Relates to increasing the earnings limitation for positions of public service; increases the earnings limitation from $35,000 to $65,000 in 2027 and thereafter.
STATE OF NEW YORK
________________________________________________________________________
8720--B
2025-2026 Regular Sessions
IN ASSEMBLY
June 2, 2025
___________
Introduced by M. of A. STIRPE, STECK, BRONSON, LUPARDO, McDONALD, MANK-
TELOW, SCHIAVONI, ANGELINO, ROMERO, GRIFFIN, BRABENEC, MILLER, CHLUD-
ZINSKI, BUTTENSCHON -- read once and referred to the Committee on
Governmental Employees -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- 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
increasing the earning limitations for retired persons in positions of
public service
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 212 of the retirement and social security law is
2 amended by adding a new subdivision 2-a to read as follows:
3 2-a. Notwithstanding the provisions of subdivision two of this
4 section, the earnings limitation for retired persons in a position of
5 public service shall be increased to sixty-five thousand dollars from
6 the year two thousand twenty-seven and thereafter.
7 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
Bill Description:
This fiscal note is prepared for legislative bill draft #03695-08-6.
This bill would add a new subdivision 2-a to Section 212 of the Retire-
ment and Social Security Law to increase the earnings-after-retirement
limitation to $65,000 for retired members who return to work in posi-
tions of public employment for calendar year 2027 and thereafter.
Currently this earnings limitation is $35,000. There is no earnings
limitation for retirees age 65 and above.
Cost:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03695-13-6
A. 8720--B 2
The annual cost to the participating employers of the New York State
Teachers' Retirement System is estimated to be $86.3 million or 0.42% of
payroll if this bill is enacted.
Included in this cost is the expectation that this increase in the
earnings-after-retirement limit will have an impact on the Retirement
System's patterns of retirement resulting in some members retiring
earlier than they otherwise would have. Earlier retirement generally
increases plan costs since members will be receiving their benefits for
a longer period. If retirement patterns shift more than expected, there
will be additional costs.
Data:
Member data as of June 30, 2025, prepared for the most recent actuari-
al valuation was used in determining this cost. The most recent data
distributions and statistics can be found in the System's Annual Report
for the fiscal year ended June 30, 2025. System assets are as reported
in the System's financial statements which can be found in the System's
Annual Report. This data will also be provided in the System's Actuarial
Valuation Report as of June 30, 2025.
Methods and Assumptions:
A summary of actuarial assumptions and methods will be provided in the
System's Actuarial Valuation Report as of June 30, 2025. Further details
can be found in the most recent Recommended Actuarial Assumptions 2025
Report. For the purposes of this fiscal note, the retirement rates have
been increased from the rates included in this report to reflect earlier
patterns of retirement.
Actuarial Certification:
We, the undersigned actuaries for the New York State Teachers' Retire-
ment System, certify the following:
1. The actuarial assumptions, methods, and data used are reasonable
for the purposes of this fiscal note, internally consistent and are in
accordance with standards of practice prescribed by the Actuarial Stand-
ards Board and generally accepted actuarial principles and procedures.
2. We relied on member data supplied by the participating employers of
the New York State Teachers' Retirement System and assets as supplied in
the annual Financial Statements by NYSTRS' Finance Department.
3. Results were prepared based on our current understanding of the
proposal as of the date of this fiscal note. If the language or our
understanding of the proposal changes, the results could change and
require the issuance of a new fiscal note. The next annual update of the
actuarial valuation could also produce different results. Results should
not be relied upon for any other purpose.
4. This fiscal note was prepared in accordance with New York State
Retirement and Social Security Law, New York State Education Law, appli-
cable Internal Revenue Code, and accepted actuarial standards of prac-
tice as of the date of this fiscal note. This fiscal note does not
constitute a legal opinion on the viability of this legislative
proposal.
5. We are members of the American Academy of Actuaries and the Society
of Actuaries, and we meet the Qualification Standards of the American
Academy of Actuaries to render the actuarial opinion contained herein.
We are currently compliant with the Continuing Professional Development
Requirement of the Society of Actuaries.
Fiscal Note Identification:
This Fiscal Note, 2026-15, dated January 29, 2026, was prepared by the
Office of the Actuary of the New York State Teachers' Retirement System
and is intended for use only during the 2026 Legislative Session.
A. 8720--B 3
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would amend the retirement and social security law (RSSL) to
add new subdivision 2-a to §212, increasing the earnings limitation for
a retired person of the New York State and Local Retirement System who
returns to public employment to $65,000 beginning in 2027. Currently,
the salary limit is $35,000.
Insofar as this bill affects the New York State and Local Employees'
Retirement System (NYSLERS), the direct cost incurred would be the
retiree's pension benefit paid while post-retirement earnings are
between $35,000 and $65,000 each calendar year. The pension benefit
expected to be paid by NYSLERS during that 4.5-month period is estimated
to be $18,000 per person.
There would be additional costs in the form of lost employer contrib-
utions due to non-billable post-retirement earnings, which are estimated
to be $5,400 per person.
In NYSLERS, pursuant to section 25 of the RSSL, the increased costs
would be borne entirely by the state of New York and would require an
itemized appropriation sufficient to pay the cost of the provision. For
each retiree rehired pursuant to this proposal, an annual cost of
$23,400 is expected.
Insofar as this bill affects the New York State and Local Police and
Fire Retirement System (NYSLPFRS), the direct cost incurred would be the
retiree's pension benefit paid while post-retirement earnings are
between $35,000 and $65,000 each calendar year. The pension benefit
expected to be paid by NYSLPFRS during that 2-month period is estimated
to be $15,000 per person.
There would be additional costs in the form of lost employer contrib-
utions due to non-billable post-retirement earnings, which are estimated
to be $11,000 per person.
In NYSLPFRS, all costs will be shared by the state of New York and all
participating employers and spread over future billing cycles. For each
retiree rehired pursuant to this proposal, an annual cost of $26,000 is
expected.
Insofar as this proposal disrupts the usual pattern and timing of
employee turnover (that is, if members retire earlier than assumed and
participating employers hire a retiree instead of a new billable
member), shifts in member behavior could generate losses that increase
the average billing rate in 20-year and 25-year service-based plans from
36.5% to 64.3%. In age-based plans, average billing rates could increase
from 17.6% to 21.8%. The actual increase in billing rates will depend
upon member and employer utilization, with the rates above representing
an upper maximum.
This proposal exclusively benefits retirees. Therefore, the increased
costs are attributable to legacy groups, but funding for this proposal
will be collected on salary reported for current and future members of
Tier 6.
Summary of relevant resources:
Membership data as of March 31, 2025 was used to measure the impact of
the bill, the same data used in the Actuarial Valuations dated April 1,
2025. Distributions and other statistics can be found in the 2025 Report
of the Actuary and the 2025 Annual Comprehensive Financial Report. The
actuarial assumptions and methods used are described in the 2025 Annual
Report to the Comptroller on Actuarial Assumptions, and the Codes, Rules
and Regulations of the State of New York: Audit and Control. The fair
value of assets and GASB disclosures can be found in the 2025 Financial
Statements and Supplementary Information.
A. 8720--B 4
Assumptions, demographics, and other considerations may have been
modified to better reflect specific provisions of any proposed benefit
change(s).
This fiscal note does not constitute a legal opinion on the viability
of the bill, nor is it intended to serve as a substitute for the profes-
sional judgment of an attorney.
This estimate, dated January 28, 2026, and intended for use only
during the 2026 Legislative Session, is Fiscal Note Number 2026-60. As
Chief Actuary of the New York State and Local Retirement System
(NYSLRS), I, Aaron Schottin Young, hereby certify that this analysis
complies with applicable Actuarial Standards of Practice as well as the
Code of Professional Conduct and Qualification Standards for Actuaries
Issuing Statements of Actuarial Opinion of the American Academy of Actu-
aries, of which I am a member. I am a member of NYSLRS but do not
believe it impairs my objectivity.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation would increase the $35,000 Retire-
ment and Social Security Law (RSSL) Section 212 post-retirement public
employment earnings limit to $65,000 for calendar year 2027 and each
year thereafter for certain New York City Retirement Systems and Pension
Funds (NYCRS) retirees who return to public service.
ILLUSTRATION - ADDITIONAL RETIREMENT ALLOWANCE TO BE PAID
Annual Annual Post-Retirement Earnings in Calendar Year
Retirement
Allowance $40,000 $50,000 $60,000 $70,000 $80,000
$30,000 $3,750 $9,000 $12,500 $12,857 $11,250
$40,000 $5,000 $12,000 $16,667 $17,143 $15,000
$50,000 $6,250 $15,000 $20,833 $21,429 $18,750
$60,000 $7,500 $18,000 $25,000 $25,714 $22,500
$70,000 $8,750 $21,000 $29,167 $30,000 $26,250
$80,000 $10,000 $24,000 $33,333 $34,286 $30,000
$90,000 $11,250 $27,000 $37,500 $38,571 $33,750
$100,000 $12,500 $30,000 $41,667 $42,857 $37,500
The resulting increases in employer contributions will be allocated to
New York City and other applicable obligors of NYCRS.
CENSUS DATA: The number of retirees who will return to public service
in the future is unknown and the portion of the pension allowance
suspended is highly dependent on their salary earned. The results above
illustrate the additional pension amount that would be paid under this
legislation given a retiree's post-retirement earnings and pension
allowance. The preliminary census data collected as of June 30, 2025 for
the potentially impacted service retiree population is summarized below.
NYCERS TRS BERS POLICE FIRE
Receiving Members
- Number Count: 21,212 10,658 1,972 24,775 1,276
- Average Age: 60.0 60.9 61.8 56.3 56.4
- Average Benefit: 47,000 59,200 19,600 76,300 103,900
IMPACT ON PENSION PAYMENTS: Retirees below age 65 who return to public
service and elect to be covered under the provisions of RSSL Section 212
are permitted to earn an amount not exceeding a specific dollar limit in
each calendar year. Once this dollar limit is reached, the retiree's
retirement allowance is suspended for the remainder of that calendar
A. 8720--B 5
year. The amount of the retirement allowance suspended is contingent
upon both individual post-retirement earnings and annual retirement
allowances.
Currently, the post-retirement earnings limitation in effect for
calendar year 2020 and each year thereafter is $35,000. Under the
proposed legislation, the post-retirement earnings limitation would be
increased to $65,000 for calendar year 2027 and each year thereafter.
ASSUMPTIONS AND METHODS: For illustrative purposes only, the table
above presents the estimated additional retirement allowances paid
(i.e., those benefits that would not be subject to suspension) for vari-
ous sample combinations of post-retirement annual earnings and annual
retirement allowance amounts.
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 2026-28 dated March 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.
