STATE OF NEW YORK
________________________________________________________________________
4262
2025-2026 Regular Sessions
IN SENATE
February 3, 2025
___________
Introduced by Sen. JACKSON -- read twice and ordered printed, and when
printed to be committed to the Committee on Cities 1
AN ACT to amend the administrative code of the city of New York, in
relation to promotions of police detectives, sergeants, and lieuten-
ants for retirement purposes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 14-114 of the administrative code of the city of
2 New York is amended by adding a new subdivision d to read as follows:
3 d. (1) Notwithstanding any provision of law to the contrary, when a
4 detective, sergeant, or lieutenant shall have accrued twenty-five years
5 of uniformed service with the New York city police department, and
6 retires in any such rank, they shall have five per centum of the highest
7 grade of pay under the applicable collective bargaining agreement of
8 such rank in which they retire, added to the applicable salary, used for
9 the purposes of computing pension benefits under the plan in which they
10 are enrolled with the New York city police pension fund. A member who
11 receives an increase to their pension benefit under this paragraph shall
12 not receive an additional increase under section 14-111 of this chapter;
13 or
14 (2) Notwithstanding any provision of law to the contrary, when a
15 detective, sergeant, or lieutenant shall have accrued thirty years of
16 uniformed service with the New York city police department, and retires
17 in any such rank, they shall have ten per centum of the highest grade of
18 pay under the applicable collective bargaining agreement of such rank in
19 which they retire, added to the applicable salary, used for the purposes
20 of computing pension benefits under the plan in which they are enrolled
21 with the New York city police pension fund. A member who receives an
22 increase to their pension benefit under this paragraph shall not receive
23 an additional increase under section 14-111 of this chapter; or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00082-03-5
S. 4262 2
1 (3) Notwithstanding any provision of law to the contrary, when a
2 detective, sergeant, or lieutenant shall have accrued thirty-five years
3 of uniformed service with the New York city police department, and
4 retires in any such rank, they shall have fifteen per centum of the
5 highest grade of pay under the applicable collective bargaining agree-
6 ment of such rank in which they retire, added to the applicable salary,
7 used for the purposes of computing pension benefits under the plan in
8 which they are enrolled with the New York city police pension fund. A
9 member who receives an increase to their pension benefit under this
10 paragraph shall not receive an additional increase under section 14-111
11 of this chapter.
12 § 2. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
SUMMARY: This proposed legislation, as it relates to the New York City
Police Pension Fund (POLICE), would increase the salary used for deter-
mining pension benefits for Detectives, Sergeants, and Lieutenants who
retire with at least 25 years of uniformed NYPD service.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year POLICE
2026 0.0
2027 2.8
2028 5.6
2029 8.5
2030 11.5
2031 14.6
2032 17.8
2033 21.2
2034 24.7
2035 28.4
2036 32.4
2037 36.5
2038 41.1
2039 45.9
2040 51.0
2041 53.6
2042 56.2
2043 59.0
2044 61.9
2045 64.9
2046 68.0
2047 71.1
2048 74.3
2049 77.5
2050 80.7
Projected contributions are based on historical experience for Tier
2 members. Future retirement patterns may differ due to a larger
impacted Tier 3 population (e.g., Tier 2 is expected to retire at 20
years of service whereas Tier 3 is expected to retire at 25 years of
service).
The entire increase in employer contributions will be allocated to New
York City.
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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 $23.3 million in the first year and every year
thereafter. Each year's PVFB increase will depend on the actual experi-
ence of benefiting retirees and 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.
For purposes of this Fiscal Note, changes in UAL were amortized as an
ongoing gain/loss using level dollar payments.
AMORTIZATION OF UNFUNDED ACCRUED LIABILITY
POLICE
Increase (Decrease) in UAL: 23.3 M
Number of Payments: 14
First-year Amortization Payment: 2.8 M
CENSUS DATA: The estimates presented herein are based on preliminary
census data collected as of June 30, 2024. The census data for POLICE
active members is summarized below.
POLICE
Active Members
- Number Count: 33,803
- Average Age: 37.5
- Average Service: 11.1
- Average Salary: 134,900
The salaries used in this analysis were provided by the Lieutenants
Benevolent Association and are summarized below.
o Detectives would use a highest grade of pay of $149,518
o Sergeants would use a highest grade of pay of $149,519 based on the
salary provided and adjusted to reflect outstanding wage contracts
o Lieutenants would use a highest grade of pay of $164,476
Data from the prior ten 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 Retired Detectives Sergeants Lieutenants
per Year
At least 25 but less
than 30 years of service 129 73 51
At least 30 but less
than 35 years of service 38 23 20
At least 35 years of
service 12 7 7
IMPACT ON MEMBER BENEFITS: The proposed legislation would increase the
applicable salary used for computing pension benefits (Final Salary for
Tier 2 members or Final Average Salary for Tier 3 members) who retire as
a detective, sergeant, or lieutenant with at least 25 years of uniformed
NYPD service.
The increase in applicable salary would be equal to:
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o 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
o The highest grade of pay under the applicable collective bargaining
agreement of the rank in which the member retires.
For example, a Detective who retires with 32 years of uniformed NYPD
service would receive an increase in their annual pension of approxi-
mately $7,476 (a 50% annual benefit of 10% multiplied by the highest-
grade detective pay of $149,518). This additional benefit would then be
subject to applicable Cost-of-Living or Escalation increases.
Based on an estimate of the number of POLICE members who are expected
to be impacted by this proposed legislation, the annual increase in
POLICE pension benefits paid will be approximately $1.9 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:
o 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.
o Future contribution impacts have been developed assuming a homogene-
ous population and consistent retirement pattern.
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 2025-04 dated January 31,
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.
