Senate Bill S9306

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9306
 
                             I N  S E N A T E
 
                             February 27, 2026
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  longevity  bonuses  for members of the uniformed service
   with the New York city fire department

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The administrative code of the city of New York is amended
 by adding a new section 15-110.1 to read as follows:
   § 15-110.1 LONGEVITY BONUSES. A. NOTWITHSTANDING ANY PROVISION OF  LAW
 TO  THE  CONTRARY, WHEN A MEMBER SHALL HAVE ACCRUED TWENTY-FIVE YEARS OF
 UNIFORMED SERVICE WITH THE NEW YORK CITY FIRE DEPARTMENT, AND RETIRES IN
 ANY RANK, THEY SHALL HAVE FIVE PER CENTUM OF THE HIGHEST  GRADE  OF  PAY
 UNDER  THE  APPLICABLE  COLLECTIVE  BARGAINING AGREEMENT OF SUCH RANK IN
 WHICH THEY RETIRE, ADDED TO THE APPLICABLE SALARY, USED FOR THE PURPOSES
 OF COMPUTING PENSION BENEFITS UNDER THE PLAN IN WHICH THEY ARE  ENROLLED
 WITH THE NEW YORK CITY FIRE DEPARTMENT PENSION FUND; OR
   B. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A MEMBER
 SHALL  HAVE  ACCRUED THIRTY YEARS OF UNIFORMED SERVICE WITH THE NEW YORK
 CITY FIRE DEPARTMENT, AND RETIRES IN ANY RANK, THEY SHALL HAVE  TEN  PER
 CENTUM  OF  THE  HIGHEST  GRADE  OF  PAY UNDER THE APPLICABLE COLLECTIVE
 BARGAINING AGREEMENT OF SUCH RANK IN WHICH THEY  RETIRE,  ADDED  TO  THE
 APPLICABLE  SALARY,  USED FOR THE PURPOSES OF COMPUTING PENSION BENEFITS
 UNDER THE PLAN IN WHICH THEY ARE ENROLLED WITH THE NEW  YORK  CITY  FIRE
 PENSION FUND; OR
   C. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, WHEN A MEMBER
 SHALL  HAVE  ACCRUED THIRTY-FIVE YEARS OF UNIFORMED SERVICE WITH THE NEW
 YORK CITY FIRE DEPARTMENT, AND RETIRES IN  ANY  RANK,  THEY  SHALL  HAVE
 FIFTEEN  PER  CENTUM  OF  THE  HIGHEST GRADE OF PAY UNDER THE APPLICABLE
 COLLECTIVE BARGAINING AGREEMENT OF SUCH RANK IN WHICH THEY RETIRE, ADDED
 TO THE APPLICABLE SALARY, USED FOR THE  PURPOSES  OF  COMPUTING  PENSION
 BENEFITS  UNDER  THE  PLAN  IN WHICH THEY ARE ENROLLED WITH THE NEW YORK
 CITY FIRE PENSION FUND.
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13848-02-6
 S. 9306                             2
 
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   SUMMARY: This proposed legislation, as it relates to the New York City
 Fire Pension Fund (FIRE), would increase the salary used for determining
 pension  benefits  for  members  who  retire  with  at least 25 years of
 uniformed FIRE service.
           EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
           by Fiscal Year for the first 25 years ($ in Millions)
                     Year                FIRE
                     2027                 0.0
                     2028                 2.7
                     2029                 5.6
                     2030                 8.5
                     2031                11.5
                     2032                14.6
                     2033                17.8
                     2034                21.0
                     2035                24.3
                     2036                27.7
                     2037                31.2
                     2038                34.7
                     2039                38.2
                     2040                41.7
                     2041                45.4
                     2042                46.4
                     2043                47.3
                     2044                48.3
                     2045                49.2
                     2046                50.1
                     2047                51.0
                     2048                51.9
                     2049                52.9
                     2050                53.9
                     2051                54.8
   Employer Contribution impact beyond Fiscal Year  2051  is  not  shown.
 Projected  contributions  are  based on historical experience for Tier 2
 members. Future retirement patterns may differ due to a shift  in  popu-
 lation from Tier 2 to Tier 3.
   The entire increase in employer contributions will be allocated to New
 York City.
   PRESENT VALUE OF BENEFITS: The Present Value of Benefits (PVFB) is the
 discounted  expected  value  of  benefits paid to current members if all
 assumptions are met, including future service accrual and pay increases.
   The enactment of this proposed legislation is expected to increase the
 PVFB by approximately $23.2 million in the first  year  and  every  year
 thereafter,  adjusted  for inflation, group demographics, and the actual
 experience of benefiting retirees. Each year's  PVFB  increase  will  be
 recognized in the year benefits are first payable.
   UNFUNDED  ACCRUED  LIABILITY  (UAL): Actuarial Accrued Liabilities are
 the portion of the Present Value of Benefits allocated to past  service.
 Changes in UAL were recognized as future gain/loss.
 
                AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
 
                Recognized as Ongoing Gain/Loss    FIRE
                Increase (Decrease) in UAL:        23.2 M
                Number of Payments:                  14
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                Amortization Payment:              2.7 M
 
   CENSUS  DATA:  The estimates presented herein are based on preliminary
 census data collected as of June 30, 2025.  The  census  data  for  FIRE
 active members is summarized below.
 
                                                     FIRE
                Active Members
                - Number Count:                       11,178
                - Average Age:                          40.3
                - Average Service:                      13.1
                - Average Salary:                    141,257
 
   The 2024 salaries used in this analysis were provided by the Uniformed
 Firefighters  Association  and  are  summarized below. The salaries were
 increased with assumed inflation.
   * Firefighters would use a highest grade of pay of $140,392.
   * Lieutenants would use a highest grade of pay of $157,751.
   * Captains would use a highest grade of pay of $179,842.
   * Chiefs would use a highest grade of pay of $255,863.
   * Marshals would use a highest grade of pay of $223,866.
   * Medical Officers would use a highest grade of pay of $235,229.
   Data from the prior eleven years of actuarial valuations was  used  to
 estimate  the number of retirees who could potentially benefit from this
 proposed legislation each year and is summarized below.
 
 Average Number      Firefighters  Lieutenants  Captains  Chiefs  Marshals*
 Retired per Year
 At least 25 but          55           23          13       4        5
 less than 30 years
 of service
 At least 30 but          27           14          11       13       2
 less than 35 years
 of service
 At least 35 years        11            8           8       17       2
 of service
 
 * Includes Medical officers.
   IMPACT ON MEMBER BENEFITS: The proposed legislation would increase the
 applicable salary used for computing pension benefits  for  members  who
 retire with at least 25 years of uniformed FIRE service.
   The increase in applicable salary would be equal to:
   *  5%  for  members with at least 25 years of service, 10% for members
 with at least 30 years of service, or 15% for members with at  least  35
 years of service, multiplied by
   *  The highest grade of pay under the applicable collective bargaining
 agreement of the rank in which the member retires.
   For example, a Tier  2  firefighter  who  retires  with  32  years  of
 uniformed FIRE service would receive an increase in their annual pension
 of  approximately  $8,452  (based on adding 10% of the highest pay grade
 for firefighters with assumed overtime and salary inflation of  $158,622
 to  the  applicable salary used for the benefit calculation). Additional
 benefits would then be subject to  applicable  Cost-of-Living  or  Esca-
 lation increases.
   Based on an estimate of the number of FIRE members who are expected to
 be  impacted  by  this proposed legislation, the annual increase in FIRE
 S. 9306                             4
 
 pension benefits paid will be approximately $2.0 million  in  the  first
 year and increase in every year thereafter.
   With  respect  to  an individual member, the impact on benefits due to
 this proposed legislation could vary greatly depending on  the  member's
 age, years of service, retirement cause, and Tier.
   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.
   * Future contribution impacts have been developed assuming a homogene-
 ous population and a consistent retirement pattern.
   * Costs for Tier  3  members  have  been  developed  by  applying  the
 increased  salary directly to Final Average Salary (i.e., without limit-
 ing salaries in the average based on prior years).
   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.
   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 2026-10 dated February 6,
 2026 was prepared by the Chief Actuary for the New York City  Retirement
 Systems  and  Pension Funds and is intended for use only during the 2026
 Legislative Session.