Tag Archives: Tier 2

NYSLRS Membership by Tier

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NYSLRS, which administers the Employees’ Retirement System (ERS) and the Police and Fire Retirement System (PFRS), had 685,450 members as of March 31, 2022. Our members are State government, local government, school district and other public-sector employees from across New York — 650,251 in ERS and 35,199 in PFRS. About 74 percent of our members were active, which means they were on a public payroll as of March 31.

NYSLRS Membership Over Time

A decade ago, more than 80 percent of NYSLRS members were in Tiers 3 and 4. Now, those tiers represent less than 40 percent of our membership. Tier 6, which includes members who joined NYSLRS since April 1, 2012, now has 367,013 members, or 53.5 percent of total membership.

NYSLRS Membership by Tier

Here’s a look at our NYSLRS membership by tier, as of March 31:

Tier 1: NYSLRS’ oldest tier, whose members first joined the system before July 1, 1973 (July 31, 1973, for PFRS members), is dwindling. Tier 1 represented only 0.2 percent of our membership. There were only 1,043 Tier 1 ERS members and 17 Tier 1 PFRS members.

Tier 2: With 18,074 members, Tier 2 represented 2.6 percent of membership. Ninety-four percent of Tier 2 members were in PFRS.

Tiers 3 & 4: Tiers 3 and 4, which have similar retirement plans, had 263,734 members, 38.5 percent of the total membership. Tiers 3 and 4 are primarily ERS tiers. There is no Tier 4 in PFRS, and only 173 PFRS members were in Tier 3.

Tier 5: Tier 5 covers members who joined from January 1, 2010, through March 31, 2012. With 35,569 members, Tier 5 represented 5.2 percent of membership.

Tier 6: This tier covers members who joined since April 1, 2012. Its ranks grew by about 13 percent during the last fiscal year.

Why Your Tier Matters

Your tier is an essential component of your NYSLRS membership because it is one of the factors that determines your benefits. You can find out more by reading your retirement plan booklet. Our recent blog posts explain how to find your plan booklet and how to get the most out of it.

Dig into the NYSLRS Summer Reading List

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Looking for some summer reading? Why not check out these publications from NYSLRS? They’re light on colorful characters and exotic settings, but what they lack in plot intrigue, they make up for in important retirement information.

summer reading

1. Retirement Plan for ERS Tier 3 and 4 Members (Articles 14 and 15)

More than 250,000 Tier 3 and 4 members of the Employee’s Retirement System (ERS) are covered by this plan. The publication explains some of the benefits and the services available to you, including a service retirement, a vested retirement, a disability retirement, death benefits and more. Read it now.

2. Retirement Plan for ERS Tier 5 Members (Article 15)

If you joined ERS from January 1, 2010 through March 30, 2012, you are in Tier 5. This booklet describes benefits for Tier 5 members in regular retirement plans. Read it now.

3. Retirement Plan for ERS Tier 6 Members (Article 15)

More than 178,000 Tier 6 ERS members are covered by this Plan. The publication explains some of the benefits and the services available to you, including a service retirement, a vested retirement, a disability retirement, death benefits and more. Read it now.

4. Life Changes: A Guide for Retirees

Already retired? As a NYSLRS retiree, you know that you will receive a monthly retirement benefit for life. However there may be other benefits available to you, as well as services that we provide retirees. This guide will answer many of the questions you may have and explain your responsibilities as a retiree. Read it now.

5. What If I Work After Retirement?

In most cases, NYSLRS retirees under 65 can earn up to $35,000 per calendar year in a public-sector job, but there are no restrictions if you work for a private-sector employer. If you plan to work while collecting your pension, you should read this booklet. Read it now.

Other Plan Booklets

Not covered by the retirement plans above? Maybe you’re a police officer, a firefighter, a sheriff or a correctional officer. You can still find you plan booklet on our Publications page. They’re great reading any time of year. If you’re not sure which plan covers your benefits, you can ask your employer or Contact Us.

NYSLRS – One Tier at a Time: PFRS Tier 2

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Today’s post looks at Tier 2 in the Police and Fire Retirement System (PFRS). A majority of PFRS members are in Tier 2, which began on July 31, 1973 and ended on June 30, 2009. Most Police and Fire Retirement System members are in “special” retirement plans that allow for retirement after 20 or 25 years, regardless of age, without penalty.

The special plans that cover municipal police officers and firefighters fall under Sections 384, 384(f), 384-d, and 384-e of Retirement and Social Security Law. As of March 31, 2020, there were 15,045 Tier 2 members in these plans; most of whom are covered by either Section 384-d (37.2 percent) or 384-e (62.1 percent).

Check out the graphic below for the basic retirement information for PFRS Tier 2 members.

PFRS Tier 2

 

For more detailed information about your benefits, please review your retirement plan publication:
Special 20- and 25-Year Plans for PFRS Tier 1, 2, 3, 5 and 6 Members (Sections 384, 384-d and 384-e) (VO1517).

ERS Tiers 1 and 2: The New Career Plan

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Did you become a member of the Employees’ Retirement System (ERS) before July 1, 1973? If you’re still working in public service, you’re one of the 3,508 active members in Tier 1. If you joined after July 1, 1973 but before July 27, 1976, then you’re one of 4,127 active members in Tier 2.

Most ERS Tier 1 and Tier 2 members are in the New Career Plan (Section 75-h or 75-i). Currently, 96 percent of active Tier 1 members and almost 95 percent of active Tier 2 members are covered by this plan. Here’s a quick look at the benefits in the New Career Plan:

Benefit Eligibility

Tier 1

  • Members must be at least age 55 to be eligible to collect a retirement benefit.
  • There are no minimum service requirements — they may collect full benefits at age 55.

New Career Plan — ERS Tier 1

Tier 2

  • Members must have five years of service and be at least age 55 to be eligible to collect a retirement benefit.
  • The full benefit age is 62.
  • Almost 95 percent of active Tier 2 members are covered by the New Career Plan (Section 75-h or 75-i).

New Career Plan — ERS Tier 2

Final Average Salary

Final average salary (FAS) is the average of the wages earned in the three highest consecutive years of employment. For Tier 1 members who joined NYSLRS June 17, 1971 or later, each year used in the FAS calculation is limited to no more than 20 percent above the previous year’s earnings. For Tier 2 members, each year of earnings is limited to no more than 20 percent above the average of the previous two years’ earnings.

Benefit Calculations

  • For Tier 1 and 2 members, the benefit is 1.66 percent of the FAS for each year of service if the member retires with less than 20 years. If the member retires with 20 or more years of service, the benefit is 2 percent of the FAS for each year of service.
  • Tier 1 members and Tier 2 members with 30 or more years of service can retire as early as age 55 with no reduction in benefits.
  • Both Tier 1 and Tier 2 members who worked continuously from April 1, 1999 through October 1, 2000 receive an extra month of service credit for each year of credited service they have at retirement, up to a maximum of 24 additional months.

If you have questions about the New Career Plan, please read the Tier 1 plan publication or the Tier 2 plan publication. You can find other plan publications on our website.

NYSLRS – One Tier at a Time: ERS Tier 2

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When you joined the New York State and Local Retirement System (NYSLRS), you were assigned to 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) – so there are many different ways to determine benefits for our members. Our series, NYSLRS – One Tier at a Time, walks through each tier and gives you a quick look at the benefits members are eligible for before and at retirement.

NYSLRS created Tier 2 on July 1, 1973, marking the first time NYSLRS created any new member group. Today’s post looks at one of the major Tier 2 retirement plans in ERS. ERS Tier 2 as a whole represents less than one percent of NYSLRS’ total membership.

ERS-Tier-2-Benefits_001aIf you’re an ERS Tier 2 member in an alternate plan, you can find your retirement plan publication below for more detailed information about your benefits:

Be on the lookout for more NYSLRS – One Tier at a Time posts. Next time, we’ll take a look at another ERS tier. Want to learn more about the different NYSLRS retirement tiers? Check out some earlier posts in the series: