If retired from a New York City agency, are the pension benefits subject to New York State taxes?

No; New York State exempts pension benefits or distributions to officers and employees of the federal government, New York state, and New York local governments from state, New York City, and Yonkers income taxes. According to New York’s Dept. of Taxation and Finance," The exemption applies regardless of the taxpayer’s age or the form of the benefits, and covers pension and annuity income received as the beneficiary of a deceased state employee."