enhancements to government employee and retiree benefits.
The Governor should veto these bills, affirming a commitment to fiscal prudence.
Key Data
6.6%
— The percentage of salaries in costs shifted from employees to state and local taxpayers under bill A9702/S7023, which eliminates required employee contributions in certain retirement systems.
7%
— The maximum cost to counties as a percentage of salaries for enriched pension benefits under bill A6612b/S4001b.
$244,000
— The cost for the single known individual impacted by bill A7146a/S5012a, which extends the filing deadline for accidental disability retirement benefits for firefighters.
Ten benefit enhancement bills that passed both houses of the New York State Legislature are heading to the Governor's desk, offering expensive pension and disability expansions to public sector workers without improving taxpayer services. These measures include a bill to increase disability payments for New York City firefighters, which is projected to cost $6.1 million in 2017 and rise to $12.6 million annually by 2021.
Recommendations related to Benefit Sweeteners
The Governor should veto these ten benefit enhancement bills that provide expensive benefit enhancements to public sector workers and retirees without improving services for taxpayers.
Key Data
$12.6 Million
— The annual cost by 2021 of a bill to increase disability payments for New York City firefighters.
$6.1 Million
— The cost in 2017 of a bill to increase disability payments for New York City firefighters.
10
— The number of benefit sweetener bills that have passed both houses of the State Legislature and are poised to go to the Governor's desk.
The New York State Legislature has introduced eight new bills to enhance public employee benefits, adding to more than 60 such proposals already introduced. Among these, a statewide police disability bill is projected to increase New York City's pension contributions by $27 million in 2017, rising to $40 million by 2021.
Key Data
$27 million
— Estimated increase in New York City pension contributions in 2017 under S7421/A10044, a statewide police disability benefit proposal.
$40 million
— Estimated increase in New York City pension contributions in 2021 under S7421/A10044, a statewide police disability benefit proposal.
$8.3 million
— Estimated cost to New York City in 2021 for S7530/A10055, a bill to improve firefighter disability benefits.
More than 60 active legislative bills in New York aim to enhance pension, disability, and death benefits for public employees, potentially costing state and local governments hundreds of millions of dollars annually. Many of these proposals lack fiscal impact statements and threaten to roll back critical reforms, such as those projected to save New York City $21 billion over 30 years.
Recommendations related to Benefit Sweeteners
The legislative bills detailed in the scorecard to enhance public employee benefits should be rejected.
Hard-fought reforms that yield significant savings should remain in place rather than being undermined by proposals to enhance expensive employee benefits.
Key Data
$21 billion
— Projected savings over 30 years for New York City from reforms that would be rolled back by bills enhancing disability benefits for recently hired police and fire employees.
more than 60
— Active bills identified in the 2016 legislative session that would enhance the benefits of State and local public employees and retirees.
$46 million
— First-year cost of the most expensive pension benefit bill (A4295), which would allow judges to use their most recent annual salary rather than a 36-month average to calculate pensions.
During the 2015 legislative session, New York State legislators introduced well over 50 bills to enhance public employee pensions and benefits, threatening to undo the savings from the 2012 Tier VI pension reforms. To protect taxpayers from a costly rollback of these savings, the Governor is urged to veto four specific pension sweetener bills: A7490/S3010, A6771A/S4907, A5327C/S3948B, and A7547/S5785.
Recommendations related to Benefit Sweeteners
The Governor should veto four bills that would increase the cost of public employee retirement benefits.
The Governor should veto A7490/S3010, A6771A/S4907, A5327C/S3948B, and A7547/S5785.
Pension 'sweeteners' should not be permitted to undo the savings from the 2012 Tier VI pension reforms.
Key Data
well over 50
— bills introduced by State legislators during the 2015 session to enhance State and local government employee pensions and benefits
four
— bills that would increase the cost of public employee retirement benefits that the Governor is urged to veto
More than 50 legislative bills have been introduced in Albany to enhance pension, disability, and health benefits for state and local public employees, potentially increasing taxpayer costs by at least $140 million annually. Several of these benefit sweetener bills have already advanced through the legislature, threatening to erode previous pension reforms and increase long-term government expenses.
Recommendations related to Benefit Sweeteners
The proposed benefit sweetener bills should be rejected; they would add to already costly pension expenses for the State and for local governments and would erode the landmark reforms enacted in 2012.
It is important that these benefit sweetener bills do not advance to the Governor’s desk.
