Tag Archives: police and fire retirement system

NYSLRS Membership by Tier

NYSLRS, which administers the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS), had 685,450 members as of March 31, 2022. Our members are State government, local government, school district and other public-sector employees from across New York — 650,251 in ERS and 35,199 in PFRS. About 74 percent of our members were active, which means they were on a public payroll as of March 31.

NYSLRS Membership Over Time

A decade ago, more than 80 percent of NYSLRS members were in Tiers 3 and 4. Now, those tiers represent less than 40 percent of our membership. Tier 6, which includes members who joined NYSLRS since April 1, 2012, now has 367,013 members, or 53.5 percent of total membership.

NYSLRS Membership by Tier

Here’s a look at our NYSLRS membership by tier, as of March 31:

Tier 1: NYSLRS’ oldest tier, whose members first joined the system before July 1, 1973 (July 31, 1973, for PFRS members), is dwindling. Tier 1 represented only 0.2 percent of our membership. There were only 1,043 Tier 1 ERS members and 17 Tier 1 PFRS members.

Tier 2: With 18,074 members, Tier 2 represented 2.6 percent of membership. Ninety-four percent of Tier 2 members were in PFRS.

Tiers 3 & 4: Tiers 3 and 4, which have similar retirement plans, had 263,734 members, 38.5 percent of the total membership. Tiers 3 and 4 are primarily ERS tiers. There is no Tier 4 in PFRS, and only 173 PFRS members were in Tier 3.

Tier 5: Tier 5 covers members who joined from January 1, 2010, through March 31, 2012. With 35,569 members, Tier 5 represented 5.2 percent of membership.

Tier 6: This tier covers members who joined since April 1, 2012. Its ranks grew by about 13 percent during the last fiscal year.

Why Your Tier Matters

Your tier is an essential component of your NYSLRS membership because it is one of the factors that determines your benefits. You can find out more by reading your retirement plan booklet. Our recent blog posts explain how to find your plan booklet and how to get the most out of it.

Find Your Retirement Plan Publication

Your retirement plan publication is an essential resource that explains your NYSLRS benefits in detail — how long you’ll need to work to receive a pension, how your benefit is determined, what death and disability benefits may be available and more. You should consult it throughout your career, but it’s especially important to read as you prepare for retirement.

finding your retirement plan publication

Finding Your Retirement Plan Publication

NYSLRS administers two retirement systems, six membership tiers and many retirement plans that are described in dozens of retirement plan publications. We want to make sure you find the specific retirement plan information that pertains to you, which is why we have a new tool to help you Find Your NYSLRS Retirement Plan Publication. To use it, you just need to know your retirement plan code. You can find your code in the ‘My Account Summary’ section of your Retirement Online account homepage, or check the second page of your latest Member Annual Statement. You also can also use the new tool to search for your plan publication by retirement system, tier and occupation type (uniformed or non-uniformed).

Looking Up Your Plan Milestones

Once you have found your publication, check to see what minimum age or service milestones you’ll need to reach to receive your pension. Most retirement plans allow for full pension benefits at 62 (63 for Tier 6 members) or a reduced benefit starting at age 55. Members in some plans can apply for their pension once they reach 20 or 25 years of service credit, regardless of age.

The years of service credit you earn may also change the calculation of your pension. For example, the percentage of earnings used to determine your retirement benefit may increase once you reach certain milestones — such as when you have 20 years of credited service — but that depends on what retirement plan you are in.

Knowing your plan-specific age and service requirements can help you decide when to retire and anticipate the income your benefit would provide in retirement. If you want to work until a certain age or need to earn a specific amount of service, now you can set that goal and prepare accordingly.  

For more detailed information on what you can find in your plan publication, check out our blog post, How to Read Your Retirement Plan Booklet.

Help for New Members

New NYSLRS members may also be interested in our New Member webpage. This page collects several resources that can help you understand your NYSLRS membership and pension.

A Look Inside NYSLRS

NYSLRS provided pension benefits to more than 500,000 retirees and beneficiaries during the State fiscal year that ended on March 31. These benefits are provided by the New York State Common Retirement Fund (the Fund).

State Comptroller Thomas P. DiNapoli is administrative head of NYSLRS and trustee of the Fund. It is widely recognized as one of the best-managed and best-funded public retirement funds in the nation.

