Effective April 1st, 2019, NYC Police Pensions (Tier 2-appointment date after 8/19/1985) are required to be calculated under two methods. By law, the retiring member is entitled to the greater of the two calculated pensions (“Best of Two”). Thomann Tax has created a program that calculates the best of two maximum pensions and the associated costs of the more common pension options. As shown below, the program is able to calculate both the maximum pension and the option costs using different scenarios (no withdrawal, excess only, etc.). The option costs calculated are Option 2 (100% to beneficiary), Option 3 (50% to beneficiary), Option 4.2 (100% to beneficiary with a pop-up), and Option 4.3 (50% to beneficiary with a pop-up).
Note: The program can calculate for either a Service or an ADR (3/4s) pension.