New York City Police Pension Fund

Tier 2 Frequently Asked Questions

Buy Backs

 Contributions

  General

 Loans

Payroll

Service

Transfers

Buy Backs

  • What is the process for buying back time?
    In order to make a claim to purchase credit for previous service a member must complete an Application under the appropriate Chapter of Law. Under Chapter 552 buying back prior service when not a member of the previous retirement system, the application must be sent to the Agency in which you were employed for the period of service being claimed. All other applications for buybacks must be submitted directly to the NYC Police Pension Fund.

    When the NYCPPF receives your application, either from your previous agency or directly from you, we can then compute the cost for you to buy back the service claimed. You will be advised, in writing, the monies to be paid either in a lump sum or in the case of a Military buy back, through payroll deductions. You may also request to make payments for your buy back through the NYC Deferred Compensation Plan. Please contact the NYCPPF for more information on this option.

    Please note: Many of the buy backs require information from either your previous agency or your previous retirement system. This may take some time for them to complete and return to the NYCPPF, which will delay the computation process.

    Q: When I became a Police Officer I was with either Transit PD or Housing PD. I had prior State service that was transferred to NYCERS, and this time did not count towards my 20 years of service. Now we are merged. When a member of the NYC Police Department had prior State service transferred to the NYCPPF, this time counted as “Good Time,” counting towards their 20 years of service. Has the law changed so I can now get this time as “Good time” as well?

    A: Yes! New York State time that was previously transferred to NYCERS that did not count towards the 20 years of service can now be put as upfront time. Please fill out buy back form number 370, “Amend Prior State Service previously transferred to NYCERS” and return the completed form to the NYCPPF.

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  • How do I find out who is my beneficiary, and how do I change it?
    If you are unsure about your Police Pension Fund beneficiary(ies) information, you may check it in person, or request it by mail with the New York City Police Pension Fund, 233 Broadway, 19th Floor, New York, NY 10279. In order to change your current beneficiary(ies), you can download a Change of Designated Beneficiary form from this site, under General Application, form number 60. If you mail this form back to us, it MUST be signed and notarized. You may also return this form in person, and we will notarize it for you. Due to confidentiality rules, telephone and email requests to check or change beneficiaries cannot be accommodated. Please note: Changing your designated beneficiary with the Police Pension Fund DOES NOT change your beneficiary with your line organization, and likewise, changing your beneficiary with your line organization does not change you beneficiary with the Police Pension Fund.

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Contributions

  • If I stop my employee contributions of 5% from going into my annuity savings account, will my pension be reduced by 5%?
    A member is given a contribution rate at time of appointment depending on the age of that member. A member's rate of contribution is not necessarily 5%. A member's rate of contribution doesn't mean the portion of the pension allowance is made up by the percentage of their contributions. A person who doesn't contribute to the Police Pension Fund could lose up to 25% of their pension allowance after twenty (20) years of service.

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  • Is there a method to increase my pension contributions?
    A member may make extra contributions by waiving the ITHP (increased-Take-Home-Pay), currently at 5%, tax deferred. An additional 50% of contributions can be deducted from your pay. Note: This deduction is not tax deferred.

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  • Can I stop my pension contributions after I've contributed for ten (10) years and still meet my required amount?
    A member may elect to stop their contributions anytime before their 20th anniversary but in doing so they will create a shortage in their account thus not meeting their required amount.

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  • If I stop my contributions in the Police Pension Fund will I create a shortage in my account?
    If you stop making contributions to your annuity savings account before your 20th anniversary, you are creating a shortage in your account. If that shortage is not made up by the time you retire, your pension allowance will be reduced accordingly.

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  • Do I contribute 5% of my earnings to the pension?
    A member is given a contribution rate at time of appointment depending on the age of that member. A member's rate of contribution is not necessarily 5% (a member's contribution rate is the rate they were given at the time of their hire minus the City’s contributions). These contributions are required on all pensionable earnings up to the member's 20th anniversary.

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  • What are the CRF and the ASF contributions to my pension?
    CRF – Contingent Reserve Fund – consist of the City's contributions to the pension.
    ASF – Annuity Savings Fund – are the contributions that the member contributes to the pension account. By law 10% of the ASF is required to remain in a member’s pension account upon retirement.

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General

  • Should I stay in the Police Pension Fund or join the Deferred Compensation Plan?
    This is a personal decision. Members must decide for themselves or have a financial planner decide on this course of action. The pension staff can only counsel a member on the consequences of stopping contributions to their pension savings.

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  • I’m retired, how much can I make and what kind of job can I get without being penalized?
    You would have to request this information in writing because each member's situation is different. In general, any public sector job in New York State requires a waiver. *For further information please see Retiree Employment Limitations.

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  • Will there be an employment earnings limitation in regards to outside employment if I retire on a disability with less than twenty years of service?
    Yes. See: Retiree Employment Limitations

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  • Can I be employed with New York State or any of its political subdivisions?
    Yes. See: Retiree Employment Limitations

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  • Can I be employed in public employment outside of New York State or work for the U.S. Government, join their retirement system and still collect my Police pension?
    Yes, any retiree may be publicly employed by a municipal entity outside of New York State or work for the U.S. Government and still collect their retirement allowance from the Police Pension Fund.

