Modifies eligibility for ordinary disability benefits and re-employment of disability retirees of the New York city police pension fund Tier III plans.
STATE OF NEW YORK
________________________________________________________________________
3972--A
2025-2026 Regular Sessions
IN ASSEMBLY
January 30, 2025
___________
Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
Committee on Governmental Employees -- recommitted to the Committee on
Governmental Employees in accordance with Assembly Rule 3, sec. 2 --
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
eligibility for ordinary disability benefits and re-employment of
disability retirees of the New York city police pension fund Tier III
plans
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 506 of the retirement and social security law is
2 amended by adding a new subdivision a-1 to read as follows:
3 a-1. The provisions of subdivision a of this section shall not apply
4 to members of the New York city police pension fund. Medical examina-
5 tion of a police pension member in city-service for ordinary disability
6 shall be made upon the application of the police commissioner, or upon
7 the application of such member or of a person acting on such member's
8 behalf, stating that such member is physically or mentally incapacitated
9 for the performance of duty and ought to be retired. If such medical
10 examination shows that such member is physically or mentally incapaci-
11 tated for the performance of duty and ought to be retired, the medical
12 board shall so report and the board shall retire such member for ordi-
13 nary disability.
14 § 2. Subdivision d of section 507 of the retirement and social securi-
15 ty law, as added by chapter 890 of the laws of 1976, is amended to read
16 as follows:
17 d. If a member shall cease to be eligible for primary social security
18 benefits before attaining age sixty-five, or, if receipt of social secu-
19 rity benefits is not a condition for disability benefits hereunder,
20 shall engage in such employment or business activity as would render
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01285-04-6
A. 3972--A 2
1 such member ineligible for social security disability benefits (had [he
2 or she] such member otherwise been eligible), benefits hereunder shall
3 cease. Provided, however, if such member is otherwise eligible, the
4 state civil service department or appropriate municipal commission shall
5 place the name of such person, as a preferred eligible, on the appropri-
6 ate eligible lists prepared by it for positions for which such person is
7 stated to be qualified in a salary grade not exceeding that from which
8 such person retired. In such event, disability benefits shall be contin-
9 ued for such member until such member first shall be offered a position
10 in public service at such salary grade. This subdivision shall not apply
11 to members of the New York city police pension fund who shall be
12 governed by section 13-254 of the administrative code of the city of New
13 York.
14 § 3. This act shall take effect immediately and shall be deemed to
15 have been in full force and effect on and after July 1, 2009.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation modifies Ordinary Disability
Retirement (ODR) eligibility, and provides an additional ODR benefit,
for Tier 3 members of POLICE by removing the requirements of having at
least five years of credited service and being eligible for primary
Social Security disability benefits (SSDI).
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year POLICE
2027 7.0
2028 8.1
2029 9.2
2030 10.3
2031 11.4
2032 12.3
2033 13.1
2034 13.9
2035 14.8
2036 15.5
2037 16.3
2038 17.1
2039 17.8
2040 18.6
2041 19.3
2042 20.1
2043 23.4
2044 24.3
2045 25.1
2046 26.0
2047 26.9
2048 27.8
2049 28.7
2050 29.6
2051 30.6
Projected contributions include future new hires that may be impacted.
For Fiscal Year 2052 and beyond, the expected increase in normal cost as
a level percent of pay for impacted new entrants is approximately 0.32%.
The entire increase in employer contributions will be allocated to New
York City.
A. 3972--A 3
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, 2025 ($ in Millions)
Present Value (PV) POLICE
(1) PV of Employer Contributions: 114.5
(2) PV of Employee Contributions: 0.0
Total PV of Benefits (1)+(2): 114.5
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: (23.4) M
Number of Payments: 16
Amortization Payment: (2.6) M
CENSUS DATA: The estimates presented herein are based on preliminary
census data collected as of June 30, 2025. The census data for the
impacted population is summarized below.
POLICE
Active Members
-Number Count: 23,938
-Average Age: 33.5
-Average Service: 6.7
-Average Salary: 117,700
IMPACT ON MEMBER BENEFITS: Currently, active Tier 3 POLICE members are
eligible for an ODR benefit if they are approved for SSDI benefits and
have at least five years of credited service.
Under the proposed legislation, active or separated Tier 3 POLICE
members who are determined to be disabled by the POLICE Medical Board
would be eligible for an ODR benefit, irrespective of SSDI eligibility
and credited service. The safeguards provisions associated with SSDI
would be replaced with Tier 1 and Tier 2 safeguards.
The proposed ODR benefit would be equal to the greater of 1/3 of
applicable Final Average Salary (FAS) or 2% of applicable FAS multiplied
by credited service. This benefit would be subject to an offset, begin-
ning at age 62, equal to 50% of the primary social security benefit as
defined in Retirement and Social Security Law Section (RSSL) 511, if
any, and would be subject to annual escalation pursuant to RSSL Section
510.
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.
A. 3972--A 4
* For purposes of this Fiscal Note, it has been assumed that 100% of
members exiting for ODR under current ODR rates would be ineligible for
SSDI.
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 2026-46 dated March 20,
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.
