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 more 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.

Most ERS Tier 6 members are in the Article 15 retirement plan (Article 15 of the Retirement and Social Security Law [RSSL]). If you are not certain what retirement plan you are in, you can contact us or ask your employer. You can also find your retirement plan number in Retirement Online under ‘My Account Summary’ or in your member annual statement. Your plan number indicates the section of the RSSL the plan is based on. For example, Plan A15 indicates that you are covered by Article 15.

In this plan, 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 the Tier 6 Article 15 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 ten years of service credit.

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

ERS Tier 6 Special Plans

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

But there are also major differences. Most importantly, depending on their plan, members in special plans can retire after 20 or 25 years, regardless of age. You can find more information in your retirement plan booklet.

Where in New York are NYSLRS Retirees?

NYSLRS retirees tend to stay in New York, where their pensions are exempt from State and local income taxes. In fact, 79 percent of NYSLRS’ 496,628 retirees and beneficiaries lived in the State as of March 31, 2021. And more than half of them lived in just ten of New York’s 62 counties.

So where in New York do these retirees call home? Well, there are a lot of NYSLRS retirees and beneficiaries on Long Island. Suffolk and Nassau counties are home to nearly 63,000 recipients of NYSLRS retirement benefits, with annual pension payments exceeding $2.2 billion. But that shouldn’t be surprising. Suffolk and Nassau counties have the largest and third largest number of pension benefit recipients, respectively, of all the counties in the State outside of New York City by population. (The City, which has its own retirement systems for municipal employees, police and firefighters, had 23,655 residents who were NYSLRS retirees and beneficiaries.)

NYSLRS retirees in New York

Erie County, which includes Buffalo, ranked number two among counties in the number of NYSLRS retirees, with more than 32,000. Albany County, home to the State capital, ranked fourth with close to 20,000. Monroe, Westchester, Onondaga, Saratoga, Dutchess and Oneida counties round out the top ten.

All told, retirees and beneficiaries in the top ten counties received $6.2 billion in NYSLRS retirement benefits in 2020-2021.

Hamilton County had the fewest NYSLRS benefit recipients. But in this sparsely populated county in the heart of the Adirondacks, those 496 retirees represent nearly 10 percent of the county’s population. During fiscal year 2020-2021, $11 million in NYSLRS retirement benefits was paid to Hamilton County residents.

NYSLRS Retirees Across the Globe

Outside of New York, Florida remained the top choice for NYSLRS retirees, with 38,872 benefit recipients. North Carolina (9,695), New Jersey (8,078) and South Carolina (6,873) were also popular. There were 638 NYSLRS benefit recipients living outside the United States as of March 31, 2021.

NYSLRS – One Tier at a Time: ERS Tier 5

When you joined the New York State and Local Retirement System (NYSLRS), you were 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 State Law. 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 ERS Tier 5, which covers ERS members who joined from January 1, 2010 through March 31, 2012. There were 37,114 ERS Tier 5 members — 5.8 percent of all ERS members — as of March 31, 2021.

ERS Tier 5 Information

ERS Tier 5 Membership Milestones

ERS Tier 5 members need ten years of service credit to become vested, which means they’ll be eligible for a lifetime pension when they retire.

When a Tier 5 member can retire is based on whether they are in the regular retirement plan (Article 15) or a special plan. Most Tier 5 members are in the regular plan, which means they can retire as early as age 55, but if they retire before age 62, their benefit will be reduced.

Tier 5 members in special plans, such as sheriffs and correction officers, can retire with 20 or 25 years of service (depending on their retirement plan), regardless of age, without penalty.

See your plan booklet (listed below) for details.

The Final Average Earnings (FAE)

An ERS Tier 5 member’s final average earnings is the average of their earnings in the three highest-paid consecutive years of employment. Earnings in any year included in the period cannot exceed the average earnings of the previous two years by more than 10 percent.

Tier 5 Service Retirement Benefit

If an ERS Tier 5 member retires with less than 20 years, the benefit is 1.66 percent of their FAE for each year of service.

