Provides that for New York city police/fire members, uniformed correction/sanitation revised plan and investigator revised plan members of the New York city employees' retirement system, the service retirement benefit shall not be reduced by the primary social security retirement benefit commencing at age sixty-two.
STATE OF NEW YORK
________________________________________________________________________
5879--A
2025-2026 Regular Sessions
IN ASSEMBLY
February 24, 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
service retirement benefits for certain members of the New York city
employees' retirement system
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 505 of the retirement and social security law, as
2 amended by chapter 18 of the laws of 2012, subdivision d as added by
3 section 3 of part SS of chapter 55 of the laws of 2025, is amended to
4 read as follows:
5 § 505. Service retirement benefits; police/fire members, New York city
6 uniformed correction/sanitation revised plan members and investigator
7 revised plan members. a. The normal service retirement benefit for
8 police/fire members, New York city uniformed correction/sanitation
9 revised plan members and investigator revised plan members at normal
10 retirement age shall be a pension equal to fifty percent of final aver-
11 age salary, less fifty percent of the primary social security retirement
12 benefit commencing at age sixty-two, as provided in section five hundred
13 eleven of this article, except that for police/fire members of the New
14 York city fire department pension fund or the New York city police
15 pension fund, the New York city uniformed correction/sanitation revised
16 plan members or investigator revised plan members of the New York city
17 employees' retirement system, the normal service retirement benefit
18 shall not be reduced by the primary social security retirement benefit
19 commencing at age sixty-two as provided in section five hundred eleven
20 of this article.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04072-06-6
A. 5879--A 2
1 b. The early service retirement benefit for police/fire members, New
2 York city uniformed correction/sanitation revised plan members and
3 investigator revised plan members shall be a pension equal to two and
4 one-tenths percent of final average salary times years of credited
5 service at the completion of twenty years of service or upon attainment
6 of age sixty-two, increased by one-third of one percent of final average
7 salary for each month of service in excess of twenty years, but not in
8 excess of fifty percent of final average salary, less fifty percent of
9 the primary social security retirement benefit commencing at age sixty-
10 two as provided in section five hundred eleven of this article,
11 provided, however, that New York city police/fire revised plan members,
12 New York city uniformed correction/sanitation revised plan members and
13 investigator revised plan members shall not be eligible to retire for
14 service prior to the attainment of twenty years of credited service, and
15 provided further that for police/fire members of the New York city fire
16 department pension fund or the New York city police pension fund, the
17 New York city uniformed correction/sanitation revised plan members or
18 investigator revised plan members of the New York city employees'
19 retirement system, the early service retirement benefit shall not be
20 reduced by the primary social security retirement benefit commencing at
21 age sixty-two as provided in section five hundred eleven of this
22 article.
23 c. A police/fire member, a New York city uniformed
24 correction/sanitation revised plan member or an investigator revised
25 plan member who retires with twenty-two years of credited service or
26 less may become eligible for annual escalation of the service retirement
27 benefit if [he] such member elects to have the payment of [his] their
28 benefit commence on the date [he] such member would have completed twen-
29 ty-two years and one month or more of service. In such event, the
30 service retirement benefit shall equal two percent of final average
31 salary for each year of credited service, less fifty percent of the
32 primary social security retirement benefit commencing at age sixty-two
33 as provided in section five hundred eleven of this article, except that
34 for police/fire members of the New York city fire department
35 pension fund or the New York city police pension fund, New York city
36 uniformed correction/sanitation revised plan members or investigator
37 revised plan members of the New York city employees' retirement system,
38 the service retirement benefit shall not be reduced by the primary
39 social security retirement benefit commencing at age sixty-two as
40 provided in section five hundred eleven of this article.
41 d. Notwithstanding anything to the contrary in any other law,
42 police/fire members of the New York city police pension fund shall be
43 eligible for a normal service retirement benefit in lieu of an early
44 service retirement benefit upon completing twenty years of service
45 pursuant to subdivision d of section five hundred three of this article.
46 § 2. Section 511 of the retirement and social security law is amended
47 by adding a new subdivision h to read as follows:
48 h. This section shall not apply to police/fire members of the New York
49 city fire department pension fund or the New York city police pension
50 fund, to New York city uniformed correction/sanitation revised plan
51 members or investigator revised plan members of the New York city
52 employees' retirement system who receive a service retirement benefit
53 pursuant to section five hundred five of this article or a deferred
54 vested benefit pursuant to section five hundred sixteen of this article.
