New York Senate Bill S07004

New York 2025-2026 Regular Session

• Introduced: 3/28/25
• Refer: 3/28/25
• Refer: 1/7/26

Caption

Relates to providing state correction officers with a special optional twenty year retirement plan.

Impact

Enactment of S07004 could significantly change the retirement landscape for state correction officers, providing them with an earlier exit option than is typically available. The bill also includes provisions for those employed directly in correction officer duties while emphasizing the importance of military service credit in calculations for retirement benefits. However, the bill's implications extend to fiscal considerations, as it is expected to increase the state of New York's annual pension contributions by an estimated $45 million for the twenty-year plan and $16 million for additional benefits, along with a past service cost of over $1 billion.

Summary

Bill S07004 aims to amend the retirement and social security law in New York by introducing an optional twenty-year retirement plan specifically for state correction officers. The proposed legislation allows eligible correction officers to retire after twenty years of service with a pension calculated as half of their final average salary (FAS). Furthermore, for each additional year of service beyond twenty years, they may receive an extra pension benefit, although capped at three-quarters (75%) of their FAS.

Contention

One of the primary concerns with this legislation is the potential impact on the qualification status of the Retirement System under IRS regulations, particularly if the bill affects employees without correction officer duties. The legislation may place the state's retirement plan at risk of losing its governmental plan status and exemptions from ERISA, which would have broader implications for over 1.25 million plan participants. Thus, securing a favorable IRS ruling before enactment is deemed crucial.