New York Assembly Bill A07925

New York 2025-2026 Regular Session

• Introduced: 4/15/25
• Refer: 4/15/25

Caption

Relates to providing state correction officers with a special optional twenty year retirement plan.

Impact

The proposed retirement plan will have significant implications for state employees, particularly those within the correctional system. Affected members can expect an increase in annual contributions from the state, estimated at $79 million to cover the new plan beginning in the 2025-2026 fiscal year. This initiative aims to enhance the retirement benefits of correction officers, recognizing the demanding nature of their roles. However, these changes could result in substantial one-time costs to the state, amounting to approximately $1.29 billion, which will be paid in a lump sum.

Summary

Bill A07925 proposes the establishment of an optional twenty-year retirement plan for New York State correction officers and other state employees directly engaged in correction officer duties. Under this bill, eligible members can opt into a retirement plan that allows them to retire after twenty years of service, with a pension benefit equal to 50% of their final average salary. The bill introduces measures to cover additional pensions that members may earn for service beyond twenty years, while ensuring that total benefits do not exceed 75% of their final average salary.

Contention

One point of contention in the discussions surrounding A07925 centers on the potential impacts of these changes on the status of the state’s retirement system. Granting state employees retirement credit under this new plan could jeopardize the governmental plan status of the Retirement System, which may lead to losing tax benefits under federal law. Furthermore, there may be concerns regarding how the modifications will affect other employee groups and the funds allocated to support these increased benefits.