NYC Police Pension Fund Board Special Meeting Video

From the NYC Police Pension Fund website:

Actuarial Meeting 3-01-2019

The NYC Actuary does an excellent job of explaining why the proposed option costs are less based on the longer life expectancy of the retiree.

10 replies
  1. Adam W
    Adam W says:

    Is the PBA just being obstructionist or are they raising legitimate concerns? My takeaway is they are angling to sue on behalf of those who took an option and received a lesser benefit than is being proposed

      • KM
        KM says:

        If the cost of the option is less based on Increased life expectancy of the retiree, will the cost of the final loan also be reduced because the member will be repaying it for a longer period of time?

        • Peter Thomann, EA, CFP®, CDFA®
          Peter Thomann, EA, CFP®, CDFA® says:

          The annuity factor used to determine the cost of the final withdrawal (final loan) would be greater than what is currently in use. The higher annuity factor would result in a reduced cost for taking the final withdrawal. If the 2019 Basis is approved; in my opinion only certain retirees would benefit from the reduced cost.

  2. Matt
    Matt says:

    There job is to give us the best pension possible at the best cost to its member. What could be the delay in voting this in when it will give us a better benefit at a lower cost? What am I missing. Same option, less cost to the member? More money in you pension check.

  3. Mark
    Mark says:

    Question I have is who is to gain here. The taking of an option is a benifit offered by who? the union? It is not a contracted benifit offered by the city is it? There was a point in the meeting very fast i thought I herd it would be less money coming into the union. Am i wrong here, who is to benifit by updating the mortality charts, those changing the option factor? Also what about the members,that retired within the last say 15 years they were using rates from 1985. Dont they have a say here? She mentions a reduction of 1 to 18% in cost. If this is voted in, there should be a lookback to correct the option amounts paid by retires that were given 1985 figures for options.

  4. Steve
    Steve says:

    Pete,
    Many of us have already changed our actual date of retirement to be effective after April 1, 2019 to benefit from this new change. When is the next pension board meeting?? Do you think the PBA will table this again?? will the April 1 date still stand?? Thank you very much>.

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