Tag Archives: Membership Milestones

Retirement Planning: Know Your Membership Milestones

Even if your retirement is years in the future, you should be aware of certain membership milestones that may help you narrow down when to retire.

There are two types of membership milestones: those pertaining to age and those pertaining to service credit. Since most NYSLRS members reach service credit milestones first, we’ll start with them.

Service Credit Milestones

Vesting is a key retirement milestone. Once you become vested, you will be eligible for a NYSLRS pension even if you leave public employment before retirement. Members in Tiers 1-4 with at least five years of credited service are vested. (Most members in these tiers have already reached this milestone.) Tier 5 and 6 members must have ten years of credited service to be vested.

membership milestones - service credit

After reaching 20 years of service, most members will be eligible to have a higher percentage of their final average earnings included in their pension benefit. How that benefit is calculated depends on your retirement plan and tier. You can find more information in your retirement plan booklet.

Members in some special plans can retire with 20 years of service, regardless of their age. Other special plans allow for retirement after 25 years, regardless of age.

At 30 years of service, Tier 2-4 members who are at least 55 years old can retire without a pension reduction.

Age Milestones

Once you reach your full retirement age, you can retire without a pension reduction. For Tiers 2-5, the full retirement age is 62. The full retirement age for Tier 6 members is 63.

membership milestones - age

Members in regular retirement plans can retire as early as age 55, but they may face a pension reduction if they retire before their full retirement age. The closer you are to your full retirement age at retirement, the less the reduction will be.

If you would like to see what your pension would be at different ages, use Retirement Online’s pension benefit estimator.

More About NYSLRS Membership Milestones

For more information about NYSLRS milestones, please see:

ERS Tier 6

ERS Tier 6 Member Milestones

As an Employees’ Retirement System (ERS) Tier 6 member, your years of service are critical to your benefits. As time goes by, and you earn service credit, you’ll reach a number of career milestones. These milestones are points where you become eligible for certain benefits or your existing benefits improve. Understanding these milestones will help you better plan your career and retirement.

In ERS Tier 6, you reach your first milestone on your first day of membership. This milestone covers you for certain job-related death and disability benefits. (You can learn more about them in your Tier 6 retirement plan booklet.)

ERS Tier 6

10 & 20 Years Make a Big Difference

For all NYSLRS members, there is one critical milestone: becoming vested. Being vested means that you have earned the right to a pension, even if you leave public employment before retirement age. ERS Tier 6 members become vested after they earn 10 years of service credit.

For most ERS Tier 6 members, another big milestone is the 20-year mark, when your retirement benefit improves significantly. If you retire with less than 20 years of service, you earn 1.66 percent of your final average salary (FAS) for each year of service. At 20 years, you receive 35% of your FAS. After 20 years, you’ll earn an additional 2 percent of your FAS for each year of service beyond 20.

ERS Tier 6 Special Plans

For ERS Tier 6 members in special plans, such as corrections officers, many of the milestones are the same. For example, you will become vested with 10 years of service credit.

But there are also major differences. Most importantly, correction officers in the special 25-year plan can retire after 25 years regardless of age. You can find more information in your retirement plan booklet.

ERS Tier 5 Milestones

If you became an Employees’ Retirement System (ERS) Tier 5 member when the tier began in 2010, you’ve crossed one of many milestones in your public service career. You are now vested, which means you are guaranteed a NYSLRS pension even if you leave public employment at a later date.

So, what are milestones, and how do they affect NYSLRS members throughout their career?

Tier 5 milestones

Why Milestones Matter

As a NYSLRS member, you’ll cross a series of thresholds throughout your career. These member milestones occur when you earn a certain amount of service credit. Because these milestones affect how your pension will be calculated, a better understanding of them will help you plan for retirement.

You can find these milestones on the Membership Milestones page and in your retirement plan booklet. Most members ERS Tier 5 members will retire under the Article 15 retirement plan. (This booklet does not cover ERS Tier 5 members in special plans, such as deputy sheriffs and state corrections officers, but they can also find information on the Membership Milestones page.)

Major Milestones for Tier 5

The day you joined NYSLRS, you were automatically covered by certain job-related death and disability benefits. This is the first milestone for ERS Tier 5 members. After your first year of service, you became eligible to borrow from your retirement contributions, and after two years you became eligible to purchase credit for previous public service.

After becoming vested at ten years, the next big milestone is 20 years, when your retirement benefit improves. If you retire with less 20 years of service, your pension will equal 1.66 percent of your final average salary (FAS) for each year of service. But with 20 to 30 years of service credit, your benefit will equal 2 percent of your FAS, multiplied by your years of service.

For each year of service beyond 30 years, you will receive 1.5 percent of FAS.

Other Milestone Blogs

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 285,750 ERS Tier 6 members as of March 31, 2020, making up nearly 45 percent 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.

The Final Average Earnings (FAE) Calculation

An ERS Tier 6 member’s final average earnings 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 FAE for each year of service. If a member retires with exactly 20 years of service, the benefit is 1.75 percent of their FAE for each year of service (35 percent of the member’s FAE).

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 FAE.

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.