Tag Archives: Membership Milestones

ERS Tier 6 Milestones

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 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 improvements to your existing benefits. Understanding these milestones and when they occur will help you better plan your career and retirement.

Your milestones depend on your tier and your retirement 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 or in your annual statement, you’re in this plan.

ERS Tier 6 milestones

Major Milestones for Tier 6

Here are some 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 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 fewer 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 more than 20 years of service, your benefit will equal 1.75 percent of your FAE for each year of service.
  • Then, for each year of service beyond 20 years, you will receive an additional 2 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. Most members can estimate your pension in Retirement Online and enter different retirement dates to see how those choices would affect your benefit. As of April 9, 2022, Tier 5 and 6 members only need five years of service credit to be vested. If you are a Tier 5 or 6 member with between five and ten years of service credit, you can contact us to request a benefit estimate.

ERS Tier 6 Special Plans

Some public employees, such as corrections officers or deputy sheriffs, are in special retirement plans and can receive a pension after completing 20 or 25 years of service, regardless of age. If you are not in the Article 15 retirement plan described above, you should read your retirement plan publication to learn about your plan’s milestones.

Our Find Your NYSLRS Retirement Plan Publication tool can help. To use it, you just need to know your retirement plan code. You can find your code in the ‘My Account Summary’ section of your Retirement Online account homepage or on the second page of your latest Member Annual Statement. You can also use the new tool to search for your plan publication by retirement system, tier and occupation type (uniformed or non-uniformed).

PFRS Member Milestones

The Police and Fire Retirement System (PFRS) covers nearly 32,000 police officers and firefighters across New York State. 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.

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.

A recent amendment to Retirement law changed a milestone for some members. As of April 9, 2022, Tier 5 and 6 members are now vested after earning five years of service credit. Previously, members in these tiers needed ten years of service to become vested. Being vested means you are entitled to a NYSLRS pension, even if you leave public employment before retirement age.

Member Milestones to Remember

PFRS member milestones

Most PFRS members are in special plans that allow them to retire with full benefits, regardless of age, after 20 or 25 years of service. If you are in a special plan, only certain job titles would give you creditable service toward a 20- or 25-year milestone. For example, if you are in the 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 in regular plans can retire as early as age 55, but may face a benefit reduction if they retire before their full retirement age.

Your specific milestones, along with your pension calculation, are determined by your retirement plan, so it is important to familiarize yourself with the details of your plan. You can find information about your milestones in your retirement plan booklet on our Publications page. Not sure which retirement booklet is yours? Your retirement plan is listed in your Retirement Online account or you can ask your employer. You can also read our recent blog post for tips on finding your plan booklet.

Retirement Planning: Know Your Membership Milestones

Even if your retirement is years in the future, you should be aware of certain membership milestones that may help you narrow down when to retire.

There are two types of membership milestones: those pertaining to age and those pertaining to service credit. Since most NYSLRS members reach service credit milestones first, we’ll start with them.

Service Credit Milestones

Vesting is a key retirement milestone. Once you become vested, you will be eligible for a NYSLRS pension even if you leave public employment before retirement. Members in Tiers 1-4 with at least five years of credited service are vested. (Most members in these tiers have already reached this milestone.) Tier 5 and 6 members must have ten years of credited service to be vested.

membership milestones - service credit

After reaching 20 years of service, most members will be eligible to have a higher percentage of their final average earnings included in their pension benefit. How that benefit is calculated depends on your retirement plan and tier. You can find more information in your retirement plan booklet.

Members in some special plans can retire with 20 years of service, regardless of their age. Other special plans allow for retirement after 25 years, regardless of age.

At 30 years of service, Tier 2-4 members who are at least 55 years old can retire without a pension reduction.

Age Milestones

Once you reach your full retirement age, you can retire without a pension reduction. For Tiers 2-5, the full retirement age is 62. The full retirement age for Tier 6 members is 63.

membership milestones - age

Members in regular retirement plans can retire as early as age 55, but they may face a pension reduction if they retire before their full retirement age. The closer you are to your full retirement age at retirement, the less the reduction will be.

If you would like to see what your pension would be at different ages, use Retirement Online’s pension benefit estimator.

More About NYSLRS Membership Milestones

For more information about NYSLRS milestones, please see:

ERS Tier 5 Milestones

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 milestones you will pass over the course of your public service career and how they will affect your benefits.

ERS Tier 5 milestones

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. Certain amounts of service are milestones because they affect the benefits you receive and how your pension will be calculated. A better understanding of when they occur and how they change your benefits will help you plan for retirement.

Your milestones depend on your tier and your retirement plan. Most ERS Tier 5 members will retire under the Article 15 retirement plan. Some ERS Tier 5 members, such as deputy sheriffs and state corrections officers, are in special plans. You can find information for the Article 15 plan and other Tier 5 plans in your NYSLRS retirement plan publication.

Major Milestones for Tier 5

Here are some 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 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 fewer than 20 years of service, your pension will equal 1.66 percent of your final average earnings (FAE) for each year of service.
  • With 20 to 30 years of service credit, your benefit will equal 2 percent of your FAE for each year of service.
  • Then, for each year of service beyond 30 years, 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. Most members can estimate your pension in Retirement Online and enter different retirement dates to see how those choices would affect your benefit. As of April 9, 2022, Tier 5 and 6 members only need five years of service credit to be vested. If you are a Tier 5 or 6 member with between five and ten years of service credit, you can contact us to request a benefit estimate.

What to Know About ERS Tier 6

Tier status is a major factor in determining your NYSLRS retirement benefits. Employees’ Retirement System (ERS) members who joined NYSLRS on or after April 1, 2012, are in Tier 6. They have plenty of company. There were 285,750 ERS Tier 6 members as of March 31, 2020, making up nearly 45 percent of ERS membership.

ERS Tier 6 members contribute to the Retirement System based on their earnings, but the amount of their pensions will be determined by years of service and final average salary, not by the amount of their contributions.

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.

If you’re an ERS Tier 6 member, you can find out more about your benefits in one of these plan booklets:

What to Know About ERS Tier 5

Any Employees’ Retirement System (ERS) member who joined NYSLRS on or after January 1, 2010 but before April 1, 2012 is a member of Tier 5. There are currently 53,123 ERS Tier 5 members who make up 8.7 percent of ERS.

ERS Tier 5 Membership Milestones

As a Tier 5 member earns service credit over their career, they become eligible for certain benefits in their retirement plan. Here are some important milestones for Tier 5 members: 

ERS Tier 5 member milestones

ERS Tier 5 Contributions

Most Tier 5 members must contribute 3 percent of their salary for all their years of service, except Uniformed Court and Peace Officers employed by the Unified Court System, who must contribute 4 percent for all their years of public service. State Correction Officers contribute 3 percent for no more than 30 years.

With the exception of those retiring under special retirement plans, Tier 5 members must have 10 or more years of service to be vested (eligible for a retirement benefit). They can retire as early as age 55 with reduced benefits. The full benefit age for Tier 5 is 62.

The Final Average Salary (FAS) Calculation

The retirement benefit for Tier 5 members is 1.66 percent of their final average salary (FAS) for each year of service if the member retires with less than 20 years. FAS is the average of the wages earned in the three highest consecutive years of employment. For Tier 5 members, each year’s compensation used in the FAS calculation is limited to no more than 10 percent above the average of the previous two years.

If a Tier 5 member retires with between 20 and 30 years of service, the benefit is two percent of their FAS for each year of service. If a Tier 5 member retires with more than 30 years of service, the benefit is 1.5 percent of their FAS for each year of service over 30 years.

You can find out more info about Tier 5 retirement benefits on our website.