New York Assembly Bill A08082

New York 2025-2026 Regular Session

• Introduced: 4/24/25
• Refer: 4/24/25
• Refer: 1/7/26

Caption

Establishes a retirement service credit for volunteer fire or emergency service.

Impact

The enactment of this bill is likely to significantly impact state laws related to retirement benefits for volunteer emergency personnel. It aims to recognize the vital contributions of volunteers in emergency services by facilitating their path toward retirement security. However, the bill also imposes certain financial requirements on the members themselves; they must pay an amount equal to 3% of their compensation for each year of service credited. These provisions are particularly geared towards encouraging more individuals to volunteer in critical emergency roles while also providing them a safety net as they transition into retirement.

Summary

Bill A08082, introduced in the New York Assembly, proposes to amend the retirement and social security law by establishing a retirement service credit specifically for volunteer fire and emergency service. This bill would allow members of the New York State and Local Retirement System to earn service credit for their volunteer contributions, enabling them to accumulate retirement benefits for their service. Specifically, for every five years of eligible volunteer service, members could receive one year of credit, with a maximum limit of three years of credit for a total of fifteen years of service. The bill emphasizes the need for proof of volunteer service certified by the respective agency, ensuring the legitimacy of claims made under this provision.

Contention

Despite its intent, the bill has raised concerns regarding its potential financial implications. Critics have pointed out the risks associated with IRS qualification status that could jeopardize existing retirement systems' federal tax benefits. There is apprehension about whether the IRS would class the service credits as compliant under Employee Retirement Income Security Act (ERISA) guidelines, which could affect the retirement plans' viability for over 1.25 million participants in the system. Stakeholders have voiced the need for a favorable ruling from the IRS before implementing such changes to mitigate potential adverse effects on the retirement system.

Fiscal_note

The fiscal note outlines that the costs associated with obtaining IRS approval and implementing the bill are expected to be shared by the state and participating employers. It estimates that if enacted, the past service costs would equate to about 24% of a member's compensation for each purchased year of credit, in addition to any related administrative costs necessary to facilitate this new provision. The unpredictability of the number of affected current and future members signals a need for careful monitoring and assessment after the bill's potential passage.