Key Data
$140 Million
— minimum collective increase in annual costs to New York taxpayers from the introduced benefit sweetener bills.
$40 Million
— first-year cost increase of bill A.8032/S.5656, which improves disability benefits for recently hired employees.
$11.5 Million
— first year costs of Mayor Bill de Blasio's revised disability pension proposal (A. 7854B/S. 5705B) after being amended.
Multiple legislative proposals introduced in 2015 aim to enhance disability benefits, restore injury presumptions, or reverse Tier 3 pension reforms for New York City's uniformed employees. These benefit sweeteners could significantly increase city expenditures, with the most expensive proposal (bill S5656) projected to cost $39.1 Million in fiscal year 2015 and require $889.3 Million in actuarial present value contributions by fiscal year 2019.
Key Data
$889.3 Million
— Actuarial present value of New York City contributions by fiscal year 2019 for bill S5656, which would improve disability benefits for sanitation, correction, police, and fire uniformed employees.
$850.2 Million
— Actuarial present value of New York City contributions by fiscal year 2019 for bill A6046/S4269, which grants disability benefits and adds new injury presumptions for Tier 3/6 police and fire uniformed employees.
$39.1 Million
— Estimated fiscal year 2015 budget increase for bill S5656, which would enhance disability benefits for sanitation, correction, police, and fire uniformed employees.
Eligible retired New York City police, fire, and correction officers receive an annual $12,000 Variable Supplement Fund payment, commonly known as a "Christmas bonus," which totaled approximately $500 million in 2014. These guaranteed payments drain the fiscal health of the city's underfunded pension funds, requiring a massive $2.9 billion transfer from pension assets in fiscal year 2014 alone to cover obligations.
Recommendations related to Benefit Sweeteners
Phasing out or eliminating the Variable Supplement Fund (VSF) should be part of the Mayor and City Council’s agenda in Albany next year.
Gradually eliminating these unusual pension bonuses for retirees would enhance the fiscal condition of the pension funds and reduce the needed contributions from taxpayers.
Key Data
$2.9 billion
— Transfer from the city's pension funds to the Variable Supplement Funds in fiscal year 2014 due to exceptional investment returns.
$500 million
— Total approximate Variable Supplement Fund payments to eligible retirees in 2014.
$12,000
— Annual Variable Supplement Fund payment received by eligible retired New York City police, fire, and correction officers.
Five legislative bills passed by the New York State Legislature threaten to roll back critical 2012 pension reforms by expanding retirement and disability benefits for specific public employee groups. These proposals, which include transferring SUNY police officers to a costlier retirement system and increasing disability pensions in Suffolk and Nassau counties, would generate millions of dollars in immediate and long-term taxpayer costs.
Recommendations related to Benefit Sweeteners
The Governor should veto five bills passed by the legislature that would begin to reverse hard-won pension reform progress.
Key Data
$10 Million
— One-time cost to the State of transferring SUNY police officers from the New York State and Local Employees Retirement System to the Police and Fire Retirement System under bill A7862/S5644.
$1 Million
— New annual obligations for the State of transferring SUNY police officers to the Police and Fire Retirement System under bill A7862/S5644.
$218,000
— Annual cost to Suffolk County for increasing disability pensions for probation officers from one-third to one-half of final average salary under bill A8160/S5153.
The 2014 legislative session saw the introduction of numerous benefit sweetener bills carrying a total estimated state cost of $1,699 Million and local cost of $116 Million. While some bills expanding disability pensions for local employees were signed into law, others with significant fiscal impacts, such as pension transfers for university police, were vetoed by the Governor.
Key Data
$1,699 Million
— Total estimated state cost for all listed benefit sweetener bills in the 2014 scorecard.
$116 Million
— Total estimated local cost for all listed benefit sweetener bills in the 2014 scorecard.
$1.1 Billion
— Past service cost for Bill 4890, which replaces the current benefit of 1.5% of final average salary with 2.0% for Tier III, IV, and V members.
The 2014 legislative session in New York saw numerous benefit sweetener bills introduced to expand pension and disability benefits for public employees, carrying a total estimated cost of $1,699 million for the State and $116 million for local governments. While some of these measures were vetoed by the Governor, others were signed into law or advanced through the legislature, occasionally without the required fiscal notes to estimate their long-term taxpayer costs.
Key Data
$1,699 Million
— Total estimated State cost of the tracked 2014 benefit sweetener bills.
$116 Million
— Total estimated Local cost of the tracked 2014 benefit sweetener bills.
