NY A09581

Amends the calculation of final average salary (FAS) for Tier 6 members of the New York State and Local Police and Fire Retirement System who retire from employers that previously elected to provide one-year FAS benefits to Tiers 2 and 5.

Changes FAS calculation from the average of five consecutive years of wages (with a 10 percent cap on annual increases) to the regular compensation earned during the 12 months immediately preceding retirement.

Members receive whichever calculation results in a greater benefit, ensuring they are not disadvantaged by the change.

Increases annual employer contributions by approximately $3.1 million for fiscal year ending March 31, 2023, with rate increases ranging from 1.50% to 2.30% depending on the retirement plan type.

Imposes an immediate past service cost of approximately $15.2 million, shared by the State of New York and all participating employers in the system.