When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on the date of your membership. This post looks at Tier 2 members of 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.
PFRS has five tiers. Almost half of PFRS members are in Tier 2, which began on July 31, 1973, and ended on June 30, 2009. Most are in special retirement plans that allow for retirement after 20 or 25 years, regardless of age, without penalty.
The special plans that cover most police officers and firefighters fall under Sections 384, 384(f), 384-d, and 384-e of Retirement and Social Security Law. You can sign in to Retirement Online to find your benefit plan, which is listed under ‘My Account Summary.’
Where to Find PFRS Tier 2 Information
Whether you’re in one of the retirement plans described in this post or another retirement plan, we encourage you to visit our website to find your NYSLRS retirement plan publication. It’s a comprehensive description of the benefits you’re entitled to receive as a PFRS member.
You can check your service credit total and estimate your pension using Retirement Online. Most members can use our online pension calculator to create an estimate based on the salary and service information NYSLRS has on file for them. You can enter different retirement dates to see how your choices would affect your potential benefit.
Members may not be able to use the Retirement Online calculator in certain circumstances, for example, if they have recently transferred a membership to NYSLRS, if they are a Tier 6 member with between five and ten years of service, or if they have worked for multiple employers and were covered by different retirement plans. These members can contact us to request an estimate or use the “Quick Calculator” on our website. The Quick Calculator generates estimates based on information you provide.
Service credit is one of the major factors in calculating your NYSLRS pension. You earn a year of service credit for each year of full-time employment with a participating employer. In some cases, you may also be able to request additional credit for past service, which could increase your pension amount.
You can request credit for past service if you:
Worked for a participating employer before joining NYSLRS;
Worked for a public employer that later participated in NYSLRS; or
Received an honorable discharge from active military duty.
In most cases, you have to pay to receive additional service credit. The sooner you purchase your credit, the less it will generally cost. You must apply for any additional service credit that you wish to receive before you retire. After you apply, we’ll determine whether you’re eligible for the credit and how much it would be.
Credit for Previous Public Employment
Additional service credit includes work for an employer who later joined NYSLRS, or for public employment before you became a NYSLRS member.
Example: You worked at the town library while going to school and, as a part-time employee, you chose not to join NYSLRS. When you graduated and took a full-time job at the Town Supervisor’s office, you were required to join. You can request credit for the part-time service at the library.
When you apply, you’ll be asked for the name of the employer and the approximate dates you worked there. We encourage you to submit any proof you may have of your previous service. We will also reach out to your former employer, but you may be able to expedite the process by providing payroll records such as W-2 forms or pay stubs to NYSLRS when you apply.
You must earn two years of service credit as a member before additional service can be credited to you.
Military Service Credit
If you served in the U.S. armed forces, you may be eligible to purchase credit toward your retirement for your military service, regardless of whether your military service was before or after you joined NYSLRS.
There are different sections of the law that allow credit for military service. The amount of military service credit you can receive, and the cost (if any), will vary depending on which section of the law allows the credit. Reserve and National Guard service may qualify if it’s considered active duty.
For certain military service, you must have five years of member service credit before you can apply.
How to Request Additional Service Credit
You can apply for additional service credit and military service credit in Retirement Online. Sign in to your account, scroll down to the ‘My Account Summary’ section of your Account Homepage and click the “Manage My Service Purchases” button, then click “Request Additional Service Credit.” If you are applying for military service credit, select “Article 20 Military” when asked for your employer.
There may be other ways to increase your retirement service credit. If you had a previous membership in a New York State public retirement system and it was terminated, you may be able to reinstate your membership. If you still have an active membership in another public retirement system, but you are no longer working for the employer that participates in that retirement system, you may be able to transfer that membership to NYSLRS.
A word of caution — there are certain situations where purchasing additional service credit will not increase your pension. For example, special retirement plans for police officers and firefighters allow retirement after 20 or 25 years of service regardless of age, but not all types of public employment count toward the 20 or 25 years in these plans. Contact us if you have questions.
For more information about purchasing additional credit:
When you joined the New York State and Local Retirement System (NYSLRS), you were assigned a tier based on the date of your membership. This post looks at Tier 5 members of the Employees’ Retirement System (ERS).
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.
ERS has six tiers. Anyone who joined from January 1, 2010 through March 31, 2012 is in Tier 5. There were 33,619 ERS Tier 5 members as of March 31, 2022, representing 5.2 percent of ERS membership.
Most ERS Tier 5 members (unless they are in special retirement plans) retire under the Article 15 retirement plan. Check out the graphic below for the basic retirement information for Tier 5 members in this plan.
If you retire with less than 20 years, the benefit is 1.66 percent of your final average earnings (FAE) for each year of service. If you retire with 20 to 30 years, the benefit is 2 percent of your FAE for each year of service. For each year of service beyond 30 years, you will receive 1.5 percent of your FAE. For example, with 35 years of service, you can retire at 62 with 67.5 percent of your FAE.
Where to Find More ERS Tier 5 Information
For more information about ERS Tier 5 membership, find your NYSLRS retirement plan publication. It’s a comprehensive description of the benefits provided by your specific plan.
You can check your service credit total and estimate your pension using Retirement Online. Most members can use our online pension calculator to create an estimate based on the salary and service information NYSLRS has on file for them. You can enter different retirement dates to see how your choices would affect your potential benefit.
Members may not be able to use the Retirement Online calculator in certain circumstances, for example, if they have recently transferred a membership to NYSLRS. These members can contact us to request an estimate or use the “Quick Calculator” on our website. The Quick Calculator generates estimates based on information you provide.
For information about other tiers, our series NYSLRS – One Tier at a Time gives you a quick look at the benefits for other tiers in both ERS and the Police and Fire Retirement System.
*Uniformed court officers or peace officers employed by the Unified Court System that have at least 30 years of credit may retire with a full benefit as early as age 55.
When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on the date of your membership. This post looks at Tier 6 members of the Employees’ Retirement System (ERS).
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.
ERS has six tiers. Anyone who joined ERS on or after April 1, 2012 is in Tier 6. There were 350,986 ERS Tier 6 members as of March 31, 2022. At 54 percent of membership, Tier 6 is the largest ERS tier.
Most ERS Tier 6 members (unless they are in special retirement plans) retire under the Article 15 retirement plan. Check out the graphic below for the basic retirement information for Tier 6 members in this plan.
If you retire with fewer than 20 years, the benefit is 1.66 percent of your final average earnings (FAE) for each year of service. If you retire with exactly 20 years of service, the benefit is 1.75 percent of your FAE for each year of service (35 percent of your FAE).
If you retire with more than 20 years of service, you’ll receive 35 percent for the first 20 years, plus 2 percent for each additional year. For example, with 35 years of service you can retire at age 63 with 65 percent of your FAE.
Where to Find More ERS Tier 6 Information
For more information about ERS Tier 6 membership, find your NYSLRS retirement plan publication. It’s a comprehensive description of the benefits provided by your specific plan.
You can check your service credit total and estimate your pension using Retirement Online. Most members can use our online pension calculator to create an estimate based on the salary and service information NYSLRS has on file for them. You can enter different retirement dates to see how your choices would affect your potential benefit.
Members may not be able to use the Retirement Online calculator in certain circumstances, for example, if they have recently transferred a membership to NYSLRS, or if they are a Tier 6 member with between five and ten years of service. These members can contact us to request an estimate or use the “Quick Calculator” on our website. The Quick Calculator generates estimates based on information you provide.
When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on the date of your membership. This post looks at Tier 6 members of 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.
PFRS has five tiers. Anyone who joined PFRS on or after April 1, 2012 is in Tier 6. There are 16,027 Tier 6 members, which accounts for more than 45 percent of PFRS membership, making it the second largest PFRS tier.
About Regular Plans and Special Plans
Under a regular retirement plan, you need to reach certain age and service requirements to receive your NYSLRS pension. If you’re covered by a special retirement plan, there is no age requirement, and you can receive your pension after completing 20 or 25 years of service.
Eighty percent of PFRS members are in plans covered under Sections 384, 384-d, 384-e or 384-f of the New York State 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.
Where to Find PFRS Tier 6 Information
For more information about PFRS Tier 6 membership, find your NYSLRS retirement plan publication. It’s a comprehensive description of the benefits provided by your specific plan.
You can check your service credit total and estimate your pension using Retirement Online. Most members can use our online pension calculator to create an estimate based on the salary and service information NYSLRS has on file for them. You can enter different retirement dates to see how your choices would affect your potential benefit.
As of April 9, 2022, Tier 5 and 6 members only need five years of service credit to be vested. Tier 5 members with five or more years of service can estimate their pension benefit in Retirement Online. If you are a Tier 6 member with between five and ten years of service credit, you can contact us to request a benefit estimate.
Whether you just joined or you’re a longtime member, you likely have questions about your NYSLRS membership. What is vesting? What are final average earnings? What tier are you in, and why does it even matter?
Basic Concepts of NYSLRS Membership
While NYSLRS administers many different retirement plans, the core concepts of our memberships are the same. Your pension will be calculated using a preset formula based on your earnings and years of service. To better understand 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. Generally, 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, because once you’re vested, you’re eligible for a NYSLRS pension when you reach retirement age, even if you leave public service.
Final Average Earnings.Final average earnings are the average of your earnings during the period when your pay is highest. It’s another major factor in determining the amount of your pension.
Your NYSLRS Pension and Other Benefits
As a NYSLRS member, you are part of a defined benefit retirement plan. This means your NYSLRS pension will be a lifetime benefit based on your final average earnings and service credit, not on the contributions you make toward your retirement.
Your NYSLRS membership also provides other important benefits, including:
We want to make sure you have the information you’ll need to plan for your retirement and make critical decisions about your future. Here are some resources available to you:
Your plan publication is an essential resource that you should consult throughout your career. It will help you plan for retirement and guide you when your retirement date draws near.
Reminder: you can use this tool to help you find your retirement plan publication.
Let’s explore the information you’ll find in your plan publication and what it means.
About Your Membership
This section has basic information about your membership, including your tier, contributions, when you will be eligible for a pension and how to withdraw your membership if you leave public employment.
Service Credit
Service credit is one of the main factors in determining your pension benefit amount. If you work full-time for the State or a participating municipal employer for 12 months, you’ll earn a year of service credit. If you work part-time, your service credit is prorated.
You’ll also find information about how your service credit is calculated, how to purchase credit for previous public employment or military service, how leaves of absence affect service credit, and how sick leave can be used for extra service credit at retirement.
Final Average Earnings
Final average earnings (FAE) are another major factor in determining the amount of your pension. Your FAE is the average earnings during the set of consecutive years (three or five years, depending on your tier and retirement plan) when your earnings were highest.
This section describes what types of payments are used in calculating your FAE and any limitations that may apply.
Service Retirement
Benefits
This section describes your retirement eligibility and how your benefit is calculated. If you have questions about how much your pension will be, you should read this section.
Choosing a Pension Payment
Option
You can choose from several options for the payment of your pension. Some payment options allow you to provide for your spouse or other beneficiary after you die in exchange for a reduction in your monthly payment. Consider each payment option carefully, as you’ll only have at most 30 days to change it after you retire.
Items That May Affect Your
Pension
This section describes factors that can change the amount of your pension. For example, if you retire with an outstanding loan, your pension will be permanently reduced. Also, if you get a divorce, your ex-spouse may be entitled to a portion of your benefit.
A cost-of-living adjustment (COLA), on the other hand, would increase your benefit once you become eligible.
Vested Retirement Benefits
If you leave public employment before retirement age but have met the minimum service requirement to receive a pension, you can apply for a vested retirement benefit when you become eligible.