If a Tier 5 member in a regular plan retires with 20 to 30 years of service, the benefit is 2 percent of their FAE for each year of service. For each year of service beyond 30 years, they will receive 1.5 percent of their FAE. For example, a Tier 5 member with 35 years of service can retire at 62 with 67.5 percent of their FAE.

For Tier 5 members in special plans, the benefit is generally 50 percent of their FAE with 20 or 25 years of service, depending on their retirement plan.

Where to Find More Information

ERS Tier 5 members can find more details about their benefits in the publications listed below:

For benefit information about special plans for miscellaneous titles, please visit our Publications page. Stay tuned for more NYSLRS – One Tier at a Time posts.

A Snapshot of NYSLRS Retirees

NYSLRS was providing pension benefits to 496,628 retirees and beneficiaries as of March 31, 2021.

Nearly 79 percent of NYSLRS retirees and beneficiaries — some 391,454 — live right here in New York State, and they can be found in every county. The Capital District, for instance, is home to more than 63,000 retirees and beneficiaries, while more than 62,000 live on Long Island.

These New York retirees live in our communities, and their pension money flows right back into our neighborhoods. Retirees in New York pay local property and sales taxes, and their spending supports local businesses, stimulates the economy and generates thousands of jobs.

NYSLRS Retirees in the US

NYSLRS Retirees in the US

NYSLRS retirees can also be found in every state. Florida, not surprisingly, is the number two choice, with nearly 39,000 calling the Sunshine State home. North Carolina is third, with 9,695 retirees, followed by New Jersey, with 8,078. North Dakota has the fewest, with only 23 retirees and beneficiaries. Another 638 live outside the United States.

Learn More

Extensive information about our retirees and members, the Common Retirement Fund and Fund investments can be found in our latest Comprehensive Annual Financial Report. This report, published each fall, has a wealth of information about the Retirement System, its investments, strategies and financial position. It also provides details about NYSLRS’ 1.1 million members, retirees and beneficiaries.

Countdown to Retirement – 1-3 Months to Go

Congratulations! After years of hard work and planning, the big day is almost here. It’s time to file for retirement.

You must submit your service retirement application 15 to 90 days before your retirement date.

Countdown to Retirement – 1-3 Months to Go

Filing Online

Online filing offers a secure and convenient way to apply for a service retirement benefit. You can upload needed documents instead of having applications notarized and taking them to the post office. You can also check on the status of your application once you submit it through Retirement Online. To get started, sign in to your Retirement Online account, scroll to the ‘My Account Summary’ section and click the “Apply for Retirement” button.

From there, you’ll go through a series of screens where you’ll be able to:

  • Choose your retirement date;
  • Get an estimate of the pension payment options available to you;
  • Select a pension payment option and beneficiary;
  • Have federal taxes withheld;
  • Sign up for direct deposit; and
  • Upload required documents, such as proof of date of birth.

After you click the “Submit” button, do not close your browser until you receive a confirmation message saying your application has been successfully submitted.

Once you submit your application, you will see a summary page that will include all the information that you have submitted through Retirement Online. Review this information to be sure that your online application is complete and your chosen option benefit and beneficiary information are accurate. This is very important since there are specific deadlines for selecting or changing a pension option and beneficiary.

If you don’t have a Retirement Online account, you can sign up today.

Filing by Mail

If you prefer, you can submit a paper retirement application. Complete an Application for Service Retirement (RS6037) and mail it to NYSLRS. (Do not give your retirement application to your employer.) Your application must be signed, notarized, and received by NYSLRS. We recommend that you mail your application “certified mail, return receipt requested.”

If you have received a recent pension estimate and you know which pension payment option you want, you should include your pension payment option form when you mail your retirement application. If you have not received an estimate, we will send you one, along with an option form, after we receive your application, but you must select an option within the deadlines required by law.

If you file by mail, you must also send us the following documents:

 We cannot start paying benefits until we receive proof of your date of birth.

