NY state budget deal includes NYPD pension sweetener for some retiring cops

Some retiring NYPD officers will be getting a boost in their pensions courtesy of state lawmakers who began voting on the final state budget on Wednesday.

But the increase could cost New York City tens of millions of dollars in the coming decades.

The deal will change the way pensions are computed for some retiring detectives, sergeants and lieutenants, according to budget documents outlining what’s in the state’s $254 billion spending plan. Pension payouts will increase for retiring cops in those ranks if they’ve served at least 25 years on the force and completed three years at their rank, according to the deal.

Officers who served more than 35 years will receive the highest increase in their pension payouts, according to the budget bill. In practice, a detective who retires after 32 years in the department will receive a $9,941 annual bump under the deal. The pension payout would also increase to adjust for cost-of-living, according to the legislation.

The increase in pension spending also means an increase in employer contributions to the NYPD’s pension fund, which are covered by the city..

By 2027, the city’s contributions to the pension fund are expected to increase by $3.7 million because of the change. City contributions are expected to increase steadily in the years following, with an additional $15.6 million contribution by 2030 and an additional $72 million by 2050.