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  • Will there still be an employment limitation on my earnings if I retire on a disability and I have reached my twentieth anniversary?
    Yes. See: Retiree Employment Limitations

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  • Can I work for the State of New York or any of its political subdivisions if I retire on a service retirement?
    Yes. See: Retiree Employment Limitations

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  • I need to add someone to my health Insurance. Who do I contact?
    You must contact the Retirement Health Insurance at 40 Rector Street 3rd Floor New York NY. 10006, (212) 306-7359.

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  • Will my family receive health insurance upon my death?
    Active and retired members of the service have health insurance paid for by New York City. These benefits cease upon the member’s death. The only exception is for Accidental Disability Retirees who die from the condition for which he/she/ received the accidental disability. For all other retirees, health coverage may be purchased at 102% of the City rate by the surviving spouse for life under the recent COBRA (Consolidated Omnibus Budget Reconciliation Act) legislation.

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  • How is longevity pensionable?
    A member’s pensionable earnings are not eligible for the 15 or 20 year longevity increases if they do not complete 25 years of service. Any retirement less than 20 years (vested, accidental disability or ordinary disability) has all longevity deducted from the member’s pensionable earnings because the 5 and 10 year longevity amounts are only pensionable after a member completes 20 years of service.

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Payroll

  • When will my check be deposited in my account?
    The checks are dated for the last day of the month as that is when the bank will credit your account or within three business days.

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  • I have not received my pension check yet, how long do I have to wait to have it replaced?
    You have to wait at least ten business days before the check can be replaced.

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  • I have an income execution on my salary and I will be retiring soon, how can I have support payments deducted from my pension?
    If the NYPD or retiree notifies the Pension Fund of an existing order the Pension Fund will implement the order and notify the involved parties that they must return to family court and have the order modified to address the Pension Fund.

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  • I received a cost of living each year. Will they stop taking the money from the variable supplement now that I’m 62 or will it stop in the year 2007?
    The offset of COLA from the variable supplement is designated to end by the year 2007 or age 62 whichever is later.

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  • I received a letter stating I have a balance of (extra amount of dollars), now that I’m finalized can I take that money out?
    No. The letter you received once you were finalized gives you a breakdown of what remains in your account however, that amount is required by law to be left in the system.

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  • I receive a disability pension, am I entitled to the variable supplement?
    No. You are not entitled to the variable supplement. The variable supplement is paid only if you retire for service.

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Loans

  • Can I prepay my outstanding loan or change my loan payments at anytime?
    A member may prepay any portion of their outstanding loan at anytime with a minimum payment of $500.00. Loan payments may be changed only during the months of May and November.

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  • How much can I borrow from my pension account?
    The maximum amount anyone can borrow on a pension loan is 90% of the amount that is in his/her account.

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  • What is the maximum loan amount I may borrow without being taxed?
    A member with less than ten (10) years of service may borrow the greater of 50% of their pension savings contributions or a combined principal up to $10,000. This amount MUST have a repayment plan of 130 payments or less.
  • A member with ten (10) years or more may borrow the lesser of 90% of their pension savings contributions or a combined principal up to $50,000. This amount MUST have a repayment plan of 130 payments or less.

    Note: The total outstanding loan must be less than $50,000 in order to make the loan not taxable. If any of the interest or taxable contributions borrowed are outstanding at time of retirement, they will be subject to Federal tax. If a member is less than 50 years of age, there is also a 10% penalty. Members purchasing a principal residence may be able to utilize IRS Code 72 (P) (2) (B) (ii) to postpone taxes on a taxable loan. Members wishing to take advantage of this provision should consult a tax professional.

  • May a member's pension loan check be mailed to their command?
    No checks are to be mailed to a "care-of" or command address. Loan checks will be mailed to the address written on the members loan application, P.O. Box addresses are permitted.

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  • When is a member eligible to submit an application for a pension loan?
    A member must have three years of uniform service to be eligible for loans. No more than two loans are allowable within any twelve-month period, unless previously paid in full.

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Service

  • How many years do I have to contribute to my pension savings account to meet my required amount?
    A member of the Police Pension Fund is required to make contributions for the first twenty (20) years of allowable police service at a rate based on their age at appointment. See: Required Employee Contributions

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  • If a member works a lot of overtime, will the requirement be met before the member's twentieth anniversary?
    Regardless of overtime or rank, a member of the Police Pension Fund is required to make contributions for the first twenty (20) years of allowable police service at a rate based on their age at appointment. Increased earnings result in increased payroll deductions.

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  • As long as I continue making employee contributions for twenty (20) years, will I meet my required amount and not have a shortage in my account?
    Not necessarily, because shortages also occur when members take loans at a 4% interest rate versus the 8.25% paid by the Pension Fund. The more loans that a member has taken, the greater the shortage may be.

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  • If I leave the job before my twenty years of service what happens to my money that I paid into the fund?
    If you are leaving and going to another agency you can have your money transferred to another city or state retirement system. If you are resigning, you can take your money out of the fund but you will be taxed on it unless you transfer that money to an IRA.

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Transfers

  • If I transferred pension service credit from the NYS Retirement System, will I be eligible to receive the Variable Supplement (defined benefit)?
    All members who retired on a Service Retirement on or after October 1, 1968, will receive an annual payment (variable supplement) along with their regular pension.

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