STATE OF NEW YORK
________________________________________________________________________
8178--A
2025-2026 Regular Sessions
IN ASSEMBLY
May 5, 2025
___________
Introduced by M. of A. FALL -- read once and referred to the Committee
on Governmental Employees -- 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
increasing the mandatory retirement age for New York police department
members
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 15 of section 501 of the retirement and social
2 security law, as added by chapter 890 of the laws of 1976, is amended to
3 read as follows:
4 15. "Mandatory retirement age" shall mean age seventy, for general
5 members, and age sixty-two, for police/fire members, and age sixty-five,
6 for police members who are subject to the provisions of this article on
7 or after July first, two thousand twenty-five.
8 § 2. Subdivision d of section 503 of the retirement and social securi-
9 ty law, as amended by section 2 of part SS of chapter 55 of the laws of
10 2025, is amended to read as follows:
11 d. The normal service retirement benefit specified in section five
12 hundred five of this article shall be paid to police/fire members, New
13 York city uniformed correction/sanitation revised plan members and
14 investigator revised plan members without regard to age upon retirement
15 after twenty-two years of service, except that the normal service
16 retirement benefit specified in section five hundred five of this arti-
17 cle shall be paid to police/fire members of the New York city police
18 pension fund, after twenty years of service. Early service retirement
19 shall be permitted upon retirement after twenty years of credited
20 service or attainment of age sixty-two or attainment of age sixty-five
21 for police members who are subject to the provisions of this article
22 on or after July first, two thousand twenty-five, provided, however,
23 that New York city police/fire revised plan members, New York city
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09749-09-5
A. 8178--A 2
1 uniformed correction/sanitation revised plan members and investigator
2 revised plan members shall not be eligible to retire for service prior
3 to the attainment of twenty years of credited service.
4 § 3. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would raise the mandatory retire-
ment age from 62 to 65 for certain 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 (4.7)
2027 (5.1)
2028 (5.5)
2029 (5.9)
2030 (6.3)
2031 (6.7)
2032 (7.0)
2033 (7.4)
2034 (7.7)
2035 (7.9)
2036 (8.2)
2037 (8.5)
2038 (8.7)
2039 (8.9)
2040 (9.1)
2041 (9.4)
2042 (7.7)
2043 (8.0)
2044 (8.3)
2045 (8.7)
2046 (9.1)
2047 (9.4)
2048 (9.7)
2049 (10.0)
2050 (10.4)
Projected contributions include future new hires that may be impacted.
For Fiscal Year 2051 and beyond, the expected decrease in normal cost as
a level percent of pay for impacted new entrants is approximately 0.11%.
This decrease in projected costs is due to potentially larger benefits
paid later having a lower actuarial impact than marginally smaller bene-
fits paid earlier.
The entire decrease 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: (30.3)
(2) PV of Employee Contributions: 0.6
A. 8178--A 3
Total PV of Benefits (1) + (2): (29.7)
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: (17.7) M
Number of Payments: 16
Amortization Payment: (1.9) 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: 21,764
- Average Age: 33.2
- Average Service: 6.5
- Average Salary: 116,200
IMPACT ON MANDATORY RETIREMENT: Currently, active Tier 3 POLICE
members who reach the age of 62 are generally required to retire,
regardless of whether the member is eligible for Normal Service Retire-
ment. Upon mandatory retirement, members can generally choose to collect
a vested retirement benefit or, if eligible, an Early Service Retirement
benefit. Members who retire without attaining 20 years of service are
not eligible for Variable Supplements Fund (VSF) benefits.
Under the proposed legislation, members of POLICE who are subject to
Article 14 on and after July 1, 2025, would be allowed to continue work-
ing past age 62 and would instead be generally required to retire upon
attaining age 65.
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.
* For purposes of this Fiscal Note, existing assumption tables for
service retirement, ordinary disability, accidental disability, ordinary
death, and accidental death rates have been extended to account for
decrements at ages 63 through 65.
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
A. 8178--A 4
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 2025-59 dated May 9, 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.
