Tag Archives: Membership Milestones

What to Know About ERS Tier 6

Tier status is a major factor in determining your NYSLRS retirement benefits. Employees’ Retirement System (ERS) members who joined NYSLRS on or after April 1, 2012, are in Tier 6. They have plenty of company. There were 205,020 ERS Tier 6 members as of March 31, 2018, making up one-third of ERS membership.

ERS Tier 6 members contribute to the Retirement System based on their earnings, but the amount of their pensions will be determined by years of service and final average salary, not by the amount of their contributions.

ERS Tier 6 Membership Milestones

ERS Tier 6 members need ten years of service credit to become vested. Once vested, they’re eligible for a lifetime pension benefit as early as age 55, but if they retire before the full retirement age of 63, their benefit will be reduced. Tier 6 correction officers, however, can retire with 25 years of service, regardless of age, without penalty.

ERS Tier 6 Benefits

The Final Average Salary (FAS) Calculation

An ERS Tier 6 member’s final average salary is the average of their earnings in the five highest-paid consecutive years of employment. Earnings in any year included in the period cannot exceed the average earnings of the previous four years by more than 10 percent.

Tier 6 Service Retirement Benefit

Generally, if an ERS Tier 6 member retires with less than 20 years, the benefit is 1.66 percent of their final average salary for each year of service. If a member retires with exactly 20 years of service, the benefit is 1.75 percent of their final average salary for each year of service (35 percent of the member’s final average salary).

If a member retires with more than 20 years of service, they receive 35 percent for the first 20 years, plus 2 percent for each additional year. For example, a member with 35 years of service can retire at 63 with a pension worth 65 percent of their final average salary.

If you’re an ERS Tier 6 member, you can find out more about your benefits in one of these plan booklets:

Becoming Vested

What does it mean to be a vested NYSLRS member?

You become vested after you earn sufficient service credit to be eligible for a pension, even if you leave public employment before retirement. Becoming vested is a crucial milestone in your NYSLRS membership.

When Will I Be Vested?

The amount of service credit you need to be vested depends on your tier. If you’re in Tier 5 or 6, 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.

vesting requirements

If you work part-time, it will take you longer to become vested. For example, if you work half-time, you earn six months of credit toward vesting for each year on the job. (For more information, read our recent blog about part-time service credit.)

If you purchase credit for previous public service or military service, that credit can help you become vested.

What You Need to Do

Vesting is automatic. You do not need to file any paperwork to become vested.

If you are vested, you will need to file a retirement application at least 15, but no more than 90, days before you can receive a pension. Most NYSLRS members are eligible to collect a pension as early as age 55, but benefits may be permanently reduced if you retire before you reach your plan’s full retirement age.

Visit our website to learn more about vesting.

PFRS Membership Milestones

The Police and Fire Retirement System (PFRS) covers more than 35,000 police officers and firefighters across New York State.

As a PFRS member, you’ll pass a series of important milestones throughout your career. Knowing and understanding these milestones will help you better plan for your financial future.

Some milestones are common to most Police and Fire members; others are shared by members in a particular tier. For example, Tier 2 and 3 members must have five years of service credit to be vested (eligible for a pension benefit), while Tier 5 and 6 members need 10 years.

This graph shows common PFRS milestones:

Most PFRS members are in special plans that allow them to retire with full benefits, regardless of age, after 20 or 25 years of service. Your specific milestones, along with your pension calculation, are determined by your retirement plan, so it is important for you to familiarize yourself with the details of your own plan. You can find plan information on our Publications page. Not sure which one is yours? Your retirement plan is listed on your Member Annual Statement, which is provided to you each summer, or you can ask your employer.

What to Know About ERS Tier 5

Any Employees’ Retirement System (ERS) member who joined NYSLRS on or after January 1, 2010 but before April 1, 2012 is a member of Tier 5. There are currently 53,123 ERS Tier 5 members who make up 8.7 percent of ERS.

ERS Tier 5 Membership Milestones

As a Tier 5 member earns service credit over their career, they become eligible for certain benefits in their retirement plan. Here are some important milestones for Tier 5 members: 

ERS Tier 5 member milestones

ERS Tier 5 Contributions

Most Tier 5 members must contribute 3 percent of their salary for all their years of service, except Uniformed Court and Peace Officers employed by the Unified Court System, who must contribute 4 percent for all their years of public service. State Correction Officers contribute 3 percent for no more than 30 years.

With the exception of those retiring under special retirement plans, Tier 5 members must have 10 or more years of service to be vested (eligible for a retirement benefit). They can retire as early as age 55 with reduced benefits. The full benefit age for Tier 5 is 62.

The Final Average Salary (FAS) Calculation

The retirement benefit for Tier 5 members is 1.66 percent of their final average salary (FAS) for each year of service if the member retires with less than 20 years. FAS is the average of the wages earned in the three highest consecutive years of employment. For Tier 5 members, each year’s compensation used in the FAS calculation is limited to no more than 10 percent above the average of the previous two years.

If a Tier 5 member retires with between 20 and 30 years of service, the benefit is two percent of their FAS for each year of service. If a Tier 5 member retires with more than 30 years of service, the benefit is 1.5 percent of their FAS for each year of service over 30 years.

You can find out more info about Tier 5 retirement benefits on our website.

Retirement Milestones for ERS Tier 3 and 4 Members

Knowing your member milestones can help you plan ahead for your retirement. Most Employees’ Retirement System (ERS) Tier 3 and Tier 4 members (unless they retire under special retirement plans) retire under the Article 15 retirement plan. If you’re covered by this retirement plan, you have a set of milestones that affects how your pension benefit is calculated. This also means it affects how much you’ll receive at retirement.

Here are some important things to remember:

  • You are eligible to retire once you are age 55 and have five years of service credit. There may be reductions to your benefit if certain age requirements aren’t met.
  • You can retire with full benefits at age 62. However, if you are age 55 or older with 30 or more years of service credit, you can also retire with full benefits.
  • If you retire with less than 20 years of service credit, your benefit equals 1.66 percent of your final average salary (FAS) for each year of service.
  • If you retire and have 20 to 30 years of service credit, the benefit is 2 percent of your FAS for each year of service.
  • If you retire with more than 30 years of service credit, the benefit is 2 percent of your FAS for each year of service up to 30. For each year beyond 30, you will receive 1.5 percent of your FAS.

Retirement Milestones for ERS Tier 3 and 4 Members
Please visit our website for more information about ERS member milestones and retirement plans.