S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8178--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 5, 2025
                                ___________
 
 Introduced  by  M. of A. FALL -- read once and referred to the Committee
   on Governmental  Employees  --  committee  discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN  ACT  to amend the retirement and social security law, in relation to
   increasing the mandatory retirement age for New York police department
   members
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 15 of section 501 of the retirement and social
 security law, as added by chapter 890 of the laws of 1976, is amended to
 read as follows:
   15. "Mandatory retirement age" shall mean  age  seventy,  for  general
 members, and age sixty-two, for police/fire members, AND AGE SIXTY-FIVE,
 FOR  POLICE MEMBERS WHO ARE SUBJECT TO THE PROVISIONS OF THIS ARTICLE ON
 OR AFTER JULY FIRST, TWO THOUSAND TWENTY-FIVE.
   § 2. Subdivision d of section 503 of the retirement and social securi-
 ty law, as amended by section 2 of part SS of chapter 55 of the laws  of
 2025, is amended to read as follows:
   d.  The  normal  service  retirement benefit specified in section five
 hundred five of this article shall be paid to police/fire  members,  New
 York  city  uniformed  correction/sanitation  revised  plan  members and
 investigator revised plan members without regard to age upon  retirement
 after  twenty-two  years  of  service,  except  that  the normal service
 retirement benefit specified in section five hundred five of this  arti-
 cle  shall  be  paid  to police/fire members of the New York city police
 pension fund, after twenty years of service.  Early  service  retirement
 shall  be  permitted  upon  retirement  after  twenty  years of credited
 service or attainment of age sixty-two OR ATTAINMENT OF  AGE  SIXTY-FIVE
 FOR  POLICE MEMBERS  WHO  ARE  SUBJECT TO THE PROVISIONS OF THIS ARTICLE
 ON  OR  AFTER  JULY  FIRST, TWO THOUSAND TWENTY-FIVE, provided, however,
 that New York city police/fire  revised  plan  members,  New  York  city
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09749-09-5
              

 A. 8178--A                          2
 
 uniformed  correction/sanitation  revised  plan members and investigator
 revised plan members shall not be eligible to retire for  service  prior
 to the attainment of twenty years of credited service.
   § 3. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY:  This  proposed legislation would raise the mandatory retire-
 ment age from 62 to 65 for certain Tier 3 members of the New  York  City
 Police Pension Fund (POLICE).

          EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                     Year                POLICE
                     2026                (4.7)
                     2027                (5.1)
                     2028                (5.5)
                     2029                (5.9)
                     2030                (6.3)
                     2031                (6.7)
                     2032                (7.0)
                     2033                (7.4)
                     2034                (7.7)
                     2035                (7.9)
                     2036                (8.2)
                     2037                (8.5)
                     2038                (8.7)
                     2039                (8.9)
                     2040                (9.1)
                     2041                (9.4)
                     2042                (7.7)
                     2043                (8.0)
                     2044                (8.3)
                     2045                (8.7)
                     2046                (9.1)
                     2047                (9.4)
                     2048                (9.7)
                     2049                (10.0)
                     2050                (10.4)
 
   Projected contributions include future new hires that may be impacted.
 For Fiscal Year 2051 and beyond, the expected decrease in normal cost as
 a level percent of pay for impacted new entrants is approximately 0.11%.
 This  decrease  in projected costs is due to potentially larger benefits
 paid later having a lower actuarial impact than marginally smaller bene-
 fits paid earlier.
   The entire decrease in employer contributions will be allocated to New
 York City.
   PRESENT VALUE OF BENEFITS:  The  Present  Value  of  Benefits  is  the
 discounted  expected  value  of  benefits paid to current members if all
 assumptions are met, including future service accrual and pay increases.
 Future new hires are not included in this present value.
 
          INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
                    as of June 30, 2024 ($ in Millions)
           Present Value (PV)                    POLICE
           (1) PV of Employer Contributions:     (30.3)
           (2) PV of Employee Contributions:       0.6
 A. 8178--A                          3

           Total PV of Benefits (1) + (2):       (29.7)
 
   UNFUNDED  ACCRUED  LIABILITY  (UAL): Actuarial Accrued Liabilities are
 the portion of the Present Value of Benefits allocated to past  service.
 Changes  in UAL were amortized over the expected remaining working life-
 time of those impacted using level dollar payments.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
                                         POLICE
           Increase (Decrease) in UAL:   (17.7) M
           Number of Payments:              16
           Amortization Payment:         (1.9) M
 
   CENSUS DATA: The estimates presented herein are based  on  preliminary
 census  data  collected  as  of  June  30, 2024. The census data for the
 impacted population is summarized below.
 
                                         POLICE
           Active Members
           - Number Count:               21,764
           - Average Age:                33.2
           - Average Service:            6.5
           - Average Salary:             116,200
 
   IMPACT ON  MANDATORY  RETIREMENT:  Currently,  active  Tier  3  POLICE
 members  who  reach  the  age  of  62  are generally required to retire,
 regardless of whether the member is eligible for Normal Service  Retire-
 ment. Upon mandatory retirement, members can generally choose to collect
 a vested retirement benefit or, if eligible, an Early Service Retirement
 benefit.    Members who retire without attaining 20 years of service are
 not eligible for Variable Supplements Fund (VSF) benefits.
   Under the proposed legislation, members of POLICE who are  subject  to
 Article 14 on and after July 1, 2025, would be allowed to continue work-
 ing  past  age 62 and would instead be generally required to retire upon
 attaining age 65.
   ASSUMPTIONS AND METHODS: The  estimates  presented  herein  have  been
 calculated  based  on the Revised 2021 Actuarial Assumptions and Methods
 of the impacted retirement systems. In addition:
   * New entrants were assumed to replace exiting members so  that  total
 payroll increases by 3% each year for impacted groups. New entrant demo-
 graphics were developed based on data for recent new hires and actuarial
 judgement.
   *  For  purposes  of  this Fiscal Note, existing assumption tables for
 service retirement, ordinary disability, accidental disability, ordinary
 death, and accidental death rates have  been  extended  to  account  for
 decrements at ages 63 through 65.
   RISK  AND  UNCERTAINTY: The costs presented in this Fiscal Note depend
 highly on the actuarial assumptions, methods,  and  models  used,  demo-
 graphics  of  the impacted population, and other factors such as invest-
 ment, contribution, and other risks. If actual experience deviates  from
 actuarial   assumptions,  the  actual  costs  could  differ  from  those
 presented herein. Quantifying these risks is beyond the  scope  of  this
 Fiscal Note.
   This  Fiscal  Note  is intended to measure pension-related impacts and
 does not include other potential costs (e.g., administrative  and  Other
 A. 8178--A                          4
 
 Postemployment  Benefits). This Fiscal Note does not reflect any chapter
 laws that may have been enacted during the current legislative session.
   STATEMENT OF ACTUARIAL OPINION: Marek Tyszkiewicz and Gregory Zelikov-
 sky  are members of the Society of Actuaries and the American Academy of
 Actuaries. We are members of NYCERS, but do not believe it  impairs  our
 objectivity,  and  we  meet  the Qualification Standards of the American
 Academy of Actuaries to render the actuarial opinion  contained  herein.
 To  the  best  of  our knowledge, the results contained herein have been
 prepared in accordance with generally accepted actuarial principles  and
 procedures  and  with  the Actuarial Standards of Practice issued by the
 Actuarial Standards Board.
   FISCAL NOTE IDENTIFICATION: This Fiscal Note 2025-59 dated May 9, 2025
 was prepared by the Chief Actuary  for  the  New  York  City  Retirement
 Systems  and  Pension Funds and is intended for use only during the 2025
 Legislative Session.