Tag Archives: FAE

ERS Tier 3 and 4 Milestones

When you join the Employees’ Retirement System (ERS), you are assigned a tier based on your date of membership. You are in:

Tier 3 if you joined July 27, 1976 through August 31, 1983.
Tier 4 if you joined September 1, 1983 through December 31, 2009.

Let’s look at the ERS Tier 3 and 4 milestones and how they 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 can help you plan for retirement.

Your ERS Tier 3 and 4 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 3 and 4 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 3 and 4 Milestones

Here are some additional important milestones for Tier 3 and 4 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 five years of service credit. However, for most Tier 3 and 4 members, 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, 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.

ERS Tier 5 Milestones

Why Milestones Matter

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.

PFRS Milestones

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The Police and Fire Retirement System (PFRS) covers more than 35,000 police officers and firefighters across New York State. Let’s look at the PFRS milestones you will reach over the course of your public service career and how they will affect your benefits.

Why Milestones Matter

Some milestones are common to most PFRS members; others are shared by members in a particular tier or retirement plan. For example, your plan determines when you would be eligible to apply for a non-job-related disability benefit. Understanding these milestones will help you plan for retirement.

Important PFRS Milestones

Special Retirement Plans

Most PFRS members are in special retirement plans, which allow you to retire after 20 or 25 years of service regardless of age.

If you retire at your 20- or 25-year milestone, your pension will be 50 percent of your final average earnings (FAE). Depending on your retirement plan, you may earn 1.66 percent of your FAE for each year you work beyond the 20 or 25 years, however for most PFRS members, a maximum of 32 years of service can be used in your pension calculation.

Final Average Earnings

A new law improves your pension benefits. When you retire, your FAE will be based on the average of your three highest consecutive years of earnings, the same as members in other tiers. Read our blog post, Calculating Your Final Average Earnings, for more information, including how your FAE will be calculated and limitations.

Eligible Service

PFRS members in special plans should be aware that not all public employment counts towards reaching the 20- or 25-year milestone. Service usually must be in specific job titles to be creditable toward your pension benefit. For example, if you are in the New York State Police Plan, service with a city police department would be creditable, but service as a sheriff’s deputy or corrections officer would not be. PFRS members may be eligible to purchase credit for military service to reach 20 or 25 years.

More Information About Your Benefits

Your specific PFRS milestones, along with your eligible service and pension calculation, are determined by your retirement plan, so it is important to familiarize yourself with the details of your plan. You can visit our website to Find Your NYSLRS Retirement Plan Publication.

ERS Tier 6 Milestones

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If you joined the Employees’ Retirement System (ERS) on or after April 1, 2012, you are a Tier 6 member. Let’s look at the ERS Tier 6 milestones you will reach over the course of your public service career and how they will affect your benefits.

Why Milestones Matter

Your ERS Tier 6 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 6 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 6 Milestones

Here are some additional important milestones for Tier 6 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 6 members, there would be reductions to your benefit if you retire before age 63.
You can retire with full benefits at age 63.
- 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 years of service, your pension will equal 1.75 percent of your FAE for each year of service.
- For each year of service beyond 20 years, you will receive 2 percent of your FAE.

Note: A new law improves your pension benefits. When you retire, your final average earnings (FAE) will be based on the average of your three highest consecutive years of earnings, the same as members in other tiers. Read our blog post, Calculating Your Final Average Earnings, for more information, including how your FAE will be calculated and limitations.

Calculating Your Final Average Earnings

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As a NYSLRS member, you have a defined benefit plan that provides a lifetime pension when you retire. Your NYSLRS pension benefit amount will be determined by several factors, including your tier, service credit, and final average earnings (FAE).

When we calculate your pension, we find the consecutive years when your earnings were highest. These are usually your years of employment immediately before retirement, but they can be anytime in your career and do not need to match up with calendar years or fiscal years.

Update: Tier 6 Final Average Earnings Based on Highest Three Years

A new law improves the pension benefits of NYSLRS Tier 6 members. When you retire, your FAE will be based on the average of your three highest consecutive years of earnings, the same as members in other tiers.

These improvements apply to members who retire on or after:

April 1, 2024, for Police and Fire Retirement System (PFRS) Tier 6.
April 20, 2024, for Employees’ Retirement System (ERS) Tier 6.

Previously, your FAE was the average of your highest five consecutive years of earnings.

If you recently retired and the change applies to you, we have updated your pension calculation — you don’t need to contact us. The new law does not apply to members who retired before the dates above.

Understanding Final Average Earnings Limits

If your earnings increase significantly through the years used in your FAE, some of those earnings may not be used toward your pension.

Your limit depends on whether you’re an ERS or PFRS member and your tier. For most members, if the earnings in any 12-month period in your FAE exceed the average of the previous two years by more than 10 percent, the amount above 10 percent will not be included in your FAE calculation.

For more information, including limits for other tiers, visit our Final Average Earnings page.

Types of Earnings Included in Your FAE

The specific types of earnings included in your FAE calculation depend on your retirement plan and tier. Please check your plan publication for details.

In most cases, your FAE will include the payments listed below, if they are earned in the FAE period. (In some cases, restrictions may apply.)

Regular earnings (see earnings limit for Tier 6);
Overtime earned in the FAE period (see overtime limits for Tier 5 and overtime limits for Tier 6);
Compensatory overtime;
Holiday pay; and
Longevity payments (maximum of one per FAE year), if earned in the years used in the FAE calculation.

In most cases, the following payments will not be included in your FAE calculation:

Unused sick leave;
Payments made as a result of working your vacation;
Any form of termination pay;
Payments made in anticipation of retirement; and
Any payments made for time not worked.

Overtime Limits for Tier 5 and 6 Members

Tier 5 Overtime Limits

The overtime limit for Tier 5 Employees’ Retirement System (ERS) members increases each calendar year by 3 percent. In 2024, the limit for Tier 5 ERS members is $22,688.85.

For Tier 5 Police and Fire Retirement System (PFRS) members, the overtime limit is 15 percent of your regular earnings each calendar year.

For more information, visit our Overtime Limits for Tier 5 page.

Tier 6 Overtime Limits

The overtime limit for Tier 6 ERS members increases each calendar year based on the annual increase of the Consumer Price Index (CPI). In 2024, the limit for Tier 6 ERS members is $20,459.

For Tier 6 PFRS members, the overtime limit is 15 percent of your regular earnings each calendar year.

For more information, visit our Overtime and Earnings Limits for Tier 6 page.

Your Pension Benefit Calculation

Your NYSLRS pension will be based on your service credit and final average earnings (FAE). Your FAE is the average annual earnings you receive during the period when your earnings are highest (36 consecutive months for Tier 5 and 60 consecutive months for Tier 6). Your FAE will include overtime pay you earned up to each annual limit.

Your FAE may be limited in other ways. For example, for most members, if your earnings increase significantly in the years used for your FAE, some of those earnings might not count toward your pension. The specific limits depend on your tier. Visit our Final Average Earnings page for more information about this limit.

For Tier 6 members, the earnings that can be used toward your pension are also limited to the Governor’s salary.

Read Your Plan Publication

Your retirement plan publication provides specific information about the earnings that will be used to calculate your pension. Visit our website to Find Your NYSLRS Retirement Plan Publication.

Estimate Your Pension in Retirement Online

Most members can create their own pension estimate in minutes using Retirement Online. You can enter different retirement dates to see how those choices would affect your benefit. Sign in to Retirement Online and click the “Estimate my Pension Benefit” button to try it.

10 Things All NYSLRS Members Should Know

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Brush up on your Retirement System knowledge! Here are 10 things all NYSLRS members should know.

Lifetime Retirement Benefit
You are part of a defined benefit pension plan, which provides a lifetime benefit at retirement based on your earnings and years of service.
Qualify for a Retirement Benefit by Becoming Vested
Becoming vested is a key milestone in every NYSLRS member’s career. Once you’re vested, you have earned enough service to qualify for a retirement benefit, once you meet the minimum age requirements established by your retirement plan.
Tier Determines Benefits
Your tier determines your eligibility for benefits under your plan and how those benefits are calculated.
Conduct NYSLRS Business Using Retirement Online
Retirement Online is the fastest and most convenient way to do business with NYSLRS. It only takes a few minutes to open your account. Use Retirement Online instead of calling or mailing for instant access to benefit information and convenient tools to make account changes.
Estimate Pension Using Retirement Online Calculator
Most members can use Retirement Online to create benefit estimates based on the most up-to-date information we have on file. You can enter different retirement dates and payment options to see how those choices would affect your benefit.
Use Plan Publication to Learn about Benefits
Your retirement plan publication is a comprehensive source for information about your benefits.
Pension Calculated Using Highest Earnings
Your final average earnings (FAE) is another major factor in calculating your NYSLRS pension. When we calculate your pension, we find the set of consecutive years (one, three or five, depending on your tier and retirement plan) when your earnings were highest.
Request Past Service Credit Before Retirement
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.
NYSLRS Membership Includes Death and Disability Benefits
NYSLRS membership provides more than just retirement benefits. If you become seriously ill or injured, you may be eligible for a disability benefit. And, you may also be eligible to leave a beneficiary a death benefit if you die while working for a public employer.
Best-Funded, Best-Managed
The New York State Common Retirement Fund holds and invests the assets of NYSLRS on behalf of members, retirees and their beneficiaries and continues to be one of the best-funded and best-managed public pension funds in the nation. Comptroller Thomas P. DiNapoli is the administrative head of NYSLRS and trustee of the Common Retirement Fund.

NYSLRS is one of the largest public retirement systems in America, serving more than 1.2 million members, retirees and beneficiaries. Read A Look Inside NYSLRS to learn more about your retirement system.

NYSLRS – One Tier at a Time: PFRS Tier 2

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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.

NYSLRS – One Tier at a Time: ERS Tier 5

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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.

Membership Milestones

As of April 9, 2022, Tier 5 members only need five years of service credit to become vested. If you are a vested member in the Article 15 retirement plan, you are eligible for a lifetime pension benefit as early as age 55. However, if you retire before the full retirement age of 62, your benefit will be reduced.*

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.

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.

NYSLRS – One Tier at a Time: ERS Tier 6

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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.

Membership Milestones

As of April 9, 2022, Tier 6 members only need five years of service credit to become vested. If you are a vested member in the Article 15 retirement plan, you are eligible for a lifetime pension benefit as early as age 55, but if you retire before the full retirement age of 63, your benefit will be reduced.

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.

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.

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Tag Archives: FAE

ERS Tier 3 and 4 Milestones

Why Milestones Matter

Important ERS Tier 3 and 4 Milestones

ERS Tier 5 Milestones

Why Milestones Matter

Important ERS Tier 5 Milestones

PFRS Milestones

Why Milestones Matter