S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6289
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              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:
 
   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, PROVIDED, HOWEVER, THAT THE COMPUTATION OF THE
 NORMAL SERVICE RETIREMENT BENEFIT OF MEMBERS OF THE NEW YORK  CITY  FIRE
 DEPARTMENT  PENSION  FUND,  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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05898-03-5
              

 S. 6289                             2
 
 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 THE EARLY SERVICE RETIREMENT BENEFIT OF MEMBERS OF
 THE  NEW  YORK CITY FIRE DEPARTMENT PENSION FUND SHALL NOT BE REDUCED BY
 THE PRIMARY SOCIAL SECURITY RETIREMENT BENEFIT COMMENCING AT AGE  SIXTY-
 TWO AS PROVIDED BY 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 elects] THEY ELECT to have the  payment  of  [his]  THEIR
 benefit  commence  on the date [he] THEY would have completed twenty-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, PROVIDED, HOWEVER, THAT THE
 SERVICE RETIREMENT BENEFIT OF MEMBERS OF THE NEW YORK CITY FIRE  DEPART-
 MENT  PENSION  FUND  SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL SECURITY
 RETIREMENT BENEFIT COMMENCING AT AGE SIXTY-TWO AS  PROVIDED  BY  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. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THIS  SECTION
 SHALL  NOT APPLY TO MEMBERS OF THE NEW YORK CITY FIRE DEPARTMENT PENSION
 FUND 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, PROVIDED HOWEVER THAT THE DEFERRED VEST-
 ED  BENEFIT OF MEMBERS OF THE NEW YORK CITY FIRE DEPARTMENT PENSION FUND
 AND REVISED PLAN MEMBERS WHO ARE MEMBERS  OF  THE  NEW  YORK  CITY  FIRE
 DEPARTMENT PENSION FUND SHALL NOT BE REDUCED BY THE PRIMARY SOCIAL SECU-
 RITY  RETIREMENT  BENEFIT  COMMENCING  AT  AGE  SIXTY-TWO AS PROVIDED BY
 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-fif-
 teenth  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 benefit commences prior to  early  retirement  age.  If
 S. 6289                             3
 
 such vested benefit is deferred until after such member's normal retire-
 ment 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 the provisions of section 13-379 of the adminis-
 trative code of the city of New York, the provisions of this  act  shall
 apply  to  chapter three of title thirteen of the administrative code of
 the city of New York.
   § 5. 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.
   § 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.