What happened on September 28
On September 28, 2026, S7808A was delivered to Governor Hochul and signed the same day. It is now Chapter 312 of the Laws of 2026. The Senate's bill record shows both steps on that date, and the Governor's office announced the signing along with a separate NYPD bill on the mandatory retirement age, S5053B.
The votes came in June. The Senate passed S7808A 59 to 1 on June 1, 2026. On June 4 the Assembly passed the Senate bill in place of its own matching version, A8322A, which is why A8322A still shows as sitting on the Assembly calendar. The Senate bill is the one that went to the Governor.
The law took effect the moment it was signed. Its last line says it applies to members of the Police Pension Fund "who retire on or after" that date. So September 28, 2026 is the date that matters.
What changed in the pension rule
An NYPD pension is figured from a salary base: the pay number the pension formula runs on. Until September 28, Tier 2 had two ways of setting it, depending on your hire date.
Members hired before July 1, 2000 got the greatest of three numbers: their pensionable pay in the final 12 months, the average of their final 36 months, or the average of their best three consecutive calendar years. Members hired on or after July 1, 2000 got one number, the final 12 months, with no look-back.
Chapter 312 ends that split. It adds a new subdivision i to Section 443 of the Retirement and Social Security Law, which says the salary base for post-2000 hires "shall be determined in the same manner" as for members hired before July 1, 2000. Same test, same three numbers, and the highest one counts.
Two things stay the same. The existing 120% limits on how much pay can count still apply: the final 12 months cannot count for more than 120% of the 12 months before them, and in the 36-month and three-year averages no single year can count for more than 120% of the average of the two years before it. And the change is a comparison, not an add-on: if your last 12 months are already your best stretch, your salary base comes out where it would have anyway.
Firefighters hired on or after July 1, 2000 already had this rule. It is subdivision h of the same section. Chapter 312 gives the NYPD the matching line.
For scale, the city's Chief Actuary put the cost at $6.1 million in fiscal year 2027, then about $6.0 million, $5.9 million and $5.8 million over the next three years, and small amounts after that. The present value across the whole group is $21.6 million.
Who is covered
NYPD members in Tier 2 who were hired on or after July 1, 2000 and retire on or after September 28, 2026. Tier 2 closed to new hires on June 30, 2009, so in practice this is anyone hired from July 1, 2000 through June 30, 2009, at any rank. Not covered: Tier 3, and anyone who retired before September 28, 2026. The city's Chief Actuary counted 9,007 active members in this group (Fiscal Note 2026-13), with an average age of 44.7, an average of 19.0 years of service and an average salary of $170,900.
What this means for your money and your plan
The law changed which pay number the Fund uses. It did not change your pay. So for anyone in the covered group, the question comes down to one comparison: does either longer average, your final 36 months or your best three consecutive calendar years, come out higher than your final 12 months?
If it is not, Chapter 312 leaves your pension where it was. That is the member whose pay kept climbing right to the end.
If it is, your salary base can come out higher, and so can the pension built on it. That is the member whose overtime peaked a few years before retirement, or whose last year came in lighter than the ones before it.
A made-up example to show the mechanics. Say your last 12 months of pensionable pay came to $150,000, and your best three consecutive calendar years averaged $160,000. Before September 28, a post-2000 hire's pension started from the $150,000. Under Chapter 312 it starts from the highest of the three figures, with the same limits on countable pay applied. Flip the two numbers and nothing changes.
The pension is the floor the rest of a retirement plan is built on. When that number moves, so does everything stacked on it: how much the 457(b) and other savings have to cover each year, and how long they need to last. A plan drawn up on the old salary base may be running on a number that is no longer yours.
Under the old rule, a post-2000 hire's pension rode on a single year, which put a lot of weight on the last 12 months. Under the new rule a strong three-year stretch counts too, so your final year carries less of the load. The law does not change when you can retire, and it does not answer when to go. That is still a decision about your whole household, and Chapter 312 is one input to it.
The numbers that settle the comparison are in your own pay history: your pensionable pay for the last 12 months and for each year before that. The Police Pension Fund is the one that applies the law to your record. If you filed papers before September 28 with a retirement date after it, or have any other question about how the rule applies to your own case, that question belongs with the Fund, and a legal question belongs with your own attorney. We explain the rule. We do not interpret it for your file.
Where a planner fits is after that: once you know which number is yours, what it does to the 457(b), the draw-down and the rest of the plan.
Common questions
Is S7808A the same as A8322A?
They are the Senate and Assembly versions of the same bill; the Assembly's record lists them as "same as" each other. On June 4, 2026 the Assembly passed the Senate bill, S7808A, in place of A8322A. S7808A is the one the Governor signed, as Chapter 312 of the Laws of 2026.
I retired before September 28, 2026. Does Tier 2A apply to me?
No. The law applies to members who retire on or after September 28, 2026, the day it was signed and took effect. It does not reach anyone already retired.
Does it cover sergeants, lieutenants and detectives?
The text sets no rank limit. It covers Police Pension Fund members in Tier 2 who were hired on or after July 1, 2000, whatever their rank.
Does it apply to Tier 3?
No. The law adds to the Tier 2 rules only. Tier 3 members are not covered.
Can Tier 2A lower my pension?
No. It gives post-2000 hires the highest of three numbers, the same method members hired before July 1, 2000 already had. If your final 12 months are the highest, that is still the one that counts.
Why doesn't Section 443 online show subdivision i yet?
The published text of Section 443 still ended at subdivision h on September 28, 2026. It had not caught up with the signing. The signed bill text, on the Senate and Assembly bill pages linked below, is what became law.
See Both of Your Numbers
The free NYPD calculator has boxes for your last 12 months, your final 36 months (optional) and your best three consecutive calendar years, and figures your pension on the greatest of the three. The Fund's own worksheet is the one that counts.
Open the NYPD Calculator →Free, instant, no call required.
Retiring Under the New Rule?
If you are in the covered group and a retirement date is on your calendar, a free 15-minute call walks through what a different salary base does to the rest of your plan. No pressure.
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Sources: NY Senate: S7808A bill page, text and actions (Signed Chap. 312, September 28, 2026) and NY Assembly: S07808A status, text and Fiscal Note 2026-13 and NY Assembly: A08322A (substituted by S7808A) and Governor's office: signing announcement, September 28, 2026 and RSSL Section 443 (published text, before subdivision i was added). Rules and figures are subject to change; confirm the specifics with a qualified professional.
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Disclaimer: This content is for informational purposes only and does not constitute legal or tax advice. Pension and tax rules are subject to change. Please consult with a qualified tax or financial professional regarding your specific situation.