New York Assembly Bill A11516

New York 2025-2026 Regular Session

Caption

Relates to the definition of additional member contributions and basic member contributions for certain retirement system members to allow such contributions to be used as offsets

Summary

This bill amends the Retirement and Social Security Law to change how contribution balances are handled for certain New York City Employees’ Retirement System members covered by the 25-year retirement program for fire protection inspector members. Under the bill, excess additional member contributions may be used to offset a deficit in basic member contributions, and excess basic member contributions may be used to offset a deficit in additional member contributions. The measure applies to the contribution accounting rules for these members rather than changing the underlying retirement benefit structure. The bill also clarifies that these offsets do not change the tax treatment of the contributions under section 414(h) of the Internal Revenue Code. It takes effect immediately and is limited to the affected NYCERS Tier 4 or Tier 6 Fire Protection Inspector 25-Year Plans. The fiscal note states that the proposal is not expected to change employer contribution amounts or timing and would not affect member benefits, but would reduce administrative burdens associated with returning excess contributions, collecting separate deficit payments, or calculating actuarial reductions.

Impact

The bill would amend sections 604-j and 613 of the Retirement and Social Security Law to permit cross-offsetting between basic member contributions and additional member contributions for certain fire protection inspector retirement plan participants. In practical terms, it gives NYCERS and affected members more flexibility in reconciling contribution shortfalls and overpayments within the 25-year plan, while preserving existing benefit levels and tax designation rules. The legislation is expected to have no fiscal impact on employer contributions and is framed as an administrative and accounting change for the retirement system and its members.

Sentiment

The available context suggests generally favorable sentiment toward the bill, or at least no recorded opposition. There are no committee transcripts or recorded votes in the provided materials, and the fiscal note describes the proposal as a simplification that reduces administrative burdens without changing benefits or employer costs. The bill’s narrow scope and technical nature indicate it is intended to resolve a contribution-accounting issue for a specific group of retirement system members.

Contention

No explicit controversy is reflected in the provided record. The main policy question is whether excess basic and additional member contributions should be allowed to offset one another for affected NYCERS fire protection inspector members, rather than being handled separately. Any concern would likely center on retirement-system administration and contribution accounting, but the fiscal note indicates the change does not alter benefits or employer funding, which may limit opposition.