If you have questions about filing for your retirement benefits, you can schedule a pre-retirement telephone consultation. To make an appointment, call 1-866-805-0990 (or 518-474-7736 in the Albany, NY area), press 2, then follow the prompts.

Read the Rest of Our Countdown to Retirement Series

This is the final installment of our Countdown to Retirement series. Missed our earlier posts? Catch up with them here:

A Look Inside NYSLRS

NYSLRS provided pension benefits to 496,628 retirees and beneficiaries during the State fiscal year that ended on March 31. These benefits are paid out through the New York State Common Retirement Fund (the Fund).

State Comptroller Thomas P. DiNapoli is administrative head of NYSLRS and trustee of the Fund. Over the past century, the Fund has provided retirement security for generations of public employees in New York, and today it is widely recognized as one of the best-managed and best-funded public retirement funds in the nation.

A look inside NYSLRS

NYSLRS Membership                                                          

But NYSLRS is more than just the pension fund. The system had 675,519 members as of March 31. Here are some facts about our membership:

  • 501,890 active members (that is, members still on a public payroll) work for 2,967 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 48 percent of all Retirement System members are in Tier 6.
  • Nearly 54 percent of PFRS members are in Tier 2, while about 40 percent are in Tier 6.
  • In ERS, 48.6 percent of members are in Tier 6, while 45.2 percent are in Tiers 3 and 4.

NYSLRS Retirees and Beneficiaries

The average pension for an ERS retiree was $25,783 as of March 31, 2021; the average for a PFRS retiree was $56,695. But these pension payments don’t just benefit the System’s retirees and beneficiaries. Because 79 percent of our retirees and beneficiaries live in New York, most of the pension benefits stayed in the State. And that money supported local businesses, paid local taxes and generated economic development statewide.

Learn More About NYSLRS

Extensive information about our members and retirees, the Fund and Fund investments can be found in the 2021 Comprehensive Annual Financial Report. This report includes detailed information about the Fund’s investments, strategies and financial position. It also provides details about NYSLRS’ 1.1 million members, retirees and beneficiaries. For example, the report shows where retirees live across the State, across the nation and around the world.

NYSLRS – One Tier at a Time: ERS 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). 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 ERS Tier 6, which includes anyone who joined ERS since April 1, 2012. There were 311,469 ERS Tier 6 members as of March 31, 2021 making them the largest tier group in ERS.

ERS Tier 6

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.

Where to Find More ERS Tier 6 Information

ERS Tier 6 members can find more details about their benefits in the publications listed below:

For benefit information about special plans for other job titles, please visit our Publications page. Stay tuned for more NYSLRS – One Tier at a Time posts.

Crunching the Numbers: A Short Guide to Retirement Calculators

A good estimate of your post-retirement income is essential to retirement planning. But estimating your income becomes a little tricky when you need to calculate income from several sources. Fortunately, there are retirement calculators available to help you.

online calculators

NYSLRS Benefit Calculator

A good place to start is with the NYSLRS online benefit calculator. Most members can create a pension estimate in minutes using Retirement Online. A Retirement Online estimate is based on the most up-to-date account information we have on file for you. You can enter different retirement dates to see how those choices would affect your benefit.

Social Security Calculators

The Social Security Administration (SSA) hosts a variety of calculators that you may find helpful. The SSA’s Quick Calculator, which uses information you enter, provides a rough estimate of your Social Security benefit. The Retirement Estimator, which estimates your benefit based on your actual Social Security earnings record, is more refined, but you’ll need to enter your Social Security number and other personal information.  

You can also calculate when you will be eligible for full Social Security benefits and estimate your life expectancy.

Savings Calculators

If you are saving for retirement, a simple savings calculator can show you how your money can grow over the years. But simple calculators assume a fixed amount of savings each month. In reality, most people increase their retirement savings as their income grows. With more sophisticated calculators, like this 401k Retirement Calculator, you can account for salary increases over time. (Note: The 401k Retirement Calculator works with other types of retirement savings plans, including 457(b) plans like the ones offered by the New York State Deferred Compensation Plan.)

