DSNY Pension Guide — Know Your Plan

First Things First

Which Plan Are You In?

Everything about your retirement depends on one thing — your DSNY hire date. Two plans apply to DSNY workers. Know which one is yours before you read anything else.

Tier 4 · SA-20 Plan

Hired July 27, 1976 – March 31, 2012

✓Retire after 20 years of Allowable Sanitation Service — no age requirement
✓50% of Final Average Salary at 20 years
✓No Social Security offset
✓Most favorable DSNY plan
→AMC contributions required for all 20 years of service
→Benefit caps at 30-year equivalent

Full SA-20 section →

Tier 3 · SA-22 Plan

Hired April 1, 2012 or after

✓Full retirement after 20 years of Credited Service — restored by the 2026 state budget
✓50% of Final Average Salary at 20 years — matches the pre-2012 plan
!Social Security offset still applies — the 20-year change does not fix it
!Higher employee contributions than SA-20
→No one in this tier reaches 20 years until 2032 — NYCERS materials may still say 22 until they catch up

Full SA-22 section →

Tier 1 & Tier 2 Members — Hired Before July 27, 1976

Almost no one in these tiers is still active. If you are Tier 1 or Tier 2, your benefit formula is the most generous in the system, your benefit is fully vested and constitutionally locked, and nothing currently proposed threatens what you have earned. Call NYCERS at 347-643-3000 and request a written benefit estimate. That is the only action item you need.

Spring 2026 · Budget Season

The Current Threat —
What Is Actually Happening

Through the spring 2026 budget season, two pension-related moves drew alarm across DSNY Facebook groups: the city stretching out its pension funding schedule, and a February proposal to tap the retiree healthcare fund. Here's where each one actually landed — and what it means for you.

What Is Actually On The Table

Budget Move	What It Means	Your Pension Check	Your Healthcare
Re-amortize (stretch out) pension contributions	NYC has been paying down a multibillion-dollar pension shortfall on a schedule set to end in 2032. The 2026 state budget authorized stretching that to 2037, freeing up roughly $2.3 billion near-term to help close the city's $5.4 billion deficit. Each of the five city pension boards — NYCERS included — must vote to approve it within 30 days of enactment; the city assumes four of the five will.	No direct impact. Benefits are constitutionally protected regardless of the funding schedule. The trade-off is long-term: deferring now means higher city costs after 2033 — an estimated $7+ billion more over the next decade.	No direct impact.
Draw $229M from the Retiree Health Benefit Trust Fund (RHBT)	The RHBT is a separate fund — not the pension fund — that pays for retiree healthcare. The February preliminary budget floated drawing $229 million from it as a fallback. The May executive budget dropped that and moved to restore the fund using $1.2 billion in prior payables. NYC Comptroller Mark Levine had flagged the original move: the RHBT is not a rainy day fund.	No direct impact.	Off the table for now — the draw is not in the active budget. But the city's budget isn't adopted until June 30, and the RHBT has less legal protection than your pension and has been tapped before. Watch the adopted budget and the Medicare Advantage litigation.

⚠ The Payday Loan Problem

Deferring pension contributions has been described as "essentially a payday loan — the city gets a short-term benefit but pays considerably more by kicking costs out." That's exactly what the 2026 re-amortization does: it frees up money now and pays it back later, at an estimated $7+ billion more over the next decade. Your check keeps coming either way — it's constitutionally protected — but the fund carries more risk the longer the city underfunds it. Watch how each pension board votes, and watch Albany during budget season every spring.

How We Got Here

UFT President Michael Mulgrew made a deal with then-Mayor DeBlasio to fund teacher raises by switching all NYC retirees — every union, not just teachers — to Medicare Advantage, saving the city $600 million a year. Marianne Lynda Carter Pizzitola founded the NYC Organization of Public Service Retirees (nycretirees.org) specifically to fight this. Her organization has won multiple court battles. The fight is not over.

ℹ Follow These

nycretirees.org — Founded by Marianne Lynda Carter Pizzitola. Subscribe to the mailing list. Most current source on court cases, plan changes, and every active threat to your healthcare in retirement.

Bills A7866 / S8388 — Would give retiree health benefits the same constitutional protection as pensions. Not passed yet. Contact your state representatives and ask them to support it.

Hired Before April 1, 2012 · Tier 4

SA-20 — Your Plan
In Full Detail

The Sanitation 20-Year Retirement Plan is available exclusively to DSNY uniformed force employees. If you were hired before April 1, 2012, this is your plan. It is the most favorable retirement plan available to DSNY workers.

SA-20

Sanitation 20-Year Retirement Plan — Tier 4

NYCERS Brochure #935 · Updated September 2025 · DSNY Uniformed Force Only

Eligibility

20 Years

Allowable Sanitation Service — no minimum age requirement

Benefit at 20 Years

50% of FAS

Final Average Salary — highest 3 consecutive years

Maximum Benefit

30-Year Cap

Benefit caps at the 30-year equivalent — working beyond 30 years does not increase your pension

AMC Contributions

Full 20 Years

Required for all 20 years of Allowable Sanitation Service. Cannot retire with a deficit.

