S T A T E O F N E W Y O R K
________________________________________________________________________
8756
2025-2026 Regular Sessions
I N A S S E M B L Y
June 2, 2025
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
service retirement benefits for members of the New York city police
pension fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 505 of the retirement and social security law, as
amended by chapter 18 of the laws of 2012 and subdivision d as added by
section 3 of part SS of chapter 55 of the laws of 2025, is amended to
read as follows:
§ 505. Service retirement benefits; police/fire members, New York city
uniformed correction/sanitation revised plan members and investigator
revised plan members. a. The normal service retirement benefit for
police/fire members, New York city uniformed correction/sanitation
revised plan members and investigator revised plan members at normal
retirement age shall be a pension equal to fifty percent of final aver-
age salary, less fifty percent of the primary social security retirement
benefit commencing at age sixty-two, as provided in section five hundred
eleven of this article, EXCEPT THAT FOR MEMBERS OF THE NEW YORK CITY
POLICE PENSION FUND, THE NORMAL SERVICE RETIREMENT BENEFIT SHALL NOT BE
REDUCED BY THE PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT
AGE SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS
ARTICLE.
b. The early service retirement benefit for police/fire members, New
York city uniformed correction/sanitation revised plan members and
investigator revised plan members shall be a pension equal to two and
one-tenths percent of final average salary times years of credited
service at the completion of twenty years of service or upon attainment
of age sixty-two, increased by one-third of one percent of final average
salary for each month of service in excess of twenty years, but not in
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05892-04-5
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excess of fifty percent of final average salary, less fifty percent of
the primary social security retirement benefit commencing at age sixty-
two as provided in section five hundred eleven of this article,
provided, however, that New York city police/fire revised plan members,
New York city 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, AND
PROVIDED FURTHER THAT FOR MEMBERS OF THE NEW YORK CITY POLICE PENSION
FUND, THE EARLY SERVICE RETIREMENT BENEFIT SHALL NOT BE REDUCED BY THE
PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-TWO
AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
c. A police/fire member, a New York city uniformed
correction/sanitation revised plan member or an investigator revised
plan member who retires with twenty-two years of credited service or
less may become eligible for annual escalation of the service retirement
benefit if [he] SUCH MEMBER elects to have the payment of [his] SUCH
MEMBER'S benefit commence on the date [he] SUCH MEMBER would have
completed twenty-two years and one month or more of service. In such
event, the service retirement benefit shall equal two percent of final
average salary for each year of credited service, less fifty percent of
the primary social security retirement benefit commencing at age sixty-
two as provided in section five hundred eleven of this article, EXCEPT
THAT FOR MEMBERS OF THE NEW YORK CITY POLICE PENSION FUND, THE SERVICE
RETIREMENT BENEFIT SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL SECURITY
RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-TWO AS PROVIDED IN SECTION
FIVE HUNDRED ELEVEN OF THIS ARTICLE.
d. Notwithstanding anything to the contrary in any other law,
police/fire members of the New York city police pension fund shall be
eligible for a normal service retirement benefit in lieu of an early
service retirement benefit upon completing twenty years of service
pursuant to subdivision d of section five hundred three of this article.
§ 2. Section 511 of the retirement and social security law is amended
by adding a new subdivision h to read as follows:
H. THIS SECTION SHALL NOT APPLY TO MEMBERS OF THE NEW YORK CITY POLICE
PENSION FUND WHO RECEIVE A SERVICE RETIREMENT BENEFIT PURSUANT TO
SECTION FIVE HUNDRED FIVE OF THIS ARTICLE OR A DEFERRED VESTED BENEFIT
PURSUANT TO SECTION FIVE HUNDRED SIXTEEN OF THIS ARTICLE.
