§ 510 — Escalation of benefits

New York § 510

• Jurisdiction: New York
• Law RSS: Retirement & Social Security
• Art. 14: Coordinated-escalator Retirement Plan

Text

§ 510. Escalation of benefits. a. Service retirement, disability and\nsurvivor benefits shall be subject to annual escalation as provided in\nthis section.\n b. The term "full escalation date" shall mean:\n 1. The first day of the month following the date on which a member\nattains age sixty-five, with respect to service retirement benefits for\ngeneral members and their beneficiaries.\n 2. The first day of the month following the date on which a member\ncompletes or would have completed twenty-five years of credited service,\nwith respect to service retirement benefits for police/fire members and\ntheir beneficiaries, New York city uniformed correction/sanitation\nrevised plan members and their beneficiaries or investigator revised\nplan members and their beneficiaries.\n 3. The first day of the month following the date on which a disability\nretiree first becomes eligible for a disability benefit, with respect to\nmembers eligible for ordinary or accidental disability benefits and\ntheir beneficiaries.\n 4. The first day of the month following the date on which a\nbeneficiary first eligible for a death benefit becomes eligible for such\nbenefit, with respect to ordinary and accidental death benefits which\nare paid other than as a lump sum.\n c. If the payment of benefits commences on the full escalation date,\nthe benefit shall be increased annually at an escalation rate equal to\nthe lesser of three percent or the increase in the cost-of-living index\nas provided in subdivision d hereof. In the event of a decrease in the\ncost-of-living index, the annual benefit shall be decreased by the\nlesser of three percent or the amount of the decrease in the\ncost-of-living index, as provided in subdivision d, provided that the\nbenefit, in any event, shall not be reduced below the benefit payable at\nthe initial commencement date. For each month that the benefit\ncommencement date precedes the full escalation date, the escalation rate\nshall be reduced by one thirty-sixth, and there shall be no escalation\nwhere benefits commence more than three years prior to the full\nescalation date.\n d. Cost-of-living index changes shall be computed on a cumulative\nbasis so that any increases or decreases not reflected in an adjustment\nto the benefit level shall be carried forward and applied in subsequent\nyears. Benefits shall be escalated commencing with the payment due for\nthe month of April, based on the cost-of-living index as of December\nthirty-first of the preceding year. If the initial benefit commencement\ndate is May first or later, the initial escalation adjustment for the\nfollowing April shall be reduced by one-twelfth for benefits commencing\non May first, plus a further reduction of one-twelfth for each month the\ninitial benefit commences thereafter.\n e. If a member elects to defer the service retirement benefit, after\nseparation from service, for the purpose of becoming eligible for annual\nescalation, the benefit so deferred shall be escalated at the full\nescalation rate until the deferred payment date, and thereafter shall be\nsubject to annual escalation as provided in this section.\n f. Notwithstanding any other provision of this article, the escalation\nof any service retirement, disability or death benefit payable in the\nform of a pension with respect to an elective member shall not result in\nany increase in the initial benefit payable until such elective member\ncompletes or would have completed (had such member continued in service)\nten years of creditable service after the date of election of coverage\nunder this article.\n g. Notwithstanding any other provision of this article, the annual\nescalation provided in this section shall not apply to the performance\nof duty disability retirement provided for in section five hundred\nseven-b of this article.\n h. Notwithstanding any other provision of this article, the annual\nescalation provided in this section shall not apply to the performance\nof duty disability retirement provided for in section five hundred\nseven-c of this article.\n i. Notwithstanding any other provision of this article, the annual\nescalation provided in this section shall not apply to the ordinary\ndisability benefit for New York city enhanced plan members provided for\nin subdivision c-1 of section five hundred six of this article or the\naccidental disability benefit for New York city enhanced plan members\nprovided for in paragraph three of subdivision c of section five hundred\nseven of this article. Such members who receive such ordinary disability\nbenefit or accidental disability benefit shall have a cost-of-living\nadjustment for such benefit, which shall be computed in the same manner\nas provided for by section 13-696 of the administrative code of the city\nof New York.\n