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New York City settles lawsuit over police pension benefits

NEW YORK (Reuters) - New York City has settled a lawsuit in which the federal government accused it of improperly reducing retirement benefits for current and former police officers who served in the military after September 11, 2001.

The settlement announced by Attorney Preet Bharara in Manhattan calls for pension benefits to be calculated in accordance with a 1994 federal law designed to protect the rights of civilian employees who are called to active duty.

The settlement requires court approval.

(Reporting by Jonathan Stempel; Editing by Carol Bishopric)

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