This post is a continuation of a previously published blog post. Over the years, the lengthy finalization process of Fire & Police Pensions has gotten ridiculous. As an example, the NYC Police Pension Fund (NYCPPF) published the following finalization status update in March 2019. As many are aware, during the period of not being finalized the NYCPPF & NYC Fire Pension Fund hold back 10% of the retiree’s pension. A few questions:
- Is the 10% held back based on a law or is it simply an administrative choice by the Pension Funds?
- If approximately only 8% (source: NYCRS Administrative Review Report 3-12-2018 pg. 34) of retired Police select a pension option what is the purpose of holding back 10% of all member’s pensions?
- Why don’t retired Fire/Police members receive any interest when their pensions are ultimately finalized? Interesting to note that retired teachers (Teachers Retirement System-NYC) receive 5% interest when their pensions are finalized (source: TRS Retiree’s Companion pg. 6).