New York Senate Bill S07843

New York 2025-2026 Regular Session

• Introduced: 5/9/25
• Refer: 5/9/25
• Report Pass: 5/20/25
• Engrossed: 6/12/25
• Refer: 6/13/25
• Engrossed: 6/16/25

Caption

Establishes a twenty-five year retirement program for members of the NYC employees' retirement system employed as water supply police; provides for employer pick-up of certain additional member contributions required to be made by certain participants in the 25-year retirement programs.

Impact

The enactment of S07843 is expected to lead to increased employer contributions over the upcoming years as the new retirement benefits are implemented. Specifically, initial increases in employer contributions are anticipated, with an estimate that could reach over four million dollars in employer contributions based on projections. Furthermore, there are expected decreases in normal costs for future entrants into the plan, which aligns with fiscal prudence in managing public pension liabilities. This bill not only affects the individual benefits of the water supply police but may also set a precedent for retirement benefits for similar public service roles.

Summary

Bill S07843 aims to establish a twenty-five year retirement program for members of the New York City Employees' Retirement System who are employed as water supply police. This new program seeks to provide enhanced retirement benefits to these members, allowing them to retire after 25 years of credited service, with a pension calculation based on their final average salary (FAS). For the first 25 years, they would receive 50% of their FAS, and for each additional year worked beyond that, an extra 2% for up to 5 additional years is also proposed. This restructuring is intended to provide a more competitive retirement plan for these public servants, aligning with broader trends in retirement planning for governmental roles.

Contention

There remain points of contention around the bill, particularly concerning the fiscal implications of the increased pension obligations. Critics may argue that providing enhanced benefits could lead to budgetary constraints or increased taxes. The exact funding mechanisms for these projected benefits and the future sustainability of the pension fund when faced with fluctuating contributions from new employees are concerns that may arise during discussions. Additionally, questions of fairness in relation to other public service employees' retirement plans may provoke debate about perceived inequities in public sector retirement benefits.