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Bill

S 9068

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

2025 Regular Session Introduced by Joe Griffo and 6 co-sponsors

Creates an optional 25-year retirement plan for NYPA employees in specific trades, offering 50% of final average salary with funded costs borne by NYPA.

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Bill Summary · S 9068

Overview

Bill S.9068-A would create an optional 25-year retirement plan for certain New York Power Authority (NYPA) employees, allowing eligible workers to retire after 25 years with a defined benefit equal to 50% of their final average salary, funded through a combination of the member’s own contributions, an actuarial adjustment, and an increased take-home pay reserve. The option is available to NYPA employees in specific job titles and would be in lieu of, not in addition to, other retirement eligibility paths.

Main purpose and intent

  • Provide an optional, accelerated-vesting retirement path for NYPA employees with specific trades and operational titles.
  • Establish a targeted benefit designed to deliver a 50% final-average-salary retirement allowance after 25 years of credited service.
  • Align eligibility and benefits with specialized high-necessity positions within NYPA, while preserving existing retirement options.

Key provisions and changes

  • Creation of a new section 89-z in the Retirement and Social Security Law outlining the optional plan.
  • Eligible job titles (employee of NYPA) include:
    • Mechanic, Technician, Electrician, Equipment Operator, Power Plant Operator, Utility Security Officer, Lineperson.
  • Eligibility and benefit design:
    • Eligible members may retire after completing 25 years of total creditable service.
    • Retirement benefit comprises:
    • A pension equal to 50% of the member’s final average salary.
    • An annuity actuarially equivalent to the member’s accumulated contributions at retirement.
    • An additional pension actuarially equivalent to the reserve-for-increased-take-home-pay.
    • Creditable service includes all service as NYPA employees and can include wartime service credit where applicable.
    • If a member chooses this plan, they are irrevocably elected to be subject to the provisions of this optional plan (and none of the provisions of article 14 for that choice).
    • The option includes an allocation for early access to benefits only if the member’s plan permits retirement after 25 years (or 20 years in some plans with specific provisions limiting non-contribution-based benefits).
    • If a member is in a plan that permits retirement after 20 years (without age), they may retire after 20 years, but non-member-contributed benefits would be capped (2% per year of service beyond 20, in some scenarios).
    • Service credit for wartime service added if the member entered military service while in state service.
    • Those not electing this plan may still use service for other plans.
  • Eligibility for a separate benefit election (Section 603):
    • For NYPA employees in the specified titles, a 25-year plan can be elected, with specific election mechanics and irrevocability.
  • Normal service retirement comparison (Section 503 and related amendments):
    • Clarifies that NYPA employees in these titles may elect the special 25-year plan and be treated similarly to other general members for retirement timing, with special provisions applying to the NYPA-identified titles.
  • Early service retirement (Section 604):
    • Defines the early retirement calculation for the 25-year NYPA plan as 1/50th of final average salary per year of service, capped at 50% of final average salary.
  • Fiscal note and funding:
    • NYPA would bear past service costs.
    • Estimated annual NYPA contributions would increase by about $1.4 million starting Fiscal Year Ending 2027, with costs varying as salaries and demographics change. Immediate past service cost estimated at $12.1 million, paid by NYPA, assumed to be due February 1, 2027. Based on 435 affected members with a combined annual salary around $52 million (as of March 31, 2025), using the office’s data.
  • Non-appropriation clause:
    • Provisions are not subject to the normal appropriation requirement.
  • Effective date:
    • The act would take effect immediately upon enactment.

Who would be affected

  • NYPA employees holding one of the specified job titles:
    • Mechanic, Technician, Electrician, Equipment Operator, Power Plant Operator, Utility Security Officer, Lineperson.
  • Members currently in NYSLRS and covered by Article 1 (and potentially Article 14 users) who would elect the 25-year plan.
  • NYPA as an employer, which would incur past service costs and ongoing contributions to fund the plan.

Procedural and timeline aspects

  • Election window:
    • For members subject to Article 14, an irrevocable election to switch to the 25-year plan must be filed within one year of the effective date of the subdivision (or within one year of entering NYPA service).
  • Process to retire:
    • Retirement applications would follow the existing process under section seventy, modified for the 25-year plan.
  • Implementation and administration:
    • The NYPA would absorb all past costs and funding obligations.
    • The bill would supersede conflicting provisions to the extent of its new plan.

Fiscal impact

  • One-time past service cost borne by NYPA: approximately $12.1 million.
  • Ongoing annual cost to NYPA: approximately $1.4 million starting in FY 2027, subject to changes in payroll and membership.
  • No reliance on state budget appropriations for funding the plan.

This summary highlights the bill’s core mechanics, eligible populations, benefit design, and fiscal considerations necessary to understand the New York Power Authority-specific 25-year retirement option.

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

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