BILL NUMBER: S7975A
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the retirement and social security law, in relation to
service retirement benefits for members of the New York city police
pension fund
 
PURPOSE:
To eliminate the social security offset for retirement allowances for
members of the New York City police pension fund.
 
SUMMARY OF PROVISIONS:
Section 1: Amends section 505 of the retirement and social security law
to provide that the normal service retirement benefit, early service
retirement benefit, and the annual escalation of such benefits shall not
be reduced by the value of the primary social security benefit commenc-
ing at age sixty-two for members of the New York City police pension
fund.
Section 2: Amends section 511 of the retirement and social security law
by adding a new subdivision h to exempt members of the New York City
police pension fund who retire pursuant to section 505 or on a deferred
vested benefit from the .requirement that their service retirement bene-
fit be reduced by 50% of the value of the primary social security bene-
fit which commences at age sixty-two.
Section 3: Amends subdivision c of section 516 of the retirement and
Social Security law provides that a deferred vested retirement allowance
shall not be reduced by the value of the primary social security benefit
commencing at age sixty-two for members of the New York City police
pension fund.
Section 4: Ensures that any impact on a participating employer's
contribution rate resulting from this act will not be considered when
calculating their contribution rate under subdivision c of Section 500
of the Retirement and Social Security Law.
Section 5: Sets effective date.
 
JUSTIFICATION:
This bill seeks to restore a pension benefit for New York City police
officers that was eliminated following the 2009 veto of the Tier 2
extender by Governor Paterson. It aims to provide parity by extending
the same pension reforms that have since been granted to other police
officers across New York State to those serving in New York City.
Currently, members of the New York City Police Pension Fund under Tier 3
and "Modified Tier 3"/Tier 6 are eligible for various service retirement
benefits. A standard service retirement becomes payable after 22 years
of service. Early service retirement is available after 20 years of
service or at age 62 for Tier 3 members, and after 20 years for Modified
Tier 3 members. These benefits are calculated at 2.1% of the member's
final average salary for each year of service beyond 20 years, capped at
50% of the final average salary. Vested retirement is also available to
members with at least five years of uniformed service upon reaching age
55, also calculated at 2.1% of final average salary. The final average
salary is based on a three-year average for Tier 3 members hired between
July 1, 2009, and March 31, 2012, and a five-year average for Modified
Tier 3 members hired after April 1, 2012.
However, all of these pension benefits are subject to an automatic
reduction equal to 50% of the member's Social Security benefit upon
reaching age 62. This "Social Security offset" applies almost exclusive-
ly to Tier 3 members. In contrast, officers who retired under Tiers 1
and 2 or due to disability are exempt, as are police officers elsewhere
in New York State who were hired under tiers that do not include the
offset.
This inequity is particularly unjust given that New York City police
officers face the same - if not greater - risks and responsibilities as
their counterparts throughout the state. Younger officers should not be
penalized with reduced retirement benefits due to factors beyond their
control. The Social Security offset not only undermines fairness but
also hinders the recruitment and retention of the experienced personnel
required to ensure the safety and security of New York City.
This bill corrects that imbalance by eliminating the Social Security
offset for Tier 3 New York City police officers, ensuring they receive
the full pension benefits they have earned, just like their peers in
other parts of the state.
 
LEGISLATIVE HISTORY: Senate
2019: S5924-C, Amend and Recommit to Civil Service and Pensions
2020: S5924-C, Amend and Recommit to Civil Service and Pensions
2022: S8664, Referred to Civil Service and Pensions
2023: S6481A, Referred to Civil Service and Pensions
2024: S6481A, Amend and Recommit to Civil Service and Pensions
Assembly
2019: A8182A, Referred to Governmental Employees
2020: A8182A, Referred to Governmental Employees
2022: A9810, Referred to Governmental Employees
2023: A6344A, Referred to Governmental Employees
2024: A6344A, Amend and Recommit to Governmental Employees
 
FISCAL IMPLICATIONS:
See fiscal note.
 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.

Statutes affected:
S7975: 511 retirement and social security law
S7975A: 511 retirement and social security law