Should we keep the lights on or buy groceries this month? Should we fill the gas tank to visit our grandkids, or cover the copays for our medications? These are real conversations happening at kitchen tables across New York State. And one sentiment continues to stand out amongst the rest–not only for retirees on fixed incomes, but in the headlines and from all sides of the political aisle: affordability.

Across New York, there is growing agreement that the affordability crisis must be addressed. Gov. Kathy Hochul, lawmakers, unions, advocacy organizations and New Yorkers across the state have all raised concerns about the rising cost of living. At the same time, we are seeing a dramatic increase in the number of residents aged 65 and older, growing to over 3.5 million as of 2023. That’s equivalent to 1 in 5 New Yorkers, many of whom are living on a fixed income. And according to the state comptroller, the number of people aged 60 and over is expected to increase to 5.5 million by 2030. 

As costs rise across the board, New York’s aging population must have more certainty and support to ensure they can continue to lead a quality life in the Empire State. The Retired Public Employees Association, or RPEA, which represents the interests of more than 500,000 state and local government retirees, urges elected leaders to heed our concerns and take action in the state budget to provide relief to older New Yorkers living on fixed incomes. 

New York's public retirees need stability and relief

This includes ending age discrimination in skilled nursing facilities care. Currently, Medicare provides a maximum of only 20 days with a required three-day hospital stay, while the Empire Plan provides 120 days in a skilled nursing facility with no required hospital stay for non-Medicare-primary enrollees. RPEA’s Skilled Nursing Facilities Bill (S.4724 Fahy/A.6091 McDonald) will ensure care and costs that are equitable for all, regardless of age. 

Eliminating the Income-Related Monthly Adjustment Amount, as proposed in the Executive’s budget proposal, would unfairly shift federally imposed Medicare costs onto retirees, causing undue stress and financial burden. RPEA fully supports both the Senate and Assembly’s proposals to restore IRMAA in the state budget.

To support opportunities for supplemental income in retirement, RPEA is advocating for common-sense legislation (S.6956 Ryan) to increase the earnings cap for retirees employed in public service positions. This bill, which has significant support from NYSAC, NYCOM and NYAOT, will raise the earnings cap from $35,000 to $50,000. This will not only support retirees on fixed incomes, but it will also support municipalities struggling to recruit and retain experienced public officials. Two-thirds of New York retirees receive pensions of less than $30,000 a year, making this a critical source of income for those living in higher cost regions of the state. RPEA appreciates the support of our leaders in the Senate, who included proposals for the SNF and earnings cap increase in their one-house budget.

New York retirees need a COLA increase

Over the past 25 years, the Consumer Price Index has increased a cumulative 87%, while the COLA for retirees has not met even the current 3% threshold. Only once, in 2022, when the inflation rate was 9%, did the COLA increase to the 3% threshold. Working with partner organizations and unions, RPEA continues to advocate for an increase in the earnings threshold for retirees. 

Public service retirees spent their careers serving our communities, helping to implement, sustain and improve the services relied on every day. Yet in retirement, many struggle to keep up with rising costs. The majority of retirees receive modest pensions. When skyrocketing prices outpace fixed incomes, they’re forced into difficult financial trade-offs that threaten their stability, livelihood and peace of mind.

New York’s public employees spent their entire careers serving others. In retirement, they deserve the dignity of knowing they can afford their medications, groceries and utilities that keep their homes warm and safe. 

Nearly 80% of retirees stay in New York in retirement and are responsible for $19.2 billion in economic activity. Let’s not give them a reason to leave. Affordability should not be a luxury in retirement. It should be a promise kept.

RoAnn Destito is board president of the Retired Public Employees Association.

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