A. 5879--A 3
1 § 3. Subdivision c of section 516 of the retirement and social securi-
2 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
3 as follows:
4 c. The deferred vested benefit of police/fire members, New York city
5 police/fire revised plan members, New York city uniformed
6 correction/sanitation revised plan members or investigator revised plan
7 members shall be a pension commencing at early retirement age equal to
8 two and one-tenths percent of final average salary times years of cred-
9 ited service, less fifty percent of the primary social security retire-
10 ment benefit commencing at age sixty-two, as provided in section five
11 hundred eleven of this article, except that for police/fire members of
12 the New York city fire department pension fund or the New York city
13 police pension fund, New York city uniformed correction/sanitation
14 revised plan members or investigator revised plan members of the New
15 York city employees' retirement system, the deferred vested benefit
16 shall not be reduced by the primary social security retirement benefit
17 commencing at age sixty-two as provided in section five hundred eleven
18 of this article. A police/fire member, a New York city police/fire
19 revised plan member, a New York city uniformed correction/sanitation
20 revised plan member or investigator revised plan member may elect to
21 receive [his] their vested benefit commencing at early retirement age or
22 age fifty-five. If the vested benefit commences before early retirement
23 age, the benefit shall be reduced by one-fifteenth for each year, if
24 any, that the member's early retirement age is in excess of age sixty,
25 and by one-thirtieth for each additional year by which the vested bene-
26 fit commences prior to early retirement age. If such vested benefit is
27 deferred until after such member's normal retirement age, the benefit
28 shall be computed and subject to annual escalation in the same manner as
29 provided for an early retirement benefit pursuant to subdivision c of
30 section five hundred five of this article.
31 § 4. Notwithstanding any provision of law, rule or regulation to the
32 contrary, any effect on a participating employer's contribution rate due
33 to the provisions of this act shall not apply to the calculation of such
34 participating employer's contribution rate for the purposes of subdivi-
35 sion c of section 500 of the retirement and social security law.
36 § 5. This act shall take effect on the sixtieth day after it shall
37 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 certain Tier 3 members of
NYCERS, POLICE, and FIRE.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS POLICE FIRE TOTAL
2027 49.4 82.3 11.9 143.6
2028 40.3 79.0 12.5 131.8
2029 42.7 84.0 13.2 139.9
2030 45.2 89.1 14.0 148.3
2031 47.6 93.8 14.8 156.2
2032 49.7 97.9 15.7 163.3
2033 51.9 102.0 16.5 170.4
2034 54.3 105.9 17.4 177.6
2035 56.3 109.7 18.3 184.3
2036 58.2 113.5 19.2 190.9
A. 5879--A 4
2037 60.1 117.3 20.2 197.6
2038 61.9 121.0 21.1 204.0
2039 63.8 124.8 22.1 210.7
2040 65.7 128.5 23.1 217.3
2041 67.6 132.3 24.0 223.9
2042 51.6 136.2 25.0 212.8
2043 53.6 108.7 25.9 188.2
2044 55.8 112.8 22.3 190.9
2045 57.9 117.0 23.2 198.1
2046 60.1 121.4 24.0 205.5
2047 62.3 125.7 24.9 212.9
2048 64.5 130.0 25.8 220.3
2049 66.8 134.5 26.6 227.9
2050 69.1 139.3 27.5 235.9
2051 71.6 144.4 28.3 244.3
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 2.14% for NYCERS, 1.52% for POLICE, and 0.84% for FIRE.
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, 2025 ($ in Millions)
Present Value (PV) NYCERS POLICE FIRE
(1) PV of Employer Contributions: 420.4 915.7 156.6
(2) PV of Employee Contributions: 0.00.00.0
Total PV of Benefits (1) + (2): 420.4 915.7 156.6
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
NYCERS POLICE FIRE
Increase (Decrease) in UAL: 168.5 M 294.3 M 43.5 M
Number of Payments: 15 16 17
Amortization Payment: 18.0 M 31.4 M 4.6 M
Additional One-time Payment: 11.4 M 8.1 M 0.2 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.
NYCERS POLICE FIRE
Active Members
- Number Count: 8,691 23,938 6,510
- Average Age: 40.2 33.5 34.5
- Average Service: 7.7 6.7 6.4
- Average Salary: 109,000 117,700 118,200
Term. Vested Members
A. 5879--A 5
- Number Count: 829 1,066 16
- Average Age: 40.9 36.3 38.3
IMPACT ON MEMBER BENEFITS: Currently, Tier 3 normal service retire-
ment, early service retirement, and vested retirement benefits for
POLICE and FIRE members, and NYCERS members in 22-Year Plans 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 begin-
ning at age 62.
Under the proposed legislation, the offset for such benefits would be
eliminated 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
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 2026-31 dated March 9,
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.