SS Offset

None

SA-20 has no Social Security offset — that is an SA-22 issue

Vesting

5 Years

Can vest under the 62/5 plan with at least 5 years of Credited Service if you leave before 20 years

Allowable Sanitation Service — What It Means and Why It Matters

Your eligibility is based on Allowable Sanitation Service — not simply the number of years you have been employed. These numbers are usually the same but leaves of absence, certain unpaid time, and other factors can affect your count. Never assume.

⚠ Confirm Your Exact Count Before You File

Call NYCERS at 347-643-3000 and ask specifically for your Allowable Sanitation Service count. Get it in writing. This is the number that determines the exact date you are eligible to retire and your actual pension amount. Do not guess. Do not assume.

How Your Benefit Is Calculated

Your benefit is a percentage of your Final Average Salary (FAS) — the average of your highest 3 consecutive years of wages, wherever they fall in your salary history.

At 20 years

50% of Final Average Salary

Base benefit — no age requirement

Beyond 20 years

Benefit increases with additional service

Confirm exact per-year increment in your NYCERS Brochure #935 or with NYCERS directly

Maximum (30 years)

Benefit caps at the 30-year equivalent

No increase beyond this point

ℹ The 10% FAS Rule

Any year used in your FAS calculation cannot exceed the average of the previous two years' wages by more than 10%. Anything above that threshold is excluded. This limits the impact of a single high-earning year — plan your peak earning years accordingly and do not count on one outlier year inflating your pension significantly.

The 3-Year FAS Window — This Is Where Your Pension Is Made or Lost

Maximize Your FAS

✓Highest 3 consecutive years — not necessarily your last 3
✓Overtime is included for SA-20 members
✓Night differential, longevity, and pensionable earnings count
→Identify your 3 highest consecutive earning years and plan retirement around them

Watch Out For

!The 10% spike rule — one blowout year helps less than you think
!Retiring before your highest earning years close permanently reduces your benefit
!Do not assume your last 3 years are your best 3 — run the actual numbers
→Ask NYCERS to run estimates with different retirement dates before you file

Disability and Death Benefits

Benefit	Amount	Condition
Ordinary Disability	1/3 of Final Average Salary	Physically or mentally incapacitated for duties — not job-related
Accidental Disability (Line of Duty) (RSSL §605-b)	3/4 of Final Average Salary	Incapacitated as the direct result of an on-the-job accident, not caused by willful negligence. DSNY uniformed members have no Workers' Compensation offset.
Death in Service	3x annual wages	Death while in active service. Keep beneficiary designations current with NYCERS.
Line of Duty Death	Combined Benefit Equivalent to 100% of Wages	Special Accidental Death Benefit (state-funded) plus the regular Accidental Death Benefit, combined to bring total payments to the equivalent of the member's full salary including OT, night differential, and longevity payments. For sanitation, reduced only by the basic Social Security survivor's benefit. No Workers' Compensation offset.

SA-20 Action Items

1. Call NYCERS (347-643-3000) — Request your exact Allowable Sanitation Service count and a written benefit estimate at your target retirement date. This is the most important document in your retirement planning.

2. Log into mynycers.org — Review your Annual Disclosure Statement. Confirm your AMC account balance and beneficiary designations are current.

3. Identify your FAS window — Pull your W-2s for the last 5+ years. Find your 3 highest consecutive years. Compare to a last-3-years scenario. Know which is higher before you file.

4. Confirm AMC balance — SA-20 members cannot retire with a deficit in their AMC account. Confirm your balance now, not the week before you file.

Hired April 1, 2012 or After · Tier 3

SA-22 — What Changed
and What You're Fighting For

If you were hired April 1, 2012 or later, you are in the SA-22 plan. The terms were harder than SA-20 — higher contributions, two extra years, an active Social Security offset. But the 2026 state budget restored the 20-year retirement that was taken from this tier. The offset is still in place. That is the fight that remains.

SA-22

Sanitation 22-Year Retirement Plan — Tier 3

NYCERS · DSNY Uniformed Force hired April 1, 2012 or after

Eligibility

20 Years

Full service retirement at 20 years of Credited Service — no age requirement. Restored by the 2026 state budget.

Benefit at 20 Years

50% of FAS

Full normal benefit — same as SA-20. The old reduced 42%-at-20 rate no longer applies.

Before the 2026 Budget

22 yrs / 42%

Full benefit required 22 years; going at 20 paid a reduced 42% of FAS. Both replaced by the 20-year restoration.

SS Offset

Yes

Reduces your net pension by 50% of your Primary Social Security benefit starting at age 62. At an estimated $1,500/month SS benefit, the offset reduces your pension by $9,000 per year for life — about $180,000 over 20 years of retirement.

Contributions

3% Basic

3% of wages basic. SA-22E participants pay Additional Member Contributions on top of the 3% to fund enhanced disability protection.

FAS Calculation

3 Years

Highest 3 consecutive years. Changed from 5 years by Chapter 56 of the Laws of 2024. Wages in any year used in FAS cannot exceed the previous 2-year average by more than 10%.

