article 15 Archives - New York Retirement News (2023)

If you joined the Employees’ Retirement System (ERS) on or after April 1, 2012, you are a Tier 6 member. Let’s look at the milestones you will reach over the course of your public service career and how they will affect your benefits.

Why Milestones Matter

As a NYSLRS member, you earn service credit for your paid public employment. Generally, one year of full-time work equals one year of service credit. As you earn service credit, you’ll reach career milestones that will make you eligible for certain benefits or for improvements to your existing benefits. Understanding these milestones and when they occur will help you better plan your career and retirement.

Your milestones depend on your tier and your retirement plan. Most ERS Tier 6 members are in the Article 15 retirement plan (named for a section of the New York State Retirement and Social Security Law). If you see Plan A15 listed in the ‘My Account Summary’ section of your Retirement Online account or in your annual statement, you’re in this plan.

Major Milestones for Tier 6

Here are some important milestones for Tier 6 members in the Article 15 retirement plan:

• With ten years of service credit, you can apply for a non-job-related disability benefit if you are permanently disabled and cannot perform your duties because of a physical or mental condition.
• Withten years of service credit, your beneficiaries may be eligible for an out-of-service death benefit if you leave public employment and die before retirement.
• Ten years also marks the point when you are no longer able to withdraw your membership and receive a refund of your contributions if you leave public employment.
• You are eligible to retire once you are age 55 and have five years of service credit. However, for most Tier 6 members, there would be reductions to your benefit if you retire before age 63.
• You can retire with full benefits at age 63.
• If you retire with fewer than 20 years of service, your pension will equal 1.66 percent of your final average earnings (FAE) for each year of service.
• If you retire with more than 20 years of service, your benefit will equal 1.75 percent of your FAE for each year of service.
• Then, for each year of service beyond 20 years, you will receive an additional 2 percent of your FAE.

Note:The law limits the final average earnings of all members who joined on or after June 17, 1971. For example, for most members, if your earnings increase significantly during the years used in your FAE, it’s possible that some of those earnings may not be used toward your pension. The specific limits vary by tier. Visit ourFinal Average Earnings pagefor more information.

The amount of your pension also depends on several factors, including your years of service credit and your age when you retire. Most members can estimate your pension inRetirement Onlineand enter different retirement dates to see how those choices would affect your benefit. As of April 9, 2022,Tier 5 and 6 members only need five years of service credit to be vested. If you are a Tier 5 or 6 member with between five and ten years of service credit, you cancontact usto request a benefit estimate.

ERS Tier 6 Special Plans

Some public employees, such as corrections officers or deputy sheriffs, are in special retirement plans and can receive a pension after completing 20 or 25 years of service, regardless of age. If you are not in the Article 15 retirement plan described above, you should read your retirement plan publication to learn about your plan’s milestones.

OurFind Your NYSLRS Retirement Plan Publication tool can help. To use it, you just need to know your retirement plan code. You can find your code in the ‘My Account Summary’ section of yourRetirement Onlineaccount homepage or on the second page of your latest Member Annual Statement. You can also use the new tool to search for your plan publication by retirement system, tier and occupation type (uniformed or non-uniformed).

Tier 3 and 4 members in the Article 15 retirement plan qualify for retirement benefits after they’ve earned five years of credited service. Once you’re vested, you have a right to a NYSLRS retirement benefit — even if you leave public employment. Though your pension is guaranteed, the amount of your pension depends on several factors, including when you retire. Here is some information that can help you determine the right time to retire.

