Tag Archives: ERS Tier 6

NYSLRS’ Membership by Tier

NYSLRS, comprised of the Employees’ Retirement System (ERS) and Police and Fire Retirement System (PFRS), had 652,324 members as of March 31, 2017. Our members are State, local government and school district employees from across New York, including 617,143 in ERS and 35,181 in PFRS. Eighty-one percent of our members are active, which means they were on a public payroll as of March 31.

As new public employees come on board and more Tier 3 and 4 members reach retirement age, Tier 6 is expected to represent the majority of NYSLRS members in a few years.

Tier 6 includes members who joined NYSLRS since April 1, 2012. In just five years, they’ve grown to more than 174,000 members, making up 26.7 percent of total membership.

Here’s a look at our membership by Tier, as of March 31:
NYSLRS' Membership
Tier 1: NYSLRS’ oldest tier, whose members first joined the system before July 1, 1973 (July 31 for PFRS members). Tier 1 now represents only one half of 1 percent of our membership. There are only 54 Tier 1 PFRS members remaining.

Tier 2: With 29,186 members, Tier 2 represents 4.5 percent of membership. More than 87 percent of Tier 2 members are in PFRS.

Tier 3&4: Tiers 3 and 4, which have similar retirement plans, represented nearly 90 percent of membership just seven years ago. The 392,699 Tier 3 and 4 members now make up 60 percent of the total. (Note: There is no Tier 4 in PFRS.)

Tier 5: Tier 5 covers members who joined in a period of a little over two years (January 2010 through March 2012). With 53,118 members, Tier 5 now represents 8.1 percent of membership.

Tier 6: This tier covers both ERS and PFRS members who joined since April 1, 2012. Its ranks have grown by nearly 29 percent over the past year.

What to Know About ERS Tier 6

Employees’ Retirement System (ERS) members who join NYSLRS on or after April 1, 2012 are in Tier 6. There are currently 129,359 ERS Tier 6 members who make up 21.1 percent of ERS membership.

ERS Tier 6 Membership Milestones

ERS Tier 6 members need 10 years of service credit to be vested. That means they are eligible to receive a service retirement benefit as early as age 55. The full retirement benefit age is 63, but they can retire between 55 and 63, with a reduced benefit. Tier 6 correction officers, however, can retire with 25 years of service, regardless of age.
ERS Tier 6 benefits

The Final Average Salary (FAS) Calculation

A member’s final average salary is the average of the wages earned in the five highest consecutive years of employment. For ERS Tier 6 members, each year’s compensation used in the final average salary calculation is limited to no more than 10 percent above the average of the previous four years.

Tier 6 Service Retirement Benefit

Generally, the benefit is 1.66 percent of their final average salary for each year of service if the member retires with less than 20 years. If a member retires with 20 years of service, the benefit is 1.75 percent of their final average salary for each year of service, or 35 percent.

If a member retires with more than 20 years of service, they receive 35 percent for the first 20 years, plus 2 percent of their final average salary for each year of service over 20 years.

If you’re an ERS Tier 6 member, you can find out more about your benefits by reading one of the plan publications listed below: