Relates to primary social security retirement benefits for certain members; provides that in the computation of the normal service retirement benefit of members of the New York city fire department pension fund, there shall be no reduction for the primary social security retirement benefit.
STATE OF NEW YORK
________________________________________________________________________
6289
2025-2026 Regular Sessions
IN SENATE
March 10, 2025
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the retirement and social security law, in relation to
primary social security retirement benefits for police/fire members
who are members of the New York city fire department pension fund
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, is amended to read as
3 follows:
4 § 505. Service retirement benefits; police/fire members, New York city
5 uniformed correction/sanitation revised plan members and investigator
6 revised plan members. a. The normal service retirement benefit for
7 police/fire members, New York city uniformed correction/sanitation
8 revised plan members and investigator revised plan members at normal
9 retirement age shall be a pension equal to fifty percent of final aver-
10 age salary, less fifty percent of the primary social security retirement
11 benefit commencing at age sixty-two, as provided in section five hundred
12 eleven of this article, provided, however, that the computation of the
13 normal service retirement benefit of members of the New York city fire
14 department pension fund, shall not be reduced by the primary social
15 security retirement benefit commencing at age sixty-two as provided in
16 section five hundred eleven of this article.
17 b. The early service retirement benefit for police/fire members, New
18 York city uniformed correction/sanitation revised plan members and
19 investigator revised plan members shall be a pension equal to two and
20 one-tenths percent of final average salary times years of credited
21 service at the completion of twenty years of service or upon attainment
22 of age sixty-two, increased by one-third of one percent of final average
23 salary for each month of service in excess of twenty years, but not in
24 excess of fifty percent of final average salary, less fifty percent of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05898-03-5
S. 6289 2
1 the primary social security retirement benefit commencing at age sixty-
2 two as provided in section five hundred eleven of this article,
3 provided, however, that New York city police/fire revised plan members,
4 New York city uniformed correction/sanitation revised plan members and
5 investigator revised plan members shall not be eligible to retire for
6 service prior to the attainment of twenty years of credited service, and
7 provided further that the early service retirement benefit of members of
8 the New York city fire department pension fund shall not be reduced by
9 the primary social security retirement benefit commencing at age sixty-
10 two as provided by section five hundred eleven of this article.
11 c. A police/fire member, a New York city uniformed
12 correction/sanitation revised plan member or an investigator revised
13 plan member who retires with twenty-two years of credited service or
14 less may become eligible for annual escalation of the service retirement
15 benefit if [he elects] they elect to have the payment of [his] their
16 benefit commence on the date [he] they would have completed twenty-two
17 years and one month or more of service. In such event, the service
18 retirement benefit shall equal two percent of final average salary for
19 each year of credited service, less fifty percent of the primary social
20 security retirement benefit commencing at age sixty-two as provided in
21 section five hundred eleven of this article, provided, however, that the
22 service retirement benefit of members of the New York city fire depart-
23 ment pension fund shall not be reduced by the primary social security
24 retirement benefit commencing at age sixty-two as provided by section
25 five hundred eleven of this article.
26 § 2. Section 511 of the retirement and social security law is amended
27 by adding a new subdivision h to read as follows:
28 h. Notwithstanding any provision of law to the contrary, this section
29 shall not apply to members of the New York city fire department pension
30 fund who receive a service retirement benefit pursuant to section five
31 hundred five of this article or a deferred vested benefit pursuant to
32 section five hundred sixteen of this article.
33 § 3. Subdivision c of section 516 of the retirement and social securi-
34 ty law, as amended by chapter 18 of the laws of 2012, is amended to read
35 as follows:
36 c. The deferred vested benefit of police/fire members, New York city
37 police/fire revised plan members, New York city uniformed
38 correction/sanitation revised plan members or investigator revised plan
39 members shall be a pension commencing at early retirement age equal to
40 two and one-tenths percent of final average salary times years of cred-
41 ited service, less fifty percent of the primary social security retire-
42 ment benefit commencing at age sixty-two, as provided in section five
43 hundred eleven of this article, provided however that the deferred vest-
44 ed benefit of members of the New York city fire department pension fund
45 and revised plan members who are members of the New York city fire
46 department pension fund shall not be reduced by the primary social secu-
47 rity retirement benefit commencing at age sixty-two as provided by
48 section five hundred eleven of this article. A police/fire member, a New
49 York city police/fire revised plan member, a New York city uniformed
50 correction/sanitation revised plan member or investigator revised plan
51 member may elect to receive [his] their vested benefit commencing at
52 early retirement age or age fifty-five. If the vested benefit commences
53 before early retirement age, the benefit shall be reduced by one-fif-
54 teenth for each year, if any, that the member's early retirement age is
55 in excess of age sixty, and by one-thirtieth for each additional year by
56 which the vested benefit commences prior to early retirement age. If
S. 6289 3
1 such vested benefit is deferred until after such member's normal retire-
2 ment age, the benefit shall be computed and subject to annual escalation
3 in the same manner as provided for an early retirement benefit pursuant
4 to subdivision c of section five hundred five of this article.
5 § 4. Notwithstanding the provisions of section 13-379 of the adminis-
6 trative code of the city of New York, the provisions of this act shall
7 apply to chapter three of title thirteen of the administrative code of
8 the city of New York.
9 § 5. Notwithstanding any provision of law, rule, or regulation to the
10 contrary, any effect on a participating employer's contribution rate due
11 to the provisions of this act shall not apply to the calculation of such
12 participating employer's contribution rate for the purposes of subdivi-
13 sion c of section 500 of the retirement and social security law.
14 § 6. This act shall take effect immediately.
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 Tier 3 members of the New
York City Fire Pension Fund (FIRE).
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year FIRE
2026 10.6
2027 11.1
2028 11.9
2029 12.7
2030 13.6
2031 14.5
2032 15.4
2033 16.3
2034 17.3
2035 18.3
2036 19.3
2037 20.4
2038 21.4
2039 22.5
2040 23.6
2041 24.7
2042 25.8
2043 23.0
2044 24.0
2045 25.1
2046 26.1
2047 27.1
2048 28.0
2049 29.0
2050 30.0
Projected contributions include future new hires that may be
impacted. For Fiscal Year 2051 and beyond, the expected increase
in normal cost as a level percent of pay for impacted new entrants
is approximately 0.92%.
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 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) FIRE
(1) PV of Employer Contributions: 140.4
(2) PV of Employee Contributions: 0.0
Total PV of Benefits (1) + (2): 140.4
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
FIRE
Increase (Decrease) in UAL: 36.6 M
Number of Payments: 17
Amortization Payment: 3.9 M
Additional One-time Payment: 0.3 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.
FIRE
Active Members
- Number Count: 5,572
- Average Age: 34.1
- Average Service: 6.2
- Average Salary: 118,600
Term. Vested Members
- Number Count: 14
- Average Age: 37.4
IMPACT ON MEMBER BENEFITS: Currently, Tier 3 normal service retire-
ment, early service retirement, and vested retirement benefits 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
beginning at age 62.
Under the proposed legislation, the offset for such benefits would be
eliminated for FIRE members, 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 demo-
graphics 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-
S. 6289 5
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 2025-19 dated February
20, 2025 was prepared by the Chief Actuary for the New York City Retire-
ment Systems and Pension Funds and is intended for use only during the
2025 Legislative Session.
