NY State Senate Bill 2025-S4262

Senate Bill S4262

2025-2026 Legislative Session

Relates to promotions of police detectives, sergeants, and lieutenants for retirement purposes

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Current Bill Status - In Senate Committee Cities 1 Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Feb 03, 2025	referred to cities 1

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2025-S4262 (ACTIVE) - Details

See Assembly Version of this Bill:: A5376
Current Committee:: Senate Cities 1
Law Section:: New York City Administrative Code
Laws Affected:: Amd §14-114, NYC Ad Cd
Versions Introduced in 2023-2024 Legislative Session:: S9663

2025-S4262 (ACTIVE) - Summary

Relates to promotions of police detectives, sergeants, and lieutenants for retirement purposes.

2025-S4262 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4262

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to promotions of police detectives, sergeants, and lieutenants
for retirement purposes

 
PURPOSE:

Increases the annual salary, imputed for final average salary purposes
with the New York city police pension fund, of police detectives,
sergeants, and lieutenants that have accrued twenty-five or more years
of service credit with the New York city police pension fund.

 
SUMMARY OF PROVISIONS:

Section 1 amends Secion 14-114 of the administrative code of the city of
New York to:

1. Increase the annual salary at a rate of five percentum for such final

average salary period, imputed for final average salary purposes with
the New York city police pension fund, of police detectives, sergeants,
and lieutenants that have accrued twenty-five years of service credit
with the New York city police pension fund.

2. Increase the annual salary at a rate of ten percentum for such final
average salary period, imputed for final average salary purposes with
the New York city police pension fund, of police detectives, sergeants,
and lieutenants that have accrued thirty years of service credit with
the New York city police pension fund.

3. Increase the annual salary at a rate of fifteen percentum for such
final average salary period, imputed for final average salary purposes
with the New York city police pension fund, of police detectives,
sergeants, and lieutenants that have accrued thirty-five years of
service credit with the New York city police pension fund.

Section 2 is the effective date.

 
JUSTIFICATION:

The City of New York Police Department is currently facing a retention
crisis, as our service members flock to other departments offering
(either actually or perceived) better salary and benefits packages after
gaining valuable training and experience with the City of New York. In
addition to this compensation disparity, these men and women of the
service face great danger every day as crime continues to rise to
historic heights in New York City and violence on law enforcement offi-
cers persists.

In addition to recruitment and retention efforts to retain valuable
knowledge and law enforcement experience, it is imperative to legislate
incentives to be promoted out of the rank of Police Officer, in order
retain and develop agency leadership. Additionally, this bill would
provide equity to the members retiring in the rank of Detective,
Sergeant, and Lieutenant with the current benefits afforded those retir-
ing in the rank of Police Officer, or Captain or above. Currently, New
York City Administrative Code § 14-111 provides that a First Grade
Police Officer who has served twenty-five years in rank shall have their
salary for pension purposes imputed as that of a Third Grade Detective,
and a Police Officer with thirty years in rank, calculated as that of a
top-pay Sergeant. Similarly, § 14-114(c) provides that when a Captain
has served five years in rank, they shall have their salary for pension
purposes imputed as that of a Deputy Inspector and continues that after
ten years in rank as a Captain, should be calculated as that of an
Inspector, and after fifteen years in rank as a Captain, as that of a
Deputy Chief.

The current state of the legislation bookends the rank structure for the
Department but leaves little long-term retention incentive to those
police officers serving in the rank of detective, sergeant, or lieuten-
ant. Moreover, it may have the adverse effect of disincentivizing police
officers to take civil service tests or seek discretionary promotions.

This proposed legislation roughly mirrors the concept of Administrative
Code § 14-111 afforded to First Grade Police Officers.  The salary
difference between the ranks of Police Officer and Detective Third Grade
is approximately a 5% difference and a 10% difference between Police
Officer and Sergeant. Extending this to a written expression of percent-
ages and removing the rank structure provides equality between ranks
while providing a pro-rata pension incentive to accrue decades of
service credit in promoted ranks.

As indicated by this data, many Police Officers are choosing to leave
the job at a young age after a relatively short career. Experienced
officers, incentivized by this bill, who extend their careers will
provide greater public safety through their knowledge and experience as
well as serve as mentors to the younger, less experienced officers. The
increased compensation in retirement provided by the proposed bill will
motivate experienced Police Officers to not only seek promotion out of
the rank of Police Officer, but also encourage retention by delaying
collection of their retirement allowance by providing the incentive of
benefits commensurate with the ranks above them.