Three Reasons to Keep Working

1. Tier 3 and 4 members can claim their benefits as early as age 55, but they’ll face a significant penalty for early retirement – up to a 27 percent reduction in their pension. Early retirement reductions are prorated by month, so the penalty is reduced as you get closer to full retirement age. At 62, you can retire with full benefits. (Tier 3 and 4 Employees’ Retirement System (ERS) members who are in the Article 15 retirement plan and can retire between the ages of 55 and 62 without penalty once they have 30 years of service credit.)
2. Your final average earnings (FAE) are a significant factor in the calculation of your pension benefit. Since working longer usually means a higher FAE, continued public employment can increase your pension.
3. The other part of your retirement calculation is your service credit. More service credit can earn you a larger pension benefit, and, after 20 years, it also gets you a better pension formula. For Tier 3 and 4 members, if you retire with less than 20 years of service, the formula isFAE × 1.66% × years of service. Between 20 and 30 years, the formula becomes FAE × 2.00% × years of service. After 30 years of service, your pension benefit continues to increase at a rate of 1.5 percent of FAE for each year of service.

If You’re Not Working, Here’s Something to Consider

Everyone’s situation is unique. For example, if you’re vested and no longer work for a public employer, and you don’t think you will again, taking your pension at 55 might make sense. When you do the math, full benefits at age 62 will take 19 years to match the money you’d have received retiring at age 55 — even with the reduction.

An Online Tool to Help You Make Your Decision

Most members can use Retirement Online to estimate their pensions.

A Retirement Online estimate is based on the most up-to-date information we have on file for you. You can enter different retirement dates to see how those choices would affect your benefit, which could help you determine the right time to retire. When you’re done, you can print your pension estimate or save it for future reference.

If you are unable to use our online pension calculator, pleasecontact us to request a pension estimate.

This post has focused on Tier 3 and 4 members. To see how retirement age affects members in other tiers, visit our About Benefit Reductions page.

If you joined the Employees’ Retirement System (ERS) on or after January 1, 2010, but before April 1, 2012, you are a Tier 5 member. Let’s look at the milestones you will pass over the course of your public service career and how they will affect your benefits.

Why Milestones Matter

As a NYSLRS member, you earn service credit for your paid public employment. Generally, one year of full-time work equals one year of service credit. Certain amounts of service are milestones because they affect the benefits you receive and how your pension will be calculated. A better understanding of when they occur and how they change your benefits will help you plan for retirement.

Your milestones depend on your tier and your retirement plan. Most ERS Tier 5 members will retire under theArticle 15 retirement plan. Some ERS Tier 5 members, such as deputy sheriffs and state corrections officers, are in special plans. You can find information for the Article 15 plan and other Tier 5 plans in your NYSLRS retirement plan publication.

MajorMilestones for Tier 5

Here are some important milestones for Tier 5 members in the Article 15 retirement plan:

• With ten years of service credit, you can apply for a non-job-related disability benefit if you are permanently disabled and cannot perform your duties because of a physical or mental condition.
• Withten years of service credit, your beneficiaries may be eligible for an out-of-service death benefit if you leave public employment and die before retirement.
• Ten years also marks the point when you are no longer able to withdraw your membership and receive a refund of your contributions if you leave public employment.
• You are eligible to retire once you are age 55 and have five years of service credit. However, for most Tier 5 members, there would be reductions to your benefit if you retire before age 62.
• You can retire with full benefits at age 62.
• If you retire with fewer than 20 years of service, your pension will equal 1.66 percent of your final average earnings (FAE) for each year of service.
• With 20 to 30 years of service credit, your benefit will equal 2 percent of your FAE for each year of service.
• Then, for each year of service beyond 30 years, you will receive 1.5 percent of your FAE.

Note:The law limits the final average earnings of all members who joined on or after June 17, 1971. For example, for most members, if your earnings increase significantly during the years used in your FAE, it’s possible that some of those earnings may not be used toward your pension. The specific limits vary by tier. Visit ourFinal Average Earnings pagefor more information.

The amount of your pension also depends on several factors, including your years of service credit and your age when you retire. Most members can estimate your pension inRetirement Onlineand enter different retirement dates to see how those choices would affect your benefit. As of April 9, 2022,Tier 5 and 6 members only need five years of service credit to be vested. If you are a Tier 5 or 6 member with between five and ten years of service credit, you cancontact usto request a benefit estimate.