Extends the benefits of the variable supplements fund for transit police members of the New York city employees' retirement system for persons who retired on or after October 1, 1968.
If passed, A08267 would have a significant impact on the financial obligations of the New York City Employees' Retirement System (NYCERS). According to projections, the city is expected to incur an increase in employer contributions associated with this new eligibility for around $18.1 million in 2026, with additional, albeit minimal, contributions in following years. As there are no active Transit Police members eligible to contribute, funding such benefits will necessitate a transfer from NYCERS, largely funded by contributions from New York City. This proposed change is designed to bring equity to those retirees who served a significant term in transit police roles but were not afforded the same benefits as their more recently retired counterparts.
Bill A08267 seeks to extend retirement benefits specifically for certain former members of the New York City Transit Police. The legislation proposes to amend the administrative code, enabling former employees who retired between October 1, 1968, and June 30, 1987, and who have 20 or more years of service, to be eligible for payments from the Variable Supplements Fund (VSF). This amendment aims to correct the exclusion of these retirees from currently available supplemental non-pension benefits, which are otherwise awarded to those who retired after July 1, 1987.
The discussions around A08267 might involve various viewpoints on the necessity and fiscal implications of extending benefits to older retirees. Proponents argue that the bill is a matter of fairness and acknowledgment of the years of service and sacrifices made by those former officers. Opponents might express concerns regarding the financial burden this would impose on the city’s budget during times of fiscal constraint, highlighting the broader implications on public service funding and available resources.
The anticipated actuarial impact of this bill is being assessed as it moves through the legislative process, considering the demographic of the affected retirees, all of whom are now in advanced age, averaging around 83.4 years. The risk associated with these benefits stems from reliance on various actuarial assumptions and external economic factors that influence pension fund performance.