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S 9356

Establishes a twenty-five year retirement program for members of the NYC employees' retirement system employed as water supply police

2025 Regular Session Introduced by Brian Kavanagh and 1 co-sponsor

Establishes an optional, irrevocable 25-year retirement track for Water Supply Police in NYCERS, with extra member contributions and employer pickup, affecting funding and benefits

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WeVote Research Nonpartisan
Bill Summary · S 9356

Summary of Bill S 9356 (2025-2026) – New York

Purpose and Intent

This bill establishes a voluntary 25-year retirement program within the New York City Employees’ Retirement System (NYCERS) specifically for Water Supply Police (WSP) members. The program aims to provide an alternative retirement benefit structure with an early 25-year eligibility track, funded in part by additional member contributions and employer pick-up arrangements pursuant to the Internal Revenue Code. The measure includes transitional rules, eligibility windows, and mechanisms for administration, financing, and potential phase-out (sunset) provisions.

Key Provisions and Changes

  • Creation of a 25-Year Water Supply Police Retirement Program (New NYCERS program via sections 445-j and 604-k):

    • Defines a “Water Supply Police Member” and the “Twenty-five year retirement program.”
    • Establishes an elective, irrevocable option for eligible WSP members to participate.

  • Eligibility and Election Windows:

    • Current and future WSP members may elect to participate by filing within 180 days after the program’s starting date.
    • Participation is irrevocable.
    • Members who join after the starting date must elect within 180 days of becoming a WSP member.
    • Those who discontinue or return to WSP employment follow rules for re-entry or continued participation.

  • Service Retirement Benefits for Participants:

    • For those with 25+ years of credited service and meeting program-specific conditions, the early service retirement benefit is:
    • 50% of final average salary (FAS) for the first 25 years, plus
    • 2% of final salary for each additional year beyond 25 (up to 30 total years, with a maximum of 5 additional years allowed).
    • Maximum benefit under the plan generally aligned to 30 years of service (subject to actuarial rules).

  • Vesting, Deferred Benefits, and Vesting Rules:

    • Vesting rules for deferred vested benefits if participants discontinue.
    • Automatic vesting upon discontinuance of service under eligible conditions.
    • Provisions for vesting, delay periods, and early retirement options.

  • Additional Member Contributions and Employer Pick-Up:

    • Participants must contribute an additional 6% of compensation for service after the starting date (and for periods after ceasing to be a participant but before re-entry).
    • The 6% is directed to an additional contribution account and may be borrowed or refunded under specific rules.
    • The bill allows the employer to pick up these additional contributions (picking up under IRC §414(h)) for WSP participants, with contributions treated as employer contributions for pension purposes.

  • Financial Impacts and Funding:

    • The bill includes a detailed actuarial fiscal note outlining expected NYCERS employer cost impact for the first 25 years, with projected annual figures and long-term effects.
    • Initial estimated increases in NYCERS employer contributions in the first decade, with adjustments over time and an expected rise in contributions allocated to NYC (the City).
    • Present value and Unfunded Accrued Liability (UAL) impacts are provided for planning purposes.

Who Would Be Affected

  • Primary: Water Supply Police members of NYCERS.
  • Secondary: NYCERS, the City of New York (employer contributions), and potential new hires entering the WSP program later as Tier 6 participants if applicable.

Procedural and Timeline Aspects

  • The bill starts immediately upon enactment, with specific provisions noting sunset and tax-related contingencies.
  • The “starting date” is tied to certification under the Legislative Law.
  • The act contemplates federal tax treatment considerations (IRC 414(h) pick-ups) and would require regulatory implementation by NYCERS’ board.

Summary Notes

  • The program is optional for eligible WSP members and irrevocable once elected.
  • It introduces substantial actuarial and budgetary considerations for NYCERS and city finances.
  • The Fiscal Note projects phased employer cost changes over the next decades, with potential long-term cost containment through actuarial expectations.

Compiled from official sources — confirm details with the bill’s official record.

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