$1.1 Billion
— Past service cost for Bill 4890, which replaces the current benefit of 1.5% of final average salary with a 2.0% benefit for Tier III, IV, and V members.
A proposed state bill, A9594/S7326, threatens to reverse critical 2012 pension reforms by significantly increasing disability benefits for recently hired police officers, costing New York City an estimated $35 million in fiscal year 2015. The long-term actuarial impact of funding these enhanced benefits is projected to grow from $266.4 million in fiscal year 2015 to $617.9 million by 2019.
Recommendations related to Benefit Sweeteners
The Mayor should oppose the supporting home rule message under consideration in the City Council as well as the bill itself.
The Mayor should affirm his commitment to fiscal responsibility by opposing this bill.
Key Data
$31 billion
— The estimated savings to New York City over 30 years from the permanent Tier III plan enacted in the 2012 pension reforms.
$266.4 million
— The actuarial value of contributions required by New York City to fund the new benefit in fiscal year 2015.
$617.9 million
— The estimated actuarial value of contributions required by New York City to fund the new benefit in 2019.
During the 2014 legislative session, numerous benefit sweetener bills were introduced to expand public employee pensions and disability benefits, totaling an estimated $1,699 million in state costs and $116 million in local costs. While several high-cost proposals like a $1.1 billion pension enhancement bill remained in committee, others were vetoed by the Governor to protect taxpayers from substantial unfunded liabilities.
Key Data
$1.1 Billion
— Past service cost for Assembly Bill 4890, which replaces the current benefit of 1.5% of final average salary with a 2.0% benefit for Tier III, IV, and V members.
$617.9 Million
— Increase in the Actuarial Present Value of benefits in fiscal year 2019 under Assembly Bill 9594 conforming NYC Tier III police disability benefits.
$98.9 Million
— One-time cost for Assembly Bill 4920 allowing Tier I and II employees of NYSLERS and NYSLPFRS to include up to 30 days of unused vacation time in final average salary calculations.
The 2014 legislative session saw numerous benefit sweetener bills introduced to expand public employee pensions and disability benefits, carrying a total estimated cost of $1,699 Million for the State and $116 Million for local governments. While some high-cost bills like those allowing earlier retirement or increased pension calculations were vetoed or remained in committee, others providing automatic enrollment or expanded disability pensions were signed into law.
Key Data
$1,699 Million
— Total estimated State cost of the tracked 2014 benefit sweetener bills.
$116 Million
— Total estimated Local cost of the tracked 2014 benefit sweetener bills.
$1.1 Billion
— Estimated past service cost for Bill 4890, which replaces the 1.5% final average salary benefit with a 2.0% benefit for Tier III, IV, and V members.
The New York State Assembly recently introduced eight bills that would enhance pension benefits for public employees and retirees, adding at least $1.35 billion in costs to state and local employers. The most expensive proposal, bill A4890, would increase the pension benefit multiplier for long-serving employees, imposing a one-time cost of $1.1 billion on the State and requiring an additional 0.2 percent annual contribution.
Key Data
$1.35 Billion
— Minimum cost that eight newly introduced pension-enhancing bills would add to State and local employers.
$1.1 Billion
— One-time cost to the State imposed by bill A4890 to increase the pension benefit multiplier.
0.2%
— Additional annual contribution required to cover members of Tiers 2, 3, and 4 pension plans under bill A4890.
The 2011 legislative session saw numerous proposed public employee benefit sweeteners, including bill A5093 to revert final average salary calculations to Tier I formulas at an estimated cost of $95.0 Million to the State and $130.0 Million to local governments. Many of these proposals, particularly those concerning health insurance protections and monetary payments, were introduced without any accompanying fiscal cost estimates.
Key Data
$130.0 Million
— Estimated cost to local governments for bill A5093, which changes how the final average salary is determined for Tiers II, III, & IV State and local employees back to the formula used for Tier I.
$99.3 Million
— Estimated cost to local governments for bill A6848, which allows State and local teachers to receive one additional day of service credit for each unused sick day up to 90 days.
$97.0 Million
— Estimated cost to local governments for bill A3904, which permits retirement at any age over 55 for those between 25 and 30 years of service without a reduction in the benefit accrual rate.
Governor David Paterson is urged to veto several legislative bills that would expand pension and death benefits for state and local public employees, including a bill costing $1.1 million annually to alter salary calculations for New York City teachers. Although these benefit sweeteners are narrower in scope than past legislation, they threaten to add unsustainable costs to an already unaffordable public pension system.
