S T A T E O F N E W Y O R K
________________________________________________________________________
4666
2025-2026 Regular Sessions
I N S E N A T E
February 11, 2025
___________
Introduced by Sen. JACKSON -- 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
service retirement benefits for certain members of the New York city
employees' retirement system
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 505 of the retirement and social security law, as
amended by chapter 18 of the laws of 2012, is amended to read as
follows:
§ 505. Service retirement benefits; police/fire members, New York city
uniformed correction/sanitation revised plan members and investigator
revised plan members. a. The normal service retirement benefit for
police/fire members, New York city uniformed correction/sanitation
revised plan members and investigator revised plan members at normal
retirement age shall be a pension equal to fifty percent of final aver-
age salary, less fifty percent of the primary social security retirement
benefit commencing at age sixty-two, as provided in section five hundred
eleven of this article, EXCEPT THAT FOR POLICE/FIRE MEMBERS OF THE NEW
YORK CITY FIRE DEPARTMENT PENSION FUND OR THE NEW YORK CITY POLICE
PENSION FUND, THE NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED
PLAN MEMBERS OR INVESTIGATOR REVISED PLAN MEMBERS OF THE NEW YORK CITY
EMPLOYEES' RETIREMENT SYSTEM, THE NORMAL SERVICE RETIREMENT BENEFIT
SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT
COMMENCING AT AGE SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN
OF THIS ARTICLE.
b. The early service retirement benefit for police/fire members, New
York city uniformed correction/sanitation revised plan members and
investigator revised plan members shall be a pension equal to two and
one-tenths percent of final average salary times years of credited
service at the completion of twenty years of service or upon attainment
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04072-04-5
S. 4666 2
of age sixty-two, increased by one-third of one percent of final average
salary for each month of service in excess of twenty years, but not in
excess of fifty percent of final average salary, less fifty percent of
the primary social security retirement benefit commencing at age sixty-
two as provided in section five hundred eleven of this article,
provided, however, that New York city police/fire revised plan members,
New York city uniformed correction/sanitation revised plan members and
investigator revised plan members shall not be eligible to retire for
service prior to the attainment of twenty years of credited service, AND
PROVIDED FURTHER THAT FOR POLICE/FIRE MEMBERS OF THE NEW YORK CITY FIRE
DEPARTMENT PENSION FUND OR THE NEW YORK CITY POLICE PENSION FUND, THE
NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBERS OR
INVESTIGATOR REVISED PLAN MEMBERS OF THE NEW YORK CITY EMPLOYEES'
RETIREMENT SYSTEM, THE EARLY SERVICE RETIREMENT BENEFIT SHALL NOT BE
REDUCED BY THE PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT
AGE SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS
ARTICLE.
c. A police/fire member, a New York city uniformed
correction/sanitation revised plan member or an investigator revised
plan member who retires with twenty-two years of credited service or
less may become eligible for annual escalation of the service retirement
benefit if [he] SUCH MEMBER elects to have the payment of [his] THEIR
benefit commence on the date [he] SUCH MEMBER would have completed twen-
ty-two years and one month or more of service. In such event, the
service retirement benefit shall equal two percent of final average
salary for each year of credited service, less fifty percent of the
primary social security retirement benefit commencing at age sixty-two
as provided in section five hundred eleven of this article, EXCEPT THAT
FOR POLICE/FIRE MEMBERS OF THE NEW YORK CITY FIRE DEPARTMENT
PENSION FUND OR THE NEW YORK CITY POLICE PENSION FUND, NEW YORK CITY
UNIFORMED CORRECTION/SANITATION REVISED PLAN MEMBERS OR INVESTIGATOR
REVISED PLAN MEMBERS OF THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM,
THE SERVICE RETIREMENT BENEFIT SHALL NOT BE REDUCED BY THE PRIMARY
SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-TWO AS
PROVIDED IN SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE.
§ 2. Section 511 of the retirement and social security law is amended
by adding a new subdivision h to read as follows:
H. THIS SECTION SHALL NOT APPLY TO POLICE/FIRE MEMBERS OF THE NEW YORK
CITY FIRE DEPARTMENT PENSION FUND OR THE NEW YORK CITY POLICE PENSION
FUND, TO NEW YORK CITY UNIFORMED CORRECTION/SANITATION REVISED PLAN
MEMBERS OR INVESTIGATOR REVISED PLAN MEMBERS OF THE NEW YORK CITY
EMPLOYEES' RETIREMENT SYSTEM WHO RECEIVE A SERVICE RETIREMENT BENEFIT
PURSUANT TO SECTION FIVE HUNDRED FIVE OF THIS ARTICLE OR A DEFERRED
VESTED BENEFIT PURSUANT TO SECTION FIVE HUNDRED SIXTEEN OF THIS ARTICLE.