Overtime in FAS

Pensionable

Overtime is pensionable for SA-22, same as other tiers. Subject to the 10% spike rule — wages in any single year used in FAS cannot exceed the previous 2-year average by more than 10%. Source: NYCERS Brochure #995, p.3

⚠ Social Security Offset — Know Your Actual Net Number

SA-22 members are subject to a Social Security offset that reduces your NYCERS pension benefit. SA-20 members have no such offset. Before you retire, call NYCERS and request a benefit estimate that specifically includes the SS offset calculation. Also check ssa.gov/myaccount for your projected Social Security benefit — both numbers affect your retirement income picture. Do not plan on the gross 50% figure without understanding what the offset takes back.

FAS Calculation — What Changed and What Applies to You

SA-22 was originally on a 5-year FAS window. Chapter 56 of the Laws of 2024 (Part QQ) changed this to 3 years for certain Tier 3 members — including SA-22. This was a real improvement. However, two differences from SA-20 remain:

Rule	SA-20 (Tier 4)	SA-22 (Tier 3 Revised)
FAS window	3 highest consecutive years (any period)	3 highest consecutive years (changed from 5 by 2024 legislation)
Annual spike cap	Cannot exceed previous 2-year average by more than 10%	Cannot exceed previous 2-year average by more than 10% (effective April 20, 2024)
Overtime in FAS	Pensionable, subject to 10% spike rule	Pensionable, subject to 10% spike rule

ℹ One Remaining Exception

SA-22E members (Enhanced Disability Benefit plan) retiring specifically on an Enhanced Disability Benefit still use a 5-year FAS window. All other SA-22 service retirees use 3 years as of the 2024 legislation.

The Albany Fight — What Got Won, What's Left

The 20-year retirement is back. SA-22 used to require 22 years for the full 50% benefit — going at 20 paid a reduced 42%. The 2026 state budget restored the full 50%-of-FAS benefit at 20 years for both DSNY (SA-22) and DOC (CF-22) revised-plan members, matching the SA-20 terms in place before April 2012. The city absorbs the entire cost. Workers pay nothing additional.

How it passed matters, because it's easy to get wrong. The standalone bills — S6486 (sanitation and correction) and S7414 (sanitation only) — did not become law on their own. S6486 was vetoed in December 2025. The same statutory change was instead enacted inside the FY2027 state budget, as Part FFF of the budget bill (A10008C), signed in 2026. If you look up S6486 on its own, its page says "Vetoed" — the win came through the budget, not the standalone bill.

What's still outstanding is the Social Security offset. That lives in a separate bill, S4668, still in committee. The 20-year fight is done. The offset fight is not.

Measure	What It Does	Status
20-Year Restoration (Part FFF, FY2027 budget)	Restores the full 50%-of-FAS benefit at 20 years for SA-22 and CF-22 revised-plan members. City absorbs the full cost.	Enacted — signed into law, 2026
S4668 (Senate)	Eliminates the 50% Social Security offset for SA-22 sanitation and correction members. Worker pays nothing additional — city absorbs the full cost.	In committee — not passed

S4668 has been reintroduced in successive sessions, each time dying in committee. It was previously introduced as S6371 (2021–2022 session) and S5793 (2023–2024 session). Each version has been substantively similar with similar fiscal note projections.

ℹ Why the Offset Bill Stays Stuck

S4668 does not require workers to repay anything to the pension fund. Its fiscal note, prepared by the Chief Actuary for the New York City Retirement Systems, allocates the entire cost to New York City as employer contributions. Workers pay nothing additional. The bottleneck is political will, not budget impossibility — the bill gets stuck in the Senate Civil Service and Pensions Committee because legislators outside New York City don't face direct constituent pressure from sanitation workers. The 20-year restoration proves it can move: that change got carried into the budget and signed. Calling your state senator and assembly member is what pushes the offset the same way.

SA-22 Action Items

1. Call NYCERS (347-643-3000) — Request a benefit estimate that includes the Social Security offset applied to your record. Know your actual net number.

2. Check ssa.gov/myaccount — Your projected Social Security benefit directly affects your SA-22 net pension calculation.

3. Track S4668 through your union — The 20-year restoration is done. The Social Security offset is the benefit still on the table. If S4668 passes, your net retirement number changes. Contact your state senator and assembly member and ask for their support.

4. Get a written benefit estimate — Request a benefit estimate from NYCERS that uses your specific Credited Service count. Full SA-22 service retirement is now 20 years of Credited Service, regardless of age. Note that NYCERS materials and reps may still reference 22 years until their system catches up to the 2026 change — if you're told 22, that is the lag, not a new rule. The earlier you can get a written estimate at your projected retirement date, the better your planning.

SA-22E · Enhanced Disability Benefit Plan

The Disability Plan You
Probably Don't Know You're In

When SA-22 was first imposed in 2012, the plan stripped the three-quarters disability benefit and removed presumptive disability protections for new sanitation hires. Workers and the union pushed back. In 2016, the city restored those protections — but only on the condition that workers fund the entire cost themselves through Additional Member Contributions on top of the basic 3% pension contribution. The result is the SA-22 Enhanced Disability Benefit Plan, or SA-22E.