NYSLRS information

NYSLRS Membership                                                          

But NYSLRS is more than just the pension fund. The system serves more than 685,000 members as of March 31. Here are some facts about our membership:

  • 506,084 active members (that is, members still on the public payroll) work for 2,972 public employers statewide.
  • About one-third of those active members work for New York State. The rest work for counties, cities, towns, villages, school districts and public authorities.
  • Nearly 94 percent of total active members are in the Employees’ Retirement System (ERS). The Police and Fire Retirement System (PFRS) accounts for 6 percent of total active membership.
  • More than 50 percent of all Retirement System members are in Tier 6.
  • In ERS, 54 percent of members are in Tier 6, while 40.5 percent are in Tiers 3 and 4.
  • In PFRS, 45 percent of members are in Tier 6, while 48 percent are in Tier 2.

NYSLRS Retirees and Beneficiaries

The average pension for an ERS retiree was $26,467 as of March 31, 2022; the average for a PFRS retiree was $58,522. But these pension payments don’t just benefit the System’s retirees and beneficiaries. Seventy-nine percent of retirees and beneficiaries stay in New York and generate billions of dollars in economic activity across the state. Their spending supports local businesses, contributes to local taxes and creates jobs in our communities.

Learn More About NYSLRS

Extensive information about our members and retirees, the Fund and Fund investments can be found in the 2022 Annual Comprehensive Financial Report. This report includes detailed information about the Fund’s investments, strategies and financial position. It also provides details about NYSLRS’ 1.19 million members, retirees and beneficiaries.

PFRS Member Milestones

The Police and Fire Retirement System (PFRS) covers nearly 32,000 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 PFRS members; others are shared by members in a particular tier or retirement plan. For example, your plan determines when you would be eligible to apply for a non-job-related disability benefit.

A recent amendment to Retirement law changed a milestone for some members. As of April 9, 2022, Tier 5 and 6 members are now vested after earning five years of service credit. Previously, members in these tiers needed ten years of service to become vested. Being vested means you are entitled to a NYSLRS pension, even if you leave public employment before retirement age.

Member Milestones to Remember

PFRS member 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. If you are in a special plan, only certain job titles would give you creditable service toward a 20- or 25-year milestone. For example, if you are in the State Police plan, service with a city police department would be creditable, but service as a sheriff’s deputy or corrections officer would not be.

PFRS members in regular plans can retire as early as age 55, but may face a benefit reduction if they retire before their full retirement age.

Your specific milestones, along with your pension calculation, are determined by your retirement plan, so it is important to familiarize yourself with the details of your plan. You can find information about your milestones in your retirement plan booklet on our Publications page. Not sure which retirement booklet is yours? Your retirement plan is listed in your Retirement Online account or you can ask your employer. You can also read our recent blog post for tips on finding your plan booklet.

When Retirees Rejoin NYSLRS

The COVID-19 pandemic has prompted some NYSLRS retirees to return to work in the public sector. If you are one of these retirees, we want to make sure you know that the post-retirement earnings limit of $35,000 a year for retirees in a public sector job who are under age 65 has been suspended through much of 2020, 2021 and 2022 by executive order. Additionally, if you work for a school district or BOCES, legislation has suspended your earnings limit through June 30, 2023. Read more in our blog post, Update Regarding Retiree Earnings Limit During COVID-19 Emergency.

rejoin NYSLRS

Some retirees have considered ending their retirement to rejoin NYSLRS. While rejoining the Retirement System is an option, you should understand how this decision could affect your pension benefits.

Rejoining NYSLRS may increase your total service credit, allowing you to reach certain milestones that would increase your pension. An increase in earnings could also result in a higher pension. However, depending how long you work after rejoining, your new pension may not be higher than your original amount.

Note: This post applies to service retirees of the Employees’ Retirement System (ERS) or the Police and Fire Retirement System (PFRS) who are rejoining the same system. Different rules may apply to retirees of other retirement systems, retirees joining a system other than the one they retired from, and disability retirees.

What Happens to Your Pension When You Rejoin NYSLRS?

If you rejoin NYSLRS, your pension will be suspended. If you are in Tiers 2 through 6, and you earn less than two years of new service credit after you rejoin, your original pension would be reinstated when you retire the second time. Any new service credit and earnings would not affect your pension. (Tier 1 members would receive an additional benefit even if they earn less than two years of service in their new membership.)

If you earn two or more years of new service, you can either receive your original pension or you can receive a recalculated benefit that includes your additional service. If you choose the recalculated benefit, you would have to repay the entire pension amount you have already received, plus interest. (The pension amount you repay would be based on the Single Life Allowance rate.) You may repay that amount in a lump sum or by installments before you retire again — or request a permanent reduction to your new pension.

Other Factors

Here are other things to consider before you rejoin NYSLRS:

  • When you retire again, your new retirement date can delay your eligibility for cost-of-living adjustments (COLAs).
  • If you are in Tier 1 or 2, rejoining may affect your death benefit.

Where to Go for Help

If you are seriously considering rejoining NYSLRS, we strongly recommend you speak with a customer service representative to discuss how rejoining would affect your benefits. You can call them at 1-866-805-0990 or email them using our secure contact form.

You may also wish to read our publication Life Changes: What If I Work After Retirement?

NYSLRS Basics: Special Beneficiary Designations

What makes special beneficiary designations so special?

As a NYSLRS member, it’s important for you to name beneficiaries. Your beneficiaries may be eligible to receive a death benefit upon your death.

You can choose anyone you wish to receive your death benefit; it does not have to be a family member. In fact, it doesn’t even have to be a person. You can name your estate, a charity or a trust.

But before we talk more about these special beneficiary designations, let’s quickly go over the two main types of beneficiaries. These are important to know as some special designations may affect who you can designate.

About Primary and Contingent Beneficiaries

A primary beneficiary is someone you choose to receive your benefit if you die. A contingent beneficiary would only receive the benefit if the primary beneficiary dies before you. If a beneficiary dies before you, you should update your beneficiary information to ensure that your benefit is distributed according to your wishes.

As a reminder, Retirement Online is the convenient and secure way to view and update your beneficiaries. If you don’t already have an online account, you can learn more on our website.

About Special Beneficiary Designations

Here are some examples of special beneficiary designations and the rules for each one:

special beneficiary designations

Estates

You may name your estate as the primary or contingent beneficiary of your death benefit. If you name your estate as your primary beneficiary, you cannot name a contingent. If a benefit is payable, the executor of your estate will distribute it according to the terms of your will.

Trusts

If you have executed a trust agreement or provided for a trust in your will, your trust can be your primary or contingent beneficiary. To name a trust, sign in to Retirement Online or use our Trust with Contingent Beneficiaries form (RS5127-T). We’ll need a copy of your trust document, which you can mail to NYSLRS or upload using Retirement Online.

With this type of designation, the trust is the beneficiary, not the individuals who will receive the trust. If you revoke the trust or it expires, you will want to make new beneficiary designations as soon as possible to ensure benefits are paid according to your wishes.

You should talk to an attorney if you’d like more information on trust agreements.

Entities

You may name any charitable, civic, religious, educational or health-related organization as a primary or contingent beneficiary. Be sure to include the organization’s full name and address in your designation.

Minor Children

If your beneficiary is under age 18 at the time of your death, your benefit will be paid to the child’s court-appointed guardian. You may instead choose a custodian to receive the benefit on the child’s behalf under the Uniform Transfers to Minors Act (UTMA). Custodians can be designated in Retirement Online. Before making this type of designation, please contact us for more information.

More Information

Please note that some of these beneficiary designations will be subject to a NYSLRS legal review.

For more information, please read our publication “Why Should I Designate a Beneficiary?” You can find your current NYSLRS beneficiaries listed in Retirement Online, or in your most recent Member Annual Statement.

NYSLRS Membership Basics

Whether you’re a new member or have been part of the Retirement System for years, you’re sure to have questions about your NYSLRS membership. What is vesting? Final average earnings? Maybe you’re wondering what tier you’re in or why that even matters. While NYSLRS administers many different retirement plans, the core concepts of a NYSLRS membership remain the same. Here are the basics.

Your NYSLRS Membership Basics

Four Things to Understand About Your NYSLRS Membership

When learning about your NYSLRS benefits, you should become familiar with these four basic concepts:

  • Tier. Your tier is based on the date you joined NYSLRS and helps determine the benefits available to you. If you’re a new NYSLRS member, you’re likely in Tier 6. Tier 6 members joined NYSLRS on or after April 1, 2012.
  • Service Credit. You earn a year of service credit for each year you work for a participating NYSLRS employer. Part-time work is prorated. Your total service credit at retirement is a major factor in determining the amount of your pension.
  • Vesting. You become vested after you earn five years of service credit. It’s a significant milestone to reach because once you become vested, you’ll be eligible for a NYSLRS pension when you reach retirement age, even if you leave public service.
  • Final Average Earnings. Final average earnings is the average of your earnings during a period when your pay is highest. It’s another major factor in determining the amount of your pension.

Once you understand these basics, it can make learning more about your NYSLRS membership and benefits easier and help you get ahead on your retirement planning.

Your NYSLRS Pension and Other Benefits

Being a NYSLRS member means you are part of a defined benefit retirement plan. This means your NYSLRS pension will be a lifetime benefit, and it will be based on your final average earnings and service credit, not the contributions you make toward your retirement.

NYSLRS also provides other important benefits for its members, including:

Where to Get More Information

We want to provide you with the information you’ll need to plan for your retirement and make critical decisions about your future. Here are the resources available to you:

Retirement Online is the quickest way to access account information such as your tier, retirement plan and estimated total service credit. Sign up for a Retirement Online account if you don’t already have one.

If you have questions about your NYSLRS membership or benefits, you can find answers on our NYSLRS website. You can find different webpages, such as our Understanding Your NYSLRS Benefits page, that explain what benefits and services are available to you. Reading your retirement plan publication is a great way to get a comprehensive understanding of your benefits. Go to our Publications page to find your retirement plan and other helpful information.

If you have questions about your account or your NYSLRS benefits, please email us using our secure contact form.

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 post looks at PFRS Tier 5. Anyone who joined PFRS from January 9, 2010 through March 31, 2012 is in Tier 5. There were 1,967 PFRS Tier 5 members as of March 31, 2021, making up 5.6 percent of PFRS membership.

About Special Plans

Under a regular plan, you need to reach certain age and service requirements to receive your NYSLRS pension. If you’re covered by a special plan, there is no age requirement, and you can receive your pension after completing 20 or 25 years of service.

Nearly 80 percent of PFRS members are in plans covered under Sections 384, 384-d, 384-e or 384-f of the Retirement and Social Security Law. Read our Police and Fire Retirement System blog post for information about different PFRS plans.

Check out the graphic below for the basic retirement information for PFRS Tier 5.

PFRS Tier 5

If you’re a PFRS Tier 5 member, you can find detailed information about your benefits in the retirement plan booklets listed below:

For special plans under miscellaneous titles, please visit our Publications page.

Check out other posts in the PFRS 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). Your tier determines such things as your eligibility for benefits, the calculation of those benefits, death benefit coverage and whether you need to contribute toward your benefits.

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 PFRS Tier 6. Anyone who joined PFRS on or after April 1, 2012 is in Tier 6. Tier 6 members currently make up almost 40 percent of PFRS membership, totaling 13,956 members, making it the second largest tier in PFRS.

About Regular Plans and Special Plans

Under a regular plan, you need to reach certain age and service requirements to receive your NYSLRS pension. If you’re covered by a special plan, there is no age requirement, and you can receive your pension after completing 20 or 25 years of service.

Nearly 80 percent of PFRS members are in plans covered under Sections 384, 384-d, 384-e or 384-f of the Retirement and Social Security Law. Read our Police and Fire Retirement System blog post for information about different PFRS plans.

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

PFRS Tier 6

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. If you’re not sure what retirement plan you’re in, you can find that information in the My Account Summary section of your Retirement Online account. You can also check your Member Annual Statement, ask your employer or email us using our secure contact form.

For special plans under miscellaneous titles, please visit our Publications page. Check out other posts in the PFRS series:

Overtime Limits for Tier 5 and 6 Members

The formula used to calculate a NYSLRS pension varies by tier and plan, but your credited service and final average earnings (FAE) are the main factors. You earn service credit for paid service with participating employers, and you also may purchase credit for previous public employment. Your FAE is the average wage you earned during the period when your earnings were highest (36 consecutive months for Tier 5 and 60 consecutive months for Tier 6).

Your FAE can include overtime pay you earn during that period, but for Tier 5 and 6 members there are limits to how much overtime can be used to calculate your pension.

You can still earn overtime pay beyond the limit — it just won’t be used in your FAE. Members also aren’t required to make contributions on overtime pay that is above the limit.

Overtime Limits for Tier 5 and 6 Members

Tier 5 Overtime Limits

The overtime limit for Tier 5 Employees’ Retirement System (ERS) members increases each calendar year by 3 percent. In 2022, the limit for Tier 5 ERS members is $21,386.41.

For Tier 5 Police and Fire Retirement System (PFRS) members, the overtime limit is 15 percent of your regular earnings each calendar year.

Tier 6 Overtime Limits

The overtime limit for Tier 6 ERS members increases each calendar year based on the annual increase of the Consumer Price Index (CPI). In 2022, the limit for Tier 6 ERS members is $18,233.

For Tier 6 PFRS members, the overtime limit is 15 percent of your regular earnings each calendar year.

Learn More

Find more information about the overtime limit, FAE and retirement calculations in your retirement plan booklet, available on our Publications page.