§ 3. Subdivision c of section 516 of the retirement and social securi-
ty law, as amended by chapter 18 of the laws of 2012, is amended to read
as follows:
c. The deferred vested benefit of police/fire members, New York city
police/fire revised plan members, New York city uniformed
correction/sanitation revised plan members or investigator revised plan
members shall be a pension commencing at early retirement age equal to
two and one-tenths percent of final average salary times years of cred-
ited service, less fifty percent of the primary social security retire-
ment benefit commencing at age sixty-two, as provided in section five
hundred eleven of this article, EXCEPT THAT FOR POLICE/FIRE MEMBERS OF
THE NEW YORK CITY FIRE DEPARTMENT PENSION FUND OR THE NEW YORK CITY
S. 4666 3
POLICE PENSION FUND, NEW YORK CITY UNIFORMED CORRECTION/SANITATION
REVISED PLAN MEMBERS OR INVESTIGATOR REVISED PLAN MEMBERS OF THE NEW
YORK CITY EMPLOYEES' RETIREMENT SYSTEM, THE DEFERRED VESTED BENEFIT
SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT
COMMENCING AT AGE SIXTY-TWO AS PROVIDED IN SECTION FIVE HUNDRED ELEVEN
OF THIS ARTICLE. A police/fire member, a New York city police/fire
revised plan member, a New York city uniformed correction/sanitation
revised plan member or investigator revised plan member may elect to
receive [his] THEIR vested benefit commencing at early retirement age or
age fifty-five. If the vested benefit commences before early retirement
age, the benefit shall be reduced by one-fifteenth for each year, if
any, that the member's early retirement age is in excess of age sixty,
and by one-thirtieth for each additional year by which the vested bene-
fit commences prior to early retirement age. If such vested benefit is
deferred until after such member's normal retirement age, the benefit
shall be computed and subject to annual escalation in the same manner as
provided for an early retirement benefit pursuant to subdivision c of
section five hundred five of this article.
§ 4. Notwithstanding any provision of law, rule or regulation to the
contrary, any effect on a participating employer's contribution rate due
to the provisions of this act shall not apply to the calculation of such
participating employer's contribution rate for the purposes of subdivi-
sion c of section 500 of the retirement and social security law.
§ 5. This act shall take effect on the sixtieth day after it shall
have become a law.
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 certain Tier 3 members of
NYCERS, POLICE, and FIRE.
EXPECTED INCREASE (DECREASE) IN EMPLOYER CONTRIBUTIONS
by Fiscal Year for the first 25 years ($ in Millions)
Year NYCERS POLICE FIRE TOTAL
2026 57.6 87.4 10.6 155.6
2027 41.7 78.4 11.1 131.2
2028 44.6 84.6 11.9 141.1
2029 47.6 90.5 12.7 150.8
2030 50.7 96.6 13.6 160.9
2031 53.7 102.5 14.5 170.7
2032 56.3 107.5 15.4 179.2
2033 59.0 112.4 16.3 187.7
2034 61.9 117.1 17.3 196.3
2035 64.5 121.8 18.3 204.6
2036 66.8 126.3 19.3 212.4
2037 69.1 130.8 20.4 220.3
2038 71.4 135.3 21.4 228.1
2039 73.7 139.9 22.5 236.1
2040 76.1 144.5 23.6 244.2
2041 61.0 149.1 24.7 234.8
2042 63.5 124.0 25.8 213.3
2043 66.0 128.9 23.0 217.9
2044 68.7 134.0 24.0 226.7
2045 71.5 139.2 25.1 235.8
2046 74.2 144.5 26.1 244.8
2047 77.0 149.7 27.1 253.8
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2048 79.8 155.2 28.0 263.0
2049 82.7 161.1 29.0 272.8
2050 85.6 167.2 30.0 282.8
Projected contributions include future new hires that may be impacted.
For Fiscal Year 2051 and beyond, the increase in normal cost for new
entrants will remain level as a percent of pay for the impacted popu-
lation (approximately 2.58% for NYCERS, 1.76% for POLICE, and 0.92% for
FIRE).
The entire increase in employer contributions will be allocated to New
York City.
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) NYCERS POLICE FIRE
(1) PV of Employer Contributions: 449.9 923.5 140.4
(2) PV of Employee Contributions: 0.0 0.0 0.0
Total PV of Benefits (1) + (2): 449.9 923.5 140.4
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
NYCERS POLICE FIRE
Increase (Decrease) in UAL: 170.6M 285.0M 36.6M
Number of Payments: 15 16 17
Amortization Payment: 17.5M 29.8M 3.9M
Additional One-time Payment: 18.4M 14.4M 0.3M
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.
NYCERS POLICE FIRE
Active Members
- Number Count: 8,320 21,782 5,572
- Average Age: 39.8 33.2 34.1
- Average Service: 7.2 6.5 6.2
- Average Salary: 106,000 116,200 118,600
Term. Vested Members
- Number Count: 800 1,012 14
- Average Age: 40.3 35.4 37.4
IMPACT ON MEMBER BENEFITS: Currently, Tier 3 normal service retire-
ment, early service retirement, and vested retirement benefits for
members in 22-Year Plans 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.
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Under the proposed legislation, the offset for such benefits would be
eliminated 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-
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 2025-08 dated February
10, 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.
