Tag Archives: retirement age

NYSLRS Basics: Becoming Vested

What does it mean to be a vested NYSLRS member? If you’re vested, you’ve reached a major milestone in your membership. Being vested means that you’ve earned enough service credit to qualify for a pension benefit, even if you leave public employment. If you leave public employment after becoming vested, at a later date you can apply for and receive what we call a vested retirement benefit. The vested benefit is based on the service and salary earned when you were an active member with NYSLRS.

When Do I Become Vested?

The amount of service credit you need to be vested is based on what tier you’re in. If you’re a Tier 5 or 6 member, you need ten years of service to be vested. If you’re in another tier (Tier 1, 2, 3 or 4), you’re vested once you earn five years of service credit.

Applying for the Vested Benefit

For most vested members, if you leave the payroll before age 55, you’ll be eligible for a retirement benefit when you reach age 55. Tier 1 and Tier 2 members are eligible for a benefit on the first of the month following their 55th birthday. Tier 3, 4, 5 are eligible for a benefit on their 55th birthday. Employees’ Retirement System Tier 6 members are also eligible on their 55th birthday, but Police and Fire Retirement System Tier 6 members are eligible on their 63rd birthday.

Please note these are the earliest ages that you become eligible for the vested benefit. An early age reduction may apply under certain plans. Please review your retirement plan booklet to see if early age reductions apply.

Becoming Vested

Receiving your vested retirement benefit is not automatic. You must file a retirement application when you become eligible and wish to receive your benefit.

Visit our website to learn more about vesting.

Want to read more in our NYSLRS Basics series? Check out past posts on:

NYSLRS Basics: Final Average Salary

As a NYSLRS member, you have a defined-benefit retirement plan that provides a lifetime pension when you retire. Laws passed by the Legislature and signed by the Governor have established the formulas used to calculate these benefits. Your specific benefit will be based on two main factors: service credit and final average salary. You’re probably familiar with service credit — it’s generally the years of service you’ve spent working for a participating employer. But, what is a final average salary (FAS)?

When we calculate your pension, we find the set of years (one, three or five, depending on your tier and retirement plan) when your earnings were highest. The average of these earnings is your FAS. Usually your FAS is based on the years right before retirement, but they can come anytime in your career. In fact, the years used to calculate your FAS may not match up to a calendar year or even a fiscal year. For FAS purposes, a “year” is any period during which you earned one full-time year of service credit.

Types of Final Average SalaryNYSLRS Basics: Understanding your Final Average Salary

Your tier and plan determine how your FAS is calculated:

  • Three-year FAS: Members in Tier 1, 2, 3, 4, and 5.
  • Five-year FAS: Members in Tier 6.
  • One-year FAS: Members in the Police and Fire Retirement System (PFRS). Your employer must choose to offer this benefit. It’s not available to PFRS members covered by Article 14 and generally not available to PFRS Tier 6 members.

Exclusions and Limits

The law limits the FAS of all members who joined on or after June 17, 1971. For example, for most members, if your earnings increase significantly through the years used in your FAS, some of those earnings may not be used toward your pension. The specific limits vary by tier; check out your retirement plan booklet on our Publications page for details.

Since 2010, with the creation of Tiers 5 and 6, the Legislature and the Governor have introduced additional limits to the earnings that can be used toward the FAS:

Tier 5

  • Overtime pay is capped — $18,448.11 in calendar year 2017 and $19,001.55 in 2018.

Tier 6

  • Overtime pay is capped — $15,721 in fiscal year 2017 and $16,048 in 2018.
  • Lump sum vacation pay and wages from more than two employers are no longer included in your FAS.
  • Any earnings beyond the Governor’s salary — currently $179,000 — are left out of your FAS.

Find out more about how FAS are calculated on our website.

Want to read more NYSLRS Basics? Check out our posts on when you can retire and choosing your pension payment option.

Who Are Financial Planners?

When you’re preparing for retirement, you want to avoid costly mistakes. And while hiring an attorney or accountant may help, think about hiring a financial planner too. A financial planner can help you develop a practical plan to help you meet your retirement goals.

What Do Financial Planners Do?

Financial planners do not manage your money. According to the Financial Planning Association of Massachusetts, financial planners assess your current financial health. They examine your assets, liabilities, income, and more. They help you develop a realistic plan to meet your goals by looking at your financial weaknesses and strengths. With their help, you can put your plan into action and keep track of its progress. If your goals change over time, they can also help you adjust your plan.

