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Financial Planning for
FDNY Firefighters & EMS

The FDNY pension is one of the most valuable benefits in New York City. Most members retire not knowing how much they're leaving on the table in VSF timing, 457(b) withdrawals, and loan decisions.

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Quick Answer

Should I roll over my NYC 457(b) when I retire from FDNY?

Not immediately. The NYC 457(b) lets you withdraw penalty-free before age 59½ upon separation from service, an advantage you permanently lose if you roll to an IRA at retirement. Most FDNY retirees are best served treating the 457(b) as tax-efficient bridge income while the pension and VSF cover core expenses. Evaluate a rollover when the 457(b) is nearly depleted or after you reach 59½. This is general educational information, not personalized advice.

The FDNY Financial Picture

Your Pension Is Powerful.
But It Has Rules Nobody Explains.

Tier 2 vs. Tier 3 pension structures determine your multiplier, your Variable Supplement Fund timing, and when it makes sense to retire. The VSF (the Variable Supplement Fund) pays you a fixed $12,000 a year in retirement, and working past your 20-year mark banks an added lump sum, but the timing of your retirement date affects what you collect and when.

Your NYC 457(b) deferred comp has a unique advantage most advisors miss: you can withdraw it penalty-free before age 59½ when you separate from service. Roll it into an IRA and that window closes permanently. We check this before recommending anything. See the 457(b) withdrawal rules and what a rollover would cost you →

If you have any student loans (EMS personnel with nursing degrees, firefighters who went back to school), PSLF may forgive your remaining balance after 10 years of service. One wrong move (like refinancing to a private lender) eliminates that eligibility forever.

FDNY Planning Areas

  • Tier 2 vs. Tier 3 pension: retirement date optimization
  • VSF timing: how your retirement date affects supplement payments
  • NYC 457(b) rollover decision: keep penalty-free access or roll to IRA
  • VSF "Banked Variable": what working past your 20-year mark adds to your lump sum
  • PSLF for EMS nurses and firefighters with student loans

Free Analysis

Your FDNY Retirement
Analysis

Most FDNY members never see what the "just roll it over" advice costs them. Run your real numbers in about two minutes.

Five of the questions FDNY members ask us most: should I roll my 457(b), what will my monthly retirement paycheck be, how much can I move to Roth in the low-income years before Social Security and RMDs, what my pension is worth at 20 years versus waiting, and how the 9/11 WTC presumption changes the math. Run your own numbers below.

Hypothetical illustrations for education only. Not a prediction, recommendation, or guarantee. Your actual result will differ.

Your Situation

These are sample numbers. Change your age, balance, and the numbers below to see your own figures. Takes about 30 seconds.

$
$
Total dollars you'd likely withdraw between separating and age 59½. Capped at your balance.
Your Situation
Tier sets how inflation treats your pension. Tier 3 escalation is the lesser of CPI or 3% a year and requires 25 years of credited service; Tier 1/2 get a partial COLA on the first ~$18,000 only. If you're not sure, your Fire Pension Fund estimate or membership date tells you. This tool does not compute the tier formula.
Tier 3 escalation phases in over the three years before your 25-year mark: none if you retire more than 36 months before it, full at 25 years. A standard 20-and-out retirement receives no escalation.
$
Annual, before taxes. Use the number on your Fire Pension Fund estimate. This tool does not compute the tier formula.
VSF is generally a fixed $12,000/yr for members who retire for service with 20+ years on a QPP service pension. Not for disability or vested-deferred retirees. It is flat (no COLA, no escalation), so it loses purchasing power every year. Eligibility and amount are set by the fund. Only include it if your fund confirms you qualify. (Before age 62 the VSF is reduced by a COLA offset; this tool shows the full amount.)
$
$
About that Social Security number FDNY work is not covered by Social Security, so any benefit comes from your other (covered) jobs or a spouse's record. The Social Security Fairness Act (signed January 2025) repealed the WEP and GPO offsets for benefits payable after December 2023, so your benefit is no longer cut for having an FDNY pension. It may be higher than an old statement showed. Check your real number at ssa.gov/myaccount. Educational note, not advice.
NY does not tax your FDNY pension or VSF; 457(b) withdrawals are NY-taxable beyond a $20,000 exclusion if you are 59½+. Florida has no state income tax. New Jersey exempts Social Security and, at 62+, may exempt pension/457 income under its Retirement Income Exclusion when total New Jersey gross income is within the limit ($100,000 for all filers, with a phase-out to $150,000; simplified here). Other states vary.
A scenario you choose, not a forecast. Used only to show what today's dollars are worth later. The long-run average has been roughly 2–3%.
Your Service
Your QPP membership date. This sets your tier. Use the date on your pension fund record, not your academy graduation.
We auto-detect, but you can override if your fund record says otherwise.
$
Annual. This is the average of your highest 3 consecutive years of pensionable pay (base + OT + longevity) for all Tier 3 members retiring on or after April 2024 (the April 2024 pension reform replaced the old 5-year average for post-2012 hires). If you don't know it yet, use roughly your recent full-year pay.
A date you're considering putting your papers in. We'll show your service time and where it falls on the escalation curve.
Your Situation
$
The salary figure your pension is based on (the highest-3-consecutive-years average for Tier 3 members retiring on or after April 2024; retirements before then may have used a 5-year average for post-2012 hires). Use the number on your NYC Fire Pension Fund estimate. The WTC Accidental Disability benefit pays 75% of this.
$
Annual, gross. The service/ordinary pension you collect now or expect at retirement: the number from your fund estimate. This tool does not compute the tier formula; it compares whatever you enter to 75% of FAS.
Drives whether the VSF is in your current stack. Service retirees with 20+ years generally receive the VSF; disability retirees do not.
VSF is generally a flat $12,000/yr for service retirees with 20+ years, and $0 for disability retirees. So on the WTC (disability) side it drops to $0. Only include it if your fund confirms you qualify.
Drives the federal tax picture. Members who retired before Jan 1, 2009 generally get the full federal exclusion; on or after that date, only part of the disability pension is federally excluded.
The Notice preserves your right to file later. The filing deadline is September 11, 2026. Once it's on file, there is no deadline to later file the disability claim or reclassify an existing pension.
Your Situation
$
Your federal taxable income (after the standard deduction). Your pension is the usual main piece. NYC/FDNY pension is not taxed by NY, but it is taxable on your federal return, so it counts here.
$
Your traditional 457(b) and/or traditional IRA dollars. Roth balances do not belong here.
75 if born in 1960 or later, which covers nearly every serving member. 73 only if born 1951-1959 (SECURE 2.0 sec. 107).
What the Numbers Say
What's at stake
0 yrs
of penalty-free access before 59½.
Educational estimate, not advice.
Max 10% penalty an IRA would charge on early withdrawals (one-time)—
457(b) value in horizon —
IRA value in horizon —
Fee difference over horizon (future $, whole balance)—
A common middle path

—

Things to weigh

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The penalty-free 457(b) window closes for good the day you roll. Worth a careful look before you decide.

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Your Estimated Paycheck
Estimated pre-Social-Security monthly income
$0
—
Educational estimate, not advice.
FDNY pension (annual, gross)—
VSF (annual)—
457(b) withdrawal (annual)—
Federal tax (rough est.)—
State tax (rough est.)—
Pre-SS net (monthly)—
Once SS starts: net (monthly)—
What inflation does to your check
In today's dollars, this stack is worth
—
—
Inflation-protected — Partly protected — Not protected —
—
Things to weigh

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Your Pension at 20 vs Waiting
Estimated annual service pension on this date
$0
—
Educational estimate, not advice.
The 2025 change most members haven't heard

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Tier (from your date)—
Service on this date—
Pension as % of FAS (current law)—
Inflation escalation locked in—
Your full-escalation (25-yr) date—
Things to weigh

—

Your papers-in date sets your FAS window AND how much inflation protection you lock in. Worth modeling before you pick it.

