Relates to obtaining military credit for members of the New York state and local police and fire retirement system, the New York city police pension fund, and the New York city fire pension fund; provides that the calculation for military credit shall be equal to the product of the number of years of military service being claimed and three percent of such member's compensation earned during the twelve months of credited service.
Summary
S07114 amends the Retirement and Social Security Law to reduce the cost for certain public safety retirement system members to purchase credit for prior military service. Under current law, Tier 3 members of the New York State and Local Police and Fire Retirement System, the New York City Police Pension Fund, and the New York City Fire Pension Fund who first joined on or after April 1, 2012 must pay 6% of their compensation earned during the 12 months before applying for each year of military service credit. The bill lowers that required contribution to 3% for applications received on or after April 1, 2026, for members who first became members on or after April 1, 2012.
The bill is narrowly targeted to police and fire retirement systems and affects the formula used to calculate military buyback contributions. It does not change eligibility to purchase military service credit, but it reduces the employee cost of doing so, which in turn increases employer pension costs over time according to the fiscal note. The fiscal analysis indicates the change would be borne by New York City for the affected city systems and would modestly increase actuarial liabilities if more members choose to buy back service.
The general sentiment appears favorable. The bill was reported out of the Senate Civil Service and Pensions Committee on a 7-0 vote, suggesting broad committee support and little visible opposition at that stage. The sponsor list also includes members from both parties, which is consistent with a measure framed as a benefit enhancement for veterans in public safety careers.
The main point of contention is fiscal impact rather than policy direction. The fiscal note warns that lowering the buyback rate from 6% to 3% will reduce employee contributions and increase employer contributions, with costs depending on how many eligible members apply and their salary histories. No substantive opposition is reflected in the provided materials, but the cost to New York City and the long-term pension liability are the principal issues raised by the analysis.
Impact
This bill amends section 1000 of the Retirement and Social Security Law to change the military service credit purchase formula for certain police and fire retirement system members. It lowers the required contribution from 6% to 3% of the member’s prior 12-month compensation for each year of pre-membership military service claimed, effective for applications received on or after April 1, 2026. The change applies to members of the New York State and Local Police and Fire Retirement System, the New York City Police Pension Fund, and the New York City Fire Pension Fund who first joined on or after April 1, 2012. The bill would reduce out-of-pocket costs for eligible members seeking military buyback credit and increase employer pension costs, particularly for New York City.
Sentiment
The available legislative history suggests generally positive sentiment toward the bill. It advanced through the Senate Civil Service and Pensions Committee unanimously, 7-0, indicating strong support at the committee level. The measure appears to be viewed as a benefit improvement for police, fire, and veteran members rather than a controversial policy change, though the fiscal note highlights that it would increase pension costs for employers over time.
Contention
The primary contention is fiscal: the bill shifts part of the cost of military service credit purchases from members to the pension systems and their employers by halving the contribution rate. The fiscal note emphasizes uncertainty about how many members will use the benefit and notes that New York City would absorb the increased employer contributions for the affected city funds. There is no recorded committee debate in the provided materials, and no explicit policy opposition is shown, so the dispute appears centered on pension affordability and long-term actuarial impact rather than on the underlying goal of supporting veterans.
Same As
Relates to obtaining military credit for members of the New York state and local police and fire retirement system, the New York city police pension fund, and the New York city fire pension fund; provides that the calculation for military credit shall be equal to the product of the number of years of military service being claimed and three percent of such member's compensation earned during the twelve months of credited service.
Relates to obtaining military credit for members of the New York state and local police and fire retirement system, the New York city police pension fund, and the New York city fire pension fund; provides that the calculation for military credit shall be equal to the product of the number of years of military service being claimed and three percent of such member's compensation earned during the twelve months of credited service.
Exempts certain military service credit from being included in calculations of up to three years of military service credit for a public retirement system of the state.
Removes the twenty-five year requirement for tier three escalation for service retirement of members of the New York city fire department pension fund.
Allows members of the New York city fire department pension fund to obtain service credit for retirement eligibility and retirement allowance from any of the public retirement systems of New York state.
Removes the twenty-five year requirement for tier three escalation for service retirement of members of the New York city fire department pension fund.
Exempts certain military service credit from being included in calculations of up to three years of military service credit for a public retirement system of the state.
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.