Choosing a Financial Planner

Retirement-Savings_5-Rules-to-RememberIf a financial planner has a CFP next to his or her name, that means they are a certified financial planner. Certified financial planners have passed a national test given by the Certified Financial Planner Board of Standards. The certification test covers:

  • Insurance
  • Investments
  • Taxation
  • Employee benefits
  • Retirement and estate planning

Certified financial planners must also abide by a code of ethics.

Do Your Research

Choosing a financial planner is like hiring any other professional. Make sure you do your research so you can make a well-founded decision. While we can’t offer specific advice about hiring a financial planner, there are some things you should keep in mind:

  • Check credentials, educational background and experience.
  • Find out if he or she is a member of the Certified Financial Planner Board of Standards.
  • Get referrals from people you trust – ask friends, relatives and business associates.
  • And finally, don’t be afraid to ask questions:
    • Do they research the financial products they recommend?
    • Do they offer a free consultation?
    • Are they paid by fee, commission, or salary?

NYSLRS Basics: When Can You Retire?

There are core elements behind each NYSLRS retirement plan that every member should know. Knowing your retirement plan details like what your pension payment options are and how your final average salary (FAS) works is essential. Learning these NYSLRS Basics can give you a good foundation of information and help you prepare for retirement.

When Can I Retire?

This is a popular question we hear from members. Because of the large number of retirement plans we manage, there isn’t one single answer to this question, but we do have answers.

If you’re in a regular retirement plan (the vast majority of members are in regular plans), you can retire any time on or after your 55th birthday. However, some service credit requirements do apply:

  • Tier 1 members, depending on their plan, may need two or five years of service credit if they recently changed employers
  • Tier 2, 3, or 4 members need five or more years of service credit
  • Tier 5 and 6 members need ten or more years of service credit

Note: service credit is defined as the credit you receive for your paid public employment with a NYSLRS participating employer.

If you’re in a special retirement plan (most police officers, firefighters, sheriffs and correction officers are in special plans), you can retire at any age as long as you’ve met the service credit requirement for that plan. Special plan members can retire once they reach 20 or 25 years of service credit, whichever their plan requires.

Retiring at Age 55 vs. Full Retirement Age

Keep in mind that even though you could retire as early as 55, you may receive a benefit reduction* for not waiting until the full retirement age. (Visit our Early Age Reduction page to see the reductions for your tier.) Under NYSLRS regular retirement plans, you can retire with no reduction once you reach your full retirement age.Full_Benefit_Retirement_Age

It’s important to know that if you decide to retire with a reduced benefit, the reduction is permanent – it doesn’t end once you reach your full retirement age. Keep this in mind once you start preparing for retirement.

Knowing what your full retirement age is and when you’re first eligible to retire is just one part of the NYSLRS Basics series. Look out for a future post on retirement option selection.


*There are some exceptions: Tier 1 members can retire at age 55 without a benefit reduction; ERS Tier 2, 3 & 4 members and Tier 5 Uniformed Court Officers and Peace Officers employed by the Unified Court System can retire at age 55 with 30 or more years of service credit without a benefit reduction.

NYSLRS – One Tier at a Time: PFRS Tier 5

When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on the date of your membership. There are six tiers in the Employees’ Retirement System (ERS) and five in the Police and Fire Retirement System (PFRS). Each tier has a different benefit structure established by New York State legislation. Our series, NYSLRS — One Tier at a Time, walks through each tier to give you a quick look at the benefits in both ERS and PFRS.

Today’s final post in our series looks at Tier 5 in the Police and Fire Retirement System. Anyone who joined PFRS from January 9, 2010 through March 31, 2012­ is in Tier 5. There are 1,731 PFRS Tier 5 members as of March 31, 2015, making them the third largest tier group in PFRS.PFRS Tier 5If you’re a PFRS Tier 5 member, you can find your retirement plan publication from the list below for more detailed information about your benefits:

Want to learn more about the different NYSLRS retirement tiers? Check out some earlier posts in this series:

NYSLRS – One Tier at a Time: ERS Tier 6

When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on the date of your membership. There are six tiers in the Employees’ Retirement System (ERS) and five in the Police and Fire Retirement System (PFRS). Each tier has a different benefit structure established by New York State legislation. Our series, NYSLRS – One Tier at a Time, walks through each tier to give you a quick look at the benefits in both ERS and PFRS.

Today’s post looks at ERS Tier 6, which includes anyone who joined ERS since April 1, 2012. There were 166,532 ERS Tier 6 members as of March 31, 2017, making them the second largest tier group in ERS.

The graphic below illustrates basic retirement information for Tier 6 members.

ERS Tier 6

Where to Find More ERS Tier 6 Information

ERS Tier 6 members can find more details about their benefits in the publications listed below:

For benefit information about special plans for other job titles, please visit our Publications page.

