Major public retirement systems in New York include the New York State and Local Retirement System (NYSLRS) and the New York State Teachers Retirement System (NYSTRS).
The NYSLRS administers pension and other benefits for substantially all employees (excluding teachers) of the State outside of New York City. The NYSLRS administers two systems: the Employee Retirement System (ERS) and the Police and Fire Retirement System. There are six benefit tiers and 327 plans; the employee's date of entry into the plan determines membership in which tier. Major differences between tiers include the age of eligibility for retirement and required employee contributions. The New York State Common Retirement Fund (CRF ) holds and invests the assets of the system. The state comptroller is the sole trustee of the CRF and head of the system.
NYSTRS administers pension and other benefits to certified employees of more than 800 public school districts, state universities and colleges, and other state educational agencies outside of New York City.
Authorizing Statutes
According to §7 of the New York State Constitution:
After July first, nineteen hundred forty, membership in any pension or retirement system of the state or of a civil division thereof shall be a contractual relationship, the benefits of which shall not be diminished or impaired.
In March 2011, the Governor signed into law an act creating a new tier (Tier VI) for employees hired after April 1, 2012, providing for:
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Increased employee contribution rates;
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Increased age requirements for normal retirement;
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A decrease in the pension multiplier;
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Increased the number of years used to calculate final average salary; and
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Increased number of years required to vest.
Board Composition
Plan
|
Board Size
|
Appointed
|
Elected
|
Plan Members
|
Ex Officio
|
New York State Teachers Retirement System
|
10
|
5
|
4
|
6
|
1
|
New York City Teachers Retirement System
|
7
|
2
|
3
|
3
|
2
|
Contributions
Per the U.S. Census, in FY 2021, employer contributions to New York state and local government pension plans were 5.59 percent of all state and local government direct general spending.
Constitutional Protections
After July 1, 1940, membership in any pension or retirement system of the state or of a civil division is a contractual relationship, the benefits of which shall not be diminished or impaired. NY CONST., Article V, §7. Public Employees Federation, AFL CIO v. Cuomo, 467 N.E.2d 236 (NY Ct. App 1984)(reduction of benefits payable on death of state employees hired on or before July 1, 1976, was an unconstitutional impairment of contract since the death benefit was a benefit of membership in retirement system and it was rendered contractual regardless if specific funds were designated for death benefit); but see Ballentine v. Koch, 674 N.E.2d 292 (NY Ct. App. 1996)(by defining Police Officer's Variable Supplements Fund (POVSF) to not be a pension or retirement system, and by reserving to the legislature the unilateral right to amend or repeal POVSF statutory provisions, the legislation established a benefit scheme expressly outside the purview of the pension impairment clause of the State Constitution). (NY CONST., Article V, §7) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits