S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7975--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2025
                                ___________
 
 Introduced  by  Sens.  SKOUFIS, ADDABBO, WEBER -- read twice and ordered
   printed, and when printed to be committed to the  Committee  on  Civil
   Service  and  Pensions  --  reported favorably from said committee and
   committed to the Committee on Finance --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05892-03-5
              

 S. 7975--A                          2
 
 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
 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
 S. 7975--A                          3
 
 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,
 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%.
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   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
 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.
 S. 7975--A                          5
 
   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
 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.