Hire Date	Enrollment Status
April 1, 2012 – August 31, 2016	Optional. One-time election window closed February 28, 2017.
September 1, 2016 or after	Mandatory. All sanitation hires automatically enrolled.

Sources: NYCERS Fact Sheet #728 · Chapter 61 of the Laws of 2017 · RSSL §605-b

What SA-22E Provides

Under RSSL §605-b, SA-22E participants who NYCERS determines to be incapacitated for duty as the natural and proximate result of a duty accident — and not from willful negligence — receive an annual retirement allowance equal to 75% of Final Average Salary. The benefit is tax-free under federal law and is not reduced by any Social Security benefits the member receives. This applies to any qualifying on-the-job accident, not only Heart Law or WTC cases.

SA-22E participants are also entitled to the Heart Law presumption — under which the burden of proof for certain heart conditions runs against the city — and to the WTC Law presumption for World Trade Center-related conditions. Both presumptions, when applied, route the disability classification through §605-b at the 75% rate.

Disability Type	Base SA-22 (no SA-22E)	SA-22E
Accidental Disability (Line of Duty)	50% of FAS, taxable, reduced by 50% of Primary SS Disability or SS Benefit (RSSL §605)	75% of FAS, tax-free, NOT reduced by Social Security (RSSL §605-b)
Heart Law Presumption	No	Yes — qualifies under §605-b at 75%, tax-free
WTC Law Presumption	Standard NYCERS WTC coverage applies	Standard WTC + §605-b 75% benefit, tax-free
Ordinary Disability (non-job-related)	1/3 of FAS	1/3 of FAS — no enhancement
Cost-of-Living Adjustment	Escalation per RSSL §510	COLA per NYC Admin Code §13-696 (after 5 years retired) — not §510 escalation

Source: NYCERS Fact Sheet #728, June 2025 · RSSL §605-b · NYC Administrative Code §13-696

What You Pay For It

SA-22E is funded entirely through Additional Member Contributions (AMCs) paid by SA-22E participants on top of the basic 3% pension contribution. The city contributes nothing toward the enhanced disability benefit.

Period	AMC Rate
Through June 30, 2025	1.3% of gross wages
July 1, 2025 – June 30, 2028	1.4% of gross wages

The current AMC rate expires June 30, 2028. The Chief Actuary reviews the AMC rate every three years to determine whether it fully funds the benefit. Any future rate change applies prospectively. Source: NYCERS Fact Sheet #728, June 2025

For mandatory enrollees (hires after September 1, 2016), AMCs are federally tax-deferred. For voluntary electors who chose SA-22E during the 2012-2016 window, AMCs are not federally tax-deferred — they were elected after enrollment in the underlying base plan.

⚠ The Trapped Middle

There is one cohort of SA-22 sanitation workers who do not have access to SA-22E protections: workers hired between April 1, 2012 and August 31, 2016 who did not file an SA-22E election by February 28, 2017. The election window has been closed for nine years. Workers in that cohort are permanently locked under the original base SA-22 disability rules — 50% of FAS cap on accidental disability, no Heart Law presumption, no automatic 75% benefit for line-of-duty accidents — for the rest of their careers. If you were hired in that window and you are not sure whether you elected SA-22E, call NYCERS at 347-643-3000 and ask for your Plan Code on file. SA-22E participants will have a Plan Code that includes the enhanced designation. This is information you should know before you ever need to file a disability claim.

SA-22E Action Items

1. Confirm your enrollment status. Call NYCERS (347-643-3000) and ask whether you are enrolled in SA-22 or SA-22E. Hires after September 2016 are automatically in SA-22E. Hires April 2012–August 2016 are only in SA-22E if they filed an election by February 28, 2017.

2. Check your pay stub. SA-22E participants pay an Additional Member Contribution on top of the basic 3%. If you see a separate AMC line, that is what is funding your enhanced disability benefit.

3. Verify your specific AMC rate. The current rate is 1.4% of gross wages effective July 1, 2025 (was 1.3% before that). The next review is set for June 30, 2028. Confirm yours with NYCERS or your pay stub.

4. Document every on-the-job injury. Even with SA-22E protections, the disability benefit only pays out if NYCERS approves the claim. The paper trail is what protects you. File the line-of-duty incident report every time. Keep your own copies.

Already Collecting

Current Retirees —
What Is Safe and What Is Not

If you are already receiving your pension, your situation is different from active employees. Here is exactly what is protected and what is not.

Your Monthly Pension Check

No Risk

Constitutionally locked under NY State Constitution Article V, Section 7. No proposal currently active — including Mamdani's budget moves — reduces what you receive. The check does not change.

Retiree Healthcare

Active Threat

The Retiree Health Benefit Trust Fund (RHBT) — which funds your healthcare — does not have the same constitutional protection as the pension. Mayor Mamdani proposed drawing $229 million from it. NYC Comptroller Mark Levine flagged this as a misuse of the fund. The City Council opposed it. The fight is ongoing.

