Affords certain members of the fire department pension fund with new or increased pension benefits for each year of additional service beyond their required minimum service.
Summary
S05058 amends New York City pension law to increase retirement benefits for certain members of the New York City Fire Department pension fund who work beyond the minimum service requirement. For Tier 2 members, the bill changes the additional pension accrual after 20 years of service from one-sixtieth to one-fortieth of average annual earnings for each extra year of service. For Tier 3 police/fire members in the New York City Fire Department pension fund, it allows continued service past normal retirement age and adds an extra pension amount equal to one-fortieth of final salary for each additional year worked beyond the minimum service period.
The bill also makes a technical amendment to the Administrative Code of the City of New York to reflect the revised Tier 2 benefit formula. The measure takes effect immediately and is intended to apply to eligible fire department pension fund members who remain in service past the relevant retirement thresholds. The fiscal note indicates the proposal would increase employer contributions, with the cost borne by New York City, and would increase unfunded actuarial liabilities for the affected pension system.
Impact
The bill would directly alter the pension benefit formulas governing certain New York City Fire Department pension fund members, increasing the value of extra years worked beyond 20 years of credited service. It would amend section 13-359 of the Administrative Code of the City of New York and add a new section 503-a to the Retirement and Social Security Law, thereby changing both city pension administration and state retirement law for covered police/fire members. The fiscal note estimates substantial added employer costs and higher long-term liabilities for New York City.
Sentiment
The available voting history suggests the bill was received favorably in committee, passing the Senate Civil Service and Pensions Committee unanimously by a 7-0 vote. The text and fiscal materials frame the measure as a benefit enhancement for long-serving firefighters rather than a controversial structural overhaul. No committee transcript was provided, so the record here shows support but not detailed debate.
Contention
The main point of contention is fiscal: the bill would increase pension benefits and employer contribution costs, with the fiscal note projecting significant added expenses and increased unfunded liability for New York City. Supporters are implicitly those favoring improved retirement incentives and compensation for extended service by firefighters, while potential critics would likely focus on the budgetary impact, the long-term actuarial cost, and the effect on municipal pension obligations. No recorded transcript debate is available to show specific objections or amendments beyond the benefit formula changes.
Same As
Affords certain members of the fire department pension fund with new or increased pension benefits for each year of additional service beyond their required minimum service.
Affords certain members of the fire department pension fund with new or increased pension benefits for each year of additional service beyond their required minimum service.
Removes the twenty-five year requirement for tier three escalation for service retirement of members of the New York city fire department pension fund.
Removes the twenty-five year requirement for tier three escalation for service retirement of members of the New York city fire department pension fund.
Provides that full escalation date means the first day of the month following the date on which a member completes or would have completed twenty-three years of credited service, with respect to service retirement benefits for uniformed members of the New York city fire department pension fund.
Provides that full escalation date means the first day of the month following the date on which a member completes or would have completed twenty-three years of credited service, with respect to service retirement benefits for uniformed members of the New York city fire department pension fund.
Provides for salary bonuses for members of the uniformed service with the New York city fire department who retire with at least twenty-five, thirty or thirty-five years of service.
Provides for salary bonuses for members of the uniformed service with the New York city fire department who retire with at least twenty-five, thirty or thirty-five years of service.
Relates to primary social security retirement benefits for certain members; provides that in the computation of the normal service retirement benefit of members of the New York city fire department pension fund, there shall be no reduction for the primary social security retirement benefit.
Provides for salary bonuses for members of the uniformed service with the New York city fire department who retire with at least twenty-five, thirty or thirty-five years of service, including an additional bonus for each year after year twenty-five.