Savings Withdrawal Calculators

Savings withdrawal calculators like this one are designed to help determine how much savings remains after a series of withdrawals. These are especially helpful tools to use when trying to determine how long your retirement savings will last. Enter the starting amount, how much to withdraw and how often, and an expected final balance will be calculated.

While the calculators mentioned above are great planning tools for before and after retirement, remember that their results are only estimates.

Countdown to Retirement – 4-6 Months to Go

The countdown to retirement continues. Here are a couple of things you should do four-to-six months before your retirement date to make sure you stay on track.

Countdown to Retirement - 4-6 months to go

Locate Proof of Your Birth Date

Before NYSLRS can pay out any retirement benefits, we will need proof of your date of birth.

For most people, locating that proof is no big deal — a photocopy of your driver’s license will do. But if you don’t have proof of your birth date readily available, this is a good time to look for it or arrange to get a replacement. This is especially important if you need to write to an out-of-state registry or a foreign country for the necessary document.

If you intend to leave a lifetime pension benefit to a beneficiary after your death, we will need proof of their birth date as well.

In most cases, we will accept a photocopy of your proof of date of birth, and you can submit it when you apply for retirement online or by mail. If you mail us the original, we will return it to you.

Acceptable documents for proving your date of birth include your:

The National Center for Health Statistics’ website contains information for each state on where to write for your vital records.

Review Your Retirement Budget

In our Countdown to Retirement – 12 Months to Go blog post, we recommended that you calculate your retirement income and expenses. But circumstances can change in six months, so now is a good time to review your post-retirement budget and make any necessary adjustments. At this point, you may have a clearer picture of your retirement income or you may be aware of expenses that you didn’t consider earlier. A budget review will help ensure that you are still on track to retire on your terms.

If you missed it, be sure to read the first post in our series, Countdown to Retirement –  18 Months to Go. You’ll also want to keep an eye out for the final installment of this series.

The Police and Fire Retirement System

NYSLRS is actually two retirement systems: the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS).

PFRS, which provides retirement benefits for police officers and paid firefighters, is the smaller of the two systems, with about 32,000 active members. A third of PFRS members work for cities, while almost 19 percent work for New York State. The remainder work for towns, counties and villages.

There are five tiers in PFRS, reflecting when the members joined the system: Tiers 1, 2, 3, 5 and 6 (there is no Tier 4 in PFRS). Tier 2, which includes PFRS members who joined the Retirement System from July 31, 1973 through June 30, 2009, is the largest tier, accounting for almost 55 percent of PFRS membership.

If you joined PFRS on or after April 1, 2012, you are in Tier 6.

Ninety-eight percent of PFRS members are in special retirement plans that allow for retirement after 20 or 25 years of creditable service. If you are in one of these plans, once you have the full amount of required service, you can retire at any age.

Some PFRS members are in regular retirement plans, which require a member to reach a certain age before they are eligible for a pension.

police and fire infographic

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.

Service Credit

Service credit is a key in determining your eligibility for a pension and other benefits, including the amount of those benefits.

Under most 20- and 25-year plans, not all public employment is creditable. Usually, police and firefighting service can be counted as special-plan service. You may also be able to use military service to help you reach 20 or 25 years. If you have questions about the service that can be used to calculate your pension, please check your retirement plan booklet or contact us.

PFRS Plan Booklets

You can find details about your NYSLRS benefits in your retirement plan booklet.

For the majority of PFRS members, that’s the Special 20- and 25-Year Plans booklet. This booklet is for PFRS Tier 2, 3, 5 and 6 members covered by Sections 384, 384-d and 384-e of the State Retirement and Social Security Law.

If you are a PFRS member who works for New York State, your booklet is based on your specific job. There are separate booklets for State PoliceForest RangersRegional State Park PoliceState University Police and EnCon Police.

If you are not covered by one of the plan booklets listed above, you can find your booklet on our Publications page. 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.