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The 75%-of-FAS Swing
Illustrative monthly swing IF medically approved
$0
—
Educational estimate, not advice. Not an eligibility determination.
Your current annual stack (pension + VSF)—
WTC Accidental Disability rate (75% of FAS)—
VSF on the disability side$0
Annual swing IF approved—
New York / NYC tax on the WTC pensionExempt
Federal treatment (your retirement year)—
One hard date

—

Read this first

—

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Your Conversion Window
Hypothetical total you could move to Roth before RMDs
$0
—
Educational estimate, not advice. Not a recommendation to convert.
Window length (low-income years before RMDs)—
Room in your target bracket this year—
Annual conversion headroom (lowest of the ceilings)—
What's holding the headroom—
Rough federal tax on one full-headroom year—
Things to weigh

—

Every year that passes is one fewer low-tax year before RMDs begin.

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Your numbers
Penalty-free window—
Fee difference if you roll—

Want a second set of eyes on these?

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Built on the real FDNY rules: the NYC Fire Pension Fund’s Tier 2 and Tier 3 provisions (Tier 3 under RSSL Article 14, incl. Chapter 692 of 2025), the NY $20,000 exclusion, and 2026 IRS figures.

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Sirmium Capital LLC is a registered investment adviser. Educational purposes only. Not personalized financial advice. This tool does not create an advisory relationship.

Important: These calculators are hypothetical illustrations for education only. They are not investment, tax, or legal advice, not a recommendation, and not a guarantee. Your actual result will differ. Figures use general 2026 federal and NYC figures, current as of July 2026 (IRS Rev. Proc. 2025-32; NYC Fire Pension Fund / Office of the Actuary; CMS), and do not reflect credits, other income, NIIT, AMT, capital-gains stacking, your state return, market ups and downs, or your full balance sheet. They are not tax advice or tax preparation. RMD age, IRMAA thresholds, VSF eligibility, and the NYC COLA can change and depend on your situation. If you later become a client and roll over assets, Sirmium may earn advisory fees on those assets; weigh that when reading the 457(b) tool. Registration does not imply a certain level of skill or training. Confirm specifics with the NYC Fire Pension Fund, the NYC Deferred Compensation Plan, and a qualified tax professional before acting.

Free Resource

Get Your Free FDNY Retirement Blueprint

The five decisions that move the most money at separation: the 457(b), your retirement paycheck, the Roth conversion window, pension at 20 vs 25, and the 9/11/WTC deadline. Built for FDNY retirees, and made to read alongside the calculator above.

Download the free Blueprint (PDF)

Sirmium Capital LLC is a registered investment adviser. Educational purposes only. Not personalized financial advice.

What's Inside:

  • Tier 2 vs. Tier 3: the retirement multiplier difference
  • VSF payment schedule and when to time your retirement
  • Why rolling your 457(b) early can cost you penalty-free access
  • PSLF eligibility for EMS and fire service members