NY State & NYC Tax Exemption

Intact

Your NYCERS pension is exempt from New York State and NYC income tax. Federal withholding only. Not targeted. Worth significantly more in your pocket compared to a private pension of the same gross amount.

Cost of Living Adjustments

Watch

COLAs are separately legislated — not part of the constitutional protection. They require political will to increase. Do not count on large COLA increases as part of your financial planning.

Returning to Public Work

Know the Limit

Section 212 of the RSSL: earnings from public employment are capped at $35,000 per calendar year in 2026 (this figure has been $35,000 since 2020). Bills pending in Albany to raise this limit — not passed yet. Private sector work has no earnings limit. The limit disappears entirely in the calendar year you turn 65.

Fund Health Long-Term

Solid

NYC's combined pension funds are well-funded relative to peer cities like Chicago and Detroit, with substantial assets behind every retiree's vested benefit. NYCERS' total portfolio was valued at $102.5 billion as of June 30, 2025. The fund returned 10.05% net in FY2025 — above the 7% actuarial assumption but below NYCERS' own 11.66% policy benchmark for the year. The exact funded ratio varies by fund and is published annually in the NYC Comprehensive Annual Financial Report.

⚠ The Apathy Problem

Marianne Lynda Carter Pizzitola is constantly fighting for retirees, and 98% ignore it — until retirement comes and something is not what they expected. The information exists. The organizations exist. The court battles are happening right now. Whether you engage before or after it affects you is a choice you make today.

The Real Active Fight · Source: nycretirees.org

Healthcare — The Battle
Nobody Warned You About

The pension check is constitutionally locked. Your healthcare is not. Three active court cases, a medical plan launched in January 2026 whose legal authority is still contested, and $229 million of your retirement healthcare fund targeted for budget use.

The Three Court Cases

Case	What It Was About	Status	Impact
Campion	Whether the city could force Medicare-eligible retirees off Traditional Medicare into Medicare Advantage	WON — Closed. NYC Courts of Appeals, unanimous decision for retirees.	Medicare-eligible retirees kept the right to choose Traditional Medicare. City cannot force MA.
Bianculli (CoPay Case)	Whether the city can charge $15 copays to Medicare retirees who previously had none	Still in court. Injunction was lifted — $15 copays began January 2025 and are live. Some DSNY retirees report $2,100+ per year in out-of-pocket costs under the current structure (member-reported figure — verify with your union).	If you are Medicare-eligible, you are paying these copays now. Legal fight continues.
Bentkowski ("Nuclear Option")	Most aggressive move — would have forced all retirees into Medicare Advantage regardless of preference	Partially won. Forced MA switch blocked for now. 12 causes of action still in Supreme Court — not yet scheduled.	Forced switch blocked. City has not conceded. Watch nycretirees.org.

The NYCE PPO — Your Medical Plan as of January 1, 2026

⚠ Enrolled in a Plan Whose Legal Authority Is Still Contested

The MLC approved the NYCE PPO to replace GHI/CBP for active workers and non-Medicare retirees. It is live. But the court denied the city's motion to dismiss a challenge to it, finding the mayor may not have had legal authority to create a self-insured plan. You are enrolled in a plan that is being litigated while you use it. Verify your doctors and specialists are in-network. Verify your medications are on the formulary. Do this now, not when you need care.

ℹ Key Resources

nycretirees.org — Founded by Marianne Lynda Carter Pizzitola. Subscribe to the mailing list. Most current source on every court case and healthcare threat.

NYC OLR (olr.nyc.gov) — Official plan enrollment and retiree benefit documentation.

Bills A7866 / S8388 — Constitutional protection for retiree health benefits. Track at nysenate.gov.

Former Comptroller Brad Lander (Dec 2025) — Released audit findings on the city's long-term healthcare liability. Current Comptroller Mark Levine (took office January 1, 2026) has continued flagging RHBT drawdown risks.

Mayor Mamdani (April 2026) — Proposing pension contribution deferral and $229M RHBT drawdown. Monitor through nycretirees.org and Local 831 for current status.

Your Specific Benefits · DSNY Members and Retirees

Local 831 Coverage

All three benefits below continue into retirement through the Local 831 welfare fund. Medical, dental, and vision — all three carry with you when you retire.

Medical

NYCE PPO

City plan. Non-Medicare active and retirees. Legal authority contested — enrolled but litigated. Verify your doctors are in-network before and after retirement. Continues into retirement.

Dental

EmblemHealth Preferred Premier

Via Careington nationwide network. Changed July 1, 2025 — applies to both active AND retired members. Any dentist in the Preferred Network. Continues into retirement.

Vision

ASO (asonet.com) + Medical

Dual-track. ASO covers free annual exam, frames, and contacts. Eye doctors also bill the medical plan for clinical or disease-related eye care. Both continue into retirement.

FSA — Use Every Dollar Before You Retire

⚠ The FSA Disappears On Your Last Day

The city's Flexible Spending Account is tied to active employment. It is gone the day you retire. The 2026 IRS limit is $3,300. Max your contribution during Open Enrollment in your final year of active service and spend every dollar before your retirement date — dental work, glasses, prescriptions, appointments, any deferred medical needs for you and your family. Pre-tax money. It does not carry over and cannot be refunded.

