Tag Archives: disability benefit

Member Milestones for ERS Tier 3 and 4

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Knowing your member milestones can help you plan for your retirement. Most Employees’ Retirement System (ERS) Tier 3 and Tier 4 members (unless they are in special retirement plans) retire under the Article 15 retirement plan. If you’re covered by this retirement plan, you have a set of member milestones that affect how your pension is calculated and how much you’ll receive at retirement.

ERS Tier 3 and 4 member milestones

Here are some important Tier 3 and 4 milestones:

  • With ten years of service credit, you would be eligible to 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.
  • Also 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.
  • With ten years of service credit, 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 five years of service credit. However, there would be reductions to your benefit if you retire before age 62 with less than 30 years of service credit.
  • You can retire with full benefits at age 62.
  • If you retire with less than 20 years of service credit, 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 of service credit, the benefit is 2 percent of your FAE for each year of service.
  • If you retire with more than 30 years of service credit, the benefit is 2 percent of your FAE for each year of service up to 30. For each year of service beyond 30, you will receive 1.5 percent of your FAE.

Note: The law limits the final average earnings of all members who joined on or after June 17, 1971. For example, for most members, if your earnings increase significantly during the years used in your FAE, it’s possible that some of those earnings may not be used toward your pension. The specific limits vary by tier. Visit our Final Average Earnings page for more information.

The amount of your pension also depends on several factors, including your years of service credit and your age when you retire. Read our blog post, Tier 3 & 4 Members: When Is The Right Time To Retire?, for information to consider. You can also estimate your pension in Retirement Online and enter different retirement dates to see how those choices would affect your benefit.

Planning for an Unplanned Retirement

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Retirement comes too soon for some people. Poor health, an injury, family situations, layoffs and other unforeseen circumstances could force you into an unplanned retirement.

unplanned retirement

You may already have a plan based on the date you would like to retire, but do you have a backup plan if that date comes a few years earlier than expected?

Know Your Benefits

As a NYSLRS member, you’re entitled to benefits that may help. Most vested members can begin collecting a lifetime pension as early as age 55, though your benefit may be permanently reduced if you retire before full retirement age. (Full retirement age for NYSLRS members is either 62 or 63, depending on your tier. Full retirement age for Social Security benefits depends on your year of birth.)

If you can no longer do your job because of a physical and mental condition, you may be eligible for a Social Security Disability, or a NYSLRS disability benefit if your disability is permanent.

You may also want to look into Workers’ Compensation if you are injured on the job or Unemployment Insurance if you have been laid off from a position.

Other Ways to Plan for the Unexpected

Doing your homework is important. The more you understand the potential benefits available to you, the better you can estimate your income if you are forced to retire early. Unfortunately, the numbers you come up with may not be enough when dealing with an unplanned retirement.

But one potential source of income can make a big difference: retirement savings. Your savings could help you get by until you are eligible to collect your NYSLRS pension or another retirement benefit. If you are not saving for retirement, consider starting now. And if you are saving, consider increasing your savings. It could become a lifeline if the unexpected happens.

New York State employees and some municipal employees can also save for retirement through the New York State Deferred Compensation Plan. Ask your employer if you are eligible.

For more information about the benefits offered by your NYSLRS retirement plan, visit our website to read your plan publication.

NYSLRS’ Disability Benefit: What You Should Know

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Meeting filing requirements and submitting medical documents are key

A disabling condition can happen to anyone at any time. As a member of the NYSLRS, you may be eligible for a disability retirement if you become disabled and unable to work.Applying for a NYSLRS Disability Benefit

Disability benefits are based on your tier and retirement plan. The eligibility and filing requirements can vary too. Most members with 10 or more years of service credit can apply for an ordinary (non-job-related) disability benefit, and in some circumstances, your employer can file for you. If you become disabled due to a job-related accident, there’s no minimum service required.

If you decide to file for a disability retirement, please remember to keep the following in mind:

Meet Our Filing Requirements

You can file your disability retirement application while:

  • You are still on your employer’s payroll, or
  • As soon as possible after you stop receiving your salary.

You can find a list of all the disability retirement applications on our website. You can also read about the filing requirements in your retirement plan publication.

Make Sure We Have Your Medical Documentation

If your application meets the filing requirements, we will request medical reports from the doctors and treatment facilities you listed on your application. We may also ask you to make an appointment, paid for by NYSLRS, with one or more independent medical examiners whose specialty relates to your disability.

A medical or administrative review board will then make a determination about your eligibility.

If you aren’t approved for a disability retirement, you may request an administrative hearing and redetermination within four months from the date of denial. This gives you an opportunity to provide more evidence to support your request for disability benefits.

Because of the multiple steps that can be involved in the process, these cases typically take longer than regular retirement cases. So, since it may take some time to process your application, we encourage you to file the application while you are still on the payroll. This can help minimize any financial hardship you may encounter during the time it takes to process your application.

For more information about the disability retirement process or how to file, read our publication, Life Changes: Applying for Disability Retirement (VO1802).