Disability and Death
Benefits
Your NYSLRS benefits include more than a pension. If you are no longer able to perform your job because of a medical condition, you may be eligible for a disability retirement. If you die before retirement, your survivors may be eligible for a death benefit.
Receiving Your Benefits
Before you can receive your pension, you must file an application with the Office of the State Comptroller. This section describes the process of applying for your retirement benefits, including information about filing online.
(We know that’s two, but let us explain.) When you join the New York State and Local Retirement System (NYSLRS), you’re assigned a tier based on your date of 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 and gives you a quick look at the benefits in both ERS and PFRS. Today’s post looks at ERS Tiers 3 and 4. Of our current 650,251 ERS members, 263,561 are in Tiers 3 and 4, representing 40.5 percent of ERS membership.
Most ERS Tier 3 and Tier 4 members (unless they are in special retirement plans) retire under the Article 15 retirement plan. Check out the graphic below for the basic retirement information for Tiers 3 and 4 members in this plan.
Membership Milestones for ERS Tiers 3 and 4
ERS members in Tiers 3 or 4 need five years of service credit to become vested. Once vested, they’re eligible for a lifetime pension benefit as early as age 55. However, if they retire before the full retirement age of 62 with fewer than 30 years of service credit, their benefit will be reduced. Some Tier 3 and 4 members, such as sheriffs or correction officers, can retire with 20 or 25 years of service, regardless of age and without penalty.
You can check your service credit total and estimate your pension using Retirement Online. Most members can use our online pension calculator to create an estimate based on the salary and service information NYSLRS has on file for them. You can enter different retirement dates to see how your choices would affect your potential benefit.
For more information about Tier 3 and 4 membership, find your NYSLRS retirement plan publication. It’s a comprehensive description of the benefits provided by your specific plan.
Welcome new members to the New York State and Local Retirement System (NYSLRS).
What is NYSLRS? NYSLRS administers retirement benefits for New York State employees and municipal and non-teaching school district employees outside of New York City. With nearly 1.2 million members, retirees and beneficiaries, NYSLRS is one of the largest public retirement systems in the nation.
NYSLRS is here to help you plan a financially secure retirement. Retirement may seem like a distant concern, but decisions you make now will have a big impact on your post-work life. Here are a few things you should do now as a new member:
Checklist for New Members
Learn About Defined Benefit Plans
Your NYSLRS pension is a defined benefit plan. This means that, once you are eligible and apply for retirement, you are guaranteed a monthly pension payment for the rest of your life. The amount of your payments will be calculated using a formula set by State law.
Defined benefit plans should not be confused with 401(k)-style retirement savings plans, which are known as defined contribution plans. The value of these plans is limited to the contributions made to an individual’s account and the investment returns on those contributions. And, unlike your NYSLRS pension, these plans do not guarantee a lifetime benefit.
While a 401(k)-style retirement savings plan can supplement a pension and Social Security benefits, it does not provide the same level of financial security as a defined benefit plan.
Sign Up for Retirement Online
If you haven’t already, sign up for a Retirement Online account. You can use Retirement Online to look up your estimated total service credit, name a beneficiary for your death benefit, purchase past service credit and more. This online tool will be an important resource throughout your career, especially as you plan for retirement when you can use our benefit calculator to estimate your pension.
Find Your Retirement Plan Publication
Your retirement plan publication is an essential resource that provides comprehensive information about your NYSLRS benefits. You can look up your specific plan using our Find Your NYSLRS Retirement Plan Publication tool. All you need is your benefit plan code and Tier, which you can find in Retirement Online.
Your pension is only one part of a secure financial future. It’s a good idea to save additional money for retirement. Healthy retirement savings will give you more flexibility to do the things you want to do in retirement. They also can be a hedge against inflation and a source of cash in an emergency. You don’t want to wait to start saving; the sooner you do, the more time your money has to grow.
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
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.
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.
