STATE OF NEW YORK
________________________________________________________________________
6638--B
2025-2026 Regular Sessions
IN SENATE
March 19, 2025
___________
Introduced by Sens. GOUNARDES, SANDERS -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Civil Service
and Pensions -- recommitted to the Committee on Civil Service and
Pensions in accordance with Senate Rule 6, sec. 8 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- 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
calculating certain pensions
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision a of section 504 of the retirement and social
2 security law, as amended by chapter 18 of the laws of 2012, is amended
3 to read as follows:
4 a. The service retirement benefit for general members at normal
5 retirement age with twenty or more years of credited service shall be a
6 pension equal to one-fiftieth of final average salary times years of
7 credited service, not in excess of thirty years, less fifty percent of
8 the primary social security retirement benefit as provided in section
9 five hundred eleven of this article. The service retirement benefit for
10 general members at normal retirement age with twenty or more years of
11 service who first become members of the New York state and local employ-
12 ees' retirement system on or after April first, two thousand twelve at
13 normal retirement age shall be a pension equal to the sum of [thirty-
14 five] forty per centum and one-fiftieth of final average salary for each
15 year of service in excess of twenty, but not in excess of thirty, times
16 final average salary times years of credited service.
17 § 2. Subdivisions a, b and b-1 of section 604 of the retirement and
18 social security law, subdivision a as amended and subdivision b-1 as
19 added by chapter 18 of the laws of 2012, subdivision b as amended by
20 chapter 266 of the laws of 1998 and the opening paragraph of subdivision
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06549-08-6
S. 6638--B 2
1 b as amended by section 8-b of part B of chapter 504 of the laws of
2 2009, are amended to read as follows:
3 a. The service retirement benefit at normal retirement age for a
4 member with less than twenty years of credited service[, or less than
5 twenty-five years credited service for a member who joins the New York
6 state teachers' retirement system on or after January first, two thou-
7 sand ten,] shall be a retirement allowance equal to one-sixtieth of
8 final average salary times years of credited service. Normal retirement
9 age for members who first become members of a public retirement system
10 of the state on or after April first, two thousand twelve shall be age
11 sixty-three.
12 b. The service retirement benefit at normal retirement age for a
13 member with twenty years or more of credited service[, or with twenty-
14 five or more years credited service for a member who first joins the New
15 York state teachers' retirement system on or after January first, two
16 thousand ten,] shall be a retirement allowance equal to one-fiftieth of
17 final average salary times years of credited service not in excess of
18 thirty years.
19 Credited service in excess of thirty years shall provide an additional
20 retirement allowance equal to three-two hundredths of the final average
21 salary for each year of credited service in excess of thirty years.
22 b-1. Notwithstanding any other provision of law to the contrary, the
23 service retirement benefit for members with twenty or more years of
24 credit service who first become a member of a public retirement system
25 of the state on or after April first, two thousand twelve at age sixty-
26 three shall be a pension equal to the sum of [thirty-five] forty per
27 centum and one-fiftieth of final average salary for each year of service
28 in excess of twenty times final average salary times years of credited
29 service. In no event shall any retirement benefit payable without
30 optional modification be less than the actuarially equivalent annuitized
31 value of the member's contributions accumulated with interest at five
32 percent per annum compounded annually to the date of retirement.
33 § 3. Section 1312 of the retirement and social security law, as added
34 by chapter 18 of the laws of 2012, is amended to read as follows:
35 § 1312. Benefit enhancements. Notwithstanding any other law to the
36 contrary, eligible employees shall be permitted to retire, without
37 penalty, upon reaching age fifty-seven and completing at least thirty
38 years of credited service. Employees retiring pursuant to this section
39 shall receive a pension allowance equal to the sum of [thirty-five]
40 forty per centum and one-fiftieth of final average salary for each year
41 of service in excess of twenty times final average salary times years of
42 credited service.
43 § 4. Notwithstanding any other provision of law to the contrary, none
44 of the provisions of this act shall be subject to section 25 of the
45 retirement and social security law.
46 § 5. 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
Retirement Systems and Pension Funds (NYCRS) would increase the percent-
age of Final Average Salary payable to Tier 6 NYCERS, TRS, and BERS
members who retire with 20 or more years of Credited Service.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS TRS BERS TOTAL
S. 6638--B 3
2027 75.3 90.7 13.3 179.3
2028 79.4 94.9 13.8 188.1
2029 83.8 99.5 14.4 197.7
2030 88.3 104.4 15.0 207.7
2031 92.9 109.6 15.6 218.1
2032 97.6 115.3 16.3 229.2
2033 102.3 121.3 17.0 240.6
2034 107.1 127.7 17.8 252.6
2035 112.0 134.5 18.5 265.0
2036 116.8 141.6 19.2 277.6
2037 121.7 149.1 20.0 290.8
2038 126.7 156.9 20.7 304.3
2039 131.6 165.1 21.5 318.2
2040 136.5 173.5 22.3 332.3
2041 141.5 182.1 18.4 342.0
2042 114.9 190.7 19.2 324.8
2043 119.9 199.1 20.0 339.0
2044 124.9 207.4 20.7 353.0
2045 130.0 177.7 21.5 329.2
2046 135.1 185.5 22.3 342.9
2047 140.2 193.0 23.0 356.2
2048 145.4 200.3 23.8 369.5
2049 150.7 207.3 24.6 382.6
2050 156.1 214.3 25.3 395.7
2051 161.7 221.2 26.1 409.0
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 0.49%
for NYCERS, 0.76% for TRS, and 0.60% for BERS.
The initial increase in employer contributions of $179.3 million is
estimated to be $138.7 million for New York City and $40.6 million for
the other obligors of NYCRS.
PRESENT VALUE OF BENEFITS: The Present Value of Benefits is the
discounted expected value of benefits paid to current members if all
assumptions are met, including future service accrual and pay increases.
Future new hires are not included in this present value.
INITIAL INCREASE (DECREASE) IN ACTUARIAL PRESENT VALUES
as of June 30, 2025 ($ in Millions)
Present Value (PV) NYCERS TRS BERS
(1) PV of Employer Contributions: 792.7 1,196.0 142.6
(2) PV of Employee Contributions: 0.00.00.0
Total PV of Benefits (1) + (2): 792.7 1,196.0 142.6
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 TRS BERS
S. 6638--B 4
Increase (Decrease) in UAL: 278.2 M 368.2 M 38.7 M
Number of Payments: 15 18 14
Amortization Payment: 31.6 M 37.9 M 4.6 M
Additional One-time Payment: 0.1 M 0.1 M 0.0 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 TRS BERS
Active Members
- Number Count: 99,608 71,364 37,490
- Average Age: 43.0 39.0 41.5
- Average Service: 5.2 5.7 2.2
- Average Salary: 87,100 86,500 37,900
Term. Vested Members
- Number Count: 2 2 1
- Average Age: 52.0 54.0 60.0
IMPACT ON MEMBER BENEFITS: Currently, the service retirement benefit
for Tier 6 basic plan members of NYCERS, TRS, and BERS who have 20 or
more years of Credited Service is equal to 35% of Final Average Salary
(FAS) plus 2% of FAS for each year of Credited Service in excess of 20.
Under the proposed legislation, the service retirement benefit for
Tier 6 basic plan members of NYCERS, TRS, and BERS who have 20 or more
years of Credited Service would be equal to 40% of FAS plus 2% of FAS
for each year of Credited Service in excess of 20.
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-
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 2026-16 dated February
13, 2026 was prepared by the Chief Actuary for the New York City Retire-
S. 6638--B 5
ment Systems and Pension Funds and is intended for use only during the
2026 Legislative Session.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
This bill would provide Tier 6 members of the New York State and Local
Employees' Retirement System (NYSLERS) with a benefit of 40% of FAS upon
attaining 20 years of service credit. Currently the benefit is 35% of
FAS. The benefit increase for each year of service credit beyond 20
would remain 2% of FAS.
The provisions of section 25 of the retirement and social security law
shall not apply.
Insofar as this bill affects NYSLERS, the present value of benefits
would increase by approximately $2.5 billion.
Benefit improvements will be funded by increasing the billing rates
charged annually. The annual contribution required by all participating
employers in NYSLERS would increase 0.8% of billable salary, with Tier 6
billing rates further increasing by 0.4% of salary (for a 1.2% total
annual rate increase). In total, annual contributions would increase
approximately $110 million to the state of New York and $170 million to
the local participating employers.
Required contributions will increase significantly as Tier 6 grows.
Employer costs would vary according to plan coverage and salary reported
in Tier 6.
These estimated costs are based on 323,488 Tier 6 members in NYSLERS
with annual salary of approximately $17 billion as of March 31, 2025.
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.
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 March 31, 2026, and intended for use only during
the 2026 Legislative Session, is Fiscal Note Number 2026-144. 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 Actuaries, 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:
Bill Description:
This fiscal note is prepared for legislative bill draft #06549-06-6.
This bill would amend Section 604 of the Retirement and Social Security
Law to improve the retirement benefit formula for Tiers 5 and 6 members
of the New York State Teachers' Retirement System. The Tier 5 benefit
formula would match the Tier 4 formula with eligibility for the 2%
S. 6638--B 6
multiplier at 20 years of service instead of 25 years as it is current-
ly. The retirement benefit formula for Tier 6 members with 20 or more
years of service would be 40% of final average salary plus 2% for each
additional year of service over 20. Currently, the benefit formula for
Tier 6 members with 20 or more years of service is 35% of final average
salary plus 2% for each additional year of service over 20.
Cost:
The annual cost to the participating employers of the New York State
Teachers' Retirement System for this benefit is estimated to be $109.6
million or 0.53% of payroll if this bill is enacted.
The System's "new entrant rate," a hypothetical employer contribution
rate that would be charged if we started a new retirement system without
any assets, is equal to 5.52% of pay under the current Tier 6 benefit
structure. This can be thought of as the long-term expected employer
cost of Tier 6, based on current actuarial assumptions. For the proposed
change to the Tier 6 benefit structure under this bill, this new entrant
rate is estimated to increase to 6.19% of pay, an increase of 0.67% of
pay.
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.
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.
S. 6638--B 7
We are currently compliant with the Continuing Professional Development
Requirement of the Society of Actuaries.
Fiscal Note Identification:
This Fiscal Note, 2026-24, dated April 30, 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.
