"20 & Out" Pensions

As a public safety officer, one of the most important benefits you earn is dignified retirement via your pension. While a 25-year career is typical in many places, some pension systems allow police officers and firefighters to retire after 20 years of service. However, these "20 and out" policies are often not without political controversy.

A bill moving through the state legislature in New Jersey would allow nearly all police officers and firefighters in the state's Police and Fireman's Retirement System (PFRS) to retire after 20 years with a reduced pension. Known as the "burnout bill," it addresses concerns about the physical and mental toll the job can take on first responders. Proponents of the bill argue that it will help attract and retain more police officers and firefighters, while opponents say it will strain the state's already underfunded pension system.

"20 and out" has been around in New Jersey, in one form or another, for many years. A 1999 law allowed police officers and firefighters with 20 years of service to retire at half their final compensation, regardless of their age. However, that was changed under then-Governor Chris Christie to anyone hired after January 2000 having to be at least 55 or have 25 years of service to be able to retire.

A 2021 law signed by Governor Phil Murphy, Christie's successor, allowed a two-year window for PFRS members to retire after 20 years of service, regardless of their pension system enrolment date or age, at 50% of their final compensation. The Jersey State Senate unanimously voted in March 2023 to make the "20 and out" benefit permanent, with the State Assembly approving it a few days later. The bill now goes to Governor Murphy's desk and is expected to be signed into law.

In Montana, lawmakers are considering changes to the state's pension system, including changes to that state's "20 and out" retirement benefit. The Montana Public Employees' Retirement Board has recommended reducing the annual cost-of-living adjustment for retirees and increasing employee contributions to the pension system. In addition, one proposed bill, HB 569, calls for newly hired members of the sheriff's and highway patrol retirement systems to work 20 years and reach 50 years old before retiring. However, lawmakers are still debating the proposed changes, and it is still being determined if any changes will be made.

In New York, the Police Benevolent Association (PBA) is fighting to overturn Governor Kathy Hochul's veto of a bill that would have expanded the "20 and out" retirement benefit to additional law enforcement officers.
Currently, environmental, park, and university police officers in New York State must work for at least 25 years to be eligible for retirement. The PBA has been pushing for nearly a decade to allow these officers to retire after 20 years, like other police officers in the state.

Governor Hochul stated in her video message that the legislation was more appropriate as something to be negotiated in the state budget. The PBA is concerned that the more than 1,100 environmental conservation officers, forest rangers, and park and university police officer positions across the state are losing officers faster than they can be replaced. They believe a consistent "20 and out" retirement benefit for all law enforcement positions would help make these jobs more appealing.

New Jersey, Montana, and New York developments highlight the ongoing debate surrounding "20 and out" retirement for police officers and firefighters. While some argue that it is a significant benefit that helps attract and retain public safety workers, others are concerned about the cost and sustainability of the pension system. As a police officer or firefighter, it's essential to stay informed about changes to the pension system in your state and to advocate for the benefits you've earned and deserve.