Dental Implants — One-Time Window

The EmblemHealth Preferred Premier plan covers one dental implant per tooth per lifetime with no annual dollar maximum. This benefit was announced specifically for active employees. Before you retire, call Local 831 (212-964-8900) and confirm whether this implant benefit carries into retirement under the retirees welfare fund. If you need implant work and it is active-only, getting it done before your last day could save thousands.

Local 831 · Union Benefit

The Annuity Fund —
What You Need to Know

The Local 831 annuity fund is a separate retirement benefit negotiated through your collective bargaining agreement. It is not part of your NYCERS pension. It is not the 457. It is its own account — and most workers don't think about it until they're about to retire.

What It Is

Tax-deferred retirement account

Funded through your union contract. Grows tax-deferred — you don't pay taxes on it until you withdraw.

Early Withdrawal

10% Penalty

If you withdraw before age 59½ you pay ordinary income tax on the full amount PLUS a 10% IRS early withdrawal penalty on top of it. Don't touch it early.

Rollover Option

IRA Rollover

When you separate from service you can roll the annuity fund directly into a traditional IRA with no taxes and no penalty — if done as a direct rollover. This keeps the money growing tax-deferred.

After Age 59½

No Penalty

Withdrawals after 59½ are taxed as ordinary income — no penalty. Required minimum distributions begin at age 73.

⚠ The Most Common Mistake

Workers cash out the annuity fund when they retire instead of rolling it over. The result: ordinary income tax on the full balance — potentially pushing you into a higher tax bracket that year — plus the 10% early withdrawal penalty if you're under 59½. On a $50,000 annuity balance that could mean $15,000–20,000 gone immediately. Roll it over to a traditional IRA instead. Talk to a tax professional before you touch it.

What to Do

1. Call Local 831 (212-964-8900) — Request your current annuity fund balance and ask about your distribution options when you separate from service.

2. Know your rollover options before you retire — A direct rollover to a traditional IRA is penalty-free and tax-deferred. An indirect rollover (check sent to you first) triggers mandatory 20% withholding and starts a 60-day clock. Get the direct rollover paperwork before your last day.

3. Talk to a tax professional — The right move depends on your age, your other retirement income, and your tax situation. The annuity fund is real money — treat it like it.

ℹ Confirm Current Terms With Local 831

Annuity fund contribution rates, payout structures, and specific plan terms are set through collective bargaining and can change with each contract. The rules above reflect standard IRS treatment of qualified annuity funds. Confirm your specific plan details directly with Local 831 at 212-964-8900 or usalocal831.com before making any withdrawal or rollover decision.

Cost of Living · Lifetime Impact

Escalation — Why 25 Years
Is the Real Finish Line

If you're SA-22, this is one of the most important retirement decisions you'll make — and the 2026 budget just made it sharper. You can now leave at 20 years with the full 50% benefit. But escalation, the cost-of-living protection that keeps your pension from being eaten by inflation, runs on a separate clock the budget did not touch. Full escalation still requires 25 years of credited service. Leave early and your pension is frozen for life.

SA-22 · Leave at 20–22 Years

No Escalation

The 2026 budget lets you leave at 20 with the full 50% benefit — but 20, 21, and 22 all fall more than three years before the 25-year escalation date. The pension is set and frozen for life. No inflation protection.

SA-22 · Commence 22–25 Years

Partial Escalation

Escalation is restored 1/36th for each month past the 22-year point. The closer to 25 you commence, the more you lock in.

SA-22 · Stay or Defer to 25 Years

Full Escalation

Pension grows at the lesser of 3% or CPI every year, for life. This compounds — over 30+ years of retirement the difference is large.

The Escalation Clock

Didn't Move

The 2026 budget changed when you can retire (RSSL §§501, 503, 505), not the escalation date. Full escalation is still tied to 25 years of credited service under RSSL §510.

The 20-Year Option Has a Catch

SA-22 was sold as the "22-year plan," and the 2026 budget just turned it into a 20-year plan for the full benefit. That's a real win. But escalation runs on its own clock the budget didn't touch. Leave at 20, 21, or 22 and your pension is frozen the day you walk — no cost-of-living protection, for the rest of your life. Full escalation still requires 25 years of credited service, with a partial ramp in the three years before. The earlier you take the new 20-year exit, the more lifetime inflation protection you give up. This is worth understanding years before you're standing at the door.

What to Do

1. Know your three dates. Mark your 20-year date (when you can leave with the full benefit), your 22-year date (when partial escalation starts), and your 25-year date (full escalation). The gap between 20 and 25 is the ramp from zero to full inflation protection.

2. Talk to NYCERS before deciding. Request a written benefit estimate that compares your pension at 20 years (full benefit, no escalation), between 22 and 25 (partial), and at 25 (full escalation). Call 347-643-3000.

3. Run the math on inflation. At 2.5% inflation, a pension frozen at $50,000 holds only about $24,000 of today's buying power 30 years into retirement. The same pension with full escalation keeps pace with the cost of living the whole way. That gap is the real price of taking the early exit.