§ 3. Subdivision c of section 516 of the retirement and social securi-
ty law, as amended by chapter 18 of the laws of 2012, is amended to read
as follows:
c. The deferred vested benefit of police/fire members, New York city
police/fire revised plan members, New York city uniformed
correction/sanitation revised plan members or investigator revised plan
members shall be a pension commencing at early retirement age equal to
two and one-tenths percent of final average salary times years of cred-
ited service, less fifty percent of the primary social security retire-
ment benefit commencing at age sixty-two, as provided in section five
hundred eleven of this article, EXCEPT THAT FOR MEMBERS OF THE NEW YORK
CITY POLICE PENSION FUND, THE DEFERRED VESTED BENEFIT SHALL NOT BE
REDUCED BY THE PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT
AGE SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS
ARTICLE. A police/fire member, a New York city police/fire revised plan
member, a New York city uniformed correction/sanitation revised plan
member or investigator revised plan member may elect to receive [his]
SUCH MEMBER'S vested benefit commencing at early retirement age or age
fifty-five. If the vested benefit commences before early retirement age,
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the benefit shall be reduced by one-fifteenth for each year, if any,
that the member's early retirement age is in excess of age sixty, and by
one-thirtieth for each additional year by which the vested benefit
commences prior to early retirement age. If such vested benefit is
deferred until after such member's normal retirement age, the benefit
shall be computed and subject to annual escalation in the same manner as
provided for an early retirement benefit pursuant to subdivision c of
section five hundred five of this article.
§ 4. Notwithstanding any provision of law, rule or regulation to the
contrary, any effect on a participating employer's contribution rate due
to the provisions of this act shall not apply to the calculation of such
participating employer's contribution rate for the purposes of subdivi-
sion c of section 500 of the retirement and social security law.
§ 5. This act shall take effect on the sixtieth day after it shall
have become a law.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would eliminate the offset equal to
50% of the primary social security benefit in the service, early
service, and vested retirement benefits for 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 87.4
2027 78.4
2028 84.6
2029 90.5
2030 96.6
2031 102.5
2032 107.5
2033 112.4
2034 117.1
2035 121.8
2036 126.3
2037 130.8
2038 135.3
2039 139.9
2040 144.5
2041 149.1
2042 124.0
2043 128.9
2044 134.0
2045 139.2
2046 144.5
2047 149.7
2048 155.2
2049 161.1
2050 167.2
Projected contributions include future new hires that may be impacted.
For Fiscal Year 2051 and beyond, the expected increase in normal cost as
a level percent of pay for impacted new entrants is approximately 1.76%.
The entire increase 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
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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: 923.5
(2) PV of Employee Contributions: 0.0
Total PV of Benefits (1) + (2): 923.5
UNFUNDED ACCRUED LIABILITY (UAL): Actuarial Accrued Liabilities are
the portion of the Present Value of Benefits allocated to past service.
Changes in UAL for active members were amortized over the expected
remaining working lifetime of those impacted using level dollar
payments. UAL attributable to inactive members was recognized in the
first year.
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
POLICE
Increase (Decrease) in UAL: 285.0 M
Number of Payments: 16
Amortization Payment: 29.8 M
Additional One-time Payment: 14.4 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: 21,782
- Average Age: 33.2
- Average Service: 6.5
- Average Salary: 116,200
Term. Vested Members
- Number Count: 1,012
- Average Age: 35.4
IMPACT ON MEMBER BENEFITS: Currently, Tier 3 normal service retire-
ment, early service retirement, and vested retirement benefits are
subject to an offset equal to 50% of the primary social security benefit
as defined in Retirement and Social Security Law (RSSL) Section 511
beginning at age 62.
Under the proposed legislation, the offset for such benefits would be
eliminated for POLICE members, resulting in an increase in benefits
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
demographics were developed based on data for recent new hires and
actuarial judgement.
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
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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
Postemployment Benefits). This Fiscal Note does not reflect any chapter
laws that may have been enacted during the current legislative session.
This Fiscal Note does not include cost analyses relating to provisions
contained in RSSL Section 500(c).
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 2025-68 dated May 22,
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.