PD: Retiring at the End of a Month

Why do so many PD members retire at the end of a month?  Many are told that retiring at the end of a month the retiree will only wait one month until he/she receives their first pension check.  Yes, that is true.  Should everyone retire at the end of a month?  No.  Just because the NYCPPF Retirement “Counselor” or co-worker suggests you retire at the end doesn’t mean you should.  Some pre-retirees should determine what their best day to retire is based on overtime and it may not be the end of the month.  If a PD pre-retiree cannot “survive” more than a month without receiving a pension check, the pre-retiree should maybe reconsider retiring.  Every pre-retiree should answer the basic retirement planning question of; can I afford to retire?   

FDNY pre-retirees spend a significant amount of time determining what the best day to retire is to maximize their pension benefit.  In general, PD pre-retirees do not do this and simply retire at the end of a month.  It is the responsibility of the pre-retiree to determine their optimal retirement date; FD/PD Pension personnel will not do this for you.    

3 replies
  1. Brian
    Brian says:

    Perfectly said Pete. Future retirees should all think about how this works!
    By retiring on the 11th of the month I increased my monthly benefit by $183.00 each month for the rest of my life. If I left on the last day of that same month my monthly benefit would have been $183.00 less each month for the rest of my life. It was a no brainer.

  2. MARK
    MARK says:

    I was always curious what happened to that month’s “Banked VSF” for the people over 20. If you retire on the 15th of the month, does half go with the “banked” portion and the other half get paid out at the end of the year?

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