4. Factor in life outside the pension. The 457, your annuity fund, and any side income all play into when you can actually afford to leave. The escalation question is only one piece of the bigger picture.

ℹ For SA-20 Workers — A Different System

SA-20 (Tier 4) workers are not on the same Escalation system. SA-20 receives the standard NYCERS Cost of Living Adjustment (COLA) at age 62, calculated as 50% of CPI applied to the lesser of $18,000 or your full pension. The COLA is meaningful but capped on a smaller base. SA-20 workers do not have the same 22 vs 25 year decision because their plan was designed differently. For specific COLA amounts and eligibility, contact NYCERS at 347-643-3000.

Sources: NYCERS Brochure #995 (SA-22), p.3-4 · RSSL §510 · Administrative Code of the City of New York §13-696 (COLA)

Disability · Survivors · Beyond Service Retirement

Other Benefits
Worth Knowing

Both SA-20 and SA-22 plans include benefits beyond service retirement. These are situations no worker hopes to face — but every worker should know they exist and roughly what they provide.

Disability Retirement

If you can no longer perform the job

Both plans offer Ordinary Disability and Accidental Disability benefits if you become physically or mentally incapacitated. SA-20 also offers a Three-Quarters Accidental Disability benefit at 75% of FAS for line-of-duty injuries. Eligibility, calculation, and approval all run through the NYCERS Medical Board.

Survivor Benefits

If you die before retirement

If you die in active service, your designated beneficiaries receive death benefits — typically three times your salary plus a refund of contributions plus interest. Sanitation workers also have a Special Accidental Death Benefit equal to 50% of wages (continuing to pay your full salary equivalent) for line-of-duty deaths.

Vested Retirement

If you leave before full retirement

If you have at least 5 years of credited service and leave the job before reaching full retirement, you can vest. Your benefit becomes payable on the date you would have completed your plan's full service requirement. That's 20 years for SA-20 — and now 20 years for SA-22 as well, since the 2026 budget moved its full-benefit mark from 22 to 20.

Beneficiary Designations

Update them regularly

Death benefits, annuity fund balances, and contribution refunds all flow to whoever is named as your beneficiary on file with NYCERS. Marriages, divorces, deaths in the family, new children — every life change is a reason to verify your beneficiaries are current.

ℹ For Your Specific Situation

This page gives a working overview. Disability calculations, survivor benefit amounts, vesting mechanics, and the specific differences between SA-20 and SA-22 in each of these areas vary by individual circumstance. Call NYCERS at 347-643-3000 and request a written explanation of your benefits.

Individual Market · After Retirement

The Three Gaps Your
Coverage Does Not Fill

With medical, dental, and vision all covered through Local 831, your remaining exposure is narrow. The city offers no supplemental insurance. These three gaps exist for every DSNY retiree regardless of tier or plan.

Gap	What It Covers	Why It Matters
Hospital Indemnity	Pays cash directly to you for each day of inpatient hospitalization — regardless of what the NYCE PPO covers. You use it however you need.	The NYCE PPO has deductibles and coinsurance. A serious hospitalization can leave significant out-of-pocket costs. Given the ongoing legal questions about the NYCE PPO, a cash buffer is practical. Buy individually — confirm the policy is individually purchased, not employer or payroll-only.
Critical Illness	Lump sum payout — typically $10,000–$25,000 — on diagnosis of cancer, heart attack, stroke, or other covered major illness. Cash paid directly to you.	No plan — city, union, or otherwise — covers the financial disruption of a serious diagnosis. Physical careers create real wear. The premium is lower when you are younger. Every year you wait, it costs more. Lock it in as early as you can.
Accident Insurance	Cash benefits for ER visits, ambulance, X-rays, fractures, surgery, and physical therapy from covered accidents.	Relevant for anyone with a physical career history and an active post-retirement life. Covers the out-of-pocket gap when something unexpected happens.

How to Get Covered

Get your own quotes at your age from Cigna, MetLife, or Aflac. The right amount of coverage depends on your situation and age. When shopping for hospital indemnity specifically, confirm the policy is individually purchased — not an employer or payroll-only group plan.

Do These Things

Action Steps by Plan

Everything in this guide comes down to a handful of calls and decisions. Here is exactly what to do based on your plan.

SA-20 Members (Hired before April 1, 2012)

Get a written benefit estimate from NYCERS

Call 347-643-3000. Ask for your service count (Allowable Sanitation Service if SA-20, Credited Service if SA-22) and a projected pension benefit at your target retirement date. Get it in writing. This is the most important document in your retirement plan.

Identify your FAS window

Pull W-2s for the last 5+ years. Find your 3 highest consecutive years. Compare to your last-3-years scenario. Know which is better before you file.

Confirm AMC account balance

Log into mynycers.org. You cannot retire with a deficit in your AMC account. Confirm the balance now.

Max and spend the FSA your final year

The FSA is gone when you retire. Max it in Open Enrollment your final year of active service. Spend every dollar before your retirement date.

