NY S08401

Amends the retirement and social security law to allow Tier 6 members of the New York State and Local Police and Fire Retirement System to use a one-year final average salary calculation if their employer previously elected this benefit for Tiers 2 and 5 members.

Members affected by this change will have final average salary calculated based on the 12 months of actual service immediately preceding retirement, rather than the current five-year average calculation.

Members will receive whichever calculation results in a greater benefit: the one-year average under this provision or the five-year average under existing law.

Wages exceeding the annual salary paid to the governor continue to be excluded from final average salary calculations.

Estimated to increase annual employer contributions by approximately $3.1 million for fiscal year 2023 and impose an immediate past service cost of approximately $15.2 million, affecting 1,532 members across participating employers.