If you're NYPD or FDNY, you already know — the Job isn't just a career. It's a pension that can set your family up for life. But here's what the standard retirement briefing usually skips: how your city pension, your deferred comp (457/401k), and any 9/11 VCF or USVSST money all interact with each other. Get that wrong, and it can cost you tens of thousands.
Your Final Average Salary Is Everything
Doesn't matter if you're Tier 2, 3, or 6 — the pension formula starts with your Final Average Salary (FAS). That number is based on your last few years on the Job, overtime included. So what you do in those final years directly affects what you'll collect every month for the rest of your life.
We sit down with members and map out those last 3–5 years. Where should you pick up extra tours? When does overtime actually help your FAS vs. just bumping you into a higher tax bracket? These are real decisions that most guys don't think about until it's too late.
"Will My VCF Award Cut Into My Pension?"
This is one of the first questions we get. And the short answer is: not if it's handled right. There are coordination rules between VCF awards and city pension disability benefits — but they don't have to work against you. We've helped families keep both checks intact by structuring things correctly from the start. That usually means getting your financial advisor, your attorney, and your union rep all on the same page early.
The Deferred Comp Problem Nobody Talks About
A lot of members have $500K, $800K, even over a million sitting in their 457(b) or 401(k). That's great — until you hit your 70s and the IRS forces you to start taking Required Minimum Distributions. Suddenly you've got your pension plus a big mandatory withdrawal, and the tax bill can be ugly. We've seen members lose 30%+ to taxes they could've avoided with a few years of planning.
Here's what we usually work through with members:
- Roth conversions during the gap years — between retirement and Social Security, your income drops. That's the window to move money into a Roth at a lower tax rate, so you're not paying 32% on it later.
- Spousal protection — your survivorship benefit needs to line up with your other assets. If it doesn't, your spouse could end up with a gap.
- Better investment options — the city plan has limited choices. Rolling part of your deferred comp to an IRA opens up a lot more.
9/11 Presumptive Disability
For members navigating 9/11-related health issues, pension disability elections (like the 3/4 accidental disability) change every variable in your plan. We specialize in the math of these specific elections.
If You're Within 5 Years of Retirement
The decisions you make now lock in. Your pension election, your deferred comp rollover, your disability filing — these aren't things you can undo. If you haven't sat down and run the numbers on all of this together, now's the time.
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Comprehensive Family Planning
Our veteran-led firm provides specialized guidance for first responder families across all pillars of wealth preservation:
- • 401K & IRA Management
- • Strategic Tax Planning
- • Holistic Retirement Planning
- • Legacy & Estate Planning
- • Integrated Insurance Planning
Sirmium Capital, LLC is a registered investment advisor. Pension rules are governed by the NYC Police Pension Fund and FDNY Pension Fund. Consult with a qualified fiduciary and union representative.