Call Local 831 before you retire

Call 212-964-8900. Confirm dental implant benefit for retirees, vision continuity, and the full welfare fund coverage picture after retirement.

Verify NYCE PPO network

Confirm your doctors and any family members' specialists are in-network. The plan launched January 2026 and network details are still not fully transparent.

SA-22 Members (Hired April 1, 2012 or after)

Get a benefit estimate that includes the SS offset

Call NYCERS at 347-643-3000. Ask specifically for the estimate with the Social Security offset applied. Your gross percentage and your net benefit are not the same number.

Check your Social Security projected benefit

Go to ssa.gov/myaccount. Your projected SS benefit directly affects your SA-22 net pension calculation.

Track S4668 in Albany

The 20-year retirement was restored in the 2026 state budget — that one's done. S4668 is the bill that would remove the Social Security offset, and it's still in committee. Follow it through your union. Contact your state senator and assembly member and ask for their support.

Confirm your Credited Service count

If you're SA-22, full service retirement is now 20 years of Credited Service regardless of age (restored by the 2026 budget). If you're SA-20, it's 20 years of Allowable Sanitation Service. Get the official count from NYCERS in writing — and if a rep still quotes you 22 years, that's their system lagging the change, not a different rule.

Everyone

✓

Follow nycretirees.org

Subscribe to the mailing list. This organization has won multiple court battles protecting your healthcare in retirement. When they raise an alarm, pay attention.

✓

Support A7866 / S8388

These bills would give your retiree healthcare the same constitutional protection your pension has. Contact your state representatives and ask them to support it.

✓

Get supplemental coverage before you retire

Hospital indemnity, critical illness, and accident coverage fill the gaps your existing plans do not cover. Get quotes from Cigna, MetLife, or Aflac. The earlier you get critical illness coverage, the lower the premium.

NYCERS

347-643-3000

M–F, 8am–5pm · 340 Jay St, Mezz, Brooklyn
mynycers.org

Local 831

212-964-8900

25 Cliff Street, New York
Dental, vision, welfare fund
usalocal831.com

ASO Vision

asonet.com

NYC OLR

olr.nyc.gov

Office of Labor Relations
Plan enrollment and retiree documentation

nycretirees.org

Subscribe →

NYC Organization of Public Service Retirees
Founded by Marianne Lynda Carter Pizzitola

Social Security

ssa.gov/myaccount

SA-22 members: check your projected SS benefit — it directly affects your net pension

Primary Documents · Verify Anything

Sources

Every claim in this guide is grounded in primary documents. Below are the sources used to build it. Anyone can read the same materials and verify what's here.

NYCERS Publications

→ NYCERS Brochure #935 — Sanitation 20-Year Retirement Plan for Tier 4 Members (SA-20), September 2025
→ NYCERS Brochure #995 — Uniformed Sanitation Force 22-Year Retirement Plan (SA-22), August 2024
→ NYCERS Fact Sheet #720 — Tier 3 22-Year Plan general information
→ NYCERS Fact Sheet #728 — Sanitation Tier 3 22-Year Enhanced Disability Retirement Plan (SA-22E)
→ NYCERS Glossary of Terms

Statutes and Laws

→ New York State Retirement and Social Security Law (RSSL), Article 14 — Tier 3 framework
→ RSSL §510 — Escalation of benefits
→ RSSL §511 — Social Security offset
→ RSSL §605 and §605-b — Disability retirement provisions
→ Chapter 61 of the Laws of 2017 — SA-22E enhanced disability eligibility (added GML §209-ff)
→ Chapter 56 of the Laws of 2024 — Three-year FAS for Tier 3 modified plans (effective April 20, 2024)
→ FY2027 State Budget — A10008C, Part FFF — Restored 20-year service retirement (50% of FAS) for SA-22 and CF-22 revised-plan members; amends RSSL §§501, 503, 505. Signed 2026.
→ Administrative Code of the City of New York §13-696 — COLA

Pending Legislation

→ NY State Senate Bill S4668 (2025–2026) — Eliminates the SS offset for SA-22 sanitation and correction. Still in committee.
→ S6486 / S7414 — the standalone 20-year restoration bills. No longer pending: S6486 was vetoed in December 2025; the change was instead enacted through Part FFF of the FY2027 budget (above).

City and Press

→ NYCERS Combining Financial Statements, Fiscal Year ended June 30, 2025 — comptroller.nyc.gov
→ Mayor's Office Press Release — "Mayor Mamdani Releases Balanced Fiscal Year 2027 Preliminary Budget," February 17, 2026 — nyc.gov
→ NYC Comptroller Mark Levine — Comments on FY2027 Preliminary Budget — comptroller.nyc.gov
→ NY1 — "Mayor Mamdani floats delays to pension fund payments," April 23, 2026 — ny1.com

ℹ How to Use These Sources

If anything on this page contradicts the primary documents, the primary documents win. NYCERS publications and the underlying statutes are the authoritative source for your specific situation. This guide is a working translation — meant to make the dense legal language readable for working sanitation members. Always verify your own situation directly with NYCERS at 347-643-3000 before making retirement decisions.