Research
Tier 3 Pension Reform: A Capital-Markets Ranking of What Actually Matters
Across the prior three pieces, we evaluated the FDNY Tier 3 pension using the same framework capital markets apply to long-duration income streams: time, cash flow, and asset value.
FDNY Tier 3 Social Security Offset: The Structural Constraint
In the first piece, we quantified the Tier 3 pension change across three dimensions: time, cash flow, and asset value. That analysis focused on the floor of the pension — what a Tier 3 member is guaranteed at 20 years.
In the second piece, we examined the ceiling — escalation — how it is earned, why it matters economically, and what it is worth in present-value terms.
This final piece addresses the structural constraint on Tier 3 outcomes: the Social Security offset.
FDNY Tier 3 Escalation: Understanding the Real Ceiling
In the first piece, we quantified the Tier 3 pension change across three dimensions: time, cash flow, and asset value. That analysis focused on the floor of the pension — what a Tier 3 member is guaranteed at 20 years.
This piece addresses the ceiling of the Tier 3 pension.
Specifically, how escalation works, what is required to earn it, and how to think about its economic value using the same capital-markets lens.
To keep the analysis consistent, we continue to examine outcomes through the lens of a 52-year-old Tier 3 retiree, recognizing that individual results will vary.
The Tier 3 FDNY Pension Win: Quantifying the Time, Cash Flow, and Asset Value Impact
A capital-markets framework for understanding the most meaningful Tier 3 pension change in over a decade.
On December 19th, 2025, Governor Kathy Hochul signed SB4727 into law marking the most meaningful change to the FDNY Tier 3 pension system in over a decade. Stripped of politics and headlines, this legislation represents a structural improvement that can be quantified across three dimensions every Tier 3 member should understand:
NYS Audit Notices: What FDNY Retirees Need to Know
Over the past several weeks, there has been a noticeable increase in New York State audit notices issued to retirees regarding distributions from the Empower–Uniformed Fire Officers Association (UFOA) Annuity Plan. This development has understandably caused confusion and concern among retirees. While multiple factors may be contributing to this activity, two primary developments appear to explain the current increase in audit notices.
How to Read a Fact Sheet (FDNY Retiree Guide)
Fact sheets are short summaries of the investment options available in your retirement plan. They describe what a fund owns, its mix of stocks and bonds, and the expenses that come out of the investment option. Understanding Fact Sheets doesn’t require a finance degree—just knowing where to look.
Is It Worth Paying Empower’s Advisors in the UFOA Plan
Every firefighter knows the rule: before the tour starts, you check your gear and the rig and make sure everything is working the way it should. At Brave Eagle Wealth Management, we applied that same mindset to a portfolio built by an Empower advisor inside the UFOA Annuity Plan. Our analysis found that the portfolio—constructed from nearly every fund available in the plan—was redundant, costly, and confusing. It mixed multiple “one-stop” model portfolios that were never meant to be owned together and disclosed fees that appear inconsistent with the calculated costs of one of the plan’s one-stop model portfolios.
Is Private Equity Coming to Your Retirement Plans
Private equity and other private assets are making a push to be included in retirement plans alongside public securities investments. Empower, one of the largest retirement plan providers, recently announced that it will offer private investments inside of some retirement plans. Are private assets a good fit for retired FDNY?
Webinar: Roth IRA Conversions
Brave Eagle Wealth Management will be hosting an education webinar on Roth IRA conversions on July 22, 2025 at 1:00 pm.
Robert Ruggirello on Bloomberg TV
Robert Ruggirello was interviewed on Bloomberg TV. Robert discussed Nividia and other market topics.
VIDEO-Negative Taxable Income & Tax Planning for 3/4 Retirees
Brave Eagle Wealth Management has posted a new video to the website. FDNY & NYPD retirees should at least have a general understanding how federal taxes work. The Negative Taxable Income & 3/4 Retirees video is an educational (Case Study) video that highlights the importance of tax planning.
Video-FDNY NYPD Final Average Salary
Brave Eagle Wealth has posted a video to the website. The FDNY-NYPD final average salary video is an educational video that active members might find helpful.
The 10-Year Certain Beneficiary Option: A Misunderstood Gem for FDNY Retirees
When FDNY retirees receive their pension finalization letter, the 10-Year Certain option is listed as one of the seven beneficiary options available. Yet, surprisingly, it remains untouched. This article explores the 10-Year Certain Option, its unique features, and how it can address the needs of FDNY retirees seeking a balance between cost and security.
The Importance of Isolating Rolled Over Pension Money
At retirement, some FDNY & NYPD Tier 2 members elect to rollover pension money (excess/overage, VSF DROP, etc.) into an IRA. At Brave Eagle Wealth Management we isolate the client’s pension rollover money in its own IRA, no other retirement plan money (NYC Deferred Compensation Plan 457, 401k, etc.) is rolled into the pension money IRA.
One Billion Dollars of Hidden Losses in NYC DCP’s Stable Income Fund
The Stable Income Fund is a crowd favorite across NYC Deferred Compensation Plan account types. In aggregate, 29.5% of total plan assets were invested in the Stable Fund, or $7.7B (Billion) of $26.2B, at year end 2022. In stark contrast, the Bond Index Fund only holds about 4.4% of plan assets even though this AA rated Bond Fund was offering the highest prospective returns in over a decade.
Roth Conversions and Federal Tax Brackets
A Roth conversion is when a taxpayer decides to move (convert) pre-tax retirement funds (IRA, 457, 401k, etc.) to a Roth IRA. A Roth conversion must take place during a tax year and once it is complete it cannot be undone. The conversion results in taxes being owed, in most cases. There are no income limits to do a Roth conversion and there are no limits on the amount that can be converted.
The Superannuated – A Ladder Strategy to Protect the Pension
FDNY retirees generally can choose between two tools to protect (hedge) the value of their pensions:
1. Pension Beneficiary Option
2. Term Life Insurance
The beneficiary option is available to all retirees. The cost depends on the age of the pensioner and the age of the beneficiary. Life insurance is available to those that are healthy enough to qualify for it.
Terminal Leave Lump Sum Tax Deferral Failures
Some FD retirees receive their terminal leave lump sum check without any of the funds being tax deferred even though they requested a certain tax deferral percentage before they retired. Why does this happen?
No ITHP for Tier 3 and So What!
The ITHP has a strong fan base throughout the FDNY and with good reason. Over time participants have invested their capital and earned a strong rate of return with zero volatility.
Is This the Best Opportunity to Buy Stocks in the Last 30 Years?
The S&P 500 Index declined 19.44% in 2022, the third worst annual loss in the last thirty years. A rapid increase in interest rates, driven by inflation, contributed to the repricing of asset classes across the board.