Federal investigators are accusing the city of miscalculating pension benefits for NYPD officers who also serve in the military.
A class action lawsuit alleges the city only uses the base pay to determine benefits while its officers are away on duty.
It says that overtime and night differential pay, both pensionable, should also be considered.
The lawsuit includes all officers who served since September 11, 2001.
In response, the city's law department says pension benefits for military members meet the standard of any other employee that goes on leave.