Recommendations related to Benefit Sweeteners
The Governor should continue to stand for fiscal responsibility and veto these bills and any others that come before him.
The Governor should veto bill A8664-A/S5748A, which would make the final average salary calculation for New York City teachers who have taken a leave of absence more generous.
The Governor should veto bill A10753/S7544, which would set a precedent for State police officers to receive death benefits for longer periods of service than their records reflect by counting vacation and sick time.
Key Data
25
— Number of benefit-enhancing bills for State and local employees and retirees tracked on the annual Sweetener Scorecard.
$1.1 Million
— Estimated annual cost in added contributions for bill A8664-A/S5748A, which would make the final average salary calculation for New York City teachers who have taken a leave of absence more generous.
five
— Vacation days per year that members of the State Department of Corrections would be allowed to defer and receive as a lump sum payment upon retirement under bill A8509A/S5633A.
New York lawmakers are considering at least 50 "benefit sweetener" bills that would expand public employee pension and health benefits outside of collective bargaining, despite state pension costs already projected to rise to $3.2 billion by 2014. These proposals, which include lowering retirement ages and expanding disability pensions, threaten to permanently increase the tax burden on local governments and taxpayers.
Recommendations related to Benefit Sweeteners
The Legislature should not be adding to the fiscal burden of New York governments by passing pension sweetener bills.
To cut future costs, the State should reduce the benefits for future employees by creating a new 'tier' in the pension system.
Key Data
$3.2 Billion
— Projected state pension contributions by 2014.
50
— Number of bills introduced in the Assembly and Senate to sweeten pension and health-insurance benefits as of June 15, 2010.
$7.7 Million
— Annual cost to the state of a bill eliminating the minimum retirement age for state employees with 35 years of service.
The 2010 legislative scorecard tracks numerous "benefit sweetener" bills proposed in New York, which aim to expand pension, retirement, and leave benefits for various public employees outside of the formal budget process. These proposals include measures such as reducing the pension vesting period for certain transit employees from 25 years to 10 years and allowing early retirement without benefit reductions for specific public service members.
Key Data
35 years
— The service requirement for members of the New York State and Local Employees' Retirement System to retire without a benefit reduction, regardless of age, under bill A2645-A/S2340-A.
30 years
— The service requirement for Tier II and Tier V members of the New York State and Local Police and Fire Retirement System to retire at age 55 with no benefit reduction under bill A6374-A/S5243-A.
10 years
— The proposed reduced vesting period, down from 25 years, for DC37 employees of the Metropolitan Transportation Authority under bill A7166-A/S4479-A.
While New York State leaders propose to defer $4.5 billion in pension contributions to address short-term budget gaps, the Legislature continues to introduce over 50 bills to expand public employee pension and health benefits. This combination of delaying current payments and increasing future benefit costs threatens the long-term fiscal health of state and local governments.
Recommendations related to Benefit Sweeteners
Efforts to please the labor unions with sweeteners should be foresworn and more aggressive plans to provide permanent, long run savings should be developed.
Key Data
over 50
— both-house bills introduced in the legislative session that would enhance pension and health insurance benefits, excluding bills benefiting individuals
17
— bills introduced in the legislative session that would enhance pension and health insurance benefits for specific individuals
New York has established a new, less costly pension tier for state and local employees, marking the first time in nearly 30 years that pension benefits have been adjusted to meet fiscal realities. However, the reform was accompanied by a permanent concession protecting retired teachers' health insurance benefits, raising concerns that other public employee groups will demand similar costly expansions.
Recommendations related to Benefit Sweeteners
The Legislature must refrain from the past practice of passing various 'sweetener' bills that raise pension costs.
The Governor and all future Governors will need to stand firm against other employee groups demanding the same health insurance benefit protections conceded to retired teachers.
Key Data
nearly 30 years
— The approximate amount of time since pension benefits had last been adjusted to meet fiscal realities in New York.
1994
— The year since which the provision prohibiting the diminution of retired teachers' health insurance benefits had been renewed annually before being made permanent.
Public employers in New York face skyrocketing pension costs, with annual contributions projected to rise by close to 60 percent starting in 2011. To address this fiscal challenge, the Legislature should maintain full funding requirements, curb the tendency to enrich employee benefits, and enact a new, less costly pension tier rather than resorting to pension borrowing.