Stay tuned for more NYSLRS – One Tier at a Time posts. Want to learn more about the different NYSLRS retirement tiers? Check out some earlier posts in the series:

NYSLRS – One Tier at a Time: ERS Tier 1

When you joined the New York State and Local Retirement System (NYSLRS), you were assigned to a tier based on the date of your membership. There are six tiers in the Employees’ Retirement System (ERS) and five in the Police and Fire Retirement System (PFRS) — so there are many different ways to determine benefits for our members. Our series, NYSLRS – One Tier at a Time, walks through each tier and gives you a quick look at the benefits members are eligible for before and at retirement.

One of our smallest tiers is ERS Tier 1, which represents 0.7 percent of NYSLRS’ total membership. Overall, there are 4,520 ERS Tier 1 members. Today’s post looks at the major Tier 1 retirement plan in ERS – the New Career Plan (Section 75-h or 75-i).
ERS-Tier-1-Benefits_001
If you’re an ERS Tier 1 member in an alternate plan, you can find your retirement plan publication below for more detailed information about your benefits:

Be on the lookout for more NYSLRS – One Tier at a Time posts. Want to learn more about the different NYSLRS retirement tiers? Check out some earlier posts in the series:

NYSLRS – One Tier at a Time: ERS Tier 2

When you joined the New York State and Local Retirement System (NYSLRS), you were assigned to a tier based on the date of your membership. There are six tiers in the Employees’ Retirement System (ERS) and five in the Police and Fire Retirement System (PFRS) – so there are many different ways to determine benefits for our members. Our series, NYSLRS – One Tier at a Time, walks through each tier and gives you a quick look at the benefits members are eligible for before and at retirement.

NYSLRS created Tier 2 on July 1, 1973, marking the first time NYSLRS created any new member group. Today’s post looks at one of the major Tier 2 retirement plans in ERS. ERS Tier 2 as a whole represents less than one percent of NYSLRS’ total membership.

ERS-Tier-2-Benefits_001aIf you’re an ERS Tier 2 member in an alternate plan, you can find your retirement plan publication below for more detailed information about your benefits:

Be on the lookout for more NYSLRS – One Tier at a Time posts. Next time, we’ll take a look at another ERS tier. Want to learn more about the different NYSLRS retirement tiers? Check out some earlier posts in the series:

NYSLRS – One Tier at a Time: PFRS Tier 1

When you joined the New York State and Local Retirement System (NYSLRS), you were assigned to a tier based on the date of your membership. There are six tiers in the Employees’ Retirement System (ERS) and five in the Police and Fire Retirement System (PFRS) – so there are many different ways to determine benefits for our members. Our series, NYSLRS – One Tier at a Time, walks through each tier and gives you a quick look at the benefits members are eligible for before and at retirement.

Today’s post looks at Tier 1 in the Police and Fire Retirement System, which has only 123 members. PFRS Tier 1 represents the smallest percentage – 0.4 percent – of NYSLRS’ total membership.

PFRS-Tier-1-Benefits_002

If you’re a PFRS Tier 1 member, you can find your retirement plan publication below for more detailed information about your benefits:

Be on the lookout for more NYSLRS – One Tier at a Time posts. Next time, we’ll take a look at another one of our ERS tiers. Want to learn more about the different NYSLRS retirement tiers? Check out some earlier posts in the series:

NYSLRS – One Tier at a Time: PFRS Tier 6

When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on the date of your membership. There are six tiers in the Employees’ Retirement System (ERS) and five in the Police and Fire Retirement System (PFRS). Each tier has a different benefit structure established by New York State legislation. Our series, NYSLRS – One Tier at a Time, walks through each tier to give you a quick look at the benefits in both ERS and PFRS.

Today’s post looks at Tier 6 in the Police and Fire Retirement System. Anyone who joined PFRS on or after April 1, 2012 is in Tier 6. PFRS Tier 6 members currently make up 8.4 percent of NYSLRS’ total membership, totaling 2,861 members, making it the second largest tier in PFRS.

Check out the graphic below for the basic retirement information for PFRS Tier 6 members.

PFRS-Tier-6-Benefits

Where to Find PFRS Tier 6 Information

If you’re a PFRS Tier 6 member, please find your retirement plan publication from the list below for more details about your benefits:

Please visit our Publications page for special plans under miscellaneous titles.

Stay tuned for more NYSLRS – One Tier at a Time posts. Next time, we’ll take a look at another ERS tier. Want to learn more about the different NYSLRS retirement tiers? Check out some earlier posts in the series: