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Bill

A 10263

Establishes an optional twenty-five year retirement plan for certain employees of the New York Power Authority

2025 Regular Session Introduced by Harry Bronson and 8 co-sponsors

Creates an optional 25-year NYPA retirement path for eligible workers with a 50% final salary pension, plus actuarial components, if elected.

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WeVote Research Nonpartisan
Bill Summary · A 10263

Overview

Bill A. 10263-A (2025-2026, New York) would create an optional 25-year retirement path for certain New York Power Authority (NYPA) employees. The plan is designed as an alternative to existing retirement provisions, offering a targeted early-retirement option with a defined benefit equal to 50% of the employee’s final average salary, under specific eligibility rules.

Main purpose and intent

  • Establish an optional, dedicated 25-year retirement plan for NYPA employees with certain job titles.
  • Provide an accelerated path to retirement for these employees while setting the retirement benefit at 50% of final average salary, subject to plan-specific terms.
  • Preserve flexibility by allowing members to stay in other applicable plans if they choose not to enroll in this option.

Key provisions and changes

  • Eligible job titles (Section 89-z): mechanic, technician, electrician, equipment operator, power plant operator, utility security officer, or lineperson employed by NYPA.
  • Eligibility and retirement trigger:
    • An eligible employee may retire after completing 25 years of total creditable service, filing an application consistent with the article’s procedures.
    • If electing this plan, the retirement benefit is the combination of:
    • A pension sufficient to provide 50% of the member’s final average salary, plus
    • An annuity actuarially equivalent to the member’s accumulated contributions, plus
    • An additional pension actuarially equivalent to the reserve-for-increased-take-home-pay, resulting in a total retirement allowance of 50% of final average salary.
  • Creditable service: All service as NYPA employee counts toward the 25-year requirement.
  • Special election ( irrevocable, with conditions under Article 14): Members may elect, upon retirement, to be governed by this plan and not by certain other provisions if applicable; this election must be filed within one year of the plan’s effective date or within one year of entering NYPA service.
  • Early retirement adjustments (two branches):
    • If a member retires under this plan with 25+ years, the benefit is as above.
    • An alternative early retirement provision (Section 445-a/other referenced sections) allows some plans to permit retirement after 20 years if the plan otherwise allows it, but the benefit from non-contributory funds is limited to 2% per year of service.
  • Interaction with other plans:
    • The 25-year NYPA option is an additional plan of the Retirement and Social Security Law (RSSL). Members may still use service credit from this section for other plans, but the new option is controlling if elected.
    • Provisions are stated to be controlling notwithstanding other sections, ensuring the 25-year option takes precedence when elected.
  • Impact on other retirement provisions:
    • The 25-year option is a distinct path and does not automatically modify the standard normal retirement ages or benefits outside of the NYPA-eligible group.
  • Fiscal and governance provisions:
    • No appropriation requirement applies to this plan (it is exempt from the usual funding appropriation rule).
    • NYPA is responsible for all past service costs related to implementing the new plan (one-time and ongoing costs described below).
  • Effective date: Act takes effect immediately upon enactment.

Who would be affected

  • Primary beneficiaries: NYPA employees with job titles in the eligible list (mechanic, technician, electrician, equipment operator, power plant operator, utility security officer, lineperson) who would opt into the 25-year plan.
  • Indirectly affected: NYPA and the New York State and Local Retirement System (NYSLRS) in terms of actuarial cost, governance, and potential shifts in retirement timing for the targeted workforce.
  • Labor organizations: Not required for eligibility or enrollment in this plan, per the fiscal note.

Procedural and timeline aspects

  • Election window: Irrevocable election to switch to the 25-year plan must be filed within one year of the plan’s effective date or within one year of entering NYPA service.
  • Enrollment process: Elections and retirement applications follow the processes outlined in the RSSL and section 70 of the article; specifics mirrored in the bill for consistency.
  • Fiscal note highlights:
    • Estimated annual NYPA contributions to increase by about $1.4 million starting FY 2027, with fluctuations based on salaries and plan participation.
    • Immediate past service cost estimated at $12.1 million payable by NYPA upon enactment (assumed Feb 1, 2027).
    • Basis uses 435 affected members with a projected average annual salary of about $52 million as of March 31, 2025.
  • Funding and costs:
    • Past service cost borne by NYPA.
    • Ongoing annual costs depend on member demographics, salaries, and actuarial assumptions.

Summary of potential impact

  • Providing an optional early-retirement route for a defined NYPA workforce, potentially improving workforce planning and succession for critical utility roles.
  • Financial implications for NYPA include a predictable but sizable long-term cost in pension liabilities and one-time past service costs.
  • No mandatory participation; employees can remain in other applicable retirement plans if they choose.
  • The plan would be the controlling rule for participating members who elect it, superseding conflicting provisions.

Note: The bill’s fiscal note assumes 435 affected members and provides specific cost estimates; actual costs depend on enrollment decisions, staffing, and future salary changes.

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

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