If you joined the Employees’ Retirement System (ERS) on or after January 1, 2010, but before April 1, 2012, you are a Tier 5 member. Let’s look at the ERS Tier 5 milestones you will reach over the course of your public service career and how they will affect your benefits.
Why Milestones Matter
As a NYSLRS member, you earn service credit for your paid public employment. Generally, one year of full-time work equals one year of service credit. As you earn service credit, you’ll reach career milestones that will make you eligible for certain benefits or for increases to your existing benefits. Understanding these milestones will help you plan for retirement.
Your ERS Tier 5 milestones and pension calculation depend on your retirement plan, so it is important to familiarize yourself with the details of your plan. Most ERS Tier 5 members are in the Article 15 retirement plan (named for a section of the New York State Retirement and Social Security Law). If you see Plan A15 listed in the ‘My Account Summary’ section of your Retirement Online account, you’re in this plan. For members not covered by the Article 15 retirement plan, visit our website to Find Your NYSLRS Retirement Plan Publication.
Important ERS Tier 5 Milestones
Here are some additional important milestones for Tier 5 members in the Article 15 retirement plan:
- With ten years of service credit, you can apply for a non-job-related disability benefit if you are permanently disabled and cannot perform your duties because of a physical or mental condition.
- With ten years of service credit, your beneficiaries may be eligible for an out-of-service death benefit if you leave public employment and die before retirement.
- Ten years also marks the point when you are no longer able to withdraw your membership and receive a refund of your contributions if you leave public employment.
- You are eligible to retire once you are age 55 and have at least five years of service credit. However, for most Tier 5 members, there would be reductions to your benefit if you retire before age 62.
- You can retire with full benefits at age 62.
- If you retire with less than 20 years of service, your pension will equal 1.66 percent of your final average earnings (FAE) for each year of service.
- If you retire with 20 to 30 years of service, your pension will equal 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.
Note: When you retire, your FAE will be based on the average of your three highest consecutive years of earnings. The law limits the FAE of all members who joined on or after June 17, 1971. Read our blog post, Calculating Your Final Average Earnings, for more information, including how your FAE will be calculated and limitations.
Most members can estimate their pension in Retirement Online. You can fine tune your estimate by entering your annual earnings and expected pay increases. You can also include any service credit you plan to purchase.
If you are Tier 5 and do 20 yrs at age 62 this would be 40%?
Yes, if you retire with 20 years of service at age 62, your pension will equal 2 percent of your final average earnings for each year of service, which would be 40 percent.
Most members can use Retirement Online to create a pension estimate based on the most up-to-date salary and service information we have on file. You can enter different retirement dates, beneficiaries and pension payment options to see how they affect your potential benefit.
How is unused annual leave used in retirement? There is not information about this in the newsletters. Can you make a segment about it.
For most members, your Final Average Earnings can include payment for up to 30 days lump sum vacation if it is based on the three years immediately before retirement and if you joined NYSLRS:
Find your retirement plan publication for information specific to your retirement plan, or, for account-specific information, you can call our customer service representatives at 866-805-0990. Press 2, then follow the prompts. You can also message them using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
Hi, Can I quite the work at 59 years old, then collect my pension later when I reach 62 years old? Thanks in advice.
Yes, there is no requirement for NYSLRS members to retire directly from public service.
If you have 5 or more years of service when you leave public employment, you are vested. That means you have earned enough service credit to qualify for a pension benefit once you meet the minimum age requirements established by your retirement plan.
If you leave public employment before you are eligible to retire, you can apply for and receive a pension benefit once you do reach retirement age. Your pension will be based on your salary and service while you were working for your NYSLRS employer.
Sign in to your Retirement Online account to see your total estimated service credit.
Most NYSLRS members can create their own pension estimates in minutes based on the most up-to-date account information we have on file for you. You can enter different retirement dates and beneficiaries to see how those choices would affect your benefit.
Get started in Retirement Online:
For questions about your specific situation, please call our customer service representatives at 866-805-0990. Press 2, then follow the prompts. You can also message them using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
if you were hired at 28 and work 30 years can you retire before 62 with out penalty
No. If you are a Tier 5 member in the Employees’ Retirement System and you retire between the ages of 55 and 62, your benefit will be reduced unless you are a uniformed court officer or peace officer employed by the Unified Court System and have at least 30 years of credit. The percentage of the benefit reduction is prorated based on your exact age at retirement.