Recommendations related to Benefit Sweeteners
The Legislature must curb the tendency to enrich benefits and immediately enact a new, less costly pension tier.
The 2009 legislative session proposed multiple pension sweetener bills to expand public employee benefits, including optional 20-year retirement plans for county correction officers and penalty-free retirement for certain state retirement system members. While some measures like the Tier II extension for police and firefighters were vetoed, others such as allowing NYC EMTs on disability to maintain gainful employment were signed into law.
New York's public pension costs have skyrocketed, with annual benefit payments reaching $5.6 billion in 2008 and employer contributions growing nearly ten-fold since 1999 to $2.6 billion. To curb these rising taxpayer liabilities, state legislators must reject pension sweetener bills and support a new, more affordable pension tier for future government employees.
Recommendations related to Benefit Sweeteners
Legislators should refrain from introducing or supporting any pension sweetener legislation during the remainder of this session.
Legislators should support the legislation endorsed by Governor David Paterson and New York City Mayor Michael Bloomberg that would create a new pension tier for future workers that provide more reasonable and affordable pension benefits.
Key Data
$2.6 Billion
— Required annual employer contributions to New York pension funds, representing a nearly ten-fold increase since 1999.
50
— Pension sweetener bills that went to the Governor's desk for action over a four-year period.
9 to 1
— Ratio of employer to employee contributions in New York's State and Local Retirement Systems.
New York State is urged to veto bill A3426/S1409, which would extend generous Tier II pension benefits to new police and firefighter hires and block the implementation of cost-saving Tier V reforms. Uniformed employees already receive highly lucrative pensions, with public employers contributing 20% of salary toward their pensions compared to just 11% for civilian employees.
Recommendations related to Benefit Sweeteners
The Governor should veto bill A3426/S1409, which would extend Tier II pension provisions to all police officers and firefighters who join a public retirement system on or after July 1, 2009 to July 1, 2011.
Any effort to exempt new uniformed employees from Tier V pension benefits, even on a temporary basis, should be rejected.
The Governor should resist any effort to exempt certain classes of employees from Tier V pension provisions.
Key Data
86%
— Percentage of uniformed employees retiring from the New York State Police and Fire Retirement System in the prior year who were under the age of 60.
$48,900 to $66,586
— Range of annual lifetime pension payments that uniformed employees retiring under the age of 60 from the New York State Police and Fire Retirement System in the prior year were slated to receive.
20%
— Percentage of salary public employers are expected to contribute to fund the pension of a uniformed employee.
New York City's pension funding costs have skyrocketed by 230% since fiscal year 2003, reaching $5.7 billion in fiscal year 2008 and projected to hit $7.6 billion by fiscal year 2013. To address these mounting fiscal pressures, the state should establish a less costly pension tier for future employees, while the city should seek retiree health premium contributions and work to eliminate the generous, non-constitutionally protected $12,000 annual 'Christmas bonuses' for retired police and firefighters.
Recommendations related to Benefit Sweeteners
The city should work to lower or end the police and firefighter 'Christmas bonuses,' which are unusually generous but not protected by the state Constitution.
The state Legislature should adopt proposed legislative changes to create a new pension 'tier' for future workers that would provide less costly benefits.
Key Data
$12,000
— Annual supplemental retirement benefit, or 'Christmas bonus,' paid to retired police officers and firefighters who retire with 20 or more years of service.
42%
— Percentage of retired firefighters who receive accidental disability pensions, which are calculated under more generous terms.
25%
— Percentage of retired police officers who receive accidental disability pensions.
New York's public retirement systems are significantly more generous than those in the private sector, driven in part by legislative benefit expansions such as variable supplements and broad definitions of job-related disabilities. To curb these rising costs, public employees should be transitioned to defined contribution plans, and costly legislative enhancements like the $10,500 annual variable supplement should be eliminated.
Recommendations related to Benefit Sweeteners
A better balance would be to keep benefit terms confined to collective bargaining, thereby keeping the decisions about the level of benefits in the hands of those who pay for them.
The City and State should seek to place all new workers in defined contribution plans.
Eliminate the variable supplements available to some retired New York City uniformed workers.
Key Data
43%
— Share of retired New York City firefighters receiving additional benefits due to a disability deemed to be job-related as of 2002.
28%
— Share of retired New York City police officers receiving additional benefits due to a disability deemed to be job-related as of 2002.
$10,500
— The annual variable supplement payment made to eligible New York City uniformed retirees in 2004.
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