FAQs

Common FDNY Financial Questions

A NYC Fire Department Pension Fund service retirement pays 50% of Final Average Salary (FAS) at 20 years of service. For Tier 2 (firefighters hired before 7/1/2009), each year worked past 20 adds about 1.67% (1/60) of FAS, and FAS is based on final salary with a 3-year anti-spiking limit. For Tier 3 (RSSL Article 14, hired on/after 7/1/2009), Chapter 692 of 2025 raised the benefit at 20 years from 42% to 50% of FAS (previously 50% required 22 years; Tier 3 members could always retire at 20), and FAS is the highest-3-consecutive-years average for all Tier 3 members retiring on or after April 2024 (the April 2024 pension reform replaced the 5-year average that had applied to post-2012 hires). Tier 3 allowances are reduced at age 62 by 50% of the primary Social Security benefit. Sirmium models these tier, hire-date, and offset variables for FDNY families on its free FDNY pension calculator.
The FDNY Firefighters' Variable Supplement Fund (VSF) pays a flat $12,000 per year to members who retire on a service retirement with 20 or more years of uniformed service (NYC Administrative Code Section 13-383); it is a fixed amount with no COLA. Vested or disability retirees are not eligible. If you receive a pension COLA before age 62, that COLA offsets the VSF dollar-for-dollar until you turn 62. This matters for the 20-and-out path: a firefighter who retires in their forties can become COLA-eligible at 55, after five years retired, and the offset applies from then until 62. Confirm your own COLA start date with the NYC Fire Pension Fund. Sirmium models VSF timing into the first-year cash-flow plan for FDNY retirees.
A governmental 457(b) like the NYC Deferred Compensation Plan lets you withdraw penalty-free once you separate from service at any age, with no 10% early-withdrawal penalty before age 59 and a half. If you roll those dollars into an IRA, they generally lose that status and become subject to the 10% penalty before 59 and a half unless you use a 72(t)/SEPP schedule. This is general educational information, not advice; Sirmium models the early-access window against the rollover decision for FDNY families.

Go Deeper

FDNY Planning Resources

Calculator

What a 457(b) rollover would cost you

A governmental 457(b) is the only account you can tap at any age after you leave the job without the 10% penalty. Roll it to an IRA and that stops. Put in your separation age and balance and see the number, plus your 2026 contribution limits across the 457 and the 401(k).

Open the 457(b) calculator →
Watch

The Five Decisions of an FDNY Retirement

A short, plain-English walk through the five choices that set your retirement income for life: pension timing, the VSF, your 457(b), the Roth window, and the 9/11 WTC deadline. Education only, no obligation.

Research Letters

Calm, sourced letters from our CIO

Short, plain-English research you can read and forward to a friend on the job. Educational information only, not legal or tax advice.

Is Your Pension Actually Safe? (PDF) → The Retirement Move You Can't Undo (PDF) →
Article

FDNY 457(b) in Retirement: What Most Members Get Wrong

 Article

FDNY and EMS Pension Gap: How to Close It

 Guide

FDNY 457(b) Rollover Decision Guide

 Audio

FDNY Audio Briefings

The FDNY retirement audio series, with written companions for every episode.

 Article

FDNY Retirement Timing: Retire at 20 vs. Stay for Full Value

 Article

FDNY Tier 2 vs. Tier 3 Pension Explained

 Article

FDNY Pension Buyback 2026: Is It Worth It?

Ready to Begin?

15 Minutes.
Just Honest Answers.

Book a free 15-minute call. We'll walk through your pension tier, 457(b) situation, and answer whatever you're thinking about.

Bring these and 15 minutes is plenty

Your 457(b)/NYCDCP balance and the fund it's in  ·  your pension tier and monthly estimate (and VSF eligibility)  ·  other accounts: IRA, Roth, brokerage, yours and your spouse's  ·  the monthly income you'll want in retirement. Ballpark is fine. Come anyway and we'll point you to exactly what to pull.

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Reviewed as of July 2026. Verified against the NYC Fire Pension Fund plan documents, the Retirement and Social Security Law, and 2026 IRS figures.

Sources: Chapter 692 of 2025 (Senate S4727) · RSSL §511 (age-62 Social Security offset) · NYC Admin Code §13-383 (Firefighters' Variable Supplements Fund) · IRS 2026 inflation adjustments (Rev. Proc. 2025-32). Rules and figures change; confirm your own situation with the NYC Fire Pension Fund and, for tax questions, your tax professional.

How we keep this current. Pension rules change, and a lot of what is online is out of date. We track New York pension legislation and the funds’ own publications, and we update these tools when the law moves. When Chapter 692 of 2025 raised the Tier 3 pension at 20 years from 42% to 50% of final salary, we updated the calculator to match.