New York Assembly Bill A07899

New York 2025-2026 Regular Session

• Introduced: 4/11/25
• Refer: 4/11/25
• Refer: 1/7/26

Caption

Provides for beneficiaries of the death benefits of an eligible uniformed member of the fire department of the city of New York the ability to elect to receive such benefits in a certain lump-sum amount.

Summary

A07899 would amend the Retirement and Social Security Law to create a new death-benefit option for certain members of the uniformed force of the New York City Fire Department. For eligible members who die on or after July 1, 2025, and who would have been entitled to a normal service retirement or early service retirement benefit at the time of death, the beneficiary or beneficiaries could elect to receive a lump-sum payment equal to the pension reserve that would have been established had the member retired on the date of death, including the member’s contributions plus interest, or the value of the existing death benefit, whichever is greater. The bill also allows the member, or a designated beneficiary after death, to elect in writing to receive the death benefit and pension reserve as an annuity instead of a lump sum, with the annuity calculated on an actuarially equivalent basis using the beneficiary’s age and the mortality and interest rates in effect at the time of death. The measure takes effect immediately and is aimed specifically at Tier 3 members of the New York City Fire Pension Fund, while also referencing enhanced plan members within the FDNY uniformed force.

Impact

The bill would change state pension law by adding a special death-benefit election for eligible FDNY uniformed members, effectively expanding the options available to their survivors beyond the current ordinary death benefit. In practical terms, it would allow certain beneficiaries to receive a larger lump-sum benefit tied to the member’s pension reserve, and it would authorize annuitization of that benefit under specified conditions. The fiscal note indicates the added cost would be borne by New York City through increased employer contributions to the fire pension fund, with modest annual increases projected over time and a small increase in unfunded accrued liability.

Sentiment

The available materials suggest a generally supportive or favorable policy intent, centered on improving survivor benefits for FDNY members and aligning Tier 3 benefits more closely with those available to earlier tiers. The bill’s caption and fiscal note frame it as a targeted benefit enhancement rather than a broad pension overhaul. No committee transcript or recorded vote information is provided, so there is no documented opposition or formal legislative debate in the supplied record.

Contention

The main potential point of contention is fiscal: the bill increases employer pension costs for New York City and adds to the fire pension fund’s liabilities, even if the projected increases are relatively small in the near term. Another possible issue is equity among pension tiers, since the bill gives Tier 3 FDNY members a benefit structure similar to a “death gamble” option already associated with Tier 2 members, which may raise questions about consistency across retirement system classes. The text does not show any expressed opposition, but the cost allocation and the selective extension of enhanced benefits are the most likely areas of concern.