By encouraging active members to prolong their public careers, the
NYPD's personnel services and associated pension fringe benefit should
decrease. To ensure public safety, adequate police staffing levels must
be maintained, which requires law enforcement officers be replaced as
they retire. The compensation paid to a retiree, which includes health
benefits, would be compounded by the new hire's associated salary and
fringe benefits, creating a greater expense to the City of New York.
Generally, the fringe benefit cost to an employer associated with
pension costs is greater for new entrants than retiring members.

 
PRIOR LEGISLATIVE HISTORY:

2024: S.9663 - REFERRED TO CITIES 1

 
FISCAL IMPLICATIONS:

See Fiscal Note

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S4262 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4262
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             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:
 
   Section  1.  Section  14-114 of the administrative code of the city of
 New York is amended by adding a new subdivision d to read as follows:
   D. (1) NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  WHEN  A
 DETECTIVE,  SERGEANT, OR LIEUTENANT SHALL HAVE ACCRUED TWENTY-FIVE YEARS
 OF UNIFORMED SERVICE WITH THE  NEW  YORK  CITY  POLICE  DEPARTMENT,  AND
 RETIRES IN ANY SUCH RANK, THEY SHALL HAVE FIVE PER CENTUM OF THE HIGHEST
 GRADE  OF  PAY  UNDER  THE APPLICABLE COLLECTIVE BARGAINING AGREEMENT OF
 SUCH RANK IN WHICH THEY RETIRE, ADDED TO THE APPLICABLE SALARY, USED FOR
 THE PURPOSES OF COMPUTING PENSION BENEFITS UNDER THE PLAN IN WHICH  THEY
 ARE  ENROLLED  WITH THE NEW YORK CITY POLICE PENSION FUND.  A MEMBER WHO
 RECEIVES AN INCREASE TO THEIR PENSION BENEFIT UNDER THIS PARAGRAPH SHALL
 NOT RECEIVE AN ADDITIONAL INCREASE UNDER SECTION 14-111 OF THIS CHAPTER;
 OR
   (2) NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  WHEN  A
 DETECTIVE,  SERGEANT,  OR  LIEUTENANT SHALL HAVE ACCRUED THIRTY YEARS OF
 UNIFORMED SERVICE WITH THE NEW YORK CITY POLICE DEPARTMENT, AND  RETIRES
 IN ANY SUCH RANK, THEY SHALL HAVE TEN PER CENTUM OF THE HIGHEST GRADE OF
 PAY UNDER THE APPLICABLE COLLECTIVE BARGAINING AGREEMENT OF SUCH RANK IN
 WHICH THEY RETIRE, ADDED TO THE APPLICABLE SALARY, USED FOR THE PURPOSES
 OF  COMPUTING PENSION BENEFITS UNDER THE PLAN IN WHICH THEY ARE ENROLLED
 WITH THE NEW YORK CITY POLICE PENSION FUND.   A MEMBER WHO  RECEIVES  AN
 INCREASE TO THEIR PENSION BENEFIT UNDER THIS PARAGRAPH SHALL NOT RECEIVE
 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

 
   (3)  NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO THE CONTRARY, WHEN A
 DETECTIVE, SERGEANT, OR LIEUTENANT SHALL HAVE ACCRUED THIRTY-FIVE  YEARS
 OF  UNIFORMED  SERVICE  WITH  THE  NEW  YORK CITY POLICE DEPARTMENT, AND
 RETIRES IN ANY SUCH RANK, THEY SHALL HAVE  FIFTEEN  PER  CENTUM  OF  THE
 HIGHEST  GRADE  OF PAY UNDER THE APPLICABLE COLLECTIVE BARGAINING AGREE-
 MENT OF SUCH RANK IN WHICH THEY RETIRE, ADDED TO THE APPLICABLE  SALARY,
 USED  FOR  THE  PURPOSES OF COMPUTING PENSION BENEFITS UNDER THE PLAN IN
 WHICH THEY ARE ENROLLED WITH THE NEW YORK CITY POLICE PENSION FUND.    A
 MEMBER  WHO  RECEIVES  AN  INCREASE  TO THEIR PENSION BENEFIT UNDER THIS
 PARAGRAPH SHALL NOT RECEIVE AN ADDITIONAL INCREASE UNDER SECTION  14-111
 OF THIS CHAPTER.
   § 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.
 S. 4262                             3
 
   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:
 S. 4262                             4
 
   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.

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